Cauldron Energy Limited · ASX:CXU
Cauldron Energy — Non-Deal Roadshow (June 2014)
30 slides from Cauldron Energy's roadshow presentation, Jun 19, 2014
Slide 1: Company Presentation announcement cover note
19 June 2014 Company Presentation For personal use only ABN 22 102 912 783 Australian resources company, Cauldron Energy Limited (ASX: CXU) (“Cauldron” 32 Harrogate Street, West Leederville WA 6007 or “the Company”) is pleased to attach a copy of the presentation which will be presented by Beijing J
Slide 2: Guangzhou Joseph Roadshow
For personal use only Guangzhou Joseph Roadshow June, 2014
Slide 3: Disclosure Statements
Disclosure Statements Forward Looking Statements For personal use only This presentation may include forward-looking statements with respect to achieving corporate objectives, developing additional project opportunities, the Company’s analysis of opportunities and the development of these and certai
Slide 4: Corporate Overview
Corporate Overview For personal use only UNDERVALUED COMPANY | PROJECTS POISED FOR GROWTH Capital Structure* Board & Management Ø Ordinary shares 178.56M Ø Tony Sage Chairman Ø Unlisted options 11.8M Ø Brett Smith Exec. Director Ø Qiu Derong Non-Exec. Director Ø Market cap. (AUD$0.31) A$55.18M
Slide 5: CXU Key Uranium Assets
CXU Key Uranium Assets For personal use only TOP-SHELF URANIUM AND BASE METAL ASSETS Australia Ø Yanrey Project, WA (U) Ø Bennet Well: Potential growing ISR opportunity Ø Leach Testing paves path to ISR (96%) Ø Marree Project, SA (Pb-Ag-Cu-Au) Ø Large target area with high grade mineralisation
Slide 6: Recent CXU News
Recent CXU News For personal use only CXU Secures AU$11 Million funding from China Jun 2014 Funding and new director secured from supportive shareholders and new Chinese investors CXU congratulates RNI and FEL on discovery May 2014 Cauldron major shareholder in FEL, a 20% free carry on RNI’s new dis
Slide 7: Bennet Well, Yanrey Region
Bennet Well, Yanrey Region For personal use only ISR SUITABILITY VALIDATED BY LEACH TESTS Ø Resource1 upgrade required Ø Core testing indicates significant Bennet Well uranium grade increase 122%-147% Ø Change to JORC 2012 Ø Drilling from Sept 2013 to be included Ø Leach tests have put Bennet W
Slide 8: Yanrey Regional Potential
Yanrey Regional Potential For personal use only WIDESPREAD URANIUM ALONG PALAEO COASTLINE SIMILAR TO BENNET WELL Ø Exploration Target(1) 30-115 Mlb @ 250-900 ppm eU3O8 to be reviewed following resource upgrade Ø Studies show grades above 250ppm eU3O8 (over 1m) are potentially economic for a ISR mi
Slide 9: Uranium Extraction Results
Uranium Extraction Results For personal use only BOTTLE ROLL TESTS CONFIRM HIGH URANIUM EXTRACTION Ø High levels of Uranium extraction achieved and Low Cost extraction anticipated Ø Bottle roll tests in acidic media without oxidant Ø Low acid consumption demonstrated Ø Uranium appears to exist i
Slide 10: Permeability vs Assays vs Leach Results – YNDD018
88.00m 55.8 md 88.10m 25.2 md Permeability vs Assays vs Leach Results – YNDD018 For personal use only URANIUM DISTRIBUTION WITH DEPTH HOLE YNDD018 START OF 89.95m – 95.05m Ø Image: mineralised zone in hole MINERALISED ZONE 5.1m @ 1209ppm U3O8 YNDD018 (red) and permeability data (yellow) 90.83m 4280
