Alchemy Resources Limited · ASX:ALY

Alchemy Resources — Shareholder Meeting (November 2018)

21 slides from Alchemy Resources's shareholder meeting presentation, Nov 20, 2018

  1. Slide 1: AGM Presentation

    AGM Presentation 20 November 2018

  2. Slide 2: Building a diversified metals business

    Building a diversified metals business Our aim is to discover and develop nickel-cobalt, base metal and/or gold deposits through systematic, targeted exploration: West Lynn Project (NSW) (100km2) – Ni-Co-Al2O3 inferred resource due January 2019 Cobar Basin (NSW) (674km2) – High-Grade Au and Base Met

  3. Slide 3: Corporate Overview

    Corporate Overview Capital Structure Karonie RAB West Lynn Listed on ASX November 2007 Commencement Ni-Co Option Karonie RAB results Shares on Issue (16 Nov 2018) 440.4m 1.5c Rights Bombora Issue Commence Resource Overflow Options - unlisted 29.5m Hermes Sth West Lynn Diamond RC Results Drilling Res

  4. Slide 4: Low Overheads and Fieldwork Focus

    Low Overheads and Fieldwork Focus • Overheads maintained at low levels • Exploration expenditure has increased over the past 12 months • Exploration Expenditure to Admin Cost Ratio continues to improve (2016 = 0.48, 2017 = 1.6, 2018 = 2.4 (71% in-ground)) • 2018 exploration statistics: 14,810m of dr

  5. Slide 5: NSW Cobar Basin / Lachlan Projects – Epithermal, VMS, Porphyry Cu-Au Targets

    NSW Cobar Basin / Lachlan Projects (1055km2) – Epithermal, VMS, Porphyry Cu-Au Targets • 378km2 in metal-rich Cobar Basin; pre-mining metal inventory of: >6.4 Moz Au >2.2 Mt Cu >4.0 Mt Zn >3.0 Mt Pb >200 Moz Ag (Ref. Aurelia Metals Ltd ASX announcement dated 26 Sept 2012) • West Lynn Project: Ni-Co

  6. Slide 6: West Lynn Ni-Co-Alumina Project

    West Lynn Ni-Co-Alumina Project • Located in world-class Ni-Co-Sc endowed mafic/ultramafic belt hosting large Ni-Co deposits (e.g. CleanTeq’s Sunrise deposit) • Alchemy’s West Lynn Exploration Target = 1530Mt @ 0.70.9% Ni, 0.050.07% Co1) (based on Jervois Mining JORC Code 2004 indicated resource2

  7. Slide 7: West Lynn Ni-Co-Alumina Project

    West Lynn Ni-Co-Alumina Project • 6km from Nyngan railway line linked to Sydney & Newcastle • 13km from Nyngan township (power & labour) • 11km from Scandium International Mining Nyngan Sc Project (May 2016 positive NI43-101 Feasibility) (TSX: SCY - MCap. $61M)* • Geology, mineralogy and metal conte

  8. Slide 8: West Lynn Prospect

    West Lynn Prospect Thick high grade Ni-Co & Al2O3 intercepts returned from recent Alchemy drilling confirmed historic drill intercepts and resource potential 1) : • 12m @ 0.94% Ni, 0.12% Co from 10m • 25m @ 0.99% Ni, 0.06% Co from 36m • 12m @ 0.99% Ni, 0.09% Co from 20m • 19m @ 18.7% Al2O3 from 8m •

  9. Slide 9: Summervale Prospect

    Summervale Prospect Alchemy Resources thick high grade Ni-Co & Al2O3 intercepts 1) : • 15m @ 1.3% Ni, 0.10% Co from 39m • 18m @ 1.0% Ni, 0.06% Co from 36m • 20m @ 0.9% Ni, 0.04% Co from 31m • 54m @ 19.1% Al2O3 from 16m • 30m @ 20.5% Al2O3 from 21m • 24m @ 20.9% Al2O3 from 18m 1) Refer to Alchemy Res

  10. Slide 10: West Lynn / Summervale Prospects – Ni-Co-Al2O3 Exploration Potential

    West Lynn / Summervale Prospects – Ni-Co-Al2O3 Exploration Potential • Potential for expansion of currently defined Ni-Co mineralisation by drilling untested sections of the West Lynn Serpentinite related magnetic highs • Excellent Alumina (Al2O3) resource potential at Summervale 11

