VANADIUM CONCEPT STUDY High Purity Vanadium Pentoxide and Titanium Dioxide for Vanadium Electrolyte Battery Market

Transcription

1 VANADIUM CONCEPT STUDY High Purity Vanadium Pentoxide and Titanium Dioxide for Vanadium Electrolyte Battery Market NEW HORIZONS Gold Copper and Silver Exploration in the Kimberley WA and Tennant Creek NT ASX: KRC September 2017

2 CORPORATE OVERVIEW ASX code KRC Share price (4 Sep 2017) $0.01 Issued shares Listed Options Unlisted Options Market capitalisation million million 5.55 million ~ $9.0 million Cash (30 June 2017) $716,000 Board of Directors Top Shareholders Interest Anthony Barton Chairman Greg MacMillan Non-Executive Director Leonid Charucky Non-Executive Director Anthony Barton & Associates 14.17% Sesna Pty Ltd 5.20% Lawrence Crowe Consulting Pty Ltd 2.77% BNP Paribas Nominees Pty Ltd 2.57% ASX:KRC - EXPLORING NEW HORIZONS 2

3 VANADIUM CONCEPT STUDY A Vanadium Concept Study is underway to investigate the potential of producing a high purity vanadium pentoxide (V 2 O 5 ) and titanium dioxide (TiO 2 ) from the Central vanadium deposit at Speewah (refer KRC ASX announcement 21 April 2017). The major objective being to identify the parameters to be applied towards a new Scoping Study The following activities have been completed: Vanadium resource estimate updated in accordance with JORC Code (2012) by CSA Global Pty Ltd (refer KRC ASX announcement 26 May 2017). Measured, Indicated and Inferred Mineral Resource, reported at a 0.23% V 2 O 5 cut-off grade from the Central, Buckman and Red Hill deposits, comprises: 4,712 million tonnes at 0.3% V 2 O 5, 2% Ti and 14.7% Fe Measured, Indicated and Inferred Mineral Resource, reported at a 0.23% V 2 O 5 cut-off grade from the high grade zone of the Central deposit, comprises: 520 million tonnes at 0.36% V 2 O 5, 2% Ti and 14.8% Fe. This is the largest titanomagnetite vanadium resource in Australia. Metallurgical testwork by Nagrom (refer KRC ASC announcement 21 August 2017): A vanadiferous titano-magnetite concentrate was produced from the high grade zone of the Central deposit. A concentrate assaying 2.15% V 2 O 5, 12.72% TiO 2 and 71.42% Fe 2 O 3 was produced using the low magnetic intensity separation (LIMS) technique. The V 2 O 5 grade of the magnetite concentrate is higher than other Australian vanadium deposits. Initial hydrometallurgical acid leaching tests on the magnetite concentrate obtained recoveries of up to 99% Vanadium and 85% Titanium. Next Steps will be trialing selective precipitation, solvent extraction and thermal hydrolysis methods to precipitate vanadium pentoxide and titanium dioxide out of the pregnant acid solution. ASX:KRC - EXPLORING NEW HORIZONS 3

4 LOCATION OF VANADIUM RESOURCES ASX:KRC - EXPLORING NEW HORIZONS 4

5 HIGH GRADE CONCENTRATE Vanadium occurs in magnetite disseminated in gabbro along with ilmenite which contains most of the titanium. Magnetite and ilmenite are separated from the host gabbro by crushing and grinding to P80 45 microns (0.045mm) by the low intensity magnetic separation (LIMS) technique. Concentrate variability tests in the 3 deposits ranged from 2.15 to 2.64% V2O5 (mass yields up to 14.18% and up to 77.73% V recoveries). (KRC ASX announcements 1 April 2010 and 15 July 2010) In 2011 a 6 tonne RC sample batch produced a magnetite concentrate for hydrometallurgical testwork assayed 2.37% V2O5 and 14.94% TiO2 (12.76% mass yield for 73.9% V recovery). In 2013 coarse crushing of core to 1mm followed by MIMS magnetic separation then grinding to P80 75 microns and Davis Tube Wash produced a concentrate assaying 2.07% V2O5 and 16.12% TiO2 (13.14% mass yield for 71.15% V recovery) (KRC ASX 21 April 2017). This method requires further investigation as it may reduce costs to produce a magnetite-ilmenite concentrate. ASX:KRC - EXPLORING NEW HORIZONS 5

