Rhyolite Ridge American Source of Lithium & Boron for a - - PowerPoint PPT Presentation

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Rhyolite Ridge American Source of Lithium & Boron for a - - PowerPoint PPT Presentation

Rhyolite Ridge American Source of Lithium & Boron for a Sustainable Future James D. Calaway, Chairman of ioneer Ltd Lithium Supply & Markets Conference Santiago, Chile June 2019 1 Imp Importa ortant no nt notices tices an and d


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Rhyolite Ridge

American Source of Lithium & Boron for a Sustainable Future

James D. Calaway, Chairman of ioneer Ltd

Lithium Supply & Markets Conference Santiago, Chile June 2019

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Imp Importa

  • rtant no

nt notices tices an and d disclaimers disclaimers

This presentation has been prepared as a summary only and does not contain all information about ioneer Ltd’s (ioneer or the Company) assets and liabilities, financial position and performance, profits and losses, prospects, and the rights and liabilities attaching to ioneer’s

  • securities. The securities issued by ioneer are considered speculative and there is no

guarantee that they will make a return on the capital invested, that dividends will be paid on the shares or that there will be an increase in the value of the shares in the future. ioneer does not purport to give financial or investment advice. No account has been taken of the objectives, financial situation or needs of any recipient of this presentation. Recipients of this presentation should carefully consider whether the securities issued by ioneer are an appropriate investment for them in light of their personal circumstances, including their financial and taxation position. Investors should make and rely upon their own enquiries before deciding to acquire or deal in the Company's securities. Forward Looking Statements Various statements in this presentation constitute statements relating to intentions, future acts and events which are generally classified as “forward looking statements”. These forward looking statements are not guarantees or predictions of future performance and involve known and unknown risks, uncertainties and other important factors (many of which are beyond the Company’s control) that could cause those future acts, events and circumstances to differ materially from what is presented or implicitly portrayed in this presentation. For example, future reserves described in this presentation may be based, in part, on market prices that may vary significantly from current levels. These variations may materially affect the timing or feasibility of particular developments. Words such as “anticipates”, “expects”, “intends”, “plans”, “believes”, “seeks”, “estimates”, “potential” and similar expressions are intended to identify forward-looking statements. ioneer cautions security holders and prospective security holders to not place undue reliance

  • n these forward-looking statements, which reflect the view of ioneer only as of the date of

this presentation. The forward-looking statements made in this presentation relate only to events as of the date

  • n which the statements are made. Except as required by applicable regulations or by law,

ioneer does not undertake any obligation to publicly update or review any forward-looking statements, whether as a result of new information or future events. Past performance cannot be relied on as a guide to future performance.

Note: All $’s in this presentation are US$’s except where otherwise noted.

ASX: INR

Competent Persons Statement The information in this presentation that relates to Exploration Results is based on information compiled by Bernard Rowe, a Competent Person who is a Member of the Australian Institute of

  • Geoscientists. Bernard Rowe is a shareholder, employee and Managing Director of ioneer Ltd.

Mr Rowe has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken 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’. Bernard Rowe consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. In respect of Mineral Resources referred to in this presentation and previously reported by the Company in accordance with JORC Code 2012, the Company confirms that it is not aware of any new information or data that materially affects the information included in the public report titled “Updated Rhyolite Ridge Mineral Resource Statement” dated 23 October 2018 and released on ASX. Further information regarding the Mineral Resource estimate can be found in that report. All material assumptions and technical parameters underpinning the estimates in the report continue to apply and have not materially changed. The Company intends to report updated Mineral Resource and Ore Reserve estimates as part of the Definitive Feasibility Study currently in progress and due for completion in Q3 2019. In respect of production targets referred to in this presentation and previously disclosed, the Company confirms that it is not aware of any new information or data that materially affects the information included in the public report titled “Outstanding Results from Rhyolite Ridge Pre- Feasibility” dated 23 October 2018. Further information regarding the production estimates can be found in that report. All material assumptions and technical parameters underpinning the estimates in the report continue to apply and have not materially changed. No offer of securities Nothing in this presentation should be construed as either an offer to sell or a solicitation of an

  • ffer to buy or sell ioneer securities in any jurisdiction, or be treated or relied upon as a

recommendation or advice by ioneer. Reliance on third party information The views expressed in this presentation contain information that has been derived from publicly available sources that have not been independently verified. No representation or warranty is made as to the accuracy, completeness or reliability of the information. This presentation should not be relied upon as a recommendation or forecast by ioneer.

