Northern Minerals Limited · ASX:NTU
Northern Minerals — Investor Presentation (February 2014)
20 slides from Northern Minerals's investor presentation, Feb 26, 2014
Slide 1: North American Investor Presentation
ASX:NTU North American Investor Presentation February 2014
Slide 2: Important Notice
Important Notice This presentation has been prepared by Northern Minerals Limited (“Northern Minerals” or the “Company”). It should not be considered as an offer or invitation to subscribe for or purchase any securities in the Company or as an inducement to make an offer or invitation with respect t
Slide 3: Capital Structure
Capital Structure ASX Code: NTU AUD Ordinary Shares 407M* Major Shareholders Listed Options (NTUOB) 67M Unlisted Options and Performance Rights 18M# Conglin Yue & Assoc 45.5% Market Capitalisation (as at 21 February 2014 @ $0.17) $69M Other Board & 4.0% Management Balance Sheet Cash (31 December 201
Slide 4: Value Proposition
Value Proposition Dominance of Heavy Rare Earths Competitive Advantage beneficiate 25 times Resource upgrade 47,997,000kg Pathway to Production by 2016 4
Slide 5: Competitor Comparison
Competitor Comparison LRE v HRE Comparative Percentage Distribution Company/Project/Country HRE v LRE Comparative Value Distribution IONIC CLAYS (High Y) Longnan, Jiangxi (China)* Northern Minerals – Browns Range (Australia) Namibian Rare Earths – Lofdal (Namibia) Tasman – Norra Karr (Sweden) IONIC
Slide 6: The REO marketing landscape
The REO marketing landscape HRE suppliers reporting upward pressure in demand HRE prices resilient and above pre-2010 levels Lynas and Molycorp shifting to production phase LRE supply resolved focus shifting to HRE Chinese government stockpiling HRE while prices are low Shortcomings of illegal minin
Slide 7: Browns Range Competitive Advantage
Browns Range Competitive Advantage * February 2014 Wolverine JORC compliant resource grade 7
Slide 8: Conventional Process Components
Conventional Process Components 8
Slide 9: Focus on Finalising Flowsheet
Focus on Finalising Flowsheet Beneficiation circuit • 90 tonne pilot plant completed on 2 process options: o Magnetic separation followed by cleaner flotation o Whole of ore flotation • 2.2 tonne mineral concentrate produced • Target grade of 20% TREO achieved • Recovery improvements expected • Both
Slide 10: Licence to Operate
Licence to Operate • Stakeholder engagement plan developed and implemented. Second stage local community forums planned for 2nd quarter 2014 • Employing people from local communities of Ringer Soak and Halls Creek • Cultural Awareness Training continues to be a focus Community Forum in Halls Creek –
Slide 11: Browns Range Dome
Browns Range Dome • Northern Minerals 100% ownership and marketing rights of WA tenements where current resources are located • The dome is a major geological feature covering 1,500km2 (60km x 30km) –HRE mineralised faults/breccias probably developed during late stages of doming • Significant new HR
Slide 12: 357% increase in Resource across 2013
357% increase in Resource* across 2013 Deposit Category Mt TREO TREO Dy2O3 Y2O3 Tb4O7 HREO TREO % kg/t kg/t Kg/t Kg/t % Tonnes Indicated 4.37 0.72 7.2 0.61 4.07 0.09 83 31,615 Browns Range Inferred 2.12 0.77 7.7 0.64 4.25 0.09 86 16,382 Total1 Total1 6.48 0.74 7.4 0.62 4.13 0.09 84 47,997 * The upgr
Slide 13: Wolverine Resource upgrade – 264% increase
Wolverine Resource upgrade – 264% increase* Category Mt TREO TREO Dy2O3 Y2O3 Tb4O7 HREO TREO % kg/t kg/t Kg/t Kg/t % Tonnes Indicated 2.66 0.89 8.9 0.78 5.17 0.12 89 23,705 Inferred 1.80 0.81 8.1 0.67 4.45 0.10 87 14,564 Total1 4.46 0.86 8.6 0.74 4.88 0.11 88 38,269 1 Rounding may cause some computa
Slide 14: HRE Pipeline of Prospects – Northern Minerals
HRE Pipeline of Prospects – Northern Minerals Production Reserves Gambit Wolverine CurrentResource Current Resource West Area 5 47,997tTREO 10,500t TREO Resources Gambit Cyclops Area 5 North Significant Drilling Dazzler Nightcrawler Intersections Banshee Mystique John Galt (Main Zone) Wolverine East
Slide 15: John Galt HRE Project
John Galt HRE Project • Rock chip samples up to 42% TREO with approximately 95% Heavy REO • Preliminary metallurgical tests indicate excellent recovery rates (>90%) with potential for concentrate grades >40% • High grade mineralisation in talus (scree) material – hard-rock source of scree is the pri
Slide 16: Boulder Ridge HRE Project
Boulder Ridge HRE Project • First rock chip samples from the Boulder Ridge project confirm high-grade Heavy Rare Earths (HRE) • Best results exceed 12% TREO, including up to 1.15% Dysprosium, with a dominance of HRE – up to 99%. • Follow-up soil sampling program planned for Q4 2013 to refine drill t
Slide 17: Funding Update
Funding Update In 2013: Placement Completed February $4M Rights Issue Completed September $26M R&D Rebate 2012/13 December $6M Cash at Bank – 31 December 2013 $12.8M In 2014: Appointed PCF as corporate advisor Complete funding needs for 2014 including: o 16% sale of Browns Range $26M o Sale
Slide 18: Right People in Place
Right People in Place Relevant range of experience and expertise to explore, develop, commercialise and operate the Browns Range Project Board of Directors Conglin Yue – Executive Chairman George Bauk - Managing Director / CEO • Long standing relationship with a number of major steel producing compa
Slide 19: Pathway to Production
Pathway to Production 2013 2014 2015 2016 JORC Resource Drilling Mining Lease & Land Access Primary Environmental Assessment (EPA) Secondary Approvals (DMP, DEC, DoW etc) Metallurgy Test work Scoping Study Pre-feasibility Study Feasibility Study Off-take Agreements Funding & Decision to Proceed Engi
Slide 20: Browns Range the new HRE province
Browns Range the new HRE province Increased JORC compliant resource by 70% to 47,997t TREO Competitive Advantage outstanding beneficiation 25 times Pre-Feasibility Study well underway Pathway to Production By 2016 Based on February 2014 Wolverine JORC compliant Indicated Mineral Resource estimate 20
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