Eq Resources Limited · ASX:EQR
Eq Resources — Carbine Tungsten — Shareholder Meeting (November 2013)
37 slides from Eq Resources's shareholder meeting presentation, Nov 15, 2013
Slide 1: Carbine Tungsten Limited 2013 Annual General Meeting
Carbine Tungsten Limited ASX Code: CNQ Jim Morgan, Managing Director & CEO 2013 Annual General Meeting 15 November 2013
Slide 2: Disclaimer
DISCLAIMER Forward Looking Statements Some statements in this presentation relate to the future and are forward looking statements. Such statements may include, but are not limited to, statements with regard to intention, capacity, future production and grades, projections for sales growth, estimate
Slide 3: Welcome Non-Executive Chairman Russell Henry Krause
WELCOME NON-EXECUTIVE CHAIRMAN Russell Henry Krause • Appointed 30 June 2013. • 25 years’ Executive Management and Director level experience in corporate advisory, stockbroking and investment banking roles. • Extensive resource sector experience. • Director of: ‒ Austex Oil Limited (ASX: AOK); ‒ Sin
Slide 4: Welcome Managing Director & CEO Andrew James (Jim) Morgan
WELCOME MANAGING DIRECTOR & CEO Andrew James (Jim) Morgan • Commenced 2 April 2012. • 30 years’ experience in the Australian and international mining and construction industries. • Holds tertiary qualifications in Electrical Engineering. • Possesses strong project development, engineering and constr
Slide 5: Welcome Non-Executive Director Roland Waynne (Rolly) Nice
WELCOME NON-EXECUTIVE DIRECTOR Roland Waynne (Rolly) Nice • Appointed 30 June 2013. • 45 years’ experience in mineral processing and metallurgy. • Specific experience in tungsten processing. • Holds a B.Sc (Metallurgical Engineering) from Queen’s University, Canada. • Member / Fellow of: ‒ Australia
Slide 6: Welcome Non-Executive Director Anthony Edward (Tony) Gordon
WELCOME NON-EXECUTIVE DIRECTOR Anthony Edward (Tony) Gordon • Appointed 26 November 2013. • 25 years’ experience in financial markets. • Held Directorships and senior management positions with a number of Australian stockbroking and financial services companies.
Slide 7: Welcome Company Secretary Tom Bloomfield
WELCOME COMPANY SECRETARY Tom Bloomfield • Appointed 31 January 2013. • Following the resignation of Robert Waring. • Experienced Chartered Company Secretary who acts for numerous listed and unlisted companies. • Holds a Law Degree and is currently undertaking a Masters Degree at Sydney University.
Slide 8: Board Resignations
BOARD RESIGNATIONS • Andrew White resigned as a Non-executive Director on 31 January 2013. • Leon Pretorius resigned as Non-executive Chairman on 30 June 2013. • Fortunately, their invaluable technical expertise and extensive knowledge of the Mt Carbine Project will not be lost. • Will continue to a
Slide 9: Mt Carbine Mining Leases
• Mt Carbine Mining Leases Mt Carbine Cairns cover ~367 hectares. • Previous large scale, open-cut mine operated for 13+ years until 1987. • Detailed technical information from historical exploration and mining activity supports Carbine’s current & planned activities. • Transport infrastructure in p
Slide 10: Company evolution to major tungsten producer
Junior Diversified 2015 Onwards Exploration Company Significant Mine Development Major Tungsten Producer 2013 – 2014 Onwards 2014 Onwards Pure Play Tungsten Mining & Tungsten Stockpile Production Company Development & Production
Slide 11: Safety, environment and community
• Continually modified to keep pace with Company’s changing operational activities. • Carbine endeavours to engender and promote the values of a safe work place and work culture with all its employees and contractors. • Responsible environmental management is a basic and fundamental principle of Car
