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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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
James D. Calaway, Chairman of ioneer Ltd
Lithium Supply & Markets Conference Santiago, Chile June 2019
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Imp Importa
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
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
this presentation. The forward-looking statements made in this presentation relate only to events as of the date
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
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
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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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:
both products
curve due to revenue from boron co-product
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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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to be synonymous with clay
Lithium-Boron type and Clay type
and this has major implications for ease and cost of processing
Boron deposits globally
sodium boro-silicate mineral that is soluble in acid
revenue, into a global market that exceeds $3B annually
Hi High-grade sear searle lesit ite e Li Li-B min ineralis lisatio ion in outcrop
≈US$3.3 billion p.a.
mine life and limited potential for expansion
Boron demand driven by:
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Multiple options to fund US$600M in capex
potential:
Structured funding process in parallel with completion of the DFS in Q3 2019 Two product streams 100%
Well positioned to assess and negotiate funding:
project to FID by early 2020
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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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EPCM
Evaporation
Acid Plant Mining Acid Plant Leaching Pilot Plant Material Handling Controls
Environment
Spent Ore
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
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.
Yoshio Nagai Sales & Business Development ynagai@ioneer.com James D. Calaway Chairman jcalaway@ioneer.com
ASX: INR
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Looking south-east over Rhyolite Ridge South Basin
Likely to benefit from the US Government’s renewed emphasis on domestic supplies of critical minerals
rapidly expanding American and Asian markets
(EA) or an Environmental Impact Statement (EIS) as determined by Federal BLM
process
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tonnes lithium carbonate & 10.9 million tonnes boric acid
lithium-boron ore containing:
carbonate
acid
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
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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
Annual Revenue
Annual EBITDA
After-tax Cashflow
After-tax NPV (7% real):
IRR
Bottom of the Cost Curve
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
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Long Life Project
Rhyolite Ridge to be at bottom of the lithium cost curve
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(with boric acid credit)
site operating costs
Industry Lithium Carbonate Cost curve
plus excess 38MW of green power for sale
and boron recoveries > 80%
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and power required (+ circa 38MW surplus)
pressure (similar to oxide copper)
(similar to Rio’s Boron Mine)
(similar to lithium brines)
>80%
Using processing technologies proven at commercial scale
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Large 100%-owned mining claims
strike length
Lithium-Boron (Searlesite) Resource
7.1% boric acid contains:
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13k 3km
Sout
h Ba Basin in - Mineral Resource
Nort
Basin in - 38 wide-spaced holes with Li and B
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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