Vital Metals Ltd · ASX:VML
Vital Metals — Shareholder Meeting (November 2020)
26 slides from Vital Metals's shareholder meeting presentation, Nov 26, 2020
Slide 1: Rare Earth Production Commencing 2021 - AGM Presentation
www.vitalmetals.com.au | ASX:VML For personal use only Rare Earth Production Commencing 2021 AGM Presentation November 2020 Investor Presentation August 2020 Annual General Meeting 2020 November 2020
Slide 2: Disclaimer
Disclaimer For personal use only This presentation provides an overview of prospective rare earth projects (“the Projects”) and development opportunities and contains “forward looking statements”. Forward-looking statements are all statements other than statements of historical fact included in this
Slide 3: Largest independent supplier of clean mixed rare earth feedstock outside China
VML is targeting to be the largest independent supplier of clean mixed rare earth feedstock outside of China For personal use only Highlights Aspirational Targets • Operations commencing 2021 • Maximum total construction cost to produce rare earth carbonate of A$20M • Aim for the production of a min
Slide 4: Company Overview
Company Overview For personal use only Capital Structure ASX Code VML Shares on Issue 2,629m Performance Shares 800m Performance Rights and Options on Issue 443m Share Price (as 13 Nov 2020) $0.028 Market Capitalisation $73.6m Cash (30 Sept 2020) $1.2m ($8m raised October 2020) Shareholder Breakdown
Slide 5: Vital's senior management are world experts in developing rare earth projects
Vital’s senior management are world experts in developing rare earth projects For personal use only Senior Management GEOFF ATKINS TONY HADLEY MATHEW EDLER RAY ANGUELOV Managing Director Chief Operating Officer Executive VP Corporate Canada Operations Development Manager 25 years of project and corp
Slide 6: Vital has evolved from a rare earth concept to the cusp of production
Vital has evolved from a rare earth development concept in 2015 to today being on the cusp of production For personal use only 6 Annual General Meeting 2020 November 2020
Slide 7: The traditional development model requires considerable time and capital
The traditional development model requires considerable time and capital For personal use only Traditional Project Development Model Time Taken to Develop Projects • Financing, contracting, construction and commissioning 4+ years • Projects are complex and require 2-3 years to achieve design capacit
Slide 8: Strategy to generate low cost near-term cashflow to fund large scale operations
Vital’s strategy is to generate low cost near-term cashflow to fund the development of large scale operations For personal use only Vital’s 3 Stage Development Strategy and Aspirational Targets Stage 1: Nechalacho North T • Near term/low capex Demonstration Plant to finalise customer acceptance Requ
Slide 9: Implementation Stage 1: Near Term/Low Capex Production
For personal use only Implementation Stage 1: Near Term/Low Capex Production > Nechalacho North T Project > Total Target Capital Cost: Less than $20M > Production scheduled to commence mid 2021 > Fund expansion from the sale of Mixed RE Carbonate 9 Annual General Meeting 2020 November 2020
Slide 10: Nechalacho is a world class rare earth project in Northwest Territories, Canada
The Nechalacho project is a world class rare earth project located in Northwest Territories, Canada For personal use only Large World Class REO Resource • 94.7MT at 1.46% REO (measure, indicated and inferred) Tier 1 Mining Jurisdiction Excellent Infrastructure • Located 100km from Yellowknife • 40 p
Slide 11: Nechalacho consists of two distinct zones, T Zone and Tardiff Zone
The Nechalacho project consists of two distinct zones, the T Zone and Tardiff Zone For personal use only 11 Annual General Meeting 2020 November 2020
Slide 12: The project has world-class existing infrastructure
The project has world-class existing infrastructure For personal use only Access to Canadian National Railway at Hay River Drill Rig being de-mobilised on the Nechalacho Ice Road 40 Person Camp on Thor Lake Drill rig being mobilised via barge 12 Annual General Meeting 2020 November 2020
Slide 13: North T Zone is one of the highest grade rare earth deposits
The North T Zone is one of the highest grade rare earth deposits in the world For personal use only North T Resource Resource Type Kt LREO (%) Pr6O11 (%) Nd2O3 (%) Measured 68 9.6% 0.5% 1.8% Indicated 33 7.8% 0.4% 1.5% Inferred 4 5.8% 0.3% 1.1% Total 105 8.9% 0.5% 1.6% Light Rare Earth Mineral Resou
