For personal use only. Amazon Bay Ironsands Project

Transcription

1 Amazon Bay Ironsands Project April 2013

2 Overview Nearly 200 km stretch of coast line, 150 km south east of Port Moresby, PNG Focus on 30 km long Threadfin area, which has exploration target of 630 million tonnes¹ Concentrate of 52% Fe, 1% V2O5 & 17% TiO2 to be produced on site Metallurgical processes now exist to separate out high purity vanadium and titanium products, from the iron Low cost, well tested production process - similar to New Zealand Iron & Steel operation ¹ Quantity estimate based on previous drilling, Landsat and available radiometrics covering Amazon Bay dune formation. Refer Disclaimer Cautionary Statement

3 Amazon Bay - Undervalued Leverage Significantly under valued when compared to ASX listed peers with iron-vanadium-titanium resources Company ASX Resource¹ (tonnes) Location Market Cap² ($M) Foyson FOY 630 million³ PNG 4 Indo Mines IDO 165 million Indonesia 54 Amex Resources AXZ 220 million Fiji 105 Latin Resources LRS 1.5 billion Peru 30 TNG TNG 160 million Australia 43 Balla Balla Project million Australia 40 ¹ Resources as defined by Company ² As at 11 April 2013 ³ Threadfin Area - Refer Disclaimer Cautionary Statement

4 Project Strategy Analysis indicates 10% of ironsands reports to Heavy Minerals concentrate Build project in 15 mtpa modules to produce 1.5 mtpa HM concentrate Module comprises: 2000tph cutter/suction dredge Floating Wet Concentrator plant Land based screening and selective grinding facility Stockpiling Single-point ship loading

5 Amazon Bay Tenements Total Exploration area: 3355 square kilometres -10º DOMARA EL km 149º30' SANDBANK EL km2 AMAZON BAY NORTH ELA km2 POI EL 1628 OCEANA ELA 1217km2 POI SOUTH ELA km2 AMAZON BAY EL km2 MARUTA MARYTA ELA 682km2 652km² Map projection: Lat Long (WGS84) Produced by: Edward S. K. Fry FOYSON RESOURCES LIMITED AMAZON BAY IRON SANDS PROJECT P.N.G kilometres 20

6 Amazon Bay Proposed Drilling CY m Radiometrics draped over Google Earth

7 Amazon Bay Comparative Advantages Relatively close to China Limited environmental impediments Low population on the resource area Unlimited freshwater Can be dredged due to high water table Can pre-fabricate plant offshore in lower cost environment Ocean transport of product possible Coastline is more protected compared to the open coastline of south Java and South America

8 Conceptual Flow Sheet Dredge 2000 t/h Primary Concentrator Plant "PCP" (floating) +3mm Oversize Oveflow (slimes) sand tails to pond Trommel 3mm undersize Deslimming cyclones underflow (sand) Gravity Circuit - 4 stages -Rougher spirals -Mids retreats -Cleaner scavanger spirals -Cleaner spirals heavy mineral concentrate HMC stockpile ( on-shore) trucked or pumped to Concentrate Upgrading Plant Land based Concentrating Upgrading Plant "CUP" Oversize -3mm +1mm Linear Screens 1mm -1mm undersize Magnetics Primary Wet Drum Magnets 1000 Gauss non-magnetics MAGNETITE CIRCUIT NON-MAGNETIC CIRCUIT to tails dam Possibly spiral upgrading heavy minerals Gravity Circuit -Primary spirals sand tailings 2 X LIMS 380Gauss magnetics Gravity Circuit Classify at 150um -150um spirals -Secondary spirals 170 t/h Super-concentrate +150um 390 t/h heavy minerals ( contails free gold) Gold circuit Knelsen, Spinner or ILR Ball or rod mill P um -75um magnetics 380G magnets to tails non-magnetics tails non-magnetics to waste 2 X LIMS 380Gauss 3 stage cleaning magnets magnetics Final magnetite concentrate Non-magnetic VHM concentrate Gold concentrate to stockpile for shipment ( contains rutile, zircon, ilmenite) 1.5mtpa

9 Cost Estimates Based on mining 15mtpa of ironsands to produce 1.5mtpa of HM concentrate, costs are estimated at: Capital cost A$ million Operating cost A$29/tonne concentrate FOB These compare favourably with other ironsands projects under consideration in Asia/Pacific and South America

10 Secondary Processing The HM concentrate can be processed to produce high purity titanium, vanadium and iron There are two process routes available Pyrometallurgy: involves a reducing, high temperature environment to produce molten iron, with titanium and vanadium slags, for further processing Hydrometallurgy: involves leaching and solvent extration to produce three high purity metals Pilot scale testing of both these processes is underway world-wide on various Fe/Ti /V deposits;

11 Secondary Processing Secondary processing could occur in low cost environments such as the Philippines or China CHINA HONG KONG BATANGAS PHILIPPINES PNG AMAZON BAY Australia

12 Summary Amazon Bay is a very large Fe/Ti /V resource The project has very favourable logistics for supply of a HM concentrate into China and Asia generally The HM component of the ironsands is typically higher than other comparable iron sands projects The current market value of Amazon Bay is only 5% to 10% of comparable ironsands projects

13 Foyson Resources NOTICE AMD DISCLAIMER CAUTIONARY STATEMENT This document has been prepared by Foyson Resources Ltd (the Company). This document contains background information about the Company and its projects current at the date of this document. It does not purport to be all inclusive or complete. Recipients should conduct their own investigations and perform their own analysis in order to satisfy themselves as to the accuracy and completeness of the information, statements and opinions contained in this document. The document is for information purposes only. Neither the document nor the information contained in it constitutes an offer, invitation, solicitation or recommendation in relation to the purchase or sale of shares in any jurisdiction. This document may not be distributed in any jurisdiction except in accordance with the legal requirements applicable in such jurisdiction. Recipients should inform themselves of the restrictions that apply in their own jurisdiction. To the fullest extent permitted by law, Foyson Resources Ltd, its officers, employees, agents and advisers do not make any representation or warranty, expressed or implied, as to the currency, accuracy, reliability or completeness of any information, statements, opinions, estimates, forecasts or other representations contained in this document. No responsibility for any errors in or omissions from this document is accepted. Where Foyson Resources Ltd expresses or implies an expectation or belief as to future events or results, such expectation or belief is expressed in good faith and believed to have a reasonable basis. 1 To the extent that there is information set out in this document, any potential quantity and grade is conceptual in nature, as there has been insufficient exploration to define a mineral resource under the JORC Code and it is uncertain if further exploration will result in the determination of a mineral resource under the JORC Code. Quantity estimate based on previous drilling, Landsat and available radiometrics covering Amazon Bay dune formation. The information contained in this document that relates to Exploration Results or Mineral Resources or Ore Reserves is based on information compiled by Mr Chris Young who is a Member of the Australian Institute of Geoscientists. Mr Young has sufficient experience which is relevant to the style of mineral deposits under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 edition of the Australasian Code for Reporting of Mineral Resources and Ore Reserves. Mr Young consents to the inclusion in this presentation of the matters based on his information in the form and context in which it appears.