Fast Tracking to Production

Transcription

1 Fast Tracking to Production THE ABU DABBAB TANTALUM-TIN-FELDSPAR PROJECT, EGYPT THE 400K DEVELOPMENT. Gippsland Ltd (February 2015)) 1

2 Important Notices Competent Persons Compliance Statement The information in this announcement that relates to Exploration Targets, Exploration Results or Mineral Resources is based on, and fairly represents, information and supporting documentation prepared and compiled by Dr John Chisholm, a Competent Person who is a Fellow of the Australasian Institute of Mines and Metallurgy. Dr Chisholm is employed by Mandu Pty Limited which provides geological consulting services to the Company. Mandu Pty Limited holds 125,000 ordinary shares in the Company. Mandu Superannuation Fund Pty Limited of which Dr Chisholm is director and shareholder holds 3,362,963 ordinary shares in the Company. Dr Chisholm has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 edition of the Australasian Code for Reporting Exploration Results, Mineral Resources and Ore Reserves. Dr Chisholm consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. Disclaimer Statements contained in this material, particularly those regarding possible or assumed future performance, costs, dividends, production levels or rates, prices, reserves or potential growth of Gippsland Ltd (or its affiliates), industry growth or other trend projections are, or may be, forward-looking statements. Such statements relate to future events and expectations and, as such, involve known and unknown risks and uncertainties. Actual results and developments may differ materially from those expressed or implied by these forward looking statements depending on a variety of factors. Nothing in this presentation should be construed as either an offer to sell or a solicitation of an offer to buy or sell shares of Gippsland in any jurisdiction. 2

3 COMPANY OBJECTIVE TA ADEEN INVESTMENTS LTD. To establish a major mining business between Gippsland and MENA Investors by: 1. Commence staged development of the Abu Dabbab tantalum-tin-feldspar Project in Egypt immediately: Stage 1 92k lbs Ta 2 O 5 and 260 t tin Stage 2 400k lbs Ta 2 O 5, 960 t tin and 1 Mt of ceramic feldspar Stage 3 expansion (?) optimisation (!) and downstream value add (?). 2. Expand and develop the nearby Nuweibi tantalum resource* 98 million tonnes. 3. New project opportunities advanced base metals and gold projects in the MENA region, as well as incorporate existing Gippsland assets in Egypt (gold-wadi Allaqi) and Eritrea (gold and base metals). 4. Future listing on Dubai or other international stock exchanges (DBX, AIM, TSX ) Looking for partners with shared vision and local expertise *Refer Gippsland 2014 Annual Report for details. 3

4 PRESENTATION OUTLINE 1. Project owners & sponsors 2. The Abu Dabbab Project-Egypt (400k Development) 3. The Abu Dabbab Site 4. Offtake 5. Commodity Markets 6. Growth Potential 7. Concluding Comments Abu Dabbab is planned to be fast tracked into production. Once in production it will be the platform for growth to create a major new MENA focussed mining house. 4

5 Ownership Structure the core project has 50% ownership with Egyptian Government 100% Gippsland Limited - Australia Ministry of Petroleum Egypt 100% Nubian Resources PLC (United Kingdom) 100% 100% Tantalum International Pty Ltd Egyptian Mineral Resources Authority (EMRA) 100% 100% (Planned) Ta adeen Investments Ltd Egyptian Company for Mineral Resources (ECMR) 100% Adobha Resources Pty Ltd (Eritrea) Nubian Resources JSC (Egypt) 100% 50% JV Interest 50% 50% Adobha & Gerasi Exploration Licences Gold /Base metals *Exploration Licence Apps Wadi Allaqi Project* Gold / Base metals Tantalum Egypt JSC Abu Dabbab Tantalum-Tin-Feldspar & Nuweibi Projects Tantalum Egypt JSC (TE JSC) established company, with staff and operations. TE JSC was in production at Abu Dabbab; 160 tonnes of alluvial tin recovered P&E onsite. Ta'adeen to be a SPV, likely established in Dubai Free Zone registration (Ta adeen). Gippsland Australian listed exploration coy, working on Project for +10 years %

