Admiralty Resources NL · ASX:ADY
Admiralty Resources NL — Investor Presentation (November 2007)
40 slides from Admiralty Resources NL's investor presentation, Nov 5, 2007
Slide 1: Admiralty Resources NL Presentation, November 2007
For personal use only Ad i lt Resources Admiralty R NL PRESENTATION November 2007
Slide 2: Company Overview
Company Overview For personal use only ASX:ADY OTCBB:ARYRY (see www.adrbny.com) 973.875 million shares on issue (at 5 November 2007) 10.423 million unlisted options at 10 cents exercise price Nov 07 expiry 5.5 million employee options at 10 cents expire Nov 09 988 million shares fully diluted 433 mi
Slide 3: Key Personnel
Key Personnel For personal use only Board of Directors Prof. J Ross Harper CBE – LLB MA DUniv Chairman, Scottish Coal, legal background, London Michael Robert Clarke MSc – Managing Director – Santiago, Santiago Chile Phillip Thomas – BSc MBM AIG SIA Director, geology, investment, marketing – located
Slide 4: Project Overview – Production Shipping Focus
Project Overview – Production Shipping Focus For personal use only Cia Minera Santa Barbara Nov 2007 – 30,000 tonnes p per month, 500 hours p per month Nov 2007 – sign port agreement with Phelps Dodge for Candelaria, 4.5 years with roll option Jan 2008 - $3.0m of equipment installed – capacity incre
Slide 5: Production - Continued: Rincon Lithium Pilot Plant
Production - Continued For personal use only Rincon Lithium Limited Pilot Plant Construction and Commissioning Duration, Task Begins Ends days Pilot Plant Assemblyy • Complete plant testing 14 29 Oct 15 Nov • Transport to site 3 16 Nov 20 Nov • Assembly, including electrics 7 21 Nov 29 Nov • Complet
Slide 6: Cia Minera Santa Barbara – history
Cia Minera Santa Barbara – history For personal use only z Joint venture signed 16 Feb 2005 between Wyndham Explorations and Fortune Global Holdings g – Admiralty y subsidiary y z Production of small scale plant commenced 10 July 2006 z Santa Barbara currently producing 30,000 tonne per month and in
Slide 7: Key Statistics – Santa Barbara
Key Statistics – Santa Barbara For personal use only 7,421 hectares of tenements at Japonesa Group Mine Vallenar 3,100 hectares at Pampa Tolofo, near Las Colorados Caleta P t Port Santa Fe 10,000 metres drilling, 2.4m tonne capacity per annum (SB and SF) Mine JORC 41.0 m tonnes grading 13.7% at Japo
Slide 8: 10,000 Hectares in Iron Ore Belt
10,000 Hectares in Iron Ore Belt For personal use only New Tenements Existing Tenements (Japonesa Agreement) Name Size - hectares Mine Name Size - hectares Leo 3 200 *Japonesa 34 Leo 4 200 *Japonesita 96 Leo 7 200 *Mirador 21 Leo 8 300 *Gibaiju 41 Leo 9 300 Natasha 50 Leo 10 200 Tatiana 60 Leo 11 20
Slide 9: Current Production and Operations
Current Production and Operations For personal use only Production (Tonnes) 2007 Japonesa Jan --- Feb 11,781 Mar 22,764 Apr 30,847 May 27,444 June 26 433 26,433 July 32,481 August 36,051 Sept 36,627 Oct 34,045 Santa Fe has grizzly, primary crusher, and high speed drums to install (Jan 08) 9
Slide 10: Product Specification
Product Specification For personal use only Element Penalty Level % Contract Specification % Shipping Fe 62.00 62 00 min 63.5 63 5 P M Per Month th Si02 6.0 max 5.00 Caleta Pier - three – four handymax 47,000 tonnes Al203 2.0 max 1.2 Candelaria Pier - P 0.09 max 0.07 From Oct 2008 three p panamax 55
Slide 11: Reserves and Resource Estimates – Santa Barbara
Reserves and Resource Estimates – Santa Barbara 41 Million Tonnes For personal use only Mine Tonnage Weighted Average Grade Japonesa 42.0 million 13.7% Japonesita* 47.0 million 21.6% Chilean Viejo* Mariposa* Mirador* Viviana Viviana* Juanita* Negrita* Soberana* Primavera* Leo2* 11
Slide 12: Cia Minera Santa Barbara Iron Ore Production
