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TASMAN. TASMAN. METALS LIMITED. Strategic metals, strategic locations. Mark Saxon – President & CEO [email protected]. Corporate Disclaimer. - PowerPoint PPT Presentation
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MAY 2013
1
TASMANTASMANMETALS LIMITED
Strategic metals, strategic locations
Mark Saxon – President & [email protected]
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MAY 2013
2Corporate Disclaimer
Some of the statements contained in the following material may be "forward-looking statements." All statements, other than statements of historical fact, that address activities, events or developments that Tasman Metals Ltd. (“Tasman”) believes, expects or anticipates will or may occur in the future are forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "seek," "anticipate," "believe," "plan," "estimate," "expect," and "intend" and statements that an event or result "may," "will," "can," "should," "could," or "might" occur or be achieved and other similar expressions. These forward-looking statements reflect the current expectations or beliefs of Tasman based on information currently available to Tasman.
Forward-looking statements are subject to a number of risks and uncertainties that may cause the actual results of Tasman to differ materially from those discussed in the forward-looking statements, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on Tasman. Factors that could cause actual results or events to differ materially from current expectations include, among other things, failure to successfully complete intended financings, capital and other costs varying significantly from estimates, production rates varying from estimates, changes in world metal markets, changes in equity markets, changes in laws or regulations, uncertainties relating to the availability and costs of financing needed in the future, equipment failure, unexpected geological conditions, imprecision in resource estimates, success of future development initiatives, competition, operating performance of facilities, environmental and safety risks, delays in obtaining or failure to obtain necessary permits and approvals from government authorities, and other development and operating risks. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, Tasman disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise.
Cautionary Note to U.S. Investors Concerning Mineral Resources and Reserves: In this presentation, the definitions of “mineral resources” are those used by the Canadian securities administrators and conform to the definitions utilized by CIM in the “CIM Standards on Mineral Resources and Reserves – Definitions and Guidelines” adopted on August 20, 2000 and amended December 11, 2005.
The standards employed in estimating the mineral resources referenced in this presentation differ significantly from the requirements of the United States Securities and Exchange Commission (the “SEC”) and the resource information reported may not be comparable to similar information reported by United States companies. The term “resources” does not equate to “reserves” and normally may not be included in documents filed with the SEC. “Resources” are sometimes referred to as “mineralization” or “mineral deposits.” While the terms “mineral resource”, “measured mineral resource”, “indicated mineral resource” and “inferred mineral resource” are recognized and required by Canadian regulations, they are not defined terms under standards in the United States and normally are not permitted to be used in reports and registration statements filed with the SEC. The terms “mineral reserve,” “proven mineral reserve” and “probable mineral reserve” are Canadian mining terms as defined in accordance with NI 43-101 and the CIM - CIM Definition Standards on Mineral Resources and Mineral Reserves, adopted by the CIM Council, as may be amended from time to time by the CIM. These definitions differ from the definitions in the SEC’s Industry Guide 7 (“SEC Industry Guide 7”) under the Securities Act of 1933. As such, information contained in this presentation concerning descriptions of mineralization and resources under Canadian standards may not be comparable to similar information made public by United States companies in SEC filings.
The estimation of measured, indicated and inferred mineral resources involves greater uncertainty as to their existence and economic feasibility than the estimation of proven and probable reserves. U.S. investors are cautioned (i) not to assume that measured or indicated resources will be converted into reserves and (ii) not to assume that estimates of inferred mineral resources exist, are economically minable, or will be upgraded into measured or indicated mineral resources. It cannot be assumed that the Company will identify any viable mineral resources on its properties or that any mineral reserves, if any, can be recovered profitably, if at all.
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MAY 2013
3Tasman’s Corporate Vision
“To provide the foundation to a long lived and sustainable European rare earth element
supply chain”
REE’s provide the ideal material properties for modern society …..…
Efficiency enhancementWeight reductionAccess to E - mobilityEmission reductionMiniaturisationDurabilityPerformance
..….. a European supply chain will be sustainable, secure and have a low environmental impact, so REE’s
can be engineered for generations to come.
