Alligator Rivers Exploration and PhosEnergy Technology Development - - PowerPoint PPT Presentation

Alligator Rivers Exploration and PhosEnergy Technology Development PhosEnergy Technology Development

Presentation to ARCI Congress, July 2010

Disclaimer and Competent Person Statement

• Forward Looking Statements

This Presentation may include statements that could be deemed “forward-looking statements”. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions such statements are not guarantees of expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those expected in the forward-looking statements or not take place at all.

• No offer to sell or invitation to buy

This Presentation is not, and should not be considered to, constitute any offer to sell, or solicitation of an offer to buy, any securities in Uranium Equities Limited, and no part of this Presentation forms the basis of any contract or commitment whatsoever with any person. Uranium Equities Limited, and no part of this Presentation forms the basis of any contract or commitment whatsoever with any person. Uranium Equities Limited does not accept any liability to any person in relation to the distribution or possession of this Presentation from or in any jurisdiction.

• Disclaimer

Whilst care has been exercised in preparing and presenting this Presentation ,to the maximum extent permitted by law, Uranium Equities Limited and its representatives: p

• make no representation, warranty or undertaking, express or implied, as to the adequacy, accuracy, completeness or

reasonableness of this Presentation;

• accept no responsibility or liability as to the adequacy, accuracy, completeness or reasonableness of this Presentation; and
• accept no responsibility for any errors or omissions from this Presentation.
• Receipt of this Presentation
• Receipt of this Presentation

If the recipient of this Presentation has signed any confidentiality or similar agreement covering information of the type herein contained, then the Presentation and all information therein is received subject to that agreement(s).

• Competent Person Statement

The information in this presentation that relates to Exploration Results is based on information compiled by Mr Grant Williamson, Geology Manager – Exploration for Uranium Equities Limited who is a Member of the Australasian Institute of Mining and Metallurgy Inc and a Manager – Exploration for Uranium Equities Limited, who is a Member of the Australasian Institute of Mining and Metallurgy Inc and a member of the Australian Institute of Geoscientists. Mr. Williamson has sufficient experience in the field of activity being reported 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, and consents to the release of information in the form and context in which it appears here.

Key Strengths

Unique growth opportunities .

• Alligator Rivers Exploration:
• Historic Nabarlek Uranium Mine: A rare Brownfields exploration
• pportunity.
• past production 24 Mlbs @ 1.84% U3O8.
• The PhosEnergy Process: provides the opportunity to re-establish uranium

from phosphates as a major production source globally.

Alligator Rivers Uranium Field

The place to find world class deposits.

• Alligator Rivers: A world class Uranium

province. J bil k (360 Mlb U O )

• Jabiluka

(360 Mlbs U3O8)

• Ranger

(194 Mlbs U3O8) N b l k ( 24 Mlb U O )

• Nabarlek ( 24 Mlbs U3O8)
• Koongarra ( 16 Mlbs U3O8)
• Nabarlek Project: 520 km2 in the heart
• f the Alligator Rivers Uranium Field.

H d t P j t O 3000 k

2

f

• Headwaters Project: Over 3000 km2 of

underexplored tenements recently granted.

A Rare “Brownfields” Exploration Opportunity

“In the shadow of the Headframe.”

• Nabarlek Project - Extensive Land

Position.

• Nabarlek Mine Lease 100%.
• West Arnhem Land Joint Venture

(40% UEQ : 60% CAMECO).

• Nabarlek Mine - Australia’s highest

grade uranium mine (1.84% U3O8) closed 1988.

• Targeted Drilling 2010:
• Coopers Prospect

Nabarlek Mine Lease 1988

Coopers Prospect

• N147 Basement Mineralisation

N147 Discovery

Basement position to be tested.

• Ore-grade intercepts (at 200ppm cut-off) in

dolerite including: NARD6017 21.1m @ 0.39% U3O8

*

NAR6318 34.0m @ 0.13% U3O8

*

NAR6320 14.0m @ 0.17% U3O8

*

• Dolerite mineralisation remains open along

Nabarlek Mine Lease 1988

• Dolerite mineralisation remains open along

strike in both directions.

• 2010 RC Drilling (July) will focus on testing

Above: N147 Basement Target Model showing interpreted sub-vertical structure with known dolerite

g ( y) g basement below known dolerite hosted mineralisation.

structure with known dolerite mineralisation and basement target position.

*Four acid digest with ICP-MS analysis from NT Environmental Laboratories Pty Ltd, Darwin. Intercepts calculated using stated cut-off and may contain a maximum internal dilution of 2m. All intercepts are down hole lengths.

Coopers Prospect

Large geochemical anomaly – structural targets.

Significant geochemical

• Significant geochemical

anomaly associated with margins of distinct magnetic low low.

• Peak value 1m @ 1993ppm

U3O8

* in 2009 geochem 3 8

g drilling

• Close proximity to the

Nabarlek Mine Lease 1988

Nabarlek Mine and the N147 Discovery. Structural targets at the

Above: Coopers Prospect geochemistry and drill

• Structural targets at the

intersection of the Gabo and Tip Faults to be tested in the 2010 field season

Above: Coopers Prospect geochemistry and drill testing commencing July 2010.

2010 field season.

*Four acid digest with ICP-MS analysis from NT Environmental Laboratories Pty Ltd, Darwin. All intercepts are down hole lengths.

Regional Geochemistry

Major Uranium system with ore grade mineralisation.

• Significant ore grade

mineralisation defined at N147 t N147 prospect.

• Widespread uranium

anomalism in shallow anomalism in shallow geochem drilling identifies targets for follow up drilling

Nabarlek Mine Lease 1988

drilling.

