Eq Resources Limited · ASX:EQR
Eq Resources — Carbine Tungsten — Investor Presentation (February 2013)
24 slides from Eq Resources's investor presentation, February 2013
Slide 1: Carbine Tungsten Limited Investor Presentation – February 2013
Carbine Tungsten Limited (ASX: CNQ) Investor Presentation – February 2013
Slide 2: Disclaimer
DISCLAIMER Forward Looking Statements Some statements in this presentation relate to the future and are forward looking statements. Such statements may include, but are not limited to, statements with regard to intention, capacity, future production and grades, projections for sales growth, estimate
Slide 3: Carbine Tungsten is a tungsten producer and project developer
• Carbine Tungsten Limited (ASX: CNQ) is a Tungsten producer and project developer focusing on the Mt Carbine Project in Far North Queensland. • Highly buoyant global Tungsten market with limited supply • Has focused on tailings retreatment – currently producing approx. 1,500 mtu of high-grade tungs
Slide 4: Junior Diversified Exploration to Tungsten Mining & Production Company
Junior Diversified Exploration Company Pure Play Tungsten Company Significant Mine Development Major Tungsten Producer Tungsten Mining & Production Company
Slide 5: Tailings Re-Treatment, Hard Rock Stockpiles, Hard Rock Open Pit Mine
Tailings Re-Treatment Hard Rock Stockpiles Hard Rock Open Pit Mine • Established CNQ in the • Commercial resource with • Large scale hard rock market as a Tungsten a mine life potential of deposit previously mined producer. approximately 5 years for 13+ years producing a • Currently producing • Will
Slide 6: Capital Structure, Board of Directors, Top Shareholders
Capital Structure ASX Code CNQ Board of Directors Shares on Issue 275,962,719 Dr. Leon Pretorius Chairman Market Cap ($) 20 million Jim Morgan Managing Director/CEO Share Price (52 $0.14 - $0.08 week High/Low) Tony Gordon Non-Executive Director Cash at Bank (At ~ $1.02 million 31 December) Debt Nil
Slide 7: Board and Management Profiles
Dr Leon Pretorius – Chairman Dr Pretorius has 41 years international mineral and mining experience. He has also been involved as a public Company director in Australia and overseas for more than 25 years and most recently in Australia prior to joining Icon's Board he was an Executive Director of Pal
Slide 8: Share Purchase Plan to raise $3 million
• CNQ has launched a Share Purchase Plan (“SPP”) to raise $3 million • $0.075 purchase price of new shares available to shareholders is an 18.5% discount to volume weighted average price (“VWAP”) • Shareholders can subscribe for up to $15,000 of new shares • Funding to be used to finalise permitting
Slide 9: Uses of Tungsten
• Strategic metal for modern industrialised manufacturing based economies. • Few viable substitutes. • Unique capability to maintain strength at high temperatures • Estimated global consumption: 71,000t (virgin demand), 95,000t (incl scrap) Uses of Tungsten include? • High-strength, high-speed steel
Slide 10: Tungsten demand and supply by region
0 Russia United States Europe 5 11 26 9 9 4 Japan 20 70 8 11 66 11 China 72 11 7 67 Cemented Carbides Mill Products 28 Steels/Alloys 54 Other 11 Source: International Tungsten Industry Association 2011 China North America United States of America • Produces 80% of the world’s • Production not dedica
Slide 11: Major Phases of tungsten price
Major Phases Price Stabilisation 2006-2008 Price Deterioration 2008-2009 Price Increase 2010-2011 Price Deterioration or Stabilisation? 2012-2013
Slide 12: Mine location near Port of Cairns
The mine is located 130km by sealed highway from the port of Cairns, and a 45 minute drive from Port Douglas. The northern face of the open pit mine is visible from the highway.
