Lofdal heavy rare earths
Upcoming SlideShare
Loading in...5
×
 

Lofdal heavy rare earths

on

  • 1,179 views

Objective Capital's Rare Earths, Speciality & Strategic Metals ...

Objective Capital's Rare Earths, Speciality & Strategic Metals
Investment Summit 2012
Ironmongers' Hall, City of London
13-14 March 2012
Speaker: Don Burton, Namibia Rare Earths

Statistics

Views

Total Views
1,179
Views on SlideShare
804
Embed Views
375

Actions

Likes
0
Downloads
19
Comments
0

3 Embeds 375

http://www.objectivecapitalconferences.com 372
http://localhost 2
http://objectivecapitalconferences.com 1

Accessibility

Upload Details

Uploaded via as Microsoft PowerPoint

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

Lofdal heavy rare earths Lofdal heavy rare earths Presentation Transcript

  • RARE EARTHS, SPECIALITY& STRATEGIC METALSINVESTMENT SUMMIT Exploration in a New Mineral District Targeting Exceptional Heavy Rare Earth Enrichment Don Burton – President, Namibia Rare Earths IRONMONGERS’ HALL, CITY OF LONDON TUESDAY-WEDNESDAY, 13-14 MARCH 2012 www.ObjectiveCapitalConferences.com
  • Namibia Rare Earths Inc.Exploration in a New Mineral District Targeting Exceptional Heavy Rare Earth Enrichment Objective Capital - Rare Earths, Specialty and Strategic Metals Investment Summit March 2012
  • Forward Looking StatementsThis presentation contains forward-looking statements that relate to the Companys current expectations and views of future events.In some cases, these forward-looking statements can be identified by words or phrases such as"may", "will", "expect", "anticipate", "aim", "estimate", "intend", "plan", "seek", "believe", "potential", "continue", "is/are likely to" or the negative of these terms, or othersimilar expressions intended to identify forward-looking statements. The Company has based these forward-looking statements on its current expectations andprojections about future events and financial trends that it believes may affect its financial condition, results of operations, business strategy and financial needs. Theseforward-looking statements include, among other things, statements relating to (i) the Companys strategy, growth, development and acquisition opportunities, return onexisting assets, operational excellence and financial management; (ii) the Companys expectations regarding its revenue, expenses and operations; (iii) the Companysanticipated cash needs and its estimates regarding its capital and operating expenditures; (iv) capital requirements, needs for additional financing and the Companysability to raise additional capital; (v) the Companys estimates of future cash flows, financial condition and operating performances of the Company and its subsidiaries;(vi) the estimation of any mineral resources and the realization of mineral reserves based on mineral resource, estimates and estimated future development, if any, andpossible variations of ore grade or recovery rates; (vii) estimated results of planned exploration and development activities; (viii) the Companys competitive position andits expectations regarding competition from other companies globally; (ix) the Companys ability to maintain customer and supplier relationships; (x) anticipated trendsand challenges in the Companys business and the markets in which it operates, including with respect to potential new rare earths projects, supply outlook and growthopportunities; (xi) limitations of insurance coverage; (xii) the future price of and future demand for rare earths elements and their derivative products; (xiii) economic andfinancial conditions; (xiv) interest rates and foreign exchange rates; (xv) performance of counterparties in fulfilling their obligations; (xvi) government regulation of miningoperations, accidents, environmental