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MAY 2013
4REE’s – What Are They ?
RE - Oxide REO Price ($/kg)
Light REO
Lanthanum (La) $ 8
Cerium (Ce) $ 8
Praseodymium
(Pr) $ 75
Neodymium (Nd) $ 70
Samarium (Sm)$ 20
Heavy
REO
Europium (Eu) $ 1200
Gadolinium (Gd) $ 49
Terbium (Tb) $ 1100
Dysprosium (Dy) $ 600
Holmium (Ho) N.A.
Erbium (Er) N.A.
Thulium (Tm) N.A.
Ytterbium (Yb) N.A.
Lutetium (Lu) N.A.
Yttrium (Y) $ 28
Sou
rce:
Met
als
Pag
es, M
ay 2
013
Rare Earth Elements (REE’s) are 15 metals that occur naturally in the environment ;
They have unique chemical characteristics that place them in demand for green technology, energy efficiency and medical applications ;
97% of REE supply is currently from Chinese mines ;
REE’s are often classed as HEAVY or LIGHT based on chemical characteristics ;
HEAVY and LIGHT REE’s have markedly different prices due to availability, cost of production and demand ;
REE’s do not occur in nature in same ratio they are consumed. There is no one single market for all REE’s ;
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5Determining What is Critical
In 2011, US Department of Energy researched supply risks for metals essential to clean energy;
The HEAVY REE’s Dy, Tb, Eu and Y, and the LIGHT REE Nd were determined to be at serious supply risk for next 15 years ;
Dy, Tb, Eu, Y and Nd are described as the Critical Rare Earths due to restricted supply and low substitution potential.
These metals may become unavailable to western industry, regardless of price ;
The critical nature of HEAVY REE supply has arisen due to strong consumption growth and a generation of under investment in mineral exploration ;
The “barrier to entry” for REE miners/suppliers is significant due to processing and market risks ;
Impo
rtanc
e to
cle
an e
nerg
yIm
porta
nce
to c
lean
ene
rgy
Supply risk
Supply risk
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MAY 2013
6REE’s – Consumption By Market
Magnets Phosphors Alloys Catalysts Polishing Ceramics Other Glass0
5
10
15
20
25
30
35
40Source: IMCOA, November 2012: 2016 Forecast Consumption by Sector
2012 Total REO Consumption Estimate – 115,000 tonnes
REO market Value US$11 – 15 billion 2016 Total REO Consumption Forecast - 162,000
tonnes66% Chinese consumption ForecastREO market Value US$15 – 25 billion
HIGH STRENGTH PERMANENT MAGNETS (37%)• Most significant by both volume and value• 10 % annual growth forecast
LIGHT EMITTING PHOSPHORS (31%)• High value product in smaller volume• 7 % annual growth forecast
Nd, Pr, Dy, Gd, Tb
Y, Ce, La, Eu, Tb
%
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MAY 2013
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CeLaPrNdSmYDyTb
REE’s – Consumption By Metal
Light REO = 88%
Heavy REO = 12%Marke
t Share
Price ($/kg
)
L REO
La 25% $ 8 Metallurgy, catalysts, glass, phosphors, ceramics, polishing
Ce 39% $ 8 Polishing, metallurgy, catalysts, glass, phosphors, ceramics
Pr 5% $ 75 Magnets, phosphors, ceramics, metallurgy, polishing
Nd 18% $ 70 Magnets, ceramics, metallurgy, glass, catalysts, phosphors
Sm 1.5% $ 20 Magnets
HREO
Tb 0.25% $ 1100 Phosphors, magnets
Dy 1.5% $ 600 Magnets
Y 8% $ 28 Phosphors, ceramics, metallurgy
Source: Shaw and Constantinides, November 2012
La Ce Pr Nd Sm Eu Gd Tb Dy Y Other TOTAL
Magnets -- -- 14.6 77.0 1.9 -- 1.5 0.3 4.8 -- -- 100%
Phosphors 8.5 11.0 -- -- -- 4.9 1.8 4.6 -- 69.2 -- 100%
Battery Alloys 50.0 33.4 3.3 10.0 -- -- -- -- -- -- -- 100%
Auto Catalysts 5.0 90.0 2.0 3.0 -- -- -- -- -- -- -- 100%
FC Catalysts 90.0 10.0 -- -- -- -- -- -- -- -- -- 100%
Metallurgy 26.0 52.0 5.5 16.5 -- -- -- -- -- -- -- 100%
Polishing Powders 31.5 65.0 3.5 -- -- -- -- -- -- -- -- 100%
