Icon Resources. Annual General Meeting 16 th September 2010

Transcription

1 Icon Resources Annual General Meeting 16 th September 2010

2 Icon Resources Mineralised vein, Iron Duke Zone, diamond drillhole: CB52. Scheelite seen as blue/white under ultraviolet light (left) with associated wolframite as black crystals in natural light (right). Disclaimer The information in this presentation is published to provide information about Icon Resources Ltd (Icon) and its subsidiaries. All reasonable effort has been made to provide accurate information, but we do not warrant or represent its accuracy and reserve the right to make changes to it at any time without notice. To the extent permitted by law, Icon accepts no responsibility or liability for any losses or damages of any kind arising out of the use of any information contained in this presentation Competent Person s Statement Information in this presentation that relates to Exploration Results is based on information compiled by Dr John Bishop, who is a member of the Australian Institute of Geoscientists. John is a full-time employee of Icon and has sufficient experience relevant to the styles of mineralisation and types of deposits under consideration and to the activity he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Dr Bishop consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

3 Emerging Tungsten Producer ASX-listed - code III Near-term tungsten producer and diversified mineral explorer Key focus: re-opening of the Mt Carbine tungsten mine Experienced, technical board and management Dr Leon Pretorius, Chairman Dr John Bishop, Managing Director Dr Andy White, Non-exec. Director Steve Bartrop, Non-exec. Director Ian Sheffield-Parker, Project Manager Darcy Milburn, Exploration Manager Drilled Key Focus IPO Drilled

4 The Teeth of Industry A metal with several unusual properties (chemical symbol W) High melting point (3,400 o C) Very heavy ( gold) Hardness (as tungsten carbide) second only to diamonds No known substitute for many uses Applications include: Hard metal cutting/drilling tools High-speed steels, alloys Light globe filaments Mobile phones, smart windows, new technologies, aviation & military

5 Tungsten: A Strategic Metal The European Commission has declared tungsten a critical raw material China has ~65% of known global reserves but is a net importer and has declared tungsten a strategic metal Export of concentrates not allowed Quotas and taxes on export of refined tungsten products (APT, ferrotungsten, etc) Current Chinese reserves forecast to last only 20 years Chinese demand expected to grow by 8% in 2010

6 Tungsten Supply & Demand Essential to modern manufacturing, demand is predicted to increase as developing nations increase their manufacturing capabilities Roskill predicts >12% supply shortage in 2015 No current Australian producers Tungsten remains under the radar of most Australian analysts Supply & Dema and (tonnes) Supply less Dem mand (tonnes)

7 Tungsten Pricing tu US$/mt 5 yr APT Price Chart $ *100 metric tonne units (mtu) = 1 tonne Tungsten currently traded by contracts Tungsten pricing referenced by ammonium paratungstate (APT) Raw concentrates 70-75% APT price Current prices already at pre-gfc levels (on the way up) London Metal Exchange has indicated it may soon trade tungsten

8 Tungsten Outlook Western world future supply desperately thin & limited number of projects (PDAC, March 2009) Tungsten - the next sexy metal? (Strictly Boardroom, August 2009) Increasing deficit in tungsten from 2013 (Roskill, September 2009) In 2012, it will be tin, tungsten & molybdenum (CRU, October 2009) Tungsten a critical raw material (European Commission, June 2010) China s demand to increase 8% in 2010 (Investing in Tungsten, July 2010) Supply Risk Economic Importance CRITICAL W Source: European Commission, June 2010.

