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TALGA GROUP LTD — Investor Presentation 2013
Feb 12, 2013
65925_rns_2013-02-12_c9251fb4-2a11-4d43-9b3d-4eff662f95c3.pdf
Investor Presentation
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Talga Resources Ltd (ASX:TLG) RIU Conference Presentation ~~TALGA~~ R E S O U R C E S February 2013
Forward Looking Statements & Disclaimer
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This presentation has been prepared by Talga Resources Limited (ACN 138 405 419) (“Issuer”) for the sole purpose of providing an overview of its current prospects and proposed exploration and development strategy to recipients (“Recipient”). This presentation and its contents are provided to the Recipient in confidence and may not be reproduced or disclosed in whole or in part to any other person, without the written consent of the Issuer.
The presentation is based on information available to the Issuer as at the date of the presentation. The information contained in this presentation has not been verified by the Issuer nor has the Issuer conducted any due diligence in relation to that information. The presentation contains selected information and does not purport to be all inclusive or to contain all information that may be relevant to the Recipient. The Recipient acknowledges that circumstances may change and this presentation may become outdated as a result. The Issuer accepts no obligation to update or correct this presentation.
This document includes forward-looking statements. When used in this document, the words such as "could," “plan," "estimate," "expect," "intend," "may," "potential," "should," and similar expressions are forward-looking statements. Although the Issuer believes that the expectations reflected in these forward-looking statements are reasonable, such statements involve risks and uncertainties, and no assurance can be given that actual results will be consistent with these forward-looking statements.
No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions and conclusions contained in this presentation. To the maximum extent permitted by law, none of the Issuer, its directors, employees or agents, advisers, nor any other person accepts any liability for any loss arising from the use of this presentation or its contents or otherwise arising in connection with it, including, without limitation, any liability arising from fault or negligence on the part of the Issuer or its directors, employees or agents. Nothing in this Presentation is a promise or representation as to the future. Statements or assumptions in this presentation as to future matters may prove to be incorrect and differences may be material. The Issuer does not make any representation or warranty as to the accuracy of such statements or assumptions.
The information in this presentation does not take into account the investment objectives, financial situation and particular needs of any Recipient. The Recipient should not make an investment decision on the basis of this presentation alone and the Recipient should conduct its own independent investigation and assessment of the content of this presentation. Nothing in this presentation constitute financial product, investment, legal, tax or other advice. Nothing in this presentation should be construed as a solicitation to buy or sell any security or to engage or refrain from engaging in any dealing in any security.
Photographs, maps, charts, diagrams and schematic drawings appearing in this presentation are owned by and have been prepared by or commissioned by the Issuer, unless otherwise stated. Maps and diagrams used in the presentation are illustrative only and may not be drawn to scale. Unless otherwise stated, all data contained in charts, graphs and tables is based on information available at the date of this presentation. By accepting this presentation the Recipient agrees to be bound by the foregoing statements.
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Executive Summary
Talga Resources Ltd (“Talga”) is a mineral explorer & developer that listed on the Australian Stock Exchange (ASX) in July 2010. The company wholly owns multiple graphite, iron ore and copper/gold projects (ex-Teck) adjacent to high quality infrastructure and low-cost power in Sweden. Work since acquiring the Swedish assets in early 2012 includes several diamond drilling programs, ground geophysics, geochemical and environmental surveys. These programs have defined several JORC mineral resources in graphite and iron ore, including the worlds highest grade graphite resource (Nunasvaara 7.6Mt @ 24.4%Cg Indicated+ Inferred). Talga aims to to develop several of the low capex graphite deposits. Capital may be derived from commercialising nearby iron resources and current Australian gold assets. Upcoming catalysts include drilling of a coarse flake graphite deposit with historicbased resource (Q1), delivery of scoping study for 24.4%Cg deposit (Q2-3), and further milestones targeting production in 2015.
