APC Minerals Limited · ASX:APC
APC Minerals — Goldphyre Resources — Investor Presentation (March 2016)
22 slides from APC Minerals's investor presentation, March 2016
Slide 1: Currently 100% of Australia's potash is imported
“CURRENTLY 100% OF AUSTRALIA’S POTASH IS IMPORTED. THE DEVELOPMENT OF A LOCAL SOURCE OF POTASH WOULD BE A SIGNIFICANT WIN FOR AUSTRALIAN FARMERS” Goldphyre Resources Limited Investor Presentation
Slide 2: Corporate Overview
CORPORATE OVERVIEW FOCUSSED ON STAKEHOLDER RETURN CAPITAL STRUCTURE ASX: GPH BOARD & MANAGEMENT / SHAREHOLDERS SHARES ON ISSUE* 145.9 MATT SHACKLETON EXECUTIVE CHAIRMAN BRENTON SIGGS TECHNICAL DIRECTOR OPTIONS ON ISSUE* 96.5 DEAN GOODWIN NON-EXEC DIRECTOR MARKET CAP @ $0.08 $11.6m CARSTEN KRAUT PRIN
Slide 3: Unique Investment Proposition
UNIQUE INVESTMENT PROPOSITION AUSTRALIAN POTASH FOR AUSTRALIAN FARMERS • WA brine hosted Sulphate of Potash (SOP) project • Aiming to feed the domestic demand for SOP which is currently 100% imported • Superior mining jurisdiction in the eastern goldfields of WA • Simple, well established brine extr
Slide 4: Lake Wells
LAKE WELLS LOCATION TRANSFORMATIONAL DEAL BRIEF HISTORY LOGISTICS THE PALAEOCHANNEL EXPLORATION TARGET Goldphyre Resources Limited Investor Presentation
Slide 5: Lake Wells Potash Project
LAKE WELLS POTASH Lake McKay (Agrimin) CAPEX A$TBD PROJECT 540kms north west of of Alice Springs LD (Reward Minerals) CAPEX A$320m Karinga Lakes (Rum Jungle Resources) 800kms south east of Port Hedland CAPEX A$93m – A$340m 200kms south west of Alice Springs IDEALLY POSITIONED TO Beyondie (Kalium Lak
Slide 6: Transformational Deal
TRANSFORMATIONAL DEAL LAKE WELLS PROJECT AREA TRIPLED IN SIZE • Transformational deal with one of the industry’s most prominent players • Deal with Mark Creasy owned Lake Wells Exploration Pty Ltd (LWE) announced December 2015*, closes by May 2016 • Triples the size of Goldphyre’s Lake Wells Potash
Slide 7: Brief History
BRIEF HISTORY RAPID PROGRESS • Q2 2016: Maiden JORC Resource estimate • Q2/Q3 2016: test bore & pumping trials, Going forward …. evaporation pond trials, process test work • Q3 2016: JORC Resource upgrade • Q1 2017: Measured JORC Resource MARCH 2016 estimate Exploration Target* of 6Mt – 37Mt (specif
Slide 8: Regional Infrastructure
REGIONAL INFRASTRUCTURE Goldphyre’s Lake Wells Potash Project sits adjacent to an air-strip, with road-train capacity haulage roads to the project’s door step GREAT CENTRAL ROAD 90km LAVERTON- STATION LEONORA ROAD 85km ROAD 125km LEONORA RAIL HEAD 280km LOW CAPEX PRODUCTION PATHWAY (TARGETING SUB $1
Slide 9: Exploration Target
EXPLORATION TARGET SPECIFIC YIELD considers the recoverability of the brine containing potash Exploration target using specific yield 6Mt – 37Mt Of recoverable SOP, at a grade range of 8,900 mg/l – 13,900 mg/L TOTAL POROSITY is a measure of the in-situ brine volume without regard to recoverability E
Slide 10: The Palaeochannel
THE PALAEOCHANNEL Pumping brine from palaeochannels is a common, simple process Drilling currently underway to upgrade Exploration Target on +40km of palaeochannel BASAL SAND AQUIFER HAS HIGHEST SPECIFIC YIELD Goldphyre Resources Limited Investor Presentation
Slide 11: Goldphyre's Lake Wells Potash Project is a valuable asset in a promising location
GOLDPHYRE’S LAKE WELLS POTASH PROJECT IS A VALUABLE ASSET IN A PROMISING LOCATION…… • POTASH PROJECTS NEED GRADE AND SCALE ✔ • BULK PROJECTS NEED INFRASTRUCTURE ✔ • EVAPORATION PROJECTS NEED A CONDUCIVE ENVIRONMENT ✔ • TRIED AND TESTED PRODUCTION METHODS DERISK DEVELOPMENT ✔ • BRINE FROM PALAEOCHANN
