Diatreme Resources Limited · ASX:DRX

Diatreme Resources — RIU Explorers Conference 2012

32 slides from Diatreme Resources's conference presentation, Feb 21, 2012

  1. Slide 1: RIU Explorers Conference Company Presentation

    ASX:DRX ASX ANNOUNCEMENT For personal use only Diatreme Resources is an Australian 21 February 2012 based diversified mineral explorer with significant projects in heavy mineral RIU EXPLORERS CONFERENCE sands, copper, base metals and gold. FREMANTLE, WESTERN AUSTRALIA The Company owns the world clas

  2. Slide 2: Tony Fawdon, Executive Chairman/CEO

    For personal use only Tony Fawdon Executive Chairman/CEO February 2012

  3. Slide 3: Disclaimer

    DISCLAIMER For personal use only This presentation contains certain forward‐looking statements and forecasts which include without limitation, expectations regarding future performance, exploration, mineral resources, the financial position of Diatreme Resources Limited (the “Company”), industry gro

  4. Slide 4: DRX Profile

    DRX PROFILE For personal use only ¾ LARGE WORLD ORDER ZIRCON DEPOSIT AT CYCLONE, EUCLA BASIN WA ¾ CYCLONE DEPOSIT PREFEASIBILITY NEARING COMPLETION ¾ NEGOTIATING CYCLONE FARM IN PROVISIONS FOR BFS & DEVELOPMENT ¾ EXPLORING SATELLITE RESOURCES AT CYCLONE FOR FURTHER ZIRCON ¾ JOINT VENTURING DRX GOLD

  5. Slide 5: Project Locations

    PROJECT LOCATIONS For personal use only Cape Bedford (HM) Gilbert River (BM) Tick Hill MLs(Au) Clermont(Cu‐Au Mo) CYCLONE DEPOSIT (Zr) Eucla Basin (HM) Anabama (Cu‐Au)

  6. Slide 6: Cyclone Location

    For personal use only CYCLONE LOCATION

  7. Slide 7: Cyclone Deposit

    For personal use only CYCLONE DEPOSIT

  8. Slide 8: Mining Lease Application

    MINING LEASE APPLICATION For personal use only

  9. Slide 9: Resource & Reserves

    RESOURCE & RESERVES For personal use only MINERAL RESOURCE Head Grade HM Resource Material HM HM Slime OS Zircon cut-off Zircon Rutile Leuc HiTi Alt Ilm Si TiOx Category Mt % Mt % % Kt % % % % % % % MEASURED 1.0 107 2.4 2.63 4.1 5.6 0.77 0.08 0.17 0.52 0.26 0.55 830 INDICATED 1.0 29 1.6 0.47 3.6 6.1

  10. Slide 10: Bulk Sample Testwork

    BULK SAMPLE TESTWORK For personal use only CPG Resources - Mineral Technologies tested a seven (7) tonne bulk sample. Key outcomes from the metallurgical testing include: ƒThe wet concentrator testwork produced a high grade HM concentrate (97.8% HM) utilizing conventional mineral sand separation tec

  11. Slide 11: Products

    CYCLONE PRODUCTS For personal use only Zircon: 65,000 tonnes per year ZrO2 % FE2O3 SiO2 % Al2O3 % TiO2 % P2O5 % U+Th CeO2 % % ppm 66.0 0.10 32.8 0.20 0.31 0.07 369 0.020 HiTi87: 10,000 tonnes per year TiO2 % FE2O3 SiO2 % Al2O3 % ZrO2 % MgO % MnO % CaO % CR2O3 % U+Th % ppm 86.6 2.6 5.0 1.01 3.3 0.04

