Slide 1: Thunderbird – One of the World's Best Undeveloped Mineral Sands Projects
For personal use only Thunderbird One of the World’s Best Undeveloped Mineral Sands Projects Investor Presentation October 2016 ASX : SFX 1
Slide 2: Disclaimer
DISCLAIMER PREVIOUSLY REPORTED INFORMATION This presentation includes information that relates to Exploration Results, Exploration Targets, Mineral Resources, Ore Reserves, a Pre-feasibility Study and Technical Studies which were For personal use only prepared and first disclosed under the JORC Code
Slide 3: Corporate Snapshot
CORPORATE SNAPSHOT For personal use only ASX ISSUED SHARE SHARE PRICE MARKET CASH ENTERPRISE TOP TWENTY CODE SHARES OPTIONS (14 Oct 2016) CAP (UNAUDITED) 1 VALUE SHAREHOLDERS2 SFX 180.7M 12.5M2 A$0.57 A$103M A$16M A$87M ~49% Price (AUD) $0.85 $0.75 Directors $0.65 $0.55 13% $0.45 Institutional $0.35
Slide 4: Our Team – Experienced & Capable
OUR TEAM – EXPERIENCED & CAPABLE For personal use only BOARD MANAGEMENT Will Burbury Bruce McFadzean Mining Engineer with over 35 years experience leading the financing, development and operation of mines in Australia and overseas, including roles with BHP Billiton and Rio Tinto. Previously Non-exec
Slide 5: Thunderbird - Discovery to Production
THUNDERBIRD - DISCOVERY TO PRODUCTION ASX listed December 2010 For personal use only Initial drill hole to BFS in 4 Years 2013 Explorer of the year and 2013 Diggers and Dealers Best Emerging Company Award Lead Agency status with Department of Mines and Petroleum Targeting first production
Slide 6: Thunderbird – A World Class Ore Reserve
THUNDERBIRD – A WORLD CLASS ORE RESERVE For personal useTiOonly 10.00 Grade Murray Basin (ILU) In Situ Titanium Minerals (Ilm+Lux+Rut) % 2 8.00 Perth Basin (ILU) 6.00 Kwale (BSE) Fairbreeze (TROX) Namakwa (TROX) QMM (RIO) Richards Bay (RIO) THUNDERBIRD (SFX) 4.00 Moma (KMR) Dongara (TROX) 2.00 Grand
Slide 7: Market Conditions Have Turned
MARKET CONDITIONS HAVE TURNED For personal use only MARKET DYNAMICS SPECIFICATIONS & SAMPLES PRICE FORECAST • Improving market in mineral • Final product specifications complete • Sulphate Ilmenite prices sands industry for all products predicted to reach US$200/t • Sulphate Ilmenite feedstock • Sam
Slide 8: BFS Status – 70% Complete
BFS STATUS – 70% COMPLETE KEY TARGETS For personal use only KEY DELIVERABLES TIER 1 STUDY • BFS Completion early 2017 Study Manager • 7.5-10.0 Mt phase 1 capacity with doubling of capacity in phase 2 Mineral Sands • 750t/hr constant feed rate at rougher Processing Specialist spiral • Metallurgical t
Slide 9: BFS Status – 70% Complete
BFS STATUS – 70% COMPLETE KEY TARGETS For personal use only COMMUNITY/EMPLOYMENT PERMITTING • Local DIDO workforce, salaries stay in • Government support via “Lead Agency Status” local community from Department of Mines and Petroleum (DMP) • Significant Aboriginal employment and business opportuniti
Slide 10: Thunderbird – A World Class Deposit
THUNDERBIRD – A WORLD CLASS DEPOSIT • Thunderbird has a continuous For personal use only High Grade Zone “GT Zone” of up to 46m thickness • GT Zone is surface outcropping in the northern part of the deposit • Deposit geometry and grade consistency favours large scale mining • Very low strip ratio (<
Slide 11: Thunderbird – A World Class Deposit
THUNDERBIRD – A WORLD CLASS DEPOSIT For personal use only • Image of in situ Valuable Heavy Mineral (VHM) grade and deposit thickness – proxy for in-ground value • Not just high HM grade but high VHM grade • Deposit economics are based on the strongly continuous zone of thick, very high VHM grades •
Slide 12: Thunderbird – Exceptional Grade Continuity
THUNDERBIRD – EXCEPTIONAL GRADE CONTINUITY Exceptional grade continuity, mineral assemblage and low strip ratio For personal use only See previous slide for section location and extent, note these are zoomed in to a 1km wide (down-dip) area of the deposit to show 12 detail of HM grade and continuity
Slide 13: Thunderbird – Dozer Trap Mining
