Doornhoek Fluorspar Project - JuniorIndaba · or results to differ materially from those described in forward -looking statements, there may be other ... • 2013 RPA complete Preliminary

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Doornhoek Fluorspar Project“The worlds largest known fluorspar exploration 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.


Fluorspar (CaF2), Primary Uses

Acid Grade 97% CaF2

High Value, High Price(Project Target)

Met Grade < 97% CaF2

• Refrigerant gasses• Aircon gasses• Solar panels• Production of

fluoropolymers (used in Teflon coatings)

• Production of nuclear fuel

• Aluminium smelting• Lithium fluoride used

in batteries(LiF) and cell phone screens

• Toothpaste• Pharmaceuticals

Flux in steel smelters


Fluorspar Price


Fluorspar, Key Dynamics• China accounts for over half of the world fluorspar production.• Chinese exports have continued to decline since 2000 as internal demand

has increased.• Potential for China to become a net importer in the future.• Long term trend has been upwards since 2000 with long-term future

outlook looking positive.• Western Europe, Canada and the USA are the largest acid-spar

consuming regions outside of China, importing more than 900,000 tonnes per year.

• Fluorspar is classified as a critical raw material by the European Commission.

• USA considers fluorspar as a strategic mineral - 100% net import reliance.• Project has potential to replace China as world leading producer of

fluorspar


Project location


Infrastructure

• 15km from nearest town (Zeerust) - Tarred road• Rail siding <15 km• 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


Project history – Why not developed sooner?

• 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


Complexity of rights have historically delayed development

Historical rights


Historical exploration on various farm subdivisions

• Drilled by Esso Minerals in 1977– 108 boreholes drilled

• Drilled by Armco Bronne – 1981– 212 boreholes drilled

• A further 102 boreholes drilled by various other companies such as:– Samancor, Anglo American, Foskor, Rand Mines, US Steel, Shell

Minerals, etc.• All exploration on different land packages

• Most borehole logs, core and historical information was acquired


Work completed since consolidation

• Drilling– 1836 diamond core boreholes drilled

• totalling approx 140,000m– 136 reverse circulation boreholes drilled

• totalling approx 4,551m– 239 auger boreholes drilled

• totalling approx 1,487m• 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• Environmental studies – remain in progress• Preliminary Economic Assessment – Roscoe Postle Associates Inc - Toronto – completed

Nov’13 – NI 43-101 compliant


GeologySize: 23,255.32 hectares

Mineralization hosted within strata-bound dolomitic rocks


Detailed Geology

• Mineralization hosted within stromatolitic stratabound dolomitic rocks• Dip 4 degrees, strike – >15km• Partial outcrop on property• 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• The three horizons outcrop at surface to a max depth of 90m• Further down-dip extensions not drilled.• Average grade 15% with high grade pockets


Doornhoek main zone thickness contoursThree 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 gradeRhenosterfontein 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


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

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


Resource classificationBenefit of single large flat lying deposit

5Km

10 Km


Economic analysis

• Resource sufficient for +100 life-of-mine (LOM)• Economic analysis calculated on 30 year mine life• Focus on thick opencast orebodies• Short payback Period• Positive NPV & IRR• Low-cost opencast operation – lower cost quartile• Size and quality make it favourable for downstream

processing and development of secondary industries


Starter pits and orebody outline – 30 yr LOM


Contained fluorspar comparison


Ore Quality

Typical Ore SampleAnalysis of main and trace elements

Element Concentration UnitCaF2 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 ppmBa 56.22 ppmCr 51.36 ppmSr 41.24 ppmLa 16.51 ppmPb 11.36 ppmU 6.50 ppmTh 1.20 ppmSn 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 impurities80% - 85% recovery acid grade confirmed


Value add through beneficiation


The Way Forward

• Application for mining right underway• Trial mining and development will commence on granting of

mining right• Actively seeking development partners• Marketing studies and offtake agreements• Economic fundamentals and deposit size support

downstream processing– The global market for chemicals from fluorine is about US$16 billion per year


Summary

• Largest contained fluorspar deposit in the world• Single large flat-lying shallow orebody• Amenable to low-cost opencast mining• Good infrastructure• Favourable metallurgy -Clean product, fetches a premium• LOM far in excess of 30 years• Favourable for the development of downstream processing facilities

A world class fluorite deposit


Typical landscape


Fresh stromatolitic ore


Weathered ore


Aerial view of historical mining by Rand Mines 1980


Thank you

Documents

Doornhoek Fluorspar Project - JuniorIndaba · or results to differ materially from those described in forward -looking statements, there may be other ... • 2013 RPA complete Preliminary