resourcing a renewable future… - melbourne mining …...titanium metal is used for a wide range of...

Resourcing a renewable future…

Corporate Presentation | September 20161

IMPORTANT NOTICESCAUTIONARY STATEMENT

The Scoping Study referred to in this report is based on low-level technical and economic assessments, and is insufficient to support estimation of Ore Reserves or to provide assurance of an economic development case at this stage, or to provide certainty that the conclusions of Scoping Study will be realised.

COMPETENT PERSON STATEMENT

The information in this report that relates to Mineral Resources and Exploration Targets is based on information compiled by Mr Anthony Johnston, BSc (Hons), who is a Member of the Australian Institute of Mining and Metallurgy and is a full time employee of the Company. Mr Johnston has sufficient experience which is relevant to the style of mineralisation and type of deposits under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 & 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves.’ Mr Johnston consents to the inclusion in the announcement of the matters based on his information in the form and context that the information appears.

The information in this report that relates to Mineral Resources and Exploration Targets for the Copi North HMS Deposit is based on information presented in ASX Announcement, ‘Copi North HMS Resource Upgrade’ released to the market on 27th May 2016. The Competent Person for the report was Mr David Biggs, Resource Geologist for GEOS Mining, located in Sydney NSW. The entity confirms in the subsequent public report that it is not aware of any new information or data that materially affects the information included in the relevant market announcement and, in the case of estimates of mineral resources or ore reserves, that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed.

The information in this report that relates to Mineral Resources for the Magic HMS Deposit is based on information compiled by Mr. Greg Jones who is a Member of the Australasian Institute of Mining and Metallurgy. Mr Jones is the Principal for GNJ Consulting and was retained by Broken Hill Prospecting Limited to conduct Mineral Resource estimation for the Magic deposit. Mr Jones has sufficient experience that is relevant to the style of mineralisation and type of deposits under consideration and to the activity, which he is undertaking to qualify as Competent Person as defined in the JORC Code 2012. Mr Jones consents to the inclusion in this ASX release of the matters based on his information in the form and context in which it appears.

DISCLAIMER

This presentation contains forward-looking statements that involve subjective judgement and analysis and accordingly, are subject to significant uncertainties and risks, many of which are outside the control of, and are unknown to, Broken Hill Prospecting Pty Ltd ( “BPL”). In such circumstances, the forward-looking statements can be identified by the use of forward-looking words such as “may”, “will”, “expect”, “intend”, “seek”, “estimate”, “believe”, “continue” or other similar words.

No representation, warranty or assurance is given or made in relation to any forward-looking statement by BPL or it’s representatives, In addition, no representation, warranty or assurance is given in relation to any underlying assumption or that any forward-looking statements will be achieved. Actual future events may vary materially from the forward-looking statements and the assumptions on which the forward-looking statements are based. Accordingly, presentation readers are cautioned not to place undue reliance on such forward-looking statements as a result of the uncertainties.

In particular, BPL wishes to caution readers that these forward-looking statements are based on economic predictions and assumptions on reserves, mining method, production rates, metal prices and costs (both capital and operating) developed by BPL management in conjunction with consultants.

This presentation and the forward-looking statements made in this presentation, speak only as of the date of the presentation. Accordingly, subject to any continuing obligations under the Corporations Act and the Australian Stock Exchange Listing Rules, BPL disclaims any obligation or undertaking to publicly update or revise any of the forward-looking statements in this presentation, whether as a result of new information, or any change in events, conditions or circumstances on which any such statements is based.

2

CORPORATE SNAPSHOTBroken Hill Prospecting Limited ASX Code: ‘BPL’

Ordinary Shares on Issue (21/6/16) 136m

Options: Listed 53m

Market Cap (undiluted at 10.5cps) $14m

Shareholders Shares (M) %Hill Family GroupFar East Capital

47.26.7

34.5%4.9%

Top Twenty 72.9 53.4%

Total shareholders 802

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3000000

4000000

5000000

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Board of Directors & ManagementCreagh O’Connor Non Executive Chairman

Geoff Hill Non Executive Director

Matt Hill Non Executive Director

Denis Geldard Non Executive Director

Trangie Johnston Chief Executive Officer

Donald De Boer Company Secretary

Focused on the discovery & development of strategic technology mineral resources

1. Cobalt2. Heavy Mineral Sands

3

ASSET OVERVIEW+ Focussed on the development of strategic

technology mineral resources:+ Thackaringa Cobalt Project+ Heavy Mineral Sands Project

+ Stable jurisdiction with supportive local communities

+ Established infrastructure

Resourcing a renewable future…

Mildura

Broken Hill

Sydney

4

COBALT, RESOURCING THE FUTURE…

Cobalt is used extensively in super alloys and high

pressure and temperature resistant metals for use in

applications such as in energy turbines, jet

motors, military hardware, aircraft and space craft.

