Cauldron Energy Limited · ASX:CXU
Cauldron Energy — Mines & Money Hong Kong 2014
31 slides from Cauldron Energy's conference presentation, Mar 24, 2014
Slide 1: Company Presentation
24 March 2014 Company Presentation For personal use only ABN 22 102 912 783 Australian resources company, Cauldron Energy Limited (ASX: CXU) 32 Harrogate Street, West (“Cauldron” or “the Company”) is pleased to attach a copy of the presentation Leederville WA 6007 which will be presented by Company
Slide 2: Mines & Money, Hong Kong
For personal use only MINES & MONEY, HONG KONG March, 2014
Slide 3: Disclosure Statements
Disclosure Statements Forward Looking Statements This presentation may include forward-looking statements with respect to achieving corporate objectives, developing additional project opportunities, the Company’s analysis of For personal use only opportunities and the development of these and certai
Slide 4: Corporate Overview
Corporate Overview UNDERVALUED COMPANY | PROJECTS POISED FOR GROWTH For personal use only Capital Structure* Board & Management Ordinary shares 178.06M Tony Sage Chairman Unlisted options 12.3M Brett Smith Exec. Director Market cap. (AUD$0.09) A$16.02M Qiu Derong Non-Exec. Director Cas
Slide 5: CXU Key Uranium Assets
CXU Key Uranium Assets TOP-SHELF URANIUM AND BASE METAL ASSETS For personal use only Australia Yanrey Project, WA (U) Bennet Well: Potential growing ISR opportunity Leach Testing paves path to ISR (96%) Marree Project, SA (Pb-Ag-Cu-Au) Large target area with high grade mineralisation Geo
Slide 6: Recent CXU News
Recent CXU News CXU Secures AU$1 Million Funding Mar. 2014 For personal use only Major shareholder Cape Lambert shows further support for CXU with provision of AU$1M funding Outstanding Uranium Extraction at Bennet Well Feb. 2014 Outstanding uranium extraction at Bennet Well indicates high recovery
Slide 7: Energia Minerals Takeover
Energia Minerals Takeover For personal use only CXU Offer1 Offer 1 CXU share for 8 EMX shares values EMX at ~29% premium to market2 Resource at 15.6Mlb 3-4 times valuation multiple at $1-1.5/U3O8 Resource pound Regional Uranium camp consolidation reflects confidence in CXU’s Yanrey region (WA)
Slide 8: Bennet Well, Yanrey Region
Bennet Well, Yanrey Region ISR SUITABILITY For personal use only VALIDATED BY LEACH TESTS Resource1 upgrade required Core testing indicates significant Bennet Well uranium grade increase 122%-147% Change to JORC 2012 Drilling from Sept 2013 to be included Leach tests have put Bennet Well o
Slide 9: Yanrey Regional Potential
Yanrey Regional Potential WIDESPREAD URANIUM ALONG PALAEO For personal use only COASTLINE SIMILAR TO BENNET WELL Exploration Target(1) 30-115 Mlb @ 250-900 ppm eU3O8 to be reviewed following resource upgrade Studies show grades above 250ppm eU3O8 (over 1m) are potentially economic for a ISR minin
Slide 10: Uranium Extraction Results
Uranium Extraction Results BOTTLE ROLL TESTS CONFIRM HIGH URANIUM EXTRACTION For personal use only High levels of Uranium extraction achieved and Low Cost extraction anticipated Bottle roll tests in acidic media without oxidant Low acid consumption demonstrated Uranium appears to exist in so
Slide 11: Permeability vs Assays vs Leach Results – YNDD018
