Mkango Resources Ltd. · TSXV:MKA
Mkango Resources — Investor Presentation (October 2013)
24 slides from Mkango Resources's investor presentation, October 2013
Slide 1: Mkango Resources – Songwe Hill Rare Earth Project
MKANGO RESOURCES Songwe Hill Rare Earth Project TSX-V: MKA RARE EARTHS EXPLORATION FUTURE INNOVATION October 2013
Slide 2: Disclaimer
This presentation (the “Presentation”) has been prepared by Mkango Resources Limited (the “Company” or “Mkango”) solely for its use at informational meetings relating to it or is being delivered for information purposes only to a limited number of persons. By attending the meeting where this Present
Slide 3: Forward-looking statements
Certain disclosures contained in or incorporated by reference into this presentation constitute forward-looking statements or forward-looking information. Any statements contained herein that are not statements of historical facts may be deemed to be forward-looking statements or forward-looking inf
Slide 4: Investment Highlights
Investment Highlights ADVANCED STAGE PROJECT - Pre-feasibility study underway NI 43-101 RESOURCE - Substantial Indicated and Inferred rare earth resource defined BASE CASE FLOW SHEET - Testwork to date has produced two high grade products EXPERIENCED MANAGEMENT - strong team to deliver pre-f
Slide 5: Capital Structure
Capital Structure Share Price: $0.115 Shares Outstanding: 50.5M Warrants: 7.2M @ $0.35 (exp. 04/14)* Directors & Options 5.1M Management Fully Diluted: 62.8M** Market Cap: ~$5.8M Leominex • Haywood Securities (Private) • Institutions & Private Investors 34% Mkango • Genesis Emerging Markets Resource
Slide 6: Pathway to Production
Pathway to Production • January 2010 – Songwe Hill licence awarded • January 2011 – MKA listed on TSX-V, raising C$7.8m ($0.50) • July 2011 – Phase 1 drill program complete (2,000m) EXPLORATION • May 2012 – Phase 2 drilling complete (4,850m) • October 2012– Maiden resource announcement – In-situ Ind
Slide 7: Directors & Management
Directors & Management Executive Directors Mr William Dawes, Chief Executive Officer - 12 years Exploration and Business Development, 9 years Mining Finance; prior experience with Rio Tinto exploration & JPMorgan mining team - Bristol University (BSc Geology), Royal School of Mines (MSc Mineral Expl
Slide 8: Technical & Project Management Expertise
Technical & Project Management Expertise • Aoife Brady, PhD - Principal Geologist & Mineralogist (UK/Malawi) • Burton Kachinjika - Country manager (Malawi) Project • James Mtegha - Senior Exploration geologist (Malawi) Management • Ansel Zabula - Senior Exploration geologist (Malawi) • Effie Likaku
Slide 9: Malawi - a major, world class, undeveloped rare earth mineral province
Malawi - a major, world class, undeveloped rare earth mineral province Region hosts known REE carbonatite deposits – drilled by JICA / MMAJ in late 80s – also ion adsorption clays Songwe is now the most advanced stage project – catalyst for regional REE CHILWA ALKALINE development PROVINCE (CAP)
Slide 10: Songwe Hill - 2 hours' drive from international airport
Songwe Hill - 2 hours’ drive from international airport 10
Slide 11: In-situ Mineral Resource Estimate - Songwe Hill Project
In-situ Mineral Resource Estimate - Songwe Hill Project 2012 Resource Estimate 1.0% TREO cut off grade 1.5% TREO cut off grade Tonnes TREO (%) TREO Tonnes TREO (%) TREO (million) (tonnes) (million) (tonnes) Indicated 13.16 1.62 213,098 6.15 2.05 126,065 Inferred 18.59 1.38 256,149 5.06 1.83 92,412 T
Slide 12: Potentially open pittable with favourable topography
Potentially open pittable with favourable topography 12
Slide 13: Songwe Hill Rare Earth Project
Cartwright Drilling rig Songwe Hill Rare Earth Project Songwe exploration camp ESTABLISHED EXPLORATION CAMP MULTI SEASON WORK PROGRAM 13
