This document discusses the exploration potential of New South Wales (NSW), Australia. It notes that exploration maturity is low, as only a small percentage of drilling has reached depths below 150 meters where potential deposits may be buried. Much of the prospective Macquarie Arc and Thompson Orogen regions remain untested under shallow cover. NSW has a large endowment of resources like gold and copper, ranking highly compared to other Australian states. However, these resources are largely untapped below 150 meters depth. The document argues that NSW presents excellent opportunities for mineral discoveries, as vast areas of prospective geology remain under-explored at depths with potential for tier 1 deposits.

1. Exploring NSW
An Optimists Perspective
Paul Dale
Director Land Use & Titles Advice
May 2017

2. Tuesday 9 May 2017
Parliament House, Sydney
CONTENTS
1. Exploration Maturity
a) Cover Depth
b) Depth of Drilling
c) Buried Geological Potential
2. NSW Group 1 Tenure Coverage
3. NSW Resource Endowment
4. National Resource Endowment
5. Summary NSWMC Forum Agenda
• Improving Probabilities of
Exploration Success
 Exploration Maturity
 Exploration Targeting

3. Tuesday 9 May 2017
Parliament House, Sydney
Exploration Maturity - Depth of Cover

4. Tuesday 9 May 2017
Parliament House, Sydney
Exploration Maturity - Depth of Cover
150m

5. Tuesday 9 May 2017
Parliament House, Sydney
Exploration Maturity – Cover >150 meters

6. Tuesday 9 May 2017
Parliament House, Sydney
Exploration Maturity – Group 1 Drilling
Group 1 = 83% (161,533) of NSW drillhole database
As at 05/05/2017
All Group 1 Drillholes
>150m depth 4.7% holes (7,656 holes) are 150 to 300m deep
>300m depth 2.6% (4,146 holes)
92% of Group 1 holes drilled to <150m depth
Vast untested potential below 150m

7. Tuesday 9 May 2017
Parliament House, Sydney
Exploration Maturity – Buried Geological Potential

8. Tuesday 9 May 2017
Parliament House, Sydney
Mac Arc estimated undiscovered deposits 6.9 Estimated error 3.5
Deposit density 39 /100,000km2
NSW
Exploration Maturity – Simplified Geology
USGS Porphyry Copper Assessment of Eastern Australia; Report 2010-5090-L

9. Tuesday 9 May 2017
Parliament House, Sydney
Kreuzer et al Exploration Maturity study in Mac Arc study area (Sht SI/55-8) 1980-2002
• “The Macquarie Arc was by no means a mature exploration destination and past
exploration outside the main mining area was not necessarily effective”
• Moreover, no spatial correlation was apparent between areas of higher exploration
expenditure and greater geological potential”
$70M over 22 years in study area
• 51% recon & target generation
• 49% on drill test / feasibility
– Only $15M on drilling
– Drilling on only 12% of study area
• 75% of licences did not progress
to on-ground work / geophys
Exploration Maturity – A Macquarie Arc case study
Kreuzer et al 2014; Comparing Prospectivity modelling results and past exploration data: A case study of
porphyry Cu-Au mineral systems in the Macquarie Arc. Ore Geology Reviews, OREGEO-01303
Kreuzer et al Exploration Maturity study in Mac Arc study area (Sht SI/55-8) 1980-2002
• “The Macquarie Arc was by no means a mature exploration destination and past
exploration outside the main mining area was not necessarily effective”
• Moreover, no spatial correlation was apparent between areas of higher exploration
expenditure and greater geological potential”
$70M over 22 years in study area
• 51% recon & target generation
• 49% on drill test / feasibility
– Only $15M on drilling
– Drilling on only 12% of study area
• 75% of licences did not progress
to on-ground work / geophys

10. Tuesday 9 May 2017
Parliament House, Sydney
Group 1 Tenure Coverage
• 885 Group 1 Titles
• 300 Group 1 Mining related Titles
• 585 Group 1 Exploration Licences (EL)
• 69,434 km2 / 8.67% under title ex Govt (1 May 2017)
As at 05/05/2017

11. Tuesday 9 May 2017
Parliament House, Sydney
Area
6%
12%
79%
3%
Excluded
Total Market Capitalisation of listed
(on & offshore) mining & exploration (Group 1); AUD$273.2B
As at 05/05/2017
Group 1 MineralTitles – by Company Size

12. Tuesday 9 May 2017
Parliament House, Sydney
Group 1 Tenure Coverage – Strategic Metals
• 40% of current applications
include strategic metals
– That’s 24 from 60 applications 2017
– Up from 20% in 2016 (16 from 78
applications)
• Broken Hill area (Co, Li, PGE’s)
• Nyngan & Fifield (Sc, REE’s)
• New England Orogen (Co, Li)
• Murray Basin (HMS)
• Some applications include Mn
– Mn value increased 65% in 2016 to
$2650/t (Metabulletin.com)
• OCR function in DIGS
As at 05/05/2017

13. Tuesday 9 May 2017
Parliament House, Sydney
NSW Resource Endowment – Available Ground
As at 05/05/2017
As at 12/02/2017

