Eq Resources Limited · ASX:EQR
Eq Resources — Carbine Tungsten — Shareholder Meeting (November 2017)
30 slides from Eq Resources's shareholder meeting presentation, Nov 29, 2017
Slide 1: Carbine Tungsten Limited 2017 Annual General Meeting
Carbine Tungsten Limited ASX Code: CNQ 2017 Annual General Meeting 29 November 2017
Slide 2: Disclaimer
2017 ANNUAL GENERAL MEETING DISCLAIMER Forward Looking Statements Some statements in this presentation relate to the future and are forward looking statements. Such statements may include, but are not limited to, statements with regard to intention, capacity, future production and grades, projection
Slide 3: Agenda
AGENDA 1. Chairman’s Welcome 2. Housekeeping 3. Notice of Meeting to be Taken as Read 4. Minutes of 2016 AGM 5. Resolutions 6. Executive Chairman’s Report 7. Other Business 8. Meeting Close Page 2
Slide 4: Chairman's Introduction: Board of Directors
CHAIRMAN’S INTRODUCTION Board of Directors Russell Krause Rolly Nice Stephen Layton Executive Chairman Non-executive Director Non-executive Director Capital Structure Top 5 Shareholders ASX Code CNQ Dr Leon Eugene Pretorius 7.46% Share Price (52 Week High/Low) $0.025 - $0.007 Bodie Investments Pty L
Slide 5: Welcome Non-Executive Director Stephen Layton
CHAIRMAN’S INTRODUCTION Welcome Non-Executive Director STEPHEN LAYTON Appointed 14 November 2017 • 35 years’ experience in Equity Capital Markets in the UK and Australia. Became a Member of the London Stock Exchange in 1985. • Since 1986, worked with various Australian stockbroking firms and/or AFSL
Slide 6: Diversification Strategies
DIVERSIFICATION STRATEGIES The following diversification strategies were successfully implemented during the 2016 -2017 Financial Year: Gold Exploration Licences acquired in New South Wales Chilean Exploration Concessions (each concession = 3km x 1km): • Miraje 1-5 (Granted) • Bellavista 1-5 (In
Slide 7: Gold Exploration Licences
GOLD EXPLORATION LICENCES GOLD Two gold prospects acquired in New South Wales during September 2016: • Exploration Licence 6648 – Crow Mt. • Exploration Licence 8024 – Panama Hat Above map shows maximum gold values obtained by rock chip or mineralised rocks by previous explorers on EL 8024. Location
Slide 8: Gold - EL 8024 Panama Hat
GOLD EXPLORATION LICENCES GOLD – EL 8024 PANAMA HAT • About 30km south east of Broken Hill covering ~80% of the historical gold workings in the Broken Hill district. • Workings mostly date from 1931-1935 and occur along an arcuate line of quartz veining with associated iron oxides. • Sericitic alter
Slide 9: Gold - EL 8024 Panama Hat
GOLD EXPLORATION LICENCES GOLD – EL 8024 PANAMA HAT • Mapping and surface sampling of old workings carried out during April 2017. • Confirmed consistency of high grade gold assays ranging up to 84.4 g/t Au obtained in previous sampling and the significant potential for shallow, oxide gold mineralisa
Slide 10: Gold - EL 8024 Panama Hat
GOLD EXPLORATION LICENCES GOLD – EL 8024 PANAMA HAT Page 9
Slide 11: Gold - EL 8024 Panama Hat
GOLD EXPLORATION LICENCES GOLD – EL 8024 PANAMA HAT Table 1. Summary of gold analyses, Panama Hat EL8024WEI-21 PUL-QC Au-AA21 Au-AA25 SAMPLE Recvd Wt. Pass75um Au Au DESCRIPTION Northing WGS84 Easting WGS84 Elevation kg % ppm ppm AW PH 10 6441161 554105 191 0.33 >1.00 35.1 AW PH 11 6441200 554593 18
Slide 12: Gold - EL 6648 Crow Mt.
GOLD EXPLORATION LICENCES GOLD – EL 6648 CROW MT. • Approximately 20km south east of Barraba in northern NSW. • Straddles part of the Peel Fault, a major structure that geologically separates the New England Province from the Tamworth Trough to the west. • Contains numerous historical shallow gold w
Slide 13: Gold - EL 6648 Crow Mt.
GOLD EXPLORATION LICENCES GOLD – EL 6648 CROW MT. Fresh mapping, sampling and a review of previous exploration results undertaken by Carbine provided the following exciting new insights: • Gold has been leached from the surface meter or two by intense weathering in the past and surface sampling does
Slide 14: Gold - EL 6648 Crow Mt.
