Earths Energy Ltd · ASX:EE1
Earths Energy — Cradle Resources — Investor Presentation (January 2014)
29 slides from Earths Energy's investor presentation, January 2014
Slide 1: Panda Hill Niobium Project
Panda Hill Niobium Project January 2014
Slide 2: ASX Capital Structure
ASX Capital Structure Issued Shares* 128,675,017 Unlisted options (May 2016 at 26.7c) 7,687,500 Listed options (January 2015 at 26.7c) 15,962,506 Total Options 23,650,006 * Included in Issued Shares is 37,500,000 performance shares: • Half subject to the completion of a scoping study • Half subject
Slide 3: Project Ownership
Project Ownership • Cradle owns 50% of the Panda Hill Project with management control • Cradle has an option to purchase the remaining 50% before March 2017 • The option exercise price is ~US$14 million*, of which US$9 million is payable in cash and US$5 million in shares or capped royalty. * The pr
Slide 4: What is Niobium?
What is Niobium? Niobium (Nb) is used as an alloy to make steel harder Nb steel is known as high strength, low alloy steel (HSLA) Niobium Properties: • Strengthens steel and lightens • Corrosive resistant properties • High temperature tolerance Millau Viaduct, France Main growth industries: • Automo
Slide 5: Niobium Demand
Niobium Demand • HSLA is a well known, commonly used steel product: • About 20% of steel produced in developed countries is HSLA • Compared to about 10% of steel in developing countries • Solid demand growth is expected over the next six years (~30%) • Growth in Nb demand is a combination of: • Gene
Slide 6: Niobium Supply
Niobium Supply • Only three existing producers (CBMM, IAMGOLD, Anglo American) • No new producers since 1976, even though market has grown several fold • Limited suppliers result in highly stable Nb prices • Panda Hill will initially add 3.3% to annual supply • No greenfields supply under constructi
Slide 7: Panda Hill Niobium Project
Panda Hill Niobium Project • Located in Mbeya region, Tanzania • Excellent local infrastructure (grid power, roads, rail) • 98 holes drilled 1950 – 1990s • 13 confirmatory holes drilled 2013 Panda Hill, Mbeya 7
Slide 8: 2013 Updated JORC Inferred Resource
2013 Updated JORC Inferred Resource 82 Mt at 0.52% Nb2O5 (at 0.30% cut-off) • Resource verified and increased by recent in-fill drilling program • Resource estimated by Coffey Mining, independent mining consultants • Includes a weathered cap – 11 Mt at 0.80% Nb2O5 • Resource is open at depth and to
Slide 9: Niobium Extraction Process
Niobium Extraction Process Well known, simple extraction process similar to base metals • Two stage flotation to produce a concentrate (~50% Nb2O5) • Then a converter to produce FeNb (~66% Nb) • This process is used by all existing Niobium producers • FeNb is marketed directly to steel mills as a di
Slide 10: Scoping Study
Scoping Study Scoping study will be completed in January 2014 • Base case - 2 Mtpa operation • Most study items will be to pre-feasibility level • Resource update and mining study (Coffey) • Metallurgical test work (SGS Lakefield) • Capital and operating costs estimates (Lycopodium) • Social and env
Slide 11: Project Metrics
Project Metrics Panda Hill is a robust project From work completed, the scoping study is expected to demonstrate: • First 10 years mine life > 0.7% Nb2O5 • Low cash costs/high margin operation • Short payback period • Capital cost ~ US$190M for 2 Mtpa throughout • Long mine life 11
Slide 12: Niobec – Case Study
Niobec – Case Study Niobec is an existing Nb producer (a subsidiary of IAMGOLD, TSX listed) • A 2m tpa underground operation located in Canada • Same flow sheet as Panda Hill, except underground mining • Characterised by solid earnings and a stable metal price Nb Price EBITDA Head grade Year US$ US$
Slide 13: Estimated Cost to DFS
Estimated Cost to DFS Drilling Program US$4.0M Metallurgical Test work US$2.2M ESIA US$0.7M Engineering US$1.5M Corporate US$1.6M Total US$10.0M PFS completed in 3rd Quarter 2014 ~US$6M 13
Slide 14: Planning Schedule - PFS
Planning Schedule - PFS Project Activities Q1 2014 Q2 2014 Q3 2014 Q4 2014 Prefeasibility Study Project Planning / Contracting Resource / Infill Drilling Mineral Resource / Mining Metallurgical Testwork Preliminary Engineering Environmental & Social Impact Assessment Reporting 14
