Stavely Minerals Ltd · ASX:SVY
Stavely Minerals — RIU Explorers Conference 2024
59 slides from Stavely Minerals's conference presentation, Feb 13, 2024
Slide 1: Finding the energy metals the world needs for a low-carbon future
For personal use only Finding the energy metals the world needs for a low-carbon future High-Impact Exploration in Emerging Copper and Nickel Provinces RIU Explorers Conference 13 February 2024 1
Slide 2: Disclaimer
Disclaimer ● This presentation contains only an overview of Stavely Minerals Limited (“Stavely" or the “Company”) and its activities and operations. The contents of this presentation, including matters relating to the geology and exploration potential of For personal use only the Company’s projects,
Slide 3: A Modern Australian Energy Metals Growth Company
A Modern Australian Energy Metals Growth Company What does Stavely Minerals offer that is different? For personal use only BIG targets 3
Slide 4: BIG Targets
BIG Targets Hawkstone Magmatic Ni-Cu-Co Project1 ● Adjacent to IGO / Buxton Merlin / Double Magic discovery – ave. 8% Ni tenor, For personal use only new Dogleg discovery – emerging magmatic nickel province ● Eg. Nova & Bollinger, Jinchuan, Voisey’s Bay Stavely Project - Thursday’s Gossan Prospect ●
Slide 5: The demise of sulphide nickel has been grossly exaggerated
For personal use only The demise of sulphide nickel has been grossly exaggerated - with apologies to Mark Twain 5
Slide 6: LME Nickel Official Prices Curve
The demise of sulphide nickel has been grossly exaggerated LME Nickel is only Class 1 (Primary) LME Nickel Official Prices Curve 99.80% purity nickel For personal use only ● Bid / Offer price curve reflecting significantly higher future pricing ● Spot to 36-month price difference is ~+20% Spot 3-mon
Slide 7: Growth in demand for nickel driven by batteries
The demise of sulphide nickel has been grossly exaggerated Growth in the demand for nickel is largely driven by growth in For personal use only battery production requiring high- purity Ni. Red = Stainless Steel, static Dark Blue = battery nickel, massive growth Source: IEA 7
Slide 8: Forecast nickel production deficit
The demise of sulphide nickel has been grossly exaggerated Even with expected increases in Indonesian nickel production, For personal use only Net Zero Emissions targets ? require more nickel than is forecast could be produced. A ~23% production deficit is forecast. Source: IEA 8
Slide 9: The current nickel price is not at historic lows
The demise of sulphide nickel has been grossly exaggerated The current nickel price is not at historic lows ● Emily Ann commences Ni production with ~US$6,000/t nickel price For personal use only 25-year Ni US$/t monthly average price ● Nova-Bollinger commences production into a falling nickel price
Slide 10: The current nickel price is not at historic lows
The demise of sulphide nickel has been grossly exaggerated The current nickel price is not at historic lows ● Emily Ann commences Ni production with ~US$6,000/t nickel price For personal use only 25-year Ni US$/t monthly average price ● Nova-Bollinger commences production into a falling nickel price
Slide 11: The current nickel price is not at historic lows
The demise of sulphide nickel has been grossly exaggerated The current nickel price is not at historic lows ● Emily Ann commences Ni production with ~US$6,000/t nickel price For personal use only 25-year Ni US$/t monthly average price ● Nova-Bollinger commences production into a falling nickel price
Slide 12: Sulphide nickel lower on the cost curve than laterite
The demise of sulphide nickel has been grossly exaggerated BUT – the key reason sulphide nickel will remain an attractive investment proposition is because a quality sulphide nickel deposit is lower on the For personal use only cost curve, and more profitable per production unit than laterite nickel
Slide 13: Comparative cash costs and nickel tenor
The demise of sulphide nickel has been grossly exaggerated BUT – the key reason sulphide nickel will remain Comparative Cash Costs $/lb an attractive investment proposition is because a $14.00 quality sulphide nickel deposit is lower on the For personal use only $12.03 cost curve, and more profitabl
Slide 14: Laterites are naturally high-cost producers
