mark arundell - imex consulting - hillview vermiculite deposit
DESCRIPTION
Mark Arundell delivered the presentation at the 2014 Mining NSW Conference. Mining NSW Conference is the premier event focused on base metals exploration, building regional skill, and promoting economic development. For more information about the event, please visit: http://bit.ly/miningnsw14TRANSCRIPT
Hillview Vermiculite
Mark Arundell
Disclaimer
Competent Persons Statement The information in this presentation, which relates to Mineral Resources and exploration results, has been reviewed by Mr Mark Arundell. This information, in the opinion of Mr Arundell, does not comply with the reporting standards of the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Arundell is a Member of the Australian Institute of Geoscientists and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which they are undertaking 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'. Mr Arundell is a consultant to Jodama Pty Ltd and consents to this presentation.
Forward Looking Statement This presentation includes certain ‘forward looking statements’. All statements, other than statements of historical fact, are forward looking statements that involve various risks and uncertainties. There can be no assurances that such statements will prove accurate, and actual results and future events could differ materially from those anticipated in such statements. Such information contained herein represents management’s best judgment as of the date hereof based on information currently available. The company does not assume the obligation to update any forward- looking statement .
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The IMEx Group – Experience Potash - Exploration Projects and Regional Studies
Congo
Danakil
Nagaur (India & Pakistan) Carlsbad
Michigan Elk Point Basin Paradox Basin
Neuquen
Udon Thani
Canning Carnarvon Adavale
Oman
Afghanistan
Sicily
Khemiset
North Caspian Catalonia
Maritimes
Atacama
Sergipe
Zechstein Belarus
Uralian
IMEx Office
Amazon Gabon
Timaru
Rhine
Amadeus
IMEx Consulting 4
Hillview Vermiculite
What is Vermiculite? Why Vermiculite? Hillview – Geology & Resource Hillview Platinum Going forward….
Without a market, a deposit is merely a geological curiosity - Harben
Why Industrial Minerals?
Essential raw materials for a wide range of industrial and domestic products
IM are high volume - low value, or low volume - high value, but are vital commodities
Demand is consistent and long term Markets for these minerals are typically by off take
agreements Exposure to commodity price cycles is less pronounced Long term cash flows provide solid platform for growth New technology can quickly expand existing markets
IMEx Consulting 5 Gulf Resources, 2010
IMEx Consulting 6
What is Vermiculite?
Vermiculite is a mica - sheet silicate. Expands to many times its original volume
when heated – exfoliation “Vermiculite” is derived from the Latin
vermicularis (worm-like)
Vermiculite
IMEx Consulting 7 Gulf Resources, 2010
Exfoliation
IMEx Consulting 8 Gulf Resources, 2010
Exfoliation
IMEx Consulting 9 GSNSW Bulle4n 33, 2007
IMEx Consulting 10
Why Vermiculite?
Vermiculite various attributes include : fire resistance low thermal conductivity high liquid absorption capacity inertness low density
IMEx Consulting 11
Uses & Properties - i
Agriculture/Horticulture (50%)* Exfoliated vermiculite improves soil aeration of “sticky” (clay)
soils & moisture retention characteristics of sandy soils. Vermiculite is used in the fertilizer and pesticide market because
of its ability to act as a bulking agent, carrier, and extender.
Aggregate (20%)* Plasters & concrete – lightweight, good thermal insulation Special plasters include fire protection & soundproofing products
- vermiculite is combined with a binder.
* USGS, 2014
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Uses & Properties - ii
Insulation (5%)* Exfoliated vermiculite - fill pores & cavities in masonry
construction & hollow blockwork - enhance acoustic properties, fire rating, & insulation performance.
Finer grades of exfoliated vermiculite, combined with potassium or sodium silicate, are used to produce insulation shapes.
Vermiculite-base insulation shapes to resist attack by molten aluminium - 2nd insulation in the aluminium production process.
Other uses (20%)* Refractory-insulation gunning & castable mixes & vermiculite
dispersions. Finer grades of exfol. vermiculite in automotive brake linings.
* USGS, 2014
Flake Size
IMEx Consulting 13
Dupre Minerals website
Production & Reserves
IMEx Consulting 14
USGS, 2014
Data in thousand metric tonnes
Hillview Vermiculite
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Regional Geology
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Minfo 39, 1993
Ordovician
Nyngan
To/enham
Tullamore
Condobolin
0 30km
IMEx Consulting 17
Ural Alaskan Intrusions
Platinum : placers from the Urals (Fifield) Pt derived from UM-MF intrusions Km scale zoned dunite, wehrlite, CPX,
gabbro, hornblendite, monzonite UM – Platinum MF – vermiculite (← biotite) Alaska, Fifield, Urals, Columbia
Tottenham Vermiculite
IMEx Consulting 18
Hillview
Tigers Creek Hillview
Hylea
IMEx Consulting 19
Hillview Vermiculite
1988 : 16m @ 4.3g/t Pt in Hillview laterite – mag targets under cover
1989-1990 : further Pt min – considered not economic
Vermiculite recognised in PGM exploration 1991 : vermiculite focus
Hillview “Outcrop”
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Tottenham Magnetics
IMEx Consulting 21
Bulbodney
Hylea -‐ Tigers Creek
Hillview
Kerrs
Tottenham Drilling
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Bulbodney Hillview
Hylea -‐ Tigers Creek
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Hillview Vermiculite
Helix Resources Drilling : 309 RAB holes for 14,600m Hillview Resource (Martin, 1998):
Inferred - 12.4 Mt @ 32% vermiculite; Measured - 2.3Mt @ 32% vermiculite.
