Cauldron Energy Limited · ASX:CXU
Cauldron Energy — Australian Uranium Conference 2015
18 slides from Cauldron Energy's conference presentation, July 2015
Slide 1: Australian Uranium Conference July 2015
AUSTRALIAN URANIUM CONFERENCE JULY, 2015 DEFINE | DEVELOP | DELIVER
Slide 2: Disclosure Statements
DISCLOSURE STATEMENTS Forward Looking Statements This presentation may include forward-looking statements with respect to achieving corporate objectives, developing additional project opportunities, the Company’s analysis of opportunities and the development of these and certain other matters. These
Slide 3: Corporate Overview
CORPORATE OVERVIEW POISED FOR GROWTH: POTENTIAL MAJOR STOCK PRICE UPSURGE ! Australia: Bennet Well on pathway for insitu-recovery (ISR) project development; independent review supports ISR production by 2020 ! Argentina: Government change towards mining heralds long-awaited opportunity for CXU CAPIT
Slide 4: CXU Key Assets
CXU KEY ASSETS AUSTRALIA ARGENTINA ! Yanrey Project, W.A. “the new uranium camp” ! Rio Colorado Project, (Cu, Ag) ! Marree JV Project, S.A. (Cu, Au, U) ! Los Colorados Project (U) ! Boolaloo Project, W.A. (Cu, Au) ! Las Marias Project (U) ! Beadell Project, W.A. (Cu, Au (20% free carry) ! Bellavista
Slide 5: CXU Value Drivers
CXU VALUE DRIVERS GLOBALLY SIGNIFICANT URANIUM & BASE METAL ASSETS ! DEFINE economic resources from existing uranium and base metal assets ! DEVELOP Bennet Well uranium project, establish Yanrey as a globally significant ISR region ! DELIVER ISR production at Bennet Well by 2020 (pathway reviewed in
Slide 6: CXU News
CXU NEWS Confidence up: drilling grows Bennet Well Resource by 16% to 21.5Mlb Jul. 2015 Indicated Resource category increased 90% to 11.9Mlb eU3O8 - additional Q3 2015 drilling planned. CXU funded to complete Bennet Well and Yanrey drilling Jul. 2015 Recommencement of 2014 10,000m drill program; com
Slide 7: Yanrey Uranium Project, WA
YANREY URANIUM PROJECT, WA “THE NEW URANIUM CAMP” ! 11 major palaeochannels identified by CXU ! Bennet Well channel: high grades and shallow horizon indicate ISR potential ! High cash margins at low commodity prices ! Realistic 2020 production timeframes ! ISR calibrates CXU exploration IP for prosp
Slide 8: Yanrey Exploration History & Project Schedule
YANREY EXPLORATION HISTORY & PROJECT SCHEDULE ! Predicted Bennet Well ISR operations production price: US $13/lb ! ISR at Bennet Well economic at current uranium price (US$40/lb) Area Defined for ISL Trials ! Realistic production timeframe ! ISR style mining: quick to establish, cheap to run 2015 20
Slide 9: Bennet Well Mineral Resource
BENNET WELL MINERAL RESOURCE 2014/15 DRILLING PROGRAM ! 2014 drilling partially completed; ! delineated high-grade pod of U mineralisation at Bennet Well East suitable for FLT trial ! 73 holes drilled in total for 6,319m ! 2015: Resource upgraded to 36.1 Mt @ 270 ppm eU3O8 for 21.5 Mlbs @ 150 ppm eU
Slide 10: Bennet Well Field Leach Trial
BENNET WELL FIELD LEACH TRIAL KEY MILESTONE: BENNET WELL FIELD LEACH TRIAL (FLT) ! Bennet Well uranium is amenable to both acid and alkali-carbonate leachate solutions (in the lab): ! Acid Leachate 98% recovery, ! Alkali-Carbonate Leachate 94% recovery. ! FLT will characterise hydrological and geoph
Slide 11: Yanrey Preliminary Financial Model
YANREY PRELIM. FINANCIAL MODEL BENNET WELL - EFFECT OF CUTOFF ON RESOURCE ECONOMICS 450,000,000 ! Financially positive at US$40/lb (150 ppm U3O8 cut-off) 350,000,000 ! Predicted total operating cost of US$26/lb Net Present Value (us$) 250,000,000 ! Predicted Internal Rate of Return 21% 150,000,000 !
Slide 12: Marree JV Project, SA
MARREE JV PROJECT, SA CXU 60% OWNERSHIP ! JV with Korean consortium: CXU retains 60% of project, Consortium diluting from 40% base ! Numerous historical working identified ! Historical mining for Pb, Zn, Au, Ag, Cu (e.g. Ooloo) URANIUM OPPORTUNITIES ! Potential for ISR with Heathgate’s ISR nearby !
Slide 13: Rio Colorado Cu, Ag Project, Argentina
RIO COLORADO CU, AG PROJECT, ARGENTINA POSITIVE POLITICAL SHIFT IN SENTIMENT TOWARDS MINING ! CXU at pivot point after change in government sentiment coupled with significantly diminished social resistance to all mining in face of economic reality ! Positive progress at Rio Colorado Cu, Ag project i
Slide 14: Rio Colorado 16km Cu, Ag Outcrop
RIO COLORADO 16KM CU, AG OUTCROP RIO COLORADO: THE SLEEPING GIANT ! Outcrop of prospective geology along 16km with 6km Cu/Ag mineralisation identified ! Application of Sedimentary Copper mineralisation model has generated significant upside to the project area. ! Micromine remodelling work completed
Slide 15: World Uranium Forecast
WORLD URANIUM FORECAST COMMODITY PRICES URANIUM CONSUMPTION ! Uranium prices projected to increase with growth ! Global projected growth 4.2% p.a. from in demand: 2013: 98,400t p.a. of U3O8 in 2020* ! Projected price of US$58/lb by 2020 (in 2015 ! China’s projected uranium consumption dollars)* to i
Slide 16: Global Concern: Undersupply
GLOBAL CONCERN: UNDERSUPPLY PROBLEM: GROWING URANIUM DEMAND + INSUFFICIENT SUPPLY ! Global demand increasing current production estimates indicate a significant supply shortfall. ! In-Situ Recovery (ISR) producers provide significant lowest cost/ quartile production = cash generation. ! Nuclear powe
Slide 17: CXU 2015-2016
CXU 2015-2016 ASSET DEVELOPMENT, POTENTIAL FOR SIGNIFICANT ROI ! Complete Drilling Bennet Well & Yanrey Q1 2015 ! Resource Update Bennet Well Q3 2015 ! Argentina government approval of exploration plan expected Q2 2015 ! Rio Colorado exploration followed by initial Resource in H1 2016 ! Geophysics M
Slide 18: Contact details
SIMON YOUDS DAVID TASKER Cauldron Energy Limited Professional Public Relations 32 Harrogate Street Tel: +61 (8) 9388 0944 West Leederville WA 6007 M: +61 (0) 433 112 936 Tel: +61 (8) 6181 9796 E: [email protected] E: [email protected] WWW.CAULDRONENERGY.COM.AU 18