Mkango Resources Ltd. · TSXV:MKA
Mkango Resources — Investor Presentation (November 2017)
38 slides from Mkango Resources's investor presentation, November 2017
Slide 1: Mkango Resources
MKANGO RESOURCES Raw Materials and Technology for the CleanTech Revolution AIM / TSX-V: MKA Rare Earths Future Innovation NOVEMBER 2017
Slide 2: Disclaimer
This presentation (the “Presentation”) has been prepared by Mkango Resources Ltd (the “Company” or “Mkango”) solely for its use at informational meetings relating to it or is being delivered for information purposes only to a limited number of persons. By attending the meeting where this Presentatio
Slide 3: Disclaimer (continued)
Group (Pty) Ltd., who is a “Qualified Person” in accordance with NI 43-101 and which was filed at www.sedar.com on December 1st 2015. All of the Qualified Persons referred to above are independent of the Company. Certain disclosures contained in or incorporated by reference into this presentation co
Slide 4: Technology Metals from the Warm Heart of Africa
Technology Metals from the “Warm Heart of Africa” Focused on the advanced stage Songwe Hill rare earths project in Malawi Well positioned to benefit from supply demand deficit in NdPr – used in electric vehicles Pre-feasibility study (2015) NPV US$345m; IRR 37% Landmark agreement with Talaxi
Slide 5: Talaxis Funding Structure
Talaxis Funding Structure Mkango Resources Ltd (AIM / TSXV: MKA) 51% 51% - 25% Talaxis Investment: Lancaster Talaxis investment: £2 million for 49% in Newco £12 million for 49% Exploration Ltd two tranches in three tranches to complete Songwe 85% feasibility study Project development Songwe Hill
Slide 6: Corporate Snapshot
Corporate Snapshot Capital Structure Major Shareholders Share Price (16/11): £0.101 / C$0.165 Talaxis (Noble Group) 14.4% Shares Outstanding: ~98.9M RESOC 10.0% Warrants: 43.5M @ £0.066 Leominex1 8.6% 7.6M @ C$0.60 7.8M @ C$0.15 M McNulty 5.1% 0.6M @ £0.035 JXC Ventures 3.7% Options: 7.0M @ C$0.06 R
Slide 7: Experienced Team with Technical, Financial, Legal Expertise
Experienced Team with Technical, Financial, Legal Expertise Mr William Dawes, Chief Executive Officer & Co-founder BSc Geology, MSc Mineral Exploration, Over 20 years experience in exploration, business development, investment banking; prior experience at Rio Tinto, Robert Fleming, Chase Manhattan a
Slide 8: Neodymium and Praseodymium Critical for Permanent Magnet Motors in Electric Cars
Neodymium (Nd) and Praseodymium (Pr) Critical Elements for Permanent Magnet Motors in Electric Cars… “By 2035, we think there will be around 140 million EVs on the roads, or 8% of the total fleet of 1.8 billion.” BHP Billiton, Sept 2016 Total Battery EV Fleet: 2017 – 2 million 2025 – 38 million 2035
Slide 9: Wind Power another Key Demand Growth Area
… with Wind Power another Key Demand Growth Area Forecasts of 2020 global wind power capacity range from 639GW to 879GW versus 433GW in 2015 GWEC Outlook, Oct 2016 China alone targeting a 65GW or 45% increase in wind power capacity to 210 GW in 2020 National Energy Administration, Nov 2016 Last year
Slide 10: Supply Constrained, China Leading Demand
Supply Constrained, China Leading Demand Huge Appetite for NdPr to Supply Expanding Permanent Magnet Production Source: Forbes, June 2017 Source: IEA Global EV Outlook, June 2017 EV demand geared to urbanisation, pollution policy, consumer demand, increasing car ownership – these and other growth
Slide 11: EU vulnerable to Shortages of NdPr
EU vulnerable to Shortages of NdPr Source: European Commission JRC report 2016 - Assessment of potential bottlenecks along the materials supply chain for the future deployment of low-carbon energy and transport technologies in the EU
Slide 12: Malawi – Stable Jurisdiction, Favourable Operating Environment
