Presentation given by Managing Director Andrew Woskett at Qld Exploration Council Explorers' Investor Forum
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Presentation given by Managing Director Andrew Woskett at Qld Exploration Council Explorers' Investor Forum

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Presentation given by Managing Director Andrew Woskett at Qld Exploration Council Explorers' Investor Forum Presentation given by Managing Director Andrew Woskett at Qld Exploration Council Explorers' Investor Forum Presentation Transcript

  • 1 A Standout Junior Miner July 2014 Minotaur Exploration Limited | ASX: MEP
  • 2 Standout? - a compelling investment case   Copper-gold in QLD   Currently drilling new, shallow, copper-gold targets west of the high-grade Eloise mine   Nickel-gold in WA   Tenements host standout examples of nickel sulphide mineralisation   Targets include known deposits and multiple untested geological, geochemical and geophysical targets   These options present a compelling new exploration opportunity, particularly in the rising nickel price environment Minotaur’s focus is on core copper-gold assets & new nickel options and coupled with Minotaur’s discovery track record, sound management capabilities, strong cash position, multiple JVs contributing to annual expenditures and highly regarded mining industry shareholders, creates a compelling investment case
  • 3 Minotaur standouts amongst junior miners Financial Information Number of shares 152.2m Share price (25-Jul-14) A$0.14 Market capitalisation A$21.3m Cash (30-Jun-14) A$4.8m Enterprise value A$16.5m Note: 12.5m unlisted options (exercise prices A$0.21-0.55) About Minotaur Exploration (ASX: MEP)   Primary focus on copper and gold exploration in QLD   Secondary focus on advanced nickel prospects in WA   Actively monetising non-core assets (listed investments, magnetite, industrial minerals)   Core geology team responsible for Prominent Hill discovery is still with Minotaur   Clean capital structure (no debt, limited options, only 152m shares on issue) with high profile share register and supportive JV partners JV Partners JOGMEC Japan Oil, Gas and Metals National Corp (Japanese government entity) Mitsubishi Mitsubishi Materials Corp & Mitsubishi Corp Sumitomo Metals Mining Oceania Major global metals player Sandfire Resources Major Australian copper-gold producer GFR Cornerstone private investor and alliance partner Major Shareholders Norilsk Nickel 7.1% OZ Minerals 5.3% Newmont Capital 3.5% GFR 2.8% Other major shareholders:   FMR Investments   Sandfire Resources   Locantro Capital 5.8% Directors 3.2% - 0.4 0.8 1.2 1.6 2.0 - 0.05 0.10 0.15 0.20 0.25 Jan-12 Jan-13 Jan-14 Relative Share Price Performance MEP daily volume S&P/ASX Small Resources Index MEP share price SUSTAINED OUTPERFORMANCE Share price (A$) Volume traded (m)
  • 4 Minotaur recovers approximately 50% of its annual operating expenses through joint venture arrangements   Strategic alliances with high profile international partners expand Minotaur’s project capacity and help minimise cash drain Note: 1.  Chart totals correspond to quarterly exploration + administration expenditure by Minotaur upfront Source: Appendix 5B’s Innovative funding model 4.5 4.1 4.5 0.9 0.8 1.1 0.2 0.4 0.3 4.8 2.4 2.7 Minotaur net spend R&D tax incentive Grants + interest JV repayments FY12 FY13 FY14 Minotaur annual exploration & admin costs by funding source (A$m) 57% (of reported exploration & admin expenditure) 47% 48% 43% (Minotaur net spend) 10.4 7.8 8.7
  • 5 “The Prominent Hill copper-gold deposit, discovered in 2001 by Adelaide based Minotaur Exploration, was a stand-out greenfield discovery in Australia” OZ Minerals, owner and operator of Prominent Hill copper-gold mine   Prominent Hill region was identified as an IOCG province in the late 1980s, but it wasn’t until 2001 that Minotaur Resources (ASX: MNR) intersected economic mineralisation   By 2004 the scope of the project was becoming clear and Oxiana (now OZ Minerals) acquired the Prominent Hill deposit, while MNR’s remaining assets were spun off into Minotaur Exploration (ASX: MEP)   Shareholders received 1.85 Oxiana shares and 1 MEP share for each share held in MNR before