Elevate Uranium Ltd · ASX:EL8
Elevate Uranium — Marenica Energy — Uranium Conference Fremantle 2013
28 slides from Elevate Uranium's conference presentation, Jul 16, 2013
Slide 1: Unlocking and enhancing the potential of major global surficial uranium deposits
ASX: MEY www.marenicaenergy.com.au Unlocking and enhancing the potential of major global surficial uranium deposits Commercialising a significant processing breakthrough: U-pgrade 16 July 2013 Murray Hill, CEO 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: Corporate Summary
Corporate Summary ! Shares on issue: 748.1M* ! Convertible notes: $2M ! Options on issue: 37M ! Market capitalisation: $3.0M* ! Share price: 0.4c* * 2-for-3 entitlements issue underway at 0.4c to raise up to $2M Key Assets Board & Management ! Marenica Uranium Project, Namibia (75%) ! Robert Pearce,
Slide 4: Company Snapshot
Company Snapshot • Specialist uranium explorer and developer (ASX: MEY) • Focused on development and commercialisation of breakthrough U-pgrade technology: • Applicable to large, low-grade surficial uranium deposits • Delivers substantial upgrade, improving economics by reducing CAPEX and OPEX • Nex
Slide 5: U-pgrade: A Global Opportunity
U-pgrade: 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 ! Discussions underway with owners and operators of other similar uranium d
Slide 6: 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 7: 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 8: The Driver: A Powerful Technical Team
The Driver: A Powerful Technical Team Marenica’s metallurgical specialists…and innovators • Doug Buerger, Chairman & MEY Director • +40 years experience in exploration and project development (Namibian born) • Gary Johnson – Strategic Metallurgy • Developed and commercialised Activox® nickel leach t
Slide 9: 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 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: Mass % in Fraction Liberated
Uranium Liberation (-125µm Particles) Carnotite Liberation Channel Ore -125 µm 100 -125/+63 90 -63/+37 80 -37/+20 70 -20/+10 Mass % in Fraction Liberated -10 60 50 40 30 20 10 0 0% <= 10% <= 20% <= 30% <= 40% <= 50% <= 60% <= 70% <= 80% <= 90% < 100% 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 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 16: 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 17: Recent Development – Effect of Water
Recent Development – Effect of Water ! U-pgrade bench scale work completed in Perth tap water (similar to Namibian desalination water) ! Water represents about 30% of process OPEX ! Comparative U-pgrade tests completed in sea water ! Sea and Perth tap water produce similar upgrades and recoveries !
Slide 18: High Sulphate Ore – Breakthrough
High Sulphate Ore – Breakthrough ! U-pgrade flowsheet developed on low sulphate ore representing >85% of Marenica resource ! High sulphate ore can be up to 100% of some resources ! Up to now high sulphate ores have not been able to be processed due to: ! Sulphate consumes alkali ! Calcite consumes a
Slide 19: 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 U-pgrade Acid Leach - Massively reduced mass for leaching - Leaching off s
Slide 20: 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 21: 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$/lb* 15 15 16 Process Plant US$/lb* 67 64 26 Operating Costs Total Operating US$
Slide 22: Process OPEX Cost (US$/lb)
Estimated Process OPEX Costs 30 3 Mlb/a U3O8 Production 5 Mlb/a U3O8 Production 25 10 Mlb/a U3O8 Production 20 OPEX Cost reduction at higher grades Process OPEX Cost (US$/lb) 15 10 Marenica 5 0 0 200 400 600 800 1,000 U3O8 Head Grade (ppm) 22
Slide 23: Other Ore Sources
Other Ore Sources Marenica would like to acknowledge the following companies for their support in providing samples for U-pgrade proof of concept testing ! Areva – Trekkopje (Namibia) ore samples ! Deep Yellow – Australian ore samples ! Deep Yellow – Namibian ore samples Early bird catches the worm
Slide 24: Commercialisation of U-pgrade
Commercialisation of U-pgrade ! Stage 1: 6-month test work programme ready to commence following capital raising ! Aimed at de-risking and increasing confidence level in the success of U-pgrade and optimising the flowsheet: ! Flowsheet optimisation work on Marenica bulk samples ! Conduct testwork on
Slide 25: Application of U-pgrade
Application of U-pgrade ! The U-pgrade process includes unit operations that are commonly used in the greater mining industry and are scalable to large tonnage operations ! The high mass rejection produces a low mass concentrate that opens up opportunities: ! Satellite deposits can be upgraded ! The
Slide 26: Summary: U-pgrade
Summary: U-pgrade ! U-pgrade process produced the following results ! Leach feed grade 60 times greater than mined grade ! Plant feed grade of 94ppm U3O8 increased to +5,500ppm U3O8 for leaching ! U-pgrade rejects 99% of mass prior to leach ! 1% of U-pgrade feed leached ! Water quality has no impact
Slide 27: Our Vision: the Future
Our Vision: the Future • 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 a
Slide 28: Unlocking and enhancing the potential of major global surficial uranium deposits
ASX: MEY www.marenicaenergy.com.au Unlocking and enhancing the potential of major global surficial uranium deposits Commercialising a significant processing breakthrough: U-pgrade 16 July 2013 Murray Hill, CEO 28