13 february 2017 - asx · please note with regard to exploration targets, the potential quantity...

13FEBRUARY2017

CSIROTOCOMMENCEBATTERYGRADEELECTROLITIC

MANGANESEDIOXIDESTUDIESATBUTCHERBIRD

• CSIROtocommencestudiestoproduceElectrolyticManganeseDioxide

(“EMD”)fromtheButcherbirdManganeseDeposit(100%MZM).

• ButcherbirdisAustralia’slargestonshoremanganeseresourceat>170

milliontonnesofmanganiferousore4.

• EMDisanimportanttechnologymetalwithover90%ofglobal

consumptionusedinbatterymanufacturing.

• Lithium-Ionbattery1cathodescontainupto60%manganese,whichis

~5timesthecontainedvalueand~15timestheamountoflithium2,3.

• Co-fundinggrantapprovedbytheFederalGovernmentDepartmentof

Industry,InnovationandScience.

MontezumaMiningCompanyLtd(“Montezuma”or“Company”)ispleasedtoannouncethatthe

CommonwealthScientificandIndustrialResearchOrganisation(“CSIRO”)ProcessScienceand

TechnologyGrouphasagreedtoundertakeresearchanddevelopmentstudiesintotheproductionofhighpurityElectrolyticManganeseDioxide(“EMD”)

frommanganeseoressourcedfromtheCompany’s100%owned,infrastructureendowedButcherbird

ProjectinWesternAustralia.

Theinvestigationswillalsofocusonimprovingthe

primarybeneficiationgradesachievedfromtheButcherbirdoresasafeedstockintotheEMDprocessflowsheet(s)andasapotentialmarketable

productforsaletothemanganesealloymarkets.Previousworkachievedconsistentgradesof~33%

Mn,andthisworkwillseektofurtherincreasethat5.

TheDepartmentofIndustry,InnovationandSciencehaveagreedtoco-fund

theworkupto$50,000aspartoftheInnovationsConnectionsProgramme.

1http://www.visualcapitalist.com/manganese-powering-the-next-generation-of-lithium-ion-batteries/2http://batteryuniversity.com/learn/article/types_of_lithium_ion3https://www.metalary.com/lithium-price/

ABOUTMONTEZUMAMININGListedin2006,MontezumaMiningCompanyLtd(ASX:MZM)isadiversifiedexplorerprimarilyfocusedongoldandmanganese.TheCompany’sprimaryobjectiveistoachievereturnsforshareholdersthroughselectedstrategicacquisitionsandtargetedexploration.

Montezumahas100%interestsintheYamarnaGoldProjectintheYamarnaGreenstoneBelt,theHolletonGoldProjectintheWheatBeltregionandtheButcherbirdManganese/CopperProjectintheMurchisonregion,alllocatedinWesternAustralia.

MARKETDATAASXcode: MZMShareprice: $0.14Sharesonissue: 83.5MMarketcapitalisation: $11.7MCash(at30December): ~$4.6MListedInvestments: ~$7.7M

BOARDANDMANAGEMENTChairman SeamusCorneliusExecutiveDirector JustinBrownNon-ExecutiveDirector JohnRibbonsExplorationManager DaveO’Neill

Companyinformation,ASXannouncements,investorpresentations,corporatevideosandotherinvestormaterialontheCompany’sprojectscanbeviewedatwww.montezuma.com.au

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ABOUTTHEBUTCHERBIRDPROJECT

TheButcherbirdManganeseDepositisAustralia’slargestonshoremanganeseresource4comprisinglargetonnagesofnearsurfacemanganeseoxideoreinsevendeposits.

TheProjectalsohassomeexcellentinfrastructureadvantageswithagaspipelineandmainbitumenhighwaypassingdirectlyadjacenttoandthroughthemineralisedenvelope.

ThemineralisationoccursassupergeneenrichmentofaregionalscalebasalmanganeseshalewhichunderliesmuchoftheProjectarea.Theshalebedsaregentlyfoldedandwherethefoldsapproachthesurfacetopography,supergeneprocesseshavesignificantlyupgradedthemanganesecontenttoformapotentialfeedstockforfurtherupstreamprocessing.

BENEFICIATIONPOTENTIAL

TheCompanydiscoveredthedepositsin2010-2011andhassubsequentlyundertakenseveralroundsofmetallurgicaltestworkwhichhaveshownthatahighsilicaconcentratewithapproximately33%containedmanganeseandlowdeleteriouselementscanbereliablyproducedthroughrelativelysimpleprocessingmethods5.

Thismediumgradeconcentrateissuitableforuseintheproductionofsilicomanganesealloys,amajormanganesefeestockforuseinsteelmaking.ThisconcentratewillbeusedastheinitialfeedfortheEMDproductionprocesstestwork.

