Doornhoek Fluorspar Project The worlds largest known fluorspar exploration project

Transcription

1 Doornhoek Fluorspar Project The worlds largest known fluorspar exploration project SA Fluorite (Pty) Ltd and Southern Palace (Pty) Ltd Northwest Province - South Africa 1/

2 Forward Looking Statements This document contains forward-looking statements. These forward-looking statements are made as of the date of this document and SA Fluorite (Pty) Ltd or Southern Palace (Pty) Ltd (the Companies ) does not intend, and does not assume any obligation, to update these forward-looking statements, except as required under applicable securities legislation. Forward-looking statements relate to future events or future performance and reflect Company management s expectations or beliefs regarding future events and include, but are not limited to, statements with respect to the estimation of mineral reserves and resources, the realization of mineral reserve estimates, the timing and amount of estimated future production, costs of production, capital expenditures, success of mining operations, environmental risks, unanticipated reclamation expenses, title disputes or claims and limitations on insurance coverage. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. Forward-looking statements contained herein are made as of the date hereof. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward- looking statements. Please note that statements relating to reserves or resources are deemed to be forward-looking information as they involve the implied assessment, based on certain estimates and assumptions, that the resources and reserves described can be profitably mined in the future. 2/

3 Fluorspar (CaF2), Primary Uses Refrigerant gasses Aircon gasses Solar panels Production of fluoropolymers (used in Teflon coatings) Production of nuclear fuel Aluminium smelting Lithium fluoride used in batteries(lif) and cell phone screens Toothpaste Pharmaceuticals Met Grade < 97% CaF2 Flux in steel smelters Acid Grade 97% CaF2 High Value, High Price (Project Target) 3/

4 Fluorspar Price 4/

5 Fluorspar, Key Dynamics China accounts for over half of the world fluorspar production. Chinese exports have continued to decline since 2000 as internal demand has increased. Potential for China to become a net importer in the future. Long term trend has been upwards since 2000 with long-term future outlook looking positive. Western Europe, Canada and the USA are the largest acid-spar consuming regions outside of China, importing more than 900,000 tonnes per year. Fluorspar is classified as a critical raw material by the European Commission. USA considers fluorspar as a strategic mineral - 100% net import reliance. Project has potential to replace China as world leading producer of fluorspar 5/

6 Project location 6/

7 Infrastructure 15km from nearest town (Zeerust) - Tarred road Rail siding <15 km Ample water Dolomitic terrain and catchment reservoirs Power available on site Sub-station on adjoining property Mobile communication on site No environmental fatal flaws Low population density and No relocations required 7/

8 Project history Why not developed sooner? Private and complex mineral rights holding until 2004 Historically rights were subdivided together with surface Some mineral rights were sold to mining companies and sterilized Result was complex ownership with many subdivisions 2004 mineral rights revert to State 2005 SA Fluorite consolidate and secure mineral rights >23,000 hectares 2006 CAMEC secure majority interest 2010 ENRC acquire CAMEC 2013 RPA complete Preliminary Economic Assessment compliant 8/

9 Historical rights Complexity of rights have historically delayed development 9/

10 Historical exploration on various farm subdivisions Drilled by Esso Minerals in boreholes drilled Drilled by Armco Bronne boreholes drilled A further 102 boreholes drilled by various other companies such as: Samancor, Anglo American, Foskor, Rand Mines, US Steel, Shell Minerals, etc. All exploration on different land packages Most borehole logs, core and historical information was acquired 10/

11 Work completed since consolidation Drilling 1836 diamond core boreholes drilled totalling approx 140,000m 136 reverse circulation boreholes drilled totalling approx 4,551m 239 auger boreholes drilled totalling approx 1,487m Geological mapping detailed groundwork Aeromagnetic survey high resolution close spaced Lidar survey covers entire area Permitting - maintained in good standing Surface rights acquisitions strategic landholding Metallurgical test work Environmental studies remain in progress Preliminary Economic Assessment Roscoe Postle Associates Inc - Toronto completed Nov 13 NI compliant 11/

12 Geology Size: 23, hectares Mineralization hosted within strata-bound dolomitic rocks 12/

13 Detailed Geology Mineralization hosted within stromatolitic stratabound dolomitic rocks Dip 4 degrees, strike >15km Partial outcrop on property Three mineralized horizons Main mineralized horizon ranges from 9m to 32m in thickness Middle mineralized horizon ranges from 2m to 3m in thickness Upper mineralized horizon also 2m to 3m in thickness The three horizons outcrop at surface to a max depth of 90m Further down-dip extensions not drilled. Average grade 15% with high grade pockets 13/

14 Doornhoek main zone thickness contours Three mineralized horizons: Main mineralized horizon ranges from 9m to 32m in thickness Middle mineralized horizon ranges from 2m to 3m in thickness Upper mineralized horizon also 2m to 3m in thickness 14/

15 Typical cross section Dip 4 degrees, strike >15km Initial mining will focus on near-tosurface deposits suitable to open cast mining Over time, mining can transition to underground with access via an adit from the initial pits. This section illustrates the ability to access the high grade Rhenosterfontein Extension area via an adit from the Tafelkop area 15/

16 Mineral resources RPA NI , June % CaF 2 cut-off Category Indicated Tonnes (Mt) Grade (%CaF 2 ) Contained CaF2 (Mt) Main Total Indicated Inferred Main Middle Upper Blockspar Total Inferred Total /

17 Resource classification Benefit of single large flat lying deposit 5Km 10 Km 17/

18 Economic analysis Resource sufficient for +100 life-of-mine (LOM) Economic analysis calculated on 30 year mine life Focus on thick opencast orebodies Short payback Period Positive NPV & IRR Low-cost opencast operation lower cost quartile Size and quality make it favourable for downstream processing and development of secondary industries 18/

19 Starter pits and orebody outline 30 yr LOM 19/

20 Contained fluorspar comparison 20/

21 Ore Quality Typical Ore Sample Analysis of main and trace elements Element Concentration Unit CaF % CaO % LOI % SiO % Fe 2 O % MgO 0.84 % Al 2 O % K 2 O 0.12 % Mn 0.60 % P 2 O % TiO % As ppm Ba ppm Cr ppm Sr ppm La ppm Pb ppm U 6.50 ppm Th 1.20 ppm Sn 0.41 ppm Product After Only 7 Flotation Tests Without Regrind Product % CaF2 % MgO % SiO2 % P2O5 % CaCO3 % CaF2 Recovery Doornhoek Rhenosterfontein Notes: Metallurgical test work ongoing Clean product no impurities 80% - 85% recovery acid grade confirmed 21/

22 Value add through beneficiation 22/

23 The Way Forward Application for mining right underway Trial mining and development will commence on granting of mining right Actively seeking development partners Marketing studies and offtake agreements Economic fundamentals and deposit size support downstream processing The global market for chemicals from fluorine is about US$16 billion per year 23/

24 Summary Largest contained fluorspar deposit in the world Single large flat-lying shallow orebody Amenable to low-cost opencast mining Good infrastructure Favourable metallurgy -Clean product, fetches a premium LOM far in excess of 30 years Favourable for the development of downstream processing facilities A world class fluorite deposit 24/

25 Typical landscape 25/

26 Fresh stromatolitic ore 26/

27 Weathered ore 27/

28 Aerial view of historical mining by Rand Mines /

29 Thank you 29/