Northern Minerals Limited · ASX:NTU
Northern Minerals — Investor Presentation (October 2013)
34 slides from Northern Minerals's investor presentation, Oct 15, 2013
Slide 1: Browns Range HRE Project Investor Presentation
ASX:NTU For personal use only Browns Range HRE Project Investor Presentation George Bauk October 2013 Managing Director / CEO
Slide 2: Important Notice
Important Notice This presentation has been prepared by Northern Minerals Limited (“Northern Minerals” or the “Company”). It should not be considered as an offer or invitation to subscribe for or purchase any securities in the Company or as an inducement to make an offer or invitation with respect t
Slide 3: Capital Structure
Capital Structure ASX Code: NTU AUD For personal use only Ordinary Shares 403M* Major Shareholders Listed Options (NTUOB) 67M Conglin Yue & Assoc 45.98% Unlisted Options and Performance Rights 11M# Lynas Corporation 3.73% Market Capitalisation (as at 11 October 2013 @ $0.245) $99M Other Board & 3.12
Slide 4: Value Proposition
Value Proposition For personal use only Dominance of Heavy Rare Earths Competitive Advantage beneficiate 25 times JORC upgrade – 28,084t Exploration potential Funding strategy in progress 4
Slide 5: Competitor Comparison
Competitor Comparison For personal use only Note: Values represent $US/kg based on the Metal Pages China FOB price as of June 7 2013. In-situ values are for comparison purposes only and make no assumption with respect to grade or recovery. LRE: La2O3, CeO2, Pr6O11, Nd2O3 HRE: Sm2O3, Eu2O3, Gd2O3, Tb
Slide 6: Xenotime, a major Marketing Edge
Xenotime, a major Marketing Edge Mixed REO product Purity exceeding 92% TREO For personal use only received well by potential improves margins and offtakers reduces bulk for transport Offtake agreements MoU partner’s expertise should facilitate better Xenotime in critical material supply funding opt
Slide 7: Confidence building in Rare Earths Market
Confidence building in Rare Earths Market Lynas and Molycorp transitioning into For personal use only production phase, adding confidence to new REO supply. Dy and Y consumers stress Prices appear to have additional supplies are critical bottomed as buyers begin for the sustainable to re-enter the m
Slide 8: Developing Economies have only just begun
Developing Economies have only just begun For personal use only Industrialisation Urbanisation China’s 12th 5 year plan 2011-2015 1. Environmental Protection and improvement of energy efficiency. 2. Improve standard of living for Chinese citizens – higher demand for consumer goods 3. Develop 7 prior
Slide 9: Browns Range Competitive Advantage
Browns Range Competitive Advantage For personal use only * October 2013 Wolverine JORC compliant resource grade 9
Slide 10: Conventional Process Components
Conventional Process Components For personal use only 10
Slide 11: Focussing on Optimising Flowsheet
Focussing on Optimising Flowsheet For personal use only Beneficiation circuit • Optimisation testwork underway on two potential process routes: o WHGMS rougher/scavenger followed by cleaner flotation. o Whole of ore flotation. • Target grade of 20% TREO in mineral concentrate with 80% recovery achie
Slide 12: Licence to Operate
Licence to Operate For personal use only • Stakeholder engagement plan developed and implemented with first stage local community forums completed • Employing people from local communities of Ringer Soak and Halls Creek • Commenced Cultural Awareness Training and also agreement discussions with the
Slide 13: Pathway to Production
Pathway to Production 2013 2014 2015 2016 For personal use only JORC Resource Drilling Mining Lease & Land Access Primary Environmental Assessment (EPA) Secondary Approvals (DMP, DEC, DoW etc) Metallurgy Test work Scoping Study Pre-feasibility Study Feasibility Study Off-take Agreements Funding & De
Slide 14: Browns Range Dome
Browns Range Dome For personal use only • Northern Minerals 100% ownership and marketing rights (excluding Toro JV tenements where NTU earning up to 80%) • The dome is a major geological feature covering 1,500km2 (60km x 30km) –HRE mineralised faults/breccias probably developed during late stages of
Slide 15: 165% increase in Resource in 2013
165% increase in Resource* in 2013 Deposit Category Mt TREO TREO kg/t Dy2O3 Y2O3 HREO TREO For personal use only % kg/t Kg/t % Tonnes Indicated 2.53 0.72 7.2 0.61 4.03 83 18,216 Total1 Inferred 1.60 0.63 6.3 0.53 3.49 80 10,080 Total1 4.13 0.68 6.8 0.58 3.82 82 28,084 * The upgrade marks a 165% incr
Slide 16: Wolverine Resource upgrade – 75% increase
Wolverine Resource upgrade – 75% increase* For personal use only Category Mt TREO TREO Dy2O3 Y2O3 HREO TREO % kg/t kg/t Kg/t % Tonnes Indicated 1.57 0.87 8.7 0.77 5.08 90 13,659 Inferred 0.57 0.82 8.2 0.72 4.66 88 4,674 Total1 2.14 0.86 8.6 0.76 4.97 89 18,404 1 Rounding may cause some computational
Slide 17: Wolverine resource and future potential