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Corporate Overview
ASX Ticker/Code TLG Shares 54.4 M
Options (unlisted/employee)
2.75m @ 40c director exp 30.11.2014 3.75 M 0.5m @ 35c employee exp 21.7.2015 0.5m @ 45c employee exp 3.10.2016
Market Capitalisation $16 M (Fully diluted and @ AUD$0.27)
Cash $1.7 M (At Dec 31,2012. $=AUD)
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18%
5% Top 20 own 54%
5%
4%
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22%
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46%
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Board & Management United Overseas Service Ltd Kin Chun Wong JP Morgan Nominees Balance of Top 20 Retail & Others
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Board & Management
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Mr Neary is a Certified Practicing Accountant with more than 25 years experience in finance and commercial advisory roles. His experience includes more than ten years in audit and tax consulting with ‘Big Four’ and second tier accounting practices in Australia, and commercial experience including six years in a finance role with US based chemical giant, Dow Corning. In addition to his leadership qualities, Mr Neary brings to the Talga board a wealth of financial industry and corporate strategy experience .
Sean Neary B.Ec, M.Law (Tax), CPA Chairman & Non-Executive Director Mark Thompson MAIG, MSEG Founder & Managing Director Piers Lewis B.Comm, CA Non-Executive Director
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Mr Thompson has more than 20 years industry experience in mineral exploration and mining management. Since starting his career with production experience in both underground (Kambalda) and open-pit (Sons of Gwalia) mines he has worked throughout Australia, Africa and South America. He is a member of the Australian Institute of Geoscientists and the Society of Economic Geologists, and holds the position of Guest Professor in Mineral Exploration Technology at both the Chengdu University of Technology and the Southwest University of Science and Technology in China. In addition to his role with Talga Resources Ltd, Mr Thompson is a Non-Executive Director of ASX listed Phosphate Australia Ltd.
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Mr Lewis has more than 15 years global corporate experience and is currently Company Secretary for several ASX listed companies. In 2001 Mr Lewis qualified as a Chartered Accountant with Deloitte (Perth), and brings to the Talga board extensive and diverse financial and corporate experience from previous senior management roles with Credit Suisse (London), Mizuho International and NAB Capital.
In addition to his role with Talga Resources Ltd, Mr Lewis is a Non-Executive Director of ASX listed Stratos Resources Ltd and Zeta Petroleum PLC.
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- Advantages of Northern Sweden for Mining Projects
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Economist Magazine Feb 2013
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Low cost power from hydroelectricity, green & nuclear grid. Corporate tax rate 22% , Mineral Production tax 0.2% . Existing heavy-duty mineral production infrastructure with open access rail, road and ports and government support. Well established and quality mining province , local highly skilled workforce and support industries. Significant size and quality deposits of iron ore, copper/gold and graphite but under-explored on a world basis. Quality jurisdiction ; Sweden ranked 2nd (“Resource Stocks”) and 7th (“Fraser Institute”) for best mining environment in world.
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- Quality mineral production infrastructure in place
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What is Graphite?
Graphite, coal and diamond are crystalline forms of carbon with graphite being of hexagonal atomic structure and layered habit. Graphite has unique properties including very high melt point (>3600[o] C), very high electrical conductivity and very low expansion rate under electrical flow. Graphite is an unheralded component of modern life with a very diverse range of applications.
Graphite consists of single-atom layers called Graphene. Only recently discovered, the unique “2-D” material has powerful properties including super-high conductivity and extreme strength. Massive influx of research funds but not much market volume yet. Sweden-centred consortium received a US$1.35 billion grant in 2013 from the European Union for research and development of graphene.
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Graphite at Talga’s 100% owned Nunasvaara project in north Sweden.
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Graphene layer schematic
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Volume Comparison of Natural Graphite Market in 2011
Natural graphite market
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Natural graphite market (1.1Mt C) is similar volume to Nickel market (1.3Mt Ni) and much bigger than Lithium and Rare Earths
World market worth US$1B/yr* with main consumption in Steel & Refractories (41%), Carbon Fibres-Brushes-Batteries (21%), Automotive Parts (14%), Lubricants (14%), Other Products (10%). Natural graphite is broadly grouped on a particle size basis: < 75 micron (ultrafine flake - known as amorphous) > 75 micron flake (coarse flake) Vein (massive - known as lump)
On long term average 60% of annual consumption is for ultrafine size and 40% is coarse flake size. Lump less than 1%.
