Mark Arundell - Imex Consulting - Hillview Vermiculite Deposit

Hillview Vermiculite

Mark Arundell

Disclaimer

Competent Persons Statement The information in this presentation, which relates to Mineral Resources and exploration results, has been reviewed by Mr Mark Arundell. This information, in the opinion of Mr Arundell, does not comply with the reporting standards of the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Arundell is a Member of the Australian Institute of Geoscientists and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which they are undertaking to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Arundell is a consultant to Jodama Pty Ltd and consents to this presentation.

Forward Looking Statement This presentation includes certain ‘forward looking statements’. All statements, other than statements of historical fact, are forward looking statements that involve various risks and uncertainties. There can be no assurances that such statements will prove accurate, and actual results and future events could differ materially from those anticipated in such statements. Such information contained herein represents management’s best judgment as of the date hereof based on information currently available. The company does not assume the obligation to update any forward- looking statement .

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The IMEx Group – Experience Potash - Exploration Projects and Regional Studies

Congo

Danakil

Nagaur (India & Pakistan) Carlsbad

Michigan Elk Point Basin Paradox Basin

Neuquen

Udon Thani

Canning Carnarvon Adavale

Oman

Afghanistan

Sicily

Khemiset

North Caspian Catalonia

Maritimes

Atacama

Sergipe

Zechstein Belarus

Uralian

IMEx Office

Amazon Gabon

Timaru

Rhine

Amadeus

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 What is Vermiculite?  Why Vermiculite?  Hillview – Geology & Resource  Hillview Platinum  Going forward….

Without a market, a deposit is merely a geological curiosity - Harben

Why Industrial Minerals?

  Essential raw materials for a wide range of industrial and domestic products

  IM are high volume - low value, or low volume - high value, but are vital commodities

 Demand is consistent and long term  Markets for these minerals are typically by off take

agreements   Exposure to commodity price cycles is less pronounced   Long term cash flows provide solid platform for growth  New technology can quickly expand existing markets

IMEx Consulting 5 Gulf Resources, 2010

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What is Vermiculite?

 Vermiculite is a mica - sheet silicate.  Expands to many times its original volume

when heated – exfoliation  “Vermiculite” is derived from the Latin

vermicularis (worm-like)

Vermiculite


Exfoliation


Exfoliation

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Why Vermiculite?

 Vermiculite various attributes include :  fire resistance  low thermal conductivity  high liquid absorption capacity  inertness  low density

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Uses & Properties - i

 Agriculture/Horticulture (50%)*   Exfoliated vermiculite improves soil aeration of “sticky” (clay)

soils & moisture retention characteristics of sandy soils.   Vermiculite is used in the fertilizer and pesticide market because

of its ability to act as a bulking agent, carrier, and extender.

 Aggregate (20%)*   Plasters & concrete – lightweight, good thermal insulation   Special plasters include fire protection & soundproofing products

- vermiculite is combined with a binder.

* USGS, 2014

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Uses & Properties - ii

  Insulation (5%)*   Exfoliated vermiculite - fill pores & cavities in masonry

construction & hollow blockwork - enhance acoustic properties, fire rating, & insulation performance.

  Finer grades of exfoliated vermiculite, combined with potassium or sodium silicate, are used to produce insulation shapes.

  Vermiculite-base insulation shapes to resist attack by molten aluminium - 2nd insulation in the aluminium production process.

 Other uses (20%)*   Refractory-insulation gunning & castable mixes & vermiculite

dispersions.   Finer grades of exfol. vermiculite in automotive brake linings.

* USGS, 2014

Flake Size

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Dupre Minerals website

Production & Reserves

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USGS, 2014

Data in thousand metric tonnes


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Regional Geology

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Minfo 39, 1993

Ordovician

Nyngan

To/enham

Tullamore

Condobolin

0 30km

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Ural Alaskan Intrusions

 Platinum : placers from the Urals (Fifield)  Pt derived from UM-MF intrusions  Km scale zoned dunite, wehrlite, CPX,

gabbro, hornblendite, monzonite  UM – Platinum  MF – vermiculite (← biotite)  Alaska, Fifield, Urals, Columbia

Tottenham Vermiculite

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Hillview

Tigers Creek Hillview

Hylea

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 1988 : 16m @ 4.3g/t Pt in Hillview laterite – mag targets under cover

 1989-1990 : further Pt min – considered not economic

 Vermiculite recognised in PGM exploration  1991 : vermiculite focus

Hillview “Outcrop”

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Tottenham Magnetics

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Bulbodney

Hylea -‐ Tigers Creek

Hillview

Kerrs

Tottenham Drilling

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Bulbodney Hillview

Hylea -‐ Tigers Creek

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 Helix Resources  Drilling : 309 RAB holes for 14,600m  Hillview Resource (Martin, 1998):

 Inferred - 12.4 Mt @ 32% vermiculite;  Measured - 2.3Mt @ 32% vermiculite.

