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2/15/2012
Investor Update
Heavy Rare Earth (HREE) Discovery
in the Northern Territory of Australia
IAN BAMBOROUGH, Managing Director
TUC Resources Eastern States Road Show,
15 February – 17 February 2012
TUC Resources Ltd - ABN: 94 115 770 226
RESOURCES
• HREE Market
• Stromberg HREE Prospect – Xenotime, Clay Style and Roll Front
Contents
• Planned Work 2012
• A Brief Introduction to the Company
• TUC’s Unique Value Position
• Scaramanga & District HREE’s
• Value Proposition
About TUC Resources Ltd
Company Position; ASX TUC
• 124.4M Shares at A$0.185
Market Cap. A$22M (13 February 2012)
Darwin
Tennant Creek
16,800km2
8 Greenfields Projects
across the NT
• Well Funded ~$3.55M (31 December 2011)
• Supportive Registry
+1200 Shareholders
What is TUC’s Unique Value Position?
• 85% HREE and Importantly, Evidence of Simple Mineral Processing Options
Dy2O3
Er2O3 Eu2O3
Gd2O3 Ho2O3
Lu2O3
Nd2O3
Pr6O11
Sm2O3 Tb4O7
Tm2O3
Yb2O3
Y2O3
Stromberg HREE Rare Earth Mix
Ce%
La%
Gd% Nd%
Pr% Y%
Typical Light REE Mix, Similar to Mt Weld - Lynas
LREE
HREE
Other HREE Prospects ~21%-40% HREE eg Avalon Nechalacho
In-situ Values/Kg No recovery implied,
Deposit grades must also be
considered;
~$250-260/Kg
Dec 2011Prices
~$100-$120/Kg
~$175/Kg
1377 1902
2799
1353
2240
3447
0
500
1000
1500
2000
2500
3000
3500
4000
2010 2015 2020
Ton
nes
per
An
nu
m
Dysprosium Oxide
Demand Supply Gap Forecast to Grow
Source: IMCOA – Öko-Institut; Northern Minerals Investor Presentation Jan 2012
$-
$500.00
$1,000.00
$1,500.00
$2,000.00
$2,500.00
$3,000.00D
ec
-09
Fe
b-1
0
Ap
r-1
0
Ju
n-1
0
Au
g-1
0
Oc
t-1
0
Dec
-10
Fe
b-1
1
Ap
r-1
1
Ju
n-1
1
Au
g-1
1
Oc
t-1
1
Dec
-11
Fe
b-1
2
Nd - LREE
Dy - HREE
2 per. Mov. Avg. (Nd - LREE)
2 per. Mov. Avg. (Dy - HREE)
Price Sensitivity of HREE’s – deposit grade implications
Dysprosium Oxide
vs.
Neodymium Oxide
• Dysprosium Price Curve Steeper
• Dysprosium Price Level Since December 2011
Source: Metal Pages
Pri
ce $
/Kg
FO
B C
hin
a
• Higher HREE Prices mean lower grade deposits are very significant
Multiple Active REE Prospects
= Multiple TUC REE
targets delineated
= Existing/Historic
prospects
= TUC Tenements
= TUC Application
Tenement
Stromberg
HREE Discovery
Quantum LREE
Discovery
Scaramanga
HREE Prospect
Daly
Pine Creek
Clean Energy Use
Stromberg HREE Prospect
Rich in Valuable:
• Dysprosium
• Terbium
• Yttrium
N
Further Airborne
Radiometric
Anomalism
7m @ 1% TREO,
95%HREE/TREO
7.5% Dy/TREO
0.8% Tb/TREO
64% Y/TREO
Stromberg - Serious Prospect Strike Length
5m @ 0.47% TREO,
80%HREE/TREO
8.7% Dy/TREO
0.9% Tb/TREO
71% Y/TREO
3m @ 0.74% TREO,
81%HREE/TREO
8.8% Dy/TREO
1.2% Tb/TREO
60% Y/TREO
1m @ 0.22% TREO,
87%HREE/TREO
7% Dy/TREO
0.8% Tb/TREO
66% Y/TREO
6m @ 0.43% TREO,
78%HREE/TREO
7.5% Dy/TREO
1.1% Tb/TREO
59% Y/TREO
Serious Economic Potential HREE’s – shallow – quicker to drill/develop
50 Metres
200m
150m
Section facing
Northwest
STRC53:
8m @ 0.72% from surface
718,800m 718,900m
Recent Drilling
Previous Drilling
>0.2% TREO
>0.1% TREO
>0.05% TREO
Target Zone
Sandstone Siltstones and Shales
= 6m average thickness at 0.56% TREO;
Dysprosium Oxide 7.34% TREO;
Terbium Oxide 0.86%/TREO;
Yttrium Oxide 71%/TREO
(2ppm Thorium) .
Stromberg Mineralogical Xenotime Concentrate
• A possible simple processing flow sheet could lead to speedier development.
• Average of 3.5ppm Thorium for all assays above 0.2% TREO;
• Average of 195ppm Uranium for all assays above 0.2% TREO.
Xenotime can offer simple physical processing (lower capital costs possible)
Magnetic Separation
Gravity Spirals
Xenotime Concentrate
Possible processing route for Xenotime ores at Stromberg; Adapted from British Geological
Survey – Minerals UK paper on ‘Rare Earth Elements’, November 2011Xenotime Concentrate
200m
150m
719,650m 719,700m
Significant thickening
of REE mineralisation
in vicinity of interpreted
fault (damming).