Slide 12: Statement of comprehensive income
2013 2012 $ $ REVENUE FROM ORDINARY ACTIVITIES AND OTHER INCOME 3,019,879 130,586 Cost of Sales Cost of sales (2,470,005) - Administration expenses (644,942) (294,147) Consultant expenses (451,374) (458,876) Depreciation (932,330) (290,977) Loss on revaluation of investments (1,361,013) (900,000) Ex
Slide 13: Capital Raising Activities
Capital Raising Activities • $340,725 raised through a Share Purchase Plan for the subscription of 4,543,009 shares. • $337,700 generated via the on-market sale of 7,500,000 ordinary shares in Fitzroy Resources Limited (ASX: FRY). • US$400,000 received from Mitsubishi Corporation RtM Japan Ltd (Mits
Slide 14: Funding Opportunities
Funding Opportunities • Detailed discussions and evaluations are on-going regarding the 2 Letters of Intent received in late 2012 for off-take and potential Project funding contributions. • Interim loan facility approved by Mitsubishi to maintain Hard Rock stockpile project work schedule whilst fina
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Slide 16: Tailings Retreatment Plant: Concentrate Shipments
Tailings Retreatment Plant CONCENTRATE SHIPMENTS High grade tungsten concentrate continues to be shipped to Mitsubishi RtMJ on a regular basis since the first consignment in June 2012. Further Off-take Agreement entered into with Mitsubishi RtMJ in September 2012. Latest Shipment Despatched 13 Septe
Slide 17: Tailings Retreatment Plant: Front-End Upgrade
Tailings Retreatment Plant COMPLETION OF FRONT-END UPGRADE SEPTEMBER / OCTOBER 2012
Slide 18: Tailings Retreatment Plant: Tungsten Recovery
Tailings Retreatment Plant TUNGSTEN RECOVERY Plant Upgrade Tungsten Recovery after Plant Upgrade
Slide 19: Tailings Retreatment Plant: Ultra-Fines Recovery Trial
Tailings Retreatment Plant ULTRA-FINES RECOVERY TRIAL
Slide 20: International Tungsten Industry Assn – Site Tour
International Tungsten Industry Assn – Site Tour CARBINE SHOWCASES AUSTRALIA’S TUNGSTEN INDUSTRY • 80 Delegates from major tungsten investment groups & other interested parties undertook a site tour on 26 September 2013. • Interest shown by the delegates in the Mt Carbine Project was extremely encou
Slide 21: Tungsten Stockpiles: Environmental Approvals
Tungsten Stockpiles ENVIRONMENTAL APPROVALS • Environmental Authority for EPML00956913 issued August 2013. • Covers existing tungsten stockpiles [~12 million tonnes of at-surface stockpiled material] with an annual processing capacity of up to 3 Million Tonnes per Annum (MTPA). • Commercial resource
Slide 22: Environmental Run-Off Diversion Works
ENVIRONMENTAL RUN-OFF DIVERSION WORKS
Slide 23: Tungsten Stockpiles – Debt Funding
Tungsten Stockpiles – Debt Funding MOU – MITSUBISHI RTMJ • MOU executed with existing off-take partner, Mitsubishi RtMJ, in February 2013, outlining Mitsubishi RtMJ’s support towards the development of Carbine’s existing hard rock stockpiles and historical open pit tungsten mine. • MOU covers both p
Slide 24: Tungsten Stockpiles: Economics
Tungsten Stockpiles ECONOMICS • 2010-2011 feasibility assessment based on the economics of processing an average grade of 0.075% WO3. • During 2013, 90 representative 10kg samples have assayed from .11% WO3 to .22% WO3. • If these grades are representative of the stockpile – a dramatic reduction in
Slide 25: Key Findings: Mt Carbine Project Outline
KEY FINDINGS Mt. Carbine Project Outline • Feasibility Study completed July NPV $161 million 2012 confirming the technical and Resources financial feasibility of the Mt Mine 47Mt @ 0.13% WO3 Carbine Project. Stockpile 12Mt @ 0.075% WO3 • Pre-tax Internal Rate of Return Tailings 2Mt @ 0.1% WO3 (IRR)
