REIS 2013 Broken Hill - Adelaide Resources ASX:ADN


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Company presentation given at the Resources & Energy Investment Symposium held in Broken Hill NSW, May 2013

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REIS 2013 Broken Hill - Adelaide Resources ASX:ADN

  1. 1. #1Presented byMark Manly, Exploration ManagerMoonta Copper-Gold ProjectThe Excitement Builds
  2. 2. #2The information in this presentation is published to inform you about AdelaideResources Limited and its activities. Some statements in this presentation regardingestimates or future events are forward looking statements. They involve risk anduncertainties that could cause actual results to differ from estimated results. Allreasonable effort has been made to provide accurate information, but we do notwarrant or represent its accuracy and we reserve the right to make changes to it atany time without notice.To the extent permitted by law, Adelaide Resources Limited accepts no responsibilityor liability for any losses or damages of any kind arising out of the use of anyinformation contained in this presentation. Recipients should make their own enquiriesin relation to any investment decisions.The information in this presentation that relates to Exploration Results, MineralResources or Ore Reserves is based on information compiled by Chris Drown, who isa Member of The Australasian Institute of Mining and Metallurgy and who consults toAdelaide Resources Limited on a full time basis. Mr Drown has sufficient experiencewhich is relevant to the style of mineralisation and type of deposit underconsideration, and to the activity which he is undertaking, to qualify as a CompetentPerson as defined in the 2004 Edition of the ‘Australasian Code for Reporting ofExploration Results, Mineral Resources and Ore Reserves’. Mr Drown consents to theinclusion in the presentation of the matters based on his information in the form andcontext in which it appears.Disclaimer and Competent Person’s Statement#2
  3. 3. #3Moonta ProjectCentred 130km north west of AdelaideCovering the Historic Copper Triangle Moonta-Kadina-WallarooWhere 355,000t Cu and 2 t Au have been extracted since 1851.
  4. 4. #4• In 1866 Wallaroo had 36 furnaces burning 10% ofall the coal produced at Newcastle NSW.• Moonta was the first mine in Australia to pay amillion (pounds) in dividends.• Census 1871 -20,000 people or 2% of theAustralian population lived in the Copper Triangle.(Blainey – The Rush that Never Ended)Olympic DamProminent HillOlympicCopper-GoldProvinceMoonta-WallarooPast & presentCopper mines200 kilometresOlympic Copper Gold Province – past and present mines1915 Richman’s Engine-house, MoontaMoonta’s importance to the nation in the 1850sto 1870s was not unlike that of Olympic Damtoday.
  5. 5. #5Olympic Copper Gold ProvinceLEGENDAdelaide ResourcesAntofagastaArevaBHPBFMGOz MineralsRexRio TintoSandfireStraitsUranium OneXstrataOther200 kilometresOlympic Copper-Gold Province – operating companiesEven SpencerGulf is pegged!!All land in theOCGP whereexploration isallowed ispegged.Majorcompanies andcopperproducersdominate.(non OCGP tenements not shown)
  6. 6. #6OCGP – depth to prospective basementCover over Moonta is very shallow comparedto the bulk of the Olympic Copper GoldProvince.Allowing affordable direct targeting methodslike soil and calcrete geochemical sampling,and shallow auger and aircore drilling to beused effectively.Olympic Dam(330m)ChallengerProminent Hill (100m)MOONTAPROJECT(mostly < 10m)OlympicCopper-GoldProvince(470m)Hillside(~30-70m)Copper/depositGold200 kilometresVulcan (900m)Punt Hill(~700m)ABCarrapateena1000800600400200Prominent HillVulcanOlympicDam CarrapateenaPunt HillSpencerGulfMOONTAPROJECTHillsideDepthbelowsurface(metres)A BCoverProspective basement{Schematic section
  7. 7. #7Exploration on the Yorke PeninsulaBio-geochemical analysis with an optical emissionspectroscopy (OES) finish was used by Captain Hughes, who in1851 observed…tree roots in the area burnt with greenflames….convincing him strong lodes must exist so heinstructed his shepherds to look for copper”. (Blainey The Rush thatNever Ended)One James Boor found green pebbles by a Wombat hole nearKadina, Hughes identified it as copper carbonate, pegged theground and with capital from Scottish merchants Elder andSmith sunk the first of several shafts on the Wallaroo Mines.Funds returned from this investment helped build the greatPastoral House of Elder-Smith, and two £20,000 donations byHughes and Elder led to the founding of Adelaide University.