6 ABU DABBAB PROJECT - THE 400K DEVELOPMENT PLAN OVERVIEW Large scale project with excellent growth potential; Case Production Annual Output 400K - Stage 1 - Tantalum & Tin 0.4 Mtpa rate 400K Stage 2 Tantalum, Tin 1.4 Mtpa Total Mineral Resource* of 45 million tonnes containing 25 million pounds of Ta 2 O 5 and 39,000 tonnes of tin; Mine Life is expected to be approximately 25 years; Open pit, bulk mining with low strip ratio; 92,000 lbs of Ta 2 O 5 and 260 t of tin 400,000 lbs of Ta 2 O 5, 960 t of tin & 1 Mtpa of feldspar & ceramic feldspar rate Fully expanded - potential 3Mtpa rate 878,000 lbs of Ta 2 O 5,, 1,250 t of tin & 2.3 Mtpa of feldspar Conventional gravity style processing to create a Ta 2 O 5 and tin concentrate as smelter feed; A specialist small scale up-grade and smelting facility off site, in Egypt, near power, labour and transport hubs; Capital costs estimated at US$7 million (incl. 20% contingency) for stage 1 and US$28 million (30% contingency) for stage 2; and Plan to be in production in late 2015/early 2016 (stage 1) and early 2017 for Stage 2. *Refer Gippsland 2014 Annual Report for details. 6

7 PROJECT OVERVIEW (CONT.) Committed Tantalum Sales Agreement for 600,000 lbs of Ta 2 O 5 per year for 10 years with H.C. Starck GmbH, a major global manufacturer and supplier of tantalum products. Strong interest in feldspar also and the tin sells itself. Project Location 20 km inland-red Sea Granted Exploitation Licences Good road access. 30 km south of Marsa Alam International Airport. 38 km from Al Khorafi s resort development. 94 km north of Sukari Gold mine-420k oz Au pa. 7

8 PROJECT OVERVIEW View of the Abu Dabbab Deposit. The mineralisation is white and the waste is dark coloured. Before & After below, with final 3 Mtpa pit design. 8

9 Stage 1: 400K Plan Production Process Mine ROM Crushing & Screening Stage Mtpa Grinding & Sizing P 80 < 150 um Gravity Concentration Tantalum Pentoxide recovery 0.36 Mtpa Silica & Feldspar to Tails 0.36 Mtpa Drying & Bagging Concentrate grading 10 % Tantalum Pentoxide & 35 % Sn Egyptian Upgrade & Smelter Facility Trucking 700 tpa Concentrate to upgrade plant 92k lbs. Sold to HC Starck Germany under contract 260 t of tin sold 9 9

10 Stage 2: 400K Plan Production Process Mine ROM Tails 0.45 Mtpa Crushing & Screening Stage Mtpa Grinding & Sizing P 80 < 150 um Feldspar flotation Recovery 60% Gravity Concentration Tantalum Pentoxide recovery 0.36 Mtpa 1 Mtpa ceramic feldspar STAGE 2 Bulk Handling & Shipping 1.1 mtpa Drying & Bagging Concentrate grading 10% Tantalum Pentoxide & 35% Sn 400k lbs. pa sold to HC Starck under offtake contract Egyptian Upgrade & Smelter Facility Shipping/Trucking 2,700 tpa Concentrate 960 t of tin sold (uncommitted) 10 10

11 Not hard to find the mineralisation.. Prominent, large scale deposit. Extensive drilling and 3 adits for sampling. 50t of bulk samples taken and used in testwork

12 Abu Dabbab site an established site. Large stockpiles of aggregate from alluvial tin operations, valuable for footings and site works Access - road around the deposit or via bulldozer to near the top of the deposit

13 400K initially focused around existing plant & services Crushing & Spiral Plant 13 13

14 400K initially focused around existing plant & services (Tax) Free Zone Compound - infrastructure already established. Wilfley table from alluvial tin operations