Ceramics 17.0 12.0 12.0 12.0 -- -- -- -- -- 53.0 -- 100%
Glass 24.0 66.0 1.0 3.0 -- -- -- -- -- 2.0 4.0 100%
Others 19.0 39.0 15.0 15.0 2.0 -- 1.0 -- -- 19.0 -- 100%
% of Global REE Market 24.5 39 5.0 18 1.5 0.25 1 0.25 1.5 8 1.0
Source: Lynas Corp, 2011; Roskill, 2012
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MAY 2013
8REE Price History 2010 - 2013
Long Term $2 - 8 Long Term $60 - 100
Long Term $20 - 50 Long Term $600 - 800
“REE prices will stabilize, reflecting a “new REE paradigm”. This new paradigm shall be based on industrially acceptable pricing, and incorporate the environmental costs of the Chinese REE industry, whilst placing value on a secure REE supply
chain.”
Heavy REE pricing is stabilizing at 100 – 300% above 2010 prices. No Western world supply anticipated before 2016 ;
Light REE pricing is stabilizing at lower levels, due in part to stable supply from Lynas Corp (11,000 tpa) and Molycorp (19,050 tpa) ;
The price peak/scare of 2011 was short-lived, when consumers relied upon stockpiles. Some permanent Ce and La market was lost due to a greater investment in REE recycling in the glass polishing industries ;
Source: Metals Pages, 2013
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9
Power
Long term low cost supply has lead to the
Jack Lifton, REE Industry Commentator : “Norra Karr is the most important deposit
Application of REE Permanent Magnets
in the western world for permanent magnets”
intensive use of REE magnets
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10
US$8.6 b
US$17.0 b
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 20200
20000
40000
60000
80000
100000
120000
140000
TbSmGdDyPrNdNon-REE Metal
REE Permanent Magnet Market
REE Permanent Magnet Market Growth – Historical and Forecast
2012 REE permanent magnet production was some 70,000 tonnes, consuming approximately 22,500 tonnes of REO ;
96% of the market is NdFeB magnets, with 0 – 9% Dy content depending on application ;
3% of the market is SmCo magnets, for high temperature applications;
1% of the market is SmFeN magnets, for bonded applications ;
REE permanent magnet growth is forecast at 7 - 10% per year ;
Ferric magnet market remains 10 x larger by weight than REE magnet market, but less than half the value ;
Source: US Magnet Materials Association, Roskill, Bernecki et al 2010, IMCOA
Tonn
es R
EE M
agne
ts
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11Magnet Use Growing 10% Per Year
34.4
13.6
10.9
7.2
6.2
5.6
4.1
3.4
14.6
Motors & Generators
Hard Drives
Transport
Energy Production
Transducers
Auto Drives, Clutches, Brakes
Relays, Sensors
Domestic Appliances
Other
REE Permanent magnets “made their market”. Commercialization and price stability has lead to rapid uptake ;
Principal traditional markets include: hard drives and CD/DVD drives, automotive applications, electric bicycles, wind turbines, MRI machines ;
Chinese production and consumption remain critical due to strong involvement in raw material supply and magnet technology ;
Near tear market drivers dominated by existing consumer technologies. +2016 market drivers are dominated by e-mobility and hybrid vehicle uptake, and further adoption of wind energy ;
Stable pricing of rare earth elements is considered key to the greater penetration of permanent magnets. ;
Access to dysprosium is seen a critical to many emerging magnet applications. technologies. Dysprosium allows REE permanent magnets to operate at higher temperatures without de-magnetization ;
Hybrid vehicles and wind turbines are large consumers of Dy-bearing magnets with between 9% and 4% average Dy. Wind turbine installation has grown at 36% in the past decade, with 60% of turbines now permanent magnet bearing.
