2016-11-08 agm presentation - lincoln minerals€¦ · lincoln minerals limited emerging graphite...

ManagingDirector’sPresenta0on

2016AnnualGeneralMee0ng

8November2016

ASX:LML

www.lincolnminerals.com.au

KookaburraGullyproposedminesite

KookaburraGully

Animminentnew,world-class,highgrade,lowcostgraphitemine

onSA’ssouthernEyrePeninsula

MiningLeaseGrantedJune2016

LincolnMineralsLimited EmergingGraphiteProducer

Keyinvestmentappeal

MineralLeasegranted3rdJune2016forflagshipKookaburraGullyproject

•  LocatedinSouthAustralia’sworld-classgraphite-richmetallogenicprovinceofEyrePeninsula35kmsnorthofexportgatewayofPortLincoln–region’sgraphiteprofilecomparabletoironore’sdominantPilbaraprofile

•  Deposithostshighgradeflakegraphite–aglobalTop10graphitedeposit•  SettobeAustralia’spremierandonlyproducinggraphitemine•  TargeMng~40,000tonnesperannumhighpuritygraphiteconcentrate(up

to98%TGC)fromconvenLonalflotaLonandeasilyupgradedto99.9%TGC

•  TargeMngdevelopmentstart-upassoonasnextyear2017•  ExisLngwater,power,road/rail/seaexportinfrastructureclose-by

•  EnteringamulM-billiondollar“newera”expandingglobalgraphitemarket

InvestmentopMons:minefinancing,off-take,directequityorprovisionofenvironmental/engineering/mining/processingsoluMons&equipment


Projectowner:LincolnMineralsLimited

ASXCode LML

MarketCapitalisaMon A$16.2million

Sharesonissue 368.4million

52Weekrange $0.03–$0.08

Cashat30Sept2016 A$2.43million

Debt NIL

Tenementholdings 2,980km2

FocusedBoardandManagementConsiderableexperienceinChineseinvestment&markets

Non-ExecuMveChairman-MrJinYuboManagingDirector-DrAllanJohnParker

Non-ExecuMveDirector-MrEddieLungYiuPangNon-ExecuMveDirector-MrJamesTenghuiZhang

•  Unwavering,long-termfocusonowning,

developingandprofitablyextracLngthe

mulL-commoditymineralwealthofSouth

Australia’srichlyendowedEyrePeninsula

•  Graphiteisthemainstrategicinvestment

•  OtherassetsincludesubstanLalmagneLte

andhemaLteresourcesandcopper

targetsinaregionwithalonghistoryof

graphite,ironoreandcoppermining


KookaburraGully:aworldclassaddress

SAhostsover70%of

Australia’sJORC

graphiteresources

EyrePeninsula:highly

prospecLveforworld-

classgraphite

IncludesLincoln’s

100%-owned

KookaburraGully

SAgraphiteroyalLes

2%forthefirst5years

(then3.5%)

Highlysoughtacer

premiumflakegraphite

KookaburraGully

[email protected]%TGC*

AdjoiningKoppio

[email protected]%TGC*

Totalcontainedgraphite

512,511tonnes*

KookaburraGullyisa

Top10globalgraphiteresourceincludingChinabasedongrade

WorldClassLocaMon WorldClassJORCresource

Mt=milliontonnesTGC=TotalGraphi3cCarbon

*at5%TGCcutoff

Canada’srenownedFraserInsLtute(March2016)putSouthAustraliaintheTop10miningjurisdicMonsintheworldforitsmininginvestmentahracLveness(mineralendowmentsand

publicpolicy)forresourcesinvestors.


KookaburraGully:aworldclassdeposit

100µm

Graphiteschistoutcrops

atthesurface

DrillingbyLincoln

in2013-14proved

upahighgrade

JORCmineral

resource

CoarseflakegraphitePetrologicalstudiesshowKookaburraGullygraphiteasfinetocoarseflakeswithanaveragegraphite

flakesizeof350-500microns

Deposit CombinedInferred&IndicatedJORCMineralResource

Grade%TGC

ContainedGraphite

KookaburraGully

2.2milliontonnes 15.1% 331,778tonnes

Koppio 1.85milliontonnes 9.8% 180,733tonnes


KeyMiningLeaseGranted

MineralLeaseML6460

Granted3June2016

PreparaMon&

approvalofProgramforEnvironmentProtecMon&

RehabilitaMon(PEPR)isfinalapproval

process

TargeMngDevelopment2017-18

(subjecttoGovtapprovals

&finance)

•  Hasgreenlightfrom

Commonwealth

Government

Departmentofthe

Environment–NotaControlledAcMon

•  Capex<A$50million

•  LOMOpexA$630/tto

A$704/tconcentrate(*)

• Water:10kmfromTod

Reservoir+pitdewater

•  Power:5kmfromgrid

&/oronsitegeneraLon

•  ExportfromPortLincoln

(35km)orPortAdelaide

(*)90%recoveryFOBPortAdelaide

Refer2015AnnualReport


April2016KeyMoUSignedwithDistrictCouncil

• MemorandumofUnderstanding(MoU)withtheDistrictCouncilofTumbyBay(DCTB)jointlysignedon6April2016

• SupportstheCompany’sKookaburraGullygraphiteproject•  FrameworktoworktogetheronproposedwaterpipelinefromTodReservoir,upgrading

andmaintenanceofroads,preparaLonofaTrafficManagementPlan,andconLnuing

engagementwiththecommunityinregardtobusinessandemploymentopportuniLes

• MoUshowsthewillingnessof

CouncilandLincolnMineralsto

collaboratetoachieve

maximumbenefitsforthis

newminingopportunityforthe

TumbyBayregion

SigningoftheMoUwithDCTB(fromleY)

DCTBMayorSamTelfer,DCTBCEOTrevorSmith,LMLMDDrJohnParker&LMLChairmanYuboJin


•  Smallminesitefootprint

103hectares

•  700mlongopenpit

graphitemine

•  ConvenLonalflotaLonplantoperaLng24/7

•  Process250,000tpaore•  Produceupto40,000tpa

concentrate

•  Highmetalrecovery

(>85%)

•  Delivershighgrade(94-98%TGC)concentrate

•  Chemicalleachingto

99.95%TGC

•  Packaging–bulkabagsorcontainers

SmallMineSiteFootprint

www.pbworld.com

© Parsons Brinckerhoff Australia Pty Ltd ("PB") Copyright in the drawings, information and data recorded("the information") is the property of PB. This document and the information are solely for the use of theauthorised recipient and this document may not be used, copied or reproduced in whole or part for anypurpose other than that which it was supplied by PB. PB makes no representation, undertakes no dutyand accepts no responsibility to any third party who may use or rely upon this document or the information.NCSI Certified Quality System to ISO 9001. © APPROVED FOR AND ON BEHALF OF ParsonsBrinckerhoff Australia Pty Ltd. Trademarks provided under license from ESRI.

Data source: - Map no: 2200002A_GIS_020_A

Author: RP/MB

Approved by: LVC

0 100 200

m ± Kookaburra Gully Scoping Studyand Environmental Approvals

Preliminary concept designAugust 2014

!(

!(

PILL

AWO

RTA

RO

AD

Legend

!( RoundaboutDrainage channelNatural channelNorth West waste dumpSouth waste dumpRoadSubsoil stockpileTopsoil stockpileMineral claim boundaryCarparkFuel storageFuel storage & refill areaHard standOfficesDrainage structureMagazineProcess plantOffices/adminProposed pitSilt detention pondROM padTailings storage facilityTSF embankmentWater storage/treatment

1:12,000

Lincoln Minerals \\Apadlfil01\proj\L\Lincoln_Minerals\2200002A_KOOKABURRA_KOPPIO_ENVIRONMENT\10_GIS\Projects\Maps\2200002A_GIS_020_A.mxd

Date: 1/09/2014

Scale ratio correct when printed at A3Projection: Transverse Mercator

Coordinate system: GDA 1994 MGA Zone 53

!(

!(

ML 6460

www.pbworld.com

© Parsons Brinckerhoff Australia Pty Ltd ("PB") Copyright in the drawings, information and data recorded("the information") is the property of PB. This document and the information are solely for the use of theauthorised recipient and this document may not be used, copied or reproduced in whole or part for anypurpose other than that which it was supplied by PB. PB makes no representation, undertakes no dutyand accepts no responsibility to any third party who may use or rely upon this document or the information.NCSI Certified Quality System to ISO 9001. © APPROVED FOR AND ON BEHALF OF ParsonsBrinckerhoff Australia Pty Ltd. Trademarks provided under license from ESRI.

