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ALTECH BATTERIES LTD — Investor Presentation 2011
May 31, 2011
64444_rns_2011-05-31_68ddd30b-624c-40ad-95e1-6125936291e8.pdf
Investor Presentation
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China and Canada Investor Presentation
June 2011
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www.ammg.com.au
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Disclaimer
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Certain statements made during or in connection with this communication, including, without limitation, those concerning the economic outlook for the exploration industry, expectations regarding commodity prices, production, cash costs and other operating results, growth prospects and the outlook of Australia Minerals and Mining Group Limited‟s (AMMG) operations; contain or comprise certain forward-looking statements regarding AMMG‟s exploration operations, economic performance and financial condition.
Although AMMG believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. Accordingly, results could differ materially from those set out in the forward-looking statements as a result of, among other factors, changes in economic and market conditions, success of business and operating initiatives, changes in the regulatory environment and other government actions, fluctuations in commodity prices and exchange rates and business and operational risk management. AMMG undertakes no obligation to update publicly or release any revisions to these forward-looking statements to reflect events or circumstances after today‟s date or to reflect the occurrence of unanticipated events.
The Chinese version of this document translated by AMMG has been prepared with the utmost care. However, AMMG does not accept any liability for the correctness and completeness of the content of the translation and the direct or indirect consequences of acting or failing to act based on this translation. In all cases, the English document shall take precedence.
Competent Person Statement
Technical information in this report is based on information compiled by Mr. Derek Judkins B.Sc. Geology, AMMG Chief Geologist and a member of the Australasian Institute of Mining and Metallurgy. Mr. Judkins has sufficient exploration experience which is relevant to the styles of mineralisation and types of deposit 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 Exploration Results, Mineral Resources and Ore Reserves‟ (“JORC 2004”). Mr. Judkins consents to the inclusion in this release of the matters based on his information in the form and context in which it appears.
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Banded iron formation (BIF) outcropping at Bencubbin
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Corporate Snapshot
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| BOARD OF DIRECTORS | BOARD OF DIRECTORS |
|---|---|
| Luke Atkins | Non-executive Chairman |
| Ric Dawson | Managing Director |
| David Brook | Non-executive Director |
| Chris Forrester | Non-executive Director |
| Dan Tenardi | Non-executive Director |
| Piers Lewis | Company Secretary/ Chief Financial Officer |
| Ordinary shares | 100.9m |
|---|---|
| Listed options | 42m |
| Unlisted options | 11.5m |
| Market Cap @ 31 May 2011 | 13.12m |
| Cash @ 31 May 2011 | 6.8m |
| Debt | Nil |
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Major Shareholders as at 31 May 2011
Top 20
Shareholders
Directors,
36%
Founders &
52% Associates
Remaining
Shareholders
12%
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Investment Case
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| Experienced board & | Strong financial position | ||||||
| management team | |||||||
| - No debt. | |||||||
| - Board level mining and | - $6.8m cash as at 31 May | ||||||
| corporate experience. | 2011. | ||||||
| - Experiencedexploration, | |||||||
| technical marketingand | - ASX listed company. | ||||||
| management team. | |||||||
| - Diverse geological | |||||||
| experience across various | |||||||
| mineral sectors. | |||||||
| Strong business case | Focused project selection criteria |
||||||
| - Business case supported by China‟s expansion in mineral demand. - Increasing demand from India, China and SE Asia for minerals. - Closeshipping distance to expanding markets of China. |
Diverse range of Australian mineral projects - Minerals in increasing demand from abroad such as iron ore, kaolin and mineral sands. |
Strong relationships with Asia - Corporate marketing focus on South East Asia and China as part of corporategrowth strategy. |
- Targeting mineral projects with historical data and potential access to infrastructure. - Exposure to improving markets. - Potential leverage to Asian markets. |
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| - Potentialjoint venture | |||||||
| opportunities. | |||||||
| 4 |
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Corporate Strategy
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VISION
To develop a diversified suite of mineral projects securing finite resources to take advantage of emerging markets and create shareholder value.