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ASX: INR

is is set set to de to deli liver ver a a major major li lith thium ium-bo boro ron n mine mine in in th the USA e USA

Boron differentiates Rhyolite Ridge

100% ownership of Rhyolite Ridge lithium-boron searlesite resource Fluor on-track to be complete DFS in Q3 2019 Extensive process flowsheet testwork completed by Kemetco and Veolia Pilot plant commissioning underway and will process one tonne per day Environmental baseline studies near complete 104Mt Indicated Resource with further drilling completed to upgrade Reserve Nevada location: major supplier of critical material to North America

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100%-owned Rhyolite Ridge:

  • +30 year mine life, capable of producing:
  • +20,000 tonnes p.a. lithium carbonate
  • +170,000 tonnes p.a. boric acid
  • Dual revenue stream
  • Uniquely position to be a major supplier of

both products

  • Forecast to be bottom of the lithium cost

curve due to revenue from boron co-product

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ASX: INR

Rhyolite Ridge Lithium-Boron Project

Unique lithium-boron deposit where metals can be extracted using proven commercial processes to produce lithium and boron end-products on site

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  • Sedimentary lithium deposits are often incorrectly assumed

to be synonymous with clay

  • There are two basic types of sedimentary lithium deposit:

Lithium-Boron type and Clay type

  • Lithium-Boron deposits are mineralogically different to clay

and this has major implications for ease and cost of processing

  • Rhyolite Ridge is one of only two known large Lithium-

Boron deposits globally

  • Rhyolite Ridge ore is dominated (40-50%) by searlesite – a

sodium boro-silicate mineral that is soluble in acid

  • Boron is a legitimate co-product providing 30-50% of

revenue, into a global market that exceeds $3B annually

  • ioneer set to become third largest boron producer globally

Boron makes Rhyolite Ridge different to other sedimentary lithium deposits

Hi High-grade sear searle lesit ite e Li Li-B min ineralis lisatio ion in outcrop

  • p
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Boron is essential for a modern world

  • Boron is a larger market than lithium at

≈US$3.3 billion p.a.

  • Stable price and steady growth of 4-6% CAGR
  • Broad range of uses
  • Essential to modern life, often no substitutes
  • Duopoly:
  • Eti (Turkey) ≈50%
  • Rio (Boron, California) ≈30%
  • Rio’s Boron mine is an aging asset with finite

mine life and limited potential for expansion

  • 74% of global reserves located in Turkey
  • Major boron users also use lithium

Boron demand driven by:

  • Urbanisation
  • Energy efficiency
  • Agriculture

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ASX: INR

Multiple options to fund US$600M in capex

  • Working with a top-tier international bank
  • Currently in the discovery phase
  • Engaging with interested parties on

potential:

  • Lithium and boron offtake
  • Vendor and export credit finance
  • Strategic partnering

Structured funding process in parallel with completion of the DFS in Q3 2019 Two product streams 100%

  • wnership
  • f asset

Well positioned to assess and negotiate funding:

  • Large, scalable project provides
  • ptionality
  • Funded (~A$60M cash) to progress

project to FID by early 2020

  • USA supplier of critical minerals

Funding flexibility & strategic partnering

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Rhyolite Ridge progress

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2016 2017 2018 2019 2020 2021

Resource and Reserve upgrade Lithium hydroxide confirmed by Veolia Pilot plant in operation Fluor completes DFS Testwork confirms high vat leach recoveries & premium boric acid Initial Reserve Positive, comprehensive Pre-Feasibility Study Positive met testwork Drilling doubles Resource Rhyolite Ridge acquired Initial Resource Construction planned First production of lithium and boron from Rhyolite Ridge

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Rhyolite Ridge video

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This video is available on the ioneer YouTube Channel

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ASX: INR

Key partners

EPCM

Evaporation

Acid Plant Mining Acid Plant Leaching Pilot Plant Material Handling Controls

Environment

Spent Ore

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Rhyolite Ridge product specifications