Data source: - Map no: 2200002A_GIS_020_A

Author: RP/MB

Approved by: LVC

0 100 200

m ± Kookaburra Gully Scoping Studyand Environmental Approvals

Preliminary concept designAugust 2014

!(

!(

PILL

AWO

RTA

RO

AD

Legend

!( RoundaboutDrainage channelNatural channelNorth West waste dumpSouth waste dumpRoadSubsoil stockpileTopsoil stockpileMineral claim boundaryCarparkFuel storageFuel storage & refill areaHard standOfficesDrainage structureMagazineProcess plantOffices/adminProposed pitSilt detention pondROM padTailings storage facilityTSF embankmentWater storage/treatment

1:12,000

Lincoln Minerals \\Apadlfil01\proj\L\Lincoln_Minerals\2200002A_KOOKABURRA_KOPPIO_ENVIRONMENT\10_GIS\Projects\Maps\2200002A_GIS_020_A.mxd

Date: 1/09/2014

Scale ratio correct when printed at A3Projection: Transverse Mercator

Coordinate system: GDA 1994 MGA Zone 53

!(

!(


•  Simpleprocessflowsheet–grind,float,regrind,clean,dry,screen&export

•  Delivershighgrade(94-98%TGC)flake

graphiteconcentratefromasimple

“clean-and-green”processProgramforEnvironmentProtecMon&RehabilitaMon(PEPR)inprogress•  FinalstageinGovernmentapprovalsprocess

•  IncludesnumerousopLonsstudiesrepower

&watersupply,transport,metallurgy

•  Newlaboratory&pilotplanttestworkin

AustraliaandChina(2016)includes:

o  Largersamples(upto5tonnes)

o  Lock-cycletestso  Highpuritysphericalgraphite

&expandablegraphitetests•  TransportOpLons:roadto,then

shipoutofPortLincoln,Whyalla

orPortAdelaide

97.8%TGCcoarseflakegraphitefromKookaburraGully

KookaburraGully–SimpleProcessing


KookaburraGullyGraphiteProjectWorldClassResourceUpside

ExploraMonTargets:•  KookaburraGullyExtended

ExploraLonTargets:

22Mt–44Mt@10%-15%TGC

•  Drillingprogramplannedforearly2017

•  OtherExploraLonTargets:GumFlat-Uleyarea&furtheralongstrikefromKookaburraGully

LongProjectMineLifeand

EnhancedProducMonRate

ItisemphasisedthatExplora3onTargettonnagees3matesareen3relyconceptualinnature.Therehasbeeninsufficientornodrillingintheimmediateareasofthosetargetsanditisuncertainiffurther

explora3onwillresultinthees3ma3onofaMineralResource.


GraphiteMarketFundamentals•  GraphiteintheformofSphericalGraphiteisakeyinputinthemanufactureof

lithium-ionbaherieswidelyusedinelectricvehicles,smartphones,portable

computerdevicesandmore–banerybackupforsolarpoweredhomes

•  ExpandableGraphiteusedinfireexLnguishersandformakinggraphitefoil

•  GraphiteFoilwidelyusedforgaskets(egengineheadgaskets),asathermalbarrier

inelectricalapplicaLons,fuelcellsandlinings

•  Graphiteisalsousedinpencils,fordry

lubricants,steelmaking,pebble-bed

nuclearreactorsandmuchmoreincluding

newgeneraMonsolar-thermalpowersystems

•  IntheproposedSolastorsystem,atower

mounted,10tonnegraphiteblockis

heatedto800°Candusedtoconvert

watertosteamtogenerateelectricity.For

thePortAugustasolar-thermalpower

staLonproposal,atleast1700graphite

blocksormorethan17,000tonnesof

graphitewouldberequired.www.solastor.com.au


SphericalGraphiteFundamentalsBATTERY&ENERGYSTORAGECOMMERCIALISATION•  Newgenelectriccars–useanddemandgrowingbyatleast15%•  Massiveemergingmarketfornon-mobilebanerystorage

systemsforhomes•  Ittakesabout2.5tonnesofnaturalflakegraphitetoproduce1

tonnesphericalgraphite

•  Sphericalgraphiteishighpurity>99.9%C•  About50-60%ofsphericalgraphitecomes

fromnaturalflakegraphite

0"

