UNLOCKING THE POTENTIAL OF THE EAST MENZIES GOLDFIELD

Transcription

1 NOVEMBER 2013 UNLOCKING THE POTENTIAL OF THE EAST MENZIES GOLDFIELD ASX:SXT

2 DISCLAIMER This presentation may contain certain forward looking statements and projections regarding: estimated, resources and reserves; planned production and operating costs profiles; planned capital requirements; and planned strategies and corporate objectives. Such forward looking statements/projections are estimates for discussion purposes only and should not be relied upon. They are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors, many of which are beyond the control of Stratum Metals Limited. The forward looking statements/projections are inherently uncertain and may therefore differ materially from results ultimately achieved. Stratum Metals Limited does not make any representations and provides no warranties concerning the accuracy of the projections, and disclaims any obligation to update or revise any forward looking statements/projects based on new information, future events or otherwise except to the extent required by applicable laws. The information in this presentation that relates to Exploration Results and planning is based on information compiled by Todd Axford, who is a member of the Australasian Institute of Mining and Metallurgy. Todd Axford is a contracted employee of the company, and has sufficient experience relevant to the styles of mineralisation and type of deposit under consideration and to the activity he is undertaking, to qualify as a Competent Person as defined in the December 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Todd Axford consents to the inclusion in the release of the matters based on his information in the form and context in which it appears. 2

3 INVESTMENT HIGHLIGHTS First company to consolidate the East Menzies goldfield, providing necessary scale for targeted exploration Extensive land holding (154km 2 ) in an historically prospective region Recently acquired 100% project interest 1 Over 444 old mine shafts, 229 identified conductors, 20 identified priority conductors with 3 drill-ready targets interpreted, modelled and structured to commence exploration Imminent news flow from drilling programme Proximity to existing infrastructure, service providers and gold mills Board and management combining corporate, geological/exploration and operational experience Strategic alliance secured with previous JV partner* 1 Subject to shareholder approval at upcoming SXT AGM 3

4 A$ CORPORATE SNAPSHOT $AUD Share Price 1 $0.08 Total Shares on Issue 63,440,484 Options 2 12,850,000 Convertible Notes 3 2,105,000 Market Cap 4 $5.1 million ASX SHARE PRICE PERFORMANCE , , , , , , , ,000 Cash 5 $848,000 Oct-11 Apr-12 Oct-12 Apr-13 Oct-13 (1) As at 31 October 2013 Volume Last Price (2) Issue price of 25 cents, 35 cents & 40 cents (various expiry dates) (3) Includes 1.35 million convertible notes (escrow for 12 months below A$0.12 per share) for purchase of 40% of Menzies Goldfield Limited and subject to shareholder approval at upcoming SXT AGM (4) Undiluted (5) Unaudited as at 30 September 2013 TOP 4 SHAREHOLDERS* Resources Assets Pty Ltd 9.23% Jonca Investments Pty Ltd 7.05% Holland International Pty Ltd 4.89% HSBC Custody Nominees (Australia) Ltd 4.76% *Does not include conversion of convertible notes. Refer to SXT announcement dated 30 October 2013 for further details 4

5 BREADTH AND DEPTH OF EXPERIENCE COMBINATION OF CORPORATE AND GEOLOGICAL/EXPLORATION EXPERIENCE RICK ANTHON - BA, LLB, MAICD - NON-EXECUTIVE CHAIRMAN 25 years experience in corporate and commercial law. Particular expertise in mining exploration, mineral development and energy sectors. MARTIN HOLLAND - FOUNDER AND MANAGING DIRECTOR Successfully founded, managed and developed several profitable businesses. Strong working relationships with leading institutions and banks across Australia and Asia Pacific. MICHAEL ADDISON - B.Sc.ENG, M.PHIL (OXON), FAIM, MAICD - NON-EXECUTIVE DIRECTOR Founding director of Carabella Resources Limited. Positions with three global investment banks. TERRY GRAMMER - NON-EXECUTIVE DIRECTOR AMEC Prospector of the Year Currently Non-Executive Director of Sirius Resources NL. DUNCAN CORNISH - COMPANY SECRETARY Management and reporting experience with ASX, AIM, LSE and TSX listed companies. Prior roles with global professional services firms in both Australia and the UK. TODD AXFORD - TECHNICAL MANAGER - BSc (Geology) GdipPM, MAusIMM More than 17 years experience including senior roles at Mount Gibson Iron and Australasian Resources Limited. *Subject to shareholder approval, SXT proposes (as part of the Menzies Goldfield Limited Investment) Mr John Shepherd join the Board of SXT as Nonexecutive Director 5

