FLAGSHIP GLENOVER RARE EARTH PROJECT 1 Disclaimer THIS DOCUMENT - - PowerPoint PPT Presentation

flagship glenover
SMART_READER_LITE
LIVE PREVIEW

FLAGSHIP GLENOVER RARE EARTH PROJECT 1 Disclaimer THIS DOCUMENT - - PowerPoint PPT Presentation

FLAGSHIP GLENOVER RARE EARTH PROJECT 1 Disclaimer THIS DOCUMENT (DOCUMENT) IS STRICTLY CONFIDENTIAL AND IS BEING PROVIDED TO YOU SOLELY FOR YOUR INFORMATION. THE DISTRIBUTION OF THIS DOCUMENT MAY BE RESTRICTED BY LAW. ACCORDINGLY, THIS


slide-1
SLIDE 1

FLAGSHIP GLENOVER RARE EARTH PROJECT

1

slide-2
SLIDE 2

THIS DOCUMENT (“DOCUMENT”) IS STRICTLY CONFIDENTIAL AND IS BEING PROVIDED TO YOU SOLELY FOR YOUR INFORMATION. THE DISTRIBUTION OF THIS DOCUMENT MAY BE RESTRICTED BY LAW. ACCORDINGLY, THIS DOCUMENT MAY NOT BE DISTRIBUTED IN ANY JURISDICTION EXCEPT IN ACCORDANCE WITH THE LEGAL REQUIREMENTS APPLICABLE TO SUCH JURISDICTION. IN PARTICULAR, YOU MAY NOT DISTRIBUTE, FORWARD, REPRODUCE, TRANSMIT OR OTHERWISE MAKE AVAILABLE THIS DOCUMENT OR DISCLOSE ANY INFORMATION CONTAINED IN IT OR CONVEYED DURING ANY ACCOMPANYING ORAL PRESENTATION (THE “INFORMATION”) , IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN THE UNITED STATES, AUSTRALIA, CANADA OR JAPAN, OR IN ANY OTHER JURISDICTION WHERE TO DO SO WOULD BE UNLAWFUL. FAILURE TO COMPLY WITH THESE RESTRICTIONS MAY CONSTITUTE A VIOLATION OF APPLICABLE SECURITIES LAWS. PERSONS INTO WHOSE POSSESSION THIS DOCUMENT COMES ARE REQUIRED BY THE COMPANY TO INFORM THEMSELVES ABOUT AND TO OBSERVE ANY SUCH RESTRICTIONS. NEITHER GALILEO RESOURCES PLC (“THE COMPANY”) NOR ITS DIRECTORS, OFFICERS, EMPLOYEES, RESPECTIVE AFFILIATES, AGENTS OR ADVISERS ACCEPT ANY LIABILITY TO ANY PERSON IN RELATION TO THE DISTRIBUTION OR POSSESSION OF THIS DOCUMENT IN OR FROM ANY JURISDICTION. The Document and the Information have been prepared by or on behalf of, and is the sole responsibility of, the Company. The Information is being provided to you during an oral presentation and is not a complete record of that discussion. The Information does not purport to be full or complete and does not constitute investment advice. No representation or warranty, express or implied, is given by or on behalf of the Company, its affiliates, agents or advisers or any other person as to, and no reliance may be placed for any purposes whatsoever on, the adequacy, accuracy, completeness, fairness or reasonableness of the Information. None of the Information has been independently verified by the Company, its affiliates, agents or advisers or any other person, and no liability or responsibility whatsoever is accepted by any of them for any loss howsoever arising, directly or indirectly, from any use of the Information or otherwise arising in connection therewith. The Company, its affiliates, agents and advisers do not undertake and are not under any duty to update this Document or to correct any inaccuracies in the Information which may become apparent, or to provide you with any additional information. The sole purpose of this Document is to provide background information to assist you in obtaining a general understanding of the business of the Company. This Document does not constitute an offer to sell, or a solicitation of an offer to buy or subscribe for, securities of the Company in any jurisdiction. It is not intended to provide the basis of any investment decision, financing or any other evaluation and is not to be considered as a recommendation by the Company, its affiliates, agents or advisers that any recipient of this Document purchase or subscribe for any securities in the Company. Each recipient of this Document contemplating any investment in the Company is required to make and will be deemed to have made its own independent investigation and appraisal of the business, results of operations, financial condition, liquidity, performance and prospects of the Company and the merits and risks of an investment in the securities of the Company. The delivery of this Document at any time does not imply that the information in it is correct as of any time after its date, or that there has been no change in the business, results of operations, financial condition, liquidity, performance and prospects of the Company since that date and no obligations is accepted to update any such information after the date of the Document. No person affiliated with the Company, their directors, officers, employees, respective affiliates, agents or advisers has been authorised to give any information or to make any representation not contained in this Document and, if given or made, such information or representation must not be relied upon. The securities of the Company have not been, and will not be, registered under the US Securities Act of 1933, as amended (the "Securities Act") and may not be offered, sold, transferred or delivered, directly or indirectly, within the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act. In the United Kingdom, this document is directed solely at persons having professional experience in matters relating to investments and who are investment professionals as specified in Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the "Financial Promotions Order"), to persons who are high net worth companies, unincorporated associations or high value trusts as specified in Article 49(2) of the Financial Promotion Order (all such persons together being referred to as "relevant persons"). In addition to the foregoing restrictions, this document is made and directed only at persons falling within the meaning of "qualified investors" as defined in section 86