2,000"

4,000"

6,000"

8,000"

10,000"

12,000"

2014" 2016" 2020" 2025"

Panasonic(Li*ion(ba,ery(growth(forecast((Japanese(Yen((bn))(

Automo/ve"

Storage"


TimescaletoProducMon

Freediggingupper30-50m

Commenceshippingproduct

StartminingMineDevelopment

PEPRapproval 2017

MiningLeaseGranted 2016

CommonwealthEPBCapproval

LodgeMiningLeaseProposal2015PegMineralClaims

Environmentalstudies 2014JORCResource 2013

ScopingStudy 2012Discovery1980s


SummaryandKeyDeliverables•  FocusedgraphitedeveloperwithAustralia’shighestqualitygraphitedeposit•  MilestoneMiningLeasegrantedforKookaburraGully

•  Crystallisesotake/projectfundingopportuniLes

•  Australia’snextgraphitemine(subjecttogovernmentapprovalsandfinance)

•  Worldclasshigh-gradegraphitedeposit•  Highpurityconcentratesupto98%TGCproducedbyconvenLonalflotaLon

•  Readilyupgradedto99.9%TGC

•  LocatedinrecognisedminingfriendlyjurisdicMonincloseproximityto

necessaryinfrastructure(water,power,transportandshipping)•  LowcapitalinvestmentandesLmatedoperaLngcosts

•  Near-term“clean-and-green”producMon•  ExperiencedDirectorswithconsiderableexperienceininternaMonalChineseinvestment&markets

KookaburraGullyproposedminesite

2017inanutshell….

KookaburraGullytobecome….SA’snewestmineinoneofthehonestglobalcommodiMesTheonlyproducinggraphitemineinAustralia

inasoaringneweraglobalmarket

THANKYOU

DrA.JohnParkerManagingDirector+61882740243


ThispresentaLonhasbeenpreparedbyLincolnMineralsLimited(“LML")andAustralianGraphitePtyLtd(“AGL”)asanaid

toaspokenexplanaLon.ItshouldnotbeconsideredasanofferorinvitaLontosubscribefororpurchaseanysecuriLesin

LMLorAGLnorasaninducementtomakeanofferorinvitaLonwithrespecttothosesecuriLes.AGLisawholly-owned

subsidiaryofLML;allrightsandinterestsingraphitemineralsandassociatedmineralsincertaintenementsareassignedto

AGL.InformaLoninthispresentaLonisaprofessionalopiniononlybutisgiveningoodfaith.Forward-LookingStatementsThispresentaLoncontainsforwardlookingstatementsconcerningtheKookaburraGullyGraphiteProject.Statements

concerningMineralResources,mineplansandprojecteconomicsmaybedeemedtobeforwardlookingstatementsinthat

theyinvolveesLmatesbasedonspecificassumpLons.Forward-lookingstatementsarenotstatementsofhistoricalfact,and

actualeventsandresultsmaydiffermateriallyfromthosedescribedinthestatementsasaresultofavarietyofrisks,

uncertainLesandotherfactors.ForwardlookingstatementsarebasedonAGL’sandLML’sbeliefs,opinionsandesLmates

asofthedatethestatementsaremadeandnoobligaLonisassumedtoupdateforwardlookingstatementsifthesebeliefs,

opinionsandesLmatesshouldchangeortoreflectotherfuturedevelopments.Dataandamountsshowninthis

presentaLonrelaLngtocapitalcosts,operaLngcosts,graphitepricesandprojectLmelinesarebasedonconsultantreports

andinternallygeneratedesLmatesandarebestesLmatesonly.Accordingly,AGLandLMLcannotguaranteetheaccuracy

and/orcompletenessofthefiguresordataincludedinthepresentaLon.AlldollaramountsareinAustraliandollarsunless

otherwisestated.CompetentPerson’sStatementInformaLoninthispresentaLonthatrelatestoexploraLonacLvity,mineralresourcesandresultswascompiledbyDrA

