2013 Mining South Australia
Whyalla, November 26-27, 2013

Operational Update – Frome Basin
Uranium Production

Dr Andrea ...
General Atomics
•

Headquartered in San Diego, California, ~ 5000+ employees

•

Founded 1955 (privately held corporation)...
WORLD-WIDE LOCATIONS

USA
• San Diego
• Washington, DC
• Denver
• Los Alamos
• Ogden, U

INTERNATIONAL

• Oklahoma City

•...
General Atomics Uranium Resources
GENERAL ATOMICS URANIUM RESOURCES

Cotter Corp
Colorado Mill & Mines
Wyoming Property

R...
Australian Tenements
AVON BASIN, WA

AMADEUS BASIN, NT

Exploration

Exploration

NT
Qld

WA
SA

NSW
FROME BASIN, SA

Beve...
Heathgate Tenement and Mining Assets – Frome Basin
ML6387 Bev Nth
ML6321 Beverley

61 km2
117 km2

EL 4387–Paralana 178 km...
Quasar Tenement and Mining Assets – Frome Basin
EL 5261 Petermorra 429 km2
QSR 80%; Paladin 20%
EL 5118 Mt Yerila 622 km2
...
Beverley and Beverley North – Frome Basin, SA
Discoveries
2005-2008
Approvals in place to
commence construction

EL3934

D...
Natural Uranium in the Northern Flinders Ranges

Northern Flinders Ranges
Pepegoona East & West
Pannikan

Four Mile East

...
Uranium in the Frome Basin
Airborne Radiometrics (U channel)

•

Top 2 cm (surface) 1,570,000 lbs has
eroded into the basi...
Rangefront & Palaeochannel Hosted Mineralisation
WEST

Flinders Ranges

Frome Sedimentary Basin

Rangefront (Fluvial)

PRO...
Roll Fronts

Groundwater Flow

PROPRIETARY & CONFIDENTIAL

Redox Front

13
Heathgate Resources Pty Ltd
• World’s most advanced In Situ
Recovery (ISR) mine
• Infrastructure includes 1 x processing
p...
Beverley – History

Beverley was Australia’s first In-Situ Recovery (ISR) mine
• 1969 Beverley deposits discovered
• 1982 ...
ISR Mining Method
•

Used since 2000 at Beverley, Pepegoona
and Pannikan

•

Mining method for 45% of global
U3O8 producti...
Heathgate Production
2,500,000

Beverley
Pepegoona

2,000,000

Pannikan
lbs U3O8

1,500,000

1,000,000

500,000

18+ Mlbs ...
Wellfield
Wellfield design

30m

In-house hydrological flow
modelling software:
- Wellfield design
- Flow rates
- Wellfiel...
Wellfield
>$170M invested in
exploration/delineation
drilling to date

PROPRIETARY & CONFIDENTIAL

Well costs $40K-$100K

...
Mine Operation – Uranium Recovery and Processing
Mining solution (100-300ppm U)
from the wellfields is passed
through ion ...
Satellite Plants

PROPRIETARY & CONFIDENTIAL

20
Precipitation, Thickening and Drying - Beverley
– Precipitation of ‘yellowcake’ by
addition of hydrogen peroxide
and caust...
Control Room

Central Control - Total control of all
Wellfield and Plant operations (flows,
pressures, leak detection, wat...
Four Mile Project
A decision to recommence development of the Four Mile Project was
made in October 2012
Commonwealth regu...
Four Mile Project

Image source: Four Mile Uranium Mine PEPR, June 2013.

PROPRIETARY & CONFIDENTIAL

24
Four Mile Project

Image source: Four Mile Uranium Mine PEPR, June 2013.

PROPRIETARY & CONFIDENTIAL

25
Four Mile
FM Laydown

FME Wellfield

FME Wellhouse

FME Wellfield

PROPRIETARY & CONFIDENTIAL

26
Four Mile Project - Resources

Inferred 29 M lbs

Indicated &Inferred
42 M lbs

Source: Alliance Resources Ltd, Company Pr...
Four Mile Project - Resources

Source: Alliance Resources Ltd, Company Presentation 23 Oct 2013.

PROPRIETARY & CONFIDENTI...
Four Mile Project - Resources

Source: Alliance Resources Ltd, Company Presentation 23 Oct 2013.

