Mt Carbine Tungsten Project ASX: III Gold Coast Resources Showcase June ‘09 Disclaimer No representation or warranty is made as to the accuracy, completeness or reliability of the information contained herein. Any forward-looking information in this presentation has been prepared on the basis of a number of assumptions which may prove to be incorrect. This presentation should not be relied upon as a recommendation or forecast by Icon Resources Ltd.
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Mt Carbine Tungsten Project
ASX: III
Gold Coast Resources Showcase June ‘09
DisclaimerNo representation or warranty is made as to the accuracy, completeness or reliability of the information contained herein. Any forward-looking information in this presentation has been prepared on the basis of a number of assumptions which may prove
to be incorrect. This presentation should not be relied upon as a recommendation or forecast by Icon Resources Ltd.
NW Qld: Iron oxide-copper-gold-uranium (IOCGU); zinc; nickel; iron ore
Central Qld: Copper-Zinc at Fitzroy Project inferred resource:1.75Mt @ 1.7% Cu + 2% Zn
NSW: Drill-ready Gold targets at Peel Fault Project
Tas: Professor Zinc Project on hold
Mt Carbine : A ‘World Class’ MineMt Carbine : A ‘World Class’ MineMt Carbine : A ‘World Class’ MineMt Carbine : A ‘World Class’ MineMt Carbine : A ‘World Class’ MineMt Carbine : A ‘World Class’ MineMt Carbine : A ‘World Class’ MineMt Carbine : A ‘World Class’ Mine
Mt Carbine
in 1978
Mt Carbine produced ~half of Australia’s annual tungsten.
At one point, the world’s largest tungsten producer outside China
Exceptionally high-grade concentrates of wolframite and scheelite
Mine closure in 1986, due to price collapse, stopped underground
development to access ~10Mt of higher grade mineralisation.
Objective: To ReObjective: To ReObjective: To ReObjective: To ReObjective: To ReObjective: To ReObjective: To ReObjective: To Re--------start a Longstart a Longstart a Longstart a Longstart a Longstart a Longstart a Longstart a Long--------Term, HardTerm, HardTerm, HardTerm, HardTerm, HardTerm, HardTerm, HardTerm, Hard--------
Rock Mining Operation at Mt Carbine ASAPRock Mining Operation at Mt Carbine ASAPRock Mining Operation at Mt Carbine ASAPRock Mining Operation at Mt Carbine ASAPRock Mining Operation at Mt Carbine ASAPRock Mining Operation at Mt Carbine ASAPRock Mining Operation at Mt Carbine ASAPRock Mining Operation at Mt Carbine ASAP
Icon has acquired 100% of Mt Carbine Tungsten Project (2.5% royalty to vendor)
Infrastructure all in place: Sealed highway and 132KV power lines pass through granted Mine Leases
Good location: ~45mins drive from Port Douglas ~90mins drive from Cairns
Mt Carbine Resources and MineralisationMt Carbine Resources and MineralisationMt Carbine Resources and MineralisationMt Carbine Resources and MineralisationMt Carbine Resources and MineralisationMt Carbine Resources and MineralisationMt Carbine Resources and MineralisationMt Carbine Resources and Mineralisation
Open-cut. Targeting
~15Mt @ ~0.2% WO3 from
existing 9.6Mt at 0.2% WO3
(JORC compliant ) plus
~7Mt of extensions.
Potential for ~80Mt when
old workings are included.
old working
old workings are included.
Tailings. ~2Mt @ 0.11%
WO3 (JORC compliant)plus ~12Mt of potentially
ore grade material in the
waste and reject dumps.
