Northern Minerals Limited · ASX:NTU
Northern Minerals — Mines & Money Hong Kong 2014
29 slides from Northern Minerals's conference presentation, Mar 25, 2014
Slide 1: Mines & Money, Hong Kong
For personal use only Mines & Money, Hong Kong George Bauk Managing Director / CEO MARCH | 2014 | ASX:NTU 1
Slide 2: Important Notice
Important Notice For personal use only This presentation has been prepared by Northern Minerals Limited (“Northern Minerals” or the “Company”). It should not be considered as an offer or invitation to subscribe for or purchase any securities in the Company or as an inducement to make an offer or inv
Slide 3: Capital Structure
Capital Structure For personal use only ASX Code: NTU Major Shareholders Ordinary Shares 407M Australia Conglin International Investment Group 45.5% Listed Options (NTUOB) 67M Other Board & Management 4.0% Top 40 Shareholders 73.9% Unlisted Options and Performance Rights 18M #All in Australian Dolla
Slide 4: Value Proposition
Value Proposition For personal use only Neodymium Dominance of Heavy 3.15% Cerium 4.77% Rare Earths, 84% Lanthanum 1.91% Europium 0.44% Praseodymium Lutetium 0.68% 0.60% Thulium 0.74% Terbium 1.32% Holmium Simple Beneficiation 1.84% 25 times upgrade Samarium 2.12% Ytterbium 4.39% Yttrium Erbium 58.2
Slide 5: Competitor Comparison
Competitor Comparison For personal use only LRE v HRE Comparative Percentage Distribution Company/Project/Country HRE v LRE Comparitive Value Distribution IONIC CLAYS, Longnan NORTHERN MINERALS Namibian Rare Earths Tasman IONIC Clays, Xinfeng Ucore IONIC Clays, Guandong Avalon Alkane IONIC Clays, Ji
Slide 6: Australia: A Mining Country
Australia: A Mining Country For personal use only Darwin Western Australia N ranked as the Wyndham WORLD’S MOST Kununurra ATTRACTIVE Broome Halls Creek Project: JOHN GALT investment destination Project: BROWNS RANGE by the Fraser Institute of Project: BOULDER RIDGE Mining Companies, 2013 6
Slide 7: The RE marketing landscape
The RE marketing landscape For personal use only HRE suppliers reporting upward Chinese government stockpiling HRE pressure in demand HRE while prices are low ning Upwards Pressure Import Market ProductionStockpiling Phase Prices AboveIllegal Mining HRE HRE Focus Lower Upwards cost base Pressure Imp
Slide 8: HRE: A vital part of our lives
HRE: A vital part of our lives For personal use only 8
Slide 9: NdFeB Permanent Magnets
NdFeB Permanent Magnets For personal use only Magnets Rare Earths Essential for 66 65 60 59 Hybrid & Electric Vehicles Dy Tb Nd Pr Toyota Prius ~11kg of rare earths Dysprosium Terbium Neodymium Praseodymium 9
Slide 10: Conventional Process Components
Conventional Process Components For personal use only Open Pit & Xenotime Grinding Magnetic Flotation Underground Ore Crushing Separation MINING BENEFICIATION Stored Mineral Concentrate Tailings Purification Exportation Containerised Mixed Calcination Sulphation Rare Earth Oxide Oxalate Water Leach
Slide 11: Licence to Operate
Licence to Operate For personal use only Indigenous Native Environmental Employment Title Community Forum in Cultural Awareness Training – Halls Creek – May 2013 Smoking Ceremony 11
Slide 12: Browns Range Dome
Browns Range Dome For personal use only The dome is a major geological feature covering 1,500km2 60km x 30km HRE mineralised faults/ breccias probably developed during late stages of doming 12
Slide 13: 357% Growth in Mineral Resource
357% GROWTH in mineralDiscovery Greenfield resource in 2010 since 37,497,000kg 2012 TREO added from 2013 drilling campaign For personal use only 47,997,000kg contained TREO 357% Wolverine 50,000,000kg Gambit West TREO 00 Area 5 1,204,0 0 Gambit 4,177,00 40,000,000kg 00 GROWTH 28,084,000kg 4,347,0 TR
Slide 14: Browns Range JORC Compliant Mineral Resource
Browns Range JORC Compliant Mineral Resource For personal use only 4,017,600kg Dy 66% of resource 84% HREO Dysprosium is indicated content Deposit Category Mt TREO TREO Dy2O3 Y2O3 Tb4O7 HREO TREO % kg/t kg/t kg/t kg/t % kg *Indicated 4.37 0.72 7.2 0.61 4.07 0.09 83 31,615,000 Browns Range Inferred 2
Slide 15: Wolverine Resource Upgrade: 264% increase
Wolverine Resource Upgrade: 264% increase* For personal use only Category Mt TREO TREO Dy2O3 Y2O3 Tb4O7 HREO TREO % kg/t kg/t kg/t kg/t % kg Indicated 2.66 0.89 8.9 0.78 5.17 0.12 89 23,705,000 Inferred 1.80 0.81 8.1 0.67 4.45 0.10 87 14,564,000 Total1 4.46 0.86 8.6 0.74 4.88 0.11 88 38,269,000 DEPO
