Freehill Mining Ltd. · ASX:FHS
Freehill Mining — Investor Presentation (April 2020)
26 slides from Freehill Mining's investor presentation, Apr 30, 2020
Slide 1: The global role of Yerbas Buenas magnetite
For personal use only Freehill Mining Limited (ASX: FHS) The global role of Yerbas Buenas magnetite Investor Stream Webinar Update - April 2020 Peter Hinner – Chief Executive Officer
Slide 2: Important Information and Disclaimer
Important Information and Disclaimer The information contained in this Presentation is of a general nature and does not purport to include or summarise all information that an investor should consider when For personal use only making an investment decision. The Presentation does not contain all the
Slide 3: Drone view of drilling area and trial mine
For personal use only Drone video looking north. The 2019/20 drilling area shown in foreground just prior to drill lines being cut, trial mine and processing plant in mid picture left of centre, three conical intrusives and in background is the start of the mountain range that has El Tofo, Tofo Nort
Slide 4: Project Highlights
For personal use only Project Highlights Low capital cost Low operating cost Quick path to production Scaleable production Excellent location Excellent infrastructure Local & unique buyer Already trial mined and produced High quality magnetite of 62% or +68% Fe Existing local offtake agreement Signi
Slide 5: Extensive concession area
Extensive concession area For personal use only Concession Area Status Area (Hectares) Yerbas Buenas 100% Ownership through Yerbas Buenas SpA & San Patricio SpA 394 Arenas XI 100% Ownership through San Patricio SpA 80 Eldorado Under negotiation for 100% ownership through San Patricio 750 TOTAL 1224
Slide 6: Project location
Project location Project located close to all major infrastructure: • 50 mins flying time from Santiago with up to 9 commercial flights per day For personal use only • City of 400,000 people with all modern commercial services • Pan American highway within 2km of project site • 2 major operating por
Slide 7: Highlights since listing
Highlights since listing ✓ Operating trial mining & processing plant For personal use only ✓ Sale of magnetite concentrates to CMP/CAP for +2 years ✓ Phase 1 drilling, trial mine pit area – RC 23 holes – 4300m ✓ Maiden JORC Mineral Resource Estimate for magnetite ✓ Acquisition of 80 Hec block contai
Slide 8: What's the difference between hematite and magnetite?
What’s the difference between hematite and magnetite? There are several forms of iron ore , including magnetite, hematite, geothite, limonite and siderite however the last three are generally of low economic use. For personal use only Fortescue Hematite mine W.A • Predominantly Hematite Fe2O3 • Typi
Slide 9: Global Magnetite & Hematite Producers
Global Magnetite & Hematite Producers Why magnetite ? Is it a good commodity to be in? For personal use only What are the alternatives? Who are the big producers? 9
Slide 10: Global Magnetite Drivers
Global Magnetite Drivers • China accounts for 81% of Australian iron ore exports • Chinese blast furnace capacity being consolidated, smaller uneconomic ones shut For personal use only • Mills demanding higher grade and quality iron ore feedstocks • structural changes taking place in the Chinese ste
Slide 11: Global Magnetite Drivers
Global Magnetite Drivers Global iron ore production in 2015 was ~2 Bt of which 28% or 560Mt was magnetite. source CRU For personal use only Australia produced ~27 Mt of magnetite concentrate production in 2017 China, the largest global producer, consumer and importer of iron ore, is in the process o
Slide 12: Price premiums
Price premiums For personal use only Chart shows illustrates how the selling price of Iron ores varies significantly by differing grades. Higher grade concentrates attract a disproportionately greater premium 12
Slide 13: Types of magnetite sold
Types of magnetite sold Magnetites sold primarily by their grade and grain size according to end use. Pellets For personal use only • Lump • Concentrate fines -6.3mm to 0.150mm • Sinter feed or sinter • Pellet feed • Pellets 65% Fe is considered a premium product Pellet feeds are generally +67% Fe S
Slide 14: Magnetite in Chile
Magnetite in Chile • Chile is one of the fastest-growing economies in Latin America over the past 20 years For personal use only • Much of the international attraction to Chile’s mining industry is attributed to its extensive mineral endowment that is home to large deposits, as well as the nation’s
Slide 15: Development Concept
Development Concept “Our development strategy will be to keep the processing to a minimum to For personal use only reduce upfront capital costs and minimise operating costs” • Drill, blast, crush and magnetically separate – all done dry • Crushing size anticipated to be nominally 4-6mm to achieve 62
Slide 16: A Simple process to Produce 62% Fe Concentrate
A Simple process to Produce 62% Fe Concentrate • Drill & blast ore in open For personal use only pit • Load into trucks and cart 500m to a crushing plant • Crush to nominally - 6mm • Screen • Separate magnetite iron ore using dry magnets • Sell a 62% Fe concentrate In the past Freehills magnetite co
Slide 17: Product Sales
Product Sales The options: For personal use only • Deliver pellet feed at 58-62% to the Romeral plant 30 km south by highway • Export pellet feed or sinter feed via the public port at Coquimbo 52km south by highway • Export pellet feed or sinter feed under agreement via the CAP dedicated iron ore po
Slide 18: Next steps for Freehills magnetite project
Next steps for Freehills magnetite project For personal use only • Commence Block modelling using recent drilling data underway • Issue JORC Mineral Resource Estimate during May • Commence metallurgical testing of drill core to develop a processing flowsheet • Use processing flowsheet to start plant
Slide 19: A 1mtpa magnetite plant
A 1mtpa magnetite plant For personal use only This image shows a budget 400 tph plant that would have a nominal 1Mtpa concentrate output. Consists of 2 parallel circuits that could be built in 2 phases if necessary. The detail of the magnetic separation plant is not shown
Slide 20: Magnetite project 270kms north of Yerbas Buenas
For personal use only Magnetite project 270kms north of Yerbas Buenas that produces a sinter feed for direct export 20
Slide 21: HOA to acquire El Dorado tenements
HOA to acquire El Dorado tenements ▪ Magnetite potential ▪ Copper potential For personal use only ▪ Gold potential ▪ Located on 2 major fault systems 21
Slide 22: For personal use only
Freehill geologists have done basic rockchip sampling to independently For personal use only confirm presence of gold and followup sampling has been arranged 22
Slide 23: For personal use only
Assays from historical drilling within 700- 1500m showed : For personal use only ▪ CAB-006 -82m @ 0.35% Cu, 19.24% Fe. ▪ CB-01 -10m @ 0.49% Cu, -40m @ 0.40% Cu, 18.5% Fe, -38m @ 0.22% Cu, 19.72% Fe (with 12m at 0.40% Cu), -6m@ 0.62% Cu, 19.7% Fe, -8m@ 0.62% Cu, 21.9% Fe. Exploration highlights of La
Slide 24: For personal use only
Atacama Fault System (AFS) “ame 7 South segments cd 6764900 _$750000 El Romeral Fault El Tofo Fault 6730000 6734000. S738900 s7/2000 | 6746900 5726000 6722000 1
Slide 25: Multiple near-term value catalysts
Multiple near-term value catalysts For personal use only ~4,500m drill program commences for magnetite Complete Magnetite Declare new JORC assaying Resource for Iron Commence Copper exploration Environmental drilling Studies for DIA Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Complete PFS for 1Mt First
Slide 26: Contact
For personal use only Contact: Freehill Mining Limited (ASX:FHS) T: 03 8658 5976 E: info@freehillmining.com.au W: www.freehillmining.com.au 26