2012 consumption of Dy-oxide approximated 1,500 tonnes. Wind turbine forecasts alone require an additional 850 tonnes of Dy-oxide pa by 2020
Tasman’s Norra Karr project can supply 20% of the current Dy demand for more than 50 years ;
Source: Roskill,, 2012
Magnet Demand - Tonnes
Magnet Bearing Units Installed - Units
Source: JLMag REE Co, November 2012
Wind Turbine Adoption
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12 Confused discussion over Heavy vs Light vs Critical REE’s ; Small market with significant stockpiling ; Opaque pricing causing seemingly volatile pricing ; Chinese “overhang”, what shall they do next…? ; Not commodities, not interchangeable ; Higher technology risk than the rest of mining industry ; No Western “working model” of processing ; Supply can appear 5 x in excess of demand ; Fear of another REE “bubble” ; Lack of discrimination of “real” projects. Comments surrounding “Rare Earths aren't
Rare” couldn’t be more wrong ; Market strength lies with the consumers therefore revenue not equally distributed
along the supply chain ; Market is highly asymmetric – small emerging Western companies vs Chinese State
Enterprises ; Little recognition beyond China/Japan/Korea that “Supply Chain Security” has both a
value and a cost ; Over estimates of the role recycling can play and its true energy cost ; Major projects are owned by junior mining companies with no cash flow – creates a
significant financing hurdle to proceed ;
REE – A Complex Landscape
“When the critical metals are considered, non-Chinese industry does not have secure access to the materials it needs, regardless of price”
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13Stage Comment
1 Discovery and Drill Out Many REE-bearing prospects and occurrences are known world wide Few proceed past surface prospecting and warrant the investment of drilling
2 Understand the Deposit Mineralogy
More than 200 minerals are known to host REE’s. Commercial extraction is impossible for most REE’s in only one or two minerals is preferred, as the subsequent process flow sheet is simplified
3 Resource Calculation Once the discovery is confirmed, extensive drilling is required for NI43-101 or JORC standard resource calculation. Independent professional review is essential
4 Preliminary Economic Assessment (+/- 30%)
Once resource calculation and bench scale metallurgical characterisation is complete, a PEA may be completed for the project
The PEA tests the project viability and justifies future investment decisions The opacity of REE pricing ensures a large variation in financial models
5 Pilot Plant Metallurgy Metallurgical testing must increase in scale, to refine flowsheet and produce “near final” product
6 Pre-Feasibility Study Once the resource has been upgraded to Measured + Indicated and metallurgical testing scaled up, a PFS may be completed on the project
The PFS captures more robust capital and operating cost information, and provides a more robust view of project economics
Technical, engineering, legal, social and environmental impacts need to be considered
7 Strategic Partnership & Off-Take
Industrial and financial partners need to receive REE-product to determine value Partnerships and off take agreements are key to the success of the project
8 Bankable Feasibility Study A BFS is required to justify the final investment decision, and must be based on full technical, legal and commercial data to a high standard
BFA shall incorporate metallurgical optimisation data, and reserve-stage deposit information