  11. Slide 11: Market Cap Comparison

    Market Cap Comparison • West Lynn Project value not yet recognised by the market (c.f. market capitalisation of NSW peer companies) Company Key project Resource MCap $M* Cut-off Dev Stage Source Alchemy Resources Ltd (ALY) West Lynn 1530Mt @ 0.050.07% Co, 0.70.9% Ni (Expl Target) 7 0.04% Co Expl

  12. Slide 12: Overflow Prospect

    Overflow Prospect Hera / Cobar-style Attribute Overflow • Overflow is a Hera style target representing the upper portions of a • Polymetallic (Ag-Au-Cu-Pb-Zn)  ‘Cobar style’ deposit; typified by lead-zinc enriched upper sections • Proximity to major structures  transitioning into copper rich lower

  13. Slide 13: Overflow Drilling

    Overflow OverflowDiamond Drilling VTEM Conductivity Target : Proposed MLEM & Diamond Hole • Phase 1 diamond hole completed • Drilling within Crown Land delayed due to Native Title Right to Negotiate process, NT (OFDD002) – results pending Land Access Agreement negotiations and Culture & Heritage cle

  14. Slide 14: Alchemy NSW 2018/2019 Activity Timeline

    Alchemy NSW 2018/2019 Activity Timeline NSW Activity Timeline & Newsflow 2018-2019 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 West Lynn Phase 3 drilling assays announced  West Lynn SG / density results  West Lynn diamond drilling results   West Lynn metallurgical testwork results 

  15. Slide 15: Western Australia: Karonie Project

    Western WesternAustralia: Australia:Karonie KaronieProject Project • 782km2 of highly prospective exploration licences • Quality geological setting – greenstones containing large scale structures (Keith Kilkenny and Claypan Shear Zone) and mineralised secondary structures, proximal to “internal” gra

  16. Slide 16: Bryah Basin Project – Sandfire and Superior Gold Farm-in Agreements

    Bryah Bryah Basin Basin Project Project (527km (527km 2) – IGOand 2) - Sandfire andSuperior SuperiorGold Gold Farm-in’s Farm-In Agreements • Sandfire Resources NL (ASX: SFR) have acquired IGO’s Farm-in interests1) and are now earning a 70-80% by spending an additional $3.1M before 29 Oct 2019. Alche

  17. Slide 17: Bryah Basin Project – Superior Gold Joint Venture

    Bryah BryahBasin BasinProject Project- Superior - Superior Gold Gold Farm-in Joint Venture / Joint Venture • Superior Gold Phase 1 RC drilling results included: 9m @ 9.3g/t Au from 136.2m, 3m @ 37.7g/t Au from 27m, 4m @ 142.0g/t Au from 56m, 12m @ 6.4g/t Au from 62m, 4m @ 13.5g/t Au from 50m and 3m

  18. Slide 18: Summary

    Summary Value of Alchemy’s projects not recognised in current share price; West Lynn Ni-Co & Al2O3 inferred resource imminent with significant expansion potential close to rail and potential Sc processing plant Overflow Project – host to a potential “company maker” deposit? Karonie Project prospecti

  19. Slide 19: Disclaimer

    Disclaimer Karonie Project and Competent - SouthernPerson’s Prospects Statement Disclaimer This presentation has been prepared by Alchemy Resources Limited (Alchemy or the Company). This document contains background information about Alchemy current at the date of this presentation. The presentation

  20. Slide 20: Appendix 1: Cobalt Price, Demand Forecasts and Supply Risks

    Appendix 1: Cobalt Price, Demand Forecasts and Supply Risks 5 Year Cobalt LME Warehouse Level (t) 5 Year Cobalt Price (US$/t) Starting in January 2019, all major manufacturers operating in China (including Toyota and General Motors) have to meet minimum requirements for producing new-energy vehicles

  21. Slide 21: Appendix 1: Al2O3 Projects and Global High Purity Alumina Growth

    Appendix 1: Al2O3 Projects and Global High Purity Alumina Growth • Altech (ASX: ATC) Meckering HPA • FYI Resources Limited (ASX: FYI) Cadoux HPA Project: 12.7Mt @ 29.4% Al2O3 (MII) 1) Project: 9.6Mt @ 23% Al2O3 , 0.8 Fe2O3, 1.2% K2O (MCap =$52M*) (I&I) 2) (MCap =$14M*) 2)Refer to FYI Resources Limit

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