Hillview Resource
IMEx Consulting 24
Minfo 39, 1993 Hillview RAB drilling on magneBcs/aerial photo
Hillview Resource
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Hillview RAB cross secBon 6427849N
20m
Cover
Saprolite
Basement
Hillview Resource
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Hillview Resource +0.45mm
Hillview Resource
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Hillview Resource +0.45mm
Hillview Resource
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Hillview – Base of Trans Cover
Hillview Resource
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Hillview – Base of Saprolite
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Mining & Processing
Shallow – top 40m No blasting, no crushing Clay – non-sticky → washing Air (coarse) and/or flotation (fine) Contaminant free High exfolation properties cf Palabora
Mar4n, 1998 & Minfo 39, 1993
Processing
IMEx Consulting 31 Minfo 39, 1993
Vermiculite
IMEx Consulting 32
Minfo 39, 1993
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Marketing - Helix
30,000 tpa operation (+70 year operation) Aus : 5,000 tpa Japan / Europe : 5,000 – 10,000 tpa
2001 : Sold (80%) to AVI (Imdex) for $500,000 (implied value : $0.625M)
2002 : Imdex sold Mud Tank (& Hillview) to Imerys for $4.85M (implied value : $1M)
IMEx Consulting 34
Marketing - IMEx
Who is your consumer? Aust : three “exfoliators”
What is the local market? ~2,000 - 10,000 tpa
Where do they source their material? Brazil & South Africa
Will they be interested? Yes..very much so!
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Marketing - IMEx
Gulf Industrials, 2012
IMEx Consulting 36
Hillview Platinum
1988 : 16m @ 4.37g/t Pt in Hillview laterite – mag targets under cover
1989-1990 : further Pt min – considered not economic – issues with Fire Assay
1991 – Vermiculite focus So how much Pt is present?
Hillview Pt Resource
IMEx Consulting 37
Pt 0.1g/t envelope
Section Hillview RAB cross secBon 6427730N
25m
Cover
Basement
Pt 0.5g/t envelope
Saprolite
Hillview Pt Resource
IMEx Consulting 38
Verm - Meas
Pt 0.1g/t envelope
Hillview Pt Resource
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Pt 0.1g/t envelope
Pt 0.5g/t “envelope”
Hillview Pt Resource
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Hillview Pt Resource
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Pt 0.5g/t shell
Verm - Meas
RTP magnetics
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Hillview Platinum
2014 : laterite Pt resource calculated 583,000 tonnes @ 1.30 g/t Pt (0.5 g/t cutoff) 25Koz Pt ($1477/oz) 0.1g/t cutoff : 6.8Mt @ ?? g/t Pt
Free dig Multiple untested magnetic anomalies
IMEx Consulting 43
Fifield Belt Platinum
Owendale (Platina) Ind/Inf : 18.3Mt @ 0.64 g/t Pt (0.4 g/t cutoff) 380Koz Pt (0.52Moz Pt - 0.3 g/t cutoff) Metallurgy
Conventional gravity recovery - 66.3% Chlorination process after an initial acid leach
(2012)
IMEx Consulting 44
Going Forward…
Hillview – EL 8248 Vermiculite
Continue negotiations with Exfoliators “Bulk” sample for trial Complete geology model
Platinum - laterite Target : +250Koz of +1.5g/t Pt Keens : 26m @ 1.39g/t Pt → Hylea
IMEx Consulting 45
Going Forward…
Hylea – ELA 5032 Platinum – laterite
500m x 400m +0.1ppm Pt anomaly (Lachlan, 1991) 21m @ 1.01 g/t Pt from 9m; H-107 21m @ 1.76 g/t Pt from 1m; HRC003 (Black Range)
Platinum - primary DDH-HY1 : 103-185m 82m @ 0.26g/t Pt DDH-HY2 : 87-170m 83m @ 0.14g/t Pt
IMEx Consulting 46
Going Forward…
Hylea – ELA 5032 Vermiculite
Tigers Creek (Platinum Search NL, 1994):
Inf Res - 4.8 Mt at 34% vermiculite
IMEx Consulting 47 GSNSW Bulle4n 33, 2007