Slide 1: Mt Carbine – Near Term Producer
For personal use only EQ RESOURCES LIMITED Mt Carbine – Near Term Producer March 30th, 2022 ASX : EQR
Slide 2: Disclaimer
Disclaimer For personal use only Competent Person's Statement • The information in this presentation partly relates to the outcomes of the Mt Carbine Bankable Feasibility Study, made available through the Company’s website www.eqresources.com.au/. • The Company confirms that it is not aware of any n
Slide 3: Corporate Snapshot
Corporate Snapshot For personal use only Value Proposition • Australia’s only primary producer of tungsten Share Price A$ 0.055 Issued Shares 1,344m • High-grade resource (expandable) Market Capitalization A$ 73,9m • Multiple revenue streams Shareholding: • Low-cost expansion - Top 20 holders 59.6%
Slide 4: Why EQ Resources
Why EQ For personal use only Resources 1 Australia’s only primary producer of tungsten, a critical mineral 4 BFS only focusses on the open pit only 14.4% of the resources (excl LGS) Scoping study for UG set for Q1 2022, 2 Strong Economics of Open Pit & LGS (BFS scope) – $131M NPV8 with 154% IRR 5 ex
Slide 5: Highlights of Last 12-Months
Highlights of Last 12-Months For personal use only Drilling under the pit (defined a high-grade resource), setting the scene for Bankable Feasibility Study (BFS) work Completed BFS for Mt Carbine Open Pit & Low Grade Stockpile Project Early Works initiated – purchase & installation of equipmen
Slide 6: Priorities of Coming 12-Months
Priorities of Coming 12-Months For personal use only • Early Works install completed (April) and increase production up to 90tpm tungsten concentrate • Financial Close for Phase 2 Expansion (BFS scope) (Sandvik crushing & screening) • Interpretation of recent drilling targetting increase open pit op
Slide 7: Stakeholder ESG Sentiments
Stakeholder ESG Sentiments For personal use only Current ESG Organisational Performance 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
Slide 8: Mt Carbine Open-cut & Modernisation Project (BFS)
For personal use only Mt Carbine Open-cut & Modernisation Project (BFS) 100%-owned by EQ Resources Areal imagery of the Mt Carbine crushing site 8
Slide 9: Mt Carbine Open-cut & Modernisation Project Overview
Mt Carbine Open-cut & Modernisation Project Overview For personal use only Located 130 km north of the city of Cairns in Far North Queensland, Australia Project Location Map Situated within the Far North Queensland critical mineral province Operating tungsten mine and rock quarry resulting in no min
Slide 10: BFS Highlights
2,200tpa Avg Tungsten production A$155/mtu Total cash cost (CIF) BFS For personal use only Highlights To bring in line with large-scale Projected to be in the lowest cost tungsten producers quartile 12 years A$430/mtu Initial mine life Long-term price forecast LGS & Open-cut project with industry- H
Slide 11: Pre-tax Cashflow Generation – UG Potential
Pre-tax Cashflow Generation – UG Potential For personal use only Open Pit currently defined is +/-15% of resource Significant underground potential exists to drive economics for several more years Scoping Study to be completed on UG resource potential to gain better understanding of economics and vi
Slide 12: Compelling Economics
Compelling Economics BFS1 confirms high margins, low capital intensity & operating cost and speed to market For personal use only Summary of BFS Results Global tungsten Cash Cost Curve (US$/mtu) Parameter Unit BFS Production Rate (LoM Avg) mtu 2,200 Life of Mine years 12 Total Cash Cost (FCA) A$/mtu
Slide 13: Phased Project Development Plan
Phased Project Development Plan Development plan includes integration of open-cut and processing facility modernisation For personal use only Simplified location plan for the Project Phase 1 focuses on minimal capital expenditure, incremental improvements to increase the mine’s productivity and prof
Slide 14: Mt Carbine Geology & Mining Plan
For personal use only Mt Carbine Geology & Mining Plan 100%-owned by EQ Resources Imagery of Mt Carbine drill core 14
Slide 15: Geology and Resources