PROPRIETARY & CONFIDENTI...
Thankyou
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Dr Andrea Marsland-Smith, Heathgate Resources: Heathgate Resources Update

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Dr Andrea Marsland-Smith, Geology Manager, Heathgate Resources delivered this presentation at the 2013 Mining South Australia conference. The conference has been produced specifically for the South Australian mining and regional development community and represents a unique opportunity to hear the latest developments from the major projects, mines and explorers in South Australia. For more information on the annual event, please visit the conference website: http://www.informa.com.au/miningsa2013

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Dr Andrea Marsland-Smith, Heathgate Resources: Heathgate Resources Update

  1. 1. 2013 Mining South Australia Whyalla, November 26-27, 2013 Operational Update – Frome Basin Uranium Production Dr Andrea Marsland-Smith Geology Manager Heathgate Resources Pty Ltd, Adelaide, Australia
  2. 2. General Atomics • Headquartered in San Diego, California, ~ 5000+ employees • Founded 1955 (privately held corporation) • Is one of the world's leading institutions for:     high-technology systems ranging from the nuclear fuel cycle to electromagnetic systems, remotely operated surveillance aircraft, airborne sensors, and advanced electronic, wireless and laser technologies. General Atomics Torrey Pines, CA 3
  3. 3. WORLD-WIDE LOCATIONS USA • San Diego • Washington, DC • Denver • Los Alamos • Ogden, U INTERNATIONAL • Oklahoma City • Dresden • Ft. Madison, I • Mittenwalde • Panna Maria • Lauchhammer • Grants, NM • Lübben • Tupelo, MI • Tokyo • Adelaide • Bangkok • Rabat M-411(4) 10-2008 4
  4. 4. General Atomics Uranium Resources GENERAL ATOMICS URANIUM RESOURCES Cotter Corp Colorado Mill & Mines Wyoming Property Rio Grande Resources Mt. Taylor Mine, New Mexico Texas Properties Nuclear Fuels Corp ConverDyn Baywood Metropolis, Illinois Conversion Services Uranium Marketing LEGEND US Corporations Australian Companies Honeywell Energy Services GA Energy Services Heathgate Quasar Beverly Mine, Beverley North Mine SA, Exploration SA 5 Four Mile Deposit SA (JV with Alliance Resources Ltd) Exploration, S.A, WA, NT
  5. 5. Australian Tenements AVON BASIN, WA AMADEUS BASIN, NT Exploration Exploration NT Qld WA SA NSW FROME BASIN, SA Beverley & Beverley Nth Deposits Four Mile Deposit Exploration GAWLER CRATON, SA Exploration PROPRIETARY & CONFIDENTIAL 6
  6. 6. Heathgate Tenement and Mining Assets – Frome Basin ML6387 Bev Nth ML6321 Beverley 61 km2 117 km2 EL 4387–Paralana 178 km2 TOTAL AREA Heathgate 100 % 4294.5 km2 EL 5119 North Mulga 691 km2 Heathgate 100 % PEPEGOONA PANNIKAN BEVERLEY RL’s 18-20 7.5 km2 Heathgate 100 % Gammon Ranges National Park EL 5177 Wooltana 1396 km2 Heathgate 100 % EL 5349 Lake Frome 819 km2 Heathgate 100 % EL 5328 Mt Frome Nth 268 km2 Heathgate 100 % EL 5311 Mt Frome 399 km2 Heathgate 100 % EL 5329 Mt Frome Sth 357 km2 Heathgate 100 % PROPRIETARY & CONFIDENTIAL 7
  7. 7. Quasar Tenement and Mining Assets – Frome Basin EL 5261 Petermorra 429 km2 QSR 80%; Paladin 20% EL 5118 Mt Yerila 622 km2 QSR 80%; Paladin 15%; Risenger 5% Four Mile East Four Mile West APA EL 5017 Arkaroola 780 km2 QSR 75%; Alliance Resources 25% ML 6402 Four Mile 122.06 km2 QSR 75%; Alliance Resources 25% TOTAL AREA PROPRIETARY & CONFIDENTIAL 1953.06 km2 8
  8. 8. Beverley and Beverley North – Frome Basin, SA Discoveries 2005-2008 Approvals in place to commence construction EL3934 Discoveries 2009-2010 Production from Q3 2010 Pepegoona 5km Pepegoona West BEVERLEY Pannikan Port Augusta Beverley North Mine Lease Four Mile West Four Mile East ADELAIDE Beverley Mine Lease  Discovered 1969 Production from 2000 Beverley Beverley East Deep South Four Mile Mine Lease Quasar/Alliance JV Exploration Lease Heathgate Exploration Lease Approximately 550km north of Adelaide PROPRIETARY & CONFIDENTIAL 9
  9. 9. Natural Uranium in the Northern Flinders Ranges Northern Flinders Ranges Pepegoona East & West Pannikan Four Mile East Frome Basin Four Mile West Beverley Rated one of earth’s 5 most naturally radioactive places PROPRIETARY & CONFIDENTIAL 10
  10. 10. Uranium in the Frome Basin Airborne Radiometrics (U channel) • Top 2 cm (surface) 1,570,000 lbs has eroded into the basin (Av. 2 years production from Pepegoona, Pannikan) • In the last 4 million years (time of last uplift of the ranges) 2.3 billion pounds of uranium into the basin near Beverley 11 • • PROPRIETARY & CONFIDENTIAL That’s approx. 1600 years of production at an average of 1Mlbs per year (assuming 70% recovery) HGR have produced 1.3% of this inventory 11
