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S E P T E M B E R 2 0 1 8
AFRITIN MINING LTD.C O R P O R AT E P R E S E N TAT I O N
These presentation slides (the “Slides”) do not comprise an admission document, listing particulars or a prospectus relating to AfritTin MiningLimited (“the Company”) or any subsidiaryof the Company, do not constitute an offer or invitation to purchase or subscribe for any securities of the Company and should not be relied on in connection with a decision to purchaseor subscribe for any such securities. The Slides and the accompanying verbal presentation do not constitute a recommendation regarding any decision to sell or purchase securities inthe Company.
The Slides and the accompanying verbal presentation are confidential, and the Slides are being supplied to you solely for your information and may not be reproduced or distributed to anyother person or published, in whole or in part, for any purpose. No reliance may be placed for any purpose whatsoever on the information contained in the Slides and the accompanyingverbal presentation or the completeness or accuracy of such information. No representation or warranty, express or implied, is given by or on behalf of the Company or its respectiveshareholders, directors, officers or employees or any other person as to the accuracy or completeness of the information or opinions contained in the Slides and the accompanying verbalpresentation, and no liability is accepted for any such information or opinions (including in the case of negligence, but excluding any liability for fraud).
The Slides contain forward-looking statements, which relate, inter alia, to the Company’s proposed strategy, plans and objectives. Such forward-looking statements involve known andunknown risks, uncertainties and other important factors beyond the control of the Company that could cause the actual performance or achievements of the Company to be materiallydifferent from such forward-looking statements. Accordingly, you should not rely on any forward-looking statements and the Company accepts no obligation to disseminate any updatesor revisions to such forward-looking statements.
The Slides and their contents are directed only at persons who fall within the exemptions contained in Articles 19 and 49 of the Financial Services and Markets Act 2000 (FinancialPromotion) Order 2005 (such as persons who are authorised or exempt persons within the meaning of the Financial Services and Markets Act 2000 and certain other persons havingprofessional experience relating to investments, high net worth companies, unincorporated associations or partnerships, the trustees of high value trusts) and persons to whomdistribution may otherwise lawfully be made. Any investment, investment activity or controlled activity to which the Slides relates is available only to such persons and will be engaged inonly with such persons.
Persons of any other description, including those that do not have professional experience in matters relating to investments, should not rely or act upon the Slides.
The Slides should not be distributed, published, reproduced or otherwise made available in whole or in part by recipients to any other person and, in particular, should not be distributedto persons with an address in the United States of America, Australia, the Republic of South Africa, the Republic of Ireland, Japan or Canada or in any other country outside the UnitedKingdom where such distribution may lead to a breach of any legal or regulatory requirement. No securities commission or similar authority in Canada has in any way passed on the meritsof the securities represented hereunder and any representation to the contrary is an offence. No document in relation to the placing of the Company shares has been, or will be, lodgedwith, or registered by, The Australian Securities and Investments Commission, and no registration statement has been, or will be, filed with the Japanese Ministry of Finance in relation tothe placing or the Company’s shares. Accordingly, subject to certain exceptions, the Shares may not, directly or indirectly, be offered or sold within Canada, Australia, Japan, South Africa orthe Republic of Ireland or offered or sold to a resident of Canada, Australia, Japan, South Africa or the Republic of Ireland.
The Securities have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the “US Securities Act”) or with any securities regulatory authority ofany state or other jurisdiction of the United States and may not be offered or sold within the United States or to, or for the account or benefit of, any US Person as that term is defined inRegulation S under the US Securities Act. The Company has not been registered and will not register under the United States Investment Company Act of 1940, as amended.
The Slides and their contents are confidential and should not unless otherwise agreed in writing by AfriTin Mining Limited be copied, distributed, published or reproduced (in whole or inpart) or disclosed by recipients to any other person.
