Galileo Resources Plc · LSE:GLR
Galileo Resources — Investor Presentation (March 2012)
24 slides from Galileo Resources's investor presentation, March 2012
Slide 1: Flagship Glenover Rare Earth Project
FLAGSHIP GLENOVER RARE EARTH PROJECT 1
Slide 2: Disclaimer
Disclaimer THIS DOCUMENT (“DOCUMENT”) IS STRICTLY CONFIDENTIAL AND IS BEING PROVIDED TO YOU SOLELY FOR YOUR INFORMATION. THE DISTRIBUTION OF THIS DOCUMENT MAY BE RESTRICTED BY LAW. ACCORDINGLY, THIS DOCUMENT MAY NOT BE DISTRIBUTED IN ANY JURISDICTION EXCEPT IN ACCORDANCE WITH THE LEGAL REQUIREMENTS
Slide 3: Why Rare Earths?
Who knew much about Rare Earths three years ago? Why Rare Earths? Possess numerous unique properties, making them indispensable to modern technology required to sustain the needs of today’s society “Green” technologies such as fuel cells, hybrid vehicles, wind turbines China produces over 95 %
Slide 4: Rare Earths Quotas
Chinese have really put the brakes on! Rare Earths Quotas 2010 2011 Feb 2011 China’s State Council says it will Nov 2010 China resumes Strengthen oversight of the shipments of rare earths to Japan Rare earths industry Jul 2011 Beijing brings 2011 export Jul 2010 Beijing slashes export Quotas to the
Slide 5: Location Of Project
Project located next to tarred road – good infrastructure Location Of Project Botswana 5
Slide 6: Aerial photograph of old pit
Big former pit – easy access to new ore Aerial photograph of old pit Mine Area and Apatite-Haematite Breccia Ore Stockpiles Ore Stockpiles 0 50 100 200 Metres Ore Stockpiles 1.34 million m3 2.0-2.5 million tonnes 6
Slide 7: Glenover history
Owned by Gold Fields for phosphate production Glenover history Pyroxenite – carbonatite complex Circular in shape and approximately 5km in diameter 3 geological zones: Breccia body of apatite and iron oxides Carbonatite plug around breccia body Three pyroxenite zones mineralised with apatite a
Slide 8: Mission Statement
Galileo is focused Mission Statement To in-fill drill around old phosphate pit to establish SAMREC tonnage for primary extraction To independently establish tonnes and grade for old phosphate stock piles To carry out mineralogical and metallurgical test work to optimise rare earth oxide proces
Slide 9: Glenover Rare Earth Project
Established site Glenover Rare Earth Project Available process equipment Phosphate open pit Recent drilling Open pit stockpiles 9
Slide 10: Glenover Carbonatite Geology
Southern Africa’s second biggest carbonatite Glenover Carbonatite Geology Pit Area Pit Area Geology Carbonatite Geology Carbonatised Pyroxenite Coarse-grained Pyroxenite Carbonatite Fine-grained Pyroxenite Fenitised Quartzite Carbonatised Pyroxenite Coarse-grained Pyroxenite Fine-grained Pyroxenite
Slide 11: Glenover Current Drill Programme
Fast track drilling programme Glenover Current Drill Programme GHV016 GHV008 GHV010 GHV011 GHV009 GHV015 GHV014 GHV012 GHV019 GHV021 GHV005 GHV006 GHV007 Status GHV003 GHV004 Assays Reported GHV017 GHV020 Awaiting Assays GHV018 Borehole Trace Pit Geology GHV001 Apatite Breccia * Weighted GHV002avera
Slide 12: Drilling results to date
Significant bulk tonnage results Drilling results to date Hole Entire core % TREO * cut off 1% TREO % * GHV metres TREO metres 1 243 1.95 153 2.73 2 194 0.70 3.6 2.76 3 133 2.14 52 4.30 4 100 2.12 45 3.23 5 163 1.77 97 2.38 6 142 1.21 22 3.12 * Weighted averages over total sampled width including an
