The Next Big Graphite Player on South Australia s Eyre Peninsula

Transcription

1 The Next Big Graphite Player on South Australia s Eyre Peninsula May 2012 ASX Code: LML

2 Disclaimer and Competent Person s Statement This presentation has been prepared by Lincoln Minerals Limited ( LML") as an aid to a spoken explanation. The information contained in this presentation is a professional opinion only and is given in good faith. The presentation is for the information of shareholders, potential investors and other interested stakeholders only and is not intended to guide any investment decisions in LML. Some information in this presentation has been derived from third parties and though LML believes it to be reliable as at the date of this document, LML makes no representation or warranty as to its accuracy, reliability or completeness. To the extent permitted by law, LML and its officers, employees, related bodies corporate and agents ( Agents ) disclaim all liability, direct, indirect or consequential (and whether or not arising out of the negligence, default or lack of care of LML and/or any of its Agents) for any loss or damage suffered by a Recipient, a purchaser or other persons arising out of, or in connection with, any use or reliance on this presentation or information. The Recipient agrees that it shall not seek to sue or hold LML or its Agents liable in any such respect for the provision of this presentation or any other information. Information in this presentation that relates to exploration activity, mineral resources and results was compiled by Dr AJ Parker who is a Member of the Australasian Institute of Geoscientists. Dr Parker is Managing Director of Lincoln Minerals Limited and has sufficient experience relevant to the styles of mineralisation and to the activities which are being presented to qualify as a Competent Person as defined by the JORC code, Dr Parker consents to the release of the information compiled in this presentation in the form and context in which it appears. It is emphasized that Exploration Target tonnage and grade estimates are entirely conceptual in nature and it is uncertain if further exploration will result in the estimation of a Mineral Resource. Copper Equivalent is based on LME copper (US$8,185), lead (US$2,045) and zinc (US$2,000) prices per tonne at 20 January The copper equivalent calculation represents the total metal value for each metal, multiplied by the price-based conversion factor, summed and expressed in equivalent copper percentage. These results are exploration results only and no allowance is made for recovery losses that may occur should mining eventually result nor metallurgical flowsheet considerations. The copper equivalent calculation is intended as an indicative value only.

3 Lincoln Minerals Limited Company Overview Listed on ASX March 2007 Market capitalisation (May 16.5 cents/share) $25 million Cash on hand 31 March 2012 $1.8 million Offices in Adelaide and Port Lincoln Significant exploration assets on Eyre Peninsula and emerging miner Iron ore, graphite, copper-lead-zinc-silver, nickel-cobalt Undervalued Graphite emergence Minbrie & Nantuma announcements Capital raising

4 Graphite Exciting New Opportunities Graphite is a form of carbon, an excellent conductor of heat and electricity with the highest natural strength and stiffness of any material to extremely high temperatures ( C) It is best known as the lead in pencils and as a dry lubricant It is commonly used in steelmaking, in electrical equipment and, in particular, in lithium-ion batteries a growing market Over 50 kilograms in every electric car New products in development by IBM, Intel & others - graphene There are 2 naturally occurring types of graphite: Crystalline flake or vein graphite (flat, plate-like particles >100 microns) Amorphous graphite Flake graphite is most valuable with current market prices for high grade 94-97% carbon between US$2,000 and US$3,500 per tonne. Amorphous graphite powder sells for just under US$1,000 Graphene one atom thick layer of carbon atoms

5 Kookaburra Gully graphite Graphite Exciting New Opportunities Annual graphite demand expected to increase 50% from 1.1 Mt to 1.5 Mt by 2020 based on the steel market alone Demand from batteries and high-tech applications including pebble-bed nuclear reactors is projected to be dramatic Lithium-ion batteries are projected to more than double the demand for graphite to about 2.6 Mt by 2020 That type of demand growth would require at least 20 new mines at 50,000 tpa Industry analysts predict Graphene will be a major new driver of graphite demand 75% world graphite is mined in China but resources and exports from China are diminishing Most of China s resources are lower grade amorphous powder China is now the biggest importer of graphite and has closed some state-owned enterprises to preserve its graphite resources. It has imposed a 20% export duty plus a 17% VAT, and instituted an export licensing system to ensure supply to China s domestic economy. Extensive graphite resources occur on Eyre Peninsula in South Australia a world class graphite province

6 Exploration & Development Largest tenement holder on Eyre Peninsula 4,944 sq km Coordination agreement with Centrex Metals: Centrex has iron ore rights Lincoln Minerals has rights for ALL other minerals including graphite Significant graphite opportunities: Koppio Graphite Mine & Kookaburra Gully Prospect near Port Lincoln Gum Flat (just 2km north of world class Uley Graphite Mine) Campoona & Sugar Loaf Hill (adjacent Archer s (AXE) recent announcements) Numerous outcrops, old mines, prospects and drill hole intercepts in the Koppio-Gum Flat & Campoona regions

7 Koppio, Kookaburra Gully & Gum Flat Koppio Graphite Mine Historic mining produced a total of 97 tons of graphite Inferred Resource 57, % C but open along strike and at depth Numerous old mines and prospects within 5km of the historic graphite mining town of Koppio Kookaburra Gully Identified and investigated by Pancontinental Mining during the 1980 s Several trenches excavated north and south of outcropping graphite unit Inferred Resource 880, % C based on trenching and depth extent of 50m but open to south and potentially at depth Petrology - average size graphite flakes >100 um Beneficiation of 500kg 16% C produced a final product of +150 um flake graphite at 90.5% C Gum Flat Gum Flat, drilling has intersected several graphite occurrences eg 12% C in GFRC022 (57-70m) 2 km north of Uley and Mikkira graphite mines Gum Flat Uley Graphite Mine Lincoln Minerals has rights to graphite and all minerals other than iron on Centrex/SAIOG ELs Microphotograph of Kookaburra Gully flake graphite

