Lynas Rare Earths Limited · ASX:LYC
Lynas Rare Earths — 3rd International Rare Earths Conference 2007
21 slides from Lynas Rare Earths's conference presentation, Nov 5, 2007
Slide 1: 3rd International Rare Earths Conference
For personal use only Nicholas Curtis, Executive Chairman 3rd International Rare Earths Conference November 2007
Slide 2: Strategy: transparent, environmentally sound, integrated supply chain
Our strategy is to develop a transparent, environmentally sound, integrated supply chain For personal use only Mining • Mining and crushing at Mt Weld, Western Australia • Transporting the ‘whole of ore’ to Malaysia Rare Earths Concentration Purpose built processing plant in Malaysia to concentrate
Slide 3: Mt Weld is geologically unique
Mt Weld, located in Western Australia, is geologically unique For personal use only Plan View of Lynas Mt Weld Tenements ► High grade, mine plan at 15% REO ► Low Thorium, 44ppm ThO2 / 1% REO ► Concentration through flotation Cross Section Rare Earths Deposit 10 – 20% 20 – 30% 30 – 40% + 40% -3-
Slide 4: Mt Weld resource has the highest grade of any known deposit
The Mt Weld resource has the highest grade of Rare Earths of any known deposit For personal use only The Central Lanthanide Deposit (4% REO cut-off) Grade Category Tonnes (Mt) (%REO) Tonnes REO Measured 1.2 15.7 186,000 Indicated 5.0 11.8 583,000 Inferred 1.5 9.9 148,000 Total 7.7 12.0 917,000 JORC
Slide 5: Grade control drilling confirmed robustness and ultra-high grade zone
Grade control drilling confirmed robustness of resource and a ultra-high grade zone For personal use only Ultra-High Grade REO Drill Intercepts Drill hole Easting Northing From To Interval REO Grade No (MGA) (MGA) m m m % RC915 455800 6807100 54 58 4 45.54% cut-off RC922 455820 6807140 48 50 2 45.5
Slide 6: Overburden removal commenced at Mt Weld in June 2007
Overburden removal commenced at Mt Weld in June 2007 For personal use only -6-
Slide 7: Downer EDI appointed as contract miner
Downer EDI have been appointed, they are a large experienced contract mining company For personal use only First drill and blast in July -7-
Slide 8: The Mt Weld mine is now well underway
The Mt Weld Rare Earths mine is now well underway For personal use only -8-
Slide 9: Ore trucked and railed to Esperance Port for shipment
The ore shall be trucked then railed to Esperance Port for bulk shipment to Malaysia For personal use only ► Transportation of ore to Malaysia represents only 14% of total costs -9-
Slide 10: Land secured for processing plant in Pahang
Lynas has secured land for the processing plant in the State of Pahang on the east coast For personal use only Satellite Photo of Gebeng Industrial Area Gebeng Industrial Area Kuantan Port -10-
Slide 11: East coast of Malaysia is ideal for the processing plant
The east coast of Malaysia is an ideal location for the processing plant For personal use only ► Strong Federal, State, and Local Government support. Lynas granted “strategic pioneer status” with 10 year tax free period ► Excellent infrastructure in Gebeng Industrial Area Cleared, filled, and leve
Slide 12: Location could host a Rare Earths industry cluster
This manufacturing location has the potential to host a Rare Earths industry cluster For personal use only Port facilities Secondary schooling Industrial land English language Industrial Knowledge Central Utilities Technical colleges Infrastructure Infrastructure Natural gas supply U
Slide 13: Site includes all processing and expansion areas
The site includes all processing. Infrastructures and expansion areas have been included in design For personal use only Concentrator Cracking & Initial Separation Final Separation & Product Finish Administration Services Areas for planned expansion -13-
Slide 14: Engineering design underway with Ranhill WorleyParsons
Engineering design for the plant is well underway with Ranhill WorleyParsons For personal use only ► EPCM contract agreed with Ranhill WorleyParsons Offices in Sydney, Beijing, Kuala Lumpur and East Coast Malaysia ► Engineering well advanced Completed Basic Engineering Design Detailed Design w
Slide 15: Plant scope includes expansion to 21,000t REO p.a.
The processing plant scope includes rapid brown-field expansion to 21,000t REO p.a. For personal use only Initial 10,500t REO Sales Lynas will separate approximately SOLD OUT 5,000 tpa REO in Malaysia, The remaining 5,500 tpa REO of Partially Sold mixed Rare Earths will be either sold or separated a
Slide 16: Additional Rare Earths resources acquired in Malawi
Lynas has acquired additional Rare Earths resources in Malawi, Africa For personal use only Key points for Kangankunde (KGK) Fully permitted for operations Inferred Resource of 107,000 tonnes REO at an average grade of 4.24% REO Deposit remains open at depth Extremely low thorium levels for a Rare E
Slide 17: Development of KGK resource to start in 2008
Lynas will commence development of the KGK resource at the start of 2008 For personal use only The Kangankunde Carbonatite Next steps for the Kangankunde RE deposit Establish an environmental management plan Undertake drilling program to provide drill core and test resource extension Validate the co
Slide 18: Crown Polymetallic resource is the next project
The Crown Polymetallic resource is the next project for Lynas to undertake For personal use only Category Indicated Inferred Total Mt 1.5 36.2 37.7 Crown Ta2O5 0.037% 0.024% 0.024% Polymetallic Nb2O5 1.4% 1.06% 1.07% Resource TLnO 1.65% 1.14% 1.16% ZrO 0.32% 0.3% 0.3% FeO3 46.5% 42.6% 42.8% P2O5 8.9
Slide 19: Crown Polymetallic Rare Earths distribution value over $20/kg
The Crown Polymetallic Resource has a Rare Earths distribution value of over $20/kg For personal use only Mt Mt Weld Weld Crown Rare Earths vs Scoping Composition Baotou Study Composition Volume By Weight By Value In-ground Resource By Weight Production By Value p.a. Lanthanum oxide 16.90% 10% 3% 74
Slide 20: Rare Earths summary
Rare Earths summary For personal use only ► A perfect storm has hit the Rare Earths market, with demand growing strongly and supply restrictions in place ► Lynas is the alternative global supplier of Rare Earths to China, from a unique resource base and will be one of the lowest cost producers in th
Slide 21: Disclaimer
Disclaimer For personal use only ► The information contained in this presentation has been prepared using the information available to Lynas Corporation Limited (Lynas) at the time of preparation of the presentation. ► For further information about Lynas, you can obtain a copy of recent ASX announce
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