Intex Resources Mindoro Nickel Philippines 2011

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Philippines Asia Mining Singapore_2011



Intex Resources Mindoro Nickel Project Philippines

The capex of USD2.5 Bn for the full scale project however
is also beyond the capability of an exploration company
like Intex Resources (Norway)

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Intex Resources Mindoro Nickel Philippines 2011

  1. 1. Mindoro Nickel Philippines Setting New Environmental Standards for the Industry Jon Steen Petersen, CEO/COO April - 6 2011 Asia Mining CongressMindoro Nickel
  2. 2. DisclaimerThis presentation contains certain assumptions and forward-looking statements related to the forward lookingoperations of Intex Resources. These assumptions and forward-looking statements are subject to avariety of known and unknown risks, uncertainties and other factors that could cause the actual eventsor results to be materially different from those anticipated in such assumptions and forward lookingstatements and from any future results expressed or implied by such assumptions and forward- forwardlooking statements.Such risks and uncertainties include, among others:(1) the actual timing or results, capital expenditure, plan and construction programs,(2) changes in project parameters as plans continue to be refined,(3) possible variations in grade and ore densities or recovery rates,(4) failure of plant, equipment or processes to operate as anticipated,(5) risks and uncertainties existing in world capital markets generall ncertainties e isting orld generally.There can be no assurance that the assumptions and/or forward-looking statements will prove to beaccurate as actual results and future events could differ materially from those anticipated in suchstatements. Except as may be required by applicable law or stock exchange regulation, the Companyundertakes no obligation to update publicly or release any revisions to these forward-lookingstatements to reflect events or circumstances after the date of this document or to reflect theoccurrence of unanticipated events. Accordingly, readers should not place undue relianceon the assumptions or forward-looking statements.
  3. 3. Mindoro Nickel L Mi d Ni k l Laterite i • The Nickel laterite deposit in Mindoro was found and developed by Intex and its Philippine affiliates • Over 300 mill tonnes total laterite resources, defined to date, holds 2.6 mill tonnes Ni (5 bn Lb Nickel) • Mindoro Nickel today is Manila projected as the potentiallyMindoro largest Ni producer and the Ni-producer only refined Nickel-metal plant in the Philippines from 2013-14 2013 14 2
  4. 4. Drilling Overview • 1,895 holes in DFS resource • DFS Resources and Reserves are f from the th Kisluyan and Buraboy areas only • Additional drilling ongoing - 215 g g holes completed subsequently • Substantial Resources upside3
  5. 5. Resources – Historical Developments Golder‐ Prospect‐ Mindoro Nickel Feb‐2010 Sep‐2009 May‐2009 2007 2006 Mill Mill tonnes Mill tonnes Mill tonnes Mill tonnes tonnes Total Resources 315.1 286.5 200.2 196.0 207.0 Meas. & Indicat.  224.4 224 4 198.9 198 9 92.4 92 4 56.3 56 3 0 Resources Ni‐content (M&I) 1.920 1.713 • The 2009 M&I Resources, calculated by independent contractor to JORC compliance, has been verified by 3-party mining consultants • Todays M&I resources are defined from about 1/3 of the tenement examined to date
  6. 6. Ni- Ni-distribution: Lower Kisluyan AreaLimonite Ni grade within pit Ni-grade Saprolite Ni grade within pit Ni-grade
  7. 7. Proven and Probable Reserves are defined by: less than 15% variabiity at 90% confidence level Lower Kisluyan Quarterly Ni grade variability at 90% confidence level (200x200 m blocks) Lower Kisluyan Annual Ni grade variability at 90% confidence level6
  8. 8. Ore Reserves by Facies Proved & Probable cog Tonnage Nickel Ni Co Ore Reserves %Ni (,000) t tonnes % % LIMONITE 0.75 0 75 59,200 59 200 543,260 543 260 0.92 0 92 0.09 0 09 SAPROLITE 0.85 67,070 655,473 0.98 0.03 Total P&P Reserves 126,270 1,198,733 0.95 0.06• Mine planning shows 97% of the Measured & Indicated Resources are convertible to Proved & Probable Reserves• Ore reserves from Lower Kisluyan and Buraboy deposits only• Mi i costs (all) i USD 4 6 /t (variable t Mining t ( ll) is 4-6 ( i bl transport di t t distance)) Processing costs USD 55-65 /t (limonite and saprolite resp.)