The battery industry uses about 40% of global cobalt and this could increase to 70% in 10

yearsCobalt has been used for centuries as a pigment for bright

blue colouring

Cobalt is a major component in many new rechargeable batteries (electric cars, mobile

phones, laptop computers). Many lithium-ion batteries contain up to

60% cobalt (cathode mass)

Cobalt is a principle component of vitamin B12,

essential for blood and brain.

40%70%

5

WHY ARE OUR COBALT DEPOSITS SO UNIQUE?

94%

of the world’s cobalt production is a by product of copper & nickel

mining

800-2000t 2000-3000t 3000-5000t 5000-6000t +6000t

The DRC hosts 50% of the world’s known cobalt resources

and provides approximately 60% of the world’s production

BPL’s Thackaringa Project offers a rare and unique primary

source of cobalt

40%of the world’s

cobalt is refined in China

80%consumed by the

USA, Japan, China and the EU

92ktcobalt produced

in 2015

6

THACKARINGA COBALT PROJECT

+ 100% ownership of world-class cobalt-pyrite resources

+ Established infrastructure - located adjacent main railway & highway just 25km southwest of Broken Hill

+ Mineralised outcrop extends for 10km+ with less than 25% drill tested to date

+ Potential By-Products:+ Sulphuric Acid+ Hematite+ Feldspar+ Energy (exothermic)

INSET

7

THACKARINGA COBALT PROJECT

37-59Mtat 600-900ppm

Cobalt*

Exploration Target

35.7Mtat 841ppm

Cobalt

Combined Inferred Resource

8*The potential quantity and grade of these targets is conceptual in nature. There has been insufficient exploration to define a Mineral Resource and it is uncertain if further exploration will result in determination of a Mineral Resource.

Inferred Resources

Approx. 20km to Broken Hill Airport

Exploration Targets

Outcropping - sub-cropping pyritic gneiss; yet to be tested

PYRITE HILL16.4Mt at 830ppm Co

BIG HILL4.4Mt at 910ppm Co

RAILWAY14.9Mt at 831ppm Co

2km

Approx. 400km to Port Pirie

HEAVY MINERAL SANDS (HMS) DEMAND

Titanium metal is used for a wide

range of applications, from

sporting equipment to the aeronautical

industry.

Titanium metal is used for many

medical and dental applications.

Zircon is a key component of fibre

optics.

Titanium dioxide pigment used in a

range of paintapplications as well

as paper, plastics and inks.

9

MURRAY BASIN, HMS PROJECTS

+ BPL have established a significant portfolio of HMS projects across the Murray Basin

+ Copi North and Magic resources are shallow high-grade strandline deposits that remain open along strike

+ Relentless Resources (RRL) earn 50% interest in HMS Projects (Copi North, Magic & Sunshine)

+ Targets: Historical data compilation has identified 18 HMS strandline deposit targets across the portfolio

INSET

40km

BROKEN HILL

Lake Victoria

SOUT

H AU

STRA

LIA

NEW

SOU

TH W

ALES Menindee

Pooncarie

Mildura Broken Hill Minerals 100%Broken Hill Minerals 50%

Gingko & Snapper

HMS Mines

Atlas & Campaspe

HMS Project

Magic HMS Deposit

Copi North HMS Deposit

10

+ Copi North Heavy Mineral Sands (HMS) deposit 2016 Resource Upgrade 2016 Scoping Study – positive

results PFS Commenced

+ Magic HMS deposit 2015 Resource

+ ‘Pipeline’ approach for development of high-grade HMS deposits using a modular, portable, mobile plant (MMU)

HMS PROJECT PIPELINE

11

CONTACT US

TRANGIE JOHNSTONChief Executive Officer

+61 2 9252 [email protected]

12

THACKARINGA RESOURCES

RESOURCE CATEGORYTONNES GRADE CONTAINED METAL

(millions) Co (ppm) Co (lb/t) Co (Mlbs)

RAILWAY DEPOSIT Cut-off Grade 500ppm Co (As released 27 July 2012 under JORC 2004)

Inferred 14.9 831 1.83 27

Total 14.9 831 1.83 27

PYRITE HILL DEPOSIT Cut-off Grade 500ppm Co (As released 14 November 2011 under JORC 2004)

Inferred 16.4 830 1.83 30

Total 16.4 830 1.83 30

BIG HILL DEPOSIT Cut-off Grade 500ppm Co (As released 12 November 2010 under JORC 2004)

Inferred 4.4 910 2.00 9

Total 4.4 910 2.00 9

GRAND TOTAL 35.7 841 1.85 66

13

HMS RESOURCESRESOURCE CATEGORY

TONNES (millions) THM (%) Density (g/cm³) Slimes <53um

(%) Oversize >1mm (%)

COPI NORTH DEPOSIT Cut-off Grade 2.5% Total Heavy Mineral (THM) (As released 27 May 2016 under JORC 2012)

