Advanced Uranium explorer in Canada s world class Athabasca Basin

Transcription

1 Advanced Uranium Explorer in the Athabasca Basin, Canada Advanced Uranium explorer in Canada s world class Athabasca Basin Corporate Presentation February 2014 Corporate Presentation May 2013

2 Cautionary Note Regarding Forward-Looking Statements This Presentation and the exhibits attached herein contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of Such forward-looking statements concern our anticipated results and developments in our operations in future periods, planned exploration and development of its properties, plans related to its business and other matters that may occur in the future. These statements relate to analyses and other information that are based on forecasts of future results, estimates of amounts not yet determinable and assumptions of management. Statements concerning reserves and mineral resource estimates may also be deemed to constitute forward-looking statements to the extent that they involve estimates of the mineralization that will be encountered if the property is developed, and in the case of mineral reserves, such statements reflect the conclusion based on certain assumptions that the mineral deposit can be economically exploited. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as expects or does not expect, is expected, anticipates or does not anticipate, plans, estimates or intends, or stating that certain actions, events or results may, could, would, might or will (or the negative and grammatical variations of any of these terms and similar expressions) be taken, occur or be achieved, are not statements of historical fact and may be forward-looking statements. Such statements are included, among other places in this Presentation, in Regulatory filings in the sections entitled "Management's Discussion and Analysis of Financial Condition and Results of Operations, "Description of Business" and "Description of Property." Forward-looking statements are subject to a variety of known and unknown risks and should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not such results will be achieved. Uncertainties and other factors which could cause actual events or results to differ from those expressed or implied by the forward-looking statements, including, without Limitation: risks and uncertainties relating to the interpretation of drill results, the geology, grade and continuity of mineral deposits; results of initial feasibility, pre-feasibility and feasibility studies, and the possibility that future exploration, development or mining results will not be consistent with the Company's expectations; mining exploration risks, including risks related to accidents, equipment breakdowns or other unanticipated difficulties with or interruptions in production; the potential for delays in exploration activities or the completion of feasibility studies risks related to the inherent uncertainty of exploration and cost estimates and the potential for unexpected costs and expenses; risks related to commodity price fluctuations; the uncertainty of profitability based upon the Company's history of losses; risks related to failure of the Company and/or its joint venture partner to obtain adequate financing on a timely basis and on acceptable terms; risks related to environmental regulation, permitting and liability; political and regulatory risks associated with mining and exploration; other risks and uncertainties related to the Company's prospects, properties and business strategy. This list is not exhaustive of the factors that may affect our forward-looking statements. Some of the important risks and uncertainties that could affect forward-looking statements are described further in the sections of our Regulatory filings entitled Risk Factors, Information on the Company and Operating and Financial Review and Prospects and in the exhibits attached to our Annual Report on Form 20-F. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in the forward looking statements. Although the forward-looking information contained in this Presentation is based upon what the Company s management believes to be reasonable assumptions, the Company cannot assure investors that actual results will be consistent with such information. Forward looking information reflects management s current beliefs and is based on information currently available to the Company. Such information reflects current assumptions regarding future events and operating performance including, without limitation, a strong global demand for mineral commodities, continued funding and continued strength in the industry in which the Company operates, and speaks only as of the date of this discussion. The forward-looking information is made as of the date of this Presentation. The Company does not assume any obligation to update forward-looking statements if circumstances or management s beliefs, expectations or opinions change, except as required by law. For the reasons set forth above, investors should not place undue reliance on forward-looking statements. 2

3 Table of Contents Uranium Sector Athabasca Uranium Mines Slide 4 Recent Announcements Slide 5 Recent Transactions Slide 6 Uranium Market Outlook Slide 7 Uranium Demand Slide 8 Canada s Uranium Sector Slide 9 Athabasca Basin Slide 10 CanAlaska CanAlaska Growth Strategy Slide 11 Corporate Share Information Slide 12 Key Projects CanAlaska Projects Slide 13 West McArthur Project Slide 14 Cree East Project Slide 15 NW Manitoba Project Slide 16 Patterson Lake Slide 17 Summary & Management Summary Slide 18 Management & Directors Slide 19 Directors & Technical Advisory Team Slide 20 Contact Slide 21 Exploration Details Technical & Project Information Slides