Historical graphite market growth related to diverse industrial demand 3-5% annum; New markets growing 7-10% annum. Many hundreds of graphite types sold, with generally higher enduser prices for larger particle size and higher carbon content. Sales contracts by private treaty. Industry prices surveyed and published by Industrial Minerals magazine.
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Tonnes
Annum
1,300,000
Ni
1,100,000 Cg
GRAPHITE
900,000
700,000
500,000
300,000
Mo
REE
100,000
Li
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*Source: “The World Wide Amorphous Graphite Market” Asbury Carbons, World Graphite Conference Dec 6-7 2011
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New Demand Driver
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Graphite is a significant component of Lithium ion (Li-ion) batteries as the anode. Commonly there is 10x more graphite than lithium in a Li-ion battery. Li-ion battery technology is becoming industry standard in mobile technology devices, energy storage and transport units. Global Li-ion demand forecast to grow 447% to 2015*. World lithium-ion battery anode materials market was worth approximately US$375M in 2011. Around 95% of production is of material for use in typical consumer batteries, while 5% is for electric vehicle batteries. Electric vehicle batteries can use 10-90kg graphite per unit. New, well located sources of graphite supply required, with or without high-tech scenarios.
Talga July 2012
*January 23, 2012 – IDC Energy Insights “Business Strategy: Lithium Ion Manufacturing Global EI232266 ”
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World Natural Graphite Production
Why Graphite is News?
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80% of all natural graphite supply (and 90% of world ultrafine graphite supply) is from China. Markets growing rapidly Increasing state control/mine consolidation and higher domestic consumption have resulted in Lower exports from China. Costs increasing in China under higher export tariffs, taxes and labour costs. Graphite prices have risen strongly since 2005 World consumers wanting more diverse sources of reliable, timely and high quality supply.
CHINA REST OF WORLD
Photo Mark Thompson/Talga Oct 2012
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Photo Mark Thompson/Talga Oct 2012
Graphite becoming strategic
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Plenty of potential supply, but location, quality and costs are key. Graphite declared a “Strategic Mineral” by USA, EEC.
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Why graphite is the focus for Talga
Grade is King - highest grade JORC/NI 43-101graphite resource in world (n=18). Low capex development compared to many other minerals, providing low cost and short term path to mining/cashflow. Located within several shipping days of large market (Europe imports approximately 200,000 tonnes per year of natural graphite flake/powder). Good access to USA and Asia if required. Growing market for the commodity. Suite of projects spanning ultrafine to jumbo sized flake graphite deposits. Multiple JORC resources defined, including Indicated status. Economic studies (scoping to PFS) commencing. Desktop studies indicate high returns on conservative metrics.
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Europe Natural Graphite Imports
(,000t/annum) Industrial Minerals 2012 Report Data Subset 1+2
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Talga’s Sweden Projects
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Talga moved into Graphite early 2011. After world search found excellent graphite deposits in Sweden, but highest grade deposit occurred in Teck Resources IOCG portfolio (ex-Phelps Dodge). Approached Teck and acquired option to buy company owning their Swedish assets in Feb 2012. Fieldwork and diligence over northern winter. Found the graphite properties were world-class, and the iron and copper projects were a bonus. Bought Teck’s Canadian subsidiary owning 100% of the Swedish assets (TCL Sweden Ltd ) in June 2012. Talga now owns 100% with total 3% NSR due on production.