Cia Minera Santa Barbara Iron Ore Production For personal use only 12
Slide 13: Santa Barbara - Operations
Santa Barbara - Operations For personal use only 110,000 tonne capacity per month 4mm crush size (5.65mm diagonal) Process 75mm+ separated 75mm crushed to 25mm 25mm magnetically separated 25mm crushed to “3mm” Crushed fines separated Natural fines separated Fines was 50 mesh removed p Low or no Sulp
Slide 14: Santa Barbara Plant Schematic
Santa Barbara Plant Schematic For personal use only FLOW DIAGRAM CRUSHING PLANT PROJECT LA JAPONESA buzón buzón alimentador alimentador vibratorio vibratorio 900 ton/hr 900 ton/hr FLUJOGRAMA IMANES PROYECTO LA JAPONESA A PRODUCTO EN PROCESO PRODUCTO EN PROCESO 507 ton/hr 451 ton/hr C B + D Rechazo P
Slide 15: Caleta, Caldera Port
Caleta, Caldera Port For personal use only Candelaria Port - Panamax Laser Picture of Iron ore stockpiled at Caleta Port Caleta Pier - handymax loading at Caldera Hopper ship loading 15
Slide 16: Santa Fe
Santa Fe For personal use only Located 75 km from Caleta, Caldera 100 million illi tonnes off material i l extracted d Fines very low phosphorous 110 000 tonne per month production 110,000 Magnetite material Besalco operating p gpplant 16
Slide 17: Weeks to build Panamax facility at Candelaria
31 weeks to build panamax facility at Candelaria – $7.5m investment For personal use only Item Descripción Semanas 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 1.0 INGENIERIA 1.2 CIVIL-SANITARIA 6 1.3 ARQUITECTURA CONTENEDORES 3 1.4 MECANICA 8 1.5 ELECTRICIDAD
Slide 18: Candelaria Port
For personal use only Candelaria Port 18
Slide 19: Port of Punta Alcalde
Port of Punta Alcalde For personal use only Estimated Cost – US$32m Main road to pass site 14km road upgrade 300,000 , tonne stockpile p Container loading facility – Fruit Port Iron ore loading – Santa Barbara Copper/Silver – Barrick Mines Coal unloading – Pascua Lama Power project Estimated Complet
Slide 20: Rincon Salar - Argentina
Rincon Salar - Argentina For personal use only Major, world-class, multi-element brine resource (Li, K,) located in the Salta Province of Argentina. The 37 tenements cover an area in excess of 250 square kilometres. Key resources are lithium chloride, lithium carbonate and potassium chloride,
Slide 21: Rincon Salar - The Resource
Rincon Salar - Argentina For personal use only The Resource The Rincon Project j is located in north-western Argentina near the Chilean border. It is a hyper saline lake, brine enriched in lithium, magnesium, potash, and boron, with three rivers providing idi subterranean bt waters t fl i flowin
Slide 22: Rincon Salar - Lithium Concentrations from drill hole data
Rincon Salar - Argentina For personal use only Lithium Concentrations from drill hole data 22
Slide 23: JORC Reserve Calculation
JORC Reserve Calculation For personal use only 23
Slide 24: Production, Observation Wells and Ponds
Production, Observation Wells and Ponds For personal use only Analysis Mean, Relative mg/L dispersion f from the th mean Li+ 394 ±11% K+ 7,972 ±9% Na+ 113,903 ±5% Ca++ 712 ±65% Mg++ 3,667 ±14% Cl- 195,067 ±3% SO4= 12,334 ±66% B4O7= 1,762 ±44% CO3H- 386 ±17% 24
Slide 25: Product Specification
Product Specification p For personal use only 25
Slide 26: Pilot Ponds Construction and Laboratory
Pilot Ponds Construction and Laboratory For personal use only 26
Slide 27: The Lithium Extraction Process
Rincon Salar - Argentina For personal use only The Lithium Extraction Process c. Salt removed d. Magnesium removed d Sodium sulphate removed d. d. Potash removed e. f. Lithium Chloride produced then LiCO3, produced, LiCO3 LIOH 27
Slide 28: Japanese Import Statistics – Lithium Carbonate