risks, exploration risks, reclamation and rehabilitation expenses; (xvii) title disputes or claims; and (xviii) the timing and possibleoutcome of pending regulatory and permitting matters.Forward-looking statements are based on certain assumptions and analyses made by the Company in light of its experience and perception of historical trends, currentconditions and expected future developments and other factors it believes are appropriate. These assumptions include continued political stability in Namibia, thatpermits required for the Companys operations will be obtained in a timely basis in order to permit the Company to proceed on schedule with its planned drillingprograms, that skilled personnel and contractors will be available as the Companys operations continue to grow, that the price of rare earths will remain at levels that willrender the Companys projects economic and that the Company will be able to continue raising the necessary capital to finance its operations. Forward-lookingstatements involve a variety of known and unknown risks, uncertainties and other factors, including those listed under the heading "Risk Factors" in the prospectus of theCompany dated April 7, 2011 (filed on SEDAR www.sedar.com), which may cause the Companys actual results, performance or achievements to be materially differentfrom any future results, performances or achievements expressed or implied by the forward-looking statements.The forward-looking statements made in this presentation relate only to events or information as of the date on which the statements are made in the presentation.Except as required by law, the Company undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, afuture event or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events.There can be no assurance that such forward looking information will prove to be accurate, as actual results and future events could differ materially from thoseanticipated in such information. Accordingly, potential investors should not place undue reliance on forward-looking information.
  • Corporate Summary – February 23, 2012 Listing Toronto Stock Exchange (“NRE”) Head Office Halifax, Nova Scotia Issued 77,828,500 shares Warrants 7,561,250 (priced at $0.75 - $0.80) Options 5,200,000 (priced at $0.41 - $0.80) Fully Diluted 90,589,750 shares 52 Week High/Low $0.87/$0.37 Share Price Range $0.40 - 0.45 Market Capitalization $31.1 million Cash Balance $23.0 million Debt Nil
  • Namibia Rare Earths - IPO April 2011 on TSX ($28.75M)• 100% owner of the Lofdal Rare Earth Project (“Lofdal”) located in north-western Namibia• District scale potential for new rare earth deposit discoveries (Lofdal covers 740 km2)• Drill targets with exceptional heavy rare earth enrichment when compared to its rare earth developer peers• Aggressive exploration program post-IPO has already identified first resource target area with open pit potential (currently drilling)• Namibia is a stable jurisdiction, pro-mining country, with excellent infrastructure• Experienced management and board with significant African and rare earth experience, including an officer of Molycorp on board
  • Why Does Everyone Emphasize Heavies? Part I – Supply Concerns • Rare earth elements are essential for high-tech applications (computers, cell phones, hybrid cars, wind turbines and defence industry applications) • The US Department of Energy has identified 5 critical elements that are at a serious supply risk over the next 15 years – dysprosium (Dy), terbium (Tb), neodymium (Nd), europium (Eu) and yttrium (Y) • Principal target elements at Lofdal are dysprosium, terbium and yttrium
