Eq Resources Limited · ASX:EQR
Eq Resources — Speciality Metals International — Shareholder Meeting (November 2018)
39 slides from Eq Resources's shareholder meeting presentation, Nov 29, 2018
Slide 1: Annual General Meeting
ASX Code: SEI Annual General Meeting 29 November 2018
Slide 2: Disclaimer
2018 ANNUAL GENERAL MEETING DISCLAIMER Forward Looking Statements Some statements in this presentation relate to the future and are forward looking statements. Such statements may include, but are not limited to, statements with regard to intention, capacity, future production and grades, projection
Slide 3: Agenda
AGENDA 1. Chairman’s Welcome 2. Housekeeping 3. Notice of Meeting to be Taken as Read 4. Minutes of 2017 AGM 5. Resolutions 6. Executive Chairman’s Report 7. Other Business 8. Meeting Close Slide 2
Slide 4: Chairman's Introduction
CHAIRMAN’S INTRODUCTION BOARD OF DIRECTORS Russell Krause Rolly Nice Stephen Layton Executive Chairman Non-executive Director Non-executive Director Capital Structure Top 5 Shareholders ASX Code SEI Dr Leon Eugene Pretorius 6.43% Share Price (52 Week High/Low) $0.042 - $0.010 Covenant Holdings (WA)
Slide 5: Diversified Exploration Portfolio
DIVERSIFIED EXPLORATION PORTFOLIO ❖ World-Class Tungsten Assets - Mt Carbine, Queensland • Sublease ML 4867 & ML 4919 • EPM 14872 – Iron Duke & Petersens Lode • EPM 14871 – Mt Holmes ❖ Gold Exploration Licences, New South Wales • EL 6648 – Crow Mountain • EL 8024 – Panama Hat ❖ Exploration Concessio
Slide 6: Tungsten
TUNGSTEN INDUSTRIAL ENABLING METAL WITH STRATEGIC IMPORTANCE Aeronautical & Automobile Manufacturing With a density of 19.25 g/cm3, tungsten is also among the heaviest metals. Rail & Heavy Earthmoving Highest melting point of all metals at 3,422 ± 15 oC and a boiling point which corresponds approx.
Slide 7: Tungsten Market
TUNGSTEN MARKET The tungsten APT (Ammonium Paratungstate) price reached a high of US$354 (per 10kg MTU) in June 2018 and has since returned to a respectable level of US$290 - US$295 since September 2018. Average European APT Price - November 2017 to October 2018 $400 $350 $354 $347 $334 $336 $330 $3
Slide 8: Mt Carbine Mine - Overview
MT CARBINE MINE - OVERVIEW LOCATION Located 130km by sealed highway from Cairns in Far Nth Qld, Australia. Mt Carbine Mining Leases cover ~367 hectares. Slide 7
Slide 9: Mt Carbine Acquisition Update
MT CARBINE ACQUISITION UPDATE MT CARBINE QUARRY & MINING LEASES • Agreement in place with Mt Carbine Quarries Pty Ltd for the purchase of the Mt Carbine Quarry, as a going concern including all plant and equipment, along with the surrounding Mining Leases, ML 4919 and ML 4867. • Financing negotiatio
Slide 10: Staged Development Approach
STAGED DEVELOPMENT APPROACH Conclude Commence Open-Pit & Purchase of Operate Quarry Processing Underground Quarry & MLs Stockpiled Material Mining Re-commission Tailings Retreatment Plant Develop Exploration Program – Open Pit & Iron Duke / Petersen’s Lode Slide 9
Slide 11: Staged Development Approach: Mt Carbine Quarry
STAGED DEVELOPMENT APPROACH MT CARBINE QUARRY Conclude Purchase Operate Quarry of Quarry & MLs • Fully permitted, established business in operation for over 20 years within the Mt Carbine Mining Leases. • All plant and equipment in place. Will continue to be operated as a going-concern. • Provides s
Slide 12: Staged Development Approach: Mt Carbine Quarry
STAGED DEVELOPMENT APPROACH MT CARBINE QUARRY • Largest and most northern hard rock quarry with an extensive range of: * Road Base * Crushed Rock * Crushed Fill * Concrete Aggregate * Erosion Control Rock * Drainage Rock * Gabion * Precoat Aggregate * Mattress * Crusher Dust * Ballast * Clean Sorted
Slide 13: Staged Development Approach: Tailings Retreatment Plant
STAGED DEVELOPMENT APPROACH Tailings Retreatment Plant MT CARBINE MINING LEASES CONTAIN THE FOLLOWING WORLD-CLASS TUNGSTEN RESOURCES: Low Grade Stockpile Mining Leases cover ~ 367 hectares 2012 JORC Compliant Resource Resource Summary - July 2014 (No Change from 2014) Tungsten Resource as WO3 Cut-of
Slide 14: Stockpiled Material
