Jameson Resources Limited · ASX:JAL
Jameson Resources — Mines & Money London 2014
24 slides from Jameson Resources's conference presentation, December 2014
Slide 1: Investor Presentation: Mines & Money - London, Crown Mountain Coking Coal Project Update
INVESTOR PRESENTATION: MINES & MONEY - LONDON CROWN MOUNTAIN COKING COAL PROJECT UPDATE December 2014
Slide 2: Disclaimer
Disclaimer This document has been prepared as a summary only, and does not contain all information about the Jameson Resources Limited’s (the “Company”) assets and liabilities, financial position and performance, profits and losses, prospects and the rights and liabilities attaching to the Company’s
Slide 3: The Investment Case
The Investment Case: • Crown Mountain Coking Coal Project is located in Western Canada – politically secure, close access to existing transportation and shipping infrastructure, power, and workforce. • Prefeasibility study (PFS) shows Crown Mountain will enjoy outstanding economics, including paybac
Slide 4: Few Coking Coal Basins have Export Potential
Few Coking Coal Basins have Export Potential MONGOLIA KYRGYZ REPUBLIC RUSSIA WESTERN CANADA • ASX Companies: AKM, GUF • ASX Companies: CLA • ASX Companies: TIG • ASX Companies: JAL , ATU (anthracite) • 11 Mtpa overland exports • No exports • 15 Mtpa seaborne exports • 28 Mtpa seaborne exports • Capt
Slide 5: Crown Mountain – Strategic Location
Crown Mountain – Strategic Location • The Elk Valley and Crowsnest coal fields offer compelling global opportunities for development of a coking coal project • Teck is the world’s second largest seaborne supplier of metallurgical coal, based on its mines in the Elk Valley and Crowsnest coal fields •
Slide 6: Crown Mountain – Rail to Port
Crown Mountain – Rail to Port No capacity constraints on rail networks and ports currently undergoing expansion RAIL • Common user railway linking southeast BC to deep water ports in Vancouver: distance to port 1,192km • A new rail loop and loadout will be constructed adjacent to the rail that servi
Slide 7: Crown Mountain – Resources/Geology
Crown Mountain – Resources/Geology 7
Slide 8: Crown Mountain Prefeasibility Study
Crown Mountain Prefeasibility Study • Commissioned by Jameson after 2013’s positive PEA and completion of a successful coal exploration program during summer 2013. • Executed by Norwest Corporation of Calgary, Alberta, Canada. • Focused only on the Measured and Indicated resources identified by Norw
Slide 9: Crown Mountain Resources and Reserves
Crown Mountain Resources and Reserves • The resource base at Crown RESOURCE AREA Measured Indicated Measured & Inferred Measured, Mountain was revised upward (Mt) (Mt) Indicated (Mt) Indicated & in March 2014 after the 2013 (Mt) Inferred (Mt) summer drilling program’s results were evaluated. North B
Slide 10: Crown Mountain Coal Quality
Crown Mountain Coal Quality Crown Mountain Coking Coal1 Canadian Canadian Central NEBC SEBC North and South Alberta2 HCC2 HCC2 East Blocks Block Total Moisture (% as received) 8-9 8-9 8-9 8-9 8-9 Volatile Matter (% dry) 20.5 18 23 - 24.5 21 - 27 17 - 27 Ash Content (% dry) 9 9 8.3 - 8.6 8.5 - 9.6 8.
