PILBARA LITHIUM. June 2016

Transcription

1 PILBARA LITHIUM June 2016

2 DISCLAIMER This presentation (in this projected form in hard copy and as verbally presented) (collectively Presentation ) is provided on the basis that neither Macarthur Minerals Limited ACN (the Company or Macarthur Minerals ), nor its officers, shareholders, related bodies corporate, partners, affiliates, employees, representatives and advisors make any representation or warranty (express or implied) as to the origin, validity, accuracy, reliability, relevance, currency or completeness of the material contained in the Presentation and no responsibility is taken for any errors or omissions. Nothing contained in the Presentation is, or may be relied upon as, a promise, representation or warranty, whether as to the past or the future. Macarthur Minerals excludes all warranties (including implied warranties) and all liability that can be excluded by law for any loss, claim, damage, cost or expense of any nature (including that arising from negligence) arising out of the Presentation (or any accompanying or other information) whatsoever, nor by reason of any reliance upon it. Macarthur Minerals accepts no responsibility to update any person regarding any inaccuracy, omission or change in information in this Presentation or any other information made available to a person or any obligation to furnish the person with any further information. This Presentation includes certain statements that may be considered forward-looking information within the meaning of applicable Canadian securities regulations and forwarding-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 (collectively, forward-looking statements ). All statements in this Presentation (other than statements of historical facts) are forwardlooking statements. The forward-looking statements contained in this document are made as of the date of this document. Except as may otherwise be required pursuant to applicable laws, the Company does not assume any obligation to update or revise these forward-looking statements, whether as a result of new information, future events or circumstances after the date of the Presentation, or to reflect the occurrence of unanticipated events. The forward-looking statements in this document reflect the current expectations, assumptions or beliefs of the Company based upon information currently available to the Company. Where such statements expressly or impliedly relate to future events, expectations and/or belief as to future events or results, involve known and unknown risks and uncertainties such expectation or belief is expressed in good faith and is believed to have a reasonable basis. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and no assurance can be given that these expectations will prove to be correct as actual results or developments may vary or differ materially from those projected in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include prevailing and projected market prices, exploitation and exploration estimates and results, continued availability of capital and financing, and general economic, market or business conditions. Factors that could cause actual results to differ materially from those in forward-looking statements include fluctuations in exchange rates and certain commodity prices, uncertainties related to mineral title in the projects, unforeseen technology changes that results in a reduction in minerals demand or substitution by other minerals or materials, the discovery of new large low cost deposits of minerals and the general level of global economic activity. Readers are cautioned not to place undue reliance on forward-looking statements due to the inherent uncertainty thereof. This Presentation references other corporations and provides certain information in relation to these corporations. All such information was obtained from the public record. The Company provides no assurances as to the accuracy or completeness of such information and readers are cautioned not to place any undue reliance on such information. Macarthur s Western Australian interests consist of separate projects. Each project is distinct and will be developed at different times and therefore Macarthur records and discloses scientific and technical results separately. Any future economic viability of one project will not determine the outcome of the other. Projects are at the early stages of evaluation and although reasonable care has been taken to ensure that the facts stated in this Presentation are accurate and or that the opinions expressed are fair and reasonable, no reliance can be placed for any purpose whatsoever on the information contained in this document or on its completeness. Information provided relating to projected costs, capital expenditure, production profiles and timelines are expressions of judgment only and no assurances can be given that actual costs, production profiles or timelines will not differ materially from the estimates contained in this Presentation. Statements relating to resource estimates are expressions of judgment, based on knowledge and experience and may require revision based on actual production experience. Such estimates are necessarily imprecise and depend to some extent on statistical inferences and other assumptions, such as iron ore prices, cut-off grades and operating costs, which may prove to be inaccurate. All persons should seek appropriate professional advice in reviewing or considering the Presentation and all other information with respect to Macarthur Minerals and evaluating the business, financial performance and operations of Macarthur Minerals. Neither the provision of the Presentation nor any information contained in the Presentation or subsequently communicated to any person in connection with the Presentation is, or should be taken as, constituting the giving of investment or financial product advice to any person in respect of dealing in Macarthur Minerals securities, and no such information should be taken to constitute a recommendation or statement of opinion that is intended to influence a person in making a decision to deal in Macarthur Minerals securities. Some photos and pictures in this Presentation are for illustration purposes only and do not depict current Macarthur Minerals operations. This Presentation does not purport to contain all of the information that may be required to evaluate all of the factors that would be relevant in determining whether to deal in Macarthur Minerals securities, including but not limited to any person's objectives, financial situation or needs. Each person must not rely on the information provided but should make, and will be taken to have made, its own investigation, assessment and analysis of the information in this Presentation and other matters that may be relevant to it in considering whether to deal in Macarthur Minerals securities. The information contained in the Presentation is not intended to be an offer for subscription, invitation or recommendation with respect to the shares in any jurisdiction and neither this document nor its contents shall form the basis of any contract or commitment. Macarthur Minerals owns the copyright in this Presentation. No part of this Presentation may be shown or distributed to third parties or reproduced, stored or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise without prior written permission of Macarthur Minerals. The distribution of the Presentation in jurisdictions outside Australia may be restricted by law and you should observe any such restrictions. Professor Kenneth D. Collerson is a Fellow of the AusIMM, is a member of the Lithium Advisory Board of Macarthur and is a Qualified Person as defined in National Instrument Professor Collerson has reviewed and approved the technical information contained in this presentation. Mr Porter, a member of the Australian Institute of Geoscientists, is a full-time employee of CSA Global Pty Ltd and is a Qualified Person as defined in National Instrument Mr Porter has reviewed and approved the technical information contained in this Presentation. Dr Scogings, a member of the Australian Institute of Geoscientists and Registered Professional Geoscientist (Industrial Minerals), is a full-time employee of CSA Global Pty Ltd and is a Qualified Person as defined in National Instrument Dr Scogings has reviewed and approved the technical information contained in this Presentation. 1