88.00m 55.8 md 88.10m 25.2 md Permeability vs Assays vs Leach Results – YNDD018 URANIUM DISTRIBUTION WITH DEPTH For personal use only HOLE YNDD018 START OF 89.95m – 95.05m 5.1m @ 1209ppm Image: mineralised zone in hole MINERALISED ZONE U3O8 YNDD018 (red) and permeability data (yellow) 90.83m 4280
Slide 12: Yanrey Uranium Suited to ISR
Yanrey Uranium Suited to ISR MINERALOGY PROVIDES REDOX ROADMAP For personal use only QEMSCAN and manual SEM testing strongly indicate several provenance areas for uranium mineralisation, all soluble = amenable to ISR Uranium mineralisation forms in reducing environments Reducing agents (zones
Slide 13: QEMSCAN/SEM Results YNDD018
QEMSCAN/SEM Results YNDD018 For personal use only BENNET WELL START OF SOUTH MINERALISED ZONE Dominant uranium- containing phase 89.95m – 95.05m with a chemical 5.1m @ 1209ppm U3O8 composition corresponding to the mineral SODIUM- ZIPPEITE Sample DD00418: High recovery rates 93.25m – 93.40m sugge
Slide 14: Yanrey 5yr Production Plan
Yanrey 5yr Production Plan LOW CAPEX ISR PROJECTS PROVIDE GROWTH PLATFORM For personal use only Sandstone roll-front ISR operations production price : $8/lb - $16/lb globally Revenue at $50/lb is 4-5 times C1 cash cost Realistic production timeframe following first WA uranium mine to receive f
Slide 15: Potential World Class Deposits
Potential World Class Deposits For personal use only MARREE, SOUTH AUSTRALIA RIO COLORADO, ARGENTINA Large poly-metallic alteration area, 16km outcrop, 11m wide, open at depth numerous historical mining sites multiple samples taken average grades Geophysical anomalies undercover and >150g/t Ag,
Slide 16: World Uranium News
World Uranium News For personal use only GLOBAL PROBLEM: GROWING DEMAND AND INSUFFICIENT SUPPLY China on Track to Beat 2020 Nuclear Power Targets Mar. 2014 China on track to meet nuclear power targets with new plant construction expected to resume shortly Japan to Restart 48 Nuclear Reactors Feb. 20
Slide 17: World Nuclear Energy Market
World Nuclear Energy Market EMERGING ECONOMIES BANKING ON NUCLEAR POWER For personal use only TO MEET ELECTRICITY DEMANDS IAEA forecasts that if policies remain unchanged, world energy demand is projected to increase by over 50% by 2030* Nuclear power is the lowest social and economic cost power o
Slide 18: China's Energy Market
China’s Energy Market REFORMING ENERGY OUTPUT AND CONSUMPTION PATTERS For personal use only Electricity demands growing at average annual rate of 10% In 2013, installed power capacity rose by 94M kw, including 2.21M kw from nuclear 6 new nuclear power facilities approved since end of 2012 Constru
Slide 19: Uranium Market Analysis
Uranium Market Analysis UNDERSUPPLY TO FUEL URANIUM RESTART For personal use only +50% price growth by 2018* Total Reactors Under Construction Globally: 72 (~20% existing) 2018 spot price to reach US$72/lb U3O8 Higher uranium prices essential Non ISR incentive price +$70/lb U3O8 Stagnated demand
Slide 20: Demand Increase/Supply Decrease
Demand Increase/Supply Decrease COMMODITY PRICE IS BIGGEST IMPEDIMENT TO SUPPLY GROWTH For personal use only Current uranium spot price $34.85/lb production trigger price $85/lb Secondary supply reducing Less high enriched warheads Tails retreatment not cost effective at current prices End use
Slide 21: Socially Responsible Power