Slide 16: Delivering on HRE Strategy
Delivering on HRE Strategy For personal use only 2010 2011 2012 2013 2014 16
Slide 17: Pathway to Production
Pathway to Production For personal use only 2014 2015 2016 JORC Resource Drilling Mining Lease & Land Access Primary Environmental Assessment (EPA) Secondary Approvals (DMP, DEC, DoW etc) Metallurgy Test work Pre-feasibility Study Feasibility Study Off-take Agreements Funding & Decision to Proceed E
Slide 18: Funding Update
Funding Update For personal use only In 2014: Appointed PCF as corporate advisor Raised Cash at Bank, 17 March 2014 $6.5M* $5.3M * # Complete funding needs for 2014 including: • 16% sale of Browns Range $26M* 17 MARCH 2014 Evaluate Funding options for development of Browns Range #$2.4M subject to sh
Slide 19: Browns Range: The new HRE province
Browns Range: The new HRE province For personal use only Neodymium 3.15% Cerium Increased JORC Compliant 4.77% Lanthanum Europium Resources by 70% 1.91% 0.44% Praseodymium Lutetium to 47,997,000kg TREO 0.68% 0.60% Thulium 0.74% Terbium 1.32% Holmium 1.84% Competitive Advantage Samarium 2.12% Benefic
Slide 20: APPENDICES
For personal use only APPENDICES 20
Slide 21: HRE Pathway of Prospects
HRE Pathway of Prospects For personal use only Production Reserves Gambit Wolverine Current Current Resource Resource West 47,997,000kg TREO Resources Gambit Area 5 10,500t TREO Area 5 North Cyclops Dazzler Nightcrawler Significant Drilling Intersections Banshee John Galt (Main Zone) Mystique Furthe
Slide 22: John Galt HRE Project
John Galt HRE Project For personal use only " Rock chip samples up to 42% TREO with approximately 95% Heavy REO " Preliminary metallurgical tests indicate excellent recovery rates (>90%) with potential for concentrate grades >40% " High grade mineralisation in talus (scree) material – hard-rock sour
Slide 23: Boulder Ridge HRE Project
Boulder Ridge HRE Project For personal use only " Rock chip samples from the Boulder Ridge project confirm high-grade Heavy Rare Earths (HRE) " Best results exceed 12% TREO, including up to 1.15% Dysprosium, with a dominance of HRE – up to 99%. " Follow-up exploration program planned to commence in
Slide 24: Finalising the Flowsheet
Finalising the Flowsheet For personal use only Beneficiation circuit " 90 tonne pilot plant completed on 2 process options: " Magnetic separation followed by cleaner flotation " Whole of ore flotation 90 tonne Beneficiation Pilot Plant trial " 2.2 tonne mineral concentrate produced conducted at SGS
Slide 25: Licence to Operate
Licence to Operate For personal use only " Stakeholder engagement plan developed and implemented. Second Stage local community forums planned for 2nd quarter 2014. " Employing people from local communities of Ringer Soak and Halls Creek Community Forum in Halls Creek – May 2013 " Cultural Awareness
Slide 26: Competitive Advantage
Competitive Advantage For personal use only >92% TREO achievement 0.86% TREO and simple 20% TREO delivered in bench and pilot in bench test work with mineralogy* test work with recovery up to 90% recovery of 88% This is NTU’s competitive advantage as High grade feed using conventional hydromet proce
Slide 27: NdFeB Permanent Magnets
NdFeB Permanent Magnets For personal use only " Dysprosium's primary clean energy use is as an additive to NdFeB Permanent Magnet Rare Earths Essential for Hybrid & Electric Vehicles " Magnet sector is currently about 40% of total Toyota Prius rare earth consumption ~11kg of rare earths " Up to 6% o
Slide 28: The Right Leadership
The Right Leadership For personal use only A wealth of experience to lead the Northern Minerals from explorer to production BOARD OF DIRECTORS Conglin Yue – Executive Chairman George Bauk - Managing Director / CEO • Long standing relationship with a number of major steel producing • More than 20 yea
Slide 29: The Right Management
The Right Management For personal use only Relevant range of experience and expertise to develop and commercialise the Browns Range Project EXECUTIVE MANAGEMENT TEAM Robin Wilson – Exploration Manager Robin Jones – Project Manager • Geologist, with 20 years experience in Australia and Africa. • More