Diatreme Resources Limited · ASX:DRX
Diatreme Resources — Mineral Sands Conference 2015
30 slides from Diatreme Resources's conference presentation, Mar 25, 2015
Slide 1: Mineral Sands Conference: Cyclone – Focussed on Delivering a Mine
For personal use only Mineral Sands Conference Melbourne - March 2015 CYCLONE – FOCUSSED ON DELIVERING A MINE
Slide 2: Disclaimer
DISCLAIMER For personal use only This presentation contains certain forward-looking statements and forecasts which include without limitation, expectations regarding future performance, exploration, mineral resources, the financial position of Diatreme Resources Limited (the “Company”), industry gro
Slide 3: Presentation Outline
PRESENTATION OUTLINE For personal use only • Diatreme Resources Experience counts • Cyclone Project Delivering a Mine • Mineral sands demand Stronger for longer? • Strong project pipeline Cape Bedford, other projects • Conclusion Diatreme streamlined and set for growth 3
Slide 4: Experienced Team
EXPERIENCED TEAM For personal use only • New, experienced management team focussed on streamlining operations with clear emphasis on flagship Cyclone Zircon Project: Neil McIntyre – CEO, 25yrs experience in banking, finance, resources Ian Reudavey – Chief Geologist, 25yrs in exploration & mining
Slide 5: Skin in the Game
SKIN IN THE GAME For personal use only DRX— Capital Structure Directors Position Shares on Issue 751.4 Million William Wang Chairman Options on Issue (Listed) 15.3 Million Andrew Tsang Non Executive Director Options on Issue (Unlisted) 42.7 Million Daniel Zhuang Non Executive Director Share Price (2
Slide 6: Australia-Focused
AUSTRALIA-FOCUSED For personal use only Mineral Sands Cape Bedford Metals Tick Hill Clermont Grays Hill Cyclone 6
Slide 7: Diatreme's Flagship: Cyclone Project, WA
DIATREME’S FLAGSHIP: CYCLONE PROJECT, WA For personal use only 7
Slide 8: Cyclone Project's Investment Fundamentals
CYCLONE PROJECT’S INVESTMENT FUNDAMENTALS For personal use only • JORC Resource: Currently 221Mt @ 2.1% HM (Cyclone + Cyclone Extended) • JORC Reserve: Cyclone 97Mt @ 2.5% HM containing 770kt Zircon; Cyclone Extended expected to add 20 – 25Mt at similar grade (update in Q2 2015) • CAPEX of $A146 mil
Slide 9: Cyclone: A Low-Cost Project
CYCLONE: A LOW-COST PROJECT For personal use only This chart shows the capital cost Capital Cost (HM Developers) position of the Cyclone Project 1,000 relative to other mineral sand 900 projects, which are at various stages of feasibility assessment 800 Capital Cost (US$m) and development. The ASX 7
Slide 10: Cyclone vs Peers – In-Ground Value
CYCLONE VS PEERS – IN-GROUND VALUE For personal use only This chart shows the ore value position of the Cyclone Project relative to other mineral sand projects, which are at various stages of feasibility assessment and development. The ASX codes for the companies developing the projects are shown be
Slide 11: Cyclone Project Builds Momentum
CYCLONE PROJECT BUILDS MOMENTUM For personal use only Water Supply Extensive groundwater aquifer discovered beneath Cyclone Dec 2013. First bore complete (>40 l/s). Pump test required for bore-field design. Mine and Haul Road Environmental studies complete and Public Environment Report submitted in
Slide 12: Cyclone Mining Lease & Site Layout
CYCLONE MINING LEASE & SITE LAYOUT For personal use only Mining Lease M69/141 has been granted for the Cyclone Ore Reserve (dark red) and the operational activities that will occur around it. These activities include wet concentrating, tailings disposal, HMC stockpiles, offices, workshops, CYCLONE i
Slide 13: Cyclone Project Milestones
CYCLONE PROJECT MILESTONES For personal use only Schedule Date Pre-Feasibility Study Completed - March 2012 Definitive Feasibility Study (most permits) Q3 2015 Project Financing Q4 2015 Construction & Development Q3 2016 Mining & Production Q2 2017 13
Slide 14: Proposed Mining Methods
PROPOSED MINING METHODS For personal use only 14
Slide 15: Cyclone Mining Proposal - PFS
