Slide 1: Webinar - Mt Carbine Tungsten Project Update
EQ RESOURCES LIMITED Webinar - Mt Carbine Tungsten Project Update 21st September 2022 ASX : EQR
Slide 2: Disclaimer
Disclaimer Competent Person's Statement • The information in this presentation partly relates to the outcomes of the Mt Carbine Bankable Feasibility Study, made available through the Company’s website www.eqresources.com.au/. • The Company confirms that it is not aware of any new information that ma
Slide 3: Mt Carbine: Australia's Only Primary Tungsten Producer
Mt Carbine: Australia's Only Primary Tungsten Producer Tungsten Concentrate from Mt Carbine Operations 3
Slide 4: Mt Carbine: A Globally Significant Business
Mt Carbine: A Globally Significant Business Currently in Australia's only primary tungsten producer, consistently accelerating production. Open pit production to WO3 Production commence by April Quarter 2023. Secured Long-Term Secured offtake via CRONIMET partnership for at least 25,000 tonnes conce
Slide 5: Corporate Overview
Corporate Overview Key Statistics Share Price Performance Share Price $0.05 per share 12-month range $0.04 - $0.078 per share 2 4 6 Shares on Issue 1,344 million 3 Options (unlisted) 111 million 7 8 Market Capitalisation $67.2 million 5 Debt* (unsecured) $1.5 million (@8% interest p.a.) $4 million (
Slide 6: Board & Leadership Team
Board & Leadership Team Diverse and Experienced Board & Leadership Team Oliver Kleinhempel - Non-executive Chairman Stephen Layton - Non-executive Director Zhui Pei Yeo - Non-executive Director • Appointed Non-executive Director 12 • Appointed Non-executive Director 14 • Appointed Non-executive Dire
Slide 7: Mt Carbine's Major Infrastructure Advantages
Mt Carbine’s Major Infrastructure Advantages De-risked Mt Carbine Open-Cut & Modernisation Project is currently Australia’s only primary Tungsten mine and is exporting concentrate economically and consistently to global consumers • Tungsten concentrate currently produced at site is loaded into bulk
Slide 8: Compelling Economics
Compelling Economics Initial BFS (December 2021) already confirmed high margins, low capital intensity & operating cost and speed to market Parameter Unit BFS (Dec ‘21) Total Cash Cost (FCA) A$/mtu 159 Capital Cost A$m 22.9 Pre-tax NPV8, real A$m 131 / 105* NPV / Capex Ratio x 5.7 EBITDA Margin (LoM
Slide 9: Current Funding Arrangements
Current Funding Arrangements CAPEX Funding for Mt Carbine Expansion & Early Works Program Facility Amount Interest p.a. / Cost CMAI* Grant (Federal Government) $6 million Government Grant support Sandvik Supply & Finance $4.8 million 5.75% interest p.a.; 30% deposit Interest free; Extension of exist
Slide 10: Tungsten Overview
Tungsten Overview Imagery of Mt Carbine drill core 10
Slide 11: Tungsten in a Nutshell
Tungsten in a Nutshell Strategic value due to heavy industrial & military uses, with upcoming battery applications • Classified as ‘critical • Very high supply • Tungsten has highly metal’ by EU, UK, US, concentration (5 mines favorable supply- Japan, South Korea & account for 23% of demand dynamics
Slide 12: Supply and Demand Dynamics
Supply and Demand Dynamics Heading towards significant supply deficit Global demand rebounding from effects of Covid pandemic (8% growth forecasted by 2023 vs 2021). China remains major producer throughout 2020’s, whereas proportion of global production dropping to 64% by 2030 (from >80% in 2020). N
Slide 13: EQR Today
EQR Today Imagery of the Mt Carbine process plant 13
Slide 14: History of Mt Carbine
History of Mt Carbine Strong History of Tungsten Production, Historically a World Leader Provides Low Risk Western Tungsten Supply 1925 1936 1947 1958 1969 1980 1991 2002 2013 2023 1883: 1969: QLD Wolfram Ltd. Sporadic, largely undocumented extraction Infrastructure Remains in place Infrastructure U
Slide 15: Mt Carbine Process Flowsheet
Mt Carbine Process Flowsheet Technologically driven | Economically proven | Actively Producing | Consistently Selling | Environmentally Responsible Ore : Low Grade Stock Pile Primary Crush & Screen XRT Ore Sorter Plant Stockpiled for Quarry Sales • Sorter Feed undergoes 10x upgrade • Currently 12Mt
Slide 16: Mt Carbine Expansion & Development Plan
4 1 6 Mt Carbine Expansion & Development Plan 100% owned by EQ Resources Mt Carbine Mine 1616
Slide 17: Development Timeline
Development Timeline Phased approach for early cash flow UG Facilitation Early Works Funding & Bankable Secure Sept 2022: Western Environmental Doc Internal Engineering Feasibility UG Scoping Expansion MRE Updated BFS Extension UG Reserve Approval Approval Study Complete Complete Study Funding Updat