15 Offtake Agreements The Project products comprise Tantalum glass, Tin in the form of crude Tin metal and a bulk Feldspar-silica material. The status of TE s offtake arrangements for its products is summarised below. Tantalum: TE has entered into an Offtake Agreement with HC Starck GmbH, whereby Starck has contracted to purchase 600k lbs. per annum of Ta in the form of Tantalum Pentoxide for a period of 10 years. The price and the nature of the pricing mechanism is confidential but is a fixed price regularly adjusted for changes in key operating cost inputs. Starck also has a first right to negotiate for any additional Ta production and has expressed an interest in this material. However, this is not a "first right of refusal'' and Gippsland has had approaches from other Tantalum refiners in respect of this additional production, above the 600k lbs. not committed to Starck. Tin: At present there are no offtake agreements in place for the Tin metal. However there is a large public market for Tin and, in metal form it is easily saleable on LME markets. Feldspar: No firm offtake arrangements have been entered into but Gippsland has previously engaged in preliminary market evaluation of the Feldspar product generated from the bulk sample test work. Samples were sent to several ceramic manufacturers in the Middle East and in Europe. Each had their own plant and product specific testing parameters and in all cases the tests demonstrated that the Abu Dabbab Feldspar was technically superior to the equivalent Turkish Feldspars in every respect. Gippsland has obtained expressions of interest for 1.7Mtpa of the Feldspar products at indicative pricing in 2011 for $30 and $40/t FOB Red Sea port with the lower pricing for the Italian destination. Based on the market information above, Gippsland considers that the market conditions are currently more favorable, especially in the MENA region and expects to achieve similar or improved average pricing

16 PROJECT OVERVIEW TANTALUM & TIN MARKET - positive fundamentals, ongoing modest Ta 2 O 5 deficit forecast. Ta 2 O 5 Demand by Application (2012) Tin Demand by Application (2012) 12% Powder/Wire 16% 10% 11% 39% Superalloys Carbides CPI/Mill 13% 54% Solder Tin Plate Chemicals 9% 19% Oxides/Chem. Targets 17% Other Source: Roskill December 2013 Forecast Ta 2 O 5 Supply-Demand Balance (Mlbs) Source: Roskill December 2013 Ta2O5 Supply Ta2O5 Demand 5 Year Tin Price Source: ITRI 16

17 Concluding comments REWARDING AND POWERFUL PARTNERSHIP POTENTIAL Gippsland is able to contribute: Ta'adeen project equity; Feasibility study level technical work on the Abu Dabbab Project underpins 400K Plan; Offtake Agreement for 6 million lbs of tantalum product to a major global tantalum product supplier; Strong technical and operational skills to build and operate the Project, including 10 year operating record in Egypt; and Equity and debt market network. As an equity partner in Ta'adeen, Gippsland is seeking: Established network to provide local insight and facilitate the identification, acquisition and development of MENA region mining opportunities; Strong financial capacity to undertake commercial investments, initially into Ta'adeen and the Abu Dabbab Project and subsequently on a co-funding basis for new opportunities; and Interest to create a significant locally based mining house with expectations to seek a stock exchange listing to provide investment liquidity and new sources of development capital. 17

18 Ta adeen - an emerging collaboration and growth story Ta adeen Investments Ltd Project & Growth Profile Abu Dabbab (400K-stage 1) Pre-Production Advanced-Feasibility status In construction-q Abu Dabbab Extensions 400K Stage 2 Nuweibi Resource Opportunity to increase production near mine infrastructure Wadi Allaqi (Gold) Expansion Eritrea (Gold & Base Metals) MENA Projects Already Identified Opportunity for new discoveries and commodity diversification New Mining Project Opportunities Regional Project Generation 18

19 Ta adeen - an emerging collaboration and growth story Ta adeen Investments Ltd Growth Potential 19

20 THANK YOU جزیلا شكرا CONTACT DETAILS Gippsland Limited: Suite 12, 186 Hay Street Subiaco, WA 6008 PO Box 8206 Subiaco East WA 6008 Michael Rosenstreich Managing Director E: T: F: