Slide 1: Nova Site Visit Presentation
INDEPENDENCE GROUP NL For personal use only Nova Site Visit Presentation 9 August 2017
Slide 2: Cautionary Statements & Disclaimer
Cautionary Statements & Disclaimer • This presentation has been prepared by Independence Group NL (“IGO”) (ABN 46 092 786 304). It should not be considered as an offer or invitation to subscribe for or purchase any securities in IGO or as an inducement to make an offer or invitation with respect to
Slide 3: IGO Operations: WA Hub
IGO Operations WA Hub For personal use only Nova established mine and infrastructure • 350km SE of Kalgoorlie and 350km from port of Esperance in WA • Located in the highly prospective Fraser Range • Readily accessible and serviceable by road and air • Sealed road access to site via Kalgoorlie or Es
Slide 4: Overview: World class, low cost magmatic Ni-Cu-Co mine
Nova Overview Flagship Operation For personal use only High grade, thick, Quality flat lying magmatic sulphide orebody Scale Average +26kt Ni, 11kt Cu & 1kt Co per annum Initial 10 year mine life Longevity with significant exploration potential Geographical On Fraser Range focus (proximal to
Slide 5: Overview: World class timetable from discovery to production
Nova Overview World class timetable from discovery to production For personal use only Discovery Construction Ni & Cu First Jul 2012 Start Offshore Shipment Jan 2015 Jun 2017 2012 2013 2014 2015 2016 2017 Nameplate Feasibility Study First Concentrate Production Jul 2014 Oct 2016 Sep 17 5 ¼ years fro
Slide 6: Leadership
Nova Leadership Strong experienced team For personal use only • All key roles filled • Team now in place and effectively transitioned from Projects to Operations Ross Jennings OHS Manager Rhona Wardman Environmental Scientist Keith Ashby Johannes Whitmore Head of Governance and Commercial Manager Ri
Slide 7: Sustainability and Safety
Nova - Sustainability and Safety Focus on health, safety, the environment and local communities For personal use only • IGO measures performance using a range Nova Lost Time Injury Frequency Rate (LTIFR)(1) of leading and lagging metrics. In general IGO’s safety performance is good, but could be bet
Slide 8: Project summary: Deposit Style and Mining
Nova Project Project summary For personal use only Deposit Style and Inventory Mining • Chonolith style magmatic Ni – Cu - Co deposit • 1.5Mtpa ore production • Interim Mineral Resource estimate of 11.4Mt grading • Dry mine with good ground conditions 2.4% Ni, 1.0% Cu and 0.08% Co(1) • Long open sto
Slide 9: Project summary: Processing and Infrastructure
Nova Project Project summary For personal use only Processing Infrastructure • 1.5Mtpa ore throughput rate (~187tph) • 38km sealed access road connected to Eyre • Conventional crushing, two stage grinding and Highway differential flotation • Sealed 2km long airstrip to handle 100-seat jets • 2.4MW S
Slide 10: FY18 Guidance
Nova FY18 Guidance Tonnage consistent across 1H and 2H grade the key driver For personal use only FY18 Guidance Metric Units 1H18 2H18 Range Nickel (metal in concentrate) t 7,500 to 9,000 15,500 to 18,000 23,000 to 27,000 Copper (metal in concentrate) t 4,000 to 4,500 6,000 to 7,500 10,000 to 12,000
Slide 11: Mining Plan FY18
Nova Mining Plan FY18 Multiple mining fronts for flexibility For personal use only Nova Bollinger Completed Q1 FY18 Q2 FY18 Q3 FY18 Q4 FY18 11
Slide 12: Ramp up program
Nova Project Ramp up program For personal use only Nameplate 12 months earlier than Feasibility Study schedule • Process plant construction was completed 4 weeks ahead of schedule October 2016 • First nickel and copper concentrates produced 6 weeks ahead of schedule in October 2016 • First nickel co
Slide 13: Mine Layout
Nova Mine Layout Shallow, thick, flat lying orebody delivers low mining costs For personal use only Development • 34 headings will be mined in August (10 in ore) • 4 development jumbos in operation • Scheduling ~1000m/month 1H18 • Nova decline approaching 1885 production level • Bollinger decline ap
Slide 14: Process Plant ramp up
Nova Project Process Plant ramp up For personal use only Conventional Crush Grind Float • Primary crushing followed by two stage grinding (SAG and ball mill) • Differential flotation • Separate Copper and Nickel concentrates Comminution and Grinding circuit performance • Nameplate throughput 187tph
Slide 15: Metallurgical commissioning and performance
Nova Project Metallurgical commissioning and performance For personal use only Smooth commissioning with no material issues • Minor issues with TETA reagent control • Some replacement of pumps and motors • High chlorides in concentrate from saline water mitigated by increased filtrate wash times • C
Slide 16: Maiden offshore shipments completed June 2017
Nova Project Maiden offshore shipments completed 26 June 2017 For personal use only Nickel and Copper shipment • No loading issues • Concentrate quality in line with contract specifications • Optimisation of concentrate quality in line with run of mine ore feed from underground • Ni concentrate is c
Slide 17: Grade control drilling
Nova Project Grade control drilling For personal use only • Excellent ground conditions = Good penetration rates : 120m/day/rig for Bollinger (better than expected) • Nova grade control at 12.5m x 12.5m ~ 96% complete (~6,500m remaining as at 31 July 2017) • Bollinger grade control at 12.5m x 12.5m
Slide 18: Grade Control: Bollinger South
Nova Project Grade Control • At Bollinger South intersected massive and brecciated sulphides outside current Mineral Resource boundaries For personal use only • 30 drill holes completed as part of a program to map the south-western extension of the Bollinger orebody • The majority of laboratory resu
Slide 19: Resource: Interim update as at June 2017
Nova Resource(1) Interim update as at 30 June 2017 For personal use only 91km of grade control drilling completed • Updated Mineral Resource estimate using revised geological interpretation and approach to resource domaining • As at 30 June 2017 Mineral Resource estimate for Nova and Bollinger is: ─
Slide 20: Mineral Resource: Completion of LOM Grade Control Drilling
Nova Mineral Resource Completion of LOM Grade Control Drilling during FY18 For personal use only Tasks Q1 FY18 Q2 FY18 Q3 FY18 Q4 FY18 Q1 FY19 Interim Mineral Resource Interim Ore Reserve UG Drilling - LOM Grade Control LOM Mineral Resource LOM Ore Reserve UG Drilling – Resource Extensional / Explor
Slide 21: Resource Update
Nova Resource Update(1) 46% of the total Mineral Resource is classified as Measured For personal use only Tonnage Grades In Situ Metal Ni Cu Co NiEq Ni Cu Co NiEq Item Class/Area Mt (%) (%) (%) (%) (kt) (kt) (kt) (kt) Nova Measured 5.20 2.63 1.10 0.08 2.69 136.9 57.1 4.3 140.0 Indicated 2.39 2.47 1.