9 Permit Application A wealth of data is required. Environmental and social impact statements must show adverse impact is small and can be managed, and the project is of benefit to the jurisdiction
10 Financing Debt and equity financing of the project must be sought, often in conjunction with industrial partners
11 Engineering, Procurement, Construction
As REE projects are sophisticated, skilled EPC consultants are essential to ensure the project is successful Construction is envisaged to take 1 – 3 years
12 First Production Production scales up over time as the project is commissioned
Steps to REE Production
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MAY 2013
14Tasman – A Unique Setting
Light REE Resource Project
Heavy REE Resource Project
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MAY 2013
15Significant REE Projects - Resources
Mt Weld
Mnt Pass
Bear Lodge
Zandsko-
psdriftStrange Lake
Nechala-lacho Kipawa Dubbo Bokan Lofdal Norra
Karr
Owner ASX:LYC NYSE:MCP TSX.V:RES TSX:FRO TSX:QRM TSX:AVL TSX.V:MAT ASX:ALK TSX.V:UCU TSX:NRE TSX.V:TSM
Country AUST USA USA S.A. CANADA CANADA CANADA AUST USA NAMIBIA SWEDEN
Market Capitalization $1.3 B $0.98 B $79 M $46 M $31 M $105 M $20 M $210 M $38 M $18 M $52 M
Resource (T) 14.95 31.55 51.71 42.48 20.02 125.72 24.45 73.20 3.67 1.65 58.10
TREO % 9.73 6.57 2.75 2.23 1.44 1.43 0.42 0.89 0.75 0.59 0.59
HREO % 2.8 % 0.5 % 3.4 % 7.2 % 37.8 % 13.2 % 33.3 % 22.5 % 39.0 % 85.2 % 52.0 %
Contained TREO (M tonnes) 1454 2072 1423 948 288 1795 103 651 28 10 343
Contained HREO (M tonnes) 40.7 10.3 48.3 68.2 108.8 236.9 34.2 146.4 10.9 8.5 178.3
Basket Price $/kg @ April13 $37 $24 $40 $41 $65 $58 $62 $44 $61 $104 $68
Rare Earth OxideREO
Price In-situ REO grade shown as %
LREO
Lanthanum $ 8 2.32 2.18 0.80 0.70 0.13 0.20 0.06 0.17 0.08 0.02 0.06
Cerium $ 8 4.63 3.22 1.31 1.22 0.27 0.46 0.13 0.33 0.22 0.04 0.14
Praseodymium $ 75 0.05 0.28 0.15 0.13 0.03 0.06 0.02 0.04 0.03 0.00 0.02
Neodymium $ 70 1.76 0.79 0.54 0.44 0.11 0.23 0.06 0.13 0.11 0.02 0.07
Samarium $ 20 0.24 0.05 0.08 0.06 0.02 0.04 0.01 0.02 0.03 0.01 0.02
HREO
Europium $ 1200 0.05 0.01 0.02 0.02 0.00 0.00 0.00 0.00 0.00 0.01 0.00
Gadolinium $ 49 0.11 0.01 0.04 0.04 0.02 0.03 0.01 0.02 0.03 0.03 0.02
Terbium $ 1100 0.01 0.00 0.00 0.00 0.01 0.00 0.00 0.00 0.01 0.01 0.00
Dysprosium $ 600 0.02 0.00 0.01 0.02 0.03 0.02 0.02 0.02 0.03 0.05 0.03
Holmium N.A. 0.00 0.00 0.01 0.00 0.01 0.00 0.00 0.00 0.01 0.01 0.01
Erbium N.A. 0.01 0.00 0.00 0.01 0.02 0.01 0.01 0.01 0.02 0.03 0.02
Thulium N.A. 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Ytterbium N.A. 0.01 0.00 0.00 0.01 0.02 0.01 0.01 0.01 0.01 0.03 0.02
Lutetium N.A. 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Yttrium $ 28 0.07 0.01 0.03 0.11 0.23 0.08 0.09 0.14 0.19 0.34 0.21
“Norra Karr is one of the largest and highest grade heavy REE projects know in the world today. It will be a globally significant supplier of Dy, Y, Tb, Nd and Lu for generations”
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MAY 2013
16Mt
WeldMnt Pass
Bear Lodge
Zandsko-
psdriftStrange Lake
Nechala-lacho Kipawa Dubbo Bokan Lofdal Norra
Karr
Owner ASX:LYC NYSE:MCP TSX.V:RES TSX:FRO TSX:QRM TSX:AVL TSX.V:MAT ASX:ALK TSX.V:UCU TSX:NRE TSX.V:TSM
Country AUST USA USA S.A. CANADA CANADA CANADA AUST USA NAMIBIA SWEDEN
Market Capitalization $1.3 B $0.98 B $79 M $46 M $31 M $105 M $20 M $210 M $38 M $18 M $52 M
Est Capital Cost $900 M $900 M $450 $350 $1200 M $1200 M $300 M $1000 M $300 M n.a. $300 M
Est Operating Cost $11 $11* $10 $13 $11 $17 n.a. $11
Current Stage OPERATE OPERATE DFS PFS PFS DFS PFS DFS PEA PEA PFS
Anticipated Production 2013 2013 2017 2016 2017 2017 2016 2015 2016 n.a. 2016
Rare Earth OxideREO
Price Tonnes of planned REO production per annum
