Doornhoek Fluorspar Project - Industrial Minerals

1/www.erg.kz2015 | Eurasian Resources Group

Doornhoek Fluorspar Project

SA Fluorite (Pty) Ltd andSouthern Palace (Pty) LtdNorthwest Province - South Africa


Forward Looking Statements

• This document contains forward-looking statements. These forward-looking statements are made as of the date of this document and SA Fluorite (Pty) Ltd or Southern Palace (Pty) Ltd (the “Companies”) does not intend, and does not assume any obligation, to update these forward-looking statements, except as required under applicable securities legislation.

• Forward-looking statements relate to future events or future performance and reflect Company management’s expectations or beliefs regarding future events and include, but are not limited to, statements with respect to the estimation of mineral reserves and resources, the realization of mineral reserve estimates, the timing and amount of estimated future production, costs of production, capital expenditures, success of mining operations, environmental risks, unanticipated reclamation expenses, title disputes or claims and limitations on insurance coverage.

• Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. Forward-looking statements contained herein are made as of the date hereof.

• There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward- looking statements.

• Please note that statements relating to “reserves” or “resources” are deemed to be forward-looking information as they involve the implied assessment, based on certain estimates and assumptions, that the resources and reserves described can be profitably mined in the future.


September 2015


Project location


September 2015


Project history

• Private and complex mineral rights holding until 2004

• Historically rights were subdivided together with surface

• Some mineral rights were sold to mining companies and sterilized

• Result was complex ownership with many subdivisions

• 2004 mineral rights revert to State

• 2005 SA Fluorite consolidate and secure mineral rights

– >23,000 hectares

• 2006 CAMEC secure majority interest

• 2010 ENRC acquire CAMEC

• 2013 RPA complete Preliminary Economic Assessment

– 43-101 compliant


September 2015


Complexity of rights have historically delayed development


September 2015

Historical rights


Historical exploration on various subdivisions

• Drilled by Esso Minerals in 1977

– 108 boreholes drilled - most logs and assays acquired by SA Fluorite

• Drilled by Armco Bronne – 1981

– 212 boreholes drilled – 108 logs and assays acquired by SA Fluorite

• A further 102 boreholes drilled by various other companies such as:

– Samancor, Anglo American, Foskor, Rand Mines, US Steel, Shell

Minerals, etc.

• Numerous other borehole localities located, but no logs or assays

acquired


September 2015


Infrastructure

• 15km from nearest town and rail siding

– Tarred road

• Ample water

– Dolomitic terrain and catchment reservoirs

• Power available on site

– Sub-station on adjoining property

• Mobile communication on site

• No environmental fatal flaws

• Low population density and

• No relocations required


September 2015



September 2015

Geology and siteSize: 22,255.32 hectares

Mineralization hosted within

strata-bound dolomitic rocks


Doornhoek main zone thickness contours


September 2015

Three mineralized horizons:

• Main mineralized horizon ranges from

9m to 32m in thickness

• Middle mineralized horizon ranges from

2m to 3m in thickness

• Upper mineralized horizon also 2m to

3m in thickness


Typical cross section

•This section illustrates the ability to access the high grade

Rhenosterfontein Extension area via an adit from the Tafelkop area

Initial mining will focus on near-to-

surface deposits suitable to open cast

mining

Over time, mining can transition to

underground with access via an adit

from the initial pits.

Dip 4 degrees, strike – >15km


Starter pits and orebody outline – 30 yr LOM


September 2015


Resource classificationBenefit of single large flat lying deposit


September 2015


Category Tonnes

(Mt)

Grade

(%CaF2)

Contained CaF2 (Mt)

Indicated

Main 142.0 14.0 19.88

Total Indicated 142.0 14.0 19.88

Inferred

Main 241.5 14.7 35.50

Middle 85.7 11.7 10.03

Upper 45.6 12.6 5.75

Blockspar 1.7 12.8 0.22

Total Inferred 374.5 13.7 51.50

Total 516.5 13.82 71.38


September 2015

Mineral resources – RPA – NI 43-101, June 20135% CaF2 cut-off


Ore Quality

Typical Ore Sample

Analysis of main and trace elements

Element Concentration Unit

CaF2 18.47 %

CaO 36.32 %

LOI 33.50 %

SiO2 3.93 %

Fe2O3 2.93 %

MgO 0.84 %

Al2O3 0.44 %

K2O 0.12 %

Mn 0.60 %

P2O5 0.04 %

TiO2 0.02 %

As 23.63 ppm

Ba 56.22 ppm

Cr 51.36 ppm

Sr 41.24 ppm

La 16.51 ppm

Pb 11.36 ppm

U 6.50 ppm

Th 1.20 ppm

Sn 0.41 ppm

Product After Only 7 Flotation Tests Without Regrind

Product % CaF2 % MgO % SiO2 % P2O5 % CaCO3% CaF2

Recovery

Doornhoek 97.77 0.33 0.13 0.05 1.48 83.77

Rhenosterfontein 97.27 0.39 0.09 0.05 2.44 82.99

Notes: Metallurgical test work ongoing

Clean product – no impurities

80% - 85% recovery acid grade confirmed


September 2015



September 2015

Contained fluorspar comparison


Work completed to date

• Drilling

– 1836 diamond core boreholes drilled

• totalling approx 140,000m

– 136 reverse circulation boreholes drilled


– 239 auger boreholes drilled


• Geological mapping – detailed groundwork

• Aeromagnetic survey – high resolution close spaced

• Lidar survey – covers entire area

• Permitting - maintained in good standing

• Surface rights acquisitions – strategic landholding

• Metallurgical test work – underway

• Environmental studies – ongoing monitoring

• Preliminary Economic Assessment – Roscoe Postle Associates Inc - Toronto – completed

Nov’13 – NI 43-101 compliant


September 2015


Economic analysis

• Resource sufficient for +100 life-of-mine (LOM)

• Economic analysis calculated on 30 year mine life

• Low-cost opencast operation

• Sensitive to grade, exchange rate and CaF2 price

• Weak Rand to USD exchange rate beneficial

• Transport to harbour is single largest cost

• Amenable to downstream processing and development of secondary

industries


September 2015


Proposed future developments

• Potential to update inferred resources to indicated category

– Approximately 3000m of drilling targeted to convert sufficient inferred

to indicated to cover initial 10 yrs of mining

• Continue metallurgical test work at Mintek

• Environmental Studies ongoing

• Pre-feasibility study and processing plant studies

• Marketing study

• Acquisition of additional surface rights

• Application for mining right

• Commercial initiatives around co-investors, partners and financing

solutions


September 2015


Summary

• Largest contained fluorspar deposit in the world

• Single large flat-lying shallow orebody

• Amenable to low-cost opencast mining

• Good infrastructure

• Favourable metallurgy

• LOM far in excess of 30 years

• Favourable for the development of downstream processing facilities

A world class fluorite deposit


September 2015


Typical landscape


September 2015


Diamond core drilling


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Reverse circulation drilling


September 2015


Fresh stromatolitic ore


September 2015


Weathered ore


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September 2015

Aerial view of historical mining by Rand Mines 1980


Thank you


September 2015


Contacts

Allan E Saad

Consulting Geologist

PO Box 35270, Menlo Park, 0102

South Africa

Mobile: +27828817850

e-mail: [email protected]

Edward Lauer

Head of Portfolio Optimisation

Eurasian Resources Group

Mobile: +41 79 795 00 96

e-mail: [email protected]


September 2015

Documents

Doornhoek Fluorspar Project - Industrial Minerals