DISCLAIMER
AFRITIN |SEPTEMBER 20182
PROCESS FLOW
3
INVESTMENT CASEO B J E C T I V E : B E C O M E T H E T I N C H A M P I O N O F A F R I C A
AFRITIN | SEPTEMBER 2018
• Largest source of non-conflict tin in Africa• Healthy recoveries achievable on coarse grained pegmatite• Existing infrastructure reduces upfront CAPEX
• Well placed to exploit burgeoning tin demand• Existing demand from electronics and solders• Anticipated demand for new tech market, renewable energy and battery storage
• Managed by a knowledgeable team with a proven track record
• Phase one near production • Low CAPEX flow sheet designed to bring projects into early production• Historical production – geologically and metallurgically de-risked • Proven gravity-based processing methods yields robust economics
• Multi-site, multi-jurisdiction tin company focused on developing Africa’s tin resources
• Processing solution scalable and adaptable to various deposit sites
PROCESS FLOW
4
CONSUMPTION TRENDS – NOW & THE FUTURE
Source: ITRI, LME, Macquarie Research, MITAFRITIN | SEPTEMBER 2018
E N E R G Y T O D R I V E F U T U R E T I N U S E
R E F I N E D T I N U S E I N 2 0 1 7 M E TA L S M O S T I M PA C T E D B Y T E C H
SOLDER
CHEMICALS
TINPLATE
LEAD-ACID BATTERIES
COPPER ALLOYOTHER
US$8.23bn Global market value in 2023
18,800 USD/t Price as at September 2018
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THE SUPPLY OUTLOOKR O B U S T D E M A N D A N D S H R I N K I N G S U P P LY – R E Q U I R E S N E W C A PA C I T Y
S U P P L Y• Global tin supply is decreasing• No new tin mines• New supplies not yet explored• Global production falling faster than demand
AFRITIN | SEPTEMBER 2018
Mined tin output, kt
Source: ITRI
A F R I T I N A I M S T O C A T E R F O R I N C R E A S E D D E M A N D
EXISTING ASSETS
6
Tin Provinces of Africa
AfriTin assets Tin, Nb and Tu
Bushveld
Damara
AFRITIN | SEPTEMBER 2018
DAMARA: EXPANSIVE MINERALISATION ZONE
7
SIGNIFICANTLY UNDEREXPLORED TIN REGIONSEVERAL HUNDRED PEGMATITE BODIES
Part of the extensive Cape Cross-Uis tin pegmatite belt (northern tin belt)
Uis deposit is the most consistently mineralized pegmatite swarm in the belt
Pegmatite field is up to 50km wide in some areas, providing vast exploration upside potential
Primary mineral is cassiterite (SnO2), with secondary tantalum (Ta)and niobium (Nb) and lithium (Li)
Course-grained cassiterite crystals up to 50mm long allow for efficient gravity extraction using proven technology
AFRITIN | SEPTEMBER 2018
DAMARAUIS – FLAGSHIP ASSET
8
Uis was the largest hard-rock tin mine in the world
Existing infrastructure already in place
Pegmatite mapping confirms historic data
Fundamental mineralization confirmed along strike and at depth
Coarse-grained cassiterite considerably appealing
Scalable mining proposition of high-grade mineralized zones
Mining licenses in place
A non-JORC compliant resource of 73 mt @ 0.13% Sn was calculated with an additional 2.7 mt @ 0,015% Ta2O5
Plant commissioning expected Q4 2018
C O N F L I C T - F R E E , H A R D - R O C K T I N D E P O S I T I N M I N E - F R I E N D LY N A M I B I A
AFRITIN | SEPTEMBER 2018
MINERALISATION CONFIRMED
9
Historical footprint only a fraction of licensed area
Mapped pegmatites are up to 80m thick and over 950m along strike at surface
Mineralisation confirmed over the full extent if the pegmatites at surface
Detailed mapping programme has identified higher grade greisenised areas
Confirmed cassiterite mineralization in proximal unexploited pegmatites
Concurrent exploration will prioritise higher grade pegmatites with low stripping ratios
F O C U S E D O N G R O W T H T H R O U G H E X P L O R AT I O N
AFRITIN | SEPTEMBER 2018
AFRITIN | APRIL 2018
10
MINERALISATION
V1 Pegmatite
V2 Pegmatite
Hanging Wall
Foot Wall
Coarse grained Cassiterite
Coarse (>5 mm) crystals of cassiterite (SnO₂) have been observed throughout the pegmatites within the existing pits and in unmined surface extensions
Higher grade cassiterite mineralisation occurs within alteration zones known as greisens
During the geological mapping programme, greisen zones were delineated within the pegmatite bodies
Mapping results show that Sn-bearing greisens have an abundant distribution within the V1/V2 pegmatite bodies
Previous records indicate that some greisens may reach grades of up to 3% Sn
40m
AFRITIN |SEPTEMBER 2018
GEOLOGICAL MODEL
11
• Existing pits open-ended at depth and along strike.
