'State of the Market: Exploration Report' by IntierraRMG Edition 1 2013

'State of the Market: Exploration Report' by IntierraRMG Edition 1 2013



This quarterly report focuses specifically on exploration activities and trends for the previous and upcoming quarters. It includes data and opinion on exploration hot spots, drilling activity trends ...

This quarterly report focuses specifically on exploration activities and trends for the previous and upcoming quarters. It includes data and opinion on exploration hot spots, drilling activity trends and exploration financing.



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    'State of the Market: Exploration Report' by IntierraRMG Edition 1 2013 'State of the Market: Exploration Report' by IntierraRMG Edition 1 2013 Document Transcript

    • Edition 1, 2013 State of the Market: Exploration Report Comprehensive examination of recent exploration activities and trends, plus the outlook for the next quarter
    • ContentsDriller’s Log 03Feasibility Studies 04Capital Raising for Exploration 06Exploration Hot Spots 07Exploration Results 11Assay Share Price Alert 15STATE OF THE MARKET: EXPLORATION REPORT Report is published by CONTRIBUTORS IntierraRMG IntierraRMG Pty Ltd Stuart Ferguson Abbey House, 5th Floor Narelle Gardiner 74-76 St John Street Contact Chris Hinde London, EC1M 4DZ Chris Hinde Glen Jones Tel: +44 (0)20 7780 7470 Editorial Director Greg Kay Website: www.intierraRMG.com Email: chris.hinde@intierraRMG.com Richard Murphy Peter Rossdeutscher Kelly Chan Jeremy Thompson Marketing Manager Email: miningreports@intierraRMG.comThis report is supplied on a confidential basis for the subscribers use only. The contents must not be disclosed to third parties and it must notbe copied in whole or in part without the prior written permission of IntierraRMG Pty Limited. Photocopying and electronic forwarding prohibited.Copyright 2013 IntierraRMG.Edition 1, 2013 State of the Market: Exploration Report 02
    • Driller’s Log There is light at the end of the tunnel, at last, for the beleaguered exploration sector but it is far from a beaconFunds raised for mineral exploration in the December 2012, IntierraRMG estimated that therethree months to end-December registered a were 1,756 companies (ie about half of the total)welcome improvement compared with the dire with a market capitalisation of under US$10September quarter. Moreover, financings by million. There were a further 817 companiesthe exploration (junior) companies themselves (almost one-quarter of the total) with a year-endalso saw growth during the latest period. market capitalisation of US$10‑49 million. The upturn in funding for exploration, and by the The companies that represented the smallest 50% ofjuniors, will be welcomed throughout the mining the industry, raised less than 3% of the total financingsector, and comes just in time for the Prospectors in the past quarter, equivalent to just US$102,000 forand Developers Association of Canada (PDAC) each company. With funding scarce, many of theseconference in Toronto at the start of March. smaller companies remain in a period of dormancy as Financing for exploration reached US$1.49 they ride out the current weakness in debt and equitybillion in the quarter just ended, compared with markets. The situation remains especially difficultonly US$0.65 billion in the three months to end- for those with little prospect of early cash flow.September. The Toronto Stock Exchange (TSE) was Even those companies with metals productionthe largest source of exploration funds for the have been battered by investors perceptionsquarter (US$586 million) followed by the Australian of disappointing revenue as metals prices fall,Stock Exchange (ASX; US$519 million) and the TSX- narrowing margins as costs continue to rise,Venture Exchange (US$319 million); all measured in and rising operating risk as social tension rise.terms of the primary exchanges for each financing. As companies went into the December quarter, There are caveats, however, and although we cash holdings had fallen to under a combinedhave surely now passed the worst, the scenario for US$2.0 billion for those companies with a marketexploration companies remains extremely difficult. capitalisation of under US$10 million. The just over There are almost 3,500 listed companies in 1,000 companies that have a market capitalisationthe international mining industry, and the sector of US$10-100 million had combined cash holdingshad a combined market capitalisation of just at the end of September 2012 of some US$7.3over US$2,500 billion at the end of the December billion. This was dwarfed, however, by the US$252quarter. The top 681 companies (those that each billion held in cash by the largest companies.had a year-end market capitalisation of over US$100 With the lacklustre commodity prices, valuations formillion), accounted for 98% of the industrys overall the smaller companies have