3 MACARTHUR OVERVIEW Macarthur Minerals Limited is an Australian public company listed on the Toronto Venture Stock Exchange (TSX-V: MMS). One of few TMX listed companies with lithium exploration acreage in Australia. Currently focussed on acquiring and developing high grade hard rock lithium exploration targets. Macarthur Lithium holds 20 Exploration Licenses and prospective interests in rights to lithium on Sulphur Springs covering a total area of 1,545 km 2 (381,778 acres) across the Pilbara, Ravensthorpe and Mid-West regions of Western Australia. Rare Earth Minerals PLC (AIM: REM, OTC: REMMY) as strategic investor/partner, who holds 14.6% of Macarthur. Memorandum of Understanding with Venturex Resources Limited to enter into a Farm-in and Joint Venture Agreement for rights to lithium on their Sulphur Springs Project in the Pilbara. 2

4 CORPORATE OVERVIEW Macarthur s History Macarthur has been a single project company, now with the iron ore projects on hold, the Company is focussing on lithium in Australia. Macarthur was founded by the late Ken Talbot, billionaire mining entrepreneur Australian (Brisbane) company, listed on TSX/V for over 10 years Strong management team with significant exploration experience. Capital Structure (TSX-V: MMS) As at 16 June 2016 Ordinary Shares 104.2m Options 6.9m Warrants 33.3m Market Capitalisation Cash at Bank (31 Dec 2015) Debt C$10.4m A$680k Nil Board of Directors Cameron McCall, Non-Executive Chairman 40 year career providing investment advice, equity capital raising and share trading to corporate entities and private clients at Hartleys Ltd and Macquarie Bank Ltd. David Taplin, Managing Director 25 years experience as an executive in mining, gas and electricity for ASX, TSX listed companies and government owned corporations. David is a lawyer and CPA. Alan Phillips, Executive Director Appointed to the Board in October years experience in corporate and international mining. 3

5 C$ Closing Share Price Volume (millions) SHARE DATA (TSX-V:MMS) Share price C$0.10 (16 June 2016) Calendar year high/low C$0.18-$0.015 Macarthur s Share Price and Volume History from 1 March June Mar 1, 2016 Mar 14, 2016 Mar 28, 2016 Apr 8, 2016 Apr 22, 2016 May 5, 2016 May 18, 2016 June 1, 2016 June 14,

