Titanium/Vanadium Project, page-3

8
BARRAMBIE TITANIUM PROJECT
(Neometals 100% through Australian Titanium Pty Ltd)
During the Quarter, the Company supervised the refurbishment of the laboratory and pilot test
facility in Montreal that will be used for a full pilot study for Barrambie. The laboratory facilities have
been returned to operational status, the mini-plant has been refurbished and the upgrade of the
pilot facility is in progress. Barrambie is one of the world’s highest grade titanium deposits,
containing total Indicated and Inferred Mineral Resources of 47.2Mt at 22.2% TiO2, 0.63% V2O5 and
46.7% Fe2O3, at a cut-off grade of 15% TiO2 (Appendix B).
Project Development and Corporate Strategy
Neometals is engaged in PFS optimisation studies. The full pilot plant evaluation of the proprietary
hydrometallurgical technology is planned to commence in the first half of 2017 following mini-pilot
plant optimisation testwork which has been board approved. Work commenced during the
September Quarter 2016 with the refurbishment of the laboratory and pilot test facility in Montreal.
The pilot plant design criteria have been prepared prior to equipment procurement. Subject to the
success of the full pilot scale test work it is Neometals’ intention to proceed to Feasibility Study (FS)
in 2017.
The currently preferred project development strategy is to advance the project to a suitable stage of
evaluation to obtain a titanium industry partner who would fund and operate the development of
the Barrambie project on a shared equity or joint-venture basis.
Titanium market
The majority of titanium feedstocks (an annual market of US$17 Billion or 85% by value) are used to
produce titanium dioxide pigment which is then used as an additive in paints, plastics, paper and ink
with the balance (15%) used to produce titanium metal products.
The current median price for high quality titanium dioxide pigment is US$2,550 per tonne on a CIF
basis to USA (source: Industrial Minerals 27 October 2016).
NEOMET PROCESSING TECHNOLOGY
(25% Net Profit Interest through Alphamet Management Pty Ltd)
Neometals is responsible for managing the commercialisation and development of the technology
(“Neomet Process”). All revenue received from the commercialisation of the technology will be split
25:75 between Neometals and the owners of the technology.
Neometals entered into a Strategic Alliance with Sedgman Limited (a wholly owned subsidiary of
CIMIC Group Limited (ASX:CIM) to provide the platform for the commercialisation of the technology,
at no up-front cost to Neometals. Neometals has subsequently been working with Sedgman’s
project team to market the technology, identify the initial evaluation customers and to ready the
laboratory facilities by conducting tests on a range of materials to calibrate the facility in readiness
for customer tests. Neometals’ strategy is to develop and hold a portfolio of royalty interests from
sub-licencing the technology in addition to deploying the technology for the Barrambie Project.

So I guess we won't hear much till after the full pilot plant is underway in the first half of 2017. If successful, would make the barrambie project very profitable