hastings investors presentation
TRANSCRIPT
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PDAC Conference TorontoA Major New Source of Rare Metals
and Heavy Rare Earths
March 2011
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Management Location HighlightsDirectorsProspectivity
Summary Management Location HighlightsDirectorsProspectivity
Summary
ASX Code: HAS
Shares on Issue: 58,500,000
Performance Shares: 12,500,000 (on satisfaction of performance hurdles)
Performance Options: 15,000,000 (on satisfaction of performance hurdles)
Options on Issue: 37,500,000 (strike of 25 cents and 40 cents)
Market Capitalisation: $23,400,000 (at 40 cents)
Fully Diluted: $47,400,000 (at 40 cents)
Top 20 Shareholders: 62%
Cash Circa: $6,000,000
Fully Diluted Cash: $17,625,000
100% owner of Hastings Rare Metals and Heavy Rare Earths Project
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Title 2Summary Directors Management Location Highlights
David Nolan (Non-Executive Chairman)
Mr Nolan is a corporate lawyer with over 13 years experience advising on corporate acquisitions, capitalraisings and financing for mining companies. Mr Nolan is a partner in the Sydney corporate advisorypractice of Mills Oakley Lawyers and was previously a senior adviser at the London Stock Exchange. MrNolan holds a Bachelor of Laws (Hons) and Bachelor of Arts from Bond University in Queensland.
Mathew Walker (Executive Director)
Mr Walker has extensive experience in private and public company management and in the provision ofcorporate advice. Specialising in the natural resources sector, Mr Walker has served as executive
Chairman or Managing Director for public companies with resource interests in North America, SouthAmerica, Africa, Eastern Europe, Australia and Asia. He currently serves as Chairman of Tango PetroleumLimited. He is also a Director of boutique investment banking firm Alto Capital and Chairman of corporateadvisory firm Cicero Corporate Services. Mr Walker is a member of the Australian Institute of CompanyDirectors and holds a Bachelor of Business from the University of Technology, Sydney.
James Robinson (Non-Executive Director and Company Secretary)
Mr Robinson ained extensive ca ital markets ex erience durin 10 ears with one of Western Australias
leading corporate advisory and stockbroking firms. He currently serves as a Director of Blue River MiningLimited, Company Secretary of Tango Petroleum Limited and is also a Director of corporate advisory firmCicero Corporate Services. He is a member of the Australian Institute of Company Directors and holds aBachelor of Economics from the University of Western Australia.
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ManagementDirectorsSummary Location Highlights
Andy Border (Exploration Manager)
Mr Border is a geologist with over 30 years experience in the exploration and mining industry covering awide range of commodities and projects from grass-roots exploration through to development andmining. In the last 20 years he has held roles including Exploration Manager, Chief Operating Officer andManaging Director of a number of ASX-listed companies with projects in Australia and overseas.
Simon Coxhell (Consultant Geologist)
Mr Coxhell is a geologist with 25 years of diverse experience encompassing all aspects of the resourcesector including exploration, development and mining. He has specialist skills in computer mining andexploration skills and extensive operational experience in the Kimberley where he has evaluated and
, , , , .was formerly Executive Director of Navigator Resources and Venus Metals Corporation.
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LocationDirectorsSummary Management Highlights
The deposit contains multiple rareelements:
The Hastings Rare Metals deposit lies 18km to the
south-east of Halls Creek in the Kimberley Region ofWestern Australia
HASTINGS RAREMETALS LOCATION
PLAN
Niobium Tantalum Zirconium
Yttrium Hafnium Gallium Erbium Ytterbium Dysprosium
The deposit contains an extremely high
proportion of the higher value heavyrare earth oxides at 76%.
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HighlightsDirectorsSummary Management Location
JORC compliant resource of over 22M tonnes comprising 8.8M tonnes in theindicated category and 13.2M tonnes in the inferred category.
Heavy rare metal grades of 0.79% ZrO2, 0.31% Nb2O5, 0.023% Ta2O5 and heavyrare ear gra es o . 2 3 .
Historical analysis did not systematically assay for other rare metals or rare earths.
Previous drill hole data and studies suggest potential exists to host significantquantities of other rare elements including hafnium, gallium, erbium, ytterbiumand dysprosium.
The deposit is readily accessible, from surface and open along strike and down dip.
In-situ value of approximately $8B with signification potential to increase.
An extensive drilling program is scheduled for June Quarter 2011.
A revised resource calculation expected in the September Quarter 2011.
