Mep portfolio Review 1 Sept 2010


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Mep portfolio Review 1 Sept 2010

  1. 1. PORTFOLIO REVIEW 1 September 2010 Minotaur Exploration Limited ACN: 108 483 601 ASX: MEP
  2. 2. Business Model MINOTAUR EXPLORATION A mul t i -opt i one d a pproa c h t o bui l di ng v a l ue : Active and Diverse exploration effort in iron-oxide-copper-gold (IOCG, or Prominent Hill style), gold, base metals, & iron mineralised systems Strategic ASX Investments broaden exposure to exploration success steadily moving advanced Kaolin project towards commercialisation actively seeking new brownfields acquisition opportunities in metals
  3. 3. About Minotaur MINOTAUR EXPLORATION ASX: MEP Equity: 80.5M shares on issue Top 5 hold 27.4%: Oz Minerals (9.98%); Newmont (6.61%) 52 week range: 16.5c - 33c Last Price (31 Aug): $0.31 Market Capitalisation: $25M Cash (30 July): $4.0M Listed Investments: $ 6.9M Enterprise Value: $14.1M Exploration Assets/share: $0.175 (as @ 31 August 2010)
  4. 4. Strategic Investments MINOTAUR EXPLORATION L e ve r a gi ng gr o und e x p o s ur e a nd t e c hni c a l s k i l l s vi a e q ui t y i n: Mithril Resources (MTH) nickel and copper explorer (16.6%) Petratherm (PTR) geothermal energy developer (18.35%) PlatSearch NL (PTS) base metals explorer (4.5%) Thomson Resources (TMO) applying frontier geology to Thomson Fold Belt (NSW), expect ASX listing in October (Minotaur equity 13%)
  5. 5. Exploration MINOTAUR EXPLORATION Minotaur is active in: Nova Scotia, Canada Queensland New South Wales South Australia
  6. 6. Project Pipeline MINOTAUR EXPLORATION PROJECT Location Type Sept Oct Nov Dec Cobequid Nova Scotia IOCG Geophysics Geophysics Drilling Lab Assays Target Bass River Nova Scotia Magnetite Geophysics Drilling Lab Assays generation Cloncurry Qld IOCG Geophysics Drilling Drilling Lab Assays Aphrodite SA IOCG Drilling Lab Assays Lab Assays Report Border SA Base metals Geophysics Geophysics Drilling Drilling Mutooroo SA Magnetite Geophysics Drilling Drilling Lab Assays Product Off Take Poochera SA Kaolin Marketing Marketing Specifications discussions Start CSIRO Regional Regional CSIRO ISL Tunkillia SA Gold ISL Study Biogeochem Biogeochem Study ends Louth NSW Base Metals Drilling Lab Assays Interpretation Report
  7. 7. Exploration focus - Canada MINOTAUR EXPLORATION Significant ground position in Nova Scotia, offering multi-metal opportunities: Cobequid: IOCG; geophysics underway on multiple IOCG anomalies, drill in November Bass River: Magnetite; proven iron ore province, geophysics underway along 20km magnetic horizon, drill in November
  8. 8. Exploration - Nova Scotia Significant Regional IOCG and iron play MINOTAUR EXPLORATION Tenure along 200km of the fault zone
  9. 9. Exploration - Nova Scotia Mineralisation types MINOTAUR EXPLORATION
  10. 10. Exploration - Nova Scotia IOCG anomalies, examples MINOTAUR EXPLORATION NS13West (Haematite) NS13East (Magnetite) 1VD  Gravity 1VD  Magne*cs NS13West is a gravity NS13East shows only anomaly coincident gravity and (Haematite target) magnetic anomalies (Magnetite target)
  11. 11. Exploration - Nova Scotia Bass River Magnetite MINOTAUR EXPLORATION Magnetite deposit is: 15km from trans Canada railway & highway 50km from Port of Parrsboro 150km from major Port of Halifax in a recognised iron ore province
  12. 12. Exploration - Nova Scotia Bass River Magnetite MINOTAUR EXPLORATION Magnetite breccia mineralisation shows magnetic high intensity sporadically along 20km of strike. High resolution ground magnetic survey now underway to guide drill investigation Lodestone (1988) produced 1,000t of magnetite Con at grade of 83% Fe3O4 from 2,000t of ore
  13. 13. Exploration - Nova Scotia Bass River Magnetite, Geology MINOTAUR EXPLORATION Geology of the Bass River area showing the location of magnetite breccia outcrops between Bass River and Economy River relative to the Cobequid- Chedabucto Fault Zone (CCFZ) and the alkaline Pleasant Hills Pluton of Carboniferous age.
