news release for personal use only · news release release time immediate date 21 july 2008...
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NEWS RELEASE Release Time IMMEDIATE Date 21 July 2008
ADMIRALTY RESOURCES NL PRESENTATION
The attached presentation will be provided to investors, potential customers and stockbrokers in Japan, China, the United States and Australia.
Yours sincerely,
Phillip Thomas Managing Director
Further information on Admiralty Resources NL can be found on our Internet site: www.ady.com.au
Australia Investor RelationsInvestor RelationsTel: +61 3 9642 8787 Email: [email protected]
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Admiralty Resources NL
PRESENTATIONPRESENTATIONJuly 2008
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Company Overview
ASX ADY OTCBB ARYRY ( d b )ASX:ADY OTCBB:ARYRY (see www.adrbny.com)1,133,457,841 shares on issue (at 30 June 2008)1,000,000 Non-Executive Director options (at 30 June 2008)408 million held by the top 20 shareholders 36.04% (at 30 June 2008)10,402 shareholders, 491 overseas (at 30 June 2008)
Admiralty Resources NL
1. HSBC Custody Nominees (Australia) Ltd, A/C 2– 8.78%2. ANZ Nominees Ltd – 5.81%
Fortune Global Holdings Admiralty Resources Chile Ltda.60% of Cia Minera Santa Barbara
Admiralty Resources NL
3. HSBC Custody Nominees (Australia) Ltd – 4.47%4. National Nominees Limited – 3.74%5 Citicorp Nominees Pty Ltd 2 91%
100% Rincon Lithium LimitedArgentina
100% Bulman Resources P/L5. Citicorp Nominees Pty Ltd – 2.91%
Directors – 2.2%Pyke Hill Resources P/LPyke Hill – Nickel 50% Int
Lead, Zinc
3100% ADY Investments P/L
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Key Personnel
Board of Directors-Prof. J Ross Harper CBE – LLB MA DUniv Chairman, legal background, LondonProf. J Ross Harper CBE LLB MA DUniv Chairman, legal background, London-Phillip Thomas – BSc MBM AIG SIA Managing Director Admiralty Resources NL,, geology, investment, marketing, Director Cia Minera Santa Barbara – located L14, 200 Queen Street, Melbourne - Michael Robert Clarke MSc – Managing Director Admiralty Resources Chile Ltda., Chairman of Cia Minera Santa Barbara Director Admiralty Resources NL Santiago ChileMinera Santa Barbara, Director Admiralty Resources NL – Santiago, Chile- John Anderson – B Com MBA Non-executive Director - banking, mining management – Melbourne- Stephen Prior – B Com CPA – Company secretary, taxation, finance, audit - Melbourne
TechnicalTechnical- Dr Carlos Sorentino – PhD, MEnvSt, DipRadTech, BE(Chem),FAusIMM(CP), MMICATechnical Director, Rincón Salar (Sydney/Argentina)- Dr Rodrigo Frías – Representative, Legal Counsel (Salta, in argentina)
D D i l G lli P j t Di t (S S l d d J j i A ti )- Dr Daniel Galli – Project Director (San Salvador de Jujuy, in Argentina)- Dr Ricardo Alonso – Head of Exploration (Salta, in Argentina)
Cia Minera Santa BárbaraB d f Di S i MBoard of Directors Senior Management- Michael Robert Clarke – President, Chile Fernando Pau – Finance Director- Phillip Thomas – Director, Australia Ricardo Gonzalez – Senior Geologist- Leonardo Farkas – Director, Chile Claudio Ferrada – Head of Accounting, Tax, Audit
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gErwin Nordenflycht– Head of Operations
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Demerger
• ADY – Propose to consolidate to < 150 million sharesADY Propose to consolidate to 150 million shares
• Demerger proposal put to shareholders at EGM to be held 30
days after all approvals received
• Consider Directors Report US SEC Solvency Tax andConsider Directors Report, US SEC, Solvency, Tax and
Rincon Valuation Reports
• For every (consolidated) Admiralty share, one share will be
