Breaker Resources NL — Resources Rising Stars Summer Series 2019
26 slides from Breaker Resources NL's conference presentation, Feb 11, 2019
Slide 1: Resources Rising Stars Summer Series Roadshow Presentation (ASX cover letter)
11 February 2019 For personal use only The Manager Market Announcements Office ASX Limited PO Box H224 Australia Square SYDNEY NSW 2001 Dear Sir/Madam RESOURCES RISING STARS SUMMER SERIES ROADSHOW PRESENTATION Please find attached a presentation to be given by Executive Chairman Tom Sanders at the R
Slide 2: A rare greenfields gold discovery with scale and high-grade mining options
A rare greenfields gold discovery with For personal use only scale, high-grade mining options and multi-million ounce growth potential1 Resources Rising Stars Summer Series Sydney-Melbourne; 12-14 February 2019 Lake Roe Gold Project, Kalgoorlie, Western Australia 1ASX Release 6 September 2018 ASX Co
Slide 3: Disclaimer
Disclaimer 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 For personal use only in any jurisdiction. This presentation may
Slide 4: BRB Snapshot
BRB Snapshot A high-grade gold discovery with camp-scale growth potential and serious de-risking: For personal use only PFS underway targeting early, Phase 1 open pit development Large gold system discovered “under cover” in 2016 (no mining legacy issues) Dual focus on rapid resource growth and
Slide 5: Perspective: discoveries like this are rare worldwide
Perspective: discoveries like this are rare worldwide Significant gold discoveries in Western Australia in last 15 years For personal use only Bombora 1.1Moz 2016 Breaker (growing quickly) Open pit & UG potential Gruyere 6.2Moz 2013 Gold Road Open pit Tropicana 8.0Moz 2006 Anglo Gold greenfields Ope
Slide 6: Seriously big with high-grade mining options
Seriously big with high-grade mining options Some of the best drill hits in Western Australia in last 2 years (shallow, multiple lodes) For personal use only 1 1 Intercept Lode HoleID Intercept Lode HoleID 25m @ 18.53g/t from 53m Harmat stockwork BBRC0752 1.65m @ 156.83g/t from 72m North Point 1 Ree
Slide 7: If grade is king then All-In Sustaining Cost/oz is god
If grade is king then All-In Sustaining Cost/oz (AISC) is god When you compare real-world costs in low-grade open pit mines to high-grade For personal use only underground gold mines, the AISC/oz have a similar range2 The reason is that mining costs are lower in an open pit (per unit volume) and les
Slide 8: Deeper drilling below 200mbs – Tura lode
This is the basis of our confidence in long-term underground mining Deeper drilling below 200mbs – Tura lode For personal use only Tura Lode BBRD0819*: 21m @ 5.74g/t Au including 12m @ 9.80g/t …excellent grade distribution …open to south Nearby intercepts include*: Lake Roe Gold Project 12m @
Slide 9: Deeper drilling below 200mbs – Mindil lode
This is the basis of our confidence in long-term underground mining Deeper drilling below 200mbs – Mindil lode For personal use only Mindil Lode BBRD0758*: 7m @ 32.66g/t Au …excellent grade distribution …open to south and north Mindil intersections include*: 2.5m @ 18.53g/t 2.8m @ 17.72g/t L
Slide 10: Intrinsic value, share price catalysts and upside
Intrinsic value, share price catalysts and upside Camp-scale growth potential in a tight Current value scenario For personal use only There is a price mismatch between BRB and its chosen capital structure peer (a great story) possibly due to the market’s focus on EV/Resource oz EV/Reserve oz grade
Slide 11: Corporate Summary and Capital Structure
Corporate Summary and Capital Structure Experienced mining industry professionals aligned with shareholders For personal use only Corporate/Technical Team Capital Structure Tom Sanders Executive Chairman (geologist) Issued Securities 182.7m fully paid shares (4.6m partly paid shares; 5.7m unlisted
Slide 12: Board of Directors
Board of Directors A strong team with an exceptional track record in feasibility, development, mining, exploration, finance and corporate For personal use only Tom Sanders Mike Kitney Linton Putland Mark Edwards Executive Chairman Non-Executive Director Non-Executive Director Non-Executive Director
Slide 13: Serious de-risking in steps
For personal use only Serious de-risking in 8 steps (following slides) De-risked growth potential in 8 steps (following slides) 1) Tier 1 location 100km east of Kalgoorlie, Western Australia 2) 193,000m of drilling and still open all directions (camp-scale growth potential) 3) Exceptional drill inte
