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Developing Australia's Largest Titanium Resource
- 1. RARE EARTHS, SPECIALITY & STRATEGIC METALS INVESTMENT SUMMIT Developing titanium/vanadium resource in Australia Richard Wolanski – Director, Speewah Metals IRONMONGERS’ HALL, CITY OF LONDON ● TUESDAY-WEDNESDAY, 13-14 MARCH 2012 www.ObjectiveCapitalConferences.com
- 2. Developing Australia’s Largest Titanium / Vanadium / Hematite Resource TITANIUM / VANADIUM / HEMATITE | FLUORITE | ASX:SPM
- 3. BACKGROUND • Unique 575 km2 geological setting, 100% owned • World class JORC resources: - Titanium / Vanadium / Magnetite - Fluorspar. • Cash & Debtors $2.4m (Dec 2011) • 130 million shares on issue • Major Shareholders - Institutional (25%) - Board & Management (15%) SPEEWAH METALS LIMITED PROJECT LOCATION
- 4. OVERVIEW – WHERE WE ARE NOW JORC Compliant Resources •Titanium / Vanadium / Hematite Size - Australia’s largest Titanium / Vanadium in magnetite deposit - 4.7 Billion tonne @ 0.3% V2O5 & 2.0% Ti (at 0.23% V205 cut-off grade)1 - Potential +100 year mine life Grade - Upgrades in Concentrate to approx 54% Fe, 2.3% V205 and 14.9% TiO2 Metallurgy - +90% Recoveries from concentrate of Ti, V and Fe High Grade End Products - +99% Purity (TiO2, V2O5, Fe2O3) •Fluorite - 6.7 Million tonne @ 24.5% CaF2 (Indicated & Inferred) 1 - Target 10 year mine life2 - Current price (Aug 2011) = US$400 per tonne3 1. Please refer to full Resource statement attached as Appendix 1 2. Based of future work designed to increase Resource. 3. Industrial Minerals Dec 2011.
- 5. METALLURGY – THE KEY TO VALUE Acid Leach Processing -Established Process - Leach, S/X and Precipitation -Recovers all 3 commodities in Ore – Titanium / Vanadium / Hematite -3 separate high value products (TiO2, V205 & Fe2O3) - +99% Purity -Modular development -Environmentally safe Metallurgical Testwork Programme -Recoveries of Ti (91.1%), V (94.6%) and Fe (97.0%) -Scoping level OPEX, CAPEX to be completed March 2012 -Pilot plant testing to be completed 2nd half 2012 (Pre-feasibility)
- 6. PRODUCTION & REVENUE TARGETS • Objective – maximise value through separation of Ti, V and Fe from concentrate Target Commodity Grade in Commodity Metallurgical Market Value/ Potential Value/ tonne Concentrate Product/ Purity Recovery tonne (US$) concentrate (US$) 1 (optimised) Titanium Dioxide 14.9% TiO2 TiO2 (+99%) 91.1% 3,300 $445+ Vanadium pentoxide 2.3% V205 V2O5 (+94%) 94.6% 13,500 $280+ Iron Oxide 72% Fe oxide Fe2O3(+99%) 97.0% 170 $120+ Total ($/tonne) in concentrate $845+ Ore in situ value is >$100/tonne Concentrate value equivalent to 16 g/t Gold (US$1650/oz) Production Target: 75,000 tonne TiO2, 11,500 tonne V2O5, & 390,000 tonne Fe2O3. Outcome: Titanium is the most valuable commodity produced Titanium Generates 55% Revenues Vanadium/ Hematite 45% Revenue Annual Revenue from Target Production: minimum US$470 million1 1. Based on spot commodity prices (February 2012)
- 7. OPEX & CAPEX ESTIMATES1 SCOPING RESULTS DUE MARCH 2012 Estimates based on Target Production levels Mining Rate (Per Year) 6 million tonne Open Pit Strip Ratio 0.5 Ore Mining Rate (Per Year) 4 million tonne Mine life +100 years Stage 1: Production of Concentrate (Per Year) 550,000 tonne Cost to create 1 tonne of Concentrate feedstock Est. $150/tonne Transport/Royalty Est. $85/tonne Stage 2: Mixed Chloride Acid Leach Cost per tonne of feedstock Est. $300/tonne Operating Costs (per tonne of Concentrate created & processed) Est. $535/tonne Total Annual Operating Cost Est. $295 million Net Annual Operating Cashflow Est. $175 million Capital Costs Est. $800 million Payback Period 4-5 years 1. Based on a comparative study of analogous ore body (TSX: RGX NI 43-101 Preliminary Economic Assessment)
