Sundance Resources — MacPhersons Resources — Diggers & Dealers Forum 2014
31 slides from Sundance Resources's conference presentation, Aug 6, 2014
Slide 1: Underground Ore Reserves Increased by 60%
Underground Ore Reserves Increased by 60% MacPhersons Resources Limited (ASX:MRP) Managing Director, Morrie Goodz, is pleased to present today, Wednesday 06 August 2014, at 11:15am, at the Diggers & Dealers Forum 2014 in Kalgoorlie. The presentation will be available online at www.MRPresources.com.a
Slide 2: Heading for Production and Cashflow at the Nimbus Silver-Gold-Zinc Project
Diggers & Dealers Presentation – 6 August 2014 Morrie Goodz, Managing Director Heading for Production and Cashflow at the Nimbus Silver-Gold-Zinc Project, Kalgoorlie
Slide 3: Disclaimer
Disclaimer Not for distribution or release into the United States The information contained in this presentation has been prepared by MacPhersons Resources Ltd (MRP). This presentation is not an offer, invitation, solicitation or other recommendation with respect to the subscription for, purchase or
Slide 4: Why MacPhersons?
Why MacPhersons? Underground Ore Reserve increased by 60% High-grade Nimbus Silver–Gold–Zinc VHMS BFS on track for completion in Dec Quarter 2014 on successful completion of $8m capital raising Extensive drilling campaign underway in preparation for significant reserve-resource update Production and
Slide 5: Corporate Overview
Corporate Overview $0.35 1.05 Millions ASX Code: MRP $0.30 MRP volume 0.90 MRP share price ASX Listed: December 2010 $0.25 0.75 Ordinary Shares: 254 million $0.20 0.60 Options: Nil $0.15 0.45 Market Cap: A$44.4m (at 17.5 cents) $0.10 0.30 Cash: A$2.1m (30 June 2014) $0.05 0.15 Debt: Nil $0.00 0.00 J
Slide 6: Prime Location, Extensive Infrastructure
Prime Location, Extensive Infrastructure Strategic tenement holding Readily available infrastructure: gas, power, rail, water Mining engineering services and workforce Kanowna – Boorara shear zone 6
Slide 7: Prime Location, Recognised Production Area
Prime Location, Recognised Production Area 1.45Mt @ 270g/t Ag-Eq* (12.4 Moz) • Ag-Eq* is calculated using metal credits: Ag Eq* = Ag + Zn x 26.65 + Au x 38.43 + Hg x 0.17 7 • Full details of Ag Eq* calculations and input parameters detailed in the Appendices.
Slide 8: Strategic Achievements
Strategic Achievements Successful Capital Raise 60% Increase in Nimbus Underground ore reserves Permitting process advanced with Mining Proposal to recommence mining and processing at Nimbus 15,732m (processed 55 drillcore holes) Mine design and Ore Reserve statements on two projects Defined high-gr
Slide 9: BFS - Plant Design Flowsheet – Q3 2014
BFS - Plant Design Flowsheet – Q3 2014 Plant Operated from 2003 to 2007 Processed 319,000 t at a head grade of 352 g/t Ag to produce 3.6 Moz silver Larger resource needs larger mill capacity Conventional plant Grind / Gravity Key Parameter Input Leach / Flotation Flowsheet in Appendix Stope design 2
Slide 10: Timeline to Production
Timeline to Production Production Target Q3/Q4 2015 2014 2015 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 BFS Drilling at Nimbus Metallurgical test work and flow sheet Geotechnical test work Bankable Feasibility Study - Sedgman Order long lead items Delivery of Merrill-Crowe plant Commence pre-strip and open pit mining
Slide 11: Upside - BFS Drillholes
Upside - BFS Drillholes VHMS deposit Volcanogenic Hosted Massive Sulphide Existing mineral resource limited only by drilling Mineralisation remains open in 1.45Mt @ 270g/t Ag-Eq* both strikelength and depth Multiple lenses, such as Ag/Zn211 up to 20m thick 14
Slide 12: Nimbus Silver-Gold-Zinc Project – 500m Deep VHMS deposit
Nimbus Silver-Gold-Zinc Project – 500m Deep VHMS deposit +500m deep intercept Analogous to other VMS deposits in Western Australia 1.45Mt @ 270g/t Ag-Eq* 30+ lenses identified to date Zinc massive sulphide mineralisation consists mainly of sphalerite, pyrite and silver bearing minerals with byproduc
Slide 13: Underground Ore Reserves Increased by 60%
Underground Ore Reserves Increased by 60% 855,941t @ 260g/t Ag-Eq* Pillars and Non-Reserve Blocks exceeding 151g/t Ag-Eq* cut-off awaiting completion of geotechnical studies for reclassification 13
Slide 14: Proposed Underground Mine with New Extensions
Proposed U/ground Mine with New Extensions 1.45Mt @ 270g/t Ag-Eq* Multi-lens VHMS deposit All lenses remain open along strike All lenses remain open at depth; sulphide mineralisation to 850m depth 14
Slide 15: Video Flyover
