Joma Vilhelmina Initiative Presented by Jason Stirbinskis, CEO. March 2014

Transcription

1 Joma Vilhelmina Initiative Presented by Jason Stirbinskis, CEO March 2014 (A fully narrated and animated version of this presentation is available on Drake s website)

2 Disclaimer & Competent Persons Statement This presentation has been prepared to provide information on Drake Resources Limited s projects. It is not intended as an offer, invitation solicitation or recommendation with respect to the purchase or sale of any securities. This presentation should not be relied upon as the sole representation of any matter that a potential investor should consider in evaluating Drake. Its affiliates or any of its directors, agents, officers or employees do not make any representation or warranty, express or implied, as to or endorsement of, the accuracy or completeness of any information, statements, representations or forecasts contained in this presentation, and they do not accept any liability for any statement made in, or omitted from, this presentation. Prospective investors should make their own independent evaluation of an investment in the Company. Caution Regarding Forward Looking Information. This document contains forward looking statements concerning Drake. Forward-looking statements are not statements of historical fact and actual events and results may differ materially from those described in the forward looking statements as a result of a variety of risks, uncertainties and other factors. Forward-looking statements are inherently subject to business, economic, competitive, political and social uncertainties and contingencies. Many factors could cause the Company s actual results to differ materially from those expressed or implied in any forward-looking information provided by the Company, or on behalf of, the Company. Such factors include, among other things, risks relating to additional funding requirements, metal prices, exploration, development and operating risks, competition, production risks, regulatory restrictions, including environmental regulation and liability and potential title disputes. Forward looking statements in this document are based on Drake s beliefs, opinions and estimates of Drake as of the dates the forward looking statements are made, and no obligation is assumed to update forward looking statements if these beliefs, opinions and estimates should change or to reflect other future developments Competent Persons Statement The information in this report that relates to Exploration Results is based on information compiled by Dr Bob Beeson, a Competent Person who is a Member of the Australian Institute of Geoscientists. Dr Beeson has sufficient experience that is relevant to the style of mineralisation and type of deposit 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. Dr Beeson consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. 2

3 Combining to achieve critical mass Vilhelmina Mineral AB Stockholm Registered Public Company Primed for listing Holds Stekenjokk Mine and Levi deposit including 100,000m of core and 3000m of tunnel within Stekenjokk Previous production 1.15%Cu, 3.5%Zn Substantial mineralisation at both sites Mineralisation to be assessed for 2012 JORC compliance ASAP 100% Combined Focus on possibility of near term production primarily based on known mineralisation Assumes single processing facility Significant long term opportunities Drake s Joma and Gjersvik ~100km 2 of highly prospective copper/zinc ground with multiple geophysics targets Established underground access and mine facilities Joma previous production 1.49%Cu, 1.45%Zn Gjersvik previous production 2.15%Cu, 0.50%Zn Strong community support and JV with local Commune over 12km 2 - Drake can earn 100% 1 100% Why? Adds immediate value to Drake s Joma residual Clear synergies Current market dynamics Preference for copper Low risk jurisdictions Potential quick to production on modest CapEx Logical alliance potentially achieves critical mass Preference for development over early exploration 1: An Exploration and Exploitation Agreement with Joma Naeringspark (JN), the commercial branch of the Røyrvik Commune and the owners of two claims (12km 2 ) which contain the Joma mine/project. Under the agreement Drake has the ability to obtain a 100% interest upon meeting option payment and milestone obligations. 3

4 Capturing the synergies Established mine access Advanced knowledge of residual mineralisation and extensions Similar mineral suite = Common process flow Historical processing was convention floats to produce copper and zinc concentrates 40km apart straight line; 55km apart via established roads Infrastructure at both sites Strong local network, broad skills within the combined team Access to Nordic, UK and Australian equity markets Stekenjokk Joma Port Smelter The combination potentially secures a critical mass of known and accessible mineralisation leveraging a shared processing facility with ongoing possibilities for additional mineralised extensions and new discoveries. 4

