Sundance Resources — Vimy Resources — Diggers and Dealers 2016
40 slides from Sundance Resources's conference presentation, Aug 1, 2016
Slide 1: Mining a cleaner tomorrow
Mining a cleaner tomorrow Diggers and Dealers – 1 August 2016 Mike Young, Managing Director and CEO Vimy Resources Limited
Slide 2: Vimy's vision and mission
Vimy’s vision and mission ‘Mining a cleaner tomorrow’ Vimy aims to become a reliable and respected uranium producer. 2
Slide 3: Vimy's vision and mission
Vimy’s vision and mission ‘Mining a cleaner tomorrow’ ● Approximate offset of 50mt CO2 per annum, 10% of Australian total ● Best practice fauna “camera trapping” program – developed with Department of Parks and Wildlife, Western Australia; nominated for a Golden Gecko Award ● In-pit tailings disposa
Slide 4: Vimy Resources – a uranium company
Vimy Resources – a uranium company Board with proven track records in People building mines and management team with strong uranium experience Mulga Rock is the third largest Project undeveloped uranium deposit in Australia Commodity Growing demand for uranium Financially sound Strong balance sheet
Slide 5: People who deliver
People who deliver Hon. Cheryl Edwardes AM Mike Young Non-Executive Chairman CEO and Managing Director Significant networks in Government and in Asia’s Building mines business community Founding Managing Director of BC Iron Ltd Former WA State Government Minister holding Ministries of Uranium experi
Slide 6: Strong balance sheet and shareholder base
Strong balance sheet and shareholder base Capital structure Significant shareholders Shares on issue 230 million Forrest Family Investments 25% Share price (28 July 2016) $ 0.32 Macquarie 19% Market cap $ 73.6 million Acorn Capital 19% Cash (30 June 2016) $ 4.6 million Michael Fewster 16% Debt drawn
Slide 7: Chinese action on climate change
Chinese action on climate change ● Chinese commitments (INDCs*) to UNFCC** – Carbon emissions will peak by 2030 or earlier – Carbon emissions/GDP lowered by 60-65% compared to 2005 levels (34% already achieved) – Increase share on non-fossil fuels in primary energy to ~ 20% › Will require > 150 GW b
Slide 8: U market – supply vs demand
U market – supply vs demand Operating nuclear capacity forecast (GWe gross) ● RJL is conservative vs WNA ● 2020E units running or under construction ● Planned = approved and funded but no concrete Global supply forecast (Mlbs/yr U308eq) ● Flat growth ● Clear mismatch ● Requires >$50 US Source: Raymo
Slide 9: Uranium price
Uranium price Global uranium incentive price curve for planned and potential new primary supply Spot price LT price Incentive uranium price (US$/lb) Cumulative production of planned / potential new mines at max. capacity (Mlbs/yr) Source: Raymond James, 2015 9
Slide 10: Mulga Rock Project – Western Australia
Mulga Rock Project – Western Australia Australia’s third largest 76.2Mlb U3O8 Resource + undeveloped U deposit 17 year mine life Flat lying lignite-hosted; Simple geology shallow open pit Proven techniques; Simple mining free-dig mining methods Strip mining allows “real time” rehab Beneficiation bre
Slide 11: U3O8 Mineral Resource Estimate
U3O8 Mineral Resource Estimate Cut-off grade Tonnes U3O8 U3O8 Deposit / Resource Classification (ppm U3O8) (Mt) (ppm) (Mlb) Mulga Rock East Princess Indicated 150 1.3 690 1.9 Princess Inferred 150 2.5 380 2.1 Ambassador Indicated 150 19.8 720 31.5 Ambassador Inferred 150 10.4 330 7.7 Sub-total 34.1
Slide 12: Mulga Rock Project location plan
Mulga Rock Project location plan ● 76.2 Mlb U3O8 Resource, >17 year mine life ● 58Mlb U3O8 Mineral Inventory (diluted and recovered) ● Remote, arid location with no local inhabitants +200km to nearest town ● Deposits covered by granted Mining Leases on vacant Crown land 12
Slide 13: Deposit location plan showing development envelope
Deposit location plan showing development envelope Project boundary Pits (mining tenure) Overburden landforms Supporting infrastructure – airstrip and camp Processing infrastructure MRP development envelope 13
Slide 14: Geology: carbon-rich sediment host rock
Geology: carbon-rich sediment host rock Typical aircore drill hole Drill hole Overburden – oxidised sediments Redox boundary ● Hosted within deeply weathered sediments comprising carbonaceous sandstone; silt; sandy lignites ● Mostly Uraninite (UO2) associated with carbonaceous material Uranium-beari
Slide 15: Mining: simple, established mining methods
Mining: simple, established mining methods ● Japanese test pit at Shogun in 1980s shows clear demarcation between carbon-rich mineralisation and oxidised overburden ● Overburden amendable to free dig mining methods ● DFS will optimise bulk mining methods for overburden excavation using coal mining t
Slide 16: Geotechnical investigation trenches
Geotechnical investigation trenches ● Free dig / dozer ripping – no blasting ● Geotech confirmed – upper horizon highly stable ● Mining rates higher than expected ● Groundwater level as expected ● 130t ore mined; 50t sent to pilot plant 16
Slide 17: Strip mining method – in-pit crushing and conveying
Strip mining method – in-pit crushing and conveying Rope shovel (back left) loads overburden on to a bridge conveyor for transport to waste dumps. Runs at 10,000 tph. Mobile spreader/stacker dumping conveyed material. Pingshuo Coal Mine (China Coal); Vimy site visit, April 2016 17
Slide 18: Ore mining method – selective mining
