Australian Mines Limited · ASX:AUZ
Australian Mines — Shareholder Meeting (November 2016)
28 slides from Australian Mines's shareholder meeting presentation, Nov 22, 2016
Slide 1: Annual General Meeting
For personal use only Annual General Meeting 22 November 2016
Slide 2: Important note on these slides
Important note on these slides For personal use only This document is a visual aid accompanying a presentation to shareholders by the Managing Director on 22 November 2016. It is not intended to be read as a stand-alone document. It contains select information, in abbreviated or summary form, and do
Slide 3: Australian Mines objective
Australian Mines objective For personal use only … to become the world’s largest producer of scandium “The world wants scandium – there just isn’t enough of it available today in sufficient quantities …” Richard Karn, Streetwise Report, August 2011 The Sconi Project is “uniquely positioned to delive
Slide 4: Australian Mines - a global scandium company
Australian Mines - a global scandium company For personal use only • Acquiring 100% interest in the Flemington Scandium Project in NSW one of the highest-grade scandium deposits in the world a continuation of Clean TeQ’s Syerston ore body • Acquiring up to 75% interest in the Sconi Scandium Proj
Slide 5: Scandium - the technology metal
Scandium - the technology metal For personal use only • Scandium Oxide (Sc2O3) is a relatively scarce, high-value mineral used to produce aluminium alloys • Resulting alloys suitable for the manufacture of weldable aluminium products such as car chassis & panels, and aircraft fuselages • Favourable
Slide 6: The Market: 800% increase in demand by 2026
The Market: 800% increase in demand by 2026 For personal use only • Existing demand across multiple existing civilian and military applications, including: automotive & aircraft manufacturing solid oxide fuel cell batteries sporting equipment • Current scandium supply is produced as a by-produ
Slide 7: Mine Development Operations
Mine Development Operations For personal use only www.australianmines.com.au
Slide 8: Flemington Scandium-Cobalt Project
Flemington Scandium-Cobalt Project For personal use only • Located in Australia’s premier scandium-cobalt province, 450 kilometres west of Sydney • Australian Mines reached agreement to acquire 100% interest in this project • Flemington ore body is the continuation of Clean TeQ’s Syerston Project
Slide 9: High-grade resource with significant upside
High-grade resource with significant upside For personal use only • Flemington ore body is one of the highest-grade scandium deposits in the world • Mineralisation remains open Potential to significantly increase the current Mineral Resource • Flemington project area also covers western section of
Slide 10: Results of scoping study due March 2017
Results of scoping study due March 2017 For personal use only • Scoping study of Flemington Scandium deposit is anticipated to be completed by March 2017 Study being undertaken by international resource consulting firm, SRK Consulting As scandium mineralisation occurs from surface, a shallow low
Slide 11: Sconi Scandium-Cobalt Project
Sconi Scandium-Cobalt Project For personal use only • Located near the nickel and cobalt mining centre of Greenvale, 250 kilometres west of Townsville • Pre-Feasibility Study completed demonstrating production of at least 51 tonnes of scandium oxide per year for 20+ years • Potential for a mining op
Slide 12: Sconi is almost ready to go
Sconi is almost ready to go For personal use only • Sconi already ticks a lot of boxes: Mining Lease granted Plant design identified Electricity source confirmed Proposed water supply on site Commonwealth environmental assessment completed * Total contained scandium metal tonnage multiplie
Slide 13: Final mining approval process underway
Final mining approval process underway For personal use only • Definitive Feasibility Study being undertaken by SRK Consulting anticipated to be completed within 2 years • Off-take Heads of Agreements for scandium oxide from Sconi operations previously in place Discussions with potential custome
Slide 14: Proposed Development Timeline
Proposed Development Timeline For personal use only • Australian Mines’ strategy: develop the Sconi Scandium-Cobalt Project to generate revenue in 2020 to be followed by production at Flemington Scandium-Cobalt Project by 2022 www.australianmines.com.au
Slide 15: Estimated production from Sconi Mining Op.