  8. 8. #8Moonta Project exploration history timelineExploration at Moonta has been dominated by majors looking for giant deposits.Leaving opportunity for a smaller company looking for a smaller deposit.This opportunity is enhanced by dramatically improved copper prices since the mid2000’s.Copper Price
  9. 9. #9Historic data – a huge & valuable legacyinherited from past explorersThis says page 5,187 of 23,841!!Copper assaysto 4.45%CuWMC Hole DDH224 from Alford West.
  10. 10. #10Moonta Project – location showing depositsand prospects
  11. 11. #11Willamulka Prospect – plan10km north east ofKadinaShallow 550 metre longcoherent zone of copperand gold mineralisationopen at depth.
  12. 12. #12Willamulka Prospect – section
  13. 13. #13Paskeville Prospect – plan15km east of KadinaShallow 400 metre longcoherent zone of coppermineralisation open atdepth and along strike.
  14. 14. #14Paskeville Prospect – sectionRecent drilling shows a steeply north dipping 50m wide zone of copper mineralisation.
  15. 15. #15Alford Fault Zone– planWallarooWombatAlfordWestAlford Fault ZoneShear Zone wrapping around the south east contact of the Tickera Granite
  16. 16. #16Wombat Prospect – section10km north east of WallarooRecent drilling shows significantintersections of copper in a large shearzone in metasomatite south of theTickera granite.
  17. 17. #17Alford West – plan4km east of Wombat and 10km north of KadinaRecent drilling defines high grade zones of copper and gold mineralisation, includingsome exceptional grade intersections, on each of the six traverses of drilling .
  18. 18. #18Alford West Prospect –Section 753,730 mE
  19. 19. #19Alford West Prospect – Section 753,780 mE
  20. 20. #20Alford West Prospect – Section 753,830 mE
  21. 21. #21Alford West – evidence of a big mineralising system6m @ 0.77% Cufrom 4m24ft @ 0.33% Cu(from 764ft)3.2 km
  22. 22. #22Alford West Summary• Drill testing a 3 kilometer long auger copper geochemical anomaly.• Detailed drill coverage is currently 10% of anomaly (300m)• High grade, wide intersections on multiple lodes on each of sixtraverses drilled to date• Significant gold is present with copper.• High grade comes to within 5m ofthe surface.• Valuable mineral chalcocite present.• Phase two drilling about to start
  23. 23. #23Alford West – Phase Two drilling planned
  24. 24. #24Alford West – evidence of a big mineralising system6m @ 0.77% Cufrom 4m24ft @ 0.33% Cu(from 764ft)3.2 km
  25. 25. #25Alford West – FPXRF trial geochemistry copper image
  26. 26. #26Alford Fault Zone – Phase Two Aircore Drillingover Historic Auger AssaysAuger Hole5083300ppm18-24ftEOHAuger Hole5073.4%Cu54-60ft950ppm Cu66-70ftEOHAuger Hole509.513.0%Cu24-30ft390ppm Cu48-52ftEOHSection 753,000 m EPlanned Holes in Red
  27. 27. #27Alford Fault Zone – Phase two Aircore Drillingover Historic Auger AssaysSection 753,320 mE514E Auger LineAuger Hole501.524-30ft2600ppm CuEOHAuger Hole502.530-32ft2900ppm CuEOHAuger Hole507.530-36ft1050ppm CuEOHAuger Hole50642-48ft1200ppm CuEOHPlanned Holes in Red
  28. 28. #28Moonta Project - key points• In the right Rocks- the Olympic Copper GoldProvince.• At the right Depth -The Prospective rocks areshallow- so cost efficient exploration methods canbe used.• With the right structure- Alford Fault Zone• Large companies, left a huge and valuable dataset• Scale opportunity as they explored for giant deposits• Opportunity now with historically high copper prices• A project-wide resource base, is being builto Willamulka and Paskeville discoveries,o Promising results from Wombat and Copper Hill,o the “rediscovery” of prospects like Alford West.
