Slide 1: Thunderbird: The Emerging Force in Mineral Sands
For personal use only Thunderbird The Emerging Force in Mineral Sands TZMI & Investor Presentation November 2016 ASX : SFX 1
Slide 2: Disclaimer
DISCLAIMER PREVIOUSLY REPORTED INFORMATION This presentation includes information that relates to Exploration Results, Exploration Targets, Mineral Resources, Ore Reserves, a Pre-feasibility Study and Technical Studies which were For personal use only prepared and first disclosed under the JORC Code
Slide 3: Corporate Snapshot
CORPORATE SNAPSHOT For personal use only ASX ISSUED SHARE SHARE PRICE MARKET CASH ENTERPRISE TOP TWENTY CODE SHARES OPTIONS (3 Nov 2016) CAP (UNAUDITED)1 VALUE SHAREHOLDERS2 SFX 180.7M 12.5M2 A$0.55 A$99M A$16M A$83M ~49% Price (AUD) $0.85 $0.75 $0.65 $0.55 $0.45 13% Directors $0.35 $0.25 Institutio
Slide 4: Our Team – Experienced & Skilled
OUR TEAM – EXPERIENCED & SKILLED For personal use only BOARD MANAGEMENT Mining Engineer with over 35 years experience leading the financing, development and operation of mines in Australia and overseas, including roles with BHP Billiton and Rio Tinto. Previously Will Burbury Bruce McFadzean Managing
Slide 5: Thunderbird - Discovery to Production
THUNDERBIRD - DISCOVERY TO PRODUCTION Sheffield ASX listed December For personal use only 2010 (ASX:SFX) Initial drill hole to BFS in 4 Years Lead Agency status with Department of Mines and Petroleum Targeting first production from Thunderbird early 2019 Potential multi-decade (+40 year) o
Slide 6: Thunderbird – A World Class Ore Reserve
THUNDERBIRD – A WORLD CLASS ORE RESERVE 6.00 Murray Basin (ILU) For personal useTiOonly Grade Perth Basin (ILU) 5.00 Fairbreeze (TROX) In Situ Titanium Minerals (Ilm+Lux+Rut) % Namakwa (TROX) 2 QMM (RIO) THUNDERBIRD (SFX) 4.00 Kwale (BSE) Moma (KMR) Dongara (TROX) 3.00 Richards Bay (RIO) 2.00 Cyclon
Slide 7: Tier 1 Asset - High Grades + Long Life
TIER 1 ASSET - HIGH GRADES + 40 YEAR LIFE For personal use only • The largest zircon rich deposits to be discovered in the last 30 years o Significantly higher grades than its peers (Richards Bay, Namakwa, Moma, Perth Basin) o 3-4 times bigger than Iluka’s Jacinth-Ambrosia discovery in 20041 o Targe
Slide 8: Market Conditions Have Turned
MARKET CONDITIONS HAVE TURNED For personal use only MARKET DYNAMICS SPECIFICATIONS & SAMPLES PRICE FORECAST • Improving market in mineral • Final product specifications complete • Sulphate Ilmenite prices sands industry for all products predicted to increase further • Sulphate and chloride ilmenite
Slide 9: Transport Advantage to Asian Markets
TRANSPORT KEY TARGETSADVANTAGE TO ASIAN MARKETS For personal use only 9
Slide 10: BFS Status – 80% Complete
BFS STATUS – 80% COMPLETE KEY TARGETS For personal use only KEY DELIVERABLES TIER 1 STUDY • BFS Completion early Q1 2017 Study Manager • 7.5-10.0 Mt phase 1 capacity with doubling of capacity in phase 2 Mineral Sands • ~750t/hr constant feed rate at rougher Processing Specialist spiral • Metallurgic
Slide 11: Community, Environmental & Mining Licence
COMMUNITY, ENVIRONMENTAL & MINING LICENCE KEY TARGETS For personal use only COMMUNITY/EMPLOYMENT ENVIRONMENTAL & LICENCE • Local workforce, no FIFO, salaries stay in • Government support via “Lead Agency Status” local community from Department of Mines and Petroleum • Significant Aboriginal employme
Slide 12: VHM & Deposit Thickness = Value
VHM & DEPOSIT THICKNESS = VALUE • Thunderbird has a continuous For personal use only High Grade Zone of up to 46m thickness: the “GT Zone” • Deposit economics are based on GT Zone’s strong continuity and very high Valuable HM grades • Near-surface, high value areas targeted in early years of product
Slide 13: Exceptional Grade, Continuity & Low Strip
EXCEPTIONAL GRADE, CONTINUITY & LOW STRIP For personal use only • GT Zone has excellent continuity of: o High grades o Thickness o Sharply defined boundaries • Consistent high-grade feed to WCP and a flexible mine path • Very low strip ratio (<0.7:1:0) targeted over LOM NB - See previous slide for s
