For personal use only - Australian Securities · PDF file9 FYRE LAKE PROJECT – KONA...

SHAREHOLDER MEETING

11 MAY 2015

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> SHORT TERM SHARE PRICE BREAK OUT

THROUGH DRILL TESTING CYCLOPS

TARGET ON THE COOBER PEDY

PROJECT

> BUILD PORTFOLIO OF QUALITY HIGH

GRADE COPPER ASSETS IN THE YUKON

TERRITORY, CANADA

> CAPTURE VALUE FROM THE YUKON VMS

PORTFOLIO

> BUILD LONGER TERM VALUE THROUGH

DEVELOPMENT OF THE MARG PROJECT

> INCREASE SHARE PRICE TO >10C/SHARE

IN THE SHORT TERM

> DELIVER >500% RETURNS TO

SHAREHOLDERS

OBJECTIVES & STRATEGY

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COOBER PEDY PROJECT – LOCATION

303Mt @ 1% Cu & 0.71g/t Au

> 1,165km2 in the world’s premier IOCG Province

> Gawler Craton Hosts world-class IOCG deposits

Olympic Dam – 4.48Bt @ 0.82% Cu, 0.25kg/t

U3O8, 2g/t Au

Prominent Hill – 303Mt @ 1% Cu, 0.71g/t Au

Carapateena – 800Mt @ 0.8% Cu, 0.3g/t Au

> Joint Venture Terms

$4M expenditure by July 2018, will earn

MinQuest 100%, Teck retain 2% NSR

Teck can claw-back to 65% interest by paying

MinQuest $10M or sole funding $20M in

expenditure

11.4Mt @ 0.4% Cu, 49.5% Fe, 0.71g/t Au

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COOBER PEDY PROJECT – AEROMAGNETIC DATA

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CYCLOPS TARGET – COOBER PEDY PROJECT

KEY POINTS

> Emplaced at the time of Hiltaba Event, responsible

for the formation of Olympic Dam, Carapateena

and Prominent Hill

> NW-NNW structural controls present known to be

linked to IOCG deposit on the Gawler Craton

> Cyclops Target is similar in size to the Prominent

Hill Cu-Au deposit

> Magnetic and gravity anomalies consistent with a

copper-gold mineralised body of size 800m x

250m, starting at a depth of circa 100m

> Coincident gold geochemical anomaly

> Drill testing programme commencing TMI-RTP-1VD mgnetic image F

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CYCLOPS TARGET – DRILL PROGRAM TO REACH KDP

DRILL PROGRAM

> 2-3 hole, 1400m drill program for a cost of

$400,000

> Test gravity and magnetic feature; drilling

programme commenced

OBJECTIVE

> >100metres of >1% Cu + Au, demonstrating

Prominent Hill size and grade deposit

Drill program to commence in mid May

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KEY ELEMENTS

YUKON TERRITORY VMS PROJECT STRATEGY

> Multi-commodity high-grade VMS deposits; often occur in clusters

> Last major discoveries made in the mid 1990’s; little work since until now

> Recent transactions of $35-80M; demonstrate value creation potential

> Focus on

– Copper rich mineral resources

– Resources with potential to double existing mineral resources

– Value creation through resource extension and new discoveries

– Short term value capture through project sales

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FINLAYSON LAKE VMS CLUSTER

KEY POINTS

> 700,000tpa processing facility at Wolverine Mine,

on care and maintenance and is for sale

> BMC recently purchased Kudz Ze Kayah from

Teck for +$35M

> All weather road to within 20km, winter road to

within 10km

> Skagway Port 600km

> Yukon Government actively encouraging mining

> First Nations Groups are pro-mining

13.0 Mt @ 5.2% CuEq

4.51 Mt @ 12.04% Zn, 1.15% Cu, 1.57% Pb, 1.68 g/t Au

12.6 Mt @ 2.2% CuEq For

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FYRE LAKE PROJECT – KONA MINERAL RESOURCE

12.6 Mt @ 1.6% Cu, 0.1% Co,

0.6g/t Au, 2.2% CuEq

KEY POINTS

> Kona Mineral Resource increased from 8.9Mt to

12.6Mt while maintaining metal grades (40%)

> Objective to increase Kona Mineral Resource to

>17Mt

> 70% of required Mineral Resource for stand alone

project already defined

> Terms of Farm-In Joint Venture

$500,000 minimum expenditure (met)