remained depressed. This,market capitalisation, and 84% of the combined in turn, has made it difficult to finance projects byfinancing during the December quarter. raising equity through public offerings. With their large However, the majority of the companies in cash holdings; we expect bids from the majors for somethe industry are extremely small. At the end of of the struggling juniors that have attractive projects. Gold prices (US$/oz) Copper prices (US$/t) 1,900 10,300 1,800 9,800 1,700 9,300 1,600 8,800 1,500 8,300 1,400 7,800 1,300 7,300 1,200 6,800 Jan 2011 Dec 2012 Jan 2011 Dec 2012 Iron ore prices* (US$/t) Coal prices* (US$/t) 180 * 62% Fe CIF China 150 * Australian thermal coal, 170 (12,000btu/lb, under 1% sulphur, 14% ash, 140 FOB Newcastle/Port Kembla) 160 130 150 120 140 130 110 120 100 110 90 100 80 Jan 2011 Dec 2012 Jan 2011 Dec 2012Edition 1, 2013 State of the Market: Exploration Report 03
    • 15% offState of the Market Reports Annual Subscription (4 editions) For limited time only. Exploration Mining FinanceThe State of the Market Reports detail the state and outlook of the mining industry focusing on data-driven trends inexploration, metals production, mining and finance. The report series provides data and opinion on the closed quarter,plus forward views on the upcoming period. Contributors include Professor Magnus Ericsson and Dr. Chris Hinde.State of the Market: Mining and Finance Report Subscription promo price: USD3,060 + Tax Each quarterly issue includes: ► Market for Mining ► Exploration Hot Spots ► Mergers and Acquisitions ► Exploration Results ► Mining Finance ► Assay Highlights ► Product Updates ► Special Features Upcoming Special Features • Overview of the mining industry in 2012 • Mining royalties and taxation • Special Coverage: Cash cost data • Mid-year examination of the world’s metals stockpiles Usual price: USD3,600 + local tax • Mining methods, and technology developments and trends • Metal prices, grade and tonnage predictions for 2014 For limited time only!State of the Market: Exploration Report Subscription promo price: USD1,360 +Tax This quarterly report focuses specifically on exploration activities and trends for the previous and upcoming quarters. It includes data and opinion on exploration hot spots, drilling activity trends and exploration financing. Each quarterly issue includes: ► Driller’s Log ► Feasibility Studies ► Capital Raising for Exploration ► Exploration Hot Spots and Results ► Assay Share Price Alert Usual price: USD1,600 + local tax To download a free report sample, visit: www.intierraRMG.com For limited time only. To subscribe, e: miningreports@intierraRMG.comwww.intierraRMG.com
    • Feasibility Studies Feasibility studies announced during a quarter are perhaps the best indicator of the health of the exploration sector; and the jury is outThe exploration scene across the international mining feasibility studies announced during the Decemberindustry is, at best, mixed. In the three months quarter (with Africa leading the way with nineto end-December (Q4), compared with the year- projects), compared with 21 in the year-ago quarterago equivalent (Q4; 2011), the life-of-mine (LOM) (with North America accounting for ten projects).capital expenditure collapsed at feasibility studies* In terms of capex and value, Asian projectsannounced for projects in North America (US$12.73 have featured strongly in each of the pastbillion to US$3.84 billion; see graph on p5). In two quarters, with each three-month periodcontrast, the LOM capex soared at feasibility studies being skewed by the announcement of afor projects in Asia; from only US$907 million a very significant single feasibility study.year ago to US$6.93 billion in the latest quarter. In late August, Newcrest announced the results of *In this regard, the graphs on p5 include pre- and a pre-feasibility study (PFS) on the Golpu deposit,bankable- feasibility studies, but do not incorporate located in Papua New Guineas Morobe Province.preliminary economic assessments or scoping studies. The announcement included a new ore reserve These figures are reflected in the anticipated estimate for the deposit containing 12.4Moz of goldnet present value (NPV) for the announced and 5.4Mt copper (an increase of 11.0Moz gold andfeasibility studies (at a discount rate of 8%); 4.7Mt copper, compared with the previous estimate).see illustration. (Note that exchange rates are taken The PFS estimated total capital expenditureat the date of the individual announcements.) for the life of the project to be in excess of One year ago, North American projects dominated US$9.8 billion, spread across over 32 years,these global valuations US$10.17 billion in Q4 2011), with a capital cost of nearly US$5 billion to getbut now there is little to choose between the value to first production (estimated to be in 2019).of projects in Africa, Asia, Europe and North America Another copper-gold project in PNG is