PRIORITIES
Our current nearer term priorities are on:
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Advancing the Constance Range project through regional consolidation ( iron ore )
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Consolidating a Western Australian, South West Yilgarn regional project (targeting iron ore)
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Increasing and marketing the current JORC resource at Meckering
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Kerrigan kaolin project showing kaolin at surface
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( kaolin ) - achieved 65Mt
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Increasing and marketing the current JORC resource at Lake Macleod
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( gypsum ) – achieved 30Mt
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Project Locations
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Priority project focus: 1. Iron Ore 2. Kaolin 3. Gypsum 4. Salt 5. Mineral sands 6. Coal Exploration licences granted or under application covering approximately 9,458km²
SHIPPING DISTANCE TO CHINA: ~ 6,000km vs West Africa ~ 20,000km South America ~ 23,000km
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- Locations
Priority Projects
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PROJECT TARGETING South West, WA (Yilgarn) Iron Ore Constance Range, QLD Iron Ore East Pilbara, WA Iron Ore South West, WA Kaolin South West, WA Salt Lake Macleod, WA Gypsum South West, WA Mineral Sands
Banded iron formation (BIF) outcropping at Bencubbin
Potential rail, power and water services at Meckering Kaolin Project
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AMMG representatives inspecting banded iron formation (BIF) outcropping at Bencubbin
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AMMG representatives inspecting kaolin located at Meckering test pit
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Banded iron formation (BIF) outcrop located at
Bencubbin
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Projects in Focus
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South West WA
– Yilgarn
targeting iron ore
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Evaluation of potential areas in relatively close proximity to
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infrastructure (road, rail, port) ongoing.
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Evaluation of available aeromagnetic data to create targets.
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Program of follow up ground magnetics, field reconnaissance and RC drilling.
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Existing rail network, South West WA
– Constance Range targeting iron ore
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Evaluation of historical data progressing.
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Seeking regional ground consolidation.
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Analysis of potential iron ore beneficiation/processing techniques underway.
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Evaluation of historical data advanced.
Aerial view of Constance Range QLD project
South West WA – kaolin
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Seeking to increase a 65Mt JORC resource over historical work at Meckering.
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Create a JORC resource from historical CRA (Rio) work at Kerrigan.
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Seeking to advance historical work at Kellerberrin.
Kaolin test pit at Meckering
Lake Macleod –
gypsum
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Evaluation of historical data completed
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Drilling program completed.
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Seeking to increase 30Mt JORC
resource.
Lake Macleod drill rig
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Yilgarn Iron Ore Projects
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Esperance Port
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Kwinana Bulk Terminal
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Bunbury Port
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Yilgarn Iron Ore Projects
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BIF outcrop at Bencubbin
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and .
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Targeting hematite/goethite magnetite
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2 exploration licences granted, with 8 applications pending. Total tenement area is 1,799km².
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Relatively close proximity to established rail, road .
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and port networks
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Targeting magnetic anomalies (potential BIF‟s) using aeromagnetic analysis.
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Ground magnetic fieldwork and follow up drilling of granted tenement in preparation with heritage surveys being planned for Q3, 2011.
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Existing rail line at Bencubbin
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BIF outcrop at Bencubbin
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AMMG representatives at Pingaring
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BIF outcrop at Bencubbin
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Yilgarn Iron Ore Projects
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Bencubbin Project
Aeromagnetic data shows the geological structure under the surface for ~14km strike length
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Pingaring Aeromagnetic data shows the geological structure under the surface for ~5km strike
length
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Burngup Project Aeromagnetic data shows the geological structure for ~13km strike length
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Yilgarn Iron Ore Projects
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Goomalling Project
Aeromagnetic data shows the geological structure for ~5km strike length
Kukerin Project
Aeromagnetic data shows the geological structure for ~5km strike length
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Constance Range Iron Ore Project
China
~5,500
kms
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Constance Range Iron Ore Alliance
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A Memorandum of Understanding (MOU) signed between AMMG and three Constance Range project holders: Viento Group, Icon Resources and Resolve Geo.
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The MOU parties will work together towards:
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Potentially consolidating their respective tenement areas into a single corporate entity under the banner of the Constance Range Iron Ore Alliance.
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Communicate on behalf of the Constance Range Iron Ore Alliance on issues affecting the iron ore industry in the Constance Range region of northwest Queensland.
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The parties to the Alliance have three granted EPM and seven pending applications comprising 1,186km² in total area.
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The Alliance has 92 kilometres strike length of the bedded ironstone outcrop sequence.
