The first large-scale Lithium mine in Namibia. February 2017

Transcription

1 The first large-scale Lithium mine in Namibia February 2017

2 Caution Regarding Forward Looking Statements This presentation contains forward-looking information within the meaning of applicable securities laws. Generally, any statements that are not historical facts may contain forward-looking information, and forward-looking information can be identified by the use of forward-looking terminology such as plans, expects or does not expect, is expected, budget, scheduled, estimates, forecasts, intends, anticipates or does not anticipate, or believes, or variations of such words and phrases or indicates that certain actions, events or results may, could, would, might or will be taken, occur or be achieved. Forward-looking information includes, but is not limited to: statements regarding the details regarding the proposed acquisition by Desert Lion Energy Inc. (the Company or DLE ) of HUNI-/URIB Investments (Pty) Ltd. and the Rubikon lithium project in Namibia (the Project ) and the expectation that the Company will consummate such acquisition generally upon the terms and in accordance with the timeline as currently contemplated; expectations regarding the initial targeted resource tonnage and grade for the Project; timing and structure for the Company s proposed going public transaction; the Company s planned work program for the Project and its exploration and development schedule and timetable; the rate at which electric vehicle penetration will increase and the resultant effect on global lithium demand. Forward-looking information is based on certain factors and assumptions management believes to be reasonable at the time such statements are made, including but not limited to, continued exploration activities, lithium and other metal prices, the estimation of initial and sustaining capital requirements, the estimation of labour and production costs, the estimation of mineral reserves and resources, the assumption with respect to currency fluctuations, the timing and amount of future exploration and development expenditures, receipt of required regulatory approvals, the availability of necessary financing for the Project, the completion of the proposed acquisition of HUNI and the Project, permitting and such other assumptions and factors as set out herein. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to: risks related to changes in lithium prices; sources and cost of power and water for the Project; the estimation of initial capital requirements; the estimation of labour and operating costs; the general global markets and economic conditions; the risk associated with exploration, development and operations of mineral deposits; the estimation of mineral resource tonnage and grade; the risks associated with uninsurable risks arising during the course of exploration, development and production; risks associated with currency fluctuations; environmental risks; competition faced in securing experienced personnel; access to adequate infrastructure to support exploration activities; the risks associated with changes in the mining regulatory regime governing the Company; completion of the environmental assessment process; risks related to regulatory and permitting delays; risks related to potential conflicts of interest; the reliance on key personnel; financing, capitalization and liquidity risks including the risk that the financing necessary to fund continued exploration and development activities at the Project may not be available on satisfactory terms, or at all; the risk of potential dilution through the issue of additional common shares; the risk of litigation. 2

3 Caution Regarding Forward Looking Statements Although the Company has attempted to identify important factors that could cause actual results to differ materially from the forward-looking information set out in this presentation, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update or revise any forward-looking information that is included herein, except in accordance with applicable securities laws. THIRD PARTY INFORMATION This presentation includes market, industry and economic data which was obtained from various publicly available sources and other sources believed by Imperus to be true. Although DLE believes it to be reliable, DLE has not independently verified any of the data from third party sources referred to in this presentation, or analyzed or verified the underlying reports relied upon or referred to by such sources, or ascertained the underlying economic and other assumptions relied upon by such sources. DLE believes that its market, industry and economic data is accurate and that its estimates and assumptions are reasonable, but there can be no assurance as to the accuracy or completeness thereof. The accuracy and completeness of the market, industry and economic data used throughout this presentation are not guaranteed and DLE does not make any representation as to the accuracy of such information. CAUTIONARY NOTE REGARDING HISTORICAL TECHNICAL DATA The reader is cautioned that the above noted technical data is considered historical in nature as it is based on prior data and reports prepared by previous owners of the property. The Company was not able to verify the quality assurance and quality control processes and methods used in compiling this historical technical data. While there can be no certainty that the historical technical data is accurate, the Company believes that the historical technical data is relevant to the overall potential of the Project as it may indicate the presence of lithium mineralization. As sufficient work to complete the classification of the mineralization on the property as current mineral resources or mineral reserves has not been completed, the Company is not treating the historical technical data as current and does not have a current mineral resource or mineral reserve in respect of the Project. This technical data cannot, therefore, be treated as NI compliant and should not be relied upon. CAUTIONARY NOTE REGARDING RESOURCE ESTIMATES The potential quantity and grade of the Project outlined above is conceptual in nature, there has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in the target being delineated as a mineral resource. Estimates provided are based on the initial prospecting works carried out by Benzu Minerals, three targets areas have been delineated which could deliver sizeable, high grade (2.5% Li 2 O) resources through further systematic exploration. 3

