Managing Director s Presentation AGM 2006 Good morning Ladies and Gentlemen. It has been an interesting and busy first year for Monax. What I propose to do with my presentation today is to review the operations of the Company to date. Tenement Status During the year Monax has been granted an additional 3 tenements at Punt Hill, Dingo Hill, Brimpton Lake and Eureka Bluff. As the Chairman has already mentioned, the Company has increased its tenement holdings with applications over additional ground that now comprise our Mulgathing, Kimono Tank, Kolendo, Indooroopilly, Pioneer Bend and Dingo Hill West projects. All our projects are 100% owned. Program of Geophysics Acquisition Monax has undertaken an intensive gravity acquisition program over the majority of it s tenements during the last financial year. Over 6,500 new gravity data points have been collected covering over 3,945 km 2 of Monax s tenements. This data is essential for defining new targets for iron oxide copper-gold (IOCG) mineralisation, palaeochannel hosted uranium, Archaean VHMS copper-zinc deposits, komatiite hosted nickel, Broken Hill style silver-lead-zinc and iron ore targets. In addition to the intensive gravity acquisition program, Monax Mining Limited has contracted the acquisition of detailed aeromagnetics and radiometrics over the majority of its tenements. The survey is being undertaken from September 2006 through to March of 2007 and will collect over 40,000 line kilometres of new detailed areomagnetic and radiometric data. Over 21,000 line kilometres have been collected to date. Bonaventura Prospect Kangaroo Island Monax holds EL 3376 (Parndana) and EL 3088 (Western River), which cover a combined area of 401 km 2 of cleared grazing country, centred about 40 km southwest of Kingscote. The tenements were acquired from Havilah Resources NL, which intersected up to 5 metres @ 26.9% zinc at shallow depth in RC holes drilled in 2003.
Company Exploration Historical drilling failed to penetrate to depth, so Monax aimed to drill a number of deeper drillhole traverses during a drilling campaign in May and June this year. This drilling program was strategically designed to test both the depth extent and eastward continuation of mineralisation underneath this highly encouraging prospect. Cover over the prospect is very thin and mineralisation extends almost to the surface. Drilling has confirmed zinc mineralisation over an area of 300 metres across the controlling structure and 250 metres along strike. The mineralisation is open in all directions and at depth with the three most southerly holes (BVRC08, BVRC10, BVRC11) ending in mineralisation. The drill program has confirmed the possibilities of high grade zinc-lead veins and potential bulk mineable lower grade mineralisation consisting of veins and veinlets. Intersections included: BVRC02-6m @ 1.96% Zn & 0.26% Pb from 52m (including 2m @ 3.65% Zn) BVRC03 BVRC08 BVRC010 BVRC011-4m @ 2.06% Zn & 2.15% Pb from 16m - 16m @ 3.43% Zn and 0.66% Pb from 34m (including 6m @ 6.3% Zn and 2m @ 1.2% Pb) - 23m @ 1.16% Zn (ended in mineralisation) - 1m @ 3.3% Zn & 4.58% Pb from 56m - 1m @ 1.67% Zn &1.12% Pb from 63m - 4m @ 3.94% Zn (including 1m @ 9.95% Zn) from 91m - 23m @ 1.22% Zn from 98m (ended in mineralisation) - 1m @ 2.31 % Zn & 1.09% Pb from 76m - 2m @ 0.92% Zn from 78m - 1m @ 1.23 % Pb from 82m (ended in mineralisation) Due to the high influx of groundwater most of the holes could not be completed to target depth using the reverse circulation percussion rig contracted to Monax for the project. A follow up diamond drilling program is planned for the near future to complete all holes to the target depth and test the depth and lateral extent of mineralisation. An additional geologist has been hired to manage this program who is a base metals expert in this geological environment.
Punt Hill Punt Hill (EL 3457), covering 887 km 2 is located on the eastern margin of the Gawler Craton within the Olympic Iron-Oxide-Copper-Gold (IOCG) Province. The Olympic IOCG Province is host to the world class Olympic Dam deposit, Prominent Hill, and recently discovered Carrapateena Prospect (178m @ 1.83% Cu & 0.64 g/t Au). Punt Hill is situated ~25 km south of Carrapateena. Company Exploration Since granting of the tenement in late November 2005 the company has undertaken a semi-detailed 1,000 m by 500 m gravity survey followed by a 250 m by 250 m infill survey over significant anomalies. Interpretation of this new gravity data along with detailed aeromagnetics flown by the State Government has revealed numerous coincident/semi-coincident gravity and magnetic anomalies, which appear to be structurally controlled along a regional north-west fault complex. Monax believes that Punt Hill is situated in the same geological environment as the Carrapateena discovery, Olympic Dam and Prominent Hill and therefore is highly prospective for copper-gold-uranium mineralisation. Drilling of the first three targets at Whistlepig, Woodchuck and Groundhog have confirmed the presence of a large iron oxide copper gold style alteration system with visible copper sulphides identified in each hole over a strike length of 3.6 km. Preliminary assay results from the first hole (WPDD1) have been received and have outlined a broad zone of low grade copper and gold mineralisation of 66m @ 0.13% copper and 0.03 g/t gold from 788m. Monax is currently awaiting the assay results from the second and third holes which intersected more significant visible copper mineralisation. These holes are located along the same gravity anomaly as WPDD1 which extends for over 8.5 km. The current results confirm the presence of a large mineralising system along the Groundhog Gravity Trend. The Flickertail drillhole was completed early yesterday. The drillhole intersected Hiltaba Suite Granite intruded by mafic dykes at 364m with minor hematite and chlorite alteration. The drillhole was terminated at approximately 450m in granite. Further potential for IOCG style mineralisation exists on a parallel gravity ridge to the east at the Marmot and Prairie Dog targets. The Marmot residual gravity anomaly covers and area of 4km by 2km. Drilling of this target will commence early next year.
