Eq Resources Limited · ASX:EQR
Eq Resources — Carbine Tungsten — Shareholder Meeting (November 2014)
38 slides from Eq Resources's shareholder meeting presentation, Nov 12, 2014
Slide 1: Carbine Tungsten Limited 2014 Annual General Meeting
Carbine Tungsten Limited ASX Code: CNQ Jim Morgan, Managing Director & CEO 2014 Annual General Meeting 12 November 2014
Slide 2: Disclaimer
DISCLAIMER Forward Looking Statements Some statements in this presentation relate to the future and are forward looking statements. Such statements may include, but are not limited to, statements with regard to intention, capacity, future production and grades, projections for sales growth, estimate
Slide 3: Meeting agenda
1. Chairman’s Welcome 2. Housekeeping 3. Notice of Meeting to be Read or Taken as Read 4. Minutes of 2013 AGM 5. Chairman’s Address 6. Resolutions 7. Managing Director / CEO Report 8. Other Business 9. Meeting Close
Slide 4: The Carbine Tungsten Team
THE CARBINE TUNGSTEN TEAM Board of Directors Russell Krause Jim Morgan Rolly Nice Non-Executive Chairman Managing Director / CEO Non-executive Director Board Resignation • Tony Gordon resigned as a Non-executive Director on 10 November 2014. • The Board of Carbine would like to sincerely thank Tony
Slide 5: Historical Mt Carbine mine and infrastructure
• Previous large scale, open cut mine operated for 13+ years until 1987. Detailed technical information from historical exploration and mining activity strongly supports Carbine’s current and planned activities. • Transport infrastructure in place: ‒ Historical Mt Carbine tungsten mine is located 13
Slide 6: Junior Diversified Exploration Company to Major Tungsten Producer
Junior Diversified 2016 Onwards Exploration Company Significant Mine Development Major Tungsten Producer 2013 Onwards 2014 - 2015 Onwards Pure Play Tungsten Mining & Tungsten Stockpile Production Company Development & Production
Slide 7: Safety, environment and community
• Continually modified to keep pace with Company’s changing operational activities. • Carbine endeavours to engender and promote the values of a safe work place and work culture for all its employees and contractors. • Responsible environmental management is a basic and fundamental principle of Carb
Slide 8: Comprehensive Statement of Profit and Loss as at 30 June 2014
2014 2013 Comprehensive Statement of Profit and Loss as at 30 June 2014 Note $ $ Revenue from ordinary activities 2 614,208 1,494,191 Other income 2 332,818 171,204 Cost of Sales Cost of sales (1,682,193) (2,470,005) Administration expenses (511,497) (644,942) Consultant expenses (472,957) (451,374)
Slide 9: Share price as at close of trade 11 November 2014
As at Close of Trade on 11 November 2014 Source: ASX Website http://www.asx.com.au/asx/research/companyInfo.do?by=asxCode&asxCode=CNQ
Slide 10: Capital Raising Activities
Capital Raising Activities • $709,750 raised via a share placement to professional and sophisticated investors in November 2013. The placement of 12,904,546 shares carried one unlisted option for every two shares taken up with a strike price of $0.10 and a term of 12 months. • $97,850 raised via an
Slide 11: Hard Rock Stockpile and Open Pit Project updates
Hard Rock Stockpile Project:- • Execution of loan documentation for US$15 million secured loan (including prepayment fund of previous US$1 million loan) which was approved by the Board of Mitsubishi RtMJ in late September 2014. Open Pit Project:- • Continue to progress discussions with two internati
Slide 12: Key Findings Re-Cap
KEY FINDINGS RE-CAP Mt. Carbine Project Outline • Feasibility Study completed July NPV $161 million 2012 confirmed the technical and Resources financial feasibility of the Mt Mine 47Mt @ 0.13% WO3 Carbine Project. Stockpile 12Mt @ 0.075% WO3 • Pre-tax Internal Rate of Return Tailings 2Mt @ 0.1% WO3
Slide 13: Mt Carbine Lowest CAPEX Tungsten Project
Mt Carbine Lowest CAPEX Tungsten Project
Slide 14: Hard Rock Stockpile Project
Slide 15: Funding
Funding MITSUBISHI RTMJ • Carbine successfully completes the technical due diligence phase of the funding negotiations with Mitsubishi RtMJ in April 2014. • US$15 million secured loan (including prepayment fund of previous US$1 million loan) approved by Mitsubishi RtMJ Board in late September 2014.