• Further systematic

geochem drilling through g g g 2010 field season.

Headwaters Project

Significant Landholding – Identified Anomalies.

• Vale Australia earning 70% by

free-carrying UEQ to BFS

• Potential for Westmoreland

style targets in the Northern portion of the Project portion of the Project

• $100,000 co-funding under NT

Governments ‘Bringing

Nabarlek Mine Lease 1988

g g Forward Discovery’ program.

• Drilling program planned for

2010 dry season.

Brownfields Opportunities

Near deposit exploration in large mineral systems.

• Rudall Project: (UEQ 40% : Cameco 60%)

j

( )

Tenements adjoining Cameco’s Kintyre Uranium Deposit (70 Mlbs @ 0.38%)

• Narraweena: (UEQ 100%)

Tenements adjoin and cover t i t th i li d h t t

Nabarlek Mine Lease 1988

extensions to the mineralised host to the Ben Lomond Uranium Deposit (10.7 Mlbs @ 0.25%)

Greenfields Opportunities

Strategic holdings in key districts.

• Lake Blanche: (Cameco earning 60% : UEQ 40%)

exploring for roll front uranium in a di i i h l i h sedimentary province with analogies to the world class Kazahkstan uranium fields.

• Watson: (UEQ 51% : Intermet 49%)
• Watson: (UEQ 51% : Intermet 49%)

Anomalous uranium mineralisation in paleochannels analogous setting to the “4 Mile” uranium deposit

Nabarlek Mine Lease 1988

4 Mile uranium deposit.

• Frome Basin: (UEQ 100%)

UEQ has recently acquired a strategic y q g position in the Frome Basin.

Uranium Equities

The PhosEnergy Process.

The PhosEnergy Process

Uranium from Phosphates

160 4

Proven reliable source of uranium.

80 100 120 140 2 2.5 3 3.5

uction from s (Mlb/a) Price (US$/lb}

20 40 60 80 0.5 1 1.5 2

US U3O8 Prod Phosphate Uranium Spot

1978 1988 1998 2008

• Over 5 million lb per annum produced globally in ’80’s.

p p g y

• Production ceased in ‘90’s due to high operating cost and low uranium price.
• Technological advances and utility demand are reviving the uranium from

phosphates industry phosphates industry.

• By-Product Sources:
• Currently account for 10% of world primary uranium production (OD)
• Scope to increase this market share to fill predicted market deficit.

Scale of the Opportunity

More than $1 billion in potential revenue per annum.

• Worldwide 100Mt phosphate processed

annually.

~20 million lb of contained U3O8

• 15 - 18% of world’s annual U3O8

production currently going unrecovered.

• Multiple potential development
• pportunities globally.
• Major Phosphate Production:
• Group OCP (Morocco)

Worldwide distribution of phosphate production

• Mosaic Co (USA)
• PCS

(USA)

• IFFCO

(India)

– area denotes relative production

CO ( d a)

The PhosEnergy Process

The change required to rejuvenate an industry.

• Developed by UEQ in partnership with:

p y p p

• Australian Nuclear Science and Technology Organisation (ANSTO).
• A major US based phosphate producer.
• PhosEnergy is a “bolt on process” to recover U3O8 as a by-product at existing

phosphate production facilities.

• PhosEnergy applies conventional technologies in an innovative manner to

achieve: Low operating cost 25 30 US$/lb

• Low operating cost - 25 – 30 US$/lb
• High uranium recovery - over 92%
• Improved environmental outcomes - reduced waste

Without material impact to the phosphate process.

The Current Position

Technology developed and funding in place.

• Several International Patent

applications filed.

• Partnered with Cameco – One of

the world’s largest uranium producers (Invested US$7.5M) p ( $ )

• Ongoing development through

staged investment of up to US$16.5M.

• Cameco to fund at least 50% of

UEQ’s first facility capital UEQ s first facility capital requirements.

Above: The process was tested at pilot scale at an operating fertilizer production facility.

The Steps to U3O8 Production

Potentially very short lead time.

Timeline to present Conceptual Steps to U3O8 Production Concept UEQ Patents Cameco JV with Decision to Proceed with Development Invests Filed Invests Phosphate Producer ? 1st Commercial Facility? Timeline to present Conceptual Steps to U3O8 Production 2006 2007 2008 2009 Bench Scale Testing Pilot Plant P R fi Process Refinement Business Development Demo Plant S Feasibility Study Engineering Construction Operation Operation

Our Partners

Major industry partners investing in quality assets.

Cameco Investment in PhosEnergy C WALJV Mitsui Investment in the Nabarlek Project Cameco Investment in PhosEnergy Vale Headwaters JV (UEQ 30% to BFS) Cameco WALJV (UEQ 40%)

Nabarlek Mine Lease 1988

Cameco Lake Blanche JV (UEQ 40%) Cameco Rudall River JV (UEQ 40%) Cameco Lake Blanche JV (UEQ 40%)

ASX:UEQ

Capital Structure and People

Capital Structure Board Shares 210M Fully Diluted 221M Tony Kiernan Chairman Bryn Jones Managing Director Market Cap @ 10c $21.0M Cash (30 June) $10.5M Tim Goyder Non Exec Director

________________________________________________________________

Major Shareholders % UEQ Directors 10 7%

________________________________________________________________

Management Rolf Heinrich CFO & Company

Nabarlek Mine Lease 1988

UEQ Directors 10.7% Lagoon Creek 10.0% Resolute Mining 4 5% Rolf Heinrich CFO & Company Secretary Grant Williamson Geology Manager Resolute Mining 4.5% Top 20 57% Exploration James Davidson General Manager Urtek

Major Shareholdings at 30 June 2010

Urtek