Phoenix Copper Ltd September 2014

Transcription

1 Phoenix Copper Ltd September 2014 A NEW DIRECTION 1 COPPER GOLD SILVER LEAD ZINC

2 Snapshot Agreement to acquire and JV in the NT Agreement to acquire (100%) existing massive sulphide deposits from Canadian listed gold producer Crocodile Gold Corp (1) Defined resources on granted MLs, high metal value, multiple commodities - Au, Ag, Pb, Zn, Cu Agreement to earn-in to 90% over large exploration tenure (2) Multiple untested drill-ready base metals targets Underexplored for base metals Pine Creek Orogen Close to infrastructure Aim add value by quickly advancing existing deposits in addition to discovering new economic resources 2

3 Corporate Snapshot ASX code: PNX Market cap: ~$8.2M Cash end June Qtr: $0.45M Ordinary shares: 235M Share Price 22 nd Sept: 3.5c Unsecured loan (3) $1.2M Avalon Minerals Ltd (AVI) investment (~9%) ~$1.0M at 0.8c Major Shareholders Long Fortune Limited 11.5% Board and Management Independent Chairman - Graham Ascough Asia Image Limited 10.5% Independent Director - Peter Watson Talis SA 9.9% Independent Director - Paul Dowd Directors & Management 5% Independent Director - David Hillier Top 20 shareholders hold ~75.6% CEO James Fox of the company 3 Company Secretary & CFO Tim Moran Geology Manager Nicole Galloway

4 Hayes Creek Project - 100% IBDH g/t Au, 481.6g/t Ag, 13.92% Zn, 3.10% Pb and 0.61% Cu from 193m Iron Blow Mt Bonnie MBH g/t Au, 312g/t Ag, 13.16% Zn, 3.47% Pb and 0.65% Cu from 75.2m Historic Iron Blow & Mt Bonnie mines Polymetallic massive sulphide deposits 2009 NI compliant inferred mineral resource estimate at Iron Blow (4) Currently updating resource estimate to JORC 2012 baseline information Mineralisation in both areas remains open High potential for discovering additional deposits untested VTEM targets close by Target stratigraphy >10km in length 4

5 Tonnes Existing Iron Blow resource Gold (Au) Silver (Ag) Lead (Pb) Zinc (Zn) Copper (Cu) 3,174,876 3,174,876 3,174,876 3,174,876 3,174,876 Grade 2.08 g/t g/t 0.76% 3.28% 0.19% Contained Metal 212,318 oz 10,299,488 oz 24,129 t 104,136 t 6,032 t Located on granted MLs close to infrastructure 2009 NI compliant inferred mineral resource estimate (4) (based on 6 holes) 15 additional holes drilled in 2011 not included in above resource estimate 3 rd largest base metals deposit in the Pine Creek Orogen 5

6 Iron Blow - Plan view A A1 Exceptional grades from previous mining and drilling Past production of oxide and supergene ore - 35,000t grading 7.6 g/t Au and 328 g/t Ag (5) Mineralisation generally occurs in the form of stacked massive sulphide lenses plunging to the south Multiple metals high value per tonne VTEM anomalies in the same geological environment that require follow-up 6

7 Iron Blow - Section view A IBHD018 1g/t Au, 3.4% Zn, 0.14% Cu, 0.33% Pb from 144m IBDH g/t Au g/t Ag, 1.3 % Pb, 9.7 % Zn 0.34% Cu from 189.1m IDH g/t Au from 332m IBDH g/t Au, 429g/t Ag, 3.4 % Pb 9.6 % Zn, 0.27 % Cu from 94.9m IBHD g/t Au g/t Ag, 3.21% Pb 13.9% Zn, 0.6 % Cu from 193m IBDH g/t Au, 21g/t Ag, 2.74 % Zn, 0.47% Cu from m IBDH g/t Au, 21g/t Ag, 3.76% Zn, 0.46% Cu from m IBHD g/t Au, 1.1% Zn, 0.2% Cu from 388m A1 Multiple parallel massivesulphide lenses Dipping approximately 70 E High-grade core of base metals with elevated gold grades Parallel zones have potential to add significant mineable material Footwall gold-rich zone identified Limited deeper drilling Mineralisation remains open in all directions Understanding the structural controls and mineral relationships is key to future development 7

8 Mount Bonnie Past oxide gold production of 110,000 7g/t Au and 230g/t Ag (6) Best drill intercepts to date of; MBH g/t Au, 312g/t Ag, 13.16% Zn, 3.47% Pb and 0.65% Cu from 75.2m (7) Interpretation is a single mineralised lens open at depth Additional drilling required to define JORC 2012 compliant resources downhole EM to assist with targeting Similar strike length & geophysical signature to Iron Blow 8

9 Hayes Creek VTEM Targets Iron Blow Iron Blow Known deposits characterised by discrete, coincident magnetic and EM responses Mount Bonnie Mount Bonnie Untested priority targets identified in the immediate vicinity of known deposits 4,079 line km survey completed in 2011 covering 816km² (only 50km 2 depicted here) 500m Magnetics 500m EM An additional 19 priority targets identified regionally VMS deposits typically occur in clusters 9 Untested priority targets