- 8. FURTHER VALUE? Value add opportunities: •Pigment – Vertical integration, significant revenue •Optimise crush and grind circuit to lower OPEX and CAPEX and increase yield •Fluorite– infrastructure share, extra revenue/profit •Significant capacity for expansion of operations & target production levels •Source cheaper energy options to lower OPEX •Further exploration potential – Copper/Gold, PGE+Au
- 9. LOGISTICS • Road to Wyndham (nearest port to China) – 170 kilometres • Lake Argyle Hydroelectric Power Opportunity onsite – Beneficiation only • Onsite water available • Logistics in place - 50,000 tonne shipment / fortnight from Wyndham available
- 10. SUMMARY • Largest JORC resource of it’s kind in the world (Target is to mine 4 million tonne/year from est. >5 Billion tonne Resource) • Metallurgical recoveries +90% • High grade (+99%) diversified end products (Ti, V and Fe) • Approvals lodged by end 2012 & Pre-feasibility • Target Production 75,000 tn TiO2, 11,500 tn V2O5 & 390,000 tn Fe2O3 • Target Annual Revenue >US$470million • Scoping CAPEX and OPEX March 2012
- 11. CONTACT DETAILS RICHARD WOLANSKI EXECUTIVE DIRECTOR Speewah Metals Limited Level 22, 77 St Georges Terrace Perth WA 6000 Ph: + 61 8 9221 8055 Email: rwolanski@speewah.com.au www.speewah.com.au Competent Persons Statement The information in this report that relates to Exploration Results, Minerals Resources or Ore Resources is based on information compiled by Ken Rogers who is a Member of the Australian Institute of Geoscientists. Mr Rogers, Chief Geologist of Speewah Metals Limited, compiled the technical aspects of this report relating to the Speewah Project and content of this release. Mr Rogers has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity that is being reported on to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Mineral Resources and Ore Reserves (the JORC Code). Mr Rogers consents to the inclusion in the report of the matters in the form and context in which it appears.
- 12. DISCLAIMER The Company has prepared this presentation. Whilst the information contained in this presentation has been prepared with all reasonable care from information provided by the Company and from sources, which the Company believes are reliable, no responsibility or liability is accepted by Speewah Metals for any errors or omissions or misstatements, however caused. To the maximum extent permitted by law, Speewah Metals, its director’s officers, employees and agents disclaim liability for any loss or damage which may be suffered by any person through the use or reliance on anything contained in or omitted in this presentation. Certain information in this presentation refers to the intentions of Speewah Metals, but these are not intended to be forecasts, forward looking statements or statements about future matters for the purposes of the Corporations Act or any other applicable law. The occurrence of events in the future are subject to risks, uncertainties and other factors that may cause Speewah Metals actual results, performance or achievements to differ from those referred to in this presentation. Accordingly, Speewah Metals, its director’s officers, employees and agents do not give any assurance or guarantee that the occurrence of the events referred to in this presentation will actually occur as contemplated. Speewah Metals directors and associates own shares in Speewah Metals. The Company recommends investors obtain their own independent financial and accounting advice before making any financial investment in reliance upon information contained in this publication.