Slide 13: High Grade Shoots
Impressive high grades shoots High Grade Shoots Hole High Grade % TREO* GHV metres 1 4 5.51 17 4.46 86 3.49 2 2 4.20 3 52 4.30 18 8.24 4 1 6.52 2 4.49 8 8.03 5 16 3.75 6 6 6.22 9 5.39 13
Slide 14: Niobium (Nb2O5)
Niobium significant by-product. Stand alone grades? Niobium (Nb2O5) Hole Entire core Nb2O5 High Nb2O5 GHV metres %* Grade %* metres 1 243 0.50 17 1.02 2 194 0.11 2 0.47 3 133 0.43 52 0.85 4 100 0.18 8 0.74 5 163 0.62 91 0.93 16 1.24 6 142 0.26 20 0.66 9 0.99 * Weighted averages over total sampled wi
Slide 15: Platinum and Gold equivalents
Valuable rock when you make comparisons Platinum and Gold equivalents Based on current prices In situ In situ gross Platinum Gold grade metal value equivalent equivalent % REO $/t ** g/t *** g/t *** 3.1* 2140 42 39 Every 1% 690 13a 13a * Basis average of borehole results to date cut off 1%REO ** Bas
Slide 16: Glenover New Exploration Drilling
Bold step outs being drilled against geophysics Glenover New Exploration Drilling Open pit area Exploration Drilling Current Pit Area Magnetic Dykes Later Dykes Thorium Anomaly Demagnetised Zones Magnetic Pyroxenite Outline of Carbonatite 0 1 000 2 000 Quartzite Meters * Weighted averages over total
Slide 17: REO Distribution
Good split of desired rare earth Oxides REO Distribution LREOs 97% Light rare earth oxides La, 17% Pr, 6% Sm, 3% HREOs >0.5% dist’n Nd, 22% heavy rare earth oxides Y, 2% Dy, 0.6% Eu, 1% HREOs;3% Gd, 1.8% Ce, 46% 17
Slide 18: Borehole Core Lithology Log
Apatite is very significant Borehole Core Lithology Log GRADE CUT FROM (m) TO (m) WIDTH (m) P2O5 % TREO % > 1% LREO 25.22 181.26 156.04 23.61 2.77 Including 38.5 41.5 3 27.33 3.38 Including 93.38 99.16 5.78 22.15 4.31 Including 102.65 114.06 11.41 25.41 6.03 Including 125.92 139.35 13.43 23.87 3.97
Slide 19: Borehole Core Lithology Log
But so is carbonatite Borehole Core Lithology Log GRADE CUT FROM (m) TO (m) WIDTH (m) TREO % P2O5 % > 1% LREO 0 46.35 46.35 3.17 11.46 Including 5.64 8.74 3.1 4.05 27.16 Including 20.14 27.92 7.78 8.03 14.97 19
Slide 20: Programme
Results good, direction clear – focused team Programme Mineralogical & metallurgical test work Pit expansion mine design Design flow sheet for rare earth oxide concentrate processing Feasibility study Explore entire deposit to increase rare earth ore resource 20
Slide 21: Share price performance
Market beginning to recognise us Share price performance AIM: GLR Shares in issue: 75 million Market capitalisation: £ 29 million 21
Slide 22: Peer Group Comparison
How do we shape up against our competitors? Peer Group Comparison RESOURCE RESOURCE REO MARKET /DEPOSIT /DEPOSIT MARKET CAP COMPANY COUNTRY PROJECT KG CAP MILLION GRADE £/ KG REO MILLION £M TONNES REO % AVALON RARE METALS CAN NECHALACHO 315 1.36 4300 225 0.05 ARAFURA RESOURCES AUS NOLANS 30.3 2.8 84
Slide 23: Compelling Investment Case
Well balanced with above average rare earth project Compelling Investment Case Quality, near cash flow, strategic position Glenover rare earth project well positioned against peers since close to production Good local partners Strong international trade interest Mining cost lower since at
Slide 24: Thank you very much
Thank you very much www.galileoresources.com 24
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