Blackstone Minerals Ltd · ASX:BSX
Blackstone Minerals — Investor Presentation (October 2020)
24 slides from Blackstone Minerals's investor presentation, Oct 19, 2020
Slide 1: Retraction of Blackstone Minerals Investor Presentation – Scoping Study
ASX RELEASE 19 October 2020 RETRACTION OF BLACKSTONE MINERALS INVESTOR PRESENTATION – SCOPING STUDY Blackstone Minerals Limited (ASX: BSX) or (Company) refers to the Company Presentation released to the market titled “Blackstone Minerals Investor Presentation – Scoping Study” on 16 October 2020. Fol
Slide 2: BSX Investor Presentation
BSX INVESTOR PRESENTATION ASX:BSX OCTOBER 2020 www.blackstoneminerals.com.au admin@blackstoneminerals.com.au
Slide 3: Cautionary Statement
The Scoping Study at Ta Khoa, referred to in this announcement, has been undertaken to determine the potential to restart the Ta Khoa Nickel-Cu-PGE project and develop downstream processing infrastructure in Vietnam to produce a downstream nickel and cobalt product to supply Asia’s growing lithium-i
Slide 4: Key Highlights
SCOPING STUDY – KEY HIGHLIGHTS 12.7ktpa US$3.3b US$1.2b Annual production of of gross revenue of net pre-tax nickel over an 8.5 year cashflow mine life US$665m 45% 2.5 year pre-tax NPV8 IRR payback period www.blackstoneminerals.com.au admin@blackstoneminerals.com.au Page 02
Slide 5: Scoping Study – Key Highlights
SCOPING STUDY – KEY HIGHLIGHTS NPV: Mining: Resource: Life of Mine: Free Cash Flow: US$665m 12.7ktpa 44.3Mt @ 0.52% Ni 8.5 Years US$176mpa Maiden Ban Phuc DSS indicated resource of 44.3Mt Capital Payback Period of 2.5 years; @ 0.52% Ni for 229kt Ni and Inferred Mineral Resource of 14.3Mt @ 0.35% Ni
Slide 6: Scoping Study – Project Team
SCOPING STUDY – PROJECT TEAM Contributor Role Dr Stuart Owen – Blackstone Minerals Geology Dr Dinh Huu Minh – Blackstone Minerals Scott Williamson – Blackstone Minerals Mining Steve Ennor – Blackstone Minerals Mineral Processing Ian McKenzie – Optimize Group Independent Consulting & Review BM Geolog
Slide 7: Scoping Study – Operational Outcomes
SCOPING STUDY – OPERATIONAL OUTCOMES Key Operational Outcomes 4Mtpa 6 Mtpa Base Case Ore Mined (Mt) ~31.6Mt ~44.5Mt Head Grade (%) ~0.52% ~0.47% Metallurgical Recovery (%) ~65.9% ~59.6% Strip Ratio (Waste (t): ore (t)) ~6.1:1 ~4.1:1 Mining Cost (US$/t ore) US$12.00 - 14.70 US$8.75 - 10.70 Processing
Slide 8: Milled Tonnes and Grade
SCOPING STUDY – OPERATIONAL OUTCOMES 4.5 0.70% 4 0.60% 3.5 Milled Grade (%Ni) Milled Tonnes (mt) 0.50% 3 MILLED TONNES (Mt) 2.5 0.40% 2 0.30% 1.5 0.20% 1 0.10% 0.5 0 - 1 2 3 4 5 6 7 8 9 YEAR Milled Tonnes (Indicated) Milled Tonnes (Inferred) Milled Grade (%Ni) Milled Tonnes & Grade Ore Tonnes mined
Slide 9: Scoping Study – Financial Outcomes
SCOPING STUDY – FINANCIAL OUTCOMES Key Financial Outcomes 4Mtpa 6 Mtpa Base Case Pre-Production Capital Cost (US$m) US$314 US$356 Precursor NCM Price (US$/lb NCM) US$6.96 US$6.96 C1 Cash Costs (US$/lb NCM) US$3.00 - 3.70 US$3.00 - 3.60 All-in Sustaining Costs (US$/lb NCM) US$3.40 - 4.10 US$3.30 - 4.
