Vital Metals Ltd · ASX:VML
Vital Metals — Resources Development Conference in Queensland 2011
36 slides from Vital Metals's conference presentation, Jul 20, 2011
Slide 1: North Queensland Resources Development
North Queensland Resources Development Exploration and growth in Northern Queensland For personal use only Vital Metals Limited ACN 112 032 596 Presented by Mark Strizek CEO 20 July 2011
Slide 2: Disclaimer
Disclaimer: Certain oral and written statements contained or incorporated by reference in this presentation, including information as to the future financial or operating performance of the Company and its projects, constitute forward-looking statements. All statements, For personal use only other t
Slide 3: Capital Structure
Capital Structure ASX: VML For personal use only Market Cap 1 $13.7M Shares on Issue 228.4M Options 2 2M @ $0.20 Cash 1 3.129M Major Shareholders Citicorp Nominees Pty Ltd 9.16% Rex Harbour 7.66% Directors 1.73% Top 40 61.85% 1 As at 30 June 2011 2 Unlisted 12 Month Share Price Performance Corporate
Slide 4: Highly Experienced Board and Management Team
Highly Experienced Board and Management Team For personal use only David Macoboy Senior finance executive with over 40 years of experience in the areas of corporate strategy, finance, treasury, risk management and international fund (Non Executive Chairman) raising. Mark Strizek Geologist with over
Slide 5: Two Strong Commodities
Vital Metals business strategy has been to diversify into two commodities For personal use only Tungsten - Watershed Project in far north Queensland, Australia and, Gold - Doulnia Project in southern Burkina Faso, West Africa. Tungsten APT (EU) $/mtu prices from 2001 to present 600 500 400 $/mtu
Slide 6: Two projects - Watershed and Doulnia
Vital Metals has two projects within its exploration portfolio For personal use only Advanced – Watershed Tungsten Project in far north Queensland, Australia and, Exploration - Doulnia Gold Project in southern Burkina Faso, West Africa. Two projects - Watershed and Doulnia
Slide 7: Doulnia Gold Project in Burkina Faso
Vital Metals is earning interest in the Doulnia Gold Project For personal use only In November 2009, Vital entered into a farm-in agreement with Ampella Mining Ltd to earn up to 80% of the Doulnia Gold Project in southern Burkina Faso, West Africa. Vital has completed a first pass Phase 1 drill
Slide 8: Gold RC Drilling results from drilling program
Gold RC Drilling results from drilling program1 For personal use only 1 ASX release 10 June 2011 Doulnia Gold Project in Burkina Faso
Slide 9: What is Tungsten?
Tungsten Physical Properties For personal use only Tungsten is a metal remarkable for its robust physical properties. It is a comparatively rare mineral accounting for only 0.00013% of the Earth‟s crust. In metallic form it has the highest melting point (3422°C), lowest vapour pressure and hig
Slide 10: What is Tungsten?
Tungsten Physical Properties For personal use only Tungsten occurs as two mineral types in nature; scheelite (CaWO4 - 80.5% WO3) and wolframite (FeMnWO4 – 76.5% WO3). Watershed deposit comprises scheelite only Scheelite fluoresces (glows) in ultraviolet light and under X-rays. This property ca
Slide 11: Tungsten Value Chain
Overview For personal use only Tungsten products used in industrial and consumer products Tungsten carbide powder Tungsten chemicals Ferrotungsten Tungsten metal powder Ammonium paratungstate (APT) Tungsten ore/concentrate Tungsten Value Chain
Slide 12: Tungsten Applications
Unique Properties for Industry For personal use only Tungsten is used in a wide range of final products where its special properties make it highly suitable and difficult to replace. Wide range of uses; largest being tungsten carbide (W2C, WC) in cemented carbides. Hardmetals or cemented carbi
Slide 13: Tungsten Market
Chinese Domestic Consumption is Increasing For personal use only For at least 20 years the vast majority (~88%) of the world‟s primary tungsten has been produced from China. Although still a dominant producer, China is now concerned about future supplies and is restricting exports of concentrate
Slide 14: Tungsten Prices
Sourcing Price Information For personal use only There is no direct relationship between metal price and concentrate price such as for zinc, copper etc. Primary tungsten products are priced in US$ per metric tonne unit (mtu) of contained WO3. An mtu is 1% of a tonne (10 kg). At $450 / mtu a to
Slide 15: A Step Change in Prices
A Step Change in Prices For personal use only Vital has access to price forecasts and supply/demand research conducted by CRU in 2009. Based on this analysis we believe that current prices have support and are sustainable. Price increase from 2008 to 2010 may reflect similar adjustment as occurr
Slide 16: Prices to Stay High
Prices to Stay High For personal use only China has actually banned the export of concentrates and is the worlds largest importer. APT exports are becoming increasingly restricted and also possibly banned in foreseeable future. No new supply projects outside China confirmed, and earliest would
Slide 17: Watershed Project - Overview
Watershed Project - Overview For personal use only Project located 160 km NW of Cairns, Far North Queensland, Australia. Tungsten mineralisation found as scheelite in arenaceous metamorphosed sediments of the Hodgkinson Formation. World class scale – among the top 10 undeveloped tungsten resou
Slide 18: Watershed - Location
