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SCIDEV LTD Investor Presentation 2006
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Investor Presentation
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ABN 25 001 150 849
Superior and Sustainable Metals Production
Gordon Chin Building J01 Department of Chemical Engineering Maze Crescent University of Sydney NSW 2006 Australia
Phone: 02-9351-6741 Fax: 02-9351-7180 Email: [email protected] Website: www.intec.com.au ASX code: INL
31 March 2006
Companies Announcements Office Australian Stock Exchange Limited
Presentation to Sydney AusIMM Disposal of Mining Waste conference
On 29 March 2006, Dr Andrew Tong, Intec's Senior Research Metallurgist and Laboratory Manager, gave the attached presentation "From Liability to Asset - The Hellyer Metals Project" to the AusIMM Sydney Branch's "Disposal of Mining Waste" conference.
Material new information contained within the presentation include positive updates for the following:
- In situ metals valuation of the Hellyer tailings resource; ۰
- Burnie demonstration plant metals leach extraction efficiencies; and
- Zinc cathode and other operational outcomes at the demonstration plant. ۰
The full text of the supporting technical paper may be found at Intec's website www.intec.com.au.
Yours sincerely
ibir R. Wood
Philip R Wood Managing Director and Chief Executive Officer Intec Ltd
From Liability to Asset-The Hellyer Metals Project
Dr Andrew Tong Intec Ltd
Intec Group
©2006 Intec Ltd ABN: 25 001 150 849
29 March 2016
Hellyer Metals Project - Presentation Topics
1. Development of Intec's Technology
Intec Group
2. Intec Hellyer Metals Project
3. Process Description
4. Progress
29 March 2006
29 March 2006
Hellyer Mine History
1983: Aberfoyle's Que River mine commences operation, with ore trucked to Rosebery
Intec Group
1988: Aberfoyle commences mining at Hellyer - reserves of 15 mt @ 13%Zn, 6.7%Pb, 158g/t Ag, 0.3%Cu, 2.4 g/t Au
1989: Hellyer mill commenced operation
1998: Western Metals takeover of Aberfoyle
2000: Hellyer mine depleted and mill placed on care & maintenance
2003: Western Metals placed in receivership
2004: Intec/Ammtec acquire Hellyer Metals Project/Burnie
29 March 2006
Inter Ltd ABN: 25 001 150 849
| Intec Group | |||||
|---|---|---|---|---|---|
| Element | Grade | Quantity | In-situ ASm* | $%$ of metalvalue | |
| Gold = | 2.6 $g/t$ | 910,000 ozs | 725 | 24% | |
| Zinc | $2.8%$ | 305,000t | 1,131 | 37% | |
| Lead | $3.0%$ | 330,000t | 567 | 19% | |
| Silver | $88 \text{ g/t}$ | 30,850,000 ozs | 473 | 16% | |
| Copper | 0.16% | 17,400t | 132 | $4%$ | |
| Total | $3,027 | 100% | |||
| Macquarie Bank Limited | * US$ metal prices and US$/A$ exchange rate at 27 March 2006 from |
- 2012년 12월 20일 : 2012년 2월 2012년 2월 2012년
29 March 2006 2006
$\sim$ 02006 Intec Ltd ABN: 25 001 150 849 . . . . . . . . . . . . . . . . . . .
Aerial View of 1.5 mtpa Hellyer Mill
Intec Hellyer Metals Project Development Strategy
- Intec Group
- Use the tailings dam as a platform for establishment of a long life residue treatment facility
- Co-treatment of Hellyer tailings with zinc-bearing residues, for example:
- Electric arc furnace dust ( $\sim$ 20-40% Zn)
- Smelter slag e.g. Zeehan slag dump $(450,000 \text{ t at } -19% \text{ Zn})$ equivalent grade at current prices)
- Primary Leach Residue, para-goethites, etc.
