Alchemy Resources Limited · ASX:ALY
Alchemy Resources — Lithium and Battery Metals Conference 2019
25 slides from Alchemy Resources's conference presentation, Mar 20, 2019
Slide 1: Lithium and Battery Metals Conference
ASX: ALY Lithium and Battery Metals Conference Crown Perth 20-21ASX: MarchALY 2019
Slide 2: Project overview: Bryah Basin, Karonie, West Lynn, Woodsreef, Cobar
BRYAH BASIN PROJECT (488km2) Sandfire base metals farm-in $3.1M exploration spend in 2019 to ear up to 80% Superior Gold JV (ALY 20%) Wilgeena 87Koz Au Resource due for upgrade Q1 2019 Hermes 1% NSR due to commence Q4 2019 Diverse exploration.a KARONIE PROJECT (782km2) Immediately along strike of Br
Slide 3: Corporate snapshot: shares on issue, shareholders and board
Karonie Listed on ASX November 2007 RAB results West Lynn Maiden Ni-Co Bombora Resource Shares on Issue (19 March 2019) 440.4m Maiden 1.5c Rights SFR Bryah Resource Issue Farm-In Options - unlisted 29.5m Share Price (19 March 2019) 1.6c Market Cap $7.0m Cash (31 December 2018) $1.0m Northern Star Re
Slide 4: West Lynn farm-in and JV agreement
➢ Farm-in and JV Agreement; ➢ Alchemy Resources Limited - 51% ➢ Heron Resources Limited (ASX: HRR) - 49% ➢ Alchemy can earn up to 80% interest by spending $0.5M before 30 May 2021 ➢ West Lynn Project: Maiden JORC 2012 inferred resource: 21.3Mt @ 0.84% Ni, 0.05% Co, 4.5% Al2O3, 20% Fe* (Ni-Co zone on
Slide 5: West Lynn and Woodsreef tenure
➢ West Lynn tenure (229km2) 160km NW of Dubbo ➢ Located within a world-class Ni- Co-Sc endowed mafic belt ➢ Large deposits (e.g. Sunrise) ➢ Woodsreef licence (281km2 ) 100km north of Tamworth ➢ Greenfields exploration within the under-explored Great Serpentinite Belt 5
Slide 6: West Lynn inferred JORC 2012 resource
➢ 178 holes for 8,646m of drilling in 2018 ➢ West Lynn inferred JORC 2012 resource cut-offs*; Tonnes (Mt) Ni% Co% Al2O3% Fe% MgO% Cut Off (Ni %) 29.7 0.76 0.04 4.5 19.2 13.5 0.5 21.3 0.84 0.05 4.5 20.0 12.9 0.6 14.3 0.93 0.06 4.5 20.7 12.4 0.7 Cut Off Ni % Ni (t) Co (t) 0.6 179,291 10,280 Deposit To
Slide 7: Drill intercepts include
➢ Drill intercepts include: WLDD002 Ni-Co-Al Ore Lateritic clays 34m @ 0.97% Ni, 0.05% Co from 38m 1) 40m @ 0.71% Ni, 0.04% Co from 30m 1) 25m @ 0.99% Ni, 0.06% Co from 36m 2) 20m @ 0.97% Ni, 0.10% Co from 38m 1) 7 1) Refer to Alchemy Resources Limited ASX announcement dated 10 December 2018 2) Refe
Slide 8: Relatively soft, thick, shallow ore body
➢ Relatively soft, thick, shallow ore body ➢ Drill intercepts include: 15m @ 1.29% Ni, 0.10% Co from 39m 1) 18m @ 1.02% Ni, 0.06% Co from 36m 2) 20m @ 0.87% Ni, 0.04% Co from 31m 2) 8 1) Refer to Alchemy Resources Limited ASX announcement dated 27 August 2018 2) Refer to Alchemy Resources Limited AS
Slide 9: Metallurgical recoveries using nitric acid leach
➢ Good initial metallurgical recoveries using nitric acid leach (patented DNi Process™)*: ➢ Blended laterite/saprolite and weathered serpentinite leach test work underway ➢ West Lynn average Fe grade (20%) is ~half that of typical WA laterite deposits ➢ Comparatively low Fe content provides potentia
Slide 10: Direct Nickel Process simplified schematic flow sheet
Direct. Nickel Process — Simplified Schematic Flow, Sheet Recycled HNO3 Recycled HNO3 Recycled HNO3 Fresh | 4 4 HNO; | Iron Aluminium Mixed Nickel/Cobalt . Leaching . (4) (5) (6) Reagent Recycling Ore Supply (1) hydrolysis precipitation Hydroxide Precipitation » Solid/liquid / . separation _ - - . -
Slide 11: Alumina-rich clay zone above Ni-Co-Al resource
➢ Alumina-rich clay zone (kaolinite) lies directly above the lateritic Ni-Co-Al resource ➢ Best alumina drill intercepts from kaolinite zone include: 54m @ 19.1% Al2O3 from 16m 1) 30m @ 20.5% Al2O3 from 21m 1) 19m @ 23.7% Al2O3 from 25m 2) ➢ Zone thickens and remains open to the north and west ➢ HCl
Slide 12: Infrastructure and nearby deposits
➢ Mitchell Highway runs through the tenement ➢ 7km from Nyngan railway line (linked to Sydney & Newcastle) ➢ Summervale 3km from Nyngan- Bourke power line ➢ West Lynn 7km from Nyngan-Cobar power line ➢ 7km from Bogan Weir water pipelines (fed by Macquarie River) ➢ 12km from Nyngan township (labour –
