For personal use only - ASX · 2013. 1. 23. · Company Overview GeneralInformation as at 18...

A D VA N C I N G E N E R G Y A N D M I N E R A L S AU S T R A L I A

U R A N I UM I N WE S T E R N AU S T R A L I A

L A R G E R E S O U R C EL O N G M I N E L I F EL O W C O S T O F P R O D U C T I O N

ASX : EMA | WWW.EAMA.COM.AU | JANUARY 2013 PAGE 1

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The presentation (‘Presentation’) is provided on the basis that none of the Energy and Minerals Australia Limited (Company) nor its respective officers, shareholders, related bodies corporate, partners, affiliates, employees, representatives and advisers make any representation or warranty (express or implied) as to the accuracy, reliability, relevance or completeness of the material contained in the Presentation and nothing contained in the Presentation is, or may be relied upon as, a promise, representation or warranty, whether as to the past or the future. The Company hereby excludes all warranties that can be excluded by law.

The Presentation may contain "forward‐looking statements". All statements other than those of historical facts included in the Presentation are forward‐looking statements including, without limitation, (i) estimates of future earnings, and the sensitivity of earnings to commodity prices; (ii) estimates of future commodity production and sales; (iii) estimates of future cash costs; (iv) estimates of future cash flows, and the sensitivity of cash flows to commodity prices; (v) estimates of future capital expenditures; and (vi) estimates of resources and/or reserves, and statements regarding future exploration results and the replacement of resources and/or reserves. Where the Company expresses or implies and expectation or belief as to future events or results, such expectation or belief is expressed in good faith and believed to have a reasonable basis. However, forward‐looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed, projected or implied by such forward‐looking statements. Such risks include, but are not limited to, commodity price volatility, currency fluctuations, increased production costs, as well as political and operational risks and governmental regulation and judicial outcomes. The Company does not undertake any obligation to release publicly any revisions to any "forward‐looking statement" to reflect events or circumstances after the date of the Presentation, or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws.

All persons should consider seeking appropriate professional advice in reviewing the Presentation and all other information with respect to the Company and evaluating the business, financial performance and operations of the Company. Neither the provision of the Presentation nor any information contained in the Presentation or subsequently communicated to any person in connection with the Presentation is, or should be taken as, constituting the giving of investment advice to any person.

Disclaimer


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Investment Highlights

100% OF A LARGE URANIUM RESOURCE 28,300 t U3O8 (~62.2m lb.) JORC Inferred Resource at 500 ppm U3O8

Large landholding in proven major uranium province; more discoveries likely

LONG MINE LIFE AND LARGE PRODUCTION Scoping Study completed on the Ambassador Project

1,200 t U3O8per year for at least 10 years

Further mine life potential from Emperor and Shogun plus potential new discoveries

Pre‐Feasibility Study (PFS) to commence in 2013

LOW PRODUCTION COST Scoping Study results:

▫ Operating costs ~US$23 per pound of U3O8

▫ Total Capital Cost ~US$260m


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Company Overview

General Information as at 18 January 2013

Shares on Issue 388 million

Share Price ~$0.06 (at 18 Jan 2013)

Market Cap ~$23.3 million

Cash ~$3.2 million (at 31 Dec 2012)

Convertible Notes $14.3 million

Options (all unlisted)62 million (10c expiry 14 Oct 2014)59.4 million (22c expiry 14 Oct 2014)Employee Options 9.8 million

Performance shares 30 million (subject to completion of PFS by 30 June 2013)

Directors, Management and Consultants

Shane McBride CEO and Executive Director

Craig Munro Non‐Executive Director

David Cornell Non‐Executive Director

Xavier Moreau General Manager –Geology and Exploration

Mike Fewster Geological and Exploration Consultant

Eugene Dombrose Metallurgical Consultant

Colin Woolard Environmental Consultant

Substantial Shareholders:

M. Fewster family 74.03%

Acorn Capital Limited 7.57%


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Location

LOCATION AND ACCESS Located 250 km ENE of Kalgoorlie

Quality road access via Tropicana Highway, with access agreement in place

Rail or road option to export through Port Adelaide

VACANT CROWN LAND No competing land uses

No native title on granted mining leases


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Mulga Rock Uranium Inferred Resource

Note: Resource estimates by Coffey Mining ‐ Ambassador Estimate as announced to the ASX on 11 June 2010, using EMA and historic data ‐ Emperor and Shogun Estimate as announced to the ASX on 13 January 2009, using historic data. Resource estimates by Energy and Minerals Australia – Princess Estimate as announced to the ASX on 4 December 2012 using EMA and historic data.Using cut combU3O8 composites (combined chemical and radiometric grades)t = metric tonnes Appropriate rounding has been applied

DepositCut‐off Grade

(ppm eU3O8)

MillionTonnes

eU3O8

Grade(ppm)

Contained Metal

(kt U3O8)

Contained Metal

(M. lbs U3O8)Author

Ambassador

Coffey Mining, 2010

Upper Lignite 200 16.7 600 10 22.0

Lower Lignite 200 3.7 320 1.2 2.6

Sandstone 100 7.2 240 1.7 3.7

Princess 200 1.9 600 1.2 2.5 EMA, 2012

Emperor 200 24.1 500 12 26.4 Coffey Mining, 2009Shogun 200 3.7 590 2.2 4.8

TOTAL 57.3 500 28.3 62.2


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Major Uranium Resource


0.0

10.0

20.0

30.0U3O8 Kt

AUSTRALIAN URANIUM PROJECTS ‐ TONNAGES OF U3O8(RESERVES, RESOURCES) BY OWNERSHIP

Olympic Dam2,330 Kt

Jabiluka/Ranger205 Kt

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Mulga Rock Deposits and Geological Units