JParkerwhoisaMemberoftheAustralasianInsLtuteofGeoscienLsts.Dr.ParkerisManagingDirectorofandhassharesin

LincolnMineralsLimited.HehassufficientexperiencerelevanttothestylesofmineralisaLonandtotheacLviLeswhichare

beingpresentedtoqualifyasaCompetentPersonasdefinedbytheJORCcode,2012.Dr.Parkerconsentstothereleaseof

theinformaLoncompiledinthispresentaLonintheformandcontextinwhichitappears.

ImportantNoMce


ThispresentaLonhasbeenpreparedbyLincolnMineralsLimited(“LML")asanaidtoaspokenexplanaLon.

TheinformaLoncontainedinthispresentaLonisbasedonanumberofpublicstatements,QuarterlyReports

andASXreleasesmadebyLML:References•  LincolnMinerals,2013.UpdatedGraphiteMineralResourcesforLincoln’sworld-classKookaburraGully

projectinSouthAustralia’sEyrePeninsula.LincolnMineralsLimited,ASXAnnouncement19December2013.

•  LincolnMinerals,2015.MaidengraphiteresourceforsecondLincolndepositinSA’sEyrePeninsulalics

totalinventoryby>50%inthisworld-classprovince.LincolnMineralslimited,ASXAnnouncement13July2015

•  AustralianGraphiteLimited,2015.CommunityInformaLonUpdateNo.4,KookaburraGullyGraphiteMine,

MiningLeaseProposal.LincolnMineralsLimitedwebsite,September2015•  LincolnMinerals,2015.2015AnnualReport.LincolnMineralsLimited26October2015•  LincolnMinerals,2016.2016AnnualReport.LincolnMineralsLimited30September2016

Informa3onextractedfrompreviouslypublishedreportsiden3fiedinthisreportisavailabletoviewontheCompany’swebsitewww.lincolnminerals.com.au.Thecompanyconfirmsthatitisnotawareofanynewinforma3onordatathatmateriallyaffectstheinforma3onincludedintheoriginalmarketannouncementsand,inthecaseofes3matesofMineralResources,thatall

materialassump3onsandtechnicalparametersunderpinningthees3matesintherelevantmarketannouncementscon3nuetoapplyandhavenotmateriallychanged.ThecompanyconfirmsthattheformandcontextinwhichtheCompetentPerson’s

findingsarepresentedhavenotbeenmateriallymodifiedfromtheoriginalmarketannouncements.

Appendix


ExperiencedChineseDirectors•  MrJinYubo:Non-ExecuMveChairman

HasaMasterofInternaLonalLawfromNaLonalChiNanUniversity,achairmanorboard

memberofinvestmentandrealestatecompaniesinChinaandAustralia,aformer

commiheememberofamajorChinesecity’sPeople'sPoliLcalConsultaLveCouncil,familiar

withChineseinvestmentlawsandregulaLonsandhasawiderangeofpoliLcalandbusiness

networksinmainlandChina,HongKongandothereasternandSouthEastAsiancountries.

•  MrEddiePang:Non-ExecuMveDirectorHasaBachelorofSciencewithHonoursdegreeinChemistry,operatesaShanghaitrading

businesssupplyingtheChinesemarketwithAustralianwoolandwine,Chileanironore,

cathodecopperandLmber,andexportsChineseproductstoVietnam,theUAEandCanada.

HeiscurrentlytheExecuLveChairmanofASX-listedmineralexploraLonanddevelopment

company,GenesisResourcesLimited.

•  MrJamesZhang:Non-ExecuMveDirectorOver20yearsinrealestatedevelopmentandbusinessmanagementinmainlandChina,

HongKongandAustraliawithextensiveexperienceinfundingrealestate,infrastructureand

propertydevelopmentandenterprisemanagement.HeisDirectorofShanghaiJihai

InvestmentLtdCo.andmemberofAssetManagementAssociaLonofChina(AMAC).

