EGM Presentation to Shareholders

13
Amazon Bay Ironsands Project April 2013
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Transcript of EGM Presentation to Shareholders

Page 1: EGM Presentation to Shareholders

Amazon BayIronsands Project

April 2013

Page 2: EGM Presentation to Shareholders

Amazon Bay Ironsands Project foyson...abundant harvest April 2013

Overview

Nearly 200 km stretch of coast line, 150 km south east of Port Moresby, PNG

Focus on 30 km long Threadfin area, which has exploration target of 630 million tonnes¹

Concentrate of 52% Fe, 1% V2O5 & 17% TiO2 to be produced on site

Metallurgical processes now exist to separate out high purity vanadium and titanium products, from the iron

Low cost, well tested production process - similar to New Zealand Iron & Steel operation

¹ Quantity estimate based on previous drilling, Landsat and available radiometrics covering Amazon Bay dune formation.Refer Disclaimer Cautionary Statement

Page 3: EGM Presentation to Shareholders

Amazon Bay Ironsands Project foyson...abundant harvest April 2013

Amazon Bay -Undervalued Leverage

¹ Resources as defined by Company ² As at 11 April 2013³ Threadfin Area - Refer Disclaimer Cautionary Statement

Significantly under valued when compared to ASX listed peers with iron-vanadium-titanium resources

Company ASX Resource¹ (tonnes) Location Market Cap² ($M)

PNG 4

54

105

30

43

40

Indonesia

Fiji

Peru

Australia

Australia

630 million³

165 million

220 million

1.5 billion

160 million

450 million

FOY

IDO

AXZ

LRS

TNG

-

Foyson

Indo Mines

Amex Resources

Latin Resources

TNG

Balla Balla Project

Page 4: EGM Presentation to Shareholders

Amazon Bay Ironsands Project foyson...abundant harvest April 2013

Project Strategy

Analysis indicates 10% of ironsands reports to Heavy Minerals concentrate

Build project in 15 mtpa “modules” to produce 1.5 mtpa HM concentrate

Module comprises:

2000tph cutter/suction dredge Floating Wet Concentrator plant Land based screening and selective grinding facility Stockpiling Single-point ship loading

Page 5: EGM Presentation to Shareholders

Amazon Bay Ironsands Project foyson...abundant harvest April 2013

Amazon Bay TenementsTotal Exploration area: 3355 square kilometres

0 10

kilometres

Map projection: Lat Long (WGS84)Produced by: Edward S. K. Fry

20

OCEANA ELA 1217km2

SANDBANK

EL 1623

193km2

AMAZON BAY NORTH

ELA 2149 586km2

DOMARA

EL 1637

200km

POI

EL 1628

POI SOUTH

ELA 1643

514km2

FOYSON RESOURCES LIMITED

AMAZON BAY IRON SANDS PROJECT

P.N.G.

AMAZON BAY

EL 1396 193km2 MARUTA ELA 682km2

-10º-10º

149º3

0'

MARYTA ELA 652km²

Page 6: EGM Presentation to Shareholders

Amazon Bay Ironsands Project foyson...abundant harvest April 2013

Amazon Bay Proposed Drilling CY2013

Radiometrics draped over Google Earth

Strategy for Creating Shareholder Value May 2012An Option on a World Class Minerals Package

June 2012foyson...abundant harvest

Amazon Bay Proposed Drilling

Radiometrics draped over Google Earth

1600m

Page 7: EGM Presentation to Shareholders

Amazon Bay Ironsands Project foyson...abundant harvest April 2013

Amazon BayComparative Advantages

Relatively close to China

Limited environmental impediments

Low population on the resource area

Unlimited freshwater

Can be dredged due to high water table

Can pre-fabricate plant offshore in lower cost environment

Ocean transport of product possible

Coastline is more protected compared to the open coastline of south Java and South America

Page 8: EGM Presentation to Shareholders

Amazon Bay Ironsands Project foyson...abundant harvest April 2013

Conceptual Flow SheetConceptual Amazon Bay Processing Scheme14th April 2013Dredge-floating processing plant-land based magnetite plant & non-mag VHM circuit

Primary Concentrator Plant "PCP" (floating)

+3mm Oversizeundersize

Oveflow (slimes)underflow (sand)

sand tails to pond

heavy mineral concentrate

Land based Concentrating Upgrading Plant "CUP"

Oversize-3mm +1mm

-1mm undersize

Magnetics non-magnetics

MAGNETITE CIRCUIT NON-MAGNETIC CIRCUIT

to tails dam sand tailings

heavy minerals

magnetics-150um170 t/h Super-concentrate

+150um 390 t/h heavy minerals ( contails free gold)

to tailsnon-magnetics tails

magnetics -75um

non-magneticsto waste magnetics

Final magnetite concentrate Non-magnetic VHM concentrate Gold concentrate to stockpile for shipment ( contains rutile, zircon, ilmenite)