Photo Mark Thompson/Talga Feb 2012
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Vittangi Project - Nunasvaara Graphite Deposit
Located in Vittangi greenstone belt. Distance to highway and grid power 3-5km, Rail 23km. Discovered 1898. Tested sporadically by SGU and LKAB. Since privatisation in 1992 held by ‘majors’ looking for Cu-Au. During option period Talga noted obvious open cut potential and scale; outcropping mineralisation and over 15km strike. Sampling confirmed very high grades. Along strike from Nunasvaara rock chip average 26.2% Cg (n=49) with grades up to 46.7% Cg. Historical drilling used to define initial JORC inferred graphite resource 3.6Mt @ 23%Cg. Commenced drilling to upgrade resource in size and classification in July 2012.
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Nunasvaara Graphite Deposit
Talga 2012 infill drilling confirms historical work and extends deposit size from 700m to 1200m strike.
Downhole intercepts include: 85.1m at 22.1% Cg including 33.8m at 30.5% Cg (Hole NUS12018) 59.8m at 26.4% Cg including 29.1m at 31.0% Cg (Hole NUS12012) See Appendix 1 for details of 2012 drill results.
True width ranges 8-33m (average 20m over length of resource). Initial petrography identified Nunasvaara graphite to be predominantly ultrafine flake (<75 microns, also known as amorphous) size with a minor component of coarser flake (75-300 microns). Remains open at depth and along strike. Parallel zones in footwall remain to be tested. Less than 8% of of the 15km long graphite unit drilled to date. Additional JORC exploration target[1] defined 34-51Mt @ 20-25% Cg for 0-100m depth only.
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NUNASVAARA GRAPHITE
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150m Assayed Scale 5 0 5m 16 150m
1 : 750
Costean03
0.6
0.2
0.4
2.1
0.4
1.4
4.5
13.3
158m
10
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21.9
21.3
23.8
23.3
22.6
22.7
24.9
23.4
0.1
0.1
0.1
22.6
28.1
30.8
21.1
12.7
34.6
40.5
39.3
35.2
30.9
123m
10
25
15.6
22.2
25.7
28.0
30.2
14.6
23.7
37.1
43.0
34.5
35.0
31.4
17.6
12.9
24.1
22.6
22.8
23.9
24.7
18.5
18.1
97m
10
25
15.8
23.3
26.7
28.6
24.1
24.0
28.7
30.8
40.0
29.4
16.0
13.6
19.0
25.1
NUS12006
28.2
36.5
28.6
30.0
27.3
24.5
32.90.1
0.1
0.1
18.6
23.4
19.2
19.7
20.8
0.1
0.1
0.1
14.9
24.2
62m
10
25
0.6
1.8
1.4
44294434
NUS12007
3.213.713.418.825.631.034.729.829.821.232.032.932.841.235.123.826.70.2 0.2 0.2 0.320.10.6
36m
10
25
1736050mE 7523550mN 1736100mE 1736150mE 523600mN 7
1736000mE 1736500mE
1736000mE 1736500mE
1736050mE 7523550mN 1736100mE 1736150mE7523600mN
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Nunasvaara Graphite Deposit
Total JORC resource 7.6Mt @ 24.4% Cg (mostly Indicated status) estimated Nov 2012 Resource is JORC Indicated from surface to 125m depth and Inferred 125-165m.
Exceptional resource grade, open-pit geometry, proximity to low cost power and transport infrastructure provides advantages for the production of predominant ultrafine graphite. Metallurgy underway, with results to be incorporated into scoping study for completion Q2/3. 20+ year mine life potential at initial 0.5Mtpa mining option to produce 80kt graphite product per annum.
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Nunasvaara Mineral Resource (10% Cg lower cut-off grade) Nov 2012
Tonnes Graphite Contained Graphite Classification (Mt) (%Cg) (tonnes) Indicated 5.6 24.6 1,377,600 Inferred 2.0 24.0 480,000 Total 7.6 24.4 1,857,600
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Nunasvaara Graphite Deposit - Video
>25%Cg
20 - 25%Cg
15 - 20%Cg
Robust high grade
10 - 15%Cg 18
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Raitajärvi Graphite Project
Preliminary JORC Inferred resource 0.5Mt @ 10.8%Cg (5% cut-off) delineated using historic diamond drill holes by Swedish Geol Survey. Only tested 300m strike; Resource depth 70m, open at depth and strike. Large flake graphite in surface trench
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Growth potential: 3km mapped EM conductors/trenched graphite to test. Drilling and trenches indicate much thicker zones than initially drilled zone, up to 320m wide. Predominant coarse flake graphite size with 11% jumbo. Distance to: Highway and grid power = 2km, Rail = 28km. Drilling to commence Feb 18.
