Cobre Montana NL
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POWERING A CLEAN ENERGY FUTURE
Presentation to the Annual General Meeting
24 November, 2014
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DISCLAIMER
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Cobre Montana NL
This presentation is for information purposes only. Neither this presentation nor the information contained in it constitutes an offer, invitation, solicitation or recommendation in relation to the purchase
or sale of shares in any jurisdiction.
This presentation may not be distributed in any jurisdiction except in accordance with the legal requirements applicable in such jurisdiction. Recipients should inform themselves of the restrictions that
apply in their own jurisdiction. A failure to do so may result in a violation of securities laws in such jurisdiction.
This presentation does not constitute financial product advice and has been prepared without taking into account the recipients investment objectives, financial circumstances or particular needs and the
opinions and recommendations in this presentation are not intended to represent recommendations to particular persons. Recipients should seek professional advice when deciding if an investment is
appropriate. All securities transactions involve risks which include, amongst others, the risk of adverse or unanticipated market, financial or political developments.
Certain statements contained in this presentation, including information as to the future financial or operating performance of Cobre Montana NL (“Cobre Montana” or “the Company”) and its projects,
are forward-looking statements. Such forward-looking statements are necessarily based upon a number of estimates and assumptions that, whilst considered reasonable by Cobre Montana, are
inherently subject to significant technical, business, economic, competitive, political and social uncertainties and contingencies; involve known and unknown risks and uncertainties that could cause
actual events or results to differ materially from estimated or anticipated events or results reflected in such forward-looking statements; and may include, among other things, statements regarding
targets, estimates and assumptions in respect of potash and phosphate production and prices, operating costs and results, capital expenditures, ore reserves and mineral resources and anticipated
grades and recovery rates, and are or may be based on assumptions and estimates related to future technical, economic, market, political, social and other conditions.
Cobre Montana disclaims any intent or obligation to update publicly any forward-looking statements, whether as a result of new information, future events or results or otherwise. The words “believe”,
“expect”, “anticipate”, “indicate”, “contemplate”, “target”, “plan”, “intends”, “continue”, “budget”, “estimate”, “may”, “will”, “schedule” and other similar expressions identify forward-looking
statements. All forward-looking statements made in this presentation are qualified by the foregoing cautionary statements. Investors are cautioned that forward looking statements are not guarantees
of future performance and accordingly investors are cautioned not to put undue reliance on forward-looking statements due to the inherent uncertainty therein.
Many known and unknown factors could cause actual events or results to differ materially from estimated or anticipated events or results reflected in such forward-looking statements. Such factors
include, but are not limited to: competition; mineral prices; ability to meet additional funding requirements; exploration, development and operating risks; uninsurable risks; uncertainties inherent in ore
reserve and resource estimates; dependence on third party smelting facilities; factors associated with foreign operations and related regulatory risks; environmental regulation and liability; currency
risks; effects of inflation on results of operations; factors relating to title to properties; native title and aboriginal heritage issues; dependence on key personnel; and share price volatility and also include
unanticipated and unusual events, many of which are beyond the Company’s ability to control or predict.
COMPETENT PERSON’S STATEMENT
The information in this report that relates to reporting of Exploration Results based on and fairly represents information and supporting documentation prepared by Adrian Griffin, who is a member of
the Australasian Institute of Mining and Metallurgy. Mr Griffin is a shareholder in, and Managing Director of Cobre Montana and has sufficient experience relevant to the style of mineralisation and type
of deposit under consideration. He is qualified as a Competent Person as defined in the 2012 edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore
Reserves”. Mr Griffin consents to the inclusion in this report of the matters based on information in the form and context in which it appears.
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A POSITION OF STRENGTH
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Capital structure
 84M Ordinary Shares
 52M Partly Paid Shares
 15M Unlisted Options
 Market cap. $4.6M
Strong partnerships
 Perth based Strategic Metallurgy P/L providing technical support
and access to proprietary technology
 Focus Minerals and Tungsten Mining providing access to areas of
known mineralization
 Negotiating further positions on a global basis
Exclusive licensing arrangements
 Strong lithium exploration and development prospects
Cobre Montana NL holds an option over the exclusive right to use proprietary lithium
extraction technology in Western Australia, and any two other worldwide nominated
projects. This may extend to 26 years.
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LITHIUM – THE METAL OF THE FUTURE
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WHAT IS LITHIUM?
