Samphire Uranium Project

Transcription

1 Samphire Uranium Project Site Visit 28 th September 2011

2 Disclaimer The presentations given herein by Russel Bluck, Marco Scardigno, Simon Hall and Damien Connor have been prepared in summary form and do not purport to be complete. The Company therefore gives no warranties as to the accuracy, reliability or completeness of the information( except to the extent liability under statue cannot be excluded). The data provided are taken from, or are interpretations based on, information provided to the market in releases to the Australian SecuritiesExchangewhichareavailablefromthewebsitesof UraniumSA and Australian Securities Exchange. Assumptions concerning the possible progress of exploration and development are conjectural and should not be used for financial forecasting or investment decisions. The results reported herein, insofar as they relate to mineralisation, are based on information compiled by Russel Bluck who is a Member of the Australian Institute of Geoscience and an employee of UraniumSA Limited with sufficient experience relevant to the style of mineralisation and type of deposits being considered and to the activity which is being reported to qualify as a Competent Person as defined by the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code, 2004 Edition). He consents to the inclusion in the report of matters based on his information in the form and context in which it appears. NOTE The following presentation was made in Power Point format and embodied a range of dynamic presentation aids which are not preserved in this static Adobe format. A number of the slides overlay images which masks some of the underlying information. Each of the presenters spoke to their part of the presentation.

3 Presentations today Corporate and project overview. Russel Bluck. Managing Director Resource parameter overview. Marco Scardigno. Resource Geologist Metallurgical development overview. Simon Hall. Metallurgical Manager Financial Model variables. Damien Conner. Chief Financial Officer

4 Corporate Overview ASX code USA 147m shares ~$5.8m cash at bank Top 20 shareholders ~41% Largest shareholder ~ 6% Only uranium Only in South Australia Inferred Mineral Resource ppm 19,000 tonnes U 3 O 8 (42M lb) Russel Bluck. Managing Director

5 Corporate Discovery to Development and the Future discovery resources 2007 UraniumSA drill hole MRM 001 intersected uranium mineralisation with redox alteration 5 th May 2009, Blackbush maiden resource estimate 8 th April 2011, total resource estimate 42 Mlb U 3 O 8 production progression to field trials commencing 1 st Qtr 2012 scheduling for production for 2013 exploration mineralisation in granite, the geology is unknown but the resource potential is significant other tenure, we still have our IPO tenure to explore Russel Bluck. Managing Director

6 Corporate For personal use only Location South Australia Pirie Basin Whyalla Pirie Basin Iron Baron Whyalla Adelaide Pirie Basin Eocene Kanaka Beds Adelaide 400km scheduled air service Port Bonython Whyalla Nonowie operating base Blackbush Plumbush Cowleds Landing Ruins lookout Blackbush Russel Bluck. Managing Director

7 Corporate Groundwater control critical for ISR Russel Bluck. Managing Director

8 Corporate Development trajectory to ISR production Blackbush deposit the emphasis is on staged sequential de risking to advance the project 1 st Qtr 2012 schedule commencement of field trial 1 st to 2 nd Qtr 2012 field trial for resource upgrade and mine design 2 nd Qtr to 3 rd Qtr 2012 submission of mining proposal 3 rd Qtr to 4 rd Qtr 2012 commencement of site works 4 th Qtr 2012 to 1 st Qtr 2013 first production module 2 nd Qtr to 4 th Qtr 2013 production ramp up to 400tpa Russel Bluck. Managing Director

9 Samphire Uranium Project Resource Estimation Marco Scardigno. Resource Geologist

10 Resource Estimation Methods Overview 1. Estimation Parameters 2. Interpretive & Geological Variables 3. Mineralisation Variables 4. Down hole Geophysics and Geochemistry 5. Circulation Trial Model Marco Scardigno. Resource Geologist

11 Resource Estimation Parameters For personal use only For Inferred Resource: 100 ppm Grade Data Source: Vertical Limits: eu 3 O 8 from Gamma Within Kanaka Beds formation Grade Cut Off: 100ppm eu 3 O 8 Maximum Internal Dilution: 10cm Minimum Intercept Thickness: 40cm Modelling Method: Further Requirement: Polygonal Declustering (Voronoi) >0.05m% GT intercept Marco Scardigno. Resource Geologist

12 Resource Estimation Methods Interpretive and Geological Variables Drill Sample Observations Geological Interpretation (roll fronts/lithology/stratigraphy/mineralisation styles) Resource Domaining Polygon or Block Modelling Methods/Spatial Boundaries Marco Scardigno. Resource Geologist

13 Inferred Level 100x100m Fair confidence Essential geological understanding Indicated Level 50x50m face centred Reasonable confidence Improved geological understanding Marco Scardigno. Resource Geologist

14 Resource Estimation Methods Mineralisation Variables Continuity of Grade and Lithology 14,000 13,000 12,000 11,000 10,000 Blackbush Contained Tonnage U3O8 vs Cut Off Grade eu3o8 GAMMA PFN Intercept Parameters Uranium Disequilibrium Method of Grade x Thickness Cut Off Contained Tonnage U3O8 (t) 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1, ,000 Grade Cut Off eu3o8 Marco Scardigno. Resource Geologist

