Tms2013 cux puc charley creek presentation april 19 2013 v2 - 1135


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Tms2013 cux puc charley creek presentation april 19 2013 v2 - 1135

  1. 1. 1CHARLEY CREEKALLUVIAL REE PROJECTTMS2013Scoping Study PresentationDeveloping one of the world’s largest,lowest capital cost, rare earths projects
  2. 2. TMS2013 Presentation, Scoping Study April 2013 2This presentation should not be considered as investment advice. Any party to whom this information is made available mustmake their own investment decisions. Any forward-looking statements included in this document involve subjectivejudgment, and are subject to uncertainties, risks and contingencies, which may be beyond the control or knowledge of Crossland.Future events may vary materially from the forward-looking statements and the assumptions on which the forward-lookingstatements are based. Attendees at this presentation are cautioned not to place undue reliance on such forward-lookingstatements.Crossland makes no representation or warranty as to the accuracy, reliability or completeness of information in this document anddoes not take responsibility for updating any information or correcting any error or omission which may become apparent afterthis document has been issued.JORC StatementThe information in this presentation that relates to Exploration Targets, Exploration Results, or Mineral Resources isbased on information compiled by Geoffrey S Eupene FAusIMM CP, a Competent Person who is a Fellow of the Australasian Institute ofMining and Metallurgy. He is a director of the Company and a full time employee of Eupene Exploration Enterprises Pty Ltd, which isengaged by the Company. He has sufficient experience which is relevant to the styles of mineralisation and types of deposits underconsideration, and to the activity which is being undertaken to qualify as a Competent Person as defined in the 2012 edition of the‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’ (the JORC Code). Geoffrey S Eupene hasconsented to the inclusion in the report of the matters based on his information in the form and context in which it appears.ASX Listing Rules Statement re Production Targets. This presentation is based upon a production target and forecast financialinformation derived therefrom that was initially reported in CUX ASX Release of 15th April 2013: “Charley Creek Rare Earth ProjectScoping Study Results”. The assumptions underpinning the production targets therein continue to apply and have not materiallychanged. Some of the production target is based upon an exploration target. The potential quantity and grade of a exploration targetis conceptual in nature, there has been insufficient exploration to determine a mineral resource and there is no certainty that furtherexploration work will result in the determination of mineral resources or that the production target itself will be realised.
  3. 3. 3TMS2013 Presentation, Scoping Study 2013“Mine Building Bastards”“Tattoo Removal”??Technical RiskFinancial RiskREO’s are the best solutionSecurity of SupplyResource >?>?>?>Finished ProductMineralogy is KeyWho has separation technology?Capex“We don’t know what we don’t know”RiskRiskRiskCREO>HREO>TREOInvestor StrikeChallengingScalable
  4. 4. 4 Joint Venture between Crossland Uranium and Pancontinental Uranium Alluvial REE Project situated in NT, Australia High proportion of Heavy and Critical Rare Earths Scoping study has confirmed project development potential Low Capex - Lower risk Drilling has tested 1% of exploration potential Favourable regulatory regimeTMS2013 Presentation, Scoping Study 2013
  5. 5. 5Charley CreekJoint Venture
  6. 6. 6Investor Presentation, Scoping Study 2013
  7. 7. 7 Charley Creek alluvial plainswith a rough outline of thearea of interest The REE minerals areseparate mineral grainsmonazite & xenotime fromsurface. Alluvium is readily minedand upgraded usingconventional mineral sandstechnology Average thickness ofresource is 15m,commencing from surface(no overburden) and up to80m thick in places Vast alluvial flats are cheap& easy to rehabilitateInvestor Presentation, Scoping Study 2013
  8. 8. 8Decades of REO productionRESOURCE Mass(Mt)WeightedAverageTREO(ppm)ContainedTREO(t)ContainedXenotime(t)ContainedMonazite(t)ContainedZircon(t)Cattle Creek Indicated Resource 250 280 69,900 17,600 97,200 124,650Western Dam Indicated Resource 137 323 44,150 9,675 63,700 70,930TOTAL INDICATED RESOURCES 387 295 114,050 27,275 160,900 195,580Cattle Creek Inferred Resource 353 291 102,750 26,450 141,075 183,750Western Dam Inferred Resource 65 282 18,350 4,240 26,160 36,230TOTAL INFERRED RESOURCE 418 289 121,100 30,690 167,235 219,980Investor Presentation, Scoping Study 2013* The resource estimate is not independent and therefore is non-compliant with NI43-101 and we caution that it should not be relied upon.”
