Mt Carbine Tungsten Project
ASX: III
Resources Investment Expo
Melbourne Oct‘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.
Icon Icon Icon Icon Icon Icon Icon Icon CorporateCorporateCorporateCorporateCorporateCorporateCorporateCorporate
Dr Andrew White
Chairman
Dr John Bishop
Managing Director
Icon Resources Ltd listed June ’06
ASX code: III
Issued Capital: ~73M shares
(year range 3.5-19c; currently ~11c)Managing Director
Steve Bartrop
Non-executive Director
Darcy Milburn,
Exploration Manager.
(year range 3.5-19c; currently ~11c)
~4M unlisted options
(exercisable at 30+c)
Web Site:
www.iconresources.com.au
Icon ProjectsIcon ProjectsIcon ProjectsIcon ProjectsIcon ProjectsIcon ProjectsIcon ProjectsIcon Projects
Icon Resources is an ASX-listed emerging
tungsten producer and diversified explorer
with projects in eastern Australia. They
include:-
Tungsten at Mt Carbine (N Qld), Icon’s
100% owned flagship project on track for
early development
Copper-Zinc at Fitzroy Project (central
Qld), Inferred Resource: 1.75Mt @ 1.7% Cu
+ 2% Zn. Planned exploration program to
expand resource
Gold at Peel Fault Project (NE NSW).
Exploration drilling scheduled for 4Q09
Tin at Tara Project (central NSW).
Exploration drilling scheduled for 1Q10
Copper-Gold-Uranium, Zinc, Nickel
and Iron Ore exploration targets in NW Qld
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
Geological model gives a
‘Target Mineralisation’ of
55-60Mt @ 0.07-0.09% WO3
includes a JORC compliant
Inferred Resource of 9.6Mt at
~0.2% WO3 beneath open cut
Excellent potential beneath
old working
Excellent potential beneath
old workings adjacent to
open cut
Tailings: ~2Mt @ 0.11%
WO3 (JORC compliant)plus ~12Mt of potentially
ore grade material in the
waste and reject dumpsPlan view of Mt Carbine open cut, tailings and dumps, and
mine lease boundaries
Geological ModellingGeological ModellingGeological ModellingGeological ModellingGeological ModellingGeological ModellingGeological ModellingGeological Modelling
WO3 % Grade-Tonnage Curve, Mt Carbine Deposit
Recent geological modelling by Geostat Services has defined a ‘Target Mineralisation’ of ~55Mt @ ~0.08% WO3 using uncut values.
WO3 % Grade-Tonnage Curve, Mt Carbine Deposit
0
0.2
0.4
0.6
0.8
1
1.2
0 5 10 15 20 25 30 35 40 45 50
Millions
Tonnes (Mt)
WO
3%
Gra
de
Plot shows tonnage against average grade. Data points are cut-off grades
The Geological model: Blocks >0.15% WOThe Geological model: Blocks >0.15% WOThe Geological model: Blocks >0.15% WOThe Geological model: Blocks >0.15% WOThe Geological model: Blocks >0.15% WOThe Geological model: Blocks >0.15% WOThe Geological model: Blocks >0.15% WOThe Geological model: Blocks >0.15% WO33333333
Scoping StudyScoping StudyScoping StudyScoping StudyScoping StudyScoping StudyScoping StudyScoping Study
A Scoping Study has been commissioned to determine the viability of Mt Carbine as defined by the present geological model.
Results are encouraging and are now expected next week.
As well as demonstrating viability, the mine modelling will show which are the areas of highest priority for infill drilling.
Whittle optimisation shows a
cut back pit extracting a
further 6 to 8Mt (depending
on mining parameters used)
of Mt Carbine ore.
Upside Potential: GradeUpside Potential: GradeUpside Potential: GradeUpside Potential: GradeUpside Potential: GradeUpside Potential: GradeUpside Potential: GradeUpside Potential: Grade
Estimation of true grade of Mt Carbine is difficult due to nuggety nature of the mineralisation.
The current model grade is based on visual estimates determined by the previous operation from 39 drillholes
A comparison of the modelled open cut and the calculated tonnage from the records suggests that the model grade should be up to 25% higher
Profitability is very sensitive to grade: an increase of 25% in grade increases the net cash flow by ~250%
Conclusion: present model grade is a conservative minimum
Strategy: To determine the true grade by:-
(1) Assaying all existing drill core
(2) Infill drilling (scheduled for 4Q09)
(3) Bulk sampling of pit floor (part of pre-feasibility)
Upside Potential: TonnageUpside Potential: TonnageUpside Potential: TonnageUpside Potential: TonnageUpside Potential: TonnageUpside Potential: TonnageUpside Potential: TonnageUpside Potential: Tonnage
Present geological model is based on minimal information (8,222m from 39 drillholes)
Several zones can be extended by further drilling (eg, Iron Duke has only two drillholes; Ruby has a break of +100m, etc, etc)
A number of potential mineable blocks have been excluded from the present mining model due to lack of information
Profitability is sensitive to tonnage: an increase of 50% in tonnage increases the net cash flow by ~250% (ie half as sensitive as grade, but still very significant)
Conclusion: present model tonnage is a very conservative minimum
Strategy to significantly increase tonnage by:-
(1) Infill drilling
(2) Plus exploratory drilling beneath adjacent old workings –previously ignored
Upside Potential: Expanded open cutUpside Potential: Expanded open cutUpside Potential: Expanded open cutUpside Potential: Expanded open cutUpside Potential: Expanded open cutUpside Potential: Expanded open cutUpside Potential: Expanded open cutUpside Potential: Expanded open cutLimited drilling in the vicinity of the open cut
Labelled examples show good intersections close to the boundary of the presently defined mineralisation
Image includes all drillholes. Intersections >0.1% shown in purple
7m @ 0.33%
No
DrillingAll %’s are
WO3
CB18 7m @ 0.33%
& 11m @ 0.41%
CB40 13m @ 0.34%
& 23m @ 0.53%
& 7m @ 0.41%
CB39 19m @ 0.45
CB14 3m @ 2.25%
(vis. est.)
CB04 15m @ 1.3%
(vis. est.)
One drillhole tests old workings to north of
the open cut
Greater Mt Carbine Exploration PotentialGreater Mt Carbine Exploration PotentialGreater Mt Carbine Exploration PotentialGreater Mt Carbine Exploration PotentialGreater Mt Carbine Exploration PotentialGreater Mt Carbine Exploration PotentialGreater Mt Carbine Exploration PotentialGreater Mt Carbine Exploration Potential
WASTE
DUMP
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 WHighest melting point and tensile strength of all metals Lowest coefficient of expansion of all metalsVery heavy (similar to gold) - high thermal and electrical conductivity
Tungsten carbide is the hardest material next to diamond
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 PriceTungsten PriceTungsten PriceTungsten PriceTungsten PriceTungsten PriceTungsten PriceTungsten PriceTungsten 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.
Concentrates now back to ~US$150 and rising
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.
from International Tungsten Industry Association Meeting, Vancouver Sep 2009
from International Tungsten Industry Association Meeting, Vancouver Sep 2009
Why Now?Why Now?Why Now?Why Now?Why Now?Why Now?Why Now?Why Now?
from Talking Tungsten PDAC, Mar 2009
Why Icon?Why Icon?Why Icon?Why Icon?Why Icon?Why Icon?Why Icon?Why Icon?
Mt Carbine is a significant, near ready-to-mine tungsten resource
NPV of +50 cents per share on present knowledge of the resource
from Talking Tungsten PDAC, Mar 2009
� Mt Carbine is one of these projects!