  • Why Does Everyone Emphasize Heavies? Part II - Pricing • Decision to IPO Lofdal was made in early 2010 after which rare earth oxide prices rose dramatically to a peak in July 2011. Prices have fallen back in the past 6 months but still remain robust. • In spite of recent drop of 45% in prices, current levels are up over 850% from 2010 prices and heavies have maintained their value relative to lights. • Do your homework to understand what a company reports as HREE or HREO. Norm is to include yttrium which may be >50% of the heavies. Some companies will break out light REE, mid REE and heavy REE. Look for complete disclosure of material grades (next slide). Oxide January 2010 January 2011 July 2011 Jan 2012 % Change 6 mo % Change 24 mo (US$/kg) (US$/kg) (US$/kg) (US$/kg) (July 11-Jan 12) (Jan 10 - Jan 12) Lanthanum 6 61 154 51 -67% 750% LREE Cerium 4 64 157 43 -73% 975% Praseodimium 23 92 247 165 -33% 617% Neodymium 24 93 328 195 -41% 713% Samarium 5 49 127 79 -38% 1480% Europium 480 630 5560 3790 -32% 690% HREE Terbium 350 618 4260 2810 -34% 703% Dysprosium 121 325 2591 1410 -46% 1065% Yttrium 10 75 180 91 -49% 810% In January 2010 Eu, Tb and Dy were worth approximately 26X more than La, Ce, Pr, Nd and Sm In January 2012 Eu, Tb and Dy were worth approximately 25X more than La, Ce, Pr, Nd and SmPrice sources: Technology Metals Research derived from metal-pages.com for 99% REO FOB China
  • What is Heavy Rare Earth Enrichment? Material GradesMost rare earth deposits have a preponderance of light rare earths. The relative proportion of heavies to thetotal grade expressed as a percentage defines the degree of heavy rare earth enrichment. Deposits with>10% enrichment (indicated with below) are considered to be “enriched” in heavies. … . . Rare Element . . Navigator . . Alkane GWG . . Lynas . . Stans . . Greenland Lynas . . Molycorp . . Avalon Arafura. . . . Tasman Hudson . . GWG . . Quest . Frontier . . . Matamac . (February 2011) . TREO grades from 0.24% to 11.65% and H:T range from 0.6% to 52.7%
  • REO Distribution1 Shows Level of Heavy Rare Earth Enrichment 0.6% 2.2% 3.3% 3.7% 3.7% Molycorp Hudson Rare Element Great Western Great Western < 5% HREE 5.4% 7.7% 7.8% 15.5% Lynas Great Western Frontier Avalon 5 - 15% HREE 23.3% 36.9% 43.2% 52.7% Alkane Matamec Quest Tasman 23 – 53% HREE1 From Technology Metals Research Company Report February 2011
  • Targeted HREE Enrichment at Lofdal is 80-90% HREO NLOFDH4015 from 27- 43 m = 16 m with 94.5% HREE enrichment Hole NLOFDH015 intersected 16 m of 1.28% TREO with 94.5% HREE enrichment (including 2 m of 6.18% TREO with 98.4% HREE enrichment) From the pie chart Dy distribution is 9.75% so you can calculate the material grade of Dy as (9.75 * 1.28)/100 = 0.1248% or 1,248 ppm Much easier for companies to disclose the details for youLa2O3 Ce2O3 Pr2O3 Nd2O3 Sm2O3 LREO Eu2O3 Gd2O3 Tb2O3 Dy2O3 Ho2O3 Er2O3 Tm2O3 Yb2O3 Lu2O3 Y2O3 HREO TREO HREO:TREO ppm ppm ppm ppm ppm % ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm % % Ratio as %151 282 32 131 110 0.07 93 510 157 1,248 281 833 121 721 108 8,070 1.21 1.28 94.5
  • REE Deposits Have a Wide Range of Grades and In Situ Values • In situ values (US$/tonne) reflect grade and distribution of REOs in terms of resource in the ground • No consideration given to tonnage, recoveries or economics – it is just a yardstick $11,021 $8,927 $4,968 $3,276 $2,500 $1,892 $1,685 $1,340 $1,278 $1,253 $968 $795 $478 Great Lynas Molycorp Rare Frontier Avalon Montero Quest U Core Search Tasman Matamec Hastings Western ElementTREO (1) 11.7% 9.7% 6.6% 3.0% 2.2% 1.4% 2.6% 0.9% 0.8% 1.0% 0.5% 0.5% 0.2%Grade: (1) Calculated as the sum of the oxide grades of Lanthanum, Cerium, Praseodymium, Neodymium, Samarium, Europium, Gadolinium, Terbium, Dysprosium, Holmium, Erbium, Thulium, Ytterbium, Lutetium, and Yttrium SOURCE: REO value per unit mass of mineral resource (US$/tonne) and TREO grades from Technology Metals Research using January 2012 average REO FOB China prices