the Prominent Hill transaction, equivalent to A$2.29 per share (2,190% higher than MNR’s share price pre-discovery) - 0.50 1.00 1.50 2.00 2.50 Jan-01 Apr-01 Jul-01 Oct-01 Jan-02 Apr-02 Jul-02 Oct-02 Jan-03 Apr-03 Jul-03 Oct-03 Jan-04 Apr-04 Jul-04 Oct-04 MNR share price (A$) Minotaur acquires remaining 81% for A$12m in cash and shares Scheme of Arrangement with Oxiana attributes value of A $98m to Minotaur’s equity share of Prominent Hill First drill results confirm Minotaur’s interpretation Recognising geophysical similarities to Olympic Dam, Minotaur begins to earn a 19% interest at Prominent Hill (in JV alongside Billiton earning 51%) ONE GOOD REASON TO OWN MINOTAUR (the same core geology team remains in place) Source: IRESS, company filings Minotaur’s role in Prominent Hill discovery
  • 6 Geographic focus is Australia NON-CORE ASSETS All iron ore and industrial minerals projects are actively being prepared for divestment Mutooroo Iron Poochera Kaolin Lake Purdilla Gypsum OTHER ASSETS SA Copper-Gold SA Base Metals VIC Copper-Gold Clear focus on copper-gold assets in QLD and nickel prospects in WA SECONDARY FOCUS Nickel-Gold (WA) Leinster: multiple targets located in database to be pursued Scotia: known deposits to be drilled to define JORC resources Kambalda West: high tenor nickel deposits under historic mines PRIMARY FOCUS Copper-Gold (QLD) Cloncurry JV: continues on IOCG targets Eloise JV: inaugural diamond drilling underway
  • 7 Core assets: copper-gold portfolio MEP’s primary focus is its strategic Cu-Au ground position around Cloncurry Minotaur recognised Cloncurry region as an emerging IOCG province   Extensive land position strategically acquired over several years – around known Cu-Au mining centres:   Ernest Henry (adjacent to Ernest Project)   Eloise (adjacent to Elrose Project)   Osborne (adjacent to Osborne Project)   In-house technical expertise has been successfully applied to geophysical target identification under deep and conductive cover, revealing multiple, potentially mineralised anomalies   Investigatory drilling proves Minotaur’s geophysical technique to be a valid discovery tool Eloise Copper JV   JV partner spending A$6m over 4 years to earn 50%   Minotaur is Operator/Manager   Tenements highly prospective for Eloise style high-grade Cu-Au deposits   EM-generated conductive plates modelled and selected for first-pass drill investigation   First-pass diamond drill campaign underway; initial results due late July   Follow-up drilling to be determined
  • 8 Core assets: nickel portfolio Advanced nickel sulphide prospects on proven, fertile ultramafic belts   Leinster JV (MEP 85%)   Multiple nickel targets identified from a massive historic exploration database acquired through Breakaway Resources   Large tenement package ideally located over mineralised ultramafic units   On strike from historic mines and Tier 1 nickel projects   Estimate replication of database alone would require over 10 years of intensive exploration and cost in excess of A$30m   Ground along the Nickel belt is tightly held and rarely available   Scotia (MinAuSol of which MEP 50%)   Small historic nickel sulphide resource established at St Patricks   Multiple drill holes into adjacent St Andrews deposit represent an advanced stage prospect with walk-up drill positions established   Modern ground EM to cover both targets and refine geometry of drill intersected ultramafic units will be underway in August   Kambalda West   Minotaur holds nickel rights over 10 tenements owned by Tychean Resources (TYK)   High-grade Ni-Au assays published 23 July 2014   Additional deposits waiting to be drilled to JORC standard
