Stewart Hagan, Metallica Minerals Ltd/Oresome Australia Pty Ltd: Cape York Mineral Sands Project, North Queensland
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Stewart Hagan, Metallica Minerals Ltd/Oresome Australia Pty Ltd: Cape York Mineral Sands Project, North Queensland

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Stewart Hagan, General Manager, Metallica Minerals Ltd/Oresome Australia Pty Ltd delivered the presentation at the 2014 Mineral Sands conference. ...

Stewart Hagan, General Manager, Metallica Minerals Ltd/Oresome Australia Pty Ltd delivered the presentation at the 2014 Mineral Sands conference.
The Annual Australian Journal Mining's Mineral Sands Conference is the key meeting place for Australia's Mineral Sands industry.

The event gives delegates the chance to hear from industry experts as they share their perspectives on the hot topics for the mineral sands industry. For more information about the event, please visit the website: http://www.informa.com.au/mineralsandsconference

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Stewart Hagan, Metallica Minerals Ltd/Oresome Australia Pty Ltd: Cape York Mineral Sands Project, North Queensland Stewart Hagan, Metallica Minerals Ltd/Oresome Australia Pty Ltd: Cape York Mineral Sands Project, North Queensland Presentation Transcript

  • CAPE  YORK  MINERAL     SANDS  PROJECT             Mineral  Sands  Conference    5  March  2014   Stewart  Hagan    
  • Who  is  Oresome  Australia?   •  Oresome  is  a  Heavy  Mineral  Sands  (HMS)  focused   exploraOon  and  resource  development  company     •  Wholly  owned  subsidiary  of  Metallica  Minerals  Ltd,   Listed  on  the  Australian  Stock  Exchange  (ASX  Code   MLM)     •  Head  office  in  Brisbane       •  Oresome’s  sole  focus  is  Mineral  Sands  exploraOon  &   development  on  Western  Cape  York  –  QLD    
  • Tenement   summary   • ML20669,   Urquhart  Point     • MLA20737,   Mbung     • 10  Granted   ExploraOon  Permits     • 6  ExploraOon   Permit  ApplicaOons     • Tenure  covering   over  2,000km2.    
  • Urquhart  Point’s       Current  Resource   •  To  be  updated  to  include  mineral   assemblage  expected  April  2014.   •  IMC  to  prepare  a  mining  schedule   resource.  Included  in  this  will  be  a   opOmisaOon  and  review  of  cut-­‐off   grade  based  on  expected/forecast   market  condiOons.   •  Modal  drilling  was  completed  in   early  Feb  2014  and  included   taking  metallurgical  samples  (5t)   and  some  exploratory  drilling.   •  These  samples  are  currently  with   RJ  Robbins  in  Brisbane  for   analysis.  
  • Indicated  Resource  EsLmate  (less  buffers)   Cutoff  Grade  HM%     From     Tonnes               Density     HM  %     OS  %     Slimes  %     Material     10                                            231,680     1.60     16.33     3.76     0.90     TOTAL     8                                            518,400     1.60     12.18     6.10     0.98     TOTAL     6                                    1,215,040     1.60     9.18     8.04     0.96     TOTAL     5                                    1,751,360     1.60     8.04     9.55     0.99     TOTAL     4                                    2,356,800     1.60     7.13     11.04     1.15     TOTAL     3                                    2,960,960     1.60     6.40     11.48     1.14     TOTAL     2                                    3,085,760     1.60     6.25     11.50     1.12     TOTAL     0                                    3,095,680     1.60     6.24     11.51     1.12     TOTAL     For  further  informa.on  see  ASX  Release  5-­‐12-­‐2013  