Geology and Resources For personal use only • 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 zo
Slide 16: Geology and Resources
Geology and Resources For personal use only Underground Resources Phase 1 and 2 (under Bankable Feasibility Study) • Low grade stockpile – 10.1Mt@0.075% • Preferred Pit - 15Mt Pit Extension contains 1.1Mt@0.83%WO3 Planned Decline • 14.4% of known in-situ resources Phase 3 (planned Scoping Study) • L
Slide 17: Q1/22 - Open Pit Confirmation Drilling
Q1/22 - Open Pit Confirmation Drilling For personal use only Adding Shallow Open Cut Ore: • Known Shallow Resources • Eastern Exploration Work • Continue Pit Extensions to Depth 17
Slide 18: Q1/22 - Open Pit Confirmation Drilling
Q1/22 - Open Pit Confirmation Drilling For personal use only Example of scheelite mineralization overprinting wolframite (on left); Intergrowth of wolframite and chalcopyrite in broad Drilling for Western mineralized zone (EQ026, 93.2m; on right) Pit Extension Future Pit (BFS) King Vein Intersection
Slide 19: Phase & Mine Plan
Phase 1 & 2 Mine Plan Mine plan is designed extract ore from the open-cut pit extension and low grade ore stockpile For personal use only BFS mine plan is designed to deliver a constant feed Open-cut pit extension stage plans of 1Mtpa of ore to the ROM for a 12 year mine life Mine plan is supported
Slide 20: Mt Carbine Production Expansion & Development Plan
For personal use only Mt Carbine Production Expansion & Development Plan 100%-owned by EQ Resources Imagery of the Mt Carbine process plant 20
Slide 21: Development Timeline
Development Timeline Phased approach for early cash flow Early Works For personal use only Funding & Internal Secure Expansion UG Environmental Facilitation Doc Engineering Study Bankable Feasibility Funding & Full Scale Approval Approval Complete Complete Drawdown Operation UG Study 2021
Slide 22: Current Operation
Current Operation Mt Carbine is currently operating and is well serviced with existing on-site infrastructure For personal use only The site infrastructure strategy for the project is to utilise as Existing Infrastructure much as possible the existing site infrastructure and only construct new infra
Slide 23: Phase & Processing
Phase 1 & 2 Processing Processing improvements identified through operational performance analysis For personal use only Phase 1 Crushing and Screening Circuit Existing dry and wet processing facilities currently in operations Processing facilities are designed for steady-state production of 1Mtpa P
Slide 24: 'Early Works' Implementation
‘Early Works’ Implementation For personal use only • Upgrade of power supply line and new substation • Wet screening circuit at primary crushing station • Installation of pipeline from new screen to Gravity Processing plant • Staffing up and training programs Sandvik - Underpan New power line Sandvi
Slide 25: 'Early Works' Implementation
‘Early Works’ Implementation For personal use only • Fabrication of new conveying systems to cope with higher throughput • Addition of 2nd Tomra XRT Sorter • Installation of VSI for tertiary crushing of Sorter Concentrate VSI Installation New power line New Conveyors 2nd XRT Sorter 25
Slide 26: Crushing & Screening Phase
Crushing & Screening Phase 2 For personal use only 26
Slide 27: Phase – Expanded Crushing & XRT Sorting Circuit
Phase 2 – Expanded Crushing & XRT Sorting Circuit - In line with 1MTPA extraction permit For personal use only - Allowing for combined feed material from stockpile and open pit 2x XRT Sorters Crushing & Screening Circuit 2x XRT Sorters Crushing 2x XRT & Screening Sorters Circuit Crushing & Screening
Slide 28: Gravity Plant Phase
Gravity Plant Phase 2 For personal use only 28
Slide 29: Strategic, Social and Economic Benefits
Strategic, Social and Economic Benefits A critical minerals project of national significance For personal use only 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
Slide 30: For personal use only
For personal use only Site Contact: Investor Relations: Kevin MacNeill Peter Taylor Chief Executive Officer NWR Communications T: +61 438 542 260 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 M