SA Exploration and Mining Conference Monax Exploration Update
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SA Exploration and Mining Conference November 28, 2013 Monax Exploration Update “Targeting the next large copper deposit on the Gawler Craton” Gary Ferris Managing Director
Transcript of SA Exploration and Mining Conference Monax Exploration Update
SA Exploration and
Mining Conference
November 28, 2013
Monax Exploration Update
“Targeting the next large copper deposit on the
Gawler Craton”
Gary Ferris
Managing Director
Monax Mining – Project Overview
Monax MiningFocus on copper and graphite on the Gawler Craton
MonaxJV projects
Monaxprojects
Monax earning in projects
Monax | Antofagasta Allianceproject generation
Punt Hill (Antofagasta) Reedy Lagoon (FMG)
Red = copper Black = graphiteBlue = nickel/copper
Designated
Projects
AntofagastaFocus on copper in S.A.
Webling Bay
Waddikee
Phar Lap
WGC
Algebuckina (AMSA 51% | Monax 49%)
Potential projectpathway
Millers Creek
Kangaroo Island
Musgraves
Projects & Investment Highlights
Major Projects (both in partnership with major Chilean
copper producer Antofagasta plc)
Punt Hill Copper-Gold Project (100% Monax – Antofagasta earning 51%)
• Farm-in with Antofagasta has expended ~US$3.9 million to date on the project.
Monax | Antofagasta Strategic Alliance• A “project generation Alliance” fully funded
by Antofagasta and recently extended by an extra year
• Currently one Designated Project and two Alliance projects
Projects & Investment Highlights
Other Projects
Waddikee Project (100% Monax)• Maiden JORC Inferred Mineral Resource of 6.38 Mt
grading 8.8% TGC* with approximately 550,000 tonnes of contained graphite using a 5% TGC cut-off.
• High-grade component of 1.75 Mt grading 12.5% TGC using a 10% TGC cut-off.
• Scope for the definition of further resources along strike and at depth of current deposit and within tenement.
* TGC – total graphitic carbon
Growth Pipeline (Copper focus)
Algebuckina Project (AMSA 51%:MOX 49%)• IOCG target identified, drilling planned 2014.
Reedy Lagoon Project (Term sheet with FMG)• IOCG target identified, gravity and drilling planned for 2014
Phar Lap Project• Two IOCG targets identified• Drilling planned for 2014
Western Gawler Craton Project• Extensive landholding in prospective Ni-Cu terrain• Thompson Ni-Belt and Albany Fraser mineralisation
analogy
Punt Hill Copper-Gold Project
Monax’s Flagship Project – Punt Hill
• Located within Olympic Iron-Oxide Copper-Gold Province in South Australia.
• Province hosts major copper deposits at Olympic Dam, Prominent Hill, Carrapateena and Hillside.
• Premier IOCG province in Australia which attracts large multi-national companies (BHP Billiton, Rio Tinto and Antofagasta) and is tightly held.
• Persistence is required to discover major ore deposits on the Gawler Craton.
• Importance of the Olympic IOCG Province highlighted by the three discoveries within last decade.
• Monax signed a significant Farm-In Agreement with a wholly owned subsidiary of Chilean major, Antofagasta plc, on 31 August 2010.
Punt Hill – Farm-In Agreement
Farm-In Agreement with Antofagasta plc
• Antofagasta spending US$4 million on exploration to earn 51% interest in Punt Hill (Phase 1).
• Antofagasta has an option to fund a further US$5 million on exploration to earn an additional 19% interest in the project (70% total interest) (Phase 2).
• Drilling programs completed in 2011 & 2012.
• Antofagasta has expended ~US$3.9 million on the project to date.
• Monax has identified further targets for drilling.
• Further drilling will trigger Phase 2 of Agreement.
Who is Antofagasta?
TRANSPORT
FCAB (Chile) FCA (Bolivia)
Combined rail and road tonnages of approx.