• 3-D geological model created from detailed mapping and several hundred structural measurements utilizing the surface generated by satellite stereo pair.
• High level of confidence for the near surface (25m) extrapolation reducing with an increasing depth.
• Two primary targets identified extending from surface.
• Mapping and surface exposures suggests pegmatites increase in thickness with depth.
Current Surface
Post Mining Surface
AFRITIN | SEPTEMBER 2018
HISTORICAL RESOURCES
12
M L 1 2 9 *
Commodity Tonnes of ore Grade (%)
Tonnes of Mineral
Sn1,379,906
0,074 1 085
Ta2O5 0,015 191
M L 1 3 4 *
Commodity Tonnes of oreGrade
(%)Tonnes of Mineral
Sn 70,323,750 0.136 95 640
M L 1 3 3 *
Commodity Tonnes of oreGrade
(%)Tonnes of Mineral
Sn1,332,598
0,072 1 043
Ta2O5 0,015 188
tonnes of tin tonnes of tantalum
Uis LicenseML134
Tsaurob License ML129
Nainais license ML133
• Non JORC Compliant, source SRK report 1989
Potential for lithium co-production
Rossmanite (tourmaline) sample found in the license areas
AFRITIN | SEPTEMBER 2018
AFRITIN | APRIL 2018
13
REGIONAL EXPLORATION
> 180 unexplored pegmatites were delineated within 5km of the Phase 1 Plant location
95% of these pegmatite bodies displayed visible tin mineralisation at surface
Multiple pegmatites contained artisanal working, implying significant coarse grained mineralisation
The morphology of the additional pegmatites closely resemble the bodies found in the existing mine area
W17 pegmatite was intersected at a depth of 14m during wellfield drilling operations
67 meters intersection of the W17 pegmatite displayed visible cassiterite grains over the entire intersection
AFRITIN | SEPTEMBER 2018
V1/V2 PIT DESIGN
14Copyright © Afritin Mining Ltd. - Confidential
P h a s e 1
P h a s e 3V2 Pit
V1 Pit
P h a s e 4
P h a s e 2
The combined mine plan delivers 2.75 million tonnes (represents 3% of the historical resource) of pegmatite at an average waste stripping ratio of 1:1
At 0.5 Mtpa ROM the mine design provides a sufficient inventory to supply the Phase 1 processing plant with ore for more than 5 years
Mine design exploits outcropping pegmatites and excavations of the historical Uis Mine
Demonstrates the potential for fast production ramp-up
Mining method entails conventional open pit mining with excavator-truck combination
AFRITIN | SEPTEMBER 2018
15
METALLURGY
6% 6% 6%
74%82% 78%
4% 2% 3%
5% 2%1%
10% 8% 10%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
95% - 6mm 95% - 3.35mm 95% - 2mm
Floats 2,90
Floats 3,10
Floats 3,30
Sinks 3,30
Slimes
HLS results – Tin deportment
5% 7%13%
30%
47%
70%
2%
2%
3%
2%
0%
1%
63%
44%
13%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
95% - 6mm 95% - 3.35mm 95% - 2mm
Floats 2,90
Floats 3,10
Floats 3,30
Sinks 3,30
Slimes
HLS results – Tantalum deportment
• Coarse grained allowing for efficient processing, competitive advantage
• HLS tests show Sn recoveries >74% at concentrate grades of >67% Sn
• DMS pre-concentration tests shows 80% rejection of waste and 90% recovery of tin metal
• Overall recovery for tin and tantalite concentrates is ±65-70%
• Tantalite associated with the Concentrate
• Final concentrate grade between 63-66% Sn
• First Tin metal smelted.
