Korab Resources Limited · ASX:KOR
Korab Resources — Investor Presentation (June 2017)
34 slides from Korab Resources's investor presentation, Jun 22, 2017
Slide 1: Korab Resources Ltd Corporate Presentation
KORAB RESOURCES LTD CORPORATE PRESENTATION Andrej K. Karpinski Chairman June 2017
Slide 2: Korab Resources Summary
Korab Resources Summary Established in 1998 Address Listed in 2005 20 Prowse Street, West Perth WA, 6005 Capital Structure Tel: +61 (0) 89474 6166 288 Mln shares and 4 Mln 10c options Last Price: 2.3 cents www.korab.com.au Market Capitalisation: $6.6 Mln Directors Market Codes: Andrej K. Karpinski –
Slide 3: Winchester magnesium carbonate deposit
Winchester magnesium carbonate deposit Company status Tenure AusMag is a private company registered and based in Western Australia with Korab Resources Ltd holding 100% of issued shares. AusMag owns 100% of the Winchester deposit and the Mineral Lease ML30587 where it is located AusMag is focused on
Slide 4: Magnesium carbonate
Magnesium carbonate Magnesium carbonate markets Magnesium carbonate users Raw magnesite ore Calcined magnesia Dead burned magnesia Fused magnesia 3
Slide 5: Magnesium metal
Magnesium metal Magnesium alloys Magnesium alloys used in a car Magnesium alloys are extensively used in production of motor vehicles and aerospace applications Because of their stiffness, strength and light weight, magnesium alloys are the preferred material used by car makers to reduce the weight
Slide 6: Magnesium-ion batteries
Magnesium-ion batteries Magnesium-ion vs Lithium-ion Examples Magnesium ions carry a double positive charge –vs- single positive charge carried by lithium ions Magnesium-ion battery's capacity is 8 to 12 times higher than a lithium-ion battery. Magnesium-ion battery's charge/discharge efficiency is
Slide 7: Magnesium-diboride superconductors
Magnesium-diboride superconductors Superconductors uses MRI Scanner Magnesium-diboride (MgB2) superconductors can operate at “high” temperature of 40K and have already been commercialised Current sectors using MgB2 superconductors MRI imaging equipment Low-mass high-power electric motors for naval p
Slide 8: Magnesium-diboride superconductors
Magnesium-diboride superconductors Naval propulsion electric motor Tests of naval propulsion motor Northrop Grumman MgB2 superconductive naval electric motor MgB2 superconductive naval propulsion electric motor undergoing has the same power as copper motor but is 70% lighter “wet’ testing under load
Slide 9: Location
Location 10 kilometres WINCHESTER OPEN PIT <> ee
Slide 10: Simplified mine layout
Simplified mine layout <= 70km to Darwin werushers/screens A Fines A Batchelor Rd “il Waste dump ‘~~ Open pit
Slide 11: Darwin Port
Darwin Port 10
Slide 12: Mineralisation (north view)
Mineralisation (north view) 11
Slide 13: Mineralisation (south view)
Mineralisation (south view) 12
Slide 14: Test mining (drill & blast)
Test mining (drill & blast) 13
Slide 15: Test mining (setting charges)
Test mining (setting charges) 14
Slide 16: Test mining (loading)
Test mining (loading) 15
Slide 17: Winchester project summary
Winchester project summary Located 85km from Darwin port Year-round access by sealed road Simple quarry operation supplying crushed raw magnesite rock (MgCO3) in bulk, no processing, just crush and screen Annual capacity can be easily increased if demand justifies Deposit is a near surface, ore body
Slide 18: Winchester project status
Winchester project status Various tests and studies successfully completed Metallurgical testing, and production of magnesium metal Calcination testing Hydrological studies Environmental studies Commercialisation is progressing Granted mining lease (to 2040 with rights to extend) Offtakes and sales
Slide 19: Operating costs (in Australian Dollars)