STAGED DEVELOPMENT APPROACH STOCKPILED MATERIAL • Permitted - Environmental Authority EPML00956913 issued August 2013. • Covers existing tungsten stockpiles [~12 million tonnes of at-surface stockpiled material]. • Commercial resource with a mine life potential of ~8 years @ 1.5 MTPA. • X-Ray Ore So
Slide 15: Stockpiled Material
STAGED DEVELOPMENT APPROACH STOCKPILED MATERIAL • 80 sample sites taken for mineral characterization in 2012, with in-house assay results. • The weighted average of the three size fractions of the bulk sample is 0.075% WO3 by fused disk XRF. The average grade of the 80 subsamples taken for environme
Slide 16: Tailings Retreatment Plant
STAGED DEVELOPMENT APPROACH TAILINGS RETREATMENT PLANT Commence Conclude Purchase Quarry Operations Processing of Quarry & MLs Stockpiled Material Tungsten Recovery • Permitted – covered by same EA as that for the Stockpiled Material. Re-commission Tailings Retreatment • Previously produced ~142 ton
Slide 17: Open Pit & Underground Mining
STAGED DEVELOPMENT APPROACH OPEN PIT & UNDERGROUND MINING Conclude Commence Open-Pit & Purchase of Quarry Operations Processing Underground Quarry & MLs Stockpiled Material Mining • Mining Leases in place – Permitting and Plan of Operations required before commencement of mining. • 440mRL and 415mRL
Slide 18: Open Pit
STAGED DEVELOPMENT APPROACH OPEN PIT ML 4867,4919 Perspective view of WO3% model blocks looking west, incorporating the South Wall Fault and the Mt Carbine pit, Mt Carbine. Slide 17
Slide 19: Open Pit
STAGED DEVELOPMENT APPROACH OPEN PIT ML 4867,4919 Perspective view of WO3% model blocks looking NNW, Mt Carbine. Schematic plan of present pit and location of Iron Duke prospect (blue oblong outline). Slide 18
Slide 20: Open Pit Extension
STAGED DEVELOPMENT APPROACH OPEN PIT EXTENSION MINING SEQUENCE – OPEN PIT RUBY ZONE BENCHES Advantages of this approach:- • Existing excavated areas show broken ore on surface containing wolframite and visible cross-striking veins within exposed faces; • Utilises existing 440mRL and 415mRL ramps; •
Slide 21: Exploration Upside - Tungsten Exploration Permits
STAGED DEVELOPMENT APPROACH EXPLORATION UPSIDE - TUNGSTEN EXPLORATION PERMITS TwoMining prospects, Leases Iron Duke ML 4867 & ML 4919 and Petersens Lode, exist within EPM 14871 and 14872 and in the case of Iron Duke, the Mining EPM 14872 Leases. IRON DUKE & These prospects are PETERSENS dominated by
Slide 22: Exploration Upside - Iron Duke EPM 14872
STAGED DEVELOPMENT APPROACH EXPLORATION UPSIDE - IRON DUKE EPM 14872 • Present resource estimate does not include any Iron Duke mineralisation. Lies within the planned open-cut envelope. Present mapped • Average true width 8m from 6 drill holes Low grade extent of Iron with an average weighted grade
Slide 23: Exploration Upside - Petersens Lode EPM 14872
STAGED DEVELOPMENT APPROACH EXPLORATION UPSIDE - PETERSENS LODE EPM 14872 • Lies within EPM 14872 and is ~1-2km south-east of Mt Carbine. • Sub-vertical zone of scheelite mineralisation hosted by sheared and altered metasediments traced for 1.3 km along the strike. • More detailed exploration is pla
Slide 24: Gold Exploration Licences
GOLD EXPLORATION LICENCES GOLD The following gold exploration licences are held in New South Wales: • Exploration Licence 6648 – Crow Mt. • Exploration Licence 8024 – Panama Hat Above map shows maximum gold values obtained by rock chip or mineralised rocks by previous explorers on EL 8024. Location
Slide 25: Gold Exploration Licences - EL 8024 Panama Hat
GOLD EXPLORATION LICENCES EL 8024 - PANAMA HAT • About 30km south east of Broken Hill covering ~80% of the historical gold workings in the Broken Hill district. • Workings mostly date from 1931-1935 and occur along an arcuate line of quartz veining with associated iron oxides. • Previous exploration
Slide 26: Gold Exploration Licences - EL 8024 Panama Hat
GOLD EXPLORATION LICENCES EL 8024 - PANAMA HAT • Mapping and surface sampling of old workings carried out during April 2017. • Confirmed consistency of high grade gold assays ranging up to 84.4 g/t Au obtained in previous sampling and the significant potential for shallow, oxide gold mineralisation
Slide 27: Gold Exploration Licences - EL 6648 Crow Mt.
