Slide 1: Investor Presentation: Countdown to Development and Cash Flow
For personal use only INVESTOR PRESENTATION: COUNTDOWN TO DEVELOPMENT AND CASH FLOW Sept/Oct 2014 RRS
Slide 2: The Investment Case
The Investment Case: For personal use only • 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 econo
Slide 3: Few Coking Coal Basins have Export Potential
Few Coking Coal Basins have Export Potential For personal use only 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 s
Slide 4: Strategic Location
Crown Mountain – Strategic Location For personal use only • 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 C
Slide 5: Rail to Port
Crown Mountain – Rail to Port For personal use only 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
Slide 6: Resources/Geology
Crown Mountain – Resources/Geology For personal use only 6
Slide 7: Prefeasibility Study
Crown Mountain Prefeasibility Study • Commissioned by Jameson after 2013’s positive For personal use only 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 resour
Slide 8: Resources and Reserves
Crown Mountain Resources and Reserves For personal use only • 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 w
Slide 9: Coal Quality
Crown Mountain Coal Quality For personal use only 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
Slide 10: PFS - Assumptions
Crown Mountain PFS - Assumptions For personal use only • 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 resour
Slide 11: PFS - Capital
Crown Mountain PFS - Capital For personal use only 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 Conting
Slide 12: PFS - Operating Cost
Crown Mountain PFS – Operating Cost For personal use only Cost Category Cost Per Clean Tonne Life-Of-Mine (US$) Waste Removal 41.41 Coal Mining 8.00 Plant 8.66 Clean Coal Handling 2.61 Reclamation 1.24 Marketing/Corporate 1.24 Administration 5.02 Total Costs – Site 68.18 Rail and Port Costs 32.20 To
Slide 13: PFS - Leasing Alternatives
Crown Mountain PFS – Leasing Alternatives For personal use only Pre-Production Capital US$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
Slide 14: PFS - Economics
Crown Mountain PFS – Economics For personal use only 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 in
Slide 15: PFS - Sensitivity Analysis
Crown Mountain PFS – Sensitivity Analysis For personal use only NPV10 (K US#039;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 $438,92
Slide 16: PFS - Upsides
Crown Mountain PFS – Upsides For personal use only • 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
Slide 17: Environmental Studies
Crown Mountain – Environmental Studies For personal use only • 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
Slide 18: Timeline
Crown Mountain – Timeline For personal use only 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 Projec
Slide 19: Peace River Projects – Strategic Location
Peace River Projects – Strategic Location For personal use only • 100% ownership of Dunlevy, Carbon East, Peace Reach and Graham River projects within the Peace River coal field • Projects along strike from operating coal mines and a number of resource projects under exploration and feasibility • Lo
Slide 20: Dunlevy – Approvals and Work Program Update
Dunlevy – Approvals and Work Program Update For personal use only • Two licenses comprising 2,534 Hectares have been granted and a Mines Act permit issued allowing exploration. • All approved drill sites fall within the granted tenure. • Phase 1 drilling completed in July/August 2014. Multiple seams
Slide 21: Summary
Summary For personal use only 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 PROX
Slide 22: Highly Experienced Management Team
Highly Experienced Management Team CANADAonly 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 personal u
Slide 23: Financial Snapshot
Financial Snapshot For personal use only Share Capital Price Volume Chart Share Price (September 26, 2014) A$0.135 Jameson Resources Limited Price vs Volume Shares Outstanding (post Sept Placement) 204m 0.25 3500 Thousands Market Capitalisation A$28m Volume 3000 0.2 Trading Range (6 month) A$0.13 to
Slide 24: For personal use only
For personal use only www.jamesonresources.com.au AUSTRALIAN OFFICE (Corporate) CANADIAN OFFICE Level 2, 79 Hay Street Suite 800, 1199 West Hastings Street Subiaco, WA 6008 Vancouver, BC V6E 3 T5 T: +61 (8) 9200 4473 T: +1 (604) 629-8605 E: admin@jamesonresources.com.au
Slide 25: Disclaimer
Disclaimer For personal use only 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 atta
Slide 26: Competent Persons Statements
Competent Persons Statements For personal use only Competent Person Statements Mineral Reserves and Pre Feasibility Study Results The information in this ASX Announcement relating to the Mineral Reserve Estimate and Pre Feasibility Study Results of the Company’s Crown Mountain Coal Project are extra