Australian Vanadium Limited · ASX:AVL
Australian Vanadium — Yellow Rock Resources — Investor Presentation (July 2014)
20 slides from Australian Vanadium's investor presentation, July 2014
Slide 1: Gabanintha Vanadium Project Investor Update
Yellow Rock Resources Ltd (ASX Code: YRR) GABANINTHA VANADIUM PROJECT INVESTOR UPDATE July 2014 Lorry Hughes BSc (Geology) MAusIMM Chief Executive Officer 1
Slide 2: Disclaimer
Disclaimer The views expressed in this presentation contain information derived from publicly available sources that have not been independently verified. No representation or warranty is made as to the accuracy, completeness or reliability of the information. Any forward looking statements in this
Slide 3: Summary
Summary Focus and Corporate Strategy Recent Activity Key Statistics Ordinary shares on issue 428.5m • Appointment of new CEO in June 2014; Options on issue ($0.015 - 319.5m (230m expire • Rights Issue Shortfall Placement (To be completed by 8 th $0.06 exercise price) Nov 2014) August); Share price A
Slide 4: Vanadium Uses: Hi-Tech Metal – Steel, Chemicals and Energy Storage
Vanadium Uses Hi-Tech Metal – Steel, Chemicals and Energy Storage • Vanadium is a ductile transition metal with good structural strength, a natural resistance to corrosion and stability against alkalis, acids and salt water; • Vanadium is highly resistant to corrosion and is a common alloy in steel
Slide 5: Vanadium Demand & Production
Vanadium Demand & Production Significant Consumption Growth Vanadium Production (MT) Regions 2013 2012 2011 Growth % China 43,500 37,500 38,100 14.17% Nth America 4,431 3,908 3,937 12.55% Europe/S.A./Russia/Kazak 28,103 26,181 31,429 -10.58% Aust/NZ/Japan/Taiwan/Korea 2,500 2,800 2,000 25.00% India
Slide 6: Vanadium in Steel - Demand Drivers
Vanadium in Steel - Demand Drivers Global Steel Quality Improving Vanadium Usage/MT Steel 0.10 0.09 64 MT V2O5 0.08 0.07 Kg V per MT of Steel 0.06 0.05 13 MT V2O5 0.04 0.03 0.02 0.01 0.00 Nth America West Europe FSU/CIS China Steel Producing Region Source; Vanitec 6
Slide 7: Vanadium in Energy Storage
Vanadium in Energy Storage Potential for Huge Growth in Vanadium Demand Vanadium Redox to Lithium Battery Comparison Vanadium Lithium Lifespan 35-50 years 3-5 years Low self-discharge Yes No Low environmental footprint Yes No Highly expandable Yes No Generates low levels of heat Yes No Charges and d
Slide 8: Vanadium in Energy Storage Cont’d
Vanadium in Energy Storage Cont’d Potential for Huge Growth in Vanadium Demand Production by Source ~ Cost of Production % of V2O5 Source Total US$/lb US$/kg Slag 56 1.30 2.87 V ores 30 2.10 4.63 Secondary 14 4 - 11.00 8.82 – 24.25 Current Pricing US$/lb US$/kg V2O5 (98.5%) 5.70 - 6.80 12.57 – 15.00
Slide 9: Gabanintha Vanadium Project
Gabanintha Vanadium Project Favorable Mining Jurisdiction • 100% owned high-grade vanadium project located in the Murchison District of Western Australia, ~600km from the port of Geraldton and ~200km from the Windimurra Vanadium Mine; • One of the highest grade V2O5 deposits in the world; – *JORC Co
Slide 10: Geological Resource
Geological Resource Large High-Grade Resource JORC In situ Million Material Resource bulk V2O5 % Fe% TiO2 % SiO2 % Al2O3 % LOI% tonnes Class density High Indicated 14.4 4.17 1.03 42.14 12.07 11.42 7.84 3.37 grade Inferred 46.0 4.16 0.97 42.15 11.19 12.37 8.28 3.20 Subtotal 60.4 4.16 0.98 42.15 11.40
Slide 11: Geological Resource Cont’d
Geological Resource Cont’d High-Grade Zone, Simple Geometry Two distinct zones of mineralization – a basal, massive, high grade zone and a lower grade upper disseminated zone have been identified. 11
Slide 12: Gabanintha Vanadium Project Cont’d
Gabanintha Vanadium Project Cont’d A Development Project • Mineralisation outcrops for over 12km; • Dips 60o to west; • Mineralisation is up to +100m wide in places and continuous; • Simple and inexpensive mining costs; • Strong potential to extend resource at depth; • Significant historic and moder
Slide 13: Magnetic Separation Test Work
Magnetic Separation Test Work Initial Results Encouraging Sample Wt. Distrib V2O5 Fe SiO2 TiO2 Fraction Details % Grade % Distrib % Grade % Distrib % Grade % Distrib % Grade % Distrib % Calc Feed 100 1.27 100 54.8 100 2.04 100 13.20 100 GRC 53 HG Conc 90.8 1.37 97.6 58.0 96.1 0.58 25.8 12.30 84.7 Fr
Slide 14: Gabanintha Vanadium Project Cont’d: Initial Concept Study
Gabanintha Vanadium Project Cont’d Initial Concept Study Shows The Potential • Historic Focus – Concept studies conducted in 2009 demonstrated a vanadium operation to produce ferro- vanadium (FeV80) via a roast-leach process at Gabanintha is technically and commercially feasible; – Lower Capex optio
Slide 15: Strategic Partners
Strategic Partners Industry tie-ups with end users • Yellow Rock recognises the importance of partners to assist with the advancement of the Gabanintha Vanadium Project and has commenced engagement and technical information sharing with potential strategic groups within the Vanadium industry; • Thes
Slide 16: Market Capitalisation
Publicly Listed Peers Undervalued Compared to Peers Emerging Vanadium Company Market Capitalisations 350 300 250 Market Capitalisation 200 (AUD) 150 100 50 0 BRD.AX YRR.AX IRC.AX RTA.AX KRC.AX ACP.AX EGZ.TO AVC.V TNG.AX ATI.AX LGO.V SYR.AX Black Ridge Yellow Rock Intermin Rutila King River Audalia E
Slide 17: Next Steps
Next Steps Strong News Flow • Complete Shortfall Placement by 8th August 2014; • Finalise scope and tender process for an updated metallurgical testwork program targeting specific ore types and specific high grade locations within resource to unlock potential - 8th August 2014; • Finalise scope to c
Slide 18: For Further Information Contact
For Further Information Contact (ASX Code: YRR) Lorry Hughes BSc (Geology) MAusIMM Chief Executive Officer Telephone: +61 (08) 9227 6300 Facsimile: +61 (08) 9227 6400 Email: [email protected] Website: www.yellowrock.com.au Office Location: 420 Newcastle Street West Perth, Western Australia 6
Slide 19: Appendix: Copper and Gold
Appendix Copper and Gold • Highly prospective package of mafic/ ultramafic volcanics and intrusives of the Gabanintha Formation; • Recent RC drilling discovered significant new copper and gold mineralisation at the Yagahong North Cu-Au Tumblegum South Prospect including; New Deposit (MMY.V) acquisit
Slide 20: Appendix: Copper and Gold
Appendix Copper and Gold • Located along strike from the Burnakara Gold Project (MMY.V); • Highly prospective >5km long Au in soil anomaly over the Federal Bassett Shear Zone; • First –pass aircore drilling by EMU Nickel produced best results of; – Hole WKAC98 intersected anomalous gold (42m @ 78ppb
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