Vital Metals Ltd · ASX:VML
Vital Metals — North America Critical Minerals Day October 2021
36 slides from Vital Metals's conference presentation, Oct 20, 2021
Slide 1: Becoming Canada's First Rare Earths Producer
Becoming Canada’s First Rare Earths Producer March 2021 North America Critical Minerals Day October, 2021
Slide 2: Disclaimer
Disclaimer This presentation provides an overview of prospective rare earth projects (“the Projects”) and development opportunities and contains “forward looking statements”. Forward-looking statements are all statements other than statements of historical fact included in this presentation includin
Slide 3: Guaranteeing Feedstock to the Rare Earths' Supply Chain
Guaranteeing Feedstock to the Rare Earths’ Supply Chain 3 North America Critical Minerals Day October 2021
Slide 4: Vital is Canada's first RE producer building capability to supply light and heavy rare earths
Vital is Canada’s first RE producer building the capability to supply both light and heavy rare earths in the RE Supply Chain Highlights World class REO Development Team - ex Lynas Corporation Ltd 3 World Class Rare Earth projects • Nechalacho (Canada): 95mt at 1.46% TREO • Kipawa (Canada): Reserve
Slide 5: Company Overview
Company Overview Capital Structure ASX Code VML Shares on Issue 4,165m Options on Issue 432m Share Price (as 18 October 2021) $0.06 VML Share Price Performance Market Capitalisation $258m Cash (30 June 2021) $34.9m Board and Management Geoff Atkins Managing Director Evan Cranston Chairman James Hend
Slide 6: Vital's leaders are world experts in developing rare earth projects
Vital’s leaders are world experts in developing rare earth projects Senior Management GEOFF ATKINS TONY HADLEY MATHEW EDLER RAY ANGUELOV Managing Director Chief Operating Officer Executive VP Corporate Canada Operations Development Manager 25 years of project and corporate Over 25 years metallurgica
Slide 7: Emissions legislations and international co-operation is driving electric vehicle demand
Emissions legislations and international co-operation is driving electric vehicle demand Global Critical Minerals Initiatives USA: California ICE Spain: Sales ban Japan: ICE sales UK: Sales ban by China: Hainan Provence sales ban by 2035 by 2040 ban by ~2035 2030 ICE sales ban by 2030 France: Sales
Slide 8: The drive towards vehicle electrification is dependant on electric motors and their rare earths
The drive towards vehicle electrification is dependant on electric motors and their rare earths The Link between EVs and Rare Earths 8 North America Critical Minerals Day October 2021 Source: UBS Electric Car Teardown May 2017
Slide 9: Vital's Canada base can supply to customers in Europe, North America and Asia
Vital’s Canada base can supply to customers in Europe, North America and Asia Vital’s Rare Earth Supply Chain 9 North America Critical Minerals Day October 2021
Slide 10: Vital will provide a one stop shop for the rare earth supply chain
Vital will provide a one stop shop for the rare earth supply chain, supply both light and heavy rare earths Downstream Rare Earth Supply Chain Rare Earth Carbonate NORTH T Production REETEC Through its extraction facilities, Vital will produce a mixed rare earth product of guaranteed quality TARDIFF
Slide 11: Vital's development strategy will ensure guaranteed supply of the full suite of rare earths
Vital’s development strategy will ensure Vital is able to guarantee the supply of the full suite of rare earths to the global supply chain Vital’s 3 Stage Development Strategy Stage 1: Foundations Project Start-up: Nechalacho North T • Demonstrate the ability to supply rare earth feedstock at specif
Slide 12: Rare Earth Carbonate Production Building the Foundations to Success
Rare Earth Carbonate Production Building the Foundations to Success > Saskatoon Extraction Plant Under Construction > Procurement of all key equipment complete > First feed on track for end of 2021 > Expansion to be funded from the sale of Mixed RE Carbonate 12 North America Critical Minerals Day Oc