Slide 14: Test Pits Support Dozer Trap Mining
TEST PITS SUPPORT DOZER TRAP MINING • Three trenches excavated in up-dip region of the deposit For personal use only have confirmed dozer-trap mining as preferred mining method. • 8-10m deep test pits excavated with a D10 dozer achieving good productivity rates. • Ore performed well through screenin
Slide 15: Conventional Processing – Phase 1
CONVENTIONAL PROCESSING – PHASE 1 • Conventional heavy mineral sands For personal use only processing circuit to deliver zircon, ilmenite, and HiTi88 products1 • Includes an ilmenite upgrade step using a low temperature roast (“LTR”) • LTR upgrades the primary ilmenite to 56.1% TiO2 sulphate ilmenit
Slide 16: LTR Ilmenite – Premium Product
LTR ILMENITE – PREMIUM PRODUCT HIGH TITANIUM + HIGH ACID SOLUBILITY = PREMIUM PRICING For personal use only • Acid Solubility >95% • Outstanding FeO:Fe2O3 ratio at 1.2 • Perfect reactivity rate • Market Leading quality Raw Ilmenite NB: graph illustrates %TiO2 Solubility vs Grade, Sheffield LTR Ilmen
Slide 17: Financial Optimisation
FINANCIAL OPTIMISATION • BFS optimisation and planning by Whittle Consulting Pty Ltd and Entech Mining For personal use only Consultants • Phase 1 - 7.5 - 10Mt/yr with throughput fixed at ~750tph at the rougher spirals • Phase 2 - double throughput to ~1,500tph at the rougher spirals. • Phase 2 timi
Slide 18: Logistics – Simple & Close to Market
LOGISTICS – SIMPLE & CLOSE TO MARKET For personal use only • Products trucked 140km from mine to ports at Derby and Broome, including 110km on major National Highway • Road haulage fleet and marine barging based in Derby • Access agreement in place for port storage, wharf and bulk handling facility
Slide 19: Regional Exploration Potential
REGIONAL EXPLORATION POTENTIAL For personal use only NEW PROVINCE – MULTIPLE DISCOVERIES Bells Tower Seagull • Limited scout drilling has lead to new discoveries including the zircon-rich Night Country Downs Train prospect, e.g. 7.5m @ 8.23% HM1 Thunderbird • Night Train has a high value mineral ass
Slide 20: A Project for the Community
A PROJECT FOR THE COMMUNITY • In excess of 140 direct full time jobs from the regional community. For personal use only Substantially more employment via indirect support for the operations • Significant business opportunities with a key focus on Aboriginal participation • Minimal environmental impa
Slide 21: Thunderbird Key Targets & Next Steps
THUNDERBIRD KEY TARGETS & NEXT STEPS1 • BFS – announce early Q1 2017 For personal use only • Native Title Agreement 2017 • Environmental permitting 2017 • Off-take discussions 2016/17 • Funding options assessed 2016/17 • Exploration drilling 2017 • Partner discussions 2016/17 • Construction commence
Slide 22: Key Investment Highlights
KEY INVESTMENT HIGHLIGHTS • Tier 1, high grade, large scale mineral sands project For personal use only • Stable mining jurisdiction • High grades and quality products • Zircon and ilmenite rich • Well advanced asset – BFS nearing completion • Utilises conventional mining and processing methods • Te
Slide 23: Thunderbird Deposit Ore Reserves
APPENDIX 1 THUNDERBIRD DEPOSIT ORE RESERVES1,2 For personal use only Valuable Heavy Mineral (VHM) in-situ grade In-situ HM Valuable HM Grade (In-situ)2 Ore Reserve Ore Tonnes HM Grade Slimes Osize Tonnes Zircon HiTi Leuc Leuc Ilmenite Category (millions) (%) (%) (%) (millions) % % % % Proved 115.1 1
Slide 24: Thunderbird Deposit Mineral Resource
APPENDIX 1 THUNDERBIRD DEPOSIT MINERAL RESOURCE1,2 Valuable HM Grade (In-situ)3 For personal use only Mineral Material In-situ HM Cut-off HM Grade Slimes Osize Resource Tonnes Tonnes Zircon HiTi Leuc Leuc Ilmenite (HM%) (%) (%) (%) Category (millions) (millions) (%) (%) (%) (%) Measured 510 45 8.9 0