6 EAST MENZIES HISTORIC PRODUCER: Previous open pit and shaft mines, with extensive data now collated CONSOLIDATED LANDHOLDING: Provides scale for targeted exploration DRILLING PROGRAM: Three drill-ready targets: two gold and one nickel EXISTING INFRASTRUCTURE: Close to gold mills, highway, rail, gas pipeline and town centre 6

7 HISTORIC WA GOLD CENTRE CONSOLIDATION PROVIDES NEW OPPORTUNITIES IN AN AREA WITH RECOGNISED ENDOWMENT East Menzies in production as recently as the late 1990s More than 444 old mine shafts operated across the project at shallow depth Recent production highlights: Granny Venn & Auntie Nellie produced g/t Au Goodenough produced g/t Au Extensive historical database over tenement package now compiled Potential to join historic open pits Figure 1. Anomalous gold in MMI soils (red line) and past drilling over Google Earth Image indicate potential 7 between existing pits

8 EAST MENZIES CONSOLIDATED FOR THE FIRST TIME Consolidation provides scale for targeted exploration N Total holdings of 154km 2 consisting of: 66 prospecting licences 2 mining leases 1 exploration licence Numerous integrated anomalies identified: Over 444 old mine shafts 229 identified conductors 20 identified priority conductors 3 drill-ready targets Massive sulphide potential - indicated by electromagnetic surveys and field exploration Figure 2. East Menzies consolidated tenement package 8

9 EAST MENZIES NUMEROUS OPPORTUNITIES SIGNIFICANT POTENTIAL FROM 229 IDENTIFIED CONDUCTORS Electromagnetic survey identified 229 conductors 20 priority conductors modelled and cross referenced with existing datasets Continuing to cross reference all identified anomalies with existing datasets to identify most prospective targets Modelled conductors range from 370 metres to 1,530 metres in length Figure 3. East Menzies EMGP HeliTEM Ch24 showing anomalous 9 points

10 EAST MENZIES 2013 FIELDWORK FIELDWORK HIGHLIGHTS BROADER GOLD POTENTIAL Shaft spoil sampling programme undertaken during mid old mine shafts identified and sampled over 11 km of strike Targeting anomalies underlying old mine shafts Gold assays up to 274 g/t in shaft spoil samples Provides vector to areas of high grade veins with broader wall rock mineralisation Figure 4. East Menzies shaft spoil sampling results over geology 10

11 EAST MENZIES DRILL-READY TARGETS Three targets, two gold and one nickel: Gold: Goodenough and Four O Clock Nickel Sulphide: Emu Gold and massive sulphide potential Initial analysis completed of extensive historical data set 1,200m RC drilling programme Q4 CY 2013 Four O Clock Gold target Goodenough Tribute Shoot Gold target EMU Nickel Target Figure 5. East Menzies Project EMGP HeliTEM Ch24 showing priority targets 11

12 EAST MENZIES GOODENOUGH TARGET 1 Testing high grade gold shoot model Drilling to confirm high grade extension 50 metres south of Tribute Mine area Target supported by 16.63g/t Au bonanza intercept reported June 2013 Past vertical drilling poorly orientated to intersect shallow south plunging shoots Success opens up significant potential with multiple high grade targets within the broader Goodenough ore body Figure 6. Tribute shaft and previous Goodenough drilling 12

