Sundance Resources — Sirius Resources NL — Diggers & Dealers 2014
26 slides from Sundance Resources's conference presentation, Aug 5, 2014
Slide 1: To Nova – and beyond
For personal use only To Nova – and beyond Mark Bennett, Managing Director & CEO Diggers & Dealers presentation, Kalgoorlie, 5th August 2014 www.siriusresources.com.au
Slide 2: Disclaimer and Competent Person statement
Disclaimer and Competent Person statement For personal use only This presentation is for information purposes only. Neither this presentation nor the information contained in it constitutes an offer, invitation, solicitation or recommendation in relation to the purchase or sale of shares in any juri
Slide 3: Key points – Nova Nickel Project
Key points – Nova Nickel Project 1. Completed Nova Definitive Feasibility Study (DFS) on time and within 2 years of discovery - DFS outcomes similar to / better than the scoping study For personal use only 2. Outstanding conversion of contained nickel metal from Indicated Mineral Resource to Probabl
Slide 4: From discovery to 100% ownership to Definitive Feasibility Study in less than 2 years
From discovery to 100% ownership to Definitive Feasibility Study in less than 2 years Milestone Date (actual/forecast) For personal use only Discovery July 2012 Maiden Resource May 2013 Scoping Study Sep 2013 Ongoing funding ($84m placement) Nov 2013 Sign deal for 100% ownership (Creasy deal) Feb 20
Slide 5: Sirius & Ngadju Mining Agreement signing
Sirius & Ngadju Mining Agreement signing For personal use only
Slide 6: Capital structure and metrics – exceptionally positioned
Capital structure and metrics – exceptionally positioned with cash and capacity to fund development & explore For personal use only Shares on issue 382.5 m (incl 70 million escrowed shares) DFS Bollinger completion Share options on issue 47.4 m discovery Scoping (Avg ex price ~A$1.38) study Native t
Slide 7: Management bandwidth - experienced and successful team
Management bandwidth - experienced and successful team to finance, build and operate Nova For personal use only Accountant, 40 years experience, ex-managing partner E&Y Perth, director Jeff Dowling of Atlas Iron, NRW, metropolitan redevelopment authority, financial (Non-executive Chairman) complianc
Slide 8: First mover with an extensive ground position covering key targets in a new belt
First mover with an extensive ground position covering key targets in a new belt For personal use only www.siriusresources.com.au
Slide 9: Key outcomes of Nova DFS - physicals
Key outcomes of Nova DFS - physicals • Maiden Probable Ore Reserve of 13.1mt @ 2.1% Ni, 0.9% Cu and 0.07% Co for 273kt Ni, 112kt Cu and 9kt Co represents a 93% conversion of Ni For personal use only metal from Indicated Mineral Resource, using US$7.44/lb nickel price • Life of mine plan of 14.2mt @
Slide 10: Underground mine design
Underground mine design For personal use only Photo on right is interior of the Met Life building in New York, measuring 20 x 20 x 45m high from viewpoint – smaller than each planned Nova stope measuring up to 25 x 25 x 70m high www.siriusresources.com.au
Slide 11: Key outcomes of Nova DFS - financials
Key outcomes of Nova DFS - financials • Low estimated average C1 cash cost of A$1.66/lb (US$1.50/lb) nickel in concentrate positions Sirius in lowest quartile of global nickel producers For personal use only • Very low estimated all-in sustaining cost of A$2.32/lb (US$2.09/lb) nickel in concentrate
Slide 12: Project location and infrastructure
Project location and infrastructure For personal use only • Mine, plant, TSF, village and airstrip all on 47 square kilometre mining lease application • Water sources on mining lease application • Sealed airstrip capable of taking 100 seat jets • 34 kilometre long sealed access road to ensure inboun
Slide 13: Nova Nickel Project - a globally significant nickel sulphide development
Nova Nickel Project - a globally significant nickel sulphide development with access to the world For personal use only Concentrate to be trucked by roadtrain 350 kilometres to either Kalgoorlie or Esperance Within easy reach of local and global customers Workforce from Perth (FIFO) and if possible
Slide 14: To Nova – and beyond
For personal use only To Nova – and beyond
Slide 15: Exploration – maintaining momentum and growth
Exploration – maintaining momentum and growth For personal use only Exploration will continue during the project financing, construction and development Four key focus areas: Infill and extensional drilling to define additional resources adjacent to the Nova and Bollinger deposits (from underg
Slide 16: Extensional exploration potential
Extensional exploration potential For personal use only Initial focus of extensional exploration will be to better delineate mineralisation to the north of Bollinger (pink area in figure) once underground drilling platforms are established www.siriusresources.com.au
Slide 17: Near mine exploration - new EM conductor (cont)
Near mine exploration - new EM conductor (cont) For personal use only First pass Samson deep-penetration EM (DPEM) has identified a large conductor to the north of, stratigraphically below, and down plunge of Nova Conductor is 600m long and 350m high, is verified in 2 Samson EM setups, in DHEM and c
Slide 18: Regional - first pass drilling at Crux & Centauri
Regional - first pass drilling at Crux & Centauri For personal use only First pass broad spaced reconnaissance drilling completed at Crux and Centauri Extensive blankets of Ni-Cu-Co enrichment identified (like Nova) Magmatic sulfides identified in subjacent fresh rock (like Nova) Deeper dril
Slide 19: First pass drilling – Crux & Centauri
First pass drilling – Crux & Centauri For personal use only Zone of Ni-Cu-Co enrichment similar to original holes drilled 400 metres above Nova’s position Magmatic Ni-Cu sulphides in mafic/ultramafic rocks below this – also similar to original holes drilled above Nova’s position Deeper drilling requ
Slide 20: New nickel discovery at Taipan prospect, Polar Bear
New nickel discovery at Taipan prospect, Polar Bear For personal use only High grade massive sulphides in first reconnaissance drillhole at Taipan prospect www.siriusresources.com.au
Slide 21: New nickel discovery at Taipan prospect, Polar Bear
New nickel discovery at Taipan prospect, Polar Bear For personal use only Disseminated sulphides in second reconnaissance drillhole over 1km north of Taipan discovery hole Follow up EM underway Reconnaissance drilling of contact started and ongoing for next 2-3 months www.siriusresources.com.au
Slide 22: …and gold too – Nanook & Bindy prospects
…and gold too – Nanook & Bindy prospects For personal use only An effectively unexplored 130 square kilometres of 100% Sirius ground surrounded by 25 million ounces of known gold endowment (Norseman, St Ives, Higginsville) Shallow reconnaissance drilling at Nanook gold prospect now partially tig
Slide 23: Key points - exploration upside to Nova base case
Key points - exploration upside to Nova base case 1. High grade massive nickel sulphide mineralisation hit in first drillhole at Taipan prospect is an outstanding result For personal use only 2. Disseminated nickel sulphides in second hole over 1km north of first opens up the prospectivity of the en
Slide 24: Next steps - to development and production
Next steps - to development and production • Project financing discussions are advancing with 6 shortlisted banks – For personal use only there is strong interest well in excess of Nova’s funding requirement • Offtake discussions are advancing with 6 shortlisted customers – very strong demand for th
Slide 25: Next steps - planning for success and growth
Next steps - planning for success and growth • Over and above the DFS basecase: For personal use only • Potential for extensions outside current (DFS) life of mine plan that could lift production rate and/or extend mine life (eg, north of Bollinger) • Potential for new zones outside current (DFS) li
Slide 26: For personal use only
For personal use only