Cape Alumina Limited

Transcription

1 Cape Alumina Limited

2 Statements and material contained in this Presentation, particularly those regarding possible or assumed future performance, production levels or rates, commodity prices, resources or potential growth of Cape Alumina Limited, industry growth or other trend projections are, or may be, forward looking statements. Such statements relate to future events and expectations and, as such, involve known and unknown risks and uncertainties. Cape Alumina is at an early exploration stage and although reasonable care has been taken to ensure that the facts stated in this Presentation are accurate and or that the opinions expressed are fair and reasonable, no reliance can be placed for any purpose whatsoever on the information contained in this document or on its completeness. Actual results and developments may differ materially from those expressed or implied by these forward looking statements depending on a variety of factors. Nothing in this Presentation should be construed as either an offer to sell or a solicitation of an offer to buy or sell shares in any jurisdiction. Technical information on any Cape Alumina project in this Presentation had been compiled by Dr Paul Messenger, who is an Adviser to Cape Alumina Limited, a fellow of the Australian Institute of Mining and Metallurgy (F. AusIMM) and is a competent person and has relevant experience to the mineralisation being reported on to qualify as a Competent Person as defined by the Australasian Code for Reporting of Minerals Resources and Reserves. Dr Paul Messenger consents to the inclusion in the presentation of the matters based on the information in the form and context in which it appears. The resource information in this Presentation has been released to the Australian Securities Exchange. Page 2

3 Brisbane-based, Cape Alumina controls approximately 1,900 square kilometres of exploration tenements in the world-class western Cape York bauxite province. This is the second largest tenement holding in the region outside the Rio Tinto Alcan mining leases. On 10 February 2012, the Company announced that the Inferred resources at Bauxite Hills has doubled to 60 Million tonnes (Mt) of in-situ, export-grade bauxite. This is expected to yield 42 Mt of beneficiated, dry-product bauxite at average grades of 51.6 per cent alumina (Al 2 O 3 ) and 9.5 per cent silica (SiO 2 ). Pre-Feasibility Study (PFS) on the integrated Bauxite Hills mine and port project has commenced and will be completed by July Cape Alumina s business model is based on the establishment of an independent bauxite supply business to feed the growing market for traded bauxite into China. Our vision - to become one of the largest bauxite producers and traders in the world supplying the rapidly growing Asia-Pacific region with high-quality, export-grade bauxite in accordance with market demands. Cape Alumina is listed on the Australian Securities Exchange (ASX Code: CBX) with 130 million shares on issue to just over 2,100 shareholders. Page 3

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6 ASX Code CBX Share Price Performance and Volume Market Cap $16.3m Shares on Issue 141.5m Volume ('000's) 200, , , , ,000 Performance Rights 3.6m Total Shareholders c ,000 80,000 60,000 40,000 20,000 Cash (31 December 2011) $6.0m 0 Apr 2011 May 2011 Jun 2011 Jul 2011 Aug 2011 Sep 2011 Oct 2011 Nov 2011 Dec 2011 Jan 2012 Feb Top 20 Holdings 88.1% Page 6

7 Other 20% Metallica 19% JP Morgan 7% China Xinfa 15% RCF IV 12% RCF III 12% Bondline 15% Name Holding Description Resource Capital Funds 25.1% RCF is a mining focused private equity firm with offices in Denver, Toronto and Perth. Their holding in Cape Alumina is their sole metallurgical bauxite investment. Metallica Minerals 20.1% A progressive multi-mineral developer based in eastern Australia. The company has interests in bauxite, coal, cobalt, copper, gold, limestone and nickel projects. Xinfa 18.6% China s largest independent alumina-aluminum company with refining and smelting operations in Shandong, Guangxi and Xinjiang Provinces. Has current installed capacity of circa 7 million tonnes per annum (Mtpa) of alumina and over 1.8 Mtpa of primary aluminum Page 7

