Galileo Resources Plc · LSE:GLR
Galileo Resources — Investor Presentation (March 2014)
30 slides from Galileo Resources's investor presentation, March 2014
Slide 1: Galileo
galileo Mission to identify quality projects and advance to Preliminary Economic Assessment Stage
Slide 2: Disclaimer
Disclaimer THIS DOCUMENT (“DOCUMENT”) IS STRICTLY CONFIDENTIAL AND IS BEING PROVIDED TO YOU SOLELY FOR YOUR INFORMATION. THE DISTRIBUTION OF THIS DOCUMENT MAY BE RESTRICTED BY LAW. ACCORDINGLY, THIS DOCUMENT MAY NOT BE DISTRIBUTED IN ANY JURISDICTION EXCEPT IN ACCORDANCE WITH THE LEGAL REQUIREMENTS
Slide 3: A balanced portfolio
A balanced portfolio A portfolio of international interest projects Rare Earth/Phosphate • Glenover (South Africa): advanced stage project showing robust technical and financial fundamentals – Preliminary Economic Assessment (PEA) completed Gold/Copper • Gabbs (Nevada, USA): Recent proposed acquisit
Slide 4: Galileo's ongoing strategy
Galileo’s ongoing strategy Moving with the times • Current financing problems presents opportunities • Option to acquire Gabbs property in Nevada, USA at sunk costs + 10 % premium • Raw date acquired would cost a minimum of US$30 million from a standing start • Glenover now well understood and place
Slide 5: The Porphyry Story
The Porphyry Story The majority of future copper to come from this source • Copper production is rapidly moving to this type of deposit • Huge low grade bodies which are capital intensive to work • Lack of global expertise for smaller underground high grade projects • Gabbs +/- 4 million oz gold equ
Slide 6: Geology and Mineralisation
Geology and Mineralisation Big systems * Source www.incaminerals.com
Slide 7: Copper Fundamentals
Copper Fundamentals Nobody is going to give up their fridge or cell phone
Slide 8: World distribution of porphyry deposits
World distribution of porphyry deposits Generally in safer places * Source www.incaminerals.com
Slide 9: Today's projects are more politically threatened than ever before
Today’s projects are more politically threatened than ever before CT T NT
Slide 10: Projects
Projects Can’t do much damage here GABBS PROJECT
Slide 11: Exploration Upside
Exploration Upside Many models to test • Additional “Sullivan-like” porphyry deposits likely exist across the Gabbs Project • Similar geologic signatures combined with induced polarizations surveys indicate a large “feeder” porphyry at depth in a central area of the claims package • Adjacent to exis
Slide 12: St. Vincent Project Portfolio
St. Vincent Project Portfolio All projects have enormous potential acquired from Newcrest Resources in 2010 Gabbs: Au-Cu Resource Au-Cu Targets Au Targets Silverton: Au Targets Crow Springs: Cu porphyry target Ferber: Cu-Au Target Sand Springs: Cu-Au Target
Slide 13: Gabbs Claim Package
Gabbs Claim Package Discoveries close enough together for central mill Lucky Strike Gold Ledge Sullivan Car Body Paradise Peak Mill and Mine • Gabbs claims package consists of 355 unpatented lode claims and 1 patented lode claim covering 6,900 acres (28 km²) • Property contains 4 distinct areas of m
Slide 14: Independent Resource Statement
Independent Resource Statement Large basic resource, plenty to work with Gabbs, Nevada - USA Cut-off Au g/t Oxide/Non- Tonnage Au Cu Au Eq Cu Eq Oxide (1,000t) (g/t) (ppm) (g/t) (%) 0.20/0.10 167,942 0.37 2,213 0.74 0.43 GMVs Gabbs $5 072 839 522
Slide 15: Significant Drill Intercepts
Significant Drill Intercepts Nice start Gabbs project Zone Hole Intercept Sullivan SD-1 88 m @ 1.43g/t Au and 0.28% Cu from 56 m Sullivan SD-2 89.7 m @ 0.76 g/t Au, 0.29% Cu Sullivan SD-4 100 m @ 0.40 g/t Au and 0.29 % Cu from 93 m South Gold Ledge GD-5 154 m @ 0.16 g/t Au and 0.14 % Cu from 12 m Lu
Slide 16: 2008 Induced Polarisation
2008 Induced Polarisation Hole Summary 450m depth •IP survey results show extensive coincident resistivity and chargeability anomalies •Supports thesis of a potential gold-copper porphyry at depth to the north of Gold Ledge and to the west of Sullivan •St. Vincent proposes four deep core holes to te
Slide 17: Investment Highlights – St. Vincent
Investment Highlights – St. Vincent Significant acquisition in troubled times • Nevada-based mineral exploration and development company • Seasoned management team with proven track record for growth • Excellent mining jurisdiction • Significant 43-101 compliant resource established at flagship Gabb
Slide 18: Importance Of REE
Importance Of REE The long-term fundamental remain intact Source: U.S. Department of Energy, Critical Materials strategy, Dec. 2010
Slide 19: Rare Earth Fundamentals
Rare Earth Fundamentals Not that big and too China dominant Note: IMCOA – “Reserve figures encompass a wide range of mineral qualities and do not necessarily comply with the internationally recognized codes for the definition of reserves.”
