Diatreme Resources Limited · ASX:DRX
Diatreme Resources — Noosa Mining Virtual Conference 2020
33 slides from Diatreme Resources's conference presentation, Jul 16, 2020
Slide 1: Time to shine
ASX:DRX For personal use only Time to shine. Advanced, high grade, low-cost silica project located adjacent to the world’s largest silica sand mine. Noosa Mining Virtual Conference 17 July 2020
Slide 2: Disclaimer
Diatreme Resources Disclaimer For personal use only This presentation contains certain forward-looking statements and forecasts which include Additional Information ASX:DRX without limitation, expectations regarding future performance, exploration, mineral resources, the financial position of Diatre
Slide 3: Our vision: producer of high-quality silica and mineral sands
Diatreme Resources Diatreme Resources For personal use only ASX:DRX Our vision is to become a producer of high-quality silica and mineral sands for use in growing global solar PV and ceramics markets. • Galalar is a high-grade silica sands project near production in close proximity to the world’s la
Slide 4: Corporate overview
Diatreme Resources Corporate overview For personal use only Ilwella P/L (Flannery) 14.8% ASX:DRX Directors & Share price Market capitalisation Management A$0.010 10 July 2020 close A$18.5m 8.9% 52 week high $0.015, low $0.008 Shares on issue Cash 1,855m A$1.33m As at 10 July 2020 Performance rights
Slide 5: World class projects
Diatreme Resources World class projects For personal use only ASX:DRX Galalar Silica Project Cyclone Zircon Project Total Mineral Resource* Total Mineral Resource* 47.5Mt @ 99% silica oxide 203Mt @ 2.3% HM One of the world’s purest silica sands projects Shovel ready-project • Production target 2022
Slide 6: Galalar Silica Sands Project
For personal use only GALALAR SILICA SANDS PROJECT
Slide 7: Premium quality silica
Diatreme Resources Galalar Silica Project Premium quality silica For personal use only • Project located 20km north of Cooktown, FNQ adjacent to world’s ASX:DRX largest silica sand mine at Cape Flattery (Mitsubishi-owned) operating 30 years plus • Diatreme holds huge dominant position in known silic
Slide 8: Scoping study snapshot
Diatreme Resources Galalar Silica Project Scoping study snapshot For personal use only ASX:DRX Annual ore feed Annual production Silica price Annual gross revenue Gross revenue 950,000tpa 750,000tpa US$75/t* A$80m x 15 years A$1.2b Project life *The price assumption is for a ‘low iron’ silica sand p
Slide 9: Near-term production
Diatreme Resources Galalar Silica Project Near-term production For personal use only ASX:DRX 2020 2021 2022 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Prepare & submit draft EIS (develop and consult on draft terms of reference (DToR), undertake various Finalise DToR technical & economic studies) Final public consul
Slide 10: Multiple exploration targets
Diatreme Resources Galalar Silica Project Multiple exploration targets For personal use only ASX:DRX • Regional potential > 1 billion tonnes. • Regional exploration program has identified potential resource extensions at Elim Road North and Elim Road South, with high SiO2 results > 99% • Potential h
Slide 11: High quality silica product
Diatreme Resources Galalar Silica Project High quality silica product For personal use only ASX:DRX • The sand from the Galalar project is some of the world’s purest • Solar panel manufacturers’ feed stock requires >99% purity silica with “low iron” less than 100ppm iron oxide levels • Bulk sample t
Slide 12: Offtake MOU agreements in place
Diatreme Resources Galalar Silica Project Offtake MOU agreements in place For personal use only ASX:DRX • Diatreme has secured an MOU off-take agreement with the Fengsha Group, China’s largest processor and supplier to solar photovoltaic panels manufacturers and specialty high end silica sand relate
Slide 13: Fengsha facilities, China
Diatreme Resources Galalar Silica Project Fengsha facilities, China For personal use only ASX:DRX Slide | 13 Chemical pickling vats Mineral Separation Plant Thin Film Transistor line
Slide 14: Strong stakeholder support
Diatreme Resources Galalar Silica Project Strong stakeholder support For personal use only ASX:DRX • Project being developed with support of traditional owners, Hope Vale Congress Aboriginal Corporation (12.5% direct “free carry” stake), the RNTBC representative body • Traditional owners hold freeho
Slide 15: Expanding mineral resource
Diatreme Resources Galalar Silica Project Expanding mineral resource For personal use only ASX:DRX • Scoping Study production target derived from 2018 JORC • Significant JORC Exploration Target highlights potential to Resource expand resource • Planned drilling in 2020 to expand and upgrade the size
Slide 16: Simple processing system
Diatreme Resources Galalar Silica Project Simple processing system For personal use only ASX:DRX • Amenable to low capex & opex • No caustic chemicals or dust Front end loader Hopper conveyor Trommel Spiral separator Slide | 16 Hydrocyclone Wet high-intensity Classifiers Attrition scrubber product s
Slide 17: Export option: Cooktown