4 Athabasca Uranium Mines Uranium ore grades within these deposits are 100 times the world average McARTHUR RIVER MINE: Proven thousand tonnes grading % U 3 O 8 (222.6 million pounds U 3 O 8 ) Worlds largest high grade uranium mine Produces 20% of world uranium supply CIGAR LAKE: CAMECO /Areva Resources 99% Ownership 190 tonnes per day Proven thousand tonnes grading % U 3 O 8 (114.9 million pounds U 3 O 8 ) Production planned 2013 Worlds largest undeveloped high grade uranium deposit CAMECO/Areva Resources 87.1% Ownership planned110 tonnes per day 4

5 Recent Announcements Recent Announcements November 2013 Canada signs Kazakhstan nuclear co-operation agreement. October EU free trade agreement allows uranium sales, and EU investment up to 100% of uranium mines. September 2013 Japanese utilities apply to restart 14 reactors. China has 30 reactors under construction.(uxc) October Canada implements Nuclear Co-operation Agreement with India, which has announced plans to build 12 new nuclear reactors by 2021, demand for yellowcake is expected to triple to $650-million in annual purchases. September Canada signs Civilian Nuclear Co-operation Agreement with United Arab Emirates allowing export to designated UAE countries monitored by UN (Atomic Energy Agency). September 2012 CanAlaska engages KPMG Transaction Advisory Services Ltd. (Hong Kong) to assist in seeking China based strategic investors to fund the accelerated exploration and development of the Company s most active Athabasca Basin uranium projects. September 2012 The July 2012 China-Canada Nuclear Accord is expected to open the door to about $3 billion in sales over the next decade, possibly starting as soon as six months from now. Brad Wall, Premier of Saskatchewan (Globe & Mail). 5

6 Recent Transactions Exploration sector consolidation has commenced: 2013 Fission acquirse remaining 50% of PLS from Alpha Minerals for $185 Million Denison acquires select Fission properties for $70 Million, Fission retains 50% PLS 2012 Cameco Corporation acquired Yeelirrie from BHP Billiton Limited, for $430 million. Yeelirrie is one of Australia s largest undeveloped uranium deposits Rio Tinto Ltd competitively acquired Hathor Exploration Ltd and its Roughrider deposit for $653 million Energy Fuels Inc. acquired Dennison Mines Corp. US mining assets for $102 million Fission Energy Corporation acquired Pitchstone Exploration Ltd, and exploration company for $6.0 million Guangdong Nuclear Power Corp. acquired the Husab Uranium project in Namibia for $2.2B from Extract Resources Limited Cameco Corporation 70%, Mitsubishi Development Pty. Ltd. 30% Joint Venture acquisition of Kintyre exploration project in Australia from Rio Tinto Group for $495 million These are primarily resource assets and not operating mines. 6

7 Uranium Market Outlook China Spearheads Global Nuclear Demand China has 30 of the world s 70 new nuclear reactors under construction now. (WNA Oct 2013) An estimated worldwide total of 487 new nuclear reactors are planned, or proposed to be operational by 2030, with 171 in China alone. (World Nuclear Association August 2012) Asian Energy Demand Asia 7

8 Uranium Demand Uranium Demand Both medium and long term demands estimate a supply deficit by Spot uranium prices are at the lowest levels since September 2009 however forecast prices are expected to rise in the near term. (Ux Consulting). Electricity demand to grow 76% by 2030, and the number of reactors is rising to meet it (WNA) TODAY Demand: Requirements to be Filled by future production ie NEW MINES 8

9 Canada s Uranium Sector Canadian Uranium Sector High grade uranium deposits in Saskatchewan currently produce 20% of the world s uranium. Uranium deposits with ore grades of >20% U are only found in the Athabasca Basin, Canada. 9

10 Saskatchewan and Nunavut Uranium Basins Since 2002 there have been 11 significant new uranium discoveries in the Athabasca Basin. There have been three new discoveries in Nunavut Canada has a stable and supportive government for long term planning and production Infrastructure is in place for mining. Key Projects 3

