Trek Metals Ltd · ASX:TKM
Trek Metals — Investor Presentation (December 2018)
29 slides from Trek Metals's investor presentation, December 2018
Slide 1: Corporate Presentation
Corporate Presentation December 2018 1 1
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by Trek Metals Limited (“TKM”, “Trek” or the “Company”). It should not be considered as an offer or invitation to subscribe for or purchase any securities in the Company or as an inducement to make an offer or invitation with respect to those securities
Slide 3: Investment Highlights
Investment Highlights 2. Dikaki - Large 1. Emerging World Scale, Open Pit Zinc- 3. Huge Exploration 4. Compelling Value Class Zinc-Lead Lead Resource Upside and Strong Newsflow Province Potential • Flagship Kroussou Zinc- • Exploration Results include: • Open along strike, down • EV of only ~$3 mill
Slide 4: Capital Structure, Share Price and Board
TREK METALS LIMITED CAPITAL STRUCTURE SHARE PRICE CDIs 438.3m 4.0 40.0 3.5 35.0 Options 165m 3.0 30.0 Volume (m) 2.5 25.0 Cents Share price (15 Nov 2018) $0.009/sh 2.0 20.0 1.5 15.0 Market Capitalisation $4.0m 1.0 10.0 Cash (A$m) $1.0m 0.5 5.0 0.0 - Enterprise Value (A$m) $3m BOARD SHARE REGISTER Gr
Slide 5: Why Gabon?
Why Gabon? CAPITAL CITY: LIBREVILLE • Stable government • Modern, transparent mining code • 3-8 year tax holiday (dependant upon project life) • Royalty of 3-5% on base metals (negotiable within Mining Convention) • Much of Gabon’s GDP is driven by export of natural resources • Oil accounts for 80%
Slide 6: Kroussou Zinc-Lead Project - Overview
Kroussou Zinc-Lead Project - Overview • 100% owned Exploration License G4-569 covering ~1,500km2 • Located in Ngounié Province, west Gabon - 220km SE of capital city Libreville • High-quality bitumen and all-weather unsealed roads from Libreville to Kroussou • Nearby river access provides potential
Slide 7: Multiple Opportunities for Discovery
Multiple Opportunities for Discovery • Known mineralisation along the Cretaceous Basin margin • 18 channels along basin margin (>60km), anomalous rocks and soils in nearly all • Only 4 channels have ever been drill tested – all of which had high grade Zn+Pb intersections: 1. Dikaki - SIGNIFICANT TON
Slide 8: Known Mineralisation, Minimal Exploration
Known Mineralisation, Minimal Exploration • Historic drilling at Kroussou was very limited (Dikaki and Niambokamba only) - Average max. depth approximately 16m • Bureau de Recherches Géologiques et Minières (BRGM) work likely to have significantly under-estimated the zinc potential • Historic explor
Slide 9: Dikaki Channel
Dikaki Channel
Slide 10: Dikaki Channel: Delineating a Potentially Substantial Zinc-Lead Deposit
Dikaki Channel Delineating a Potentially Substantial Zinc-Lead Deposit • Dikaki Channel has the potential to host a major (Tier 1), from or near-surface, open-pit sulphide zinc-lead resource • Mineralisation has been demonstrated along the entire > 4km long channel Drilling highlights include: • 8.2
Slide 11: Dikaki Channel: Demonstrating Continuity
Dikaki Channel Demonstrating Continuity • Zinc and lead mineralisation is potentially continuous across and along the entire Dikaki Channel • Trek drilling has confirmed: − Continuity, both along strike and down-dip, of mineralisation within the Dikaki Channel − Mineralised zones remain open in both
Slide 12: Dikaki Channel: Demonstrating Mineralisation Continuity
Dikaki Channel Demonstrating Mineralisation Continuity >4km of mineralisation 12
Slide 13: Dikaki Channel: Significant Tonnage Potential
Dikaki Channel Significant Tonnage Potential • Mineralisation is present along the entire >4km strike of the Dikaki Channel • Potential for multiple large deposits or a single very large deposit within Dikaki alone • Shallow historic drilling means the bulk of the channel has been very poorly tested
Slide 14: Dikaki Channel: Very High Grades, Sulphides from Surface
Dikaki Channel Very High Grades, Sulphides from Surface • Multiple outcrops within the Dikaki channel contain up to 40 % galena and sphalerite from surface (lead and zinc sulphide minerals (respectively) • Almost unknown in modern, large-scale exploration projects This outcrop within the Dikaki emba