8 Chairman, Mr George Lloyd Has more than 30 years experience working in the resources industry in senior executive and board roles. He is currently the Chairman of AWR Lloyd Limited. He is also the Chairman of Pryme Oil and Gas Limited and a Non-Executive Director of Ausenco, a global resources industry engineering services group. Managing Director, Graeme Sherlock Graeme is a Mining Engineer with 20 years resource industry experience. Former senior roles with Peabody Energy Aust, Rio Tinto Coal Aust,, Mitsubishi Development after a long career with BHP Billiton. Independent Non-Executive Director, Has 30 years experience in the bauxite and alumina industries, including Managing Director of QAL, Gladstone, and Managing Director of Gove Bauxite -Alumina operations. He is the Chancellor of CQ University, Director of C_Management Services. Non-Executive Director, Mr Peter Nicholson Is a partner at Resource Capital Funds (RCF), a mining-focused private equity firm with approximately $2billion subscribed funds. He is also on the Board of Directors of private Company Talison Tantalum Pty Ltd. Non-Executive Director, Mr Liu Jijin Is currently the Managing Director of Xinfa Group Company Limited, China s largest independent Alumina-Aluminium company with current and planned capacity for production of 12 Mtpa of alumina and 2Mtpa of Aluminium. Page 8

9 Managing Director, Mr Graeme Sherlock A qualified mining engineer with more than 20 years of resource industry experience, including with Peabody Energy Australia, Rio Tinto Coal Australia and Mitsubishi Development and BHP Billiton. A Member of the Australasian Institute of Mining and Metallurgy, Graeme also has an MBA in Technology and a Postgraduate Diploma in Management. Chief Financial Officer and Company Secretary, Mr Scott Waddell Mr Waddell was appointed Cape Alumina s CFO and Company Secretary in Sept Prior to joining Cape Alumina, he served as Head of Finance for the Monash Energy project in Victoria s La Trobe Valley. His resources experience has been gained over nine years with Anglo Coal and eight years with Rio Tinto Alcan (RTA). He has a deep understanding of the global bauxite and resources sectors. General Manager External Affairs, Mr Neville Conway Mr Conway joined Cape Alumina as the General Manager, External Affairs and Stakeholder Relations in Mr Conway is an accomplished senior manager with extensive stakeholder relations and project management experience. Previous experience includes working for some of Australia s largest resource, construction and finance companies as well as an adviser to Members of the Commonwealth Parliament. Operations Manager, Mr Ron Tibaldi Mr Tibaldi joined the Company as Operations Manager in Sept He oversees all project exploration activities and manages the Company s field Health and Safety programs in Cape York. Before joining Cape Alumina Mr Tibaldi was Mine Production Superintendent at the Gove bauxite mine and alumina refinery for 32 years. He brings a wealth of experience in all facets of bauxite mining, rehabilitation and exploration in northern Australia. Cape Alumina employs local Aboriginal people in all of our field operations including exploration, cultural heritage surveys, environmental studies, and environmental monitoring. Page 9

10 Asia-Pacific bauxite-alumina trends China is the largest alumina producer and consumer but is short in bauxite, which is being consumed at an ever increasing rate. Share of global bauxite reserves China, 4% China s trend towards conventional high temperature Bayer refineries to utilize bauxite from Weipa significant growth next 5 to 10 years. Indonesia to restrict bauxite exports from 2014 as government policy and new laws encourage down-stream processing in Indonesia. Australia, 23% Guinea, 28% Western Cape York to become China s preferred source of bauxite. Other, 23% Brazil, 7% Jamaica, 7% Vietnam, 8% Cape Alumina well placed to establish a reliable alternative to the Weipa RTA operations. Page 10

11 Bauxite prices and Chinese imports are rising Price of bauxite imported into China (US$/t) Source: Antaike Volume of bauxite imported into China 0 10mt 20mt 30mt 40mt 50mt Source: Antaike Bauxite prices are increasing based on the growing Chinese market. Indonesia has dominated imported bauxite into China; however, has also introduced legislation to ban exports from China are looking for reliable, alternative, long-term supply. Page 11

