egm presentation to shareholders 2014

Download EGM PRESENTATION TO SHAREHOLDERS 2014

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  • 1. This presentation has taken information from the Study Report on the Amazon Bay Ironsands Project compiled for Foyson Resources Ltd by Engenium Pty Ltd (Engenium) as an independent consultant. It is based in part upon information furnished by Foyson Resources Ltd, specialist consultants, contract service operators, vendors of equipment and Engeniums engineering and project personnel. The information is intended to be utilised by Foyson Resources Ltd and its contents have not been audited by Engenium or any other third party. Engenium also point out that the utilisation of the term ore throughout the presentation is intended to be used in a descriptive manner only and the term does not indicate any inferred or intended compliance with the definition of ore in the JORC Code. This presentation may also include technical, economic or other assumptions made by Engenium during the execution of the works which may ultimately not be attained. Engenium makes no representation or any warranty as to the accuracy of those assumptions nor any results or estimates that may have resulted there from. The information in this presentation that relates to Exploration Results is based on information compiled by a consultant to the Company, Mr Chris Young, who is a Member of the Australasian Institute of Mining & Metallurgy and a Member of the Australian Institute of Geoscientists. Mr Young has over 40 years experience in the industry and has more than 5 years experience which is relevant to the style of mineralisation being reported on, to qualify as a Competent Person, as defined in the Australasian Code of Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Young consents to the inclusion of this information in this presentation. Disclaimers
  • 2. Key Achievements in 2013 Major Investor, TVI Pacific Inc. completes refinancing and commits to Balance Tranche 2 funding; TVI earns 10% interest in Amazon Bay Project; Completion of Engenium Scoping Study on Amazon Bay Project; Presentation of Scoping Study to MRA and senior PNG government officials; Completion of Smelting Study for Amazon Bay Concentrate Offtake; Completion of Amazon Bay Sampling Programs; Positive Wardens hearing on EL 1396; Grant of EL 2149 Amazon Bay North and EL 2281 Maruta; Renewal of EL 1623 Sandbank Bay; Discussions continued with parties interested in investment and offtake.
  • 3. TVI Investment Summary Exclusivity Fees of $300,000; Tranche 1 completed August 2012 raising $884,000; Tranche 2 partially completed April 2013 raising $100,000; Balance Tranche 2 partially completed December 2013 raising $315,000; Remaining Balance Tranche 2 to raise $585,000; Exploration funding Amazon Bay $2,000,000; Exploration funding New Britain $590,018; Convertible loan $600,000; TOTAL TVI INVESTMENT $5,374,018
  • 4. Amazon Bay Project Location
  • 5. Amazon Bay Tenement Areas EL1396 Amazon Bay renewal lodged December 2013, positive Wardens hearing held in January 2014 with 500 locals in attendance; EL1623 Sandbank Bay renewal granted October 2013; EL 2149 Amazon Bay North new grant received October 2013; EL 2281 Maruta new grant received February 2014 following positive Wardens hearing in late October 2013; ELA 1643 Amazon Bay East Wardens hearing scheduled for May 2014.