Lithium (chemical symbol Li) is ‘the great enabler’ of the 21st century. Lithium is the lightest
solid element and is used in the manufacture of Computers, Communication devices and
Consumer electronics (3C). Its other uses include medical applications, colours in fireworks,
ceramics, high-temperature glass, lubricants, air purification, fuel cells, catalysts, nuclear
technology and batteries. In fact, lithium is often described as the most versatile metal on
Earth.
WHAT IS UNIQUE ABOUT COBRE MONTANA?
Cobre Montana is one of the few companies globally providing investors with a clear focus
on lithium.
Access to a NEW PROCESSING TECHNOLOGY creates the opportunity to process lithium
minerals not previously considered to be ore.
Exclusive licensing arrangements will create opportunities unavailable to competitors.
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PROGRESS TO DATE
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Cobre Montana NL
Option to acquire Ravensthorpe lithium pegmatites
Coolgardie Rare Metals Venture with FML
Work commences at CRMV
Lithium extraction technical assistance agreement
Float results from Lepidolite Hill
High-grade concentrates from Lepidolite Hill
Lithium pegmatites identified at Lake Seabrook
Battery grade Li carbonate produced by CXB
Quarterly report
Seabrook Rare Metals Venture with TGN
25 year exclusive licence
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THE PROJECTS
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The projects are all located in Western Australia, close to developed public infrastructure,
including road, rail, power and mining services.
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THE PROJECTS
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Coolgardie Rare Metals Venture (80% CXB, 20% FML)
CRMV is an initiative of Cobre and Focus Minerals based on areas of high lithium pegmatites,
15km south of Coolgardie, WA. Prior mining at Lepidolite Hill has left about 400,000t of
lepidolite-rich material in waste dumps. Proof-of-concept processing has produced batterygrade lithium carbonate, under the aegis of an alliance with Strategic Metallurgy. Extraction
techniques developed for Lepidolite Hill will be applied to other lepidolite deposits.
Ravensthorpe (Cocanarup) Lithium Pegmatite Project (Option to acquire 100%)
Lithium and rare metals (Ta, Nb, Rb, Cs, Ga, Be etc) occur within the Cocanarup pegmatites,
which are related to the nearby Mt Cattlin deposits. Cobre has rights to a large proportion
of the Cocanarup pegmatite field. Pegmatites have been previously mined at Cocanarup for
beryl and at Mt Cattlin for spodumene (lithium).
Seabrook Rare Metals Venture (80% CXB, 20% TGN)
The SRMV (Cobre and Tungsten Mining NL) is based on lithium pegmatites located 60km
NE of Southern Cross, WA, which are regionally associated with tungsten skarns and contain
lepidolite, beryl and tourmaline.
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ACHIEVEMENT – PROOF OF CONCEPT
Cobre Montana NL
LEPIDOLITE-TO-LITHIUM PROOF-OF-CONCEPT
99.6% Battery Grade lithium carbonate from Lepidolite Hill
with potassium sulphate by-product (ASX: 27 Oct 2014)
The lepidolite lithium extraction process is
protected by patent applications.
Commercial success will be underwritten by
exclusive processing rights to all lepidolite
occurrences in Western Australia.
Two additional floating licences, for application
anywhere else in the world will provide CXB with
a global advantage.
CXB has projects under review, around the world
to capitalize on the advantage provided by its
exclusive licensing arrangements.
Cobre Montana has taken lepidolite-to-lithium from concept to reality in just 3 months.
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LEVERAGE FROM LEPIDOLITE
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COBRE MONTANA HAS:
• access to the only known, effective lepidolite processing technology
• exclusive licensing rights to use that Li extraction technology
• technical assistance agreement to optimize lithium extraction from lepidolite
COBRE MONTANA HAS IDENTIFIED LEPIDOLITE:
• mineralization in Western Australia
• in waste dumps globally, and
• in current tailings discharge of operating mines
COBRE MONTANA’S PLAN IS TO CREATE VALUE
FROM ITS STRATEGIC PARTERSHIPS BY:
• gaining first-mover advantage under the aegis of its licences
• developing a resource base to sustain lepidolite-to-lithium carbonate production
• creating value from waste streams with high lithium content.
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THE MARKET – CONSUMPTION & USES
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THE MARKET - GREEN, PORTABLE POWER
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Aluminium
6%
32%
Other
10%
Metallurgical powders
17%
22%
11%
Chemicals and
pharmaceuticals
Lubricants
Lithium demand is increasing at 11%pa, driven largely by
the battery market, which is expanding at 20%pa. Likely to
accelerate, with anticipated production of Electric Vehicles
expanding from 160,000 units currently to over 40,000,000
units by 2050.
