Aeon Metals — Investor Presentation (August 2017)
30 slides from Aeon Metals's investor presentation, August 2017
Slide 1: Walford Creek Project: World Class Mineral System Unlocked
WALFORD CREEK PROJECT: WORLD CLASS MINERAL SYSTEM UNLOCKED August 2017
Slide 2: Important Information
2 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 invitation to acquire
Slide 3: Aeon Metals - Queensland Asset Base
3 AEON METALS - QUEENSLAND ASSET BASE ✓ FLAGSHIP WALFORD CREEK PROJECT (100%) ✓ Large JORC Global Resource1 ✓ 296,000t of copper ✓ 60kt of cobalt ✓ 623,000t of zinc ✓ 626,000t of lead ✓ 55moz of silver Walford Creek ✓ PEA completed (Feb 2017) on high grade subset “Vardy Mt Isa Resource”. ✓ Cobalt ro
Slide 4: Walford Creek
4 WALFORD CREEK
Slide 5: World Class Mineral System: ~22km Mineralised Fault Corridor
5 WORLD CLASS MINERAL SYSTEM: ~22KM MINERALISED FAULT CORRIDOR Historical Drilling ▪ 1989-1996: WMC, 93 holes (DD/RC) = 16,100m. ▪ 2004-2006: Copper Strike, 30 holes (RC) = Current Global 3,500m. Resource ▪ 2010-2012: Aston Metals, 92 holes (DD/RC) = 15,000m. ▪ 2014-2017: ~4km Aeon Metals, 88 holes
Slide 6: Advanced, Large Base Metals Resource
6 ADVANCED, LARGE BASE METALS RESOURCE LARGE SEDIMENT HOSTED MINERAL SYSTEM Walford Creek Global Resources (March 2015) ✓ Mineralisation is both structurally and Walford Creek 2014-5 Resource Estimates lithologically controlled – Fish River Fault Category Mt Cu % Pb % Zn % Ag g/t Co % and Pyrite Uni
Slide 7: Higher Grade Cu-Co Vardy Resource
7 HIGHER GRADE Cu-Co VARDY RESOURCE Higher grade “subset” – Vardy Resource Vardy Resource Statement (December 20161) ✓ Near surface/close to fault. Walford Creek Vardy Resource Statement ✓ The estimate is for a 1km Category Volume m3 Mt Cu % Pb % Zn % Ag g/t Co % Pyrite % eastern zone, within the 4k
Slide 8: Geological Model Unlocked: Zambian Copperbelt Style
8 GEOLOGICAL MODEL UNLOCKED: ZAMBIAN COPPERBELT STYLE SCHEMATIC GEOLOGICAL CROSS SECTION
Slide 9: 2017 Drill Campaign – Geological Model Unlocked
9 2017 DRILL CAMPAIGN – GEOLOGICAL MODEL UNLOCKED 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 t
Slide 10: 2017 Drill Campaign
10 2017 DRILL CAMPAIGN 2017 Drill Campaign • 38 holes for 4,282m • 20 assay results yet to be returned Pre-Aeon Holes Aeon Holes 2014 -2016 Aeon Holes 2017 10Km 1Km
Slide 11: Cross Section – Zambian Copperbelt Style
11 CROSS SECTION – ZAMBIAN COPPERBELT STYLE AEON METALS LIMITED: ASX: AML | www.aeonmetals.com.au
Slide 12: 2017 Significant Intercept Examples
12 2017 SIGNIFICANT INTERCEPT EXAMPLES ✓ 2017 significant intercepts to date include: ✓ WFDD226: 26m @ 1.02% Cu, 0.26% Co and 38gt Ag from 26m ✓ Incl: 14m @ 1.42% Cu, 0.31% Co, 0.88% Zn and 37gt Ag from 35m ✓ WFDD230: 16m @ 1.37% Cu, 0.30% Co, 1.99% Zn and 21gt Ag from 77m ✓ Incl: 7m @ 2.72% Cu, 0.3
Slide 13: 4km Global Resource: Hitting the Lateral Sweet Spots
13 4KM GLOBAL RESOURCE: HITTING THE LATERAL SWEET SPOTS AEON METALS LIMITED: ASX: AML | www.aeonmetals.com.au
Slide 14: 1km Vardy Resource: Hitting the Lateral Sweet Spots
14 1KM VARDY RESOURCE HITTING THE LATERAL SWEET SPOTS Only 4 holes testing Only 2 holes testing Py3 adequately Py3 adequately AEON METALS LIMITED: ASX: AML | www.aeonmetals.com.au
Slide 15: World Class Tonnes and Grade Scale Potential
15 WORLD CLASS TONNES AND GRADE SCALE POTENTIAL Current Global Resource AEON METALS LIMITED: ASX: AML | www.aeonmetals.com.au
Slide 16: Cobalt = Power Storage
16 COBALT = POWER STORAGE Demand 12 Month Cobalt Price ▪ Cobalt is consumed by major industries with rechargeable lithium-ion batteries becoming a major Co use. “The problem with existing lead- acid batteries is that they suck” – Elon Musk ▪ 2016 global demand = ~93kt ▪ Batteries were ~11% of Co con
Slide 17: Largest Cobalt Sulphide Resource in Australia
