Ironveld Plc Northern Limb Pig Iron Project Contents - - PowerPoint PPT Presentation
Ironveld Plc Northern Limb Pig Iron Project Contents Disclaimer Highlights Mercury Snapshot Ironveld Snap shot Pig Iron Strategy Team Location Progress Resource Statement
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Northern Limb Pig Iron Project
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Contents
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Disclaimer
The content of information contained in this Presentation has not been approved by an authorised person within the meaning of the Financial Services and Markets Act 2000 (“FSMA”). Reliance upon this Presentation for the purpose of engaging in any investment activity may expose an individual to a significant risk of losing all of the property or other assets invested. If any person is in any doubt as to the contents of this Presentation, they should seek independent advice from a person who is authorised for the purposes of FSMA and who specialises in advising in investments of this kind. This Presentation is being supplied to you solely for your information. While the information contained herein has been prepared in good faith, neither Mercury Recycling Group plc (to be renamed Ironveld plc) (“Company”) nor its shareholders, directors, officers, agents, employees or advisers give, has given or has authority to give, any representations or warranties (express or implied) as to, or in relation to, the accuracy, reliability or completeness of the information in this Presentation, or any revision thereof, or of any other written or oral information made or to be made available to any interested party or its advisers and liability therefor is expressly disclaimed. This Presentation does not constitute, or form part of, an admission document, listing particulars or a prospectus relating to the Company, nor does it constitute, or form part of, any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any shares in the Company nor shall it or any part of it, or the fact of its distribution, form the basis of, or be relied upon in connection with, or act as any inducement to enter into any contract therefor. Recipients of this Presentation who decide to subscribe for, or purchase, ordinary shares in the Company following the publication of the final document relating to the proposed Admission (the “Admission Document”) are reminded that any application so to subscribe for or purchase may only be made on the basis of the information contained in the Admission Document which may be different from the information contained in this Presentation and will contain additional information. No reliance may be placed for any purpose whatsoever on the information contained in this Presentation or on its completeness, accuracy or fairness thereof, nor is any responsibility accepted for any errors, misstatements in, or omission from, this Presentation or any direct or consequential loss however arising from any use of,
Justice Act 1993 and the Financial Services and Markets Act 2000 (as amended) (the “Acts”)), and you agree not to deal in any securities of the Company until such time as such inside information has been made public and until such time that the Placing has been publicly announced by the Company or the Company decides not to proceed with the Placing. This Presentation may not be reproduced or redistributed, in whole or in part, to any other person, or published, in whole or in part, for any purpose without the prior consent of the Company. The contents of this Presentation are confidential and are subject to updating, completion, revision, further verification and amendment without notice. The Presentation is being distributed on request only to, and is directed at, authorised persons or exempt persons within the meaning of FSMA or any order made thereunder or to those persons falling within the following articles of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended) (the “Financial Promotion Order”): Investment Professionals (as defined in Article 19(5)) and High Net Worth Companies (as defined in Article 49(2)). Persons who do not fall within any of these definitions should not rely on this Presentation nor take any action upon it but should return it immediately to the Company. This Presentation is exempt from the general restriction in section 21 of FSMA relating to the communication of invitations or inducements to engage in investment activity on the grounds that it is made only to certain categories of persons. Neither this Presentation nor any copy of it should be distributed, directly or indirectly, by any means (including electronic transmission) to any persons with addresses in the United States of America (or any of its territories or possessions) (together, the “US”), Canada, Japan, Australia, the Republic of South Africa or the Republic of Ireland, or to any corporation, partnership or other entity created or organised under the laws thereof, or in any other country outside the United Kingdom where such distribution may lead to a breach of any legal or regulatory requirement. The recipients should inform themselves about and observe any such requirements or relationship. The Company’s ordinary shares have not been, and are not expected to be, registered under the United States Securities Act 1933, as amended, (the “US Securities Act”) or under the securities laws of any other jurisdiction, and are not being offered or sold, directly or indirectly, within or into the US, Canada, Japan, Australia, the Republic of South Africa or the Republic of Ireland or to, or for the account or benefit of, any US persons or any national, citizen or resident of the US, Canada, Japan, Australia, the Republic of South Africa or the Republic of Ireland, unless such offer or sale would qualify for an exemption from registration under the US Securities Act and/or any other applicable securities laws. Forward-looking Statements This Presentation or documents referred to in it contain forward-looking statements. These statements relate to the future prospects developments and business strategies of the Company and its subsidiaries (the “Group”). Forward-looking statements are identified by the use of such terms as “believe”, “could”, “envisage”, “estimate”, “potential”, “intend”, “may”, “plan”, “will” or the negative of those, variations or comparable expressions, including references to assumptions. The forward-looking statements contained in this Presentation are based on current expectations and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied by those statements. If one or more of these risks or uncertainties materialises, or if underlying assumptions prove incorrect, the Group’s actual results may vary materially from those expected, estimated or projected. Given these risks and uncertainties, potential investors should not place any reliance on forward-looking statements. These forward-looking statements speak only as at the date of this Presentation. No undertaking, representation, warranty or other assurance, expressed or implied, is made or given by or on behalf of the Company, any of their respective directors,
accepted by any of them for any such information or opinions. Notwithstanding the aforesaid, nothing in this paragraph shall exclude liability for any representation or warranty made fraudulently.