Batteries
Lithium consumption by application
Glass and ceramics
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THE MARKET - LITHIUM SOURCES
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HARD-ROCK DEPOSITS – about 50% of global supply
• Spodumene and petalite – Li/Al silicates
 High-grade
 Found in Australia, Canada, Zimbabwe, and Portugal
 Low capital, high operating cost
BRINE PRODUCERS – about 50% of global supply
• Concentration from soluble salts
 Low-grade
 Found in Chile, Argentina and China
 High capital, low operating cost
CLAY PRODUCERS – mines in the process of development
• Hectorite from volcanic sources
 Low-grade
 Economics yet to be vindicated
LEPIDOLITE – the forgotten ore
• Low energy, high by-product credit
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THE OVERLOOKED RESOURCE
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SIGNIFICANT Li SITTING IN MINE DUMPS
• Poor recoveries from calcine flowsheets
• Difficult to achieve product specification
• Separated and discarded as waste
HYDROMETALLURGICAL PROCESSING PARADIGM
• New lithium extraction technology
• Atmospheric process
 Impurity control
 By-product credits
 Very low energy requirement
ACCESS TO OVERLOOKED RESOURCES
• Primary lepidolite deposits
• Historic mine waste
• Current waste and by-product streams
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THE MARKET - COMPETITION
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1.6%
11.3%
3.1%
8.5%
Argentina
Australia
36.8%
Brazil
Chile
38.2%
China
Portugal
0.4%
Zimbabwe
Lithium production by country (source USGS 2013)
HARD-ROCK PRODUCERS
Talison, Greenbushes WA
Sociedade Mineira de Pegmatite, Portugal
Bikita Minerals (Pvt) Ltd, Zimbabwe
Various producers in China
RB Energy Inc, Quebec
Hard rock lithium producers faced fierce competition in
HARD-ROCK DEVELOPERS
the 1980s as brine production in South America came on
Reed Resources, Mt Marion, WA
stream with low operating costs. However, Greenbushes
still fulfils over 30% of global requirements and 75% of
Pilbara Minerals, Pilgangoora, WA
Chinese demand from pegmatite mining in the SW of WA.
Altura, Wodgina, WA
Greenbushes is the world’s highest-grade lithium mine.
Advances in
processing technology, high demand and rising lithium carbonate prices have led to a resurgence in exploration and the
commissioning of one new hard rock-operation in Canada. The ultimate drivers are cost and energy efficiency, which,
with valuable by-product credits, will drive down the operating costs of lithium carbonate produced from lepidolite, with
the potential to compete directly with the brine producers.
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THE STRATEGY
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SUMMARY
To leverage an exclusive technology and deliver Battery Grade Lithium Carbonate to market
based on completed proof-of-concept testing.
TO EXTRACT Li AND RARE METALS FROM Li MICA
• Mineral input – lepidolite
 A common mineral
 Readily available
 Not presently used as Li chemical feed
 Significant K2SO4 (potassium sulphate) credits
 Potential to extract Rb (rubidium) Cs (caesium) Sr
(strontium) Ga (gallium)
LOW COST OF PRODUCTION-COMPETITIVE EDGE
• Energy-efficient
• Low operating costs
 Cheaper than competing hard-rock deposits
 Comparable with brine producers
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THE COBRE MONTANA ADVANTAGE
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SIGNIFICANT VALUE IN THE ALLIANCE WITH STRATEGIC METALLURGY
• Independently verified purity of Li carbonate from lepidolite
• Ongoing technical support and process optimization
• First mover advantage
• Licence exclusivity
DIRECT ACCESS TO MINERALIZATION IN THREE AREAS
• Coolgardie Rare Metals Venture with Focus Minerals Limited
• Seabrook Rare Metals Venture with Tungsten Mining Limited
• Option to acquire Ravensthorpe
ASSESSING OPPORTUNITIES ON A GLOBAL SCALE
DEMAND DRIVEN BY GROWTH
• 3C technology expanding into developing countries
• Rapid uptake of electric vehicles
COBRE MONTANA HAS EXCLUSIVE TECHNOLOGY RIGHTS WHICH
WILL CREATE OPPORTUNITIES PREVIOUSLY UNRECOGNIZED
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CONTACT
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Cobre Montana NL
Cobre Montana NL
ASX:CXB
Adrian Griffin - 0418 927 658
[email protected]
www.cobremontana.com.au
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