DRIVING GROWTH THROUGH EXPLORATION
Transcript of DRIVING GROWTH THROUGH EXPLORATION
DRIVING GROWTH THROUGH EXPLORATIONDRIVING GROWTH THROUGH EXPLORATION
ASX Small to Mid Caps ConferenceASX Small to Mid Caps ConferenceNew York and London, March 2011New York and London, March 2011
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Northern Division: Production capacity approximately 5-8K tonnes nickel in ore pa
Southern Division: Production capacity approximately 8-10K tonnes nickel in ore pa
June ‘10 Nickel Inventory:- Resource: 4.05 mt @ 3.7% Ni
= 150,700 tonnes Ni- Reserve: 1.75 mt @ 2.9% Ni
= 50,200 tonnes Ni
MINCOR IN KAMBALDAMINCOR IN KAMBALDA
THE KAMBALDA THE KAMBALDA NICKEL DISTRICTNICKEL DISTRICT
• One of the great Nickel Districts of the World• Core component of WA’s mining industry
since 1966• Total production to date: 1,455,000 tonnes
Nickel in Ore• Gross value at today’s prices: > $33 billion
Lunnon Shaft, 1966From: Kambalda, History of a Mining TownJJ Gresham
THE KAMBALDA NICKEL DISTRICTTHE KAMBALDA NICKEL DISTRICT
• Four giant nickel deposits known to date• Including the three biggest high-grade nickel sulphide ore bodies in
Australia• Perhaps fifty other individual ore bodies mined to date
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Mincor’s exploration targeted at this population of ore bodies
KAMBALDA DOME KAMBALDA DOME –– UNRIVALLED ENDOWMENTUNRIVALLED ENDOWMENT
Host to four of the six biggest high-grade nickel sulphide ore bodies in Australia. Two-thirds of Mincor’s Kambalda Dome holdings have not been effectively drilled.
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KAMBALDA DOME KAMBALDA DOME –– UNRIVALLED ENDOWMENTUNRIVALLED ENDOWMENT
Host to four of the six biggest high-grade nickel sulphide ore bodies in Australia. Two-thirds of Mincor’s Kambalda Dome holdings have not been effectively drilled.
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3.7m @ 9.12% Ni
THE MIITEL THE MIITEL ORE SYSTEMORE SYSTEM
Total production since 2001 – 55,000 tonnes NickelCurrent Reserves – 16,400 tonnes NickelActive exploration extending resources to north and south
Total endowment to date: 91,000 tonnes Nickel (mined and un-mined Resources)New discoveries underway to North and South
NEW POTENTIAL NEW POTENTIAL IDENTIFIED AT MIITELIDENTIFIED AT MIITEL
4.8 km mined and/or drilled strike length91,000 tonnes of nickel in mined and unmined resources4 km untested potential strike length
• Opportunity to drill-test Miitel Contact from Mariners underground workings• Success would double the size of Miitel, and provide rapid access to the new ore body from Mariners
Drill-tested to date
?
MARINERS MARINERS EMERGING DISCOVERIESEMERGING DISCOVERIES
N11 Emerging Discovery
N10 Discovery
2004/5 Commence productionfrom N07 and N08 ore bodies
2007 Discovery of N09 Ore Body
2009 Discovery of high-grade N10 ore body:
Resource: 15,800t NiReserve: 299Kt @ 3.5% Ni
2010 Discovery of potential “N11” ore body.
2011 (so far) Discovery of high-grade “Terrace” position:
4.70m @ 7.58% Ni2.56m @ 7.29% Ni1.50m @ 9.71% Ni
2004/5 Commence productionfrom N07 and N08 ore bodies
2007 Discovery of N09 Ore Body
2009 Discovery of high-grade N10 ore body:
Resource: 15,800t NiReserve: 299Kt @ 3.5% Ni
2010 Discovery of potential “N11” ore body.
2011 (so far) Discovery of high-grade “Terrace” position:
4.70m @ 7.58% Ni2.56m @ 7.29% Ni1.50m @ 9.71% Ni
Terrace Zone
N09 Ore Body
TOTTENHAM TOTTENHAM COPPERCOPPER
Major copper district: Girilambone Beds of the Lachlan Fold Belt of NSW
Emerging potential for discovery of high-grade VMS copper-gold deposit;
TMD2 intersected: 2 metres @ 11.17% copper and 2.77 g/t gold
This intersection in 1 of 8 high-priority EM targets;
Drilling underway now;Existing copper oxide resource.
Major copper district: Girilambone Beds of the Lachlan Fold Belt of NSW
Emerging potential for discovery of high-grade VMS copper-gold deposit;
TMD2 intersected: 2 metres @ 11.17% copper and 2.77 g/t gold
This intersection in 1 of 8 high-priority EM targets;
Drilling underway now;Existing copper oxide resource.
TOTTENHAMTOTTENHAM
Carolina ProspectDrill intersection: 2m @
11.17% copper & 2.77g/t gold
Strong DHEM anomaly due north
High-grade gossan due south
Down-dip of existing oxide copper resource
Drilling underway now
Carolina ProspectDrill intersection: 2m @
11.17% copper & 2.77g/t gold
Strong DHEM anomaly due north
High-grade gossan due south
Down-dip of existing oxide copper resource
Drilling underway now
TOTTENHAM: TOTTENHAM: CAROLINA CROSS SECTIONCAROLINA CROSS SECTION
50 metres
Photo donated by Faye Dobson. Published in “Unearthed – the story of copper mining in Tottenham and Albert, NSW” by K. Berryman and others, Tottenham Historical Society.