12 Western Cape York bauxite province Set to become the world s largest source of export bauxite. Estimated to contain over 3 billion tonnes of bauxite. Rio Tinto Alcan (RTA) has been the only Weipa bauxite producer for over 50 years and remains the only exporter of Australian bauxite. RTA plans to increase bauxite production in Weipa over the next 6 years majority of this is expected to go to Chinese refineries. Cape Alumina is well placed to provide an alternative source of bauxite supply to the bourgeoning Chinese market. Page 12

13 Cape Alumina is uniquely placed Cape Alumina is the largest exploration tenement holder in the province with 1,900 km 2 under licence with an exploration target of Mt* in-situ bauxite. Well established with seven years on-ground experience. Strong partnerships and experience in cultural heritage and stakeholder engagement. Unsurpassed environmental database. *Note: The resource potential is conceptual in nature and there has been insufficient work completed to define a mineral resource at this stage. Estimated tonnage range is Mt and the estimated beneficiated grade range is per cent Al 2 O 3 and 8-12 per cent SiO 2 assuming average 65 per cent recovery. Page 13

14 Is located within the world-class western Cape York bauxite province, which is characterised by high-quality, export-grade bauxite. Has ready access to ship-borne trade. Is close to the Asia-Pacific market. Is well-suited for low and high temperature alumina refineries. Is export-grade. Pisolite Hills 134.6Mt in-situ bauxite resource has an average washed grade of 53.1 per cent Al 2 O 3 and 12.3 per cent SiO 2 (7.5 per cent reactive silica at 150 degrees Celsius). The inferred resources at Bauxite Hills is 60 Million tonnes (Mt) of in-situ, exportgrade bauxite. This is expected to yield 42 Mt of beneficiated, dry-product bauxite at average grades of 51.6 per cent alumina (Al 2 O 3 ) and 9.5 per cent silica (SiO 2 ). Pre-Feasibility Study (PFS) on the integrated Bauxite Hills mine and port project has commenced and will be completed by July Page 14

15 To date, Cape Alumina has identified seven priority bauxite exploration areas. The Company has conducted significant drilling on the Pisolite Hills and Bauxite Hills deposits. Cape Alumina retains its Pisolite Hills tenements which contain Mt of JORC- Code-compliant bauxite resources. In 2011, an advanced exploration and drilling program was completed at our second major project site the Bauxite Hills mine and port project, which is located approximately 95 kilometres north of Weipa and just five kilometres south of the Skardon River. Exploration programs at our other existing project areas Duyfken, Weipa Satellites, and Vrilya are planned for Page 15

16 Bauxite Hills an emerging export project Bauxite Hills mine and port project area presently includes BH1, BH2 and BH6. This includes EPM15376, EPM16899 (outlines shown in blue), and MLA (BH1), MLA (BH2), MLA (BH6 East) and MLA (BH6 West) (outlines shown in yellow). The Inferred resources at Bauxite Hills is 60 Million tonnes (Mt) of in-situ, export-grade bauxite. This is expected to yield 42 Mt of beneficiated, dry-product bauxite at average grades of 51.6 per cent alumina (Al 2 O 3 ) and 9.5 per cent silica (SiO 2 ). Skardon River is a tidal estuary less than 10 miles long with existing port and disturbed land. Pisolite Hills experience means we can expedite the permitting process. Local environment comprises predominantly open eucalyptus woodland plateaux and estuarine waterways. There are no known fresh water springs in the vicinity of the bauxite target areas. Page 16

17 The 2011 drilling program (which included 2,569 drill holes for a total of 7,000 metres) revealed the presence of near-surface, pisolitic bauxite rich units with average thicknesses of 2.4 metres at BH1 and 1.8 metres at BH2 and BH6. The BH1 deposit has an extremely low strip ratio, with an average overburden of 0.4 metres. The assay results from the BH1 area have indicated the presence of two types of bauxite an upper layer of Mixed Bohemite-Trihydrate Bauxite (MBT) and an underlying layer of Low Monohydrate Bauxite (LMB). The LMB product is expected to be suitable for refineries operating at low temperature. A schematic profile through BH1, illustrating the distribution of the two bauxite types, is presented below. Page 17

