GMP_Mining_Jamboree_Feb_2014
- 1. BUILDING A TIER 1 MINERAL SANDS COMPANY GMP MINING JAMBOREE FEBRUARY 2014
- 2. Disclaimer This presentation has been prepared by World Titanium Resources Ltd (WTR). Certain information in this document has been derived from third parties, and though WTR has no reason to believe that it is not accurate, reliable or complete, it has notderived from third parties, and though WTR has no reason to believe that it is not accurate, reliable or complete, it has not been independently audited or verified by WTR. Any forward-looking statements included in this document involve subjective judgement and analysis and are subject to uncertainties, risks and contingencies, many of which are outside the control of, and may be unknown to, WTR. In particular, such statements are only as of the date of this document, assume the success of WTR’s strategies, and are subject to significant political, regulatory, business, competitive and economic uncertainties and risks. Actual future events may vary materially from the forward-looking statements and the assumptions on which the f d l ki t t t b d R i i t f thi d t ("R i i t ") ti d t t l d liforward-looking statements are based. Recipients of this document ("Recipients") are cautioned to not place undue reliance on such forward-looking statements. WTR makes no representation or warranty as to the accuracy, reliability or completeness of information in this document and does not take responsibility for updating any information or correcting any error or omission which may become apparent after this document has been issued. To the extent permitted by law, WTR and its officers, employees, related entities and agents ("Agents") disclaim all liability direct indirect or consequential (and whether or not arising out of the negligence default or( Agents ) disclaim all liability, direct, indirect or consequential (and whether or not arising out of the negligence, default or lack of care of WTR and/or any of its Agents) for any loss or damage suffered by a Recipient or other persons arising out of, or in connection with, any use or reliance on this presentation or information. All amounts in A$ unless stated otherwise. Ian Ransome, B.Sc. (Hons) Geology, Pr.Sci.Nat., a Director of the Company, who is a registered geological scientist with the South African Council for Natural Scientific Professions (SACNASP), and has sufficient experience which is relevant to the styles of mineralisation and types of deposits under consideration, and is thus a Qualified Person in terms of the JORC Code, has reviewed and consented to the inclusion of the scientific and technical information contained in this presentation. Building a Tier 1 Mineral Sands Company 2
- 3. Ranobe: Focus on a high grade quality Project • Ranobe Mine ‣ Large, scalable 959Mt grading 6.1% HM HM suite-72% Ilmenite -5.5% Zircon 2 4% Rutile-2.4% Rutile -4.4% Slimes ‣ Quality sulphate ilmenite and R/Z conc.Q y p / • Growth options at 3 other deposits- Morombe 2.5Bt grading 1-3% HM Basibasy 445Mt grading 4.5-5.5% HM Ankililoaka 365 Mt grading 5-6% HM Building a Tier 1 Mineral Sands Company 3 • Now reassessing all the DFS components
- 4. World Titanium – corporate snapshot Listing ASX (WTR) History in MadagascarCapitalisation 2001‐2005 Drilling over 800 holes identified 4 areas showed 710 Mt at 6 3%HM 12 mth price range A$0.27 – $0.08 Shares 362,006,589 showed 710 Mt at 6.3%HM 2005‐2009 Exarro completed JORC , scoping study 2009‐2012 Madagascar Resources‐TZMI review start in 2009 –dashboard study ‐707Mt at Market cap A$33M at 9 cents Cash (1/2/2014) A$4.0M Major holders 20.1% Boulle Titanium 19 1% Mineral Deposits 6.5%HM 2012 WTR float 2012‐now TZMI‐362 holes‐DES, EIS, trial mining for Ranobe Reserve 161Mt at 8.2%HM 19.1% Mineral Deposits New management team Nic Limb Non‐Executive Chairman Jeff Williams CEO as from Nov 18Jeff Williams CEO as from Nov 18 Mahen Sookun CFO as from Sep 12 J l L Cl i C t M Building a Tier 1 Mineral Sands Company 4 Jules LeClezio Country Manager
- 5. Secured Ranobe Mining Licences Mining licences granted April 2012 Ranobe Licences Mineral Resource 959 Mt @ 6.1% THMg g p • 40 year licences, renewable • 313 million tonne Mineral Resource Mining Licence (1) Mineral Resource 176 Mt @ 8.1% THM Ore Reserve 161 Mt @ 8 2% THM • Average grade 7.6% THM Exploration licence renewed April 2012 161 Mt @ 8.2% THM p p • 3 year licence • Convertible into a mining licence • Covers rest of the Mineral Resource • 959 million tonnes at 6.1% THM Mining Licence (2) Mineral Resource 137 Mt @ 6.9 Building a Tier 1 Mineral Sands Company 5
- 6. 2013: The Year In Review • Ranobe Mining Licences granted in April 2012 and DES in August 2012 • Maiden Ore Reserve at Ranobe of 161 Mt grading 8.2%HMg g • Water extraction rights granted • Ranobe 362 hole drill program completed• Ranobe 362 hole drill program completed • Trial mining program complete and successful customer test work • AML Perth-6 tonne Bulk sample confirmed process design and product quality 2014: Where are we? • New Government elected- Mr Hery Rajaonarimampianina • ESIA Scoping phase to be completed in March quarter 2014 • ESIA submission to Government planned • ESIA permit process 6 months re-visit logistics/engineering to reduce Building a Tier 1 Mineral Sands Company 6 ESIA permit process 6 months _ re visit logistics/engineering to reduce capital costs?
