Northern Minerals Limited · ASX:NTU
Northern Minerals — Investor Presentation (June 2013)
30 slides from Northern Minerals's investor presentation, Jun 11, 2013
Slide 1: Browns Range HRE Project - Powering the Future
ASX:NTU For personal use only Browns Range HRE Project Powering the Future George Bauk June 2013 Managing Director / CEO
Slide 2: Important Notice
Important Notice This presentation has been prepared by Northern Minerals Limited (“Northern Minerals” or the “Company”). It should not be considered as an offer or invitation to For personal use only subscribe for or purchase any securities in the Company or as an inducement to make an offer or inv
Slide 3: Capital Structure
Capital Structure For personal use only ASX Code: NTU AUD Major Shareholders Ordinary Shares 268.9M* Conglin Yue 19.9% Unlisted Options and Performance Rights 12.3M# Lynas Corporation 5.6% Market Capitalisation (as at 6 June 2013 @ $0.12) $32.3M Board & Management 5.0% Balance Sheet Cash (30 April 2
Slide 4: Investment Highlights
Investment Highlights For personal use only Funding strategy in progress Dominance of heavy Rare Earths Exploration potential – Browns Range Outstanding beneficiation 25 times 4
Slide 5: Right People in Place
Right People in Place Relevant range of experience and expertise to explore, develop, commercialise and operate the Browns Range Project For personal use only Board of Directors Kevin Schultz - Non Executive Chairman George Bauk - Managing Director / CEO • Mining engineer with global experience acro
Slide 6: Confidence building in Rare Earths Market
Confidence building in Rare Earths Market Lynas and Molycorp transitioning into production phase, adding confidence to For personal use only new REO supply. Dy and Y consumers stress Prices appear to have additional supplies are critical for bottomed as buyers begin to the sustainable development of
Slide 7: Demand for Heavy Rare Earths is real
Demand for Heavy Rare Earths is real In 2017 global electric vehicle annual In 2016 global wind turbine annual For personal use only Dy demand forecast is 750 tonnes Dy demand forecast exceeds 1,296 REO. December 2012 Wolverine tonnes REO. December 2012 resource contains 920 tonnes Dy2O3 Wolverine r
Slide 8: Developing Economies have only just begun
Developing Economies have only just begun For personal use only Industrialisation Urbanisation China’s 12th 5 year plan 2011-2015 1. Environmental Protection and improvement of energy efficiency. 2. Improve standard of living for Chinese citizens – higher demand for consumer goods 3. Develop 7 prior
Slide 9: Xenotime, a major Marketing Edge
Xenotime, a major Marketing Edge Mixed REO product Purity exceeding 92% TREO For personal use only received well by potential improves margins and offtakers reduces bulk for transport Offtake agreements MoU partner’s expertise should facilitate better Xenotime in critical material supply funding opt
Slide 10: Browns Range Competitive Advantage
Browns Range Competitive Advantage For personal use only 0.73% TREO* and Targeting 20% TREO and >92% TREO achieved simple mineralogy delivered in test work in early test work High grade feed using This is NTU’s competitive conventional hydromet advantage as we simply process steps results in low upg
Slide 11: Conventional Process Components
Conventional Process Components For personal use only 11
Slide 12: Focussing on Optimising Flowsheet
Focussing on Optimising Flowsheet • Hydromet plant location study completed For personal use only o Browns Range site selected • Commenced beneficiation optimisation testwork on two routes: o WHGMS rougher/scavenger followed by cleaner flotation: produced 20% TREO concentrate with overall circuit re
Slide 13: Licence to Operate
Licence to Operate • Implementation of the stakeholder engagement plan with For personal use only stage 1 community forums held in Halls Creek, Ringer Soak and Wyndham in May 2013 • Employing local people from Ringer Soak and Halls Creek • Cultural Awareness Training workshop held on site in April 2
Slide 14: Browns Range Dome
Browns Range Dome For personal use only • Northern Minerals 100% ownership and marketing rights (excluding Toro JV tenements where NTU earning up to 80%) • The dome is a major geological feature covering 1,500km2 (60km x 30km) –HRE mineralised faults/breccias probably developed during late stages of
Slide 15: 2013 Targeting 200% increase in Resource