  • TREO Grade Generally will Rank Deposits in Value $11,021 $8,927 Based on grade alone, that drill intercept of 1.3% TREO from Lofdal might be expected to fall in the middle of the pack 16 meter drill intercept @ 1.28% TREO (2) $4,968 $3,276 $3,371 $2,500 $1,892 $1,685 $1,340 $1,278 $1,253 $968 $795 $478 Great Lynas Molycorp Rare Frontier Avalon Montero Quest U Core Search Tasman Matamec Hastings Namibia Western Element REETREO (1) 11.7% 9.7% 6.6% 3.0% 2.2% 1.4% 2.6% 0.9% 0.8% 1.0% 0.5% 0.5% 0.2% 1.3%Grade: (1) Calculated as the sum of the oxide grades of Lanthanum, Cerium, Praseodymium, Neodymium, Samarium, Europium, Gadolinium, Terbium, Dysprosium, Holmium, Erbium, Thulium, Ytterbium, Lutetium, and Yttrium (based on TMR Report dated February 22, 2011) (2) Calculated based on the average grade from single 16.0 meter length drill hole intercept as reported in Company press release dated September 15, 2011 SOURCE: REO value per unit mass of mineral resource (US$/tonne) and TREO grades from Technology Metals Research using January 2012 average REO FOB China prices
  • Importance of Exceptional HREE Enrichment at Lofdal $11,021 $8,927 Because of the exceptional heavy rare earth enrichment at Lofdal that 1.3% TREO grade has an in situ value roughly equivalent to the 3.0% TREO grade at Bear Lodge 16 meter drill intercept Bear Lodge Resource @ 1.28% TREO (2) @ 3.0% TREO $4,968 $3,276 $3,371 $2,500 $1,892 $1,685 $1,340 $1,278 $1,253 $968 $795 $478 Great Lynas Molycorp Rare Frontier Avalon Montero Quest U Core Search Tasman Matamec Hastings Namibia Western Element REETREO (1) 11.7% 9.7% 6.6% 3.0% 2.2% 1.4% 2.6% 0.9% 0.8% 1.0% 0.5% 0.5% 0.2% 1.3%Grade: (1) Calculated as the sum of the oxide grades of Lanthanum, Cerium, Praseodymium, Neodymium, Samarium, Europium, Gadolinium, Terbium, Dysprosium, Holmium, Erbium, Thulium, Ytterbium, Lutetium, and Yttrium (based on TMR Report dated February 22, 2011) (2) Calculated based on the average grade from single 16.0 meter length drill hole intercept as reported in Company press release dated September 15, 2011 SOURCE: REO value per unit mass of mineral resource (US$/tonne) and TREO grades from Technology Metals Research using January 2012 average REO FOB China prices
  • Importance of High Grade Intercepts at Lofdal 2 meter drill intercept @ 6.18% TREO (2) Continuity and frequency of high grade intercepts $17,131 will be important in delineating resources at Lofdal $11,021 $8,927 $4,968 $3,276 $2,500 $1,892 $1,685 $1,340 $1,278 $1,253 $968 $795 $478 Great Lynas Molycorp Rare Frontier Avalon Montero Quest U Core Search Tasman Matamec Hastings Namibia Western Element REETREOGrade: (1) 11.7% 9.7% 6.6% 3.0% 2.2% 1.4% 2.6% 0.9% 0.8% 1.0% 0.5% 0.5% 0.2% 6.2% (1) Calculated as the sum of the oxide grades of Lanthanum, Cerium, Praseodymium, Neodymium, Samarium, Europium, Gadolinium, Terbium, Dysprosium, Holmium, Erbium, Thulium, Ytterbium, Lutetium, and Yttrium (based on TMR Report dated February 22, 2011) (2) Calculated based on the average grade from single 2.0 meter length drill hole intercept as reported in Company press release dated September 15, 2011 SOURCE: REO value per unit mass of mineral resource (US$/tonne) and TREO grades from Technology Metals Research using January 2012 average REO FOB China prices
  • Namibia Overview• Mining friendly operating jurisdiction• Excellent infrastructure• Current major mine operators and developers include: – Rio Tinto – Paladin Energy – Areva – Forsys Metals – Bannerman Mining – Extract – AngloGold Ashanti – De Beers• A dedicated and highly organized approach to support the exploration community through the Ministry of Mines and Energy and the Geological Survey of Namibia with focused studies at Lofdal