  9. 9. Hydrometallurgical Test Work• Ore Beneficiation pilot plant testing• HPAL – bench scale and continuous pilot plant tests• Atmospheric Leach testing• Saprolite Neutralisation / Pre-CCD Neutralisation• CCD – bench and pilot plant testing• Solution Neutralisation tests• Mixed Sulphide Precipitation tests• Metals Refinery testing• Development of Process Design Criteria and Mass Balance• Flow Sheet Optimization
  10. 10. Composition of Bulk Samplesfor Test Work9
  11. 11. Hydrometallurgical Pilot Plant y g H2SO4 200 kPa Ground Air limestone in saline water Feed PN1 PN2 2000L PN3 PN4BeneficiatedFeed Pulp in ACDSaline Water Surge CCD Wash CCD CCD CCD CCD CCD CCD CCD 1 2 3 4 5 6 7 CCD7 Ground Underflow limestone in – Used for saline water FN testing PR1 SN1 SN Overflow – SN2 SN3 Used for MSP SN4 Testing SN5
  12. 12. Photograph of Pilot Plant Autoclave •6 compartments 6 •32L at T=255°C
  13. 13. Results of Continuous HPAL Pilot-Plant Pilot- 98.5 98.0 ction, % 97.5 97.0 Ni Extrac 96.5 96 5 45 g/L Target FA 96.0 40 g/L Target FA 95.5 95.0 36 g/L Target FA 94.5 1 2 3 4 5 6 7 Compartment (C7 = ACD) 20 min i 60 min i
  14. 14. Test Work Summary• Test work program was performed at a highly reputable metallurgical testing facility (SGS Lakefield laboratories, Canada) using carefully selected bulk sample• The comprehensive test work met all requirements of an Aker Solutions Class-3 (bankable) estimate• Ore demonstrated very fast kinetics for HPAL and ATML with 97-98% recovery in 20 min for HPAL and 2 hrs for ATML• High Nickel and Cobalt extractions recorded for both limonite (HPAL) and saprolite (ATML)-atmospheric leach• Overall acid to ore ratio of 445 kg/t for combined resource (Limonite and Saprolite)• Conservative CCD circuit design for the integrated HPAL/ATML/Saprolite Neutralization discharge slurry
  15. 15. Simplified Overall Flow SheetMindoro Nickel patented flow sheet which combines HPAL withAtmospheric Leach and Saprolite Neutralization before metals extraction – providing four significant products
  16. 16. Ore Preparation Circuits
  17. 17. Leach Plant Configuration ATMOSPHERIC LEACH SAPROLITE NEUTRALISATION COUNTER CURRENT DECANTATION CCD WASH LIQUORSULPHURIC ACID LIMESTONE SLURRYFINE SLURRY FROM FLOCCULANTSAPROLITE ORE ATMOSPHERIC LEACH SAPROLITE NEUTRALISATION TANKS (4) TANKS (6) RESIDUE SLURRY PRE REDUCTIONFEED SLURRYFROM LIMONITEORE PREPARATION H2S H2S INLINE MIXER FINAL NEUTRALISATION PRESSURE ACID LEACHING LIMESTONE SLURRY MILK OF LIME LT SO2 / AIR SO2 / AIR HEATER SOLUTION NEUTRALISATION LIME STONE SLURRY FLOCCULANT ILT HEATER FINAL NEUTRALISATION TANKS (2 x 2) PAL FEED NEUTRALISATION THICKENER NEUTRALISATION TANKS (4) THICKENER RESIDUE STORAGE AREA MILK OF LIME RESIDUE IHT HEATER NICKEL COBALT PRECIPITATION STORAGE DECANT TO SEA FLOCCULANT FACILITY NaHS a S RESIDUAL SURGE TANK HT SULPHIDE HEATER PRECIPITATION VENT TO ATMOSPHERE SULPHIDE SEED CONDITIONING THICKENER TANK H2S H2S SCRUBBERSULPHURIC N2 ACID ACID HP IHP ILP LP BARREN SOLUTION PLANT SULPHIDE PRECIPITATION REACTORS (2 X 4) POLISHING FILTER HP STEAM PAL AUTOCLAVE WATER FLASH VESSELS (4) SULPHIDE PRECIPITATION CCD NICKEL COBALT SULPHIDE PRODUCT RAW WATER TO METALS PLANT SULPHIDE PRECIPITATION BELT FILTER MIXED MIXED SULPHIDE SULPHIDE TOWER MILL REPULP TANK
  18. 18. Benign by Design – Green Nickel Mining?Intex set out to create a project with optimal utilization of allcomponents of the process: from raw materials to end productsand including consumables energy by-products and waste consumables, energy, by productsmaterials21 months of detailed studies and testings were concludedsuccessfully in 2010 by leading international expert contractors:Aker Solutions (project leader) - Golder Associates (Aus) - Snowden MiningIndustry Consultants (Aus) - SGS Lakefield Laboratories (Can), and Philippine y ( ) ( )counterparts, PTCC/FF Cruz and Lichel Technologies among othersThe result was a project which through innovative design andunique process solutions – has unprecedented low carbonemissions and energy footprint and with exceptionally lowenvironmental impact - that it could set a new standard for theindustryi d t
