Sunstone Metals Ltd · ASX:STM
Sunstone Metals — Avalon Minerals — Investor Presentation (June 2016)
30 slides from Sunstone Metals's investor presentation, June 2016
Slide 1: Lithium Portfolio in Scandinavia
LITHIUM PORTFOLIO IN SCANDINAVIA DRILL READY AND RESOURCE DEFINITION DRILLING TO COMMENCE IN 2016 COMPLEMENTARY TO AVALON’S COPPER BUSINESS June 2016
Slide 2: Disclaimer
DISCLAIMER DISCLAIMER FORWARD-LOOKING STATEMENTS To the maximum extent permitted by law, no This Presentation includes certain statements that may representation, warranty or undertaking, express or be deemed “forward-looking statements”. All implied, is made and, to the maximum extent permitted sta
Slide 3: Key Points
KEY POINTS Avalon has built a portfolio of lithium projects in Sweden and Finland The projects include advanced projects ready for commencement of Resource definition drilling in Q3 2016, and less advanced highly prospective opportunities over known lithium occurrences Avalon has entered into
Slide 4: Lithium Portfolio - Scandinavia
LITHIUM PORTFOLIO - SCANDINAVIA • Builds on Avalon’s expertise and presence in Scandinavia • Low cash cost entry to opportunities • All projects have known lithium pegmatite occurrences, and some have seen minor previous drilling • The Kietyönmäki deposit is ready for accelerated work programs to de
Slide 5: Avalon's Lithium Portfolio
AVALON’S LITHIUM PORTFOLIO 400km Ladum Project, Sweden Avalon’s operating base at Kiruna Kaustinen Project, Finland Seinäjoki Project, Finland SWEDEN Tammela (Somero) Project, Finland – FINLAND ADVANCED, RESOURCE DRILLING PLANNED Lithium Projects Iron Ore mine and processing Copper mine Copper smelt
Slide 6: Tammela (Somero) Lithium Project
TAMMELA (SOMERO) LITHIUM PROJECT • “The Somero-Tammela area is one of the most potentially economic lithium pegmatite provinces in Finland” (Levaniemi, 2013) • The pegmatite dykes occur in groups and swarms • The area contains many known pegmatite and lithium occurrences, and 2 drilled deposits at K
Slide 7: Tammela Lithium Project
TAMMELA LITHIUM PROJECT Avalon has a dominant position in the Somero province Avalon holds, through JV, the known Kietyönmäki lithium deposit which is ready for resource definition drilling Close to rail, road and other infrastructure 7
Slide 8: Tammela Lithium Project Kietyönmäki Deposit
TAMMELA LITHIUM PROJECT KIETYÖNMÄKI DEPOSIT • The Nortec JV area includes the Kietyönmäki deposit which was drilled by GTK in 1987-88. 17 diamond drill holes, on 3 traverses, were completed on the Kietyönmäki Main Dyke (or "KMD"), a large spodumene-rich pegmatite dyke that can be traced for over 400
Slide 9: Tammela Lithium Project Kietyönmäki Deposit
TAMMELA LITHIUM PROJECT KIETYÖNMÄKI DEPOSIT Resource drilling planned – shown here in pink • 15 holes, • 3,000 meters, • 2 months work 9
Slide 10: Tammela Lithium Project Kietyönmäki Deposit
TAMMELA LITHIUM PROJECT KIETYÖNMÄKI DEPOSIT GTK assay results; holes R 307 and R310 From To Interval Li2O Hole ID (m) (m) (m) % R307 14.1 37.1 23.0 1.53 R310 11.7 14.7 3.0 1.23 R310 65.0 83.0 18.0 1.79 including 68.0 77.0 9.0 2.60 including 70.0 73.0 3.0 4.35 Drill hole R 310 (from Nortec re-samplin
Slide 11: Tammela Lithium Project Kietyönmäki Deposit
TAMMELA LITHIUM PROJECT KIETYÖNMÄKI DEPOSIT GTK assay results; holes R 308, 309, 315 and R316 From To Interval Li2O Hole ID (m) (m) (m) % R308 3.7 11.3 7.6 1.37 R309 3.0 10.5 7.5 1.49 R315 24.1 36.8 12.7 1.10 R316 86.0 99.0 13.0 1.66 including 86.0 95.0 9.0 1.88 and 98.0 99.0 1.0 3.9 R317 41.4 45.3
Slide 12: Tammela Lithium Project Kietyönmäki Deposit
TAMMELA LITHIUM PROJECT KIETYÖNMÄKI DEPOSIT • An Exploration Target of 8 – 15 Mt at 1.4 – 1.8% Li2O has been estimated • The potential quantity and grade is conceptual in nature. There has to date been insufficient exploration to estimate a Mineral Resource and it is uncertain if further exploration
Slide 13: Tammela Gold Opportunity Riukka and Satulinmäki Prospects
TAMMELA GOLD OPPORTUNITY RIUKKA AND SATULINMÄKI PROSPECTS • The Nortec JV also includes gold opportunities held within the claim areas • Two defined opportunities exist and further exploration will be undertaken to assess these areas • Re-sampling by Nortec geologists of the core drilled by GTK on b
Slide 14: Tammela Gold Opportunity Riukka and Satulinmäki Prospects
TAMMELA GOLD OPPORTUNITY RIUKKA AND SATULINMÄKI PROSPECTS 14
Slide 15: Kaustinen Lithium Project
KAUSTINEN LITHIUM PROJECT • The Kaustinen area is one of the most significant lithium pegmatite domains in Finland • It contains many known lithium deposits, several of which are moving towards development by Finnish company Keliber Oy • The deposits are hosted in pegmatite dyke swarms • Exploration
