Minotaur Exploration Ltd POOCHERA KAOLIN PROJECT: A BRIGHT FUTURE
Disclaimer & CP Statement This presentation has been prepared by the staff of Minotaur Exploration Limited (ASX: MEP) for the general benefit of analysts, brokers, investors and the general public and does not constitute specific advice to any particular party or persons. Information herein is based on publicly available information, internally developed data and other sources. Where an opinion, projection or forward looking statement is expressed in this presentation, it is based on the assumptions and limitations mentioned herein and is an expression of present opinion only. No warranties or representations are made or implied as to origin, validity, accuracy, completeness, currency or reliability of the information. MEP specifically disclaims and excludes all liability (to the extent permitted by law) for losses, claims, damages, demands, costs and expenses of whatever nature arising in any way out of or in connection with the information, its accuracy, completeness or by reason of reliance by any person on any of it. Where MEP expresses or implies an expectation ti or belief as to the success of future exploration and the economic viability of future project evaluations, such expectation or belief is expressed in good faith and is believed to have a reasonable basis. However, such projected outcomes are subject to risks, uncertainties and other factors which could cause actual results to differ materially from projected future results. Such risks include, but are not limited to, exploration success, product price volatility, changes to current mineral resource estimates or targets, changes to assumptions for capital and operating costs as well as political and operational risks and government regulatory outcomes. MEP disclaims any obligation to advise any person if it becomes aware of any inaccuracy in or omission from any forecast or to update such forecast. Information the following presentation that relates to Exploration Data and Mineral Resource Estimates for the Poochera Kaolin Deposits is based on information evaluated by Mr Lewis Barnes who is a Member of Australian Institute of Geoscientists and who has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as Competent Persons as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code ). Mr Barnes is a contract employee of Minotaur Exploration Ltd and he consents to the inclusion in the presentation of matters based on his information in the form and context in which they appear.
Poochera Project Location
Kaolin or White China Clay KAOLIN: What is it and what is it used for? Mineral: Kaolinite Al 2 Si 2 O 5 (OH) 4 USES CERAMICS: Traditional (>4000 years) and ongoing use: >5 million tpa PAPER FILLING & COATING: >11 million tpa PAINT FILLER & EXTENDER: >1 million tpa and growing g RUBBER FILLER: >1 million tpa FIBREGLASS: >1 million tpa PLASTICS & POLYMERS: >0.5 million tpa OTHER: Adhesives, sealants, inks, pharmaceuticals, cosmetics, horticulture
KAOLIN IN CERAMICS Whiteware Sanitaryware Tiles Porcelain Bone China Vitreous China Glazes and Engobes Kaolin prices vary from ~$100 per tonne to in excess of $1,000 per tonne.
KAOLIN USES IN PAPER & PAPERBOARD Filling and Coating Applications Kaolin is used to fill and coat paper & paperboard: to produce an even, flat surface to provide a bright, white surface to provide a good surface for ink absorption High quality paper requires high quality (and priced) kaolin.
KAOLIN IN PAINTS Kaolin is used as an opacifier, a pigment and an extender in the manufacture of paint. This is a growing industry, especially in China. Kaolin is used as: A substitute for the more expensive Titanium Dioxide (TiO 2 ) It provides opacity, brightness & whiteness It helps to prevent settling in stored paints
KAOLIN TYPES HYDROUS KAOLIN Produced by the wet processing of kaolinised granite, involving: Mixing with water and dispersant (blunging) Wet screening Classifying (using cyclones and/or centrifuges) Pressing to produce filter cake Drying, crushing and grinding. CALCINED KAOLIN Produced by heating hydrous kaolin to ~1000 o C. This process removes water (~14%) from the crystal lattice of the kaolin, This process removes water ( 14%) from the crystal lattice of the kaolin, resulting in an amorphous material with even greater brightness and whiteness than the hydrous kaolin.