- $\blacksquare$ Proposed Project feedstock configuration: 500,000 tpa Hellyer tailings 100,000 tpa zinc-bearing residues
Hellyer Metals Project - Check List
Intec Group
Jan-Sep $04$ :
Pilot leach plant campaign (Brookvale, Sydney) Zinc purification $&$ electrowinning (Sydney) Gold recovery (AJ Parker Centre, Perth) Pre-feasibility study by H.G. Engineering (Toronto, Canada) Jan-June $05$ : A$12 million capital raising Commence full scale zinc electrowinning cell (Burnie) Commence demonstration plant construction (Burnie) Jun-Dec 05: Commission of demonstration plant (Burnie) Jan-Jun 06: Operation of demonstration plant (Burnie) Jun-Sept 06: Bankable feasibility study Sep-Dec 06: Project Financing Construction and commissioning of commercial plant Jan 07 - Jun 08:
Post July 08: First commercial production (Hellyer)
29 March 2006
Hellyer Tailings Mineralogy
Size $p80$ 35-45 $\mu$ m
Mineral Grade Sphalerite $4.2%$ Galena $3.5%$ 51.0% Pyrite Arsenopyrite $2.7%$ Chalcopyrite $0.5%$ $0.1%$ Tetrahedrite
Comment $50%$ with pyrite moderate oxidisation crystalline
$Meta(s)$ $Zn$ $Pb + Ag$ 60-70% of Au 20-30% of Au $\rm Cu$ $75%$ of Ag
Intec Group
Non-sulphide gangue 38.2% (Silica, barite, calcite, siderite, etc)
29 March 2006
Electric Arc Furnace (EAF) Dust
'Steel Mini Mill' $\overline{P}$ EAF
Scrap steel (incl. galvanised steel)
• Annual world production of EAF dust $\sim$ 3-5 million tonnes ■ Hazardous waste that incurs high disposal costs $>$ A$200/t $\blacksquare$ Zn grades up to 20-40%, as ZnO, ZnFe2O4
Steel
EAF Dust
Intec Group
• Negotiation of supply contracts nearing completion
29 March 2006
450,000 tonnes Zeehan Slag Dump
- Acquisition from current owners proceeding
- 90km by road from Hellyer
- A$380 value of contained metal per tonne (current A$ prices)
- A$172 million total value contained metal (current A$ prices)
- 13.4%-Zn, 1.7%-Pb, 54g/t-Ag, 50g/t-In D
29 March 2016
Hellyer Metals Project - Presentation Topics
Intec Group
1. Development of Intec's Technology
2. Intec Hellyer Metals Project
3. Process Description
4 Dramess
29 March 2006
Hellyer Metals Process Flow Diagram
Hellyer Process Chemistry
Intec Group
ELeach
- MS + 2Cu2+/Fe3+ $\rightarrow$ M2+ + 2Cu+/Fe2+ + S (M= Zn, Pb, Cu)
- $\bullet$ 4FeS2 + 15O2 + 2H2O $\rightarrow$ 8SO42- + 4Fe3+ + 4H+
- FeS2 + 7.5BrCl2 + $\rightarrow$ FeCl3 + 7.5Br + 2H2SO4 + 12HCl
E Purification
- $\triangleq 2Fe^{3+} + 3CaCO_3$ $\triangleq 2Fe_2O_3 + 3Ca^{2+} + 3CO_2$
- $4Cu^{2+} + 3CaCO_3 + 2Cl$ → $2Cu_2(OH)_3Cl + 3Ca^{2+} + 3CO_2$
- $\bullet$ Pb2+ + Ag+ + Cu2+ + Zn $\rightarrow$ Pbo/Ago/Cuo + Zn2+
Electrowinning
$ZnCl2 + Br$ $\rightarrow Zn$ (cathode) + BrCl2 (anode)
29 March 2006
Hellyer Metals Project - Presentation Topics
1. Development of Intec's Technology
Intec Group
2. Intec Hellyer Metals Project
3. Process Description
4. Progress
29 March 2006
Intec Pilot Plant at Ammtec, Sydney
29 March 2006
Completed construction of IHM Demo Plant
Intec Group
©2006 Intec Ltd ABN: 25 001 150 849
29 March 2006
Demonstration Plant - Product Recovery
Intec Group
Being electrowon as 'super-jumbo' cathodes Zinc: in commercial-scale cell