  14. 14. Exploration - Nova Scotia Magnetite sampling MINOTAUR EXPLORATION The Bass River Magnetite deposit was bulk sampled as a source of high quality magnetite in 1988. The presence of Co-rich pyrite was recognised. The deposit averages a few hundred ppm Co while the pyrite concentrate averages 0.9% Cobalt. The magnetite mineralisation has an obvious structural control and is localised essentially along the trace of the Cobequid Fault, a major suture of the Cobequid-Chedabucto Fault Zone. Fragments of Carboniferous age Pleasant Hills Pluton are present in the brecciated magnetite mineralisation. In addition, veinlets of pinkish granite and/or K-feldspar are also present, suggesting the granite and magnetite formed contemporaneously.
  15. 15. Exploration focus - Australia MINOTAUR EXPLORATION Project diversity, well funded, spending $7 million through 2010: Cloncurry (Qld): geophysics underway on multiple IOCG targets Aphrodite (SA): Major IOCG target 35km SE of Olympic Dam. Ready to drill in September. Shows very distinct similarities to the nearby ‘Carrapateena’ gravity anomaly Border (SA): base metals, AEM & EM underway, drill in November Mutooroo (SA): Braemar sedimentary hosted magnetite Fe deposit. Exploration target size to be assessed by end 2010 from Heli-EM and drilling Poochera (SA): Highest quality kaolin resource. +50 year life. Planning new operation from end 2012, ramping from 50,000 tpa @ start up to +100,000 tpa (2 x wet processing modules)
  16. 16. Exploration - Cloncurry MINOTAUR EXPLORATION Australia’s most productive copper belt vast areas under cover and under-explored geophysics “sees through” the cover to locate potentially mineralised targets (anomalies) looking for Ernest Henry style orebodies multiple IOCG targets over 546 km2 Ernest Henry 30km N of Ernst Henry IOCG mine JV with Japan Oil Gas & Metals Corp JOGMEC earning 51% Cloncurry JOGMEC funding $4M over 3 years
  17. 17. Exploration - Cloncurry MINOTAUR EXPLORATION ground geophysics underway drill selected geophysical targets in October-November aka Eloise, Osborne, Ernest Henry Drill ready Targets: Woolshed Flat Gypsy Plains Cormorant Cotswold
  18. 18. Exploration - Cloncurry MINOTAUR EXPLORATION Woolshed Flat: entirely new IOCG target coincident magnetics, gravity, positive ground TEM anomalies on prominent NW trending fault
  19. 19. Exploration - Cloncurry MINOTAUR EXPLORATION Gypsy Plains: coincident magnetic high & gravity anomaly, adjacent a major EM conductive linear feature (dashed line) in-filling gravity sections hole NRRCD-08 intersected massive magnetite with pyrite-chalcopyrite from 130m - 360m downhole hole NJVD12 on structure, intersected elevated Cu and high Fe; gravity being acquired
  20. 20. Exploration - Cloncurry MINOTAUR EXPLORATION Cormorant: new geophysics shows that previous explorers appear to have drilled parallel to the conductive structure (red line) exceptionally strong EM conductor to be tested by new drill hole in October new drill trace, oriented to intersect conductive plate
