Berkeley Energia Limited · ASX:BKY

Berkeley Energia — Berkeley Resources — Investor Presentation (November 2013)

32 slides from Berkeley Energia's investor presentation, Nov 19, 2013

  1. Slide 1: Company Presentation November 2013

    ASX/AIM:BKY For personal use only www.berkeleyresources.com.au November 20131

  2. Slide 2: Executive Summary

    Executive Summary For personal use only • ASX and AIM listed uranium development company focused in Spain • Flagship Salamanca Project advancing towards production  Pre-Feasibility Study confirms technical and economic viability of the Project  Steady state production of 3.3 Mlb U3O8 over 7 years;

  3. Slide 3: Salamanca Project

    Salamanca Project For personal use only • Comprises Retortillo, Alameda and Gambuta deposits plus a number of Satellite Deposits in close proximity • Total Resource = 61.6 Mlb U3O8 • PFS evaluated integrated project comprising Retortillo and Alameda only (34.5 Mlb) • Significant growth potential fro

  4. Slide 4: Key Results from PFS

    Key Results from PFS For personal use only 3.3 Mlb per annum (average steady state) Production 2.7 Mlb per annum (average LOM) Minimum 11 years Mine Life Including 7 years steady state operation Operating Cost (C1) US$24.60 per pound (average LOM) US$95.1m upfront Capital Cost US$74.4m incurred in Y

  5. Slide 5: Staged Development

    Staged Development For personal use only • Staged development and capital expenditure incorporating two deposits  Initial development and production at Retortillo  Subsequent development of Alameda in Year 2  Steady state production incorporating both deposits in Year 3 5

  6. Slide 6: Development Approach

    Development Approach For personal use only RETORTILLO ALAMEDA • Open pit mining (transfer mining to facilitate continuous rehabilitation) • Heap leaching at each mine using on-off leach pads • Centralised plant at Retortillo (solvent extraction & ammonium diurante precipitation) • At Alameda, ore wi

  7. Slide 7: Mineral Resources – Retortillo & Alameda

    Mineral Resources – Retortillo & Alameda For personal use only Retortillo and Alameda Combined Mineral Resource Estimate as at Sept 2013 Reported at a cut-off grade of 200 ppm U3O8 and in accordance with the JORC Code (2004) Tonnage Grade Contained Uranium (million tonnes) (ppm U3O8) (million pounds

  8. Slide 8: Shallow Open Pit Mining

    Shallow Open Pit Mining For personal use only • Open pit mining using drill & blast followed by diesel powered truck & shovel operation • Mining schedule averages 5.5 Mt ore per annum combined mine production during steady state • Shallow open pits - max. depths 90m at Retortillo and 135m at Alameda

  9. Slide 9: Heap Leach Processing

    Heap Leach Processing Heap leach selected as preferred leaching option due to: For personal use only • high recoveries (85%) • coarse crush sizes (Retortillo 40mm, Alameda 12mm) • good leach kinetics • Low acid consumption (~18kg/t) • Ripios backfilled into pits, removing requirement for tailings st

  10. Slide 10: Process Flow Sheet

    For personal use only Process Flow Sheet 10

  11. Slide 11: Excellent Infrastructure

    Excellent Infrastructure For personal use only • Readily accessible from existing public road network • Power supplied from local grid at US$0.10/kWh • Total power requirements low (3.7MW Retortillo; 3.2MW Alameda) • Water available from both adjacent water courses and on-site bores • Proximal to ci

  12. Slide 12: Excellent Infrastructure

    Excellent Infrastructure For personal use only Access Power Water Site Infrastructure Regional Infrastructure Sulphuric Acid Sources Significant Capex savings 12

  13. Slide 13: Permitting

    Permitting Management team with strong track record of successful mine permitting in Spain For personal use only • • Permitting process for uranium mining and processing well understood • Best practice environmental management approach applied Key Permits Required for Development 1. Exploitation Con

  14. Slide 14: Indicative Timeline

    Indicative Timeline For personal use only 2012 2013 2014 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Scoping Study Pre-Feasibility Study Definitive Feasibility Study Permitting - Retortillo Environmental Licence Permitting - Alameda Key development milestones over next 18 months 14

  15. Slide 15: Production Growth Potential – Gambuta

    Production Growth Potential – Gambuta For personal use only • Potential to increase production scale or mine life of Salamanca Project, once incorporated • Scoping Study commenced following positive results of initial Desktop Study • Scope of Work:  Initial mine design and production/materials move

  16. Slide 16: Exploration Upside – Satellite Deposits

    Exploration Upside – Satellite Deposits Significant exploration potential: 2013 exploration work program: For personal use only • Numerous untested or poorly tested radiometric • Detailed radiometric surveys, mapping and sampling anomalies • Water well sampling & gamma probing to detect anomalies •

  17. Slide 17: Zona Drilling – Significant High Grade Extension

    Zona 7 Drilling – Significant High Grade Extension For personal use only 18 hole, 1,130m RC drill program recently completed: • Thick, high grade mineralisation intersected at shallow depths (from 9m) • Mineralisation extended 1,200m to SW of current resource area • Intercepts include 29m @ 3,391 pp