Melting $&$ ingot casting trials commenced
$\blacksquare$ Lead/silver cement:
Stockpiled awaiting briquetting prior to delivery to potential consumers
- " Gold: Loading onto carbon columns to commence shortly prior to bullion product at AJ Parker Centre
- Precipitation of $Cu2(OH)3Cl$ proceeding prior to Copper: offsite production of copper sulphate by SX/IX
29 March 2006
Demonstration Plant – Feedstock Composition
- Initially Hellyer tailings alone $1.$
- Current feed composition: Hellyer tailings: Smorgon EAF dust: OneSteel EAF dust:
- $\overline{3}$ . Future feed composition: Hellyer tailings: Smorgon EAF dust: OneSteel EAF dust:
Zeehan slag:
94% $4.4%$ $1.6%$
Intec Group
$82%$ $5%$ $2%$ $11%$
$\mathbb{Z}.$
Demonstration Plant-Leach Extraction Efficiencies Intec Group
Extraction Efficiency (%)
| Metal | Tails | Tails + EAF | Target | ||
|---|---|---|---|---|---|
| Zinc | |||||
| Lead | |||||
| per | |||||
| Silver | |||||
- Efficiencies over typical periods of 1-2 months
- Confirms pilot plant results
- Efficiencies expected to incrementally improve with optimisation
29 March 2016
Typical demo plant assay
Products from the Demo Plant
| Product | $\mathbf{Zn}$ % | Pb % Cu % Fe % Ca % Cl % | ||||
|---|---|---|---|---|---|---|
| Leach Residue | 0.3 | 0.1 | 0.05 | 15 | $10-$ | $\leq 0.05$ |
| Fe Residue | 0.1 | 0.1 | 0.1 | 55 | $\leq 1 - 1.5$ | |
| Cu by-product | $1 - 2$ | 0.5 | $25 - 30$ | $3 - 5$ | $10 - 17$ | |
| Pb/Ag Cement | $-1-2$ >95 | 0.1 | 0.1 | |||
| Zn Cathode | $>98.5$ 1-1.5 | 0.01 | 0.01 | 0.01 | nd | |
Intec Group
29 March 2006
Demo Plant Achievements
$\bullet$ Validated more than 80% overall metal value extraction in over 4 week period
Intec Group
- Demonstrated viable performance for leach and iron residues filtration
- E Production of Fe residue with low CI content, and Fe $\text{grade}$ > 50 % (hematite-goethite)
- Successful control of lead to produce Zn cathodes exceeding Prime Western Grade specification
- Oxidation of the cuprous and ferrous ions to enable precipitation
- Control of Cu recycle to enhance leach mechanism
Intec Ltd ABN: 25 001 150 849
Demo Plant Achievements
- Zinc dust addition control
- Example 20 Control of lead chloride precipitation
- Handling of lead cement products
- $\odot$ Continuous operation of the Zn-EW cell
- Control of water balances in a closed loop circuit
- General mechanic issues
- Residue filterability and wash recoveries good
29 March 2006
Inter Ltd ABN: 25 001 150 84
Intec Group
Successful Zinc Plate Production
Intec Group
©2006 Intec Ltd ABN: 25 001 150 849
29 March 2006
Successful Zinc Plate Production
Intec Group
©2006 Intec Ltd ABN: 25 001 150 849
29 March 2006
Demo plant optimisation ahead
- Gold recovery optimisation
- Lead and silver cement quality control
- Zinc plate production optimisation
- E Consumables optimisation
- Steady state operation for metallurgical data
ec I td ABN: 25 001 150 8
Intec Group
Bankable Feasibility Study Team
Intec Group
Principal Contractor:
Worley Parsons, a leading Australianbased international engineering firm.