Slide 13: Mt Carbine project mining leases and history
• The Mt Carbine project mining leases cover approx. 367 hectares. • Previous large scale, open cut mining operation – operated for 13+ years until 1987 • CNQ has detailed technical information from historical exploration and mining activity o Supporting current and planned CNQ activity • Transport
Slide 14: Tailings Retreatment Plant
• CNQ has successfully established a Tailings Retreatment Plant recovering a high-grade wolframite/scheelite product. • Tailings to support current operations for 2 years. • Existing resource base of approximately 2MT @ 0.1% WO3 in tailings Dam #4. • Strong recoveries – approx. 50% of tungsten in fe
Slide 15: Mt Carbine Project Outline
Mt. Carbine Project Outline NPV $161 million Resources • CNQ completed a feasibility study in July Mine 47Mt @ 0.13% WO3 2012 confirming the viability of the Mt Stockpile 12Mt @ 0.07% WO3 Carbine Project. Tailings 2Mt @ 0.1% WO3 • Key outcomes confirm potential for: Reserves Mine 18Mt @ 0.14% WO3 o
Slide 16: Former operations and existing infrastructure
• Former operations between 1972 and 1987 confirms operational viability. • CNQ has detailed data from past mining and processing activity. • CNQ processing outlook aligned with previous operations. • Establishment of gravity plant will be improved version of historical plant. • Former mine site has
Slide 17: Hard rock stockpiles
• Commercial low-grade resource with a mine life potential of approximately 5 years. • Minimal additional permitting/approvals required to commence processing. • DEHP approvals expected by the third quarter 2012. • Objective is to process stockpile concurrently with ore from open pit. Processing to
Slide 18: Historical open pit
• Large scale open-cut mine operated successfully & profitably for over 13 years. • DEHP approvals expected to be granted by third quarter of 2013. • Environmental Management Plan (“EMP”) and engineering works in progress. • Contains higher grade material than the Hard Rock stockpiles. • 10 year min
Slide 19: Processing flow: crushing, X-ray sorting, gravity processing
Crushing/Screening X-Ray Sorting • Total feed of 3MTPA • Easily assess average grade of rock • Extensive testing of stockpile already undertaken Product Fines Gravity Processing • Very high quality • 76% overall • Throughput capacity • Off-take agreements recovery producing of 0.5MTPA already in pla
Slide 20: Infrastructure: transport, port, power, water, labour
• Transport – project site located within 250 metres of Mulligan Highway leading to Port Douglas and Cairns. • Port – Cairns Port located approximately 130km by road from site. • Power- Access to grid power. • Water – Existing facilities expected to provide for planned operations. • Labour – Surroun
Slide 21: Permitting status and timeline
• Environmental Permit already in place for Tailings Retreatment operation. • Construction and operating permit for stockpile processing already underway. • Additional permitting required for open pit operation – baseline studies currently underway: o Environmental Management Plan required o Associa
Slide 22: Project development schedule
May-13 May-14 May-15 May-16 Feb-13 Mar-13 Aug-13 Sep-13 Nov-13 Dec-13 Feb-14 Mar-14 Aug-14 Sep-14 Nov-14 Dec-14 Feb-15 Mar-15 Aug-15 Sep-15 Nov-15 Dec-15 Feb-16 Mar-16 Jan-13 Apr-13 Jun-13 Jan-14 Apr-14 Jun-14 Jan-15 Apr-15 Jun-15 Jan-16 Apr-16 Jun-16 Oct-13 Oct-14 Oct-15 Jul-13 Jul-14 Jul-15 Low Gr
Slide 23: Investment summary
• CNQ making transition from tailings production to hard rock development and production company. • Diversified asset base provides a range of low cost tungsten feed options. • Combined assets to provide 14 years potential mine life on current resource estimates. • Availability of historical data al
Slide 24: Carbine Tungsten Limited contact details
Carbine Tungsten Limited 50 Scott Street, Bungalow, Cairns, Qld 4870 PO Box 1040, Bungalow, Queensland 4870 Email: info@carbinetungsten.com.au Website: www.carbinetungsten.com.au Phone: +61 (0)7 4052 8400 Fax: +61 (0)7 4052 8444
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