  18. Slide 18: Experienced Board and Management

    Experienced Board and Management For personal use only Ian Middlemas Chartered Accountant with over 20 years mining industry experience; extensive corporate and Chairman management expertise Leading international geologist whose technical qualifications include an honours degree in Jim Ross Geology

  19. Slide 19: Corporate Overview

    Corporate Overview For personal use only CAPITAL STRUCTURE Shares on Issue 179.4m Unlisted Options & Rights 15.8m Market Capitalisation (undiluted @ A$0.25) A$ 44.9m Cash Position (at 30 Sept 2013) A$ 25.2m SUBSTANTIAL SHAREHOLDERS Anglo Pacific 15.1% Hadron 7.9% Resource Capital Fund 7.2% CBA 5.8%

  20. Slide 20: Investment Case

    Investment Case For personal use only • Large resource base (61.6Mlb @ 427 ppm) HIGH QUALITY • Significant production scale and mine life, shallow open pit mining ASSET BASE • Excellent infrastructure • PFS considered only Retortillo and Alameda deposits GROWTH • Desktop Study highlighted potential

  21. Slide 21: For personal use only

    ASX/AIM:BKY For personal use only www.berkeleyresources.com.au 21

  22. Slide 22: Spain

    Spain For personal use only • Historical uranium mining • Existing nuclear power industry • Government support for mining industry • Skilled local workforce • Internationally competitive contractors and suppliers 22

  23. Slide 23: Geology – Retortillo & Alameda

    Geology – Retortillo & Alameda For personal use only Retortillo • Vein Type deposits hosted in meta- sedimentary sequences adjacent to granites • Retortillo mineralisation includes vein, stockwork and disseminated mineralisation in joint / fracture fillings associated with brittle deformation Alamed

  24. Slide 24: Grade Tonnage Curves – Retortillo & Alameda

    Grade Tonnage Curves – Retortillo & Alameda For personal use only • G-T curves highlight significant impact of cut-off grade (COG) • At 100 ppm U3O8 COG, which approximates the mining COG derived from the PFS pit optimisations, MRE’s for Retortillo and Alameda total 19.4 Mlb and 25.4 Mlbs U3O8 respe

  25. Slide 25: Total Mineral Resources

    Total Mineral Resources For personal use only Mineral Resource Estimates as at Sept 2013 Reported at a cut-off grade of 200 ppm U3O8 and in accordance with the JORC Code (2004) Resource Tonnage Grade Contained U3O8 Category (million tonnes) (ppm U3O8) (million pounds) Retortillo Indicated 14.4 378 1

  26. Slide 26: PFS Capital and Operating Cost Breakdown

    PFS Capital and Operating Cost Breakdown For personal use only Retortillo Capex Retortillo Opex – US$29.3/lb 100 90 $8.6m $2.2m $95.1m 80 G&A $18.8m 7% 70 60 Processing $23.4m 44% 50 Mining 40 49% $42.2m 30 20 10 0 Processing Infrastructure Indirects Pre-Strip G&A Total Alameda Capex Alameda Opex –

  27. Slide 27: Permitting

    Permitting For personal use only Key Permits Required for Development 1) Exploitation Concession / State Reserve suitable for Exploitation (Mining Licence) 2) Authorisation of the Process Plant as a Radioactive Facility 3) Authorisation for the Exceptional Use of Rural Land for Industrial Purposes S

  28. Slide 28: Permitting Status - Retortillo

    Permitting Status - Retortillo For personal use only Exploitation Concession (Mining Licence):  Application for Exploitation Concession submitted in Oct 11, together with Environmental Scoping Document (ESD)  ESD subjected to consultation period, comments received incorporated into Environmental a

  29. Slide 29: Permitting Status - Retortillo

    Permitting Status - Retortillo For personal use only Authorisation of the Process Plant as a Radioactive Facility:  Initial Authorisation for the Radioactive Facility documentation submitted in Mar 12  Documentation approved for Public Information in Jul 12  Public Information Period concluded in

  30. Slide 30: Permitting Status - Retortillo

    Permitting Status - Retortillo For personal use only Authorisation for the Exception Use of Rural Land for Industrial Purposes:  Authorisation for the Use of Rural Land for Industrial Purposes submitted in Mar 12  Documentation approved for Public Information in May 12  Public Information Period

  31. Slide 31: Permitting Status - Alameda

    Permitting Status - Alameda For personal use only State Reserve suitable for Exploitation (Mining Licence):  Application, together with Environmental Scoping Document, submitted in Dec 12  Baseline studies updated for inclusion in ESIA  Exploitation, Reclamation and Closure Plans being prepared f

  32. Slide 32: Important Notices

    Important Notices For personal use only Disclaimer Notice The material in this presentation (“material”) is not and does not constitute an offer, invitation or recommendation to subscribe for, or purchase any security in Berkeley Resources Ltd (“BKY”) nor does it form the basis of any contract or co

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