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3km strike
and open
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Graphite flake size distribution (historic drill sample microscopy, n=87)
Raitajärvi Coarse Flake Graphite
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Historic work on 87 petrographic samples indicate predominantly coarse flake graphite (see appendix 2 for details) meaning 87% of graphite flake >0.1mm size.
Total of 49% of deposit is >0.2mm large flake with 11% being >0.4mm and range up to 1.2mm (“Super-Jumbo”). Preliminary metallurgical tests returned commercial graphite concentrate grades 90-93%C, and unoptimised upgrade concentrate 99.0%C
<0.1mm (ultrafine-fine flake) 0.1-0.2mm (fine - large flake) 0.2-0.4mm (large - jumbo flake) >0.4mm (jumbo flake and above)
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11%
13%
38%
38%
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Photomicrograph: Raitajärvi Graphite Flakes 100x magnification
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Exploration Projects
| Blue sky upside from multiple advanced stage fake graphite deposits defned by historic work including diamond drilling. |
Blue sky upside from multiple advanced stage fake graphite deposits defned by historic work including diamond drilling. |
Blue sky upside from multiple advanced stage fake graphite deposits defned by historic work including diamond drilling. |
Blue sky upside from multiple advanced stage fake graphite deposits defned by historic work including diamond drilling. |
Blue sky upside from multiple advanced stage fake graphite deposits defned by historic work including diamond drilling. |
|---|---|---|---|---|
| Project | Exploration Target |
Tonnage Range (Mt) |
Grade Range (%Cg) |
|
| Vittangi | Nunasvaara | 34-51 | 20-25 | |
| Mörttjärn | 10-16 | 15-20 | ||
| Maltosrova | 2-3 | 20-30 | ||
| Raitajärvi | Raitajärvi | 7-9 | 8-11 | |
| Jalkunen | Lautakoski | 39-52 | 19-27 | |
| Jalkunen | 13-26 | 13-18 | ||
| Tiankijokki | 2-3 | 17-23 | ||
| Nybrännan | 5-10 | 20-25 | ||
| Pajala | Lehtosölkä | 4-6 | 8-14 | |
| Liviovaara | 1-2 | 18-30 | ||
| Total 0-100m depth | 117-178Mt | 17-23%Cg |
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Indicative Path to Key Graphite Milestones
2012 2013 2014
Activity Nunasvaara Geophysics Enviro/Stakeholder Surveys TCL Sweden Ltd Acquisition Nunasvaara Drill Phase 1 Nunasvaara Results/Resource Nunasvaara Scoping Study Drilling Raitajärvi Phase 1 Exploitation Permitting Raitajärvi Results/Resource Raitajärvi Scoping Study Nunasvaara Drill 2/Feasibility Raitajärvi Drill 2/Prefeasibility Nunasvaara Decision to Mine Raitajärvi Decision to Mine
Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
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*Beyond decision to mine, construction start subject to overall permitting.
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World Graphite (JORC and NI 43-101) Resources
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Fraser [# ] Country Resource Grade Market Cap.