Indicated 11 6.3 1.82 2.7 2.4

Inferred 3.2 6.8 1.83 2.8 1.6

Total 14.2 6.6 1.83 2.8 2.0

TONNES (millions) THM (%) Ilmenite (%) Rutile (%) Zircon (%) Monazite (%) Leucoxene (%) Other HM (%)

14.2 6.6 54.4 10.8 11.3 1 10 12.6

RESOURCE CATEGORY

TONNES (millions) THM (%) Density (g/cm³) Slimes <53um

(%) Oversize >1mm (%)

MAGIC DEPOSIT Cut-off Grade 2% Total Heavy Mineral (THM) (As released 10 September 2015 under JORC 2012)

Inferred 15 3.7 4 1

Total 15 3.7 4 1

TONNES (millions) THM (%) Ilmenite (%) Rutile (%) Zircon (%) Monazite (%) Leucoxene (%) Other HM (%)

15 3.7 62 6 14 10 8

14

QUALIFICATIONSSLIDE 8: The global conceptual exploration target of 37-59Mt at 600-900ppm cobalt is as released on 27 July 2012 under JORC 2004 and comprises the following:

• Railway Deposit Conceptual Exploration Target• 23Mt - 35Mt at 600ppm - 900ppm Co (as released 27 July 2012)

• Pyrite Hill Deposit Conceptual Exploration Target• 14Mt - 24Mt at 700ppm - 900ppm Co (as released 14 November 2011)

The potential quantity and grade of these targets is conceptual in nature. There has been insufficient exploration to define a Mineral Resource and it is uncertain if further exploration will result in determination of a Mineral Resource.

The Inferred Resource estimates are as released under JORC 2004, comprising the following (please refer to slide 13 for a full statement of the mentioned resource estimates):• Railway Deposit

• 14.9Mt at 1.83lb/t (831ppm) (at a 500ppm Co cut-off and as released 27 July 2012 under JORC 2004)• Pyrite Hill Deposit

• 16.4Mt at 1.83lb/t (830ppm) (at a 500ppm Co cut-off and as released 14 November 2011 under JORC 2004)• Big Hill Deposit

• 4.4Mt at 2.00lb/t (910ppm) (at a 500ppm Co cut-off and as released 12 November 2010 under JORC 2004)

The entity confirms that it is not aware of any new information or data that materially affects the information included in the relevant market announcement and, in the case of estimates of mineral resources, that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed.

15

www.blackrockmining.com.au 1

A Tanzanian Graphite DeveloperINVESTOR PRESENTATION SEPTEMBER 2016

Scanning Electron Microscope Images showing first test batch of Mahenge spherical Graphite. Spherical particles 18 microns.


DisclaimerThe release, publication or distribution of this presentation in certain jurisdictions may be restricted by law and therefore persons in such jurisdictionsinto which this presentation is released, published or distributed should inform themselves about and observe such restrictions.

DISCLAIMER

This presentation is for informational purposes only and does not constitute an offer to sell, or solicitation to purchase, any securities. Such Offer canbe made only through proper subscription documentation and only to investors meeting strict suitability requirements. Any failure to comply withthese restrictions may constitute a violation of applicable securities laws. In providing this presentation Black Rock has not considered the financialposition or needs of the recipient. Persons needing advice should consult their stockbroker, bank manager, solicitor, attorney, accountant or otherindependent financial and legal advisors.

FORWARD LOOKING STATEMENTS

Various statements in this presentation constitute statements relating to intentions, future acts and events. Such statements are generally classifiedas “forward looking statements” and involve known and unknown risks, uncertainties and other important factors that could cause those future acts,events and circumstances to differ materially from what is presented or implicitly portrayed herein. Words such as “anticipates”, “expects”, “intends”,“plans”, “believes”, “seeks”, “estimates” and similar expressions are intended to identify forward-looking statements. Black Rock caution shareholdersand prospective shareholders not to place undue reliance on these forward-looking statements, which reflect the view of Black Rock only as of thedate of this presentation. The forward-looking statements made in this presentation relate only to events as of the date on which the statements aremade.

COMPETENT PERSON

The information in this report that relates to Exploration Results and Mineral Resource Statements is based on information compiled by StevenTambanis, who is a member of the AusIMM. He is an employee of Black Rock Mining Limited. Steven Tambanis has sufficient experience which isrelevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a CompetentPerson as defined in the 2004 and 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and OreReserves’. Steven Tambanis consents to the inclusion in the report of the matters based on their information in the form and context in which itappears.


Corporate Overview

Capital Structure

Share Price A$0.16

Shares on Issue 285m

Quoted Options on Issue 75m

Market Capitalisation A$46M

Cash in Bank 30 June 16 A$2.4M

Directors Holding 29%

Board and Management

Stephen Copulos (Chairman)

+30 years experience across a wide range of industriesincluding mining, manufacturing, property, fast food andhospitality.