Malawi – Stable Jurisdiction, Favourable Operating Environment World class, undeveloped rare earth mineral province Transport infrastructure Power developments Politically stable democracy Songwe Hill Uniquely positioned in a rare earths mineral province of global significance 12
Slide 13: Good Road Network, New Rail Line, Dry Port and Power Developments
Good Road Network, New Rail Line, Dry Port and Power Developments 13
Slide 14: Songwe Hill Rare Earth Deposit
Songwe Hill Rare Earth Deposit Long mine life Open pit operation Favourable topography Broad zones of mineralisation Contract mining Readily leachable light and heavy REEs Pre-feasibility study was based on production of high grade, purified mixed chemical concentrate Scanning electron m
Slide 15: Pre-Feasibility Study
Pre-Feasibility Study NPV US$345m and IRR 37% Summary of Key Outputs Total ore mined and processed (tonnes) 8,482,603 Average strip ratio 4.5 Development CAPEX of US$216m Total waste mined (tonnes) 38,441,726 amongst the lowest in the sector Average life of mine TREO grade (%) 1.60 Mine Life (ye
Slide 16: More than 80% of value geared to NdPr and other Magnet Rare Earths
More than 80% of value geared to NdPr and other “Magnet” Rare Earths used in Electric Vehicles, Wind Turbines, HiTech REO in concentrate split by value Yttrium Lanthanum Gadolinium Cerium Europium 2% 5% 2% 1% 8% Terbium 3% Neodymium Dysprosium 53% 12% Praseodymium 14% Neodymium Praseodymium Dysp
Slide 17: Pre-Feasibility Study based on 8.5mt Reserve
Pre-Feasibility Study based on 8.5mt Reserve Total 43-101 Indicated and Inferred Resource of 32mt 2015 Mineral Reserve Estimate (PFS) Conservative Mineral Reserve cut–off grade versus pay limit 1.0% TREO cut off grade (0.51% TREO) Tonnes (million) TREO (%) TREO (tonnes) Mineral Reserve based on
Slide 18: Mine Development – Potential Upside
Mine Development – Potential Upside In-pit Inferred Resources currently treated as waste potential to lower strip ratio and operating costs, extend mine life – will be focus of infill drilling during BFS 18
Slide 19: Radiometric Survey Highlights Potential to Expand Resource
Radiometric Survey Highlights Potential to Expand Resource Area of mineralised outcrop with grab Current area of sampling and drill defined some historical Indicated and drilling Inferred Resource Estimate Stage 1 & 2 drill holes superimposed on thorium / potassium radiometrics 19
Slide 20: Further Rare Earths Exploration Potential in Licence Area
Further Rare Earths Exploration Potential in Licence Area 20
Slide 21: Scope of Bankable Feasibility Study
Scope of Bankable Feasibility Study Infill, geotechnical and exploration drilling – updated 43-101 resource Environmental, social and health impact assessment (ESHIA) Flotation and hydrometallurgical flowsheet optimisation Evaluation of partial separation to produce NdPr product Pilot test
Slide 22: Collaboration with Metalysis – Focused on NdPr Magnet Alloys
Collaboration with Metalysis – Focused on NdPr Magnet Alloys for Electric Vehicle and 3D Printing Applications BENEFICIATION HYDROMET SEPARATION Mineral Chemical NdPr Ore NdPr alloys concentrate concentrate oxide Songwe Hill Rare Earths Project, Malawi Metalysis JV, UK Uniquely positioned in the rar
Slide 23: Metalysis' Solid State Process to Produce Alloys
Metalysis’ Solid State Process to Produce Alloys – Significant Advantages Versus Traditional Routes Phase 1 R&D Successfully produced a NdFeB alloy powder using the Metalysis technology – Phase 2 R&D commencing 23
Slide 24: Key Advantages of Metalysis' Technology
Key Advantages of Metalysis’ Technology Solid state technology – no melting required to produce alloy Semi-batch multi metal capability Modular – commercially proven at scale Tight controllability – tailored particle sizes for huge number of alloy compositions Cleaner and greener than trad