  • 6. Amazon Bay Tenement Areas Area (Sq Km) Application N/A FOYSON RESOURCES AMAZON BAY PROJECT TENEMENT STATUS N/AApplication1,217Fe, Ti,VELA 2280Oceana Status Original Term Granted 02/02/2016 Under renewal Current Expiry Date 19/12/2013 Amazon North Fe, Ti,V 590EL2149 Project CommodityTitle Amazon Bay Fe, Ti, VEL 1396 Poi South ELA 1643 Fe, Ti,V 514 Renewal Granted 3/11/2014 Original Term Granted 25/09/2015 Sandbank Bay Fe, Ti,VEL 1623 193 192 Maruta EL 2281 Fe, Ti,V 652
  • 7. Due to the delay in funding from TVI, the comprehensive Threadfin sampling program was not able to be completed; Two smaller scaled sampling programs were undertaken in conjunction with required Wardens hearings to minimise the cost of the programs; The purpose of the programs was to obtain samples for marketing testwork, engage the local landowners and foster positive community support. 2013 Sampling Program
  • 8. Positive results were received from the first program which sampled the areas around Deba and Margarita. The second sample program was finalised in late January 2014 and analysis is not yet available. 2013 Sampling Program Raw Analysis Report- Margarida & Deba Serial No. Laboratory Sample No. Sample No. Result % TFe mFe SiO2 V2O5 TiO2 Na2O P S 13 YK2013-4432 PNG-9 18.84 10.24 36.56 0.24 7.84 1.71 0.030 0.018 14 YK2013-4433 PNG-10-1 14.78 4.05 40.78 0.16 5.28 1.89 0.032 0.014 15 YK2013-4434 PNG-10-2 32.23 9.42 21.16 0.53 14.79 0.97 0.026 0.011 16 YK2013-4435 PNG-10-3 30.38 8.41 23.17 0.51 14.18 1.13 0.039 0.014
  • 9. What is the Product? Amazon Bay is a mineral exploration target of vanadiferous titano-magnetite sands spanning over 200 km of the southern PNG coastline; The concentrate product will be similar to BlueScope Steels iron sand operation on the North Island of New Zealand and Amexs Mba Delta iron sand project in Fiji; BlueScope has been in production for over 25 years; Amex has progressed its Project into an implementation phase; There is increasing demand for iron sands for use in steel making.
  • 10. Project Resource The Exploration Target has been assessed as between 500million tonnes and 750 million tonnes in the Threadfin area with a mass yield of 8-12% heavy mineral concentrate. The Threadfin area comprises an area less than 10% of the granted tenements; The potential quantity and grade is conceptual in nature, that there has been insufficient exploration to estimate a Mineral Resource and that it is uncertain if further exploration will result in the estimation of a Mineral Resource; Shallow bulk samples have been taken from this area and at Barracouta near the village of Margarida and Deba; The metallurgical work used in the Scoping Study and the Smelting Study was based on an average of the results obtained; The initial focus of the resource assessment will now occur in the Margarida area, due to the results obtained, and the PNG Governments support to contribute to infrastructure development; The information in this presentation that relates to Exploration Results and targets is based on information compiled by a consultant to the Company, Mr Chris Young, who is a Member of the Australasian Institute of Mining & Metallurgy and a Member of the Australian Institute of Geoscientists. Mr Young has over 40 years experience in the industry and has more than 5 years experience which is relevant to the style of mineralisation being reported on, to qualify as a Competent Person, as defined in the Australasian Code of Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Young consents to the inclusion of this information in this presentation.
  • 11. Metallurgical Test Work Feed Type Type of Test Performed Mass Yield % Fe Grade % TiO2 % V2O5 % HMC 100 45.4 20.4 0.57 -425 m with 45.4% Fe Pin Mill attrition followed by DTR primary magnetic separation @ 380 Gauss 66.1 47.2 19.18 0.77 Secondary DTR separation on primary non-mag @1700 Gauss 23.4 41.3 29.89 0.20 Primary magnetics from previous stage Electrostatic separation at 25 kV & ambient temperature 38.6 48.7 23.02 0.69 Electrostatic separation at 25 kV & 85 C temperature 40.4 47.7 22.69 0.68 Reserve Silica Flotation Flotation using primary magnetics from previous steps 96.4 47.7 22.5 NA Natural Sands Beneficiation Uses 2 stage dry magnetic separation, electrostatics, cyclone classification, fine spirals, milling and reserve silica flotation 45.6 47.3 20 NA -425 m HMC Screen @ 150 m and grind to +150 m, staged fine dry magnetic separation 45.6 49.2 19.1 0.92 Screen @ 150 m and grind to +150 m 75 m, staged fine wet magnetic separation 40.3 52.3 17.3 1.19
  • 12. The mass yield of the HMC from the combined Threadfin / Barracouta composite is calculated at 25.7%. The mass yield of the magnetic concentrate in the test work is reported at 40.3%. The product of the subsequent mass yields provides the overall mass yield; The mass yield of 10.4% at Amazon Bay compares favourably with other iron sands projects under consideration around the world. Mass Yield