Chairman of Crusader Resources Limited (ASX:CAS),Consolidated Zinc Limited (ASX:CZL) and Non-ExecutiveDirector of Restaurant Brands, NZ

Steve Tambanis (Managing Director)

Geologist with extensive commercial and operationalexperience in the resources industry including businessdevelopment at WMC Resources.

Gabriel Chiappini (Director & Company Secretary)

Chartered Accountant and member of Australian Instituteof Company Directors with extensive experience asDirector and Company Secretary to ASX listed companies.

Director of Fastbrick Robotics Ltd (ASX:FBR), SunbirdEnergy Ltd (ASX:SNY), Scotgold Resources Limited(ASX:SGZ) and Global Geoscience Ltd (ASX:GSC)

Blue Ocean Equities (Corporate Advisor)

6 Month Price Performance


BKT in summaryProgressive de-risking of key projectcomponents: Resource, metallurgy,logistics, marketing

Ulanzi infill drilling completed to deliverMeasured and Indicated resources.Low strip ratio and simple miningCascades results in October

Ongoing metallurgical test programmehas potential for further purity increasesbeyond 99.1% TGC

* JORC Resource announced to ASX on 29 February 2016** Scoping Study announced to ASX on 22 March 2016

BKT is conducting a Pre Feasibility Study of its

Mahenge Graphite Project

Graphite resource discovery of 131Mt @7.9% TGC*

including 37.6Mt@ 10.2% TGC. Potential to have

the lowest operating costs in Tanzania

Exceptional metallurgical characteristics achieving

>99% TGC flake purity with scope for further

improvement. Premium pricing for premium flake

Potential to manufacture spherical graphite for

Lithium Ion Batteries (LIBs) without chemical

purification. Additional price premium on success

Pre Feasibility Study underway utilising a World

class technical team. Simple logistics

Comprehensive spherical graphite testprogramme underway in parallel tometallurgical test programme

Planned for completion September tofollow up on positive Scoping Studyresults**


Exceptional metallurgical results

Potential to manufacture premium

spherical graphite by minimising or

possibly avoiding the costly and

environmentally sensitive acid

purification step.

Results achieved for Ulanzi oxide,

Ulanzi primary and Epanko North

primary mineralisation.

Expandable graphite test results show

excellent characteristics*.

Spherical testing underway in Europe,

Japan and USA

Cascades met test work underway

Table 1. Size and TGC assay results for Ulanzi oxide Bulk sample

>99% TGC purities achieved from simple flotation.

Across ALL size fractions

Screen Size Mass% TGC

AssayCumulative

Weight

WeightedAverage

Purity TGC%

+300 µm 17.4 98.8 17.4 98.8

+180 µm 34.8 99.2 52.2 99.1

+150 µm 10.4 99.0 62.7 99.1

+106 µm 14.7 98.8 77.4 99.0

+75 µm 11.1 99.4 88.5 99.1

+25 µm 11.1 98.6 99.6 99.0

-25 µm 0.4 95.5 99.9 99.0

* Expandable graphite test results announced to ASX 4th August 2016


Battery grade spherical graphite

Testing conducted by independentEuropean graphite laboratory –Dorfner Anzaplan

99.98% TGC spherical graphitemade from 95.6% TGC concentratesand conventional acid purification

New 99.2% TGC feed concentratescurrently being assessed in USA,Japan and Europe

Expectation of significant reduction inacid treatment cost and

improvement in spherical productquality

Scanning Electron microscope Images showing first test batch of Mahenge spherical Graphite


Mahenge Project video


Battery flake graphite value chain

US$650-1,500/tFor flake input

93-97%

US$3-5,000/tspherical

US$7-12,000/tCoated spherical

CoatingProprietary process. Typically Japan, Korea and China

Spheronising98% Chinese dominance of this sector. Can buy this technology off-the-shelf

Flake concentrate80% Chinese dominance of this sector @90-97% TGC. We have higher quality graphite

Yields typically 30-40%

Estimated to be US$600/t to $900/t In

crea

sin

g va

lue

Seeking to avoid/minimise

this toxic process

>99% purity. Premium

pricing

higher yields expected

Potential to make spherical graphite with a

lower overall environmental footprintthan the rest of World

BKT flake and Spherical potential

Potential to manufacture outside of China

Purity 93-97%

BKT has potential to achieve price premiumsfor high purity flake concentrates

Chinese Spherical

Flake Graphite

Coated Spherical Graphite

CoatingThermal

treatment

Spherical Graphite

Acid Purification

HF/HCL

Milling/sizing Spheronising

Sizing


Graphite Marketing

Targeting the premium battery grade and expandable graphite

markets in Europe, Asia and USA

99% purity and potential for chemical free spherical graphite is attractinginterest from end users. Marketing trips well received

Bulk 99.2% TGC concentrates distributed to test facilities and end users

Processing bulk samples to manufacture tonne-sized samples of high purityflake graphite for detailed spherical graphite test work and to provideevaluation samples to end users. Flake graphite also being tested fortraditional applications

Utilising independent processing experts to provide detailed information andperformance characteristics. Manufacturing test battery cells

Targeting first offtake agreements by end of 2016


Mahenge Graphite Project details

*JORC Resource announced to ASX on 29 February 2016**Scoping Study announced to ASX on 22 March 2016

What is different about our graphite?