Slide 18: Technologically Driven, Economically Proven
Technologically Driven, Economically Proven Overcoming Western World difficulties using Sensor Based Sorting ✓ XRT Ore Sorting makes tungsten mining in Australia economically viable * ✓ Two TOMRA XRT Sorters now fully operational for increased production efficiencies and doubling of sorting throughp
Slide 19: New Tertiary Crushing for Sorter Concentrate
New Tertiary Crushing for Sorter Concentrate Continuous operations optimisation as per BFS scope Key Benefits: • Allows crushed sorter concentrate to be pumped directly into the Gravity Plant • Reduced OPEX through electric equipment • Minimises handling of concentrate 19
Slide 20: Mt Carbine Phased Development Plan
Mt Carbine Phased Development Plan Includes integration of open-cut and processing facility modernisation BFS Scope Stage 1 Stage 2 Stage 3 Focus: Minimal capital expenditure, incremental Focus: Commencement of open pit mining. Focus: Underground Mining; >82% of current improvements to increase the
Slide 21: Mt Carbine Production Ramp-Up
Mt Carbine Production Ramp-Up OC Mine opening subject to permitting Concentrate Plant Processing Tonnes* 3000 – 6000T** Capacity* 6000 0.33% WO3*** 3000 XRT Sorter Upgrade Two Sorters with Early Power Upgrade Works Plant Commissioned: Single Sorter with 24/7 LGS Only crush & screen operation : Taili
Slide 22: Mt Carbine Mineral Reserves - Increase by 29%
Mt Carbine Mineral Reserves - Increase by 29% Reserve Grade Orebody Tonnes (Mt) WO3 (Mtu) Classification (%WO3) September, 2022 Key take-aways: Low Grade LGS - Proved - - 750,000 Stockpile LGS - Probable 10 0.08% • Increase in Reserves by Open Pit - +29% 263,313 MTU in a smaller - - Proved pit desig
Slide 23: Projected Pit Encompassing Additional Resource
Projected Pit Encompassing Additional Resource Note: Shown in Orange is the potential Phase 3 Pit, not incorporated in latest Reserves, requires further drilling (Western Extension) 23
Slide 24: Optimising the Revised Ore Body
Optimising the Revised Ore Body Update of BFS Economics is currently underway Infill Drilling. Phase 3 Pit is 43% undrilled. 5.4Mt block evaluating the impact of the increased Reserves. requires 12 holes to be drilled to locate additional ore Expectation is for improved economics from the new pit an
Slide 25: Brownfield Exploration Program
Brownfield Exploration Program Planned Extension Drilling • Hole 26* hit high-grade Iron Duke indicating that there may Drilling be more high-grade plunging off to the west • Target is for 1,200m exploration drilling to locate any further extensions SWF • Target is to continue to Strike Extension Dr
Slide 26: Joint Venture & Offtake Partnership with CRONIMET
Joint Venture & Offtake Partnership with CRONIMET Parties concluding mutually beneficial simplification of JV arrangement Cronimet Asia EQ Resources Cronimet Asia EQ Resources (Offtaker) (Offtaker) 100% offtake* US$3.5m offtake 2.5% royalty on JV 25,000mt offtake* US$3.5m + 2.5% royalty on JV from R
Slide 27: Strategically Aligned With Key Stakeholders
Strategically Aligned With Key Stakeholders Endorsement Through Funding & Grants Strong support for critical minerals projects in Australia Queensland METS Collaborative Projects Fund (METS Ignited) ASX Announcement 24 July 2020: Government Support for Mt Carbine Mine Waste Transformation Initiative
Slide 28: Additional Revenue Through A Circular Economy
Additional Revenue Through A Circular Economy ✓ Clean Waste Rock ✓ Green / Recycled Quarry Products ✓ Additional Revenue Stream ✓ 2021 financial year: gross revenue of $4.1 Million ✓ Successfully completed one of the largest contracts in +30-year quarry history ✓ Continued development of ‘green aggr
Slide 29: Mt Carbine Achievements
Mt Carbine Achievements Funding allocation for ‘BFS Phase 2 Expansion’; Small equity target + non-dilutive target for 20.32Mt @ 0.32% WO3 (In-Situ), further pit expansion & corporate growth with recent +85% increase of Indicated Resources; Additional 12Mt historical Low-Grade Stockpile (LGS) Consist
Slide 30: Follow us on
Site Contact: Investor Relations: Kevin MacNeill Peter Taylor Chief Executive Officer NWR Communications T: +61 438 542 260 T: +61 412 036 231 E: kmacneill@eqresources.com.au E: peter@nwrcommunications.com.au Registered Office: Mt Carbine Office: Level 4, 100 Albert Road 6888 Mulligan Highway, South