Vital Metals Ltd · ASX:VML
Vital Metals — Investor Presentation (April 2016)
26 slides from Vital Metals's investor presentation, Apr 19, 2016
Slide 1: Near Term Tungsten Developer and Gold Explorer
For personal use only Near Term Tungsten Developer and Gold Explorer Investor Presentation April 2016
Slide 2: Forward looking statements
Forward looking statements Certain written statements contained or incorporated by reference in this presentation, including information as to the future financial or operating performance of the Company and its projects, constitute forward-looking statements. All statements, other For personal use
Slide 3: A compelling investment proposition
A compelling investment proposition Near term tungsten developer with exciting gold exploration projects For personal use only Burkina Faso Kollo Gold Project includes bonanza hits: 44m @ 6.39g/t Au from 8m (including 4m @ 58.03g/t Au); 5m @ 60.36g/t Au from 75m; 4m @ 18.71g/t Au from 76m.
Slide 4: Corporate snapshot
Corporate snapshot X Structure (ASX:VML) Capital Major Shareholders For personal use only Share price (15 Apr 2016) A$0.012 per share Shares on issue 346.6 million Market capitalisation A$4.2 million Options on Issue 91.7 million Cash A$0.5 million Debt A$3.2 million Enterprise value A$6.8 million
Slide 5: Set for re-rating
Set for re-rating For personal use only Strategic review of Watershed DFS confirmed no fatal flaws and is shovel ready Significant value and upside in Vital’s gold project portfolio Investor Presentation 5
Slide 6: A Pipeline of Tungsten and Gold Projects
A Pipeline of Tungsten and Gold Projects For personal use only Country Target Prospect Mineral Resources Ore Reserves Production Anomally Desailly (W) 18 (W) Watershed Queensland, Australia Watershed Target 15 (W) Regional Watershed Tungsten, Gold and Peninsula (Cu) South (W) (W, Sn, Au, Cu) Open pi
Slide 7: Burkina Faso Gold Exploration
Burkina Faso Gold Exploration Vital has 100% Ownership of For personal use only three tenements Located in the right area MNG Gold Youga mine Along strike from Cardinal exploration projects Advanced project at Kollo with exploration drilling along 3km strike length of gold mineralisation
Slide 8: Burkina Faso – Kollo Gold Exploration
Burkina Faso – Kollo Gold Exploration Kollo - advanced exploration project with high For personal use only grade gold mineralisation from surface: KRC260: 5m @ 60.36g/t from 75m (inc 2m @ 128.5g/t from 76m); KRC210: 44m @ 6.39 g/t gold from 8m; KRC019: 31m @ 3.19 g/t gold from 34m; KRC255:
Slide 9: Burkina Faso – Kollo Gold Exploration
Burkina Faso – Kollo Gold Exploration For personal use only Investor Presentation 9
Slide 10: Burkina Faso – Gold and Zinc
Burkina Faso – Gold and Zinc Boungou South Gold Prospect located around 6km to Highly prospective for VMS style mineral deposits. For personal use only the south east of Kollo Project Drill-ready targets with ore grade intercepts Encouraging first pass RC drill results include: Drilling resu
Slide 11: Queensland Exploration – Gold and Copper
Queensland Exploration – Gold and Copper Elephant Creek gold prospect (EPM 19089) is believed to have For personal use only potential for low cost open pit mining with mineralisation from surface Gold is liberated and free milling and has been worked in the past using alluvial mining methods H
Slide 12: Conclusions
Conclusions Offering significant leverage to rising commodity prices with a near term For personal use only tungsten project and exciting gold exploration projects Burkina Faso Kollo Gold Project an early stage development project. Low Capex Requirements, initial study on 25Kpa oz Au Excelle
Slide 13: Competent Person’s Statement
Competent Person’s Statement The information that refers to Mineral Resources in this presentation was prepared and first disclosed under the JORC Code 2004. It has not been updated since to comply with the JORC Code 2012 on the basis that the information has not materially For personal use only cha
Slide 14: Cautionary Statement
Cautionary Statement The Definitive Feasibility Study (DFS) referred to in this presentation is based on a Proved and Probable Ore Reserve derived from a Measured and Indicated Mineral Resource, plus a small proportion of mining inventory, which comprises material that is For personal use only curre
Slide 15: Appendix: Tungsten Opportunities
Appendix For personal use only Appendix:1 Tungsten Opportunities Investor Presentation 15
Slide 16: Watershed Tungsten Project, QLD
Watershed Tungsten Project, QLD Vital have 100% Ownership For personal use only Definitive Feasibility Study (DFS) completed Fully permitted with all Mining Leases, Environmental Authority and Indigenous Land Use Agreements in place Reserves of 21.5Mt at 0.15% (31,000 tonnes WO3) 2.5Mtpa o
Slide 17: Watershed location and infrastructure
Watershed location and infrastructure Located 115km NW from Cairns, Nth QLD For personal use only Cairns serviced by international and domestic airports Watershed is located 24km from the State highway and Ergon 132kv grid power line Watershed has minimal infrastructure requirements: 24km
Slide 18: Substantial exploration upside - Tungsten
Substantial exploration upside - Tungsten Mineralisation open along strike and at depth For personal use only Several near-mine targets located close to the main open pit – limited focused drilling program has potential to add value to current mine plan Potential for an underground operation w
Slide 19: Provisional Timeline
Provisional Timeline Definitive Feasibility Study: For personal use only Completed Mining Leases: Granted Environmental Authority: Approved Next steps: Offtake agreements Project finance Selection of Contractor Build Investor Presentation 19
Slide 20: Peer Comparison
Peer Comparison For personal use only Source: ASX, Company reports and announcements Investor Presentation 20
Slide 21: Tungsten price presents opportunity
Tungsten price presents opportunity For personal use only Investor Presentation 21
Slide 22: Watershed financial scenarios
Watershed financial scenarios For personal use only Pre Tax NPV @8% for APT Price Pre Tax IRR for APT Price Investor Presentation * See accompanying Forward Looking and Cautionary Statements. Capital costs are on an 100% equity basis using A$100M, DFS Mine Schedule 10 year life 22
Slide 23: Valuation summary
Valuation summary There is a disconnect between alternative methods of value vs. the Valuation Summary For personal use only current share price. 90 By comparison the following list could be used to also value Vital: Valuation Range 80 Value (A$ m) 1) Transaction Comps. A$76m US$6.3 million (A$9.0
Slide 24: Mineral Resources and Ore Reserves
Mineral Resources and Ore Reserves Mineral Resources Tonnage Mt WO3% For personal use only Measured 9.5 0.16 Indicated 28.4 0.14 Sub Total: Measured and Indicated 37.8 0.15 Inferred 11.5 0.15 Total: Measured, Indicated and Inferred 49.3 0.14 Ore Reserves Tonnage Mt WO3% Proved 6.4 0.16 Probable 15 0
Slide 25: Exploration Target
Exploration Target For personal use only Element of Tonnage Range Grade Name Tenement Comments Interest (kt) Range Watershed ML20536 W 10,500 – 14,000 0.14 - 0.25% Deeps* These Exploration Watershed Targets are conceptual MDL127 W 830 - 1,000 0.06 - 0.15% South* in nature, and there has been insuffi
Slide 26: Germany – Tungsten, Tin and Silver
Germany – Tungsten, Tin and Silver Aue Exploration Permit is prospective for underground For personal use only tungsten, tin, silver and uranium mineralisation. Tungsten mineralisation has been sampled and mapped from underground adits and drill core. Underground channel sampling of quartz veins