Minotaur Exploration Limited ASX: MEP. The Artemis Cu-Au Deposit and what it means for IOCG exploration in SA. A. P. Belperio

Transcription

1 Minotaur Exploration Limited ASX: MEP The Artemis Cu-Au Deposit and what it means for IOCG exploration in SA A. P. Belperio SA Exploration and Mining Conference Adelaide, 5 December

2 Artemis Cu-Au Discovery Artemis polymetallic Cu-Au-Zn-Ag discovery was announced 31 July How was the discovery made? What is it? What are the plans going forward? What does it mean for IOCG exploration (in SA)? 2

3 Artemis Cu-Au Discovery Minotaur IOCG Focus Areas since 2001 Gawler Craton Cloncurry Mineralisation Styles Haematite-hosted IOCG Magnetite-hosted IOCG Pyrrhotite-hosted ISCG Targeting undercover, particularly the highly reduced and conductive cover marginal to Cloncurry, necessitates a focused and selective geophysical approach. 3

4 Artemis Cu-Au Discovery IOCG deposit styles an extremely broad church Almost every deposit is different IOCG Deposit Examples Mineralisation Form of Iron Targeting Styles Methodology Barren Ironstone SE Missouri, Kiruna n/a Mag, Hm Magnetics, Gravity Tenant Ck Ironstone Peko, Geko Au-Cu-Bi Mag, Po, Hm Magnetics, Gravity Osborne ironstone Osborne Cu-Au Mag, Hm, Py, Po Magnetics, Gravity Haematite Breccia Olympic Dam, Prominent Hill Cu-Au-U-REE Hm Gravity, IP Magnetite Breccia Ernest Henry, Candelaria, Salobo Cu-Au Mag, Bio Magnetics Magnetite-Apatite Kiruna, Acropolis n/a Mag Magnetics Iron Sulphide Cormorant, Eloise, Artemis, Kulthor Cu-Au-Zn-Pb-Ag-Co Po, Py Electrical Conductivity Cobaltiferous Nico Au-Bi-Co-Cu Mag, Hm, Bio Magnetics, Radiometrics Common Features: Bimodal igneous activity, mantle tapping structures, extensive regional Na and K alteration and widespread Fe metasomatism 4

5 Artemis Cu-Au Discovery IOCG style of deposits an extremely broad church Almost every deposit is different Mt Woods : Manxman and Joes Dam Prospects Magnetite hosted Cu-Au : 0.23% Cu Mt Woods Inlier TMI Prominent Hill Chalcocite haematite - gold breccia 1.5% Cu, 0.5 g/t Au, Ur, REE 5

6 Cloncurry - Naraku Naraku Black soil plains north of Ernest Henry No geochemical signals Limited electrical geophysical penetration Initially gravity and magnetics 6

7 Cormorant ISCG JOGMEC JV since 2010 Successfully penetrated ultra-conductive cover beneath black soil plains Major Iron Sulphide Copper Gold system (ISCG) encountered within reduced host rock terranes 15+km, 20+m thick, massive & breccia pyrrhotite, persistently mineralised Cu-Au-Co Epigenetic Fe system as large as Prominent Hill Weakly magnetic, highly conductive Cormorant MIN04 : 0.2% Cu, 0.02% Co from 160m MIN07 : 0.1% Cu, 0.03 g/t Au from 186m MIN10 : 0.21% Cu, 0.02% Co from 414m 7

8 IOCG ISCG Geophysical characteristics IOCG deposits (magnetite-rich; large; disseminated) (Ernest Henry, Osborne, Mt Elliott-Swan): Significant positive magnetic anomalies Positive gravity anomalies Strong IP chargeability anomalies Oxidised host rock terrane Weak to no EM anomalies Broad alteration haloes Osborne Ernest Henry ISCG deposits (pyrrhotite-rich; small; high grade) (Cormorant, Eloise, Kulthor, East Osborne, Artemis): No positive magnetic anomalies No or limited gravity anomalism Positive IP chargeability anomalies Reduced host rock terrane Strong ground EM anomalies Limited alteration haloes Eloise Kulthor Artemis 8

