Mkango Resources Ltd. · TSXV:MKA
Mkango Resources — Investor Presentation (November 2015)
27 slides from Mkango Resources's investor presentation, November 2015
Slide 1: Mkango Resources
MKANGO RESOURCES Spearheading development of Malawi’s Rare Earth Sector TSX-V: MKA RARE EARTHS FUTURE INNOVATION NOVEMBER 2015
Slide 2: Disclaimer
This presentation (the “Presentation”) has been prepared by Mkango Resources Ltd (the “Company” or “Mkango”) solely for its use at informational meetings relating to it or is being delivered for information purposes only to a limited number of persons. By attending the meeting where this Presentatio
Slide 3: Forward-looking statements and qualified persons
Group (Pty) Ltd., who is a “Qualified Person” in accordance with NI 43-101 and which was filed at www.sedar.com on November 6th 2014; and (iii) the press release dated November 9, 2015 in relation to the updated Pre-feasibility Study. All of the Qualified Persons referred to above are independent of
Slide 4: Advanced Stage Rare Earth Project in Malawi
Advanced Stage Rare Earth Project in Malawi PRE-FEASIBILITY STUDY UPDATED NOVEMBER 2015 ONE OF FEW ADVANCED STAGE RARE EARTH PROJECTS AMONGST THE LOWEST CAPEX IN THE SECTOR SIGNIFICANT POTENTIAL TO OPTIMISE AND REDUCE COSTS RESOURCE UPSIDE AND EXPANSION POTENTIAL CRITICAL FOR CONSUMER ELEC
Slide 5: Consistent Delivery on Milestones
Consistent Delivery on Milestones Key milestones: Executive Directors Jan 2010 Songwe Hill licence awarded (REE) Mr William Dawes, Chief Executive Officer & Co-founder Sept 2010 Thambani licence awarded (U, Nb, Ta, Zr) 13 years exploration and business development, 9 years mining finance; Jan 2011 M
Slide 6: Corporate Information
Corporate Information Capital Structure Directors & Share Price (8/11): C$0.03 Management Shares Outstanding: ~121M Warrants: 24.0M @ $0.20 34% 26.3M @ $0.05 Options: 6.3M Leominex Fully Diluted: ~178M (Private) Market Cap (8/11): ~C$3.6M Major Shareholders 21% Leominex 21% RESOC 14% Mkango Resource
Slide 7: Rare Earths - Fundamental to China's Future Growth Plans
Rare Earths - Fundamental to China’s Future Growth Plans Clean Energy - High End Manufacturing – New Materials EXPORT QUOTAS REPLACED DOMESTIC STOCKPILING WITH EXPORT LICENCING EXPORT TARIFFS BEING REPLACED SYSTEM BY OTHER FORMS OF TAXATION RARE EARTH PRODUCTION COSTS INCREASING – ENVIRONMENTAL, LAB
Slide 8: REE Mix Geared to High Growth Magnet Applications
REE Mix Geared to High Growth Magnet Applications Neodymium (756tpy); Dysprosium (35tpy); Praseodymium (227tpy); Terbium (7tpy) Permanent magnets CONSUMER ELECTRONICS CLEAN ENERGY REO in concentrate split by value Yttrium Lanthanum Gadolinium Cerium Europium 2% 5% 2% 1% 8% Terbium 3% Neodymium Dyspr
Slide 9: Malawi – The Warm Heart of Africa
Malawi – “The Warm Heart of Africa” World class, underdeveloped rare earth mineral province – historically known carbonatite deposits, drilled by JICA/MMAJ in late 80s Transport infrastructure Multi-billion dollar Vale Tete- Nacala rail development Road network Power – significant regional
Slide 10: Good Road Network, New Rail Line, Dry Port Planned
Good Road Network, New Rail Line, Dry Port Planned 10
Slide 11: Rail and Road Developments
Rail and Road Developments Tete – Nacala railway line through Malawi Blantyre – Migowi road refurbishment 11
Slide 12: Songwe Hill Rare Earth Deposit
Songwe Hill Rare Earth Deposit Most advanced REE project in Malawi PFS updated November 2015 Broad zones of mineralisation Long mine life, open pit operation Easily leachable light and heavy REEs Summary of Key Outputs Total ore mined and processed (tonnes) 8,482,603 Average strip ratio 4.