Frieda(all US$2.7-3.4 billion in Q4). The poor relations River, and on Christmas Eve a project-updatein the quarter just ended are Australasia (US$1.15 feasibility study was delivered. Key findings includedbillion) and South America (only US$429 million). a LOM average output of 204,000t/y copper and In the qualifying algorithm for the number of 305,000oz/y gold, and capex of US$5.6 billion,new development projects, IntierraRMG has only based on a 50-60Mt/y plant and a 1.29:1 stripconsidered those studies where both a NPV and ratio. Further discussions are anticipated this yeara capital-cost estimate has been given (this is a between Frieda River Joint Venture Participants andlimiting factor, especially for projects in South the government to determine equity ownership,America). Under these rules, there were 26 new global partnering, permitting and development. Number of New Development Projects NORTH AMERICA AFRICA AUSTRALASIA ASIA EUROPE SOUTH AMERICA 12 10 8 6 4 2 0 DECEMBER Q MARCH Q JUNE Q SEPTEMBER Q DECEMBER Q 2011 2012Edition 1, 2013 State of the Market: Exploration Report 04
    • LOM CAPEX by location 2011 - December Q 2012 - March Q 2012 - June Q 2012 - September Q 2012 - December Q $14B $12B $10B $8B $6B $4B $2B $0 AFRICA ASIA AUSTRALASIA EUROPE NORTH AMERICA SOUTH AMERICA Proposed NPV by Location 2011 - December Q 2012 - March Q 2012 - June Q 2012 - September Q 2012 - December Q $12B $10B $8B $6B $4B $2B $0 AFRICA ASIA AUSTRALASIA EUROPE NORTH AMERICA SOUTH AMERICAEdition 1, 2013 State of the Market: Exploration Report 05
    • Capital Raising for Exploration The quarter just ended saw very similar exploration financing compared with a year ago, but the composition of the funding has changed dramaticallyThe amount of money raised for exploration in of developing two projects in the Democraticthe quarter to end-December was US$1.49 billion, Republic of Congo (DRC) and one project in Southvery similar to the amount raised in the final Africa. Over 60 million common shares wereperiod of 2011. However, the contribution from issued, raising in excess of US$300 million.the Toronto Stock Exchange (TSE) has almost Ivanplats is focussed on Africa, and its activitydoubled to US$586 million (39% of the total) to during the past quarter is also what caused the Africanovertake the contribution from the Australian spike in the illustration below. The company is focusedStock Exchange (US$519 million, compared with on exploration and development of major copper,US$638 million in the year-ago quarter). platinum, palladium, gold, nickel and zinc projects. The past quarter represented a significant The higher ASX fund-raising for explorationimprovement on the previous two quarters. in the December quarter, compared with theOnly US$645 million was raised for exploration preceding periods, was reflected in higherin the September quarter, and US$559 million exploration expenditure in Australia.in the June quarter (with the ASX and TSX- A couple of major financings contributedVenture Exchange, in Vancouver, dominating significantly to this overall picture. Focus Minerals,both periods); see illustration below. a leading Australian gold producer and explorer, If unspecified destinations for the exploration completed a placement to Shandong Gold, issuingfinancing are excluded (US$314 million in the over 4 million new fully-paid ordinary shares (raisingDecember quarter), three regions dominated the some US$225 million). As the company indicated atgeographical focus in the last three months of the time, this funding will allow Focus to acceleratethe year; Africa (US$381 million), Australasia development of its significant land-holdings(US$364 million) and North America (US$314 across two Australian gold producing regions.million). This brought the total amount raised A smaller, but still significant, financing wasfor exploration in 2012 to US$3,956 million. the next step in the fast developing Sirius story. Fund-raising on the TSE for exploration was The company issued 22 million new fully‑paiddominated in the past quarter by the float of ordinary shares (allotted and issued in lateIvanplats Ltd, which has the near-term objective December), raising over US$44 million. Exploration cap raising by exchange 2011 - DECEMBER Q 2012 - MARCH Q 2012 - JUNE Q 2012 - SEPTEMBER Q 2012 - DECEMBER Q $700 $600 $500 Millions $400 $300 $200 $100 $0 ASX TSX TSE London (AIM) Other NYSE Exploration cap raising by region 2011 - DECEMBER Q 2012 - MARCH Q 2012 - JUNE Q 2012 - SEPTEMBER Q 2012 - DECEMBER Q $500 $450 $400 $350 $300 Millions $250 $200 $150 $100 $50 $0 AFRICA ASIA AUSTRALASIA EUROPE NORTH AMERICA SOUTH AMERICA UNSPECIFIEDEdition 1, 2013 State of the Market: Exploration Report 06
