Slide 1: Shareholder Presentation
Shareholder Presentation 14 October 2021
Slide 2: An Important Disclosure
An Important Disclosure The information contained in this document, including any information and opinions contained or discussed in any accompanying oral presentation, question and answer session and any other materials distributed in connection with this document (the ‘Presentation’) has been prep
Slide 3: Company Portfolio
Company Portfolio ➢ Extending the signature of major world class porphyry discovery in New South Wales Australia ➢ Operating small scale alluvial and primary gold deposits in the Manica province ➢ Exploring and developing small mine copper projects in Zambia
Slide 4: Copper
Copper ➢ Copper is the 3rd best conductor of electricity and heat ➢ Energy efficiency could lead to a 40% reduction in CO2 emissions ➢ Solar and wind require 4 to 12 times more copper per kw ➢ Electric vehicles use up to 4x as much copper as conventional vehicles and are expected to grow to 72% of t
Slide 5: Electric Vehicles Require 3-4x increase in copper use
Electric Vehicles Require 3-4x increase in copper use from a conventional combustion engine By 2027 copper demand stemming from electric vehicles is expected to increase by 1.7 million tonnes (BHP) The average person uses over half a tonne of copper in their lifetime (Anglo American) Global populati
Slide 6: Solar and wind growth projected to increase copper demand by 56% by 2027
Growth in solar and wind energy projected to increase copper demand by 56% by 2027, over 2018 levels
Slide 7: Global wind turbine fleet to consume more than 5.5 million tonnes of copper
Global wind turbine fleet to consume more than 5.5 million tonnes of copper by 2028* In Denmark, wind turbine blades are 82m long, wider then the total wingspan of the A380 jet *Wood McKenzie
Slide 8: 5.7 million tonne deficit in projected copper demand
There is a 5.7 million tonne deficit in projected rising demand for copper* *Ivanhoe Mines
Slide 9: Porphyry’s projected to dominate global copper production
Porphyry’s are projected to dominate global copper production to meet rising demand S. Northey, S. Mohr, G.M. Mudd, Z. Weng, D. Giurco: 2014. Modelling future copper ore grade decline based on a detailed assessment of copper resources and mining. Elsevier.
Slide 10: Copper Porphyry Deposit Model
Copper Porphyry Deposit Model High-grade mineralised cap preserved close to surface within the conceptual open pit model
Slide 11: Mineable grade has decreased to the lowest ever levels
As copper demand has increased mineable grade has decreased to the lowest ever levels Mineable deposits are very large and have Bushranger Racecourse Inferred an average grade of 0.44% Cu Mineral Resource of 71Mt at 0.44% cu *Source – Izatt Reed Porphyry Tonnage Model (Research Gate) *Source USGS Up
Slide 12: The majority of porphyries are found in magmatic arc settings
The majority of porphyries are found in magmatic arc settings 203,900 Mt Cu per year 559,000 Mt Cu per year 320,744 Mt Cu per year 106,000 Mt Cu per 1,000,000 Mt Cu per year year *source – Visual Capitalist
Slide 13: Mining isn’t standing still either
Mining isn’t standing still either *Source: Wenco Mining Systems ➢ Automated vehicles (UAVs), artificial intelligence, machine learning, data visualisation ➢ Increased productivity ➢ Increased efficiency ➢ Increased health & safety ➢ Reduced wear & optimisation of equipment ➢ Equipment failure predi
Slide 14: Copper Porphyry Mines are Among the Biggest in the World
Copper Porphyry Mines are Among the Biggest in the World Boliden Aitik Mine, Sweden ➢ 3km long, 450m deep ➢ 2020 production 41,661 kt ore at 0.24% Cu (*Boliden 2020 operations report) ➢ Operated by 570 tonne trucks ➢ Automated mine, electrified trucks in 2019 Wembley Stadium, London Aitik 320m *Sour
Slide 15: Escondida, Chile and Bingham Canyon, USA
* Google Earth Escondida, Chile • The highest producing copper mine in the world • It’s 2007 production of 1.483 Mt Cu was worth US$10.12bn • 4km long, 3km wide and 645m deep Bingham Canyon, USA • The world’s deepest open pit mine at 1,200m deep • Has been in production since 1906 and has produced 2
Slide 16: Australia
Australia ➢ The world’s 6th largest producer or copper in 2020 ➢ Annual copper production of 934,000 Mt in 2020 (INN Investing News) ➢ Australia is a parliamentary democracy and a Constitutional monarchy ➢ Australia is one of the most resilient and best performing advanced economies in recent decade
Slide 17: Australia – Advanced Exploration
Australia – Advanced Exploration Bushranger Porphyry Copper-Gold ➢ 100% interest in the Bushranger copper-gold project in eastern central NSW, Australia ➢ Large, highly prospective copper-gold porphyry project in Lachlan Fold Belt ➢ Comprises four exploration licences totalling 501sq km ➢ Hosts Race
Slide 18: Lachlan Fold Belt NSW
Lachlan Fold Belt NSW A World-Class Mining District ➢ Located in the Lachlan Fold Belt, Australia’s world-class copper-gold province ➢ Excellent infrastructure/low-cost jurisdiction ➢ Major existing mines on Belt, such as Cadia-Ridgeway (Newcrest) & North Parkes ➢ Recent discoveries of large porphyr
Slide 19: Bushranger – Racecourse Deposit - Potential Scale
