American Rare Earths Ltd · ASX:ARR
American Rare Earths — Broken Hill Prospecting — 8th Annual NSW Mining Conference 2014
29 slides from American Rare Earths's conference presentation, Aug 27, 2014
Slide 1: Cobalt supply concerns and new heavy mineral sand project
Increasing concerns re world cobalt supply for an expanding lithium ion battery industry could lift BPL from a junior explorer to a substantial metals producer. & New heavy mineral sand (Ti-Zr) Project Broken Hill Prospecting Limited (ASX code BPL) has identified twenty prospective HMS deposits in t
Slide 2: Cautionary Notes
Cautionary Notes Disclaimer This presentation contains forward-looking statements that involve subjective judgement and analysis and accordingly, are subject to significant uncertainties and risks, many of which are outside the control of, and are unknown to, Broken Hill Prospecting Pty Ltd ( “BPL”)
Slide 3: Introduction to Broken Hill Prospecting Ltd (BPL)
Introduction to Broken Hill Prospecting Ltd (‘BPL’) Each of the following has the potential to catapult BPL from a junior explorer into a world-class producer by attracting well-funded partners. BPL has a world-class cobalt pyrite deposit, a major strategic resource which could supply Co to a grow
Slide 4: Cobalt-pyrite deposit location
Cobalt-pyrite deposit…… Location important for development Unique style of cobalt mineralisation Located beside main railway 25km SW of Broken Hill Outcropping, very large deposits In 2012/2013 BPL discovered new deposits and untested potential Pinnacles mine Processing of pyrite to recove
Slide 5: Resources and potential are very large & near surface
Resources and potential…. are very large & near surface Location of next slide Offset Mining NSW
Slide 6: Co-pyrite extends to considerable depth
Co-pyrite extends to considerable depth The cobalt-pyrite (FeS2) has no Pb, As, Hg, Cd or other ‘toxic’ metals. Gangue minerals are ‘inert’ quartz and Na feldspar. 2013 drilling at BED001 Potential to make a cobalt-pyrite concentrate (0.45% Co) - a premium feed for sulphide roasting Mining NSW
Slide 7: BPL's cobalt resources have very high in-ground value
BPL’s cobalt resources have very high in-ground value BPL Mineral Resources* ASX listing, February 2011 August 2014 Pyrite resource estimate 15 million tonnes (Mt) of 0.085% Co 35.7Mt of 0.084% Co (Inferred Resource) (12,750 tonnes (t) of contained cobalt) (30,000 tonnes contained cobalt) Potential*
Slide 8: What is cobalt? A metal of the future
What is cobalt? ...... A metal of the future Co is special... hard, heavy, high melting temperature, strong magnet Co a ‘Strategic Metal’ in the USA, China, Japan and EU Co price in last 5 years: $12-$50/lb ($22,000-$110,000/t) Co is widely used: superalloys for turbines, jets, military, a
Slide 9: Why is cobalt special?
Why is cobalt special? No cobalt is mined in USA, Japan, Korea or EU Mostly bi-product from some Cu or Ni mines ~100,000t Co produced annually; o ~55% from DR Congo, ~45% refined in China o >80% consumed in USA, Japan, China and European Union. DR Congo: ~51% of world Co reserves, ~55% product
Slide 10: Tesla gigafactory plans for electric vehicle battery packs
Tesla Motors "gigafactory" plans to make electric vehicle battery packs for 500,000 electric vehicles annually 2.5 kg cobalt (Prius) >1 million Toyota hybrids in 2013 … and increasing 6-9 kg cobalt (S, X, GenIII) >0.5 million Tesla units by 2020 … and increasing General Motors (Chevy volt, Chevy Spa
Slide 11: The cobalt price is showing signs of recovery
www.lme.com/en-gb/metals/minor-metals/cobalt/ The cobalt price is showing signs of recovery. Will future supply/demand pressures take Co price to +$100,000/t? London Metal Exchange Mining NSW
Slide 12: Development scenario – to produce cobalt and H2SO4
Development scenario – to produce cobalt and H2SO4 Path of conceptual development BPL BPL Chemical Company BPL/?Chem Coy mining cobalt- Concentrate Roasting of Recovery of pyrite ore cobalt-pyrite pyrite cobalt from (90%, 0.45% Co) concentrate to remaining ash produce sulphuric acid Direct sale of C
Slide 13: Sulphuric acid supply/demand in Australia
Sulphuric acid supply/demand in Australia Australian issues include: • Net importer of sulphuric acid (and sulphur) • Freight, handling, storage from northern hemisphere producers • Adds to costs as well as uncertainty of supply • Future production decline is forecast for Australia • Supply is a det
Slide 14: Sulphuric acid global production forecast
Sulphuric acid global production forecast (‘000 tonnes) (Korea, Japan, China) • ~90% of H2SO4 is produced in the northern hemisphere Sulphur based Smelter by-product Pyrite roasting Spent acid • ~50% is used to make phosphate fertiliser Courtesy of Dr Robert Boyd, Elkbury Sulphur Consultants Inc, Ma
Slide 15: Murray Basin mineral sand deposits - a new project for BPL