Socially Responsible Power NUCLEAR ENERGY ESSENTIAL MAJOR POWER GENERATION SOURCE For personal use only By 2020, China & India will need additional >40Mlb uranium: equivalent to ~40% of 2011 global mine supply Low emission power: nuclear is the only carbon-free baseload source of electricity Mod
Slide 22: Climate Change
Climate Change NUCLEAR POWER ESSENTIAL TO THE GLOBAL RESPONSE For personal use only Climate change requires +60% reduction in greenhouse gas emissions China, Japan, India, Pakistan, Argentina embrace nuclear power as essential to new domestic and global energy mix Conservative estimates of the p
Slide 23: Investment Highlights
Investment Highlights PREDICTED UPSURGE IN URANIUM PRICE For personal use only POTENTIAL FOR SIGNIFICANT RETURNS ON INVESTMENT Outstanding cash margin at low commodity prices Commodity prices expected to more than double to meet world demand Undervaluation of quality uranium miners creates cre
Slide 24: Contact Us
For personal use only CONTACT US Simon Youds David Tasker/ Colin Jacoby Cauldron Energy Limited Professional Public Relations 32 Harrogate Street Tel: +61 (8) 9388 0944 West Leederville WA 6007 M: +61 (0) 433 112 936 Tel: +61 (8) 6181 9796 E: david.tasker@ppr.com.au E: info@cauldronernergy.com.au ww
Slide 25: Appendix
For personal use only APPENDIX Pg 24
Slide 26: Permeability vs Assays vs Leach Results – YNDD022
PERMEABILITY VS ASSAYS VS LEACH RESULTS – YNDD022 For personal use only The image shown on the 58.90 – 60.00m left illustrates START OF 58.92m 1.1m59.10m @ the MINERALISED ZONE 55.8 md 110 md 473ppm U3O8 mineralised 59.39m 59.58m 59.87m zone in hole 604 md 2400 md 3.48 md YNDD022 (red) and 60.06m pe
Slide 27: QEMSCAN/SEM Results: YNDD022
QEMSCAN/SEM RESULTS: YNDD022 QEMSCAN analysis (BENNET WELL EAST) identified URANIFEROUS ZIRCONS and For personal use only Sample DD00327: COFFINITE within 59.10m – 59.25m the YNDD022 START OF mineralised zone. 1208ppm U3O8 MINERALISED ZONE Manual SEM 58.90 – 60.00m examination 1.1m @ 473ppm U3O8 cle
Slide 28: Modal Mineralogy for Samples DD00327 and DD00418
MODAL MINERALOGY FOR SAMPLES DD00327 (YNDD022) AND DD00418 (YNDD018) MODAL ABUNDANCES IDENTIFIED BY QEMSCAN For personal use only 100 Uranium Bearing Minerals in Higher Grade Intervals Trace & Others Mineral Chemical Formula YNDD022 YNDD018 90 Uranium Phase U, S, Si, Zr, O, Na 0.020 0.36 Total U-Min
Slide 29: ICP-MS and DNA Assays vs Downhole Gamma Results
ICP-MS AND DNA ASSAYS VS DOWNHOLE GAMMA RESULTS Max Assay Probe Grade Assay Assay ME-MS61 DNA Assay Grade Grade Grade Width Resource Depth Depth U308 U308 For personal use only Hole ID Easting Northing TD (m) RL (m) Width U308 Width Width Change Name From To (ppm) (ppm) (m) (ppm) (ppm.m) (ppm.m) (%)
Slide 30: XRF Assays vs ICP and Downhole Gamma Results
XRF ASSAYS VS ICP AND DOWNHOLE GAMMA RESULTS Gamma ICP XRF XRF to Assay Assay ICP XRF Probe ICP to Assay Assay Assay Gamma For personal use only TD Resource Depth Depth U308 U308 Grade XRF Hole ID Easting Northing RL (m) Width Grade Grade Probe (m) Name From To (ppm) (ppm) Width Change (m) Width Wid
Slide 31: Uranium Extraction Testwork
URANIUM EXTRACTION TESTWORK FINAL LEACH TESTS UNDERTAKEN AT ANSTO, NSW For personal use only Leach Results Leach tests undertaken in Sydney tap water in small agitated vessels to minimise matrix effects Leach No. Composite Test Type pH ORP (mV, Temp Estimated Oxidant Feed U3O8 Residue Uranium Ag/AgC