Operating costs (in Australian Dollars) SUMMARY 200KT/Y 400KT/Y 800KT/Y WATER MANAGEMENT ($/YR.) 440,000 440,000 440,000 WASTE DUMPS ($/YR.) 180,000 180,000 180,000 QUARRY AND CRUSHING ($/YR.) 3,906,452 7,137,186 12,421,015 SUBTOTAL ($/YR.) 4,526,452 7,757,186 13,041,015 CONTINGENCY (30%) 1,357,935
Slide 20: Financials
Financials EBITDA vs sales volumes •Aggregate EBITDA of AU$395 mln over quarry life •Attractive long-run annual EBITDA of AU$31 mln/year (at 800kt/year sales) •Low projected operating cost in the lowest quartile of global magnesite projects Production target information contained in this report was
Slide 21: Development costs
Development costs CAPEX estimates from PFS study SUMMARY AU$ WATER MANAGEMENT 626,810 SITE INFRASTRUCTURE 1,079,310 WASTE DUMPS 108,925 QUARRY 1,293,290 SUBTOTAL 3,108,335 CONTINGENCY (30%) 932,501 TOTAL ESTIMATE 4,040,836 Capital expenditure is exceptionally low due to very simple quarry operation
Slide 22: Base case plan
Base case plan 21
Slide 23: Scale-up development plan
Scale-up development plan 22
Slide 24: Other details
Other details •Exceptionally low capex of ~AU$4 million (~US$3Mln) EBITDA Sensitivity to MgCO3 prices •Mine can be developed in stages and easily expanded •No need for additional funding once mine is in operation, capacity expansion can be fully funded from cashflow •Mine can operate at a profit wit
Slide 25: Winchester magnesium carbonate resource
Winchester magnesium carbonate resource JORC compliant mineral resource estimate was generated from RC and diamond core drilling within a Magnesium carbonate at Winchester Winchester deposit and geology 6%-7% section of the mineralised trend JORC resource formed the basis for the design of the open
Slide 26: Geological map
Geological map 25
Slide 27: Batchelor project exploration
Batchelor project exploration Major geophysical anomalies (IP and EM) present at the location of a large cobalt soil geochemical anomaly covering over 488,000 m2 Historical rock chips at this location returned up to 0.495% cobalt and 5.8g/t gold Historical drilling at this target returned up to 0.14
Slide 28: Batchelor project exploration - cobalt
Batchelor project exploration - cobalt Highlights (above 700ppm Co) from Reverse Circulation drilling include following multiple zones of cobalt, copper and gold (where available) mineralisation: HOLE_ID FROM_M TO_M CO_PPM CU_PPM AU_PPM BRC2 41 42 725 120 n/a BRC2 43 44 1,090 152 n/a BRC2 44 45 895
Slide 29: Batchelor project exploration - cobalt
Batchelor project exploration - cobalt Highlights (above 500ppm Co) from surface sampling include following high grade cobalt samples: TYPE CO_PPM CU_PPM NI_PPM rockchip 4,950 rockchip 4,033 rockchip 2,660 1,610 700 rockchip 2,102 rockchip 2,000 945 460 rockchip 1,910 260 1,020 rockchip 1,510 1,050
Slide 30: Batchelor project exploration - cobalt
Batchelor project exploration - cobalt Highlights (above 500 ppm Co) from shallow RAB drilling include following zones of cobalt mineralisation: HOLE_ID FROM_M TO_M CO_PPM CU_PPM NI_PPM MGR230 1 3 2,400 1,140 570 MGR230 3 5 2,700 1,540 735 MGR230 5 7 1,500 1,080 630 MGR230 7 9 1,420 800 455 MGR766 9
Slide 31: Batchelor project exploration - cobalt
Batchelor project exploration - cobalt 30
Slide 32: Batchelor project exploration - cobalt
Batchelor project exploration - cobalt 31
Slide 33: Batchelor project exploration - cobalt
Batchelor project exploration - cobalt 32
Slide 34: Important Information
Important Information This presentation has been prepared by Korab Resources Limited (“Korab” or the “Company”). It should not be considered as an offer or invitation to subscribe for or purchase any securities in the Company or as an inducement to make an offer or invitation with respect to those s