Sn Phase One Concentrate
Final Concentrate Drying
AFRITIN | SEPTEMBER 2018
First Tin Metal Product
BENEFICIATION PROCESS
16
• The process flow design for the beneficiation plant is well-advanced
• The plant design is informed by the process flow of the historical Uis Mine, known to have been an efficient operation with multiple stages of beneficiation
• AfriTin have opted for Dense Medium Separation (DMS) modules as opposed to the historic jigging circuit
• DMS is regarded as capable of delivering superior separation efficiency
• DMS is one of the simpler gravity processes used for separating minerals of different Specific Gravities (SG)
• DMS combined with a fine gravity concentration circuit will form the backbone of the beneficiation plant
AFRITIN | SEPTEMBER 2018
Copyright © AfriTin Mining Ltd. - ConfidentialAFRITIN | JUNE 2018
Planned location of phase 1 plant
PLANT DESIGN
17
Equipment such as bins, feeders, conveyors, etc. have been designed in 3D, prior to fabrication and construction.
Structural Design:• 3D modelling of the structures has
been done for the comminution circuit
• Shop detailing is in progress for the workshop, stores and crushing plant areas.
Copyright © AfriTin Mining Ltd. - ConfidentialAFRITIN | SEPTEMBER 2018
Planned location of phase 1 plant
PLANT CONSTRUCTION
Plant location in close proximity to the plant
18
Gabion, retaining wall construction
Primary Stockpile Excavation
PROCESS FLOWMARKET BALANCE
P R I C E O U T L O O K – J A N ’ 1 8 L M E T I N S T O C K S L O W E S T S I N C E ’ 8 0 s
19AFRITIN | SEPTEMBER 2018
Full
Cost
US$
/t
% of cumulative global tin production
Source: ITRI
P h a s e 2 ( w i t h o u t T a c r e d i t s )
1 3 , 0 0 0
PROCESS FLOW
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DEVELOPMENT TIMELINE
AFRITIN | JUNE 2018
2017 2018 2019
Q4 Q1 Q2 Q3 Q4 Q1 Q2
Uis Pilot Plant Phase 1
Design
Procurement
Construction
Commissioning
1st Concentrate Production
Operation Ramp Up
Uis Exploration Phase 1
Data Acquisition & Modelling
Confirmatory Drilling
Sampling & Analysis
Resource Modelling
The project remains on track to produce first concentrate by year end and then following a project ramp up phase in H1 ‘19
Glen ParsonsChairman
CEO of Mariana Resources from 2010 until its delisting from AIM in July 201720 years’ experience both as a mining executive and investment banking
Frans van DaalenCOO
Qualified mining engineer 18 years’ operational and technical experienceCo-founder and direct of VBKom
Anthony ViljoenChief Executive Officer
Mining entrepreneur Successfully founded and directed Bushveld Minerals plc, Lemur Resources, New Kush Exploration and Mining and Greenhills Resources
Machiel OdendaalLead engineer
Qualified electrical engineer 40 years’ experienceChief engineer at various mining operations in Southern AfricaOwner and director of JLT Mining Services
Terence GoodlaceNED
40+ years’ experience in miningCurrently NED at Gold Fields and Kumba Iron Ore LimitedAppointed onto South African Mining Extraction Research, Development and Innovation steering committeePreviously Gold Fields COOPreviously Metorex Limited CEOPreviously Impala Platinum CEO; NED
Timothy MaraisExploration Manager
Qualified exploration geologist 6 years’ experience Worked on multiple commodity experience across Africa Focus on project development, management and near-term value realisation
Laurence RobbNED