Slide 12: Derisking Lake Wells
DERISKING LAKE WELLS Q1 2016 Q2 2016 Q4 2016 Q1 2017 • Incorporate LWE data into exploration target Exploration target data area • n/a • n/a • n/a • COMPLETE • Brine sampling • Collect core for across horizons, Inferred resource porosity and specific geophysics • n/a • n/a yield analysis • PUBLISH R
Slide 13: Derisking Lake Wells
DERISKING LAKE WELLS Exploration target Inferred resource Indicated resource Measured resource Desktop studies n/a n/a n/a Auger sampling n/a Core drilling n/a Exploration drilling Geophysics Test bores n/a n/a Modelling n/a Environmental n/a n/a Reporting Not started Complete Goldphyre Resources Li
Slide 14: Compelling Opportunity
COMPELLING OPPORTUNITY IDEALLY POSITIONED FOR RAPID PROJECT DEVELOPMENT AND GROWTH • Very strong grades and scale • Moving quickly towards de-risked JORC Resource Estimates • Drilling currently underway • Well funded for next program of works: test pumping Q3 2016 • Strong and supportive shareholder
Slide 15: New Emerging Potash Player
NEW EMERGING POTASH PLAYER A$M Market Capitalisation 11 Agrimin AMN 17 Rum RUM 19 SO4 42 Reward RWD 58 0 10 20 30 40 50 60 70 Goldphyre Resources Limited Investor Presentation
Slide 16: Goldphyre Technical
GOLDPHYRE TECHNICAL POTASH 101 LOGISTICS PROJECT SPECS PROJECT ECONOMICS Goldphyre Resources Limited Investor Presentation
Slide 17: Potash 101
POTASH 101 Phosphorous Potassium: one of the 3 essential macro-nutrients Nitrogen MACRO NUTRIENTS Sulphate of Potash – SOP: the premium source of K from potash OTHER 10% Potassium SOP 10% GLOBAL CONSUMPTION C. 56MT PER ANNUM POTASSIUM BEARING SALTS & COMPOUNDS ARE CALLED POTASH MOP 80% Goldphyre Res
Slide 18: Potash SOP
POTASH SOP SOP is produced in several ways: the most expensive is the Mannheim process, the least expensive is through brine-evaporation 3% The average cost of production for a $US200 tonne of SOP from a brine hosted-evaporative operation 29% The average price of a tonne of 50% $US650 SOP fob Vancou
Slide 19: SOP Production
SOP PRODUCTION SOP held in brine is produced through evaporation Pumping Converting The palaeochannel bore- Schoenite is field pumps brine into converted, or evaporation ponds crystallised, into SOP Evaporating Processing Brines pass through evaporation ponds, dropping out salts along the way Harves
Slide 20: Competent Persons Statements
COMPETENT PERSONS STATEMENTS The Hydrogeological information in this report has been prepared by AQ2 with direction and review by Jeffery Lennox Jolly. Mr Jolly is a principal hydrogeologist with AQ2 and has over 30 years of international experience. He is a member of the AusIMM and the Internationa
Slide 21: Disclaimer & Forward Looking Statements
DISCLAIMER & FORWARD LOOKING STATEMENTS This presentation has been prepared by Goldphyre Resources Ltd (“GPH”). It contains background information about GPH current at the date of this presentation. The presentation is in summary form and does not purport to be all inclusive or complete. Recipients
Slide 22: Lake Wells Potash Project
LAKE WELLS POTASH PROJECT Street: 31 Ord Street, West Perth, Western Australia 6005 E-Mail: m.shackleton@goldphyre.com.au Mobile: + 61 (0) 438 319 841 www.goldphyre.com.au Goldphyre Resources Limited Investor Presentation
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