4 Substantial Market Opportunity: Lithium Lithium demand, tonnes lithium carbonate equivalent/lce SOURCE: Deutsche Bank Lithium Report 4

5 The Dawn of the Lithium Era in Africa Rubicon: hard-rock lithium asset with world-class lithium grades High estimated avg. lithium grades of +2.5% Li 2 O (1) Substantial historical resource intelligence from mining activities between 1930 and 1994 Close proximity to existing infrastructure in Karabib, Walvis Bay and Windhoek BACKGROUND IMAGE: Past-producing Rubicon mine site, with clear pegmatite outcrops. 2/8/2017 (1) Refer to Forward Looking Statement Cautionary Note Regarding Historical Technical Data and Cautionary Note Regarding Resource Estimates 5

6 Rubicon Lithium Project Scope 2 Conversion Plant 1 Mine and Concentrator Li Desert Lion Energy will operate two sites: 1. Mine and concentrator: located 30-km south-east of Karabib, Erongo Li Legend Project Location Airport Port 2. Conversion plant: located in Walvis Bay. Will transform concentrate to lithium carbonate for export Highway Railway 6

7 Rubicon Land Package 8 historic lithium mineral claims covering 1.5 km 2 Within 301 km 2 with known lithium bearing pegmatitic mineralization Legend Rubicon Claims Pegmatite Outcrops Past-Producing Mines Exclusive Prospecting License Key Target Zones, Known Lithium Occurrences Secondary Targets, Known Lithium Occurrences (Future) Potential Pegmatites to Field Check Zoned Pegmatites with Lepidolite Zoned Pegmatites with Lepidolite RUBICON Potential Pegmatites to Field Check Zoned Pegmatites with Li-Ta Bearing Potential Potential to expand land package by >350 km 2 with additional pending EPL applications 7

8 Site Layout and Existing Infrastructure Mineral Claims Map 2 existing pits (former mining sites), adits and 1 shaft. Operational, well-maintained camp 8

9 Geology and Current Targets Initial Resource Target of % Li 2 O (1). Substantial historical resource intelligence (1) Refer to Forward Looking Statement Cautionary Note Regarding Historical Technical Data and Cautionary Note Regarding Resource Estimates 9

10 Rubicon Lithium Project Geology Cambrian Karibib Pegmatite Field with pegmatite intrusions hosted in Damaran System Pegmatite and Lepidolite Considered one of the most extensive pegmatite fields in the world (Baldwin, 1989) Pegmatites belong to a group of internally well-zoned Li-Cs-Be-Rb pegmatites Historic mining of two ellipsoidal ore bodies 1st body is 320m long and 25-35m wide and dips 45 to the NE, but flattens to at depth 2 nd ore body dips 30 to the NE and flattens to 8-12 at a depth of 20m Massive Lepidolite Mineralization Structurally, the lithium bearing pegmatite is an antiform, with several recurring folds (significant volume potential) within exploration area Lithium mineralization consists in lepidolite, petalite and amblygonite 10

11 Rubicon Project is a World Class Target Reserve and Resource Comparison for Global Lithium Projects (Size of Bubble = Contained LCE) 3.5% 3.0% Future Exploration (1) Target Considered best in class 2.5% Initial Target (1) Greenbushes Ore Grade (Li 2 O) 2.0% 1.5% 1.0% 0.5% Mt Marion - Neometals James Bay - Galaxy Whabouchi - Nemaska Pilgangoora - Altura RB Energy - Quebec Lithium Rose - Critical Elements Pilgangoora - Pilbara Minerals Jadar - Rio Tinto Kings Valley - LAC 0.0% Resource Size (Mt) (1) Refer to Forward Looking Statement Cautionary Note Regarding Historical Technical Data and Cautionary Note Regarding Resource Estimates 11