17 LARGEST COBALT SULPHIDE RESOURCE IN AUSTRALIA X2 0.18 Vardy, QLD 0.16 Millenium, Qld 0.14 Savannah, WA 0.12 Mutooroo, SA Walford Creek, QLD 0.10 Cobalt Grade (% Co) Thackaringa, NSW Nova-Bollinger, WA 0.08 0.06 Basil, NT Maroochydore, WA 0.04 0.02 Mount Gunson, SA Rocklands, Qld 0.00 0 10 20 30 4
Slide 18: Australian Laterites vs Sulphides
18 AUSTRALIAN LATERITES VS SULPHIDES 0.18 Vardy, QLD Laterites = High pressure acid leach Sulphides = Atmospheric leach or roast 0.16 2017 drilling to increase Resource tonnage Atmospheric leach Millenium, Qld 0.14 Mt Thirsty, WA KNP Co zones, WA Savannah, WA 0.12 Syerston, NSW Mutooroo, SA Murrin M
Slide 19: Next Steps
19 NEXT STEPS Project Development: ▪ Global & Vardy Resource revised to reflect refined geological model and 2017 drill results. WORLD CLASS ▪ Rescoping/rescaling assessment of project development: MINERAL SYSTEM ▪ Inclusion of high grade PY3 tonnes; ▪ PY3 infill and expansion (along strike) drillin
Slide 20: Board of Directors & Management
20 BOARD OF DIRECTORS & MANAGEMENT PAUL HARRIS HAMISH COLLINS STEPHEN LONERGAN IVAN WONG DAN JOHNSON CHAIRMAN MANAGING DIRECTOR NON-EXEC DIRECTOR NON-EXEC DIRECTOR EXPLORATION MANAGER M.Eng (Mining) B.Eng (Mining) Hons LL.B (Hons) Australian BSc Hons BSc (Hons) in Geology University ofNSW, Universit
Slide 21: Capital Structure & Shareholder Register
21 CAPITAL STRUCTURE & SHAREHOLDER REGISTER / / / / $0.19 347.83M $65.9M $3.0M $33.5M SHARE PRICE SHARES MARKET CAP CASH LIMITED (A$) 1 OUTSTANDING (A$) 1 (A$) 4 RECOURSE 73M 2,3 VENDOR DEBT5 (A$) VENDOR WARRANTS TOP 10 SHAREHOLDERS1 TOP 5 SHAREHOLDERS1 CS Third Nominees (OCP Holdings) 23.0% Bliss I
Slide 22: Appendices
22 APPENDICES
Slide 23: Appendix 1: Competent Person Statement
23 APPENDIX 1: COMPETENT PERSON STATEMENT The data in this report that relates to Mineral Resource Estimates for the Walford Creek Deposit and Vardy Zone Deposit is based on information evaluated by Mr Simon Tear who is a Member of The Australasian Institute of Mining and Metallurgy (MAusIMM) and wh
Slide 24: Appendix 2: Northwest Queensland Resources
24 APPENDIX 2: NORTHWEST QUEENSLAND RESOURCES Source: Core Resources, March 2017 AEON METALS LIMITED: ASX: AML | www.aeonmetals.com.au
Slide 25: Appendix 3: Vardy PEA Summary
25 APPENDIX 3: VARDY PEA SUMMARY PEA Announced 15 Feb 20171,2 ✓ 600ktpa throughput plant resulting in life-of mine (“LOM”) production of 38kt copper, 29kt zinc, and 3kt cobalt metals in concentrate. ✓ Projected life of mine revenue from copper, zinc, silver and cobalt estimated at $579M. ✓ Operating
Slide 26: Appendix 3: Vardy Processing Flowsheet
26 APPENDIX 3: VARDY PROCESSING FLOWSHEET AEON METALS LIMITED: ASX: AML | www.aeonmetals.com.au
Slide 27: Appendix 4: Cobalt Roasting Scoping Study Summary
27 APPENDIX 4: COBALT ROASTING SCOPING STUDY SUMMARY ✓ Optimised open pit for 2.5Mtpa 2.5mtpa Global Resource Pit Shell vs Vardy PEA Pit Shell ROM ore over 15 years; ✓ Conventional float mill to produce copper, zinc, lead and pyrite concentrates. ✓ The pyrite concentrate processed through an onsite
Slide 28: Appendix 4: Cobalt Roasting Scoping Study Summary
28 APPENDIX 4: COBALT ROASTING SCOPING STUDY SUMMARY ✓ Operating cost of $74/t of ROM production. ✓ Estimated total capital cost is ~A$668M, including A$33M mining pre-strip costs and A$55M contingency. ✓ Payback period is ~3 years. ✓ Robust financial metrics which include an after tax NPV8% of ~A$4
Slide 29: Appendix 4: Cobalt Roasting Possible Acid Solution
29 APPENDIX 4: COBALT ROASTING POSSIBLE ACID SOLUTION ✓ The addition of sulphuric acid to phosphate rock to produce the high value (~A$820/t) phosphoric acid product enables the reduction of volume, materially enhances the margin and by default significantly boosts the value of the acid. ✓ An exampl
Slide 30: Appendix 4: Cobalt Roasting/Phosphate Flowsheet
30 APPENDIX 4: COBALT ROASTING/PHOSPHATE FLOWSHEET AEON METALS LIMITED: ASX: AML | www.aeonmetals.com.au