Mineralisation quality – purer precursor flake. Extensive regional metamorphism hasgenerated high purity coarse graphite flakes with relatively low fine flakes. These highpurity flakes are the key to being able to process high purity concentrates

Excellent purities up to 99.1% TGC from simple flotation alone across size fractions andacross all mineralisation types. This is a premium graphite product. Higher proportion ofcoarse and jumbo flake compared to Mozambique and vanadium free

Largest and highest grade JORC resource in Tanzania. 131Mt@ 7.9% TGC* with highgrade portion of 37.6Mt @10.2%. Highest grade compared to Tanzania Peer groupprovides leverage for lower costs of production

High purity of Mahenge graphite tested to date indicate that it can be applied to thepremium battery market. Potential cost, performance and environmental advantages ifacid purification step can be minimised/eliminated. Spherical graphite testing currentlyunderway in Germany, Asia and USA

• Large Resource • Straightforward Metallurgy (large flake, >99% purity)

• High Grade • Simple mining with low strip ratio


Technical and development team

The Company has engaged a seasoned, multi-discipline team to

evaluate taking the Mahenge Project into production

The exploration team discovered and drilled out the current Mahenge resourcein <12 months. More upside developing at Cascades

BatteryLimits in Perth delivered the Mahenge Scoping Study in March this yearand are managing the Pre Feasibility Study for delivery late October

Metallurgical test work programme has delivered exceptional improvements toconcentrate purities. >99% TGC for all mineralisation types. Dorfner Anzaplanis conducting a detailed independent evaluation of Mahenge graphite.Spherical and expandable graphite test programme due August

The Company has engaged Engineering and Metallurgical group Metifex asOwner’s Representative to manage the current PFS and planned DFSprogramme

Best-in-class technical groups are assisting with spherical graphite programme


ObjectivesWe have a very pragmatic and commercial focus with a primary aim of generating significantreturns to shareholders. Black Rock Mining will look to develop a mine over the next 12-24months as we progressively demonstrate a clear pathway for a sustainable long life operation.

Our objectives are:

Lowest cash costs of production in Tanzania and to make products technically superior topeers in the Industry

To understand what product we can consistently produce over the life of mine. Indications todate are highly encouraging with >99% TGC high purity flake concentrate and coarse sizingcombining to make a premium graphite flake product. Downstream processing options beingassessed

To match our graphite attributes to customer requirements, match offtake to plannedproduction, evaluate selling a range of graphite products into different applications, developdownstream value-added options;

To work in harmony with the local community for a long term, sustainable partnership


Cascades DiscoveryCascades has potential to be a stand-alone

resource with coarser flake size and higher

grades than Ulanzi. Drilling to date shows

what were interpreted to be narrow

stringers of north-south trending graphite

mineralisation are actually 2-3 wide zones

Assay results expected October

Drilling at 50m centres to to facilitate earlyresource calculation

Adjacent to Ulanzi Resource

Drilling since Mid July revealed consistentwider graphitic zones up to 200m

35 holes drilled to date

Metallurgical samples collected forassessment – representative surface bulksamples and diamond core along strike

Ulanzi

Cascades

Image showing Ulanzi and Cascades localities. Red triangles are completed drill holes at Ulanzi. Pink diamonds are drilled Cascades RC holes. Blue circles and yellow stars are proposed holes.


Cascades Discovery (cont’d)

Cascades drilling to date shows what

were interpreted to be narrow stringers of

north-south trending graphite

mineralisation are actually 2-3 wide zones

of consistent mineralisation

Close-spaced drill holes at 50m centreswill facilitate rapid conversion to resourcestatus once assays are returned inOctober

Western portion of structure is returningcoarser flake than Ulanzi

Image showing Cascades drilling with pale grey overlay showing surface outcrop of graphite minerlaisation. Pink diamonds are drilled Cascades RC holes. Blue circles are proposed holes.


Development Pathway

Exploration DevelopmentConstruction & Production

Tenure Scoping Study DFS delivery

Community engagement

Metallurgical test work and resource update

Financing

Commence exploration

Pre-feasibility study

Construction

Maiden drill programme

Environmental studies

Production

Infill drill Epanko North

Offtake marketing

Drill Ulanzi and Cascade

Plant design & logistics

Maiden JORC

resource

Government approvals

Full feasibility Study

Achieved 2016 2017/18

= Completed = Underway = Planned

Description Due Date

Drill stage II metallurgical test holes and take bulk samples

July 16

Spherical, expandable graphite testprogramme (I)

Aug 16

Complete infill drilling to determine Measured and Indicated Resources. Announce updated resource