issued in Rincon Lithium Limited (RLL)
• RLL funding to come from Pre-sales agreement and note
issueissue
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Project Overview – Production, Shipping, Focus
Cia Minera Santa Bárbara
April 2007 – first shipment in WISCO 08 Sales agreement shipped
Nov 2007 – 30,000 tonnes per month, 500 hours per month, six shipments completed – 210,000 tonnes final product shipped 63.5% fines
July 2008 – final two shipments from Caldera Port shipped, 4 panamax shipments in 2009 to complete 06 contract
July 2008 – put in place sales contracts with Shougang and $40m funding facility
Sept 2008 – Commission drilling program, to cover existing 5 mines, 20 hectares per month
2009 – commission Mariposa Mirador pits to expand production to 3 9m tonnes per annum - $50m investment2009 commission Mariposa, Mirador pits to expand production to 3.9m tonnes per annum $50m investment
2009 – commission Panamax size port, and if successful Cape size port to increase shipping capacity by another 2.0m tonnes per annum (Caleta 0.9m, Cape T Port 2.4m, Panamax G Port 1.2m)
2010 commission two more pits for production expansion to 7 million tonnes (Chilean Veijo Primavera)2010 – commission two more pits for production expansion to 7 million tonnes (Chilean Veijo, Primavera)
2010 – commission conveyor system to Punta Alcalde port and construct cape size port
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Key Statistics – Sánta Barbara
7,421 hectares of tenements at Japonesa Group Mine VallenarCaleta
3,500 hectares at Pampa Tolofo, near Las Colorados
JORC for 26m tonnes final product grading 18.0% at Japonesa
3 1960 stockpiles with 3 million tonnes fines at 14-16% Fe
CaletaPort
3 1960 stockpiles with 3 million tonnes fines at 14 16% Fe
8 geologists, topographers, mining engineers
16 staff quality control/laboratory
TPort
52 trucks to take ore to port each month
14 trucks to move ore to ship (500 metres) – 15,000 tonnes per day
SRK G l i l C l i k Santa BarbaraSRK Geological Consulting key partner Santa BarbaraMinesPunta
Alcalde
Guacolda Port
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10,000 Hectares in Iron Ore Belt
New Tenements Existing Tenements (Japonesa Agreement)
N Si h t Mi N Si h tName Size - hectares Mine Name Size - hectares
Leo 3 200 *Japonesa 34
Leo 4 200 *Japonesita 96
Leo 7 200 *Mirador 21Leo 7 200 Mirador 21Leo 8 300 *Gibjiru 41Leo 9 300 Natasha 50Leo 10 200 Tatiana 60Leo 11 200 Phil 3L 12 300 P l 67Leo 12 300 Pamela 67Leo 13 300 *Soberana 25
Leo 14 200 *Negrita 24Leo 15 300 Total 421 Leo 16 200 New TenementsLeo 16 200 New TenementsLeo 18 200 Leo Uno 20Leo 19 100 Leo 35Leo 20 200 Leo siete 20
Leo 100 300 Leo Cinco 300L 101 300 L S i 300Leo 101 300 Leo Seis 300Leo 102 300 Leo Dos 200Leo 103 300 Tanati 80Leo 104 300 Tina 181Leo 105 300 Paco 14
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Leo 106 300 Chilean Veijo 50
Leo 107 300 Total 1,200Total 5,800 Grand Total 7,421
*Existing mines operated in 1960’s
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Product Specification
Element Rejection Level % Contract Specification %
Fe 62.00 min 63.5 Si02 6.0 max 5.00Al203 2.0 max 1.2
Annual shipping Capacity 2008Caleta – 2 x 45,000 x 9 months = 0.81 million tonnesAl203 2.0 max 1.2
P 0.11 max 0.07S 0.11 max 0.07Ca0 2 0 max 1 0
,1st half 2009Port T - Caldera – 1 x 200,000 x 12 months = 2.4 million tonnes2nd half 2009Ca0 2.0 max 1.0
Mg0 2.0 max 1.1K20+Na20 0.2 max 0.05H20 2 0 max 1 0
Port G – Huasco – 1 x 200,000 x 12 months = 2.4m2010Punta Alcalde – 3 x 200,000 x 12 months = 7.2m tonnes
H20 2.0 max 1.0
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Santa Barbara TenementsTenements
