Talga Group Ltd. · ASX:TLG
Talga — Talga Resources — Investor Presentation (October 2013)
31 slides from Talga's investor presentation, Oct 15, 2013
Slide 1: Graphite Projects Update
200 kta GRAPHITE DEPOSITS TALGA European natural graphite consumption For personal use only 2.1Mt Total JORC contained graphite RESOURCES 2-3km Distance to sealed road TALGA RESOURCES LTD 20-25km GRAPHITE 1-2 days Distance to rail PROJECTS 100% Delivery time to market UPDATE Owned by Talga _________
Slide 2: Forward Looking Statements and Disclaimer
* Cover picture; Outcropping graphite at Nunasvaara. Forward Looking Statements and Disclaimer: For personal use only This presentation has been prepared by Talga Resources Limited (ACN 138 405 419) (“Issuer”) for the sole purpose of providing an overview of its current prospects and proposed explor
Slide 3: Executive Summary
Executive Summary ‣ Talga Resources Ltd (“Talga”) is a mineral exploration & development company listed For personal use only on the Australian Stock Exchange (“ASX”) since July 2010. ‣ The Company wholly owns multiple graphite, iron ore and copper/gold projects in Sweden gained through the acquisit
Slide 4: Corporate Overview
Corporate Overview For personal use only Board of Directors Capitalisation Summary Keith Coughlan* Non-executive Chairman Perth Ordinary Shares ASX:TLG 63.6M Mark Thompson Managing Director Perth Unlisted Options1 3.75M Piers Lewis Non-executive Director Perth Cash at end of June 2013 $0.6M * Appoin
Slide 5: What is Graphite?
What is Graphite? For personal use only ‣ Graphite is a shiny grey mineral that can occur in nature when carbon in rocks becomes crystalline. ‣ Graphite consists of parallel sheets of carbon atoms in a hexagonal array and requires considerable pressure and temperature to form. A single sheet is call
Slide 6: Natural graphite market
Natural graphite market Volume Comparison of Natural Graphite Market Tonnes Annum 1,300,000 Ni ‣ Natural graphite market (1.0Mt/yr) worth US$1B/yr with main Cg For personal use only 1,100,000 consumption in steel and refractories, batteries, automotive parts 900,000 GRAPHITE and lubricants. 700,000
Slide 7: New Demand Driver
New Demand Driver ‣ Graphite is a significant component of many types For personal use only of battery, particularly Li-ion. ‣ Battery grade graphite is currently made by shaping Internals of Li-ion Battery and treating large flake graphite. ‣ Commonly there is 10x more graphite than lithium in a Li
Slide 8: Graphite Price Trending Above Historic Levels
Graphite Price Trending Above Historic Levels 3 First For personal use only Column SEPT 2013 X X 13 12 13 X After record prices in 2011-12 prices for all graphite types declined but stabilised far above long term historical levels. Price forecast by Industrial Minerals shows expected trends Note tha
Slide 9: Why Graphite is News?