CYCLONE MINING PROPOSAL - PFS For personal use only Strip Ratio 1.1 : 1 Mining Rate (Dry) 1,300 tonnes per hour – 2 x Dozer traps Mine Site 26 Tonnes / Hour HMC production Wet Concentration Plant Product 147,000 t PA @ 98.5% HM Concentrate Transport - Road 240km - 4 trucks x 110 tonnes to Forrest. T
Slide 16: Transport Options
TRANSPORT OPTIONS For personal use only HMC loaded into containers at Cyclone. 33 tonne per container. 240 kilometre truck transport by road CYCLONE 1,100 kilometre rail transport from Cyclone to Forrest rail siding in from Forrest siding to Port Pirie Road Rail 100 tonne loads. in 3,000 tonne loads
Slide 17: Cyclone Project 2014 Financial Estimates
CYCLONE PROJECT 2014 FINANCIAL ESTIMATES For personal use only • Cyclone Project including Cyclone Extended • Evaluation based on sale of HMC CIF China • 12 year mine life at 10 Mt per year • Average annual production of 155 kt HMC (A$139 M/year) • A$146M Capital cost estimate and annual operating c
Slide 18: Recent Significant Announcements
RECENT SIGNIFICANT ANNOUNCEMENTS For personal use only • 7th November – Tick Hill Mining leases purchased from MIM (Immediate mining opportunities to exploit & cash flow potential) • 11th November – Cyclone Extended acquisition from Image Resources NL (Adds 53% to resource size and 4-5 years to mine
Slide 19: China's Mineral Sands Demand: Stronger for Longer?
CHINA’S MINERAL SANDS DEMAND: For personal use only STRONGER FOR LONGER? RUIDOW ANALYSIS, SEPTEMBER 2014* ZIRCON “….an average 4-5% growth in building ceramic industry can best explain that China’s ceramic industry has come into a stable development stage.” HiTi87 & HiTi67 “With the progress of scie
Slide 20: Asia's Urbanisation Continues
ASIA’S URBANISATION CONTINUES For personal use only Urbanisation set to increase demand for mineral sands, including zircon: WORLD BANK REPORT, JANUARY 2015 • Almost 200 million people moved to urban areas in East Asia from 2000-10 • Overall proportion of urbanites rose from 29% to 36% - but less th
Slide 21: Diatreme's Project Pipeline
DIATREME’S PROJECT PIPELINE For personal use only 21
Slide 22: Exploration Overview
EXPLORATION OVERVIEW For personal use only • Consolidation of exploration tenure – currently 8 exploration properties (incl. 1 application) and 1 ML, down from 29 (incl. 13 applications) in March 2014 • Mineral sands exploration tenure comprises Cyclone (WA), Yeppoon (Qld) and Cape Bedford (Qld appl
Slide 23: Cape Bedford, QLD
CAPE BEDFORD, QLD For personal use only Cape Bedford, QLD Cape Bedford Silica Sand, Heavy Mineral Sands EPM Application Conditions for grant agreed with Traditional Owners Size: 554 sq. km 23
Slide 24: Cape Bedford, QLD
CAPE BEDFORD, QLD For personal use only Lookout Pt Large sand dune system with known silica sand and mineral sand occurrences over an area 50km x 15km in dunes up to 100m high. Historical exploration indicates HM mineralised horizons in sand mass High grade silica in previous drilling samples. Sampl
Slide 25: Cape Bedford, QLD
For personal use only CAPE BEDFORD, QLD 25
Slide 26: Cape Bedford, QLD
CAPE BEDFORD, QLD For personal use only Mineralisation on the current beach shedding from the dunes 26
Slide 27: Cape Bedford, QLD
CAPE BEDFORD, QLD For personal use only Major dune field with high grade silica sand overlying heavy mineral sand potential 27
Slide 28: Grays Hill, QLD
GRAYS HILL, QLD For personal use only Grays Hill, Qld Copper, Gold Mineral Sands Granted EPM25117 Grays Hill Size: 237 sq. km 28
Slide 29: Grays Hill, QLD – Exploration Potential
GRAYS HILL, QLD – EXPLORATION POTENTIAL For personal use only HM strandline potential - embayment HM strandline and dune potential - old shorelines Permian Volcanics with intrusives / breccia Known Porphyry Cu-Mo mineralisation Epithermal Au / base metals potential 29
Slide 30: Diatreme: Delivering Value
DIATREME: DELIVERING VALUE For personal use only • Diatreme streamlined and refocused on its major project - Cyclone • Cyclone advancing through approvals and DFS • Cyclone resource expanded and project costs reduced • Attractive project fundamentals for further investment • Diatreme focused on deli