Reward Minerals Ltd · ASX:RWD
Reward Minerals — Melbourne Mining Club (May 2014)
26 slides from Reward Minerals's conference presentation, May 19, 2014
Slide 1: Reward Minerals Limited – Melbourne Mining Club Presentation May 2014
REWARD MINERALS LIMITED Melbourne Mining Club Presentation May 2014
Slide 2: Forward Looking Statements & Disclaimer
FORWARD LOOKING STATEMENTS & DISCLAIMER This document includes forward-looking statements. When used in this document, the words such as “could”, “plan”, “estimate”, “expect”, “intend”, “may”, “potential”, “should”, and similar expressions are forward-looking statements. Although RWD believes that t
Slide 3: Our Vision
OUR VISION Reward Minerals Limited (ASX:RWD) Our Company is a Perth based Company focussed on providing the essential nutrient Potash needed to meet the world's growing food demand Sulphate of Potash (SOP) – K2SO4 Commodity is a specialty product that is strategic and geologically scarce compared to
Slide 4: Corporate Overview
CORPORATE OVERVIEW Capital Structure 16 May 2014 ASX:RWD Price History (1 Year) Ordinary Shares on Issue 108.9m 0.7 1000 Options on Issue1 26.5m 900 0.6 800 Share Price $0.60 700 0.5 Undiluted Market Capitalisation $65m 600 Share Price (A$) Cash & Equivalents2 A$7.1m 0.4 500 400 Undiluted Enterprise
Slide 5: Potash
POTASH
Slide 6: Potash
POTASH Potash is a generic term for various Potassium (K) salts Used primarily as a fertilizer One of the three primary agricultural nutrients – N (Nitrogen) P (Phosphorus) K (Potassium) SOP and MOP are in a final form ready for crop application Boosts plant health and nutrition Increases crop yield
Slide 7: Potash Market
POTASH MARKET Muriate of Potash (MOP, KCl) Sulphate of Potash (SOP, K2SO4) Accounts for over 86% of total potassium Accounts for around 10% of total potassium fertilisers produced globally fertilisers produced globally Contains 46% chloride Contains 17.5% sulphur Chloride may be harmful to crops Sul
Slide 8: Premium Potash = Premium Price
PREMIUM POTASH = PREMIUM PRICE SOP attracts a premium price (historically c.30%) Premium has widened due to supply instability in the MOP market (split of Uralkali from BPC) SOP price remains stable SOP Price underpinned by: – Sizeable primary resources rare – Increasing demand – Mannheim production
Slide 9: SOP - Production
SOP - PRODUCTION % of SOP Global Production Primary Processing Brine salts with potassium are pumped into ponds, Brine (Reward) solar evaporated, harvested and processed – lowest 29% cost of production method Processing highly dependent on evaporation potential at the project Examples: Great Salt La
Slide 10: Projects
PROJECTS
Slide 11: LD - Karly Project: Palaeovalley Potential
LD - KARLY PROJECT PALAEOVALLEY POTENTIAL 13 11 Source: Geoscience Australia – 2010/12 Record Paterson Province AEM Survey, Reward Minerals
Slide 12: Lake Disappointment (LD)
LAKE DISAPPOINTMENT (LD) Project Overview Little Sandy Desert (W.Australia) Location ~340km east of Newman SOP Resource 24.4Mt (K2SO4) (SOP in Brine, to only 4m depth) In-situ playa brine Type of Deposit Similar chemistry to Great Salt Lake (high sulphate brine) ILUA Registered Permitting Mining Lea
Slide 13: LD Project Resources & Growth
LD PROJECT RESOURCES & GROWTH SOP Resource Estimate Sediment Tonnage Estimate (SG: 1.95) 7.7 x 109 Mt 3.17 kg / t Sediment SOP content (soluble) 6.17 kg / m3 Brine SOP concentration (SG: 1.19) 12.37 kg/m3 SOP Resource Estimate 24.4 Mt (to 4m average depth) Resource Expansion Deeper on-lake drilling
Slide 14: LD Palaeovalley Cross-Section
LD PALAEOVALLEY CROSS-SECTION Hole ID Basement Top Interval Est. Flow (l/sec) Avg. Grade (m) (m) [ranges] (kg/m3 SOP) 0 - 48 0.5 – 2 Pending LDRC1460 66 48 - 54 4 7 54 - 102 4–5 8 0 - 73 0.5 – 2 Pending 73 - 84 3 Pending LDRC1461 120 84 – 120 1 7 120 - 132 5 7 0 - 77 0.5 - 4 Pending LDRC1462 81 77 -
Slide 15: LD Palaeovalley Results