By July 2017 spend $3.5M to earn 51%

By July 2018 spend $6.5M (total) to earn 70%

Fund Feasibility Study to earn 80%

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FYRE LAKE – PROGRAM TO INCREASE KONA MINERAL RESOURCE

KEY POINTS

> Magnetic and EM anomalies continue for 1km to

the NW past northern limit of the Kona mineral

Resource

> Targets exist East and West of Kona Mineral

Resource in addition to the strike extension

> Drilling has intersected copper mineralisation south

of the Kona Mineral Resource, not yet included in

Resource Model

NW Extension Target

Western Targets

Eastern Targets

KONA EAST

KONA WEST

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KONA DEPOSIT – RESOURCE EXTENSION POTENTIAL

Drill testing of the northern extension of the Kona Mineral resource to be undertaken in July-Aug 2015

10Mt size potential

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MARG PROJECT – LOCATION

KEY POINTS

> High grade Mineral Resource: 11.7Mt @ 3.8% CuEq

> Grid Power (138 Kva) 35 km from Marg Project

> Access to the project via a winter road

> Marg Mineral Resource is open at depth

> Multiple exploration targets exist

> Mineral resource is high quality with 34% of resource

being JORC Indicated

> Terms of Farm-In Joint Venture

$500,000 minimum expenditure March 2016)

March 2017 spend $2.4M to earn 25%



0 5 10 km

UTM Projection. Zone 8. NAD83 Datum.

Mayo Lake

Tiny Island Lake

McQuestenLake

Elsa Keno

TRAIL

Keno

Ladue

River

Beav

er

River

LA

DU

E

RA

NGE

G U S T A V U S R A N G E

P A T T E R S O N

R A N G E

D A V I D S O N

R A N G E

BellekenoSilver Mine

Duncan

Creek

SILVE

R

RoopLakes

Roop

Creek

JANE ZONE

LEYLA SHOWING

MARG VMS DEPOSIT

MOUNT PATTERSONMOUNT CAMERON

MOUNT WESTMAN

MOUNT ALBERT

Camp & Airstrip

480000

480000

500000

500000

520000

520000

540000

540000

7080000 7080000

7100000 7100000

Drawn: RRM

Checked: C. Doornbos

Date: 25.02.2015 Revision:

Drawing No.: MARG-002.mxdFigure 2

MARG PROJECT - YUKON, CANADA

ACCESS MAPTown or settlement

River or creek

Lake

Category A/B Land - NND

Quartz Claim

Highway

Minor road

Winter roadTopographic form lines are shown

at 500’ intervals.

0 5 10 15 20 km


5.165 Mt @ 302 g/t Ag, 1.4% Pb,3.8% Zn, 50.213 Moz Ag (indicated)0.836 Mt @ 350 g/t Ag, 2.0% Pb,4.9% Zn, 9.403 Moz Ag (inferred)

MARG

Janet Lake

Mayo Lake

Tiny Island Lake

Dawson C

ity 22

5 km

Whiteh

orse

400

km

11.74 Mt @ 1.27% Cu, 3.23% Zn,1.55% Pb, 0.61 g/t Au, 39.78 g/t Ag

McQuestenLake

McQuesten

Sou th

River

WilliamsonLake

ElsaKeno

Mayo

SIL

VER

TRAIL

EdwardsLake

STEWART

RIV

ER

Keno

Ladue

River

Beaver

Ri ver

LA

DU

E

RA

NG

E

G U S T A V U S R A N G E

N E L S O N R I D G E

P A T T E R S O N

R A N G E

D A V I D S O N

R A N G E

BellekenoSilver Mine

460000

460000

480000

480000

500000

500000

520000

520000

540000

540000

7060000 7060000

7080000 7080000

7100000 7100000

Drawn: RRM




MARG PROJECT - YUKON, CANADA

REGIONAL LOCATION MAP

YUKON

U.S.A.(Alaska)

C A N A D A

MARGPROJECT

Inuvuk

Nome

Calgary

Edmonton

Fairbanks

Anchorage

Vancouver

Whitehorse

Prince Rupert

160 W 140 W 120 W50 N

60 N

70 N

1,000 km

LOCALITY MAP

Town or settlement

River or creek

Lake

Highway

Minor road

Winter road

Grid Power – 138 Kva

MARG VMS DEPOSIT

11.7Mt @ 1.4% Cu, 1.7% Pb,

3.6% Zn, 44.5g/t Ag and 0.7g/t

Au (3.8% CuEq)