Slide 14: Significant resource upside - open laterally and to depth
Significant resource upside - open laterally and to depth Current mine planning for base case operation focused on Indicated resource Inferred resource and additional upside could potentially support a significantly higher production rate Not a laterite – extends to at least 350m below surface
Slide 15: Rare Earths – Future Demand
Rare Earths – Future Demand Neodymium*; Dysprosium*; Praseodymium Permanent magnets Europium*; Terbium*; Yttrium* Phosphors * Critical Rare Earths – supply risk versus importance to clean energy CONSUMER ELECTRONICS – CLEAN ENERGY Computer drives, mobile phones, mp3 players, cameras, wind turbines,
Slide 16: Balanced distribution of REEs, geared to higher value magnet and phosphor sectors
Balanced distribution of REEs, geared to higher value magnet and phosphor sectors Songwe Hill - Rare Earth Distribution Songwe Hill - Distribution by in-situ value Rare earths used in the magnet and phosphor sectors - Based on Indicated carbonatite resource at 1.0% TREO cut-off grade: 11.1mt grading
Slide 17: Processing: alternative high grade mixed rare earth products
Processing: alternative high grade mixed rare earth products 1. Cerium depleted, heavy rare earth enriched mixed rare earth hydroxide product (55% TREO, 18% HREO/TREO) Mixed rare earth hydroxide 2. High grade mixed rare earth carbonate product (59% TREO1, 7% HREO2/TREO) 1 TREO – total rare earth oxi
Slide 18: Mineralogy is the key driver of economics for a REE project
Mineralogy is the key driver of economics for a REE project Favourable mineralogy - synchysite and apatite that is anomalously enriched in heavy rare earths Good leach recoveries - overall rare earth recoveries are greater than 80% with recovery of critical rare earths (CREO)1 to the leach solut
Slide 19: Mkango Resources
Mkango Resources Pre-feasibility study well advanced Significant 43-101 compliant resource in place with large Indicated component Non-refractory and well understood mineralogy – flow sheet and capex benefits versus other projects Spearheading development of a world class rare earth mineral
Slide 20: Contact Details
Contact Details William Dawes Alexander Lemon Ashlee Utterback Chief Executive President Corporate Communications will@mkango.ca alex@mkango.ca ashlee@mkango.ca Mkango Resources Ltd Calgary Office Malawi Office www.mkango.ca 259 Windermere Road SW Plot No. BW536, Sunnyside Twitter: @MkangoResources
Slide 21: In-situ Mineral Resource Estimates
In-situ Mineral Resource Estimates 21
Slide 22: In-situ Mineral Resource estimates at 1.0% TREO cut-off grade
In-situ Mineral Resource estimates at 1.0% TREO cut–off grade1 In-situ Indicated Mineral Resource at 1% TREO Cut-Off Indicated Million La2O3 Ce2O3 Pr2O3 Nd2O3 Sm2O3 LREO Eu2O3 Gd2O3 Tb2O3 Dy2O3 Ho2O3 Er2O3 Tm2O3 Yb2O3 Lu2O3 Y2O3 HREO TREO TREO Th U Tonnes ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm
Slide 23: In-situ Mineral Resource estimates at different cut-off grades
In-situ Mineral Resource estimates at different cut–off grades1 In-situ Indicated Carbonatite Mineral Resource Cut-Off Million La2O3 Ce2O3 Pr2O3 Nd2O3 Sm2O3 LREO Eu2O3 Gd2O3 Tb2O3 Dy2O3 Ho2O3 Er2O3 Tm2O3 Yb2O3 Lu2O3 Y2O3 HREO TREO TREO Th U %TREO Tonnes ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm pp
Slide 24: REO distribution at different cut-off grades
REO distribution at different cut-off grades1 In-situ Indicated Carbonatite Mineral Resource - REO Distributions at 0.5%, 1.0% and 1.5% TREO Cut-Offs Cut-Off La2O3 Ce2O3 Pr2O3 Nd2O3 Sm2O3 Eu2O3 Gd2O3 Tb2O3 Dy2O3 Ho2O3 Er2O3 Tm2O3 Yb2O3 Lu2O3 Y2O3 Total HREO %TREO % % % % % % % % % % % % % % % % % 0.
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