The document summarizes an investment conference focused on rare earths projects around the world. It includes an agenda item on a company called Montero Mining that is developing a rare earth deposit in Tanzania. The document provides background information on rare earth elements, their applications, and the global market. It then summarizes Montero Mining's Wigu Hill project in Tanzania, which has sampled grades up to 26.2% rare earth oxides, making it one of the highest grade rare earth deposits globally. The document also briefly outlines Montero Mining's uranium and phosphate exploration projects in Tanzania and other regions.
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Objective Capital Rare Earth and Minor Metals Investment Summit: Developing a high grade rare earth deposit in Tanzania - Tony Harwood
1. Investment Conferences
RARE EARTHS, SPECIALITY
& MINOR METALS
INVESTMENT SUMMIT
3.20 – 3.45
Focus on rare earths projects around the world
Developing a high grade rare earth deposit in Tanzania
Dr Tony Harwood – CEO, Montero Mining
THE LONDON CHAMBER OF COMMERCE AND INDUSTRY ● THURSDAY, 18 MARCH 2010
www.ObjectiveCapitalConferences.com
3. Disclaimer
This presentation contains “forward-looking statements”.
These forward-looking statements are made as of the date of this presentation and Montero
Mining & Exploration Ltd. does not intent, and does not assume any obligation, to update
these forward-looking statements.
Forward-looking statements include, but are not limited to, statements with respect to the
timing and amount of estimated future exploration, success of exploration activities,
expenditure, permitting and requirements for additional capital and access to data.
Forward-looking statements involve known and unknown risks, uncertainties and other
factors which may cause the actual results, performance or achievements of the Company to
be materially different from any future results, performance or achievements expressed or
implied by the forward-looking statements. Such factors include, among others, risks related
p y g , g ,
to actual results of the current exploration activities; changes in project parameters as plans
continue to be refined; the ability to enter into Joint Ventures or to acquire or dispose of
property interests; future prices of mineral resources; accidents; labour disputes and other
risks of the mining industry; ability to obtain financing; and delays in obtaining governmental
approvals.
4. What are Rare Earth Elements?
Rare Earth Elements are a collection of 17 chemical
elements on the periodic table, mainly Scandium (Sc),
Yttrium (Y) and the 15 lanthanoids
lanthanoids.
Light Rare Earths include the elements; La, Ce, Pr, Nd, Pm and Sm.
Heavy Rare Earths include the elements; Eu, Gd, Tb, Dy, Ho, Er,
Tm, Yb, and Lu, these are the most valuable.
The phrase "rare earth" arises from the rare earth metals from which
they were first isolated in the late 18th Century.
5. What are the Rare Earth Elements?
Light REE:
La: Lanthanum
Ce: Cerium
Pr: Praseodymium
Nd: Neodymium
Pm: Promethium
Sm: Samarium
Heavy REE:
y
Eu: Europium
Gd: Gadolinium
Tb: Terbium
Dy: Dysprosium
Ho: Holmium
Er: Erbium
Tm: Thulium
Yb: Ytterbium
Lu: Lutetium
6. Rare Earth Applications
Key for
Electronic Applications Green Energy
Energy
LCD Monitors Economy
MRI machines
TV Screens Green Energy Applications
Fiber Optics Solar Panels
Lasers Wind Turbines
Rare LED lighting
NiMH batteries
Earths
Other Applications
UV Resistant Glass
Polishing Compo nds
Compounds Magnetic Applications
Fertilizer Power Generation
Medical tracers Catalysts
Hybrid Car motors and automotive parts
Colourants & Sensors Processing of Chemicals
MP3 Player earbuds
Optical Glass
p Catalytic Convertors
Hard Disk Drives
Fluorescent Lighting Gasoline Refining
Magnetic Applications for appliances
Processing
7. Key for Green Energy Economy
REE’s extraordinary expanding uses have named them the “catalysts for high
tech-living” with their unique magnetic, fluorescent and chemical properties. REE’s are
critical to 21st Century technological progress & environmentally sustainable development.
Higher profile applications include: neodymium high-strength magnets - used in
powerful compact motors for electric and hybrid cars
High efficiency energy saving light bulbs, gasoline refining processing
MRI machines in hospitals, TV and computer screens
Hybrid Electric Hybrid NiMH Battery
Motor & Generator
REE’s play an instrumental role
in Hybrid technology
Hybrid cars contain
approximately 30kgs of REE’s
8. Key for Green Energy Economy
REE’s are the building blocks and foundations for new materials technologies that are required
g g q
to sustain today’s modern society.