  • Increasing Political Risk 100% 10% 20% 30% 40% 50% 60% 70% 80% 90% 0% Greenland Spain Sweden Finland Chilejurisdictions averaged) Canada Botswana New Zealand Australia Norway NAMIBIA USA Brazil Ireland Turkey Colombia Mali Ghana China Burkina Vietnam Peru Mexico Tanzania Zambia Panama Bulgaria India Indonesia Argentina South Africa Romania Mongolia Philippines PNG Namibia Overview – Political Risk Assessment Kazakhstan Russia Guinea Kyrgystan Honduras GuatemalaSource: Fraser Institute Annual Survey of Mining Companies 2010/2011 (Canada, USA and Australia provincial and state Niger Bolivia Ecuador DRC Madagascar Zimbabwe Survey from the Fraser Institute in 2010 ranked Namibia on par with the United States Venezuela
  • Lofdal Rare Earth Project History (2008-2010)• Brand new, district scale rare earth project recognized in 2008• Multiple high quality rare earth targets within 200 km2 carbonatite complex• Delineation of a 7 km long corridor with particular potential for the discovery of HREE enriched deposits• First diamond drilling in October 2010 confirmed REE mineralization in carbonatite dykes and alteration haloes with high HREE ratios (>50%)• Detailed mapping in Area 4 with exceptional HREE ratios (>90%) in dykes over 800 m strike• Technical basis for IPO and TSX listing Source Geological Survey of Namibia (2006b)
  • Lofdal Carbonatite Complex Covers 200 km2• Lofdal mapped in detail with airborne radiometrics and magnetics – 40% of the complex has been systematically prospected; 20% of it mapped• Detailed ground surveys map out individual dykes which can extend for several kilometers Main Intrusion Emanya Intrusion • Rock sample site Background is Th radiometric counts from 2010 airborne survey, with red and purple colours defining the extent of the Th anomaly
  • District Scale Potential Demonstrated by Rock Sampling• Regional rock sampling has confirmed the district scale potential of Lofdal – Over 3,700 outcrop samples covering 80 km2 analyzed for REEs between 2008-2010 – Carbonatite dykes display both LREE and HREE enrichment – Main Intrusion weakly anomalous in REE and Emanya Intrusion shows moderate LREE enrichment Main Intrusion Emanya Intrusion
  • Potential for HREE Discoveries in Focused Areas• Using the same data the rock samples can be plotted wrt HREE enrichment – Specific structures are characterized by >75% HREE and can be traced for several kilometers – Geologists believe this is related to a distinct, late phase of HREE enriched fluids and hydrothermal activity % HREE Enrichment >50 >75 >90 Main IntrusionIntrusion Main Emanya Intrusion Emanya Intrusion
  • Rare Earth Deposit Exploration Model (Carbonatites)• Carbonatites and related rocks typically are anomalous in rare earths, Ba, Nb, Sr, Ta, Th and U – Important deposits of this type are Mountain Pass, Mt. Weld (weathered), Palabora and Bayan Obo – Comparable deposits dominated by carbonatite dykes are Bear Lodge and Bokan Mountain• Level of erosion at Lofdal has exposed the top of the Main Intrusion, a carbonatite pipe at Emanya Intrusion and hundreds of dykes Carbonatite Dykes Level of Erosion Emanya Intrusion Main Intrusion
  • Summary of Exploration Drilling Completed in 2011 • 9,500 m exploration drill program tested 16 of 18 targets • HREEs targets confirmed in Areas 2, 4 and 5 • LREE targets confirmed in Areas 6 and 8 • Area 4 identified as first resource target • 6,000 m drill program for Q1 2012 • Exploration will continue over entire carbonatite complex
  • Area 4 - Potential for Development of an HREE Resource• Area 4 was one area selected for mapping during the IPO process and provided some of the most exceptional evidence for HREE enrichment % HREE Enrichment >50 >75 >90 Main IntrusionIntrusion Main Emanya Intrusion Emanya Intrusion