Estimated production from Sconi Mining Op. For personal use only Fluctuation in anticipated annual cobalt and nickel production is a result of Australian Mines optimising its Sconi mining operation for scandium oxide production. (See Metallica Minerals’ announcement of 16 October 2012) www.australia
Slide 16: Scandium operations: A peer comparison
Scandium operations: A peer comparison For personal use only Flemington Sconi Syerston Company Australian Mines Australian Mines Clean TeQ (ASX: AUZ) (ASX: AUZ) (ASX: CLQ) Market cap $10 million - $191 million (as at 21 Nov. 2016) Resource Measured + Indicated Measured + Indicated Proved + Probable
Slide 17: Exploration Projects
Exploration Projects For personal use only www.australianmines.com.au
Slide 18: Doolgunna – Marymia Gold Project
Doolgunna – Marymia Gold Project For personal use only • Located within 50 kilometres of the Plutonic and Marymia Gold Mines, 900 kilometres north of Perth • Australian Mines on track to earn 80% interest in the project • High-grade gold discovered within project area in late 2015 10 metres @ 8.79
Slide 19: Mineralised corridor confirmed during 2016
Mineralised corridor confirmed during 2016 For personal use only • Gold-bearing sulphidic corridor confirmed by Australian Mines’ 2016 reconnaissance drilling campaign Mineralised corridor remains open along strike in both directions • Potential for multiple zones of high-grade gold mineralisation
Slide 20: Targeting potential ore zones in 2017
Targeting potential ore zones in 2017 For personal use only • 120 hole air core drill program designed to test gold potential of entire 6 kilometres of prospective geology • Drilling approval received from WA Mines Department in mid November • Heritage Survey slated for March – April 2017 • Commence
Slide 21: Arunta West Copper-Gold Project
Arunta West Copper-Gold Project For personal use only • Located along strike of Independence Group’s Lake Mackay Project, 600 kilometres from Alice Springs • Australian Mines earning up to an 80% interest in the project • Deemed highly prospective for Olympic Dam-style copper-gold by BHP Billiton •
Slide 22: Australia's newest emerging copper province
Australia’s newest emerging copper province For personal use only • Consecutive drill programs by IGO targeting two separate anomalies successfully intersected significant copper-gold mineralisation Grapple – 9 metres @ 3.2% copper + 1.8 g/t gold + 49.1 g/t silver Bumblebee – 7 metres @ 3.2% cop
Slide 23: Drill program commencing in 2017
Drill program commencing in 2017 For personal use only • North Dovers copper-gold target is currently untested by any drilling • Australian Mines to conduct detailed gravity survey over North Dovers to enable accurate targeting of the project’s maiden drill campaign • Gravity survey contract awarded
Slide 24: Investment Highlights
Investment Highlights For personal use only • Australian Mines is pursuing a strategy to become the world’s largest supplier of scandium via the acquisition of two near-production projects First mining operation (Sconi) expected to be in production by 2020 Second mining operation (Flemington) ex
Slide 25: Investment Highlights
Investment Highlights For personal use only • Continued exposure to gold and copper markets through Australian Mines’ on-going exploration programs at its Doolgunna-Marymia Gold and Arunta West Copper-Gold Projects Exploration on both projects scheduled to commence at the start of the 2017 field s
Slide 26: Thank You
For personal use only Thank You Level 1,83 Havelock St West Perth WA 6005 +61 8 9481 5811 +61 4 6777 0016 bbell@australianmines.com.au www.australianmines.com.au
Slide 27: Mineral Resource Estimate: Sconi Project
Mineral Resource Estimate: Sconi Project For personal use only Measured Resource: 17 million tonnes 0.80% Nickel 0.07% Cobalt Indicated Resource: 48 million tonnes 0.58% Nickel 0.07% Cobalt Inferred Resource: 24 million tonnes: 0.41% Nickel 0.04% Cobalt Total Resource: 89 million tonnes 0.58% Nickel
Slide 28: Competent Persons Statements
Competent Persons Statements For personal use only Flemington Scandium-Cobalt Project The Mineral Resource for the Flemington Scandium-Cobalt Project contained within this document is reported under JORC 2012 Guidelines. This Mineral Resource was first reported by Jervois Mining Limited on 20 August
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