5 Eyes on near term production Joma Extensive historical data should require minimal effort to upgrade to a Resource Joma buildings intact and good order De-watering of U/G required All weather roads Smoother path to licencing given previous production 15km from Røyrvik (pop: <500) Local commune very supportive Local skills, some with direct experience at Joma Joma stockpile facility has conveyors feeding down hill to the processing facility and workshops Processing facility and workshops The local Commune and its business wing have been extremely supportive of Drake s efforts to advance Joma and bring industry to the region. 5

6 Eyes on near term production Stekenjokk Resource and category to be validated and upgraded to 2012 JORC compliance ASAP Some infrastructure in place All weather roads around site De-watering of U/G required Targeting exploitation licence

7 Geology VMS mineralisation of predominately massive sulphides containing pyrite, chalcopyrite, sphalerite and galena Long history of copper mining 25 Copper discoveries 1 in the Grong metallorgenic area Koli nappe complex of the Caledonides Joma Massive sulphide lenses between two volcanic/intrusive complexes. Gjersvik Spoon shaped deposit with massive sulphides up to 8m thick in places. Zn rich layer (10% -20% Zn) occurs 20m above main ore body. Stekenjokk Statabound massive sulphide mainly felsic hosted volcanics deposited as ash flows; also a disseminated pyrrotitic ore. 1 Geological Survey of Finland, Special Paper 53 (2012) Page 95 7

8 Joma Mineralisation Joma Mineralised lenses up to 50m thick Dipping to WSW from surface (outcropping in East and North) and flattening out at depth Ranges from Cu-Rich to Zn-Rich, typically low in other economic minerals 100m Mineralised zones looking north (includes mined out areas) Surface drillholes (purple) and U/G drill holes (blue) collar locations Section showing mineralised boundary based on SG >2.9 8

9 Stekenjokk / Levi Mineralisation Stekenjokk Massive sulphides dominated by pyrite, sphalerite, chalcopyrite and galena Outcrops in North dips to South Mined out (cut and fill) for 2.5km length (400m down) Remaining mineralisation is southerly sub horizontal extension for 3km and 600m level at its deepest Grades of Au, Ag and Pb might be of supplemental economic interest Levi Same mineralised unit, 1.5km North Defined strike length of 3.1km from surface to 600m level Intensive drilling ~140 drill holes for >16km of core 9

10 Immediate Steps toward 16 Production March May July September November January Joma/Stekenjokk Project Complete Due Diligence Scoping Study output JORC 2012 Compliant Resources 1 JORC Compliant Reserves Exploitation Concessions awarded Feasibility study commences FS complete Corporate Formalise agreement and structure Joint funding of Scoping study and FS Other projects Guinea field work Guinea drilling Guinea drilling results Granmuren VTEM Granmuren & Espedalen Ground Geophysics 1 Assumes validation drilling is not required 10

11 Long Term Future for Joma/Vilhelmina Potential at Joma/Gjersvik Geophysics Targets in immediate vicinity of Joma Residual ore at Gjersvik mine? ~100km 2 of relatively under-explored section of the Koli Nappe Complex (see cover slide) The potential for additional mineralisation around Joma is significant. Processing Hub Koli Nappe Complex does not have a working Cu/Zn processing facility Numerous closed mines, deposits, tailings and anomalies throughout the complex are a potential source of feed Acquisition / JV Drake holds 366km 2 of additional highly prospective Cu/Zn tenements in Norway 1 and 49% owner in 35km 2 of Cu/Au deposits in Sweden 2 Possibility of growth through acquisition of other regional assets (see slide 7) Targets identified via Gravity, Magnetic & EM surveys. Target 1 is larger than the Joma geophysics signature 1: Assets include Lokken, Nordgruva and Sulitjelma land parcels which are all subject to JV arrangements with Panoramic Resources. Panoramic can earn up to 70% interest by achieving certain targets. 2: Bergslagen JV assets includes the historic Falun copper mine 11