Western Australia World hub of gold and new technology metals

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1 Western Australia World hub of gold and new technology metals Rick Rogerson REPLACE IMAGE NOTE: Right click on the image and Executive Director select Arrange and Send to Back Geological Survey of Western Australia

2 What a great resources year in WA! Cost cutting and an average 2016/17 Australian dollar gold price of $1675 meant that producers were highly profitable and exploration increased Lithium exploration and development has been frenetic, and construction of downstream processing capacity has begun Abi Rose Ni

3 Gold exploration and mining booming in WA Major discovery of coarse gold in an Archean conglomerate in the Pilbara New gold field identified only 260km from Perth (details on next slide) In the last year, 4 new gold mines opened and 10 re-opened WA produced 196 tonnes Au in 2016 valued at $US7.9 billion 68% of Australia s production Largest producers: Boddington (Newmont) largest Au mine in Australia Kalgoorlie Super Pit (KCGM) Telfer (Newcrest) Tropicana (Independence Group/AngloGold Ashanti) St Ives (Gold Fields) Mining & under construction Mine care & maintenance Scoping or feasibility Advanced exploration Coarse gold discovery New gold field

4 New gold field only 260km from Perth Tampia Project (Gault prospect) owned by Explaurum Ltd, an ASX-listed company. Project at feasibility stage In high grade Archean metagabbro and granite Excellent infrastructure, in wheat growing area, good relations with property owners Resource: g/t = 695,000 oz Au and will increase with more drilling

5 Coarse gold discovery near major town Purdy s Reward coarse gold discovery only 40km from regional town of Karratha Artemis Resources in JV with Novo Resources hold tenements over the gold discovery Shallow trial trench excavated and drilling will begin shortly In conglomerates at base of Neoarchean Fortescue Group which directly overlies Mesoarchean Pilbara Craton rocks Opens up new gold play in Pilbara region of WA where Fortescue Group is widespread

6 WA World capital of battery metals Exploration and mining of lithium is booming in WA All WA deposits are hosted by pegmatite within Archean rocks While brine operations are generally cheaper to operate, they involve higher up-front costs, slower start-up periods, and high wet weather risks Global average price of lithium carbonate increased 138% from US$5,731 per tonne in June 2015 to US$13,625 per tonne in June 2017 WA accounted for 41% of World lithium production in 2016 A record of ~ tonnes of spodumene concentrate produced in 2016 Mining & under construction Scoping or feasibility Exploration stage

7 Emerging hub of lithium downstream processing Project Company Ore (Mt) Grade % Li2O Contained Li2O (Mt) Downstream processing Greenbushes Talison Lithium (51% Tianqi, 49% Albemarle) Tianqi constructing LiOH plant near Perth; Albemarle considering Li2CO3 plant in WA Wodgina Mineral Resources Direct shipping of spodumene concentrate Pilgangoora Pilbara Minerals Direct shipping of spodumene concentrate Mt Holland (Earl Grey) Kidman Resources Feasibility into lithium refinery in WA Mt Marion Reed Industrial Minerals Li2CO3 plant proposed for Kalgoorlie Pilgangoora Altura Mining Direct shipping of spodumene concentrate Mt Cattlin Galaxy Resources Direct shipping of spodumene concentrate Bald Hill Alliance Mineral Assets and Tawana Resources Direct shipping of spodumene concentrate Lynas Find Pilbara Minerals Exploration stage Total Committed or planned downstream processing

8 Co & Ni more WA battery metals! More nickel is used in batteries than any other metal! WA is Australia s only nickel producer In August, BHP announced it will build World s largest Ni sulphate plant (used in batteries) near Perth in WA that will produce 100,000 t per year Current Cobalt price ~ $US 60,000 per tonne and Nickel ~ $US11,500 per tonne % Cobalt resource in WA = 1.37 Mt of contained Co in 37 deposits WA exported 5140 t of Co in 2016 produced as by-product of Ni mining Most deposits are in nickel-cobalt laterites Several Co deposits at pre-feasibility stage Mining, Care & Maintenance Scoping or feasibility Exploration stage Nickel mine Cobalt resource

9 Rare earth developments continue Both HREE and LREE deposits Browns Range HREE project begins mining and construction of pilot plant New mineralisation zone discovered at Yangibana Mining Feasibility Exploration stage LREE deposits HREE deposits Project Tonnage (Mt) Average REO (%) Contained REO (tonnes) East Kimberley HREE mineral district Mt Weld (Lynas) ,154,730 Yangibana (Hastings) ,613 Brockman (Hastings) ,460 Browns Range (Northern Minerals) Cummins Range (Navigator Resources) , ,289

10 Don t forget WA s increasing Cu resources Discoveries being made: Citadel (Antipa Minerals), Tollu (Redstone Resources) Citadel Project (Antipa/Rio Tinto JV) is in Proterozoic rocks with little previous exploration enormous potential in region for new vein and hydrothermal Cu+Au discoveries Tollu Project (hydrothermal veins in Proterozoic gabbro) has inferred resource of 1.0% Cu for 38,000 tonne Cu. Resource will grow as drilling continues Calingiri (Caravel Minerals), 120 km from Perth, is a bulk tonnage Cu Mo deposit in metamorphosed Archean granite Pre-feasibility study released later in Current resource: % Cu (0.38% Cu equivalent) for 844,000 t of Cu. 20 year mine life; CAPEX $US 355 M, posttax ROI = 23%. Cu deposits with resources Total Cu resource: 9.5 Mt Mining Exploration stage Callingiri Citadel Tollu

11 Freely available information Online and free of charge to view and download at All details of licences and leases (ownership, expiry, conditions, expenditure etc) Online GIS map of exploration and mining leases All geological reports, maps (including GIS & Google Earth files) All company exploration reports and data files over 5 years old Mineral deposit database including resources/reserves Use Online Systems to access all online information

12 Company & project bargains disappearing fast ASX 300 Metals and Mining Index has been rising since January 2016 By end of August, 17 initial public offerings of shares in mineral companies on ASX best result since 2012 Lion Selection investment clock probably at 7 for most commodities but Au and Li probably higher

13 WA is World s 3 rd most attractive mineral investment destination Fraser Institute ranks Western Australia 3 rd best minerals investment destination in st in World for quality of geoscience databases Top Australian State for mining policy attractiveness Fraser Institute s Policy Potential Index (Australian States only) Fraser Institute ranking SA SA SA SA SA NT WA WA WA WA WA WA 2 QLD TAS NT NT WA SA SA SA SA SA SA 3 TAS NT WA WA NSW NSW NT NT TAS NT NT 4 VIC WA NSW NSW NT TAS VIC QLD NT QLD TAS.. 7 WA

14 Thank you