Slide 11: Yanrey Uranium Suited to ISR
Yanrey Uranium Suited to ISR For personal use only MINERALOGY PROVIDES REDOX ROADMAP Ø QEMSCAN and manual SEM testing strongly indicate several provenance areas for uranium mineralisation, all soluble = amenable to ISR Ø Uranium mineralisation forms in reducing environments Ø Reducing agents (zon
Slide 12: QEMSCAN/SEM Results
QEMSCAN/SEM Results For personal use only YNDD018 BENNET WELL START OF SOUTH MINERALISED ZONE Ø Dominant uranium- containing phase 89.95m – 95.05m with a chemical 5.1m @ 1209ppm U3O8 composition corresponding to the mineral SODIUM- ZIPPEITE Sample DD00418: Ø High recovery rates 93.25m – 93.40m sug
Slide 13: Yanrey 5yr Production Plan
Yanrey 5yr Production Plan For personal use only LOW CAPEX ISR PROJECTS PROVIDE GROWTH PLATFORM Ø Sandstone roll-front ISR operations production price : $8/lb - $16/lb globally Ø Revenue at $50/lb is 4-5 times C1 cash cost Ø Realistic production timeframe following first WA uranium mine to receiv
Slide 14: Potential World Class Deposits
Potential World Class Deposits For personal use only MARREE, SOUTH AUSTRALIA RIO COLORADO, ARGENTINA Ø Large poly-metallic alteration area, Ø 16km outcrop, 11m wide, open at depth numerous historical mining sites Ø multiple samples taken average grades Ø Geophysical anomalies undercover and >150
Slide 15: World Uranium News
World Uranium News For personal use only GLOBAL PROBLEM: GROWING DEMAND AND INSUFFICIENT SUPPLY China on Track to Beat 2020 Nuclear Power Targets Mar. 2014 China on track to meet nuclear power targets with new plant construction expected to resume shortly Japan to Restart 48 Nuclear Reactors Feb. 20
Slide 16: World Nuclear Energy Market
World Nuclear Energy Market For personal use only EMERGING ECONOMIES BANKING ON NUCLEAR POWER TO MEET ELECTRICITY DEMANDS Ø IAEA forecasts that if policies remain unchanged, world energy demand is projected to increase by over 50% by 2030* Ø Nuclear power is the lowest social and economic cost pow
Slide 17: China's Energy Market
China’s Energy Market For personal use only REFORMING ENERGY OUTPUT AND CONSUMPTION PATTERS Electricity demands growing at average annual rate of 10% Ø In 2013, installed power capacity rose by 94M kw, including 2.21M kw from nuclear Ø 6 new nuclear power facilities approved since end of 2012 Ø C
Slide 18: Uranium Market Analysis
Uranium Market Analysis For personal use only UNDERSUPPLY TO FUEL URANIUM RESTART +50% price growth by 2018* Total Reactors Under Construction Globally: 72 (~20% existing) Ø 2018 spot price to reach US$72/lb U3O8 Higher uranium prices essential Ø Non ISR incentive price +$70/lb U3O8 Ø Stagnated d
Slide 19: Demand Increase/Supply Decrease
Demand Increase/Supply Decrease For personal use only COMMODITY PRICE IS BIGGEST IMPEDIMENT TO SUPPLY GROWTH Ø Current uranium spot price $34.85/lb Ø production trigger price $85/lb Ø Secondary supply reducing Ø Less high enriched warheads Ø Tails retreatment not cost effective at current price
Slide 20: Socially Responsible Power
Socially Responsible Power For personal use only NUCLEAR ENERGY ESSENTIAL MAJOR POWER GENERATION SOURCE By 2020, China & India will need additional >40Mlb uranium: equivalent to ~40% of 2011 global mine supply Ø Low emission power: nuclear is the only carbon-free baseload source of electricity Ø M