LREO
Lanthanum $ 8 2,622 6,310 2,775 5,083 1,733 1,896 767 937 182 n.a. 668
Cerium $ 8 5,234 9,320 4,544 8,833 3,600 4,371 1,643 1,818 554 n.a. 1,503
Praseodymium $ 75 565 810 520 901 400 544 219 220 69 n.a. 191
Neodymium $ 70 1,839 2,286 1,873 3,154 1,467 2,125 767 716 267 n.a. 755
Samarium $ 20 271 145 277 462 267 209 110 110 70 n.a. 199
HREO
Europium $ 1200 56 26 69 118 0 25 0 0 7 n.a. 25
Gadolinium $ 49 124 43 139 288 267 172 110 110 708 n.a. 211
Terbium $ 1100 11 3 0 34 133 23 0 0 12 n.a. 42
Dysprosium $ 600 22 10 35 154 400 100 219 110 80 n.a. 283
Other N.A. 294 162 341 612 933 310 329 110 78 n.a. 652
Yttrium $ 28 79 29 104 814 3,067 433 1,205 771 434 n.a. 2,307
TREO Total Output 11,000 19,000 10,400 20,000 12,000 10,000 5,257 4,908 2,464 n.a. 6.637
HREO Total Output 588 274 688 2,020 4,800 1,064 1,862 911 1,321 n.a. 3,520
Tasman’s Norra Karr project has one of the lowest capital costs to production due to extensive existing infrastructure ;
Tasman’s high proportion of heavy REO means a modest TREO production rate allows major Dy, Y, Tb output ;
Norra Karr’s unusually low contribution of the low value metals La, Ce, Sm means a high basket price, and no significant exposure to the metals that are moving over supply in 2013/14;
Significant REE Projects - Production
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Mt Weld Mnt Pass Bear Lodge Zandskopsdrift Strange Lake Nechalalacho Kipawa Dubbo Bokan Norra Karr0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Dy, Tb, Eu, Y and Nd Other REEla ce sm
Significant REE Projects – Weight vs Revenue
Mt Weld Mnt Pass Bear Lodge Zandskopdr. Strange Lk Nechalacho Kipawa Dubbo Bokan Norra Karr
Production Contribution vs Revenue Contribution for Major Projects
Critical REE’s (Dy, Tb, Eu, Y, Nd)
Mid-Value REE’s (Pr, Gd)
Low-Value REE’s (La, Ce, Sm)
Relative Production Weight for Each Project Shown as Left Bar. Relative
Revenue Contribution for Each Project Shown as Right Bar
At 50%, Tasman’s Norra Karr project has the highest proportion of the Critical REE’s (Dy, Tb, Eu, Nd) of all advanced REE projects ;
Tasman’s Norra Karr project has the highest revenue exposure to the higher value Critical REE’s of all advanced REE projects ;
Norra Karr has little revenue exposure to the REE’s forecast to fall into oversupply in 2013/14 (Ce, La);
Source: TMR, 2013
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18Sweden – A Mining Country
Very well developed mining industry. In the EU27, Sweden is #1 for Gold, Lead, Iron; #2 Zinc, Silver; #3 for Copper; Aitik mines 45 M tonnes pa ;
Highly efficient industry therefore low mining costs, plus very supportive of green-tech industry ;
Low corporate tax rates at25%, mining royalty only 0.25%, streamlined Mining Act ;
Consistent top 4 ranking in Fraser Institute “Investment Climate” Survey (2nd in 2012) ;
World renouned development and manufacture of mining and mineral processing equipment ;
Strong focus on optimal use of resources and resource sustainability ;
Skilled people widely distributed – no need for “ex-pat” workforce ;
Scandinavia is the “home of REE’s” as most were discovered there, including some on Tasman’s projects ;
Per Teodor Cleve
Carl Gustaf Mosander
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MAY 2013
19Excellent Market Access
100 km
NORRA KARR
0.25 km
Intrusion outline
MAJOR MINE
MAJOR PORT
CHEMICAL PLANT
OLSERUM
Sweden is a net exporter of sulphuric acid, one of Tasman’s key process requirements. Sulphuric acid is transported regularly on the train line that passes Norra Karr
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MAY 2013
