Slide 1: Thunderbird: A New Tier 1 Mineral Sands Project
+ For personal use only SFX Thunderbird A New Tier 1 Mineral Sands Project Long Life High Margin Premium Product Tier 1 9 MAY 2014
Slide 2: Company Snapshot and Pro forma Capital Structure
Shareholder Split* Top 20 40% For personal use only Shareholders Directors 19.3% * Pre-completion of capital raising (as announced 9 May 2014) Company Snapshot Pro forma Capital Structure^ Share price $0.87 Shares on issue 133.8m Employee Options 8.1m (Ave. Ex Price 68c) Market Cap (Undiluted) $116m
Slide 3: Key Messages
Key Messages THUNDERBIRD MINERAL SANDS For personal use only Long Life High Margin Premium Product Tier 1 Project 3
Slide 4: Board & Management
Board & Management For personal use only Board & Management PROVEN TRACK RECORD History of successful Exploration and Will Burbury Executive Chairman Corporate Transactions Built global scale HMS resource base Bruce McQuitty Managing Director in 3 years Completed Thunderbird Scoping Study Davi
Slide 5: Strategic Location
Strategic Location For personal use only DAMPIER MINERAL SANDS PROJECT THUNDERBIRD 30km north of sealed Broome - Derby highway 140km by road to either Broome or Derby ports Gas discoveries nearby providing potential power source for project Close to Asian markets CANNING BASIN Thunderbird
Slide 6: Large Scale, High Grade
Large Scale, High Grade THUNDERBIRD MINERAL RESOURCE 19 MARCH 2014 For personal use only High Grade Zone 740Mt @ 12.1% HM (at 7.5%HM cut-off) Mineral Valuable HM Grade (in situ) 1 Resources 2 Resource Cut-off Material HM Zircon HiTi Leucoxene Leucoxene Ilmenite Category HM% Mt % % % % % Measured 3.0
Slide 7: Tier 1 Project
Tier 1 Project For personal use only THUNDERBIRD MINERAL SANDS 7.00 In Situ TiO2 Mineral Grade (Rut+Lux+Ilm) % 6.00 Puttalam (ILU) Fairbreeze (TROX) Amongst the 5.00 Douglas (ILU) world’s largest Toliara (WTR) 4.00 Thunderbird High Grade Zone and highest 740Mt @ 12.1% HM @ 7.5% c/o (SFX) Moma (KMR)
Slide 8: Tier 1 Project: Large Zircon Deposits Discovered
Tier 1 Project For personal use only THUNDERBIRD MINERAL SANDS LARGE ZIRCON DEPOSITS DISCOVERED OVER PAST 30 YEARS 16 14 Most significant Contained zircon (Mt) 12 10 discovery in 8 decades: 6 Grade and 4 Scale 2 0 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1997 1998 1
Slide 9: Exceptional Results from Thunderbird Scoping Study
Tier 1 Project For personal use only EXCEPTIONAL RESULTS FROM THUNDERBIRD SCOPING STUDY Long initial mine life of 32 years Targeting ~ 8% of zircon and ~4% of ilmenite global production Highly marketable products Average LOM annual EBITDA of $140 million ($187 million p.a. for first 10 years
Slide 10: Thunderbird Scoping Study Mining Inventory
Discovery of additional high grade mineralisation in shallow up-dip Thunderbird Scoping Study areas would have a strong positive impact on project economics For personal use only MINING INVENTORY Open Open Open Mining inventory of 669Mt @ 10.2% HM (Measured & Indicated Resources only) Open In si
Slide 11: Thunderbird Scoping Study: Mining
Thunderbird Scoping Study For personal use only MINING Dry mining at 2,500tph rate with dozers and scrapers 2 large mining unit plants High grades and very low strip ratio (particularly in first 10 years) Mining commences in shallow northeast sector of deposit Typical Dry Mining Mineral Sand
Slide 12: Long Life: Scoping Study Physicals
Long Life For personal use only THUNDERBIRD SCOPING STUDY PHYSICALS Average annual production following ramp-up to a 20.8 Mtpa mining rate is estimated to be: 118,200tpa zircon (135,100tpa in first 10 years) 545,000tpa ilmenite 21,700tpa HiTi80 High grades and very low strip ratio in initi
Slide 13: Modest Capex
Modest Capex For personal use only THUNDERBIRD SCOPING STUDY PRE-PRODUCTION CAPEX Pre Production Capital Summary1 A$M Local site infrastructure 43.05 Mining Units 22.9 Wet Concentrator Plant 39.8 Concentrate Upgrade Plant 8.8 Mineral Separation Plant 47.6 Process Water System 22.9 Off-site Infrastru
Slide 14: High Margin: Scoping Study Financials
High Margin For personal use only THUNDERBIRD SCOPING STUDY FINANCIALS LOM revenue A$m 10,010 Long life, strong margin project Average Operating Cash Flow1 (first 10 years) A$mpa 204 $140mpa EBITDA for 32 years Average Operating Cash Flow1 (LOM) A$mpa 156 EBITDA (first 10 years) A$mpa 187 Prod
Slide 15: Premium Products
Premium Products For personal use only THUNDERBIRD MINERAL SANDS CONVENTIONAL PROCESSING Metallurgical testwork on two bulk samples totalling 11 tonnes confirms mineralisation responds well to conventional processing techniques Slimes have low clay content – requiring low flocculant dosages 30
