Outlook of Australian Mineral Sands Supply &
Avonbank Project Update
WIM Resource Pty Ltd
Global Titanium Feedstock Conference 2017
May 2017
Kunming, China
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Disclaimer
Outlook of Australian Mineral Sands Industry
Although signs of recovery have started to show in downstream sectors of titanium and
zirconium industry since 2016, new project investment in upstream resource sector is still
insufficient. Consequently, newly added production capacity in the next 3 years is expected to be
very limited;
Many current operating mines will be gradually closed down, and inventories will be sold out;
Unit production cost of existing mines will rise significantly: grade of in-situ ore is gradually
reducing, and strip ratio will increase;
Newly developed projects are facing various challenges: high infrastructure costs in regional
areas, lower %THM, higher trash HM components - the proportion of valuable minerals in HM is
getting lower, and the proportion of zircon in HM is getting lower;
Australian ilmenite supply is expected to show a downward trend in the next 3 years; it is expected
zircon supply shortage trend will appear by the end of 2017.
Decrease of Ilmenite supply from major Australian mines is due to appear in the next 5
years, and the pigment producers becoming more integrated in the mining cycle in
order to secure long term supplies
Currently Iluka has only one active mine in Australia (Tutunup), it is expected to
start-up Cataby in 2019 to provide feedstock for its SR plant
Sibelco’s North Stradbroke Island Project is expected to close in 2019
Tronox & Cristal to combine and likely to process all Ti through to pigment,
internally
New significant Ilmenite supplies reliant on the start up of large "Offshore Deposits"
after 5 years
WIM150, Donald, Avonbank & Thunderbird Offshore HMS Projects
Outlook of Australian Titanium Supply
About Us
WIM Resource Pty Ltd - an emerging
Sydney – based mineral sands resource
development company;
Resource status:
• WIM owns 100% of three HMS Projects:
Avonbank, Wedderburn and Bungallaly,
located in the world-famous Murray Basin
• Cumulative total JORC compliant
resource of near 1 billion tonnes of ore;
Company vision: Think ahead, Move
ahead -- with the aim of becoming one of
the world’s leading mineral sands
producers
5
Avonbank Project Location
➢ The Avonbank Project is located in the southeast of Australia, 300km northwest of Melbourne – the Capital
City of Victoria;
➢ Areas surrounding and within the project area is cleared of major native vegetation - area is mainly used for
cropping and grazing. The regional center – Horsham has a population of around 20,000, sits ca. located 15
km to the south of the project area.
Evaluation
MetricsNotes
ResourceAvonbank project JORC resource estimate (Indicated and Measured) stands at 463Mt @ 4% HM which could support a
mine life of over 32 years assuming a 1,500 tonne per hour ore processing speed.
GradeAverage HM grade ca. 4% including a high grade portion averaging 5.8%, VHM values in HMC from drilling are as high
as 82.2%;
MineralogyZircon content in HM is approximately 20.5%, rutile 2.8%, leucoxene 24.6%, ilmenite 32.8%, monazite 1.2%, and
xenotime 0.3%;
Mining Conditions
The deposit is consistent in the central block, with an 8km strike length (North-South), cross strike width of 6 Km, ore
body thickness averaging 8-12 meters. Preliminary studies on local groundwater indicate no major issues for dry mining
technique - which is favorable for mining cost control, strip ratio is estimated at 1.4:1 within central block of deposit;
Infrastructure
Existing infrastructure within close proximity of the project area such as road, railway, port, electricity, water, gas,
telecommunication. 15 Km to the regional center of Horsham, which has as an extensive range of equipment and
service providers;
Environment and
tenement
Project Area mainly used for agriculture, PFS indicates no major cultural heritage or environmental constraints. Project
area is secured by Retention License (RL2014), held 100% by WIM Resource Pty Ltd, for a period of up to 21 years
Avonbank Project - Overview
➢ Operating rail loading facility in centre of project
➢ Existing direct rail connection to Port of Melbourne
➢ Existing rail connection to Port of Portland
➢ Existing major water supply trunk nearby, with sufficient
water allocation availability
➢ Existing major power corridor running through project
➢ Existing skilled workforce and major township 15kms
from project
Existing Infrastructure
Pre-Feasibility Study - Near Completion
• 463Mt @ 4.0% THM (Measured and Indicated)
• Over 20km Drilling
• Low Strip Ratio (1.4:1)
MEAURED JORC RESOURCE
• High VHM
• Over 20% Zircon in HM
• 2-3% Rare Earths in HM
• Over 50% Titania in HM
QUALITY MINERAL ASSEMBLAGE
• Standard dry mining
• Standard MG12 spirals for WCP
• Standard dry MSP
STANDARD PROCESSING
Avonbank Project - Drilling on Site