8 Koppio Historic graphite mine (early 1900 s then again from 1941 to 1944) Historical Mines Department records (1945) describe 3, % C in the old mine workings plus 13, % C down to about 30m below ground level (55m strike length) and allowing for 25% waste Product from the mine was sold as coarse (+300 µm) and medium flake Inferred Resource 57, % C Potentially over 500m long & up to 20m wide Conceptual Exploration Target ** 105,000 to 1,040,000 tonnes at an average grade 10-15% C Koppio Graphite Mine DD1: 13.9% C Koppio Graphite Mine where 97 tons of graphite was mined up to 1944 ** It is emphasized that exploration target tonnage estimates are entirely conceptual in nature. There has been insufficient drilling in the immediate areas of these targets and it is uncertain if further exploration will result in the estimation of a Mineral Resource.

9 Kookaburra Gully Inferred Resource 880, % C (to 50m depth) High grade flake graphite Over 500m long & up to 20m wide Conceptual Exploration Target ** 900,000 to 1,800,000 tonnes at an average grade 10-15% C Original Pancontinental assays Surface outcrop between trenches 4 and 2 Trench No. Interval (m) C % * * * Lincoln Minerals assays (2012) Trench No. Interval (m) C % including

10 Kookaburra Gully Trench 4 (looking west) 16.3% C including 20.5% C

11 Key Points Immediately adjacent to Archer Exploration (AXE) & Monax Mining (MOX) graphite discoveries Campoona, Jameison Tank & Sugarloaf Hill EM anomalies extend onto EL 3609 Further potential in Campoona Syncline between Campoona and Sugarloaf Hill EM survey May 2012 Campoona Graphite (Cockabidnie Project)

12 Graphite In summary exciting new opportunities for high-value, highgrade, coarse-grain flake graphite on southern and central Eyre Peninsula Lincoln Minerals has a dominant ground position with numerous graphite occurrences, DH intercepts and historic mines Inferred Resources and significant Exploration Targets at Koppio and Kookaburra Gully EM surveys at Koppio, Kookaburra Gully & Campoona May 2012 Close to existing infrastructure and shipping port

13 Minbrie Copper-Lead-Zinc-Silver Key Points NEW copper-lead-zinc-silver discovery - January m interval ( m) averaging: 0.76% copper (up to 4.8% Cu from m) 7.37% lead (up to 47.1% Pb from m) 1.88% zinc (up to 5.5% Zn from m) 9.0 g/t silver (up to 36 g/t Ag from m) trace gold up to 0.1 g/t Au ( m & m) Copper equivalent grade of 3.05% CuEq over 29.5m interval (refer to Disclaimer for calculation method) Occurs in banded iron formation-marble-calc-silicate host rocks similar to Menninnie Dam lead-zinc deposit On western margin of Olympic Dam-Moonta Corridor Early stage of exploration Galena (silvery-grey), chalcopyrite (yellowish) and sphalerite (reddish-brown) in drillcore from Bungalow- Minbrie BUDD192, 141m (bar scale in centimetres)

14 Iron Ore Gum Flat Barns Stage 1 hematitegoethite Indicated Resource 1.8 Mt at 46.2% Fe including 0.9 Mt DSO at 54.2% Fe or 58% CaFe (calcined Fe) Stage 2 magnetite Inferred Resource 99 Mt at 24.4% Fe (20.6% DTR magnetite conc.) Total exploration target 1.1 to 2.8 billion tonnes at 14-35% Fe It is emphasized that Exploration Target tonnage estimates are entirely conceptual in nature and it is uncertain if further exploration will result in the estimation of a Mineral Resource.

15 Gum Flat Iron Ore Two Stage Development Option Mineral Claims pegged and Mining Lease Proposal prepared for Stage 1 but awaiting groundwater licensing Stage 1: Mine, crush & export up to 500,000 tpa DSO grade lump and upgraded fines (~55% Fe) from Port Lincoln Road transport in covered containers to Port Lincoln Container Tippler System Upgrade Duck Pond Drive & intersection with Western Approach Road Store containers at Port Lincoln in wharf precinct Load ships using ship s gear & Rotainer system ships per year (45,000 tonnes) Stage 1 mine life 3-5 years

16 Summary Graphite exciting opportunities on south-central Eyre Peninsula Lincoln Minerals has a dominant ground position with existing Inferred Resources of high grade, high value flake graphite and significant graphite Exploration Targets Minbrie base metals discovery (3.05% copper equivalent) is an exciting new opportunity Total iron ore Exploration Targets 1.1 to 2.8 billion tonnes Lincoln Minerals still focussing on development of DSO mine at Gum Flat in Lincoln Minerals Limited in the right place at the right time Significant investment, employment and commercial opportunities for Port Lincoln and Eyre Peninsula It is emphasized that Exploration Target tonnage estimates are entirely conceptual in nature and it is uncertain if further exploration will result in the estimation of a Mineral Resource. May 2012