    • Exploration Hot SpotsThere is hope, at last, for the mining sector despite a new low in exploration activity Quarterly Drilling Reports (Individual Prospects)Last month’s exploration activity representedthe lowest monthly total since February 2010, Copper Dec Q 2012 Sep Q 2012 Dec Q 2011and meant that the number of drilling reports Canada 60 50 66has fallen for three consecutive months. Australia 64 83 94 According to IntierraRMG’s on-line database, USA 18 17 29IntierraLive, there were drilling reports from a total of Mexico 7 8 16356 prospects in December 2012 (this total includes Brazil 2 4 7reports from more than one drilling prospect per N&C America 90 83 113project), compared with 675 in December 2011. S. America 28 31 36 There has been a particular slump in drilling at Europe 10 21 10gold prospects, with only 155 being reported in Africa 33 31 23December, compared with the recent peak of 493 Asia 13 28 40in November 2011; see chart on p10. (Note that the Australasia 64 83 94sum of the three one-month amounts in any quarter TSX/TSX-V* 127 140 151will be considerably greater than the consolidated ASX* 103 128 147three-monthly project total shown in the drilling London* 4 2 4activity tables, because of multiple reports of drillingfrom the same prospect during the period.) TOTAL 238 277 316 * Primary listing of issuing company The slump in drilling reports over the pastfew months left the total for calendar 2012 wellbehind the number recorded in 2011, but stillwell ahead of the industry’s nadir in 2010. Lead Dec Q 2012 Sep Q 2012 Dec Q 2011 Canada 17 10 16Gold dominates Australia 11 17 14As normal, the search for gold dominated the USA 4 3 6reports of drilling activity during the quarter to Mexico 5 7 19end-December, with a total of 702 prospects Brazil(1,111 in the final quarter of 2011). The next N&C America 26 20 41most significant exploration targets (in terms of S. America 1 9 9individual drilling prospects) were copper (238), Europe 2 4 5silver (174) and zinc (72); see tables on this page. Africa 3 2 1 Canada led the way in the gold sector, with Asia 5 9 5192 prospects reporting drilling activity, followed Australasia 11 17 14by 114 in Australia and 52 in the US. However, TSX/TSX-V* 27 31 44these numbers are dramatically lower than ASX* 17 23 24the year‑ago period, when the figures were London* 3 3 3279, 218 and 88, respectively, for the threecountries. Indeed, drilling activity for gold in TOTAL 48 61 75the whole of North and Central America has * Primary listing of issuing companyfallen from 443 in the final three months of2011 to just 299 in the quarter just ended. The next most important region for gold- Zinc Dec Q 2012 Sep Q 2012 Dec Q 2011drilling activity in the December quarter was Canada 23 14 24Australasia (with reports from 116 projects), Australia 15 27 22followed by Africa (108) and South America (88). USA 6 5 9Nevertheless, Australasia has seen a particularly Mexico 5 8 17sharp decline in gold exploration, with drilling Brazilreports falling 47% since the year‑ago quarter. N&C America 37 29 50 Australia remains the leading exploration S. America 6 15 9destination for copper, with 64 prospects Europe 4 7 7reporting drilling activity during the quarter Africa 5 2 3just ended. This total is sharply lower, however, Asia 5 9 7than the year ago figure (94), and leaves the Australasia 15 27 22country only just ahead of Canada (60 in the TSX/TSX-V* 44 39 52December quarter, and 66 a year ago). ASX* 21 35 37 Copper exploration has also fallen sharply in London* 2 4 3the US, with just 18 prospects reporting drillingduring the final quarter of 2012, compared TOTAL 72 89 98with 29 reports in the year-ago period. * Primary listing of issuing companyEdition 1, 2013 State of the Market: Exploration Report 07
    • Exploration Hot Spots continued Gold Dec Q 2012 Sep Q 2012 Dec Q 2011 Silver Dec Q 2012 Sep Q 2012 Dec Q 2011 Canada 192 198 279 Canada 39 31 56 Australia 114 209 218 Australia 18 23 22 USA 52 72 88 USA 21 25 26 Mexico 42 44 60 Mexico 47 48 67 Brazil 23 21 32 Brazil N&C America 299 328 443 N&C America 112 110 151 S. America 88 109 129 S. America 24 56 55 Europe 37 49 35 Europe 2 10 8 Africa 108 158 178 Africa 5 14 9 Asia 54 57 106 Asia 13 15 16 Australasia 116 210 220 Australasia 18 23 22 TSX/TSX-V* 422 511 615 TSX/TSX-V* 115 151 172 ASX* 203 313 346 ASX* 28 40 49 London* 47 43 57 London* 15 15 15 TOTAL 702 911 1,111 TOTAL 174 228 261 * Primary listing of issuing company * Primary listing of issuing company Nevertheless, North and Central America again Measuring the drilling reports in terms ofled the way in the search for the metal, with a the primary-listing location of the companytotal of 90 reports during the quarter (113 a year making the announcement, it is clear thatago), compared with 64 (94) in Australasia, Canadian companies are in the ascendancy.33 (23) in Africa and 28 (36) in South America. Companies listed on the Toronto Stock Exchange These targets are illustrated geographically (TSX) and TSX-Venture Exchange (together thein the ‘Activity Map’ opposite. TMX) accounted for 53% of the 238 copper reports Identify More Exploration Opportunities IntierraLive is