12 Proven Management Team Tim Johnston President & CEO 10+ years of experience Former Senior Lithium Consultant, Hatch Evaluated hundreds of lithium projects globally Managed lithium projects for Rio Tinto, Bacanora, AMG-NV, and many others Co-authored 7 technical publications in the lithium sector Cesare Morelli Vice President, Exploration 29+ years of experience Former Exploration Manager across Africa, De Beers Currently Technical Director of Rainbow Rare Earths Ltd. & Benzu Minerals Managed exploration projects across Africa with De Beers Previously Exploration Manager for Africa with BHP Billiton Rob Chalmers Head of Corporate Development & Capital Markets 18+ years of experience In-depth Investment Banking experience with Sprott Securities, Canaccord Capital Over 18 years experience advising companies on capital raising and M&A Investment banking experience with Sprott Securities, Canaccord Capital, and Macquarie Capital Markets 12

13 Development Schedule Execution Planning Phase 1 - PEA Phase 2 Feasibility Phase 3 - Execution Activities Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Phase 1 Indicated and Measured Resource Definition Environmental Baseline Environmental Studies EIA and Environmental Approvals Feasibility Study Beneficiation Conversion Plant Execution EPCM Beneficiation First Concentrate EPCM - Conversion Plant First Lithium Carbonate/ Hydroxide Planned IPO/ RTO 13

14 Current Status Phase 1 Phase 1 Activities: Inferred Resource Definition Market studies Metallurgical Testwork Program Environmental Permitting Analysis Social and Community Engagement Preliminary Economic Analysis Key Deliverables Geological and structural mapping of packages within the EPL, and delineation of inferred resource. Preliminary economic analysis report BACKGROUND IMAGE: Panoramic view of the Rubicon Project site. 14

15 Summary Desert Lion Energy 1 2 Desert Lion Energy is focused on providing a long term sustainable solution for low-cost supply of quality lithium chemicals Seeking partners to collaborate with in the development of the world class Rubicon Lithium Project 3 Planning IPO/RTO and next capital raise for Q BACKGROUND IMAGE: View towards the North of the Rubicon site. 15

16 Contact Details Rob Chalmers Head of Corporate Development and Capital Markets BACKGROUND IMAGE: Area within the historic mining claims. 16

17 Appendices BACKGROUND IMAGE: Area within the historic mining claims. 17

18 Hard Rock vs. Brine: Direct Comparison Category Salt Lake Brines Hard Rock Deposits Number of Processing Steps ~10 ~12 Number of Reagents ~7 ~7 Chemistry Cl SO 4 Li Recovery 30-40% 70-80% General Infrastructure Requirements High Low Development Timeline 5+ years 3-4 years Weather Dependent Yes No Capital Intensity $13,000-16,000/ a. tonne LCE $8,000-10,000/ a. tonne LCE Operating Costs $3,500-$4,500/ tonne LC $3,800-$5,000/ tonne LC 18

19 Processing Lepidolite vs. Spodumene Parameter Units Spodumene Lepidolite Chemical Formula - LiAlSi 2 O 6 KLiAl 2 Si 3 O 10 (F,OH) 3 * Theoretical max Li content %Li 3.8% % Concentrate target % Li 2 O 5-7% 5-7% Calcination temperature Processing methodology - ~1150 o C ~800 o C - Concentrate + acid roast leach Concentrate + acid roast leach or sulphate roast * Lepidolite exists in many forms including K 2 (LiAl) 5-6 Si 6-7 Al 1-2 O 20 (F,OH) 4 and K 2 Li 2 Al 4 Si 7 O 21 (F,OH) 3 19

20 Property History The Desert Lion Lithium Project and the applicable mining claims were mined intermittently between 1930 and 1994 Past production of approximately 17,000 tonnes of lithium mineral concentrate via small scale open pit and underground mining methods for ceramics and glass industry Reported head grades varied between 1.70% and 3.75% Li 2 O (1) Most recently held by LiCore Mining (Pty) Ltd., who completed rock sampling, mapping, and ground geophysics ~1930: Kloechner German mining company mined lithium and talc 1968: Anglo American 1998: Awemde Holdings Mining (5-10ktpa) from 1970 to 1998 Namibia Lithium Mining Mining and minimal underground drilling Black Fire Minerals Rock sampling and 12 diamond drill holes (1) Refer to Forward Looking Statement Cautionary Note Regarding Historical Technical Data 20