Slide 14: (1) Tier 1 location 100km east of Kalgoorlie, WA
For personal use only (1) Tier 1 location 100km east of Kalgoorlie, WA 8km-long gold system discovered February 2016 hidden by thin cover (typically 5-10m) Situated between 2 large gold deposits 3.5Moz Operating Two operating gold plants within ~60km Large landholding +550km2, 100%-owned Minor
Slide 15: (2) 193,000m of drilling and still open in all directions
For personal use only (2) 193,000m of drilling and still open in all directions Shallow drilling in first 2.5km of 8km gold system indicates potential for single, large open pit* Drilling underway with 4 rigs • Open in all directions after 193,000m of drilling (28% diamond drilling) • Still discov
Slide 16: (3) Exceptional high-grade drill hits close to surface
(3) Exceptional high-grade drill hits close to surface Some of the best drill hits in Western Australia in last 2 years (shallow, multiple lodes) For personal use only Deepest intersection so far is 360m below surface (BBRD0950; assays pending*) Open Pit Resource 1.1Moz# Open Open Open Lake Roe Gold
Slide 17: (4) Mining potential underpinned by high gold endowment
(4) Mining potential underpinned by high gold endowment High gold endowment of 5,000-6,000 ounces per vertical metre (OVM)* For personal use only (1,000OVM is a rough minimum yardstick for assessing underground mining potential) Gold Ounces and Grade per Vertical Metre 10,000 2.5 9,000 Grade increas
Slide 18: (5a) A common style of mineralisation with proven continuity
(5a) A common style of mineralisation with proven continuity Sulphide lodes and stockwork in fractionated dolerite, the dominant style in WA For personal use only eg. Golden Mile, St Ives, Mt Charlotte, Paddington, White Foil BBRD0787 - 203.3m; Visible gold in stockwork (11.46g/t Au)^ Lake Roe Gold
Slide 19: (5b) A common style of mineralisation with proven continuity
For personal use only (5b) A common style of mineralisation with proven continuity Steep lodes Lake Roe Gold Project Steep and Flat lodes (no west-dippers) Flat lodes 3D representation of steep and flat lodes with A$2,000/oz pit shell* *ASX Release 6 September 2018 18
Slide 20: (6a) Potential for a large, single open pit already demonstrated
(6a) Potential for a large, single open pit already demonstrated Early open pit optimisations (April 2018) have already confirmed potential for a single open pit over 2.0km-long before For personal use only we added ~500,000oz in latest Resource Extensional drilling is discovering shallow gold in
Slide 21: (6b) Potential for a seriously large, single open pit
(6b) Potential for a seriously large, single open pit already demonstrated The drilling is only scratching the surface so far…but already we see potential for a For personal use only large standalone development based only on shallow drilling in the first 2.5km of an 8km gold system * ^ Lake Roe Gol
Slide 22: (7) Metallurgy points to high recoveries and low costs
For personal use only (7) Metallurgy points to high recoveries and low costs* Modest ore hardness Ball mill work index <16kWh/t for fresh mineralisation Excellent gold recovery 96%-99% (oxide & fresh) Comminution (oxide/fresh) High gravity gold 31%-77% (oxide) 32%-90% (fresh) Lake Roe Gold Pro
Slide 23: (8) The lithium wildcard
(8) The lithium wildcard 15km SSW of Bombora High-grade discovery made while doing reconnaissance gold exploration For personal use only Steps underway to determine size/quality to drive strategy to monetise it to benefit core gold focus Lake Roe Gold Project Spodumene-rich outcrop (long, slender cr
Slide 24: The BRB Story: quality, value & growth
The BRB Story: quality, value & growth A rare large, extensively de-risked, high-grade greenfields gold discovery in a Tier 1 location For personal use only (shallow open pit potential and high-grade underground mining potential) Dual focus on rapid Resource growth and PFS targeting early open p
Slide 25: Laying the foundation for a large new mining camp
Laying the foundation for a large new mining camp, 100km east of Kalgoorlie, Western Australia For personal use only
Slide 26: Appendix: Summary of source data for EV/Resource oz chart
For personal use only Appendix 1 Summary of source data for EV/Resource oz and EV/Reserve chart BRB BGL CMM EAR GOR GCY DCN Shares (Appendix 3B) 29/11/2018 10/01/2019 27/12/2017 23/01/2019 19/10/2018 5/10/2018 31/01/2019 Price (ASX Closing Price) 5/02/2019 5/02/2019 5/02/2019 5/02/2019 5/02/2019 5/0
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