the world’s premier tool for finding and evaluating exploration or acquisition opportunities in the mining industry. It provides financial • Latest drill results and discoveries information that can be merged with resources and global lease data. • Initial reserves estimates Our online mapping environment enables users to: • Exploration budgets and expenditures • Lease ownership and expiration details ► View data on lease/project types and changes in status/activity • Commodity and geography trend analysis ► Interrogate layers in context • Reserves replacement strategies ► Monitor acquisition targets for future pegging opportunities • Tens of thousands of feasibility documents “First Quantum uses IntierraLive as its primary research tool in evaluating acquisition opportunities. First Quantum has successfully identified and subsequently purchased two outstanding projects with a value in excess of US$700M. If we didn’t have IntierraLive we would need another full time employee for evaluating new business opportunities.” Mike Christine, Exploration Director Contact: marketing@intierraRMG.com www.intierraRMG.comEdition 1, 2013 State of the Market: Exploration Report 08
    • in the quarter just ended, and 60% of the 702 (42.5Moz to 20.8Moz). Together with a shortfallgold-drilling reports. Companies listed on the in Mexico, this meant announced gold resourcesAustralian Stock Exchange (ASX) accounted in North and Central America had fallen two-thirdsfor 43% of the copper, and 29% of the gold, between the December quarters of 2011 and 2012.reports. Companies listed on the London Stock There was a similar slump in announcedExchange and AIM (together abbreviated here gold reserves, which fell to 15.7Moz (containedas LSE) hardly featured for either metal. metal) in the quarter just ended, compared with For copper, the year-ago proportions were 78.2Moz a year ago. The damage was caused by48% and 47% for TMX and ASX, respectively, massive reductions in the Americas and Africa.and 55% and 31% for gold drilling. The picture was scarcely any better for copper. TMX-listed companies also dominated the drilling Resources reported in the December quarterreports for lead, silver and zinc; see tables on p7-8. contained just 22.3Mt, comparing favourably with 16.7Mt in the September quarter but wellSlump in Reported Resources down on the 107.4Mt reported a year ago.Not surprisingly, the decline in drilling announcements The reporting of new copper resourcesduring the past three months had a knock-on collapsed across the globe, with the containedeffect on the announcement of mineral resources metal in South American falling from 63.1Mtand ore reserves (see tables on p12). a year ago to 12.5Mt in the period just ended. Contained gold in mineral resources announced Copper reserves were little changed from theduring the December quarter were little changed from previous quarter (5.2Mt, compared with 6.2Mt inthe September quarter at 79.4Moz. This represents a the September quarter) but were dramatically lowerslump, however, compared with the year-ago period, than a year ago (35.2Mt). Most of the damage waswhen announced resources contained 232.4Moz. from exploration projects in South America. The shortfall in gold resources came mainly in the There was a similar story for other metals.US (down from 35.0Moz to 6.9Moz) and in Canada Activity Map (December Quarter; 2012) Operational Development ExplorationEdition 1, 2013 State of the Market: Exploration Report 09
    • Global DRILLING ACTIVITYEdition 1, 2013 State of the Market: Exploration Report 10
    • Exploration ResultsSummary of the best assay results during the past quarter, and new resources/reservesTOP-RANKED ASSAYS (December quarter; grade x intersection) Grade Intersection DepthCOPPER Company Project Hole (%) (m) (m) Project Location 1 OZ Minerals Ltd Carrapateena DD12CAR090W1 0.90 1,492.0 609.0 65km E Woomera (Australia) 2 Blackthorn Resources Ltd Kitumba KITDD_005 3.02 220.0 206.0 180km WNW Lusaka (Zambia) 3 Atico Mining Corp El Roble ATDHR-17 5.41 88.7 71.8 75km SW Medellin (Colombia) 4 Africo Resources Ltd Kalukundi BH ANTD006 5.29 80.7 25.8 30km ENE Kolwezi (Congo DR) 5 Intrepid Mines Ltd Tumpangpitu Sulphide GTD-12-350 0.68 568.9 498.0 209km SE Surabaya (Indonesia) 6 CuDeco Ltd Rocklands Group NVB018 7.45 47.0 165.0 17km WNW Cloncurry (Australia) 7 Pilot Gold Inc TV Tower (Kucukdag) KCD056 6.96 46.7 102.7 20km SE Çanakkale (Turkey) 8 Reservoir Minerals Inc Brestovac-Metovnica (Chukaru) FMTC 1217 3.17 100.0 584.0 5km S Bor (Serbia) 9 NovaCopper Inc Bornite (South Reef Zone) DDH RC12-0216 4.45 55.7 671.0 65km ENE Ambler (US) 10 Peel Mining Ltd Mallee Bull MBDD009 3.48 69.0 533.0 105km SSE Cobar (Australia) Grade Intersection Depth GOLD Company Project Hole (g/t) (m) (m) Project Location 1 Pilot Gold Inc TV Tower (Kucukdag target) KCD-50 193.0 12.0 117.5 20km SE Çanakkale (Turkey) 2 ABM Resources NL Old Pirate (Golden Hind prospect) GHRC100014 