Slide 1: MAGFORUM 2017
MAGFORUM 2017 KRAKOW, POLAND 11-13 June 2017 KORAB RESOURCES LIMITED
Slide 2: Magnesium carbonate
Magnesium carbonate Magnesium carbonate markets Magnesium carbonate users Raw magnesite ore Calcined magnesia Dead burned magnesia Fused magnesia 1 | 25
Slide 3: Magnesium metal
Magnesium metal Magnesium alloys Magnesium alloys used in a car Magnesium alloys are extensively used in production of motor vehicles and aerospace applications Because of their stiffness, strength and light weight, magnesium alloys are the preferred material used by car makers to reduce the weight
Slide 4: Magnesium-ion batteries
Magnesium-ion batteries Magnesium-ion vs Lithium-ion Examples Magnesium ions carry a double positive charge –vs- single positive charge carried by lithium ions Magnesium-ion battery's capacity is 8 to 12 times higher than a lithium-ion battery. Magnesium-ion battery's charge/discharge efficiency is
Slide 5: Magnesium-diboride superconductors
Magnesium-diboride superconductors Superconductors uses MRI Scanner Magnesium-diboride (MgB2) superconductors can operate at “high” temperature of 40K and have already been commercialised Current sectors using MgB2 superconductors MRI imaging equipment Low-mass high-power electric motors for naval p
Slide 6: Magnesium-diboride superconductors
Magnesium-diboride superconductors Naval propulsion electric motor Tests of naval propulsion motor Northrop Grumman MgB2 superconductive naval electric motor MgB2 superconductive naval propulsion electric motor undergoing has the same power as copper motor but is 70% lighter “wet’ testing under load
Slide 7: Winchester magnesium carbonate deposit
Winchester magnesium carbonate deposit Company status Tenure AusMag is a private company registered and based in Western Australia with Korab Resources Ltd holding 100% of issued shares. AusMag owns 100% of the Winchester deposit and the Mineral Lease ML30587 where it is located AusMag is focused on
Slide 8: Location
Location 10 kilometres WINCHESTER OPEN PIT <> ee 7} 25
Slide 9: Simplified mine layout
Simplified mine layout <= 70km to Darwin werushers/screens A Fines A Batchelor Rd “il Waste dump ‘~~ Open pit 8| 25
Slide 10: Darwin Port
Darwin Port 9 | 25
Slide 11: Mineralisation (north view)
Mineralisation (north view) 10 | 25
Slide 12: Mineralisation (south view)
Mineralisation (south view) 11 | 25
Slide 13: Test mining (drill & blast)
Test mining (drill & blast) 12 | 25
Slide 14: Test mining (setting charges)
Test mining (setting charges) 13 | 25
Slide 15: Test mining (loading)
Test mining (loading) 14 | 25
Slide 16: Project summary
Project summary Located 85km from Darwin port Year-round access by sealed road Simple quarry operation supplying crushed raw magnesite rock (MgCO3) in bulk, no processing, just crush and screen Annual capacity can be easily increased if demand justifies Deposit is a near surface, ore body is at leas
Slide 17: Project status
Project status Various tests and studies successfully completed Metallurgical testing, and production of magnesium metal Calcination testing Hydrological studies Environmental studies Commercialisation is progressing Granted mining lease (to 2040 with rights to extend) Offtakes and sales are being s
Slide 18: Operating costs (in Australian Dollars)
Operating costs (in Australian Dollars) SUMMARY 200KT/Y 400KT/Y 800KT/Y WATER MANAGEMENT ($/YR.) 440,000 440,000 440,000 WASTE DUMPS ($/YR.) 180,000 180,000 180,000 QUARRY AND CRUSHING ($/YR.) 3,906,452 7,137,186 12,421,015 SUBTOTAL ($/YR.) 4,526,452 7,757,186 13,041,015 CONTINGENCY (30%) 1,357,935
Slide 19: Financials
Financials EBITDA vs sales volumes •Aggregate EBITDA of AU$395 mln over quarry life •Attractive long-run annual EBITDA of AU$31 mln/year (at 800kt/year sales) •Low projected operating cost in the lowest quartile of global magnesite projects Production target information contained in this report was
Slide 20: Development costs
Development costs CAPEX estimates from PFS study SUMMARY AU$ WATER MANAGEMENT 626,810 SITE INFRASTRUCTURE 1,079,310 WASTE DUMPS 108,925 QUARRY 1,293,290 SUBTOTAL 3,108,335 CONTINGENCY (30%) 932,501 TOTAL ESTIMATE 4,040,836 Capital expenditure is exceptionally low due to very simple quarry operation
Slide 21: Base case plan
Base case plan 20 | 25
Slide 22: Scale-up development plan
Scale-up development plan 21 | 25
Slide 23: Other details
Other details •Exceptionally low capex of ~AU$4 million (~US$3Mln) EBITDA Sensitivity to MgCO3 prices •Mine can be developed in stages and easily expanded •No need for additional funding once mine is in operation, capacity expansion can be fully funded from cashflow •Mine can operate at a profit wit
Slide 24: Winchester magnesium carbonate resource
Winchester magnesium carbonate resource JORC compliant mineral resource estimate was generated from RC and diamond core drilling within a Magnesium carbonate at Winchester Winchester deposit and geology 6%-7% section of the mineralised trend JORC resource formed the basis for the design of the open
Slide 25: Geological map
Geological map 24 | 25
Slide 26: Important Information
Important Information This presentation has been prepared by Korab Resources Limited (“Korab” or the “Company”). It should not be considered as an offer or invitation to subscribe for or purchase any securities in the Company or as an inducement to make an offer or invitation with respect to those s