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Constance Range Iron Ore Project
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Aerial view of outcropping Train Range Ironstone member, Constance Range
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Constance Range Iron Ore Alliance
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Substantial historical BHP database available.
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BHP explored between 1956 – 1963; delineated 15 outcropping deposits over 100km strike length.
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DSO product could conceptually be transported by road train to Burketown.
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Magnetite slurry could conceptually be slurry piped to existing facilities at Port of Karumba.
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Deposit “A”, BHP (pre 1963) drilled 16,256m of BQ diamond core.
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Deposit “A”, 2007 drilling consisted of 1,275m of HQ diamond core.
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Deposit “A” has a current JORC/43:101 Compliant Inferred Resource of 236Mt at 53.2% Iron, 10.3% Silica, 1.6% Alumina, 0.02% Phosphorus, and 11.2% Loss of Ignition (LOI).
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Deposit “A” has a current JORC/43:101 Compliant Inferred “DSO” in Deposit A of 15mt at 56.5% Iron.
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In addition Deposits “B”, “C”, “D”, “H”, “I”, “J” and “P” are also included in the MOU Alliance.
Source: Kimberley Metals 2009 Prospectus
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East Pilbara Iron Ore Project
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Six exploration licence applications in the Pilbara Mineral Field; total tenement area is 1190km².
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Tenements in relatively close proximity to the Mt Goldsworthy rail line and Port Hedland port facilities .
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Magnetics, radiometrics and Landsat imagery available for identifying targets* with potential magnetite iron ore mineralisation.
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One tenement has the “along strike” potential from the Mt Ridley magnetite deposit.
*The term “Target” should not be misunderstood nor misconstrued as an estimate of Mineral Resources and Reserves as defined by the JORC Code (2004), and therefore the term has not been used in this context. It is uncertain if further exploration or feasibility study will result in the determination of a Mineral Resource or Mining Reserve.
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South West Kaolin Project
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Distance
~168km
Distance
~400km
9 tenements held over
three project areas:
1. Meckering
2. Kellerberrin
3. Kerrigan
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Meckering Kaolin Project
JORC kaolin resource of 65Mt comprising 16.77Mt indicated and
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48.28Mtinferred.
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Tenement bisected by
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Trans-Australian railway
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Great Eastern Highway
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Kalgoorlie goldfields water pipeline;
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SWIS Kalgoorlie Goldfields power line
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View of Meckering project
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Private freehold land – Native Title extinguished
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Key landowner agreement in place
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Access to substantial historical database.
Electricity Water Rail
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Mediterranean moderate to dry climate – year round accessibility
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Low average annual rainfall (~341mm) –
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limited dewatering
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Cleared broad farms (wheat, sheep) – lower environmental impact
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Gently undulating flat terrain and near surface deposit – low stripping ratio
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Approx 135km to Western Australian capital city, Perth
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Low rural population density – low environmental impact
Potential available infrastructure
Meckering Kaolin Project
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Aerial view of Meckering
Kaolin test pit
75kms
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Meckering Kaolin Project
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Meckering kaolin project test pit
Inside the test pit 21
Meckering Kaolin Project
JORC Resources
| Tonnage | %-45 micron1 | Brightness2 | |
|---|---|---|---|
| Indicated resource | 16,770,000 | 42.3% | 83.2% |
| Inferred resource | 48,280,000 | 41.8% | 83.5% |
| Total resource base | 65,000,000 | 41.9% | 83.4% |
JORC: Joint Ore Reserves Committee, common reference to the Australasian Code for Reporting of Identified Mineral Resources and Ore Reserves, 2004
Mineral Analysis
(dry screened -45μm micron metres )
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38% alumina (Al203)
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Low impurity, iron (Fe2O3), titanium (TiO2)
SiO ₂ Al203 Fe2O3 TiO2 CaO MgO Na2O K2O MnO P2O5 Ig.loss Total % % % % % % % % % % % 45.86 38.32 0.43 0.56 0.05 0.17 0.45 0.27 0.00 0.05 13.83 100.00
lg.loss: removal of chemically bound water
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Kerrigan Kaolin Project
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Two tenement applications totalling approximately 460km².
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Previous CRA (Rio Tinto) drilling.