2013 Targeting 200% increase in Resource Current resource For personal use only Prospect/Deposit (t TREO) 2013 activities On-going RC and diamond drilling in June and July – Wolverine 10,500 resource upgrade in Oct 2013 Mineralisation outlined over 200m strike length and down to 150m vertical. Furth
Slide 16: 2013 Drilling Results
2013 Drilling Results Drilling at Gambit West confirms a high grade zone of mineralisation at shallow depth and depth extensions For personal use only Interval TREO Dy2O3 Y2O3 (m) % ppm ppm 40 2.26 1,978 13,509 34 1.39 1,216 7,967 10 7.83 7,333 50,186 Inc. 2 31.64 29,714 203,745 7 6.08 5,619 38,318
Slide 17: Wolverine Resource
Wolverine Resource For personal use only Category Mt TREO Dy2O2 Y2O2 HREO TREO % ppm ppm % Tonnes Indicated 0.90 0.82 728 4,739 89 7,400 Interred 0.54 0.57 495 3,185 81 3,100 Total1 1.44 0.73 640 4,153 84 10,500 1 Rounding may cause some computational discrepancies Average U3O8 of 26ppm and average
Slide 18: John Galt HRE Project
John Galt HRE Project For personal use only • Rock chip samples up to 42% TREO with approximately 95% Heavy REO • Preliminary metallurgical tests indicate excellent recovery rates (>90%) with potential for concentrate grades >40% • High grade mineralisation in talus (scree) material – hard-rock sour
Slide 19: Pathway to Production
Pathway to Production 2013 2014 2015 2016 For personal use only JORC Resource Drilling Mining Lease & Land Access Primary Environmental Assessment (EPA) Secondary Approvals (DMP, DEC, DoW etc) Metallurgy Test work Scoping Study Pre-feasibility Study Feasibility Study Off-take Agreements Funding & De
Slide 20: Funding Through to Decision to Invest
Funding Through to Decision to Invest Source of Funds Application of Funds For personal use only 2013 and 2014 2013 and 2014 AUD AUD 1. Placement – 18.8M shares $3.8M 1. Geological/Exploration – Browns Range $14.0M 2. Rights Issue# $26.6M 2. Engineering/Infrastructure/Mining Studies $12.2M 3. Sale o
Slide 21: Funding Update
Funding Update Underwriting of Rights 28 June 2013 Rights Issue of: For personal use only • 133.2M shares @ 20c $26M^ • 66.6M options exercise Rights Issue Complete 15 July 2013 price 30c expiry 31 March 2015 Sale of Browns Range* TBC - 16% sale agreement - 20% offtake agreement $28M^ $58M# - Joint
Slide 22: Delivering on promises made
Delivering on promises made For personal use only • Identified HRE mineralisation at Browns Range • Acquisitions included John Galt and Browns Range NT • Completed first metallurgical test on xenotime • Drilling confirms HRE at Wolverine, Gambit and Area 5 • Flowsheet developed, low capital costs •
Slide 23: Second Half 2013 - Key Events
Second Half 2013 – Key Events For personal use only Drilling Results Ongoing General Meeting and Rights Issue June/July Results from mini pilot plant July Bulk sample collection August Stage 1 continuous hydromet September Updated JORC resource October Larger beneficiation pilot plant October 23
Slide 24: The next source of HRE
The next source of HRE • Funding plan established, awaiting For personal use only shareholder approval • JORC resource growing, update due in October 2013 • Project development progressing, environmental assessment complete • Mixed RE oxide flowsheet being optimised, high purity product confirmed •
Slide 25: Appendices
For personal use only APPENDICES 25
Slide 26: Appendix A - Pipeline of Prospects
Appendix A - Pipeline of Prospects For personal use only Production Reserves Wolverine CurrentResource Current Resource 10,500tTREO 10,500t TREO Resources Targeting total resource of 22,000 - 29,000t TREO * Gambit West Area 5 Significant Drilling Gambit Banshee Cyclops Intersections Area 5 North Mys
Slide 27: Appendix B - Beneficiation Results
Appendix B - Beneficiation Results For personal use only 27
Slide 28: Appendix C - Hydrometallurgy Results
Appendix C - Hydrometallurgy Results For personal use only 28
Slide 29: Appendix D - Seven Priority Industries
Appendix D - Seven Priority Industries For personal use only Source: KPMG China 12th 5 Year Plan Overview 2011 29
Slide 30: Appendix E - Competitor Comparison
Appendix E – Competitor Comparison For personal use only LRE v HRE Comparative Percentage Distribution LRE v HRE in-situ value Note: Values represent $US/kg based on the Metal Pages China FOB price as of June 7 2013. In-situ values are for comparison purposes only and make no assumption with respect
Northern Minerals — Investor Presentation (June 2013) on 6ix