DISCUSSION PANEL: The Recent Developers. Transitioning from discovery to developing a mine in a changing market. Panelists will discuss the projects and their unique solutions for developing mines.
Nicola Mining Inc. Corporate Presentation May 2024
2015 Broken Hill Resources Investment Symposium - Discussion Panel - The Recent Developers
1. Welcome to the Recent Developers session
“Transi5on from discovery to developing
a mine in a changing market”
Session 4, Monday 3.30pm
Resources
Investment
Symposium
Broken
Hill
2. Apprecia5on to the sponsor of this session; the
NSW Minerals Council
“The
NSW
Minerals
Council
is
the
leading
industry
associa@on
represen@ng
the
state’s
minerals
industry,
providing
a
united
voice
for
it’s
members.
Mining
has
and
will
con@nue
to
be
a
key
economic
driver
for
NSW.
That’s
why
the
NSW
Minerals
Council
works
closely
with
government,
industry
groups
and
business
and
community
leaders
to
foster
a
sustainable
mining
industry
in
NSW.”
website
www.nswmining.com.au
3. Introducing Michael Beer
Director
and
founder
of
Melbourne
based
Beer
&
Co.
Michael
is
a
chartered
accountant
and
Company
Secretary
Had
a
range
of
senior
financial
roles
at
BP,
then
worked
closely
with
Robert
de
Crespigny
at
Normandy
Mining
for
5
years
before
heading
up
the
Corporate
Finance
team
at
Johnson
Taylor
Po=er
(Bell
Po=er)
between
1996-‐2001.
2002-‐2007,
MD
of
Range
River
Gold,
leading
it
through
its
IPO
and
then
acquiring
gold
explora@on
tenements
in
the
Pilbara,
taking
a
project
through
Explora@on
and
Feasibility
to
construc@on
of
a
heap
leach
gold
mine,
to
become
a
gold
producer.
Since
then
Michael
has
worked
in
stockbroking
corporate
finance,
focusing
on
small
mining
companies,
in
capital
raising
and
corporate
advisory
at
Intersuisse,
which
subsequently
became
part
of
Phillip
Capital.
Beer
&
Co.
has
been
established
as
a
bou@que
financial
services
firm
focused
on
the
broader
financing
needs
of
small
to
mid
size
mining
and
explora@on
companies,
including
corporate
advising
and
tapping
finance
sources
in
addi@on
to
public
equity.
4. Introducing John Deniz
Managing
Director,
Paragon
Funds
Management
John
has
a
depth
of
industry
experience,
including
10
years
in
financial
markets.
Prior
to
entering
the
finance
industry,
John
held
senior
posi@ons
as
an
Engineer
within
leading
global
organisa@ons
including
Jacobs
Engineering
and
AMEC,
where
John
designed
and
project
managed
various
large-‐scale,
greenfield
capital
projects
across
Asia
Pacific
and
the
EU.
Prior
to
establishing
Paragon,
John
spent
4
years
at
Eye
Management,
a
global
resources
absolute
return
fund.
He
was
a
key
member
of
the
Investment
Management
team,
focusing
on
Australian
Long-‐Short
Equi@es.
Paragon
Funds
Management
is
an
Australian
absolute
return
fund
manager
that
serves
both
wholesale
and
retail
investors.
“By
adop@ng
a
high
convic@on
research
driven
strategy
that
can
profit
from
rising
and
falling
share
prices,
Paragon
aims
to
provide
its
clients
with
excellent
long
term
returns
regardless
of
market
performance.”
5. Introducing Hedley Widdup
Hedley
Widdup
graduated
as
a
geologist
from
Melbourne
uni
in
2000.
He
joined
WMC
Resources
as
a
geologist
&
worked
at
the
Mt
Keith
Nickel
Mine.
Hedley
has
extensive
experience
as
a
mine
geologist
having
worked
at
Olympic
Dam,
Mt
Isa
and
the
St
Ives
Gold
Mine
where
he
was
Senior
Mine
Geologist
of
the
combined
open
pits.
Hedley
joined
Lion
Manager
in
July
2007
as
an
analyst
and
completed
a
Graduate
Diploma
in
Applied
Finance
in
2011.
Hedley
became
an
Execu@ve
Director
of
Lion
Manager
Pty
Limited
in
September
2012.
