Gippsland Mineral Sands Project
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Kalbar Resources
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Kalbar was set up in 2011 by Hillgrove Resources and others to develop the
Landak Bauxite Project in Kalimantan, Indonesia.
This was sold in 2012, and Kalbar has since investigated numerous projects
around the world.
Kalbar currently has 5 Northern Territory ELA’s prospective for bauxite, and has
acquired the Gippsland Heavy Mineral Sands project from Rio Tinto.
Rio Tinto
Pegged after Kalbar
Rio Tinto
Rio Tinto
farm-in
farm-in
Rio Tinto
Pegged
after Kalbar
Kalbar
ELA 29222
Kalbar
ELA 29036
Kalbar
ELA 29035
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Gippsland HMS project
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Project covers most of the province at ~400km2, with significant exploration upside
outside the existing JORC Resource Areas, and ability to increase grade through
infill drilling.
Advanced Project: Rio Tinto drilled 12,697m from 2002-2011. Under an Option
Agreement (now expired) Metallica drilled a further 2,290m and conducted
Scoping and marketing studies
Key Advantages
Proximity to underutilised Port Anthony
bulk shipment port, and other ports.
Safe jurisdiction.
Good access to roads, gas, water and
power (5km from 66kV line).
Native title/land-owner/stake holder
agreements largely in place
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World-class resource
• Peer comparison shows a very significant world-class resource
• Significant exploration upside – only 16% of the tenement area drilled to
JORC compliant Resource status, with significant HM potential across the
full tenement area
Source: MLM.ASX
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Mineral sands mining process
• Simple sand mining, no
explosives
• Gravity separation, no
chemicals
• Small scale, 2-4 trucks per day
• Landscape
unchanged/improved
• Produces multiple products:
zircon and titanium minerals
(rutile, ilmenite, leucoxene)
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Mineral sands market
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Demand is expected to grow strongly with the growth of the Chinese consumer. Zircon
is used in ceramics (ties and porcelain), titanium is used in pigments (paint, paper, and
plastics).
Mineral sands demand is linked to GDP growth rather than Industrial Production
growth.
Market has been weak as Chinese industry modernized, meaning it could use less
zircon per tile. This is now assumed complete.
Supply is very consolidated (top three producers control more than half of supply).
Impacts prices and encourages consumers to promote independent supply
Zircon is geologically rare, premium zircon rarer. China and US rely on imports.
Ceramic knife:
harder and more
resistant than
steel.
A380 uses 77t of
titanium metal
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Gippsland project basics
Kalbar plans to only
produce HMC
Source: RJRobbins
* Aspirational Statements – lower level of confidence associated with Inferred
Mineral Resources means there is no certainty the aspirational targets will be
achieved
• Kalbar is investigating two small mines
(4.5Mtpa each) at Mossiface and
Glenaladale Main
• Mossiface and Glenaladale Main have 6-10
years life each at a rate of 25-40 ktpazircon
each*
• We can mine one and then move the plant to
the other, or mine both at once*
• Initially we will produce only HMC for bulk
export*
• There is the potential to operate a dry mill if
project economics are favourable
• Kalbar will also explore the other targets
within its tenement package, that also show
similar potential to Glenaladale and
Mossiface
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Current status
• Tenement transfers to Kalbar are imminent
• Jan-Jun 2014: Complete exploration phase
– Fly DTM
– Further drilling: infill at Glenaladale, extend Mossi,
drill targets at Ellaswood and Orbost
– Engineering study on capex and opex
• Jul-Dec 2014: Commence retention license
applications, definitive metallurgical work
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Challenges
• Completing the drill program before
exploration licenses expire
– Collate previous work
– Work plan approval
– Access agreements
• Defining a robust project in a weak market
• Resuming native title negotiations
• Building community support
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Benefits for East Gippsland
Employment
• 60-70 jobs over 12-20 years or 120-140 jobs over 6-10 years
• A full dry mill would be 400 jobs.
• Employment ideal for small-lot farmers – 4 on/4 off
• Skilled jobs: fitters, sparkies, engineers, admin
Environmental
• Rehabbed land is improved land: clay, weed removal, landscaping
Economic
• Spin-off industries – ie water trucks, catering, maintenance
• Support for community social infrastructure
• Taxes, royalties
• Cashflow into local community.
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Role for Council
• Already assisted with helping us to understand
the community and local concerns
• Ongoing support with community consultation
is very welcome
• Make development of Gippsland’s mineral
sands part of the Council’s strategic plan
• Down the track…
– Working together to identify employee pools and
training needs
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Thank you
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Drilling for mineral sands – rigs are
relatively small, drillng is shallow
down to ~60m
Removing the overburden – no
explosives required. Top soil and
overburden are stockpiled for
rehabilitation
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Concentrator: spirals and
cyclones, gravity separation only,
no chemicals means no legacy
waste
Thickener – concentrates the slime
(clay), enables the miner to
selectively enrich the soil profile
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Finished Product
~ 150ktpa Heavy
Mineral
Concentrate
Transport to
port ~ 2-4 BDoubles per day
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Case Study – Waroona, WA
• Mined by Iluka from 2006 to 2009.
• On outskirts of town.
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2004, Waroona - before
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2010, Waroona – mine ending
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2012, Waroona – rehab progressing
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