Why Graphite is News? ‣ 80% of world’s natural graphite supply (including 80% For personal use only 95% of world’s amorphous graphite supply) is from China. Of the world’s natural ‣ Increasing state control/mine consolidation and graphite supply is mined in higher domestic consumption have resulted
Slide 10: Why Graphite Changes Is Rising? China Changes
China Changesis Rising? Why Graphite ‣ Increased domestic demand and rising costs have cut exports, in For personal use only some graphite types as much as 50% from 2011-12. ‣ Government has taken ownership of some fields and consolidation has decreased production. Eg. The amorphous graphite mines i
Slide 11: Europe Natural Graphite Imports
Europe Natural Graphite Imports Sweden is Proximal (,000t/annum) Industrial Minerals 2012 Report Data Subset 1+2 to Major Graphite Markets For personal use only ‣ EU consumes 20% of world’s natural graphite production, and imports 95% of its needs (vast majority from China). ‣ EU has classified grap
Slide 12: Advantages of Northern Sweden for Mining
Advantages of Northern Sweden for Mining For personal use only ‣ Ranked 2nd best mining jurisdiction in world by Fraser Institute 2012-13 ‣ Corporate tax rate 22%, Mineral Production tax 0.2%. ‣ Established bulk commodity infrastructure with open access rail, road and ports. ‣ Low cost power from hy
Slide 13: Direct Road and Rail Advantages
Direct Road and Rail Advantages Road through Vittangi project ‣ Graphite projects located proximal to high quality sealed For personal use only roads and open access heavy haulage railway. ‣ Option to road/rail direct to major customers as Sweden links to mainland Europe markets. ‣ Potential $100-20
Slide 14: Shipping Options
Shipping Options Aerial view of Luleå Port ‣ Port of Luleå is the largest dry bulk handling port in Sweden. ‣ Current draught 11.8m with 30m fairway (up to Panamax). For personal use only ‣ Deepening to 15.0m with 50m fairway in 2016. ‣ Currently exporting 9Mt annum including magnetite concentrates.
Slide 15: Talga's Swedish Graphite Projects
Talga’s Swedish Graphite Projects For personal use only ‣ 100% ownership of five graphite projects with multiple deposits offering a full range of market size specifications. ‣ Two advanced stage projects in the development pipeline. These are drilled to JORC Indicated status and preliminary economi
Slide 16: Vittangi Project (Nunasvaara)
Vittangi Project (Nunasvaara) ⤧ For personal use only ‣ Located in Kiruna mining district of northern Sweden, discovered 1898 and declared a state mining field 1929. ‣ Seven exploration permits covering 313.7 km2 ⤧ contain multiple graphite deposits, the main focus being Nunasvaara. Oblique aerial v
Slide 17: Nunasvaara Graphite Deposit
Nunasvaara Graphite Deposit ‣ Current total JORC resource 7.6Mt @ 24.4% Cg. For personal use only ‣ Mineralisation commences at surface. Current strike 1.2km and open; average true width over strike 20m (range 10-50m). Drilled to 165m depth and remains open. ‣ Predominantly microcrystalline graphite
Slide 18: Nunasvaara Section 1800N
Nunasvaara Section 1800N 1736050mE 1736100mE 1736150mE 7523650mN 7523700mN RL RL 350m 350m Trench 21m @ 27.6%Cg N 4144244304 For personal use only NDUH U D S 443 S1 301040 H 20 04 3 1 U U U 1 1 . .2 2 .1 13 .2 24 .0 30 .9 29 .7 32 .0 13 .4 14 .0 28.8m @ 28.5%Cg 34 .3 31 .0 39 .14 Note drillhole samp
Slide 19: Nunasvaara growth potential
Nunasvaara growth potential ‣ Nunasvaara graphite unit extends over 15km For personal use only strike. Talga rock chips average 26.2% Cg with grades up to 46.7% Cg. ‣ Less than 8% of graphite unit drill tested to date. ‣ Additional JORC Exploration Target1 of 34-51Mt @ 20-25% Cg for 0-100m portion o
Slide 20: Raitajärvi Graphite Project
Oblique aerial view looking southeast Raitajärvi Graphite Project Övertorneå Town To Ports ‣ Advantageously located 2km from the Överkalix - Railhead Övertorneå Highway and grid power, 25km to town For personal use only and railway, 130km to port. ‣ Two exploration permits covering 17 km2 . RAITAJÄR
