Rarex Limited · ASX:REE
Rarex — Investor Presentation (October 2020)
20 slides from Rarex's investor presentation, Oct 29, 2020
Slide 1: Exploring and developing rare earths projects in Australia
Exploring and developing rare earths projects in Australia Plus, high-potential copper-gold exploration in NSW Investor Presentation, October 2020 │ Jeremy Robinson, Managing Director
Slide 2: Disclaimer & Competent Person Statement
Disclaimer & Competent Person Statement This presentation contains summary information about RareX Limited (REE) and is current as of 10 October 2020. The information in this presentation is of a general background and does not purport to be complete. This presentation is not investment or financial
Slide 3: Investment Overview
Investment Overview • Strategically located asset: 100%-owned Cummins Range Rare Earths Project in Western Australia – Tier-1 mining jurisdiction • Significant maiden JORC 2012 Rare Earths Mineral Resource: Inferred Resource of 13Mt at 1.13% TREO with 22.1% NdPr • First Assays received up to 70m at
Slide 4: Corporate Snapshot
Corporate Snapshot Capital Structure Shareholders ASX Code REE Top 40 Shareholders 42% Number of Shareholders 3,839 Share Price (9 October 2020) $0.135 Shares on Issue 378m Share Price Market Capitalisation $51.0m Net Cash $2.5m Listed Investments (14.95m TSXV:KCC) $2.0m Enterprise Value $46.5m Boar
Slide 5: Rare Earth Elements
Rare Earth Elements • Rare Earths are a group of 17 elements essential to the new world economy – grouped into Light Rare Earth Elements (LREE) and Heavy Rare Earth Elements (HREE) • RareX is focused on the production of LREE’s Neodymium-Praseodymium (NdPr) which are critical to the manufacture of N
Slide 6: Rare Earth Permanent Magnets (REPMs)
Rare Earth Permanent Magnets (REPMs) Electric Vehicles • Whatever the type of EV (BEV, HEV PHEV) or the power source (Li Batteries, H Fuel Cells etc) they all use REPM motors. • Each EV requires approximately 1kg to 2kg of REPM which form part of an EV’s electric motor. EV sales are expected to grow
Slide 7: Rare Earths Market
Rare Earths Market • China dominates production of rare earths and rare earth magnets, historically accounting for 80% of global production and representing a strategic weakness for the United States of America • Rare earth prices extremely sensitive to trade disputes such as in 2011 when NdPr trade
Slide 8: Cummins Range Rare Earths Project
Cummins Range Rare Earths Project • Tier-1 mining jurisdiction: Located in the Kimberley region of Western Australia • Airstrip and township nearby: 130km from Halls Creek Township and Airstrip. • Good access: Accessible via Great Northern Highway, Tanami Track and pastoral tracks. • Established min
Slide 9: Substantial Maiden JORC 2012 Resource
Substantial Maiden JORC 2012 Resource • Significant maiden JORC 2012 Inferred Resource of 13Mt at 1.13% TREO released 15 October 2019 • Neodymium and Praseodymium “NdPr” content of 22.1% and ultra low thorium of 50ppm ThO2 equals premium product • Weathered carbonatite with REE mineralisation mostly
Slide 10: Recent High Grade Drill Results
Recent High Grade Drill Results • 36m at 4.6% TREO and 0.32% Nb2O5 from surface • Inc 3m at 25.1% TREO and 0.45% Nb2O5 • 41m at 4.0% TREO and 0.21% Nb2O5 from surface • Inc 3m at 13.9% TREO and 0.25% Nb2O5 • Highlights potential for high grade starter pit
Slide 11: Recent High Grade Recent Drill Results
Recent High Grade Recent Drill Results • 90m at 3.8% TREO and 0.29% Nb2O5 from surface • Inc 20m at 5.1% TREO and 0.29% Nb2O5 • Inc 3m at 11.3% TREO and 0.48% Nb2O5 • Inc 32m at 4.4% TREO and 0.30% Nb2O5 • Inc 5m at 9.0% TREO and 0.56% Nb2O5 • Inc 17m at 5.1% TREO and 0.32% Nb2O5 • Demonstrates cont
Slide 12: Recent High Grade Drill Results
Recent High Grade Drill Results • 109m at 3.6% TREO and 0.44% Nb2O5 from surface • Inc 70m at 5.4% TREO and 0.64% Nb2O5 • Inc 9m at 7.5% TREO and 1.5% Nb2O5 • Inc 13m at 10.7% TREO and 1.04% Nb2O5 • Inc 8m at 9.1% TREO and 0.5% Nb2O5 • Niobium represent potential highly valuable by-product – worth o
Slide 13: Low Capital Strategy
Low Capital Strategy • Rare Earth mineralogy dominated by monazite – the most SIMPLIFIED FLOWSHEET well understood Rare Earth Mineral from a processing perspective • RareX consulting metallurgist Mr Gavin Beer to lead metallurgical testwork on completion of final assays • Strategy is to produce a sa
Slide 14: Exploration – Weld North
Exploration – Weld North • Drilling to commence in November • Contains a 5km wide airborne magnetic circular anomaly which RareX considers may be caused by an REE- bearing circular carbonatite intrusive complex • Sits below regolith cover which masks the buried bedrock source for this magnetic anoma
Slide 15: NSW Copper-Gold Assets
NSW Copper-Gold Assets • RareX retains a 35% free-carried interest over multiple projects and owns 7.8% of TSX:V-listed Kincora Copper • Kincora is currently completing successful 3,800m drill program at flagship Trundle project comprising six deep holes with assays up to 51m at 1.17g/t Au and 0.54%
Slide 16: Trundle Project – 35% Free-Carried
Trundle Project – 35% Free-Carried • The only brownfield porphyry project held by listed juniors in the Macquarie Arc • Trundle is the western section of the Northparkes intrusive complex, which hosts the second largest porphyry mine in Australia • Exploration being driven by highly experienced team
Slide 17: Trundle Project – Trundle Park Target
Trundle Project – Trundle Park Target • 51m at 1.17g/t Gold and 0.54% Copper from 39m in skarn at Trundle Park • Similar in style to the Big Cadia skarn that is peripheral to the Cadia porphyry copper-gold deposits • Highly encouraging 21.5m at 0.25g/t Gold and 0.03% Copper to EOH in lower porphyry
Slide 18: Orange East – 100% Owned
Orange East – 100% Owned • Located ~15km along strike from Regis Resources’ 2Moz McPhillamys Gold Deposit • Strong geological and geochemical similarities to McPhillamy’s including: Both hosted in the Silurian volcaniclastic rocks of the Anson Formation adjacent to the GCFZ Both have coincident
Slide 19: Key Investment Takeaways
Key Investment Takeaways High-quality, advanced Rare Earth Project in WA Recently completed major drilling program with significant assays Building a portfolio of high-quality Rare Earth assets Significant exposure to NSW porphyry copper-gold exploration 100%-owned NSW gold exploration pro
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