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KEY POINTS

> Outcropping high-grade deposit

> First drilled in 1988, last drilled in 2008

> 33,800m of drilling in 113 holes

> 35% of Mineral Resource in JORC Indicated

Category

> Stand alone mining and processing operation

MARG PROJECT – HIGH-GRADE COPPER VMS DEPOSIT

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MARG PROJECT – GEOLOGY

0 100 200 300 m

DMv

DMpsMq

HANGING

WALL

FAULT

FOO

TW

ALL

FAU

LT

Mq

DMps

Mq

Mq

88-14

88-2888-2

1

96-49

96-5

0

96-48

89-35

96-5

1

89-3

4

88

-30

A

D1

CB4

A2 A1

B3

B5

7098000N 7098200N 7098400N

1500m

1400m

1300m

1200m

1100m

1000m

900m

NORTHSOUTH

OPEN

Drawn: RRM




MARG VMS DEPOSIT - YUKON, CANADA

CROSS-SECTION 525900E

Massive sulphide horizon

Diamond drill hole and trace

Geological contact, inferred

Fault, inferred

Mq

DMps

DMvEarn GroupFelsic metavolcanic rocks

Earn GroupArgillaceous metasedimentary rocks

Keno Hill QuartziteQuartzite and graphitic phyllite

DEVONIAN TO MISSISSIPPIAN

MISSISSIPPIAN

from Carne & Giroux, 2007

HoleWidth

m

Cu

%

Zn

%

Ag

g/t

Au

g/tHorizon

88-28 1.90 2.26 5.62 83.0 0.85 D1

88-21 1.59 1.16 2.70 44.2 0.44 D1b

3.35 2.56 5.25 156.2 1.17 D1a

2.50 1.46 4.10 61.0 0.75 C

5.05 1.50 4.84 67.5 1.06 B5

3.60 0.75 2.02 32.9 0.21 B3

88-30A 3.55 1.05 5.21 58.3 0.92 D1

1.70 0.89 2.74 40.8 0.58 B5

4.91 0.57 1.84 27.4 0.34 B4

1.85 1.25 3.91 47.3 0.72 B3

89-34 3.36 1.34 3.99 47.3 0.58 D1

96-48 8.60 1.96 5.53 76.2 1.02 D1

1.22 0.62 2.10 39.5 0.27 C

4.30 1.10 3.54 68.8 1.22 A2

96-49 4.83 1.88 3.90 46.5 0.69 D1

5.71 1.51 4.87 70.1 0.75 C

0.55 1.65 4.82 63.1 0.62 B5

1.29 1.63 4.32 56.7 0.79 B3

96-50 3.43 2.33 3.22 43.0 0.83 D1

6.96 0.79 2.27 40.1 0.58 B5

1.86 0.87 2.23 43.5 0.34 B3

3.73 1.17 3.88 63.3 0.55 A2

1.75 0.73 3.08 54.5 0.69 A1

96-51 5.80 1.58 4.58 49.0 0.31 D1

0 100 200 m


FO OTWALL

FA ULT

HANG ING W ALL

FAULT

DMv

DMps

DMv

DMps

DMps

Td

Mq

Mq

Mq

Mq

CR

OS

S-S

EC

TIO

N5

25

90

0E

OPEN

OPEN(at depth)

525000

525000

525500

525500

526000

526000

7098000 7098000

7098500 7098500

Drawn: RRM




MARG VMS DEPOSIT - YUKON, CANADA

GEOLOGY MAPMassive sulphide horizon (at surface)

Massive sulphide horizon (at depth)

Diamond drill hole and trace

Geological contact, accurate

Geological contact, inferred

Fault, accurate

Fault, inferred

Td

Mq

DMps

DMvEarn GroupFelsic metavolcanic rocks

Earn GroupArgillaceous metasedimentary rocks

Keno Hill QuartziteQuartzite and graphitic phyllite

Gabbro, dolerite

DEVONIAN TO MISSISSIPPIAN

MISSISSIPPIAN

TRIASSIC

from Redtail Metals Corp., 2013

Deposit is open along strike and at depth

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MARG PROJECT PLAN

CURRENT MINERAL RESOURCE IS A

HIGH QUALITY RESOURCE

POTENTIAL TO FURTHER ENHANCE

PROJECT THROUGH GROWTH OF

MINREAL DEPOSIT

EXPLORATION TARGETS TO BE

FURHTER TESTED COULD LEAD TO

NEW DEPOSITS

2015

> Conduct metallurgical test work program

> Test exploration targets

> Revised Scoping Study Mineral Resource, Mining Inventory and Project NPV

> Key Decision Point regarding commencement of BFS

2016-2017

> Complete BFS, permit project

2018

> Construct processing plant

2019

> Commence production

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OVERALL STRATEGIC PLAN

COOBER PEDY PROJECT

> 2-3 hole drill test of the Cyclops

target

> Re-rating of share price and

increased liquidity

MARG PROJECT

> Complete metallurgical test work

and update Scoping Study (2015)