Sept 16

Complete Pre-Feasibility Study Oct/Nov16

Bulk spherical and expandable graphite testprogramme (II)

Oct 16

Metallurgical test programme Ongoing 16

Offtake marketing programme Dec 16

Mining License, environmental, social,logistics

Dec 16

DFS Mar17

Financing April17


Summary: The Value Proposition

The Largest high grade JORC resource in Tanzania. Cascades will addto this resource base

Superior metallurgy. Testing to date demonstrates >99% flakeconcentrate can be made from a basic flotation process – for all oretypes and across saleable size fractions. Premium pricing achievable

Comprehensive testing underway to determine the potential to makeacid purification free spherical graphite

Positive Scoping Study results. Pre Feasibility Study due Oct/Nov.Straightforward Logistics. Graphite marketing underway

An opportunity to establish a low cost, long life sustainable operationfrom flake graphite production to value added spherical graphite

A motivated team in place - delivering results

Black Rock Mining is progressively de-risking the Mahenge Project


Thank You

Mr. Steven Tambanis

Managing Director

Office: +61 8 9320 7550

[email protected]

Mr. Gabriel Chiappini

Director

Office: +61 8 9320 7550

[email protected]


Cascades Drilling

Drilling RC139 at Cascades. Image shows extensive outcropping graphitic mineralised gneiss on right hand side.


Appendix Slide: Ulanzi Diamond Drilling

Drilling DD21 metallurgical diamond core hole at Ulanzi. Representative samples have been taken across the Ulanzi structure for variability testing.


Appendix Slide: Excellent expandable graphite test results

Conducted by independent Europeangraphite laboratory – Dorfner Anzaplan.

Mahenge graphite is highly suitable forexpandable graphite applications

Up to 580 times expansion ratio forcoarse flake which is superior to currentexpandable graphites in marketplace

Expandable graphite is used for thermalinsulation and heat dissipation forelectronics, graphite foils for gaskets,insulation and fire proofing

Scanning Electron microscope Images showing thick raw graphite flakes before intercalation and expansion


Appendix slideASX Peer Comparison – total resource size

Source: ASX Company announcements. Market Capitalisation as at 02 September 2016Source: ASX Company announcements. Cash position post capital raisings as at 29May16

• BKT has discovered the largest high grade resource in Tanzania with excellent metallurgy• Is undervalued compared to peers

Company

Market Resource Grade Cont.

TypeResource Category

(JORC)Project Location

Enterprise EV/Tonne

Cap Size (TGC%) Graphite Value Graphite

($M) (Mt) (Mt) A$m A$/t

Syrah Resources (SYR) $1,073 1,150 10.2% 117 Flake Measured, Ind, Inf Mozambique 773 $6.61

Triton Minerals (TON) (Suspended) $30 1,457 10.7% 155 Flake Indicated, Inferred Mozambique 29.7 $0.19

Metals of Africa (MTA) GLOBAL $15.0 83.5 8.8% 7.4 Flake Measured, Ind, Inf Mozambique 13.5 $1.84

Black Rock Mining (BKT) $45.0 131.1 7.9% 10.4 Flake Indicated, Inferred Tanzania 42 $4.06

Volt Resources (VRC) $67 214.4 5.1% 10.9 Flake Indicated, Inferred Tanzania 61.4 $5.62

Magnis Resources (MNS) $344 174 5.4% 9.40 Flake Measured, Ind, Inf Tanzania 339.42 $36.12 Tanzania

KNL global resource (KNL) $53 89.1 7.4% 6.6 Flake Measured, Ind, Inf Tanzania 50.7 $7.69 Weighted

IMX Graphex (GPX) $24.0 9.2 10.7% 0.98 Flake Indicated, Inferred Tanzania 23.3 $23.78 Average

Walkabout Resources (WKT) $8.0 15.3 10.1% 1.5 Flake inferred Tanzania 7.7 $5.15 $16.41

Talga Resources (TLG) $54.0 8 24.4% 1.85 amorph Indicated, Inferred Sweden 49 $26.49

Lamboo (HXG) Hexagon $32.0 17.2 4.6% 0.8 Flake Indicated, Inferred Australia (WA) 31.5 $39.38

Archer Exploration (AXE) $8.00 5 7.6% 0.4 Flake Measured, Ind, Inf Australia (SA) 7 $17.50

Valence Industries (VXL) (suspended) $22 3 11.7% 0.35 Flake Indicated, Inferred Australia (SA) 21.4 $61.14 Aust. Av.

Lincoln Minerals (LML) $21.00 2 15.1% 0.33 Flake Indicated, Inferred Australia (SA) 20.03 $60.70 $44.68


Appendix Slide:Ulanzi cross section & block model

Cross sectional view of Ulanzi mineralised lode showingmineralisation on top of steep dipping ridge structures, idealfor low cost mining. Mining strip ratio is expected to be < 1:1Waste:Ore.

Block model draped over 3D topography showing Ulanzi andCascade. View looking to the North.


