the tungsten company
DESCRIPTION
Icon Resources flagship Mt Carbine mine is gearing up to reopen. Historically Australia's largest tungsten producer, it will be in production 2011.TRANSCRIPT
Icon Resources Ltd (ASX: III)
Icon Resources
DisclaimerThe information in this presentation is published to provide information about Icon Resources Ltd (Icon) and its subsidiaries. All reasonable effort has been made to provide accurate information, but we do not warrant or represent its accuracy and reserve the right to make changes to it at any time without notice.
To the extent permitted by law, Icon accepts no responsibility or liability for any losses or damages of any kind arising out of the use of any information contained in this presentation.
Competent Person’s StatementInformation in this presentation that relates to Exploration Results is based on information compiled by Darcy Milburn, who is a member of the Australian Institute of Mining and Metallurgy. Mr Milburn is a full-time employee of Icon and has sufficient experience relevant to the styles of mineralisation and types of deposits under consideration and to the activity he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr Milburn consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
Scheelite fluoresces under ultraviolet light. ‘Iron Duke’ lode, Mt Carbine
Icon Resources Ltd (ASX: III)
Corporate
Experienced, technical board and managementDr Leon Pretorius, ChairmanDr Andrew White, Non-exec. DirectorIan Sheffield-Parker, Managing DirectorDarcy Milburn, Exploration Manager
Shares price & market capASX-listed - code III
~119 million shares on issue
23 million unlisted options
Current share price ~14¢
Market cap ~$20 million
Icon Resources Ltd (ASX: III)
Icon Project Overview
Icon to be the tungsten producer, based on its Mt Carbine (North Queensland) projectIcon’s copper/zinc VMS prospects spun off to listed entity Fitzroy Resources (ASX:FRY) (completed December 2010)Icon’s gold prospects to be spun off to Gossan Hill Gold - IPO planned early 2011
Icon Resources Ltd (ASX: III)
Tungsten - the ‘Cutting Edge’ of Industry
Tungsten has a range of strategic applications essential to modern society
‘Hard metal’ cutting/drilling tools
High-speed steels, alloys
Light globe filaments
Mobile phones, smart building windows, new technologies, aviation & military
Tungsten is a rare metal with no substitutes for its applicationsMost important applications are tungsten carbide and hardening steelDemand is predicted to increase as developing nations increase their manufacturing capabilities
Icon Resources Ltd (ASX: III)
Tungsten Market
~60,000 tpa W tradedDominated by China - 65% of world resources@ 2010 China had 80% of production, now net importerWestern production depleted or facing long lead to start-up Roskill predicts >12% supply shortage in 2015No current Australian producers
Metal price: Tungsten concentrates min 65% - China
Date 2010-12-09
Market China
Icon Resources Ltd (ASX: III)
Mt Carbine - Competitive Advantages
Granted Mining Leases (Native Title extinguished) Environmental ApprovalSuperb Infrastructure
Mine site is ~45 minutes drive to Port Douglas, 1.5 hours to Port of CairnsSealed roads, mains power pass through mine leases, several options for waterExisting tailings storage with several years capacity
18-20 year production from tungsten in
TailingsLow grade stockpilesHard rock inferred resource
New market for low grade concentrates
Icon Resources Ltd (ASX: III)
Mt Carbine - Strategic Advantages
Production start-up third quarter 2011Best pre-concentration result from ore sorting of all tungsten ‘would be's’Strategic holding of highly prospective exploration ground around existing mine leasesStrong exploration program planned in ML's and EPM's to feed market with on-going discovery/resource upgrades over next 2-3 years and extend potential mine lifeOpportunity to build credibility as producer before hard rock mining starts – reducing risk of hard rock mining, capital raising Mill in place and paid for before hard rock mining starts – reducing risk of price falls
Icon Resources Ltd (ASX: III)
Mt Carbine open cut, 1986Mt Carbine deposit is typical of its type:
Low grade, but potentially very large (75% of mineralised system still not explored)
Mt Carbine is different from many other tungsten deposits:The low grade ore is highly amenable to substantial pre-concentration by ore sorting
Mt Carbine - Quality
Icon Resources Ltd (ASX: III)
Mt Carbine Plan
1. Retreat the tailings (2Mt @ 0.1% WO3 (JORC) inferred resource - for 600 tpa WO3 for 2 years
2. Retreat low-grade stockpiles (12Mt @ 0.075% WO3) for 1,200 tpa WO3 >5 years
3. Hard-rock mining (JORC) inferred resource of 39mt @ 0.14% WO3 for 2,400 tpa WO3 >10 years
Icon Resources Ltd (ASX: III)
Summary
• Projected Operations
• * tonnes of WO3 in mixed concentrate @ >52% WO3
• 1. Bulk sample processing confirmation April 2011• 2. On site ore-sorter tests Nov/Dec 2010 and Jan 2011
Production* EBITDA Capex Mine Life
Tailings1:
2011 start-up ~50t/mth ~$5M/yr $4M 2 years
Low grade stockpiles2:2012 start-up
~100t/mth ~$15M/yr $20M >5 yrs
Hard-rock: ~200t/mth ~$30M/yr $5M >10 yrs
Icon Resources Ltd (ASX: III)
Working Capital Requirements
$2.5M operating costs until cash flow from first sales 1
$2M mine lease expenditure, feasibility studies and exploration
$2M ML purchase
$4M construction of tailings processing plant 2
Total $10.5M
1 and 2 are essential for tailings production
Icon Resources Ltd (ASX: III)
Contact Details
• Ian Sheffield-Parker
• Managing Director
• Mobile: 0409 989 960
• Email: [email protected]
• (Onsite at Mt Carbine)