Hillview Resource

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Minfo 39, 1993 Hillview RAB drilling on magneBcs/aerial photo

Hillview Resource

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Hillview RAB cross secBon 6427849N

20m

Cover

Saprolite

Basement

Hillview Resource

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Hillview Resource +0.45mm

Hillview Resource

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Hillview Resource +0.45mm

Hillview Resource

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Hillview – Base of Trans Cover

Hillview Resource

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Hillview – Base of Saprolite

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Mining & Processing

 Shallow – top 40m  No blasting, no crushing  Clay – non-sticky → washing  Air (coarse) and/or flotation (fine)  Contaminant free  High exfolation properties cf Palabora

Mar4n, 1998 & Minfo 39, 1993

Processing

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Vermiculite

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Minfo 39, 1993

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Marketing - Helix

 30,000 tpa operation (+70 year operation)  Aus : 5,000 tpa  Japan / Europe : 5,000 – 10,000 tpa

 2001 : Sold (80%) to AVI (Imdex) for $500,000 (implied value : $0.625M)

 2002 : Imdex sold Mud Tank (& Hillview) to Imerys for $4.85M (implied value : $1M)

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Marketing - IMEx

 Who is your consumer?  Aust : three “exfoliators”

 What is the local market?  ~2,000 - 10,000 tpa

 Where do they source their material?  Brazil & South Africa

 Will they be interested?  Yes..very much so!

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Marketing - IMEx

Gulf Industrials, 2012

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Hillview Platinum

 1988 : 16m @ 4.37g/t Pt in Hillview laterite – mag targets under cover

 1989-1990 : further Pt min – considered not economic – issues with Fire Assay

 1991 – Vermiculite focus  So how much Pt is present?

Hillview Pt Resource

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Pt 0.1g/t envelope

Section Hillview RAB cross secBon 6427730N

25m

Cover

Basement

Pt 0.5g/t envelope

Saprolite


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Verm - Meas

Pt 0.1g/t envelope


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Pt 0.1g/t envelope

Pt 0.5g/t “envelope”


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Pt 0.5g/t shell

Verm - Meas

RTP magnetics

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Hillview Platinum

 2014 : laterite Pt resource calculated  583,000 tonnes @ 1.30 g/t Pt (0.5 g/t cutoff)  25Koz Pt ($1477/oz)  0.1g/t cutoff : 6.8Mt @ ?? g/t Pt

 Free dig  Multiple untested magnetic anomalies

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Fifield Belt Platinum

 Owendale (Platina)  Ind/Inf : 18.3Mt @ 0.64 g/t Pt (0.4 g/t cutoff)  380Koz Pt (0.52Moz Pt - 0.3 g/t cutoff)  Metallurgy

 Conventional gravity recovery - 66.3%  Chlorination process after an initial acid leach

(2012)

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Going Forward…

 Hillview – EL 8248  Vermiculite

 Continue negotiations with Exfoliators  “Bulk” sample for trial  Complete geology model

 Platinum - laterite  Target : +250Koz of +1.5g/t Pt  Keens : 26m @ 1.39g/t Pt  → Hylea

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Going Forward…

 Hylea – ELA 5032  Platinum – laterite

 500m x 400m +0.1ppm Pt anomaly (Lachlan, 1991)  21m @ 1.01 g/t Pt from 9m; H-107  21m @ 1.76 g/t Pt from 1m; HRC003 (Black Range)

 Platinum - primary  DDH-HY1 : 103-185m 82m @ 0.26g/t Pt  DDH-HY2 : 87-170m 83m @ 0.14g/t Pt

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Going Forward…

 Hylea – ELA 5032  Vermiculite

 Tigers Creek (Platinum Search NL, 1994):

 Inf Res - 4.8 Mt at 34% vermiculite

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Business

Mark Arundell - Imex Consulting - Hillview Vermiculite Deposit