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Highlights
Ironveld Group, for £13.7 million
Complex north of Mokopane, South Africa
will be distributed to Sylvania shareholders pro rata to their existing holdings
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Mercury Recycling Group Plc
together with mercury bearing waste streams such as dental amalgam and
for recycling.
Government Environment Agency.
– Year end cash £ 0.343 million – Net assets of £ 5.6 million
– Pre acquisition 35.8 million – Post acquisition 238.8 million – Plus 10 million options/warrants
6.75p
– Current £ 2.4 million – Post acquisition £ 16.1 million
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Ironveld Pig Iron Project
in Limpopo Province South Africa
magnetite per annum as feedstock for its Pig Iron Plant to produce 1,000,000 tons of Pig Iron per annum. Potential for vanadium and titanium by products
announce increased inferred resource by July 2012
Fe)
exploration and the preparation of a Feasibility Study is warranted
company level.
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Pig Iron Strategy
– Take advantage of a robust metal sector
– Decreasing availability of easy DSO projects
– South African beneficiation drive
– Opencast ore – Value add
– Defined measured ore resource within 12 months – Bankable feasibility within 18 months
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Experienced team
Mr Clarke is Chairman of the England and Wales Cricket Board, Westleigh Investments Holdings Limited, Amerisur Resources plc, and of several private organisations. He founded Majestic Wine in 1981 and built it into a national chain of wine
1996 for £150 million and co-founded Safestore which was sold in 2003 for £40 million.
Dr Cox started his career in the mining industry 34 years ago as a learner surveyor. After studying mining engineering as a JCI bursar, he worked for that company in various positions at gold and platinum mines, ending as a senior section manager. He joined a privately owned mining and exploration company, Severin Southern Sphere Mining, as consulting engineer and general
company which serves the mining industry worldwide. He holds a Mine Surveyor’s and a Mine Manager’s Certificate of
mining history and designing the country’s narrow reef opencast mining method.
Mr McConnachie has over 30 years of experience in mining, benefication of ferroalloys and precious metals. He was the founder
empowered and listed on the Johannesburg Stock Exchange. He has started many new green-field operations in gold, manganese, aluminium, graphite and tantalite. He has been CEO of a number of mining, mining services and smelting companies in South Africa.
Mr Harrison qualified as an accountant with Arthur Andersen and subsequently held a number of senior positions with other professional services organisations. He was Finance Director of Pet City and has held finance director and chief executive positions in a number of private businesses. He is currently Chief Executive of Westleigh Investments Holdings Limited, a director of Amerisur Resources plc and of a number of private organisations.
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Location of Ironveld Pig Iron Project
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Progress to Date
Main Magnetite Layer Layer PQ (21)
6.8 kms Inferred Resource
Approx 28 Km of Strike
– 22 percussion holes completed – 38 diamond drill holes completed – 12.8 kms of strike drilled
– ore dressing – pre –reduction – smelting completed
6 kms annoucement July
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Resource Statement (Nonnenworth)
mineralisation and these results were used for the mineral resource estimation
at a 30% Fe cut-off. The Mineral Resource extends over a strike length of 6.8 km, is open-ended to the north and south and has been separately calculated for the massive magnetite layers i.e. MAG3, parting and MAG4 (= MML) and for the MML including the disseminated Ti-magnetite mineralisation in the footwall (FW).
MML Combined In-situ Inferred Mineral Resources, <120 m at 30% Fe cut-off Cut Off Million SG Fe Fe2O3 Fe Metal TiO2 V205 SiO2 P2O5 S Fe% Tonnes g/cm3 % % Mil Tons % % % % % 30 21.69 4.03 42.5 60.8 9.22 13.1 1.0 11.1 0.01 0.10 MML and FW Combined In-situ Inferred Mineral Resources, <120 m at 30% Fe cut-off Cut Off Million SG Fe Fe2O3 Fe Metal TiO2 V205 SiO2 P2O5 S Fe% Tonnes g/cm3 % % Mil Tons % % % % % 30 32.90 3.68 34.8 49.8 11.46 9.8 0.80 19.6 0.01 0.10
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Development Schedule
Value ¡Addi4on ¡
Inferred ¡resource ¡over ¡ addi4onal ¡6km ¡of ¡strike ¡ Resource ¡upgrade ¡from ¡ Inferred ¡to ¡Indicated ¡ Publica4on ¡of ¡Pre-‑ Feasibility ¡Study ¡ Resource ¡upgrade ¡from ¡ Indicated ¡to ¡Measured ¡ Publica4on ¡of ¡ Feasibility ¡Study ¡ Comple4on ¡of ¡ metallurgical ¡test ¡work ¡
Work ¡Program JULY AUG SEP OCT NOV DEC 1st ¡Qtr 2nd ¡Qtr 3rd ¡Qtr 4th ¡Qtr Ist ¡Half 2nd ¡ ¡Half Ist ¡Half 2nd ¡Half Exploration Driiling Assay Trenching Testwork Beneficiation Pre ¡reduction Smelting Technical Mine ¡Design EIA/EMP Infrastructure ¡and ¡logistics SLP Valuation Mining ¡Right ¡Application Definitive ¡design Seek ¡Partner/ ¡Major ¡Investors Start ¡Construction Commence ¡Mining Commissioning 2012 2013 2014 2015
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Case Studies
Market Cap†
£16m* *pre £3m fundraise £51m £13.7m £16.6m
Resource & Grade
Development
NPV $ 1.1bn 54%IRR
Infrastructure
(Maputo)
Matola (Maputo)
Maputo (Mozambique) 175 km away.