Slide 11: Crown Mountain PFS - Assumptions
Crown Mountain PFS - Assumptions • Jameson provided certain Preliminary Economic Assessment - Parameters basic assumptions to Norwest, Resource Base Measured and Indicated only: exclude all Inferred shown in the Table to right. Mine Life Through to exhaustion of economic resources • The objective wa
Slide 12: Crown Mountain PFS - Capital
Crown Mountain PFS - Capital Pre-Production Capital US$ Major Mobile Equipment 108.1 Minor Mobile Equipment 8.3 Wash Plant 57.8 Infrastructure (rail load-out, roads, overland conveyor, power, offices, shop etc) and permitting 93.7 Pre-Strip 40.9 SUBTOTAL – CAPITAL 308.8 Contingency @ 10% 30.9 TOTAL
Slide 13: Crown Mountain PFS – Operating Cost
Crown Mountain PFS – Operating Cost Cost Category Cost Per Clean Tonne Life-Of-Mine (US$) Waste Removal 41.41 Coal Mining 8.00 Plant 8.66 Clean Coal Handling 2.61 Reclamation 1.24 Marketing/Corporate 1.24 Administration 5.02 Total Costs – Site 68.18 Rail and Port Costs 32.20 Total Costs - FOB (pre-t
Slide 14: Crown Mountain PFS – Leasing Alternatives
Crown Mountain PFS – Leasing Alternatives Pre-Production Capital US$M Major Mobile Equipment 0 Minor Mobile Equipment 8.3 Wash Plant 57.8 Infrastructure and permitting 93.7 Pre-Strip 40.9 SUBTOTAL – CAPITAL 200.7 Contingency @ 10% 20.1 TOTAL CAPITAL 220.8 Pre-Production Capital – Lease Major Equipme
Slide 15: Crown Mountain PFS – Economics
Crown Mountain PFS – Economics Scenario Start-Up Capital LOM FOB US$/tonne IRR % NPV10 US$M US$M Base Case 339.7 100.38 32.9 370.7 Lease Mobile Equipment 220.8 111.32 43.2 405.3 Lease Equipment & Plant 123.1 117.10 61.5 409.8 Prefeasibility Economics (Pre-Tax Basis) (Capital includes 10% contingency
Slide 16: Crown Mountain PFS – Sensitivity Analysis
Crown Mountain PFS – Sensitivity Analysis NPV10 (K US$'s) Pre-Tax After Tax Sensitivity Range + - + - Base Case $370,669 $223,467 Selling Price +/-10% $543,719 $197,602 $336,496 $108,504 Rail & Port (Ridley) +14.72$/tonne $216,467 $120,977 Operating Cost +/-10% $302,411 $438,926 $178,605 $268,035 Ca
Slide 17: Crown Mountain PFS – Upsides
Crown Mountain PFS – Upsides • Product blending: • North/South blend increases sales price • Use of contract mining: • Capital cost reduction • Greater flexibility • Facilitates blending • Alternate clean coal drying technology • Capital cost reduction • Future inclusion of the Southern Extension •
Slide 18: Crown Mountain – Environmental Studies
Crown Mountain – Environmental Studies • Environmental baseline studies are well advanced with the BC MOE required two year monthly water sampling and quality test work achieved in April 2014 • The installation of several down-hole ground water monitoring stations was completed in conjunction with t
Slide 19: Crown Mountain – Timeline
Crown Mountain – Timeline ACTIVITY 2013 2014 2015 2016 2017 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Resource Estimate Preliminary Economic Assessment Exploration – LDC & RC Drilling program Coal Quality Testwork Pre-Feasibility Study Project Description / Terms
Slide 20: Summary
Summary POSITIONED IN WORLD CLASS Jameson is a pure coking coal Company and owns coal projects within Canada’s prolific METALLURGICAL FIELDS Elk Valley and Peace River coking coal fields Quality projects located proximal to road network and an extensive rail system linking PROXIMAL TO INFRASTRUCTURE
Slide 21: Highly Experienced Management Team
Highly Experienced Management Team David Fawcett - Chairman • Mining engineer with over 37 years coal experience in western Canada • Proven track record for initiating and advancing new coal mine development Awarded the 2012 AMEBC Coal Award for Excellence in Mine Development CANADA • in the Peace R
Slide 22: Financial Snapshot
Financial Snapshot Share Capital Price Volume Chart Share Price (November 24, 2014) A$0.10 Jameson Resources Limited Price vs Volume Shares Outstanding 204m 0.18 3500 Market Capitalisation A$20m 0.16 3000 Trading Range (6 month) A$0.08 to A$0.17 0.14 2500 0.12 Thousands Cash Reserves Volume 0.1 2000
Slide 23: Competent Persons Statements
Competent Persons Statements Competent Person Statements Mineral Reserves and Pre Feasibility Study Results The information in this presentation relating to the Mineral Reserve Estimate and Pre Feasibility Study Results of the Company’s Crown Mountain Coal Project are extracted from the ASX Release
Slide 24: www.jamesonresources.com.au
www.jamesonresources.com.au AUSTRALIAN OFFICE (Corporate) CANADIAN OFFICE Suite 1, Ground Floor, 83 Havelock Street Suite 800, 1199 West Hastings Street West Perth, WA 6005 Vancouver, BC V6E 3 T5 T: +61 (8) 9200 4473 T: +1 (604) 629-8605 E: admin@jamesonresources.com.au