The
Lion
Selec@on
Group
was
founded
in
1997
to
invest
in
the
broad
but
poorly
understood
sub-‐sector
of
junior
mining
resources
companies.
The
name
Lion
Selec@on
Group
Limited
was
chosen
as
a
name
to
reflect
the
culture
and
philosophy
of
the
organisa@on:
Ø Lion
–
watchful,
aggressive
and
searching.
Ø Selec@on
–
carefully
picking
opportuni@es
and
people
and
backing
them.
6. Introducing Mark Gordon
Mark
graduated
as
a
geologist
from
the
CCAE
and
ANU
in
1990.
Aeer
ini@ally
working
as
an
explora@on
geologist
with
MIM
Explora@on
on
Copper
Hill
and
the
Georgetown
Inlier,
he
then
spent
most
of
the
next
12
years
overseas,
including
Namibia,
Greece,
Oman
and
The
Philippines.
He
has
subsequently
worked
as
a
mining
analyst,
firstly
with
Taylor
Collison
in
Sydney,
and
now
with
Breakaway
Research
where
he
covers
junior
to
mid-‐cap
explorers
and
developers
in
a
broad
range
of
commodi@es
and
jurisdic@ons.
7. Projects referenced
• Aurelia
Metals:
Hera
Project,
NSW
New
Cu,
Pb,
Zn,
Au,
Ag
Underground
Mine
and
Plant
commissioned
• Alkane
Resources:
Tomingley
Project,
NSW
New
Cu,
Pb,
Zn,
Au,
Ag
Underground
Mine
and
Plant
commissioned
• Sirus
Resources:
Nova
Nickel
Project,
WA
Funding
arranged
and
infrastructure
commenced
for
globally
significant
Ni
mine.
• Hancock
ProspecPng:
Roy
Hill
Fe
Project,
WA
One
of
world’s
largest
mine
and
intergrated
transport
investment
nearing
comple@on.
• Australian
Zircon:
WIM
150
Heavy
mineral
project,
VIC
Innova@ve
processing
delivers
posi@ve
BFS
for
world’s
largest
zircon
deposit.
• Havilah
Resources:
PorPa
Gold
Mine,
SA
Ground
breaking
profit
sharing
deal
with
BH
Contractor
Consolidated
Mining
&
Civil
8. Hera Project, Aurelia Metals Ltd (AMI)
• 100%
owned,
high-‐grade
underground
Hera
gold-‐lead-‐
zinc
project
in
central
NSW.
• Aurelia
achieved
first
produc@on
in
the
September
quarter
of
2014,
and
commercial
produc@on
on
1
April
2015.
• Scaling
up
to
average
produc@on
of
>
50kozpa
Au
Eq.
over
ini@al
mine
life
of
7.3
years
• 3.2Mt
@
3.75
g/t
Au,
33.4
g/t
Ag,
3.5%
Pb
and
4.6%
Zn
• The
Hera
Mine
produces
gold
and
silver
doré
bars
by
gravity
and
concentrate
leach
and
also
produces
a
high-‐
grade
bulk-‐lead-‐zinc
concentrate
for
sale.
Aurelia
is
also
evalua@ng
the
Nymagee
copper
deposit
with
a
view
to
demonstra@ng
an
integrated
development
of
the
Hera
and
Nymagee
deposits.
9. Tomingley Project,
Alkane Resources
• Located
north
of
Parkes
in
central
West
NSW
• Resource
~830,000oz
of
gold
• Construc@on
CAPEX
A$116M
• Mine
Method;
open
cut
&
underground
• Mine
Life;
7.5
years
(targe@ng
10+
years)
• Processing
plant
throughput;
1.0Mtpa
• 2.00g/t
Au
and
93%
recovery
standard
CIL
• Gold
Produc@on
~400,000oz
over
base
case
life
• Cash
opera@ng
costs
es@mated
and
averaged
over
base
case
life
~A$1,000
-‐
$1,100/oz
• Gold
produc@on
commenced
February
2014,
• FY15
at
31
March
2015
Tomingley
produced
~55.5k
ounces
10. Nova Nickel Project, Sirus Resources
• Nova
is
a
major
nickel-‐copper
sulphide
deposit
• Resources
total
14.2Mt
of
2%
Ni
and
0.8%
Cu
• Mine
plan
for
a
10
year
ini@al
mine
life
@
1.5mtpa
produc@on
rate
mainly
from
sublevel
open
stoping
underground
• High
tonnes
of
Ni
per
ver@cal
metre
(>500).