44.0 42.0 0.0 625km NW Alice Springs (Australia) 3 Golden Rim Resources Ltd Balogo (Netiana) BDH012 111.0 13.0 56.0 105km S Ouagadougou (Burkina Faso) 4 Northquest Ltd Pistol Bay (Vickers) PB-12-22 8.2 156.5 87.0 60km SSW Rankin Inlet (Canada) 5 Gran Colombia Gold Corp Marmato MT-1500 1.6 618.1 394.0 85km S Medellin (Colombia) 6 Pretium Resources Inc Brucejack (Valley of the Kings) SU-584 187.0 4.7 135.8 240km N Prince Rupert (Canada) 7 Atna Resources Ltd Pinson PRC-12-006 47.4 18.3 1.5 42km ENE Winnemucca (US) 8 Unity Mining Ltd Henty (Read zone) Z18553 269.0 3.1 105.7 30km N Queenstown (Australia) 9 Centerra Gold Inc Kumtor (SB zone) D1653 7.7 109.3 494.1 180km SSE Almaty (Kyrgyzstan) 10 Bralorne Gold Mines Ltd Bralorne-Pioneer UB12-015 386.0 2.1 163.7 74km N Whistler (Canada) Grade Intersection Depth LEAD Company Project Hole (%) (m) (m) Project Location 1 Eurasian Minerals Inc Balya (Hastanetepe) DB-81 13.80 18.0 33.0 28km WNW Balikesir (Turkey) 2 El Nino Ventures Inc Murray Brook MB-2012-138 4.58 45.4 179.6 56km WSW Bathurst (Canada) 3 Buchans Minerals Corp Lundberg-Engine House H-12-3475 1.34 134.8 59.5 15k E Buchans (Canada) 4 US Silver & Gold Inc Galena (Lead Zone) DH49-196 17.40 6.4 78.6 2km W Wallace (US) 5 Rathdowney Resources Ltd Olza OLZ-147 3.88 27.3 134.4 Near Zawiercie (Poland) 6 Balamara Resources Ltd Brskovo DH3-12 3.63 28.0 111.0 70km NNE Podgorica (Montenegro) 7 Silvercorp Metals Inc Ying/SGX (S7-1) ZK07AS7-103 41.50 2.2 203.6 120km SW Luoyang (China) 8 Golden Tag Resources Ltd San Diego SD-12-50W 0.55 152.7 818.8 50km SSW Torreon (Mexico) 9 MacPhersons Resources Ltd Nimbus East NBRC216 4.70 17.0 205.0 20km ESE Kalgoorlie (Australia) 10 Red Metal Ltd Maronan MRN12003B 4.79 15.9 1,228.0 155km ESE Mt Isa (Australia) Grade Intersection Depth SILVER Company Project Hole (g/t) (m) (m) Project Location 1 Sierra Metals Inc Promontorio (Cuerpo Oriente) B509 753.0 48.9 376.5 20km SSE Cuauhtemoc (Mexico) 2 Tahoe Resources Inc Escobal (East) 375 490.0 70.5 699.0 44km ESE Guatemala City (Guatemala) 3 Investigator Resources Ltd Peterlumbo PPDH023 2,591.0 10.0 165.0 165km W Port Augusta (Australia) 4 MacPhersons Resources Ltd Nimbus East NBRC216 896.0 28.0 200.0 20km ESE Kalgoorlie (Australia) 5 Brixton Metals Corp Thorn THN12-83 165.0 150.5 24.0 98km ENE Juneau (Canada) 6 Silver Standard Resources Inc Pirquitas (Cortaderas Breccia) DDH-250 206.0 120.8 76.0 207km NW San Salvador de Jujuy (Argentina) 7 GoGold Resources Inc San Diego (Chispa De Oro) GGS-056 87.0 194.3 31.2 110km SW Durango (Mexico) 8 Hecla Mining Co Greens Creek (South West Bench) GC3364 603.0 22.3 0.0 28km SW Juneau (US) 9 Focus Ventures Ltd El Reventon (Reventon Breccia) RC-08-8 71.3 155.4 13.7 55km NE Cosala (Mexico) 10 Hochschild Mining plc Arcata (Alexia) DDH400-S-12 984.0 9.3 0.0 75km NNW Cabanaconde (Peru) Grade Intersection Depth ZINC Company Project Hole (%) (m) (m) Project Location 1 Silver Standard Resources Inc Pirquitas (Cortaderas Breccia) DDH-250 5.0 120.8 76.0 207km NW San Salvador de Jujuy (Argentina) 2 Silver Bull Resources Inc Sierra Mojada (Shallow Silver Zone) T12116 13.9 40.4 0.0 190km N Gómez Palacio (Mexico) 3 MacPhersons Resources Ltd Nimbus East NBRC216 26.3 17.0 205.0 20km ESE Kalgoorlie (Australia) 4 Buchans Minerals Corp Lundberg-Engine House H-12-3475 3.1 134.8 59.5 15km E Buchans (Canada) 5 El Nino Ventures Inc Murray Brook MB-2012-138 8.5 45.4 179.6 56km WSW Bathurst (Canada) 6 Venturex Resources Ltd Sulphur Springs (copper/zinc mine) SSR002 19.4 11.0 174.0 112km SSE Port Hedland (Australia) 7 Golden Tag Resources Ltd San Diego SD-12-50W 1.4 152.7 818.8 50km SSW Torreon (Mexico) 8 Hecla Mining Co Greens Creek (South West Bench) GC3451 10.7 16.8 0.0 28km SW Juneau (US) 9 Cazaly Resources Ltd Mt Angelo North HCRC0005 2.8 62.0 24.0 35km WSW Halls Creek (Australia) 10 Imperial Metals Corp Ruddock Creek (V zone) RD-12-V38 24.0 6.4 175.3 100km NNW Revelstoke (Canada)Edition 1, 2013 State of the Market: Exploration Report 11
    • Exploration Results continuedDespite the sharp reduction in drilling activity (as reported) was an assay at Blackthorn Resources’ Kitumba projectduring the quarter just ended, there have been some in Zambia which yielded 3.02% Cu over 220m (at 206m).remarkable intersections during the past few months. Ranked third was an 89m intersection grading 5.41% The ten top-ranked assays are shown in the table Cu at Atico Mining’s El Roble project in Colombia.on p11 for each of five metals (simply measured The top gold intersection during the Decemberby taking the average grade multiplied by the quarter was Pilot Gold’s 193g/t, over 12m (at a depthintersection length, and taking no account of depth). of almost 118m) on its TV Tower project in Turkey (for Top of the ranking for the copper assays during the a grade-intersection value of 2,316m.g/t). In secondDecember quarter was a drill hole on OZ Minerals’ place during the quarter (but noteworthy because theCarrapateena