6 PILBARA LITHIUM ACREAGE Macarthur has applied for 17 exploration licences across the world class Pilbara region of Western Australian that is prospective for hard rock lithium. Covers an area of 1,332 km 2 (including prospective interests in rights to lithium on Sulphur Springs). Easy year-round access to exploration areas. Pilbara exploration areas are approximate to: Pilbara Minerals Limited (ASX:PLS) JORC Mineral Reserve of 29.5 Li 2 O. 1 Preliminary Feasibility Study: NPV of A$407m and IRR of 44%. Recently raised A$100m to develop lithium project. 2 Altura Mining Limited (ASX: AJM) JORC Mineral Resource estimate of 35.7 Li 2 O from small pegmatite bodies, with 372,000 tonnes of contained lithium 3. Mining Study: NPV of $277m and IRR of 42.5%. 3 Dakota Minerals Limited (ASX: DKO) Phase One drilling programme results at the Lynas Find Lithium Project, including % Li 2 O, % Li 2 O, giving an overall weighted average grade intersected at its project to date to 1.73% Li 2 O. 4 1 Pilbara Minerals Limited ASX Announcement, February 1, Pilbara Minerals Limited ASX Announcement, April 7, Altura Mining Limited ASX Announcement, February 11, 2016 and February 19, Dakota Minerals Limited ASX Announcement, May 13,

7 PILBARA LITHIUM ACREAGE LOCATIONS 7 8 6

8 HELI-BORNE RECONNAISSANCE The first reconnaissance of the Company's Pilbara acreage was conducted in early May 2016 and located a number of pegmatites which contain one or more visually identified minerals indicative of rare element Lithium-Caesium-Tantalum (LCT) pegmatites.. Assay results from that heliborne reconnaissance sampling of pegmatites is encouraging and confirms the presence of moderately to strongly fractionated rare element pegmatites within three of the Company s Exploration Licence Applications. These results are positive, support the Company s exploration targeting model, and justify ongoing assessment of the project tenements. The Company is confident in locating lithium-bearing pegmatites and is currently working through the exploration strategy designed to locate economic pegmatite deposits in the company s tenement portfolio. Reconnaissance was only conducted on 7 of the 17 Exploration License Applications in the Pilbara and did not include all areas contained in those applications. The initial reconnaissance program only assessed the lithium potential of a fraction of the Company s acreage package. The Company is undertaking a second reconnaissance program to identify high grade lithium targets. 7

9 SULPHUR SPRINGS Macarthur entered into a MOU with Venturex Resources Limited (ASX:VXR) to enter into a Farm-in and Joint Venture Agreement for rights to lithium on their Sulphur Springs Project in the Pilbara, which is contiguous with some of the Company s Exploration Licence Applications. Venturuex is a resource company listed on the ASX focused on the development of its two advanced copper zinc projects; Sulphur Springs Project and the Whim Creek Project. The Company has commenced desktop technical review of the Sulphur Springs Project for lithium mineralization. If pegmatite-hosted lithium mineralisation is identified at Sulphur Springs, it will allow Macarthur to fast track exploration activities including drilling, as the majority of the Sulphur Springs comprises granted Mining Leases. Venturex has conducted RC drilling for zinc-copper across Sulphur Springs, which has generated a geochemical database and the opportunity for the Company to resample existing drill spoil and RC drill chips for lithium or lithium pathfinder elements. 8

10 OTHER LITHIUM EXPLORATION ACREAGE Ravensthorpe Macarthur has applied for two exploration licences in the Ravensthorpe district in South Western Australia covering an area of 91 km 2 Proximate to the Mount Cattlin project of Galaxy Resources Limited (ASX:GXY), which is currently mining and processing spodumene and tantalum concentrate. A large pegmatite is mapped on the acreage. Edah Hill Macarthur has applied for one exploration licence in the Mt Edah district in the greenstone terrane of the Murchison Province of the Yilgarn, Western Australia covering an area of 121 km 2 The surrounding region contains occurrences of pegmatites with tantalum, beryl and traces of other rare metals (tin, tungsten, lithium). Previous mapping of the application area and surrounding tenure reports innumerable pegmatite dykes. 9