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Rio Tinto historical data available on the project.
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Exploration target* determined based on historical drill hole data and outcrop geology.
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Bradley deposit contains crude kaolin to depth of 30 metres(<10micron kaolin clay at a grade of 45% kaolin).
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• Database of historical drill holes complete to allow for
AMMG representatives inspecting kaolin at Kerrigan project
JORC resource definition.
Bradley deposits located at Kerrigan project
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Kerrigan Kaolin Project
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CRA (now Rio Tinto) exploration work on Kerrigan/Bradley deposit in 1993.
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CRA undertook mineral and chemical analysis of diamond drill core and aircore samples.
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XRF analysis for diamond drill samples was undertaken on -2micrometre kaolinite fraction.
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XRF analysis for aircore sample is for -45 micrometre sized fraction.
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All samples were taken from areas within AMMG tenements.
Mineral Analysis
(dry screened -2μm micron metres )
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38% alumina (Al203)
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Low impurity, iron (Fe2O3), titanium (TiO2)
AMMG representatives inspecting kaolin road at Kerrigan project
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Kerrigan kaolin project showing kaolin at surface
| SiO₂ % |
Al203 % |
Fe2O3 % |
TiO2 % |
MgO % |
SO3 % |
Na2O % |
K2O % |
P2O5 % |
Ig.loss % |
Total |
|---|---|---|---|---|---|---|---|---|---|---|
| 46.0 | 38.3 | 0.3 | 0.1 | 0.1 | 0.1 | 0.4 | 0.7 | 0.3 | 13.6 | 100.00 |
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lg.loss: removal of chemically bound water
South West WA Kaolin Projects
Processing Techniques
The Company is currently investigating two forms of processing techniques for the use of the kaolin.
1. Dry processing
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This technique uses no water and its applications are for fibre glass and ceramic industries.
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Dry processing produces air float kaolin which is used as a filler in the asphaltic roofing, rubber, adhesive and paper industries.
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The process also produces a soft kaolin product, which is used in soft rubber applications, refractory industries, glazes, sanitary ware, cements, pesticides and automotive parts.
| 39mtpa kaolin global production distribution* |
39mtpa kaolin global production distribution* |
|---|---|
| Paper filling & coating | 45% |
| Refractories | 16% |
| Ceramics | 15% |
| Fibreglass | 6% |
| Cement | 6% |
| Rubber & plastics | 5% |
| Paint | 3% |
| Catalyst | 2% |
| Others | 2% |
*Roskill Information Services Ltd
2. Wet processing
- This technique uses water and its applications are for paint, paper, polymer, cosmetic, pharmaceutical and ceramic industries.
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South West Kaolin Projects
Exploration Targets*
| Project | Indicated (Mt) |
Inferred (Mt) |
Exploration Target (Mt)* |
Land Holding Grant/App (km²) |
|---|---|---|---|---|
| Meckering | 16.77 | 48.28 | 75-130 | 966 |
| Kerrigan** | - | - | 100-150 | 459 |
| Kellerberrin | - | - | 70-110 | 408 |
| TOTAL | 16.77 | 48.28 | 265-390 | 1,833 |
*The term “Target” should not be misunderstood nor misconstrued as an estimate of Mineral Resources and Reserves as defined by the JORC Code (2004), and therefore the term has not been used in this context. It is uncertain if further exploration or feasibility study will result in the determination of a Mineral Resource or Mining Reserve
** Substantial CRA (Rio Tinto) historical database and drilling results from Kerrigan (Bradley) including historical bulk sample testing.
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South West Salt Project
3 joint venture tenements granted , with
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3 joint venture tenements granted , with a further two applications pending.
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Natural lake recharge. Adjacent to existing salt operations. Adjacent to rail services connected to ports.
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Total tenement area is 436km². Sample analysis program planned for the year.
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Target chlor-alkali market
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Lake Macleod Gypsum Project
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| INFERRED RESOURCES LAKE MACLEOD NORTH |
INFERRED RESOURCES LAKE MACLEOD NORTH |
INFERRED RESOURCES LAKE MACLEOD NORTH |
|---|---|---|
| Gypsum Cut Off | >85% | >90% |
| M Tonnes | M Tonnes | |
| North (Block 1) | 4.9 | 3.5 |
| South (Block 2) | 26.1 | 9.8 |
| Total | 30.9 | 13.2 |
| Overall Grade | 89.5% | 92.1% |
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1 granted tenement and four exploration licence applications.
