APC Minerals Limited · ASX:APC
APC Minerals — Australian Potash — Investor Presentation (February 2018)
32 slides from APC Minerals's investor presentation, February 2018
Slide 1: Australian Potash Limited Investor Presentation February 2018
Australian Potash Limited (ASX:APC) Investor Presentation February 2018 Australian Potash Limited (ASX:APC) 1
Slide 2: Cautionary Statement & Disclaimer
Cautionary Statement & Disclaimer Scoping study – cautionary statement The Study referred to in this announcement is a preliminary technical and economic investigation of the potential viability of the Lake Wells Potash Project. It is based on low accuracy technical and economic assessments, (+/- 35
Slide 3: Competent Persons Statement
Competent Persons Statement The information in the announcement that relates to Exploration Targets and Mineral Resources is based on information that was compiled by Mr Duncan Gareth Storey. Mr Storey is a Director and Consulting Hydrogeologist with AQ2, a firm that provides consulting services to
Slide 4: APC is focused on production of premium specialty fertilizer SOP
Australian Potash Limited (ASX: APC) APC is focused on the production of the premium specialty fertilizer potassium sulphate ("SOP"). SOP is used in the production of high value, chloride-sensitive crops such as fruits, vegetables, and tree nuts. APC controls, directly or through agreement, mineral
Slide 5: Corporate Overview
Corporate Overview APC provides investors with a capital efficient exposure to the rapidly evolving SOP outlook Capital structure ASX ticker APC Share price (16 February 2018) A$0.105 Shares on issue (ASX: APC) 261m Listed Options (ASX: APCOA) 38m Unlisted Options 34m Market capitalisation A$28m Top
Slide 6: Directors
Directors Matt Shackleton Rhett Brans Brett Lambert Executive Chairman Non-executive Director Non-executive Director Matt joined APC as Executive Chairman in July Mr Brans is an experienced director and civil Mr Lambert is a mining engineer and 2014. He is a Chartered Accountant, and has engineer wi
Slide 7: Lake Wells Sulphate of Potash Project
Lake Wells Sulphate of Potash Project Western Australia, 100% owned Australian Potash Limited (ASX:APC) 7
Slide 8: Industry Overview: Sulphate of Potash (SOP)
Industry Overview: Sulphate of Potash (SOP) • Globally traded potash market valued at c. US$60 billion per annum • SOP currently accounts for c. US$6bn of this and is forecast to double by 2025 • SOP is forecast to grow from current 10% of globally traded potash market to 20% by 2025 due to: – Decre
Slide 9: Industry Overview: China is Key
Industry Overview: China is Key APC has two (2) Memorandums of Understanding signed with: SOP Global Demand 2015 – 2026 • Sino-Agri, the largest fertiliser and agricultural company in China, and 12 World with China World without China • Hubei-Agri, the largest fertiliser/agricultural company in the
Slide 10: Industry Overview: China Domestic Production – Rise and Fall
Industry Overview: China Domestic Production – Rise and Fall SOP demand within China forecast to remain strong SOP Global Production 2004 - 2015 ”Chinese SOP supply could reduce by 1mn t in 2018, given that Mannheim SOP production in 8 China is expected to fall World with China World without China 7
Slide 11: Milestones and Targets
Milestones and Targets H1 2018 H2 2018 2019 • Continued long-term pump Brine abstraction testing • Reserve estimate • Proceed to development • Completion of first pilot- • Commencement of second Brine evaporation pond evaporation trial pilot pond evaporation trial • Proceed to development • Producti
Slide 12: Key DFS Work Streams
Key DFS Work Streams Scheduled to Activity Status complete 2017 bore install program Complete - Fresh water program Complete - 2017 geotech program Complete - Send trial SOP to MOU partners On going H2 2018 2018 bore install program Scheduled H1/H2 2018 2018 geotech program Scheduled H1 2018 Reporti
Slide 13: Appendices
Appendices • Detailed Location • Year on Year Progress • Approvals Process and Status • Logistics • Evaporation Ponds • MOP to SOP Conversion (non-Mannheim) • JORC2012 Mineral Resource Estimate • Peer Comparison Australian Potash Limited (ASX:APC) 13
Slide 14: Lake Wells Sulphate of Potash Project
Lake Wells Sulphate of Potash Project • 100% ownership of +2,000km2 Lake Wells SOP project • March 2017 Scoping Study confirms potential for high returning 2 stage, 300ktpa SOP operation • No Native Title lodged, registered and determined • Long life, lowest cost quartile SOP operation • Largest JOR
Slide 15: History of Progress
History of Progress Mining lease applications 10km 10km 10km 2015 2016 2017 • High-grade Sulphate of Potash deposit • Maiden JORC Compliant SOP Resource • Mining Leases recommended for grant with NIL Native Title identified through brine sampling claims • Initial test-production bores developed • Dr
Slide 16: The Last Year