7.7 million tonnes(2) per year
FREEFLOAT
35%
o FTSE 100 since March 2004
o Market capitalisation (31 Oct 2013): US$14.0bn
Operating assets (Chile)Los Pelambres – Esperanza – El Tesoro – Michilla
o 700,000 tonnes(1) of copper in concentrate and cathodeso 280,000 ounces(1) of gold in concentrate
o 8,000 tonnes(1) of molybdenum in concentrate
Exploration and evaluation studies in Chile and the United States Earn-in agreements in Europe, Africa, the Americas and Australia
MINING WATER
Aguas de Antofagasta (Chile)
Approx. 51 million m3 (2)
sold per year
LUKSICGROUP
65%
(2) 2012 full year values
5
12
Antofagasta plc
AM ExplorationOffices
Strategic Alliance
Joint Venture
Earn-in (numbers indicate Alliance Designated Projects)
1
1
223
Source: A Wilson, Antofagasta
Copper in South Australia
Source: DMITRE presentation
Prairie Dog Prospect• PDDD2 99m @ 0.24% Cu 876-975m
Groundhog Prospect• GHDD1 126m @ 0.4% Cu 837-963m
(including 14m @ 0.7% Cu & 14m @ 1% Cu)
• GHDD2 162m @ 0.34% Cu 888-1050m (including 28m @ 0.7% Cu)
• GHDD3 76m @ 0.22% Cu 826-902m
• GHDD4 122m @ 0.47% Cu, 0.1g/t Au, 6.6g/t Ag, 0.38% Zn 840-962m (including 15m @ 0.96% Cu)
• GHDD6 159m @ 0.47% Cu, 0.12g/t Au, 5.3g/t Ag, 0.48% Zn 846-1005m (including 17m @ 1.1% Cu)
Woodchuck Prospect• WDDD1 70m @ 0.41% Cu 683-753m
(including 28m @ 0.82% Cu, 10g/t Ag)
Whistlepig Prospect• WPDD1 60m @ 0.13% Cu 788-848m
large area of skarnalteration and
copper mineralisation
GHDD1 WDDD1 PDDD2Note: all intersections reported are downholelengths, but due to flat lying nature of sedimentsinterpreted to represent true widths
Punt Hill – Alteration & mineralisation
New Targets
• Geophysical/geological review has highlighted additional drilling targets.
• Technical Committee has approved three sites for drilling. Funding approval required from Antofagasta Business Development Committee.
• Monax has received the date of granite within hole HODD3 – Hiltaba age (alteration) – same age date as mineralisation at Olympic Dam.
• Monax awaiting funding approval for next round of drilling.
Carrapateena
Khamsin
Punt Hill – Current position
Image: Bouguer Gravity residual
Punt Hill – Bottle Hill Target
BHDD01• DTB: 546.9m• Foliated granite, pegmatite &
dolerite• Remodeling suggests anomaly
inadequately tested
Khamsin
Bottle Hill: 3D Gravity inversion iso-surfacesBottle Hill: 3D Gravity inversion iso-surfaces
Khamsin: 3D Gravity inversion iso-surfacesLooking East
Looking East
Looking North East
SASC2
Punt Hill – Research Projects
DMITRE GSSA - PACE• ‘Mineral System Analysis’ (e.g. Emmie Bluff)• HyLogger | Geochemistry | Alteration | Inversion Modeling• Drill hole petrophyics & HyLogger mineralogy integrated to
define mineral signatures• 3D predictive geophysical inversion mineral models
Adelaide University & DET*CRC• Mineral chemistry research project• Hydrothermal system evolution & lateral zonation at Groundhog
(Diana-Sophie Nikolakopoulis)
3D predictive basement alteration mineralogy model: K-Feld(purple), sericite(red), chlorite(dark green), pyroxene(light green), geothite(yellow), hematite(brown)
Wittichenite (Cu3BiS3) inclusions in chalcocite & bornite
Al Ca Fe Yb
Garnet growth zonation
Monax|Antofagasta Strategic Alliance
Monax | Antofagasta Strategic Alliance
• In August 2011, Monax signed a Strategic Alliance with a wholly owned subsidiary of Antofagasta plc, for copper project generation within South Australia.
• Antofagasta committed US$1 million over two years.
• Antofagasta has approved 3rd year of funding (@$US 400,000).
• Antofagasta to fund “Designated Projects” –US$4 million over three years to earn 70% interest in project.
• One Designated Project – Millers Creek
• Two current Alliance Project areas1. Musgrave Province – three new
Applications.2. Kangaroo Island – tenement recently
granted.