Hinweis der Redaktion
- Thankyou for the opportunity to present a summary of the Speewah Metal’s projects. Speewah’s main project is the development of Titanium/ vanadium resource which is the largest of it’s kind in the world. This is a new story and what I hope to provide you with is a “I heard it first” moment for you that will allow you to consider joining on our pathway to development. The reason it is new is that Speewah has recently announced watershed metallurgical results which confirm not only confirm the pathway to development but suggests for a significant and highly profitable new mining business. It has also confirmed that Speewah main business is titanium, although with a strong vanadium credit. We believe we have now reduced significant technical risk and the remainder of 2012 will be about reducing the remaining technical and commercial risk and seeking the necessary approvals and agreement to allow development to commence in 2013. Titanium is primarily used as a pigment in paints and ceramics as titanium dioxide. Vanadium is a metal used to manufacture hardened steel.
- Speewah Metals owns a 100% of a unique geological feature called the Speewah Dome which is covered by our tenements. It is located in the northern part of Western Australia and covers 575 km2. Our geology is unique , we are on the edge of 2 continental plates and while vanadium and titanium are found in magnetite elsewhere around the world, ours is unique because of its SIZE, GRADE and MINERALOLOGY and I will explain these in a moment. The JORC Vanadium/titanium resource is one of the largest V/Ti in magnetite resources in the world and 20-30 times the size of any comparable resource in Australia and has potential for +100 year mine life. The Company has cash reserves of $2.4m at the end of December and had 130m shares on issue, with institutional shareholders and a tight register.
- Let me tell you now about the size, grade and mineralogy. size - Our JORC compliant resource is almost 3.6 Billion tonnes at 0.3% V2O5 and 2% Titanium. This is likely to grow by 50% in the next 2 weeks and will include at least 2 Billion tonne in the Measured and Indicated categories Currently the deposit is some 20-30 times the size of other deposits in Australia with high titanium and has almost double the grade of vanadium in concentrate of these projects. Let me tell you about Grade- Most importantly once a magnetite concentrate is created when the ore is initially treated the concentrate assays at 50% Fe, 2.2% V2O5 and 14.8% TiO2. These Ti and V grades are high compared to other resources Equvalent to 2 g/t gold. Almost a billion tn of 2 g/t gold at surface. MINERALOGY – High proportion of Titanium in the magnetite structure (not ilminite), which means that it is easy to extract, and this is the prime reason we have a new titanium opportunity. It is the minerology that has resulted in the recently annouced met results that show 90% recoveries of the 3 commodities and produces indicated puities of +99% which will maximise revenue streams from the project. The fluorite resource is 6.7Mt at 24.5% CaF2 and we believe that there exists a further 5-10Mt of fluorite at between 20-25% CaF2. and would support a 10 year mine life. The Ti/V project is the major project because of its mine life and value and maturity. This is the reason to buy this stock, so me explain this to you, are you ready.
- We have recently completed metallurgical work to investigate the recovery of the titanium, vanadium and iron out of the concetrate as 3 separate end products. Typically these commodities are seen as detrimental to each others recovery and this is the issue that sets Speewah depsoit as something special. The fact that 90% recoveries are aviable for each of the valuable commodities. We do this through a mixed chloride leach which is simply dissolving the concentrate in acid, a technology which has been used for over 50 years. Then using solvent extraction and precipitation of the 3 end products. Scalability of a process is also an important outcome for a resource that could provide over 100 years of mining. The reason why we can do this better than others is the not the technology but the mineralogy. That is the high proportion of titanium in the magnetite structure actually helps weaken the structure and separate into solution so it can be extracted as high value TiO2. Other deposits have higher proportion of ilimite which is extremely difficult to dissolve in acid and as such this approach is not open to them. Company annoucements releases issued in the last few weeks have already confirmed metallurgical recovery rates of Rates of Ti (91%), V (94%) and Fe (97%) Indicative purities of each of the 3 separte end products are +99% for the Ti and Fe and 94% for the V. This puts them at the high grade that genartes the high value end of the spectrum The work has surpassed expectation but further good news is on the way This is most important thing – This is only the beginning of the story, we have not completed this work and that is why this is the perfect time to hear this story. As we continue our testing and produce the results we will provide the market with enough information to convince it about the success of this transition. Results re imminent. We will commence pilot plant testwork , feasibility studies and seek full approvals to commence development in 2012. We expect this to be completed during 2013.