constructed - programs driven by coal producers
Production Route
by product
Or
shipping ore
before shipping ore
IRONVELD
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Investment Case
– Inferred resource over 6.8 kms complete – Inferred resource over further 6 kms by July 2012 – Indicated resource over complete strike length end 2012 – Measured resource by mid 2013
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Mineral Rights
Arrangements
– Ironveld has contracted with Pan Palladium and Hacra to explore for Magnetite Ore for its own account – On completion of the exploration Hacra and Pan Palladium will make a section 11 application to transfer the mining rights to Ironveld.
– Hacra has section 102 application for the inclusion of iron ore awaiting acceptance – Pan Palladium has a valid Iron ore prospecting right – Luge has a prospecting right for iron ore accepted but not yet granted
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New Company Structure
Ironveld ¡ Holdings ¡ Ironveld ¡ Mining ¡ PPD ¡2 ¡ (Lapon ¡Mining) ¡ Luge ¡ Hacra ¡2 ¡ (HW ¡Iron) ¡ Ironveld ¡ Mauritus ¡ 100% ¡ 100% ¡ 712% ¡ 1003% ¡ 741% ¡ Ironveld ¡plc ¡ (formerly ¡MRG) ¡ 100% ¡ Mercury ¡ Recycling ¡Limited ¡ 100% ¡
1 ¡The ¡remaining ¡26% ¡is ¡currently ¡held ¡by ¡PPD ¡and ¡will ¡be ¡owned ¡by ¡a ¡Broad-‑Based ¡Black ¡Economic ¡Empowerment ¡(“BBBEE”) ¡
2 ¡The ¡remaining ¡29% ¡is ¡currently ¡held ¡by ¡Hacra ¡1 ¡and ¡will ¡be ¡owned ¡by ¡a ¡BBBEE ¡partner ¡Sika ¡Bopha. ¡ ¡ 3 ¡Currently ¡100%, ¡but ¡an4cipated ¡to ¡fall ¡to ¡74% ¡once ¡BBBEE ¡partner ¡is ¡in ¡place. ¡
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Infrastructure and Logistics
– Pre reduction and hot charging furnace reduces power requirements – Eskom have indicated supply by 2014
– Located close to Glen Alpine Dam; offtake to be negotiated – Olifants/Steelpoort Rivers Joint Water forum planned Mokopane supply by 2015
– 80kms of road to rail siding – Transport of higher value pig iron can be containerised allowing use of container facilities at Richards Bay which are being upgraded – Bimodal transport system reduces handling costs
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Core Drilling
Limb Ti-magnetite layers.
completed by the end of February 2012.
Point Laboratories for analysis.
received
June 2012
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Drill Core NW 01
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Typical drill results (NW01)
Fe2O3 %
22 23 24 25 26 27 28 29 30 31 32 33 34 10 20 30 40 50 60 70 80
Depth (m)
MAG 3 massive Ti-mgt MAG 4 massive Ti-mgt parting gabbro footwall
gabbro with disseminated Ti-magnetite
hanging wall gabbro V2O5 %
22 23 24 25 26 27 28 29 30 31 32 33 34 0.0 0.3 0.6 0.9 1.2 1.5
TiO2 %
22 23 24 25 26 27 28 29 30 31 32 33 34 3 6 9 12 15 18
SiO2 %
22 23 24 25 26 27 28 29 30 31 32 33 34 10 20 30 40 50
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Testwork results
concentrate
reduction being achieved
produce Pig Iron using DC technology
potentially a titanium by-product could be produced
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Ore Resource Development
– Indicated ore resource end of Sept 2012
– Inferred ore resource end of June 2012 ( Nonnenworth) – Increase indicated by end of April 2012 ( La Pucella, Altona) – Measured ore resource Feb 2013
– Inferred ore resource end April 2013
– inferred Nov 2012
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Drilling AT06