1.5mtpa

Dredge 2000 t/h

Trommel 3mm

Linear Screens 1mm

Possibly spiral upgrading

2 X LIMS 380Gauss

Classify at 150um spirals

380G magnets Ball or rod mill

P100 75um

2 X LIMS 380Gauss 3 stage cleaning magnets

Gravity Circuit - 4 stages -Rougher spirals -Mids retreats

-Cleaner scavanger spirals -Cleaner spirals

Deslimming cyclones

HMC stockpile ( on-shore) trucked or pumped to Concentrate

Upgrading Plant

Primary Wet Drum Magnets 1000 Gauss

Gravity Circuit -Primary spirals

Gravity Circuit -Secondary spirals Gold circuit

Knelsen, Spinner or ILR

Page 9: EGM Presentation to Shareholders

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Cost Estimates

Based on mining 15mtpa of ironsands to produce 1.5mtpa of HM concentrate, costs are estimated at:

Capital cost A$160-180million Operating cost A$29/tonne concentrate FOB

These compare favourably with other ironsands projects under consideration in Asia/Pacific and South America

Page 10: EGM Presentation to Shareholders

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Secondary Processing

The HM concentrate can be processed to produce high purity titanium, vanadium and ironThere are two process routes available

Pyrometallurgy: involves a reducing, high temperature environment to produce molten iron, with titanium and vanadium slags, for further processing

Hydrometallurgy: involves leaching and solvent extration to produce three high purity metals

Pilot scale testing of both these processes is underway world-wide on various Fe/Ti /V deposits;

Page 11: EGM Presentation to Shareholders

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Secondary ProcessingSecondary processing could occur in low cost environments such as the Philippines or China

Strategy for Creating Shareholder Value May 2012Partnering Strategy for Resource Development

PNG Mining Conference December 2012foyson...abundant harvest

Amazon Bay Processing

Australia

PNG

CHINA

PHILIPPINES

AMAZON BAY

HONG KONG

BATANGAS

Page 12: EGM Presentation to Shareholders

Amazon Bay Ironsands Project foyson...abundant harvest April 2013

Amazon Bay is a very large Fe/Ti /V resource

The project has very favourable logistics for supply of a HM concentrate into China and Asia generally

The HM component of the ironsands is typically higher than other comparable iron sands projects

The current market value of Amazon Bay is only 5% to 10% of comparable ironsands projects

Summary

Page 13: EGM Presentation to Shareholders

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Foyson ResourcesNOTICE AMD DISCLAIMER CAUTIONARY STATEMENT

Strategy for Creating Shareholder Value May 2012An Option on a World Class Minerals Package

June 2012foyson...abundant harvest

This document has been prepared by Foyson Resources Ltd (the Company). This document contains background information about the Company and its projects current at the date of this document. It does not purport to be all inclusive or complete. Recipients should conduct their own investigations and perform their own analysis in order to satisfy themselves as to the accuracy and completeness of the information, statements and opinions contained in this document.

The document is for information purposes only. Neither the document nor the information contained in it constitutes an offer, invitation, solicitation or recommendation in relation to the purchase or sale of shares in any jurisdiction. This document may not be distributed in any jurisdiction except in accordance with the legal requirements applicable in such jurisdiction. Recipients should inform themselves of the restrictions that apply in their own jurisdiction.

To the fullest extent permitted by law, Foyson Resources Ltd, its officers, employees, agents and advisers do not make any representation or warranty, expressed or implied, as to the currency, accuracy, reliability or completeness of any information, statements, opinions, estimates, forecasts or other representations contained in this document. No responsibility for any errors in or omissions from this document is accepted.

Where Foyson Resources Ltd expresses or implies an expectation or belief as to future events or results, such expectation or belief is expressed in good faith and believed to have a reasonable basis.

1 To the extent that there is information set out in this document, any potential quantity and grade is conceptual in nature, as there has been insufficient exploration to define a mineral resource under the JORC Code and it is uncertain if further exploration will result in the determination of a mineral resource under the JORC Code. Quantity estimate based on previous drilling, Landsat and available radiometrics covering Amazon Bay dune formation.

The information contained in this document that relates to Exploration Results or Mineral Resources or Ore Reserves is based on information compiled by Mr Chris Young who is a Member of the Australian Institute of Geoscientists. Mr Young has sufficient experience which is relevant to the style of mineral deposits under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 edition of the “Australasian Code for Reporting of Mineral Resources and Ore Reserves”. Mr Young consents to the inclusion in this presentation of the matters based on his information in the form and context in which it appears.

Foyson Resources LtdNOTICE AND DISCLAIMER CAUTIONARY STATEMENT