Elevate Uranium Ltd · ASX:EL8
Elevate Uranium — Marenica Energy — Investor Presentation (June 2013)
24 slides from Elevate Uranium's investor presentation, June 2013
Slide 1: Unlocking the potential of major global surficial uranium deposits
Unlocking the potential of major global surficial uranium deposits Creating value from a technological processing breakthrough Investor Update – June 2013 1
Slide 2: Disclaimer and Important Information
Disclaimer and Important Information Disclaimer ! This presentation has been prepared by Marenica Energy Limited (MEY) for general information purposes only. The presentation is not and should not be considered as an offer or invitation to subscribe for or purchase any securities in MEY. No agreemen
Slide 3: Marenica Energy – Snapshot
Marenica Energy – Snapshot ! Listed uranium explorer and developer (ASX: MEY) ! MEY’s large-tonnage, low-grade Marenica deposit in Namibia has underpinned the successful development of a new processing technology: U-pgrade ! Proprietary U-pgrade technology, with provisional patent, is applicable to
Slide 4: Corporate Summary
Corporate Summary ! Shares on issue: 748.1M ! Convertible notes: $2M ! Options on issue: 37M ! Market capitalisation: $4.5M* ! Share price: 0.6c* * As at 4 June 2013 Key Assets Board & Management ! Marenica Uranium Project, Namibia (75%) ! Robert Pearce, Chairman ! New U-pgrade uranium processing !
Slide 5: Marenica – An Abridged History
Marenica – An Abridged History ! Acquired the Marenica uranium deposit in Namibia in 2006 – a large, low-grade project located in the emerging Damara uranium province ! Completed a Scoping Study based on a potential heap leach operation in 2011 – but unable to justify economic development ! New oppo
Slide 6: The Catalyst: Marenica Project
The Catalyst: Marenica Project • Large-scale uranium deposit – *276Mt @ 94ppm U3O8 for 57Mlbs U3O8 • Located in world-class Damara uranium province – world’s 4th largest uranium producing region • A technical review of the deposit has driven the development of a breakthrough processing technology Ne
Slide 7: The Driver: A Powerful Technical Team
The Driver: A Powerful Technical Team Marenica’s metallurgical specialists…and innovators • Doug Buerger, Chairman • +40 years experience in exploration and project development (Namibian born) • Gary Johnson • Developed and commercialised Activox® nickel leach technology, ex Rossing • John Farrow •
Slide 8: Quality Technical Partner: CSIRO
Quality Technical Partner: CSIRO Technical partnership and support from Australia’s CSIRO (Commonwealth Scientific and Industrial Research Organisation) • Partnership and technical collaboration driven by John Farrow (CSIRO Perth) • A member of the Technical Steering Committee (TSC) • World expert i
Slide 9: The Market Opportunity
The Market Opportunity ! Global uranium market has strong underlying supply/demand fundamentals, despite the current low spot price ! Demand is expected to exceed supply once Russia’s 20-year deal to sell recycled uranium warheads expires this year (up to 25Mlbs of annual supply removed) ! Major min
Slide 10: The Technology: A Brief Overview
The Technology: A Brief Overview • Opportunity arose from the characteristics of the uranium ore at Marenica: • Exceptional bench scale testwork outcomes achieved when applied to Marenica deposit: • Grade of process leach feed is 60 times greater than mined ore • Plant feed grade of 94ppm U3O8 incre
Slide 11: The Opportunity: Uranium Mineralogy
The Opportunity: Uranium Mineralogy ! Carnotite is the single uranium- bearing mineral (uranium oxide) at Marenica ! Well-formed carnotite crystals (white), typically in distinct size range = 5-125µm ! Generally occur as discrete particles within clay-mica matrix conglomerates – well liberated ! Scr
Slide 12: Carnotite Particles
Carnotite Particles ! Carnotite (shown as red) is generally very well liberated from waste (shown as blue or green) ! Carnotite particle size 5-125µm ! These characteristics underpin the unique opportunity to upgrade QEMSCAN Result -38/+20µm Particles containing Carnotite Carnotite is extremely well