  • f the Financial Services and Markets Act 2000 (as amended).

This Document may contain forward-looking statements, including, but not limited to, statements as to the Company’s business, results of operations, financial condition, liquidity, performance and prospects and trends and developments in the markets in which the Company operates. Forward-looking statements include all statements other than statements of historical fact and in some cases may be identified by terms such as “targets”, “believes”, “expects”, “anticipates”, “estimates”, “aims”, “intends”, “will”, “may”, “would”, “could” or, in each case, their negative or comparable terms. By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances that may or may not occur. A number of factors, which may be beyond the control of the Company, its affiliates, agents and advisers, could cause actual results and developments to differ materially from those expressed or implied by the forward-looking statements. Forward-looking statements in this Document reflect the Company’s view with respect to future events as at the date hereof and are subject to known and unknown risks, uncertainties and assumptions relating to the Company’s

  • perations, results of operations, financial condition, growth, strategy, liquidity and the markets in which the Company operates. No assurances can be given that the forward-

looking statements in this Document will be realised. Forward-looking statements are not guarantees of future performance. The Company, its affiliates, agents and advisers undertake no obligation and do not intend to update any forward-looking statements in this presentation to reflect events or circumstances after the date of this presentation.

Disclaimer

2

slide-3
SLIDE 3
  • Possess numerous unique properties, making them indispensable

to modern technology required to sustain the needs of today’s society

  • “Green” technologies such as fuel cells, hybrid vehicles, wind

turbines

  • China produces over 95 % of the world’s Rare Earths and are

cutting back on exports continually

  • Rapidly growing industry allied to global technology advances
  • Global demand forecast for 180kt – 200kt by 2014 (from 120kt in

2010)

Who knew much about Rare Earths three years ago?

Why Rare Earths?

3

slide-4
SLIDE 4

Chinese have really put the brakes on!

Rare Earths Quotas

J F M A M J J A S O N D J F M A M J J A S O N D 2010 2011

Jul 2010 Beijing slashes export quotas for the second half of 2010, making them 40 per cent lower than 2009 Nov 2010 China resumes shipments of rare earths to Japan Sep 2010 Japanese traders say China has halted rare earth shipments to Japan, following a diplomatic

  • dispute. Beijing denies this

Dec 2010 Export quotas for the First half of 2011 are kept on par With 2010 on an annualised basis Feb 2011 China’s State Council says it will Strengthen oversight of the Rare earths industry Jul 2011 Beijing brings 2011 export Quotas to the same level as 2010, But a technical change means that Exports will effectively be reduced By about 10 per cent Apr 2011 The Environment Ministry announces Inspections of rare Earth firms Jun-Aug 2011 Many rare earths Processors close for Upgrades to conform To new regulations Aug 2011 Beijing begins a Campaign to find and close Illegal mines. Local governments Are given until November to Close mines in their area