11 CanAlaska Growth Strategy Primary Objectives Exploration: NW Manitoba Drill test key projects in the Athabasca Area: Cree East West McArthur (tba) NW Manitoba (Winter 2014 MVC option) (Winter geophysics Summer 2014 plan) West McArthur Cree East Operations: Work cohesively with Joint Venture partners: MC Resources (Mitsubishi) West McArthur Korean Consortium Cree East Fond du Lac Denesuline First Nation Fond Du Lac New $11.5M Option agreement with MPVC Inc. at NW Manitoba work started New $1.4M Option agreement with Makena at Patterson Lake, airborne completed Plans: Pursue further Joint Venture opportunities on our uranium projects. Continue to build strong ties with First Nation Communities. Further Investment Banker/Strategic Investor development. 11

12 Shareholder Info Canadian Resource Company Listed on the Toronto Stock Exchange TSX :CVV Share Price $0.19 Market Capitalization Cash Position $4.2 Million $1.05 Million Issued & Outstanding 22,068,136 Options & Warrants 3,779,250 Shares Fully diluted 26,327,386 CanAlaska is also quoted on the Frankfurt Exchange : DH7N and the OTCBB : CVVUF *As of February 10,

13 CanAlaska Projects NW Manitoba CanAlaska Cree East West McArthur The Company is committed to Advancing three key projects: 1. West McArthur 2. Cree East 3. NW Manitoba 13

14 West McArthur Project Project Statistics Project Size: 36,000 hectares Ownership: 50% CanAlaska, 50% MRC (Mitsubishi) Targets discovered: Seven, Grids 1-7 Target Size: Minimum 100m lbs U 3 O 8 Drill targets tested to date: 4 Unconformity Depth: metres Metres Drilled: 29,000, 29 completed drill holes Grid 1 Grid 5 Project: Exploration Program Update: New targets defined on Grid 5. Large alteration zones intercepted in first drill holes. Exploration Drill Program and Strategy: 4,000 metre diamond drill hole program to Complete Grid 5 target definition. Update: New discovery? Cameco s Fox Lake conductor target adjacent to Grid 5 shows major zones of uranium. Work has been continuous summer and winter since Survey grids extend over Grid 5. Other: Grid 1 and Grid 4 targets ready for second pass drilling Geophysics: Deep targets more accurately predicted using new SQUID surveys. Squid EM: First Tested 2009, more precise location, less drilling to intersect target. 14

15 Cree East Project Project Statistics Project Size: 56,000 ha Ownership: 50% CanAlaska, 50% Korean Consortium (Hanwha, SK, KORES, KEPCO) Targets discovered: Zones A-J Target Size: Minimum 50M lbs U 3 O 8 Drill targets tested to date: 10 Unconformity depth: metres Metres Drilled: 34,223, 77 completed drill holes Zone B Project: Exploration Program & Update: New target defined on Zone B. Large alteration zones intercepted in first drill holes. Exploration Drill Program and Strategy (2014): 5,000 metre diamond drill hole program to complete Zone B target definition is next program Update: Large arsenic pyrite halo matches Cameco s Fox Lake discovery. High base metal and gold values (to 13g/t) and uranium at major uplift (over 50 metre) at quartzite contact work planned by Consortium. Other: Zone A, C and I targets ready for second pass drilling Geophysics: Deep targets more accurately predicted using new SQUID surveys. Squid EM: First Tested 2009, more precise location, less drilling to intersect targets. 15

16 NW Manitoba Project Project Statistics Project Size: 143,603 hectares Ownership: 100% CanAlaska Targets discovered: 10 zones ready for drilling Target Size: Minimum 10m lbs U 3 O 8 Drill targets tested to date: Nil Unconformity depth: On surface Metres Drilled: Nil Maguire Project: Exploration Program & Update: Targets defined at Maguire trend. Gravity and Resistivity Anomalies similar to Andrew Lake Nunavut Exploration Drill Program and Strategy : 5,000 metre diamond drill hole program to test Maguire Ten targets drill ready and further 10 need geophysics Update: Property Option Agreement with MPVC Inc to spend $11.6M to earn 80%. Gravity and resistivity targets located with boulders and outcrop of uranium. Clay attached to massive pitchblende indicates type of alteration detectable by gravity. Coincident outcrop, gravity, resistivity on major structural trends with multiple folding and thrusting observed. Other: Fifty named targets with uranium boulders or outcrop Geophysics: Gravity and Resistivity surveys map the near surface targets. 16

17 Recent Developments: Acquisition of Patterson Lake Claims December 2012 CanAlaska competitively staked three claim groups in the Patterson Lake area in the western area of the Athabasca basin, Saskatchewan Area claimed totaling 6,687 hectares Patterson Lake area is known for recent uranium discoveries at shallow depths. 50/50 JV Option agreement with Makena Resources Inc. for $1.4M expenditure. First work completed January 2014.

