Direct Nickel Limited March 2012 abr. Emerging Global Nickel Producer with Lowest Cost Processing

Transcription

1 Direct Nickel Limited March 2012 abr Emerging Global Nickel Producer with Lowest Cost Processing

2 Mambare 2011/12 program discovers high-grade nickel 20km north of Kokoda District, Oro Province ~ 100km 2 target 20 km long, 5-7km wide max. elevation 1200m Exploration licence area EL1390 ~242km 2 Mambare Plateau: In 1999 Ananconda Nickel Limited identified ~5Mt contained Ni in limonite alone EL 1390 Kododa township 2

3 Mambare 2011/12 program discovers high grade nickel 3

4 Mambare 2011 program discovers high-grade nickel Area 1: MAM-KK m from 10.00m at 1.7% Ni 0.06% Co, including 5.80m at 2.82% Ni 0.12% Co from 13.35m, with a peak Ni value of 1m at 3.28% Ni 0.12% Co from 15.95m Area 2: MAM-KK-0077A 31.15m from 10.00m at 1.12% Ni 0.06% Co, including Ni 0.05% Co from 28.10m, including 2.30m at 2.10% Ni 0.07% Co from 28.10m MAM-KK m at 1.42% Ni 0.06% Co from 7.73m, including 9.33m at 2.04% Ni 0.05% Co from 16.02m Area 3: MAM-KK m at 0.99% Ni 0.09% Co from 1.3m MAM-KK m at 1.38% Ni 0.06% Co from 11.61m, including 5.05m at 2.23% Ni 0.04% Co from 24.55m

5 Mambare Nickel Project PNG (50% JV, DNi operator) One of the world s great deposits, Anaconda Nickel Limited estimated 5 Mt of contained nickel metal 1 Mt of nickel metal has an in-ground value of ~US$20 billion N I C K E L Jan 2012 JV partner Regency Mines plc announcement of high-grade saprolite discovery Mambare 735 holes drilled, current 135 hole drill program completed, maiden JORC resource Q1/12 Transport - 120km flat and mostly sealed road to Oro Bay deep water port a rare advantage 60m wharf, water depth 10.1m, can take 40,000dwt, 180m Handymax class ships 5

6 What are nickel laterites? Limonite iron rich layer Saprolite magnesium rich layer Weathered Source rock Nickel ore zone Formed by weathering of a relatively common rock type Abundant Iron and magnesium-rich layers straddled by the nickel ore zone Flat-lying, layered deposits amenable to low cost mining and rehabilitation Easy to discover and drill out Soft ore with low grinding cost Prolific in SE Asia Breakaway exposure of full laterite profile at the Pequizeiro deposit, Araguaia Brazil

7 Laterites the future supply in nickel These 10 countries hold 89% of world laterite nickel The highest typical grades are in Indonesia and PNG Australia and South East Asia offer the best potential 7

8 Recovers much more nickel from the same deposit One flowsheet for the entire laterite ore profile Atmospheric pressure, tank leach, 304 stainless plant construction Recovers 90-95% of nickel in 1-4 hours residence time Much lower technical intensity than HPAL and smelting Recycles reagent (+95%), environmentally friendly tailings and low emissions Direct Nickel Process Fully scalable and profitable from 5,000tpa nickel size (under $200m capex) Produces Mixed Hydroxide Product MHP (40% nickel)

9 An elegant and robust flowsheet Uses nitric instead of sulphuric acid Patents and comprehensive IP protection Acid consumption of 20-30kg per tonne of ore vs ,000 kg per tonne using sulphuric 9

10 High value nickel product: Mixed hydroxide product (MHP) Fe 2 O 3 MHP contains Ni % Co 2 4 % Mag Oxide MHP is a marketable product, also haematite iron and mag oxide co-products. Nickel metal can also be produced 10

11 100 years of stainless steel mankind s favourite alloy Industrial Building cladding Food areas Whitegoods 5% goes into sinks New Delhi bus shelter

