Aeon Metals — Investor Presentation (October 2019)
24 slides from Aeon Metals's investor presentation, October 2019
Slide 1: Walford Creek Project: Scoping Study Summary
WALFORD CREEK PROJECT: Scoping Study Summary October 2019
Slide 2: Cautionary Statement
CAUTIONARY STATEMENT The Scoping Study referred to in this presentation has been undertaken for the purpose of initial evaluation of a potential development of the Walford Creek polymetallic deposits. It is a preliminary technical and economic study of the potential viability of the Walford Creek Pr
Slide 3: Leverage to Copper-Cobalt Prices
3 LEVERAGE TO COPPER-COBALT PRICES ▪ 100% Aeon owned Walford Creek Project ▪ Leading Australian copper development ▪ The highest-grade significant cobalt deposit in Australia ▪ Large Measured & Indicated Resource underpins development ▪ Mining optimisation work indicates a mix of low strip open pit
Slide 4: Basin Edge Project – Proven Geological Model
4 BASIN EDGE PROJECT – PROVEN GEOLOGICAL MODEL ▪ Five new EPM applications and earn-in right to acquire 100% of tenement adds 130km of potential strike extent to existing tenement holdings ▪ Attractive basin-scale exploration opportunity leveraging Aeon’s enhanced geological understanding. ▪ Increas
Slide 5: Walford Creek Resources – Vardy/Marley
5 WALFORD CREEK RESOURCES – VARDY/MARLEY Category Mt Cu % Pb % Zn % Ag g/t Co % Category Mt Cu % Pb % Zn % Ag g/t Co % Measured 2.9 1.19 0.93 0.94 25.9 0.15 Measured 2.4 0.14 0.81 1.34 19.6 0.11 Indicated 10.6 1.12 0.89 0.76 27.5 0.13 Indicated 11.0 0.17 0.80 1.00 20.9 0.10 Inferred 4.1 1.16 0.78 0.
Slide 6: Near Term Project Upside - Amy
6 NEAR TERM PROJECT UPSIDE - AMY 2017 AMY MARLEY VARDY ~6km ~3.6km 2018 AMY MARLEY VARDY ~6km ~3.6km 2019 AMY MARLEY VARDY ~6km ~3.6km Category Mt Cu % Pb % Zn % Ag g/t Co % Inferred 1.8 1.5 0.75 0.51 32.5 0.15 ▪ Amy Resources1 not included in Scoping Study 1. See 25 February 2019 ASX announcement f
Slide 7: Amy Exploration Target
6a AMY EXPLORATION TARGET Category Mt Cu % Pb % Zn % Ag g/t Co % Exploration Target 6 - 13 1.0 - 2.0 0.7 - 0.9 0.35 - 0.55 25 - 35 0.11 – 0.20 ▪ The potential quality and grade referred to above is conceptual in nature, as there has been insufficient exploration to estimate a Mineral Resource and it
Slide 8: Project Summary
7 PROJECT SUMMARY ▪ Indicative project sizing defined by Feb 2019 Resource and mining optimisation work. ▪ Optimisation work indicates total life of mine tonnes of 35.5mt: ▪ Process Plant: Vardy & Marley = ~20mt ▪ Open Pit = ~10.6mt ▪ Underground = ~9.4mt ▪ Heap Leach: Vardy & Marley = ~15.5mt (open
Slide 9: Open Pit Mining
8 OPEN PIT MINING TOTAL LIFE OF MINE STRIP RATIO ~1.8:1 ORE ~1.4km 26.1MT 20m ~1.0km WASTE 47MT ORE FROM 20m MAXIMUM PIT DEPTH (VARDY) ~100m STARTED PITS AT BOTH VARDY AND MARLEY SUBSEQUENT PUSHBACKS OVER LIFE OF MINE Note: See Aeon website for 3D interactive video animation of the Walford Creek Pro
Slide 10: Underground Mining Method
9 UNDERGROUND MINING METHOD General Stope Sequence of Activities: Stop Extraction Sequence: Mining method - uphole retreat with paste fill: ▪ 100% extraction ▪ Stope height 25m, width 15m Stope Paste Backfilling Methodology: Top level Development:
Slide 11: Underground Mining
10 UNDERGROUND MINING ▪ Vardy and Marley (PY3) Outputs: 9.4mt through the process plant ▪ Underground mining scheduled to commence year 2 via decline within Vardy and Marley pits 120-300m ▪ Underground extraction ~3.6km rate (Vardy/Marley) increasing up to 1.2mtpa by year 5 ▪ Mining of elevated grad
Slide 12: Process Plant Selected
11 PROCESS PLANT SELECTED The Walford Creek Project metallurgical treatment consists of the following processes: ▪ Bio-leach assisted heap leach of low-grade ore; ▪ Flotation circuit producing: Copper concentrate; Lead concentrate; Variable amounts of silver will be recovered to the different concen