- Let me show you what a tonne of the concentrate from our ore will produce in commodities. REFER TO TABLE This is equivalent to almost 16 gm/tonne of gold These things are proven. Targeted production is through mining 4 million tonnes of ore at a strip ratio of 0.5 to produce 550,000 tones of concentrate. (to produce minimium 75,000 tonnes of TiO2, 11,500 tonnes of V25 and 390,000 tonnes of Fe2O3)This would produce about $470M revenue. Please feel free to check these numbers. Keep is mind that this would be about 15-20% of Iluka’s TiO2 production. We will not oversupply any market. Titanium is the most valuable commodity generating 50% of revenues and a bullish market that prices will increase, we are now a titanium junior on the pathway to development.
- We are workingScoping level OPEX and CAPEX based on the target production levels of a project that will mine and beneficate at site and then truck to port for the mixed chloride leach proces. Operating costs to produce 1 tn of TiO2 under $2,000. Now to produce 1 tn of TiO2 we also produce close to 150kg of V2O5 and 5 tns of hematite. These have a combined value of around $2500 An alternate study show costs on a similar orebody is about $700 TiO2.. Even if the operating costs double this is a very valuable business producing up to $300m per year cash profit if we create a mine takes about 4 million tonnes of ore to produce 550,000 tones of concentrate. ( Most importantly the mine can be developed modularly that is grown as demand and customers are established. This study shows a development treating 85,000 tns the could be created initial to build customers and eliminate flowsheet risk before being scaled up, which is why payback is 5-6 years, rather than the 3 it would take if you build full target production day 1. The end result is a cash profit of estimated $300 per tonne of concentrate which equates to around 175m per year (equivalent valuation in excess of $1Billion)
- We are seeking a industry strategic that can assist us with feasibility and development. This will not go cheap, we do not need significant funding. We will not raise $$ until we have proven the values I have talked about. We are worth between 1-2% of the conceptual NPV. This needs to followed as more than a speculative investment join with us as we will de-risk this project significantly over the next 6 months. We are targeting new shh familiar with TiO2, we will also target investment and industry partners. You will not find a comparable company because no one inn Australia has the unique geology, size or grade. The opportunities for further value add are enormous. Pigment – twice the value Fluorite - $100 million rev and infrastructure Too good to be true: Risks: Exotic commodities – Ti piant and plastic Technical risk - pilot plant Commercial risk – modular
- Logistics in place Port only running at 25% capacity, they need customers These include: Complete applications for environmental approval for the development of a mine; Complete a Mining agreement with landholders; Apply for Mining lease for the development of a vanadium/titanium project and all state and federal govt approvals
- Largest JORC resource of it’s kind in the world (Target is to mine 5 million tonne/year from estimated >5 Billion tonne Resource) Metallurgical recoveries +90% High grade (+99%) diversified end products (Ti, V and Fe) Approvals & Feasibility lodged by end 2012 Target Production 70,000 tn TiO2, 13,350 tn V2O5, & 395,000 tn Fe2O3 Target Annual Revenue >AUD$475 million1 Scoping level CAPEX and OPEX shortly – Expected >$175million net cash flow per year, to prodcue a conceptual valuation of 1 Billion, CAPEX $800m scalable with minimum plant size of $200m
- Speewah Metals is a new exciting story for 2012 that has been led by metallurgical testwork completed last year. The rmainder of 2012 will be de-risking the company through feasibility and approvals. We also need to promote this story as it is as yet relatively unknown in the titanium industry. Thankyou for your listening to this presentation.