12 Nitrogen compounds are a building block of life Nitric acid is a very effective reagent for digesting ore but its neutral products readily become benign Recycling the reagent removes the need to dispose of spent, single-use sulphur chemicals to landfill Less waste of inputs generated in high opex processes Residual nitrates can fertilise plant growth during rehabilitation Direct Nickel process tailings contain low level nitrates that go on to to rejoin the nitrogen cycle During a lightning flash temperatures reach 30,000 C reacting nitrogen and oxygen to make dilute nitric acid 12

13 Direct Nickel tailings are growing peas in these trials DNi Tailings neutralised with DNi mag oxide 100% mulch 50% mulch 50% tailings 100% tailings 13

14 The breakthrough in capital and operating costs Capex $35+ Others Opex All DNi costs independently produced by Aker Solutions (now Jacobs Engineering). Note comparisons show DNi Process to MHP paying at ~75% of LME. Excludes mining costs. $35 US$ per pound of annual capacity $8.00/lb other processes $25 $12.50 DNi $1.83/lb DNi

15 Direct Nickel Process test plant at CSIRO Perth WA

16 Resources + Process = Production Direct Nickel is an emerging producer: Our strategy is to Run Perth test plant with 150 tonne ore bulk samples Accumulate nickel resources in the ground Only licensing nickel laterites projects where DNi has a share Build the JORC resource at Mambare JV (50%) Build a major nickel producer Dual growth turbines to build valuation 1. Accumulating nickel inventory by farm-in and outright acquisition 2. Major revaluation of the Direct Nickel Process by achieving global acceptance of the Direct Nickel Process 16

17 Quality partnerships & further CSIRO equity investment 2005 Direct Nickel Pty Ltd founded 2007 Teck & Oz Minerals invest 2009 positive Aker Solutions PFS CSIRO 1 st equity investment 2010 successful commercial scale recycle trial in Charlotte NC 2010 JV with Regency Mines (50/50) in Mambare Nickel Project 2012 High grade results from Mambare 2012 Jan Construction of Perth Test Plant 2012 Feb CSIRO decides to invest a further $2.3m in equity Commitment to RTO and ASX listing (The Commonwealth Scientific and Industrial Research Organisation is globally recognised as Australia s pre-eminent commercial science body and is technical partner to Direct Nickel)

18 The DNi Management Team experienced in innovation Julian Malnic Executive Chairman Professional geologist and experienced company builder who founded Nautilus Minerals Inc. (A$450m market cap, TSX-V & AIM listed ). Chairman of the Sydney Mining Club. Russell Debney CEO Has worked in resources since 1975 as a commercial & corporate lawyer in the resources space. In 1997 Russell joined Julian in building Nautilus Minerals Inc. and remains a director Graham Brock CTO & Project Manager A metallurgist with over 40 yrs. experience and a track record of managing large scale nickel projects and processes. Graham is also a Fellow of the Australian Institute of Mining & Metallurgy Richard Carlton COO Richard is an experienced professional mining engineer who has operated an array of complex mining projects. Richard also has strengths in community liaison and is a Fellow of the Australian Institute of Mining and Metallurgy Ian Bain Corporate Development Head Formerly Global Head of Mining and Metals Corporate Finance for ABN AMRO Bank NV. 30 years experience with strengths in corporate & banking sectors in mining, metals, oil & gas 18

19 Multi-billion dollar growth path Based on long term nickel price of US$8.0 / lb Projected Nickel Production Projected Revenue & Income 19

20 Direct Nickel - well-developed and market ready 2 Growing nickel resources Mambare, PNG Indonesia PT DNi More Powerful new process Exclusive process ownership Test plant ready Momentum Proven people Continuing track record in major value creation

21 Direct Nickel Limited Emerging Global Nickel Producer with Lowest Cost Processing Graham Brock Project Manager Russell Debney CEO Julian Malnic Executive Chairman