9 Eloise ISCG Shift towards Eloise driven by: Recognition of the ISCG style as a significant and different (small, high grade) style of Cu-Au mineralisation Understanding of different exploration tools required, particularly EM and AEM Requirement for shallower ground that would allow airborne techniques to be used as a more rapid screening tool Acquired BRW Eloise tenements December 2013 with pre-determined exploration strategy and funding partner 9

10 Eloise JV November 2013 $1.7M Year 1 Work Program commenced Primary AEM survey (Nov-Dec13) Ground EM follow-up at 16 targets (Feb-Apr14) Drill test 10 best targets (May-July 2014) 10

11 EVT54 VTEM target EVT 54 Late-time VTEM image and line profile Late-time, Z-component VTEM image VTEM target EVT54 of particular interest 350m west of the Sandy Creek inferred resource Outcropping BIF and some ironstone gossan had attracted some past attention, some historic EM, and sniffs of copper and gold mineralisation encountered EVT54 therefore became a priority target for ground EM follow-up 11

12 EVT54 VTEM Target EVT 54 - Ground EM Ground EM at EVT54 confirmed a steeply dipping, high conductance body, from c. 80m below ground level Original plate model from the fixed loop ground EM neatly fitted between historic drillholes in the vicinity EVT54 recommended as the premier target based on conductance and associated gold and copper hits nearby. Drillhole EL14D09 successfully tested the target, named Artemis Late-time, Z-component VTEM image 12

13 Artemis Discovery hole 3.02% Cu, 3.81 g/t Au, 6.64% Zn, 1.35% Pb, 112 g/t Ag from 157 to 179 m Two further holes 50m up-dip and down-dip Drillhole EL14D10 : 0.84% Cu, 0.73 g/t Au, 5.06% Zn,, 1.85% Pb, 69 g/t Ag Drillhole EL14D12 : 1.58% Cu, 2.12 g/t Au, 4.74% Zn, 1.13% Pb, 54 g/t Ag 122m vertical section drilled at this point plus down-hole EM can see a further 50m incrementally Drilling suspended to allow new heritage clearance surveys, new geophysics, planning of systematic drill programs and Joint Venture approvals. 13

14 Artemis What is Artemis: Blind deposit of late fracture fill massive sulphide Fe-Cu-Zn-Pb sulphides. Very limited alteration halo or host rock brecciation Steep, tabular body, structurally controlled. No significant magnetic or gravity expression Responsive to Down-hole and Across-hole EM Drillhole EL14D09, 166.6m: coarse, massive sulphides including chalcopyrite (yellow), sphalerite (black), pyrrhotite (bronze-grey) and calcite (white to pale grey) no host rock brecciation. Metre interval assay: 36% Fe, 2.7% Cu, 1.5 ppm Au, 6.7% Zn, 1.1% Pb, 111 ppm Ag 14

15 Artemis - mineralogy Cu Zn Au 15

16 Artemis Eloise Comparison Mineralogical associations (Eloise after Baker, 1998) Element Artemis Eloise Major mineral EL14D09 Fe 20-38% No data Pyrrhotite Cu 0.2-8% % Chalcopyrite Zn % % Sphalerite Au ppm ppm Electrum Ag ppm ppm Electrum Pb ,000 ppm ppm Galena As ppm ppm Arsenopyrite Bi ppm ppm Bismuthinite Co ppm ppm Cobaltite Bright whitish-yellow gold grains (or possible electrum) (2µm to 20µm) circled, mostly in pyrrhotite, some in and on margins of chalcopyrite. 16

17 Artemis Eloise Comparison Mineralogical association, physical and structural styles at Artemis appear remarkably similar to the Eloise deposit Eloise comprise a number of offset pyrrhotite-dominated massive sulphide lenses of short strike length (<200m) but great down dip extent. Blind at surface, late brittle offsets 17