Company Deposit Location
Ranking % Graphite US$M
Talga Resources Nunasvaara Sweden 7 24.4 15
Mason Resources Lac Guéret Quebec 5 19.3 45
Focus Graphite Lac Knife Quebec 5 15.7 73
Lincoln Minerals Koppio South Australia 19 13.1 17
Lincoln Minerals Kookaburra Gully South Australia 19 11.5 17
Archer Exploration Campoona South Australia 19 10.5 16
Talga Resources Raitajärvi Sweden 7 10.8 15
Flinders Resources Kringel Sweden 7 10.5 45
Lanboo Resources Geuman South Korea n/a 10.0 9
Syrah Resources Balama West Mozambique n/a 9.8 435
Strategic Energy Resources Uley South Australia 18 8.7 15
Castle Minerals Kambale Ghana 43 7.2 9
Lamboo Resources Taehwa South Korea n/a 6.8 9
Energizer Resources Molo Madagascar 59 6.4 43
Graphite One Resources Graphite Creek Alaska 25 5.8 16
Lamboo Resources Samcheok South Korea n/a 5.0 9
Ontario Graphite Kearney Ontario 13 2.4 u/listed
Northern Graphite Bisset Creek Ontario 13 1.8 59
Notes
World total global JORC Code and/or NI 43-101 Mineral Resource estimates up to 1 Feb, 2013 . Source TMR Graphite Index and Public Company Data.
Data from Bloomberg, undiluted and approximate as of 4 Feb 2013. [# ] Fraser Institute Annual Survey of Mining Companies 2011-12
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Swedish Iron Projects
Multiple 100% owned iron deposits between operating mines and adjacent to high quality transport & power supplies.
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Skarn magnetite iron ore has potential for low cost beneficiation and high-grading. Targeting 200-300Mt JORC inventory prior to commercialisation i.e. sale, developments royalty, spinoff.
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Masugnsbyn Global Resource @ 20%Femag
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Tonnes Iron as Magnetite
Classification
(Mt) (%Femag)
Indicated
49.7 30.0
Inferred
37.5 29.6
Total
87.2 29.9
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Vittangi Project JORC Exploration Targets
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Tonnage Grade Range
Exploration Target [1]
Range (Mt) (%Femag)
Jänkkä 5-22 24-30
Kuusi Nunasvaara 14-43 22-34
Nunasjärvenmaa 7-11 31-40
7-10 30-34
Mänty Vathanvaara
Sorvivuoma 12-26 36-40
Vathanvaara 16-33 34-50
Total 0-100m depth 61-145 29- 37
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- Vittangi project - Vathanvaara iron (Cu/Au) prospect
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47m at 34.4% Fe
mag 235m at 35.9% Fe
mag
41m at 27.5% Fe
mag
124m at 43.4% Fe
mag
100m at 37.8% Fe
mag
99m at 43.2% Fe
mag
151m at 32.1% Fe
mag
121m at 34.1% Fe
mag
50m at 34.1% Fe
mag
65m at 38.1% Fe
mag
Vathanvaara Prospect JORC Exploration Target
Tonnage Grade Range
Exploration Target [1]
Range (Mt) (%Femag)
Vathanvaara
16-33 34-50
0-100m depth
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Vathanvaara iron prospect: Ground Magnetic contours, historic drill
hole locations and down hole historic Femag assays.
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Investment Highlights Highest grade graphite resource in the world (Nunasvaara 7.6Mt @ 24.4% Cg). Grade Grade provides the opportunity for low cost production and high margins. Operating in a top mining jurisdiction with world class infrastructure on the doorstep of Sweden European markets. Extremely low cost power, port agreement in place and rail options. Product Suite Multiple deposits cater for demand from ultrafine flake to coarse flake end users. Demand Strong commodity price outlook, expanding applications and significant Europe market.[Large land position with current Nunasvaara resource expected to exceed 20 year open-] Significant Scale cut mine life alone. No risk of flooding the market; focus is on grade/profitability. Simple Path to At advanced stage with resources in place and feasibility studies commencing Production Upside in Little paid for the iron assets however the deposits appear very similar to nearby producers iron/gold and could be expanded to provide leverage and opportunity to divest with gold assets. Relative to peers Talga appears undervalued particularly given the estimated capex on the Cheap graphite, low costs of production, jurisdiction and proximity to markets.
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Take a look! The world is...