Monax|Antofagasta Strategic Alliance
Monax Alliance
3rd Party 100%MOX & AMSA 0%
If AMSA withdraws interest, opportunity reverts to MOX 100%
Monax
Antofagasta (AMSA)
Third Party
AllianceProjects
3rd PartyProjects
Example scenarios
AMSA51%
MOX49%
AMSA70%
MOX30%
80% project equity
70% project equity
100% project equity
20
56
24
3021
49
7030
Designated Project PhaseAlliance Phase Joint Venture PhaseFunded 100% by AntofagastaProject generation & evaluation
Funded 100% by AMSA US$4 million over three years
Monax retains right to fund 30% of expenditure or dilute
MOX 30% and receives success fee of $US3M upon $US4M expenditure by AMSAMonax Free Carried
(i.e. Millers Creek DP)
AMSA70%
MOX30%
AMSA51%
MOX49%
Gawler Craton State of Play – IOCG Province
Monax
BHP
Oz Minerals
FMG
Tasman/Rio
Glencore (Xstrata)/Gunson
BHP Billiton• Still largest landholder within Olympic IOCG
Province. Very quiet on the exploration front.
Oz Minerals • Put the brakes on Carrapateena development.
Currently exploring Khamsin with positive results.
• Withdrew from JV with ASX-listed IMX Resources.
Tasman/Rio Tinto• Tasman currently drilling final two holes of initial
phase.
Xstrata-Glencore/Gunson JV• Withdrew from JV with Argo Exploration.• Very quiet on exploration front?
FMG• Recent entrants to the area.• Granted tenements – ??exploration activity.
Antofagasta/Monax• Active at two projects (Punt Hill & Millers
Creek).• Still assessing projects within Olympic IOCG
Province.
PACE WPA Gravity Survey
• DMITRE gravity survey within Woomera Prohibited Area (WPA).
• Covers area the subject of recent deal with ASX-listed Maximus Resources.
• Monax well positioned to take advantage of this new data within a prospective and under-explored part of the Gawler Craton.
Monax tenements (includes Monax Alliance tenements and 3rd party tenements i.e. Maximus & FMG)
• Monax supported by major Chilean copper producer Antofagasta plc for Punt Hill, Strategic Alliance and future Designated Projects.
• Monax has continued exploration at its flagship Punt Hill project.
• Antofagasta has extended Strategic Alliance funding for additional 12 months.
• 2014 represents a defining year for Monax with new Designated Project(s) and potentially further drilling at Punt Hill.
• Targeting the next large copper deposit on the Gawler Craton.
Summary
Forward Looking Statements“The following presentation includes forward looking statements. Forward looking statements inherently involve subjective judgementand analysis and are subject to significant uncertainties, risks and contingencies, many of which are outside of the control of, andmay be unknown to, the Company. Actual results and developments may vary materially from those expressed in these materials.The types of uncertainties which are relevant to the Company may include, but are not limited to, commodity prices, politicaluncertainty, changes to the regulatory framework which applies to the business of the Company and general economicconditions. Given these uncertainties, readers are cautioned not to place undue reliance on such forward looking statements.
Forward looking statements in these materials speak only at the date of issue. Subject to any continuing obligations under applicablelaw or any relevant stock exchange listing rules, the Company does not undertake any obligation to publicly update or revise any ofthe forward looking statements or any change in events, conditions or circumstances on which any such statement is based.”
Competent Person StatementThe information in this presentation that relates to Exploration Results is based on information compiled by Mr G M Ferris, who is aMember of the Australasian Institute of Mining and Metallurgy. Mr Ferris is employed full time by the Company as Managing Directorand, has a minimum of five years relevant experience in the style of mineralisation and type of deposit under consideration; andqualifies 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 Ferris consents to the inclusion of the information in this report in the form and context inwhich it appears.
Information in this presentation that relates to Mineral Resources was compiled by Ms Sharron Sylvester, who is a Member of theAustralian Institute of Geoscientists (RPGeo 10125). Ms Sylvester is a full-time employee of AMC Consultants Pty Ltd and hassufficient experience relevant to the styles of mineralisation and to the activities which are being reported to qualify as a CompetentPerson as defined by the JORC Code, 2012 and consents to the release of the information compiled in this report in the form andcontext in which it appears.
Disclaimer