The demise of sulphide nickel has been grossly exaggerated Laterites are naturally high-cost producers The upper half of the global nickel production For personal use only cost curve is dominated by laterite production with some disseminated sulphide (eg. Mt Keith) and comparatively low-tonnage per
Slide 15: Hawkstone Ni-Cu-Co Project – An Emerging Nickel-Copper-Cobalt Province
For personal use only Hawkstone Ni-Cu-Co Project – An Emerging Nickel-Copper- Cobalt Province 15
Slide 16: Hawkstone Ni-Cu-Co Project
Hawkstone Ni-Cu-Co Project Hawkstone Ni-Cu-Co Project ● ~870km 100% tenure 2 For personal use only ● ~30km of the prospective Ruins Dolerite ● Buxton / IGO JV Merlin discovery 1km from tenement boundary ● Complementary field season (winter) to the Stavely Project (summer) ● Potential for Li pegmatit
Slide 17: Hawkstone Ni-Cu-Co Project
Hawkstone Ni-Cu-Co Project Hawkstone Ni-Cu-Co Project ● IGO is a major tenure holder in both the For personal use only East and West Kimberley ● Regional play Hawkstone 1See ASX:BUX announcement 04/10/2023, 19/10/2023 and 6/11/2023 1AuEq = nickel grade (%) x ((AUD nickel price/ 0.000453592) / 100) /
Slide 18: Hawkstone Ni-Cu-Co Project
Hawkstone Ni-Cu-Co Project Hawkstone Ni-Cu-Co Project NEW IGO / BUX Dogleg nickel discovery For personal use only (Quick Shears) 13km NW of Merlin / Double Magic1: • 23WKDD003 – 13.85m @ 4.35% Ni, 0.34% Cu and 0.15% Co from 177.34m, incl. • 5.86m @ 7.47% Ni, 0.31% Cu and 0.25% 13 km Co 13 km • 23WKD
Slide 19: Dogleg Discovery – IGO / BUX
For personal use only Dogleg Discovery – IGO / BUX 19
Slide 20: Dogleg Discovery – IGO / BUX
Dogleg Discovery – IGO / BUX Attributes Common to Merlin and Dogleg ● Located on the southern margin of gravity highs For personal use only ● Gravity highs interpreted as mafic magma chambers ● Stavely Minerals believes the sequence has been tilted to the NE such that the southern margins of the gra
Slide 21: Dogleg Discovery – IGO / BUX
Dogleg Discovery – IGO / BUX Attributes Common to Merlin and Dogleg ● Located on the southern margin of gravity highs For personal use only ● Gravity highs interpreted as mafic magma chambers ● Stavely Minerals believes the sequence has been tilted to the NE such that the southern margins of the gra
Slide 22: Implications for Hawkstone
For personal use only Implications for Hawkstone 22
Slide 23: Hawkstone Ni-Cu-Co Project
Hawkstone Ni-Cu-Co Project Hawkstone Ni-Cu-Co Project ● ~870km 100% tenure 2 For personal use only ● ~30km of the prospective Ruins Dolerite ● Recently acquired Falcon Gravity Gradiometer / magnetic survey ● Setting up for exploration success ● Buxton / IGO JV Merlin discovery 1km from tenement boun
Slide 24: Hawkstone Ni-Cu-Co Project
Hawkstone Ni-Cu-Co Project Hawkstone Ni-Cu-Co Project ● Mapped geology understates the extent For personal use only of the Ni-Cu-Co prospective Ruins Dolerite ● Falcon data shows a large gravity high under the Hawkstone project interpreted to be a mafic magma chamber ● Recent agreement to expand har
Slide 25: Hawkstone Ni-Cu-Co Project
Hawkstone Ni-Cu-Co Project Hawkstone magma chamber ~20km Hawkstone Gravity Nova Gravity Nova-Bollinger magma chamber ~75km Voisey’s Bay Eastern Deeps magma chamber For personal use only ~20km It is not the size of the magma chamber as much as it is the efficiency of the magmatic 20km processes to: •
Slide 26: Hawkstone Ni-Cu-Co Project – Voisey's Bay Analogy
Hawkstone Ni-Cu-Co Project – Voisey’s Bay Analogy Hawkstone Ni-Cu-Co Project Magmatic nickel deposits form by For personal use only ascending magma acquiring sulphur from country rocks and those sulphides sequester Ni, Cu and PGE from melt. ● Sulphides precipitate in low-velocity ‘traps’ See ASX ann
Slide 27: Hawkstone Ni-Cu-Co Project – Voisey's Bay Analogy
Hawkstone Ni-Cu-Co Project – Voisey’s Bay Analogy Voisey’s Bay Long Section Hawkstone Ni-Cu-Co Project ● If the Merlin discovery equates to For personal use only the Discovery Hill Zone at Voisey’s Bay… ● Then does the apparent mafic ?? magma chamber at depth in Hawkstone represent an Eastern Deeps
Slide 28: Hawkstone Ni-Cu-Co Project – Comparison with Dogleg
Hawkstone Ni-Cu-Co Project Comparison with Dogleg ● Large gravity high For personal use only See ASX announcement 14 November 2023 and available from www.stavely.com.au 28
Slide 29: Hawkstone Ni-Cu-Co Project – Comparison with Dogleg