Appendix Slide:Mahenge Resource table summary

Tables showing overall and individual resources by tonnes,grade (TGC%) and JORC classification category

Category

Tonnes

(Millions)

TGC

(%)

Contained TGC

(Millions tonnes)

Indicated 52.5 7.7 4.0

Inferred 78.6 8.1 6.4

TOTAL 131.1 7.9 10.4

Prospect Category

Tonnes

(Millions)

TGC

(%)

Contained TGC

(Millions tonnes)

Ulanzi Indicated 35.0 8.3 2.9

Inferred 45.5 8.7 4.0

Sub-total 80.5 8.5 6.9

Epanko Nth Indicated 17.6 6.4 1.1

Inferred 20.8 5.9 1.2

Sub-total 38.4 6.1 2.3

Cascade Indicated - - -

Inferred 12.3 9.5 1.2

Sub-total 12.3 9.5 1.2

COMBINED INDICATED 52.5 7.7 4.0

INFERRED 78.6 8.1 6.4

TOTAL 131.1 7.9 10.4


CommunityThe Company is proud to work closely with the localcommunity. In addition to employment we havecontributed to refurbishment of classrooms at MawengeSecondary College and donated the first computer andinternet access for the use of students

Photographs of the Mawenge Secondary College Chemistry and Geographybuilding before and after refurbishment


Mahenge Project Area 530km2 of tenure

The Epanko north, Ulanzi andCascades graphite zones containTanzania’s largest and highest gradegraphite resource. Additional drillingwill yield more graphite mineralisation

60km from Ifakara – 128kva mainspower from the nearby KidatuHydroelectric plant and a rail head toDar es Salaam Port (Tazara Line)

Green zones represent mappedgraphite bearing lode structures withinthe Mahenge north tenement.

Significant additional resourcepotential between Ulanzi and Epankonorth, plus 22km of untested graphitelodes at Kituti

REALISING THE TIZIR VISIONMelbourne Mining Club Cutting Edge

13 September 2016

2

MDL OVERVIEW

• MDL’s primary asset is a 50% interest in the TiZir joint venture (‘TiZir’), which owns the Grande Côte mineral sands operation (‘GCO’) in Senegal, West Africa and the TiZir Titanium & Iron ilmenite upgrading facility (‘TTI’) in Tyssedal, Norway. ERAMET of France is MDL’s 50% joint venture partner in TiZir.

• MDL’s product suite includes zircon, titanium feedstocks (ilmenite, rutile, leucoxene and a high-grade chloride titanium slag) as well as a high purity pig iron (‘HPPI’).

FORWARD LOOKING STATEMENTS

• Certain information contained in this report, including any information on MDL’s plans or future financial or operating performance and other statements that express management’s expectations or estimates of future performance, constitute forward-looking statements. Such statements are based on a number of estimates and assumptions that, while considered reasonable by management at the time, are subject to significant business, economic and competitive uncertainties. MDL cautions that such statements involve known and unknown risks, uncertainties and other factors that may cause the actual financial results, performance or achievements of MDL to be materially different from the company’s estimated future results, performance or achievements expressed or implied by those forward-looking statements. These factors include the inherent risks involved in mining, operation of mineral processing facilities, exploration and development of mineral properties, changes in economic conditions, changes in theworldwide price of zircon, ilmenite and other key inputs, changes in the regulatory environment and other government actions,changes in mine plans and other factors, such as business and operational risk management, many of which are beyond the control of MDL. Except as required by applicable regulations or by law, MDL does not undertake any obligation to publicly update, review or release any revisions to any forward-looking statements to reflect new information, future events or circumstances after the date of this report.

• Nothing in this report should be construed as either an offer to sell or a solicitation to buy or sell MDL securities.

• Expressed in United States dollars unless otherwise stated.

STATEMENTS

3

SIGNIFICANT MINERAL SANDS EXPERIENCE

• Significant mineral sands industry experience

- acquisition of Hawks Nest operation from BHP in 1998

• Management significantly involved in resource sector development in Senegal

• Key asset is a 50% interest in the TiZir joint venture (‘JV’)

- MDL balance sheet dominated by JV investment ($185m) and loans to the JV ($72m)

- MDL effectively has zero net debt

• Share register transitioning

- top 10 shareholders own 68%

- major shareholder is Allan Gray Australia Pty Ltd (17.5%)

• Recent share price volatility a function of:

- improving sector sentiment

- ramp up and operational optimisation

- improving trading liquidity

- recent operational incident at TTI

MDL – 50% OWNERSHIP OF THE TIZIR JOINT VENTURE

Share price (as at 12 September 2016) A$0.315

Shares on issue 103.7m

Market capitalisation A$32.7m

12 month high A$0.62

12 month low A$0.175

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AN INTEGRATED PRODUCER OF HIGH GRADE ZIRCON AND TITANIUM SLAG

THE TIZIR JOINT VENTURE

TIZIR SNAPSHOT

• GCO mine

- high quality zircon, ilmenite (largely consumed by TTI), rutile and leucoxene

- 25 year expected mine life

• TTI facility

- operating since 1986

- current capacity of 230ktpa chloride titanium slag & 100ktpa of HPPI

• Capital expenditure program complete

- GCO ~$650m mine construction

- TTI ~$70m smelter upgrade & expansion

• 1H 2016 balance sheet

- total assets of $969m (net assets $473m)