  • 9 Share price catalysts   Actively drilling at Eloise   Targets identified by aerial and ground EM surveys in 2014 represent significant copper-gold discovery potential   Inaugural drilling campaign underway, initially testing targets at 50-150m depth   Initial results will be published late July   Drilling of additional targets will be considered based on results of initial drill campaign   Exploration on advanced nickel portfolio in WA   Historic nickel database reveals multiple nickel sulphide targets and drill defined mineralisation, all of which have received little follow up   Modern EM to be applied to Saints deposits to extend boundaries of known mineralisation and test for new conductors   new assay results from West Kambalda report high tenor nickel sulphide mineralisation beneath historic 5B mine   Sale of non-core assets   Magnetite, gypsum and kaolin projects being prepared for sale   Listed investment developments   Minotaur’s listed investment portfolio provides discovery upside and monetisation potential on liquidity events   New opportunities   Minotaur is actively reviewing major Australian copper-gold acquisition opportunities with its alliance partners   Advanced stage to ready-to-mine and/or in-production opportunities being targeted Minotaur expects substantial news flow over the coming months
  • 10 A compelling investment case   Enviable record of exploration success – core geology team responsible for Prominent Hill discovery is still with Minotaur   Significant exploration potential given focus and quality of core assets   Innovative funding model underpinned by strategic JV alliances   History of responsible capital management with strong balance sheet and clean capital structure   High profile share register and supportive JV partners   Clear asymmetric payoff profile given implied value currently ascribed to Minotaur’s strategic copper-gold portfolio and advanced nickel assets is only A$1.3m   Actively monetising non-core assets to realise additional value for shareholders   Substantial news flow over the coming months Minotaur is a standout junior miner on the ASX
  • 11 APPENDIX – Nickel Assets Middle-stage (established mineralisation) ultramafic NiS-Au systems Advanced-stage (brownfields) ultramafic NiS-Au systems Mineral Resource estimates stated herein are as reported by previous operators according to JORC principles then applying. The estimates have not been re-compiled in accordance with JORC 2012 edition as the data remain unaltered in all material aspects.
  • 12 Nickel asset development   Leinster define and test multiple targets, establish upside potential to attract sizeable JV earn-in partner.   Scotia refine Saints Nickel deposits, move to JORC, establish mining proposal (in conjunction with 50% partner).   Kambalda West follow up on new & significant Ni- Au assays at 5B mine (MEP holds Ni Rights and 1.5% gold NSR over 10 TYK tenements). Launching an inaugural work programme Work programme duration: August 2014 – Dec 2015
  • 13 WA Nickel assets: in the Tier 1 nickel district Leinster   285km2 of mafic/ultramafic greenstones bounded by regional scale crustal faults (MEP 85%) Scotia   187km2 of mafic/ultramafic greenstones along the Bardoc Shear Zone (MEP 50%) Kambalda West   Nickel Rights over Tychean Resources’ (TYK) tenements (10)
  • 14 Leinster: Tier 1 Nickel Province  Leinster tenements were originally compiled by LionOre and vended into Breakaway Resources  Ground in this region is possessively held with entry opportunities extremely limited.  Minotaur obtained a presence via its 2013 acquisition of Breakaway Resources  Minotaur’s tenure (red blocks) is situated along the Nickel prolific ultramafic belt  Past exploration identified multiple NiS geochem anomalism, EM conductors, Ni drill intersections and modest Ni resources, but with limited follow-up  Minotaur’s 2014 data re-compilation shows tenement NiS opportunity compels a modern approach to assess numerous known - but untested - targets
  • 15 Leinster: Wildara & Mt Clifford tenements
  • 16 Targets include:  large, untested EM plates in ultramafic units  offhole, downhole EM conductor  EM conductors in vicinity of Ni gossans  untested conductors near anomalous Ni intercepts  no ground EM coverage over known ultramafic units and/or basal contacts  no ground EM on ultramafic belt on strike from the mined Waterloo Nickel deposit Leinster: multiple targets on the Nickel belt Wildara group Mt Clifford group
  • 17 Scotia: Nickel mining province Advanced ‘Kambalda style’ NiS exploration asset on a proven Ni mineralised ultramafic belt:   hosting multiple ore-grade NiS drill intersections   with a modest Ni resource blocked out   limited past efforts to expand the resource base   deposits are open at depth and along strike   multiple ‘walk-up’ drill positions available from database   significant upside potential on proximal but only partly tested ultramafic/basalt contacts   warrants an extensive modern EM programme to refine conductive plates & guide drilling   to establish JORC resources and mining scenarios
