SA Exploration and Mining Conference. Monax Exploration Update. Targeting the next large copper deposit on the Gawler Craton.

Transcription

1 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

2 Monax Mining Project Overview Antofagasta Focus on copper in S.A. Monax Mining Focus on copper and graphite on the Gawler Craton Monax Antofagasta Alliance project generation Monax JV projects Monax earning in projects Monax projects Designated Projects Algebuckina (AMSA 51% Monax 49%) Punt Hill (Antofagasta) Reedy Lagoon (FMG) Waddikee WGC Millers Creek Phar Lap Potential project pathway Kangaroo Island Musgraves Webling Bay Red = copper Black = graphite Blue = nickel/copper

3 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

4 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 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

5 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.

6 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 & 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.

7 Who is Antofagasta? LUKSIC GROUP 65% FREE FLOAT 35% o FTSE 100 since March 2004 o Market capitalisation (31 Oct 2013): US$14.0bn TRANSPORT FCAB (Chile) FCA (Bolivia) Combined rail and road tonnages of approx. 7.7 million tonnes (2) per year MINING Operating assets (Chile) Los Pelambres Esperanza El Tesoro Michilla o 700,000 tonnes (1) of copper in concentrate and cathodes o 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 WATER Aguas de Antofagasta (Chile) Approx. 51 million m 3 (2) sold per year (2) 2012 full year values

8 Antofagasta plc AM Exploration Offices Strategic Alliance Joint Venture Earn-in (numbers indicate Alliance Designated Projects) Source: A Wilson, Antofagasta

9 Copper in South Australia Source: DMITRE presentation

10 Punt Hill Alteration & mineralisation Prairie Dog Prospect PDDD2 0.24% Cu m Groundhog Prospect GHDD1 0.4% Cu m (including 0.7% Cu & 1% Cu) GHDD2 0.34% Cu m (including 0.7% Cu) GHDD3 0.22% Cu m large area of skarn alteration and copper mineralisation GHDD4 0.47% Cu, 0.1g/t Au, 6.6g/t Ag, 0.38% Zn m (including 0.96% Cu) GHDD6 0.47% Cu, 0.12g/t Au, 5.3g/t Ag, 0.48% Zn m (including 1.1% Cu) Woodchuck Prospect WDDD1 0.41% Cu m (including 0.82% Cu, 10g/t Ag) Whistlepig Prospect WPDD1 0.13% Cu m GHDD1 WDDD1 PDDD2 Note: all intersections reported are downhole lengths, but due to flat lying nature of sediments interpreted to represent true widths

11 Punt Hill Current position Geophysical/geological review has highlighted additional drilling targets. Khamsin Carrapateena 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. New Targets Image: Bouguer Gravity residual

12 Punt Hill Bottle Hill Target Bottle Hill: 3D Gravity inversion iso-surfaces Looking North East Bottle Hill: 3D Gravity inversion iso-surfaces Looking East BHDD01 DTB: 546.9m Foliated granite, pegmatite & dolerite Remodeling suggests anomaly inadequately tested Khamsin Khamsin: 3D Gravity inversion iso-surfaces Looking East

13 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 SASC2 & lateral zonation at Groundhog (Diana-Sophie Nikolakopoulis) Garnet growth zonation Wittichenite (Cu 3 BiS 3 ) inclusions in chalcocite & bornite Al Ca Fe Yb 3D predictive basement alteration mineralogy model: K-Feld(purple), sericite(red), chlorite(dark green), pyroxene(light green), geothite(yellow), hematite(brown)

14 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 areas 1. Musgrave Province three new Applications. 2. Kangaroo Island tenement recently granted.

15 Monax Antofagasta Strategic Alliance Alliance Phase Funded 100% by Antofagasta Project generation & evaluation Designated Project Phase Funded 100% by AMSA US$4 million over three years Joint Venture Phase Monax retains right to fund 30% of expenditure or dilute Alliance Projects AMSA AMSA AMSA 70% 51% 51% MOX MOX 49% 30% 49% AMSA 70% MOX 30% Monax Alliance If AMSA withdraws interest, opportunity reverts to MOX 100% Example scenarios % project equity (i.e. Millers Creek DP) 3 rd Party Projects % project equity Monax Antofagasta (AMSA) % project equity Third Party Monax Free Carried MOX 30% and receives success fee of $US3M upon $US4M expenditure by AMSA

16 Gawler Craton State of Play IOCG Province 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. Monax BHP Oz Minerals FMG Tasman/Rio Glencore (Xstrata)/Gunson

17 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 underexplored part of the Gawler Craton. Monax tenements (includes Monax Alliance tenements and 3 rd party tenements i.e. Maximus & FMG)

18 Summary 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 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.

19 Disclaimer Forward Looking Statements The following presentation includes forward looking statements. Forward looking statements inherently involve subjective judgement and analysis and are subject to significant uncertainties, risks and contingencies, many of which are outside of the control of, and may 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, political uncertainty, changes to the regulatory framework which applies to the business of the Company and general economic conditions. 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 applicable law or any relevant stock exchange listing rules, the Company does not undertake any obligation to publicly update or revise any of the forward looking statements or any change in events, conditions or circumstances on which any such statement is based. Competent Person Statement The information in this presentation that relates to Exploration Results is based on information compiled by Mr G M Ferris, who is a Member of the Australasian Institute of Mining and Metallurgy. Mr Ferris is employed full time by the Company as Managing Director and, has a minimum of five years relevant experience in the style of mineralisation and type of deposit under consideration; and qualifies 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 in which it appears. Information in this presentation that relates to Mineral Resources was compiled by Ms Sharron Sylvester, who is a Member of the Australian Institute of Geoscientists (RPGeo 10125). Ms Sylvester is a full-time employee of AMC Consultants Pty Ltd and has sufficient experience relevant to the styles of mineralisation and to the activities which are being reported to qualify as a Competent Person as defined by the JORC Code, 2012 and consents to the release of the information compiled in this report in the form and context in which it appears.

20 Thank You Gary Ferris Managing Director P (08) M E: gferris@monaxmining.com.au