•
DFS
forecast
all-‐in
sustaining
cash
cost
of
US
$2.09/lb
(12th
lowest
cost
producer
in
the
world
&
significantly
lower
cost
than
any
other
Australian
nickel
producer).
• Mining
started
on
26th
January,
exactly
2.5
years
aeer
discovery
11. Roy Hill, Hancock Prospec5ng
• Planned:
• Conven@onal
open
pit,
bulk
mining
opera@on
from
mul@ple
produc@on
benches
• 55Mtpa
wet
processing
plant
• 344
kilometre
single
line,
heavy
haul
railway
• Purpose
built,
two
berth
iron
ore
port
facility
at
Port
Hedland
• >2.3bt
of
+50%
Fe
iron
ore
of
which
1.2bt
is
+55%
Fe,
lom
>20
years
• First
shipment
of
ore
for
export
in
late
2015?
115km
north
of
Newman,
Roy
Hill
is
a
world-‐class,
low
phosphorus,
Marra
Mamba
iron
ore
deposit
located
in
the
Pilbara.
12. WIM150, Australian Zircon NL (AZC)
• Extensive
WIM150
Mineral
Sands
Project
near
Horsham
in
western
Victoria.
• The
proposed
WIM150
project
which
will
create
more
than
500
jobs
during
a
60
year
mine
life
of
10mtpa.
• Comple@ng
an
Environment
Effects
Statement
• Construc@on
planned
for
2017
with
mining
in
2018
• Resources
total
550Mt
@
4.3%
HM
(21.6%
zircon,
11.7%
ru@le,
31.7%
ilmenite,
5.9%
leucoxene
+
monazite,
xeno@me),
• Joint
Venture
-‐
AZC
is
in
JV
with
Orient
Zirconic
Resources
(Australia
Pty
Ltd).
• WIM150
CharacterisPcs
-‐
Shallow
deposit,
low
strip
ra@o,
long
mine
life
(55-‐160
years,
reserve-‐resource),
close
to
infrastructure
and
services.
• Issues
–
grainsize
(Austpac’s
synru@le
and
agglomera@on),
water,
land
use
and
community/farming,
radioac@vity,
CAPEX.
13. Por5a Gold Project, Havilah Resources (HAV)
• Por@a
Gold
Project
in
eastern
SA
(small
67,000oz
Au),
high
grade,
near
surface
gold
project
which
does
not
require
cyanide
processing.
• Deal
with
transport
and
earthmoving
contractor,
Broken
Hill’s
Consolidated
Mining
&
Civil
where
CMC
bears
the
cost
of
moving
overburden
(~$20m).
• In
return
CMC
receive
half
of
the
profits
(~$39m).
• Chris
Giles
(HAV
MD)
“within
18
months
HAV
can
generate
an
income
equivalent
to
HAV
market
cap”
• Will
help
provide
support
for
HAV’s
larger
Kalkaroo
project
(622,00t
Cu,
2m
oz
Au),
CAPEX
es@mates
($83m-‐$340m)
14. Pringle’s confused thought process
Known
deposit/
prospect
New
discovery
UNKNOWNS
or
VARIABLES
1. Technology
Geophysics
Geochemistry
metallurgy
2. Metal
Prices
World
economy
New
tech
applica@ons
Supply
&
demand
3. Loca@on/access
Infrastructure
Workforce
Power,
water
KNOWNS
(“back
to
the
Future”
projects)
Explora@on
poten@al/
upside/
discovery
WIM
150
PorPa
Au
Nova
Ni/Cu
Re-‐discovery
Tomingley
Hera
Roy
Hill
15. Four ques5ons for the panel
• What,
makes
each
of
the
very
different
projects
a=racPve
(or
less
a=racPve)?
• What
do
you
look
for
in
a
developing
project
that
will
help
ayract
investment?
• How
could
your
organisa@on
assist
each
of
these
companies/
projects?
• What
“general
remarks”
would
panelists
make
towards
retail
investors
looking
at
junior
resources
companies
and
what
they
should/could
look
for,
par@cularly
in
the
current
low
ebb
of
mining
market
sen@ment
and
generally
depressed
commodity
prices.