Goondicum Project / Belridge Enterprises

The Goondicum mine is a high-grade ilmenite mine located in Queensland, Australia.

Investment Thesis

Significant Resource
  • Substantial resource base with significant potential for expansion within existing and adjacent exploration license areas
  • Total Indicated Resources are 31.3 million tonnes at 6.1% ilmenite and 15.6M tonnes at 5.1% ilmenite in ML80044 and MLA80141 respectively
  • Total Inferred Resources are 30.9 million tonnes at 6.3% ilmenite and 12.3M tonnes at 5.2% ilmenite in ML80044 and MLA80141 respectively
Low CAPEX Re-start
  • +80kt of historical production and over A$120m invested by previous owners
  • Low CAPEX to achieve annual ilmenite production of up 215ktpa
  • Additional infrastructure improvements being worked on to further reduce OPEX

Financial Metrics*

  • An after-tax Project NPV of US$52.8 million
  • An after-tax Project IRR of 178%
  • An after-tax Project payback period of 1.2 years
  • Restart capital costs of US$5.96 million
  • Average annual before tax cash flow of US$13.9 million3 and average after tax cash flow of US$11.2 million
  • Average unit operating cash cost of production of US$111.80 FOB per tonne of product
  • Sustaining capital over the mine life of US$11.39 million
Operating Metrics*
  • Average annual ilmenite production of 181,000 tonnes with peak production of 228,000
  • Average annual apatite production of 31,000 tonnes with peak production of 41,000 tonnes
  • A mine life of 9 years using a high-grade mine plan
  • Total resource processed over the LOM of 22 million tonnes at an average ilmenite and apatite grade of 9.7% and 1.8% respectively

Strong Board & Management

  • Our new Board of Directors is composed of industry leaders with deep sector knowledge
  • Acquired management team has in-depth operational experience with the mine
Strong Market Fundamentals
  • Ilmenite market experiencing strong and growing demand, specifically from Asian pigment producers

Large Existing Resource Base

Goondicum Resource

  • The Goondicum deposit is comprised of near- surface, ilmenite-rich oxidized gabbros
  • Continuous high-grade, surface-lying portion of the resource at 10.1-12.9% available ilmenite
  • Apatite also produced as a by-product, enhancing production and cash flow profile
  • Potential to recover additional titanomagnetite and feldspar by-products

Significant Opportunity for Mine Extension

Resource Expansion

  • The current mining lease occupies only 20% of the Goondicum crater
  • The crater has potential to show similar geology and mineralization to the current mining area offering significant exploration upside
  • Goondicum holds exploration licenses for the remainder of the crater

Goondicum Crator

Mining and Processing Facilities

  • Simple mining process using standard earth moving equipment
    - No overburden
    - No drill and blast
    - Short haul distances
  • Ore being processed by a feed preparation plant and wet concentration plant using a conventional extraction process including scrubbers, screens, cyclones, gravity spirals and magnets
    Processing plant has a design throughput of 375tph


Supporting Infrastructure

  • The products are trucked 260km to a port facility at Gladstone where it is shipped to final customers
  • Opportunity to reduce trucking distance to 160km through the construction of a new 22km mine access road, reducing logistics costs significantly
  • Fully-operational port with bulk loading facilities available
    -  35kt storage facility located at the port
  • Extensive installed utilities
    -  35km water pipeline
    -  26km grid-connected power line

*  As per Preliminary Economic Assessment (PEA), independently prepared by TZ Minerals International Pty Ltd in accordance with the guidelines of Canadian National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”).

The PEA is preliminary in nature and includes Inferred Resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral Reserves, and there is no certainty the PEA will be realized.

Based on the work carried out in this PEA and the preliminary economic evaluations contained therein, management believes a positive business case has been supported for the restart of operations of the Goondicum project. The IRR of the Goondicum project is high which is consistent with the brownfield nature of the project and low restart capital costs. This is also reflected in a short payback period.