American Rare Earths Ltd · ASX:ARR
American Rare Earths — Broken Hill Prospecting — Shareholder Meeting (November 2013)
28 slides from American Rare Earths's shareholder meeting presentation, Nov 15, 2013
Slide 1: Basis for new cobalt and sulphuric acid business in eastern Australia
Photo source: Outotec sulphide roast SA plant (not the property of BPL) Broken Hill Prospecting Limited (‘BPL’) Basis for new cobalt and sulphuric acid business in eastern Australia AGM Presentation, 15 November, 2013
Slide 2: Important Notices
Important Notices Disclaimer This presentation contains forward-looking statements that involve subjective judgement and analysis and accordingly, are subject to significant uncertainties and risks, many of which are outside the control of, and are unknown to, Broken Hill Prospecting Pty Ltd ( “BPL”
Slide 3: Sulphuric acid - a new venture for Broken Hill
Sulphuric acid - a new venture for Broken Hill Broken Hill Chemical Pty Limited (BCL) formed as investment vehicle Australia is a net importer (>400,000t imported in 2012) and the Australian market is growing! Sulphuric acid produced from ‘clean’ pyrite near Broken Hill could form the basis fo
Slide 4: Unique style of cobalt mineralisation; located beside main railway
Cobalt-pyrite deposit…… Location is important for future development Unique style of cobalt mineralisation Located beside main railway 25km SW of BH Outcropping, very large deposits >35Mt In 2012/2013 BPL discovered new deposits Pinnacles mine and untested potential Processing of pyrite to
Slide 5: Deposits are well located to rail and road
Deposits are well located to rail and road... View towards the east No residence within >10km, limited land use Environmental impacts are manageable Already has MLs (and EL) Excellent future mine site location Railway Offset Big Hill View to EAST Co-pyrite Co-pyrite Co-pyrite Deposit Deposit Deposit
Slide 6: Resources and Potential are very large and at surface
Resources and Potential…. are very large and at surface Area of next slide Offset
Slide 7: Pyrite extends to considerable depth
Pyrite extends to considerable depth The Co-pyrite (FeS2) has no Pb, As, Hg, Cd or other ‘toxic’ metals. Gangue minerals are ‘inert’ quartz and Na feldspar. 2013 drilling at BED001 High quality feed for sulphide roasting
Slide 8: Pyrite rock
Pyrite rock………… Cobaltiferous pyrite (FeS2) can make up almost all of the mineralised rock but it is usually between 10-40%. It contains almost all of the cobalt and in order to separate the cobalt, future processing will require concentration of the pyrite by gravity, flotation or by other methods.
Slide 9: Sulphuric acid is essential for numerous industries
Sulphuric acid is essential for numerous industries …… H2SO4 is most used of any chemical (>220mta produced) Most used for phosphate fertiliser (52% in 2011) Others: plastics, fibres, oil refining, metals, mineral processing ….. World consumption increased 58% (1990 to 2011) Future growth
Slide 10: Pyrite to produce sulphuric acid, a growing local market
Pyrite to produce sulphuric acid, a growing local market…. Because pyrite concentrate is relatively inert and less expensive/safer to transport than concentrated acid (specific gravity 1.8), future development scenarios for the deposits will consider options to produce a pyrite concentrate at site a
Slide 11: Sulphur and sulphuric acid production
Sulphur and sulphuric acid production 93% of sulphur consumption is as sulphuric acid Total world acid production in 2012: 220 million tons, up from 188mt in 2009 • From elemental: 61% • From smelters: 32% • From pyrite: 7% Source: http://www.firt.org/sites/default/files/DonMessick_Sulphur_Outlook.p
Slide 12: Future concentrate roasting could also generate electric power
Future concentrate ‘roasting’ could also generate electric power ….. with a carbon neutral footprint
Slide 13: Cobalt Resource and Potential
Cobalt Resource and Potential………. Only about 25% of known pyrite outcrops have been drill tested. The drilled area has Inferred Resources of 35.7 million tonnes of cobalt-pyrite mineralisation with an average grade of 1.85lb/t Co. In addition, the drilled area has an identified Potential* for
Slide 14: What is cobalt? A metal of the future
What is cobalt? ...... A metal of the future Co is special... hard, heavy, high melting temperature, strong magnet Co a ‘Strategic Metal’ in the USA, China, Japan and EU Co price in last 5 years: $12-$50/lb ($22,000-$110,000/t) Co is widely used: superalloys for turbines, jets, military, a
Slide 15: Why is cobalt special?
