New Age Exploration Limited · ASX:NAE
New Age Exploration — Technical Presentation (October 2014)
20 slides from New Age Exploration's technical presentation, Oct 27, 2014
Slide 1: Lochinvar Scoping Study Results
Lochinvar Scoping Study For personal use only Results Investor Presentation 27th October 2014
Slide 2: Investment Highlights
Investment Highlights NAE owns 100% of Lochinvar, a low cost coking coal project, ideally located to supply UK For personal use only and European steel mills with immediate access to existing rail and port infrastructure NPV9 US$263 M Strong Economics1 IRR 20% US$70/t Low Opex2 1st Quartile High Mar
Slide 3: Geology
Geology Recently completed drilling confirms the potential of Lochinvar coal to underpin a For personal use only long life, high margin project • Scoping Study based on mining Nine Foot Seam only • Nine Foot Seam - average 2.2m thickness • Mining planned between 210m and 1,000m depth • Seam dips sui
Slide 4: Resources – Building the Inventory
Resources – Building the Inventory Since grant of the Lochinvar Licence in June 2012, NAE has moved quickly to define a For personal use only maiden Inferred Resource in Oct 2013 and then an Indicated Resource in August 2014 Lochinvar Resource Summary 1 (August 2014) Coal Indicated Inferred Total Se
Slide 5: Scoping Study - Outline
Scoping Study - Outline Project Outline Leading Consultants in Specialist Areas For personal use only Mining Section Consultant Scope of Work • Modern underground longwall mine • Resource estimate Lead • Mine design • Development via 3 continuous miners • Capex & opex estimates Technical • Single dr
Slide 6: Mine and Infrastructure Layout
Mine and Infrastructure Layout For personal use only Railway Siding Final Product Stockpile Reject Stockpile CPP Reject Storage Car Park ROM Stockpile Office / Workshops Laydown Area Substation Drift Portal 6
Slide 7: Mining
Mining Mining Parameters Preliminary Mine Layout For personal use only ROM Life of Mine: 47.3 Mt (Run of Mine) Average Production: 1.9 Mtpa Access & Ventilation • Drift: 1 in 8 gradient, 1,700m x 6m, TBM dug, roof supported conveyor • Men and materials vehicular access via drift • Ventilation: 5m ve
Slide 8: Production
Production Production Assumptions Production Schedule For personal use only • All longwall moves included in schedule • Productivity de-rated for: – Seam height – Depth – Geological structure – Roof and floor conditions – Gas management – Mechanical availability • Palaris productivity estimates base
Slide 9: Coal Processing
Coal Processing 71% 1 Life of Mine: 33.7 Mt For personal use only High Yield Clean Coal Average ROM to Clean Coal Average Production: 1.4 Mtpa Coal Processing • 60 kt capacity ROM stockpile fed by mine conveyor, front end loader feeds crusher • 400 t/h wash plant to handle up to 2.5 Mtpa, upgraded l
Slide 10: Infrastructure
Infrastructure Simple and low cost development due to excellent transport and other infrastructure For personal use only in place. Minimal development impact on primarily agricultural land RAIL PORT OTHER 7km to the West Coast Main Line Two Preferred Export Options 5km to Gretna Substation Access to
Slide 11: Coal Quality and Pricing
Coal Quality and Pricing Lochinvar has high value in use vs competing coals supplying UK and European steel mills. Exceptionally low ash product For personal use only Inherent Volatile Total Ash P Max Product Moisture Matter Sulphur CSN CSR Ro. Max Source (%) (%) Fluidity (%) (%) (%) Lochinvar Indic
Slide 12: Market for Lochinvar Coal
Market for Lochinvar Coal Unique Market Benefits For personal use only • Lochinvar average annual production of 1.4Mtpa <5% total UK/Europe coking coal imports – UK (2013) imported 6.2Mt1 of coking coal for 11.9Mt of steel – Europe (2013) imported 21.6Mt1 of coking coal for 85.9Mt of steel • Lochinv
Slide 13: Project Economics
Project Economics Lochinvar delivers excellent returns on investment in a low risk country with lowest quartile operating costs and a low construction cost For personal use only Valuation Summary LOM Cash Costs (US$ Millions) Production Life-of-Mine (LOM) ROM Mt 47 LOM Saleable Coal Mt 34 Life of Mi
Slide 14: Operating Costs
Operating Costs Operating Costs - Low Cost / High Margin US$/Tonne Clean Coal For personal use only Cost Area US$/t ROM US$/t Clean Coal Development 5.8 8.1 Longwall 10.2 14.4 Outbye 8.1 11.4 Technical Support 3.5 4.9 Operations Support 3.9 5.5 ROM Cash Costs 31.6 44.4 Coal Handling & Processing 6.8
Slide 15: Capital Costs
Capital Costs Capital Costs – Low development capital Capital Intensity – Recent peer coal projects1 For personal use only Category Capital Estimate (US$ M) Drift and Shafts 50.7 Development Units 41.2 Lochinvar Underground Infrastructure 37.6 Capitalised Development 14.9 Total Underground Developme
Slide 16: Indicative Schedule
Indicative Schedule For personal use only 2015 2016 2017 2018 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Exploration Access and Approvals Seismic Survey Exploration Drilling and Coal Analysis Environmental Impact Assessment Pre-Feasibility Study Definitive Feasibility Study Planning Approvals a
Slide 17: Summary
Summary For personal use only • Bottom of cost curve Low Cost • Low UK royalties, labour costs and taxes • Short rail distance to UK customers and export ports • 7km to existing rail network Adjacent to Infrastructure • Available rail and port capacity – take or pay contracts not required • 26.8Mt o
Slide 18: Board and Company Summary
Board and Company Summary ASX Code : NAE Gary Fietz - Managing Director For personal use only Geologist with 25+ years experience in exploration, business Share Price : A$0.015 (23 October 2014) development and project evaluation. Previously VP Iron Ore Business Development with BHP Billiton. Ordina
Slide 19: Disclaimer
Disclaimer Disclaimer Competent Persons Statement - Lochinvar Resources: The Resources estimate is based on information compiled by Dr John Bamberry, who is a Member of the Australasian Institute of Geoscientists (Member No. 4090). Dr Bamberry is General Manager of Geological Services of Palaris. He
Slide 20: Lochinvar Coking Coal Project
Lochinvar Coking Coal Project For personal use only “A New Age of coking coal for the UK” New Age Exploration Limited Telephone: + 61 3 9620 9931 Email: [email protected] Web: www.nae.net.au
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