Ionic Rare Earths Limited · ASX:IXR
Ionic Rare Earths — Investor Presentation (July 2020)
29 slides from Ionic Rare Earths's investor presentation, Jul 20, 2020
Slide 1: Advancing the Makuutu Rare Earths Project
For personal use only Investor Presentation Advancing the Makuutu Rare Earths Project 20 July 2020
Slide 2: Important Notice and Disclaimer
Important Notice and Disclaimer For personal use only This presentation should be considered in its entirety. If you do not understand the material contained in this presentation, you should consult your professional advisors. The sole purpose of this presentation is to provide shareholders with an
Slide 3: A Major, Low-Cost Rare Earths Development Opportunity
A Major, Low-Cost Rare Earths Development Opportunity For personal use only IXR acquiring up to 60% of the Makuutu Rare Earths Project • Makuutu is a strategically / geopolitically significant Rare Earth Elements (“REE”) project located in Uganda • Project at advanced exploration and development stu
Slide 4: Updated Mineral Resource Estimate
Updated Mineral Resource Estimate For personal use only • 903m of drilling in 2019 and 2020 defining MRE • Makuutu Mineral Resource Estimate1 reported above a 300 ppm TREO less Ce2O3 marginal cut-off grade • MRE only contains Clay domain • Potential for significant resource extension with additional
Slide 5: Ionic Rare Earths Limited Corporate Snapshot
Ionic Rare Earths Limited Corporate Snapshot For personal use only CAPITAL STRUCTURE (As At 17/07/2020) SHARE PRICE (ASX: IXR) (Last 12 months) Covid-19 Shares Outstanding 2,473,828,050 0.014 0.012 472,000,000 0.01 Total Options Outstanding (exercisable at 0.75 to 1.8 cents) 0.008 0.006 Share Price
Slide 6: An Advanced Stage Project Opportunity
An Advanced Stage Project Opportunity For personal use only IXR earning into Rwenzori Rare Metals Ltd. (RRM, Ugandan), which holds 100% of the Makuutu Rare Earths Project: • Ionic Rare Earths – 31% currently (earning up to 60%) • Rare Earth Elements Africa (REEA) (currently 59% and reducing) • Ugand
Slide 7: A Clear Focus on Efficient, Timely and Successful Development
A Clear Focus on Efficient, Timely and Successful For personal use only Development “Through the technical expertise of the executive and in-country team, Ionic Rare Earths aims to systematically de-risk, develop and advance the Makuutu Rare Earths Project up the value curve” For Success, attractive
Slide 8: Ionic Clay REE vs. Hard Rock REE Projects
Ionic Clay REE vs. Hard Rock REE Projects For personal use only Significant project and cost advantages associated with ionic clay projects like Makuutu MINING/PROCESSING STAGES IONIC ADSORPTION CLAY-HOSTED REE HARD ROCK-HOSTED REE Soft material, negligible (if any) blasting Hard rock; MINERALISATIO
Slide 9: Makuutu Basket – Strategic Alternative for CREO/HREO
Makuutu Basket – Strategic Alternative for CREO/HREO For personal use only • Product generated from metallurgical optimisation testwork1 infers La; 13.0% basket price of approx. US$34.40/kg REO using June 2020 spot pricing2 Y; 25.9% • Ionic Adsorption Clay (IAC) products achieve payability of 70-80%
Slide 10: Tier-One Infrastructure already there!
Tier-One Infrastructure already there! For personal use only Logistics ✓ Approximately 10 km from Highway 109, connecting Makuutu to both capital city Kampala and Port of Mombasa, Kenya ✓ Approximately 20 km from rail line connecting to Port of Mombasa Power ✓ Large hydroelectric generation capacity
Slide 11: Development highlights since Acquisition
Development highlights since Acquisition For personal use only • Announcing an updated Mineral Resource of 76.8 Mt @ 840 ppm Total Rare Earths Oxide (TREO) 1, at a cut-off grade of 300 ppm TREO-Ce2O3; while maintaining its Exploration Target at: 270 - 530 million tonnes grading 0.04 – 0.1% (400 – 1,
Slide 12: Near Surface Mineralisation
Near Surface Mineralisation For personal use only • Geological characteristics confirm ionic clay-type mineralisation similar to Southern China Hardcap deposits: Currently the cheapest and most readily accessible Critical and Heavy REO source Domain • Thick intersections of mineralisation averaging
Slide 13: 2020 Drilling Program
2020 Drilling Program For personal use only • Program suspended on 25th March 2020 due to COVID-19 • 4,000 m planned program suspended after only 240m of drilling completed • Successful resource extension drilling t with high grade intersections near surface and over significant widths, including1:
Slide 14: Excellent Metallurgy Characteristics & Results
Excellent Metallurgy Characteristics & Results For personal use only • Metallurgical recoveries of up to 75% TREE-Ce (Total Rare Earth Phase 1 met testwork Optimisation met testwork demonstrated the initial enhanced the results by utilising Elements minus Cerium) were achieved using simple extractio