Hawkstone Ni-Cu-Co Project Comparison with Dogleg ● Large gravity high For personal use only ● Mafic magma chamber at depth See ASX announcement 14 November 2023 and available from www.stavely.com.au 29
Slide 30: Hawkstone Ni-Cu-Co Project – Comparison with Dogleg
Hawkstone Ni-Cu-Co Project Comparison with Dogleg ● Large gravity high For personal use only ● Mafic magma chamber at depth ● Potential feeder structures evident Feeder Dykes? See ASX announcement 14 November 2023 and available from www.stavely.com.au 30
Slide 31: Hawkstone Ni-Cu-Co Project – Comparison with Dogleg
Hawkstone Ni-Cu-Co Project Comparison with Dogleg ● Large gravity high For personal use only ● Mafic magma chamber at depth ● Potential feeder structures evident ● Base of magma chamber sulphide trap sites are clear targets Target Zones Feeder Dykes? See ASX announcement 14 November 2023 and availab
Slide 32: Hawkstone Ni-Cu-Co Project – Voisey's Bay Analogy
Hawkstone Ni-Cu-Co Project – Voisey’s Bay Analogy Hawkstone Ni-Cu-Co Project ● Large MLEM programme is proposed to For personal use only commence in April / May ● Stavely Minerals has been awarded a WA Exploration Incentive Scheme (EIS) grant of up to $220,000 of co-funding for a proposed 800m deep
Slide 33: Stavely Project
For personal use only Stavely Project 33
Slide 34: Stavely Project
Stavely Project ● First-mover position – largest and most strategic tenement holding in the Stavely Volcanic Belt, western Victoria For personal use only ● Discovery– outstanding shallow high-grade copper-gold-silver discovery (September 2019), the Cayley Lode ● Cayley Lode MRE1 – 9.3Mt at 1.23% Cu,
Slide 35: Cayley Lode Mineral Resource Estimate
Cayley Lode Mineral Resource Estimate ● Magma / Butte copper lode-style system – outstanding exploration target never before seen in Australia For personal use only ● 9.3Mt at 1.23% Cu, 0.23g/t Au and 7.1g/t Ag1 Indicated Inferred 38% 62% ● Open Pit Mineral Resources within open pit shell optimised
Slide 36: New Regional Porphyry Targets
For personal use only New Regional Porphyry Targets 36
Slide 37: Regional Exploration – Massive Opportunity for Discovery
Regional Exploration – Massive Opportunity for Discovery ● Soil geochemistry analysis by Dr Dan Core, Fathom Geophysics ● Utilises vertical metals zonation model above porphyry systems For personal use only See ASX announcement 3/10/2021 and available from www.stavely.com.au 37
Slide 38: Regional Exploration – Massive Opportunity for Discovery
Regional Exploration – Massive Opportunity for Discovery ● S2 and especially S3 porphyry targets are associated with gravity lows, consistent with hydrothermal alteration related gravity lows at Thursday’s Gossan porphyry, The Northern For personal use only Flexure, Toora Road prospects and the Toor
Slide 39: Work Programme
For personal use only Work Programme 39
Slide 40: 12-month Work Programme
12-month Work Programme ACTIVITY Q1 2024 Q2 2024 Q3 2024 Q4 2024 STAVELY PROJECT For personal use only Thursday's Gossan Prospect Regional porphyry target aircore drilling Toora Road Prospect Diamond drilling gravity low Too Wet Junction 1 Prospect Aircore drilling ? S41 Au-Ag Prospect IP Geophysica
Slide 41: Corporate Summary
Corporate Summary CAPITAL STRUCTURE 12-month Share Price to 12 February 2024 ASX Ticker SVY $0.30 2,500,000 For personal use only Share Price (12/02/24) $0.033 Close Volume $0.25 Shares on Issue 382M 2,000,000 Cash (31/12/23) $1.4M $0.20 1,500,000 Market Capitalisation $12.6M $0.15 Management and St
Slide 42: Summary – Key Investment Takeaways
Summary – Key Investment Takeaways ✓ Markets have got it wrong on nickel ✓ Magmatic Ni sulphide deposits will always dominate the lowest quartile of the cost curve Hawkstone Ni-Cu-Co Project provides an outstanding opportunity for discovery in an emerging high- For personal use only ✓ tenor magmatic
Slide 43: Copper and Nickel …the Ultimate Future-Facing Commodities
Copper and Nickel …the Ultimate “Future-Facing” Commodities In order to migrate to a low-carbon For personal use only economy and provide alternative energy solutions, certain strategic minerals are required to build the wind 3.6 tonnes of copper for every MW of wind farms, solar farms, electric veh
Slide 44: Copper and Nickel…Compelling Market Fundamentals
Copper and Nickel…Compelling Market Fundamentals There are very few high-quality For personal use only projects coming on stream in first world jurisdictions Escondida, the world’s largest copper mine: • 1.72% Cu average head grade in 2007 • 0.52% Ore Reserve grade in 2019 CRU estimates a 15 million