10 Burnside, Moline, Chessman projects Agreement to earn up to 90% over large exploration tenure from Canadian listed gold producer Crocodile Gold Corp 1,700km² exploration tenure Burnside Moline Chessman Underexplored for base metals Focus being on ground exploration in areas with coincident anomalies Geochemical based fieldwork commenced Ground truthing key VTEM targets Soil and rock chip sampling Geological mapping 10

11 Regional drill targets - Moline El Dollarado Pb-Ag-Zn and Au Drill ready targets Coincident VTEM and soil geochemical anomalies Two parallel NW trending Au, Pb, Zn zones to the NE Pb-Zn anomaly along the SW side Au anomaly up to 130m wide Base metals anomaly 1,000m x 400m Rock chip samples collected spectacularly mineralised (8) 1,380g/t Ag, 25.8% Zn, >20% Pb, 0.21% Cu 26.8g/t Ag, 8.12% Zn, 3.61% Pb, 0.25% Cu 11

12 Moline Gold prospectivity A Hercules Open Drill Holes A1 Numerous historical deposits on large granted ML A number of areas with mineralisation remaining Opportunity exists to exploit these areas Further drilling warranted prioritise with key base metals targets Hercules (vein hosted) gold deposit open pit produced ~40,000oz at 2.62g/t (9) underground (narrow high-grade veins) produced ~38,000oz at 27g/t (10) Good drill intersections remain open Potentially mineable area to 25m below base of existing pit A A1 Hercules Pit Drill Hole Section 200m extent facing North 12

13 South Australia Adelaide Geosyncline High grade Cu mineralisation intercepted Eagle Prospect Burra Project Successful drilling over IP high Demonstrated high grade Cu over width at shallow depth Drill-ready coincident IP and geochem targets at Condor - Burra Project Good existing infrastructure Area historically rich in copper Yorke Peninsula 1,413km² over 4 wholly owned tenements Underexplored areas - minimal exploration High potential for economic mineralisation Shallow cover to the north - efficient drilling Strong geological similarities to neighbouring Hillside and Moonta -Wallaroo copper gold deposits 13

14 Adelaide Geosyncline PCD040 Cu from 50.7m Reprocessed historical IP data identified areas of interest along strike and adjacent to known mineralised areas Drilling over IP targets to the north at Eagle intercepted shallow, high-grade copper sulphides New 1,000m x 400m surface copper and base metal anomaly defined by FpXRF over IP high (11) Drill-ready targets at Condor Prospect 14

15 Hayes Creek Summary Set the baseline - convert Iron Blow mineral resource estimate to JORC 2012 compliance Understand the resource diamond drill testing & structural analysis Demonstrate economic extraction metallurgical testing Identify additional resources in close proximity - test nearby VTEM targets, define JORC compliant mineral resource estimate at Mount Bonnie Moline Drill test known prospects and defined targets, prioritising existing geochemical anomalies and geophysical targets in favourable lithological and structural settings Burnside and Chessman exploration Re-interpret VTEM data to confirm and prioritise targets Ground follow up with geochemical based fieldwork, mapping and RC drilling Discover Burnside, Moline, Chessman exploration, Yorke Peninsula, Adelaide Geosyncline Define Hayes Creek (Iron Blow + Mount Bonnie) Develop 15

16 Planned work program - News flow Tasks Project Area Sep-14 Q Q Q Mineral Resource Estimate - Iron Blow Fieldwork, geological sampling & mapping Mineral Resource Estimate - Mt Bonnie Regional airborne geophysics re-interpretation Stage 1 diamond drilling - Iron Blow & Mt Bonnie (QAQC + met test samples) Downhole geophysics - Iron Blow & Mt Bonnie Metallurgical test work - Iron Blow & Mt Bonnie Stage 2 diamond drilling - Iron Blow & Mount Bonnie Regional geophysics - specific target areas Regional exploration drill testing (subject to wet season) Hayes Creek Burnside, Moline Hayes Creek Burnside Hayes Creek Hayes Creek Hayes Creek Hayes Creek Burnside, Moline, Chessman Burnside, Moline, Chessman 16

