Ionic Rare Earths Limited · ASX:IXR
Ionic Rare Earths — RIU Sydney Resources Roundup (May 2021)
29 slides from Ionic Rare Earths's conference presentation, May 4, 2021
Slide 1: Makuutu Rare Earths Project Scoping Study
For personal use only Makuutu Rare Earths Project Scoping Study Demonstrates Potential to develop a Sustainable, Long-Life, CREO/HREO Supply 4 May 2021
Slide 2: Important Notice and Disclaimer
Important Notice and Disclaimer Forward Looking Statements Competent Persons Statement For personal use only This presentation has been prepared by Ionic Rare Earths Limited. This document contains background Information in this announcement that relates to previously reported Exploration Targets an
Slide 3: Important Notice and Disclaimer – Cautionary Statement
Important Notice and Disclaimer Cautionary Statement – Scoping Study Parameters For personal use only This Scoping Study has been undertaken to determine the potential viability of an open pit and heap leach process by IonicRE, are inherently subject to significant technical, business, economic, com
Slide 4: Robust Scoping Study Outputs
Robust Scoping Study Outputs Base Case lays foundation, Extension of Life Potential Remains For personal use only • Scoping Study confirms robust Base Case 11-year CREO and HREO production potential and BASE CASE Strategic importance of Makuutu (51% IonicRE ownership) 11 Years, 69% Indicated Resourc
Slide 5: Ionic Rare Earths Limited Corporate Snapshot
Ionic Rare Earths Limited Corporate Snapshot CAPITAL STRUCTURE (as @ 30/04/2021) For personal use only Shares Outstanding 3,196,399,514 Ionic Rare Earths Share Price (ASX: IXR) $0.070 381,000,000 Total Options Outstanding (exercisable at 0.75 to 6.0 cents) $0.060 Share Price A$0.038 $0.050 Market Ca
Slide 6: Million tonne IAC Mineral Resource Estimate
315 Million tonne IAC Mineral Resource Estimate 11 year Base Case supported by 66Mt Indicated Resource For personal use only • 279 drill holes (4,754 metres) completed between October 2019 and October 2020 defining JORC MRE • Updated MRE of 315 Mt @ 650 ppm Total Rare Earths Oxide (TREO)1, at a cut-
Slide 7: Mine Plan – Base Case
Mine Plan – Base Case 11 Year scenario that covers cost of Project Development For personal use only • Mine Plan developed with prioritisation of Indicated resource over Inferred resource • 11 year Base Case Production Target of 84.5 Mt @ 810 ppm TREO consists of 69% Indicated Resource and 31% Infer
Slide 8: Ramp Up Profile – Base Case
Makuutu Ramp Up Profile – Base Case Modular Expansion ramping up production capacity For personal use only • Module 1 developed to mine 10 Mtpa total material movement and process 2.5 Mtpa via heap leach / desorption capacity, with 2,250 tpa precipitation circuit for mixed rare earth carbonate (MREC
Slide 9: CAPEX Profile – Base Case
Makuutu CAPEX Profile – Base Case CAPEX (+/- 50%) spend over Base Case builds Project Capacity For personal use only • Module 1 developed with Pre-Production CAPEX requirement of US$89 million, including mining fleet, process plant, infrastructure and Owner's cost - • Ramp up to be optimised during
Slide 10: REO Production Profile – Base Case
Makuutu REO Production Profile – Base Case Modular Expansion ramping up REO production For personal use only • Staged development capacity results in peak production from Year 7 onwards at ~ 4,000 tpa REO equivalent Annual REO Production Profile 4,500 Annual REO Equivalent Production (tpa) 4,000 3,5
Slide 11: REO Basket – CREO & HREO Dominant
Makuutu REO Basket – CREO & HREO Dominant Makuutu – One stop, REO shop For personal use only • Makuutu basket across Base Case and Upside Case La2O3 near identical – approx. 33% magnet REO (Nd, Pr, Dy, 13.5% Tb) Y2O3 • 73% CREO+HREO content → Balanced product with 25.4% potential to experience massi
Slide 12: CREO & HREO Product – Pricing Basis
Makuutu CREO & HREO Product – Pricing Basis REO Pricing to 2030 For personal use only • Makuutu’s basket value which is 73% CREO + $250 HREO dominant • Forecast to experience substantial appreciation over next 10 years $200 Makuutu Product Basket, US$/kg • China’s Export Control Ban will reduce avai
Slide 13: REO Pricing Basis
REO Pricing Basis Beyond Pricing to 2030 – But what about Beyond 2030?? For personal use only • REO demand increasing at rates that exceed forecast driven by “When peering into the outlook for the next decade to come, it Government Stimulus spending on electric vehicles (EVs), renewable becomes quic
Slide 14: OPEX Profile – Base Case
Makuutu OPEX Profile – Base Case OPEX (+/- 50%) to produce MREC product over Years 0 to 11 For personal use only • Base Case OPEX circa US$12.60 per tonne of plant feed, with 40% of cost in mining, 54% processing costs and 6% G&A • Base Case OPEX circa US$36.27 per kg REO produced Vs. benchmarked Ch
Slide 15: Development Timetable
Makuutu Development Timetable Aim for Makuutu Module 1 to be in Production by H1 2024 For personal use only • Active program now underway to deliver BFS and ESIA by Q3 • Final Investment Decision planned for late 2022; 2022; • Construction early 2023; and • Mining Licence Application in or before Oc
Slide 16: Upside Potential – Inferred Resource has potential to extend LOM
315 Million tonne IAC Mineral Resource Estimate Upside Potential – Inferred Resource has potential to extend LOM For personal use only • 315Mt @ 650 ppm TREO MRE consisting of 26% Indicated Resource and 74% Inferred Resource • Scope to extend life of Makuutu by converting Inferred Resources to Indic
Slide 17: Investment Highlights
Makuutu Investment Highlights 11 Year LOM, Low CAPEX, High Margin, Unique CREO/HREO Basket For personal use only • Scoping Study confirms robust Base Case 11-year CREO and HREO HIGH VALUE CREO / HREO PRODUCT production potential and Strategic importance of Makuutu (51% IonicRE ownership) La2O3 13.5%
Slide 18: Additional Slides
For personal use only ADDITIONAL SLIDES 18
Slide 19: Tier-One Infrastructure already there!