Slide 21: Climate Change
Climate Change For personal use only NUCLEAR POWER ESSENTIAL TO THE GLOBAL RESPONSE Ø Climate change requires +60% reduction in greenhouse gas emissions Ø China, Japan, India, Pakistan, Argentina embrace nuclear power as essential to new domestic and global energy mix Conservative estimates of the
Slide 22: Investment Highlights
Investment Highlights For personal use only PREDICTED UPSURGE IN URANIUM PRICE POTENTIAL FOR SIGNIFICANT RETURNS ON INVESTMENT Ø Outstanding cash margin at low commodity prices Ø Commodity prices expected to more than double to meet world demand Ø Undervaluation of quality uranium miners creates
Slide 23: Contact Us
For personal use only CONTACT US Simon Youds David Tasker/ Colin Jacoby Cauldron Energy Limited Professional Public Relations 32 Harrogate Street Tel: +61 (8) 9388 0944 West Leederville WA 6007 M: +61 (0) 433 112 936 Tel: +61 (8) 6181 9796 E: david.tasker@ppr.com.au E: info@cauldronernergy.com.au ww
Slide 24: Appendix
For personal use only APPENDIX Pg 23
Slide 25: Permeability vs Assays vs Leach Results – YNDD022
PERMEABILITY VS ASSAYS VS LEACH RESULTS – YNDD022 For personal use only The image shown on the 58.90 – 60.00m left illustrates START OF 58.92m 1.1m 59.10m @ the MINERALISED Z55.8 ONE md 110 md 473ppm U3O8 mineralised 59.39m 59.58m 59.87m zone in hole 604 md 2400 md 3.48 md YNDD022 (red) and 60.06m p
Slide 26: QEMSCAN/SEM Results: YNDD022 (Bennet Well East)
QEMSCAN/SEM RESULTS: YNDD022 QEMSCAN analysis (BENNET WELL EAST) iden>fied URANIFEROUS For personal use only ZIRCONS and Sample DD00327: COFFINITE within 59.10m – 59.25m the YNDD022 START OF mineralised zone. 1208ppm U3O8 MINERALISED ZONE Manual SEM 58.90 – 60.00m examina>on 1.1m @ 473ppm U3O8 clearl
Slide 27: Modal Mineralogy for Samples DD00327 and DD00418
MODAL MINERALOGY FOR SAMPLES DD00327 (YNDD022) AND DD00418 (YNDD018) For personal use only MODAL ABUNDANCES IDENTIFIED BY QEMSCAN 100 Uranium Bearing Minerals in Higher Grade Intervals Trace & Others Mineral Chemical Formula YNDD022 YNDD018 Uranium Phase U, S, Si, Zr, O, Na 0.020 0.36 90 Total U-‐M
Slide 28: ICP-MS and DNA Assays vs Downhole Gamma Results
ICP-MS AND DNA ASSAYS VS DOWNHOLE GAMMA RESULTS Max Assay Probe Grade For personal use only Assay Assay ME-‐MS61 DNA Assay Grade Grade Grade Width Resource Depth Depth U308 U308 Hole ID Eas>ng Northing TD (m) RL (m) Width U308 Width Width Change Name From To (ppm) (ppm) (m) (ppm) (ppm.m) (ppm.m) (%
Slide 29: XRF Assays vs ICP and Downhole Gamma Results
XRF ASSAYS VS ICP AND DOWNHOLE GAMMA RESULTS Gamma For personal use only ICP XRF XRF to Assay Assay ICP XRF Probe ICP to Assay Assay Assay Gamma TD Resource Depth Depth U308 U308 Grade XRF Hole ID Eas>ng Northing RL (m) Width Grade Grade Probe (m) Name From To (ppm) (ppm) Width Change (m) Width Widt
Slide 30: Uranium Extraction Testwork
URANIUM EXTRACTION TESTWORK FINAL LEACH TESTS UNDERTAKEN AT ANSTO, NSW For personal use only Leach Results Leach tests undertaken in Sydney tap water in small agitated vessels to minimise matrix effects Leach No. Composite Test Type pH ORP (mV, Temp Es>mated Oxidant Feed U3O8 Residue Uranium Ag/AgCl