- 7. Definitive Engineering Study Input from experts • TZMI process and overall study management• TZMI – process and overall study management • EPMS – engineering • JFA BMT – port design • McDonald Speijers – Resource and ReserveMcDonald Speijers Resource and Reserve • IMLS Mine contractors – dry mining • Haul road operator – haul road truck design • COLAS – In country costs and civil engineering Simple mining, processing and logistics • Single dry mine with 2 Front End Loadersg y • Pump slurry to Primary Concentrator • Mineral Separation Plant at mine site • Sulphate and chloride ilmenite • Zircon/rutile concentrate • 55km road to storage and barge and/or jetty • Direct load vessels in reef sheltered water Building a Tier 1 Mineral Sands Company 7
- 8. Increased Resource, Maiden Reserve 36% Increase in Mineral Resource Mineral Resource 959 million tonnes • 959 million tonnes at 6.1% THM • One continuous deposit C t ff d f 3% 959 million tonnes @ 6.1% THM • Cut off grade of 3% Maiden Ore ReserveMaiden Ore Reserve • 161 million tonnes at 8.2% THM • 21 year LOM Ore Reserve 161 illi t • Just 17% of current Mineral Resource • >100 years at initial production rate 161 million tonnes @ 8.2% THM Building a Tier 1 Mineral Sands Company 8
- 9. Completed Ranobe drilling program • 8000m, 362 hole program • Resource development and mine optimisation Building a Tier 1 Mineral Sands Company 9
- 10. Successful Trial Mining • Free digging, stable pit walls • Confirmed suitability of front end loader dry miningConfirmed suitability of front end loader dry mining Building a Tier 1 Mineral Sands Company 10
- 11. Successful Trial Mining Building a Tier 1 Mineral Sands Company 11
- 12. Sample Processing • 6 tonne ore sample shipped to Perth • Processed through DES flow sheet • Process design and product quality confirmed Primary Ilmenite (%) Secondary Ilmenite (%) Sulphate pigment Chloride slag feedstock High grade slag feedstock Synthetic Rutile Chloride pigment Titanium Dioxide TiO2 49.5 57.02 Iron FeO 24.6 5.77 Fe2O3 22.0 30.2 FeO:Fe2O3 1.12 Sili /Al i Si O /Al O 0 7/0 6 1 30/1 12Silica/Alumina Si2O3/Al2O3 0.7/0.6 1.30/1.12 Phosphorous P2O5 <0.05 0.07 Calcium CaO 0.02 0.05 Magnesium MgO 0.6 0.3 – 0.5g g Manganese MnO 0.9 1.0 – 1.5 Chromium Cr2O3 0.08 0.12 Niobium Nb2O5 0.15 0.19 V di V O 0 25 0 20 Building a Tier 1 Mineral Sands Company 12 Vanadium V2O5 0.25 0.20 Uranium and Thorium U + Th (ppm) 15 + 30 to 50 20 + 150
- 13. Continued Support for the Community Grievance mechanism • Confidential community feedback • Designed and being implemented Water supply for 3 villages R t d ll d i t ll d f t• Restored wells and installed foot pumps Australian Doctors For Africa • Supported 2 visits to Toliara Support Local Community Sport • Improved sport facilities Building a Tier 1 Mineral Sands Company 13
- 14. A Large, High Grade Deposit Building a Tier 1 Mineral Sands Company 14 APG - Austpac; ARO – Astro; ATR - Astron; BSE - Base; DRX - Diatreme; GUN - Gunson; IMA - Image Resources; KMR – Kenmare Resources; MDL – Mineral Deposits; MZI - Matilda Zircon; PFP – Pathfinder; SFX – Sheffield Source: Company websites, TZMI
- 15. Competitive Cost Structure Area Annual Average Operating Cost Total US$m Per Tonne Product $US/t$US/t Mining 16.2 36 Concentrator 8.9 20 Mineral Separation Plant 10.4 23p Product transport and Handling 8.9 20 Admin and Marketing 5.0 11 Royalties 2.3 5 T t l 51 7 116* Revenue-to-cash cost ratio: 2015Total 51.7 116* cost ratio: 2015 * Based on treating 8 Mt sand per year and production of 400,000 tonnes of ilmenite Building a Tier 1 Mineral Sands Company 15 Data in 2015 RC curve is based on TZMI’s long term zircon and titanium feedstock price forecasts and production forecasts of existing and newly approved operations. Source: TZMI
- 16. Preliminary Development Capital Area Capital Pre-production capital expenditure Mine + Primary Concentrator 19 Mineral Separation Plant 26 Road + Port 71 Oth I f t t 13Other Infrastructure 13 Indirect + Other 7 Process Plant and Infrastructure 136 EPCM (17%) 23( ) Contingency (20%) 32 Total – Base Case 192 Total (jetty piling cost range) Low 188 Hi h 200 (j y p g g ) High 200 Building a Tier 1 Mineral Sands Company 16
- 17. Significant Shareholder Value Creation ‘Starter Pit’ Mine life 21 yearsMine life 21 years Average annual production rate Ilmenite 407,000 tpa Zircon/rutile concentrate 44 000 tpaZircon/rutile concentrate 44,000 tpa Ore mined 161 million tonnes Average grade 8.2% Ore mined per annum 8 million tonnes Preliminary DES Capital Investment US$192 million development capital US$24 million working capitalUS$24 million working capital Building a Tier 1 Mineral Sands Company 17
- 18. BUILDING A TIER 1 MINERAL SANDS COMPANY GMP MINING JAMBOREE FEBRUARY 2014