  • PermiPng  –  Urquhart  Point  &     Regional  ExploraLon     •  Licence  to  operate  is  in  place  to  progress  both  mining  at   Urquhart  Point  &  conOnued  regional  exploraOon   •  •  •  •  •  •  •  •  •  Landowner  agreements  are  in  place  over  both  Urquhart  Point  (Wik   and  Wik  Waya  People)  &  T16  (Apudthama  Land  Trust)   Environmental  Authority  (EA)  issued   Plan  of  OperaOons  (PO)  accepted   Environmental  Bond  in  place   Environmental  Management  Plan  (EMP)  in  drai   ERA  50  coastal  works  applicaOon  submijed  (required  prior  to   shipping  HM  concentrate)   Urquhart  Point  is  not  affected  by  the  Cape  York  Regional  Plan   (CYRP)   Pre-­‐commissioning  work  can  begin  now  on  ML20669  (Urquhart   Point)   ExploraOon  can  conOnue  at  T16  (awaiOng  end  wet  season  and   bejer  understanding  of  proposed  CYRP)  
  • Current  Status       •   Seeking  Partners  (Project  Equity  Funding)     •  Feasibility  Study  –  Will  be  updated  once  resource  is   updated  (April  2014)  and  project  execuOon  is  defined     •   Plant  design200-­‐300tphr  size,  capital  requirement   (including  working  capital)       •   Heavy  Mineral  (HM)  concentrate  off  take  partner     •  Project  execuOon  plan     •  PosiOve  exploraOon  results  discovery  T16  (EPM15371)   has  major  exploraOon  upside,  but  further  exploraOon   may  be  affected  by  CYRP  
  • Regional  Targets  IdenLfied     using  Radiometrics     •  Data  used  in  idenOfying  22  HMS  Regional  ExploraOon   targets  included:   •  •  •  •  Data  sources  from  the  Cape  York  airborne  geophysical   survey  (ID-­‐1225)     Shujle  Radar  Topographic  Model  gridded  data   Digital  geological  data  over  Cape  York  Peninsula  compiled   by  the  Geological  Survey  of  Queensland     Specific  data  on  the  Urquhart  Point  mineral  sand  deposit   provided  by  Oresome  Australia  (example/control  target  signature)   •  Surface  reconnaissance  samples  collected  in  field  work   in  early  2013  idenOfied  T16  as  ready  drill  target   (indicaOng  large  target  area  &  HM>  1%)  
  • • T16  Regional   ExploraOon  Target   160km  N  of  Weipa/   Urquhart  Point     • T16  is  one  of  many   targets  along   300km  of  coastal   belt     • We  never  thought   Urquhart  Point  only   3km  away  from   Weipa  was  the  only   Zircon-­‐RuOle  HM   deposit  in  Western   CYP  
  • Only  a  very  small  porOon  of  T16  was  drilled  by  36  shallow  holes     (area  within  1.8km  x  800m)  –  scope  cut  short  by  bad  weather  late  2013  
  • T16  Summary   ZIRCON  RICH  HEAVY  MINERAL  SAND  MINERALISATION  CONFIRMED     EXCELLENT  POTENTIAL  FOR  ADDITIONAL  DISCOVERIES    IN  CAPE  YORK  PENINSULA     •  •  •  •  •  •  •  •  •  •  All  36  auger  holes  drilled  (average  depth  3.7m)  on  T16  recorded  significant   (HM)  mineralisaLon   Average  of  1.7%  HM  (total  HM)  based  on  134  samples  (total  152  one  metre  (m)   samples  collected)   HM  assemblage  analysis  confirmed  a  weighted  average  of  1.43%  HM  (aier   screening)  ranging  from  (0.47%  to  3.01%)  HM  over  an  average  composited   interval  thickness  of  3.5  m   The  Zircon-­‐rich  HM  assemblage  averaged  (35  drill  hole  composites)  32.6%   Zircon,  5.9%  RuLle  and  10.7%  other  Titanium  minerals  (Ilmenite,  Anatase,   Leucoxene)   Weighted  average  composite  grade  of  0.45%  Zircon  (ranging  from  0.18  to   0.87%  Zircon)   Valuable  Heavy  Mineral  (VHM)  (Zircon,  RuLle,  other  Titanium  (Ti)  Minerals)   comprise  49%  of  the  total  HM  –  see  Pie  Graph     24  holes  ended  with  samples  recording  over  1%  HM   T16  HM  mineralisaLon  is  within  fine  quartz  sand  with  generally  low  slimes     Only  a  small  porLon  of  the  total  T16  target  area  has  to  date  been  drilled   T16  is  only  one  of  many  targets  along  the  Company’s  300  km  of  sandy  coastal   belt  of  western  Cape  York,  suggesOng  significant  potenOal  for  addiOonal  HM   mineralisaOon  discoveries  
  • Summary  of  the  T16  HM  Assemblage     Analysis  of  Composited  Samples  of  35  drill  holes   (Zircon  rich  33%  of  HM)  
  • •  Significant   mineralisaOon   drilled  over   1.8km  x  800m   area  open  in   most   direcOons     •  All  36  holes   intersected   significant  HM   mineralisaOon   (>1%HM)  
  • T16  –  Drill  x-­‐secLon    
  • T16  –  Drill  long  secLon    
