RARE EARTHS, SPE RARE EARTHS, SPE & STRATEGIC META & STRATEGIC META INVESTMENT SUMM INVESTMENT SUMM Integrated approach & South A Gary Billingsley – Exec Chair Gary Billingsley Exec Chair Great Western Minerals Group IRONMONGERS’ HALL, CITY OF LONDON ● TUESDAY -WEDNESDAY , 13-14 MA www.ObjectiveCapitalConferences.com CIALITY CIALITY LS LS IT IT Africa opportunity rman, rman, p ARCH 2012
Objective Capital's Rare Earths, Speciality & Strategic Metals Investment Summit 2012 Ironmongers' Hall, City of London 13-14 March 2012 Speaker: Gary Billingsley, Great Western Minerals
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S f H bSafe HarbourCautionary Note On Forward-Looking • "Forward looking statements include but are not lim• Forward-looking statements include, but are not lim
capacity, output and revenue, GWMG’s continued processing operations and business plans. When u“ ” “ ” “ ” “ ” “ ”“estimate”, “forecast”, “believe”, “expect”, “may”be among the statements to identify forward-lookin
• Although GWMG believes that its expectations refle• Although GWMG believes that its expectations reflesuch statements involve risk and uncertainties and consistent with these forward-looking statements. RI f ti F il bl t d fInformation Form available at www.sedar.com for a
• GWMG shall not be liable or responsible for any claconsequential incurred by the user arising out of thconsequential, incurred by the user arising out of thinformation contained in this presentation.
Statementsmited to statements regarding projected processingmited to, statements regarding projected processing advancement of its mineral exploration, projects,
using this presentation, the words “potential”, “anticipate”, ” “ ” “ ””, “project”, “plan” and similar expressions are intended to g statements.“ected in these forward-looking statements are reasonableected in these forward-looking statements are reasonable, no assurance can be given that actual results will be
Readers are advised to refer to GWMG’s current Annual f ll d i ti f i k f ta full description of risk factors.
aim or damage, directly or indirectly, special or he interpretation reliance upon or other use of thehe interpretation, reliance upon or other use of the
3
GWMG HighlightsGWMG HighlightsGWMG is on track to become a leading fand processor outside of China, with a s
A fully integrated rare earth company:A fully integrated rare earth company:• Increasing importance of ex-China source• From production at Steenkampskraal to a• From production at Steenkampskraal to a• Ownership of value chain = higher expect
of supply for customersFlagship Steenkampskraal mine - a uniq• Main Zone historic estimates contained [R
grade of 11.6%(1)g• Favorable distribution of heavy rare earth• Historic mineralization (and mine workingHistoric mineralization (and mine workingGreat Western - a comprehensive strateg• Restart production build a mixed rare ear• Restart production, build a mixed rare ear
a separation plant near Steenkampskraal• Significantly expand alloy production capa
esalloy sales (LCM and GWTI)alloy sales (LCM and GWTI)ted profit margins for GWMG and security
que project with significant potential:REO] grades of 16.74%(1), total [REO]
hs of approximately 8%(1) of total REOgs) remains open along strike and at depthgs) remains open along strike and at depthgy:rth chloride plant at Steenkampskraal andrth chloride plant at Steenkampskraal, and lacity at LCM
331-compliant data. See Cautionary Note on Forward-Looking Statements.
Global Rare Earth DemGlobal Rare Earth DemKey elements of anticipated global demand for R
production through GWMG market• Marketing company has chloride seMarketing company has chloride se
tolling basis, retaining 100% GWM• Metal Making:• Metal Making:
• GWMG owns 100% of metal makinGWMG d d idGWMG produced oxides
• Alloy Production:• GWMG owns 100% of LCM and G
manufacture alloys from GWMG owy
C t lControl
ing operationing operationne output
oduction plant
ant, 100% of oxide ting companyeparated on aeparated on a G control
ng that buys
WTI that wned metal
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E l tiExploration Mining
GWMG Exploration Priorities:
Steenkampskraal:•Complete National Instrument 43 101 techn•Complete National Instrument 43-101 techn•Confirm historical data and expand size of r
Hoidas Lake:•Update previously completed NI 43-101.•Continue to work on metallurgy to evaluate gyproduction potential.