15 Down hole Geophysics and Geochemistry eu3o8ppm from 3832 versus pu3o8ppm from PFN 4500 Hole Size Corrections Gamma Calibrations Bulk Density Estimates Wet to Dry Conversions Tool Precision, Accuracy and Effects eu3o8ppm Geochemical to Geophysics Comparisons pu3o8ppm from PFN Marco Scardigno. Resource Geologist

16 Samphire Uranium Project Metallurgical Development Simon Hall. Metallurgical Manager

17 Metallurgical Development Schedule Ore and Water Characterisation Bottle Roll Tests acidified sea water leach solution Preliminary Resin Screening Chloride Tolerance Column Leach Tests flow through and circulation Proof of Concept leach in sea water, load to IX resin, precipitate yellowcake Simon Hall. Metallurgical Manager

18 Metallurgical Development MRC001 one of three holes drilled to provide metallurgical samples High grade hole, mineralisation ~60 67m, sand / silt / lignite, gamma peak grade ~8,000 ppm eu 3 O 8, average grade ~1,000 ppm eu 3 O 8 at ~63m Simon Hall. Metallurgical Manager

19 Metallurgical Development Ore Characterisation Core Composite Samples Head Assays U 3 O 8 ppm Fe % Ca % CO 3 2 % C (org) % Th, V ppm Mo ppm 11 Composite average ~20 ~30 Low ~ 5 ~7 High ~100 ~150 70% average leach recovery from acidified seawater bottle rolls sulphuric acid plus oxidant Simon Hall. Metallurgical Manager

20 Metallurgical Development Uranium Recovery from Hyper Saline Leach Liquors Independent Resin Screening Input from Industry Experts ANSTO Resin Evaluation Uranium Loading 9 Resins ANSTO Resin Evaluation Loading & Stripping 4 Resins ANSTO Impurity Removal and Uranium Precipitation 2 or 3 Resins Simon Hall. Metallurgical Manager

21 Metallurgical Development Column Leach flow through test program, ANSTO 90kg bulk sample, dilute, bottle and column leach acid sea water For personal use only ph U Conc (mg/l) Leach Time (h) ph U ORP Simon Hall. Metallurgical Manager

22 Metallurgical Development Column Leach circulation test program, ANSTO 90kg bulk sample, dilute, bottle and column leach acid sea water Simon Hall. Metallurgical Manager

23 Metallurgical Development Proof of Concept yellowcake precipitation, ANSTO Two Resins selected from preliminary loading tests Resins loaded with uranium from acid sea water leach solution from bottle roll tests Resins eluated (stripped) with standard methods Impurities removed from eluate solutions Yellowcake precipitated using South Australian industry standard methods Simon Hall. Metallurgical Manager

24 Metallurgical Development Proof of Concept yellowcake analysis, ANSTO Resin 1 Resin 2 Indicative Commercial Specification Element % % % Ca <0.05 < Fe 0.23 < Mg <0.02 < Mo <0.002 < Na+K P PO S 0.15 < SiO Th 0.01 < Ti 0.02 < U V < Zr <0.002 < F Cl Simon Hall. Metallurgical Manager

25 Samphire Uranium Project Financial Model Damien Connor. Chief Financial Officer

26 Financial Model Introduction Build and Review Process Financial Summary Key Assumptions Sensitivity Analysis Conclusion Damien Connor. Chief Financial Officer

27 Financial Model Build and Review process Based on detailed knowledge and understanding ISR Models supporting each major cost component Switchable assumptions to assess sensitivities Support future analysis of the Blackbush deposit Sufficiently detailed to carry to initial production and beyond Validation of technical assumptions and mathematical integrity Damien Connor. Chief Financial Officer

28 Financial Model Financial Summary Production rates of 400tpa, 600tpa and 800tpa Sensitivity Analysis focussed on 600tpa (base case) Damien Connor. Chief Financial Officer

29 Financial Model Key Assumptions base case for 600tpa Contract delivery price US$60 per pound Exchange rate AUD1=USD1 10 year mine life Grade 0.08% U 3 O 8 (three roll front horizons per drill hole) Well field recovery 70% Project Capital is for 1,000tpa plant and includes a well field for initial production at 400tpa Operating cost per pound excludes royalties, sales commissions Well field rehabilitation in operating costs, provision made for end of mine closure Net Present Value (NPV) at discount rate of 8%p.a Taxation assumed 30%, no consideration for carried forward losses Damien Connor. Chief Financial Officer

30 Financial Model Sensitivity Analysis Damien Connor. Chief Financial Officer

31 Financial Model Sensitivity Analysis Damien Connor. Chief Financial Officer

32 Financial Model Sensitivity Analysis Damien Connor. Chief Financial Officer

33 Financial Model Conclusion Based on detailed knowledge and understanding of ISR Robust project assessment and analysis tool Indicates positive returns across a range of scenarios Damien Connor. Chief Financial Officer

34 The Challenge is to move as quickly and as cost effectively as possible from positive results to new discoveries to drums of ISR product