Gbm Resources Limited · ASX:GBM
Gbm Resources — Non-Deal Roadshow (November 2012)
29 slides from Gbm Resources's roadshow presentation, Nov 26, 2012
Slide 1: Targeting World-Class IOCG Systems
Targeting World – Class IOCG Systems ASX :GBZ www.gbmr.com.au gbm
Slide 2: Disclaimer
Disclaimer This Document is Confidential and may not be reproduced, redistributed or passed on, directly or indirectly. This Document is not a Prospectus nor an Offer to Subscribe for Shares. GBM and its Directors, employees and consultants make no representations or warranty as to the accurac
Slide 3: Corporate Snapshot
Corporate Snapshot Capital Structure (ASX: GBZ) Board of Directors Ordinary shares 267 m Peter Thompson Chairman & Managing Director Listed 20 cent Options 129 m Neil Norris Exploration Director Expiring 30/06/13 Cameron Switzer Non-Executive Director Market Capitalisation @ 5c A$13m Sunny Loh Non-E
Slide 4: Milo IOCG – REE Project
MILO IOCG – REE PROJECT gbm
Slide 5: Milo Project Location
MILO PROJECT LOCATION • Queensland’s North West Mineral Province (Mt Isa Inlier) • Prolific Mineral Province • Low Sovereign Risk gbm
Slide 6: The Milo Discovery
THE MILO DISCOVERY Massive breccia outcrop at Milo Poly metallic discovery in 2010. Cu Au Ag Mo U Co. Significant Rare Earth Element mineralisation identified in 2011. Milo is a multi- element IOCG project with a Rare Earth halo. Work so far considered as “early exploration” phase with only 11,0
Slide 7: Milo Project Scoping Study
MILO PROJECT SCOPING STUDY 11 Year Mine Life 10 mtpa treatment rate 100 Mt ore mined Low Stripping Ratio (W:O, 1.3:1 ) LOM Production; • 38Kt TREEYO • 1.9Mt Phosphate • 58Kt Cu • 10Mlbs U3O8 Capex Start up-$792M LOM - $ 60M tailings -$52M sustaining - $41M closure Published 22/11/12 gb
Slide 8: Milo Scoping Study
MILO SCOPING STUDY Completed by Independent Consultant Mining One & supported by: • Geomodelling Ltd for the resource and block. • Core Resources Pty Ltd for test work and flow sheet. AIM is to demonstrate that we can mine it , treat the various ore types, what the capital required will be and w
Slide 9: Milo Project Financial KPIs
MILO PROJECT FINANCIAL KPI’s • Strong operating cashflows Long Term Project KPIs Base Case Upside Case • Product diversity providing Undiscounted Cash ($M) $701 $1,160 natural price hedge Pay back in years 4.4 2.9 • Significant upside on Operating Margin ( EBIT/ commodity prices Revenue) 33% 38% Ope
Slide 10: Milo Open Pit
MILO OPEN PIT • Large open pit • 1400 m long • 600 m wide • 320 m maximum depth • Bulk mining scale advantage • 100 Mt ore • 128Mt waste and LG • Close to established infrastructure • Skilled Mining work force and supportive communities in Cloncurry, Isa & Townsville gbm
Slide 11: Milo Metallurgy
MILO METALLURGY Initial Heavy Media Separation confirms potential to reject low grade/waste material Sulphide floatation separates Cu-Au-Ag-Mo-Co Saleable Cu concentrate produced Apatite floatation produces phosphate product Wet High Intensity Magnetic separation capture REEY’s Magnetic separa
Slide 12: Milo Mine Design
MILO MINE DESIGN General Mine Layout gbm
Slide 13: Milo Project Resource
MILO PROJECT RESOURCE • IOCG-REE Breccia Deposit • Key Commodities –rare earths, copper, uranium and phosphate. • Valuable metal mix • 108Kt TREEYO • 1.3 Mt P2O5 • 97Kt Cu • 14Mlbs U3O8 gbm
Slide 14: Milo Inferred TREEYO Resource
Milo Inferred TREEYO Resource • Broad continuous zone over 1 kilometre long • Large Resource -176Mt and expansion potential • Contains: 108,000 t TREEYO 1.3 Mt P2O5 • ‘halo’ to CuEq mineralisation • Remains open at depth and along strike 176 Mt @ 620 ppm TREEYO, 0.75%P2O5 . gbm
Slide 15: Milo Inferred TREEYO Resource
Milo Inferred TREEYO Resource • Critical REEY 24% by weight • Critical REEY 72% by value • High importance clean • Buffer against LREE prices energy industries • Forecast shortage and positive price reaction gbm