Slide 13: Vital has signed off-take agreements with advanced new separation facilities
Vital has signed off-take agreements with the most advanced new separation facilities entering Europe and North America Off-take Agreements Europe REEtec - Norway • Developed a completely new and game changing process for the manufacturing of high purity rare earth elements. • Technology has been pr
Slide 14: Vital's rare earth Extraction Plant is on track to accept first feed by end of 2021
Vital’s rare earth Extraction Plant is on track to accept first feed by the end of 2021 Saskatoon Plant Update • Construction is underway on Vital’s rare earth extraction Plant in Saskatoon, Saskatchewan, Canada • All major processing equipment procured within budget with agreements/purchase orders
Slide 15: The Plant will have an initial capacity of 1,000t REO per year
The Plant will have an initial capacity of 1,000t REO (ex- Cerium) per year with the ability to double within 2 years 15 North America Critical Minerals Day October 2021
Slide 16: Off-take agreements have been signed on an ex-Cerium basis
Off-take agreements have been signed on an ex-Cerium basis with the majority of Cerium removed during leaching REE Distribution Element REEtec (ex-Cerium) Market Price (as at Market Price (as at Distribution (%)1 August 24, 2021) US$/kg2 September 23 2021) US$/kg3 La2O3 47.4% $1.41 $1.35 Pr6O11 10.4
Slide 17: Implementation Stage 1: Building the Foundations to Success
Implementation Stage 1: Building the Foundations to Success > Nechalacho North T > Mining Operations commenced April 2021 > Product bagged and ready to ship for further processing > Expansion to be funded from the sale of Mixed RE Carbonate 17 North America Critical Minerals Day October 2021
Slide 18: The Nechalacho project consists of two distinct zones, the T Zone and Tardiff Zone
The Nechalacho project consists of two distinct zones, the T Zone and Tardiff Zone 18 North America Critical Minerals Day October 2021
Slide 19: 2021 Mining and sorting operations have been completed
2021 Mining and sorting operations have been completed Site Status 19 North America Critical Minerals Day October 2021
Slide 20: Nechalacho North T Operations are on track to deliver product to Saskatoon
Nechalacho North T Operations are on track to deliver product to Saskatoon for production of RE Carbonate Campaign mining operations nearing completion • Over 30,000t of ore has been mined and stockpiled from the North T pit • Mining has exposed high grade ore zones which were not part of our existi
Slide 21: The North T Zone is one of the world's highest grade rare earth deposits
The North T Zone is one of the world’s highest grade rare earth deposits making it ideal for start-up North T Resource Resource Type Kt LREO (%) Pr6O11 (%) Nd2O3 (%) Measured 68 9.6% 0.5% 1.8% Indicated 33 7.8% 0.4% 1.5% Inferred 4 5.8% 0.3% 1.1% Total 105 8.9% 0.5% 1.6% Light Rare Earth Mineral Res
Slide 22: Implementation Stage 2: Expansion and Growth
Implementation Stage 2: Expansion and Growth > Long term growth and expansion through the development of Tardiff and Wigu Hill projects > Production targeted to commence 2025 > Expansion to be funded from the balance and debt funding 22 North America Critical Minerals Day October 2021
Slide 23: The Nechalacho project contains over 1.3Mt of contained rare earths
The Nechalacho project contains over 1.3Mt of contained rare earths, providing opportunities for significant expansion Nechalacho - Tardiff Deposit ZONE MT TREO (%) HREO (%) NdPr:TREO (%) Measured 2.914 1.468% 0.142% 24.9% Indicated 14.662 1.508% 0.161% 24.9% Inferred 77.159 1.456% 0.133% 25.3% Meas
Slide 24: Expansion operations will be focussed on Tardiff Zones 1, 2 and 3
Expansion operations will be focussed on Tardiff Zones 1, 2 and 3 24 North America Critical Minerals Day October 2021
Slide 25: Recent drilling at the Tardiff Zones has identified significant intercepts
