Diatreme Resources Limited · ASX:DRX
Diatreme Resources — Noosa Mining Conference 2024
31 slides from Diatreme Resources's conference presentation, Jul 18, 2024
Slide 1: High purity silica sand - critical mineral in global demand
For personal use only High purity silica sand - critical mineral in global demand. Neil McIntyre, CEO, Diatreme Resources Noosa Mining Conference 18 July 2024
Slide 2: Important Information
Important Information For personal use only Resource Estimates and Production Targets ASX Announcements The Resource Estimates and Production Targets previously reported by Diatreme Resource Limited (DRX or the Company) This presentation should also be read in conjunction with the DRX Annual Report
Slide 3: Developer of World Class Silica Sands Projects
Developer of World Class Silica Sands Projects Our vision is to become Australia’s pre-eminent listed near-term producer of high purity, “low iron” For personal use only silica sands for use in growing global solar PV and specialty glass markets. 1 2 3 4 One of the world’s purest Potential delivery
Slide 4: Corporate snapshot
Corporate snapshot For personal use only Share price Market capitalisation Shares on issue Cash Debt facility (unsecured) Options A$0.027 A$126m 4,659m A$34.0m A$1.0m 70m 10.0m – Exp 27/5/26 @ $0.025 16 July 2024 16 July 2024 31 March 2024 Repayment 30 May 2025 16 July 2024 10.0m – Exp 27/5/26 @ $0.
Slide 5: Two high purity, low iron silica sands projects in North Qld
Two high purity, low iron silica sands projects in North Qld For personal use only The Northern Silica and Galalar projects will be co-developed with our J/V partner Sibelco. • Long life, sustainable operations with excellent logistics and ESG credentials • Diatreme exploration acreage (500 sq km) a
Slide 6: Sibelco is our development partner
Sibelco is our development partner For personal use only The Northern Silica June 2022 Diatreme enters joint venture with international Project’s high purity materials heavyweight Sibelco. silica sand is • Sibelco paid $35m for 26.8% of Diatreme’s silica projects attracting interest • 2nd tranche in
Slide 7: Sibelco
Sibelco One of the world’s leading providers of industrial minerals For personal use only Sibelco brings world class silica processing and technical knowledge along with marketing and development expertise • Sibelco is also a leading supplier of silica to the Asian market for specialty glass • Globa
Slide 8: High-purity silica is vital for the manufacture of solar panels
High-purity silica is vital for the manufacture of solar panels For personal use only 70% of a solar panel is comprised of 70% high- glass made from high purity, purity silica low iron silica. • High-grade low iron silica sand is an essential raw material in production of solar panels, smartphones a
Slide 9: Silica surge
Silica surge US$32B global market by 2028 For personal use only IMARC predicts global silica sand APAC silica sand sales volume (Mtpa) market will grow from US$22.9B in 2022 to US$32.1B in 2028, with 180 CAGR of 5.6%. 160 40Mtpa of extra high quality sand is needed in ▪ ”More money is now going into
Slide 10: Chinese supply needs
Chinese supply needs Demand exceeds forecasts For personal use only China is facing a bottleneck for the China PV Glass production & silica sand consumption APAC silica sand sales volume (Mtpa) supply of low iron, PV grade silica sand due to strong global demand. PV glass daily production (t/d) Low
Slide 11: Northern Silica Project
Northern Silica Project Positive Scoping Study strengthens development plans. Feasibility Study now underway. For personal use only Target: Production of 121 million Note: Refer to ASX announcement 14 June 2023 – “Positive Scoping Study for Northern Silica Project strengthens development plans”. Dia
Slide 12: Ports North/CFSM/Diatreme
Ports North/CFSM/Diatreme Unlocking approvals & infrastructure For personal use only • Tripartite Entry Deed signed with Far North Queensland Ports Corporation (Ports North), the relevant port authority for Cape Flattery Port & port incumbent operator Cape Flattery Silica Mines (CFSM, Mitsubishi own
Slide 13: Metallica takeover bid
For personal use only Metallica takeover bid
Slide 14: Transaction update
Transaction update Diatreme’s Offer is unconditional, with 83.25% acceptances (as at 16 July 2024) with strong momentum behind the Offer For personal use only Key deal terms Offer status Next steps Offer consideration Offer is unconditional Offer consideration is BEST Closing date – 23 July 2024 1.3
Slide 15: Transaction highlights and rationale
Transaction highlights and rationale Logical consolidation of strategic silica projects in the Cape Flattery region to drive value for ALL shareholders and stakeholders For personal use only Offer represents a highly Strong strategic rationale Opportunity for Metallica Integration, scalability and S
