Northern Minerals Limited · ASX:NTU
Northern Minerals — Investor Presentation (November 2013)
33 slides from Northern Minerals's investor presentation, Nov 20, 2013
Slide 1: Browns Range Investor Presentation November 2013
ASX:NTU For personal use only Browns Range Investor Presentation November 2013
Slide 2: Important Notice
Important Notice This presentation has been prepared by Northern Minerals Limited (“Northern Minerals” or the “Company”). It should not be considered as an offer or invitation to subscribe for or purchase any securities in the Company or as an inducement to make an offer or invitation with respect t
Slide 3: Capital Structure
Capital Structure ASX Code: NTU AUD For personal use only Ordinary Shares 403M* Major Shareholders Listed Options (NTUOB) 67M Conglin Yue & Assoc 46.0% Unlisted Options and Performance Rights 13M# Lynas Corporation 3.7% Market Capitalisation (as at 8 November 2013 @ $0.215) $87M Other Board & 3.1% B
Slide 4: Value Proposition
Value Proposition For personal use only Dominance of Heavy Rare Earths Competitive Advantage beneficiate 25 times JORC upgrade – 28,084t Exploration potential Funding strategy in progress 4
Slide 5: Competitor Comparison
Competitor Comparison For personal use only LRE v HRE Comparative Percentage Distribution Company/Project/Country HRE v LRE Comparative Percentage Distribution IONIC CLAYS (High Y) Longnan, Jiangxi (China)* Northern Minerals – Browns Range (Australia) Namibian Rare Earths – Lofdal (Namibia) Tasman –
Slide 6: Xenotime, a major Marketing Edge
Xenotime, a major Marketing Edge Mixed REO product Purity exceeding 92% TREO For personal use only received well by potential improves margins and offtakers reduces bulk for transport Offtake agreements MoU partner’s expertise should facilitate better Xenotime in critical material supply funding opt
Slide 7: Confidence building in Rare Earths Market
Confidence building in Rare Earths Market Lynas and Molycorp transitioning into For personal use only production phase, adding confidence to new REO supply. Dy and Y consumers stress Prices appear to have additional supplies are critical bottomed as buyers begin for the sustainable to re-enter the m
Slide 8: Developing Economies have only just begun
Developing Economies have only just begun For personal use only Industrialisation Urbanisation China’s 12th 5 year plan 2011-2015 1. Environmental Protection and improvement of energy efficiency. 2. Improve standard of living for Chinese citizens – higher demand for consumer goods 3. Develop 7 prior
Slide 9: Browns Range Competitive Advantage
Browns Range Competitive Advantage For personal use only * October 2013 Wolverine JORC compliant resource grade 9
Slide 10: Conventional Process Components
Conventional Process Components For personal use only 10
Slide 11: Focussing on Optimising Flowsheet
Focussing on Optimising Flowsheet For personal use only Beneficiation circuit • Optimisation testwork underway on two potential process routes: o WHGMS rougher/scavenger followed by cleaner flotation. o Whole of ore flotation. • Target grade of 20% TREO in mineral concentrate with 80% recovery achie
Slide 12: Licence to Operate
Licence to Operate For personal use only • Stakeholder engagement plan developed and implemented with first stage local community forums completed • Employing people from local communities of Ringer Soak and Halls Creek • Commenced Cultural Awareness Training and also agreement discussions with the
Slide 13: Pathway to Production
Pathway to Production 2013 2014 2015 2016 For personal use only JORC Resource Drilling Mining Lease & Land Access Primary Environmental Assessment (EPA) Secondary Approvals (DMP, DEC, DoW etc) Metallurgy Test work Scoping Study Pre-feasibility Study Feasibility Study Off-take Agreements Funding & De
Slide 14: Browns Range Dome
Browns Range Dome For personal use only • Northern Minerals 100% ownership and marketing rights (excluding Toro JV tenements where NTU earning up to 80%) • The dome is a major geological feature covering 1,500km2 (60km x 30km) –HRE mineralised faults/breccias probably developed during late stages of
Slide 15: 165% increase in Resource in 2013
165% increase in Resource* in 2013 Deposit Category Mt TREO TREO kg/t Dy2O3 Y2O3 HREO TREO For personal use only % kg/t Kg/t % Tonnes Indicated 2.53 0.72 7.2 0.61 4.03 83 18,216 Total1 Inferred 1.60 0.63 6.3 0.53 3.49 80 10,080 Total1 4.13 0.68 6.8 0.58 3.82 82 28,084 * The upgrade marks a 165% incr
Slide 16: Wolverine Resource upgrade – 75% increase
Wolverine Resource upgrade – 75% increase* For personal use only Category Mt TREO TREO Dy2O3 Y2O3 HREO TREO % kg/t kg/t Kg/t % Tonnes Indicated 1.57 0.87 8.7 0.77 5.08 90 13,659 Inferred 0.57 0.82 8.2 0.72 4.66 88 4,674 Total1 2.14 0.86 8.6 0.76 4.97 89 18,404 1 Rounding may cause some computational