Slide 21: Raitajärvi Large Flake Deposit
Raitajärvi Large Flake Deposit Raitajärvi Mineral Resource (5% Cg lower cut-off) Aug 2013 JORC Tonnes Grade Contained ‣ Current total JORC resource of 4.3Mt @ 7.1% Cg. Classification (Mt) (%Cg) Graphite (t) For personal use only Indicated 3.4 7.3 246,400 ‣ A high proportion of resource is coarse flak
Slide 22: Piteå Jumbo Flake Project
Piteå Jumbo Flake Project ‣ Located on sealed road 50km from port of Piteå and For personal use only ay ilw adjacent to grid power. Luleå Town Ra and Port ‣ 3 historic drillholes targeting base metals intercepted Rai lwa coarse flake graphite within a 4 x 1km EM anomaly. y Piteå Town ‣ 70-90% of fla
Slide 23: Future Growth Pipeline
Future Growth Pipeline ‣ Talga owns multiple advanced stage graphite deposits For personal use only defined by historic diamond drilling, mapping and geophysics. ‣ A total of 117-178Mt JORC compliant exploration targets’ are defined across the projects. Exploration Tonnage Range Grade Range Project
Slide 24: Jalkunen Graphite Project
Jalkunen Graphite Project ‣ Multiple conductors with significant graphite For personal use only intercepted in historic drilling. ‣ Highlights include: Lautakoski 45m @ 19.4% Cg and 9m @ 35.0% Cg Jalkunen 51m @ 15.4% Cg Tiankijokki 26m @ 27.7% Cg ‣ Graphite flake size ranges <50 - 400 µm ‣ Drilling
Slide 25: Pajala Graphite Project
Liviövaara Prospect - Historic drilling and Talga re-assaying Pajala Graphite Project ‣ The Pajala project contains two graphite prospects defined by historic drilling. For personal use only ‣ Lehtosölkä Prospect • 5 historic diamond holes by SGU, best intercept 19.5m @ 7.5% Cg. Contains coarse flak
Slide 26: Indicative Path to Next Graphite Milestones
Indicative Path to Next Graphite Milestones For personal use only 2012 2013 2014 Activity Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Nunasvaara Geophysics ✓ TCL Sweden Ltd Acquisition ✓ Nunasvaara Drill Phase 1 ✓ Nunasvaara Results & Resource ✓ Nunasvaara Scoping Study ✓ Drilling Raitajärvi Phase 1 ✓ ✓ Raitajärvi R
Slide 27: Talga Investment Highlights
Talga Investment Highlights For personal use only Grade High grade graphite resources provide opportunities for low capex, high margin production. Operating in a top mining jurisdiction with producing infrastructure on the doorstep of European markets. Sweden Extremely low cost power, port agreement
Slide 28: Contact details
Contact details: For personal use only TALGA In Australia Mark Thompson - Managing Director RESOURCES 1st Floor, 2 Richardson St West Perth WA 6005 Tel +61 89481 6667 admin@talgaresources.com www.talgaresources.com In Sweden Bruce Cripps, Landschef Luleå, Sweden Tel +46 725707877 bruce@talgaresource
Slide 29: Appendices: Talga Asset Structure and JORC Resources
Appendices TALGA RESOURCES LTD Talga Asset Structure 100% For personal use only and JORC Resources Talga Mining Pty Ltd 100% GRAPHITE Talga Mining Pty Ltd IRON 100% 100% Filial (Sweden) Nunasvaara Graphite Mineral Resource @ 10% Cg lower cut-off Nov 2012 Iron Mineral Resources @ 20% Fe lower cut-off J
Slide 30: Common natural graphite concentrate product sizes, grades and prices
Common natural graphite concentrate For personal use only Graphite market size classification. product sizes, grades and prices Size Size Purity Quote Trade Name microns US Mesh Size (microns) US Mesh % C US $/tonne Amorphous/Ultrafine <10 na 300+ 50+ 94-97 >1800 Amorphous/Fine 10-75 -200 94-97 1350
Slide 31: References & Qualified Persons
References & Qualified Persons For personal use only 1 Exploration Targets: The estimates of exploration target sizes in this announcement are in accordance with the guidelines of the JORC Code (2004) and should not be misunderstood or misconstrued as estimates of Mineral Resources. The potential qu
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