Murray Zircon (MZ) | RIS2014 Broken Hill Investor Presentation

Mindarie Mineral Sands Project:
A New Beginning
4th Annual
Resources Investment Symposium
26-28 May 2014
Broken Hill, NSW
Patrick Mutz
CEO
Murray Zircon Pty Ltd

Copyright Murray Zircon
2
Australia’s newest mineral sands miner.

3
5/30/2014
Murray Zircon in Australia
South
Australia
 Murray Zircon was established in June 2011 as a joint venture to
redevelop the Mindarie Mineral Sands Project in South Australia

4
5/30/2014
Mindarie Mineral Sands Project
Adelaide
Mindarie
 Mindarie Project area
is located 150km east
of Adelaide.

5
 Murray Zircon joint venture majority shareholder:
Guangdong Orient Zirconic Industry Science
and Technology Co., Ltd. (Orient Zirconic),
a listed company in China (SHE: 002167).
 Joint venture minority shareholder: Initially, Australian Zircon NL,
the former owner/operator of the Mindarie Project.
 Australian Zircon’s shareholding now owned by private investors.

6
 Objective: Rehabilitate and redevelop the Mindarie Project.
 All project and company assets as well as certain liabilities were
transferred to the Joint venture and into Murray Zircon.
 Mindarie Project land, wet and dry processing plants and all associated
equipment and infrastructure;
 Mineral Leases and associated reserves and resources;
 Exploration portfolio covering more than 11,000 km² within the Murray
Basin; and
 Liability for rehabilitation of previously mined land.

Reserves & Resources
7
 JORC Reserves of 58.1 million tonnes at
4.3% THM.
 Up to 15 year mine-life
 JORC Resources of 171 million tonnes at
3.2% THM.
 Exploration potential

8
5/30/2014
Primary Concentration Plant (PCP)

9
5/30/2014
Mineral Separation Plant

Location of Murray Zircon Exploration Tenements
10

Rehabilitation Liability Areas
Aerial Photo: March 2011
Area 1
Area 2
Area 3
Area 6
Area 4 Area 5

Mindarie Project – History
 The Mindarie Project was originally developed by Australian
Zircon Limited (ASX:AZC) in 2006.
 The mine commenced operations in October 2007 following
the construction of a Primary Concentrator Plant (PCP) and
Mineral Separation Plant (MSP).
 From the outset the project was plagued with numerous
challenges;
 Technical; community; regulatory; financial including a
falling commodities market.
 In October 2009 the project was placed on care & maintenance.
12

Mindarie Project – Redevelopment
 As part of its strategy to redevelop Mindarie, Murray Zircon
assumed responsibility for all remaining rehabilitation liability
over previously mined areas.
 Rehabilitation works commenced in August 2011.
 At the same time, the Company initiated refurbishment of the
PCP and associated wet plant facilities in October 2011.
 The Company also submitted a Program for Environmental
Protection and Rehabilitation (PEPR) to the South Australian
Department of Manufacturing, Innovation, Trade, Resources
and Energy (DMITRE), for approval to resume mining.
13

Rehabilitation Success
Phased Rehabilitation Milestones
Overburden Completed December 2011
Sub-soil replacement Completed February 2012
Top-soil replacement Completed March 2012
Cropping Completed April/May 2012

15
5/30/2014
Rehabilitated Land

Mindarie Project – Redevelopment
 Through its successful rehabilitation efforts, positive
relationships were built with the local community, affected
landowners as well as the government through DMITRE.
NET RESULT?
 DMITRE approved Murray Zircon’s PEPR application in April
2012 and issues a licence to resume mining;
 less than 1 year from the formation of the company.
16

Mindarie Redevelopment & Commissioning
 Primary Concentrate Plant refurbishment/upgrade activities
completed in August 2012.
 Mining contract and product logistics contract finalised in
September 2012.
 A newly purchased Mining Slurry Unit was installed and a new
slurry pumping system was completed in November 2012.
 Resumption of mining commenced in October 2012 and wet
commissioning of the Slurry Unit and PCP began in December.
 First HMC product was exported before the end of December.
17