20Infrastructure Equals Low Cap-Ex
Major road close to Norra Karr project
Forest roads transect the mineralized intrusion
Easy all year round drilling and site development
“Volvo geology”, no helicopters, barges, planes
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MAY 2013
21Norra Kärr 6800 TPA REO Scenario
Open pit, 0.8 LOM strip ratio
1.5 million tpa mining = > 40 year mine life to 200m depth
Crush + Grind
Magnetic Sep
Sulphuric Acid Digestion of REE
MineralsRoom Temp + Pressure
Solid / Liquid Filtration
PurificationPrecipitation :
15000 T Zr Carbonate6800 T REE Carbonate
25% of MassAegerine product
50% of Mass Feldspar/Nepheline product
Transport by existing rail or road to separation facility
Neutralise with
limestone
Flotation
Effluent Treatment and Disposal Reverse
osmosis
TAILING MANAGEMENT FACILITY
MINING BENEFICIATION
HYDROMETALLURGY
90%
ben
efic
iatio
n re
cove
ry
15% of MassNeutralised product
90% hydromet recovery
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MAY 2013
22PEA Financial Highlights
$1,464 million before-tax value (NPV at 10% discount rate) determined by independent consultants;
49.6% before-tax Internal Rate of Return (IRR);
Before-tax payback period of 2.6 years;
$5.3 Billion in revenue over the first 20 years and $10.9 billion over the 40 year life of mine;
Initial capital expenditures of $290 million (includes contingency of $66.8 million or 30%)
Average annual operating expenses of $74.3 million or $10.93 per kg of mixed TREO concentrate output;
Conservative basket price of US$51 per kg versus current China FOB basket price of US$78.24
“Tasman’s Norra Karr project is very financially robust, due to the high value heavy REE output, ambient temperature/pressure processing and the excellent existing transport and
skills networks that Sweden can offer”
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MAY 2013
23
Nd17%
Tb12%
Dy43%
Y14%
Other14%
REE Revenue Contribution
Metal Production and RevenueAnnual Metal
Output
% of Revenue
Contribution
Financial Model Price
$/kg
La Oxide 668 Tonnes 1.96 % US$10
Ce Oxide 1503 Tonnes 2.21 % US$5
Pr Oxide 191 Tonnes 4.21 % US$75
Nd Oxide 755 Tonnes 16.64 % US$75
Sm Oxide 199 Tonnes 0.53 % US$9
Eu Oxide 25 Tonnes 3.63 % US$500
Gd Oxide 211 Tonnes 1.86 % US$30
Tb Oxide 42 Tonnes 12.05 % US$975
Dy Oxide 283 Tonnes 43.36% US$520
Ho Oxide 56 Tonnes 0 % US$ 0
Er Oxide 180 Tonnes 0 % US$ 0
Tm Oxide 25 Tonnes 0 % US$ 0
Yb Oxide 167 Tonnes 0 % US$ 0
Lu Oxide 25 Tonnes 0 % US$ 0
Y Oxide 2,307 Tonnes 13.56 % US$20
Zr Oxide 14,230 Tonnes 14.1 % $3.71
Nd13%
Tb10%
Dy35%
Y11%
Other12%
Zr20%
Total Revenue Contribution
Mag
net
Met
al
Ligh
ting
Met
al
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24Norra Kärr : Very Low Radioactivity
Bec
quer
el p
er G
ram
Tasman
Meta
ls
Tanbree
z
Tantal
us
Peak R
esource
s
Rare Ele
ment R
esource
s
Montero M
ining
Avalon Rare
Meta
ls
Geomeg
a Reso
urces
Matamec
MolyCorp
Ucore Rare
Meta
ls
Frontier
Rare Ea
rths
Hastings
Rare M
etals
Navigat
or Reso
urces
Hudson Resource
s
Quest Rare
Minera
ls
Great W
estern
Group
Rare Ea
rth M
etals
Lynas
Corp
Alkane R
esource
s
Greenlan
d Minera
ls
Pele M
ountain
Arafura
Resource
s
Stans E
nergy
Great W
estern
Group
0.000
1.000
2.000
3.000
4.000
5.000
6.000
7.000
8.000
9.000
10.000
IAEA “Usually Unnecessary to Regulate” = < 1 Bq/gSwedish Fertilizer = 0.7 Bq/gAlum Shale = >1.6 Bq/gNorra Karr = 0.2 Bq/g
“Tasman’s Norra Karr project is unusually low in radioactivity, well below even the level of agricultural fertilizer sold in Sweden. The rock is clean enough to be considered for domestic
building materials. By-product markets are being considered.”