Slide 25: Current Work Programme and Next Steps
Current Work Programme and Next Steps Definitive investment and joint venture agreements with Talaxis Commence bankable feasibility study Phase II development programme with Metalysis A member of the Noble Group 25
Slide 26: Thambani Uranium-Tantalum-Niobium Project
Thambani Uranium-Tantalum-Niobium Project 26
Slide 27: Thambani Project - Work Completed to Date
Thambani Project - Work Completed to Date Thambani East Ridge Thambani West Ridge Review of historical data Acquisition of Landsat7 and ASTER satellite imagery Geochemical grab sampling Geological mapping Re-trenching and systematic trench - sampling program Radiometric and magnetic surv
Slide 28: Thambani Uranium – Tantalum – Niobium Mineralisation
Thambani Uranium – Tantalum – Niobium Mineralisation Thambani uranium mineralisation is Assays from the 20 highest grade U3O8 samples from the May 2017 Thambani Thambani sampling East programme Ridge syenite gneiss hosted in: Sample no. U3O8 % Ta2O5 % Nb2O5 % U3141 3.26 1.90 5.92 a) main Thambani
Slide 29: Airborne Uranium Radiometric Anomalies at Thambani
Airborne Uranium Radiometric Anomalies at Thambani 29
Slide 30: Recent CSR Initiatives
Recent CSR Initiatives 30
Slide 31: Recent Corporate Social Responsibility initiatives
Recent Corporate Social Responsibility initiatives boNGO Worldwide partnership Happy Classrooms project Enhancing 3 local primary schools 24 classrooms painted Annual Scholarship programme Pays Secondary Education Fees for the top Before - An unhappy classroom After - A happy classroom after
Slide 32: Mkango donates items to flood victims (press clipping)
12 BUSINESS THE DAILY TIMES, Thursday, January 29, 2015 Mkango donates K items to flood victi BY CAROLINE KANDIERO KANGO Resources, explorers of rare earth elements at Songwe Hill in Phalombe, has donated various items worth K6.2 million t0470 houscholds who were hit by floods some weeks ago around
Slide 33: Rare earth prospector donates pigeon pea seed to farming families
NEWS 8 INSIGHT danvary 20 MINING REVIEW MINING REVIEW Sousry 2015 NEWS & INSIGHT ¢ Rare earth prospector donates pigeon pea seed to 1,000 farming families Mkango aiming to introduce commercial farming to subsistence farming communities eango Iw the Songwe ava, cur ly farmers would beable tend poset
Slide 34: Mineral Resource Estimates
Mineral Resource Estimates 34
Slide 35: In-situ Mineral Resource estimates at 1.0% TREO cut-off grade
In-situ Mineral Resource estimates at 1.0% TREO cut–off grade1 In-situ Indicated Mineral Resource at 1% TREO Cut-Off Indicated Million La2O3 Ce2O3 Pr2O3 Nd2O3 Sm2O3 LREO Eu2O3 Gd2O3 Tb2O3 Dy2O3 Ho2O3 Er2O3 Tm2O3 Yb2O3 Lu2O3 Y2O3 HREO TREO TREO Th U Tonnes ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm
Slide 36: In-situ Mineral Resource estimates at different cut-off grades
In-situ Mineral Resource estimates at different cut–off grades1 In-situ Indicated Carbonatite Mineral Resource Cut-Off Million La2O3 Ce2O3 Pr2O3 Nd2O3 Sm2O3 LREO Eu2O3 Gd2O3 Tb2O3 Dy2O3 Ho2O3 Er2O3 Tm2O3 Yb2O3 Lu2O3 Y2O3 HREO TREO TREO Th U %TREO Tonnes ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm pp
Slide 37: REO distribution at different cut-off grades
REO distribution at different cut-off grades1 In-situ Indicated Carbonatite Mineral Resource - REO Distributions at 0.5%, 1.0% and 1.5% TREO Cut-Offs Cut-Off La2O3 Ce2O3 Pr2O3 Nd2O3 Sm2O3 Eu2O3 Gd2O3 Tb2O3 Dy2O3 Ho2O3 Er2O3 Tm2O3 Yb2O3 Lu2O3 Y2O3 Total HREO %TREO % % % % % % % % % % % % % % % % % 0.
Slide 38: Contact Details
Contact Details William Dawes Alexander Lemon Chief Executive President will@mkango.ca alex@mkango.ca Mkango Resources Ltd. Calgary Office www.mkango.ca 706 27 Avenue NW, Twitter: @MkangoResources Calgary, Alberta Canada + 1 403 444 5979 T2M 2J3 Canada 38
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