Slide 16: Kaustinen Lithium Project
KAUSTINEN LITHIUM PROJECT • Avalon has lodged an application for an Exploration Reservation covering up to 500km2 but is subject to overlapping and competing claims by other parties • Avalon has also applied for smaller Exploration permit applications directly adjacent to known deposits • The areas
Slide 17: Seinäjoki Lithium Project
SEINÄJOKI LITHIUM PROJECT • One Exploration Reservation application has been lodged over an area of 207 km2 covering a documented lithium pegmatite occurrence, and at the southern end of the regional geological province that includes the Kaustinen district in the north • Reconnaissance exploration w
Slide 18: Ladum Lithium Project, Sweden
LADUM LITHIUM PROJECT, SWEDEN The Ladum Project covers areas within a regional pegmatite district that has seen minor historical exploration primarily for tin. Most of this exploration was undertaken by LKAB in the 1980’s. The exploration included geophysics, till-sampling, and general geological ma
Slide 19: Lithium Portfolio – Next Steps
LITHIUM PORTFOLIO – NEXT STEPS • Complete compilation of all historical data. Significant open file data is available through GTK for the Finnish opportunities and this is already under compilation and review • Data compilation and an initial field program on the Ladum Project, Sweden is scheduled f
Slide 20: Viscaria Copper Project
VISCARIA COPPER PROJECT PROJECT SITE KIRUNA TOWN PUBLIC ACCESS ELECTRIC RAIL LOW COST HYDRO POWER 20
Slide 21: Kiruna and Viscaria Location Map
KIRUNA AND VISCARIA LOCATION MAP Viscaria Kiruna LKAB Copper orebodies shown in orange 21
Slide 22: Viscaria Copper: Updates to 2015 Scoping Study
VISCARIA COPPER: UPDATES TO 2015 SCOPING STUDY The 2015 Scoping Study confirmed the project description to begin ESIA process (Refer ASX Announcement 14 December 2015 ) 2015 Scoping Study Target Case A and Expanded Case Process plant size 1.2Mtpa scenario 2.0Mtpa scenario 3.0Mtpa scenario Strip rati
Slide 23: Viscaria - Timetable
VISCARIA - TIMETABLE 2015 2016 2017 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 STUDIES AND EXPLORATION Exploration (discretionary) Scoping Study Copper Production + 18 months Updated Scoping Study Decision to Mine Accelerate Feasibility Study PERMITTING ESIA Baselines ESIA Assessments and Application ESIA review to
Slide 24: Corporate
CORPORATE TICKER ASX:AVI Top 10 shareholders hold 70% of shares on issue Frankfurt:AL9 Board and management hold 3.5% and have SHARE PRICE* A$0.019 participated in recent placements SHARES ON ISSUE 383,101,935 European and UK shareholders total 50% MARKET CAP A$7.3M CASH# A$1.0M SUBSTANTIAL SHAREHOL
Slide 25: Competent Persons Statement
COMPETENT PERSONS STATEMENT Competent Persons Statement The information in this report that relates to exploration targets and results is based upon information reviewed by Mr Malcolm Norris who is a Fellow of the Australasian Institute of Mining and Metallurgy. Mr Norris is a full-time employee of
Slide 26: Appendix 1 - Keliber Oy (Finland) PFS March 2016
APPENDIX 1 - KELIBER OY (Finland) PFS March 2016 The Mineral Resources have been estimated using 0.5% Li2O cut-off grade. Ore Reserves are included in the Mineral Resources. Mineral Resource and Ore Reserve summary of the estimated deposits Resource Tonnage Reserve Tonnage Deposit Li2O % Li2O % clas
Slide 27: Appendix 2 – Kietyönmäki
APPENDIX 2 – KIETYÖNMÄKI (from www.nortecminerals.com) A relogging and resampling program was carried out in late November 2012 on the drill core stored at the Geological Survey of Finland ("GTK") core storage facility in Loppi, southern Finland. Select intervals of the drill core were taken from dr
Slide 28: Kietyönmäki Deposit – Historical Exploration by GTK
KIETYÖNMÄKI DEPOSIT – HISTORICAL EXPLORATION BY GTK (Finnish Geological Survey) Drill Traverse 1 – shallow holes, poor test of area (30m deep holes, 12m of cover) Drill Traverse 2 – defined Main Dyke, but only to a depth of 65m below surface 150m Drill Traverse 3 – added strike extent to Main Dyke a
Slide 29: Appendix 3 - Other Lithium Deposits
APPENDIX 3 - OTHER LITHIUM DEPOSITS KIETYÖNMÄKI DEPOSIT INITIAL EXPLORATION TARGET JUNE 2016 The potential quantity and grade is conceptual in nature. There has to date been insufficient exploration to estimate a Mineral Resource and it is uncertain if further exploration will result in the estimati
Slide 30: Appendix 4 – Tammela Gold
APPENDIX 4 – TAMMELA GOLD (from www.nortecminerals.com) During the 1990's, the Geological Survey of Finland (GTK) drilled 39 holes at the Riukka prospect and 57 holes in the Satulinmäki prospect targeting geochemical anomalies with elevated gold. Nortec inspected 9 holes from Riukka and 6 from Satul