Eq Resources Limited · ASX:EQR
Eq Resources — Carbine Tungsten — Shareholder Meeting (November 2016)
32 slides from Eq Resources's shareholder meeting presentation, Nov 24, 2016
Slide 1: Carbine Tungsten Limited 2016 Annual General Meeting
Carbine Tungsten Limited ASX Code: CNQ Technology Battery & Speciality Metals Lithium Gold Tungsten Jim Morgan, Managing Director & CEO 2016 Annual General Meeting 24 November 2016
Slide 2: Disclaimer
2016 ANNUAL GENERAL MEETING 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, projection
Slide 3: Agenda
AGENDA 1. Chairman’s Welcome 2. Housekeeping 3. Notice of Meeting to be Read or Taken as Read 4. Minutes of 2015 AGM 5. Chairman’s Address 6. Resolutions 7. Managing Director / CEO Report 8. Other Business 9. Meeting Close
Slide 4: Chairman's Introduction
CHAIRMAN’S INTRODUCTION Board of Directors Board Member Experience Russell Krause, Non-Executive Chairman Mr Krause was appointed Non-executive Chairman on 30 June 2013 and has over 25 years’ Executive Management and Director level experience in a range of corporate advisory, stockbroking, and inves
Slide 5: Where Are We in the Cycle?
WHERE ARE WE IN THE CYCLE? IS TRUMP THE WAKE UP CALL – ARE WE FIVE MINUTES TO BOOM-TIME? Paper Takeovers New Floats (Big Companies) Crash People Leave Big Companies (Top $ Small Company Liquidations Companies Short Careers) Declining Exploration Rising Exploration New Floats (Small Companies) Merger
Slide 6: Resource Market Status
RESOURCE MARKET STATUS Copper Iron Ore Gold Steel
Slide 7: Company Diversification Strategy
COMPANY DIVERSIFICATION STRATEGY DEVELOP AND MAINTAIN CNQ ASSETS: • Tungsten • Gold • Lithium • Technology • Geology • Project Development • Speciality Metal Marketing • ASX Publicly Listed Company – New Rules 20 Dec 2016
Slide 8: Company Strategy
COMPANY STRATEGY Major Resource Companies Too big to invest in small to medium project interests OPPORTUNITY FOR CNQ – SPECIALITY METALS, BATTERY METALS, NEW TECHNOLOGY, SMALL TO MEDIUM PROJECTS Projects too small to be listed, difficult IPO’s and diminished small cap mining companies (restricted by
Slide 9: Diversification Activities: Gold
DIVERSIFICATION ACTIVITIES GOLD As part of its diversification strategy Carbine Tungsten Limited acquired two gold prospects 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 ch
Slide 10: Gold – EL 6648 Crow Mt.
DIVERSIFICATION ACTIVITIES GOLD – EL 6648 CROW MT. • 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
Slide 11: Gold – EL 8024 Panama Hat
DIVERSIFICATION ACTIVITIES GOLD – EL 8024 PANAMA HAT • About 30km south east of Broken Hill and covers ~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 al
Slide 12: Diversification Activities: Lithium (Symbol Li)
DIVERSIFICATION ACTIVITIES LITHIUM (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
Slide 13: Diversification Activities
DIVERSIFICATION ACTIVITIES
Slide 14: Diversification Activities: Lithium
DIVERSIFICATION ACTIVITIES Lithium • Occurs in ancient hard rock deposits (Li feldspars and micas). • Occurs in geologically young continental rift systems as brines in sedimentary deposits in closed sedimentary basins. • The brines are partly due to evaporation of ground water in these closed basin
Slide 15: Lithium Strategy
DIVERSIFICATION ACTIVITIES Lithium Strategy • Look for brine resources in modern continental rifts. • Look in mining-friendly and technically competent countries. • Anticipate the AXT process may enable precipitation of Li metal from brines at very low cost = huge competitive advantage. • Progress:
Slide 16: Exploration Activities - Tungsten: Mt Carbine, Queensland
EXPLORATION ACTIVITIES - TUNGSTEN 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
Slide 17: Iron Duke - Mt Carbine EPM 14872
EXPLORATION ACTIVITIES - TUNGSTEN IRON DUKE - MT CARBINE EPM 14872 • Present resource estimate does not Present mapped include any Iron Duke mineralisation. Low grade extent of Iron stockpile Duke prospect • Lies within the planned open-cut envelope. • Average true width 8m from 6 drill holes with a
Slide 18: Iron Duke - Mt Carbine EPM 14872
EXPLORATION ACTIVITIES - TUNGSTEN IRON DUKE - MT CARBINE EPM 14872 • Soil sampling confirms that the Iron Duke scheelite prospect is mineralised over 1km strike length. • 6 cored drill holes at the southern end of the prospect averaged 0.32% WO3 over 8m true width. • A self potential survey over a g
Slide 19: Petersen's Lodes - Mt Carbine, QLD
EXPLORATION ACTIVITIES - TUNGSTEN PETERSEN’S LODES - MT CARBINE, QLD • 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.