10 Compound or Element Units Rhyolite Ridge Analysis Typical Industry Specifications Lithium Hydroxide wt% 56.5 56.5 Sodium ppm 28 ≤ 30 Potassium ppm 12 ≤ 200 Iron ppm <1 ≤ 7 Boron ppm <1 ≤ 3 Calcium ppm <10 ≤ 250 Sulphate ppm <30 ≤ 300 Chlorine ppm <100 ≤ 100 Magnesium ppm <5 ≤ 5 Silica ppm 14 ≤ 20 Carbon Dioxide wt% 0.10 ≤ 0.35

Lithium Hydroxide Monohydrate Boric Acid

Chromium, nickel, copper, lead, aluminium and zinc all analysed <1ppm with typical industry specifications ranging from ≤5ppm to ≤10ppm. Testwork and analysis were conducted by Veolia Water Technologies Inc. in Plainfield, Illinois, USA. Compound or Element Units Rhyolite Ridge Analysis Typical Industry Specifications Boric Oxide (B2O3) % >56.5 >56.25 Boric Acid (H3BO3) % >99.9 >99.9 Sulphate ppm <125 <250 Chloride ppm <1 <10 Iron ppm <5 <7 Calcium ppm 13 <50 Sodium ppm 43 <200 Chlorine ppm <5 <10 Lead ppm <10 <20 Arsenic ppm <10 <100 Testwork and analysis were conducted by Kemetco Research Inc. of Richmond, BC, Canada.

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Yoshio Nagai Sales & Business Development ynagai@ioneer.com James D. Calaway Chairman jcalaway@ioneer.com

Providing the materials for a sustainable & thriving planet.

ASX: INR

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Looking south-east over Rhyolite Ridge South Basin

Nevada – Tier 1

Likely to benefit from the US Government’s renewed emphasis on domestic supplies of critical minerals

  • Tier 1 Mining Jurisdiction
  • Excellent infrastructure with direct access to

rapidly expanding American and Asian markets

  • Located on Federal (BLM) land
  • No competing land uses or nearby residents
  • Permitting to be via Environmental Assessment

(EA) or an Environmental Impact Statement (EIS) as determined by Federal BLM

  • Rhyolite Ridge likely to qualify for shorter EA

process

  • Net proceeds minerals tax not exceeding 5%

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ASX: INR

  • Total Resource1 of 4.1 million

tonnes lithium carbonate & 10.9 million tonnes boric acid

  • Including 121 million tonnes of

lithium-boron ore containing:

  • 1.1 million tonnes lithium

carbonate

  • 8.6 million tonnes boric

acid

  • Lithium-only clay mineralisation to

be stockpiled

A searlesite resource that is different to other sedimentary lithium deposits - it is suitable for a simple acid leach process

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1 Indicated and Inferred Resource

Project Overview

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ASX: INR

Note: The PFS base case used lithium carbonate sale prices ranging from US$12,693/tonne to US$16,862/tonne (CIF China) and a constant boric acid sale price

  • f US$700/tonne (CIF Asia).

Annual Revenue

$450M $450M

Annual EBITDA

$297M $297M

After-tax Cashflow

$6.6B $6.6B

After-tax NPV (7% real):

$1.8 $1.8B

IRR

28% 28%

Bottom of the Cost Curve

  • $1,796 per tonne of lithium

carbonate (with boric acid credit)

Lithium carbonate annual production = 20kt Boric acid annual production = 173kt For every 1.0 tonne of lithium carbonate produced, 8.5 tonnes of boric acid is produced Total Capex

$599M $599M

PFS demonstrates robust project economics

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Long Life Project

  • >30 years & expandable
  • Initial production Q3 2021
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Lowest operating cost

Rhyolite Ridge to be at bottom of the lithium cost curve

ASX: INR

  • Operating costs ~ $1,800/tonne lithium carbonate

(with boric acid credit)

  • Boric acid revenue at $700/tonne pays for most of

site operating costs

Industry Lithium Carbonate Cost curve

  • Acid plant provides all steam and power required

plus excess 38MW of green power for sale

  • Ore leaches and washes well with overall lithium

and boron recoveries > 80%

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  • On-site acid plant provides all of the steam

and power required (+ circa 38MW surplus)