Slide 14: Process test work produced high concentrate grades and recoveries
Process test work produced both high concentrate grades and recoveries For personal use only Process Testwork Concentrate sample via sorting Ore Sorting via X-Ray transmission (single pass) • 36% REO concentrate produced from 10.5% REO • Grades up to 41% REO achieved • REO recoveries up to 87% achie
Slide 15: Installed capital cost of the ore sorter estimated at A$3.7M
A detailed engineering report has estimated the installed capital cost of the ore sorter to be A$3.7M For personal use only Ore Sorting ITEM DESCRIPTION AUD$ 000 1 Ore Sorter 1,395 2 Materials Handling Equipment 863 • Detailed engineering for the ore sorting operation is complete 3 Generator and Air
Slide 16: Vital and SRC signed a binding Term Sheet for Rare Earth Extraction Plant
Vital and SRC have signed a binding Term Sheet to progress For personal use only Rare Earth Extraction Plant RE Extraction Plant Construction and Operation Term Sheet SRC Rare Earth Processing Facility • Term Sheet signed between VML and Saskatchewan Research • The Government of Saskatchewan and SRC
Slide 17: North T development on schedule for operations to commence in 2021
The development of the North T project is on schedule for operations to commence in 2021 For personal use only Next Steps • Finalisation of definitive agreements for the construction and operation of a Rare Earth Extraction Facility to produce Mixed rare Earth Carbonate product for sale • Commence s
Slide 18: Implementation Stage 2: Long Term/Large Scale Production
For personal use only Implementation Stage 2: Long Term/Large Scale Production > Nechalacho Tardiff Project > Aim for Production of 5,000t REO/yr for 20 years > Operations targeted to commence in 2024 18 Annual General Meeting 2020 November 2020
Slide 19: Sales revenue from North T will fund development at Tardiff
Sales revenue from North T will be used to fund the development at Tardiff For personal use only North T Tardiff Zone Resource Type Mt TREO (%) HREO/TREO %NdPr/TREO • The Upper Zone resource will be the focus of a large scale, long- term operation (95Mt @ 1.46% TREO Measured 0.287 2.729% 7.7% 24.1%
Slide 20: With mineralogy similar to North T, development will be fast tracked
With mineralogy similar to the North T Zone, development will be fast tracked For personal use only Tardiff Zone Development of the Tardiff Zone will be leveraged off the North T project • The Tardiff Zone contains red basnaesite crystals similar to the North T Deposit (refer image) • As with North
Slide 21: Implementation Stage 3: Wigu Hill
For personal use only Implementation Stage 3: Wigu Hill 21 Annual General Meeting 2020 November 2020
Slide 22: Wigu Hill targeted as second rare earth project to enter production
Wigu Hill Project (90%) is targeted as VML’s second rare earth project to enter production For personal use only Excellent Infrastructure • Rail and power within 10km of project Previous Owners spent US$10m+ • Acquired for US$1m in 2018 Potential to be a large world class resource • Current high gra
Slide 23: Initial focus for Wigu Hill will be the Twiga deposit
The initial focus for the Wigu Hill Project will be the Twiga deposit For personal use only Wigu Hill contains a historical NI43-101 Resource of 3.3M @ 2.6%REO ZONE MT TREO (%) LA2O3 % CEO2 % PR6O11 (%) ND2O3 (%) Twiga NE 1.6 2.6% 0.98% 1.26% 0.1% 0.23% Twiga SW 0.5 3.6% 1.33% 1.71% 0.13% 0.3% Tembo
Slide 24: Twiga deposit contains large, discrete bastnaesite crystals
Similar to Nechalacho’s T Zone the Twiga deposit contains large, discrete bastnaesite crystals For personal use only Excellent Infrastructure Bastnaesite mineralisation • Located close to Tazara railway, power and water • Amenable to beneficiation via ore sorting • Ability to leverage off Nechalacho
Slide 25: Vital is on track to be the world's next rare earth producer
Vital is on track to be the world’s next rare earth producer For personal use only Conclusion Work Class Rare earth Development Team - ex Lynas Corporation • Led by Vital Metals MD Geoff Atkins 2 World Class Projects • Nechalacho REO Project (Canada): 95Mt at 1.46% TREO • Wigu Hill (Tanzania): 3.3Mt
Slide 26: Contact us
For personal use only Contact us Geoff Atkins Managing Director vital@vitalmetals.com.au +61 2 8823 3100 26 Annual General Meeting 2020 November 2020