Ore mining method – selective mining High selectivity – ore (black) is exposed at Ambassador West Trench 18
Slide 19: Mining: large strip mining operation
Mining: large strip mining operation Princess in-pit TSF Ambassador in-pit TSF Rehabilitation 0 0.5 1.0 Kilometres Backfilled overburden Mined out pit Exposed ore In situ profile 19
Slide 20: Proven metallurgy
Proven metallurgy Uranium packaging Elution RIP ion exchange Base metal plant Acid leach Thickeners Four stage process ● Beneficiation – removes gangue sands Crushing ● Sulphuric acid leach ● Resin-In-Pulp ion exchange ● Uranium precipitation and packaging From bene plant 20
Slide 21: Process development – pilot test work
Process development – pilot test work Upward classifier Leach tank train Resin-in-Pulp circuit 21
Slide 22: Definitive Feasibility Study – activities
Definitive Feasibility Study – activities Mine design Ore reserves Process piloting ● Optimisation of resource ● Conversion Indicated ● Beneficiation circuit upgrades (August) Probable Ore Reserves successfully proves upgrade (August) concept ● Strip mining method with highly mechanised fleet ● Expe
Slide 23: Definitive Feasibility Study – activities
Definitive Feasibility Study – activities U marketing and Engineering project finance First shovel in ground ● Project Manager GR Engineering ● Active U marketing underway – ● Early works include: Areva, EDF, Exelon, etc. ● Plant design to produce o Mine access road 3Mlbs U3O8 > Strong interest in A
Slide 24: Mulga Rock Project timeline to first uranium
Mulga Rock Project timeline to first uranium 2016 2017 FID Activity Q1 Q2 Q3 Q4 Q1 Definitive Feasibility Study Public Environmental Review Mining approvals Board approval Works approvals to Resource update and ore reserve proceed Final Metallurgical pilot test work Investment Uranium marketing Deci
Slide 25: Benefits to Western Australia
Benefits to Western Australia ● New jobs created in WA ~ 490 full-time employees ● New business for existing service industries and suppliers, particularly in Kalgoorlie ● Royalties paid to State* ~ A$15m pa ● Payroll tax paid to State ~ A$4m pa ● Mostly high value-adding / skilled jobs ● Exports ~
Slide 26: Investment summary
Investment summary Globally significant uranium deposit - size and scale Excellent commodity opportunity - growing uranium demand People with track record and vision “Non-stop” development schedule Strong balance sheet 26
Slide 27: For more information on the uranium industry
For more information on the uranium industry See Vimy Resources website – Useful links http://www.vimyresources.com.au/index.php/2016-06-16-01-41-27/uranium-information 27
Slide 28: Disclaimer and statement of confirmation
Disclaimer and statement of confirmation The purpose of this presentation is to provide general information about Vimy Resource Limited (Vimy); it constitutes a professional opinion only and is given in good faith. It is not recommended that any person makes any investment decision in relation to Vi
Slide 29: Appendix
Appendix Biographies - Board and key management Resource Estimates and tables Pre-feasibility Study project metrics Photos 29
Slide 30: People: The Board
People: The Board The Hon. Cheryl Edwardes AM – Non-Executive Chairman ● Former WA State Government Minister holding Ministries of Environment, Labour Relations and Attorney General ● Providing statutory and approvals advice to Atlas Iron, Hancock Prospecting, FTI Consulting ● Significant networks i
Slide 31: People: The Team
People: The Team Ron Chamberlain – Chief Financial Officer and Company Secretary ● Financial professional with over 25 years’ experience in resources companies – exploration through to mine closure ● Significant experience with uranium companies as inaugural CFO for Paladin Energy and Extract Resour
Slide 32: PFS optimised diluted mineral inventory – November 2015
PFS optimised diluted mineral inventory – November 2015 Ore Waste tonnes tonnes U3O8 Cu Zn Ni Co Deposit / pits (Mt) (Mt) (ppm) (ppm) (ppm) (ppm) (ppm) Mulga Rock East Princess 3.7 54 450 460 815 330 175 Ambassador 28.0 378 550 245 890 475 220 Sub-total 31.7 432 535 270 885 460 215 Mulga Rock West E
Slide 33: Mulga Rock maiden Ore Reserve
Mulga Rock maiden Ore Reserve Total metal Cut-off grade Tonnes U3O8 U3O8 Deposit / Resource Classification (ppm U3O8) (Mt) (ppm) (Mlb) Mulga Rock East Princess Probable 150 1.3 640 1.8 Ambassador Probable 150 13.9 660 20.2 Total Reserve 15.2 660 22.1 ● Mulga Rock Maiden Ore Reserve announced to ASX
Slide 34: Pre-feasibility Study results
Pre-feasibility Study results Life of Mine (LOM) 17.1 years Nameplate Run-of-Mine 2.65 Mtpa We are proud that ROM uranium grade (Years 1-10) 601 ppm U3O8 Mulga Rock will deliver ROM uranium grade (LOM) 515 ppm U3O8 enough uranium fuel Average strip ratio LOM (waste tonne / ore tonne) 15.8 to offset
Slide 35: What's happening at Mulga Rock?
What’s happening at Mulga Rock? Regional landscape 35
Slide 36: What's happening at Mulga Rock?
What’s happening at Mulga Rock? Core drilling – October 2015 36
Slide 37: What's happening at Mulga Rock?
What’s happening at Mulga Rock? East GIT – January 2016 37
Slide 38: What's happening at Mulga Rock?
What’s happening at Mulga Rock? East GIT – January 2016 38
Slide 39: What's happening at Mulga Rock?
What’s happening at Mulga Rock? East GIT – January 2016 39
Slide 40: What's happening at Mulga Rock?
What’s happening at Mulga Rock? East GIT – January 2016 40