Poochera Kaolin Deposits
Poochera Kaolin Deposits: Exploration Target* Parameters. ASX Announcement: 3 May 2012 Kaolin Deposit Exploration Target -45µ kaolin Range Condooringie Well ISO Brightness Estimate 40 to 48 million tonnes 40% - 60% R 457 80 Carey s Well 50 to 60 million tonnes 40% - 60% R 457 80 Tootla 47 to 57 million tonnes 40% - 60% R 457 80 Karcultaby South Tomney Total 23 to 27 million tonnes 40% - 60% R 457 80 410 to 620 million tonnes 570 to 810 million tonnes 40% - 60% R 457 80 40% - 60% R 457 80 * The term Exploration Target should not be misconstrued as an estimate of Mineral Resources and Reserves as defined in the JORC Code (2004) and the The term Exploration Target should not be misconstrued as an estimate of Mineral Resources and Reserves as defined in the JORC Code (2004), and the term has not been used in that context. The term is conceptual in nature and it is uncertain if further exploration will result in the determination of a Mineral Resource. Refer Clause 18 of the JORC Code (2004).
ASX Announcement: 8 February 2012 Carey s Well Measured Resource Brightness category ISO BRIGHTNESS R 457 JORC Category TONNES Kaolinised Granite 1 (million) AVERAGE -45µm kaolin content (%) TONNES -45µm AVE 2 AVE 2 kaolin Fe % Ti % (million) Ultra High Brightness >84 Measured 6.9 59 4.1 0.28 0.21 High Brightness >80 <84 Measured 4.9 54 2.6 0.33 0.23 Moderate Brightness >75 <80 Measured 4.5 29 1.3 0.42 0.19 TOTAL Bright White Bright >75 Measured 16.3 49 8.0 0.32 0.21 1 Tonnage calculated based on Specific Gravity of dry kaolinised granite of 1.7 (as determined from 7 samples of Carey s g p y y g ( p y Well kaolinised granite) 2 Average Fe% and Ti% in -45µm kaolin determined from Australian Laboratory Services ICP-MS data.
Carey s Well Measured Resource
View east across the Carey s Well Deposit Carey s Well Approximate outline of northern part of the Measured Resource
Carey s Well, looking south Kaolinised granite spoil
Start of 1 st Calweld bulk sample hole, July 2008
Drilling through overburden
Bagging kaolinised granite
B lk b 1 h l i t l 1 t Bulka bag: 1m hole interval, 1 tonne kaolinised granite
Resource Definition air core drilling at Carey s Well, February 2011
POOCHERA KAOLIN - CAREYS WELL 2011 DRILLING PROGRAM - SUMMARY LOG DRILLHO EASTING NORTHING DATE LE (GDA94) (GDA94) DRILLED CW11AC 029 475000 6367800 1/03/2011 FROM (m) TO (m) LITHOLOGY COLOUR ORE GRADE COMMENTS 0 1 Sol,Slt,FGv B 1 3 Slt,FGv LB 3 5 Cct,Slt C/LB 5 6 Slt,FgGv LB 6 7 FGv,C DB 7 8 Gv,SLKG LYB 8 9 KG C 2 9 18 KG W/OW 1 18 19 KG OW 1 19 20 KG W/LY 3 20 21 KG B/W 4 21 22 KG Y 3 22 24 KG OB 4 24 25 KG Y/W 3 25 26 PDG B/W Hard wthd granite at 26m C W ll Ai C D ill H l Carey s Well Air Core Drill Hole: CW11AC029
Streaky Bay: bulk sample wet pilot plant
Small scale pilot plant in operation, March 2012
SediGraph 5120 This instrument t uses X-rays to measures particle size distribution
Particle Size Distribution for Hydrous Kaolin PW90 100 90 90.9% <2µm 80 79.2% <1µm Cumulative Mass Finer (%) 70 60 50 40 30 D 50 = 038 0.38µm 20 10 0 100.00 10.00 1.00 0.10 Particle Diameter (µm)
Technibrite TB-1C Colour Spectrophotometer