6 HYDROMETALLURGICAL TESTWORK Hydrometallurgical testwork commenced in 2017 aiming to produce high purity vanadium pentoxide (V2O5) and titanium dioxide (TiO2) products. o Initial HCl acid leaching of a magnetite concentrate reported: V recovery of up to 99.1% Ti recovery of up to 85%. Optimization tests are required to increase metal recoveries, shorten leach times and reduce acid consumption. (refer KRC ASX announcement 21 August 2017) Next steps to initially trial selective precipitation, solvent extraction and thermal hydrolysis methods to precipitate vanadium pentoxide and titanium dioxide. Initial results expected late September ASX:KRC - EXPLORING NEW HORIZONS 6

7 PROJECT LOCATIONS IN WA Speewah Dome Flagship project area All granted tenements, including Mining Leases 694 km 2 in area 110 km SW of Kununurra Significant regional dome structure with major regional faults (King River and Pentecost) Mt Remarkable Recent acquisition, granted tenement 80 km south of Speewah Similar domal structure and regional fault structures (Greenvale) ASX:KRC - EXPLORING NEW HORIZONS 7

8 EXPLORATION STRATEGY KRC plan of action is to test appropriate geological models, and apply cost effective geochemical and geophysical field methods, and new laboratory research techniques, to direct our drilling programmes. Minimising costs to maximise field activity Quad helicopter drone takes very high resolution photographs for mapping and terrain Tornado XRF element mapping and isotope studies of diamond core High resolution ground magnetometer surveys Hand-held XRF analyser RC drill rig RC drill chips showing quartz vein interval Petrographic, mineralogy and SEM studies ASX:KRC - EXPLORING NEW HORIZONS 8

9 MT REMARKABLE Significant historical drill intersections in the Trudi Vein: 15.36g/t Gold (Au) and 35g/t Silver (Ag), including 35.55g/t Au and 41.8g/t Ag 15.1g/t Au including 57.2g/t Au (KRC ASX announcement 5 April 2016) Initial field surveys completed over main drilled areas: Ground magnetometer Rock chip sampling Maximum 30.8g/t Au rock sample located about 700m NW of previous high grade intersections Further ground magnetic and rock chip sampling programmes planned Reverse circulation drill programme planned in coming month (KRC ASX announcement 30 August 2017) ASX:KRC - EXPLORING NEW HORIZONS 9

10 GEOLOGICAL MODELS Iron Oxide Copper Gold (IOCG) Model Tennant Creek Targeting high grade gold-silver-copper quartz ± adularia epithermal veins Source: Large 1991 IOCG alteration at Bartons ASX:KRC - EXPLORING NEW HORIZONS 10

11 PRIORITY DRILL TARGETS AT SPEEWAH Priority drill targets Gold-Arsenic Quartz Chlorite Veins in Shears New discovery of gold-bearing arsenic quartz chlorite veins in both multiple E-W flat dipping thrusts and N-S vertical shears associated with gold-base metal epithermal quartz veins, dolerite dykes and chloritic shears Chapman Thrust targets at intersections with NS structures, bends, changes in lithology: Chapman high grade gold-silver-antimony-copper-arsenic in outcrop Y Junction g/t Au with arsenic drill intersection Chapman West - 9g/t Au drill intersection Bartons West - 8.3g/t Au surface sample with arsenic Hidden Valley g/t Au surface sample with arsenic Catto and Greys Thrusts - high grade silver-gold-copper in shallow dipping EW quartz veins near N-S structures Bartons Trend possible IOCG association 8km Main Zone along northern Pentecost Fault Zone, including 0.35g/t Au in quartz veined silica-hematite-muscovite alteration Planned deep diamond core hole across Bartons Shear Zone into coincident magnetic-gravity high and Chapman Thrust at depth Other drill targets Windsor - King River Fault Zone - copper including 0.12% Cu Splays-Horseshoe-Central North trend N-S Central Fault Zone (copper silver gold) and E-W gold-arsenic-chlorite vein association Copper Cliff - EW and NS gold-copper trends (including 21g/t Au in surface sample) JoeFisher - copper breccia (copper, silver), VTEM conductors, soil anomalies in Antrim Plateau Volcanics ASX:KRC - EXPLORING NEW HORIZONS 11

12 CHAPMAN-BARTONS TARGETS New discovery of gold-bearing arsenicchlorite quartz veins (yellow lines) in both flat dipping and sub-vertical structures More of the flat dipping veins are found throughout the Speewah Dome (Vaux, Bartons West, Hidden Valley, Gap, Catto, Haydens, Greys, Calamondah, Splays) More of the N-S trending structures with quartz-adularia also have arsenic-chlorite quartz veins Numerous new targets to drill, especially on intersections, bends, rock changes High grade gold rock chips at Chapman and 9g/t Au intersection at Chapman West are part of this system Arsenic quartz chlorite vein Landsat TM image in the Chapman-Bartons area of the northern Speewah Dome ASX:KRC - EXPLORING NEW HORIZONS 12

