Eq Resources Limited · ASX:EQR
Eq Resources — Speciality Metals International — Investor Presentation (January 2018)
30 slides from Eq Resources's investor presentation, January 2018
Slide 1: Investor Presentation
ASX Code: SEI INVESTOR PRESENTATION January 2018
Slide 2: Disclaimer
DISCLAIMER Forward Looking Statements Some statements in this presentation relate to the future and are forward looking statements. Such statements may include, but are not limited to, statements with regard to intention, capacity, future production and grades, projections for sales growth, estimate
Slide 3: Board of Directors
BOARD OF DIRECTORS Russell Krause, Executive Chairman Mr Krause was appointed to the Board on 30 June 2013 and assumed the role of Executive Chairman on 14 November 2017. Mr Krause has over 25 years’ Executive Management and Director level experience in a range of corporate advisory, stockbroking, a
Slide 4: Corporate Structure
CORPORATE STRUCTURE Capital Structure Top 5 Shareholders ASX Code SEI Dr Leon Eugene Pretorius 7.44% Share Price (52 Week High/Low) $0.042 - $0.007 Bodie Investments Pty Ltd 5.18% Shares on Issue 482.876 Million New Medical Enterprises Pty Ltd 4.37% Market Capitalisation ($) 14.49 Million Cash* $462
Slide 5: Diversification Strategies
DIVERSIFICATION STRATEGIES The following diversification strategies have been successfully implemented to date: Chilean Exploration Concessions (each concession = 3km x 1km): • Miraje 1-5 (Granted) • Bellavista 1-5 (Granted) • Pintados 1-15 (Applications lodged and well progressed) World-Class T
Slide 6: Lithium Exploration Concessions Symbol (Li)
LITHIUM EXPLORATION CONCESSIONS SYMBOL (LI) • Previous main application in glass manufacture ~ $200/t lithium carbonate or direct shipping ore (>4.5% Li). • Major growth potential in lithium batteries: price spike to $20,000 per tonne. • The current upsurge in lithium exploration will undoubtedly sh
Slide 7: Lithium Exploration Concessions
LITHIUM EXPLORATION CONCESSIONS Typical exposure of historical workings, EL8024 Page 6
Slide 8: Lithium Exploration Concessions Chile
LITHIUM EXPLORATION CONCESSIONS CHILE Exploration has been carried out in several salars for resources contained within subsurface brines that may include potassium, iodine, boron, lithium and other valuable minerals. Salar de Miraje 1-5: - Exploration Concessions Granted. - 4 salt crust samples p
Slide 9: Lithium Exploration Concessions Chile: Salt Crust Analyses
LITHIUM EXPLORATION CONCESSIONS CHILE Table 1. Summary of analyses of salt crust samples, Salars de Miraje and Bellavista Element Li Mg K Na B Ca S As Sb Mo Cu Zn Pb Ag Fe P Mn Al Measure ppm % % % ppm % % ppm ppm ppm ppm ppm ppm ppm % ppm ppm % Salar de Miraje L16 90 0.39 0.18 0.22 110 9.69 8.33 46
Slide 10: Mt Carbine Tungsten Mine Overview
MT CARBINE TUNGSTEN MINE OVERVIEW Typical exposure of historical workings, EL8024 Mt Carbine Mining Leases cover ~367 hectares. Page 9
Slide 11: Mt Carbine Tungsten Project
MT CARBINE TUNGSTEN PROJECT Tailings Retreatment Plant Low Grade Stockpile Mining Leases cover ~ 367 hectares 2012 JORC Compliant Resource Resource Summary - July 2014 (No Change from 2014) Tungsten Resource as WO3 Cut-off Grade Tonnes WO3 WO3 Open Pit Resource Resource (%) (Mt) (%) (mtu) Low Grade
Slide 12: Mt Carbine Tungsten Project Open Pit Project
MT CARBINE TUNGSTEN PROJECT OPEN PIT PROJECT • 10 year mine life. • Mineralisation remains open at depth. • Low planned strip ratio. • Process plant will be same as the Stockpile. • Contains higher grade material than the stockpiled ores. Perspective view of WO3% model blocks looking west, incorpora
Slide 13: Mt Carbine Tungsten Project Key Findings Recapped
MT CARBINE TUNGSTEN PROJECT KEY FINDINGS RECAPPED Mt Carbine Project Outline NPV $161 million • 2012 Feasibility Study confirmed the technical and financial feasibility of the Mt Carbine Project. Resource • Pre-tax Internal Rate of Return (IRR) of 60%. Mine 47Mt @ 0.13% WO3 Stockpile 12Mt @ 0.075% W
Slide 14: Mt Carbine Quarry & MLs Proposed Acquisition Update
MT CARBINE QUARRY & MLS PROPOSED ACQUISITION UPDATE • Mt Carbine Quarries Pty Ltd - Established business operating for over 20 years within the Mt Carbine Mining Leases. • Has a stockpile of mined rock that has been processed through an optical ore sorter amounting to ~6Mt, plus access to the mined
Slide 15: Mt Carbine Quarry & MLs Proposed Acquisition Update
MT CARBINE QUARRY & MLS PROPOSED ACQUISITION UPDATE • Binding Heads of Agreement signed in December 2017 for the purchase of the Mt Carbine Quarry and Mining Leases ML 4867 & ML 4919. • Ownership of the Mining Leases is integral to the successful development of the Company’s Mt Carbine Tungsten Proj
Slide 16: Tungsten Exploration Permits Mt Carbine, Queensland
TUNGSTEN EXPLORATION PERMITS MT CARBINE, QUEENSLAND • Two prospects, Iron Duke and Petersen’s Lode, exist within EPM 14871 and 14872 and in the case of Iron Duke, the mining leases. • These prospects are dominated by scheelite mineralisation. • Mapping and sampling indicate both prospects have exten