Slide 26: Project Timeline
PROJECT TIMELINE Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Procurement Low Grade EA Stockpile Plant Construction (10 Months) AWARDED Processing Commissioning Low Grade Stockpile Operation (up to 8 years) Duration allowed for Open Pit Permitting Process Hard Rock
Slide 27: Project development overview
2015 (Qtr 4) Open-Cut Mine PETERSEN’S LODE Q3 2013 2015 (Qtr 1 – Qtr 3) In Operation & IRON DUKE 2014 (Qtr 4) Open-Cut Mine ~10 year mine life 3 MTPA Stockpile Processing Establishment +/- 10 years Commences ~ 8 years mine life OPEN PIT 3 MTPA +/- 10 years STOCKPILE 1.5 - 3 MTPA 2013 (Qtr 4)-2015 (Q
Slide 28: Mt Carbine resource estimate
A review of estimated resources resulted in the following resource estimate being announced for the Mt Carbine Project: Inferred Mineral Resource of 47Mt @ 0.13%WO3 at a cut-off of 0.05% WO3, Indicated Mineral Resource Inferred Resource 18.1 million tonnes at 0.14% WO3, in situ 29.3 million tonnes a
Slide 29: APT tungsten price
APT (Europe) Price US$410+/MTU (September 2013) Coupled with the lower AUD these increased prices will have significant economic benefits for both the Tailings Retreatment and Hard Rock Projects.
Slide 30: Tungsten demand growth
Source: ITIA • Strong global growth – predicted to increase by 4.5% per annum over the next 5 years. • Predicted demand requires a number of mines, of a similar scale to Mt Carbine, to come into production every year. • Mt Carbine Project well positioned due to near term production capabilities.
Slide 31: Mt Carbine, Queensland
MT CARBINE, QUEENSLAND • Two prospects, Iron Duke and Petersen’s Lode, exist within EPM 14871 and 14872 and in the case of Iron Duke, the mining leases. • These prospects are dominated by scheelite mineralisation. • Mapping and sampling indicate both prospects have extensive strike length. • Work is
Slide 32: Iron Duke, Mt Carbine, Qld
IRON DUKE MT CARBINE, QLD Present mapped • Present resource estimate Low grade extent of Iron does not include any Iron Duke prospect Duke mineralisation. stockpile • Lies within the planned open-cut envelope. • Average true width 8m 6 holes in from 6 drill holes with an Iron Duke prospect average w
Slide 33: Petersen's Lodes - Mt Carbine, Qld
PETERSEN’S LODES - MT CARBINE, QLD • Lies within EPM 14872 and is ~1-2km south-east of Mt Carbine. • Sub-vertical 10m wide zone of scheelite mineralisation hosted by sheared and altered metasediments traced for 1.3 km along the strike. • More detailed exploration is planned. • Only record of product
Slide 34: Elizabeth Creek, Constance Range and Iron Pot Creek
Carbine’s strategy to focus predominately on tungsten production (with the exception of its tin prospect at Tara, NSW) has resulted in the following joint venturing or selling of its other prospects. ELIZABETH CREEK & CONSTANCE IRON POT CREEK, QUEENSLAND RANGE, QUEENSLAND • Spencer Resources Limited
Slide 35: Gossan Hill Gold, Tara, NSW
GOSSAN HILL GOLD TARA, NSW • Sovereign Gold Company • Future planning will be focused Limited (Sovereign) acquired on its tin and tungsten potential. 93.91% of Gossan Hill Gold Limited’s shares on 12 April • Previous exploration data and 2013. geophysical surveys have indicated that Tara is highly •
Slide 36: Focus and outlook
• Focus on funding and development of hard rock tungsten stockpiles and former open pit mine (Hard Rock Project). • Immediate priority – development of hard rock tungsten stockpiles due to commence in Quarter 4, 2013 – Strong production upside with ~8 year mine life potential. • Engineering, procure
Slide 37: Questions?
% CARBINE TUNGSTEN Questions?
Carbine Tungsten — Shareholder Meeting (November 2013) on 6ix