Slide 16: Rare Earths – Market
RARE EARTHS- “Market” USES SUPPLY: PRICING: • China accounts for • China has • Critical: 97% of world restricted and LED’s supply eased supply Wind power generators • Imposed export = Price volatility Electric vehicles quota 30K tonnes Increase reserves Hard disk drivers domestic demand Flat screens
Slide 17: Milo Inferred CuEq Resource
Milo Inferred CuEq Resource • Wide zones over 1 kilometre long • Contains; 97,000 t Cu 126 kozs Au 4.6 Mozs Ag 5,700 t Mo 14 Mlbs. U3O8 • Remains open at depth and along strike 88 Mt @ 0.34% CuEq, 0.11% Cu, 72 ppm U3O8. gbm
Slide 18: Milo Resource Commodities – Relative Value
Milo Resource Commodities- Relative Value • TREEYO represent around three quarters of the value of contained commodities • Copper and Uranium are the next most important commodities by relative value (The Queensland Gov’t has announced it intends to allow the recommencement of Uranium mining) gbm
Slide 19: Near Pit Potential?
MILO NEAR PIT POTENTIAL ? Strong Cu-REE-U soil geochemical anomaly Backdrop: gridded La soil geochemistry gbm
Slide 20: Milo – Resource Growth
MILO – RESOURCE GROWTH • ‘In Pit’ exploration target(*3) of 12.3 Mt and 23.0 Mt. between 300 and 900 ppm TREEYO • Depth and strike extent of Milo Deposit • High order soil geochemical targets existing resource boundary. gbm
Slide 21: Milo Next Steps and Opportunity
Milo Next Steps and Opportunity AIM: Commence Pre- feasibility study (PFS) in 2013. Challenge : Securing JV partner/s. Key areas of development include: • Metallurigical Test work- validate flowsheet and process design. • Upgrade inferred Resource to Indicated. • Geotechnical and infrastructure stud
Slide 22: Milo Project – Conclusions
MILO PROJECT - CONCLUSIONS Confirms strong commerical development opportunity. Financial Model : • Long Term Base Case operating cash flow $701M over 11 yrs LOM. • Upside Case operating cash flow $1,160M same LOM. Can mine it - favourable metallurgy. Multi-element nature price hedge. Milo
Slide 23: GBM Exploration
GBM EXPLORATION gbm
Slide 24: Eastern Australia Gold
EASTERN AUSTRALIA GOLD Mayfield • Extensions to Tick Hill (Au) & Trekelano (Cu-Au) Mines • Multiple + 0.1% Cu intersections in previous exploration Mount Morgan (Under explored region) • adjacent to Mt Morgan Mine 8M oz Au, 0.4Mt Cu • High order targets from soils and previous drill data Malmsbury •
Slide 25: Pan Pacific and Mitsui IOCG JV
Pan Pacific and Mitsui IOCG JV Partner’s Interest - Pan Pacific Copper 75% and Mitsui & Co 25%. Major global companies. ‘Copper under cover’. Big targets, require big budgets. PP Spend $15m over 6 years to earn 51%. Budget this year is $3.8 million. Spend $1.03m for each 1% increment up
Slide 26: Phosphate
PHOSPHATE GBM has acquired 100% of the phosphate rights on the ground. Beetle Creek Formation confirmed over the project area which is key host for phosphate. Road and rail transport corridor. Look to see how best it can be developed or IPO in a more favourable market . gbm
Slide 27: Value & Growth Through Discoveries
VALUE & GROWTH THROUGH DISCOVERIES Develop Milo as a mid-tier supply of REEYO with significant credits for copper , phosphate and uranium IOCG discovery on JV IOCG ground Unique position to have the global strength of Pan Pacific Copper and Mitsui & Co as JV partners Multi discovery potentia
Slide 28: Explanatory Notes
EXPLANATORY NOTES *1Copper Equivalent calculation represents the total metal value for each metal, multiplied by the conversion factor, summed and expressed in equivalent copper percentage. These results are exploration results only and no allowance is made for recovery losses that may occur should
Slide 29: End
END Diamond Drilling at night Malmsbury Gold project gbm