Highlights of Operations
 Mining at Mindarie is via dry, open-cut method using scrapers to
remove overburden and dozers to mine the ore.
 Typical mineral strands in the area are 150-200m wide, 10-20m
deep and up to 13km long.
 Mining/processing design capacity is 500 dry tonnes per hour
ore feed to produce 10-12K tonnes of HMC per month.
 Ore is slurried with water at the in-pit Slurry Unit and the slurry
is pumped 3-8km to the Primary Concentration Plant (PCP).
 At the PCP, the heavy minerals are removed with spiral
classifiers to produce a Heavy Mineral Concentrate containing
typically 80-90% heavy minerals.
18

19
5/30/2014
Ore mining by dozer push method
Overburden removal with scrapers
Ore
Slurry
Unit

Highlights of Operations
 Only Heavy Mineral Concentrate (HMC) is produced at Mindarie.
 HMC is transported from Mindarie by truck approximately
200km to the port in Adelaide at 7-10 B-Double trucks per day.
 Transport by train is also an option but is not used at this time.
 At the port, HMC is currently loaded into standard shipping
containers with liners for export to China.
 Bulk shipping is also an option but is not used at this time.
 In China the HMC is separated into zircon and various titanium
minerals.
 OZC’s internal demand for zircon will support full production
from the Mindarie project.
20

21
5/30/2014
HMC Storage Pad

22
5/30/2014
Typical Mining Equipment

23
5/30/2014 Slurry Pumping Skid

24
5/30/2014 Primary Concentration Plant

25
5/30/2014
Mining Camp

22/03/2012 Copyright Murray Zircon
26
Orient Zirconic (China)
Orient Zirconic (Australia)
100%
Private Investors
35%65%
100%
Mindarie Project Exploration Tenements
100%
WIM 150 Project
Joint Venture
Partner

Orient Zirconic (China)
 Guangdong Orient Zirconic Industry Science and Technology
Co., Ltd (OZC), is one of China’s leading zircon processing
companies and is headquartered at Shantou in Guangdong
Province （about 480km northeast of Hong Kong）.
 OZC has the most comprehensive range of zirconium products
in the world, including zirconium dioxide, zirconium oxychloride,
fused zirconia, zirconia structural ceramic as well as zirconium
sponge and other products.
 OZC is listed on the Shenzhen Stock Exchange (Code:002167)
with a market capitalisation approx. RMB 4.7 Billion (A$850
million*).
27
*Share price and exchange rate on 31/12/2013.

28
5/30/2014

29
5/30/2014
OZC Headquarters & Branch Locations in China
Chaoyang Branch, Liaoning
Headquarters, Shantou,
Guangdong
Leiyang Branch, Hunan
Lechang Branch, Guangdong
Yanhong Branch, Shantou,
Guangdong

 New majority shareholder in March 2013;
 Formerly Company Chairman – Mr Chaodian Chen at 30.8%
 Now CNNC subsidiary at 15.7%
 CNNC (China National Nuclear Corporation ) is the large state-
owned enterprise under direct management of the central
government.
 January 2014 - OZC announced the acquisition of Zhejiang
Zircon Valley Sci &Tech Pty Ltd; one of China’s largest producers
of zirconium oxychloride for export.
 February 2014 - OZC announced a merger with Hainan
Wensheng High-Tech Materials Co., Ltd (Wingsheng or
Winsheen); China’s biggest HMC importer and separator.
30
5/30/2014
Orient Zirconic - Recent Developments

Summary
Through Murray Zircon, Orient Zirconic has…
 Made its initial investment and entered the mining
community in South Australia;
 Acted on its vertical integration strategy to securing steady
supply of zircon;
 Established a base for potential future investment.
31

For further information:
Website: www.murrayzircon.com.au
Email: info@murrayzircon.com.au
Patrick Mutz, CEO
P.O. Box 3444
Level 6 West, 50 Grenfell Street
Adelaide, South Australia, Australia 5000
Phone: +61 8 8410 8884
ABN: 75 147 048 744

Murray Zircon (MZ) | RIS2014 Broken Hill Investor Presentation

Empfohlen

Empfohlen

Weitere ähnliche Inhalte

Ähnlich wie Murray Zircon (MZ) | RIS2014 Broken Hill Investor Presentation

Ähnlich wie Murray Zircon (MZ) | RIS2014 Broken Hill Investor Presentation (20)

Mehr von Symposium

Mehr von Symposium (20)

Kürzlich hochgeladen

Kürzlich hochgeladen (20)

Murray Zircon (MZ) | RIS2014 Broken Hill Investor Presentation