Slide 16: Potential to create FNQ critical minerals hub
Potential to create FNQ critical minerals hub Queensland Critical Minerals Strategy to oversee $245M investment in critical minerals, driving energy transition to renewables For personal use only ▪ Cape Flattery area identified by the Queensland Government as a potential silica critical minerals hub
Slide 17: Silica Projects
For personal use only Silica Projects
Slide 18: Mineral Resource Estimate increased by more than 400% in three years
Mineral Resource Estimate increased by more than 400% in three years For personal use only 2024 Measured, Indicated & Inferred Mineral Resource 402Mt Northern Silica Project Galalar Project 235.0Mt 75.46Mt >99.29 (SiO2%) >99.18 (SiO2%) Note: Under the JORC Code, 2012 Edition an Indicated Mineral Res
Slide 19: Northern Silica Project
Northern Silica Project Project Description ▪ Phase 1: Production of 3Mtpa; transhipping via barge to ocean-going vessel (OGV) within Port of Cape For personal use only Flattery using existing berthing “pocket”. ▪ Phase 2: Production of 5Mtpa; direct loading from jetty to OGV docked at wharf. ▪ New
Slide 20: Northern Silica Project
Northern Silica Project Project adjacent to Cape Flattery Silica Mine. For personal use only Phase 2 (years 3 -25) Production of 5Mtpa loaded from jetty to ocean-going vessel (OGV). • Phase 1: Production of 3Mtpa; transhipping via barge to OGV within Port of Cape Flattery using existing wharf berthi
Slide 21: One of the world's purest silica sand projects
Northern Silica Project One of the world’s purest silica sand projects For personal use only The Northern Silica Project’s high purity, low iron product can be used as a direct feed by manufacturers. Offtake advancing – MOU with FLAT Glass, one of the world’s largest manufacturers of photovoltaic (P
Slide 22: Galalar Project
Galalar Project Strategic 75Mt silica resource For personal use only Galalar Project anticipated to feed future Northern Silica Project production. Cooktown Nob Point Galalar Project High purity silica sand in global demand. 22
Slide 23: Maintaining the rights of Traditional Owners
Maintaining the rights of Traditional Owners For personal use only Walmbaar Aboriginal Corporation ▪ Hope Vale Congress also has role as trustee of Aboriginal Freehold land and Hope Vale Congress Aboriginal ▪ Detailed pre-clearing inspections for any exploration Corporation represent interests of wi
Slide 24: Community Engagement
Community Engagement For personal use only Current focus areas: ▪ Supporting and facilitating engagement with community members to attend the Social, Cultural and Heritage assessment works for the EIS ▪ Co-designing of workforce preparedness program in direct consultation with the Dingaal clan (Walm
Slide 25: Overall Program 2023-2026
Overall Program 2023-2026 For personal use only 1H - 2023 Scoping Study completed – EPBC referral determines EIS required 2H - 2023 Engage consultant team - commence EIS site assessments – data collection 1H - 2024 NSP Declared Coordinated Project - Ongoing EIS site assessments – Draft ToR 2H – 2024
Slide 26: Delivery timeline 2023-2026/7
Northern Silica Project Delivery timeline 2023-2026/7 Note: Subject to timely advancement through State and Federal Government permitting and approval process. For personal use only 1H 2023 2H 2023 1H 2024 2H 2024 1H 2025 2H 2025 1H 2026 2H 2026 Obtain ML & EA Scoping Study & Commence EIS Complete E
Slide 27: Contact Details
For personal use only CONTACT DETAILS Critical High Office: Unit 8, 61 Holdsworth Street Purity Silica Coorparoo, QLD, 4151 P: 07 3397 2222 E: manager@diatreme.com.au W: www.diatreme.com.au
Slide 28: Appendices
For personal use only APPENDICES Critical High Purity Silica
Slide 29: Resources and Reserves Statement
Resources and Reserves Statement For personal use only Global Resources – Northern Silica Project, Galalar Silica Project & Western Resource Area Density JORC Resource Category Silica sand (Mt) Silica sand (Mm3) Cut-off SiO2 (%) SiO2 % Fe2O3 % TiO2 % LOI % Al2O3 % Total % (t/m3) Galalar Measured* 43
Slide 30: Competent person's statement
Competent person’s statement For personal use only Statement in accordance with the Australasian code for reporting of exploration results, mineral resources Mineral Resources and ore reserves (the JORC code) The information in this presentation that relates to Mineral Resources at the Galalar Silic
Slide 31: Experienced Leadership
Experienced Leadership Our team has extensive experience in the government, mining and resources sector For personal use only Wayne Swan Neil McIntyre Michael Chapman Cheng (William) Wang Kara Keys Chairman CEO Non-Exec Director Non-Exec Director Non-Exec Director Mr Swan enjoyed a lengthy Mr McInty