Making solar panels more efficient
Magnetic applications f
M ti li ti from MP3 player ear b d t h d di k d i
l buds to hard disk drives
New materials creating in thin micro films and high strength magnets
Renewable energy applications: solar power, wind turbines
Increased energy efficiency in electrical motors LED lighting
motors, lighting,
rechargeable batteries, LCD monitors and many consumer electronics
9. China Dominates REE Production
China produces > 97% of g
p global
REE supply
Bayan Obo mine, China, world’s
largest REE resource
China imposed export quotas and
tariffs on REE’s
Japan is totally reliant on China
for supplies Source: http://pubs.usgs.gov/fs/2002/fs087-02/
y
Can the West rely on a singleg
foreign source of supply of this
strategic commodity?
10. Global Rare Earths Market
Does not factor-in estimated new technology growth by 50% in 2015
2010 is forecast to see the growth of new high technology application
and inventory restocking
2010 could be start of a Global REE scarcity
11. Global Rare Earths Market
Global China
2010 Demand 140,000 tonnes 100,000 - 130,000
tonnes
2014 Forecast 200,000
200 000 tonnes 120,000
120 000 tonnes
Producing Capabilities 160,000 tonnes1
Export Quotas Reducing by 6-7%
Demand 25% of ALL new technology require REE’s
Current Mine Supply No REE’s in 15 years
1 only if existing projects are still operational
2010 could see demand start to outstrip supply with the
increasing use of new technology
12. Rare Earth Element Prices
% Global
Light Rare Earths Principal Uses Price US$/kg
Demand 2012
Lanthanum Oxide 28.4 Re-chargeable Batteries 5.30 – 5.80
Cerium Oxide 36.6 Catalyst, glass, polishing 3.90 – 4.40
Praseodymium Oxide 3.7
37 Magnets,
Magnets glass colourant 25.50 26.00
25 50 – 26 00
Neodymium Oxide 20.5 Magnets, lasers, glass 26.50 – 27.00
Samarium Oxide 1.1 Magnets, lighting, lasers 4.25 – 4.75
Heavy R
H Rare E th
Earths Principal U
P i i l Uses Price US$/k
P i US$/kg
Europium Oxide 0.6 TV colour phosphors: red 470.00 – 490.00
Terbium Oxide 0.3 Phosphors: green, magnets 420.00 – 440.00
Dysprosium Oxide 1.3 Magnets, lasers 130.00 – 135.00
Gadolinium Oxide 0.1 Magnets, superconductors 7.40 – 7.90
Yttrium Oxide1 6.8 Phosphors, ceramics, lasers 10.00 – 10.50
All Light and Heavy Rare Earths - 99% min except 1 Yttrium Oxide - 99.999% min
Source: Metal-Pages.com, February 26, 2010. Prices are indicated and basis FOB China
13. Wigu Hill Project - Tanzania
Highest Grade “Rare Earth” Project in Africa
g
Historic grades of 12.7% to 16.5% REO
2009 Montero Sampling up to 26.2% REO
(Neodymium = 2.63%, Lanthanum = 9.06%, Cerium = 13.1%
Gd = 1384ppm, Eu = 279ppm, Dy = 463ppm)
Uranium and Phosphate potential
15. Wigu Hill Overview
Location: 200km west of Dar es Salaam
12km to the TAZARA main line railway
Good road access all year round
35km from major town – Morogoro
Wigu Hill Project:
Mountain Pass equivalent (
q (historic p
producer in California, USA)
, )
Carbonatite dykes in a 6.4km x 3.2km complex
Average historic grades 14.5% TREO
JV to acquire 70% contribution/dilution to a NSR with buy out terms
70%, buy-out
19. 2009 ‐ 2010 Exploration Program
Exploration program to define drill targets involving:
Detailed geological mapping
Scintillometer survey
Sampling program completed (over 220 samples)
• REE and multi-element analysis
• Mineralogical analysis
Road building to drill identified targets
f
Detailed channel sampling of major dyke bodies
Location, mapping and sampling of additional d k
L ti i d li f dditi l dykes
22. Wigu Hill – Sampling Results
>200 regional grab samples
i l b l
assayed:
− 109 samples have >1% TRE2O3
average 7.4% TRE2O3
− 59 samples have >5% TRE2O3
average 11.4% TRE2O3
Most enriched has 26.2% TRE2O3
REE mineralogy simple: mostly in
coarse bastnasite
23. Wigu Hill Rare Earth Elements
Enriched in LREE:
− La+Ce+Nd >85%
− HREE (Eu-Lu) 0.85%
( )
Growth in “green energy” has
greatly increased demand for
Nd, La & Ce:
− 300kg Nd in 1MW wind
turbine
t bi
− Toyota Prius battery:
10-15kg La+Ce
27. Wigu Hill – A High Grade
Undeveloped REE Deposit
Grade Size
Deposit
D it
(% RE2O3) (tonnes RE2O3)
Mount Weld 11.2% 1,700,000
Mountain Pass 8.9% 1,800,000
Wigu Hill 7.4%* ???