project in Australia, which returned 0.90% intersection was from surface) was 44g/t over 42mCu over 1,492m (at a depth of 609m). In second place at ABM Resources’ Old Pirate project in Australia. Quarterly Review of Reserves / Resources Announcements GOLD RESOURCES (oz; contained metal) GOLD RESERVES (oz; contained metal) Dec Q 2012 Sep Q 2012 Dec Q 2011 Dec Q 2012 Sep Q 2012 Dec Q 2011 Canada 20,811,907 16,972,667 42,486,655 Canada 5,751,064 7,161,921 5,508,473 Australia 9,040,018 3,549,161 10,850,697 Australia 2,451,408 225,951 1,812,461 USA 6,918,025 3,463,209 34,990,622 USA 664,142 24,557,733 Mexico 106,346 316,357 5,950,056 Mexico 4,142,319 478,032 Brazil 8,080,381 4,732,025 8,036,141 Brazil 2,370,125 855,155 2,051,849 N&C America 28,875,291 21,378,822 84,217,187 N&C America 7,882,047 12,075,160 33,241,378 S. America 21,612,522 9,340,498 35,515,569 S. America 2,370,125 1,706,712 19,929,943 Europe 9,619,509 9,148,874 16,790,636 Europe 2,288,185 3,193,644 Africa 4,272,516 18,037,167 49,498,731 Africa 1,192,458 2,988,933 15,084,165 Asia 5,994,715 16,574,851 33,784,548 Asia 1,769,402 14,566,693 4,952,385 Australasia 9,040,018 3,549,161 12,552,027 Australasia 2,451,408 225,951 1,812,461 TOTAL 79,414,571 78,029,373 232,358,698 TOTAL 15,665,440 33,851,634 78,213,976 SILVER RESOURCES (oz; contained metal) SILVER RESERVES (oz; contained metal) Dec Q 2012 Sep Q 2012 Dec Q 2011 Dec Q 2012 Sep Q 2012 Dec Q 2011 Canada 59,960,804 45,326,851 86,131,090 Canada 52,063,691 1,919,488 Australia 37,421,986 9,672,896 148,594,985 Australia 1,077,214 1,907,375 2,263,412 USA 41,424,856 82,496,983 456,390,869 USA 17,574,792 105,952,706 Mexico 37,160,251 379,747,649 446,601,438 Mexico 387,150,783 45,002,369 44,776,110 Brazil 263,293 Brazil N&C America 139,809,216 514,125,635 1,016,688,374 N&C America 465,968,234 62,577,161 179,565,248 S. America 113,629,100 62,203,594 525,615,929 S. America 8,240,753 145,811,332 Europe 32,965,357 17,327,272 274,108,874 Europe 9,976,485 4,794,340 Africa 33,808,951 16,798,475 16,236,029 Africa 752,649 5,462,092 Asia 12,120,759 86,132,977 189,699,267 Asia 1,458,459 52,534,110 Australasia 37,421,986 9,672,896 148,594,985 Australasia 1,077,214 1,907,375 2,263,412 TOTAL 369,755,369 706,260,849 2,170,943,458 TOTAL 469,256,556 88,163,866 384,968,442Edition 1, 2013 State of the Market: Exploration Report 12
    • COPPER RESOURCES (t; contained metal) COPPER RESERVES (t; contained metal) Dec Q 2012 Sep Q 2012 Dec Q 2011 Dec Q 2012 Sep Q 2012 Dec Q 2011Canada 344,842 358,759 5,633,152 Canada 2,541,972 943 1,548,578Australia 225,986 1,754,448 2,991,735 Australia 40,488 49,406 445,271USA 381,974 5,927,462 2,085,063 USA 109,864 698,208 358,809Mexico 1,090,298 4,832,905 Mexico 65,592Brazil 319,752 236,138 Brazil 444,449 75,787N&C America 726,816 7,510,007 12,694,538 N&C America 5,172,326 786,847 2,422,510S. America 12,545,239 1,263,608 63,097,753 S. America 670,049 23,168,430Europe 811,350 87,027 1,984,578 EuropeAfrica 4,933,456 737,029 14,210,886 Africa 26,000 83,200 1,631,417Asia 3,024,759 5,334,250 12,393,819 Asia 4,657,200 7,517,888Australasia 225,986 1,754,448 2,991,735 Australasia 40,488 49,406 445,271TOTAL 22,267,606 16,686,369 107,373,309 TOTAL 5,238,814 6,246,702 35,185,516 Lease Claim Data Directly To Your Company’s GIS System Sourced, cleaned, formatted and standardised digital lease feeds directly into your GIS system. Key features The most comprehensive single source of global lease data. • Comprehensive global lease coverage. Search and filter results by lease type, lease status and • Timely updates from global mining regions. commodity. • Vector GIS data; spatial data plus attributes. ► Reduce acquisition costs • Streamlined delivery into your file structures. ► Minimise duplication of effort • Compatible with all GIS platforms. ► Refine decision-making processes • > 200 layers of technical and spatial content. ► Reduce data modification Contact: marketing@intierraRMG.com www.intierraRMG.comEdition 1, 2013 State of the Market: Exploration Report 13
    • ZINC RESOURCES (t; contained metal) ZINC RESERVES (t; contained metal) Dec Q 2012 Sep Q 2012 Dec Q 2011 Dec Q 2012 Sep Q 2012 Dec Q 2011 Canada 336,111 969,705 7,543,713 Canada Australia 108,800 3,451 2,591,072 Australia 66,091 77,600 USA 20,059 668,954 817,240 USA 60,735 Mexico 76,360 2,121,228 1,203,944 Mexico 806,254 30,460 Brazil Brazil N&C America 432,530 3,759,887 9,564,897 N&C America 806,254 107,703 S. America 27,942 445,421 2,106,765 S. America Europe 1,978,940 214,246 898,035 Europe 32,420 Africa 2,106,290 591,939 316,124 Africa 579,600 Asia 335,003 25,203 779,889 Asia 35,649 Australasia 108,800 3,451 2,591,072 Australasia 66,091 77,600 TOTAL 4,989,505 5,040,147 16,256,782 TOTAL 872,345 579,600 253,372Some of the intersections announced during the month. Despite a share-price retreat between thepast quarter had a significant effect on the share two drilling reports, Newera’s share price doubled;price