Japanese Import Statistics – Lithium Carbonate For personal use only USD Per tonne lithium Carbonate May-07 imported into Japan Lithium carbonate price i per ttonne 16,000 14,000 CHINA 7,325.51 12,000 GERMANY 39,575.14 10,000 CHINA CANADA CANADA 14,024.21 8,000 USA CHILE 6,000 ARGENTINA USA 6,224.74
Slide 29: The Demand for Lithium Compounds Is About to Sky Rocket
THE DEMAND FOR LITHIUM COMPOUNDS IS ABOUT TO SKY ROCKET For personal use only • SQM Estimate of 00-06 CAGR – 6.8%, BUT; HEV, personal battery powered devices and other applications is causing accelerating growth in demand. Lithium Battery CAGR 2000-05; 2000 05; 25% • Car makers are now using Lithium
Slide 30: Lithium Applications
Lithium Applications – Lithium is not connected to the base metal market For personal use only • The adjacent graph shows SQM view of Global Lithium Consumption. Consumption • There has been explosive growth in batteries, ~ 25% CAGR, (2000‐05 Roskill) and Industrial 23% Others Air Conditioning (as a
Slide 31: Global Lithium Supply & Pricing – an Opaque Oligopoly
Global Lithium Supply & Pricing – an Opaque Oligopoly SEPTEMBER 2007 Admiralty Estimates a 30% Global Shortage of High Grade LCE ADY Full Scale Production will have limited impact on increasing prices For personal use only Admiralty Japanese Industrial Roskill SQM Estimate Corporate Minerals 2006 Es
Slide 32: Lithium Carbonate – The Purity / Value Equation
SEPTEMBER 2007 Lithium Carbonate – The Purity / Value Equation For personal use only • Approximate current Asian spot market,+/- $500 (Japan, China and now India), prices for Lithium Carbonate (Li2CO3) - LCE at various purity levels: 99.0% purity (and slightly lower) $ 6,000 USD / ton 99.5% purity $
Slide 33: Admiralty Salar de Rincon Pilot Plant
SEPTEMBER 2007 Admiralty Salar de Rincon Pilot Plant For personal use only • All major components have been manufactured and are being assembled on site; Sep ‐ Oct 2007 • Pond Liners installed by end Oct 2007 • Plant automated to largest practical degree – plus global data transfer 33
Slide 34: Admiralty Rincon Project Risks – Risk Rating
Admiralty Rincon Project Risks – RISK RATING Summary of Risks from Detailed Analysis For personal use only Consequence Insignificant Minor Moderate Major Catastrophic Likelihood (1) (2) (3) (4) (5) Almost Certain (5) Likely 5.3 (4) earthquake Possible 4.4 gas 4.1 econ ((3)) b fit benefits Unlikely 4
Slide 35: Admiralty Salar de Rincon - Summary
Admiralty Salar de Rincon - Summary For personal use only • A World Class Lithium Reserve plus “Free” Potassium Chloride (MOP), and Sodium Sulphate sales from Rio Grande • Potential for production significantly greater than planned • Rapidly increasing world demand on many fronts not just batteries;
Slide 36: Bulman – Northern Territory
Bulman – Northern Territory For personal use only Zinc and Lead oxide, sulphide deposit located in southern Arnhem land in Australia's Northern Territory. Territory Applied for ELA23814 – 637 sq kilometres In the 1950’s CRA estimated there was 375,000 tonnes @ 15% Zn and 2% Pb of mainly oxide
Slide 37: Bulman Exploration Licences
Bulman Exploration Licences For personal use only 37
Slide 38: Bulman – MLN 726
Bulman – MLN 726, 727 For personal use only Bulman Mining leases showing outcrops and banding 38
Slide 39: Bulman Resources Lead and Zinc Anomalies
Bulman Resources Lead and Zinc Anomalies For personal use only 39
Slide 40: Pyke Hill – Nickel Cobalt JV – Cougar Metals NL
Pyke Hill – Nickel Cobalt JV – Cougar Metals NL For personal use only The Pyke Hill Project is located approximately 40km southeast of the Murrin Murrin Nickel Operation, near Leonora, Western Australia. Prospective for a high-grade nickel-cobalt lateritic resource. Estimated in-ground value $3.
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