Slide 45: Contact Us
For personal use only Contact Us: Stavely Minerals Limited Level 1, 168 Stirling Highway Nedlands WA 6009 www.stavely.com.au info@stavely.com.au Ph: 08 9287 7630 The information in this presentation is extracted from information available to view on www.stavely.com.au. The Company confirms that it i
Slide 46: Appendix 1: Mineral Resources
For personal use only Appendix 1: Mineral Resources 46
Slide 47: Appendix 1: Mineral Resources Classifications
Appendix 1: Mineral Resources Classifications Table 1. Cayley Lode Initial Mineral Resource estimate Cut-off Grade Cont. Grade Cont. Grade Cont. Resource Resource Tonnes Material Category (Mt) Cu For personal use only (Cu %) (Cu %) (Au g/t) Au (oz) (Ag g/t) Ag (oz) (Mlbs) Primary Indicated 0.2 5.87
Slide 48: Appendix 2: Other regional targets
For personal use only Appendix 2: Other regional targets 48
Slide 49: Regional Exploration – Massive Opportunity for Discovery
Regional Exploration – Massive Opportunity for Discovery ● Full range of discovery opportunities For personal use only associated with the ancient Stavely Volcanic Arc 5-7km Fairview Deep Porphyry 49
Slide 50: Regional Exploration – Massive Opportunity for Discovery
Regional Exploration – Massive Opportunity for Discovery ● Despite previous exploration by industry ‘top dogs’ Newcrest, Rio Tinto, CRA Exploration and North For personal use only Limited, Stavely Minerals has a ‘first mover’ advantage ● +1,000km2 of tenure covering ~115km of porphyry- prospective v
Slide 51: Ground Gravity – Thursday's Gossan Alteration / Gravity Low
Ground Gravity – Thursday’s Gossan Alteration / Gravity Low For personal use only 51
Slide 52: Falcon gravity gradiometer image
Falcon gravity gradiometer For personal use only image 52
Slide 53: Regional Exploration – Massive Opportunity for Discovery
Regional Exploration – Massive Opportunity for Discovery ● The team has identified 19 regional targets and have active aircore and soil auger programmes For personal use only ● All of the regional targets are under younger (~10Ma) basalt cover or tertiary transported cover ● Already made a ‘blind’ p
Slide 54: Emerging Discovery? – The S41 Breccia Prospect
Emerging Discovery? – The S41 Breccia Prospect Magnetics Gravity S41 Prospect Aircore ● 4m at 2.21g/t Au from For personal use only 96m drill depth, including: ● 2m at 3.92g/t Au from 98m in aircore drilling ● Large 2km alteration zone ● Strongly anomalous base metals and pathfinder geochemistry See
Slide 55: Emerging Discovery? – The S41 Breccia Prospect
Emerging Discovery? – The S41 Breccia Prospect S41 Diamond Drill Hole For personal use only ● 1m at 2.16g/t Au from 282m drill depth ● 37m at 0.10g/t Au, including: ● 2m at 0.56g/t Au from 320m, and ● 5m at 24.3g/t Ag from 353m ● Gold and silver in the system ● Breccia-hosted systems host notoriousl
Slide 56: Emerging Discovery? – The S41 Breccia Prospect
Emerging Discovery? – The S41 Breccia Prospect S41 Diamond Drill Hole ● 1m at 2.16g/t Au from 282m For personal use only drill depth ● 37m at 0.10g/t Au, including: ● 2m at 0.56g/t Au from 320m, and ● 5m at 24.3g/t Ag from 353m ● Gold and silver in the system ● Breccia-hosted systems host notoriousl
Slide 57: Toora Road
Toora Road Toora Road Prospect ● Same magnetic trend For personal use only as the Cayley Lode and the Northern Flexure prospect (left image) ● Historic aircore drill intercept (CRA): 15m @ 1.28g/t Au, 11g/t Ag, 0.26% Cu, 0.94% Pb and 0.10% Zn immediately north of a prominent gravity low (right image
Slide 58: Emerging Discovery? – The Northern Flexure Prospect
Emerging Discovery? – The Northern Flexure Prospect Northern Flexure Prospect ● First drill programme For personal use only ● 20m at 33.2g/t Ag from 12m drill depth, including: ● 2m at 169g/t Ag from 98m ● Similar ultramafic contact setting to the Cayley Lode See ASX announcement 19/04/2023 and avai
Slide 59: Junction – Massive Opportunity for Additional Discovery
Junction 1 – Massive Opportunity for Additional Discovery Junction 1 Prospect ● 2km south of the Cayley Lode For personal use only ● Largest and highest grade soil anomaly in the project ● Restricted access over the past 15 years ● Aircore drill results including 35m at 3.4% Cu from 24m See Stavely