VITAL METALS ANNUAL GENERAL MEETING

Transcription

1 VITAL METALS ANNUAL GENERAL MEETING ASX:VML 25 November 2013 Building a globally significant strategic metals company

2 Disclaimer & Competent Person Certain oral and written statements contained or incorporated by reference in this presentation, including information as to the future financial or operating performance of the Company and its projects, constitute forward-looking statements. All statements, other than statements of historical fact, are forward-looking statements. The words believe, expect, anticipate, contemplate, target, plan, intend, continue, budget, estimate, may, will, schedule and similar expressions identify forward-looking statements. Forward-looking statements include, among other things, statements regarding targets, estimates and assumptions in respect of tungsten, gold or other metal production and prices, operating costs and results, capital expenditures, mineral reserves and mineral resources and anticipated grades and recovery rates. Forward-looking statements are necessarily based upon a number of estimates and assumptions related to future business, economic, market, political, social and other conditions that, while considered reasonable by the Company, are inherently subject to significant uncertainties and contingencies. Many known and unknown factors could cause actual events or results to differ materially from estimated or anticipated events or results reflected in such forward-looking statements. Such factors include, but are not limited to: competition; mineral prices; ability to meet additional funding requirements; exploration, development and operating risks; uninsurable risks; uncertainties inherent in ore reserve and resource estimates; dependence on third party smelting facilities; factors associated with foreign operations and related regulatory risks; environmental regulation and liability; currency risks; effects of inflation on results of operations; factors relating to title to properties; native title and aboriginal heritage issues; dependence on key personnel; and share price volatility and also include unanticipated and unusual events, many of which are beyond the Company's ability to control or predict. For further information, please see the Company's most recent annual financial statement, a copy of which can be obtained from the Company on request or at the Company's website: The Company disclaims any intent or obligation to update any forward-looking statements, whether as a result of new information, future events or results or otherwise. All forward-looking statements made in this presentation are qualified by the foregoing cautionary statements. Investors are cautioned that forward-looking statements are not guarantees of future performance and, accordingly, not to put undue reliance on such statements. Competent Person: The information in this report that relates to Exploration Results and Mineral Resources is based on information compiled by Mr Mark Strizek (MD), an employee of the Company. Mr Strizek is a member of the Australasian Institute of Mining and Metallurgy (AusIMM) and has sufficient experience of relevance to the styles of mineralisation and the types of deposits under consideration, and to the activities undertaken, to qualify as a Competent Person as defined in the 2004 Edition of the Joint Ore Reserves Committee (JORC) Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves.

3 Company Overview and Structure Capital Structure ASX Code: Share price: Shares on Issue: Options on Issue: Market Cap (undiluted): *As at 22 November 2013 VML A$ M 80M ~A$9.6M Directors David Macoboy Chairman Mark Strizek - Managing Director Peter Cordin Non-Exec Director Andrew Simpson - Non-Exec Director Management Ian Hobson Company Secretary Jamie Williamson Exploration Manager Bayili Paul Pérré - Logistics Manager (Burkina Faso)

4 Vital Metals in the News The West Australian, 11 November 2013

5 Watershed in 2013: The Form Guide Environmental approvals completed World-class tungsten resource with significant growth potential Expanded Feasibility Study due for completion Q1 2014: Investigating potential to triple annual production Investigating potential for underground mining Strategic development partner secured High-value, clean scheelite concentrate Queensland is a good mining jurisdiction

6 Why Tungsten? Scheelite Wolfram Scheelita Scheeliet Tungsten Volfram Szelit Tungstênio

7 Tungsten is Vital! Produces hard, high density metals used in: Mining exploration Machining Defence Tungsten alloys used for aerospace and automotive manufacturing Hard Metals 60% Steel Alloys 22% Mill Products 10% Other 8%

8 Tungsten Outperforms

9 Where is Watershed?

10 Queensland: A Good Jurisdiction Local community and Queensland Government is supportive of the Project New Australian Federal Government has declared Australia is open for business Input costs for key services, contractors are reducing Australian Dollar is falling

11 Approvals Completed Environmental Approvals have been issued Indigenous Land Use Agreement (ILUA) completed Pastoral station agreements completed Mining Leases expected to be granted this year

12 Strategic Partnership JOGMEC earned a 30% interest in the Watershed Project for $5.4M JOGMEC have the right to assign their interest to a Japanese Corporation JOGMEC act as bank guarantor on loans to Japanese Corporations for project finance JOGMEC Seeks a Stable Supply of Natural Resources for Japan

13 World-Class Resource Robust independent mineral resource estimate 2012 Classified and reported using JORC Code and Guidelines Resource is open at depth and along strike Measured Indicated Inferred Combined WO 3 % Cut off Mt WO 3 % Mt WO 3 % Mt WO 3 % Mt WO 3 % WO 3 % Tonnes , , , , ,600

14 Set to Grow Prospective open pit drill ready targets on surface: Watershed South, Desailly and Desailly North Zebra Hill needs follow up work All targets within 5km radius of proposed process plant

15 Underground Potential Tungsten grades increase with depth MWD119 intersected 1.27% WO 3 from 302m Greisen mineralisation target at depth Potential for underground to add mine life after open pit

16 Outstanding Exploration Potential Name Tenement Elements of Interest Tonnage Range (kt) Grade Range Comments Watershed MDL127 W 49, % Watershed Deeps* MDL127 W 10,500 14, % Watershed South* MDL127 W 830-1, % Desailly North* MDL127 W 830-1, % Desailly* MDL127 W 1,150 1, % Mt Elephant* EPM W, Sn 1,000-3, % 2012 JORC resource update reported at 0.05% cut-off for 70,400t contained WO 3 *Exploration Targets: These Exploration Targets are conceptual in nature, and there has been insufficient exploration to define a Mineral Resource. It is uncertain if further exploration will result in the estimation of a Mineral Resource. Total Tungsten Potential W 64,000-71, %

17 Watershed DFS: Key Metrics Open pit mine, potentially followed by underground Hydraulic excavators and rigid body trucks Ore sorting and flotation plant 4,000-5,000tpa of concentrate (based on 3Mtpa production scenario) All concentrate for export JOGMEC link to development partner

18 Process Flow Sheet Watershed Flowsheet

19 Clean Concentrate High quality concentrate (>65% WO 3 ) No contaminants such as arsenic No radioactivity Concentrate can be shipped to Japan, China, US and Europe

20 Optimised DFS: A Unique Opportunity Strong tungsten outlook and weaker $A = compelling opportunity to expand production Two key studies underway to optimise mine plan: Increase annual production to 3Mtpa (estimated additional CAPEX of just $150M) Commence underground mining after completion of open pit Strong potential to deliver significant life-of-mine economic and production benefits Aim to increase mine life to +10 years: attractive for off-take Optimised DFS scheduled for completion Q1 2014

21 Watershed: A Vital Opportunity All significant approvals have been completed Low risk First World jurisdiction Queensland and Federal Governments supportive of mining Strategic partner JOGMEC link to potential funding pathway High value scheelite concentrate Exploration upside to drive future growth

22 Doulnia Gold Project: Burkina Faso Significant land holding within highlyprospective Birimian Greenstone Belt proven gold address Targeting shallow high grade gold mineralisation Close to critical infrastructure Recently moved to 100% ownership of all tenements Best assay results from 2013 drilling: 15.47g/t Au (incl. 92.8g/t Au) 1.35g/t Au 2.49g/t Au

23 VITAL METALS ANNUAL GENERAL MEETING ASX:VML 25 November 2013 Building a globally significant strategic metals company