Slide 15: Simple Metallurgy and Processing
Simple Metallurgy and Processing For personal use only • Chinese development of Ionic Adsorption Clay has been refined to optimise reagents, and refine methods producing the lowest cost base of REO production; • Static leach options been employed for decades in China as low cost scalable approach •
Slide 16: Scoping Study Status
Scoping Study Status For personal use only • Drilling program resumed mid July 2020, 2nd rig arriving on site late July • 3,700m of additional drilling to potentially grow resource • Drill program represents approx. 4 fold increase on drilled metres to date by IXR • Expenditure on Scoping Study will
Slide 17: Target Pathway to Development
Target Pathway to Development For personal use only COMPLETED COMPLETE BY Re-assay of selected historical samples confirms presence of Rare Earths First-pass metallurgy confirms presence of ionic-clay hosted REEs Initial Core Drilling Program Phase 1 Metallurgical Testing recovers up to 75% TREE-Ce
Slide 18: Objective: Makuutu to Supply Low-Cost, High-Value Critical and Heavy Rare Earths
Objective: Makuutu to Supply Low-Cost, High-Value Critical For personal use only and Heavy Rare Earths ✓ Strategically and geopolitically significant Critical / Heavy Rare Earths supply in stable jurisdiction ✓ Strong interest for Makuutu as an ionic clay hosted REE deposits given their demonstrated
Slide 19: Ionic Rare Earths Limited
For personal use only Ionic Rare Earths Limited Level 1, 34 Colin Street T +61 8 9481 2555 West Perth WA 6005 Australia F +61 8 9485 1290 www.ionicre.com.au
Slide 20: Additional Slides
For personal use only Additional Slides 20
Slide 21: Experienced and Proven Team
Experienced and Proven Team For personal use only Mr. Tony Rovira – Chairman Mr. Tim Harrison – Chief Executive Officer • Geologist, company executive and Board Director with over 30 years’ technical, • 20 years’ experience in the mining industry covering technical and project executive and company
Slide 22: Exploration Upside
Exploration Upside For personal use only • 26 km long mineralisation corridor identified by historic RAB drilling and radiometrics • Mineralisation begins at surface to depths of 15-20m: simple shallow mining methods will be applicable • Exploration target of 270 - 530 million tonnes grading 0.04 –
Slide 23: MRE – Resource Limiting Optimisation Shell
MRE – Resource Limiting Optimisation Shell For personal use only Oblique View Looking North West of Makuutu Resource Model Coloured by TREO ppm with Limiting Shell (Brown). The reported Mineral Resources have been assessed against a resource limiting optimisation shell using appropriate marginal cos
Slide 24: Excellent Metallurgy & Processing Fundamentals
Excellent Metallurgy & Processing Fundamentals For personal use only → Low Cost Base OPEX Parameter Result Significance Desorption Salts Demonstrated desorption of rare earths using ammonium sulfate Reduces OPEX (Leaching) (a common fertiliser) and sodium chloride (table salt). Cheap reagents. Low-c
Slide 25: Exploration and Mining in Uganda
Exploration and Mining in Uganda For personal use only • The mining industry in Uganda and was at peak levels in the 1960’s when the sector accounted for up to 30% of Uganda’s export earnings • Instability experienced in the 1970’s led to drastic decline in the sector. The decline was not a result o
Slide 26: Development Options
Development Options For personal use only Build low-cost Demonstration Plant ✓ Validation of process parameters, metallurgical performance and OPEX ✓ Demonstration plant data used to define scale up ✓ REO/REC product to cover operating costs ✓ De-risk project Scalable and Modular Expansion ✓ Demonst
Slide 27: Why are Ionic Adsorption Clays so heavily desired?
Why are Ionic Adsorption Clays so heavily desired? For personal use only Ionic clay product contains more CREO/HREO content compared to a REE mineral concentrate Bayan Obo REE Mineral concentrate1,4 Maoniuping REE Mineral concentrate1,4 Ionic Clay2,3,4 Product Inner Mongolia Sichuan Southern China B
Slide 28: High Margins make Ionic Adsorption Clays desirable
High Margins make Ionic Adsorption Clays desirable For personal use only Ionic clay product is a more valuable product, with > 35% HREO plus higher payability Bayan Obo1 Product Basket Maoniuping1 Product Basket Ionic Clay2,3 Product Basket Hardrock REE Mineral Concentrate Hardrock REE Mineral Conce
Slide 29: High Margins make Ionic Adsorption Clays desirable
High Margins make Ionic Adsorption Clays desirable For personal use only Ionic clay > 50% CREO translates to higher basket price plus higher payability Bayan Obo1 Product Basket Maoniuping1 Product Basket Ionic Clay2,3 Product Basket Hardrock REE Mineral Concentrate Hardrock REE Mineral Concentrate
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