Video Flyover Video of 3D flyover of minesite and new mill with narration: http://www.mrpresources.com.au/dvd.php#v201310 Live video of Diggers & Dealers presentation http://www.mrpresources.com.au/dvd.php#v201308 15
Slide 16: Open High Grade Mineralisation
Open High Grade Mineralisation 16
Slide 17: Grade is King – Massive Sulphides
Grade is King – Massive Sulphides VHMS deposit Existing mineral resource limited by drilling Mineralisation remains open in multiple lenses, such as Ag/Zn211 Polymetallic Silver Zinc Gold 17
Slide 18: Zinc Market Supply - Demand Curves
Zinc Market Supply - Demand Curves Zinc Price has ranged up 15-20% in 2014 Zinc has compelling market fundamentals among the base metals Significant mine closures are expected to result in a deficit in excess of 1 mt in 2017 China is a growing net importer since 2008 Source: CRU 18
Slide 19: Mine Schedule at Nimbus – Boorara
Mine Schedule at Nimbus – Boorara Single Fleet 2 Nimbus Pits start with East Pit (blue) moving to underground after 8 months West Pit (green) moves underground after 20 months As Nimbus mining fleet becomes available mining commences at Boorara (< 2km away) and runs in parallel with Nimbus Coolgardi
Slide 20: Kalgoorlie – Infrastructure – 5km Project Pipeline
Kalgoorlie – Infrastructure – 5km Project Pipeline Copper potential : analogies with the geology of nearby VMS mines support the high likelihood of copper-zinc-silver-gold feeder lenses being identified nearby Nickel potential: both the Coolgardie and Golden Ridge tenements are at the northern exten
Slide 21: Points of Difference
Points of Difference Experienced operational mine Historical silver doré bars managers produced at Nimbus Grade is king (270g/t Ag-Eq*) Moving to Production Polymetallic Silver – Gold – Zinc Copper – Nickel ASX Code: MRP www.mrpresources.com.au 21
Slide 22: Competent Person Statement
Competent Person Statement The information in this presentation that relates to mineral resources and exploration results is based on information compiled by Mr Morrie Goodz, who is a Fellow of the Australasian Institute of Mining and Metallurgy. Mr Morrie Goodz is a full time officer of MacPhersons
Slide 23: Indicative Processing Flowsheet
Indicative Processing Flowsheet Conventional processing route Crushing, grinding, gravimetric separation, leaching and flotation 23
Slide 24: Boorara Resource, Block Model & Mine Design
Boorara Resource, Block Model & Mine Design 24
Slide 25: Coolgardie Resource, Block Model & Mine Design
Coolgardie Resource, Block Model & Mine Design 25
Slide 26: Nimbus Ore Reserve Statement
Nimbus Ore Reserve Statement Ag Eq. Open Pit Ag Metal Au Metal Zn metal Hg metal metal Class Tonnes Ag Au Zn Hg Ag_equ Moz koz kt t Moz Proved 426,052 169 0.10 2.73% 296 251 2.32 1.36 11.61 126 3.44 Probable 279,329 215 0.19 2.04% 107 279 1.93 1.69 5.71 30 2.50 Total 705,381 187 0.13 2.46% 221 262 4
Slide 27: Nimbus Mineral Resource & Ore Reserve
Nimbus Mineral Resource & Ore Reserve Hg Ag Eq. Tonnes Ag Grade Au Grade Zn Grade Ag Eq. Ag Metal Au Metal Zn metal Hg metal Zone Category Grade metal Mt g/t g/t % g/t g/t Moz koz kt t Moz Mineral Resource as at 25th July 2013 (update in progress for release Q4 2014) Measured 1.041 112 0.11 2.32 224
Slide 28: Silver equivalent (Ag-Eq) Parameters
Silver equivalent (Ag-Eq) Parameters Note* - Silver equivalent (Ag-Eq) is calculated using metal credits only in blocks carrying economic grades of silver and/or zinc and/or gold. The formula is: Ag-Eq = Ag + (Znx26.65) + (Aux38.43) + (Hgx0.17) The model is based on prices set as of July 2014 (both
Slide 29: Boorara Mineral Resource
Boorara Mineral Resource Category Oxidation Tonnes Au (g/t) Au (oz) Measured oxide 640,000 1.13 23,000 transitional 390,000 1.07 14,000 fresh 90,000 1.02 3,000 sub total 1,120,000 1.10 40,000 Indicated oxide 1,030,000 1.06 35,000 transitional 1,140,000 1.08 40,000 fresh 1,450,000 1.07 50,000 sub tot
Slide 30: Boorara Ore Reserve
Boorara Ore Reserve Grade Ounces Category Tonnes Mt Au (g/t) Au Proved 1.128 0.98 35,500 Probable 2.175 1.01 70,600 TOTAL 3.303 0.99 106,100 As at 07th August 2013. Mineral resource reported at a cut-off of 0.5 g/t Au. Heap leach recoveries at 80/75/70. The Boorara Mineral Resource Estimate and Ore
Slide 31: Coolgardie Mineral Resource
Coolgardie Mineral Resource Category Tonnes Au g/t Ounces Measured 690,000 1.36 30,200 Indicated 1,816,000 1.61 94,000 Inferred 1,304,000 1.8 75,500 Total 3,810,000 1.64 199,700 As at 06th August 2012. In accordance with Paragraph 15 of the JORC 2012 Code, we have reviewed this MRE and find no mater