Slide 1: Exploring and Developing Graphite in Tanzania
EXPLORING AND DEVELOPING GRAPHITE IN TANZANIA Founded on Nickel and Growth through Graphite
Slide 2: Disclaimer
DISCLAIMER Securities Disclaimer This presentation is for informational purposes only and does not constitute an offer or sell, or solicitation to purchase, any securities. Such Offer can be made only through proper subscription documentation and only to investors meeting strict suitability requirem
Slide 3: Introduction
INTRODUCTION • Graphite - new age mineral. • East Africa has significant and compelling graphite occurrences. • Significant increase in land position in Tanzania with a combined ground holding of 2,173km2. • Exploration and development strategy High Grade Graphite Schist in place. • Outstanding expl
Slide 4: Key Highlights
KEY HIGHLIGHTS • Granted tenure - Large flake and high grade. • Head grade (50kg met sample) average 14.6 %TGC. • Flotation recovery of 94.8% total carbon for minus 1.7 mm. • Exceptionally large – flakes recovered at minus 4.0mm. • Drill hole intersections up to 218 metres. • Significant work progra
Slide 5: Capital Structure
CAPITAL STRUCTURE ASX Code : KNL Share Price : $0.48 Shares on issue : 51,038,404 Market Cap : $24.2 million Cash in Bank : $1.5 million Performance Shares : 15,930,000 Options : 12,200,000 Options priced $0.10-$0.40 - $2,500,000 5
Slide 6: Graphite - Background
GRAPHITE - BACKGROUND • Graphite has unique properties including refractoriness, high stability, chemical inertness, high electrical and thermal conductivity. • New uses are developing especially in energy markets. • Significant future use is lithium ion batteries (anodes). • Further increase in the
Slide 7: Graphite Pricing
GRAPHITE PRICING At $2500/t - 15% TGC is equivalent to 7.5 g/t Au or $375 per in-situ tonne of ore. Source: Industrial Minerals Magazine 7
Slide 8: Graphite Demand
GRAPHITE DEMAND • Natural Graphite demand to grow. • Growth sector of lithium-ion batteries GRAPHITE DEMAND IS EXPECTED TO in vehicles. DOUBLE IN THE NEXT 8 YEARS • Alternative anode materials far more expensive and less developed. • China produces 75% of the world's graphite and is restricting the
Slide 9: Current Graphite Production
CURRENT GRAPHITE PRODUCTION Source: USGS Mineral Commodity Summary 2011 China graphite production is environmentally unfriendly , low grade (5-6%) and amorphous. Increase in China graphite production appears challenging. 9
Slide 10: Graphite Grade (%TGC)
GRAPHITE GRADE (%TGC) TGC grade at Mahenge Graphite Project compares favourably to Lac Knife and Balama. 25 20 15 % TGC 10 5 0 Project Location Owner(s) Ticker Symbol(s) Share Price Market Cap Resource Bissett Creek CAN Northern Graphite TSX.V:NGC, C$0.97 C$46M NI 43-101 Sugerloaf AUS Archer ASX:AXE
Slide 11: Graphite Flake Size
GRAPHITE FLAKE SIZE Grade Size1 Price at 94-97% C (at 2012) 2 Large 177 microns $2,500 - $3,000 Medium 150 - 176 microns $2,200 - $2,500 Fine <149 microns $2,000 - $2,400 Large Flake (>177 micron) Mahenge Graphite Notes for table: (1) 1000 micron = 1 millimetre | (2) Prices are indicative only and b
Slide 12: East Africa - Graphite
EAST AFRICA - GRAPHITE • Compelling geological setting. • High metomorphic terrain – Unique (Merelani Tanzanite Mine). • Multiple graphite occurrences. • Large flake and high grade. • Available and educated work force. • Tanzania exports increased over last 12 years. Now 3rd largest gold producer Af
Slide 13: Mahenge Graphite Project
MAHENGE GRAPHITE PROJECT • Area of 325.5 km2. • Ndololo, Epanko and Kasita graphite prospects. • Historical recognised occurrence (1945). • 30 km strike length • Results high grade and compare favourably • High grade rock chip results up to 29.9%TGC. 13
Slide 14: Ndololo Graphite Prospect
NDOLOLO GRAPHITE PROSPECT • Exploration tonnage potential now appears to be significant. • Greater occurrences of outcropping graphite recorded. • Increased confidence over the continuity of graphite mineralisation. Geological plan and section of the Ndololo prospect (after Mr G.M Stockley, 19450 14
