Cauldron Energy Limited · ASX:CXU

Cauldron Energy — Investor Presentation (July 2014)

36 slides from Cauldron Energy's investor presentation, Jul 14, 2014

  1. Slide 1: Re-Release of Company Presentation

    14 July 2014 RE-RELEASE OF COMPANY PRESENTATION For personal use only ABN 22 102 912 783 32 Harrogate Street, West Cauldron Energy Limited (ASX: CXU) (“Cauldron” or “the Company”) wishes to Leederville WA 6007 notify shareholders of the re-release of the “Company Presentation” announcement PO Box 13

  2. Slide 2: Guangzhou Joseph Roadshow

    For personal use only Guangzhou Joseph Roadshow June, 2014

  3. Slide 3: Disclosure Statements

    Disclosure Statements Forward Looking Statements For personal use only This presentation may include forward-looking statements with respect to achieving corporate objectives, developing additional project opportunities, the Company’s analysis of opportunities and the development of these and certai

  4. Slide 4: Corporate Overview

    Corporate Overview For personal use only UNDERVALUED COMPANY | PROJECTS POISED FOR GROWTH Capital Structure* Board & Management Ø Ordinary shares 178.56M Ø Tony Sage Chairman Ø Unlisted options 11.8M Ø Brett Smith Exec. Director Ø Qiu Derong Non-Exec. Director Ø Market cap. (AUD$0.31) A$55.18M

  5. Slide 5: CXU Key Uranium Assets

    CXU Key Uranium Assets For personal use only TOP-SHELF URANIUM AND BASE METAL ASSETS Australia Ø Yanrey Project, WA (U) Ø Bennet Well: Potential growing ISR opportunity Ø Leach Testing paves path to ISR (96%) Ø Marree Project, SA (Pb-Ag-Cu-Au) Ø Large target area with high grade mineralisation

  6. Slide 6: Recent CXU News

    Recent CXU News For personal use only CXU Secures AU$11 Million funding from China Jun 2014 Funding and new director secured from supportive shareholders and new Chinese investors CXU congratulates RNI and FEL on discovery May 2014 Cauldron major shareholder in FEL, a 20% free carry on RNI’s new dis

  7. Slide 7: Bennet Well, Yanrey Region

    Bennet Well, Yanrey Region For personal use only ISR SUITABILITY VALIDATED BY LEACH TESTS Ø Resource1 upgrade required Ø Core testing indicates significant Bennet Well uranium grade increase 122%-147% Ø Change to JORC 2012 Ø Drilling from Sept 2013 to be included Ø Leach tests have put Bennet W

  8. Slide 8: Yanrey Regional Potential

    Yanrey Regional Potential WIDESPREAD URANIUM ALONG PALAEO For personal use only COASTLINE SIMILAR TO BENNET WELL Exploration Target(1) 30-115 Mlb @ 250-900 ppm eU3O8 to be reviewed following resource upgrade (please also refer to Annexure Slides 30-34). (1) Exploration Target: The estimates of Explo

  9. Slide 9: Uranium Extraction Results

    Uranium Extraction Results For personal use only BOTTLE ROLL TESTS CONFIRM HIGH URANIUM EXTRACTION Ø High levels of Uranium extraction achieved and Low Cost extraction anticipated Ø Bottle roll tests in acidic media without oxidant Ø Low acid consumption demonstrated Ø Uranium appears to exist i

  10. Slide 10: Permeability vs Assays vs Leach Results – YNDD018

    88.00m 55.8 md 88.10m 25.2 md Permeability vs Assays vs Leach Results – YNDD018 For personal use only URANIUM DISTRIBUTION WITH DEPTH HOLE YNDD018 START OF 89.95m – 95.05m Ø Image: mineralised zone in hole MINERALISED ZONE 5.1m @ 1209ppm U3O8 YNDD018 (red) and permeability data (yellow) 90.83m 4280

  11. Slide 11: Yanrey Uranium Suited to ISR

    Yanrey Uranium Suited to ISR For personal use only MINERALOGY PROVIDES REDOX ROADMAP Ø QEMSCAN and manual SEM testing strongly indicate several provenance areas for uranium mineralisation, all soluble = amenable to ISR Ø Uranium mineralisation forms in reducing environments Ø Reducing agents (zon

  12. Slide 12: QEMSCAN/SEM Results

    QEMSCAN/SEM Results For personal use only YNDD018 BENNET WELL START OF SOUTH MINERALISED ZONE Ø Dominant uranium- containing phase 89.95m – 95.05m with a chemical 5.1m @ 1209ppm U3O8 composition corresponding to the mineral SODIUM- ZIPPEITE Sample DD00418: Ø High recovery rates 93.25m – 93.40m sug