Slide 20: Rare Earth Fundamentals
Rare Earth Fundamentals Anything high tech develops new need for REE Source: IMGOLD
Slide 21: Glenover Rare Earth Project
Glenover Rare Earth Project Established site Available process equipment Phosphate open pit Recent drilling Open pit stockpiles
Slide 22: Aerial photograph of old pit
Aerial photograph of old pit Big former pit – easy access to new ore Mine Area and Apatite-Haematite Breccia Ore Stockpiles 1.34 million m3 2.0-2.5 million tonnes 0 50 100 200 Ore Stockpiles Metres Ore Stockpiles
Slide 23: Independent Resource Statement
Independent Resource Statement Big resource of critical REE GBM Minerals Engineering Consultants Limited is an Glenover, South Africa independent firm of consulting engineers that specialises in assisting clients with the development, design and construction of new mining projects and the refurbishm
Slide 24: REO Distribution
REO Distribution Good split of desired rare earth Oxides LREOs 97% Light rare earth oxides La, 17% Pr, 6% HREOs >0.5% dist’n heavy rare earth oxides Nd, 22% Sm, 3% Y, 2% Eu, 1% HREOs, 3% Ce, 46% Gd, 1.8%
Slide 25: Project economics
Project economics Very robust PEA model, currently being optimised Mine Life 24 years Fixed Capital $233M Revenue $275M pa $37/kg REO Operating Income $133M pa $17/kg REO Operating Cost $20/kg REO Cash flow (post tax) $72M pa IRR 34.5% NPV @ 5% $783M 8% $512M
Slide 26: Key parameters
Key parameters This simply shows that REE operations are all about processing Project operating costs AREA UNIT COST $/T PROPORTION % MINING (CONTRACT) 10* 3 PROCESSING 313 93 OTHER ** 14 4 TOTAL 337 100 Processing costs ITEM UNIT ANNUAL OPERATING $/T $M COST OF TOTAL % REAGENT 289 116 92 OTHER 24 1
Slide 27: Scandium (Sc) potential
Scandium (Sc) potential Scandium comes out in the process and may play a major contribution • Recoverable Sc grade to FePO4 = 63 g/t ore • Sc US$14/g a; $14 000/t • Price is 25% of gold • Au equivalent ~16g/t ore • Sc in-situ GMRV b in ore $882/ t ore a http://www.chemicool.com/elements/scandium.htm
Slide 28: Peer Comparison of REE Deposit
Peer Comparison of REE Deposit Well positioned in the league of expectation Market analysis indicates that 5 REE will remain in undersupply for the next decade: Neodymium, Europium, Dysprosium, Terbium and Yttrium = Critical Rare Earth Oxides (CREO) Amount of in situ CREO in a deposit provides
Slide 29: Compelling Investment Case
Compelling Investment Case Balanced portfolio with near term production projects • Quality, near cash flow, strategic position projects • Combined gross value of metal in projects US$ 14.5 billion • Strong international interest in both Glenover and St. Vincent • Mining costs are projected to be low
Slide 30: Thank you very much
Thank you very much www.galileoresources.com
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