Slide 13: West Lynn resource value not yet recognised by market
➢ West Lynn Ni-Co resource value not yet recognised by market ➢ Lowest market cap, mid-rank on metal tonnes Alchemy (ALY) Alchemy (ALY) * NB market capitalisations as at 19 March 2019 13
Slide 14: Alchemy Activity Timeline & Newsflow Q2 & Q3 2019
Alchemy Activity Timeline & Newsflow Q2 & Q3 2019 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 West Lynn serp & blended Ni-Co metallurgical testwork & results ✓ ✓ Summervale kaolinite alumina metallurgical testwork & results ✓ ✓ Summervale JORC 2012 Alumina resource estimate ✓ ✓ West Lynn resour
Slide 15: Air pollution and the need for EVs
Los Angeles Beijing ➢ Air pollution claims 7 million lives a year 1 ➢ ~50% of air pollutants come from motor vehicles 2 ➢ Major cities of the world must to turn to electric vehicles (EVs) for health New Delhi reasons ➢ EVs need battery metals 1 World Health Organisation 2 US Environmental Protection
Slide 16: Value of projects not recognised in Alchemy's share price
➢ Value of projects not recognised in Alchemy’s share price ➢ West Lynn; ➢ Significant tonnage JORC 2012 compliant Ni-Co resource ➢ Significant expansion potential ➢ Good atmospheric leach recoveries ➢ Close to workforce, water, power and rail infrastructure ➢ HPA potential 16
Slide 17: Gold and base metals
➢ Gold and Base Metals; ➢ Sandfire Resources funding $3M of base metal exploration via Bryah Basin Joint Venture in 2019 ➢ Hermes Royalty payments to commence Q4 2019 via the Superior Gold Bryah Basin Joint Venture ➢ Wilgeena Resource – 87,000oz @ 2g/t Au with upgrade imminent and potential Plutonic
Slide 18: Disclaimer
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 is in summary form and does not purport to be all inclusive or complete. Recipi
Slide 19: Metals in lithium ion batteries
➢ Lithium is not the major metal in Metal types in Lithium ion battery cathodes Lithium Ion Batteries (LiBs) (~14% of the Tesla Model S LiB) 1 ➢ LiBs “should be called nickel- graphite” batteries 2 ➢ Cobalt is in 3 of the 4 main LiB types (average cathode content of ~49%) ➢ Nickel is in 2 of the 4 m
Slide 20: EV adoption outlook
➢ Not “if” but “when” will consumers adopt EVs – China leading the way ➢ Taxes on carbon emissions will help global demand Bloomberg predictions: ➢ EVs to be 50% of light vehicles sales within 20yrs ➢ Steady predicted increase in EV battery metal demand to 2030 Countries with goals of banning sales
Slide 21: Nickel price volatility and outlook
➢ Nickel price volatility due to: 5 Year Nickel LME Warehouse Level (t) ➢ US-China trade talks, US sanctions, Brexit all impacting demand (on all metals) ➢ Forecast global production increases (e.g. Tsingshan) ➢ New Australian projects coming online (e.g. CleanTeQ) ➢ Potential supply problems (e.g.
Slide 22: Cobalt demand and supply chain
➢ Solid global demand growth Cobalt Demand Global Mined Cobalt by Country - 2016 forecast to 2025 ➢ Problematic supply chain: ➢ >50% supply from DRC subject to political risk (taxes), & ethical production issues Source: Canaccord Genuity Source: SNL Mine Economics ➢ >95% Co production is 5 Year Coba
Slide 23: HPA forecast consumption increase
➢ Strong HPA forecast consumption increase based on EVs, LED lights, and synthetic sapphire demand ➢ Additional target product for Alchemy 23
Slide 24: Karonie gold project
➢ 100% owned by Alchemy Resources ➢ Highly prospective greenstone belt hosting proven gold bearing structures (Claypan Shear Zone & Aldiss Fault Zone) ➢ 38km strike of the Claypan Shear Zone - transported cover with only 4 RAB drill lines completed to date along strike of Breaker Resources’ (ASX:BRB
Slide 25: Bryah Basin: Sandfire and Superior Gold joint ventures
➢ Sandfire Resources NL (ASX: SFR) earning a 70-80% interest by spending $3.1M before 29 Oct 2019. Alchemy free carried to PFS & up to $5M to DFS, then 20% share of costs to production repaid from 50% of Alchemy’s share of profit 1). Aircore drilling across a 20km strike of the De Grussa host rocks
Alchemy Resources — Lithium and Battery Metals Conference 2019 on 6ix