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Supply-DemandProspectivityRare Metals
Zirconium occurs redominantl as the silicate mineral zircon ZrO Used mostl in ceramics foundr
ProjectSummary
Price TrendRare Earths
.
applications, opacifiers and refractories. Main growth areas are advanced ceramics and auto-exhaust
catalysts. Significant use in nuclear energy industry in fuel rods and reactor vessel construction.
Niobium and tantalum commonly occur in the associated minerals columbite (Fe,Mn)Nb2O5 and tantalite(Fe,Mn)Ta2O5. Main source of niobium however is pyrochlore NaCaNb2O6F. Niobium is an important alloying
- - .coating of glass for computer screens.
Tantalum occurs in wide range of minerals but any tantalum-bearing concentrate is commonly termed
4kg of niobium used in the manufacture of a m id-sized vehicle wou ld save 100kg of steel,and translates into fuel savings of half a litre per 100km
. . , ,alloys and furnace parts to computer hard drive discs.
1. Niobium Demand, Price Stays High, Despite SteelWeakness, Mining Weekly.com, 7 November 2008
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Title 2Rare Metals
Rare Earths Supply-Demand Price Trend
ProjectSummary
Rare earths are a collection of seventeen chemical elements in the periodic table,specifically the fifteen lanthanoids plus scandium and yttrium.
Rare Earth Elements (REE) are considered either Light Rare Earth Elements (LREE),w c nc u e e emen s rom an anum o samar um, an eavy are ar emen s(HREE), which include elements from europium to lutetium plus yttrium and scandium.
Light Rare Earths are more common than Heavy Rare Earths.
w e range o - ear ng m nera s are o po en a econom c s gn cance.
Diverse range of highly specialised applications including catalysts (35%), glass andceramics (30%) and in metallurgical applications (30%).
ncreas ng eman n au omo e po u on ca a ys s, permanen magne s anrechargeable batteries.
Increasing use of many REE such as dysprosium in a number of green energyproducts.
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Supply-Demand
Rare Metals Rare Earths Price Trend
ProjectSummary
Rare Earth Oxide Supply & Demand Forecasts
Demand grow th needs to be met by supply outside of China...
ource: , os
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Price Trend
Rare Metals Rare Earths Supply-Demand
ProjectSummary
Recent Price Trends
Rare EarthsCurrent price
US$/ kg16-Nov-10 16-Feb-10
3mth %change
12mth %change
Light RareEarths
Lanthanum 73.0 49.0 5.5 49 1227
Cerium 71.0 49.0 4.2 45 1611
Praseodymium 114.5 76.5 25.8 50 345
Neodymium 124.5 73.5 26.8 69 365Samarium 61.0 34.5 4.5 77 1256
Heavy RareEarths
Europium 650.0 650.0 480 3 35
Gadolinium 73.5 44.5 7.7 65 861
Dysprosium 410.0 295.0 132.5 39 209
Terbium 630.0 605.0 350.0 4 80
Yttrium 92.5 50.5 10.3 83.0 802.0
USD FOB ex-China kg, 99.999% purity; prices are bid-offer mid points. Source: Metal Pages, 16 Feb 2011
Critical supply shortages in HREE continues to drive prices...
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Project
SummaryRare Metals Rare Earths Supply-Demand Price Trend
JORC Category Tonnes Ta2O5 ppm Nb2O5 ppm Y2O3 ppm ZrO2- ppm
Indicated 8,834,000 215 3,068 922 7,597
Inferred 13,250,000 239 3,200 1,000 8,100
Totals 22,084,000 230 3,120 997 7,900
Table 1: Current JORC Resource Estimates for Hastings (Sept. 2010)
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Deposit remains open along strike and down dip
Limited assay of other rare metals and rare earths but historical records indicate, ,
erbium.
76% of total rare earth oxides are the higher value heavy rare earth oxides
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LongitudinalSection
ExplorationCross SectionProspectivityMineralisation
Trend
Hastings ValueComposition
Mineralisation Trend on Existing and P roposed Holes
The favourable volcaniclastic unithosting REE mineralisation can betraced over a strike length of 3.5kmwith ample outcrop. The unit variesin width to 35m and has a vertical
or steep easterly dip.
Minerals hosting rare metals atHastings include bertrandite,bastnaesite, calcian-bastnaesite,parisite and synchisite. Potassiummica is the host for gallium which is
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found within the lattice structure.The potential ore minerals are founddispersed throughout the quartz,potassium mica and albite host.