Diatreme Resources Galalar Silica Project Export option Scoping Study: Cooktown For personal use only ASX:DRX • Nine trucks operating 12 hours per day via existing road network from mine site to Cooktown (60km). 50 tonnes per truck, 42 loads daily, 360 days per year • Stockpile up to 25,000 tonnes a
Slide 18: Export option 2: Nob Point
Diatreme Resources Galalar Silica Project Export option 2: Nob Point For personal use only Optimised transport solution ASX:DRX • Construction of new 3.6km road from mine site to purpose-built barge ramp at Nob Point (subject to Qld Govt approvals), saving significant trucking opex costs • Reduces t
Slide 19: Silica market: growing global demand
Diatreme Resources Silica market Growing global demand For personal use only ASX:DRX • Silica sand has many uses, the market is experiencing increasing demand from emerging consumers such as China TRENDS 2009 - 2022 and India from foundry, automotive and construction industries including the solar P
Slide 20: Silica market: solar market consuming more sand
Diatreme Resources Silica market Solar market consuming more sand For personal use only for panel manufacturing ASX:DRX • Solar panel PV market forecast to reach US$48.2 billion by 2025, with a CAGR of 34.7%* • World Bank estimates global renewable capacity will grow by over 1TW from 2018 to 2023, u
Slide 21: A compelling opportunity
Diatreme Resources Diatreme Resources A compelling Annual gross revenue For personal use only opportunity A$80m ASX:DRX Annual operating costs A$42m Annual silica Annual consumption 250Mt DRX silica Annual operating margin production A$37m 0.75Mt x 15 years Project life Total net revenue A$555m Slid
Slide 22: Resource statement
Diatreme Resources Resource statement For personal use only Galalar Silica Project ASX:DRX Slide | 22 Note: Refer ASX release dated 11 May 2020 - “Galalar Silica resource expands 25% to 47.5Mt”. Diatreme confirms this resource statement as current, with no material change as at the time of this pres
Slide 23: Appendix
For personal use only APPENDIX
Slide 24: Cyclone Zircon Project
For personal use only CYCLONE ZIRCON PROJECT
Slide 25: Cyclone Zircon Project: ready for development
Diatreme Resources Cyclone Zircon Project Ready for development For personal use only ASX:DRX • Corporate advisers appointed to support progression of the project and ensure maximum shareholder benefit received • JORC Resource: 203Mt @ 2.3% HM (1% HM cut-off grade), containing 4.7Mt HM & 1,262 Kt zi
Slide 26: Zircon market
Diatreme Resources Zircon market Valuable heavy mineral For personal use only ASX:DRX • Most valuable heavy mineral, with current prices US$1,487/t (2018: US$1,351/t)* • Global zircon production in 2018 approx. 1.2Mt • Zircon primarily used to produce ceramic tiles, as well as other applications inc
Slide 27: Titanium market
Diatreme Resources Titanium market Growing global demand For personal use only ASX:DRX • Around 7.4m tpa global market (2018)* • Rutile price averaged US$1,142/t in 2019 (2018: US$952/t)* • Used primarily in pigments • Demand increasing due to higher environmental standards in China and technologica
Slide 28: Low-cost transportation
Diatreme Resources Cyclone Zircon Project Low-cost transportation For personal use only ASX:DRX • HMC loaded into containers at Cyclone. 33 tonnes per container • 240 kilometre truck transport by road from Cyclone to Forrest rail siding in 100 tonne loads • 1,100 kilometre rail transport from Forres
Slide 29: Easy mining process
Diatreme Resources Cyclone Zircon Project Easy mining process For personal use only ASX:DRX Project Development Options: Mining & Logistics • Mineral Separation Plant in Australia – final products from Strip Ratio 1:1 Australia Mining Rate (Dry) 1,300 tonnes per hour – 2 x Dozer traps • Mineral Sepa
Slide 30: Project fundamentals
Diatreme Resources Cyclone Zircon Project Project fundamentals For personal use only ASX:DRX • All primary project approvals in place: Mining Lease, traditional owner agreements, environmental approvals • Sufficient reserves to support a long mine life: - Currently 14 years at 10Mt pa - Strand miner
Slide 31: Resource statement
Diatreme Resources Resource statement For personal use only Cyclone Zircon Project ASX:DRX Notes: • Refer to ASX release 15 June 2016 “Cyclone Study Reaffirms Project Profitability” for more detail • Rounding may generate differences in last decimal place • A constant SG of 1.7 has been used to deri
Slide 32: Competent person's statement
Diatreme Resources Competent person’s statement For personal use only ASX:DRX Statement in accordance with the Australasian code for reporting of exploration The information in this report, insofar as it relates to Mineral Resources at the Cyclone results, mineral resources and ore reserves (the JOR
Slide 33: Diatreme contact details
For personal use only DIATREME CONTACT DETAILS Neil McIntyre, Chief Executive 07 33972222 or 0468 370 660 neil.mcintyre@diatreme.com.au Phil McMurtrie – Project Manager 07 33972222 or 0417715228 phil.mcmurtrie@diatreme.com.au Unit 8, 61 Holdsworth Street Coorparoo QLD 4151
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