Sub-contractors:
- Tailings resource:
- Demonstration plant reporting:
- Environmental:
- Geotechnical & residue dam design:
- Engineering plant design:
- Process control & instrumentation:
- Tailings recovery:
- Zinc tank house design:
AMC Consultants Ammtec Caloundra Environmental GHD H.G. Engineering Honeywell Neumann Dredging Umicore
29 March 2006
ntec 1 td ABN: 25 001 150 849
Intec Hellyer Commercial Plant-Project Description
- Tailings reclaimed by dredging
- $\blacksquare$ Tails pumped 3 kms to Intec plant
- Leach and Precipitation reactors FRP $\blacksquare$
- Belt filters for leach and iron residues $\blacksquare$
- Leach and iron residue pumped to new tailings dam
- Zinc electrowinning: 1.5m by 1.0m cathodes, 600 A/m2, 3.2 V & 95% current efficiency $-32,000$ tpa Zn
Intec Group
- $\blacksquare$ $\gtrsim$ Zinc dust cementation of lead and silver $-16,000$ tpa Pb
- Gold recovery onto carbon in columns $-15,000$ ozs pa Au
- Copper recovery as $CuSO4$ via ion-exchange $-1,600$ tpa Cu
ntec 1 td ABN: 25 001 150 849
Hellyer Project - Pre-Feasibility Indicative Economics * Intec Group
| Production | 0.5mtpa tailings | ||||
|---|---|---|---|---|---|
| 0.1 mtpa zinc residues eg EAF dust | |||||
| Project Life | 22 years | ||||
| Capital Cost | A$136 million | ||||
| Operating Cost | A$28 million pa | ||||
| Net Sales Revenue | A$91 million pa | ||||
| Margin | 70% | ||||
| Cash flow | A\$62 million pa | ||||
| IRR (all equity/post tax) | $32%$ | ||||
| $NPV @ 10%$ (all equity/post tax) | A$242 million |
* Metal prices & US$/A$ exchange rate @ September 2004
29 March 2006
Intec Hellyer Metals Commercial Plant
• Intec Process maximises value from the Hellyer tailings resource
Intec Group
- Advantages over sulphate system include:
- improved leach kinetics and oxygen transfer
- ability to extract lead and silver into solution
- ability to extract gold directly without cyanide
- Low cost supplementary zinc-rich feedstocks considerably improve project economics
- Environmental "cleanup" of base metals from tailings dam
29 March 2006
re 1 td ABN: 25 001 150 849
Contact Intec Ltd
Philip Wood Managing Director Chief Executive Officer Email: [email protected] John Moyes Technical Director Email: $\bigcirc$ [email protected] Kieran Rodgers
Chief Financial Officer $\sim$ kieran $@$ intec.com.au Email: Dr Andrew Tong
Senior Research Metallurgist [email protected] Email:
Intec Ltd
$T$ el:
$\text{Fax:}$
Web:
Gordon Chiu Building, J01 Department of Chemical Engineering Maze Crescent, University of Sydney NSW 2006 AUSTRALIA
$+61 - 2 - 9351 - 6741$
$\pm 61 - 2 - 9351 - 7180$
Contact Hellyer Metals Project
Jean-Louis Huens
General Manager Demonstration Plant Email: [email protected] Mick Ryan
Operations Manager
[email protected] Email:
Andrew Platts
General Manager Hellyer Metals Project Email:
[email protected] Web:
Intec Hellyer Metals Pty Ltd 39 River Road Burnie TAS 7320 AUSTRALIA Tel: $+61-3-6431-6156$ $+61-3-6431-6896$ $\text{Fax}:$ www. intec.com.au