Comparison Table: Minotaur vs KaMin Hydrous and Calcined Kaolin Hydrous Kaolin Minotaur, Minotaur, Property KaMin Carey's Well Carey's Well Calcined Kaolin KaMin PW90B HYDRAFINE 90 1 PB80 KaMin 2000C 2 Brightness 90.0 ±0.5 88.5-90.0 95.5 ±0.5 91.5 (ISO R 457 ) (equivalent to 90-91.5 TAPPI GE brightness) (equivalent to 93 TAPPI GE brightness) Yellowness (CIE b*) 18 1.8 Not quoted 081 0.81 Not quoted Minus 2µm (wt %) 92 90-96 80 Not quoted Screen Residue 0.15% <0.01% 0.005% (325 mesh, = +45µm) (unmilled) 0.01% Fe 2 O 3 3 0.35% Not quoted 0.43% Not quoted TiO 2 3 0.03% Not quoted 0.04% Not quoted Al O 3 2 3 38.10% Not quoted 44.88% Not quoted Pb 4 6ppm Not quoted 7ppm Not quoted SG 2.6 Not quoted 2.6 2.63 1 HYDRAFINE 90 is a premium quality, high brightness, fine particle size clay. Link: www.kaminllc.com 2 KaMin 2000C is KaMin s highest brightness, finest particle size, calcined kaolin clay. Link: www.kaminllc.com 3 XRF determinations by CSIRO 4 ICP-MS analysis by ALS
PROPERTIES OF FOUR MINOTAUR KAOLIN PRODUCTS PRODUCT PW55 PW90UB PW90B PB80 Kaolin Type Hydrous Hydrous Hydrous Calcined Brightness (R 457 ISO) 87.4 89.3 90.0 95.5 Yellowness (b*) 2.5 2.5 1.8 0.8 Minus 2µm (wt%) 55 ±2 90 ±2 90 ±2 80 ±3 Al 2 O 3 (%) 38 38 38 44.5 Fe 2 O 3 (%) 0.45 0.42 0.35 0.4 TiO 2 (%) 009 0.09 003 0.03 003 0.03 004 0.04 Kaolinite ± Halloysite (%) 97 ±3 100 99 ±1 not applicable Quartz (%) <1 <1 <1 not applicable Mica (%) 1 0 0 not applicable Microcline ± albite 1 ±1 0 0 not applicable Anatase (%) not determined 0 1 not applicable This table includes representative data for Minotaur's kaolin products and should not be construed as specifications or absolute maximum/minimum values. The above information is believed to be accurate reliable but Minotaur makes no warranties regarding merchantability or fitness for a particular purpose, or any other express or implied warranty.
CAREY S WELL HYDROUS KAOLIN: SEM IMAGE Nb. Very fine grain size and excellent hexagonal crystallinity it
Rotary Calcining Kiln in operation March 2012
Pilot Plant Products and Marketing Strategy The Streaky Bay Pilot Plant has produced several hundred kilograms of three selected high quality hydrous kaolin products and seventy kilograms of premium quality calcined kaolin. An experienced kaolin marketing consultant has been engaged to advise on marketing strategy. Samples are being sent to selected potential clients around the world to enable them to test the suitability of Carey s Well kaolin for their particular applications. To date, samples have been sent to China, Korea, Indonesia, Thailand, Vietnam, Bangladesh, India, Italy and the UK. Initial target t markets include ceramics, paint and high h quality paper coating. Some early responses have been favorable and we expect to complete this market assessment within six months. In conjunction with this marketing strategy, Minotaur is actively seeking Investment Partners.
In summary, the Carey s Well Kaolin Deposit: Is very large (>50 year potential mine life), Appears to be very uniform in quality and distribution, Has all the qualities needed to produce high quality hydrous kaolin using conventional processing techniques, Demonstrates the ability to produce very high quality calcined kaolin, Is well located with a port at Thevenard within easy trucking distance, Has an excellent waste to ore ratio and could be mined using simple open cut mining processes.
Thank you for your attention Streaky Bay