14. Tuesday 9 May 2017
Parliament House, Sydney
NSW Resource Endowment
– Ranking in top three States on key commodities
– The margin drops when excluding inferred resources
– NSW: 36% of WA’s insitu resources (41% ex-inferred)
• NSW insitu resource value higher than WA
when normalised by area
– NSW $134k / km2 ; WA $112k / km2
$19.01
$181.88
$116.24
$20.73
$41.97
$9.10 $0.10 $0.48
NSW insitu Resources value by Sub-province
Total insitu value AUD ~$390 Billion
Curnamona Province
Macquarie Arc
Murray Basin
Cobar Basin
Lachlan Basin
New England Orogen
Thomson Orogen
Koonenberry Belt
– AUD$107B insitu global Gold resource value
NSW (Nov 2015 price)
• Key Discoveries have been recent
– 69% (Au) and 79% (Cu) of NSW resources insitu
– Insitu Au resources increased 6% from 2015
– Over 27 discoveries (all commodities) in last 12
years
• NSW stacks up very well against its peers – the Great All Rounder

15. Tuesday 9 May 2017
Parliament House, Sydney
National Endowment - Gold
0
2000
4000
6000
8000
10000
12000
14000
WA NSW SA VIC QLD NT TAS
AuTonnes
Au Endowment with Total Resources
0
2000
4000
6000
8000
10000
12000
14000
WA NSW SA VIC QLD NT TASAuTonnes
Au Endowment excluding Inferred
Resources
All Major Gold Projects >70t contained Au (t) ~2.5Moz Au
Deposit State Status Total Global
% Resource
in Inferred
Global Resource
excluding Inferred
Olympic Dam SA Operating 3012.6 33 2023.8
Cadia East NSW Operating 1149.2 11 1026.8
Boddington WA Operating 476.2 1 472.8
Carrapateena SA Developm 438.2 26 326.0
Kalgoorlie (Super Pit) WA Operating 286.1 0 285.6
Telfer WA Operating 333.5 15 281.9
Batman NT Deposit 290.7 18 237.1
Tropicana Project WA Operating 232.4 21 184.7
Cadia Hill NSW C & M 167.7 5 159.6
Cowal NSW Operating 158.4 11 141.6
Tanami - Newmont NT Operating 174.7 21 138.2
Gruyere WA Deposit 191.6 30 133.9
Sunrise Dam WA Operating 147.2 28 106.2
Sons of Gwalia WA Operating 102.5 11 91.3
Wallaby WA Operating 143.1 38 88.5
Fosterville VIC Operating 91.1 23 70.4
Northparkes NSW Operating 90.5 24 68.9
Garden Well WA Operating 77.1 12 68.1
Bullabulling WA Historic 95.6 29 67.9
Sarsfield QLD Developm 78.6 20 63.0
Ridgeway NSW C & M 77.6 20 62.0
Kalkaroo SA Deposit 61.8 0 61.8
Prominent Hill SA Operating 120.2 51 59.1
Mungana QLD Deposit 82.1 28 59.0
SWAN QLD Deposit 85.1 37 53.5
Charters Towers QLD Deposit 374.3 94 24.3
Status & Projects ranked by Resource endowment excluding Inferred Category
Sources: ABS, GA, GSNSW, Company web-sites

16. Tuesday 9 May 2017
Parliament House, Sydney
National Endowment - Copper
All major Copper Projects >1Mt contained Cu
Deposit State Status
Total Global
(Mt)
% Resource in
Inferred
Global Resource
excluding Inferred
Olympic Dam SA Operating 78.80 37 49.55
Cadia East NSW Operating 7.44 9 6.76
Carrapateena SA Development 7.56 18 6.21
Mount Isa QLD Operating 5.60 33 3.75
Northparkes NSW Operating 2.78 26 2.07
Hillside SA Deposit 1.98 34 1.30
Prominent Hill SA Operating 1.79 41 1.06
Ernest Henry QLD Operating 1.12 9 1.02
Mount Gordon QLD Care & maint 2.32 60 0.92
SWAN QLD Deposit 1.41 38 0.87
0
10
20
30
40
50
60
70
80
90
100
SA QLD NSW WA TAS NT VIC
CuMillionTonnes
Cu Endowment excluding Inferred Resources
Status & Projects ranked by Resource endowment excluding Inferred Category
Sources: ABS, GA, GSNSW, Company web-sites
0
10
20
30
40
50
60
70
80
90
100
SA QLD NSW WA TAS NT VIC
CuMillionTonnes
Cu Endowment with Total Resources

17. Tuesday 9 May 2017
Parliament House, Sydney
Why Invest in NSW?
• Demonstrated share & capital market interest in NSW
• Prospective ground available – in mineralised areas & particularly in covered areas
• Large endowment in key commodities – NSW highly ranked against other States
• Relative Endowment increases when normalised for area
• Demonstrated Tier 1 results to be achieved in multiple commodities
• Demonstrated high deposit density – largely untested to the north
• Vast area of Macquarie Arc / Thompson Orogen under <200m cover
GSNSW precompetitive data acquisition to improve success odds
• Exploration maturity low below 150m cover (and 150m depth generally!)
<5% of Group 1 holes have been drilled to >150m
• Why go anywhere else to explore under cover for a Tier 1?

18. Tuesday 9 May 2017
Parliament House, Sydney
DISCOVER NSW