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Title 2Mineralisation
TrendCross Section
Hastings ValueComposition
ExplorationLongitudinal
Section
Hastings P roject Cross Section
,and diamond drilling hasestablished continuity of theunit to a vertical depth of250m. Weathering is limited,w ox a on o serve on ydown to depths of 20-30m
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Mineralisation
TrendCross Section
Hastings ValueComposition
ExplorationLongitudinal
Section
Drilling has confirmed ore body is open at depth (resource estimate calculated at depth of70m however drilling shows mineralisation down to 200m)
Hastings Project Longitudinal Section
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Hastings ValueComposition
MineralisationTrend
Cross Section ExplorationLongitudinal
Section
Monazite Apatite Loparite Bastnaesite Ion Adsorption Clays
HastingsDeposit
Mt Weld,Australia
Guangdong,China
Nangan,Guangdong,
China
Nolan's Bore,Australia
Lovozersky,Russia
Baiyun Obo,Mongolia,
China
Moutain Pass,California,
USA
Guangdong,China
Zunwu,Jiangxi
Province,China
Longnan,Jiangxi
Province,China
Lanthanum 5.8 25.5 24 23 20.4 28 25 33.2 30.4 43.4 1.82
LIGHT
REOCerium 16.8 46.74 42.7 42.7 48.32 57.5 50 49.1 1.9 2.4 0.4Praseodymium 0.1 6.32 4.1 4.1 5.91 3.8 5.1 4.3 6.6 9 0.7Neodymium 0.4 18.5 17 17 21.06 8.8 16.7 12 24.4 31.7 3Samarium 0.3 2.27 3 3 2.37 0.96 1.2 0.8 5.2 3.9 2.8
Europium 0.0 0.44 0.1 0.1 0.37 0.13 0.2 0.12 0.7 0.5 0.1
Gadolinium 0.4 Trace 2 2 0.95 0.21 0.7 0.17 4.8 3 6.9Terbium 0.1 0.07 0.7 0.7 0.08 0.07 Trace Trace 0.6 Trace 1.3
HEAVY
REO
Dyspros um 10.4 0.12 0.8 0.8 0.34 0.09 Trace Trace 3.6 Trace 6.7Holmium 0.2 Trace Trace 0.12 0.05 0.03 Trace Trace Trace Trace 1.6Erbium 7.7 0.03 0.3 0.3 0.09 0.07 Trace Trace 1.8 Trace 4.9Thulium 0.1 Trace Trace 0.01 Trace Trace Trace Trace Trace 0.7Ytterbium 5.0 0.06 2.7 2.4 0.05 0.29 Trace Trace Trace 0.3 2.5Lutetium 0.1 Trace 0.14 0.01 0.05 Trace Trace Trace 0.1 0.4Yttrium 52.4 0.35 2.6 2.4 1.48 Trace 0.2 2.6 20 8 65
Total 100 100 100 99 100 100 100 100 100 100 99
Hast ing s has th e h igh est HREO as a percent age o f TREO of t he k now n dep os i ts ou t s ide o f Ch ina
Source: US Geological Survey and Company Reports
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Exploration
MineralisationTrend
Cross SectionHastings ValueComposition
LongitudinalSection
Objective - To increase the resource in three key areas with respect to: Size Confidence level and
Exploration Program for 2011
In-situ value; and Commence feasibility studies for its potential economic exploitation.
Strategy - This will be achieved by: A limited number of key historical diamond and RC drill holes will be twinned
Pattern ri ing t e current In icate Resource oc , an Extending drilling to a +200m depth in the current Inferred Resource block.
Key Activities A 55 hole diamond and RC drilling program to commence Q2 2011 totaling 10,000 metres
Metallurgical test work commencing Q2 2011
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Contact DetailsProspectivitySummary
Hastings Summary and Investment P roposition
JORC resource of over 22Mt from surface which remains open along strike anddown dip.
Potential for significant upgrade to the value of the deposit by the systematic assayof rare metals hafnium and gallium and the heavy rare earths dysprosium,ytterbium and erbium, which are all represented in historical data but do not form
part of the JORC resource estimation. e epos s rea y access e an on y ms rom e ma or owns p o a s
Creek.
Near term exploration activity in Q2 2011 and revised resource calculation Q32011.
.
Strong cash position of circa $6M.
Current market capitalisation of $23M provides excellent leverage relevant toindustry peers.
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Title 2Summary Contact Details Contact Details
ASX Code:HAS
Phone: +61 8 6460 4960
PO Box 281
WEST PERTH WA 6872
Suite 9, 1200 Hay StreetWEST PERTH WA 6005
Facsimile: +61 8 9324 3045Website: www.hastingsraremetals.comEmail: [email protected]