  11. 11. Rangefront & Palaeochannel Hosted Mineralisation WEST Flinders Ranges Frome Sedimentary Basin Rangefront (Fluvial) PROPRIETARY & CONFIDENTIAL 12 EAST Palaeochannel
  12. 12. Roll Fronts Groundwater Flow PROPRIETARY & CONFIDENTIAL Redox Front 13
  13. 13. Heathgate Resources Pty Ltd • World’s most advanced In Situ Recovery (ISR) mine • Infrastructure includes 1 x processing plant, 2 x satellite plants, power plant, airstrip, camp accommodation (180) • Fly-in/fly-out (2 x Encore Jets) o Sharp Airlines • Approximately 150 permanent and up to 50 labour hire employees • 26% of mine workforce from local Aboriginal communities • More than 600+ people in indirect jobs o Thompson Drilling, Cater Care, Kalari, KJM etc… PROPRIETARY & CONFIDENTIAL 14
  14. 14. Beverley – History Beverley was Australia’s first In-Situ Recovery (ISR) mine • 1969 Beverley deposits discovered • 1982 First draft Beverley EIS (not progressed due to 3-mines policy) • 2001 Production commenced at Beverley • 2009 Beverley North deposits discovered • 2011 Beverley North Mine approved February 2011 15
  15. 15. ISR Mining Method • Used since 2000 at Beverley, Pepegoona and Pannikan • Mining method for 45% of global U3O8 production (1) • Lower costs compared to conventional mining • Typical Recovery ~70% in 12 months For successful ISR mining, ore body must have following properties: • • • Ore body must be in an aquifer Aquifer sediments must be permeable Aquifer ideally is vertically confined (above and below) by impermeable layers PROPRIETARY & CONFIDENTIAL 16
  16. 16. Heathgate Production 2,500,000 Beverley Pepegoona 2,000,000 Pannikan lbs U3O8 1,500,000 1,000,000 500,000 18+ Mlbs (~8000+ tonnes) produced since 2000 0 Year PROPRIETARY & CONFIDENTIAL 16 Source: World Nuclear Association, annual production Statistics
  17. 17. Wellfield Wellfield design 30m In-house hydrological flow modelling software: - Wellfield design - Flow rates - Wellfield control Wellfield flow pattern (modelled) Use of reactive–transport models to tailor lixiviant chemistry to each wellfield Looking South-West PROPRIETARY & CONFIDENTIAL 17
  18. 18. Wellfield >$170M invested in exploration/delineation drilling to date PROPRIETARY & CONFIDENTIAL Well costs $40K-$100K 18
  19. 19. Mine Operation – Uranium Recovery and Processing Mining solution (100-300ppm U) from the wellfields is passed through ion exchange columns Ion Exchange – Capture & Elution • Resin is used to capture uranium leached in the wellfields • Loaded resin is stripped using acidified sodium chloride solution (this is the eluate) • Precipitation, drying and packing at Beverley PROPRIETARY & CONFIDENTIAL 19
  20. 20. Satellite Plants PROPRIETARY & CONFIDENTIAL 20
  21. 21. Precipitation, Thickening and Drying - Beverley – Precipitation of ‘yellowcake’ by addition of hydrogen peroxide and caustic soda to the eluate Final product is uranyl peroxide (UO4.2H2O) o from low temperature drying (<250 C) PROPRIETARY & CONFIDENTIAL 21
  22. 22. Control Room Central Control - Total control of all Wellfield and Plant operations (flows, pressures, leak detection, water balance, etc) PROPRIETARY & CONFIDENTIAL 23
  23. 23. Four Mile Project A decision to recommence development of the Four Mile Project was made in October 2012 Commonwealth regulatory approvals received 2 September 2013 The Start-Up Plan comprises: • A staged commencement of mining operations, to permit actual production rates to be considered before full-scale production facilities are constructed. • Uranium capture at Heathgate’s Pannikan satellite plant • Elution, precipitation, drying and packing at Heathgate’s Beverley processing plant • Production of 2.128 M lb of uranium oxide over 10 months Source: Adapted from Alliance Resources Ltd, Company Presentation 23 Oct 2013. PROPRIETARY & CONFIDENTIAL 23
  24. 24. Four Mile Project Image source: Four Mile Uranium Mine PEPR, June 2013. PROPRIETARY & CONFIDENTIAL 24
  25. 25. Four Mile Project Image source: Four Mile Uranium Mine PEPR, June 2013. PROPRIETARY & CONFIDENTIAL 25
  26. 26. Four Mile FM Laydown FME Wellfield FME Wellhouse FME Wellfield PROPRIETARY & CONFIDENTIAL 26
  27. 27. Four Mile Project - Resources Inferred 29 M lbs Indicated &Inferred 42 M lbs Source: Alliance Resources Ltd, Company Presentation 23 Oct 2013. PROPRIETARY & CONFIDENTIAL 27
  28. 28. Four Mile Project - Resources Source: Alliance Resources Ltd, Company Presentation 23 Oct 2013. PROPRIETARY & CONFIDENTIAL 28
  29. 29. Four Mile Project - Resources Source: Alliance Resources Ltd, Company Presentation 23 Oct 2013. PROPRIETARY & CONFIDENTIAL 29
  30. 30. Thankyou

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