Plan view of Mt Carbine open cut, tailings and dumps, and
Expanded Open CutExpanded Open CutExpanded Open CutExpanded Open CutExpanded Open CutExpanded Open CutExpanded Open CutExpanded Open Cut(to be tightened by planned Concept Study)
Assumptions
ParameterBase
CaseRange Units Comment
Tonnage 15 (14-16) Mt mining at 2Mt/yr
Grade 0.2 (0.2-0.22) % WO3 80% rejected
Recovery 72 (67-75) % by Ore SortingRecovery 72 (67-75) % by Ore Sorting
Price 200 (150-235) US$/mtuUnit revenue
from production
X Rate 0.75 (0.7-0.8) Au$/US$
All up cost 22.70 ? Au$/tIncludes mining,
processing, rehab, admin & royalites*
Margin 250 (50-500) Au$M 'EBITDA'
Cost per mtu
120 (100-130) US$/mtu Unit cost of production
Mt Carbine Timelines and BudgetMt Carbine Timelines and BudgetMt Carbine Timelines and BudgetMt Carbine Timelines and BudgetMt Carbine Timelines and BudgetMt Carbine Timelines and BudgetMt Carbine Timelines and BudgetMt Carbine Timelines and Budget
Project & Purpose ActivityDate
(Ending)Cost
(Au$M)
Concept Study to demonstrate project
viability
Create ore body models Evaluate mining options
July '09 0.15
Pre-Feasibility to confirm resource & mining
method
Pump out Open Cut Infill & explor. drilling
Nov, '10 3.5
Flowsheet confirmation Feasibility for full mine planning with costings
Flowsheet confirmation Offtaker agreements Mine contracts called
April, '11 0.75
Start Up of miningConstruct process plant
Finalise permitting Start Mine
Nov, '11 36
Tailings for Early Revenue
Re-treatment of tailings in parallel with above activities
Oct, '09 to Nov '11
(10)*
Contingency 3.6
Total $44M* not included in total
Tungsten Properties & OccurrenceTungsten Properties & OccurrenceTungsten Properties & OccurrenceTungsten Properties & OccurrenceTungsten Properties & OccurrenceTungsten Properties & OccurrenceTungsten Properties & OccurrenceTungsten Properties & OccurrenceTungsten (from the Swedish ‘heavy-stone’)Also called wolfram with chemical symbol WHardest metal with the highest melting point and tensile strength Lowest coefficient of expansion of all metalsVery heavy (similar to gold) - high thermal and electrical conductivity.
Commonly occurs as -Wolframite, (Mn,Fe)WO4 - black in colourScheelite, CaWO - light brown; fluoresces under UV lightScheelite, CaWO4 - light brown; fluoresces under UV light
Concentrates produced
from Mt Carbine
tailings in 2008
Tungsten Distribution and ProductionTungsten Distribution and ProductionTungsten Distribution and ProductionTungsten Distribution and ProductionTungsten Distribution and ProductionTungsten Distribution and ProductionTungsten Distribution and ProductionTungsten Distribution and Production
Tungsten industry is made up of: Producers (ie miners)
Processors (value-adding)
End-users
China dominates the first two categories and is strong –and expanding –the third.
China is now a net importer
Tungsten ApplicationsTungsten ApplicationsTungsten ApplicationsTungsten ApplicationsTungsten ApplicationsTungsten ApplicationsTungsten ApplicationsTungsten ApplicationsTungsten is mostly used for ‘hard metal’ construction (machine-cutting tools, etc)Growing applications in: electronics, medicine and catalytic convertersAnnual consumption is ~80kt of which ~20kt is recycled Traded through individual contracts –not via the LME.
Car horns & safety switches (conductive)
Golf clubs, golf balls, golf shoe spikes
Some Everyday Uses of Tungsten
Golf clubs, golf balls, golf shoe spikes
Snow tyre studs
Vibrating mechanism in a mobile phone
Dental drills
Light globes
Ball point pens (hard-wearing)
Heated car windows
Fishing sinkers (heavy; non-toxic)
A replacement for chrome plating?
Tungsten prices up x 4 (in US$) over the last few years China, with ~66% of the world’s reserves, is now a net importer
Price down ~20% (in US$) in recent months, but analysts predict sustained demand.
Tungsten is usually priced in metric tonne units (mtu) of WO3 which is 10kg of WO3 or 7.93kg W. Prices are also quoted in the refined product APT (ammonium paratungstate) which trades at a premium of 20-30% above the WO3 price.
$/m
tu W
O3
1/2009
6/’09
6/’096/’08
from Talking Tungsten PDAC, Mar 2009
Chinese are importing plus a strong desire for non-Chinese processors to secure a long-term, non-Chinese supply
Icon is currently negotiating with several parties who have expressed an interest in re-treating the tailings
An early start up tailings operation would provide a modest profit until the primary project starts up
The tailings plant could form the foundation of the primary ore circuit
Total ~12Mt Waste and Reject Dumps Old records suggest may be ore grade
Old workings along Carbine Hill only tested by one drillhole
WASTE DUMP
Dumps and Surrounding PotentialDumps and Surrounding PotentialDumps and Surrounding PotentialDumps and Surrounding PotentialDumps and Surrounding PotentialDumps and Surrounding PotentialDumps and Surrounding PotentialDumps and Surrounding Potential
Old records suggest may be ore grade (+0.07 – 0.1% WO3)