APC Minerals Limited · ASX:APC
APC Minerals — Goldphyre Resources — Investor Presentation (June 2016)
26 slides from APC Minerals's investor presentation, June 2016
Slide 1: Goldphyre
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Slide 2: Disclaimer & Forward Looking Statements
DISCLAIMER & FORWARD LOOKING STATEMENTS This presentation has been prepared by Goldphyre Resources Ltd (“GPH”). It contains background information about GPH current at the date of this presentation. The Directors of the Company are not aware of any information that alters the accuracy of this inform
Slide 3: JORC Resource
JORC RESOURCE Recoverable SOP Using Drainable porosity, or ‘Specific Yield’, we can Global Resource* estimate the amount of SOP recoverable from the total, in- situ SOP (which is measured using Total porosity) Contained Grade (kg/m3) Number of ASX listed companies in Australia with SOP (Mt) 5 a SOP
Slide 4: Logistics
LOGISTICS Location, location, location • LOGISTICS ARE VITALLY IMPORTANT TO BULK MINERAL PROJECTS • BUILDING ROAD INFRASTRUCTURE AND ESTABLISHING PORT ACCESS IS COSTLY • GPH’S LAKE WELLS POTASH PROJECT HAS EXISTING ROADS TO IT • GPH IS LOOKING TO MEET THE DOMESTIC DEMAND FOR SOP GPH WILL ASSESS THE
Slide 5: The Lake Wells Potash Project
THE LAKE WELLS POTASH PROJECT “Goldphyre’s strategy is to focus on the high-grade core of the resource, targeting the Australian domestic demand for SOP”
Slide 6: Abstraction Method - Brine Recovery Is Key
ABSTRACTION METHOD - BRINE RECOVERY IS KEY Palaeochannel Bore Fields • EACH YEAR IN WESTERN AUSTRALIA BILLIONS OF LITRES OF WATER IS ABSTRACTED USING PALEOCHANNEL BOREFIELDS • FOR EXAMPLE - MURRIN MURRIN: 12GL/YEAR MT KEITH: 12GL/YEAR ST IVES: 12GL/YEAR • ABSTRACTING WATER FROM BORE FIELDS • TRIED,
Slide 7: The Lake Wells Potash Project
THE LAKE WELLS POTASH PROJECT Model Section 1 Model Section 2 A B A B 440 490 390 Scale: 1:75,000 Vertical exaggeration: 20x 440 340 0m 1500m 390 Scale: 1:75,000 290 Vertical exaggeration: 20x x: 518670 x: 518506 x: 518342 x: 518177 340 0m 4000m y: 6987336 y: 6985343 y: 6983349 y: 6981356 290 Legend
Slide 8: Brine Abstraction Methods
BRINE ABSTRACTION METHODS PALAEOCHANNELS BORE FIELD BRINE ABSTRACTION • PERMEABILITY & POROSITY ARE KEY • NETWORK OF BORES PUMP INTO EVAPORATION PONDS • SCALEABLE, SIMPLE TO BUILD, COMMON TRENCHING BRINE ABSTRACTION • 100’S OF KMS OF TRENCH NETWORKS TYPICALLY REQUIRED • RECHARGE INTO CHANNELS FROM B
Slide 9: Brine Recovery
BRINE RECOVERY The Efficiency of Brine Recovery will Determine Success • BRINE ABSTRACTION IS A FUNCTION OF THE PERMEABILITY AND SPECIFIC YIELD OF THE MATERIAL FROM WHICH IT IS BEING ABSTRACTED: SANDS HAVE HIGHER SPECIFIC YIELD THAN CLAYS • BASAL AND UPPER SAND AQUIFERS ARE PRESENT AT GPH’S LAKE WEL
Slide 10: Logistics
LOGISTICS Lake Wells road 85km Great Central Road 90km Laverton-Leonora Road 125km Bulk projects need quality infrastructure and good access The Leonora rail head is 280km from the Lake Wells Potash Project “Using existing infrastructure enables us to target faster development”
Slide 11: Unique Investment Proposition
UNIQUE INVESTMENT PROPOSITION Australian Potash for Australian Farmers • WA BRINE HOSTED SULPHATE OF POTASH (SOP) PROJECT • AIMING TO FEED THE DOMESTIC DEMAND FOR SOP WHICH IS CURRENTLY 100% IMPORTED • SUPERIOR MINING JURISDICTION IN THE EASTERN GOLDFIELDS OF WA • SIMPLE, TRIED AND TESTED BRINE EXTR
Slide 12: Corporate Overview
CORPORATE OVERVIEW Financial information Shareholders Share price 24 June $0.115 Yandal Investments Pty Ltd (Mark 19.9% Creasy) Number of shares 146.9m Board & management 8.6% Options 95.4m Top 20 54.7% Market Capitalisation $16.8m 6 $0.14 Cash 31 March $1.1m Vol. traded Share price 5 (m) $0.12 Ente
Slide 13: Emerging Potash Player
EMERGING POTASH PLAYER “Location, logistics, ability to get the brine … 17 are all vital parameters with an Australian brine SOP project” Agrimin 48 Rum Jungle 20 Salt Lake Potash 44 Reward 58 0 10 20 30 40 50 60 70 Market capitalisation A$ undiluted
Slide 14: What Is Potash?