Slide 17: Wolverine resource and future potential
Wolverine resource and future potential For personal use only 17
Slide 18: Pipeline of Prospects
Pipeline of Prospects For personal use only Production Reserves Targeting an additional Gambit Wolverine 10,000 – 20,000t TREO * West Current Resource Current Resource 10,500t TREO 28,084t TREO Resources Gambit Area 5 Significant Drilling Banshee Area 5 North Intersections Cyclops Mystique Further W
Slide 19: Gambit West Initial Resource
Gambit West Initial Resource For personal use only Category Mt TREO TREO Dy2O3 Y2O3 HREO TREO % kg/t kg/t Kg/t % Tonnes Indicated 0.11 1.42 14.2 1.24 8.07 89 1,562 Inferred 0.25 1.11 11.1 0.98 6.64 85 2,775 Total1 0.36 1.2 12.0 1.06 7.08 88 4,320 1 Rounding may cause some computational discrepancies
Slide 20: Gambit Initial Resource
Gambit Initial Resource For personal use only Category Mt TREO TREO Dy2O3 Y2O3 HREO TREO % kg/t kg/t Kg/t % Tonnes Indicated 0.05 0.94 9.4 0.87 6.00 97 470 Inferred 0.06 1.11 11.1 1.01 7.29 95 666 Total1 0.11 1.03 10.3 0.95 6.68 96 1,133 1 Rounding may cause some computational discrepancies Average
Slide 21: Area Initial Resource
Area 5 Initial Resource For personal use only Category Mt TREO TREO Dy2O3 Y2O3 HREO TREO % kg/t kg/t Kg/t % Tonnes Indicated 0.8 0.3 3.0 0.20 1.27 68 2,400 Inferred 0.72 0.27 2.7 0.19 1.19 71 1,944 Total1 1.52 0.28 2.8 0.2 1.23 70 4,256 1 Rounding may cause some computational discrepancies Average U
Slide 22: John Galt HRE Project
John Galt HRE Project For personal use only • Rock chip samples up to 42% TREO with approximately 95% Heavy REO • Preliminary metallurgical tests indicate excellent recovery rates (>90%) with potential for concentrate grades >40% • High grade mineralisation in talus (scree) material – hard-rock sour
Slide 23: Boulder Ridge HRE Project
Boulder Ridge HRE Project For personal use only • First rock chip samples from the Boulder Ridge project confirm high-grade Heavy Rare Earths (HRE) • Best results exceed 12% TREO, including up to 1.15% Dysprosium, with a dominance of HRE – up to 99%. • Follow-up soil sampling program planned for Q4
Slide 24: Funding Update
Funding Update For personal use only Placement Complete February 2013 $4M Rights Issue Complete September 2013 $26M Sale of Browns Range* - 16% sale agreement TBC $26M^ - 20% offtake agreement - Joint Venture agreement Sale of Gold Assets* TBC $2M^ $58M# * Subject to JV partner approval ^ Subject to
Slide 25: Right People in Place
Right People in Place Relevant range of experience and expertise to explore, develop, commercialise and operate the Browns Range Project Board of Directors For personal use only Conglin Yue – Executive Chairman George Bauk - Managing Director / CEO • Long standing relationship with a number of major
Slide 26: Delivering on promises made
Delivering on promises made For personal use only • Identified HRE mineralisation at Browns Range 2010 • Acquisitions included John Galt and Browns Range NT • Completed first metallurgical test on Browns Range • Drilling confirms HRE at Wolverine, Gambit and Area 5 2011 • Flowsheet developed, low ca
Slide 27: December Quarter 2013 – Key Events
December Quarter 2013 – Key Events For personal use only Drilling Results Ongoing Water supply study November Scoping Study December Larger beneficiation pilot January 2014 Further JORC resource upgrade of Wolverine March 2014 by 10,000 – 20,000t TREO (Additional to the current resources of 28,084t)
Slide 28: Browns Range the new HRE province
Browns Range the new HRE province For personal use only Increased JORC compliant resource by 165% to 28,084t TREO Competitive Advantage outstanding beneficiation 25 times Exploration upside – targeting increase in global mineral resource by 10,000 – 20,000t TREO* Funding strategy Based on October 20
Slide 29: APPENDICES
For personal use only APPENDICES 29
Slide 30: Appendix A - Beneficiation Results
Appendix A - Beneficiation Results For personal use only 30
Slide 31: Appendix B - Hydrometallurgy Results
Appendix B - Hydrometallurgy Results For personal use only 31
Slide 32: Appendix C - Seven Priority Industries
Appendix C - Seven Priority Industries For personal use only Source: KPMG China 12th 5 Year Plan Overview 2011 32
Slide 33: Appendix E - Demand for Heavy Rare Earths is real
Appendix E - Demand for Heavy Rare Earths is real In 2017 global electric vehicle annual In 2016 global wind turbine annual For personal use only Dy demand forecast is 750 tonnes Dy demand forecast exceeds 1,296 REO. December 2012 Wolverine tonnes REO. December 2012 resource contains 920 tonnes Dy2O
Northern Minerals — Investor Presentation (November 2013) on 6ix