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ASX:TLG
• To invest in Talga Resources • Partner on a project • Seek further information
Contact in Australia Mark Thompson - Managing Director 1st Floor, 2 Richardson St West Perth WA 6005 Tel +61 8 9481 6667 [email protected] www.talgaresources.com Contact in Sweden Talga Mining, Landschef - Bruce Cripps Luleå Sverige Mobilnummer: +46 725707877 [email protected]
Economist Magazine Feb 2013
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Appendices
Appendix 1. Nunasvaara - 2012 Drill hole Intercepts
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East North Hole From To Interval Est. True %
Hole ID Azi Dip
(RT90) (RT90) Depth (m) (m) (m) (m) Width (m) Graphite
NUS12001 1736020 7523809 63.45 90 -44 17.4 42.3 24.8 22 24.9
NUS12002 1736014 7523738 110.05 55 -61 59.0 84.6 25.7 19 21.4
NUS12003 1736039 7523687 58 58 -45 8.0 38.3 30.3 25 28.7
incl. 12.0 38.3 26.3 22 30.2
NUS12004 1736050 7523646 66.2 57 -46 7.3 47.5 40.2 33 28.2
incl. 19.0 45.0 26.0 21 30.5
NUS12005 1736056 7523600 86.95 58 -60 49.9 78.7 28.8 24 25.4
incl. 66.0 70.0 4.0 3 30.8
NUS12006 1736096 7523559 62.3 54 -45 20.0 53.0 33.0 27 19.9
incl. 32.0 36.7 4.7 4 31.9
NUS12007 1736063 7523544 157.85 52 -80 110.0 146.7 36.7 18 26.0
incl. 118.0 136.0 18.0 9 30.4
NUS12008 1736096 7523511 91.1 52 -44 48.9 73.3 24.3 20 22.5
NUS12009 1736168 7523421 72.25 50 -45 49.3 59.0 9.8 8 32.9
NUS12010 1736206 7523398 59.85 55 -46 28.0 47.5 19.5 17 25.0
incl. 38.0 47.5 9.5 8 31.2
NUS12011 1736243 7523348 69.15 55 -59 20.0 59.4 39.4 29 26.4
incl. 43.7 56.0 12.3 9 31.4
NUS12012 1736271 7523318 109.6 55 -80 38.5 98.3 59.8 24 26.4
incl. 69.2 98.3 29.1 12 31.0
NUS12013 1736309 7523273 70.65 51 -45 27.0 57.0 30.0 27 28.1
incl. 31.0 57.0 26.0 23 31.1
NUS12014 1736339 7523244 76.6 51 -69 22.5 61.2 38.7 24 17.5
NUS12015 1736325 7523225 118.95 51 -76 64.0 109.7 45.7 30 17.8
incl. 79.0 91.0 12.0 8 30.5
NUS12016 1736363 7523206 79.25 54 -56 35.4 53.0 17.6 13 25.4
NUS12017 1736288 7524006 115 324 -42 59.7 96.5 36.8 18 23.5
incl. 61.0 67.0 6.0 3 33.1
NUS12018 1736226 7523954 150.85 324 -44 45.9 131.0 85.1 33 22.1
incl. 45.9 79.7 33.8 13 30.5
NUS12019 1736132 7523908 78.85 324 -44 52.2 66.2 14.0 12 23.5
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Appendix 2. Raitajärvi - Historic graphite flake size
measurements from 87 samples observed
<0.1mm 0.1-0.2mm 0.2-0.4mm >0.4mm
Sampled Profile
(-140 mesh) (140 to 80 mesh) (80 to 40 mesh) (+40 mesh)
3605N 10% 40% 50% 0%
2905N 10% 40% 50% 0%
2310N 10% 40% 50% 0%
2080N 20% 40% 30% 10%
1880N 20% 50% 30% 0%
1800N 10% 60% 30% 0%
1775N 10% 30% 40% 20%
1750N 10% 30% 40% 20%
1725N 10% 20% 40% 30%
1705N 20% 30% 30% 20%
1660N 10% 50% 30% 10%
1630N 20% 20% 40% 20%
1600N 10% 50% 30% 10%
Weighted Ave. 13% 38% 38% 11%
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Note. Samples consisting of half core (original core diameter approximately NQ size) were prepared and assayed by ALS-Chemex with graphite and multi-elements respectively measured using the LECO and ICP techniques. Internal laboratory QAQC was completed during sample analysis and external standards used to monitor quality, with satisfactory results. Intercepts may vary across different datasets due to rounding.
