2009-09-07 Mining the Territory · Norseman Gold Corporation, WMC Resources Limited and Lafayette...
Transcript of 2009-09-07 Mining the Territory · Norseman Gold Corporation, WMC Resources Limited and Lafayette...
3 Kimberley Street, West Leederville WA 6007 PO BOX 1573 West Perth WA 6872
Telephone 08 9381 7838 Facsimile 08 9381 5375 Email: [email protected]
Website: www.emmersonresources.com.au ABN 53 117 086 745
Monday 7th September, 2009 ASX Limited Dear Sir/Madam,
INVESTOR PRESENTATION
Emmerson Resources Limited is pleased to release a presentation which will be delivered to investors and industry at the annual Mining the Territory Conference and Exhibition, held at the Darwin Convention Centre, Darwin, Northern Territory. The conference runs from Wednesday 9th September to Friday 11th September, 2009.
Yours faithfully, Emmerson Resources Limited
Shane Volk Company Secretary
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Rebuilding a Richly EndowedGold and Copper Province
Rob Bills – Managing Director and Chief Executive Officer
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Important Notice and DisclaimerThis presentation has been prepared by Emmerson Resources Limited ACN 117 086 745 (ASX: ERM) (the “Company”) and is being provided to a limited number of investors for the sole purpose of providing preliminary background information to enable recipients to review the business activities of the Company. It is not intended as an offer, invitation, solicitation or recommendation with respect to the purchase or sale of any securities.
This presentation should not be relied upon as a representation of any matter that a potential investor should consider in evaluating the Company. The Company, nor any of its directors, agents, officers, employees or affiliates does not make any representation or warranty, express or implied, as to or endorsement of, the accuracy or completeness of any information, statements, representations or forecasts contained in this presentation, and they do not accept any liability for any statement made in, or omitted from, this presentation.
Prospective investors should make their own independent evaluation of an investment in the Company.
Nothing in this presentation should be construed as a financial product advice, whether personal or general, for the purposes of Section 766B of the Corporations Act. This presentation consists purely of factual information and does not involve or imply a recommendation or a statement of opinion in respect of whether to buy, sell or hold a financial product. The Company has not considered any of your objectives, financial situation or needs. This presentation and contents has been made available in confidence and may not be reproduced or disclosed to third parties or made public in any way without the express written permission of the Company.
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Emmerson Resources
• Emmerson 3000 km2 of Tenements cover the main Tennant Creek Mineral Field (TCMF) structures
• TCMF is recognised as one of the worlds major mineral belts
• TCMF is an Iron Oxide Copper Gold (IOCG) province
• The field remains largely unexplored with the average drilling depth less than 150m
• Emmerson’s innovative approach to exploration in the TCMF focuses on using new geophysics to explore undercover
• The recent and significant investment by Ivanhoe is testament tothe potential of this approach
• Ivanhoe will invest $18M over 3 years and a further $10M over the following 5 years
• Emmerson is well funded with a cash balance of ~$13M2
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Mr. Robert Bills B.Sc, M.Sc
Managing Director and Chief Executive Officer
Rob joined Emmerson on 10 September 2007. He is a geologist and holds a Bachelor of Science Degree from Monash University and a Master of Science Degree from James Cook University. Prior to joining Emmerson Rob had a 25 year career with Western Mining Corporation, then BHP Billiton where he held the position of global commodity specialist.
Chairman & Managing Director
Mr. Andrew McIlwain B.Eng (Mining)
Non-Executive Chairman
Andrew joined Emmerson on 1 February 2007, appointed as first Chairman of the Board. He is a qualified mining engineer and has held technical, senior management and executive roles within Mt. Isa Mines Limited, Central Norseman Gold Corporation, WMC Resources Limited and Lafayette Mining Limited.
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Emmerson Resources
• Tennant Creek Mineral field produced 5.5 Moz gold and 470,000 tonnes copper
• Historically one of the highest grade goldfields in Australia (average 15-20 g/t Au, 2-4% Cu)
• Previous discoveries were largely ‘low hanging fruit’
• Emmerson has aggregated the majority of the field
• Will be systematically testing ~ 26 tier 1 gold-copper projects
• Emmerson own the only gold plant in the region
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Company Making Field
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Gold Deposits
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200,000
400,000
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1,000,000
1,200,000
Nobles
Nob
Juno
White
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Golden
Forty
TC8
North
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30.0
40.0
50.0
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Ounces Gold Gold Grade
Gold/Copper Deposits
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150,000
200,000
250,000
Warr
ego
Peko
Gecko
Orlando
Ivanhoe
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300,000
600,000
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Tonnes Copper Ounces Gold
Total in-situ Au value of $9.6B (A$)Total in-situ Cu value of $3.8B (A$)
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Applications New Exploration Techniques
Old ApproachTechniques:
• Prospecting
• Geochemistry
• Magnetics
Methods used:
• Geology• Drill magnetic highs• Geochemistry
New ApproachTechniques:
• Systematic gravity geophysics
• High resolution aeromagnetics
• Structural & Mineral mapping
Methods used:
• Predictive structural & deposit framework
• Understand the relationship of gravity & magnetic anomalies
• Geochemistry + ASD• Prioritise and drill, drill .... !!