Professor of Economic Geology and Director of the Economic Geology Research Institute in the University of the Witwatersrand’s School of Geosciences Technical Director of Savannah Gold Ltd
Jan RabeLead Process Engineer
Qualified metallurgical engineer 14 years’ experienceHe fulfilled various technical management rollsFounder and director of Trueground Consulting
Roger WilliamsNED
Chartered Accountant - 20 years’ international experience in mining finance Previously CFO of Randgold ResourcesPreviously CFO of AECICurrently a NED of Sylvania Platinum, Alecto Minerals and Digby Wells and Associates
Rob Sewell Robert is a CA (SA) with 12 years commercialand financial experience across variousindustries. He completed his training atDeloitte in Johannesburg and also gainedinternational experience during a secondment to the Deloitte Sydney office.CFO
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A TEAM TO DELIVER
AFRITIN | SEPTEMBER 2018
22
APPENDIX
AFRITIN | SEPTEMBER 2018
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JURISDICTION - NAMIBIA
Road between Uis and Walvis Bay
Walvis Bay Port currently being expanded
S TA B L E I N V E S T M E N T D E S T I N AT I O N
Particularly complimentary when it comes to mining and exploration with a transport infrastructure working in accordance
Namibia is a stable democracy with an independent strong legal system
The country encourages foreign investment
Long established mining act - Mining law in Namibia is mainly regulated by the Minerals Act 33 of 1992 which was amended in 2008
Mining is the biggest contributor to Namibia’s economy in terms of revenue. Consequently it is an important industry
Fraser Institute lists Namibia number 53 globally in terms of investment attractiveness and number 38 globally in terms of policy perception.* Corruption Perceptions Index 2016
4th most transparent country in Africa
AFRITIN | SEPTEMBER 2018
PROCESS FLOW
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OTHER ASSETS
M O K O P A N E T I N P R O J E C T
• Exploration license 2205PR over six farms covering 13253 Ha
• Exploration license 2371PR over three additional neighbouring farms awaited
• Four targets identified on farms, exploration conducted on two targets to date, with 18,447 tons contained Sn resource established
• Scoping study completed October 2014• Base case RoM of 691ktpa to produce ~700tpa of
99.5% Sn purity metal, yields positive economics with a significant IRR of 34.6%
• Low quartile operating costs: US$14,276/tonneof tin metal produced (as of 24 September 2014)
• Potential additional 5,000 tonnes contained Sn resource in the Underground Lease target area
• Greenhills interest = 74%, 26% held by local Black Economic Empowerment partners
Mokopane Tin Project
AFRITIN | SEPTEMBER 2018
Registered office18 - 20 Le PolletSt Peters PortGuernseyRepresentative office2nd Floor, Building 3Illovo Edge Office ParkCorner Harries & Fricker RoadIllovoJohannesburg, 2116South AfricaTel: +27 11 268 6555
Anthony Viljoen, [email protected]
Broker & Nominated AdvisorWH Ireland
24 Martin LnLondon
EC4R 0DRUnited Kingdom
Legal Counsel South AfricaEdward Nathan Sonnenberg
150 West Street SandownSandton
Johannesburg 2196 South Africa
I
Legal Counsel - UK4 More London Riverside
London SE1 2AU
United Kingdom
Joint Broker8-10 Grosvenor Gardens
LondonSW1W 0DH
Investor Relations – UK1 CornhillLondon
EC3V 3NDUnited Kingdom