The Last Year Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Approvals received to First test-production bore construct pilot ponds Pilot solar evaporation Scoping Study findings Production bore flow rates reported ponds commissioned reported installation program Up to 27 l/s reaches 15% of proposed Hi
Slide 17: Advanced Permitting Process
Advanced Permitting Process • Australian Potash submitted Mining Lease applications over its development area in December 2016 • The Department of Mines, Industry Regulation and Safety (DMIRS) has recommended the Mining Leases be granted • The Mining Lease applications have completed the Native Titl
Slide 18: Western Australian Project Approvals Process
Western Australian Project Approvals Process EPA will assess Lake Wells SOP project here Lodged December 2017 Partial Partial Partial approvals approvals approvals Australian Potash Limited (ASX:APC) 18
Slide 19: Logistics Advantage
Logistics Advantage • Australia consumes c.72kt Lake Wells is located within close proximity to sealed road and rail SOP annually, therefore 2250 80% Australian projects will be required to established a 2000 70% Product transport as a % of FOB costs Distance to port by segment (km) seaborne export
Slide 20: On-Playa Unlined Evaporation Ponds
On-Playa Unlined Evaporation Ponds • Pre-concentration and crystalliser ponds can be Low evaporation pond intensity per unit of SOP lined or unlined subject to base composition 60 450 400 Target production rate (ktpa) Evaporation pond area (km2) • APC will develop the pre-concentration and 50 350 cr
Slide 21: Highly Value Accretive MOP Conversion Circuit
Highly Value Accretive MOP Conversion Circuit Lower brine extraction intensity per unit of SOP • APC planned MOP conversion circuit utilises 70 400 excess sulphate levels in brine to maximise 60 350 value capture of resource and capital efficiency 300 50 SOP production (ktpa) • Proven process by Com
Slide 22: A Significant SOP Resource
A Significant SOP Resource APC has the largest indicated resource amongst ASX development peers • 12.7 million tonnes of Sulphate of Potash 20 100% – Exploration upside Drainable SOP resources (mt) % resource indicated 80% 15 – Stage 1 development is targetting 60% 150,000 tonnes per annum productio
Slide 23: JORC Compliant Resource Estimate
JORC Compliant Resource Estimate Drainable K Volume of Specific SOP Grade SOP Brine Concentration Aquifer Yield (mg/L) Resource Hydrogeological Unit Volume (mg/L) Weighted Weighted MCM Mean MCM MT Mean Value Mean Value Indicated Resources Western High Grade Zone Surficial Aquifer 5,496 10% 549 3,738
Slide 24: Australian Peer Comparison
Australian Peer Comparison Australian Reward Salt Lake Agrimin Kalium Lakes Potash Minerals Potash (AMN) (KLL) (APC) (RWD) (SO4) Indicated JORC compliant SOP resource 12.7Mt 12.3Mt 4.4Mt n/a 4.3Mt 2 claims 1 claim 1 claim 2 claims Native Title status NT free 1 ILUA 1 ILUA NO ILUA 1 ILUA Road haul co
Slide 25: Yamarna Gold Project
Yamarna Gold Project Western Australia, 100% owned Australian Potash Limited (ASX:APC) 25
Slide 26: Yamarna Gold Project
Yamarna Gold Project “… it is worth keeping in mind that this area is truly greenfields and covers an area equivalent to the complete area of other known major greenstone belts.” The Board of APC are actively considering strategic options to realise the inherent value in the Yamarna Gold Project, in
Slide 27: Yamarna Gold Project
Yamarna Gold Project • Location - proven gold mineralised system south of and contiguous with Yamarna Gold project tenure • Structural review and targeting conducted with 18 targets identified • Pathfinder geochemistry & alteration mapping review conducted with 16 targets identified • Coincident str
Slide 28: Yamarna Shear – Structural Dilationary Zone
Yamarna Shear – Structural Dilationary Zone Outstanding regional success • June 2017 adjoining neighbour Gold Road Resources (ASX: GOR) 2 3 released outstanding gold results 2kms south-east of APC’s tenement holding at Ibanez prospect including – 10m @ 28.76g/t Au – 9m @ 4.56g/t Au – 8.20m @ 11.63g/
Slide 29: Structural Analogues: Archean greenstone
Structural Analogues: Archean greenstone Australian Potash Limited (ASX:APC) 29
Slide 30: Geochemical targeting
Geochemical targeting Geochemical analysis by Dr Scott Halley indicates intrusion related mineralization, where analogues include; Kanowna Belle (+6Moz WA), Wallaby (+8Moz WA), Jupiter (+1.3Moz WA), Hemlo (+20Moz Canada) Australian Potash Limited (ASX:APC) 30
Slide 31: 23,000m Air-Core Drilling Program
23,000m Air-Core Drilling Program APC drill program lines APC will execute 23,000m AC drilling program to explore continuation of structural and geochemical anomalies shown to host +8m oz. gold to date Australian Potash Limited (ASX:APC) 31
Slide 32: Registered Office Address
Registered Office Address 31 Ord Street, West Perth WA 6005 PO Box 1941, West Perth WA 6872 Reception: +61 8 9322 1003 Email: m.shackleton@australianpotash.com.au Website: www.australianpotash.com.au ABN 58 149 390 394 Australian Potash Limited (ASX:APC) 32
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