THUNDERBIRD – DOZER TRAP MINING Trial Costeans Confirm Dozer Trap Mining Method For personal use only • Three trenches excavated in up-dip region of the Thunderbird deposit have confirmed dozer-trap mining as preferred mining method. • Trenches were excavated with a D10 dozer achieving good producti
Slide 14: Conventional Processing
CONVENTIONAL PROCESSING • Conventional heavy mineral sands For personal use only processing circuit to deliver zircon, ilmenite, and HiTi88 products1 • The process includes an ilmenite upgrade step using a low temperature roast (“LTR”) • LTR upgrades the primary ilmenite to 56.1% TiO2 high grade sul
Slide 15: Thunderbird LTR Ilmenite
THUNDERBIRD LTR ILMENITE HIGH TITANIUM + HIGH ACID SOLUBILITY = PREMIUM PRICING For personal use only • Acid Solubility >95% • Outstanding improvements in the FeO:Fe2O3 ratio to 1.2 • Text book reactivity rate LTR Ilmenite Substantial upgrade in TiO2 and solubility Raw Ilmenite %TiO2 Solubility vs G
Slide 16: Mine Planning and Optimisation
MINE PLANNING AND OPTIMISATION For personal use only • Enterprise Optimisation to determine mine planning and scheduling for the BFS is being undertaken by Whittle Consulting Pty Ltd and Entech Mining Consultants • Phase 1 mining will commence at an initial throughput of between 7.5 and 10Mt per ann
Slide 17: Logistics – Simple & Close to Market
LOGISTICS – SIMPLE & CLOSE TO MARKET For personal use only • Products trucked 140km from mine to ports at Derby and Broome, including 110km on major Highway • Road haulage fleet based in Derby • Barge transhipment operation based in Derby • Access agreement in place for port storage, wharf and bulk
Slide 18: Regional Exploration Potential
REGIONAL EXPLORATION POTENTIAL NEW PROVINCE – MULTIPLE DISCOVERIES For personal use only • Limited scout drilling has lead to new Bells Tower discoveries including the zircon-rich Night Seagull Train prospect, e.g. 7.5m @ 8.23% HM1 Country Downs • Large number of prospects yet to be drilled, new tar
Slide 19: Thunderbird – A Project for the Community
THUNDERBIRD– A PROJECT FOR THE COMMUNITY • In excess of 140 direct full time jobs from the regional community. For personal use only Substantially more employment via indirect support for the operations • Significant business opportunities with a key focus on Aboriginal participation • Minimal envir
Slide 20: Thunderbird Key Targets & Next Steps
THUNDERBIRD KEY TARGETS & NEXT STEPS1 KEY TARGETS ACHIEVED AND TARGETED For personal use only • BFS – announced early 2017 • Secure exclusive port access completed • Native Title Agreement 2016/17 • Appointment of BFS Study Manager completed • Environmental permitting 2017 • 40t bulk sample met test
Slide 21: Key Investment Highlights
KEY INVESTMENT HIGHLIGHTS Tier 1, high grade, large scale mineral sands project in a stable jurisdiction For personal use only • Among the world’s largest and highest grade deposits • Located in the world’s best mining jurisdiction Well advanced asset – BFS nearing completion • BFS 70% complete,
Slide 22: Thunderbird Deposit Ore Reserves
APPENDIX 1 THUNDERBIRD DEPOSIT ORE RESERVES1,2 For personal use only Valuable Heavy Mineral (VHM) in-situ grade In-situ HM Valuable HM Grade (In-situ)2 Ore Reserve Ore Tonnes HM Grade Slimes Osize Tonnes Zircon HiTi Leuc Leuc Ilmenite Category (millions) (%) (%) (%) (millions) % % % % Proved 115.1 1
Slide 23: Thunderbird Deposit Mineral Resource
APPENDIX 1 THUNDERBIRD DEPOSIT MINERAL RESOURCE1,2 Valuable HM Grade (In-situ)3 For personal use only Mineral Material In-situ HM Cut-off HM Grade Slimes Osize Resource Tonnes Tonnes Zircon HiTi Leuc Leuc Ilmenite (HM%) (%) (%) (%) Category (millions) (millions) (%) (%) (%) (%) Measured 510 45 8.9 0
Slide 24: Thunderbird High Grade Mineral Resource at 7.5% HM Cut-off
APPENDIX 2 For personal use only THUNDERBIRD HIGH GRADE MINERAL RESOURCE AT 7.5% HM CUT-OFF Mineral Resources 1 Valuable HM Grade (in situ) 2 Material HM Zircon HiTi Leuc Leucoxene Ilmenite Resource Mt % % % % % Measured 220 14.5 1.07 0.31 0.27 3.9 Indicated 640 11.8 0.90 0.28 0.25 3.3 Inferred 180