Slide 15: Production Scenario's - PFS
Production Scenario’s- PFS Scenario Production Metric Description Initial Plan 2 Mtpa - Base case capital Optimised pit shell with all - Base case OPEX capital committed upfront for - Base case production final expected production output Modular Plan 1 Mtpa with - Significant reduced upfront capital
Slide 16: Planning Schedule - DFS
Planning Schedule - DFS Project Activities Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Definitive Feasibility Study Project Planning / Contracting Infill Drilling Resource Definition Mining / Reserve Definition Piloting Testwork Basic Engineering Environmental & Social Impact Assessment Reporting 16
Slide 17: Project Summary
Project Summary • Scoping study complete in January 2014 • Main focus of PFS: • Increase the confidence of the Mineral Resource Estimate • 15 – 20 million tons in indicated • Complete metallurgy development work on the primary and secondary rock types • Continue with ESIA baseline study • Scenario p
Slide 18: Disclaimer and Competent Person
Disclaimer and Competent Person The summary information contained herein has been provided by Cradle Resources (“Cradle” or the “Company”). No representation, express or implied, or warranty as to the accuracy or completeness of the information contained herein is made by any party and nothing conta
Slide 19: Appendix
yaw (CRADLE RESOURCES LIMITED Appendix
Slide 20: 2013 Updated JORC Resource by Coffey Mining
2013 Updated JORC Resource by Coffey Mining 2013 Panda Hill 2013 Resource – Reported Above a 0.3% Nb2O5 Lower Cut-off^ Combined Lower Cut-off Million Tonnes Nb2O5 % Nb2O5 Content (KT) (Nb2O5%) Indicated 5.4 0.62 33 Inferred 76.4 0.51 390 Total 81.8 0.52 423 Weathered Carbonatite Lower Cut-off Millio
Slide 21: Resource Region and Exploration Focus
Resource Region and Exploration Focus • Area to south and north poorly explored historically • 800m trend • 3 historical holes show mineralisation of up to 1.4% Nb2O5 • Resource open at depth and only drilled to 90m vertically on average. Exploration Focus 21
Slide 22: Scoping Study
Scoping Study Maturity Matrix - Panda Hill Niobium Project General Project Data Classification Effective Study Level Company Project Scope Definition Preliminary Scoping Study Cradle Facility Capacity Defined Pre-feasibility Study Cradle Plant / TSF Location Preliminary Pre-feasibility Study Knight
Slide 23: Assay Results Confirm Historical Drilling
Assay Results Confirm Historical Drilling • Pervasive mineralisation, open at depth and along strike • High-grade zones identified • Boundaries of mineralisation extended 23
Slide 24: Assay Result – Section A
Assay Result – Section A PHDH004* : • 40m @ 0.51% Nb2O5 (3.2g/t Au equivalent1) • 49m @ 0.4% Nb2O5 (2.5 g/t Au equivalent1) PHDH006* : • 59m @ 0.77% Nb2O5 (4.7g/t Au equivalent1) • 17m @ 1.03% Nb2O5 (6.3 g/t Au equivalent1) *Note: 1 Au equivalent grades have been based upon a Au spot price of US
Slide 25: Assay Result – Section B
Assay Result – Section B PHDH001* : • 116m @ 0.76% Nb2O5 (4.5g/t Au equivalent1) PHDH002* : • 60m @ 0.81% Nb2O5 (5g/t Au equivalent1) PHDH007* : • 67m @ 0.54% Nb2O5 (3.4g/t Au equivalent1) PHDH010* : • 48m @ 1.09% Nb2O5 (6.8g/t Au equivalent1) • 16m @ 0.84% Nb2O5 (5.2g/t Au equivalent1) • 11
Slide 26: Assay Result – Section C
Assay Result – Section C PDHD003* : • 103m @ 0.76% Nb2O5 (4.5g/t Au equivalent1) PDHD009* : • 22m @ 0.60% Nb2O5 (3.7g/t Au equivalent1) PDHD013* : • 62m @ 0.50% Nb2O5 (3.1g/t Au equivalent1) 26
Slide 27: Assay Result – Section D
Assay Result – Section D PDHD008* : • 46m @ 0.56% Nb2O5 (3.5g/t Au equivalent1) PDHD011* : • 39m @ 0.41% Nb2O5 (2.5g/t Au equivalent1) • 24m @ 0.45% Nb2O5 (2.8g/t Au equivalent1) 27
Slide 28: Assay Result – Section E
Assay Result – Section E PDHD012* : • 13m @ 0.74% Nb2O5 (4.6g/t Au equivalent1) • 35m @ 0.53% Nb2O5 (3.3g/t Au equivalent1) • 14m @ 0.69% Nb2O5 (4.3g/t Au equivalent1) 28
Slide 29: For additional information contact
For additional information contact: Grant Davey Managing Director admin@cradleresources.com.au +61 8 9389 2000
Cradle Resources — Investor Presentation (January 2014) on 6ix