Slide 15: Dikaki Channel: Excellent First Pass Metallurgy
Dikaki Channel Excellent First Pass Metallurgy • Initial metallurgical testwork for a composite ore sample from the Dikaki Channel at Kroussou returns outstanding recoveries and concentrate grades • Lead concentrate grade amongst the highest in the world even before process optimisation – >70% Pb an
Slide 16: Multiple Deposit Potential
Multiple Deposit Potential
Slide 17: Bouambo South Prospect
Bouambo South Prospect • Confirms TKM exploration approach – mapping, soils and rock chips • First ever drill results from previously unexplored Bouambo South Prospect include 5.8m @ 6.5% Zn + Pb (BODD004, from 10.2m) incl. 3.0m @ 9.5% Zn + Pb (8% Zn + 1.5% Pb) 17
Slide 18: Bouambo East and Bimbome Prospects
Bouambo East and Bimbome Prospects • First modern exploration holes into Bouambo East have • TKM drilling confirms extension of known mineralization at encountered significant low-grade mineralization Bimbome to the southwest • >2km strike length of the anomalous channel remains entirely • >1km stri
Slide 19: Niambokamba Prospect
Niambokamba Prospect • Niambokamba historic intersections include: • 5.0m @ 7.3% Zn + Pb from 2.1m (NK82) • 8.2m @ 4.8% Zn + Pb from 9.9m (NK63) • 5.6m @ 4.6% Zn + Pb from 5.4m (NK74) • Results from current drilling program are imminent 19
Slide 20: Unlocking Kroussou
Unlocking Kroussou »
Slide 21: Systematically Creating Value: Multiple Milestones Ahead
Systematically Creating Value Multiple Milestones Driving Value Re-Rating Ahead 2017 2018 2019 Identify and acquire projects with potential for a Undertake systematic drill-out of priority prospects tier-1 base metals discovery Deliver an Exploration Target Confirm prospectively quickly and
Slide 22: Investment Highlights
Investment Highlights 2. Dikaki - Large 1. Emerging World Scale, Open Pit Zinc- 3. Huge Exploration 4. Compelling Value Class Zinc-Lead Lead Resource Upside and Strong Newsflow Province Potential 22
Slide 23: In-Ground Value Comparison – Zinc/Lead vs Gold
TREK METALS LIMITED IN-GROUND VALUE COMPARISON – ZINC/LEAD vs GOLD* 120 110 100 Value per tonne (USD$) 90 80 70 60 * Key Assumptions: • Combined Average Zinc/Lead 50 Price Used – US$2245 1.8 g/t Gold 3.0% Lead/Zinc 2.3 g/t Gold 4.0% Lead/Zinc 2.9 g/t Gold 5.0% Lead/Zinc • Gold Price Used – US$1206 2
Slide 24: trekmetals.com.au
Address: P.O Box 1796, West Perth 6872 Office: Suite 5, 56 Kings Park Rd, West Perth WA 6005 trekmetals.com.au
Slide 25: Board
Board Gregory Bittar Bradley Drabsch Michael Bowen Sonja Neame Non-Executive Chairman Managing Director Non-Executive Director Non-Executive Director Gregory has a Bachelor of Economics and Brad is a Geologist and has over 18 years’ Michael graduated from the University of Sonja has 23 years of mini
Slide 26: Lawn Hill Project
Lawn Hill Project Zinc-copper-cobalt-lead-gold prospective applications • 3,610 km2 of applications in the Northern Territory • Same geology that hosts the world-class Century Zinc Mine and the Walford Creek Cu-Co project – 30km Along Strike, Same Structure (ASX:AML Market Cap: $213m) • Historic dat
Slide 27: Lawn Hill Project
Lawn Hill Project Zinc-copper-cobalt-lead-gold prospective applications • Widespread copper, cobalt, zinc and lead anomalism indicated following compilation of historic stream sediment data (ESSO) • Anomalies directly along strike, in the same structural corridor that hosts the Walford Creek Copper-
Slide 28: Arunta Li-Co Project
Arunta Li-Co Project Fertile granites in the NT • Acquisition of prospective lithium and cobalt project located in Northern Territory, Australia • Project includes 6 granted Exploration Licences and 1 application with historical rock chips up to 1,500ppm Li2O, 0.12% Co • Wangala suite granites mappe
Slide 29: Kangaluwi Copper Project
Kangaluwi Copper Project Awaiting Appeal Decision • Appeal by conservation groups against Minister of Lands, Natural Resources and Environmental Protection allowing development of KCP – decision pending (since 2014) • Project remains in good-standing and no further work until decision is handed down