Watershed Project - Location For personal use only Originally located and explored by Utah Development Company Limited (“Utah”) in the early 1980‟s with limited further work conducted by Peko-Wallsend Operations Limited – Geopeko Division (“Geopeko”) in the mid-1980‟s. Vital acquired the project i
Slide 19: Watershed - Tenements
Watershed Project - Tenements For personal use only Exploration tenements cover more than 40km from south to north ~ 600 sq km. 7 Mining Lease applications cover the area proposed for mining and infrastructure ~ 1,900 Ha. Tungsten Project in North Queensland
Slide 20: Watershed - Geology
Watershed Project - Geology For personal use only The Watershed project area is dominated by arenaceous and argillaceous metamorphosed sediments of the Hodgkinson Formation. These rocks form a prominent ridge that hosts the known tungsten mineralisation. The dominant structural fabric is an upri
Slide 21: Scheelite Mineralisation
Watershed Project – Scheelite Mineralisation For personal use only Tungsten mineralisation occurs exclusively as scheelite over a strike length of approximately 3,000 metres sub-parallel to the regional north-northwest trend. The scheelite is hosted by calc-silicate and albite-muscovite altered ro
Slide 22: Scheelite Mineralisation
Watershed Project – Scheelite Mineralisation For personal use only In Summary: – Vein Swarms – Coarse scheelite in veins – Disseminated mineralisation Tungsten Project in North Queensland
Slide 23: Drilling
Watershed Project – Drilling For personal use only Drilling at Watershed has primarily been by diamond drilling methods due to the friable nature of the scheelite mineralisation. A total of 47,180m has been drilled at Watershed. Vital has drilled 34,129m DD and 5,517m RC for a combined total o
Slide 24: Drilling 74005 E Cross Section
Watershed Project – Drilling 74005 E Cross Section For personal use only Tungsten Project in North Queensland
Slide 25: Mineralisation Open at Depth
Watershed Project – Mineralisation Open at Depth For personal use only Vital Metals geological team believe that there is significant scope for extending the mineralisation at depth. They observed a trend for mineralisation to increase with depth as shown in hole MWD119 which intersected 20m @ 1
Slide 26: Structural Geology
Watershed Project – Structural Geology For personal use only Coffey identified a series of interrupted vein swarm domains as well as disseminated mineralisation. Calculations of Resources within the domains serves to demonstrate the difference in tonnes/grade relationship between the Vein Swarm
Slide 27: Structural Geology
Watershed Project – Structural Geology In Summary: For personal use only – Vein Swarms – Disseminated mineralisation Tungsten Project in North Queensland
Slide 28: Resource Modeling
Watershed Project – Resource Modeling For personal use only Resource comprises 997 mineralised intercepts: – 304 of intercepts exceed 5m @ 0.5% WO3 – 160 of these exceed 5m @ 1.0% WO3 Average length of mineralised intercepts is 5.4m Ordinary Kriged (OK) resource estimates give smoothed grade m
Slide 29: Mine Design
Watershed Project – Mine Design For personal use only Overall pit slopes have been determined following Rock Mass modelling. Preliminary pit slope angles determined from the model indicate angles as follows: – 52° to 55° in the Good rock – 48° to 52° in the Fair rock – 45° to 47° in the Poor roc
Slide 30: Infrastructure, Environment and Native Title
Watershed Project – Infrastructure, Environment and Native Title For personal use only Feasibility studies have determined that the following infrastructure will be required: – Access and site roads, camp and accommodation. – Water borefield and process water dam. – Power generation and administra
Slide 31: Metallurgy Bulk Sample Adits
Watershed Project – Metallurgy Bulk Sample Adits For personal use only Two adits were driven into the resource (2008) to obtain a representative bulk sample of 150 tonnes. – High grade vein structures easily seen in adits – Used for metallurgical test work and X-ray ore sorting trials Tungsten Pro
Slide 32: Metallurgy X-Ray Sorting
Watershed Project – Metallurgy X-Ray Sorting For personal use only Vital has identified that an X-Ray ore-sorter operating on the crushed ore could achieve a doubling of the feed grade by removing around 45.5% of the feed stock. These X- Ray sorters make use of the fluorescence property exhibited
Slide 33: Metallurgy X-Ray Sorting
Watershed Project – Metallurgy X-Ray Sorting For personal use only Tungsten Project in North Queensland
Slide 34: Metallurgy Flowsheet Concept
Watershed Project – Metallurgy Flowsheet Concept For personal use only Simple flowsheet – exploits scheelite fluorescence and density: – Ore crushed from ore stockpiles fed to – X-Ray ore sorter which removes around 45.5% of waste. – Retained feed will be split in spirals and then cleaned using ta
Slide 35: Feasibility Results
Watershed Project – Feasibility Results For personal use only Results from the previous feasibility study indicate that the project would be economic and robust at current and forecast prices. Total operating costs (including royalties) expected to be around $66/ ton ore. Price per tonne of or
Slide 36: The Way Forward
Watershed Project – The Way Forward For personal use only JOGMEC to complete due diligence in August 2011. Complete Metallurgical Testwork. Review the Geology and Resource Model, target depth extents and close off pit resource. Firm up Flow Sheet, Recoveries and Costs. Firm up Opex and Cap
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