Bushranger – Racecourse Deposit - Potential Scale ➢ Very large porphyry system with apparent multiple shoots ➢ Current surface extent of Inferred Mineral Resource covers 1.8km x 0.4km ➢ Mineralisation drilled from near surface to at least 800m depth & is open down plunge to the NW and along strike t
Slide 20: Racecourse Drilling Programme
Racecourse Drilling Programme ➢ Phase 1 programme of 6 core holes completed by Xtract in April 2021 successfully tested the down-plunge continuity of the deposit to the NW ➢ Phase 2 programme commenced in July 2021 with two drill rigs – an initial 8,000m drilling planned, with further drilling to fo
Slide 21: Racecourse Phase 2 Drilling Programme
Racecourse Phase 2 Drilling Programme Focussed on shallower high grade zones with open pit potential Highest copper grades at shallow depths near crest of porphyry system targeted in Phase 2 drilling by Xtract - aim to test and expand the open pit potential Racecourse drill layout plan
Slide 22: Bushranger – Racecourse Conceptual Open Pit
Bushranger – Racecourse Conceptual Open Pit Racecourse Internal Open Pit Study Parameters Item Parameters Resource JORC - compliant Inferred Mineral Resource of 74Mt @ 0.44% Cu and 0.064 g/t Au at a cut-off of 0.3% Cu, + additional unclassified resources Production rates 15Mtpa @ 0.4% Cu at 0.15% Cu
Slide 23: Racecourse – Phase 2 Drilling Programme
Racecourse – Phase 2 Drilling Programme Assay intervals for initial holes Hole No. From To (m) Interval Cu (%) Au (g/t) Ag (g/t) CuEq (%) (m) (m) BRDD-21- 204.00 388.00 184.00 0.47 0.03 3.0 0.51 008 incl. 204.00 213.00 9.00 0.84 0.08 1.8 0.90 and 252.00 298.00 46.00 0.66 0.04 5.1 0.72 incl. 290.00 2
Slide 24: Mozambique
Mozambique ➢ Mozambique has been in a long period of relative stability, headed by the FRELIMO governing body since independence from Portugal in 2015 ➢ 2017 estimated GDP growth rate was 3.7% and the country has excellent growth potential ➢ The rising star is the countries extractive sector, with m
Slide 25: Mozambique - Manica Alluvial Gold Mining
Mozambique - Manica Alluvial Gold Mining Mining Contractors ➢ Huafei Gold Resources appointed in January 2019 to mine the alluvials of the entire concession ➢ Agreement provides for Explorator to retain net percentage of the gold mined (after settlement by Explorator of the Mining Production Tax) of
Slide 26: Manica Alluvial Mining
Manica Alluvial Mining Sub-contracted
Slide 27: Manica Hard Rock Gold Project
Manica Hard Rock Gold Project Mutapa Mining (“MMP”) Collaboration Agreement ➢ Operational and funding agreement for Manica hard rock gold deposits concluded in May 2019 ➢ MMP to finance and conduct mining operations to include all capital and operating costs ➢ Agreement provides for MMP to build and
Slide 28: Manica Hard Rock Gold Project
Manica Hard Rock Gold Project Mutapa Mining Processing Plant Under Construction
Slide 29: Zambia
Zambia ➢ Since 1991, Zambia has been undertaking major economic reforms that have spurred increased investment and trade ➢ The world’s 8th top producer of copper in 2020, Africa’s second largest copper producer after the DRC ➢ Produced 830,000 Mt copper in 2020 (INN Investing News) a record high and
Slide 30: Zambia - Advanced Exploration
Zambia - Advanced Exploration Eureka Cu Project ➢ Xtract has option to acquire initial 50% interest in project in Eureka project Eureka Project, Zambia – Selected Phase 2 Drill Core ➢ Eureka straddles a major 3.5km NW- Analytical Intervals trending soil anomaly Hole No. Hole Angle Depth Depth Width
Slide 31: Zambia - Advanced Exploration
Zambia - Advanced Exploration Eureka Cu-Au Project – Bulk Testing for Production ➢ Eureka drilling programme aiming to define a copper resource to sustain a 250,000 tpa open pit mine for at least 3 years ➢ Modelling of deposit undertaken by Addison Mining Services of the UK ➢ Excavations under way t
Slide 32: Zambia – Kalengwa Cu-Ag Project
Zambia – Kalengwa Cu-Ag Project View of part of the Kalengwa mine dumps ➢ Historic open pit production of 1.9Mt @ 9.44% Cu, 50g/t Ag from 1970-1982 ➢ Xtract assessing options for re-processing mine dumps and tailings – potential to contain up to 25,000 tonnes of copper ➢ Pit also has significant pot
Slide 33: Board of Directors
Board of Directors Colin Bird Executive Chairman Colin Bird is a chartered mining engineer with multi commodity mine management experience in Africa, Spain, Latin America and in the Middle East. He has been the prime mover in a number of public listings in the UK, Canada and South African and is cur
Slide 34: Corporate Information
Corporate Information Number of ordinary shares in issue: 845,143,693 Current share price: 5.40p AIM Code: XTR Current Market Capitalisation: GBP46M Xtract Resources Plc 7/8 Kendrick Mews, London, United Kingdom, SW7 3HG Tel: +44 (0) 203 416 6471 | Fax: +44 (0) 207 589 7806 www.xtractresources.com
Slide 35: Compelling Investment Case
Compelling Investment Case ➢ Potential for proving a major world class porphyry copper project in NSW, Australia ➢ Near term cash flow building up in Mozambique and Zambia ➢ Experienced management team in exploration, development and production ➢ Any project in the portfolio has the ability to suppo
Slide 36: Thank You
¢, xtract Thank You