GOLD EXPLORATION LICENCES EL 6648 - CROW MT. • Approximately 20km south east of Barraba in northern NSW. Straddles part of the Peel Fault, a mega structure that geologically separates the New England Province from the Tamworth Trough to the west. • Contains numerous historical shallow gold workings
Slide 28: Gold Exploration Licences - EL 6648 Crow Mt.
GOLD EXPLORATION LICENCES EL 6648 - CROW MT. • Highly anomalous gold was intersected in each hole, with the best gold grades being found in metasediments in ICK002 (14m at 1.00g/t from 137m, including 2m at 3.69g/t from 139m), and in the altered dykes in ICK001 (8m Magnesite Hill Gold Prospect – at
Slide 29: Gold Exploration Licences - EL 6648 Crow Mt.
GOLD EXPLORATION LICENCES EL 6648 - CROW MT. ⚫ The three holes penetrated the Peel Fault, marked by a mix of black carbonaceous gouge or ground-up rock and altered igneous dikes intruding the fault. ⚫ Recent data review and re-sampling seems to indicate most of the gold is in the gouge. ⚫ In hole IC
Slide 30: Chilean Exploration Licences - Lithium
CHILEAN EXPLORATION LICENCES LITHIUM (SYMBOL LI) Ablemabel Li Plant, Antofagasta • Previous main application in glass manufacture ~$200/t lithium carbonate or direct shipping ore (>4.5% Li). • Major growth potential in lithium batteries: price spike to $20,000 per tonne. • The current upsurge in lit
Slide 31: Chilean Exploration Licences
CHILEAN EXPLORATION LICENCES Slide 30
Slide 32: Chilean Exploration Licences
CHILEAN EXPLORATION LICENCES CHILE Exploration has been carried out in several salars for resources contained within subsurface brines that may include lithium, potassium, iodine, boron, magnesium and other valuable minerals. The Company’s wholly owned Chilean subsidiary, Special Metals Chile SpA, h
Slide 33: Chilean Exploration Licences - Exploration Strategy
CHILEAN EXPLORATION LICENCES EXPLORATION STRATEGY • Speciality Metals is focused not only on lithium but also other valuable minerals such as boron, potassium, iodine and magnesium and has concentrated its efforts in salars:- ❖ Located in the central belt of Northern Chile; ❖ That are geologically o
Slide 34: Analyses of Salt Crust Samples, Salars de Miraje and Bellavista
CHILEAN EXPLORATION LICENCES ANALYSES OF SALT CRUST SAMPLES, SALARS DE MIRAJE AND BELLAVISTA Element Li Mg K Na B Ca S As Sb Mo Cu Zn Pb Ag Fe P Mn Al Measure ppm % % % ppm % % ppm ppm ppm ppm ppm ppm ppm % ppm ppm % Salar de Miraje L16 90 0.39 0.18 0.22 110 9.69 8.33 46 0.79 1.9 22 30 8 0.02 2.15 4
Slide 35: Outstanding High Surface Mineral Values
CHILEAN EXPLORATION LICENCES OUTSTANDING HIGH SURFACE MINERAL VALUES In addition, Speciality Metals announced on 11 April 2018 that its latest sampling program obtained some outstanding results within its exploration concessions over parts of Salar de Pintados and Salar de Bellavista, in the Atacama
Slide 36: Outstanding High Surface Mineral Values
CHILEAN EXPLORATION LICENCES OUTSTANDING HIGH SURFACE MINERAL VALUES • Sampling was focused on surface saline crusts showing strong evidence of evaporation of subsurface brines to the surface. • In particular, a main anomalous population ranging from 400ppm to 2,360ppm lithium was obtained from samp
Slide 37: Outstanding High Surface Mineral Values - Table 1
CHILEAN EXPLORATION LICENCES OUTSTANDING HIGH SURFACE MINERAL VALUES Table 1. Lithium, Boron, Potassium and Magnesium analyses of all samples taken in Salars de Bellavista and Pintados concessions held by Speciality Metals. Salar Bellavista Li ppm B ppm K% Mg % N (m) E (m) L237 172 130 0.5 0.7 77136
Slide 38: Outstanding High Surface Mineral Values
CHILEAN EXPLORATION LICENCES OUTSTANDING HIGH SURFACE MINERAL VALUES • At the same time the sampling has obtained some highly anomalous boron values ranging up to 7,000ppm boron. Analysis of the sample data indicates that the boron values are not related to lithium, that is, the boron values may ind
Slide 39: 2018-2019 Outlook
2018 – 2019 OUTLOOK • Conclude financing of Mt Carbine Quarry & MLs and recommence production. • Resource market conditions appear to have settled at sustainable levels. • Improve shareholder value through the exploration and development of the Company’s current portfolio (tungsten, gold & lithium).
Speciality Metals International — Shareholder Meeting (November 2018) on 6ix