  21. 21. Exploration - Aphrodite IOCG target MINOTAUR EXPLORATION Aphrodite; a major new IOCG gravity anomaly 35km SE of Olympic Dam MEP 100% Offset Gravity/Magnetic anomalism 2009 discovery hole drilled to 800m below surface distinctive Olympic Dam style peripheral mineralisation in core, indicates close roximity p Aphrodite to significant hydrothermal system
  22. 22. Exploration - Aphrodite IOCG target MINOTAUR EXPLORATION Carrapateena pipes Hole 2: 355m @ 1.25% Cu, 0.5 g/t Au Hole 50: 905m @ 2.0% Cu, 1.0 g/t Au Carrapateena-style hematite rich breccia system intersected 70m 6 below surface core showed pervasive sericite alteration with hematite & chalcopyrite suggesting proximity to hydrothermal mineralisation new geophysics refined the centre of anomaly > new drill site located 600m S In September, will core drill down the anomaly to 800m depth
  23. 23. Exploration - Aphrodite IOCG target MINOTAUR EXPLORATION 0 1 2 3 km Carrapateena gravity anomaly, superimposed at same scale
  24. 24. Exploration - Border Base metals MINOTAUR EXPLORATION multiple Pb/Zn targets 40km W of Broken Hill JV with Sumitomo (MEP 40.9%) ground geophysics underway drill selected targets Nov-Dec $700k budget in 2010
  25. 25. Exploration - Mutooroo Fe MINOTAUR EXPLORATION 90km SW of Broken Hill 35km from E-W rail line Heavy duty rail link 300km to Port Pirie JV with Sumitomo (MEP 40.9%) initial drill intersections show 200m thick magnetite mineralised beds 3,500 line km of heli borne EM done to define magnetic sedimentary horizons drill targets through October - November $500k budget in 2010
  26. 26. Exploration - Mutooroo Fe MINOTAUR EXPLORATION Program for H2 2010: ★ low level Heli-Mag data acquisition - completed in August ★ 10 x RC & Diamond holes planned along 40km strike extent of magnetised beds ★ Met test for optimal grind size ★ estimate size of Exploration Target ★ Scoping Study
  27. 27. Exploration - Mutooroo Fe MINOTAUR EXPLORATION 08RCMUT-­‐02 08RCMUT-­‐01
  28. 28. Exploration - Mutooroo Fe 3D ground Magnetic Intensity shells MINOTAUR EXPLORATION 08RCMUT-­‐02 08RCMUT-­‐01 MUT02: 114m 20% DTR Fe with DTRC grade of 69.7% Fe
  29. 29. Exploration - Tunkillia gold project MINOTAUR EXPLORATION MEP 54.75% (Helix Resources 45.25%) 803,000 oz resource established multiple targets within 5km radius tested 4 targets in June (RC; 1650m) validated biogeochem method (gold in plants) as a viable exploration tool refer ASX release dated 30 June ’10 80km extents of Yarlbrinda shear zone remain untested
  30. 30. Commercialisation - Poochera Kaolin MINOTAUR EXPLORATION Granite decomposes to granitic kaolin through tropical weathering ! Finished product size is 92% passing 2 microns. World consumption of highest quality ‘China Clay’ exceeds 10 million tonnes per year. Used in plastics, paints, paper coatings, tyres
  31. 31. Commercialisation - Poochera Kaolin MINOTAUR EXPLORATION MEP 100% 20Mt Inferred Kaolin resource 5m - 50m below surface superior ‘Ultra white’ & ‘Ultra bright’ hydrous kaolin qualities; ISO Brightness R457 = 90 92% < 2u hydrous kaolin product pilot plant producing high quality calcining feedstock potential for +100kt pa operation for >50 years 100km from Port Thevenard, SA marketing exposure from October, leading to Offtake discussions leads into 2011 Pre-feasibility study