Tier-One Infrastructure already there! Excellent local infrastructure supports low CAPEX development For personal use only Logistics • Approximately 10 km from Highway 109, connecting Makuutu to both capital city Kampala and Port of Mombasa, Kenya • Approximately 20 km from rail line connecting to P
Slide 20: Environment, Social, Governance (ESG)
Environment, Social, Governance (ESG) ESG initiatives ‘front and centre’ at Makuutu For personal use only • IonicRE aspires to be a leader in adopting high ESG standards in the development of the Makuutu Rare Earths Project. We consider ESG in our development planning, which will adhere to the Equat
Slide 21: Environment, Social, Governance (ESG) – Environmental
Environment, Social, Governance (ESG) Environmental For personal use only • Compliance fully with the laws of Uganda governing environmental protection: the National Environment Act 1995 and local government bye-laws. • The shallow depth of the deposit will minimise environmental impacts of mining a
Slide 22: ESG – Water Treatment using best practice
Environment, Social, Governance (ESG) Water Treatment using best practice For personal use only • As the Makutu is near the equator, and the nature of the REE mineralisation and processing requirements will be net positive in the water balance, water treatment of the excess process liquor is require
Slide 23: ESG – Social and Governance
Environment, Social, Governance (ESG) Social and Governance For personal use only • We endeavor to maintain our ‘licence to operate’ – by actively managing our relationships with our key stakeholders, primarily the local communities across the Makuutu Rare Earths Project – and identifying initiative
Slide 24: China's REE Dominance – IACs provides HREO Balance
China’s REE Dominance – IACs provides HREO Balance China understands the balance problem – but what happens when IACs run out? For personal use only • China derives the 86% of the total REE production from a handful (3) of mineral concentrate LREE mines • Bayan Obo world’s largest REO producer (~74
Slide 25: Advantage of Ionic Adsorption Clays (IAC)
Advantage of Ionic Adsorption Clays (IAC) The Holy Grail of REE Deposits1 For personal use only • Very rare deposits outside of southern China • Significant Project and cost advantages with IAC projects like Makuutu vs hard rock REE projects • Simple mining and processing • Higher HREO content → Hig
Slide 26: Metallurgy Optimised
Makuutu – Metallurgy Optimised Testwork identified step change in simple ‘salt’ extraction For personal use only • REE3+ host in clay via ionic bond • Chemical process, not a mineral concentration step • Desorption is the breaking of the ionic bond using ion • Product is a liquor that contains REE3+
Slide 27: Metallurgy Optimised – Process Upgrades CREO & HREO basket
Makuutu – Metallurgy Optimised Process Metallurgy Upgrades CREO & HREO basket composition For personal use only • A key attribute of the metallurgical response at Makuutu is the elevated extractions of HREO over LREO → increase in the % CREO and HREO in the Makuutu product basket • LOM Head composit
Slide 28: Makuutu basket and EU Critical Raw Materials 2020
Makuutu and Critical Raw Materials 2020 Makuutu basket contains high ranked CRMs identified in 2020 EU study required to achieve carbon neutrality For personal use only • Secure and sustainable supply of both 7.0 primary and secondary raw materials, specifically of critical raw materials ErbiumCeriu
Slide 29: Ionic Rare Earths Limited
For personal use only Ionic Rare Earths Limited Level 1, 34 Colin Street T +61 8 9481 2555 West Perth WA 6005 Australia F +61 8 9485 1290 www.ionicre.com.au
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