  13. Slide 13: Yanrey 5yr Production Plan

    Yanrey 5yr Production Plan For personal use only LOW CAPEX ISR PROJECTS PROVIDE GROWTH PLATFORM Ø Sandstone roll-front ISR operations production price : $8/lb - $16/lb globally Ø Revenue at $50/lb is 4-5 times C1 cash cost Ø Realistic production timeframe following first WA uranium mine to receiv

  14. Slide 14: Potential World Class Deposits

    Potential World Class Deposits For personal use only MARREE, SOUTH AUSTRALIA RIO COLORADO, ARGENTINA Ø Large poly-metallic alteration area, Ø 16km outcrop, 11m wide, open at depth numerous historical mining sites Ø multiple samples taken average grades Ø Geophysical anomalies undercover and >150

  15. Slide 15: World Uranium News

    World Uranium News For personal use only GLOBAL PROBLEM: GROWING DEMAND AND INSUFFICIENT SUPPLY China on Track to Beat 2020 Nuclear Power Targets Mar. 2014 China on track to meet nuclear power targets with new plant construction expected to resume shortly Japan to Restart 48 Nuclear Reactors Feb. 20

  16. Slide 16: World Nuclear Energy Market

    World Nuclear Energy Market For personal use only EMERGING ECONOMIES BANKING ON NUCLEAR POWER TO MEET ELECTRICITY DEMANDS Ø IAEA forecasts that if policies remain unchanged, world energy demand is projected to increase by over 50% by 2030* Ø Nuclear power is the lowest social and economic cost pow

  17. Slide 17: China's Energy Market

    China’s Energy Market For personal use only REFORMING ENERGY OUTPUT AND CONSUMPTION PATTERS Electricity demands growing at average annual rate of 10% Ø In 2013, installed power capacity rose by 94M kw, including 2.21M kw from nuclear Ø 6 new nuclear power facilities approved since end of 2012 Ø C

  18. Slide 18: Uranium Market Analysis

    Uranium Market Analysis For personal use only UNDERSUPPLY TO FUEL URANIUM RESTART +50% price growth by 2018* Total Reactors Under Construction Globally: 72 (~20% existing) Ø 2018 spot price to reach US$72/lb U3O8 Higher uranium prices essential Ø Non ISR incentive price +$70/lb U3O8 Ø Stagnated d

  19. Slide 19: Demand Increase/Supply Decrease

    Demand Increase/Supply Decrease For personal use only COMMODITY PRICE IS BIGGEST IMPEDIMENT TO SUPPLY GROWTH Ø Current uranium spot price $34.85/lb Ø production trigger price $85/lb Ø Secondary supply reducing Ø Less high enriched warheads Ø Tails retreatment not cost effective at current price

  20. Slide 20: Socially Responsible Power

    Socially Responsible Power For personal use only NUCLEAR ENERGY ESSENTIAL MAJOR POWER GENERATION SOURCE By 2020, China & India will need additional >40Mlb uranium: equivalent to ~40% of 2011 global mine supply Ø Low emission power: nuclear is the only carbon-free baseload source of electricity Ø M

  21. Slide 21: Climate Change

    Climate Change For personal use only NUCLEAR POWER ESSENTIAL TO THE GLOBAL RESPONSE Ø Climate change requires +60% reduction in greenhouse gas emissions Ø China, Japan, India, Pakistan, Argentina embrace nuclear power as essential to new domestic and global energy mix Conservative estimates of the

  22. Slide 22: Investment Highlights

    Investment Highlights For personal use only PREDICTED UPSURGE IN URANIUM PRICE POTENTIAL FOR SIGNIFICANT RETURNS ON INVESTMENT Ø Outstanding cash margin at low commodity prices Ø Commodity prices expected to more than double to meet world demand Ø Undervaluation of quality uranium miners creates

  23. Slide 23: Contact Us

    For personal use only CONTACT US Simon Youds David Tasker/ Colin Jacoby Cauldron Energy Limited Professional Public Relations 32 Harrogate Street Tel: +61 (8) 9388 0944 West Leederville WA 6007 M: +61 (0) 433 112 936 Tel: +61 (8) 6181 9796 E: david.tasker@ppr.com.au E: info@cauldronernergy.com.au ww

  24. Slide 24: Appendix

    For personal use only APPENDIX Pg 23

  25. Slide 25: Permeability vs Assays vs Leach Results – YNDD022

    PERMEABILITY VS ASSAYS VS LEACH RESULTS – YNDD022 For personal use only The image shown on the 58.90 – 60.00m left illustrates START OF 58.92m 1.1m 59.10m @ the MINERALISED Z55.8 ONE md 110 md 473ppm U3O8 mineralised 59.39m 59.58m 59.87m zone in hole 604 md 2400 md 3.48 md YNDD022 (red) and 60.06m p