of the project owners (see list below). Ten- demonstrating the abiding appeal of junior stocks.day share-price gains of over 60% were recordedby Newera Resources and Greenpower Energy Prognosisfor their projects at Shanagan Uul and Mirboo, So, what do the statistics in this report signal?respectively. A further eight companies saw their Even allowing for the skewing effect of a few largeshare prices appreciate by more than 25% in the exploration results, the numbers are clearly awful.ten days following a drilling announcement. But they do not tell the whole picture. There has Indicative of the mooted exploration activity been a significant increase recently in funds raised(and markets) in the final weeks of the year, only for exploration, which suggests that drilling activityone of the 28 instances of share prices rising might start rising again in the months ahead.over 12% (measured ten days after an exploration As noted on p3, the funds raised by explorationannouncement) was in December. There were 17 such companies rose sharply in the quarter to end-share-price rises in October and 10 in November. December, reaching over US$3.4 billion. ThisIndeed, even this one exploration share-price spike contrasts with the paltry US$1.8 billion raised byin December was by Newera, which had set the exploration companies in the September quarter andquarter’s record price gain during the previous is 19% better than the final three months of 2011.Edition 1, 2013 State of the Market: Exploration Report 14
    • Assay Share-Price Alert Many of the drill intersections announced during the past quarter had significant share-price impactImpact of Drilling Results on Share Prices (December Quarter) SHARE PRICE (US$)COMPANY NAME PROPERTY PRESS RELEASE FROM TO* GAIN (%)Newera Resources Ltd Shanagan Uul East November 0.021 0.035 66.7Greenpower Energy Ltd Mirboo October 0.040 0.064 60.0Aguia Resources Ltd Tres Estradas November 0.130 0.180 38.5Indico Resources Ltd Maria Reyna October 0.180 0.240 33.3Newera Resources Ltd Shanagan Uul East December 0.030 0.039 30.0Cockatoo Coal Ltd Baralaba October 0.140 0.180 28.6Marmota Energy Ltd Angel Wing October 0.072 0.090 25.0Stellar Resources Ltd Heemskirk October 0.080 0.100 25.0Foyson Resources Ltd New Britain November 0.008 0.010 25.0Merah Resources Ltd Lawlers October 0.200 0.250 25.0St George Mining Ltd East Laverton October 0.250 0.310 24.0Navarre Minerals Ltd Bendigo North October 0.130 0.160 23.1Atrum Coal NL Groundhog October 0.180 0.220 22.2Hannans Reward Ltd Pahtohavare November 0.015 0.018 20.0International Goldfields Ltd Latin October 0.027 0.032 18.5Talga Resources Ltd Nunasvaara October 0.300 0.355 18.3Blackthorn Resources Ltd Kitumba October 1.100 1.285 16.8Kalgoorlie Mining Co Bullant October 0.006 0.007 16.7Haranga Resources Ltd Bayantsogt November 0.155 0.180 16.1Eagle Hill Exploration Corp Windfall Lake November 0.125 0.145 16.0Monax Mining Ltd Punt Hill October 0.048 0.055 14.6Northern Minerals Ltd Browns Range October 0.210 0.240 14.3Shaw River Manganese Ltd Otjozondu November 0.014 0.016 14.3Sirius Resources NL Nova October 2.180 2.480 13.8Emmerson Resources Ltd Orlando November 0.120 0.135 12.5International Goldfields Ltd Latin November 0.024 0.027 12.5Latin Resources Ltd Mariela October 0.160 0.180 12.5Eagle Hill Exploration Corp Windfall Lake November 0.125 0.140 12.0Sirius Resources NL Nova October 2.180 2.430 11.5* Share price ten days following assay announcementEdition 1, 2013 State of the Market: Exploration Report 15
    • About IntierraRMG For 30 years, Intierra and Raw Materials Group have been the mining industry’s preferred sources of data, analysis, consulting, reports and mineral information maps. We have provided resource sector intelligence for suppliers, financiers, governments, exploration and mining companies. As IntierraRMG, we deliver respected market and project reports, material flows analysis, mineral economics policy and unrivalled consulting expertise. Our databases and sector- specific modules offer unique insights into lease ownership, company evaluations, M&A, risk management, due diligence, competitor intelligence and project pipeline evaluation. IntierraRMG provides a range of services, including: IntierraLive Database Service Raw Materials Data Consulting and Analysis For further information on IntierraRMG, please email us on marketing@intierraRMG.com Other Reports: State of the Market: Mining and Finance Report Underground Mining Mobile Equipment Copper Quarterly Report Copper Briefing Report (Monthly) Iron Ore Report Zinc - China and the World Top Mining Company Profiles Nickel: The Companies and their Markets Monthly World Metal Statistics World Metal Statistics Yearbook Metallstatistik (2001 – 2011) Quarterly Stainless Steel Statistics Annual Stainless Steel Statistics To purchase any of these reports,email: miningreports@intierraRMG.comEdition 1, 2013 State of the Market: Exploration Report 16