Slide 1: Mt Carbine Bankable Feasibility Study Webinar
EQ RESOURCES LIMITED Mt Carbine Bankable Feasibility Study Webinar December 2021 ASX : EQR
Slide 2: Disclaimer
Disclaimer Competent Person's Statement • The information in this presentation relating to the outcomes of the Mt Carbine Bankable Feasibility Study - Webinar, made available through the Company’s website www.eqresources.com.au/. The Company confirms that it is not aware of any new information that
Slide 3: Corporate Snapshot
Corporate Snapshot Value Proposition 22 November 2021 • Australia’s only primary producer of tungsten Share Price A$ 0.057 Issued Shares 1,344m • High-grade resource (expandable) Market Capitalization A$ 76,61m • Multiple revenue streams Shareholding: • Low-cost expansion - Top 20 holders 57.88% • E
Slide 4: Why EQ Resources
Why EQ Resources 1 4 BFS only focusses on the open pit Australia’s only primary producer of only 14.4% of the resources (excl tungsten, a critical mineral LGS) 5 Scoping study for UG set for Q1 2022, 2 Strong Economics of Open Pit & LGS – $131M NPV8 with 154% IRR expected to continue improvement of
Slide 5: Our Values & Culture
Our Values & Culture Act Safe. Feel Safe. Act safe at work. Care and respect each other. Feel safe to be yourself. Embrace Difference Diversity of thinking, skills and background creates value and drives innovation. Tread Lightly Embed resource efficiency to minimise environmental footprint and deli
Slide 6: Stakeholder ESG Sentiments
Stakeholder ESG Sentiments ESG Organisational Performance Current Aspiration Stakeholders were asked to rate whether the organisation was perceived to Materiality 1 2 3 be leading or lagging across each of the 12 ESG themes. They were asked to do this for current state, as well as for where they fel
Slide 7: Mt Carbine Open-cut & Modernisation Project Overview
Mt Carbine Open-cut & Modernisation Project Overview Australia’s only primary tungsten producer is increasing production Located 130 km north of the city of Cairns in Far North Queensland, Project Location Map Australia Situated within the Far North Queensland critical mineral province Operating tun
Slide 8: BFS Highlights
2,200tpa Avg Tungsten production A$155/mtu Total cash cost (CIF) BFS Highlights To bring in line with large-scale Projected to be in the lowest cost tungsten producers quartile 12 years A$430/mtu Initial mine life Long-term price forecast LGS & Open-cut project with industry- High product quality an
Slide 9: Pre-tax Cashflow Generation – UG Potential
Pre-tax Cashflow Generation – UG Potential Open Pit currently defined is +/-15% of resource Significant underground potential exists to drive economics for several more years Scoping Study to be completed on UG resource potential to gain better understanding of economics and viability over and above
Slide 10: Project Development Plan
Project Development Plan Development plan includes integration of open-cut and processing facility modernisation Simplified location plan for the Project Phase 1 focuses on minimal capital expenditure, incremental improvements to increase the mine’s productivity and profitability focusing solely on
Slide 11: Market Analysis
Market Analysis • Unique properties, difficult to substitute • Steady demand growth of China mine 1.5% CAGR projected 2 1 output declining (2021-2030) 20kt W of new • High supply concentration (5 1 2 supply needed mines account for 23% of global output Solid floor • EQR investigating value-add 3 pri
Slide 12: Geology and Resources
Geology and Resources Phase 1 and 2 (under Bankable Feasibility Study) Underground Resources • Low grade stockpile – 10.1Mt@0.075% • Preferred Pit - 15Mt Pit Extension contains 1.1Mt@0.83%WO3 • 14.4% of known in-situ resources Planned Decline Phase 3 (planned Scoping Study) • Long Life Underground M
Slide 13: Q1 - Near Term Confirmation Drilling
Q1 - Near Term Confirmation Drilling Pit Extensions North & West into Known Adding Shallow Open Cut Ore Resources Pit • Known Shallow Resources Extension s East • Eastern Exploration Work • Continue Pit Extensions to Depth Planned Planned Holes 3-year Pit 13
Slide 14: Q2 – Regional Extension Vein Drilling
Q2 – Regional Extension Vein Drilling Locating New Mt Carbine Sheeted Systems Exploration Drilling Q2 • Target other key vein packages similar to Mt Carbine (black arrows) • Integrated Geophysics & Soils • Complete Plot-Logic Multi-frequency Scan Program • Extend Structural Mapping Q1 Targets 3-year
Slide 15: Q3 - Underground Drill Program
Q3 - Underground Drill Program Defining + 10 Yrs of Reserves • Mining of high-grade zones from UG decline • More than 10 ore zones on each level • Low-cost extraction using long hole mine methods • Resources indicate >10 years mining of High-Grade ore. Decline Planned Holes 15
Slide 16: Geology and Resources
Geology and Resources • Measured Group prepared the Independent Resource Statement released Completed on 23 September 2021 • BFS open pit shell design to include ~14.4% of the known resources Stage 1 – Define Resources for Open Cut Mine • Detailed Drilling allowed high grade zones to be linked • Det
Slide 17: Mine Plan
Mine Plan Mine plan is designed extract ore from the open-cut pit extension and low grade ore stockpile BFS mine plan is designed to deliver a constant feed of Open-cut pit extension stage plans 1,000,000tpa of ore to the ROM for a 12 year mine life Mine plan is supported by the Ore Resource of 21.2
Slide 18: Processing
Processing Processing improvements identified through operational performance analysis Phase 1 Crushing and Screening Circuit Existing dry and wet processing facilities currently in operations Processing facilities are designed for steady-state production of 1,000,000tpa Production to reach steady-s
Slide 19: Infrastructure
Infrastructure Mt Carbine is currently operating and is well serviced with existing on-site infrastructure The site infrastructure strategy for the project is to utilise as Existing Infrastructure much as possible the existing site infrastructure and only construct new infrastructure if required to
Slide 20: Development Timeline
Development Timeline Phased approach for early cash flow Early Works Funding & Internal Bankable Feasibility Secure Expansion UG Environmental Facilitation Doc Engineering Study Full Scale Complete Funding & Approval Approval Complete Operation Drawdown UG Study 2020 2021 2022 Q4 Q1 Q2 Q3 Q4 Q
Slide 21: Strategic, Social and Economic Benefits
Strategic, Social and Economic Benefits A critical minerals project of national significance o Embracing the concept of the Circular Economy, using innovation to identify suitable ore for treatment and the use of ‘by-products’ to supply road base and aggregate materials to build local roads and cons
Slide 22: Compelling Economics
Compelling Economics BFS1 confirms high margins, low capital intensity & operating cost and speed to market Summary of BFS Results Global tungsten Cash Cost Curve (US$/mtu) Parameter Unit BFS Production Rate (LoM Avg) mtu 2,200 Life of Mine years 12 Total Cash Cost (FCA) A$/mtu 159 Capital Cost A$m
Slide 23: Priorities of Coming 12-Months
Priorities of Coming 12-Months • Phase 1 completed and increase production to 70 to 90tpm tungsten concentrate, becoming profitable • Financial Close for Phase 2 Expansion (BFS scope) • Drill Mt Carbine exploration targets and increase open pit optimization tonnage, drill inferred resource to indica
Slide 24: Follow us on
Site Contact: Investor Relations: Kevin MacNeill Peter Taylor Chief Executive Officer NWR Communications T: +61 412 036 231 E: kmacneill@eqresources.com.au E: peter@nwrcommunications.com.au Registered Office: Mt Carbine Office: Level 4, 100 Albert Road 6888 Mulligan Highway, South Melbourne, VIC 320