13 TENNANT CREEK COPPER GOLD 12 Exploration Licences applications Treasure Creek Pty Ltd - wholly owned subsidiary of KRC 6,634 km2 Tennant Creek copper-gold belt NT Prospective for Tennant Creek/Rover Style Iron Oxide Copper Gold deposits (IOCG) Refer KRC ASX announcement 8 August ASX:KRC - EXPLORING NEW HORIZONS 13

14 INDICATIVE PROJECT TIMINGS Q Q Q Initial vanadium metallurgical test work completed and reported on 21 August Mt Remarkable ground magnetic and rock sampling surveys completed and reported on 30 August Follow up vanadium metallurgy underway and to be reported. Mt Remarkable RC drilling pending Programme of Works approval, track up-grade and fund raising. Speewah Phase 2 RC/DC drill hole pending fund raising. Follow up vanadium metallurgy planned. Vanadium Scoping Study underway ASX:KRC - EXPLORING NEW HORIZONS 14

15 MINERAL RESOURCE ESTIMATES FLUORITE Massive fluorite core Note: Fluorite Resources estimated under JORC 2004 Table 1: Fluorite Mineral Resource estimate (10% CaF 2 cut-off grade) Zone JORC Classification Tonnage (Mt) V (%) V2O5 (%) Fe (%) Ti (%) Measured High Grade Indicated Inferred 1, Total High Grade 1, Measured Low Grade Indicated Inferred 2, Total Low Grade 2, Measured Combined Zones Indicated 1, Inferred 3, Grand Total 4, VANADIUM-TITANIUM Note: Vanadium Resources estimated under JORC 2012 Table 2: Speewah Project Global Mineral Resource estimate (0.23% V 2 O 5 cut-off grade) Table 3: Central Mineral Resource estimate 0.23% V 2 O 5 cut-off grade Zone JORC Classification Tonnage (Mt) V (%) V2O5 (%) Fe (%) Ti (%) High Grade Low Grade Combined Zones Measured Indicated Inferred Total High Grade Measured Indicated Inferred Total Low Grade Measured Indicated Inferred Grand Total 1, ASX:KRC - EXPLORING NEW HORIZONS 15

16 IMPORTANT NOTICES Note 1: Note 2: Note 3: Competent Persons Statement The information in this report that relates to Exploration, Mineral Resources and Metallurgical Results is based on information compiled by Ken Rogers and Andrew Chapman and fairly represents this information. Mr. Rogers is the Chief Geologist and an employee of King River Copper Ltd and a Member of the Australian Institute of Geoscientists (AIG) and a Member of The Institute of Materials Minerals and Mining (IMMM). Mr. Chapman is a Consulting Geologist contracted with the Company. Mr. Rogers has sufficient experience of relevance to the styles of mineralisation and the types of deposits under consideration, and to the activities undertaken, to qualify as a Competent Person as defined in the 2012 Edition of the Joint Ore Reserves Committee (JORC) Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr. Rogers and Mr. Chapman consent to the inclusion in this report of the matters based on information in the form and context in which it appears. Resource Statements The information in this Report that relates to Mineral Resources is based on previous KRC ASX announcements: The Fluorite Resources reported in Table1 in the previous slide has been sourced from a Resource Estimate Report which was last reported in KRC ASX announcement dated 25 August This information was prepared and first disclosed under the JORC Code It has not been updated since to comply with the JORC Code 2012 on the basis that the information has not materially changed since it was last reported. KRC confirms it is not aware of any new information or data that materially affects the resource information referenced in this announcement. The Vanadium Resources reported in Tables 2 and 3 in the previous slide has been sourced from a Resource Estimate Report which was reported in KRC ASX announcement dated 26 May These Vanadium Resources were estimated in terms of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code 2012 Edition). This presentation contains forward looking statements concerning the projects owned by KRC. Statements concerning mineral resources may also be deemed to be forward looking statements in that they involve elements based on specific assumptions. Forward looking statements are not statements of historical fact, and actual events or results may differ materially from those described in the forward looking statements as a result of a variety of risks, uncertainties and other factors. Forward looking statements are based on KRC s beliefs, opinions and estimates as of the date they are made and no obligation is assumed to update forward looking statements if these beliefs, opinions and estimates should change or reflect other future developments. ASX:KRC - EXPLORING NEW HORIZONS 16

17 THANK YOU ASX:KRC - EXPLORING NEW HORIZONS 17