  • Area 4 Drilling has Confirmed Exceptional HREE Enrichment La Ce Dy Y HREE + Y TREE + Y % of Total Summary analyses of (ppm) (ppm) (ppm) (ppm) (%) (%) as HREE + Y best HREE surface Avg 14 HREE-rich 113 212 1,758 11,839 1.79 1.86 96.0 samples from Area 4 Best HREE Sample 378 509 4,400 29,700 4.52 4.69 96.4 at IPO HREE-rich • Drilling in Area 4 targeted exceptional HREE-enrichment over an 800 m strike length • Current drilling program has intersected up to 7.14% TREE+Y with 8,220 ppm Dy, 44,100 ppm Y and 98.4% HREE enrichment
  • Area 4 Selected for Development of First Resource at Lofdal Consistent and Exceptional Heavy Rare Earth Enrichment for 650 m 1.28% TREO over 16.00 meters with 94.5% HREE enrichment (including 6.18% TREO over 2.00 meters with 98.4% HREE enrichment) 0.92% TREO over 19.00 meters with 91.5% HREE enrichment (including 2.43% TREO over 6.00 meters with 96.3% HREE enrichment) 0.66% TREO over 11.00 meters with 85.4% HREE enrichment (including 1.69% TREO over 2.00 meters with 90.3% HREE enrichment) 0.62% TREO over 10.00 meters with 81.0% HREE enrichment (including 1.04% TREO over 4.00 meters with 94.2% HREE enrichment) 0.57% TREO over 12.52 meters with 85.8% HREE enrichment (including 1.66% TREO over 2.14 meters with 97.2% HREE enrichment) 0.56% TREO over 9.00 meters with 73.4% HREE enrichment (including 1.14% TREO over 3.00 meters with 87.8% HREE enrichment) 0.49% TREO over 9.00 meters with 81.2% HREE enrichment (including 1.05% TREO over 2.89 meters with 87.7% HREE enrichment) 0.40% TREO over 4.28 meters with 86.2% HREE enrichment (including 0.98% TREO over 0.49 meters with 97.8% HREE enrichment) 0.34% TREO over 11.00 meters with 88.3% HREE enrichment (including 1.38% TREO over 1.00 meters with 97.0% HREE enrichment)
  • Area 4 Section 550E - %TREO and HREE Enrichment16 m @ 1.28% TREO with 94.5%HREE (incl 2 m @ 6.18%TREO with 1.15 m @ 1.47% TREO98.4% HREE) with 93.9% HREE 13 m @ 0.48% TREO with 69.6% HREE (incl 1 m @ 1.89% TREO with 10 m @ 0.62% TREO with 81.0% 97.09% HREE) HREE (incl 2 m @ 1.04% TREO with 94.2% HREE) 1.0 m @ 1.04% TREO with 94.9% HREE 1.16 m @ 1.10% TREO with 73.8% HREE
  • Area 4 Section 550E - Dysprosium (ppm Dy2O3) 50 vertical meters 100 vertical meters
  • Area 4 Section 550E - Yttrium (ppm Y2O3) 50 vertical meters 100 vertical meters
  • Area 4 Section 550E - % Heavy Rare Earth Enrichment 50 vertical meters 100 vertical meters
  • Structural Control: Resource Area Covers First 650 m ofPotential Strike Length of 3 km Based on Ground IP Surveys Interpreted structural lineament Gradient Chargeability
  • Structural Control: Potential Strike Length of 3 km Confirmedby Radiometrics Interpreted structural lineament Airborne Thorium
  • Potential Strike Length of Controlling Structure May Be 12 km NPA Interpreted IP Survey Structure Completed Main IntrusionResource Area IP Survey in Progress Drill Fences 5 kilometers 5 kilometers Emanya Plug
  • Experienced Exploration Team in the Field Dedicated to Discovery
  • Key Drivers for Success and Next Steps at Lofdal• New project with district scale potential (3 year history)• Unique nature of the HREE enrichment• Quality of the exploration database and results to date• Potential for multiple discoveries, especially for HREEs• Proactive and positive mining jurisdiction in Namibia• Well financed with capacity to take project to 43-101 resource and PEA over next 24 months ____________________________• Resource drilling program underway with 6,000 meters planned from January - April 2012• Delivery of first 43-101 compliant resource in Q3 2012• Mineralogical and metallurgical studies underway• Concurrent with resource drilling, exploration will continue