St. George Mining Ltd. · ASX:SGQ
St. George Mining — Reuters Mining Week 2018
23 slides from St. George Mining's conference presentation, Sep 18, 2018
Slide 1: Western Australia’s Next Big Nickel Sulphide Story
Western Australia’s Next Big Nickel Sulphide Story Reuters Mining Week Singapore and Hong Kong 18/20 September 2018 ASX: SGQ
Slide 2: St George – Growth Nickel Stock
St George – Growth Nickel Stock Nickel-copper sulphide discovery in WA Major Drilling to expand re-rating resource potential of St George Upswing in nickel price On right: Diamond drilling at Mt Alexander 2
Slide 3: Nickel Market Dynamics are Changing
Nickel Market Dynamics are Changing 3
Slide 4: EV Demand
EV Demand Demand Rises on Electric Vehicle Revolution: • Nickel sulphide (Class 1 nickel) is required for EV batteries; nickel pig iron, etc (Class 2) is not suitable for batteries • 1Mt deficit in 2025 = price pressure Source: McKinsey Basic Materials Institute Australian Financial Review, 7 August
Slide 5: Upswing in Price Cycle
Upswing in Price Cycle UBS, Miner’s Price Review, June 2018: EV battery demand is emerging faster than expected. Inventory is falling, premia are rising, indicating a scramble for nickel metal. Meanwhile little battery-ready mine supply investment is being made. Decreasing Stockpiles Support a Risin
Slide 6: Nickel Price to Outperform
Nickel Price to Outperform UBS, Miner’s Price Review, June 2018: Best Commodities on Risk/Return ? Nickel is our preferred play on a >12 month view. Commodity Units Current Price LT Forecast ‘Upside’ LT v. Current Cobalt US$/t 62,750 43,200 (32%) Copper US$/t 5,972 7,280 22% Nickel Nickel US$/t 12,6
Slide 7: Securing Nickel Supply
Securing Nickel Supply As the nickel market tightens and the battery market grows, industry players are looking to secure supply. Battery manufacturers are competing for M&A is heating up. supply by offering offtake finance and taking strategic stakes in miners. The West, The West, 18 August 2018 14
Slide 8: St George – Corporate Overview
St George – Corporate Overview 8
Slide 9: Market Profile and Capital Structure
Market Profile and Capital Structure Listed shares (SGQ): 298,116,211 Share Ownership Listed options (SGQOB): 24,579,714 Top 10: 19% Top 20: 27% SGQOB - exercise price of 20c, expiring on 30 Sept 2020. Directors: 6% Market cap: A$39m (@12 per share) Cash: A$4m (at 13 Sept 2018) Largest Shareholders
Slide 10: Highly Qualified Team
Highly Qualified Team Directors, Management and Consultants with a Track Record of Success John PRINEAS, Executive Chairman – founding shareholder with over 25 years experience in mining, and the banking and legal sectors servicing the resources industry. Tim HRONSKY, Technical Director – over 25 ye
Slide 11: Successful Exploration Creates Value
Successful Exploration Creates Value 11
Slide 12: Mt Alexander
Mt Alexander Favourable Location Three Projects in Western Australia: • Stable and reliable mining jurisdiction MT ALEXANDER DISCOVERY • Exceptional discovery in Western Australia • High-grade nickel-copper sulphides Favourable Location: • Located S-SW of world class nickel and gold mines of the Agn
Slide 13: Australia’s Latest Nickel-Copper Sulphide Discovery
Australia’s Latest Nickel-Copper Sulphide Discovery Large Shallow Depths Mineral System Mineralisation 30m from Ni-Cu sulphides over a surface with ongoing 4.5km strike of Cathedrals definition drilling; low cost Belt, with 100% success rate drilling and mining in testing EM conductors High Grade an
Slide 14: Large Scale Mineral System
Large Scale Mineral System 4.5km strike of sulphide mineralisation at Cathedrals Belt Mineralisation starts 30m from surface with potential for repetition and extension at depth Longer strike of mineralisation than Nova (circa. 1km strike) (see Presentation dated 15 May 2018 by Independence Grou
Slide 15: Drilling Success Continues
Drilling Success Continues Wide intersections of high-grade Ni-Cu-Co-PGEs 2017 – some of the best intersections (with assays): MAD71 (Stricklands Prospect): 17.45m @ 3.01%Ni, 1.31%Cu, 0.13%Co and 1.68g/t total PGEs from 37.45m, including 5.3m @ 4.39%Ni, 1.45%Cu, 0.21%Co and 2.09g/t total PGEs from 3
Slide 16: Investigators Prospect
Investigators Prospect Multiple high-grade hits over a 1,300m strike High powered SAMSON electromagnetic (EM) survey identifies large areas of EM conductivity indicating potential for extensive sulphide mineralisation Testing of EM conductors is ongoing with drilling and downhole EM surveys iden
Slide 17: Down Plunge at Investigators
Down Plunge at Investigators Down plunge strike of mineralisation extended by latest drilling Mineralised ultramafic dips to the north at an angle of about 30 degrees Drilling down dip continues to intersect high-grade sulphides Drill hole MAD108 on the MAD60 section (approx. 231220E) intersec
Slide 18: Stricklands Prospect
Stricklands Prospect +400m strike of mineralisation with wide intersections Multiple high-grade hits including drill hole MAD71: 17.45m @ 3.01%Ni, 1.31%Cu, 0.13%Co and 1.68g/t total PGEs from 37.45m including the massive sulphide zones of: 5.3m @ 4.39%Ni, 1.45%Cu, 0.21%Co and 2.09g/t total PGEs fr
Slide 19: Cathedrals Prospect
Cathedrals Prospect High grade mineralisation on two surfaces Numerous intersections of nickel-copper sulphides on two surfaces – the Cathedrals ultramafic and the footwall fault below including MAD56: 7.5m @ 3.90%Ni, 1.74%Cu, 0.12%Co and 3.32g/t total PGEs from 57.8m, including 3.15m @ 6.36%Ni, 2
Slide 20: Metallurgical Testwork
Metallurgical Testwork Positive Results from Initial Met Testwork High Recoveries from Ore: • >99% recoveries of Ni and Cu to concentrates from preliminary testwork on massive sulphides Clean Concentrate: • No deleterious elements like MgO, talc or arsenic Standard Flotation: • Separate nickel and c
Slide 21: Opportunity for Low Cost/ High Margin Project
Opportunity for Low Cost/ High Margin Project Shallow Mineralisation Existing Infrastructure Clean Concentrate Low cost drilling/ low Nearby processing High grade Ni and Cu cost potential mining plants plus cobalt and PGEs Well defined zones of Close to existing roads, Excellent metallur
Slide 22: St George Mining: creating shareholder wealth through exploration success
St George Mining: creating shareholder wealth through exploration success Above: diamond drill rig at Stricklands, Cathedrals Belt. Right: Drill core from MAD108. 22
Slide 23: DISCLAIMER: COMPETENT PERSON STATEMENT
DISCLAIMER: Certain statements contained in this presentation, including information as to the future financial or operating performance of St George Mining Limited (ASX:SGQ) and its projects, are forward looking statements: -may include, among other things, statements regarding targets, estimates a