  12. Slide 12: Cyclone Deposit – 3D

    For personal use only CYCLONE DEPOSIT – 3D

  13. Slide 13: Proposed Mining Methods

    CYCLONE PROPOSED MINING METHODS For personal use only

  14. Slide 14: Project Proposed Operations – Video Stills

    CYCLONE PROJECT PROPOSED OPERATIONS – VIDEO STILLS For personal use only

  15. Slide 15: Project Proposed Operations – Video Stills

    CYCLONE PROJECT PROPOSED OPERATIONS – VIDEO STILLS For personal use only

  16. Slide 16: Project Proposed Operations – Video Stills

    CYCLONE PROJECT PROPOSED OPERATIONS – VIDEO STILLS For personal use only

  17. Slide 17: Project Proposed Operations – Video Stills

    CYCLONE PROJECT PROPOSED OPERATIONS – VIDEO STILLS For personal use only

  18. Slide 18: Project Proposed Operations – Video Stills

    CYCLONE PROJECT PROPOSED OPERATIONS – VIDEO STILLS For personal use only

  19. Slide 19: Project Proposed Operations – Video Stills

    CYCLONE PROJECT PROPOSED OPERATIONS – VIDEO STILLS For personal use only

  20. Slide 20: Project Proposed Operations – Video Stills

    CYCLONE PROJECT PROPOSED OPERATIONS – VIDEO STILLS For personal use only

  21. Slide 21: Project Proposed Operations – Video Stills

    CYCLONE PROJECT PROPOSED OPERATIONS – VIDEO STILLS For personal use only

  22. Slide 22: PFS & Schedules

    CYCLONE PFS & SCHEDULES For personal use only PRE FEASIBILITY STUDY •Geology & Mineralogy •Resources & Reserves •Hydrology •Mine Planning •Metallurgy & Mineral Processing •Environmental Studies •Infrastructure & Operations •Site Access & HMC Transport •Markets & Economics •Capital & Operating Costs

  23. Slide 23: Products & Uses

    PRODUCTS & USES For personal use only Titanium 93% of world titanium minerals used to produce TiO2 pigment. TiO2 is a white powder with high opacity and brilliant whiteness. Zircon Over 50% of the world's zircon is used as an opacifier in ceramic glazes. Australia produces 40% of the world’s zircon

  24. Slide 24: Heavy Mineral Concentrate

    HEAVY MINERAL CONCENTRATE For personal use only

  25. Slide 25: Global Mineral Sands Deposits – Zr:Ti Ratio

    GLOBAL MINERAL SANDS DEPOSITS – Zr:Ti Ratio For personal use only Cyclone – High Zircon assemblage

  26. Slide 26: Mineral Sands Projects – Zircon Comparison

    MINERAL SANDS PROJECTS – ZIRCON COMPARISON For personal use only

  27. Slide 27: Planned Zircon Production vs Current Operations

    CYCLONE – Planned zircon production vs current operations For personal use only

  28. Slide 28: Scoping Study Forecasts

    SCOPING STUDY FORECASTS For personal use only Capital Expenditure (including pre-development) $201.5 Million Average Annual Sales Revenue $187 Million Average Annual Cash Operating Cost $69 Million Average Annual Sustaining Capital Cost $2 Million Average Annual Tax Payable $28 Million Average Annua

  29. Slide 29: Project Financials

    PROJECT FINANCIALS For personal use only 10 Year Mine Life at 9.8 Mt ore mined per annum Average Annual Sales Zircon Product 66,000 t Average Annual Sales Titanium Product 69,000 t Payback Period 1.85 Years IRR 45% NPV (10%) Base Case $266 Million Sensitivity Range $208 Million to $463 Million Valua

  30. Slide 30: Project Dynamics & DRX Values

    CYCLONE PROJECT DYNAMICS & DRX VALUES For personal use only • One million tonne zircon resource • Current zircon price of US$2,500 & escalating • Zircon constitutes >80% of revenue • Independent valuation of Cyclone Project $300 Million • DRX Market capitalisation $28 Million

  31. Slide 31: Corporate Information

    CORPORATE INFORMATION For personal use only CAPITAL Shares on Issue 355 Million Options on Issue (ex Sept 2013 @ 15 cents) 89 Million Share Price 8.0 cents Option Price 1.7 cents Market Capitalisation $28 Million Cash at hand (End Dec Quarter) $3.6 Million MAJOR SHAREHOLDERS HOLDING DIRECTORS Andrew

  32. Slide 32: Summary

    SUMMARY For personal use only • Advanced project in strengthening Zircon market • Highly experienced & effective Geological & Engineering Team • Right project in the right sector with large upside

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