ConsiderableexperienceininternaMonalChineseinvestment&markets


KookaburraGully&KoppioMineralResources

Reference: Lincoln Minerals 2016 Annual Report. Lincoln Minerals Limited, ASX Announcement 30 September 2016.

Total combined Mineral Resources for Kookaburra Gully and Koppio

Mineral Resource Classification Cutoff Grade

(% TGC) Tonnes

(Mt) Grade

(% TGC)

Contained Graphite (tonnes)

Density (g/cc)

Kookaburra Gully

High-grade Core (Domain 1) - Indicated 5% 1.45 13.74 199,193 2.56

Low-grade Halo (Domain 2) – Indicated 2% 0.62 3.04 18,984 2.54

High-grade Core (Domain 1) – Inferred 5% 0.73 16.17 117,964 2.50

Low-grade Halo (Domain 2) – Inferred 2% 0.40 2.91 11,538 2.54

Koppio

High-grade Core (Domain 1) – Inferred 5% 1.85 9.76 180,733 2.67

Low-grade Halo (Domain 2) – Inferred 2% 1.21 3.18 38,560 2.80

TOTAL (>2% TGC) 6.26 9.05 566,972 2.63

Mt = million tonnes TGC = Total Graphitic Carbon


InworldTop10graphitedepositsbygrade

“KookaburraGullyiswithintheTop10globalresourcesincludingChina

basedongraphitegrade.”

KookaburraGullyisahighgradecoarseflakegraphitedepositandiscapableofdeliveringnear-termproducLonatlowcostinaddiLontographenedevelopmentresearch

withMelbourne’sMonashUniversityandGuangdongUniversityofTechnologyinChina

GlobalResourcesbyGraphiteGrade

TGC=TotalGraphi3cCarbon

0 5 10 15 20 25

Hengshan(Jixi),HeilongjiangProv,ChinaWilcloSouth,SouthAustralia(AXE)

AsburyGraphite,QuebecEpanko,Tanzania

Campoona,SouthAustralia(AXE)Koppio,SouthAustralia(LML)

Arnohighgrade,SouthAustralia(RNU)Lobei,HeilongjiangProv,China

Kringel,SwedenJixiChangyuan(LiuMao),HeilongjiangProv,China

Shimba,TanzaniaRaitajarvi,Sweden

NicandaHill,MozambiqueUley,SouthAustralia(VXL)

MountDromedary,QueenslandLacKnife,Canada

KookaburraGully,SouthAustralia(LML)BalamaEasthighgrade,Mozambique(SYR)

Yalbra,WesternAustraliaLacGueretEast,Canada

BalamaWest,MozambiqueMunglinup(Halbert's),WesternAustralia

Nunasvaara,SwedenSkaland,Norway

GraphiteGrade(%TGC)


KookaburraGullyMetallurgyMetallurgicaltestresultsfordrillcoresamples(LMC9)andtrenchsamples(CandD).AHDisAustralianHeightDatum

StandardSieve/MeshSizesare:80#=177µm;100#=150µm;200#=75µm

Reference: Lincoln Minerals 2016 Annual Report. Lincoln Minerals Limited, ASX Announcement 30 September 2016.


CorporateDirectory

DirectorsMrJinYubo,Chairman

DrAJohnParker,ManagingDirector

MrEddieLungYiuPang,NonExecuLve

MrJamesTenghuiZhang,NonExecuLve

CompanySecretary Jaroslaw(Jarek)Kopias

RegisteredandPrincipleOffice

Suite4,Level7,350CollinsStreet

MelbourneVictoria3000 Phone:(613)96000782

Facsimile:(613)96000783

Email:[email protected]

Website:www.lincolnminerals.com.au

AdelaideOffice 28GreenhillRoad

WayvilleSA5034Phone:(618)82740243

ShareRegistryComputershareInvestorServicesPtyLtd

Level5,115GrenfellStreet

AdelaideSA5000

Phone1300365998

Banker NaLonalAustraliaBank

Auditor GrantThornton

ASXcodeLML

ABN50050117023

2016-11-08 agm presentation - lincoln minerals€¦ · lincoln minerals limited emerging graphite...

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