Source FT Research: Chinese Government

4

slide-5
SLIDE 5

Project located next to tarred road – good infrastructure

Location Of Project

5

Botswana

slide-6
SLIDE 6

Big former pit – easy access to new ore

Aerial photograph of old pit

100 200 50 Metres

Mine Area and Apatite-Haematite Breccia Ore Stockpiles

Ore Stockpiles Ore Stockpiles

1.34 million m3 2.0-2.5 million tonnes 6

slide-7
SLIDE 7
  • Pyroxenite – carbonatite complex
  • Circular in shape and approximately 5km in diameter
  • 3 geological zones:

Breccia body of apatite and iron oxides Carbonatite plug around breccia body Three pyroxenite zones mineralised with apatite and vermiculite

  • Gold Fields owned over 3 decades significant exploration and

drilling carried out mainly in the 80s

  • Rare Earths identified but not considered important
  • Purchased by Fer-Min-Ore in 1999
  • In 2008 Fer-Min-Ore commenced production of super phosphate
  • March 2011 joint venture agreement with Skiptons BVI later to

become Galileo Resources Plc

Owned by Gold Fields for phosphate production

Glenover history

7

slide-8
SLIDE 8

Galileo is focused

Mission Statement

  • To in-fill drill around old phosphate pit to establish SAMREC

tonnage for primary extraction

  • To independently establish tonnes and grade for old phosphate

stock piles

  • To carry out mineralogical and metallurgical test work to optimise

rare earth oxide process flow sheet

  • To carry out bankable feasibility study with the view to develop a

fast track rare earth oxide concentrate project

  • To concurrently carry out an exploration programme over the

entire concession to establish the presence of other rare earth mineral bodies

8

slide-9
SLIDE 9

Established site

Glenover Rare Earth Project

Phosphate open pit Open pit stockpiles Recent drilling Available process equipment

9

slide-10
SLIDE 10

0.5 1 0.25 Kilometres

enite roxenite nite

Pit Area

Geology

Carbonatite Carbonatised Pyroxenite Coarse-grained Pyroxenite Fine-grained Pyroxenite Fenitised Quartzite

Southern Africa’s second biggest carbonatite

Glenover Carbonatite Geology

10

slide-11
SLIDE 11

Fast track drilling programme

Glenover Current Drill Programme

11

* Weighted averages over total sampled width including any core loss

GHV021 GHV020 GHV019 GHV017 GHV018 GHV002 GHV005 GHV006 GHV016 GHV013 GHV012 GHV004 GHV003 GHV010 GHV009 GHV008 GHV001 GHV015 GHV014 GHV011 GHV007

Status

Assays Reported Awaiting Assays Borehole Trace

Pit Geology

Apatite Breccia Carbonatised Pyroxenite Pyroxenite

50 100 Meters

slide-12
SLIDE 12

12

Hole GHV Entire core metres % TREO * cut off 1% TREO metres TREO % * 1 243

1.95

153

2.73

2 194

0.70

3.6

2.76

3 133

2.14

52

4.30

4 100

2.12

45

3.23

5 163

1.77

97

2.38

6 142

1.21

22

3.12

* Weighted averages over total sampled width including any core loss

Significant bulk tonnage results

Drilling results to date

slide-13
SLIDE 13

13

Hole GHV High Grade metres % TREO* 1 4 17 86

5.51 4.46 3.49

2 2

4.20

3 52 18

4.30 8.24

4 1 2 8

6.52 4.49 8.03

5 16

3.75

6 6 9

6.22 5.39

Impressive high grades shoots

High Grade Shoots

slide-14
SLIDE 14

Niobium significant by-product. Stand alone grades?

Niobium (Nb2O5)

14

Hole GHV Entire core metres Nb2O5

%*

High Grade metres Nb2O5 % * 1 243

0.50

17

1.02

2 194

0.11

2

0.47

3 133

0.43

52

0.85

4 100

0.18

8

0.74

5 163

0.62

91 16

0.93 1.24

6 142

0.26

20 9

0.66 0.99

* Weighted averages over total sampled width including any core loss

slide-15
SLIDE 15

Valuable rock when you make comparisons

Platinum and Gold equivalents

15

In situ grade % REO In situ gross metal value $/t ** Platinum equivalent g/t *** Gold equivalent g/t *** 3.1* 2140 42 39 Every 1% 690 13a 13a