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Appendices
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East North Hole Depth
Exploration Target Hole ID (RT90) (RT90) (m) Azi Dip From (m) To (m) Interval (m) % Femag
Jänkkä Jank 71001 1733109 7521322 161 112 -60 46 98 52 26.6
Kuusi Nunasvaara 72502 1736757 7527975 225 292 -60 104 160 56 26.3
Mänty Vathanvaara 71001 1731343 7530271 350 0 -60 63 163 100 30.2
Sorvivuoma 72201 1730764 7534130 165 0 -60 20 92 72 30.7
Sorvivuoma 72202 1730559 7534105 146 0 -60 45 87 42 35.4
Vathanvaara 71201B 1730729 7532465 150 150 -70 51 150 99 43.2
Vathanvaara 71202 1730896 7532577 334 150 -60 61 108 47 34.4
134 175 41 27.5
210 334 124 43.4
Vathanvaara 71204B 1730875 7532437 183 330 -60 50 150 100 37.8
Vathanvaara 71205 1731107 7532595 274 208 -60 30 265 235 35.9
Vathanvaara 71206 1731071 7532507 183 28 -70 19 170 151 32.1
Vathanvaara 71208 1730955 7532497 171 330 -80 9 130 121 34.1
Vathanvaara 71209 1731083 7532247 140 85 -60 75 140 65 38.1
Vathanvaara 71211 1731146 7532373 109 265 -60 40 90 50 34.1
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Note. Intervals selected based on min. composite width of 40m at >25% Femag and max. width of internal waste 10m.
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Appendix 4
Sweden Assets Structure and
Main JORC Resources
SWEDEN
BRANCHES
100% 100%
GRAPHITE IRON
Tonnes Graphite Tonnes Iron as Magnetite
Classification Classification
(Mt) (%Cg) (Mt) (%Femag)
Indicated 5.6 24.6 Indicated 49.7 30.0
Inferred 2.0 24.0 Inferred 37.5 29.6
Total 7.6 24.4 Total 87.2 29.9
Nunasvaara Graphite Mineral Resource @ 10% Cg low cut-off Nov 2012
Global Iron Mineral Resource @ 20%Fe
Masugnsbyn mag low cut-off Oct 2012
Tonnes Graphite
Classification
(Mt) (%Cg)
Inferred 0.5 10.8
Raitajärvi Graphite Mineral Resource @ 5% Cg low cut-off Feb 2012
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References & Qualified Persons
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1 Exploration Targets: The estimates of exploration target sizes in this announcement are in accordance with the guidelines of the JORC Code (2004) and should not be misunderstood or misconstrued as estimates of Mineral Resources. The potential quantity and quality of the exploration targets are conceptual in nature and there has been insufficient exploration to define a Mineral Resource and it is uncertain if further exploration will result in the determination of a Mineral Resource.
Competent Person’s Statement
The information in this report that relates to Exploration Results is based on information compiled and reviewed by Mr Darren Griggs and Mr Mark Thompson, who are members of the Australian Institute of Geoscientists. Mr Griggs and Mr Thompson are employees of the Company and have sufficient experience which is relevant to the activity to which is being undertaken 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 Code”). Mr Griggs and Mr Thompson consent to the inclusion in the report of the matters based on this information in the form and context in which it appears. The information in this report that relates to Resource Estimation is based on information compiled and reviewed by Mr Simon Coxhell of CoxsRocks Pty Ltd. Mr Coxhell is a consultant to the Company and a member of the Australian Institute of Mining and Metallurgy. Mr Coxhell has sufficient experience relevant to the styles of mineralisation and types of deposits which are covered in this document 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 Code”). Mr Coxhell consents to the inclusion in this report of the matters based on this information in the form and context in which it appears.
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