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Production in Southern Tenements – Outcrop Versus No Outcrop
Production of 2.6mozs (out of a total of 5.5mozs)
Production of 2.6mozs (out of a total of 5.5mozs)
Production of 153kozsProduction of 153kozs
No OutcropNo Outcrop OutcropOutcrop
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Application of New Technologies and Exploration Models
Developed 3-D Models of Mineralising System
Olympic Dam province Prominent Hill – 1.3moz Au; 7.0moz Ag; 1.9mt Cu
• Emmerson has collected new geophysical and geological datasets
• Emmerson has undertaken innovative geophysical processing and integration of data to reveal a new generation of gold-copper targets in the Tennant Creek Mineral Field
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0.0
0.3
0.6
1.1
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Model Density Contrast. gm/cc
7825600 N
7825600 N
7825800 N
7825800 N
7826000 N
7826000 N
7826200 N
7826200 N
7826400 N
7826400 N
7826600 N
7826600 N
7826800 N
7826800 N
7827000 N
7827000 N
7827200 N
7827200 N
- 700 m - 700 m
- 600 m - 600 m
- 500 m - 500 m
- 400 m - 400 m
- 300 m - 300 m
- 200 m - 200 m
- 100 m - 100 m
0 m 0 m
100 m 100 m
200 m 200 m
300 m 300 m
Additional detailed geophysics at Trinity 1
2D gravity model showing depth extent of dense iron-oxide (interpreted host to the mineralisation – note section depth is 1 km).
X-section of AMT showing low resistivity zone
Induced Polarisation showing chargeable zones
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Pinnacles – Image of the Gravity with Magnetics (as contours).
• Undercover RAB Geochemical Drilling
• Delineated hematite ironstone as predicted by the gravity geophysics
• Do not know if it is mineralised –assays pending
• Next step is drilling downplunge
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Brownfields Exploration 2009 – “Analytic One”
ANRC 0013m @ 48.3g/t Aufrom 264m
ANRC0043m @ 7.76 g/tfrom 225m
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Brownfields Exploration 2009 - Golden Forty & Golden Kangaroo
Golden Forty Mine:• 5m @ 7.03g/t Au incl.
3m @ 10.1g/t Au• 4m @ 5.96g/t Au• 4m @ 9.12g/t Au• 4m @ 15.3g/t Au• 3m @ 4.04g/t Au • 5m @ 4.59 g/t Au
Golden Kangaroo:• 7m @ 21.3g/t Au• 5m @ 12.4 g/t Au• 7m @ 5.16 g/t Au• 9m @ 3.82 g/t Au• 3m @ 4.81 g/t Au• 3m @ 5.25 g/t Au• 10m @ 7.53 g/t Au
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Warrego Gold Plant – 100% Emmerson
• Carbon-in-pulp processing plant
• Located 35km North East of Tennant Creek
• The plant has a maximum throughput capacity of 300,000 tonnes per annum
• Gold recovery rates of 98% achieved by prior operators
• Warrego plant commissioned in 1992. Last operated in December 2005 after being completely refurbished in 2003
• Will cost ~$2m to bring back into service
• Replacement value of greater than $20m
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Emmerson Snapshot [ASX:ERM]
Capital Structure Shareholder Blocks
Shares on issue 184,033,197Restricted shares on issue [escrow until 17 Dec 2009] 42,062,016Total shares on issue 226,095,213
Expiry 31‐JUL‐2010 Exercise price $0.21 1,580,000Expiry 31‐JUL‐2010 Exercise price $0.25 5,000,000Expiry 13‐DEC‐2010 Exercise price $0.25 5,000,000Expiry 1‐JUN‐2011 Exercise price $0.20 7,900,000Expiry 31‐JUL‐2012 Exercise price $0.25 6,500,000Expiry 13‐DEC‐2012 Exercise price $0.30 5,000,000Expiry 10‐MAR‐2013 Exercise price $0.25 500,000Total Options on Issue 31,480,000
Share Price Since ListingSnapshot
Shares on issue 226,095,213
Share price $0.210
Market capitalisation $47,479,995
Cash on hand [31 August 2009] $12,500,000
Debt $0
Enterprise value $34,979,995
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What to Expect in 2009
• Ranking and prioritisation of all targets now complete
• EMR possess a high quality portfolio of brownfield and greenfield targets
• New techniques progressively applied to drill targets
• Aggressive drilling campaign commenced - success does not hinge on any one target (26 tier 1 targets)
• $28m IVA JV to accelerate exploration and spend~ $7m on testing new greenfields tier 1 targets this field season
• Option for ERM to “sole fund sole risk” projects that are not being worked by the JV
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The information in this report relating to Exploration Results and Mineral Resources is based on information compiled by Mr Steve Russell who is a Member of the Australian Institute of Geoscientists and has sufficient exploration experience which is relevant to the style of mineralization under consideration to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Russell is a full time employee of Emmerson Resources Ltd. Mr Russell consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
Competency StatementF
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