Recent drilling at the Tardiff Zones have identified significant intercepts with all three zones open High grade intercepts include: • 31.8m @ 4.35% TREO including 6.9m @ 13.78% TREO • 13m @ 3.12% TREO including 4m @ 7.06% TREO • 25.1m @ 3.03% TREO • 25.8m @ 2.56% TREO • 40m @ 2.54% TREO • 51.0m @ 2
Slide 26: Tardiff zone mineralogy will allow rapid development using the same plant as North T
Tardiff zone mineralogy will allow rapid development by utilising the same plant and equipment as North T Tardiff Zone Development of the Tardiff Zone will be leveraged off the North T project • The Tardiff Zone contains red basnaesite crystals similar to the North T Deposit (refer image) • Prelimin
Slide 27: The Wigu Hill Project (90%) is targeted as VML's second rare earth project
The Wigu Hill Project (90%) is targeted as VML’s second rare earth project to enter production Excellent Infrastructure • Rail and power within 10km of project Previous Owners spent US$10m+ • Acquired rights for US$1m in 2018 Potential to be a large world class resource • Current high grade NI43-101
Slide 28: Twiga deposit contains large, discrete bastnaesite crystals
Similar to Nechalacho’s T Zone the Twiga deposit contains large, discrete bastnaesite crystals 28 North America Critical Minerals Day October 2021
Slide 29: Drilling completed on 2 of 8 development targets at Wigu Hill
Drilling completed on 2 of 8 development targets providing the potential for expansion of the resource Wigu Hill contains a historical NI43-101 Resource of 3.3M @ 2.6%REO ZONE MT TREO (%) LA2O3 % CEO2 % PR6O11 (%) ND2O3 (%) Twiga NE 1.6 2.6% 0.98% 1.26% 0.1% 0.23% Twiga SW 0.5 3.6% 1.33% 1.71% 0.13%
Slide 30: Implementation Stage 3: Heavy Rare Earth Production
Implementation Stage 3: Heavy Rare Earth Production > Located in Quebec, Canada > Definitive Feasibility Study completed in 2013, contemplating 15yr mine life > High percentage of heavy rare earths > Will provide Vital the capability to supply both light and heavy rare earths in commercial quantitie
Slide 31: The Kipawa project lies 50km east of Temiscaming
The Kipawa project lies 50km east of the town of Temiscaming and 140km south of Rouyn-Noranda Quebec 31 North America Critical Minerals Day October 2021
Slide 32: Kipawa is a heavy rare earth project complementing existing LREE deposits
Kipawa is a heavy rare earth project, which will complement our existing LREE deposits Mineralisation Eudialyte: Y-Fe-Zr Source of HREE and Zr Yttro-Titanite/Mosandrite: Na-Ca-Ti silicate Source of HREE Britholite: Ca-Y-Fe silico-phosphate Source of HREE 32 North America Critical Minerals Day Octobe
Slide 33: High distribution of HRE at Kipawa could make VML first supplier of LRE and HRE outside China
The high distribution of HRE at Kipawa has the potential to make VML the first suppler of LRE and HRE outside of China Rare Earth Distribution $/kg North T1 Tardiff1 Kipawa2 • The addition of Kipawa into Vital’s project portfolio will (23 Sep 2021)3 % REO $/kg % REO $/kg % REO $/kg provide a signifi
Slide 34: The Reserves contains an estimated 15+ years of mine life
The Reserves contains an estimated 15+ years of mine life Resource and Reserves ZONE Classification Tones TREO (%) ZrO2 Measured 6,024,000 0.529 0.959 Indicated 7,790,000 0.387 0.842 Eudialyte Inferred 1,678,000 0.312 0.710 Total 15,492,000 0.434 0.873 Classification Tones TREO (%) Measured 3,135,00
Slide 35: Vital is on track to guarantee supply of both heavy and light rare earths
Vital is on track to guarantee supply of both heavy and light rare earths to rare earth supply chains Conclusion Work Class Rare earth Development Team - ex Lynas Corporation • Lead by Vital Metals MD Geoff Atkins 3 World Class Projects • Nechalacho REO Project (Canada): 95Mt at 1.46% TREO • Kipawa
Slide 36: Contact us
Contact us Geoff Atkins Managing Director vital@vitalmetals.com.au +61 2 8823 3100 36 North America Critical Minerals Day October 2021
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