Slide 20: 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 Highest melting point of all metals at 3,422 ± 15 oC and a boiling point which corresponds appr
Slide 21: Tungsten Market
TUNGSTEN MARKET The tungsten market has faced significant changes: APT European Prices $198-$205/mtu** Source: 2016 ITIA Conference, Stockholm ** SP Angel Report
Slide 22: Tungsten Market
TUNGSTEN MARKET • Despite APT and tungsten concentrate prices increasing approximately 25% from their historical lows, the margins currently being realised do not warrant bringing additional supply to an already price constrained market. • High cost tungsten producers (predominantly western world mi
Slide 23: Tungsten Market
TUNGSTEN MARKET • Carbine’s market strategy, with its relatively short-time to production, is to improve on the project’s cost efficiencies whilst remaining ready to take advantage of any upturn in the market which is possible should current high-cost mines begin to close. • Carbine will continue to
Slide 24: Mt Carbine Mine - Overview
MT CARBINE MINE - OVERVIEW Mt Carbine Mining Leases cover ~367 hectares. Mining Leases cover ~ 367 hectares The historical Mt Carbine tungsten mine is located 130km by sealed highway from the port of Cairns in North Queensland, Australia.
Slide 25: Mt Carbine Tungsten Project - Overview
MT CARBINE TUNGSTEN PROJECT - OVERVIEW Mt Carbine Project Outline Key Findings Recapped NPV $161 million • 2012 Feasibility Study confirmed the technical and Resource financial feasibility of the Mt Carbine Project. Mine 47Mt @ 0.13% WO3 • Pre-tax Internal Rate of Return (IRR) of 60%. Stockpile 12Mt
Slide 26: Hard Rock Stockpile Project
HARD ROCK STOCKPILE PROJECT Project Ready Status Maintained Funding: Technical due diligence phase of the funding negotiations with Mitsubishi RtMJ completed in April 2014. US$15 million secured loan (including prepayment fund of previous US$1 million loan) approved by Mitsubishi RtMJ Board in lat
Slide 27: Our Commitment to Environment, Safety & Community
OUR COMMITMENT TO: ENVIRONMENT, SAFETY & COMMUNITY • Policies and procedures continually modified to keep pace with the Company’s changing operational activities. • Carbine endeavours to engender and promote the values of a safe work place and work culture for all its employees and contractors. • Re
Slide 28: Proposed Acquisition Update
PROPOSED ACQUISITION UPDATE MT CARBINE & MOSSMAN QUARRIES • Memorandum of Understanding entered into for the potential acquisition of the Mt Carbine and Mossman Quarries in 2015. • Established business operating for over 20 years within the Mt Carbine Mining Leases. Mossman quarry located close to c
Slide 29: 2015-2016 Funding Activities
2015-2016 FUNDING ACTIVITIES CAPITAL RAISING ACTIVITIES • $636,200 was raised via a Non-Renounceable Entitlements Offer of one (1) new ordinary share for every (4) shares held which resulted in the placement of 25,447,969 fully paid ordinary shares at an issue price of $0.025. • Lanstead Capital LP’
Slide 30: New Mineral Processing Technology
NEW MINERAL PROCESSING TECHNOLOGY ATOM EXCHANGE TECHNOLOGY (AXT) • In September 2016 Carbine engaged a specialist minerals technology provider to conduct preliminary test work on tungsten scheelite concentrate samples from its Mt Carbine Tungsten Project. • Test work will utilise a novel and unique
Slide 31: New Mineral Processing Technology
NEW MINERAL PROCESSING TECHNOLOGY http://www.atomexchangetechnology.com/
Slide 32: 2016-2017 Outlook / Thank-you
2016 - 2017 OUTLOOK • Resource market conditions improving; • Commodity prices improving; • Sophisticated investor interest appetite returning; • Broader asset portfolio achieved; • Positioned for market upturn; • In discussions with sophisticated investors and funders; • Actively seeking further gr
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