  • Queensland  Government  Drak     Cape  York  Regional  Plan  (CYRP)      On  20  November  2013  the  Queensland  Government  (QLD  Gov)   •  •  •  •  •  released  for  consultaOon  the  latest  drai  of  the  CYRP   T16  target  and  most  regional  tenements  are  included  in  areas   under  which  mining  acOviOes  may  be  significantly  restricted.   The  drai  plan  is  open  for  consultaOon  unOl  March  2014.     In  light  of  highly  significant  discovery  at  T16  and  subsequent   confirmaOon  of  zircon  rich  HMS,  Metallica  is  liaising  with  the   QLD  Gov  and  has  lodged  a  formal  submission  on  the  CYRP   during  the  consultaOon  period   Oresome  may  resume  exploraOon  drilling  acOviOes  on  T16  aier   the  end  of  the  2014  wet  season  subject  to  the  outcomes  of  the   drai  CYRP   Urquhart  Point  HMS  Project  is  not  affected  by  the  CYRP.  
  • CYRP  Submission   Metallica/Oresome’s  submission:   •  Notes  the  CYRP’s  potenOal  to  significantly  or   considerably  restrict  economic  and  community   development  and  mining  on  the  Western  Cape  York   •  Provides  an  alternaOve  set  of  boundaries  in  Strategic   Environmental  Areas  (SEA’s)  where  Oresome  is   directly  affected   –  SEA  #2,  #21,  #24   •  Includes  lejers  of  support  from:   •  •  •    Cook  Shire  Council  (represenOng  local  shire/community)   Apudthama  Land  Trust  (represenOng  TradiOonal  Owners)   Professor  David  Mulligan,  Director  of  the  Centre  for   Mined  Land  RehabilitaOon,  James  Cook  University  
  • Key  Points/Summary   •  Oresome  has  idenOfied  the  potenOal  for  a  new   mineral  sands  province  and  an  industry  in  Cape  York   •  Ongoing  evaluaOon  and  the  development  of  the   Urquhart  Point  project  is  planned  for  2014   •  Funding  &  development  is  significantly  influenced  by   outcomes  of  to  the  Cape  York  Regional  Plan  (CYRP)       •  Submissions  will  be  made  to  the  QLD  Government   seeking  to  ensure  the  potenOal  for  Zircon-­‐Ti  Mineral   sand  developments  can  be  a  valuable  contributor  to   the  local  economy  and  community  of  Cape  York  to  the   benefit  QLD    
  • Disclaimer           Statements   and   material   contained   in   this   presentaOon,   parOcularly   those   regarding   possible   or   assumed   future   performance,   producOon   levels   or   rates,   mineral   prices,   resources   or   potenOal   growth   of   Oresome   Australia   Pty   Ltd,   industry   growth   or   other   trend   projecOons   are,   or   maybe,   forward  looking  statements.       Such   statements   relate   to   future   events   and   expectaOons   and,   as   such,   involve   known   and   unknown   risks   and   uncertainOes.   The   Urquhart   Point   minerals   and   project   is   at   the   evaluaOon   and   feasibility  stage  and  Regional  ExploraOon  projects  are  in  the  early  exploraOon  phase  and  although   reasonable   care   has   been   taken   to   ensure   that   the   facts   stated   in   this   presentaOon   are   accurate   and   or   that   the   opinion   expressed   are   fair   and   reasonable,   no   reliance   can   be   placed   for   any   purpose  whatsoever  on  the  informaOon  contained  in  this  document  or  on  its  completeness.       Actual   results   and   developments   may   differ   materially   from   those   expressed   or   implied   by   these   forward  looking  statements  depending  on  a  variety  of  factors.  Nothing  in  this  presentaOon  should   be   construed   as   either   an   offer   to   sell   or   a   solicitaOon   of   an   offer   to   buy   or   sell   shares   in   any   jurisdicOon.       This   material   is   used   for   a   company   and   project   summary   presentaOon   only,   for   more   detailed   informaOon   the   reviewer   should   seek   company   informaOon   as   provided   on   the   parent   company   website,  www.metallicaminerals.com.au    
  • Subsidiary   ASX  :  MLM