Carolina Mine ca 1900
COMPETENT PERSONCOMPETENT PERSON’’S S STATEMENT (1) STATEMENT (1)
Tabulation of Nickel Mineral Resources as of 30 June 2010:
Note that Resources are inclusive of Reserves.Figures have been rounded and hence may not add up exactly to the given totals.* Resources shown for Carnilya Hill are those attributable to Mincor – that is, 70% of the total Carnilya Hill Resource.** Otter Juan includes Coronet and McCloy
The information in this Public Report that relates to Mineral Resources is based on information compiled by Mr Robert Hartley, who is a Member of The Australasian Institute of Mining and Metallurgy. Mr Hartley is a permanent employee of Mincor Resources NL. Mr Hartley has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity that he is undertaking 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 Hartley consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
Resources are estimated to a 1% nickel cut-off. No minimum mining width criteria are used. The Resource estimation is done using inverse distance or kriging methods, depending on the data density. Volume models are constructed using all available data including underground drives and stope mapping. Grade interpolation using assay results from diamond drill core and, in places, underground face samples.
RESOURCEMEASURED INDICATED INFERRED TOTAL
Tonnes Ni (%) Tonnes Ni (%) Tonnes Ni (%) Tonnes Ni (%) Ni Tonnes
Mariners 100,000 3.5 542,000 4.2 62,000 3.3 704,000 4.0 28,500
Redross 31,000 5.1 138,000 2.9 67,000 2.9 236,000 3.2 7,500
Burnett 250,000 3.7 250,000 3.7 9,400
Miitel 51,000 4.0 550,000 3.9 98,000 3.6 699,000 3.8 26,800
Wannaway 123,000 2.6 16,000 6.6 139,000 3.0 4,200
Carnilya Hill* 48,000 5.0 99,000 3.5 147,000 4.0 5,900
Otter Juan** 113,000 4.3 289,000 3.0 83,000 2.4 485,000 3.2 15,500
McMahon/Ken 249,000 2.9 79,000 6.2 328,000 3.7 12,200
Durkin 251,000 5.2 127,000 5.0 378,000 5.1 19,400
Gellatly 29,000 3.4 29,000 3.4 1,000
Stockwell 557,000 3.1 557,000 3.1 17,100
Cameron 96,000 3.3 96,000 3.3 3,200
Grand Total 343,000 4.2 2,923,000 3.6 782,000 4.0 4,048,000 3.7 150,700
LOCATION INFERRED (Tonnes)
GRADE (Cu%)
INDICATED (Tonnes)
GRADE (Cu%)
Total Tonnes
Grade (Cu%)
Contained Metal (tonnes)
Mt Royal 1,500,900 1.0 869,800 1.2 2,370,700 1.1 26,078
Carolina 1,336,200 1.2 1,336,200 1.2 16,034
Total 1,500,900 1.0 2,206,000 1.2 3,707,000 1.1 41,850
Tabulation of Copper Mineral Resources (at a 0.25% copper cut off): Note on Tottenham Mineral Resource Estimate: Resources were estimated via ordinary kriging for copper and inverse distance for density. Sample composites were 1 metre down-hole and based on diamond drill core and reverse circulation chip samples. Total copper assays were available for all composites however density data was only available for the more recent Mincor samples. Geological modeling was aided by historical underground mine plans, however not all areas of historical stoping are well recorded, so depletion estimates, while reconcilable to recorded production, are not located accurately.
COMPETENT PERSONCOMPETENT PERSON’’S S STATEMENT (2) STATEMENT (2)
Tabulation and Categorisation of Ore Reserves Referred to in this report.
Ore Reserves as at 30 June 2010:
Figures have been rounded and hence may not add up exactly to the given totals.*Reserves for Carnilya Hill are those attributable to Mincor – that is, 70% of the total Carnilya Hill Reserve.**Otter Juan includes Coronet and McCloy.
The information in this Public Report that relates to Ore Reserves is based on information compiled by Mr Steve Cowle, who is a Member of The Australasian Institute of Mining and Metallurgy. Mr Cowle is a permanent employee of Mincor Resources NL. Mr Cowle has sufficient experience that
is relevant to the style of mineralisation and type of deposit under consideration and to the activity that he is undertaking 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 Cowle
consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
Appropriate dilution for the various mining methods was applied to the Indicated and Measured Resources. Using a 1.5% nickel cutoff and minimum mining width criteria, areas were selected as being mineable. Additional modifying factors to account for ore loss, recovery, further dilution, etc were then applied to achieve an estimated Reserve.
RESERVEPROVED PROBABLE TOTAL
Tonnes Ni (%) Tonnes Ni (%) Tonnes Ni (%) Ni TonnesMariners 77,000 2.4 447,000 3.2 524,000 3.1 16,300Redross 33,000 3.5 33,000 3.5 1,200Miitel 28,000 2.6 585,000 2.7 613,000 2.7 16,400Wannaway 39,000 2.9 39,000 2.9 1,100Carnilya Hill* 52,000 3.5 30,000 3.1 83,000 3.3 2,800Otter Juan** 109,000 3.6 104,000 2.9 212,000 3.2 6,900McMahon 242,000 2.3 242,000 2.3 5,600Grand Total 299,000 3.2 1,447,000 2.8 1,746,000 2.9 50,200