Slide 16: Environmental Approvals
Environmental Approvals • Environmental Authority for EPML00956913 issued August 2013. • Plan of Operations approved by Department of Environment and Heritage Protection. • Financial Assurance in place. • Covers existing tungsten stockpiles [~12 million tonnes of at-surface stockpiled material] with
Slide 17: Work Completed to Date
Work Completed to Date • Detailed Process Flow Diagrams (PFD) for processing the stockpiled ore to final wolframite and scheelite concentrates 71% WO3. LGSP Ore Sulphide Cleaning +500mm Sink Floats Reject SP Scalping Sulphide & Arsenic Rejects -500mm Primary Crush Dry Magnetic -50 +10mm Secondary
Slide 18: Work Completed to Date Cont…
Work Completed to Date Cont… • Detailed mass-metal balance associated with PFDs; • Detailed equipment list; • Operating costs; • Financial Modelling; and • Jigging tests on:- ‒ Open pit reef ore; ‒ Ore sorter accepts from 2010 Ore Sorter Tests of Stockpiled Ore confirmed mineralogy similar to Pit RO
Slide 19: Stockpile & Open Pit - Project Timeline
STOCKPILE & OPEN PIT - PROJECT TIMELINE Q3 2013 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Procurement Low Grade Stockpile Plant Construction (10 Months) Processing Commissioning Low Grade Stockpile Operation (up to 8 years) Duration allowed for Open Pit Permitti
Slide 20: Open Pit Project
Slide 21: Funding Options
Funding Options MITSUBISHI RTMJ • MOU executed in February 2013 outlined Mitsubishi RtMJ’s continued support towards the development of Carbine’s hard rock stockpiles and historical open pit tungsten projects. • Includes off-take consideration for 50% of the ore produced from the historical open pit
Slide 22: Work Completed to Date: Mine Planning
Work Completed to Date MINE PLANNING Detailed mine planning has commenced, with the preparation of detailed geological plans and sections incorporating a study of the Ruby Zone as a means of providing high grade ore feed to the start-up ore sorting and milling process. Geological 350mRL Level Plan
Slide 23: Work Completed to Date: Mining Sequence
Work Completed to Date MINING SEQUENCE - OPEN PIT RUBY ZONE BENCHES The following slide shows an image for the start of the open pit mining sequence of the Upper Ruby Zone benches of the existing pit. Advantages of this approach:- • Existing excavated areas show broken ore on surface containing wolf
Slide 24: Mining Sequence – Open Pit Ruby Zone Benches
Work Completed to Date MINING SEQUENCE – OPEN PIT RUBY ZONE BENCHES
Slide 25: Tailings Retreatment Plant
Tailings Retreatment Plant
Slide 26: Environmental Compliance
ENVIRONMENTAL COMPLIANCE Run-off Water Diversion Works Completed and Overall Site Water Management Plan Finalised
Slide 27: 2012 JORC Compliance achieved during 2013/2014
2012 JORC Compliance achieved during 2013/2014 Resource Summary - July 2014 (No Change from 2014) Tungsten Resource as WO3 Cut-off Grade Tonnes WO3 WO3 Resource Resource (%) (Mt) (%) (mtu) 0.075 840,000 Low Grade Stockpile Indicated 0.00 12.0 Main Zone Hard Rock Indicated 0.05 18.0 0.140 2,520,000 M
Slide 28: International Tungsten Industry Assn – Site Tour
International Tungsten Industry Assn – Site Tour CARBINE SHOWCASES AUSTRALIA’S TUNGSTEN INDUSTRY • 80 Delegates from major tungsten investment groups & other interested parties undertook a site tour on 26 September 2013. • Interest shown by the delegates in the Mt Carbine Project was extremely encou
Slide 29: Tungsten market data (ITIA, Global Tungsten Powders)
Source: ITIA Source: Global Tungsten Powders Presentation – 2014 ITIA AGM, Toronto, Canada
Slide 30: Tungsten market data (Roskill)
Source:- Roskill Presentation – 2014 ITIA AGM, Toronto, Canada
Slide 31: Mt Carbine, Queensland
MT CARBINE, QUEENSLAND • Two prospects, Iron Duke and Petersen’s Lode, exist within EPM 14871 and 14872 and in the case of Iron Duke, the mining leases. • These prospects are dominated by scheelite mineralisation. • Mapping and sampling indicate both prospects have extensive strike length. • Work is
Slide 32: Company website
Can be viewed at:- http://www.carbinetungsten.com.au
Slide 33: Iron Duke, Mt Carbine, Qld
IRON DUKE MT CARBINE, QLD Present mapped • Present resource estimate Low grade extent of Iron does not include any Iron Duke prospect Duke mineralisation. stockpile • Lies within the planned open-cut envelope. • Average true width 8m 6 holes in from 6 drill holes with an Iron Duke prospect average w
Slide 34: Petersen's Lodes - Mt Carbine, Qld
PETERSEN’S LODES - MT CARBINE, QLD • Lies within EPM 14872 and is ~1-2km south-east of Mt Carbine. • Sub-vertical 10m wide zone of scheelite mineralisation hosted by sheared and altered metasediments traced for 1.3 km along the strike. • More detailed exploration is planned. • Only record of product
Slide 35: Divestment of exploration portfolio
As part of its pure play tungsten strategy Carbine also divested its exploration portfolio of the following tenements during the 2013/2014 financial year:- EPM 14589 Elizabeth Creek, Queensland EPM 17895 Constance Range, Queensland EPM 17071 Iron Pot Creek, Queensland EL 6532 Tara, New South Wales
Slide 36: Tenement schedule
State Ownership Area Status Notes Expiry Date Queensland ML 4867 Mt Carbine Quarries Pty Ltd 358.5 ha Granted Subject to sub-lease agreement 31/07/2022 100% with Tungsten Resources Pty Ltd (a wholly owned subsidiary of Carbine), with pre-emptive right to purchase. ML 4919 Mt Carbine Quarries Pty Ltd
Slide 37: Upcoming activities
• Engineering, procurement and plant construction activity to commence – Stockpile Project. • Conclude discussions with a range of potential development funding partners and investors, including Mitsubishi RtMJ, for the development of the former open pit mine. • Secure approvals and permitting for o
Slide 38: Questions?
% CARBINE TUNGSTEN Questions?
Carbine Tungsten — Shareholder Meeting (November 2014) on 6ix