Murray Basin mineral sand deposits - a new project for BPL Fine-grained, sheet-like Heavy Mineral Sand (‘HMS’) deposits are well known along the southern margin Broken Hill Broken Hill of the Murray Basin. Target area Deposits similar to these have been discovered south of Broken Hill. These are les
Slide 16: Tenement Map, SW NSW
Tenement Map, SW NSW Five areas selected Exploration Licence applications (lodged, June 2014) ELA (Group 10, area HMS Prospects mineral sands) units km2 Woolcunda 5048 59 171 Magic, Majar Massidon, Strand A, Strand Nanya North 5049 40 116 B, Nanya 1, Plain Tank Springwood 5050 32 93 Springwood N
Slide 17: HMS target
HMS target Start-up projects will depend on grade, HM make-up, depth and grainsize. BPL target is 25-50Mt of >5%HM (with ~2-4Mt contained HM). Contained Tonnage HM grade HM composition (%) Project/Deposit HM Mt % Mt ilmenite leucoxene rutile zircon Pooncarie/Ginkgo 133 3.9 5.2 69.9 nr 12.7 10.4 Mend
Slide 18: Woolcunda ELA5048
Woolcunda ELA5048 S >1% HM N The Magic Deposit - an ilmenite dominated heavy mineral assemblage 3-25m cover HMS zones average 300m wide x 5m thick over >9km 5m 100m High grade core ~110m wide x 2-3m thick with heavy >5% HM 2m @ 28% HMS to Broken Hill (100km) mineral grades up to 2m of 2m @ 1
Slide 19: Springwood and Nanya North (ELA5050, ELA5049)
Springwood and Nanya North (ELA5050, ELA5049) ELA5007 Figure 3 Broken Hill Springwood mineralisation Nanya North and Springwood is ~250m wide, to 7m thick Exploration Licence Application and averages 5% HM. areas (ELA) are outlined in red. The deposit is fine-grained Mineral occurrences within t
Slide 20: Massidon Deposit, Nanya
Massidon Deposit, Nanya Large deposit (>500Mt) defined by Bemax (Cristal) with good access Land owned by Federation University Australia (Ballarat) Potential for at/near-surface, high grade areas within ELA5049 as shown by radiometrics http://federation.edu.au/research-and-innovation/research-
Slide 21: Milkengay ELA5051
Milkengay ELA5051 to Broken Hill (160km) Prospects are SW of Cristal Mining’s Ginkgo and Snapper HM mines. Previous workers report both Ginko and gold and platinum showings in Snapper HMS the HMS. mines (Cristal) 500 Prospect is ~10km long, N226 N264 av ~3% HM, 3.3m thick, 53m MI + wide, 18m c
Slide 22: Copi ELA5052
Copi ELA5052 G to Broken Hill N legend Series of stacked, deposits over zone of steep dipping Tarawi G Silver City CO Highway shore-line. High-grade pods + mineral occurrence Nature Reserve Copi ELA are enveloped by lower grade 10 kilometres G WE HMS. Figure 5 Copi North is 15.5 km long, BU CI C
Slide 23: Copi ELA5052 (contin)
Copi ELA5052 (contin) Copi North section line 149, Iluka Resources Ltd Series of stacked, deposits over zone of steep dipping shore-line. High-grade pods are enveloped by lower grade HMS. Copi North is 15.5 km long, and averages 107m wide, 3.2m thick, with a weighted average grade of 9.8% HM. (a
Slide 24: Advances in HM separation – FM1 spiral separator
Advances in HM separation – FM1 spiral separator Spiral separators have undergone continuous development over 40 years with recent focus on the processing of progressively finer mineral particles. New spiral separators will treat HMS material <0.1 mm. Mineral Technologies’ FM1 spiral separator
Slide 25: Ti demand is linked to economic growth
Ti demand is linked to economic growth China is now recognised as the current market driver Demand is expected to continue to grow …….. ? Sources: TZMI Mining NSW
Slide 26: Medium term prices - driven by increasing urbanisation
Medium term prices - driven by increasing urbanisation During 2010-2012 mineral sand product prices rose from values typically less than US$600/t to over US$1,500. Since 2012 prices have settled to about US$1,000/t. The medium term fundamentals for zircon and high-grade TiO2 products are favourable
Slide 27: Planned HMS work programme
Planned HMS work programme Assessment of known deposits to determine likely production parameters provided by new technology advances for fine grained HMS. Focus on well located small (25-50Mt) high-grade deposits. Low cost drilling – no need for geophysics or greenfield exploration. Currentl
Slide 28: Corporate snapshot
Corporate snapshot Main office: Sydney, Level 14, 52 Phillip Street Public capital raising of $A4.5m Commenced Trading 17 Feb 2011 Source: Etrade ASX Code: BPL Current cash: AUD0.2m Share price, August 2014: 4.5-5.0 cents Directors/Management Creagh O’Connor (Chairman) Corp Advisor Dr Ian Pringle (M
Slide 29: Thank You
Thank You Ian Pringle, Managing Director, Broken Hill Prospecting Ltd Tel: 0408 548 767 Email: ipringle@bhpl.biz Broken Hill Prospecting Limited Level 14, 52 Phillip Street, Sydney Box 3486 GPO, Sydney NSW 2001 website: www.bhpl.biz
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