Douglas River, Benjamin River, Red Wine•Continue early stage exploration focused o•Continue early stage exploration, focused orare earth elements.F l ti ti iti t t•Focus on exploration activities to generate
for future supply to GWMG alloy processing
Mixed Chloride Solvent Alloy Production Extraction
SeparationProduction
nical reportnical report.resource.
e:on heavyon heavy
th f d t krare earth feedstock operations.
11
Mi iExploration MiningSteenkampskraal Background:
•Former operating thorium mine. •Excellent infrastructure with pavedExcellent infrastructure with paved
and gravel roads.In close proximity to rail and sea port•In close proximity to rail and sea-port.
•474 hectare property permitted to current mining requirements.
•One of the highest grade RE deposits: 16.7(based on historical non-NI 43-101-compliant data supplied b
Mixed Chloride Solvent AlloyMixed Chloride Production
SolventExtraction Separation
Alloy Production
74% REO by Rareco and reviewed by
, extraction, storage
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Mi iExploration MiningSteenkampskraal Project Steps Complete
•June: Launched mine site refurbishment.•June: Hired Extraction, Processing Plant ma•July: Acquired 100% of Rareco.•July: Heads of Terms with GQD for Separa•July: Contracted Processing plant design tJuly: Contracted Processing plant design t•August: Hired Monazite expert.•August: Appointed Director of International•August: Appointed Director of International •August: Mine site refurbishment on scheduS t b S l t d ill t t f l•September: Select drill contractor for explor
•November: Appointed Kennedy as Rareco C•November: Appointed Kabaah as Mine Man•December: Executed planned exploration p•December: Refurbished mine shaft and faci
Mixed Chloride Solvent Alloy Production Extraction
Separation
yProduction
ed in 2011:
anagers.
ation plant.team.team.
ExplorationExploration.le.
tiration.CEO.nager.rogram.glities.
13
Mi iExploration MiningSteenkampskraal Current Project Steps 2
January:•Completed and signed Solvent Extraction SVenture.•Finalized first phase of drill program designedata and expand resourcedata and expand resource.February:•Complete design work for Mixed Chloride P•Complete design work for Mixed Chloride P•Launched second phase of Steenkampskra
t i f i li d i textension of mineralized vein system.•Refurbishment of mine shaft continues in ad•Site preparation work continues in advanced•Separation plant design and environmental p p gscheduled pace.
Mixed Chloride Solvent Alloy Production Extraction
Separation
yProduction
2012:
Separation plant Joint
ed to confirm historical
Production plantProduction plant.aal drill program to test
dvanced stages.d stages.work progressing at p g g
14
MiningExploration Mining
Steenkampskraal decline entrance February 2011
Decline refurbishment materials arrive at site September 2011Decline refurbishment materials arrive at site September 2011
Mixed Chloride Solvent Alloy Production Extraction
SeparationProduction
Entrance to decline August 2011
Top 45 feet of decline concrete work complete September 2011
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MiningExploration Mining
Drilling activity at Steenkampskraal October 2011
Rails readied for shaft refurbishment November 2011
Mixed Chloride Solvent Alloy Production Extraction
SeparationProduction
Drill core from Steenkampskraal exploration October 2011
Mine shaft being refurbished December 2011g
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MiningExploration Mining
Site prep adjacent to mineralized rock dump January 2012
Final rails for shaft refurbishment January 2012Final rails for shaft refurbishment January 2012
Mixed Chloride Solvent Alloy Production Extraction
SeparationProduction
Fleet of equipment at Steenkampskraal January 2012
Mine shaft refurbishment nearing completion February 2012Mine shaft refurbishment nearing completion February 2012
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Mixed ChExploration Mining Mixed ChProduc
Plans for Mixed Chloride Production Plan
ProducPlans for Mixed Chloride Production Plan
•To be located at Steenkampskraal mine siteD i k i th h DRA Mi•Design work in process through DRA Miner
•Design upgraded to allow capacity of 12,000per annum of rare earth chloride solution.•Beneficiation:
• Produces a mineral concentrate• Crushing milling and concentration teCrushing, milling, and concentration te• To use gravity, magnetic, and flotation
•Removal of thorium in the processing stage•Removal of thorium in the processing stage•Leaching:
T d li id hl id• To produce a liquid chloride.• Using mineral concentrate, produces
nitrate, or chloride (RECl3) of mixed ra
hloride Alloy hloride ction
SolventExtractionSeparation
Production
nt:
ctionnt:
e.lrals.