*

Basis average of borehole results to date cut off 1%REO ** Basis FOB China REO prices Feb 2012: La Ce Nd Pr Sm Eu Tb and Dy (96% of total REO in samples) price source: www.metal-pages.com/metal prices/free-charts/ *** Pt $1600/oz Au $1700/oz Feb 2012 a rounded

Based on current prices

slide-16
SLIDE 16

16

* Weighted averages over total sampled width including any core loss

Exploration Drilling Current Pit Area Magnetic Dykes Later Dykes Thorium Anomaly Demagnetised Zones Magnetic Pyroxenite Outline of Carbonatite Quartzite

1 000 2 000 Meters

Open pit area

Bold step outs being drilled against geophysics

Glenover New Exploration Drilling

slide-17
SLIDE 17

17

Ce, 46% Nd, 22% La, 17% Pr, 6% Sm, 3%

Y, 2%

Eu, 1% Gd, 1.8% Dy, 0.6% HREOs;3%

HREOs >0.5% dist’n

heavy rare earth oxides

LREOs 97%

Light rare earth oxides

Good split of desired rare earth Oxides

REO Distribution

slide-18
SLIDE 18

GRADE CUT FROM (m) TO (m) WIDTH (m) P2O5 % TREO % > 1% LREO 25.22 181.26 156.04 23.61 2.77 Including 38.5 41.5 3 27.33 3.38 Including 93.38 99.16 5.78 22.15 4.31 Including 102.65 114.06 11.41 25.41 6.03 Including 125.92 139.35 13.43 23.87 3.97 Including 150.29 167.55 17.26 20.20 4.57

Apatite is very significant

Borehole Core Lithology Log

18

slide-19
SLIDE 19

GRADE CUT FROM (m) TO (m) WIDTH (m) TREO % P2O5 % > 1% LREO 46.35 46.35 3.17 11.46 Including 5.64 8.74 3.1 4.05 27.16 Including 20.14 27.92 7.78 8.03 14.97

But so is carbonatite

Borehole Core Lithology Log

19

slide-20
SLIDE 20
  • Mineralogical & metallurgical test work
  • Pit expansion mine design
  • Design flow sheet for rare earth oxide concentrate

processing

  • Feasibility study
  • Explore entire deposit to increase rare earth ore resource

Results good, direction clear – focused team

Programme

20

slide-21
SLIDE 21

Market beginning to recognise us

Share price performance

21

Shares in issue: 75 million Market capitalisation: £ 29 million

AIM: GLR

slide-22
SLIDE 22

22

How do we shape up against our competitors?

Peer Group Comparison

COMPANY COUNTRY PROJECT RESOURCE /DEPOSIT MILLION TONNES RESOURCE /DEPOSIT GRADE REO % REO KG MILLION MARKET CAP £M MARKET CAP £/ KG REO AVALON RARE METALS CAN NECHALACHO 315 1.36 4300 225 0.05 ARAFURA RESOURCES AUS NOLANS 30.3 2.8 848 134 0.16 RARE ELEMENT RESOURCES USA BEAR LODGE 17.5 3.46 605 170 0.28 GREENLAND MINERALS & ENERGY* GREENLAND KVANEFJELD 370 1.17 4000 168 0.04 QUEST RARE MINERALS CAN STRANGE LAKE 50.8 1.14 579 112 0.19 FRONTIER RARE EARTHS RSA ZANDKOPSDRIFT 22.92 2.32 531 54 0.10

GALILEO RESOURCES RSA GLENOVER 17 * 3.1 * 527 54*

  • Illustrative potential valuation based on general market cap. ~ £0.20/kg REO for REO projects

and assuming project ownership of 51%

slide-23
SLIDE 23
  • Quality, near cash flow, strategic position
  • Glenover rare earth project well positioned against peers since

close to production

  • Good local partners
  • Strong international trade interest
  • Mining cost lower since at least 2.5 million tonnes is stock piled

and current remaining ore can be mined from the old open pit

  • Geological setting provides immense opportunity for much of the

same

Well balanced with above average rare earth project

Compelling Investment Case

23

slide-24
SLIDE 24

Thank you very much

www.galileoresources.com

24