17 Key Terms of the agreement with Crocodile Gold Australia Pty Ltd (CGA) 15 Mining Leases (Sale Tenements) to be acquired including those that contain the Iron Blow and Mount Bonnie deposits in exchange for a 2% royalty over the market value of gold and silver contained in concentrate production from the Sale Tenements. CGA has the right to clawback a 30% interest within 6 months of the completion of a Pre-Feasibility Study by paying PNX three times its accumulated expenditure on these tenements. Earn-in and JV over 21 exploration licences and 4 mining leases covering 1,700 square kilometres over three main project areas (Farm-in Tenements). PNX can earn a 51% interest (excluding uranium) with the expenditure of $2 million over 2 years (which can include up to $0.5 million spent on the Sale Tenements). PNX can elect to increase the earned interest to 90% by spending an additional $2 million within a further 2 years (which can include up to a further $0.5 million spent on the Sale Tenements). CGA can acquire 90% of any 2012 JORC compliant gold and silver deposit (or a deposit where 80% or more of the in situ value is comprised of the value of gold and silver) by paying PNX three times its accumulated expenditure relating to that deposit within 6 months of the initial resource estimate being announced to the ASX. PNX can withdraw before spending the initial $2 million and would forfeit any right to the tenements. Further consideration of $500,000 (in cash or PNX shares) is payable upon completion of a Definitive Feasibility Study on any base metals deposit within the Farm-in tenements or Sale Tenements. The agreement remains subject to Conditions Precedent requiring the parties to enter into certain deeds of assignment and assumption with relevant third parties in relation to existing agreements affecting the tenements to be acquired or farmed into. The conditions precedent must be satisfied or (if capable of being waived) waived on or before 15th November

18 References & Cautionary Statement NI compliant initial Inferred mineral resource estimate (at 1.0g/t Au cut-off grade) at Iron Blow Gold g/t Silver g/t Lead % Zinc % Copper % Tonnes 3,174,876 3,174,876 3,174,876 3,174,876 3,174,876 Grade 2.08 g/t g/t 0.76% 3.28% 0.19% Contained Metal 212,318 oz 10,299,488 oz 24,129 t 104,136 t 6,032 t This resource estimate is a foreign resource estimate and is not reported in accordance with the JORC Code; Insufficient work by the competent person has been undertaken on the foreign resource estimate to classify in accordance with the JORC Code, and it is uncertain that following evaluation and/or further exploration work the foreign resource estimate will be able to be reported as a mineral resource in accordance with the JORC Code. Details of the information included in this Presentation can be found in the following announcements previously lodged by Phoenix Copper Ltd (PNX) with the ASX and other referenced documents: (1)(2)(4)(7) Acquisition of High-Grade Massive Sulphide Deposits NT. PNX 18/08/14. There is no new information or data that materially affects the resource estimate, and all supporting information provided in the initial market announcement on 18 Aug 2014 is materially unchanged and continues to apply. (3) Funding for AVI investment. PNX 14/11/13 (5)(6) NI Technical Report On The Mineral Resources & Mineral Reserves Of The Northern Territory Gold And Base Metals Properties For Crocodile Gold Corp 04/04/11 (8) High Gold and Copper Values in Rock Chips - New NT Projects. PNX 04/09/14. There is no new information or data that materially affects these results. (9) Ferenczi, P.A., and Sweet, I.P. (2005): Mt. Evelyn SD 53-05; NT Geological Survey (10) NTGS Open File Report CR : Orridge, G.R.; for M. Teelow (11) Copper Anomaly Identified at New Condor Prospect. PNX 05/05/14. There is no new information or data that materially affects these results. 18

19 Disclaimer & Competent Person Statement This presentation is an overview of the Company prepared with good intention. It is not a prospectus and offers no securities for subscription or sale in any jurisdiction, nor a securities recommendation. All information necessary for investment decisions is not contained herein and investors are encouraged to conduct their own research of Phoenix Copper Limited in conjunction with legal, tax, business and financial consultation. Phoenix Copper Limited, its directors, officers, employees and agents disclaim liability for any loss or damage suffered by reliance on information contained in this report when making investment decisions. In addition, no express or implied representation or warranty is given in relation to the completeness and sufficiency of the information, opinions or beliefs contained in this document or any other written or oral information made or to be made available to any interested party or its advisors. This presentation may refer to the intention of Phoenix Copper Limited but it does in no way intend to forecast forward looking statements or future matters for the purposes of the Corporations Act or any other law. Future events are subject to risks and uncertainties, and as such results, performance and achievements may in fact differ from those referred to in this presentation. No liability is accepted for any loss, cost or damage suffered or incurred by the reliance on the sufficiency or completeness of the information, opinions or beliefs contained forthwith. Research, evaluation and analysis of the business, data and property are encouraged before making financial investments. Any estimates, projections or opinions contained herein may involve subjective judgement, analysis and interpretation, and satisfaction of one s own decisions should be undertaken. This report contains forward-looking statements. These forward-looking statements reflect management s current beliefs based on information currently available to management and are based on what management believes to be reasonable assumptions. A number of factors could cause actual results, or expectations to differ materially from the results expressed or implied in the forward looking statements. The information in this report that relates to Exploration Targets, Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Ms Nicole Galloway Warland (BSc (Hons)), a Competent Person who is a Member of the Australian Institute of Geoscientists and a full-time employee of Phoenix Copper Limited. Ms Galloway Warland has sufficient experience relevant to the style of mineralisation and the type of deposits under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Ms Galloway Warland consents to the inclusion in this report of the matters based on her information in the form and context in which it appears. 19