  • 18 Scotia: mining history and ore grade results Sco$a  underground  Nickel  Mine:       Ceased  produc$on  in  1977     produced  1.4Mt  @  2.2%  Ni  (to  360m  depth)     for  30,800t  of  contained  Ni     Main  lode  horizon  truncated  by  fault     Off-­‐hole  DHTEM  conductor  not  yet  tested     New  discovery  poten$al   Saints  Nickel  targets:     St  Patricks  Inferred  Resource   o  135,600t  @  3.7%  Ni  (for  5,000t  contained  Ni)     St    Andrews  no  resource  calculated     Western  Contact  no  resource  calculated     Hinge  zone  at  depth,  not  tested   Estimate prepared prior to JORC 2012 edition and not updated as facts remain unaltered in all material aspects
  • 19 Scotia: Saints mineralisation not closed off Mineralisation remains open at depth and along strike
  • 20 Scotia: Saints Nickel discovery potential Conceptual Target – Hinge zone
  • 21 Scotia: Saints - potential along contact horizons Western Contact St Andrews Potential for discovery of Ni Sulphide mineralisation in Hinge zone 300 metres   only 5% of prospective contacts have been drilled   Western Contact mineralised in several locations over 2km of strike   St Patricks and St Andrews deposits on Eastern Contact present excellent resource potential 07BSGD0030 0.34m @ 2.40% Ni 0.55m @ 6.29% Ni 07BSGD0048 27.45m @ 1.80% Ni 07BSGD0049 2.30m @ 2.64% Ni 07BSGD0015 2.0m @ 3.32% Ni 1.0m @ 4.76% Ni St Andrews Hangingwall Zone St Andrews Deposit St Patricks Deposit Inferred Resource: 135,600t @ 3.70% Ni 07BSGD0047 1.90m @ 3.10% Ni Incl. 0.3m @ 5.29% Ni 07BSGD0038 1.0m @ 2.61% Ni 07BSGD0055 4.80m @ 2.81% Ni
  • 22 Kambalda West: Nickel Rights Established NiS Mineralisation:   1A Mine   5A Mine   Andrews Mine   5B Mine 20km South-West of Kambalda   MEP has 100% Ni rights over MTH’s ‘Spargos’ tenements & TYK’s ‘Spargoville’ tenements   4 historic mines produced 14,000t Nickel to 1993   all mined deposits remain open at depth   30km2 of underexplored tenements   no regional exploration since 2006   no drilling since 2008   mineralised deposits all located within granted Mining Leases Nickel Prospects:   Spargo South   Burnham   Kemble   Gardiner
  • 23   Underground mining on 3 levels through 1991/92   No evidence of evaluation for extensions to depth or the West   Drilling in 2007/08 identified several pods West of the historic workings   Potential to increase both size and grade of the deposit High Tenor Sulphides, up to 9% Ni Kambalda West: 1A Nickel Mine
  • 24   high grade deposit at base of historic oxide pit   Includes sulphide intercepts up to 13% Ni   Limited drilling beneath pit Kambalda West: 5A high-grade Nickel deposit
  • 25   high grade Ni-Au deposit beneath historic gold pit   Nickel sulphide intercepts incl. 24m @ 1.53% Ni   Gold intercepts incl. 5m @ 9.7 g/t Au   Refer ASX release dated 23 July 2014 for full details Kambalda West: 5B high-grade Nickel deposit
  • 26   Produced 7,800 tonnes Ni in 1970’s   Remnant oxide mineralisation exists near surface   Attractive near-term development prospect   Base of mine at 11 Level yielded highest grade ore:   2.5 – 3.0% Ni   mineralisation continuous for over 200m   High Tenor - up to 20% Ni in massive sulphides   Historic drilling, while sparse, supports case for down-plunge extensions   Potential to extend the deposit at depth and along strike Shallow Potential Kambalda West: Andrews (5D) Nickel Mine Down plunge potential
  • 27 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. Information in this presentation that relates to exploration results for Minotaur Exploration Ltd is based on information compiled by Mr Ian Garsed, who is a full-time employee of the Company and a Member of the Australian Institute of Geoscientists (AIG). Mr Garsed 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). Mr Garsed consents to inclusion of this information in the form and context in which it appears. Competent Person’s Statement Disclaimer Disclaimer