Slide 15: Ndololo - RC Drilling
NDOLOLO - RC DRILLING • RC drilling intersecting graphite mineralisation in every hole. • Initial RC holes at Ndololo prospect confirm historical widths • 16 holes completed to date. Graphite Mineralisation Hole Depth From To Interval Hole_ID Prospect Dip Azi (m) (m) (m) (m) MHRC_016 Ndololo -90 360
Slide 16: Ndololo Drill Plan
NDOLOLO DRILL PLAN A RS T 8 8 8.61° Planned RC Hole Completed RC Hole Mapped Graphite Schist Forest Reserve Road 8.62° Sto, Toy, WARC\008 [-8.63° kibaran resources limited 36.69° é MHRC_009 MHRC_011 _S MHRC_010 J 36.7° 4 MHRC_013 HRC_014 2 @ PT MHRC_015 3672°4 N JA OR @ 0 500 tkm —
Slide 17: Ndololo Sections
NDOLOLO SECTIONS Hole 1250m along strike. MHRC011 144m intersection close to true width. 17
Slide 18: Ndololo - Drill Chips
NDOLOLO - DRILL CHIPS • Rock chips to date average 15% TGC at Ndololo Prospect. • Assays results from drilling pending. 18
Slide 19: Metallurgical Results
METALLURGICAL RESULTS • Flotation recovery of 94.8% at minus 1.7 mm (1,700 micron). • Results indicate the recovery of high grade and large flake through a simple milling and flotation circuit. • Exceptionally large flakes. Flotation recoveries at minus 1.7mm crush Ndololo Prospect Flotation Recover
Slide 20: Sizing Analysis
SIZING ANALYSIS Massive size fractions: • 88% graphite carbon > 250 micron. • 70% graphite carbon > 500 micron MHP_MT_001 AMP_MT_001 Screen Size Grade Distribution Grade Distribution (% TGC) (% TGC) (% TGC) (% TGC) +4mm 6.9 0.3 7.4 0.3 -4mm to +2mm 12.0 23.0 14.5 31.8 -2mm to + 1mm 16.0 20.8 16.2 19
Slide 21: Mineralogy
MINERALOGY Massive Flake Graphite Massive Flake Graphite Ndololo Merelani-Arusha Flake size > 2000 micron (2mm) 21
Slide 22: Merelani-Arusha Project
MERELANI-ARUSHA PROJECT • Potential new province. • Area of 973.4 km2. • Large Flake Graphite. • Same geological setting as Tanzanite Mine (Unique). • Graphitic schist mapped over 1.5 km long and up to 200 m widths. • Area currently being mined for gemstones. • RC drilling planned. • Rock chips assa
Slide 23: Exploration and Development
EXPLORATION AND DEVELOPMENT TANZANIA FOCUSSED Significant basis to become a major graphite producer 23
Slide 24: Infrastructure Benefits
INFRASTUCTURE BENEFITS • Tanzania is a stable, mining friendly country. • Projects accessed by road and the Tanzania Railway Corporation (TRC). • Tanzania Harbours Authority - Dar es Salaam, Tanga, Lindi and Mtwara. • Forestry commission export 200td of Teac hardwood per day from Mahenge using exist
Slide 25: Timetable - 2012
TIMETABLE - 2012 Jul Aug Sep Oct Nov Dec Corporation Shareholder Meeting Development Graphite Exploration Metallurgical sample analysis RC Drilling Drill hole analysis (assays) and Interp Resource Estimation Scoping Study Diamond Drilling Graphite Exploration Geophysical Review and Targeting Regiona
Slide 26: Kagera Nickel Project
KAGERA NICKEL PROJECT • Exciting Nickel Sulphide project located within World Class Province. • Located north of Kabanga nickel deposit owned by Xstrata. • Only 3 holes drilled. • Large EM dataset. • Additional interpretations planned. • Value add opportunities being evaluated. 26
Slide 27: Board/Management
BOARD/MANAGEMENT • Experienced board: • Simon O’loughlin • Robert Greenslade • John Park • David Gower • Andrew Spinks • In country exploration team and support: • Layne drilling - Located 240km at Morogoro. • CSA Global Pty Ltd – Mineral Resource and support. • Strategic Resource Management Pty Ltd
Slide 28: Conclusions
CONCLUSIONS • East Africa - known occurrences of graphite and compelling new province • Tanzania occurrences - high grade and large flake • Secured historical known occurrence and large exploration portfolio. • Exploration and development strategy in place. • Significant results achieved to date. •