18 Table 1: Inferred Resource estimate for Bauxite Hills project (BH1, BH2 and BH6 Areas) Area In-situ dry tonnes (Mt) Beneficiated dry tonnes (Mt) Average overburden Average thickness Total Al 2 O 3 (wt %) Total SiO 2 (wt %) Fe 2 O 3 (wt %) LOI (wt %) BH1 (LMB)* NA*** BH1 (MBT)** BH2 (MBT) BH6 (MBT) Total Note: Economic bauxite mineralization has been defined as material with total alumina greater than or equal to 45 per cent, total silica less than or equal to 15 per cent, and a minimum thickness of 0.5 metres. The inferred resource statement is based on a weighted polygonal model using nominal 320 x 320 metre spaced RAB drill holes with polygon average values weighted for drillhole interval thickness, drillhole area of influence and sample wet screen recovery. * LMB Low Monohydrate Bauxite is defined by calculated bohemite alumina (BA) <3 per cent, where BA = TCA-THA-( *RxSiO2), where TCA = Total Chemical Alumina, THA = Trihydrate available Alumina (gibbsite alumina + kaolinite alumina low temperature desilication product [DSP] alumina at 150 C), RxSiO2 = reactive silica at 150ºC. LMB is expected to be a suitable feedstock for low temperature Bayer refineries. ** MBT Mixed Bohemite-Trihydrate Bauxite is defined as calculated BA>3 per cent. MBT is expected to be a suitable feedstock for high temperature Bayer refineries. *** LMB generally lies beneath MBT so generally no overburden. Page 18

19 Cape Alumina has commenced a Pre-Feasibility Study on the integrated Bauxite Hills mine and port project has commenced and will be completed by July The Pre-Feasibility Study for the Bauxite Hills project will cover: Environmental studies; Mine planning and scheduling; Capital and operational costs; Beneficiation process options; Transhipment options. Page 19

20 Preliminaries This timeline is for illustration purposes.. Access Agts 1 Reconnaissance 1 Definition Drilling ## ## Analysis ## Resources ## ## Metallurgy Scoping Study / Pre-feasibility Study ## IAS/Draft Terms of Reference ## ILUA 1 Feasibility Final Terms of Reference 1 EIS base line studies 1 EIS write-up/submission 1 EIS public consultation 1 Draft Environmental Authority (EA) 1 Final EA/Mining Lease grant 1 Marine & Port Studies 1 1 Geotechnical Studies 1 Definitive Feasibility Study Commitment Capital Raising Construction 1 Production 1 Page 20

21 Continuous mining and continuous rehabilitation Page 21

22 Mining and continuous rehabilitation Cape Alumina is evaluating mining options that includes innovative, integrated mining and progressive rehabilitation process based on proven technology that reduces capital and operating costs and minimises any long-term environmental impacts. We are also investigating the use of conventional mining processes presently in use at Weipa. Our Pre-feasibility Study will investigate: in-pit beneficiation and fines disposal use of conveyors progressive and continuous environmental rehabilitation use of self-discharge barges for offshore trans-shipment All of which eliminates the need for large tailings dams, reduces capital and operating costs, minimizes emissions and reduces the mine s overall environmental footprint. Page 2 Page 22

23 Transhipment the obvious solution Transhipment is an obvious and innovative solution for the Bauxite Hills project as it is in an area of Western Cape York where there is shallow water, sheltered seas and no infrastructure. A small port and barge loading facility will be located in the Skardon River. Shallow draught barges will then tranship the product 15 to 20 nautical miles offshore to a mooring in the Gulf. The product is then loaded and exported to market. Low environmental foot print, with minimal onshore buildings, stockpiles and reduced dust emissions is a key benefit of the proposed transhipping system. Cape alumina will develop its transhipping operations from the ground up, with no existing infrastructure available. Page 23

24 Investment highlights Our product is export-grade quality, close to port and close to market. Global demand for bauxite will remain strong over the long-term. Cape Alumina has high-quality shareholders, an experienced board and an established, experienced management team. Cape Alumina has developed a world-leading innovative, low-cost mining and continuous rehabilitation process. Page 24

25 Cape Alumina Limited