13 EAST MENZIES GOODENOUGH Figure 7. Goodenough Tribute shoot target planned and past drilling Figure 8. Goodenough prospect planned drill holes cross section 13

14 EAST MENZIES FOUR O CLOCK TARGET metres south west of historic Goodenough mine Area with 160 metre strike line of historic underground mine workings Extensive electromagnetic conductor identified from recent HELITEM survey Analysis of Goodenough data suggests potential for an extensive structurally controlled high grade shoot Figure 9. Four O Clock Prospect HeliTEM Results 14

15 EAST MENZIES FOUR O CLOCK Figure 10. Four O Clock Prospect Planned drill holes Figure 11. Four O Clock Prospect Planned drill holes cross-section 15

16 EAST MENZIES EMU TARGET 3 Drill-ready nickel sulphide target Identified through cross referencing electromagnetic survey with historic data and recent fieldwork results Consistent with previous CRA nickel exploration: Drill results of 1.5% Ni from 17m and 0.77% Ni from 52m Assayed rock chips of up to 1.47% Ni and 0.12% Co Past drilling interpreted to have intersected remobilised disseminated nickel Within larger 10km nickel prospect trend Figure 12. East Menzies nickel soil sampling & drill hole results (South) 16

17 EAST MENZIES EMU Figure 13. HELITEM section showing projected model plates Figure 14. Emu prospect planned drill program Figure 15. Emu prospect planned drill holes cross section 17

18 EAST MENZIES EXISTING INFRASTRUCTURE INFRASTRUCTURE MAY ASSIST STRATEGY OF REALISING EARLY CASHFLOW Ideally positioned to access existing infrastructure in the Kalgoorlie, Leonora and Laverton region including highway, road, rail and gas pipeline Close to a number of existing gold mills seeking high grade feed Figure 16. East Menzies existing road access Figure 17. Proximity to Norton Goldfields Paddington Mill 18

19 UPCOMING MILESTONES IMMINENT NEWS FLOW FROM DRILLING PROGRAM Q Q Q Q Identified three priority targets; Emu, Goodenough, Four O Clock 1,200m RC drilling programme Continue dataset cross referencing and target prioritisation Review assay results from first pass drilling programme Plan additional drilling Ongoing exploration including; Follow up drilling, soil geochemistry across priority targets Plan fieldwork on additional targets 19

20 NEW OPPORTUNITY IN AN HISTORIC GOLDFIELD Meaningful scale for exploration achieved for the first time 100% project interest 1 Imminent news flow from upcoming drilling programme Significant growth potential from 229 identified conductors Low cost structure allows for increased exploration spend more dollars spent on the ground Pursuing early stage value creation strategy Board and management team with a proven track record 1 Includes joint owned Riqo Pty Ltd tenements which SXT currently holds an 80% interest, however current drill targets are contained within 100% owned SXT tenements 20

21 CONTACT Martin Holland Managing Director STRATUM METALS LIMITED Address: 7/151 Macquarie Street, Sydney NSW Australia 2000 Ph Mob info@stratummetals.com.au To actually consolidate that whole structure and to have a global view of the entire structure and to be able to explore it as one, rather than as small individual leases, could potentially provide us with the opportunity to find a mini Super Pit. Dr Dennis Gee, Independent Geologist 21

22 APPENDIX ONE OTHER ASSETS CONSIDERING OPTIONS TO MONETISE INTERESTS IN OTHER ASSETS Gidgee Gold Project 35 RC holes totalling 4,780m drilled in 3 programs Mineralisation encountered over 270m of strike with intercepts near surface and to depths of 140m defined Mineralisation remains open along strike and down dip Currently considering options with regards to advancement of the project Canning Basin Coal Project Pinyalling Project Bannockburn Project Laverton Project 22