  26. Slide 26: QEMSCAN/SEM Results: YNDD022 (Bennet Well East)

    QEMSCAN/SEM RESULTS: YNDD022 QEMSCAN analysis (BENNET WELL EAST) iden>fied URANIFEROUS For personal use only ZIRCONS and Sample DD00327: COFFINITE within 59.10m – 59.25m the YNDD022 START OF mineralised zone. 1208ppm U3O8 MINERALISED ZONE Manual SEM 58.90 – 60.00m examina>on 1.1m @ 473ppm U3O8 clearl

  27. Slide 27: Modal Mineralogy for Samples DD00327 and DD00418

    MODAL MINERALOGY FOR SAMPLES DD00327 (YNDD022) AND DD00418 (YNDD018) For personal use only MODAL ABUNDANCES IDENTIFIED BY QEMSCAN 100 Uranium Bearing Minerals in Higher Grade Intervals Trace & Others Mineral Chemical Formula YNDD022 YNDD018 Uranium Phase U, S, Si, Zr, O, Na 0.020 0.36 90 Total U-­‐M

  28. Slide 28: ICP-MS and DNA Assays vs Downhole Gamma Results

    ICP-MS AND DNA ASSAYS VS DOWNHOLE GAMMA RESULTS Max Assay Probe Grade For personal use only Assay Assay ME-­‐MS61 DNA Assay Grade Grade Grade Width Resource Depth Depth U308 U308 Hole ID Eas>ng Northing TD (m) RL (m) Width U308 Width Width Change Name From To (ppm) (ppm) (m) (ppm) (ppm.m) (ppm.m) (%

  29. Slide 29: XRF Assays vs ICP and Downhole Gamma Results

    XRF ASSAYS VS ICP AND DOWNHOLE GAMMA RESULTS Gamma For personal use only ICP XRF XRF to Assay Assay ICP XRF Probe ICP to Assay Assay Assay Gamma TD Resource Depth Depth U308 U308 Grade XRF Hole ID Eas>ng Northing RL (m) Width Grade Grade Probe (m) Name From To (ppm) (ppm) Width Change (m) Width Widt

  30. Slide 30: Uranium Extraction Testwork

    URANIUM EXTRACTION TESTWORK FINAL LEACH TESTS UNDERTAKEN AT ANSTO, NSW For personal use only Leach Results Leach tests undertaken in Sydney tap water in small agitated vessels to minimise matrix effects Leach No. Composite Test Type pH ORP (mV, Temp Es>mated Oxidant Feed U3O8 Residue Uranium Ag/AgCl

  31. Slide 31: Exploration Target Area Derivation

    ExploraOon Target Area DerivaOon For personal use only • Basis of Statement and Descrip2on of Previous Explora2on Ac2vity: The exploraOon target size has been calculated using a mix of drill results from recent drilling and historical drilling, airbourne magneOc survey, understanding of uranium depo

  32. Slide 32: Annexure: Exploration Target

    ANNEXURE: EXPLORATION TARGET ExploraOon Target Summary For personal use only Yanrey Prospects / Resources February 2013 Minimum Target Maximum Target Current Resource Resource Name Tenement Channel Name Uranium Identified Highest Grades To Date Comments (Million Pounds) (Million Pounds) (Million Pou

  33. Slide 33: Exploration Target Detail Page

    ExploraOon Target Detail Page 2 For personal use only • The revised explora>on target of 30 to 115 million pounds of eU3O8 at a grade of 250 to 900 ppm is based upon the following informa>on: • The recently discovered Bennet Well South and Bennet Well East resources were drilled on 200 to 400 metres

  34. Slide 34: Exploration Target Detail Page

    ExploraOon Target Detail Page 3 For personal use only • Bennet Well Deep South is currently a very small uranium resource based on a limited amount of drilling. The palaeochannel defined by drillhole reviews and geophysics appears to be over five kilometres long and has prospecOve sediments for uraniu

  35. Slide 35: Exploration Target Detail Page

    ExploraOon Target Detail Page 4 For personal use only • Cauldron owns the tenement that surrounds Paladin Energy’s Manyingee Deposit. Historical drilling has shown extensions to the Manyingee Deposit that exists on Cauldrons’ tenement. There are three historically idenOfied palaeochannels with numero

  36. Slide 36: Exploration Target Detail Page

    ExploraOon Target Detail Page 5 For personal use only • The Main Road Channel produced a result of 1.05m at 566 ppm eU3O8 in historical drilling. Cauldron has not yet completed any addiOonal drilling. A close spaced gravity survey completed in 2006 and the reprocessed Airborne EM survey completed in

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