18 Summary Advancing 3 major Uranium Projects, located near proven deposits/major uranium trends) West McArthur Cree East NW Manitoba Joint Venture funding with strategic partners MC Resources Ltd (Mitsubishi Corp) Korean Consortium MPVC Inc $11.6M earn-in Option Makena Resources Inc $1.4M earn-in Option Strong First Nations involvement Japan: Mitsubishi Korea Hanwha-Kores-Kepco-SK Focus on attracting Strategic China Partner KPMG China engaged as financial advisor Proven Exploration and Management team Head of exploration - co-discovered Cigar Lake and senior manager Cogema (Areva) operations 18

19 Management & Directors Ambassador Thomas Graham, Jr. Chairman & Director Peter Dasler CEO & Director Dr. Karl Schimann PhD., P. Geo. VP Exploration Appointed as a member of the International Advisory Board for the nuclear program of the United Arab Emirates in December, Served under four successive U.S. Presidents as a senior U.S. diplomat involved in the negotiation of every major international arms control and non-proliferation agreement. Over 35 years of experience in exploration geology. Previously was Mine Manager and Production Manager of Taharoa Ironsand Mine. Bachelor's (1974) & Master's (1981) in Geology from Canterbury University, NZ. 20 years with COGEMA (now AREVA) as a Senior Geologist and Project Manager & key member of the team that undertook the discovery and development of Cigar Lake Dr. Jules Lajoie, PhD., P. Geo. Sr. Geophysicist Former Head Geophysicist for Teck Resources Ltd. Harry Chan Chief Financial Officer 20 years of financial reporting experience in a multitude of capacities 19

20 Directors & Technical Advisory Team Victor Fern Director Kathleen Kennedy Townsend Director Jean Luc Roy Director Former Chief of the Fond Du Lac Denesuline First Nation Ms. Townsend has a long history of accomplishments in the public and private sectors. She was the State of Maryland's first woman Lieutenant Governor. She also served as Deputy Assistant Attorney General of the United States. Over 20 years experience in mining industry in various roles of management, COO of Ampella Mining Advisory Board Daniel Faure Advisor Senior Manager with French uranium giant AREVA / Cogema for 28 years in Africa, the Middle East, Australia, South America, Asia and Canada. Nana Lampton Advisor Simon Seto Advisor Chair & CEO of Hardscuffle, Inc., parent of American Life & Accident Insurance Company of Kentucky Simon Szeto is Vice President of Hong Kong based SBI E-2 Capital Securities Ltd & SBI E-2 Capital Financial Services Ltd. which provides financial services to individuals, and private and public corporations. 20

21 CanAlaska Uranium Ltd. Peter Dasler M.Sc. P.Geo President & CEO

22 TECHNICAL Technical Considerations and Detailed Project Reviews

23 CanAlaska Projects Cameco Corporation/ Areva Resources Inc CanAlaska The company is committed to Advancing four key projects: 1. West McArthur 2. Cree East 3. NW Manitoba 23

24 West McArthur Project Adjacent to the worlds richest Uranium Mine: Cameco's McArthur River. $18.9 million of work has successfully identified 7 Target Areas. High potential for minimum target of 100M+ lbs Uranium. Mitsubishi Corp has committed to 5 yr $20M exploration plan. New Discovery by Cameco at Fox Lake adjacent to Grid 5 targets 24

25 West McArthur - Magnetics Fox Lake Discovery Fox Lake Discovery 25

26 West McArthur Targets defined Cameco Fox Lake uranium discovery is on the C10 conductor at CanAlaska s eastern claim boundary C10 Winter drilling on Grid 5 shows strong hydrothermal alteration along the trend GRID 5 Grid 5 Targets Cameco s Fox Lake Discovery The Grid 5 targets lie on a basement conductor which appears to trend into the Fox Lake - C10 conductor Cameco describes Fox Lake project as showing potential of hosting a significant deposit with mineralization found 90 to 150 metres above the unconformity. 26