  9. 9. 9Investor Presentation, Scoping Study 2013
  10. 10. 10Experienced Independent Advisor TeamInvestor Presentation, Scoping Study 2013 Physical separation processes experts Specialized in testwork and flowsheet design for mineral sands project Resource development consultants Expertise in scoping and feasibility studies through to basic and detaileddesign, construction and commissioning GHD is one of the world’s leading engineering, architecture andenvironmental consulting companies 6500 people across five continents
  11. 11. 11PROJECTFINANCIALSNet Present Value (NPV10) A$302MInternal Rate of Return 39.4%CAPITALEXPENDITURETotal Capex (including contingency) A$156MPayback period 2.5 yearsREVENUEAnnual revenue (75% off-take terms) A$154M pa“Basket Price” of REO product US$57.38/kgOPERATINGEXPENDITURETotal operating costs (including G & A’s) A$85.4M paOperating unit cash cost $7.12/t ROMInvestor Presentation, Scoping Study 2013
  12. 12. 12MININGAnnual ROM Throughput 12M tpaStrip Ratio 0.01Mining Costs $2.64/t ROMCONCENTRATORConcentrate annual production (40% REO) 10kt/yrWet & Dry plant opex $1.81/t ROMREO REFINERYREO Production (as mixed carbonate) 3,645t/yrOpex (including delivery FOB Darwin) $6.54/kg REOOverall metallurgical recovery 60.8%INFRASTRUCTUREPower (BOO Arrangement) 12MW/hrWater 4.3GL/yrSulphuric Acid (Imported) 10kt/yrInvestor Presentation, Scoping Study 2013
  13. 13. 13Investor Presentation, Scoping Study 2013 Capex - 156 mln or US$43/kg REO pa Lowest capital cost in sector Includes all infrastructure010020030040050060070080002004006008001000120014001600 CharleyCreekBokanNorraKarrKipawaNguallaEcoRidgeHasngsKvaneeldDZPNolansBoreAnnualisedCapitalCost(US$/kgREOpa)TotalCapex(US$M)CapexAnnualised CapexCUX
  14. 14. 140510152025MiningWetPlantDryPlantREORefineryProductTransportGenerals&AdminTotalOperatingCost(A$/kgProduction)8.685.030.925.870.672.29 23.45Investor Presentation, Scoping Study 2013 Charley Creek is a high tonnage ‘mineralsands’ style operation. Total cash costs including overheads is$7.12/t ROM or $23.45/kg REOproduction. Several areas to reduce costs have beenidentified: High grade starter pit areas to bedrilled in next phase Location of REO Refinery – potentialsaving of $2.00/kg REO in reagentstransport Number of process improvementsidentified to increase overallmetallurgical recovery
  15. 15. 15Investor Presentation, Scoping Study 2013 Current China FOB (March 2013)spot price has been assumed forScoping Study Charley Creek basket price isUS$57.38/kg REO. TREO composition contains18% HREEs. US Department of Energy hasassessed Nd, Eu, Tb, Dy & Y to bein critical shortage. These five elements are commonlyreferred to as Critical Rare EarthElements (CREE). Charley Creek contains 30% CREEsby weight and they representapproximately 80% of basket price.02468101214Ce La Pr Nd Sm Eu Gd Tb Dy Ho Er Tm Yb Lu YCharleyCreekBasketPrice(US$/kg)Cri calCri calCri calCri calCri calSource: Metal Pages, CUX
  16. 16. 16Investor Presentation, Scoping Study 2013 Highly unique deposit having a broadspectrum of heavy and critical rareearths Charley Creek has one of the highestHREE &CREE distributions Not dependent on LREE metal prices70%80%90%100%MountainPassMountWeldNolans CUX Alluvial(Resource)CUX Cockraoch(REO to HMC)98.6% 96.0% 95.6%77.6% 77.5%1.1%3.2% 3.8%5.4% 5.0%0.1% 0.7% 0.4%17.0% 17.5%HREO: Tb Dy Ho Er Tm Yb Lu Y MREO: Sm Eu Gd LREO: Ce La Nd Pr01020304050607080MountainPassNguallaKvaneeldEcoRidgeMountWeldNolansBoreSteenkampskraalDZPCharleyCreekKipawaBokanBasketPrice(US$/kgREOChinaFOBMarch2013)CREEOther REECe38.63%La18.07%Pr4.24%Nd14.93%Sm2.82%Eu0.59%Gd2.39%Tb0.37%Dy2.11%Ho0.41%Er1.20%Tm0.16%Yb1.03%Lu0.15%Y12.90%Charley Creek REO Distribu onCUXSource: TMR, Metal Pages
  17. 17. 17Investor Presentation, Scoping Study 2013Corporate Initiate discussions with off takers and strategics’ Secure funding for DFSTechnical Drill high grade zones Continue optimisation test work Tailings disposal & management EIS Baseline survey Value engineering to reduce capital and operating costs
  18. 18. 18Investor Presentation, Scoping Study 2013Project HighlightsResource size  >230k t of contained TREO (still open)Mineralogy  Preferred monazite and xenotimeHREE & CREE Composition 18% HREE and 30% CREE by weight80% of $57/kg basket price is CREELow capital cost  $156 M to produce 3,600tpa high purity REO CarbonateLow cost mining and processing  Proven low risk heavy mineral sand process technologyScalable  Base case on 50% of current resourceLocation  Northern Territory , AustraliaInfrastructure  Road, Rail, Power and PeopleRegulatory regime  60 history of mining radioactive materialsEarly start-up  Pilot plant 2013/14 and full scale production 2016
  19. 19. 19Investor Presentation, Scoping Study 2013CUX DIRECTORSName PositionBob Richardson Executive ChairmanGeoff Eupene Executive DirectorPeter Walker Non-Executive DirectorMalcolm Smartt Finance DirectorPUC DIRECTORSName PositionDon Whalen ChairmanRick Mark President & CEODave Mosher DirectorMark McMurdie DirectorDavid Petroff DirectorCORPORATE SUMMARYASX code: CUXShares on issue: ~167 millionOptions on issue: ~42 millionTotal Shares (fully diluted): ~209 millionMarket Capitalization $6.5 millionCORPORATE SUMMARYTSXV code: PUCShares on issue: ~82.5 millionOptions on issue: ~4.0 millionTotal Shares (fully diluted): ~95.9 millionMarket Capitalization ~$5.0 million