LD PALAEOVALLEY RESULTS Hole ID Total Depth Basement Top (m) (m) LDRC1409 101 not reached LDRC1410 101 not reached LDRC1411 102 68 LDRC1412 102 65 LDRC1413 78 75 LDRC1414 102 56 LDRC1416 101 51 LDRC1417 114 101 LDRC1418 94 93 LDRC1419 95 not reached LDRC1420 125 108 LDRC1421 125 123 LDRC1460 102 58
Slide 16: Growth: Achieving Our Exploration Target
GROWTH ACHIEVING OUR EXPLORATION TARGET Achieving our Exploration Target of ~500Mt to ~1Bt SOP @ 4.0kg/m3 to 7.5kg/m3 The potential quantity and grade is conceptual in nature, there has been insufficient exploration to estimate a Mineral Resource and it is uncertain if further exploration will resul
Slide 17: Regional Projects: Geoscience AEM Survey Data
REGIONAL PROJECTS GEOSCIENCE AEM SURVEY DATA Retrieved from the 2008 Paterson Province AEM Part of the Australian Government’s Onshore Energy Security Program Over $2.7M spent on the EM Program – 28,200 line kilometers flown Source: Geoscience Australia – 2010/12 Record Paterson Province AEM Survey
Slide 18: Karly Project
KARLY PROJECT Project Overview Great Sandy Desert Location Western Australia SOP Resource Conceptual (K2SO4) High Potash levels in surface samples In-situ playa brine Type of Deposit Surface to 100+ meters1 Level of Access Exploration Licences LD testwork results and Production Process flowsheet des
Slide 19: Karly Project: The Embayment
KARLY PROJECT THE EMBAYMENT Waukarlycarly Basin Seismic Cross-sections Source: Geoscience Australia – Not representative of actual LW embayment 80km by 40km embayment area held Depth to basement 3,000m Top of Grant Group 500 to 600m 19
Slide 20: Karly Project: Geoscience AEM Survey
KARLY PROJECT GEOSCIENCE AEM SURVEY - 200m RL - 0m RL Lake Waukarlycarly Location - 300m RL - 100m RL LW5 – 8.12kg SOP/m3 brine LW6 – 13.21kg SOP/m3 brine Playas conductive from surface to 100m+ depth Gently dipping under cover to the north Source: Geoscience Australia – 2010/12 Record Paterson Prov
Slide 21: Karly Project: Lake Survey Results
KARLY PROJECT LAKE SURVEY RESULTS First pass samples suggest high Potash prospectivity for follow-up work Sample Results1 BRINE ANALYSIS - LAKE SURVEY - NOVEMBER 2013 Sample Northing Easting Ca (2) K (2) SOP (3) Mg (2) Na (2) Cl (2) SO4 (2) SG (4) TDS (5) LAKE WAUKARLYCARLY LW1 7645460 384538 0.55 4
Slide 22: Karly Project: Historical Exploration
KARLY PROJECT HISTORICAL EXPLORATION Hole ANK266: “Heaps and heaps of water salty (sic)” Hole ANK267: “Heaps of water at 8.5m. RC rock-roller from 12.5m (lost circulation in broken ground).” BHP Minerals Pty Ltd – Paterson JV CR8775 Open File, sourced from WAMEX Hole AND381:“High water flows of 8L/s
Slide 23: LD Project: Production Process
LD PROJECT PRODUCTION PROCESS Simple process whereby harvested salt is put through a milling, conversion and crystallisation process - SOP product ready for crop application. START Water Raw Brine Evaporation Harvested Leaching & Ponds SOP salts Crystallisation Waste Brine SOP Recycle End-brine SOP
Slide 24: Why Reward?
WHY REWARD? Reward’s favorable project economics support low capital and operating cost potential Key Project Parameters Proximity to Key Markets Extensive landholdings - +10,000km2 Reward’s geographic location places it in close Substantial resource potential proximity to key Asian markets High val
Slide 25: Board & Senior Management
BOARD & SENIOR MANAGEMENT Board Senior Management Mr Colin McCavana Non Executive Director, Chairman Mr Daniel Tenardi Projects Director – 31+ years experience in the mining and earthmoving – Over 24 years experience in mining operations from start-up industries to completion phases – Director of No
Slide 26: Competent Person Statement
COMPETENT PERSON STATEMENT Reward Minerals Ltd advise that resource parameters provided in this presentation relating to the Lake Disappointment Project are based on information compiled by Mr Simon Coxhell of CoxsRocks who is a Member of the Australasian Institute of Mining and Metallurgy and is a