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25Norra Kärr : Project Timing
2010 2011 2013 2014 20152012 2016
Resource
Discovery
Scoping
Pre-Feasibility
Feasibility
Permitting
Engineering
Construction
Production
Metallurgy
INFERRED INDICATED MEASURED
ML APP
Partner Development
PP PP
EXTRACT APP
PP = Pilot Plant
Mine Lease and Extraction Permit Application/Granting
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MININGCRUSHING,GRINDING,
BENEFICIATION
ACID DISSOLUTION
PURIFICATION AND PRECIPITATION
PHOSPHOR POWDER
PHOSPHOR APPLIED AS COATINGS
LIGHT GLOBE
ASSEMBLY
END OF LIFE RECYCLING
SEPARATION TO RE-OXIDES
METAL MAKING
MAGNET PRODUCTION
FINAL PRODUCT ASSEMBLY
METALLURGYCERAMICSCATALYSTSPOLISHING
Secure European Supply Chain
END OF LIFE RECYCLING
MAGNET ALLOY
Recycling opportunities
transport
Nd, Pr, Dy, Gd, Tb
Y, Ce, La, Eu, Tb
HIGH STRENGTH MAGNET PRODUCTION
LIGHTING PHOSPHOR PRODUCTION
“….rare earth elements are the invisible metals of modern society. Their unique physical properties include strong magnetism, fluorescence, ignition at high temperature and high melting and boiling points.
It is these unique characteristics that has lead to today being embedded in modest amounts in most modern appliances. REE’s provide access to a 2 trillion dollar supply chain…”
10% pa growth
7% pa growth
(vaccum melting)(powder metallurgy) (molten salt electrolysis)
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27Standing out from the Crowd
Canadian company focused on “high-tech” metals in particular Rare Earth Elements (REE) in Europe ;
Tasman owns 100% of the only NI43-101 REE resources within the European Union ;
Flagship project is Norra Karr. 4th largest heavy REE deposit in the world. One of the highest percentage of HREE to TREE at over 50%. Will supply 300 tonnes of dysprosium oxide and 2000 tonnes of yttrium oxide annually;
Secondary project is Olserum, with a simple mineralogy supporting a well established flow sheet ;
Projects have excellent on site infrastructure with power, roads and water on site as well as rail within 20km. Sweden is a mining country ;
Norra Karr has a 40 year mine life or more. Deposit remains open at depth. Recently published very positive PEA – NPV of $1.5 billion with conservative metal pricing ;
Norra Karr gives Europe the opportunity to be the leader in HREE from 2016 ;
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TASMANTASMANMETALS LIMITED
Suite 13051090 West Georgia St
Vancouver, BC V6E 3V7 CANADA
Ph: +1 (604) 685 9316 Fax: +1 (604) 683 1585
CORPORATE OFFICE FOR MORE INFORMATION
Mark SaxonPresident & CEO
Jim PowellVice President, Corporate Development