Slide 17: Tungsten Exploration Permits Iron Duke – EPM 14872
TUNGSTEN EXPLORATION PERMITS IRON DUKE – EPM 14872 • Present resource estimate (refer Slide 26) does not include any Iron Duke mineralisation. Lies within the planned Present mapped open-cut envelope. Low grade extent of Iron • Average true width 8m from 6 drill holes stockpile Duke prospect with an
Slide 18: Tungsten Exploration Permits Petersen's Lode – EPM 14872
TUNGSTEN EXPLORATION PERMITS PETERSEN’S LODE– EPM 14872 • Lies within EPM 14872 and is ~1-2km south-east of Mt Carbine. • Sub-vertical zone of scheelite mineralisation hosted by sheared and altered metasediments traced for 1.3 km along the strike. • More detailed exploration is planned. • Only recor
Slide 19: Tungsten: Industrial Enabling Metal with Strategic Importance
TUNGSTEN INDUSTRIAL ENABLING METAL WITH STRATEGIC IMPORTANCE Aeronautical & Automobile Manufacturing With a density of 19.25 g/cm3, tungsten is also among the heaviest metals. Rail & Heavy Earthmoving Typical exposure of historical workings, EL8024 Highest melting point of all metals at 3,422 ± 15 o
Slide 20: Tungsten Market
TUNGSTEN MARKET The tungsten APT (Ammonia Para Tungstate) price rose rapidly during the 3rd quarter of 2017 to reach a high of $335 (per 10kg MTU) by mid-September 2017. Average European APT Price - July 2015 to January 2018 $400 $350 $335 $318 $300 $275 $285 $256 $271 USD $250 $225 $200 $205 $150 $
Slide 21: Tungsten Market
TUNGSTEN MARKET • Primary reason for the significant price increase during 2016 appears to be that China, being the dominant supplier of the world’s APT, is undergoing a restriction of supply which has resulted in increased production costs for tungsten concentrates and APT product due to increased
Slide 22: Tungsten Market: What It Means for Mt Carbine
TUNGSTEN MARKET What does this mean for the Mt Carbine Project: • Preliminary discussions have been held with several interested globally represented potential offtake parties. • The Company has also been investigating the viability of recommissioning and recommencing production at its Tailings Retr
Slide 23: Gold Exploration Licences
GOLD EXPLORATION LICENCES Two gold prospects acquired in New South Wales during September 2016: • Exploration Licence 6648 – Crow Mt. • Exploration Licence 8024 – Panama Hat Above map shows maximum gold values obtained by rock chip or mineralised rocks by previous explorers on EL 8024. Location of E
Slide 24: Gold Exploration Licences Panama Hat – EL 8024
GOLD EXPLORATION LICENCES PANAMA HAT – EL 8024 • About 30km south east of Broken Hill covering ~80% of the historical gold workings in the Broken Hill district. • Workings mostly date from 1931-1935 and occur along an arcuate line of quartz veining with associated iron oxides. • Sericitic alteration
Slide 25: Gold Exploration Licences Panama Hat – EL 8024
GOLD EXPLORATION LICENCES PANAMA HAT – EL 8024 Typical exposure of historical workings, EL8024 Page 24
Slide 26: Gold Exploration Licences Panama Hat – EL 8024
GOLD EXPLORATION LICENCES PANAMA HAT – EL 8024 Table 1. Summary of gold analyses, Panama Hat EL8024 WEI-21 PUL-QC Au-AA21 Au-AA25 SAMPLE Recvd Wt. Pass75um Au Au DESCRIPTION Northing WGS84 Easting WGS84 Elevation kg % ppm ppm AW PH 10 6441161 554105 191 0.33 >1.00 35.1 AW PH 11 6441200 554593 188 0.
Slide 27: Gold Exploration Licences Crow Mt. – EL 6648
GOLD EXPLORATION LICENCES CROW MT. – EL 6648 • Approximately 20km south east of Barraba in northern NSW. • Straddles part of the Peel Fault, a major structure that geologically separates the New England Province from the Tamworth Trough to the west. • Contains numerous historical shallow gold workin
Slide 28: Gold Exploration Licences Crow Mt. – EL 6648
GOLD EXPLORATION LICENCES CROW MT. – EL 6648 Fresh mapping, sampling and a review of previous exploration results undertaken by Speciality Metals provided the following exciting new insights: • Gold has been leached from the surface meter or two by intense weathering in the past and surface sampling
Slide 29: Gold Exploration Licences: Gold Assays
GOLD EXPLORATION LICENCES Table 2. Gold assays from samples of dumps associated with deeper historical workings in EL 6648 Sample Easting Northing Description Au – AA25,gm/t Silicified, quartz veined with breccia 214 286738 6624693 texture rock – minor limonite 2.43 215 286738 6624693 ditto 1.46 alt
Slide 30: 2018 Outlook / Thank-you
2018 OUTLOOK • Resource market conditions continue to improve; • Commodity prices are generally stronger; • Broader asset portfolio achieved; • Company repositioned to take full advantage of improving market conditions via its diversified exploration portfolio; • Future corporate activities in relat
Speciality Metals International — Investor Presentation (January 2018) on 6ix