Slide 13: Uranium Liberation (-125µm Particles)
Uranium Liberation (-125µm Particles) 100 90 80 Mass % in Fraction Liberated 70 Channel Ore -125 µm Carnotite Liberation 60 -125/+63 50 -63/+37 40 -37/+20 30 -20/+10 20 -10 -10 corrected* 10 0 0% 100% <= 10% <= 20% <= 30% <= 40% <= 50% <= 60% <= 70% <= 80% <= 90% < 100% Liberation Class 13
Slide 14: Uranium in Distinct Size Band (Post Scrubbing)
Uranium in Distinct Size Band (Post Scrubbing) 400 350 ! Very low uranium grades 300 in coarse size fractions 250 >125µm U3O8 Grade (ppm) 200 ! Concentration of uranium in <125µm fractions 150 ! Very high distribution of uranium in <125µm 100 50 fractions 0 -‐10 +10 +20 +38 +63 +125 +150 +180 +212
Slide 15: Upgrade Options
Upgrade Options Process Comment Wet Scrubbing Wash conglomerates Screening Separate low grade coarse Carnotite SG 4.2 compared to bulk of gangue Gravity Separation minerals at 2.5-2.7 Carnotite in size range for flotation or float Flotation gangue minerals Upflow classification Possible exploitation
Slide 16: Upgrade by Heavy Media Separation
Upgrade by Heavy Media Separation ! -125+63µm size fraction Weight U U Product Dist. Assay Dist. ! TBE (tetrabromoethane) Heavy (%) (ppm) (%) Media Separation (SG 2.97) Heavies (SG >2.97) 1.1 14,900 93.5 ! High distribution of uranium in Middlings (SG ~2.97) 1.6 100 0.9 heavies confirmed high degree
Slide 17: Concentrate Treatment Options
Concentrate Treatment Options Process Comment Conventional approach for high carbonate ores 90ºC Alkali Leach - Necessary due to high acid consumers in host rock Options for concentrate - Rejection of acid consuming gangue in upgrade process Acid Leach - Massively reduced mass for leaching Offsite L
Slide 18: Technical Comparison
Technical Comparison A comparison of the new U-pgrade process compared with conventional heap leach and tank leach processes…. U-pgrade Description Unit Heap Leach Tank Leach Process Mining Rate ktpa 20,000 20,000 20,000 ktpa 10,000 3,000 200 Leach Feed U3O8 Grade 170 470 >5,500 U3O8 Production klb/
Slide 19: Financial Comparison
Financial Comparison The new U-pgrade Process delivers a significant improvement in potential project economics… U-pgrade Description Unit Heap Leach Tank Leach Process US$/t ore 2.15 2.15 2.15 Mining Operating Costs US$/lb* 17 15 16 Process Plant US$/lb* 76 64 33 Operating Costs Total Operating US$
Slide 20: Estimated Process OPEX Costs
Estimated Process OPEX Costs 35 30 25 Potential OPEX Cost reduction at higher grades Process OPEX Cost (US$/lb) 20 Marenica 15 10 3 Mlb/a 5 5 Mlb/a 10 Mlb/a 0 0 100 200 300 400 500 600 700 800 900 1,000 U 3 O8 Head Grade (ppm) 20
Slide 21: A Global Opportunity
A Global Opportunity ! U-pgrade Process developed out of necessity, but creates an exciting global business opportunity ! Can be applied to other major calcrete-hosted uranium deposits ! Provisional patent in place ! Preliminary discussions underway with owners and operators of other similar uranium
Slide 22: Next Steps…
Next Steps… ! Stage 1: 6-month test work programme ready to commence June 2013 ! Aimed at de-risking and increasing confidence level in the success of upgrading and optimising the flowsheet: ! Flowsheet optimisation work on Marenica bulk samples ! Conduct testwork on other ore sources ! Stage 2: Pil
Slide 23: Summary: Why Invest in MEY?
Summary: Why Invest in MEY? • Ownership of proprietary beneficiation technology for processing large- scale, low-grade calcrete-hosted uranium deposits • Breakthrough technology delivers substantial upgrade in feed grade • On the cusp of commercialisation with pilot plant test phase imminent • Two e
Slide 24: Summary: Our Vision
Summary: Our Vision • Finalise development and commercialisation of breakthrough U-pgrade technology • Complete Pre-Feasibility Study on Marenica Project using new U-pgrade technology • Complete Pre-Feasibility Study on U-pgrade technology • Apply the technology to higher grade resources • Earn an i