Sheet-like Consistent Deposit
Mineralogy – High Zircon, Monazite and Xenotime
Zircon Grade Distribution Monazite Grade Distribution Xenotime Grade Distribution
20t BULK SAMPLE TEST
STANDARD WCP STANDARD MSP
Standard Processing Circuit
Bulk Sample Testing
Spiral Model Comparison Study
Ore Preparation
Ore Scrub & Screening
Simple & Conventional MSP
SUPPLY• Produce 75-100Kt/pa
• 32 years mine life
• Ability to flex supply
STABLE, LONG TERM SUPPLY
QUALITY>66.5% ZrO2
• <0.05% Fe2O3
• <0.01 Al2O3
• <0.12 TiO2
• Acceptable U+Th
• D50 = 45um
PREMIUM QUALITY
COST• MG 12 spirals for WCP
• Magnetics & HTR – MSP
• >85% pit-product recovery
STANDARD WCP & MSP
ZIRCON PRODUCTS
RARE EARTH PRODUCTS
SUPPLY7,500-10,000 t/pa REC
Offers a stable, long-term supply
STABLE, LONG TERM SUPPLY
QUALITYPremium Rare Earths
• Xenotime >33% HREO (Dy, Nd & Eu = Critical REO
• Monazite >55% LREO
• D50=46um: less down stream OPEX
PREMIUM QUALITY
COSTProduced as a co-product of
MSP circuit
High Recovery
Low Production Costs
STANDARD WCP & MSP
TITANIA PRODUCTS
SUPPLY175,000 t/pa
Offers a stable, long-term supply
STABLE, LONG TERM SUPPLY
QUALITYSuitable feed for Slag
Upgrade
Synthetic Rutile as future solution -historical pilot scale test successful
PREMIUM QUALITY
COSTHigh TiO2 units 57-60%
Low Production Costs (lower reductant & power related OPEX for smelter)
STANDARD WCP & MSP
Pre Feasibility Study
– Credible Consultants in the Industry
✓ Metallurgical & Process Flow Mineral Technologies
✓ Tailings Study BASF & Outotec
✓ Resource & Mining Model Optiro
✓ Detailed Mineralogy ALS Global
✓ Geotechnical Study ATC Williams
✓ Product Quality Assessment Downstream Chinese Majors
✓ Titania Product Study Outotec & CSIRO
✓ Environmental Study Okologie
✓ Cultural Heritage Study LandSkape
➢ Major changes in Mineral Sands Sector are expected within the next 3-5 years as a result of
the supply and demand dynamics interaction;
➢ WIM style offshore HM deposits represents a new opportunity in HMS sector;
➢ Avonbank Project is a high mineral value, low cost project;
➢ We aim to advance Avonbank project into production within the next 4-5 years, making WIM
the new force in global mineral sands supply;
➢ We highly welcome investors to be involved in our projects.
Investment Opportunity
COMPETENT PERSON STATEMENTS
The technical information contained within this presentation and associated source documents has been compiled by Mr Michael Winternitz & peer reviewed by MrAnthony Mason. Mr Winternitz is full time employee of WIM Resource Pty Ltd as Project Manager & Senior Geologist & is a member of the Australian Institute ofGeoscientists and Mr Mason is WIM Resource’s principal geological consultant, a member of AUSIMM. Both Mr Mason & Mr Winternitz have experience which isrelevant to the style of mineralisation and type of deposit under consideration and to the activity they undertaking to qualify as Competent Persons as defined in the2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’.
The principal personnel responsible for the preparation and review of the mineral resource or figures, referred to within this presentation and associated sourcedocuments are Mrs Christine Standing (Principal) and Mr Ian Glacken (Principal) of Optiro. The Mineral Resources at Avonbank mineral sands deposit referred towithin this presentation have been prepared by Mrs Christine Standing and reviewed by Mr Ian Glacken. Mrs Standing is a Member of The Australasian Institute ofMining and Metallurgy and Mr Glacken is a Fellow of The Australasian Institute of Mining and Metallurgy and a Chartered Professional Geologist. Both Mrs Standingand Mr Glacken have sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration to qualify as a Competent Person asdefined in the 2012 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mrs Christine Standing [BSc (Hons)Geology, Grad Cert (Min Econs), MAusIMM, MAIG] is a geologist with over 30 years’ extensive experience in the exploration and mining industry. She has beenconsulting in resource estimation and generating independent experts’ reports since 1988, and her skills include resource evaluation studies, grade control andreconciliation work. Christine is a Principal for Optiro in Perth and is involved in resource estimation, independent technical reviews, audits and valuations ofexploration assets.
DISCLAIMER
The details set out in this document is based on scoping study level of accuracy only (+/-35%), modelling or any metrics contained within this document areconsidered preliminary or conceptual in nature, based on work completed on the Avonbank Project & benchmarking from other similar HMS projects. All productiontargets are as such; conceptual in nature and are expected to change after further studies are completed.
COMPETENT PERSONS STATEMENT
WIM Resource Pty Ltd
Eddy Wu - CEO
+61 423 233 625
Sydney Office Contact Details
Suite 2004, Level 20, 201 Elizabeth Street, Sydney, NSW,2000,Australia
+61 2 9264 1990