Why is cobalt special? No cobalt mined in USA, Japan, Korea or EU Co mostly bi-product from some Cu or Ni mines ~100,000t Co produced annually; o ~55% from DR Congo, ~45% refined in China o >80% consumed in USA, Japan, China and European Union. DR Congo: ~51% of world Co reserves, ~55% product
Slide 16: Development scenarios
Development scenarios: Parts of conceptual development; BPL BPL Chemical Company BPL/?Chem Coy mining cobalt- Concentrate Roasting of Recovery of pyrite ore cobalt-pyrite pyrite cobalt from (90%, 0.5% Co) concentrate to remaining ash produce sulphuric acid Direct sale of Co-ash Acid customers Option
Slide 17: Scenario: Roaster/acid plant at Broken Hill or mine
Scenario 1 Roaster/Sulphuric acid plant located at Broken Hill or cobalt-pyrite mine • Advantages; less freight, mining community, good support, one-stop shop, ilmenite sand hub, Government support • Disadvantages; distance, limited range of acid customers ESTIMATED PROJECT STATE COMPANY (tpa) Ginkg
Slide 18: Broken Hill - well located to process NSW mineral sand
Broken Hill - well located to process NSW mineral sand Olympic Dam Broken Hill Source; http://www.australianminesatlas.gov.au/aimr/commodity/thorium.html
Slide 19: Upgrade ilmenite to TiO2 at Broken Hill?
Upgrade ilmenite to TiO2 at Broken Hill? ilmenite ~$200/t, rutile ~$4,000/t (FeTiO3) (TiO2) Ilmenite can be upgraded using concentrated sulfuric acid. The titanium oxygen sulfate (TiOSO4) is selectively extracted and converted into titanium pigment. Sulphate Process; H2SO4 2t sulphuric acid required
Slide 20: Scenario: Roaster/acid plant in central west NSW
Scenario 2 Roaster/Sulphuric acid plant located in central west NSW • Advantages; proximity to wide variety of acid customers on east coast (industry/future mines), infrastructure (road/rail) • Disadvantages; freight, distance ESTIMATED PROJECT STATE COMPANY (tpa) Dubbo Zirconia (+REE) NSW Alkane Re
Slide 21: Business model – outline points
Business model – outline points Example: Alkane Resources Zirconia REE project, Dubbo (‘DZP’) Final stages of development consent Requires 350,000tpa sulphuric acid Requires security of acid supply over 70 year mine life ~800km by railway (BH deposits to Dubbo plant site) ‘Chem Coy’ Builds and opera
Slide 22: Map of NSW projects needing sulphuric acid
Nyngan Scandium (EMC Metals) Dubbo Zirconia Project (Alkane) Mincor’s Tottenham Cu Project Co-pyrite Syerston (Ni-Co-Pt) deposit (Broken Hill Prospecting) Jervois Mining Ni-Co laterite
Slide 23: Pyrite concentrate volumes are smaller, less expensive and safer to transport
Pyrite concentrate volumes are smaller, less expensive and safer to transport Volume of 1 tonne H2SO4 Approximately 1/4 volume of pyrite concentrate to produce 1 tonne H2SO4 1 cubic metre of water = 1 tonne 1m3 of 98% sulphuric acid = 1.84t 1m3 of pyrite concentrate = ~4.8t 1 tonne pyrite concentrat
Slide 24: Scenario: Roaster/acid plant at Tennant Creek (NT)
Scenario 3 Roaster/Sulphuric acid plant located at Tennant Creek (NT) • Advantage; Potential add-on to large/long-life fertiliser industry, export port via Darwin. • Disadvantages; freight, distance. ESTIMATED PROJECT STATE COMPANY (tpa) Barrow Creek Phosphate NT Rum Jungle Resources Ltd >500,000 Ar
Slide 25: Possible sulphide roaster/sulphuric acid plant locations
Tennant Creek SCONI ?Sulphide roaster/sulphuric acid plant 2 Phosphate Hill Rail from Broken Road from Hill to Tennant Broken Hill to Creek via SA has Tennant Creek via ample capacity QLD is 2,600km Dubbo BH ?Sulphide roaster/sulphuric acid plant 1
Slide 26: Location of central Australian projects with possible acid requirement
Location of central Cu oxide projects Ranger Australian projects with a U possible requirement for Stromberg REE future sulphuric acid Wonarah Paradise Tennant Phosphate Browns Phosphate Range Creek Interstate Rail System (yellow) REE Nolans REE Barrow Ck/ Arganara Phosphate Hill Charley Ck/ Phospha
Slide 27: Summary
SUMMARY New sulphuric acid production is required for a growing east Australia market BPL has a large world-class cobalt-pyrite resource which is well located BPL pyrite is an environmentally ‘clean’ feed for sulphide roast processing Sulphuric acid - declining Australian production, uncerta
Slide 28: Contact details
Contact details Dr Ian Pringle, Managing Director, Broken Hill Prospecting Ltd Tel: 0408 548 767 Email: ipringle@bhpl.biz Broken Hill Prospecting Limited Level 14, 52 Phillip Street, Sydney Box 3486 GPO, Sydney NSW 2001 website: www.bhpl.biz
Broken Hill Prospecting — Shareholder Meeting (November 2013) on 6ix