Section facing Northwest 50 Metres
Mineralisation also associated with clays and still moving
CLAY ZONE
5m @ 0.40% from 5m;
• HREE Clay Zones - Potential for Chinese Ionic Clay Style Zones
• Offers potential for simpler leach and precipitation of HREE’s (metallurgical test work
in progress)
Hidden Potential
Altered
Sandstone
In Context of
Planned TUC
Drilling
Source and
Feeder Fault
Model
Roll Front
Model,
HREE In Context of
Recent TUC Drilling
Stromberg
Prospect
0mRL
-100mRL
Targeting via completed detailed Airborne Geophysics (EM)
Potential for an
in-situ leach
prospect
Scaramanga HREE Prospect
(Stromberg District)
Scaramanga HREE Prospect
Good XRF soil survey results
comparable to parts of
Stromberg soil anomalism –
HREE potential Confirmed
Stromberg
HREE Prospect
N
Scaramanga –Nearby HREE Potential
District HREE Potential
• Potential for critical mass
Stromberg
HREE
Further
Potential in
Application
Tenement
• Possible to Significantly Impact
ROW HREE Market
HREE
Exploration
Target
Scaramanga
HREE
Prospect
EL27151 Moratorium
George and Damian Huddlestone
Traditional Owners of land under EL27151
Native Title Claimants over EL25222 (Stromberg)
At Stromberg November 2011 (Annual site visit)
Stakeholders – Building Relationships
PLANNED WORK FOR 2012
Timing Area Commodity Exploration Type
March – August Stromberg Dysprosium
Yttrium
Terbium
HREE’s
RC & Diamond
Drilling (towards
mineral Inventory)
March - July Stromberg Dysprosium
Yttrium
Terbium
HREE’s
Metallurgical
Diamond Drilling
September Scaramanga
Stromberg District
Potential
HREE First Phase
Exploration Drilling,
RC
September District Potential –
Pine Creek Project,
HREE First RC Drill Test
August -
November
Stromberg Dysprosium
Yttrium
Terbium
HREE
RC & Diamond
Drilling (towards
resource definition)
Stromberg 2011 2012 2013 2014 2015 2016 2017
Stakeholder Engagement
Exploration
JORC Resource Drilling
Strategic Alliance Partner
Engagement
Scoping Study
Metallurgy Test Work & Drilling
Environmental EIS
Pre Feasibility Study
Sales Contracts
Metallurgy Pilot Plant
Feasibility Study
Project Financing and Approvals
Processing Design and
Construction
Establish Mining Operation
Start Up & Production
Scaramanga District Targets Stromberg
Planned Stromberg Development Schedule – Parallel Opportunities
Stromberg Scaramanga District Targets
Stromberg Scaramanga District Targets
!
Cert
ain
ty
+
-
Cert
ain
ty
At Stromberg (and district); Investors and TUC, have the
opportunity to take a ‘First Mover Advantage’, with respect to
discovering a possible supply, of a significant portion of ‘The Rest
of the World’s’ Dysprosium and HREE Market;
The Company has prepared this presentation. Whilst the information contained in this presentation has been
prepared with all reasonable care from information provided by the Company and from sources, which the Company
believes are reliable, no responsibility or liability is accepted by TUC Resources for any errors or omissions or
misstatements, however caused. To the maximum extent permitted by law, TUC Resources, its directors officers,
employees and agents disclaim liability for any loss or damage which may be suffered by any person thought the
use or reliance on anything contained in or omitted in this presentation.
Certain information in this presentation refers to the intentions of TUC Resources, but these are not intended to be
forecasts, forward looking statements or statements about future matters for the purposes of the Corporations Act or
any other applicable law. The occurrence of events in the future are subject to risks, uncertainties and other factors
that may cause TUC Resources actual results, performance or achievements to differ from those referred to in this
presentation. Accordingly, TUC Resources Ltd, its directors officers, employees and agents do not give any
assurance or guarantee that the occurrence of the events referred to in this presentation will actually occur as
contemplated.
TUC Resources Ltd Directors and associates own shares in TUC Resources. The Company recommends investors
obtain their own independent financial and accounting advice before making any financial investment in reliance
upon information contained in this publication.
Competent Person
The information in this report that relates to Exploration Results is based on information compiled by Ian
Bamborough, who is a Member of The Australian Institute of Geoscientists. Ian Bamborough is a fulltime employee
of TUC Resources Ltd. Ian Bamborough has sufficient experience which is relevant to the style of mineralisation
and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person
as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources
and Ore Reserves’. Ian Bamborough consents to the inclusion in the report of the matters based on his information
in the form and context in which it appears.
Disclaimer
Ian Bamborough
Managing Director
ibamborough@tucresources.com.au
+61 (0)8 8947 0944
Main & Exploration Office
Unit 2, 59 Winnellie Road,
WINNELLIE NT 0820
Phone: +61 (0)8 8947 0944
TUC Resources Ltd
15 Lovegrove Crescent
Mount Claremont WA 6010
Phone: +61 (0)8 9384 3284
www.tucresources.com.au
ASX:TUC
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