  19. 19. Innovative Solutions provide Nickel Industry’s lowest CO2 footprint• Low-energy hydrometallurgical processing used throughout rather than traditional Ni-pyrometallurgy (- avoids use of fuel oil or coal as no smelting process is required)• Electrical power is CO2-free: over 100 MW is generated from excess steam in the sulfur plant (- avoids use of heavy fuel oil or coal and is hedging energy costs throughout its life time)• Ore haulage is by cable conveyor driven by plant-generated electricity; ( avoids use of diesel CO2-emissions and traffic) (- diesel, emissions• Saprolite is used for acid neutralization rather than limestone; (- minimizes CO2-emissions and limestone import while adding more nickel to processing) The innovative design of Mindoro Nickel provides the smallest CO2-footprint of any existing Nickel processing footprint plant
  20. 20. Innovative Mining and Process solutionsprovide minimum Environmental Impact• Limonite and Saprolite ores are mined and processed in the ratio they occur - minimizes stockpiles and rehandling• Mine plan is defined by natural drainage fields, in separate c.100 ha blocks – minimizes impact on local freshwater flow• Mining is sequential and followed by immediate rehabilitation/ replanting - minimizes the active mine footprint, and simplifies mining operations• Sea water is used for processing; - minimizes use of fresh water• Extensive recycling of heat and water; - minimizes energy budget• Ammonium sulphate fertilizer is produced as a byproduct; - minimizes sulphate in residue products and provides valuable benefits for local agriculture
  21. 21. Definitive F D fi iti Feasibility St d ibilit Study• The t di Th studies show Mi d h Mindoro Ni k l could b a major l Nickel ld be j low-costt producer of refined nickel for decades to come, located close to the worlds most expansive nickel markets• The plant was designed for production of 53,000 t nickel per year processing both limonite and saprolite ore types at an operating cost of USD 2.1 /lb (USD 0.56 /lb after credits) 21 0 56• Exceptional metallurgical properties of the ore provide for cost efficient cost-efficient production with high Ni-recovery and a range of Ni recovery valuable by products including Chromite, Cobalt and Ammonium Sulfate fertilizer• Innovative design allows for simultanous hydrometallurgical processing of limonite and saprolite ores, followed by saprolite neutralisation, p p , providing minimal CO2-emissions g and energy use20
  22. 22. DFS Key Figures – and EstimatesLife of Mine (minimum- at current reserves) 22 yearsRun of Mine (dry tpa) 6.04 million tonnesPlant feed grade ~ 1.0% NiDirect operating cash costs* USD 2.11/lb NickelDirect operating cash costs after credits** p g USD 0.56/lb Nickel /IRR - rate of return (after tax)*** 23.6%NPV at 8% (after tax)*** USD 3,293 millionNPV at 10% (after tax)*** USD 2,375 millionAssumptions: Ni price 8.25 USD/Lb; 20 years Lifeof Mine & CAPEX at USD 2.45 bn* Excluding the government requirements (re excise taxes, IP royalties, environmental and other related expenses, social developmental costs and related expenses, real estate taxes and business taxes)** Credits defined as revenue from sale of cobalt, ammonium sulfate and chromite concentrate*** Inhouse estimates presuming BOI (mining) and PEZA (processing) tax regimes
  23. 23. Additional P d t Additi l Products In addition to 53,000 tpa nickel , p briquettes Mindoro Nickel plans to produce: • 150,000 tpa ammonium sulfate fertilizer - making it one of the Philippines largest fertilizer p pp g plants • 16,000 tpa Co-sulphate salts for the emerging domestic electronic and future car b tt i industry f t batteries i d t • 75,000 tpa metallurgical grade chromite from the ore beneficiation plant • Approx. 110 MW of CO2-free pp electrical power from acid plant22 steam generators
  24. 24. Mindoro Ni k l Cash-C t P j tiMi d Nickel Cash-Cost Projection C h
  25. 25. Comparison with Other Major ProjectsForecast Annual Production lbF A l P d i lbs Reserves 1 2 M of i i nickel R 1.2 Mt f in-situ i k l • Annual production places Mindoro Nickel among the largest nickel projects ( j (left g graph) ) • Today’s Reserves are less than half of the known Resources (2.6 mt)
  26. 26. The Realization of Mindoro Nickel• DFS has demonstrated that a full scale Mindoro Nickel has robust economics and a large potential with many additional benefits• The capex of USD2.5 Bn for the full scale p j p project however is also beyond the capability of an exploration company like Intex• Intex therefore seeks realization of the project through a staged process with much reduced financial and technical risk of individual stages, with an option to expand.• Stage 1 Stage-1 is proposed to be designed around a 3,300 tpd acid plant expected to provide 15-20,00 tpa nickel while maintaining many of the design benefits of the full p j project, but at a much lower financial and technical , exposure.• The company also continues its efforts to invite joint venture partners for the early realisation of his new world class project.25