Slide 22: Resource Update: Schematic Long Section
Nova Resource Update(1) Schematic Long Section of the Nova-Bollinger Deposits looking North For personal use only 1) For further information on Mineral Resources refer to ASX release Nova Mineral Resource Estimation and Exploration Update, dated 26 Jul 2017 22
Slide 23: Fraser Range Exploration: Deposit analogues
Fraser Range Exploration Deposit analogues For personal use only Prospective tenure proximal to Nova Project Cross sections of the host intrusion of world class deposits • Over 115km drilling completed to define Nova resource • Nova - Bollinger mineralisation within 1km zone • Discovered July 2012 •
Slide 24: Fraser Range Exploration: Mafic Ni-Cu deposits and camps
Fraser Range Exploration What do mafic Ni-Cu deposits and camps look like e.g Voisey’s Bay For personal use only Scale 1500E 3000E 4500E 6000E • Mineralisation over +6km zone 00 • Multiple lenses +5 • Nova - Bollinger mineralisation 2 Approximate Surface Sea Level currently within 1km zone 1 Ovoid •
Slide 25: Fraser Range Exploration: various phases
Fraser Range Exploration Exploration at various phases across the Fraser Range For personal use only Three key focus areas: • Fraser Range Regional ─ Consolidation of the Albany Fraser Prospective tenure ─ Application of Nova geoscientific knowledge of controls of mineralisation and finger-printing
Slide 26: Fraser Range Exploration: Consolidation of tenure
Fraser Range Exploration Consolidation of tenure For personal use only Prospective tenure proximal to Nova Project • Consolidated Fraser Range prospective tenure • Substantial exploration planned for FY18 to unlock the potential over the Fraser Range • Currently operating: ─ 3 drill rigs (outside No
Slide 27: Fraser Range Exploration: Regional drilling around Nova
Fraser Range Exploration Regional drilling around Nova For personal use only • New frontier with exploration focus only after Nova discovery in 2012 • Past exploration has been limited due to discontinuous land positions held by underfunded juniors at the bottom of commodity price cycle • Less than
Slide 28: Fraser Range Exploration: various phases
Fraser Range Exploration Exploration at various phases across the Fraser Range For personal use only Near-surface anomalies Blind targets Undercover Exploration method Surface geochemistry and Seismic and MLEM Drilling and AEM gravity IGO Work Programs • 6,500 soil samples • Lithostratigraphic study
Slide 29: Fraser Range Exploration: Mai Tai advanced MLEM conductor
Fraser Range Exploration Mai Tai advanced MLEM conductor For personal use only • A review of the Spectrem AEM survey across the Salt Creek JV in early 2017 identified the Mai Tai anomaly. • The Mai Tai AEM anomaly occurs at the northern end of the Salt Creek Complex • The anomaly appears to be relat
Slide 30: Exploration: Drilling progress on Nova Mining Lease
Nova Exploration Drilling progress on Nova Mining Lease For personal use only Surface diamond drill rig on site testing: • High ranked historic EM plates • Western mafic complex • Framework drilling on 2D seismic line testing a number of reflective positions 3D seismic • Proof of concept with 2D sei
Slide 31: Exploration: Committed to delivering growth through exploration
Exploration Committed to delivering growth through exploration For personal use only FY18 Exploration Budget Guidance A$2M Greenfields & A$4M Generative Nova A$5M Tropicana A$9M A$31M Jaguar Long Key developments and potential • Substantial increase in greenfields exploration in FY18 • Fraser Range
Slide 32: Concluding Comments
Concluding Comments Nova focus switching from construction to production For personal use only Nova milestones achieved as nameplate production approaches All operating parameters trending to LoM design rates All equipment, personnel and infrastructure in place LoM grade control to be completed Dece
Slide 33: For personal use only
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