  29. 29. #29Moonta Project ChallengesThe project is on high quality agricultural land covered by numerous farms.Access issues are more significant here than in the outback.Digitising the historical exploration data is a mammoth undertaking.It is exceptional value for money, but it will take many months to complete.With many promising targetsto test, we needa buoyant market that willsupport a persistentexploration effort to achievesuccess.
  30. 30. #30Moonta Project forward focus• Interpretation of results from recently completed drillingprograms at Paskeville, Wombat and Alford West.• Modeling and resource estimation for advanced prospectsto begin building project wide mineral inventory.• Digitising of historical exploration data to highlight additionalopportunities.• Further, drill dominated exploration to grow resourceposition.
  31. 31. #31The Alford Fault Zone – a new copper belt for Australia?The Alford Fault Zone is evident as a trough of non magnetic meta-somatite flanked by stronglymagnetic meta-somatite highs wrapping around the south east contact of the Tickera Granite.Many intersections of copper greater than 10m at 1.00%Cu occur:Historic DrillingALAC197 - 21m @ 1.01% Cu & 882ppm CoALDDH09 - 14m @ 2.26% Cu &11.4g/t AgALDDH01 - 76m @ 0.95% CuMPBD3 - 14m @ 1.50% CuHistoric DrillingAL7 - 29m @ 1.07% Cu from 44mAL9 - 5m @ 2.78% Cu & 3.17g/t AuAl10 - 12m @ 2.22% Cu from 64mAl11 - 10m @ 2.30% Cu from 59mDDH129 - 106m @ 0.12% Mo from 119.8mDDH132 - 11.2m @ 2.02% Cu from 146.9mDDH224 - 9m @ 0.95% Cu from 104mAdelaide ResourcesALWAC003 - 10m @ 1.03% Cu & 0.40g/t AuALWAC006 - 10m @ 4.23% Cu & 0.20g/t AuALWAC007 - 20m @ 4.20% Cu & 0.27g/t AuALWAC008 - 45m @ 1.55% Cu & 1.81g/t AuALWAC016 - 15m @ 1.04% Cu & 0.31g/t AuALWAC017 - 10m @ 1.69% Cu & 1.24g/t AuALWAC019 - 7m @ 1.02% Cu & 0.06g/t AuALWAC023 - 4m @ 1.20% Cu & 0.09g/t AuHistoric DrillingMDD001 - 66m @ 1.04% CuWOMPD0521 - 36m @ 1.14% Cu
  32. 32. #32Adelaide Resources’ Business• We are a South Australian based mineral explorer listed on the ASX in 1996 with afocus on copper and gold in SA, NT and Qld.• The Moonta Copper-Gold Project on South Australia’s YorkePeninsula is our flagship project• Shares issued ~189 million• Unlisted securities ~3.2 million• Cash $2.4 million at 31 March 2013• Market cap $19.17M (11.5 cents) at 7th May 2013
  33. 33. #33The BoardAndrew Brown – Fund ManagerNon-executive Chairman30+ years experienceChris Drown – GeologistManaging Director25+ years experienceJohn Horan – AccountantNon-executive Director40+ years experienceJohn den Dryver – Mining EngineerNon-executive Director30+ years experienceMike Hatcher – GeologistNon-executive Director40+ years experienceNick Harding – AccountantCompany Secretary/CFO25+ years experienceMark Manly – GeologistExploration Manager25+ years experienceA professionalteam with yearsof industryexperienceSenior Management
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