Slide 13: Mine Development – Potential Upside
Mine Development – Potential Upside IN-PIT INFERRED RESOURCES CURRENTLY TREATED AS WASTE – POTENTIAL TO LOWER STRIP RATIO AND OPERATING COSTS, EXTEND MINE LIFE 13
Slide 14: Significant Resource Upside - Open Laterally and to Depth
Significant Resource Upside - Open Laterally and to Depth Area of mineralised outcrop with grab Current area of sampling and drill defined some historical Indicated and drilling Inferred Resource Estimate Stage 1 & 2 drill holes superimposed on thorium / potassium radiometrics 14
Slide 15: PFS Identified Opportunities to Lower OPEX
PFS Identified Opportunities to Lower OPEX Real Operating Costs Life of Mine Life of mine 2017-2021 2017-2021 US$/kg US$/t processed US$/kg US$/t processed Mining 4.1 23.5 3.0 21.1 Beneficiation 3.7 21.2 3.0 21.0 Hydrometallurgical 7.1 40.4 5.7 40.3 G & A / other 1.5 8.6 1.3 8.6 Cash Operating Cost
Slide 16: Right Sized Project With Low Capex
Right Sized Project With Low Capex Infrastructure Modular plant Low strength acid, no kilns Conventional technology Initial modest scale Chemical concentrate Publicly traded rare earth companies with pre-feasibility or feasibility study
Slide 17: Summary
Summary LOW CAPEX WITH SIGNIFICANT GROWTH OPTIONS CERIUM REMOVAL ENHANCES PRODUCT MIX MAGNET RARE EARTHS >80% OF PRODUCT VALUE STRONG TECHNICAL CAPABILITIES – INDUSTRY AND RESEARCH COLLABORATIONS CONVENTIONAL TECHNOLOGY WITH LOWER RISK DEVELOPMENT STRATEGY STAKEHOLDER RELATIONSHIPS – ESTABLISH
Slide 18: Contact Details
Contact Details William Dawes Alexander Lemon Chief Executive President will@mkango.ca alex@mkango.ca Mkango Resources Ltd. Calgary Office www.mkango.ca 259 Windermere Road SW Twitter: @MkangoResources Calgary, Alberta P + 44 207 3722 744 T3C 3L2 Canada 18
Slide 19: Recent CSR Initiatives
Recent CSR Initiatives 19
Slide 20: Recent Corporate Social Responsibility initiatives
Recent Corporate Social Responsibility initiatives boNGO Worldwide partnership Happy Classrooms project Enhancing 3 local primary schools 12 classrooms painted to date Annual Scholarship programme to pay Secondary Education Fees for the top 6 students from 3 local primary schools Before - An
Slide 21: Mkango donates items to flood victims
12 BUSINESS THE DAILY TIMES, Thursday, January 29, 2015 Mkango donates K items to flood victi BY CAROLINE KANDIERO KANGO Resources, explorers of rare earth elements at Songwe Hill in Phalombe, has donated various items worth K6.2 million t0470 houscholds who were hit by floods some weeks ago around
Slide 22: Rare earth prospector donates pigeon pea seed to farming families
NEWS 8 INSIGHT danvary 20 MINING REVIEW MINING REVIEW Sousry 2015 NEWS & INSIGHT ¢ Rare earth prospector donates pigeon pea seed to 1,000 farming families Mkango aiming to introduce commercial farming to subsistence farming communities eango Iw the Songwe ava, cur ly farmers would beable tend poset
Slide 23: Mineral Reserve and Resource Estimates
Mineral Reserve and Resource Estimates 23
Slide 24: Probable Mineral Reserve Estimate
Probable Mineral Reserve Estimate 2014 Mineral Reserve Estimate Conservative Mineral Reserve cut–off grade versus pay limit 1.0% TREO cut off grade (0.57% TREO) Tonnes (million) TREO (%) TREO (tonnes) Mineral Reserve based on Probable 8.48 1.60 136,139 Indicated Resource only 2012 Mineral Resour
Slide 25: In-situ Mineral Resource estimates at 1.0% TREO cut-off grade
In-situ Mineral Resource estimates at 1.0% TREO cut–off grade1 In-situ Indicated Mineral Resource at 1% TREO Cut-Off Indicated Million La2O3 Ce2O3 Pr2O3 Nd2O3 Sm2O3 LREO Eu2O3 Gd2O3 Tb2O3 Dy2O3 Ho2O3 Er2O3 Tm2O3 Yb2O3 Lu2O3 Y2O3 HREO TREO TREO Th U Tonnes ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm
Slide 26: In-situ Mineral Resource estimates at different cut-off grades
In-situ Mineral Resource estimates at different cut–off grades1 In-situ Indicated Carbonatite Mineral Resource Cut-Off Million La2O3 Ce2O3 Pr2O3 Nd2O3 Sm2O3 LREO Eu2O3 Gd2O3 Tb2O3 Dy2O3 Ho2O3 Er2O3 Tm2O3 Yb2O3 Lu2O3 Y2O3 HREO TREO TREO Th U %TREO Tonnes ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm pp
Slide 27: REO distribution at different cut-off grades
REO distribution at different cut-off grades1 In-situ Indicated Carbonatite Mineral Resource - REO Distributions at 0.5%, 1.0% and 1.5% TREO Cut-Offs Cut-Off La2O3 Ce2O3 Pr2O3 Nd2O3 Sm2O3 Eu2O3 Gd2O3 Tb2O3 Dy2O3 Ho2O3 Er2O3 Tm2O3 Yb2O3 Lu2O3 Y2O3 Total HREO %TREO % % % % % % % % % % % % % % % % % 0.
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