Slide 10: Long Term Supply & Demand Price Forecast
LONG TERM SUPPLY & DEMAND PRICE FORECAST $60,000 600,000 $55,000 $50,000 Long term forecasts point to price increase but are shy of potential price spikes $45,000 400,000 Market Balance (thousand tonnes) $40,000 Nickel Price (US$/tonne) $35,000 $30,000 200,000 $25,000 $20,000 $15,000 0 $10,000 $5,00
Slide 11: Sensitivity Analysis – Key Drivers
SCOPING STUDY – SENSITIVITY ANALYSIS – KEY DRIVERS Nickel Price (US$/lb) NPV (US$m) 6.5 7.0 7.5 8.0 8.5 9.0 9.5 6% 330 476 623 770 917 1,063 1,210 7% 297 437 576 716 855 994 1,134 Discount Rate 8% 267 400 532 665 798 930 1,063 9% 240 366 492 618 744 870 997 10% 214 334 454 575 695 815 935 www.blacks
Slide 12: Mineral Resources
MINERAL RESOURCES Indicated Resources Lower cut off Ni% Mt Ni % Cu % Co % Pd g/t Pt g/t S% Ni t Cu t Co t Pd oz Pt oz 0.3 44 0.52 0.06 0.01 0.11 0.09 0.45 230,000 27,000 5,800 160,000 130,000 0.4 33 0.57 0.07 0.01 0.12 0.1 0.5 190,000 23,000 4,200 130,000 100,000 0.5 19 0.67 0.09 0.01 0.14 0.11 0.58
Slide 13: Ta Khoa Project Location and Infrastructure
TA KHOA PROJECT LOCATION AND INFRASTRUCTURE Son La Hydropower Plant - a renewable energy source for the Ta Khoa Project www.blackstoneminerals.com.au admin@blackstoneminerals.com.au Page 11
Slide 14: Open Pit Mine Design
SCOPING STUDY – OPEN PIT MINE DESIGN Ban Phuc DSS Cross Section with Open Pit Stages 1 to 4 Ban Phuc DSS Plan View Stages 1 to 4 www.blackstoneminerals.com.au admin@blackstoneminerals.com.au Page 12
Slide 15: Upstream Processing
SCOPING STUDY – UPSTREAM PROCESSING Process plant will produce nickel concentrate 01 targeting optimum metal recoveries at the concentrator, suited to processing at the downstream process facility. Flotation circuit consists of a rougher/scavenger 02 circuit followed by a cleaner flotation circuit.
Slide 16: Downstream Processing
SCOPING STUDY – DOWNSTREAM PROCESSING Develop an integrated downstream processing facility to supply Precursor products to the emerging Lithium-ion battery market Technology associated with the production of NCM precursor from MHP is well‐tested. BENEFITS: Significantly improve payability of the pro
Slide 17: Upside Opportunities – Staged Capex and By Products
UPSIDE OPPORTUNITIES – STAGED CAPEX AND BY PRODUCTS 01 Staged Capex ▪ Immediate construction of 4-6Mtpa treatment facility to process ore mined at the large tonnage, Ban Phuc DSS orebody considered ▪ Project also features an established and well-maintained 450ktpa concentrator and multiple known hig
Slide 18: Upside Opportunities – Ta Khoa Nickel-PGE Sulfide District
UPSIDE OPPORTUNITIES – TA KHOA NICKEL – PGE (Cu-Co) SULFIDE DISTRICT District scale Nickel PGE (Cu Co) sulfide project Over 25 advanced stage massive sulfide vein (MSV) targets and a number of large bulk-tonnage disseminated sulfide (DSS) prospects Blackstone initial focus on Ban Phuc disseminated,
Slide 19: Upside Opportunities – Ban Phuc DSS – King Cobra Discovery
UPSIDE OPPORTUNITIES – BAN PHUC DSS – KING COBRA DISCOVERY Blackstone discovered the King Cobra shallow, high grade zone within the Ban Phuc DSS The King Cobra discovery provides a potential vector towards the high grade “feeder zone” Approximately one third of the Ban Phuc DSS target is open to the
Slide 20: Upside Opportunities – Ban Chang Massive Sulfide in Maiden Drill Holes
UPSIDE OPPORTUNITIES – BAN CHANG – MASSIVE SULFIDE IN MAIDEN DRILL HOLES BC20-12 8.3m @ 0.50% Ni, 0.70% Cu, 0.05% Co & 0.46 g/t PGE From 35.5m Incl. 4.8 @ 0.71% Ni, 0.81% Cu, 0.06% Co & 0.46 g/t PGE From 39m BC20-08 9.6m @ 0.84% Ni, 0.73% Cu, 0.05% Co & 0.7 g/t PGE From 57.0m BC20-10 BC20-06 14.65m
Slide 21: Upside Opportunities – Ta Cuong Ongoing Drilling
UPSIDE OPPORTUNITIES – TA CUONG – ONGOING DRILLING AT NEW NICKEL TARGET Blackstone has commenced drilling, using electromagnetic (EM) plates to test new massive sulfide vein (MSV) targets for high impact drilling over the coming months Ta Cuong is the second high priority MSV prospect within a portf
Slide 22: Next Steps & Timeline Anticipated Newsflow
NEXT STEPS & TIMELINE ANTICIPATED NEWSFLOW Blackstone’s ongoing aggressive exploration program and development of the Ta Khoa Nickel PGE (Cu Co) Sulfide Project next steps include: Blackstone delivered a maiden resource, focused initially on the Nickel PGE 01 (Cu Co) disseminated sulfide (DSS) at Ba
Slide 23: Competent Person Statement
The information in this report that relates to Exploration Results and Exploration Targets is based on information compiled by Mr Andrew Radonjic, a Non-Executive Director and Technical Consultant of the company, who is a Member of The Australasian Institute of Mining and Metallurgy. Mr Andrew Radon
Slide 24: Thank You
THANK YOU Suite 3, Level 3, 24 Outram Street, West Perth, WA, 6005 T: +61 8 9425 5217 | F: +61 8 6500 9982 E: admin@blackstoneminerals.com.au | www.blackstoneminerals.com.au
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