9 Mt Carbine History Tungsten discovered in 1883 Leading global supplier of tungsten in early 20 th century Responsible for 40% of annual Australian tungsten production in mid 1970s-80s Closed 1986 as China flooded the market and price collapsed Open cut mine with underground operation partially developed (440m decline) at mine closure

10 Mt Carbine Today Granted Mining Leases Sealed roads and mains power pass through mine leases Several options for water Existing tailings storage facilities with several years capacity Three projects are being developed in parallel Tailings: Jan 11 start up Mineralised Stockpiles: Jan 12 start up Hard-rock: Jan 13 start up

11 Tailings Operation Tailings resource of 0.1% WO 3 Recent metallurgical advances have opened up a market for a lower grade mixed concentrate (lower cost + higher recovery for minimum price discount) Proposed simple gravity processing (spirals/tables) currently being confirmed Two-year operation, producing ~50t/month Capex <$3M Projected Jan 2011 start up Projected EBITDA: $2-4M Above: Tailings Dam #4 WO3, Below: pseudocoloured image of grade & thickness

12 Stockpile Operations Mineralised Waste ~12Mt + Reject Stockpiles ~6Mt Bulk X-ray ore-sorter tests starting Sep 10 Bulk metallurgical testing of accepts starting Oct 10 Given positive results, a 6-8 yr operation, producing up to ~100t of concentrate per month is planned Projected Jan 2012 start up Projected EBITDA: $8-10M Reject stockpile accepts from laboratory X-ray ore-sorter tests, Aug 10 Waste stockpile bulk sample preparation for on-site X-ray ore-sorter testing, Sep 10

13 Hard-Rock Operation Positive Scoping Study late 09 on limited legacy mineralisation Revised, JORC-compliant resource modelling based on recent 5000m core drilling program near completion Revised mining and financial models due Oct-Nov 10 Expected long-life extended open cut / underground operation producing +200t of concentrate per month Projected Jan 2013 start up Projected EBITDA ~$30M

14 Increasing the Resource Cross-section showing: Historic lodes (yellow), Scoping study geological model (red) plus areas with potential for more ore. (Looking north-west.)

15 Further Potential Extensive, unexplored old workings north-west of the open cut, along Carbine Hill Recently acquired EPMs surrounding and adjacent to Mt Carbine EPMs contain known tungsten workings with no modern exploration Anomalous tungsten in soils identified in recent reconnaissance field surveys

16 Mt Carbine Mineralisation: Aug 10 Extensive Workings on Carbine Hill, not drilled Waste Dumps = ~0.07% WO 3 (est.) An unclassified mineral resource of 0.07% WO 3 around the open cut. (Geostat, 2009). Reject Dumps Incorporating:- = WO 3 #4 Tailings = 0.11% WO 3 (Inferred JORC Resource) plus a smaller tonnage (~0.4Mt) at a higher grade in #3 Tailings 0.1% WO 3 recovered grade in open cut, plus 0.2% WO 3 beneath open cut (Inferred JORC Resource) Old workings within EPM to SE of Carbine Hill, not explored

17 Projected Resources: Dec 10 Extensive Workings on Carbine Hill, not drilled ~12Mt Waste 0.AA % WO 3 JORC-compliant Inferred Resource ~6Mt Reject 0.BB % WO 3 JORC-compliant Inferred Resource Hard-rock, JORC-compliant Inferred Resource of XX 0.YY % WO 3 defined around the open cut (Geostat, 2010) #4 Tailings = 0.11% WO 3 (Inferred JORC Resource) plus a smaller tonnage (~0.4Mt) at a higher grade in #3 Tailings Old workings within EPM to SE of Carbine Hill, partially explored

18 Summary Projected Operations: Tailings 1 : Production EBITDA Capex Mine Life Jan 11 start-up ~50t/mth $2-4M $2M 2 yr Mineralised Stockpiles 2 : Jan 12 start-up ~100t/mth $8-10M $50M 6-8 yr Hard-rock 3 : Jan 13 start-up ~200t/mth ~$30M $5M >10 yr 1. Bulk sample processing results due end Sep On site ore-sorter tests Sep-Oct JORC compliant Indicated Resource due Sep 10; Mining and Financial models due Oct-Nov 10

19 Corporate Details Shares Mt Carbine open cut, 1986 ~104M shares on issue 23M unlisted options Current share price ~7.5 Market cap ~$7.77M