Wolverine resource and future potential For personal use only 17
Slide 18: August 2013 Drilling Results outside October 2013 Resource Estimate Outline
August 2013 Drilling Results outside October 2013 Resource Estimate Outline Results indicate high grade mineralisation at Wolverine with mineralisation open at depth (down to at least For personal use only 350m) and has continuity on a westerly plunge at depth Hole ID From To Interval TREO % Dy2O3 Y
Slide 19: Gambit West Initial Resource
Gambit West Initial Resource For personal use only Category Mt TREO TREO Dy2O3 Y2O3 HREO TREO % kg/t kg/t Kg/t % Tonnes Indicated 0.11 1.42 14.2 1.24 8.07 89 1,562 Inferred 0.25 1.11 11.1 0.98 6.64 85 2,775 Total1 0.36 1.2 12.0 1.06 7.08 88 4,320 1 Rounding may cause some computational discrepancies
Slide 20: Gambit Initial Resource
Gambit Initial Resource For personal use only Category Mt TREO TREO Dy2O3 Y2O3 HREO TREO % kg/t kg/t Kg/t % Tonnes Indicated 0.05 0.94 9.4 0.87 6.00 97 470 Inferred 0.06 1.11 11.1 1.01 7.29 95 666 Total1 0.11 1.03 10.3 0.95 6.68 96 1,133 1 Rounding may cause some computational discrepancies Average
Slide 21: Area 5 Initial Resource
Area 5 Initial Resource For personal use only Category Mt TREO TREO Dy2O3 Y2O3 HREO TREO % kg/t kg/t Kg/t % Tonnes Indicated 0.8 0.3 3.0 0.20 1.27 68 2,400 Inferred 0.72 0.27 2.7 0.19 1.19 71 1,944 Total1 1.52 0.28 2.8 0.2 1.23 70 4,256 1 Rounding may cause some computational discrepancies Average U
Slide 22: John Galt HRE Project
John Galt HRE Project For personal use only • Rock chip samples up to 42% TREO with approximately 95% Heavy REO • Preliminary metallurgical tests indicate excellent recovery rates (>90%) with potential for concentrate grades >40% • High grade mineralisation in talus (scree) material – hard-rock sour
Slide 23: Funding Update
Funding Update For personal use only Placement Complete February 2013 $4M Rights Issue Complete September 2013 $26M Sale of Browns Range* - 16% sale agreement TBC $26M^ - 20% offtake agreement - Joint Venture agreement Sale of Gold Assets* TBC $2M^ $58M# * Subject to JV partner approval ^ Subject to
Slide 24: Right People in Place
Right People in Place Relevant range of experience and expertise to explore, develop, commercialise and operate the Browns Range Project Board of Directors For personal use only Conglin Yue – Executive Chairman George Bauk - Managing Director / CEO • Long standing relationship with a number of major
Slide 25: Delivering on promises made
Delivering on promises made For personal use only • Identified HRE mineralisation at Browns Range 2010 • Acquisitions included John Galt and Browns Range NT • Completed first metallurgical test on Browns Range • Drilling confirms HRE at Wolverine, Gambit and Area 5 2011 • Flowsheet developed, low ca
Slide 26: December Quarter 2013 – Key Events
December Quarter 2013 – Key Events For personal use only Drilling Results Ongoing Bulk sample collected (100t) October Water supply study November Larger beneficiation pilot November Scoping Study December Further JORC resource upgrade of Wolverine Early 2014 26
Slide 27: Browns Range the new HRE province
Browns Range the new HRE province For personal use only Increased JORC compliant resource by 165% to 28,084t TREO Competitive Advantage outstanding beneficiation 25 times Exploration upside – targeting increase in global mineral resource to 33,000-40,000t TREO* Funding strategy in progress Based on
Slide 28: Appendices
For personal use only APPENDICES 28
Slide 29: Appendix A - Pipeline of Prospects
Appendix A - Pipeline of Prospects For personal use only Production Reserves Gambit Wolverine Targeting total resource of CurrentResource Current Resource 33,000 - 40,000t TREO * West Area 5 28,084tTREO 10,500t TREO Resources Gambit Significant Drilling Cyclops Intersections Banshee Mystique Area 5
Slide 30: Appendix B - Beneficiation Results
Appendix B - Beneficiation Results For personal use only 30
Slide 31: Appendix C - Hydrometallurgy Results
Appendix C - Hydrometallurgy Results For personal use only 31
Slide 32: Appendix D - Seven Priority Industries
Appendix D - Seven Priority Industries For personal use only Source: KPMG China 12th 5 Year Plan Overview 2011 32
Slide 33: Appendix E - Funding Through to Decision to Invest
Appendix E - Funding Through to Decision to Invest For personal use only Source of Funds Application of Funds 2013 and 2014 2013 and 2014 AUD AUD 1. Placement – 18.8M shares $3.8M 1. Geological/Exploration – Browns Range $14.0M 2. Rights Issue# $26.6M 2. Engineering/Infrastructure/Mining Studies $12
Slide 34: Appendix F - Demand for Heavy Rare Earths is real
Appendix F - Demand for Heavy Rare Earths is real In 2017 global electric vehicle annual In 2016 global wind turbine annual For personal use only Dy demand forecast is 750 tonnes Dy demand forecast exceeds 1,296 REO. December 2012 Wolverine tonnes REO. December 2012 resource contains 920 tonnes Dy2O
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