- funded by: corporate bond ($275m), working capital facilities (drawn to $80m) and shareholder loans ($191m)

• Experienced management teams at GCO & TTI

THE TIZIR JOINT VENTURE

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INTEGRATION STRATEGY FOCUSED ON MAXIMISING RETURNS AND MINIMISING RISK PROFILE

Flexible production

• Able to produce two types of upgraded titanium slag (chloride or sulphate)

• Emphasis on maximising returns

• Ability to respond to changes in market dynamics

BENEFITS OF INTEGRATION

Minimise risk profile

• GCO offtake security limits exposure to lower value, more volatile ilmenite markets

• TTI supply security mitigates exposure to ilmenite price risk

Improved margins

• Cost efficiencies

• Maximise value on sale

• Targeted production capacity expansion (approx. 15%)

Chloride slag focus

• Strong market fundamentals

• Higher margin product

• Produced using GCO ilmenite

• Prior history of chloride slag production at TTI

• Logistical advantages for customer access (Europe & North America)

• Environmental benefits

7

KEY FOCUS IS OPERATIONAL OPTIMISATION

GCO STATUS UPDATE 2Q 2016

Excellent logistics

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HMC Ilmenite Zircon

• Key optimisation projects underway

- maximise availability, throughput and operational consistency

• Dredge has shown ability to operate consistently at rates above 7,000tpoh

- average throughput rate of 7,350tpoh for the month of June

• Significant periods where WCP has operated at or above design capacity

• Wet plant and ilmenite circuit of the MSP dry plant operating to expectations

- significant improvement in zircon yields following completion of a number of optimisation projects during 2Q 2016

• With improved production levels and record sales in 1H 2016, GCO achieved its first half-year of positive cash flows

8

• On the back of strong sales performance, TTI achieved a positive EBITDA of US$6m for 1H 2016

• Up until 15 August 2016, ramp up of operations was proceeding well with the furnace, in particular, exceeding expectations

• Periods during 2Q where the furnace was operating close to expanded nameplate capacity

• Both chloride slag and iron specifications have been consistent with expectations and well received by the market

• As announced, an operational incident occurred at TTI on15 August 2016

- insurance claim with respect to property damage and business interruption in progress

- no connection between the incident and the recent project to expand furnace capacity

TTI STATUS UPDATE 2Q 2016

FURNACE RELINE AND CAPACITY EXPANSION PROJECT COMPLETED SUCCESSFULLY

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INDUSTRY STRUCTURE CONTRIBUTES TO IMPROVING MARKET DYNAMICS

MINERAL SANDS MARKET UPDATE

RECENT INDUSTRY DEVELOPMENTSINDUSTRY CHARACTERISTICS INDUSTRY OUTLOOK

• Pricing currently at historic lows

• Industry response by major producers

- match production to demand

- closures/idled capacity

- inventory destocking

• Greenfield & brownfield investment cancelled or deferred

• Increasing rationalisation in China

• Excess capacity and some inventory overhang prevail

• Supply-chain for TiO2 pigment is long and highly consolidated

• Demand and global GDP strongly correlated

• Opaque product pricing

• Emergence of China in 2010

• Confirmed signs of market recovery

• Tighter market for chloride slag continues to justify strategy

• Increasing global pigment demand

- several price increases for producers since end 2015, with potential for more

• Downstream pigment users enjoying healthy margins

• Financial pressures encouraging consolidation and rationalisation

Sahar to update based on new images selected

10

Significant value leverage

• Present market value not reflective of current industry fundamentals and asset replacement value

• Improving sector outlook presents opportunity for significant value leverage

Substantial five year capital program complete

Realisation of benefits from implementation of recent corporate strategy

• Integrated operation to maximise margin and minimise risk

Improving financial performance at TiZir even in the current commodity price environment

50/50 Partnership with ERAMET, a major global player in manganese and nickel mining & smelting

A STRONG PLATFORM FROM WHICH TO GROW SHAREHOLDER WEALTH

SIGNIFICANT LEVERAGE FOR SHAREHOLDERS & NEW INVESTORS

CONTACT DETAILS

For further information please contact:

Rob SennittManaging Director

Greg BellChief Financial Officer

Level 17, 530 Collins StreetMelbourne Victoria 3000 Australia

T +61 3 9618 2500F +61 3 9621 1460E [email protected] mineraldeposits.com.au

resourcing a renewable future… - melbourne mining …...titanium metal is used for a wide range of...

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