ACN 110 336 733
Contents Tenement Status Geophysical data acquisition program Drilling Programs Bonaventura Prospect Kangaroo Island Punt Hill - Iron Oxide Copper Gold
Tenement Status During the year Punt Hill, Dingo Hill, Eureka Bluff and Brimpton Lake EL s granted Kimono Tank, Mulgathing, Indoorroopilly, Kolendo, Dingo Hill West and Pioneer Bend exploration licences applications
TENEMENT STATUS Project Tenement Status Acquired Area km 2 Ambrosia EL 3358 Mt Hope EL 3355 Moorlands EL 3356 Parndana EL 3376 Western River EL 3088 Wynbring EL 3359 Eureka Bluff EL 3458 Dingo Hill EL 3394 Mattaweara EL 2964 Waddikee EL 3357 Punt Hill EL 3457 Brimpton Lake EL 3561 Granted 100% 854 Granted 100% 320 Granted 100% 324 Granted 100% 100 Granted 100% 188 Granted 100% 247 Granted 100% 549 Granted 100% 516 Granted 100% 119 Granted 100% 1004 Granted 100% 887 Granted 100% 221 5108 km 2
TENEMENT STATUS Project Tenement Status Acquired Area km 2 Mulgathing ELA 134/06 Kimono Tank ELA 136/06 Dingo Hill West ELA 173/06 Kolendo ELA 202/06 Indooroopilly ELA 315/06 Pioneer Bend ELA 557/06 Application 100% 258 Application 100% 234 Application 100% 195 Application 100% 130 Application 100% 570 Application 100% 95 1703 km 2
Geophysics Acquisition 6500 new gravity data have been collected over various Monax tenements during the year, ~ 3000 on our Punt Hill tenement 21123 out of 41637 line km detailed aeromagnetics have been flown. The survey will be completed early next year.
Geophysics Acquisition Residual gravity image Ambrosia tenement Residual gravity image Punt Hill tenement
Bonaventura Prospect Kangaroo Island
Bonaventura Prospect Kangaroo Island 11 reverse circulation drill holes completed between 80 and 179m deep Targeted extensions of previous high grade zinc intercepts by Havilah Resources Dr Justin Gum has been appointed to undertake follow up drilling
Bonaventura Prospect Kangaroo Island
Bonaventura Prospect Kangaroo Island Drill section Bonaventura Prospect Drill plan Bonaventura Prospect
Punt Hill IOCG Project
Punt Hill Iron oxide copper gold (IOCG) project 6 deep diamond drill holes completed to date Targeted two distinct alteration systems First 3 holes have intersected IOCG style alteration and visible copper mineralisation in the first system Second 3 holes hit the western margin of a second alteration system with minor copper sulphides
Punt Hill Iron oxide copper gold (IOCG) project
Punt Hill Main zone of interest is the Groundhog Gravity Trend Covers an area of 25 km x 8 km Current drilling has demonstrated source of gravity is caused by IOCG style alteration of basement rocks Residual gravity image
Punt Hill Two main zones of alteration identified to date Confirmed by the first six drill holes All 6 drill holes drill within the tenement to date have intersected IOCG style alteration Implies a large alteration and potentially mineralising system First vertical derivative magnetic image
Punt Hill Faults Whistlepig, Woodchuck and Grounhog drill holes intersected IOCG style alteration and mineralisation Gravity anomaly is over 8.5 km long, 2 km wide System is controlled by north-west structural corridor with cross cutting north-east faults Residual gravity image Gravity ridge to the north-east yet to be tested
Whistlepig Drill Core Bornite in hematite-albite altered volcanics Bornite in amphibole-chloritehematite altered volcanics Bornite in hematite-albite-chlorite altered volcanics
Whistlepig 1 60 m @ 0.13% Cu and 0.03 g.t Au Whistlepig 2 to be drilled
Woodchuck Drill Core Bornite and minor chalcopyrite in hematiteamphibole-chlorite alteration Bornite in hematite altered volcanics Chalcopyrite in chlorite-hematitecarbonate alteration Chalcopyrite in chlorite-hematite alteration
Groundhog Drill Core Examples of copper sulphide mineralisation in the Groundhog drill hole (blue = bornite, yellow = chalcopyrite)
Residual Gravity Plan to drill Marmot target early next year Significantly larger target on a 10 km by 2 km gravity anomaly
Magnetics Marmot occurs in the eastern part of the hydrothermal alteration zone
Residual Gravity Plan to drill Marmot target early next year Significantly larger target on a 4 km by 2 km residual gravity anomaly
Ladies and Gentlemen, that completes my presentation. In closing I would like to take this opportunity to thank all the Monax staff and my fellow directors for their support during the past year.