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30Mt JORC inferred resource delineation by external consultant Reynard Australia.
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Total tenement area is 990km².
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Distance to coast ~30km, to North West Coastal highway ~20kms.
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Potential to use existing infrastructure (subject to negotiations).
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Substantial historical drilling database.
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First phase drilling completed.
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Detailed market research underway, discussions ongoing with potential off-take customers.
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Two exploration licence applications pending.
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• Total tenement area approx. 156km².
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Previously reported by BHP as containing ilmenite and zircon.
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Targeting coastal shoreline deposits, previously mined by BHP.
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• Field surveys and potential air-core drilling planned for the year.
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South West Projects
Relatively Close Proximity to Road, Rail & Ports
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Rail Sizes
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Why invest in Australia?
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~6,000 kms
from Australia
to China
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Western democracy – stability for overseas investors
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Western Australia one of the world‟s richest mineral provinces
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Pro-mining Western Australia State Government with mandate to expedite approval processes
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Low sovereign risk vs. other high risk nations
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Skilled mining workforce
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Mining-based economy
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Close proximity to emerging markets and competitive shipping freight advantage
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Same time zone as China
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Well developed legal system
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Why invest in AMMG?
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Mr Wang Xin Chairman Yankuang Group Shandong Province,
Mr Luke Atkins Chairman AMMG Mr Jiang Daming Governor of Shandong Province
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Western Australia – The Place To Be
WA‟s Share of World Mineral Output
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SELECTED WA COMMODITIES RELATIVE TO WORLD PRODUCTION 2009, BY QUANTITY
| Alumina | ||||||||||||||||||||||||||||||||||
| Diamonds | ||||||||||||||||||||||||||||||||||
| Garnet | ||||||||||||||||||||||||||||||||||
| Gold | ||||||||||||||||||||||||||||||||||
| Ilmenite | ||||||||||||||||||||||||||||||||||
| Iron ore | ||||||||||||||||||||||||||||||||||
| LNG | ||||||||||||||||||||||||||||||||||
| Nickel | ||||||||||||||||||||||||||||||||||
| Rutile | ||||||||||||||||||||||||||||||||||
| Salt | ||||||||||||||||||||||||||||||||||
| Tantalum | ||||||||||||||||||||||||||||||||||
| Zircon | ||||||||||||||||||||||||||||||||||
| 0% | 10% | 20% | 30% | 40% | 50% | 60% | 70% | 80% | 90% | 100% | ||||||||||||||||||||||||
| Western Australia | Rest of Australia | Rest of World |
Source: DMP, ABARE and USGS
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China‟s Iron Ore Imports
Source: Interfax China Ltd
Million tonnes
300 Australia exported $23.7 China imported 261.9
billion AUD in 2009 of million tonnes of iron ore
250
iron ore to China from Australia in 2009
200
150
100
50
0
Australia Brazil India South Ukraine Canada Russia Iran Indonesia Mauritania Peru Others
Africa
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Iron ore being loaded onto a ship at Cape Lambert port, Pilbara, WA
Port Hedland port, North West, WA
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Investment opportunities with AMMG
Strategic Co-operation
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Opportunity for:
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Direct investment by way of issue of new shares.
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Strategic co-operation for exploration.
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- Strategic co-operation for project development processing facilities and infrastructure development.
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- Strategic co-operation for off-take sales agreements.
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Thankyou from the AMMG corporate management team
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Piers Lewis Summer Qi Derek Judkins Jane Carew-Reid BComm CA ME(ChemEng) BSc(Geol.) MAusIMM BA(Comm) Highly experienced Born in Weifang, Highly experienced Qualified in Chartered Accountant. Shandong Province, geologist, with over 30 communications, China. years experience in the marketing, and Company Secretary/CFO Manages research and mining industry. administration. of several ASX listed development in mineral resource companies. processing technologies, Manages exploration, Manages project and feasibility studies, geological investigations, corporate marketing, technical and overseas historical data and human resources, marketing. project planning. IT support, and accounts.
Jane Carew-Reid
Manages project and corporate marketing, human resources, IT support, and accounts.
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