27 West McArthur - Grid 5 Drilling CanAlaska s 2012 Grid 5 drilling shows target like nearby Fox Lake discovery (hole WMA 034) New Squid geophysics survey accurately defined target to within 50 metres. WMA034: large As-U geochemical halo in sandstone to 350m above unconformity. The basement rocks are also clay altered. Graphitic sediments intersected in drill hole Borehole EM Survey detects main graphitic conductor 40 to 60 metres north of drill hole, and defines next drill location Significant target indicated. 27

28 West McArthur Comparison Cameco s Fox Lake- Initial holes (2008) Cameco s Fox Lake.. Early holes (2008) Uranium Mineralization Uranium Mineralization Cameco discovered significant mineralization in the sandstone and basement rocks. There has been over 50,000 metres of drilling (ie est over $15M of work by Cameco), and detailed work in continuing. This discovery is on the extension of the West McArthur Grid 5 conductor. Intense Drilling has continued since In February-March 2012 CanAlaska drilled the first holes into the Grid 5 conductor and intercepted significant alteration halos and uranium pathfinder minerals 28

29 Cree East Project Targets Minimum target size of 50M+ lbs Uranium. Zone B target is very large, with alteration halo which reaches surface (400 metres) The Korean Consortium has contributed $19M for a 50% interest in the partnership. Multiple targets proved positive first drill results along a 4km trend. Zone B and A are priority drill targets Targets of interest intercepted strong hydrothermal alteration in the basement rocks and elevated base and precious metals in the overlying sandstone. Winter 2012 drilling on Zone B terminated early by warm weather and ice breakup 29

30 Cree East Zone A 150 metres Uranium enrichment Zone A: Strong geochemical-clay alteration halo to 250 metres above unconformity Wide clay zones intersected in basement rocks indicated high fluid flow for mineralizing event. Base and precious metal values highly elevated in basement rocks. Over 50 metres vertical offset at unconformity gives potential for large deposit. Unconformity surface and drillholes Hole spacing along offset is still metres apart metres and infill drilling is 30 needed

31 Cree East Project Zone B Drilling Intense classic alteration system at Zone B extends from unconformity to surface. Three incomplete holes above target at end of program in March 2012 Rotated blocks, clay alteration, silicification, high base and precious metal geo-chemistry, Resistivity profile showing alteration plume Large sulphide halo for 250 metres in sandstone. Hole lost before target NNW-SSE Section through from CRE086 to CRE088 Over 50 metres uplift against quartzite unit and strong chlorite alteration in basement rocks. 31

32 NW Manitoba Maguire Trend Five Year hiatus following $6.7M of work NW Manitoba Project: The extension of the Saskatchewan uranium belt Uranium is found in all rock types MOU in place with Lac Brochet First Nations Successful geophysics in March-April 2012 Maguire Trend gravity-resistivity targets drill ready Manitoba drilling moratorium lifted 2012 >.1% U3O8 32

33 7 NW Manitoba Project Lake Sediment Geochemistry 1831 Lake Sediment Samples collected from helicopter (see map dots) Maximum Value = 532 ppm U Extensive sampling lead to Uranium outcrop and dispersion trails. U ppm Sample on left is pitchblende with clay coating. (>60% U3O8)

34 NW Manitoba Maguire Trend Survey Multiple areas of uranium boulders and uranium in outcrop. Image shows magnetics, conductors and gravity information 34

35 NW Manitoba Comparison: Similar to known deposits in Nunavut (AREVA: Andrew Lake 40 m lbs); has strong gravity- resistivity low Project status Mineralization at surface suggests open pit potential. Multiple gravity-resistivity targets. Outcrop containing 9.5% U Boulders in glacial till 66.3% U Ground resistivity & ground gravity survey 2012 on Maguire Trend 1km Gravity Low indicates clay alteration within target area Priority drill target A Structural breaks with: IP Chargeability Gravity Low ( blue zones) Resistivity Low Project Comparison- Andrew Lake: Low gravity and low resistivity define main alteration zone within uranium target of 40M lbs U (see blue zone) 35