ABOUTEMD

IndustryobserversexpecttheglobalelectrolyticmanganesedioxidemarkettoreachUSD635.7millionby2022withaprojectedcompoundannualgrowthrateof4.9%from2015to2022.6

Growthindemandfromthebatterymanufacturingindustryisexpectedtodriveprojecteddemandcurvesastechnologicaladvancementsinwindandsolarpowergenerationandtheneedforassociatedgridelectricalstoragesystemsexpands.

BatteryproductionistheleadingEMDconsumerwithmarketshareestimatedtoexceed90%ofglobalconsumption.Thisdemandisexpectedtocontinuetogrowinparticularduetothecurrentandexpectedfuturegrowthintheglobalelectricvehicleindustry,whichinturnhasastrongimpactonbatterydemand.ManganeseintheformofEMDisakeyingredientinseveraltypesofwidelyusedbatterytechnologiesincludingLi-ion,alkalineandzinc-carbon,andthenextgenerationlithiatedmanganesedioxidebatteries,withcathodescomprisingover60%Mncomparedtoapproximately4%lithium.

4MontezumaMiningCompanyLtdASXreleasedated7December20125MontezumaMiningCompanyLtdASXreleasedated27December20146http://www.grandviewresearch.com/press-release/global-electrolytic-manganese-dioxide-market

Classification InferredResource

Cut-off 10%Mn

Deposit Tonnes(Mt) Mn(%)

BindiBindiHill 8.75 11.09

BudgieHills 1.03 10.82

CadgiesFlats 0.25 11.08

Coodamudgi 12.9 11.48

IllgararieRidge 17.0 10.71

Mundawindi 14.2 12.23

RichiesFind 16.1 11.56

SUBTOTAL 70.2 11.4

YanneriRidge 48.8 11.8

GLOBALTOTAL 119.0 11.6

Table1. InferredMineralResourceEstimatesattheButcherbirdManganeseProjectarereportedata10%Mncut.

Classification InferredResource

Cut-off 8-10%Mn

Deposit Tonnes(Mt) Mn(%)

BindiBindiHill 5.7 9.2

BudgieHills 3.5 8.9

CadgiesFlats 0.2 9.1

Coodamudgi 3.6 9.5

IllgararieRidge 18.5 9.2

Mundawindi 2.1 9.4

RichiesFind 6.6 9.4

SUBTOTAL 40.1 9.3

YanneriRidge 15.8 9.4

GLOBALTOTAL 55.9 9.3

Table2. InferredMineralResourceEstimatesattheButcherbirdManganeseProjectarereportedat8-10%Mn.

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FORMOREINFORMATION…

JustinBrown

ExecutiveDirectorPhone:+61863151400Email:jbrown@montezuma.com.auCompanyinformation,ASXannouncements,investorpresentations,corporatevideosandotherinvestormaterialontheCompany’sprojectscanbeviewedathttp://www.montezuma.com.au.

Figure1:ButcherbirdManganeseProjectlocationplanincludingresourceoutlines.

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TheinformationinthisreportthatrelatestoExplorationResults,MineralResourcesandMineralReservesisbasedoninformation

compiledbyMrJustinBrownwhoisamemberoftheAustralasianInstituteofMiningandMetallurgy.Atthetimethatthe

ExplorationResults,MineralResourcesandMineralReserveswerecompiled,MrBrownwasanemployeeofMontezumaMining

CompanyLtd.MrBrownisageologistandhassufficientexperiencewhichisrelevanttothestyleofmineralisationandtypeof

depositunderconsiderationandtotheactivitywhichheisundertakingtoqualifyasaCompetentPersonasdefinedinthe2012

editionofthe‘AustralasianCodeforReportingofExplorationResults,MineralResourcesandOreReserves’.MrBrownconsentsto

theinclusionofthisinformationintheformandcontextinwhichitappearsinthisreport

Pleasenotewithregardtoexplorationtargets,thepotentialquantityandgradeisconceptualinnature,thattherehasbeen

insufficientexplorationtodefineaMineralResourceandthatitisuncertainiffurtherexplorationwillresultinthedetermination

ofaMineralResource.

TheinformationintheannouncementthatrelatestoMineralResourcesfortheButcherbirdProjectisextractedfromASX

announcementof7December2012.Thecompanyconfirmsthatitisnotawareofanynewinformationordatathatmaterially

affectstheinformationincludedintheoriginalmarketannouncementsandthatallmaterialassumptionsandtechnicalparameters

underpinningtheestimatesintherelevantmarketannouncementscontinuetoapplyandhavenotmateriallychanged.The

companyconfirmsthattheformandcontextinwhichtheCompetentPerson’sfindingsarepresentedhavenotbeenmaterially

modifiedfromtheoriginalmarketannouncement.ThisinformationwaspreparedandfirstdisclosedundertheJORCCode2004.It

hasnotbeenupdatedsincetocomplywiththeJORCCode2012onthebasisthattheinformationhasnotmateriallychangedsince

itwaslastreported.

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