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Resource Estimates – Santa Bárbara137 Million Tonnes Indicated and Inferred
Mine Tonnage Weighted Average Grade at 15% cut off
137 Million Tonnes Indicated and Inferred
Japonesa 42.0 million 13.7% ASX Release 10 Aug 07g
Japonesita* 47.0 million 19.4% ASX release 10 June 08
A,B Chilean Viejo*
Mariposa* 48.1 million 23.1% ASX release 10 June 08
C D Mirador*C, D Mirador*
F, Primavera*
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Cia Minera Santa Bárbara Iron Ore Production
Port T at Caldera ** negotiations pending 18 tonne trucks taking ore to crusher Waste stockpiles
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Iron ore greater than 100m ready for crushing Two 125 hour primary crushers Port G at Huasco**
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Caleta, Caldera Port
Caleta Pier - handymax Hopper ship loading
13Final product being loaded for truck transport to Caleta 230km away
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Port of Punta Alcalde
Estimated Cost – US$32-$40m
Main road to pass site
14km road upgrade
Conveyor transport system
300,000 tonne stockpile
Container loading facility – Fruit Port
Iron ore loading – Santa Bárbarag
Copper/Silver – Barrick Mines
Coal unloading – Pascua Lama Power projectg p j
Estimated Completion date June 2010 subject
to funding
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Rincón Salar - Argentina
Major, world-class, multi-elementbrine resource (Li, K,) located in theSalta Province of Argentina.
The 37 tenements cover an area inexcess of 250 square kilometres.
Key resources are lithium chloride,lithium carbonate and potassiumchloride (Potash).
Sodium Carbonate, sodium sulphateand boric acid also planned
Resource due diligence & extractionesou ce due d ge ce & e t act omethods for LiCl, LiOH, LiC03 KCl,have been finalised.
Capital expenditure program forp p p gdevelopment of Rincón Salar hasbeen established.
Rincon Salar - Argentina
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Rincón Salar - Argentina
The ResourceThe Rincón Project is located in north-westernArgentina near the Chilean border.
It is a hyper saline lake brine enriched in lithiumIt is a hyper saline lake, brine enriched in lithium,magnesium and potash, with three riversproviding subterranean waters flowing into thesalar through volcanic rocks.
The project is situated at an elevation of 3,700metres within the Antofalla-Pocitos volcanic riftvalley in the high Andean Plains, with 50 salarsy gcloseby.
This ponded evaporate deposit is estimated tocontain:contain:
7.4m tonnes of LiCO3 equivalent
51.0m tonnes of KCl (Potash)
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Rincón Salar - Argentina
Lithium Concentrations from drill hole data
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Key Advantages
Patented production process that removes magnesium early in the process, and crystallises final product at low ppm concentrations
Plant phase 1 of six now operating, 10,000 Na2SO4 per 14 days
Process takes 100 days so low evaporation capital
All raw material is closeby and produced by Rincon Lithium keeping opex costs downopex costs down
Funding available through project finance, note issue and pre-sales
All key staff hiredAll key staff hired
Expansion to 34,000 tonnes Li2CO3 relatively simple, substantial reserves of brine
Quality Assurance audit completed, new laboratory warehouse planned in Jujuy
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Reserve Calculation
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Production, Observation Wells and Ponds
Analysis Mean, mg/L
Relative dispersion mg/L dispersion from the