36 Geophysical Exploration Model DC Resistivity Low Contour Why are Gravity and DC Resistivity surveys effective? Hydrothermal alteration potentially related to uranium mineralization generally produces clay alteration halos that have a lower density and lower resistivity than fresh host rock. 200 m Gravity Andrew Lake / Kiggavik Deposit Basement hosted unconformity style Uranium in a clay alteration halo Coincident DC resistivity low and gravity low 59 million lbs U 3 O 8 at 0.38 % Project Area: Andrew Lake + Kiggavik + End Grid Deposits 134 million lbs U3O8 at 0.23 % (Geological Resources from Areva Resources Canada Inc, Report The Kiggavik Project: Project Proposal, Nov 2008) 11

37 Fond Du Lac Project Project Statistics Project Size: 16,000 hectares Ownership: 50% CanAlaska, 50% FDL Resources Targets discovered: New DDH 017 Target Size: Minimum 5M lbs U Drill targets tested to date: 1 Unconformity depth: 2-50 metres Metres Drilled: 7,755, 68 completed drill holes Project: Exploration Program & Update: New main target appears to be feeder zone to the historic Fond Du Lac sandstone hosted uranium deposit. Exploration Drill Program and Strategy: 3,500 metre diamond drill hole program to test extension of FDL017 drill hole mineralization ( % U ) NE trending shear zone predicted from geophysics and drilling. Update: Further geophysical modeling shows additional deeper targets. Other: Multiple targets with surface boulders (boulder fields) mapped Geophysics: First detailed ground and modern airborne carried out by CanAlaska 37

38 Fond Du Lac Project status Contains 1 million lbs (historical non compliant) uranium resource in top 40 metres of sandstone. New near surface discovery in drill hole FDL m 0.32% U in breccia feeder zone in first modern exploration work. Multiple other uranium targets identified by surface boulder fields containing mineralized Athabasca sandstone. Within the Fond du Lac Denesuline First Nation territory, at the eastern end of Lake Athabasca. Effective private minerals and land. Partnership in place with First Nation Community. Strong incentive to develop targets. 38

39 Fond Du Lac New Discovery Fond Du Lac Deposit Cross Section showing historical deposit and new drilling result New mineralization found under the deposit DDH FDL017; 0.32% U basement mineralization Scale approximate

40 Advances in Technology Airborne Surveys 1985 Electronic Signals 1000 m 100 m Plume of Alteration can be detected with modern surveys Major advances in Exploration techniques include Deep penetrating Airborne Surveys allow us to see conductors and alteration zones up to 1000m below surface 40

41 Advances in Technology Ground Surveys Geophysical signature Model Resistivity And EM Interpretation and drill targets Clay alteration Unconformity Basement rocks conductors 41

42 New Squid EM Surveys Major advance in target definition Clean SQUID* data Peak location within 100 metres Peak Location The new Nitrogen filled SQUID EM receiver has the very low noise and high signal strength. This allows the Peak to be picked more accurately Error noise For peak from coil EM system 1000 m error with coils This allows a 10-20X increase in accuracy for the location of deep conductors ie. sharper target, less drill holes to discovery. * Superconducting Quantum Interfacing Device 42

43 Example of Uranium Deposits Uranium Zones within the Athabasca Basin are small but have large alteration halos Discovery Process: 1. Airborne Survey s find the halo 2. Ground Geophysics refines the target 3. Multiple holes drilled across the target find the narrow mineralized fault zones ORE ZONE 20 metre fault Deposit 43

44 Other projects CanAlaska is actively marketing the following projects:

45 Pikoo Diamond Discovery Saskatchewan

46 Ruttan VMS Project Manitoba North Central Manitoba has seen little mineral exploration in recent decades and has not been systematically mapped since the late 1960s. North Central Manitoba has seen little mineral exploration in recent decades and has not been systematically mapped since the late 1960s. The very large, 84M ton Ruttan Copper-Zinc mine ( ), provides a model for exploration in this area. The very large, 84M ton Ruttan Copper-Zinc mine ( ), provides a model for exploration in this area. Ruttan Project CanadianVMS deposits

47 Property near Ruttan Mine SPECTREM airborne survey conductors Geologically large to giant volcanic massive sulphide (VMS) deposits such as Ruttan rarely occur in isolation, they typically form camps or clusters of deposits -- consequently based on targeting and prospectivity analysis conducted to date, the company believes that the Ruttan deposit and immediate underexplored region holds good to excellent exploration potential