> Complete BFS (2016)

> Put into production as a stand

alone operation

FYRE LAKE PROJECT

> Drill program to increase mineral

resource to >17Mt

> Demonstrate economics of stand

alone project

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COPPER PROJECT VALUES TO RE-RATE

COPPER PRICE

> Current copper price US$2.90/lb

> 20% increase over mid January low

> Inventories are flat to decreasing

PROJECT VALUATIONS

> Prime Corporate Finance estimate contained copper value is

US$41/t for Exploration Companies for last 12 months

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PEER COMPARISON

GRADE AND SIZE OF MINQUEST’S

COPPER RESOURCES SETS IT

APART FROM ITS PEERS

PEER MARKET CAPITALISATIONS

ARE ALL IN EXCESS OF $8M

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This Mineral Resource estimate is based upon and accurately reflects data compiled or supervised by Mr John Horton, Principal Geologist, who is a Fellow of the Australasian Institute

of Mining and Metallurgy, a Member of the Australian Institute of Geoscientists and contracted to IMC Mining Pty Ltd. Mr Horton has sufficient experience that is relevant to the style of

mineralisation and the type of deposit under consideration and to the activity which he has undertaken to qualify as a Competent Person as defined in the 2012 edition of the

‘Australasian Code for the Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Horton consents to the inclusion in the report of the matters based on his

information in the form and context in which it appears.

The information in this presentation that relates to exploration results is based upon information reviewed by Mr Jeremy Read BSc (Hons) who is a Member of the Australasian Institute

of Mining and Metallurgy. Mr Read is a full time employee of MinQuest Limited and has sufficient experience which is relevant to the style of mineralisation and type of deposit under

consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration

Results, Mineral Resources and Ore Reserves”. Mr Read consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. Mr

Read is the Managing Director of MinQuest and currently owns 2,525,253 Fully Paid Ordinary Shares and has the entitlement to a further 2,525,253 deferred consideration shares

subject to relevant milestone events being achieved.

The information in this presentation relating to the 2006 Mineral Resource estimate for the Kona Deposit is extracted from the ASX Release entitled “Kona Mineral Resource Update

Announcement” announced on 23 January 2015 and is available to view on the ASX website (ASX:MNQ), and the Company's website. The Company confirms that it is not aware of

any new information or data that materially affects the information included in the original market announcement and, that all material assumptions and technical parameters

underpinning the resource estimates in the relevant market announcement continue to apply and have not materially changed. The Company confirms that the form and context in

which the Competent Person’s findings are presented have not been materially modified from the original market announcement.

COMPETENT PERSONS STATEMENT

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This presentation contains “forward-looking statements”. Such forward-looking statements include, without limitation: estimates of future earnings, the sensitivity of earnings to

commodity prices and foreign exchange rate movements; estimates of future production and sales; estimates of future cash flows, the sensitivity of cash flows to commodity prices and

foreign exchange rate movements; statements regarding future debt repayments; estimates of future capital expenditures; estimates of resources and statements regarding future

exploration results; and where the Company expresses or implies an expectation or belief as to future events or results, such expectation or belief is expressed in good faith and

believed to have a reasonable basis. However, forward looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially

from future results expressed, projected or implied by such forward-looking statements. Such risks include, but are not limited to commodity price volatility, currency fluctuations,

increased production costs and variances in resource or reserve rates from those assumed in the company’s plans, as well as political and operational risks in the countries and states

in which we operate or sell product to, and governmental regulation and judicial outcomes. For a more detailed discussion of such risks and other factors, see the Company’s Annual

Reports, as well as the Company’s other filings. The Company does not undertake any obligation to release publicly any revisions to any “forward looking statement” to reflect events

or circumstances after the date of this release, or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws.

FORWARD LOOKING STATEMENTS

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For personal use only - Australian Securities · PDF file9 FYRE LAKE PROJECT – KONA...

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