Disclaimer All statements in this analysis, other than statements of historical facts, that address future market developments, government actions and

Transcription

1 AGM

2 Disclaimer All statements in this analysis, other than statements of historical facts, that address future market developments, government actions and events, are forward-looking statements. Tantalus Rare Earths AG believes that outcomes in such forward-looking statements are based on fair expectations and assumptions but are not a guarantee of future performance. Actual results may differ from forward looking statements due to shifts in government policy, the development of new rare earth technologies or substitutes, or other changes in economic conditions. This report, authorized by Tantalus Rare Earths AG (TRE AG), is strictly an overview of the Tantalus Project and is not intended to be used as investment advice. TRE AG will not be held liable for any loss as a result of investments in the rare earth industry, including, but not limited to, commodities and publically traded shares. Parties interested in investing in the rare earth industry should seek the advice of an experienced professional. The reader of this document assumes all responsibility of this market material and information. 2

3 Business Update 3

4 Exploration Focus only on clay samples, no drilling of bedrock performed clay samples taken (2011 exploration clay samples) Area explored covers app. 130 km2 of total concession of app. 300 km2 60 km2 in the Caldera area (same area as in 2011 with tighter grid) 70 km2 in the north-west of the concession area (totally new area for activity) Preliminary test results from the Caldera area confirm the findings of 2011 exploration and the economic feasibility to further develop the area with the goal to enter production Preliminary test results from the North-West confirming similar amounts of rare earths as in the Caldera area, doubling the total economically mineable area of the project Full results to be published as a resource estimate update in H2/2014 Various international teams visiting the site confirming the great potential of the project 4

5 Technology Tests made in 2013 by SGS Lakefield and University of Toronto on 62 samples from the Caldera area show following Very high extraction results Low extraction of Cerium (low value light rare earth) Low / no extraction of Uranium and Thorium (<1%) REE split shows high proportion of heavy rare earths, resulting in a high basket price Working on parallel technologies; tank leaching and in-situ leaching Outotec engaged to perform bulk testing and to design the process for REE extraction by tank leaching Chinese companies working on the use of in-situ leaching at the project Both University of Toronto and Outotec providing critical input factors for the environmental impact assessment 5

6 Complying with International Standards and Best Practices for environmentally and socially sustainable mining Gaia Consulting managing process together with Tantalus team and a consortium of local experts used for field-work etc. Baseline survey for Consession area started (to be finalized by Q3/2014) Environmental and social The Company has close contact with WWF, the UNDP and other key NGOs active in the region Participation in the plans to set-up an environmental protection area in the northwestern part of the peninsula Picture: baseline studies, fauna Picture: baseline studies, flora 6

7 Environmental and social Our key partners Picture: Tombs and sacred sites 7

8 Country Risk New president elected, new parliament elected, government in place Mr. Rajaonarimampianina is the first democratically elected and internationally recognized president of the country after the political turmoil that started in 2009 The international community has shown strong support for the new regime and many western companies have returned or are planning to return to the country We are working closely together with our local partner on social, personnel and administrative issues Together with the Malagasy Ministry of Mining we are planning various initiatives to support mining in Madagascar 8

9 The REE market After the high volatility in rare earths prices in 2011 and 2012, the market has stabilized China continues to dominate the supply of the rare earths market with its rich resources, high-grade deposits and significant cost advantage in operating and opening up rare earths mines The main drivers for Chinese dominance are the huge benefits of ionic type deposits compared to hard rock rare earths deposits A reliable and stable rare earths supply outside China would be important for the further development of downstream applications of rare earth elements and non-chinese rare earths users are keen to find alternative sources of supply Based on the geological and metallurgical work undertaken so far by western and Chinese experts, the Tantalus project is one of very few known ionic clay type medium-heavy rare earths deposits outside China The Chinese government has recently been tightening the regulations on rare earths mining which is in the long-run expected to cause increased costs also for Chinese rare earths producers and should therefore support a favorable development of rare earths market prices 9

10 Corporate New, smaller Supervisory Board New management team with mining background The exploration license (#6698) was extended in January 2014 for 3 years Capital increases representing new shares at EUR 20 / share providing the company with EUR financing (before expenses) Conversion of the convertible bond by issuing shares at EUR 20 per share 10

11 The Plan 11

12 The plan (1/2) H Updated resource statement based on 2013 exploration Further exploration to receive data for the mining plan Road construction to site finalized Environmental and social baseline study finalized Bulk testing results by Outotec; deliverables includes process chart, list of equipment, data on OPEX and CAPEX for tank leaching H Option to expand project with Outotec to full EPC contract, incl. feasibility study On-site pilot mining and leaching, subject to regulatory approval Terms of reference for environmental permit process to be confirmed Commercial contracts for off-takes and distribution Commencing the ESIA process 12

13 The plan (2/2) H Pilot mining results Mining plan to be finalized Technology decision (tank, in-situ or both) Submitting the results of the ESIA 2016 Exploitation license, subject to regulatory approval Building work (infrastructure and site) 2017 Start of operations and ramp-up 13

14 Thank You 14