  27. 27. Postscript - more than technical and financial issues • Modern mining is not only technical and financial issues but equally involves a social engagement and responsibility for affected communities • In a populated areas like Mindoro island, social engagement and community relations are imperative for the successful realization of a mining program • Many people are sceptical to mining, often mining because of insufficient environmental and social considerations in the past and because some operations still cause unwanted impacts • Intex has committed to deliver a project to such high international norms that it may eventually serve as a model for operators and ensure engagement of its local people through new26 opportunities
  28. 28. Local Community Support Projects - 1.500 1 500 people are provided l id d free basic health care - 10.500 10 500 children are improving reading skills through Bright Minds Reading program - 12.000 now have access to clean drinking water - Mangyan community support programs provided - Micro finance programs through Intex Foundation arranged by rural Bank
  29. 29. Potable water systems established y14 community-managed water systemshave been established2,001 households today benefit from thisprogram12,105 individuals can receive 480 ltrseach per day (6x the daily minimumrecommendation of 80 lts per person)Contributions in community health,productivity & micro-watershedrehabilitation
  30. 30. Health ProgramsHospital & clinic service to Mangyans& Tagalogs availed by over 6,000patients ti tFree Medical Mission for adult &children with 1 213 patients 1,213Ambulance service for 32 barangays
  31. 31. Adopt-Adopt-A-School – Bright Minds Read Project 4 Municipalities 298 Grade-1 students and Teachers Training 10,500 Grade-1 pupils have own books
  32. 32. Community Consultations
  33. 33. Agro-Agro-reforestation Programs
  34. 34. Training for Tree-based Farming Tree-
  35. 35. Information & Education Campaign
  36. 36. Intex Corporate Overview• Intex Resources ASA is a modern mineral  exploration company focused on projects in the  exploration company focused on projects in the North Atlantic region and the Philippines• Intention to grow via development of own  projects, new discoveries and acquisitions projects new discoveries and acquisitions• The company is well funded – Cash at hand  NOK ~  225 million (USD 38 million) pr.  Jan. 2011 • Experienced management and exploration team  E i d t d l ti t with successful track record of discoveries and  project development• Range of quality projects in portfolio R f lit j t i tf li – World class Ni‐laterite deposit in the  Philippines at Feasibility Stage – E Europes largest Molybdenum deposit in  l t M l bd d it i Norway at Pre‐feasibility stage  – Diamond discovery in Greenland at target  definition and mini bulk sampling stage  definition and mini bulk sampling stage – Several promising grassroots exploration   projects and development targets 
  37. 37. Market Overview (pr. February 2011)• Listed on the Oslo Stock Exchange  since December 2006 (OSE: ITX)• Shares  – outstanding: 91.7 mill – options: 7.3 mill – fully diluted: 99 mill• Market capitalization: NOK 460  p million (USD 90 mill)• Current share price: NOK 5.00 (USD  0.86)• Top‐20 shareholders hold 62%• 21.7% owned by Lybica Holding BV  (OAO Severstal) (OAO S t l)• New Board of Directors appointed in  Nov‐2010• New Management appointed in Jan‐ 36 2011
  38. 38. MINDORO NICKEL Thank you  y Please come see us at Booth C-01 Mindoro Nickel & Intex Resources
  39. 39. Intex Resources ASAMINDORO NICKEL Contact Data sheet: Jon Steen Petersen CGeol Eurgeol, MSc, FGS; Petersen, CGeol. Eurgeol MSc CEO/COO email:jsp@intexresources.com cell:+45 3112 9767 (int) Tel: +6392 0957 0860 (Phil) +47 2311 3344 (Oslo) web: www.intexresources.com & www.intexresources.com.ph Oslo office: Munkedamsveien 45A 8F, 0250 Oslo, Norway. 8F Oslo Norway Tel: +47 2311 3344 Fax +47 2311 3345 Manila Office: Wynsum Corp Plaza 20F, Ortigas Jr Rd, Ortigas Centre, Pasig City, Th Phili i P i Cit The Philippines. T l +632 6874161 Fax:+632 6874299 Tel: F +632

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