  • Ore crushed to 25mm
  • Ore vat leached at 50-60o C and at ambient

pressure (similar to oxide copper)

  • Boric acid crystallised from solution

(similar to Rio’s Boron Mine)

  • Lithium carbonate crystallised from solution

(similar to lithium brines)

  • Overall lithium and boron recoveries of

>80%

  • Very low cash costs due to:
  • Simple process and high recoveries
  • Exothermic nature of producing acid
  • Boron revenue offsetting most of site costs

Using processing technologies proven at commercial scale

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Processing

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Processing flowsheet

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Large 100%-owned mining claims

  • Sediment-hosted lithium-boron deposit
  • Similar mineralisation in two basins
  • Mineralisation outcrops over 3 km

strike length

  • 100% Federal (BLM) land

Lithium-Boron (Searlesite) Resource

  • 121 Mt at 0.9% lithium carbonate,

7.1% boric acid contains:

  • 1.1Mt lithium carbonate
  • 8.7Mt boric acid
  • 86% of resource in Indicated category

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Di Distri strict ct Sc Scale ale Po Poten tenti tial al

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13k 3km

Sout

  • uth

h Ba Basin in - Mineral Resource

  • utlined in blue

Nort

  • rth Ba

Basin in - 38 wide-spaced holes with Li and B

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ASX: INR For further information on this Mineral Resource estimate, see Company announcement titled “Updated Rhyolite Ridge Mineral Resource Statement” dated 23 October 2018.

October 2018 Mineral Resource Estimate (1,050ppm Li Cut-off)

Total Resource including Lithium-Only Mineralisation and Lithium-Boron (Searlesite) Mineralisation

Group Classification Tonnage Li B Li2CO3 H3BO3 K2SO4 Li2CO3 Boric Acid Potassium Mt ppm ppm % % % kt kt kt Indicated 149.6 1,890 7,250 1.0 4.1 1.6 1,510 6,180 2,430 Inferred 49.4 1,860 4,300 1.0 2.4 1.6 490 1,200 770 Total 199.1 1,880 6,520 1.0 3.7 1.6 2,000 7,380 3,210 Indicated 192.4 1,370 2,880 0.7 1.6 1.6 1,410 3,060 3,020 Inferred 83.9 1,480 1,080 0.8 0.6 1.5 660 490 1,230 Total 276.3 1,410 2,340 0.7 1.3 1.5 2070 3,550 4,250 Indicated 342.0 1,600 4,800 0.9 2.7 1.6 2,910 9,240 5,450 Inferred 133.4 1,600 2,300 0.9 1.3 1.5 1,150 1,690 2,000 Grand Total 475.4 1,610 4,100 0.9 2.3 1.6 4,060 10,930 7,460 Contained Upper Zone Lower Zone Upper & Lower Zone

October 2018 Mineral Resource Estimate (1,050ppm Li & 0.5% B Cut-off Cut-off)

Lithium-Boron (Searlesite) Mineralisation

Group Classification Tonnage Li B Li2CO3 H3BO3 K2SO4 Li2CO3 Boric Acid Potassium Mt ppm ppm % % % kt kt kt Indicated 71.9 1,840 14,110 1.0 8.1 2.0 700 5,800 1,420 Inferred 14.7 1,970 12,150 1.0 6.9 2.0 150 1,020 300 Total 86.6 1,860 13,780 1.0 7.9 2.0 860 6,830 1,720 Indicated 32.2 1,430 9,750 0.8 5.4 1.7 240 1,730 530 Inferred 2.6 1,620 6,690 0.9 3.3 1.8 20 90 50 Total 34.8 1,440 9,520 0.8 5.2 1.7 270 1,820 580 Indicated 104.1 1,700 12,800 0.9 7.2 1.9 950 7,540 1,950 Inferred 17.3 1,900 11,300 1.0 6.4 2.0 180 1,110 340 Grand Total 121.4 1,740 12,600 0.9 7.1 1.9 1,130 8,650 2,300 Contained Upper Zone Lower Zone Upper & Lower Zone

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