mean
Li+K+
3947 972
±11%±9%K+
Na+Ca++
7,972113,903
712
±9%±5%±65%Ca++
Mg++Cl-
7123,667
195,067
65%±14%±3%
20SO4= B4O7= CO H
12,3341,762386
±66%±44%±17%
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Jujuy R&D and Rincon Plant Organization Chart
Dr. D. GalliP j t M
Senior ManagementProject Manager
Ing. M.M. OtaizaChief Chemist
Ing. D. HumanaEngineering
ManagerProf. A. OtaizaAdministration
R. SantillanOperations Phil Thomas
ManagingManager
A. ZapataPlant Supervisor
R. MirandaSystems Assistant
J.C. CaceresSpectrometrist
Managing Director
Dr D GalliProduction
Dr C SorentinoConstruction,
T h i l S
Dr R FriasLegal and General
Dr R AlonsoExploration
A. AimaPlant Maintenance
J. MirandaMaintenance &
Security
C. CachaguaAnalyst
Production Technical Svcs General Manager
Exploration
Plant Operators3 shifts
12 operators
D. GordilloMaintenance &
Security
J. CarlosLaboratoryAssistant
S. TorresKitchen &
Housekeeping
J. MurilloXRF Operator
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EVAPORATION IN SOLAR PONDSProduction of Li2CO3 16,000 tonnes/year (mass balance)
PONDS A PONDS B PONDS C
Production of Li2CO3 16,000 tonnes/year (mass balance)
PONDS A PONDS B PONDS Cα
KCl (Potash)
A = 460 Ha A = 36 Ha A = 27 Ha ConcentrateBrine
Precipitate: NaCl
Precipitate: NaCl - KCl
Precipitate: NaCl - KCl
α αVolume: 32 L
Salt: 278 kg/m3 Salt: 18,5 kg/m3 Salt: 14,5 kg/m3
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Production of Crude Lithium Carbonate 98% and Lithium Carbonate 99 5%and Lithium Carbonate 99.5%
Concentrate Brine1 m3
Sodium Carbonate
Precipitation of Ca++
and Mg++ with Sodium Carbonate
Ion change
Dilution
NaOH
Precipitation
Centrifuge
Wash
Mother Liquor: M: 2,050 KgVol 1,8 m3
Sodium Carbonate
F h t Wash
Centrifuge
LITHIUM
Fresh water
LITHIUM CARBONATE
Mass: 40 KgLi2CO3 99.48%
To dry
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Product SpecificationSpecification
Lithium battery produced by A123 Systems
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Lithium Applications – Lithium is not connected to the base metal marketbase metal market
•The adjacent graph showsSQM view of Global Lithium Main UsesSQM view of GlobalLithium Consumption.
• There has been explosive growth
Lithium Main Uses
4%4%4%
8%23%
OthersBatteriesGreases
in batteries, ~ 25% CAGR,(2000-05 Roskill) and IndustrialAir Conditioning (as a desiccant)
9%
20%
Glass Colouring Beads (Frits)GlassA/CAluminium
• Traditional applications for Greasesand Glazes continue with strong demand, eg European Cook Tops
12%
16%
20% Aluminium PharmaceuticalPolymer• Expanding Lithium Production
may still not meet Global Demand
•Current market conditionssuggest a 30% shortfall in supply
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Japanese Import Statistics – Lithium Carbonate
USD per tonne of Lithium Carbonatei t d i t J
10 000
11,000
imported into Japan
7,000
8,000
9,000
10,000
Lithium carbonate
tonnage price per tonne
4,000
5,000
6,000carbonate
CHINA 71,5 6,305.48
CHILE 707 6 491 09
0
1,000
2,000
3,000 CHILE 707 6,491.09
ARGENTINA 180 7,046.78
Jan-07 Feb-07 Mar-07 Apr-07 May-07 Jun-07 Jul-07 Aug-07 Sep-07 Oct-07 Nov-07 Dec-07 Jan-08
CHINA USA CHILE ARGENTINA
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Global Lithium Supply & Pricing – an Opaque OligopolyAdmiralty Estimates a 30% Global Shortage of High Grade LCE
ll l d ll h l d
SEPTEMBER 2007
Admiralty Estimate
Japanese Corporate
Industrial Minerals
Roskill
Report
SQM 2006
ADY Full Scale Production will have limited impact on increasing prices
Estimate Estimate Report 2006
Estimate Annual ReportAdmiralty
Hombre Muerto FMC 12-15,000 16,000 17,500 12,168
Attacama / Silver Peak, Chemetall 10-15,000 23,000 30,000