0 tonnes
echnologyechnologyn techniques.ee
a liquid sulphate, are earths.
18
Mixed Chloride Exploration Mining Production
Plans for Separation Plant:
•Heads of Terms signed with Ganzhou QiandGroup (GQD) July 25 2011Group (GQD) July 25, 2011•Final Agreement for separation plant signedJanuary 10 2012 with highly experienced GQJanuary 10, 2012 with highly experienced GQ•New joint venture company, Great Western Materials Co. Ltd. (GWGQD) has been creat
•GWGQD to be responsible for the design, mconstruction commissioning and operation oconstruction, commissioning and operation oseparation facility.
To be located in proximity to Steenkam• To be located in proximity to Steenkam• Plans call for capacity expansion from
5,000 t.p.a. once operational.
Solvent Alloy SolventExtraction
Production
Extraction Separation
dong Rare Earth
d and announced QDQDGQD Rare Earth
ted:
manufacture, ofof
mpskraal mine sitempskraal mine site.m 2,700 t.p.a. to
19
Mixed Chloride Exploration Mining Production
Highlights of Less Common Metals:
• Trading globally: European Union 60%, Jg g y p ,Taiwan 30%, United States 10%
• Focused on permanent magnet industryFocused on permanent magnet industry• Significant supplier of NdFeB alloys• Supplies 20% of world’s Samarium Coba• Supplies 20% of world s Samarium Coba• 20 years of high quality production
O• Operates both co-reduction and specializtechniques for producing rare earth alloys
• Expanding existing facility and Installing nfor production of rare earth metalsp
Alloy ProductionSeparation Alloy Production
Japan, China, p , ,
alt Alloyalt Alloy
zed casting snew processes
20
Mixed Chloride Exploration Mining Production
LCM Expansion:
• 400% capacity expansion driven by full scustomers from Europe and Japan seeki
• New state of the art facility leased in samyplant.
• First special casting furnace now installeFirst special casting furnace now installecommissioned.Second furnace order in process• Second furnace order in process
• First phase of metal-making to be located• Objective is to process all GWMG output
Pr, Sm and Dy at LCM or GWTI• The fully integrated model, demonstrate
capacity and secure supply chain will furp y pp ystrong customer relationships.
Alloy ProductionSeparation Alloy Production
support of major ing NdFeB alloy.
me locale as existing g
ed and beinged and being
d at LCMt of Nd,
ed increase in alloyrther solidify alreadyy y
21
Mixed Chloride Exploration Mining Production
GWTI Highlights:
• Located in Troy, Michigan, USAy g• Strategic asset for revitalization of the Ra
the United Statesthe United States• Has undertaken work related to U.S. stra
the rare earth sectorthe rare earth sector• Versatile production capacity including:
P t t ll• Permanent magnet alloys• NiMH alloy for rechargeable batteries• “Super Alloy” production for aerospace m• Hydriding capability for solid-state hydrogy g p y y g
both rare earth and transition metal types
Alloy ProductionSeparation Alloy Production
are Earth industry in
ategic initiatives in
materialsgen-storage alloys, g g ys
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P j t d O t t SProjected Outputs – S* Hypothetical model based on standard Monazite REO di
REO REO Production*(Tonnes)
Lanthanum 1,084.0Cerium 2 334 0Cerium 2,334.0Praseodymium 250.0Neodymium 834 0Neodymium 834.0Samarium 125.0D i 34 0Dysprosium 34.0Yttrium 250.0TOTAL OF ALL 15 ELEMENTS
(T )5,015.9
(Tonnes)
l t d El telected Elementsstribution, assumes approximately 5,000 t.p.a. available