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Ambassador Scoping Study Summary

*See ASX announcement of 4 November 2010 for full details of Scoping Study

Name Plate U3O8 Production 1,200 tonnes (2.6 million pounds) of U3O8 per year

Minimum Production Life 10 years

Modelled Uranium Recovery82% lignite ore83% sandstone; and 65% ISR

Estimated Project Capital Cost A$260 million RIP and ISR combined

Estimated Project Operating Cost US$24 per pound of U3O8 produced (net of by‐products)

Project Returns

Free Cash Flow A$750 million

Net Present Value (10) A$270 million

Internal Rate of Return 30%


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Mulga Rock Value Add Opportunities

VALUE ADD ACTIVITIES Ongoing exploration discovery potential

Investigate discoveries similar to that of Princess

Target sandstone‐hosted mineralisation under Emperor and deeper in the basin

Investigate potential for other mineralisation style on the Project

Increase Uranium recoveries (currently 82% for Open Pit and 65% for ISR)

Complete the Pre‐Feasibility Study

Include Emperor, Shogun and Princess into the Pre‐Feasibility Study


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Demonstration of Re‐Rating Potential

EV/ lb of U3O8

$0.00

$1.00

$2.00

$3.00

$4.00

$5.00

$6.00

$7.00

$8.00

$9.00

$10.00

$11.00

EMA (ScopingStudy)

Toro (BFS) Extract ACQ2012

Kintyre ACQ2007

MilleniumACQ 2012

UraniumOneACQ 2013

Mantra ACQ2011

Hathor ACQ2011

BFS Re‐rate

Acquisition Value Re‐rate

EMA at Scoping Study Potential Value at BFS Recent Uranium Transactions


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Immediate Focus

RESOURCE UPGRADE Initial base metal resource estimates during 2013

PRE ‐FEASIBIL ITY Commencement of Pre‐Feasibility Study

Inclusion of Princess, Shogun and Emperor deposits in Pre‐Feasibility Study

EXPLORATION Continued targeted and cost‐effective exploration

Exploration data review of the greater Mulga Rock area

Infill drilling at Ambassador and Princess

PERMITTING Ongoing capture of baseline environmental data continues


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Conclusions

EMA – SET FOR A RE‐RATING Large Resource (28,300 tonnes Uranium, 62.2m lbs)

Large Annual Production (> 1,000 tonnes Uranium)

Low Operating Cost ( US$23 per pound)

Low CAPEX (A$260 million)

Long Mine Life (minimum 10 years)

Significant Landholding ( > 900 sq kilometres)

All assets owned 100%

* Parameters and financials as per Scoping Study


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Competent Person’s Statement

The information in this presentation that relates to the Princess Exploration Results, Princess Mineral Resource Estimate (U3O8), Resource Database andBulk Density are based on information compiled by Xavier Moreau and Michael Fewster, who are Members of the Australian Institute of Geoscientists. MrMoreau is a full time employee of the Company. Mr Fewster is a consultant to the Company and potential beneficiary of the Busani Family Trust, asubstantial shareholder of the Company. Messrs’ Moreau and Fewster have sufficient experience relevant to the style of mineralisation and type of depositunder consideration and to the activity which is being undertaken to qualify as Competent Persons as defined in the 2004 Edition of the JORC ‘AustralasianCode for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Messrs’ Moreau and Fewster consent to the inclusion in theannouncement of the matters based on his information in the form and context in which it appears.

The information in this presentation that relates to the 2009 (Emperor & Shogun) and 2010 (Ambassador) Mineral Resource Estimates (U3O8) is based oninformation compiled by Neil Inwood and Mr Macfarlane, who are members of the AUSIMM. Mr Inwood and Mr Macfarlane were employed by Coffey Miningas consultants to the Company at the time of the resource estimates and public release of results. As Mr Inwood and Mr Macfarlane are no longer employedby Coffey Mining, Coffey mining has reviewed this announcement and consent to the inclusion, form and context of the relevant information herein asderived from the original resource reports for which Mr Inwood’s Mr Macfarlane’s consents have previously been given. Mr Inwood and Mr Macfarlane havesufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which is being undertaken to qualify asa Competent Person as defined in the 2004 Edition of the JORC ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and OreReserves’.


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Contact Information

Shane McBrideCEO and Executive Director

Energy and Minerals Australia Limited

Telephone: +61 (8) 9389 2700Email: [email protected]: www.eama.com.auASX: EMA

Street AddressGround Floor25 Richardson StreetWest Perth WA 6005

Postal AddressPO Box 23West Perth WA 6872


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Appendices


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Conceptual Mining Methods


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Process Route for Lignite‐Hosted Mineralisation

The favoured process route is:

agitated‐tank, atmospheric acid leach of as‐mined material, then

resin‐in pulp (‘RIP’) extraction


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For personal use only - ASX · 2013. 1. 23. · Company Overview GeneralInformation as at 18...

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