44,140Attacama SQM3 25-28,000 28,000 27,800
Rincón Admiralty2 17,000 17,000 17,000
Other 10,000 14,600
• Estimates of Lithium Compounds Production from Brines (Lithium Carbonate Equivalent - Tons)
Notes: 1 Chinese CITIC Production is possible part brine part Spodumene
2 Full Scale Production target mid 2009Other 10,000 CITIC1
China
14,600
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2 Full Scale Production target mid 20093. SQM have been advising a capacity increase to 40,000 tons pa for a number of years4. Includes Spodumene, but ratios not disclosed
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Lithium Carbonate – The Purity / Value EquationSEPTEMBER 2007
• Approximate current Asian spot market,+/- $500 (Japan, China and now India), prices for Lithium Carbonate (Li CO ) LCE at various purity levels:for Lithium Carbonate (Li2CO3) - LCE at various purity levels:
99.0% purity (and slightly lower) $ 6,000 USD / ton99 0+% purity $ 6 500 USD / ton99.0+% purity $ 6,500 USD / ton99.9+% purity $ 8,250 USD / ton99.99+% purity $ 13,200 USD / ton99.999% purity $ 25,000 USD / ton99.999% purity $ 25,000 USD / tonPure Lithium Metal $ 67,500 USD / ton
• A large number of long term contracts at much lower prices are ending allowing g g p g gproducers to substantially increase prices (SQM -2006 Annual Report), Chemetall price increase in July 2008.
Other Lithium Prices:Lithium Hydroxide (LiOH) $ 10,500 USD / tonLithium Chloride (LiCl) $ 8,500 USD / ton
28Potassium Chloride (KCl – MOP) $ 550 - $750 USD / ton
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Admiralty Salar de Rincón Pilot Plant SEPTEMBER 2007
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Bulman – Northern Territory
Zinc and Lead oxide, sulphide depositlocated in southern Arnhem land inlocated in southern Arnhem land inAustralia's Northern Territory.
ELA23814 – 250 sq kilometres
In the 1950’s CRA estimated there wassubstantial zinc sulphides from 11 drillholes.
A t i l d b h iArea extensively covered by geophysicssurveys and soil surveys.
Further sampling and drilling workndertaken in 2008 in order to betterundertaken in 2008 in order to better
define the leases and determine the areasacceptable for further exploration.
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Bulman Exploration Licences
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Proposed drill holes (red dots), K-Th-U (Red-Green-Blue) image, highlighting potassium anomalies (pink).
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Pyke Hill – Nickel Cobalt JV – Cougar Metals NL
The Pyke Hill Project is located approximately 40km southeast of the Murrin Murrin Nickel Operation, nearsoutheast of the Murrin Murrin Nickel Operation, near Leonora, Western Australia.
Prospective for a high-grade nickel-cobalt lateritic resource. Estimated in-ground value $3.1b.
Aircore drilling undertaken by Cougar in FY2004 returned intersections including 7m @ 2.26% Ni, 6m @ 2.03% Ni and 8m @ 1.50% Ni.
In FY2005 Co gar completed t o additional drillingIn FY2005 Cougar completed two additional drilling programs at the project. A total of 25 holes for 896m were drilled, The second program was completed at the end of FY2005 and consisted of 31 Aircore drill holes for 1380mholes for 1380m.
Results of the better intersections encountered ranged in thicknesses from 3m to 17m and averaged 7.5m. The depth to the top of mineralisation varied from 13m to a maximum of 23m Grades averagedfrom 13m to a maximum of 23m. Grades averaged 1.48% Ni overall using a 1.2% Ni cut-off.
Joint venture provides Admiralty with A$0.20 cents per tonne of “run of mine” ore.
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