WHAT IS POTASH? • Potash is a fertiliser that provides plants with the essential, non-substitutable macro-nutrient, potassium which all plants need to grow • Potassium is the ‘quality element’ in plant growth, improving appearance, feel, texture and yield* • Potassium is mined from the soil through
Slide 15: How Useful Is Potash?
HOW USEFUL IS POTASH? Corn Potash Application Rates & Yield 180 70 160 60 Potash application rate (K2O/acre) 140 50 Yield (bushels per acre) High application rates 120 = High yield 100 40 80 30 60 Low application rates = Low yield 20 40 10 20 0 0 US Canada China India Africa The effect of increasing
Slide 16: Potash Demand
POTASH DEMAND Global crop production and potash consumption 80 80 70 70 Potash consumption (mT KCl) 60 60 Crop production (mT) 50 50 40 40 30 30 20 20 10 10 0 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 More people means more food produc
Slide 17: SOP Economics
SOP ECONOMICS SOP can be produced in several ways Most Least expensive expensive Manheim process Reacted salts Hard-rock mining Brine evaporation Average cost of production A$275/tonne Farm-gate price of SOP in Western Australia A$1,100/tonne “A domestic SOP brine operation can provide Australian fa
Slide 18: SOP Production
SOP PRODUCTION SOP held in brine is produced through evaporation 1. Pumping 4. Conversion The palaeochannel Schoenite is bore-field pumps converted, or brine into evaporation crystallised, into SOP ponds 2. Evaporating 5. Processing Brines pass through SOP is washed, dried, evaporation ponds, screen
Slide 19: Brief History Rapid Progress
BRIEF HISTORY RAPID PROGRESS Going forward …. Q3/Q4 Test bore pumping trials Q3 Bench scale evaporation trials MARCH 2016 Exploration Target* of 6Mt – 37Mt (specific yield) FEBRUARY 2016 Q3/Q4 JORC Resource upgrade Seismic surveys double the length of the palaeochannel DECEMBER 2015 Q4 Test field ev
Slide 20: Experienced Incentivised
EXPERIENCED INCENTIVISED The Board Management Matt Shackleton, Executive Chairman Matt Shackleton, Executive Chairman BComm., MBA, FCA, MAICD Brenton Siggs, Exploration Manager Over 20 years experience in corporate & resource company management Carsten Kraut, Principal Hydrogeologist Brenton Siggs,
Slide 21: Compelling Opportunity
COMPELLING OPPORTUNITY Ideally positioned for Rapid Project Growth and Development • Strong grades and scale in a highly conducive environment for evaporation • Well funded for next program of works: test pumping & evaporation pond trials Q3/Q4 2016 • Strong and supportive shareholder base • Tried a
Slide 22: Derisking Lake Wells
DERISKING LAKE WELLS Q1 2016 Q2 2016 Q4 2016 Q1 2017 • Incorporate LWE data into Exploration target exploration target • n/a • n/a • n/a data area • COMPLETE • Brine sampling • Collect samples across horizons, for porosity and geophysics Inferred resource specific yield • n/a • n/a • PUBLISH analysi
Slide 23: Derisking Lake Wells
DERISKING LAKE WELLS Exploration Inferred Indicated Measured target resource resource resource Desktop studies ✔ n/a n/a n/a Auger sampling ✔ ✔ ✔ n/a Core drilling n/a ✔ ✔ ✔ Exploration drilling ✔ ✔ ✔ ✔ Geophysics ✔ ✔ ✔ ✔ Test bores n/a n/a ✔ ✔ Modelling ✔ n/a ✔ ✔ Environmental n/a n/a ✔ ✔ Reporting
Slide 24: Appendix 1: Lake Wells Potash Project JORC Inferred Resource
APPENDIX 1 The Lake Wells Potash Project JORC Compliant Inferred Mineral Resource Estimate measured using Specific Yield
Slide 25: Competent Persons Statements
COMPETENT PERSONS STATEMENTS The information in the announcement that relates to Exploration Targets and Mineral Resources is based on information that was compiled by Mr Jeffery Lennox Jolly. Mr Jolly is a principal hydrogeologist with AQ2, a firm that provides consulting services to the Company. N
Slide 26: Thankyou
THE LAKE WELLS POTASH PROJECT Thankyou www.goldphyre.com.au
Goldphyre Resources — Investor Presentation (June 2016) on 6ix