GOLD EXPLORATION LICENCES GOLD – EL 6648 CROW MT. Table 2. Gold assays from samples of dumps associated with deeper historical workings in EL 6648 Sample Easting Northing Description Au – AA25,gm/t Silicified, quartz veined with breccia 214 286738 6624693 texture rock – minor limonite 2.43 215 28673
Slide 15: Lithium Exploration Concessions: Lithium
LITHIUM EXPLORATION CONCESSIONS LITHIUM (SYMBOL LI) • Previous main application in glass manufacture ~ $200/t lithium carbonate or direct shipping ore (>4.5% Li). • Major growth potential in lithium batteries: price spike to $20,000 per tonne. • The current upsurge in lithium exploration will undoub
Slide 16: Lithium Exploration Concessions
LITHIUM EXPLORATION CONCESSIONS Page 15
Slide 17: Lithium Exploration Concessions: Chile
LITHIUM EXPLORATION CONCESSIONS CHILE Exploration has been carried out in several salars for resources contained within subsurface brines that may include potassium, iodine, boron, lithium and other valuable minerals. • Salar de Miraje 1-5: - Exploration Concessions Granted. Salar de Miraje - 4 sa
Slide 18: Lithium Exploration Concessions: Chile
LITHIUM EXPLORATION CONCESSIONS CHILE Table 1. Summary of analyses of salt crust samples, Salars de Miraje and Bella Vista Element Li Mg K Na B Ca S As Sb Mo Cu Zn Pb Ag Fe P Mn Al Measure ppm % % % ppm % % ppm ppm ppm ppm ppm ppm ppm % ppm ppm % Salar de Miraje L16 90 0.39 0.18 0.22 110 9.69 8.33 4
Slide 19: Tungsten Exploration Permits, Mt Carbine, Queensland
TUNGSTEN EXPLORATION PERMITS MT CARBINE, QUEENSLAND Mining Leases ML 4867 & ML 4919 • Two prospects, Iron Duke and Petersen’s Lode, exist within EPM 14871 and 14872 and in the case of Iron Duke, the mining leases. EPM 14872 • These prospects are dominated by scheelite mineralisation. • Mapping and s
Slide 20: Iron Duke - Mt Carbine EPM 14872
IRON DUKE – MT CARBINE EPM 14872 • Present resource estimate (refer Slide 26) does not include any Iron Duke mineralisation. Lies within the planned open-cut envelope. Present mapped Low grade extent of Iron • Average true width 8m from 6 drill holes Duke prospect stockpile with an average weighted
Slide 21: Petersen's Lode - Mt Carbine EPM 14872
PETERSEN’S LODE - MT CARBINE EPM 14872 • Lies within EPM 14872 and is ~1-2km south-east of Mt Carbine. • Sub-vertical zone of scheelite mineralisation hosted by sheared and altered metasediments traced for 1.3 km along the strike. • More detailed exploration is planned. • Only record of production i
Slide 22: Tungsten: Industrial Enabling Metal with Strategic Importance
TUNGSTEN.... INDUSTRIAL ENABLING METAL WITH STRATEGIC IMPORTANCE Aeronautical & Automobile Manufacturing With a density of 19.25 g/cm3, tungsten is also among the heaviest metals. Rail & Heavy Earthmoving Highest melting point of all metals at 3,422 ± 15 oC and a boiling point which corresponds appr
Slide 23: Tungsten Market
TUNGSTEN MARKET The tungsten APT (Ammonia Para Tungstate) price rose rapidly during the 3rd quarter of 2017 to reach a high of $335 (per 10kg MTU) by mid-September 2017. Source SP Angel Page 22
Slide 24: Tungsten Market
TUNGSTEN MARKET • Primary reason for the recent significant price increase appears to be that China, being the dominant supplier of the world’s APT, is undergoing a restriction of supply which has resulted in increased production costs for tungsten concentrates and APT product due to increased envir
Slide 25: Tungsten Market: What It Means for Mt Carbine
TUNGSTEN MARKET What does this mean for the Mt Carbine Project: • Preliminary discussions have been held with several interested globally represented potential offtake parties. • The Company has also been investigating the viability of recommissioning and recommencing production at its Tailings Retr
Slide 26: Mt Carbine Mine - Overview
MT CARBINE MINE - OVERVIEW Location Located 130km by sealed highway from the port of Cairns in North Queensland, Australia. Mt Carbine Mining Leases cover ~367 hectares. Page 25
Slide 27: Mt Carbine Tungsten Project
MT CARBINE TUNGSTEN PROJECT Tailings Retreatment Plant Low Grade Stockpile Mining Leases cover ~ 367 hectares 2012 JORC Compliant Resource Resource Summary - July 2014 (No Change from 2014) Tungsten Resource as WO3 Cut-off Grade Tonnes WO3 WO3 Resource Resource Open Pit Low Grade Stockpile Indicated
Slide 28: Mt Carbine Tungsten Project - Overview
MT CARBINE TUNGSTEN PROJECT - OVERVIEW Mt Carbine Project Outline KEY FINDINGS RECAPPED NPV $161 million • 2012 Feasibility Study confirmed the technical and Resource financial feasibility of the Mt Carbine Project. Mine 47Mt @ 0.13% WO3 • Pre-tax Internal Rate of Return (IRR) of 60%. Stockpile 12Mt
Slide 29: Proposed Acquisition Update: Mt Carbine Quarry
PROPOSED ACQUISITION UPDATE MT CARBINE QUARRY • Registered valuer appointed. • Mt Carbine Quarries Pty Ltd - Established business operating for over 20 years within the Mt Carbine Mining Leases. • Has a stockpile of mined rock that has been processed through an optical ore sorter amounting to ~6Mt,
Slide 30: 2017-2018 Outlook / Thank-you
2017 - 2018 OUTLOOK • Resource market conditions continue to improve; • Commodity prices are generally stronger; • Broader asset portfolio achieved; • Company repositioned to take full advantage of improving market conditions via its diversified exploration portfolio; • Future corporate activities i
Carbine Tungsten — Shareholder Meeting (November 2017) on 6ix