18 Artemis Proposed Work Accelerated $6M workplan from Oct 2014 to Jun 2015 Systematic drill testing at Artemis Along strike and down dip extent to be guided by systematic downhole surveys Thickness grade variation mapping 40+ holes, 18,000m, 2 DDH Rigs Metallurgy, petrology and resource definition Along-structure extensions to north and south 18

19 Artemis Long Section View and Eloise Comparison 19

20 Artemis Proposed Work Accelerated $6M workplan from Oct 2014 to Jun 2015 Systematic drill testing at Artemis Along strike and down dip extent to be guided by systematic downhole surveys Thickness grade variation mapping 40+ holes, 18,000m, 2 DDH Rigs Metallurgy, petrology and resource definition Artemis Along-structure extensions to north and Sandy south Creek Connections with Sandy Creek and greater Artemis area Greenfield targeting: Drill testing a further 10 regional target Greenfield targeting: Deep EM along the Levuka Shear 20

21 Artemis Proposed Work Accelerated $6M workplan from Oct 2014 to Jun 2015 Systematic drill testing at Artemis Along strike and down dip extent to be guided by systematic downhole surveys Thickness grade variation mapping 40+ holes, 18,000m, 2 DDH Rigs Metallurgy, petrology and resource definition Along-structure extensions to north and south Connections with Sandy Creek and greater Artemis area Greenfield targeting: Drill testing a further 10 regional targets Greenfield targeting: Deep EM along the Levuka Shear 21

22 SA IOCG So what are the lessons for SA Successful exploration requires the right mix of models, tools and financial commitment What are the most appropriate tools given the particularly hostile Australian cover problem Don t fixate on one model. Make sure the exploration program is funded appropriately for the task Size isn t everything, grade is king Where are the key structures controlling fluid flow in IOCG systems What are the host rock packages and how will that determine preferred Fe species What are the appropriate tools to for these targets in these environments 22

23 Disclaimer Disclaimer This presentation has been prepared by the management of Minotaur Exploration Limited ( Minotaur, ASX: MEP) for the general benefit of analysts, brokers and investors and does not constitute specific advice to any particular party or persons. Information herein is based on publicly available information, internally developed data and other sources. Where an opinion, projection or forward looking statement is expressed in this presentation, it is based on the assumptions and limitations mentioned herein and is an expression of present opinion only. No warranties or representations are made or implied as to origin, validity, accuracy, completeness, currency or reliability of the information. Minotaur specifically disclaims and excludes all liability (to the extent permitted by law) for losses, claims, damages, demands, costs and expenses of whatever nature arising in any way out of or in connection with the information, its accuracy, completeness or by reason of reliance by any person on any of it. Where Minotaur expresses or implies an expectation or belief as to the success of future exploration and the economic viability of future project evaluations, such expectation or belief is expressed in good faith and is believed to have a reasonable basis. However, such projected outcomes are subject to risks, uncertainties and other factors which could cause actual results to differ materially from projected future results. Such risks include, but are not limited to, exploration success, metal price volatility, changes to current mineral resource estimates or targets, changes to assumptions for capital and operating costs as well as political and operational risks and government regulatory outcomes. MEP disclaims any obligation to advise any person if it becomes aware of any inaccuracy in or omission from any forecast or to update such forecast. Competent Person s Statement Information in this presentation that relates to exploration results for Minotaur Exploration Ltd is based on information compiled by Dr. A. P. Belperio, who is a Director and full-time employee of the Company and a Fellow of the Australian Institute of Mining and Metallurgy. Dr. Belperio has sufficient experience relevant to the style of mineralisation and type of deposits under consideration and to the activity that he has 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 (JORC Code). Dr. Belperio consents to inclusion of this information in the form and context in which it appears. Artemis Daughter of Zeus and Leto and the twin sister of Apollo. She was the Hellenic goddess of the hunt. 23