Slide 16: Key Focus: Value Enhancement Opportunities in 2014
Key Focus For personal use only VALUE ENHANCEMENT OPPORTUNITIES IN 2014 1. Exploration upside 2. Optimise mining schedule Discovery of additional shallow Infill drilling of up-dip areas will high grade enable optimisation of mine mineralisation scheduling in early production OPEN could significantly
Slide 17: 2014 To Be A Defining Year For Sheffield
2014 To Be A Defining Year For Sheffield For personal use only Upcoming 2014 Milestones Will Drive Shareholder Value Drilling to target extensions of shallow, high grade mineralisation that remain open Resource Update Q4 2014 Scoping Study Optimisation Q4 2014 Regional Exploration Mine Pla
Slide 18: Conclusion
For personal use only Conclusion A New Tier 1 HMS Project World class, large scale, long life project Long Life High estimated cash margins with leverage to multiple pricing cycles High Margin Modest estimated development capital with 2 year payback Globally significant projected production
Slide 19: Disclaimer
+ Disclaimer For personal use only . PREVIOUSLY REPORTED INFORMATION This report includes information that relates to Exploration Results which were prepared and first disclosed under FORWARD LOOKING STATEMENTS the JORC Code 2012. The information was extracted from the Company’s previous ASX announc
Slide 20: For further information please contact
For personal use only For further information please contact: Sheffield Resources Ltd Level 1, 57 Havelock Street West Perth WA 6005 Ph +61 (8) 6424 8440 info@sheffieldresources.com.au www.sheffieldresources.com.au
Slide 21: Appendices
For personal use only Appendices 21
Slide 22: Appendix 1: Other Projects
Appendix 1: Other Projects For personal use only (PROJECTS ALL 100% SFX) Dampier - HMS Flagship - Thunderbird Total Resource 2.62Bt @ 6.5% HM (170Mt HM)1 including 738Mt @ 12.1% HM North Pilbara Iron High grade DSO target Eneabba - HMS Strategic resource base McCalls HMS Very large chloride ilmenite
Slide 23: Large Footprint in Fraser Range
Large Footprint in Fraser Range For personal use only EMERGING NICKEL PROVINCE 2,420km2 tenement holding in Fraser Range 17 tenements (13 under application) Red Bull project is within 20km of Sirius’ Nova deposit and near emerging prospects Red Bull tenements & Ni prospects on gravity image 23
Slide 24: Red Bull Nickel
Red Bull Nickel For personal use only DRILLING NICKEL TARGETS Q2 2014 Sheffield’s current nickel exploration focus is the Northern Targets at Red Bull Aircore drilling through shallow conductive cover has outlined several Ni-Cu-Co anomalies Stud anomaly strike length 1.8km at 0.2% Ni cut-off,
Slide 25: North Pilbara Iron
North Pilbara Iron For personal use only DRILLING DSO TARGET Q2 2014 Targeting DSO on 4 granted exploration licenses in North Pilbara Tenements strategically located High-grade outcropping iron mineralisation identified at Panorama and Mt Vettel Mt Vettel high-grade DSO target: Average 61.
Slide 26: McCalls Mineral Sands
McCalls Mineral Sands For personal use only GLOBAL SCALE CHLORIDE ILMENITE DEPOSIT Mineral Resource 4.4Bt @ 1.2% HM (53Mt HM)1 Mineral assemblage includes: 80.8% ilmenite at 66% TiO2 Evaluating as a potential dredge project 2012 drilling results highlight central area as having higher grade,
Slide 27: Eneabba Mineral Sands
Eneabba Mineral Sands For personal use only STRATEGIC RESOURCE BASE Total Mineral Resources: 302Mt @ 2.2% HM (6.76Mt HM)1 Comprising 5 deposits, each with over 1Mt contained HM Established mining district Adjacent to Tronox’s Dongara project Considerable exploration upside – 4 new dunal HM
Slide 28: Appendix 2: Thunderbird Product Specifications
Appendix 2: Thunderbird Product Specifications For personal use only PRIMARY ZIRCON SPECIFICATIONS ZrO2 % Fe2O3 % TiO2% Al2O3% P2O5% 66.2 0.05 0.09 0.10 0.14 PRIMARY ILMENITE SPECIFICATIONS TiO2 % FeO % Fe2O3 % SiO2 % Al2O3% Cr2O3 % ZrO2 % 50.1 8.0 36.4 1.6 0.3 0.05 0.00 HiTi80 SPECIFICATIONS TiO2 %
Slide 29: Appendix 3: Resource Inventory
Appendix 3: Resource Inventory SHEFFIELD’S CONTAINED VALUABLE HM (VHM)* For personal use only RESOURCE INVENTORY AT 19 MARCH 2014 Deposit Resource Category Zircon (‘000t) Rutile (‘000t) HiTi Leuc. (‘000t) Leuc. (‘000t) Ilmenite (‘000t) Total VHM (‘000t) Thunderbird Measured 510 - 150 140 1,660 2,450
Slide 30: Appendix 4: HMS Mineral Resource Inventory March 2014
Appendix 4: HMS Mineral Resource1 For personal use only INVENTORY 19 MARCH 2014 2 Cut-off Material HM Osize In-situ HM Zircon2 Rutile2 HiTi Leuc. % Leuc.2 Ilmenite2 Project Deposit Resource Category Bulk Density Slimes %3 (% HM)3 (Mt)* % % (Mt)* % % % % Thunderbird Measured 3.0 75 2.1 7.5 19 11 6 9.