Sundance Resources — MacPhersons Resources — Investor Presentation (July 2014)
38 slides from Sundance Resources's investor presentation, Jul 28, 2014
Slide 1: Heading for Production and Cashflow at the Nimbus Silver-Gold-Zinc Project, Kalgoorlie
Capital Raising Presentation – 28 July 2014 Morrie Goodz, Managing Director Heading for Production and Cashflow at the Nimbus Silver-Gold-Zinc Project, Kalgoorlie
Slide 2: 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 3: Why Invest in MacPhersons?
Why Invest in MacPhersons? High-grade Nimbus Silver–Gold–Zinc VMS in Kalgoorlie BFS on track for completion in Dec Quarter 2014 Extensive drilling campaign underway in preparation for significant reserve-resource update Production and cashflow targeted for Dec Quarter 2015 High-grade, low-cost opera
Slide 4: Offer Summary
Offer Summary Offer Information– Institutional Placement MacPhersons is seeking to raise up to $9million via an institutional placement of up to 56,250,000 shares (“Placement” or the “Offer”), but is able to take over subscriptions up to Offer structure $10.4m being for 65,000,000 shares). Minimum c
Slide 5: Sources and Uses of funds
Sources and Uses of funds Sources of Funds Existing cash balances (as at 30 June 2014) A$2.1 million A$2.1 million Funds from the offer (before Offer costs) A$9 million A$10.4 million Total cash available following the Offer A$11.1 million A$12.5 million Uses of Funds Nimbus BFS Drilling: Design geo
Slide 6: Timetable
Timetable Key Dates – Institutional Placement Trading halt Friday, 25 July 2014 MacPhersons intends to seek a trading halt and voluntary suspension of up to 4 trading days to allow for the completion Trading Halt and ASX Announcement of roadshow presentations and bookbuild process All relevant annou
Slide 7: How to Bid via ASX BookBuild
How to Bid via ASX BookBuild How to Bid Contact your broker or the Technical Lead Manager (Argonaut) Contact your Broker You must be a Sophisticated or Professional investor to participate ASX BookBuild Enter into the once-off ASX BookBuild Agreement with your broker Agreement Any broker may bid on
Slide 8: 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 9: 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 9
Slide 10: Prime Location, Recognised Production Area
Prime Location, Recognised Production Area • Ag-Eq* is calculated using metal credits: Ag Eq* = Ag + Zn x 28.852 + Au x 62.626 + Hg x 0.15 10 • Full details of Ag Eq* calculations and input parameters detailed in the Appendices.
Slide 11: Strategic Achievements
Strategic Achievements 15,732m (processed 55 drillcore holes) Mine design and Ore Reserve statements on two projects Defined high-grade ore reserve at Nimbus: 1.1 Mt @ 297 g/t Ag Eq* recoverable grade Significant increase in Mineral Resource Statements for both Nimbus & Boorara Drilling confirmed 60
Slide 12: 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 13: 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 14: Upside - BFS Drillholes
Upside - BFS Drillholes VHMS deposit Volcanogenic Hosted Massive Sulphide Existing mineral resource limited only by drilling Mineralisation remains open in both strikelength and depth Multiple lenses, such as Ag/Zn211 up to 20m thick 14
Slide 15: 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 30+ lenses identified to date Zinc massive sulphide mineralisation consists mainly of sphalerite, pyrite and silver bearing minerals with byproduct quantities of gold, co
Slide 16: Proposed Underground Mine with New Extensions
Proposed U/ground Mine with New Extensions Multi-lens VMS deposit All lenses remain open along strike All lenses remain open at depth; sulphide mineralisation to 850m depth 16
Slide 17: 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 17
Slide 18: Open High Grade Mineralisation
Open High Grade Mineralisation 18
Slide 19: Upside Potential
Upside Potential Proposed West Pit Proposed East Pit Mineral Resource 23.4Moz Ag-Eq* Ore Reserve 1.1Mt @ 297g/t Ag-Eq* West Lodes Extension Central Lodes Extension 19
Slide 20: 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 20
Slide 21: 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 21
Slide 22: 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 23: Boorara Resource, Block Model & Mine Design
Boorara Resource, Block Model & Mine Design 23
Slide 24: Coolgardie Resource, Block Model & Mine Design
Coolgardie Resource, Block Model & Mine Design 24
Slide 25: 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 26: Points of Difference
Points of Difference Historical silver doré bars Experienced operational mine mangers produced at Nimbus Grade is king (297g/t Ag-Eq) Moving to Production Polymetallic Silver – Gold – Zinc Copper – Nickel ASX Code: MRP www.mrpresources.com.au 26
Slide 27: 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 28: Indicative Processing Flowsheet
Indicative Processing Flowsheet Conventional processing route Crushing, grinding, gravimetric separation, leaching and flotation 28
Slide 29: Nimbus Mineral Resource & Ore Reserve
Nimbus Mineral Resource & Ore Reserve Ag Au Zn Hg Ag Au Zn Hg Ag Eq. Tonnes Ag Eq. Zone Category Grade Grade Grade Grade Metal Metal metal metal metal Mt g/t g/t g/t % g/t Moz koz kt t Moz Mineral Resource as at 25th July 2013 Measured 1.041 112 0.11 2.32 224 219 3.7 3.8 24 233 7.3 Silver Indicated
Slide 30: 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 + (Znx28.852) + (Aux62.626) + (Hgx0.15) The model is based on prices set as of 01st July 2013
Slide 31: 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 32: 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 33: 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
Slide 34: Key Risks
Key Risks There are a number of risks, both specific to the Company and of a general nature, which may, either individually or in combination, affect the future operational and financial performance of the Company and the mining industry in which it operates, and the value of the Company shares. The
Slide 35: Key Risks
Key Risks Operational Risks Drilling, mining and development activities carry risk and as such, activities may be curtailed, delayed or cancelled as a result of a number of factors outside Macphersons' control. These include but are not limited to geological conditions, technical difficulties, secur
Slide 36: Key Risks
Key Risks Insurance Risk The Company intends to insure its operations in accordance with industry practice. However, in certain circumstances, the Company’s insurance may not be of a nature or level to provide adequate insurance cover. The occurrence of an event that is not covered or fully covered
Slide 37: Key Risks
Key Risks Laws, government relations and policy The Company and its mining operations are subject to a wide range of laws and government regulations and policies applying in Australia, with respect to matters such as land use, employee health and safety, rehabilitation of mining properties, environm
Slide 38: Participation
Participation Participation The Placement is being made to sophisticated and professional investors and will use the ASX BookBuild facility. Parties interested in participating in the Placement should contact their broker or adviser. The Company reserves the right to alter the terms of the Placement
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