Slide 13: Indicative Site Layout
12 INDICATIVE SITE LAYOUT ▪ Standalone project - no offsite acid transportation ▪ Power mix of diesel, and self generation power (base case) ▪ On site water ▪ Access – All government gazzeted roads
Slide 14: Forecast Metal Production
13 FORECAST METAL PRODUCTION Production Unit Total / LOM Annual average Contained copper production kt 145.8 13.6 Contained cobalt production kt 22.5 2.1 Contained zinc production kt 109.6 10.6 Contained lead production kt 95.7 9.3 Contained silver production Moz 10.2 1.0 Contained nickel production
Slide 15: Revenue
14 REVENUE Price inputs ▪ Copper and cobalt price assumptions - consensus (mean) forecasts from 14 and 9 investment bank’s LOM average copper price US$/lb 3.09 research teams (June/July 2019) respectively LOM average cobalt price US$/lb 23.31 LOM average zinc price US$/lb 1.23 ▪ Zinc, lead, silver,
Slide 16: Operating & Capital Costs
15 OPERATING & CAPITAL COSTS Operating costs: Capital Costs: A$/t ore A$/t CuEq1 US$/lb CuEq1 Proportion of Operating cost component processed produced produced total (%) ▪ The total capital expenditure estimate (including Mining 18.1 1,422 0.47 31% sustaining capital) for the Project is A$397M Proc
Slide 17: Base Case Economics
16 BASE CASE ECONOMICS Key financial outcomes Unit Total ▪ Project economics are robust with solid and Valuation, returns and key ratios consistent net cashflow over the 11 year mine NPV8% (post-tax, real basis, ungeared) A$M 431 IRR (post-tax, real basis, ungeared) % 33.8% life Payback period (post
Slide 18: Indicative Project Advancement Timeline
17 INDICATIVE PROJECT ADVANCEMENT TIMELINE Major milestones Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Scoping study PFS Board approval to proceed to DFS DFS Board review/approval to proceed Select EPCM contractor Detailed engineering 12 months Construc
Slide 19: Investment Summary
18 INVESTMENT SUMMARY ▪ Leading Australian copper development. ▪ The highest-grade significant cobalt deposit in Australia. ▪ Interim Scoping Study to set basis for final Feasibility Study: ▪ 11yr mine life ▪ 2mtpa process plant + ~1.5mtpa heap leach (of lower grade ore) ▪ Copper equivalent1 output
Slide 20: Corporate Overview
19 CORPORATE OVERVIEW BOARD AND MANAGEMENT CAPITAL STRUCTURE 27 years’ experience in financial markets and resources Paul Harris Cash A$7.0M2 investment banking. Previously MD, Head of Metals and Chairman Mining at Citi. Share price A$0.121 Shares outstanding 674M Hamish Collins 27 years’ experience
Slide 21: Appendices
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Slide 22: Appendix 1: Important Information
21 APPENDIX 1: IMPORTANT INFORMATION ▪ This document has been prepared by Aeon Metals Limited (Aeon) for the purpose of providing a comprehensive company and technical overview to interested analysts and investors. This document is not a prospectus and should not be considered an offer or an invitat
Slide 23: Appendix 2: Geological Code
22 APPENDIX 2: GEOLOGICAL CODE ▪ Mineralisation is both structurally and lithologically controlled – Fish River Fault (FRF) and Pyrite Units (PY1 and PY3). ▪ PYI from ~20m. PY3 from ~120m ▪ Sedimentary exhalative (SEDEX) deposit - Massive sulphides ▪ Pyrite lenses containing Pb-Zn-Ag. ▪ Secondary ev
Slide 24: Appendix 2: Geological Code
23 APPENDIX 2: GEOLOGICAL CODE A. Shallow holes from 50m to 80m intercept both possible supergene mineralisation together with strong copper and cobalt mineralisation associated with the PY1 in close proximity to the FRF. B. Drilled behind the shallow holes. These holes from 70m to 110m can still hi