Bayan Obo 6% 48,000,000
Mrima Hill 5% 300,000
Nolan’s Bore 4% 400,000
* Average of regional grab samples, not all from orebody: likely to be a minimum
Source of deposit data: SB Castor & JB Hedrick
29. Quebec, Canada ‐ 100% Ownership
Lac Yvonne Project
Mapping/Sampling/Radiometric Survey
6 Short Drill holes in 1957
0.08% U3O8 and 3 g/t gold over 4 feet
0.30% U3O8 and 3 g/t gold over 4 feet
Girard Claims Project
Ground radiometric survey
Outcrop rock chip sampling
Ch
Channel sampling of zones >100
l li f >100ppm U
Ridge Anomaly - >100ppm U over 600 x 40m
Drill target defined
LDZ Anomaly - >100ppm U over 300 x 200m
Drill target d fi d
D ill t t defined
North Beraud Lake Anomaly –
- Anomalous area covers 1600 x 250m
- Infill sampling program - July 2009
NI 43-101 report completed – SRK Consulting
31. Phosphate in South Africa
Montero has an option to acquire and develop five phosphate
deposits in South Africa:
The total size of the properties is approximately 14,600 Ha
The combined historical resource base of 90 Mt
Open pit resources
Located within 10 to 20km from e port port and/or fertili er
ithin export fertilizer
producer with infrastructure on site
32. Project Locations
Saldanha & Lamberts Bay Projects:
Lamberts
150 to 200km north of Cape Town
Bay Project
10 to 70km from Saldanha Bay
deep water harbour,
deep-water harbour Western Cape
Close to Western Cape Agricultural
Nodes (wheat, wine)
Bierkraal Project:
120km west of Johannesburg, within
the Rustenburg platinum mining node
Bierkraal
Project 20km from Omnia’s phosphate
chemical production complex situated
at Phokeng, North West Province
g
Saldanha Projects
33. Share Structure
Shares
Shares i
Sh issued
d 25,215,676
25 215 676
Stock options
p 2,275,000
Total – Fully diluted 27,490,676
Management holding 24.4%
34. Proposed 2010 Financing
Required C$6,000,000
Wigu Hill drill program to
determine a resource
Advance phosphate properties
to determine a resource
Acquire additional high quality
REE, Uranium and Phosphate
projects
35. Management and Directors
Dr. Antony Harwood - President/CEO - Director
Economic geologist with 30 y
g g years international exploration and mining experience.
p g p
Former President and CEO – Africo Resources Ltd.
Former Vice President for Global Generative and Africa-Eurasia Exploration – Placer Dome Inc.
Director of Adamus Resources and Lappland Goldminers AB.
Former founder and MD of Harwood International Ltd., a geological consulting company.
Former lecturer - University of Wales, Cardiff (UK), University of Natal + University of Durban (South Africa).
PhD - Geology – 1984 and BSc (Hons) - 1979 cum laude.
Toni Chapman - CFO - Director Greg Hall - Director (New Director on Board)
15 years financial and administration financial Seasoned geologist with over 35 years of
experience in Africa for South African and international experience.
C di
Canadian companies.i Former Chief Geologist - Placer Dome GroupGroup.
CFO for Oryx Mining and Exploration Ltd. Over the course of his illustrious career, Mr. Hall
had a senior role in the discoveries of both Barrick
Former CFO - Tri Origin Exploration Ltd.
Gold's Granny Smith mine and Rio Tinto's Yandi
Former consultant to Placer Dome South Africa.
iron ore mine. In addition, he took part in the
Former Business Administrator Director for discoveries of Keringal and Wallaby in Australia's
Bastillion Group of Companies
Companies. Goldfields,
Eastern Goldfields as well as the definition of
AngloGold Ashanti's Sunrise gold mine. Mr. Hall
Directors: holds a Bachelor of Applied Science from the
Dr. John Dixon - President & CEO - Oryx Mining & Exploration Ltd. University of New South Wales, Australia.
Mr. Andrew Thomson - President & CEO – Soltoro Ltd.
36. Montero Mining & Exploration Ltd
Registered and Records Office:
1900-1040 West Georgia Street
Vancouver, B.C. V6E 4H3
info@monteromining.com
info@monteromining com