11 A$m A$m ASX LITHIUM COMPARABLES Market Capitalisation of Selected ASX listed Lithium Companies (A$m) 1100 Lithium Producers Lithium Developers Lithium Explorers Pilbara Acerage located in the Pilbara, Western Australia 30 Only TSX-V Company in Pilbara ORE GXY GMM PLS NMT AJM EMH 0 DKO MCT SYA KAI TSXV: MMS VMC Name Orocobre Ltd Galaxy Resources Ltd General Mining Ltd Pilbara Minerals Ltd Neometals Ltd Altura Mining Ltd European Metals Holdings Dakota Minerals Ltd Metalicity Ltd Sanoya Mining Ltd Kairos Minerals Ltd Macarthur Minerals Limited Venus Metals Corp Symbol ORE GXY GMM PLS NMT AJM EMH DKO MCT SYA KAI TSXV: MMS VMC Shares on Issue (millions) 210 1, , Share Price (A$) $ $ $ $ $ $ $ $ $ $ $ $ $ Market Cap (millions) Volume last 30 days (millions) $ 995 $ 623 $ 243 $ 704 $ 252 $ 212 $ 44 $ 38 $ 31 $ 19 $ 17 $ 10 $ Source: ASX, TMX 16 June 2016 ~38% of Macarthur is held by 3 shareholders and management 10

12 LITHIUM ADVISORY BOARD Emeritus Professor Ken Collerson, PhD., FAusIMM Consultant Ken has more than 40 years experience as a geoscientist and as a certified professional (QP). Ken will provide a significant depth of knowledge and breadth of lithium experience to the Company that is unsurpassed. Ken is a world leading authority on the geology and geochemistry of strategic metal mineralization including lithium. He has significant experience with LCT (lithium-cesium-tantalum) spodumene-bearing pegmatites and has worked extensively in the Pilbara region where some of the Company s acreage is located in Western Australia. Most recently Ken worked on a hard rock lithium project in the Jarkvissle area of Sweden. Ken believes that the Company s acreage in the Pilbara region of Western Australia is highly prospective for lithium. Ken has a PhD from the University of Adelaide and is an internationally recognized thought leader in the geosciences. He has published extensively and his work is highly cited. Dr Dean Carter BSc (Hons), PhD - Project Manager Dean is a scientist with more than 15 years experience in environmental research and managing the regulatory approval of mining and infrastructure projects in various commodities including iron ore, coal and nickel. He has been involved in all aspects of project development from exploration, feasibility, construction and production. He has experience in project management including study planning and budgeting, land acquisition, native title negotiation, logistics pathways and government relations. 11

13 INDEPENDENT TECHNICAL CONSULTANTS Technical Consultants: CSA Global Pty Ltd Dr Andrew Scogings MSc, PhD, MAIG, MAusIMM Andrew has more than 30 years of experience in industrial minerals exploration, geology, mining, product development, and marketing. During his time with CSA, he has undertaken project management and technical advice for a diverse range of industrial minerals exploration and mining projects including lithium, graphite, chromite, potash, mineral sands, silica, and REE in Australia, Africa, Greenland, Indonesia and Norway. Mr Graham Jeffress BSc (Hons), FAIF, RPGeo, FAusIMM, FSEG Graham is a geologist with over 25 years' experience in exploration and management in Australia, PNG and Indonesia. Graham has worked in exploration (ranging from grassroots reconnaissance through to brownfields, near-mine and resource definition), project evaluation and mining in a variety of geological terrains, commodities and mineralisation styles within Australia and internationally. Graham was a Federal Councillor of the Australian Institute of Geoscientists for 11 years and joined the Joint Ore Reserves Committee in Mr Ralph Porter MSc, BSc (Geology), MAIG, MSEG Ralph is a geologist with over 35 years of mineral exploration experience. He is highly experienced in target generation, project evaluation and exploration program implementation for gold, base metals, tantalum, nickel and PGM s. Ralph was Exploration Manager for Sons of Gwalia in Western Australia for nearly 10 years including responsibility for tantalum pegmatites for 4 years. Ralph was Special Projects Manager for Sons of Gwalia in Western Australia for nearly 10 years, including responsibility for tantalum pegmatite evaluation and exploration for 4 years. 12

14 CONTACT DETAILS AUSTRALIAN HEAD OFFICE Macarthur Minerals Limited Level 20, 10 Eagle Street, Brisbane QLD 4000 Australia David Taplin Managing Director communications@macarthurminerals.com 17

15 TSX-V: MMS