Nex Metals Exploration Ltd · ASX:NME
Nex Metals Exploration — Nex Metals Explorations — Shareholder Meeting (November 2009)
65 slides from Nex Metals Exploration's shareholder meeting presentation, Dec 1, 2009
Slide 1: Nex Metals Explorations Ltd
Explorations Ltd www.nexmetals.com
Slide 2: Annual General Meeting 30 November 2009
For personal use only Annual General Meeting 30 October 2008 30 November 2009
Slide 3: Since listing in Dec 2007 your company has
For personal use only (Since Nex Metals successfully listed Dec 2007 your company has:) 2008 AGM Presentation • Achieved the exploration goals set out in the IPO. • Taken a prudent and conservative approach to exploration both domestically and overseas • Investigated many highly prospective domestic
Slide 4: Action taken in light of the Global Financial Crisis
For personal use only (Action taken in light of the current Global Financial Crisis.) 2008 AGM Presentation • Nex is well placed in this bad market to take advantage of the new opportunities created in this economic environment. • Due to tightening credit, we will operate on the basis that we only d
Slide 5: Activities over the past months
For personal use only Activities over the past 12 mths • Kept exploring,consolidating and pruning Australian tenement package. • 26th February 2009 – Nex Metals farms in on the Yundamindera Gold Project. – Nex can earn 70% by spending $1.5M in expenditure over a 3 year period. – The project has a sm
Slide 6: Yundamindera Salient Features
For personal use only Yundamindera Salient Features • Strong historical production figures 79,000 ounces of gold produced @ 19 g/t. • 79,000 ounces of gold in JORC compliant resource estimations • no modern mining • mineralisation occurring on and near surface • a large dataset of 1777 drillholes co
Slide 7: For personal use only
For personal use only Nex started the process to explore and bring this project to a mining stage, drilling assaying and surveying and working with consultant engineers to provide a pit design with treatment and scheduling options on the existing well defined gold mineralisation. The Yundamindera Go
Slide 8: Acquisition of Kookynie Gold Project
For personal use only 10th June 2009 – Nex Metals acquires 100% of the Kookynie Gold Project from FMR resources for $150,000 and 7.8million shares. Salient Points: • A total of 12 historical gold estimates provide a (non-JORC) 424,600 ounce gold endowment with most requiring minimal work to upgrade
Slide 9: What a difference a year makes
For personal use only What a difference a year makes… Oct 08 Nov 08 Dec 08 Jan 09 Feb 09 Nex farmin AGM 08 Nex evaluates opportunities Yundamindera Mar 09 Apr 09 May 09 Jun 09 Jul 09 Nex acquires Kookynie Nex evaluates Yundamindera & Kookynie Gold Project Gold Project Transaction moves towards quick
Slide 10: Nex Metals Explorations Ltd
Explorations Ltd www.nexmetals.com
Slide 11: Work completed post Kookynie purchase
For personal use only Work completed by Nex Metals post the Kookynie Gold Project Purchase – 6 months. • The Nex Metals 3 Phase Plan for Growth. Delineation of a strategy for Nex to grow and extract the best possible value out of the Kookynie Gold Project. • Grade Control Drilling Phase 1 • Prelimin
Slide 12: Work completed post Kookynie purchase
For personal use only Work completed by Nex Metals post the Kookynie Gold Project Purchase – 6 months. • Visible Gold intersected in Diamond Drilling beneath the historical Cosmopolitan Goldmine. • Nex Assesses 100,000 ounces per annum gold production target. • Nex appoints Alan Matthysen (formerly
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Slide 14: Phases
For personal use only Phase 1 Phase 2 Phase 3
Slide 15: Nex Phase Plan for Growth
For personal use only Nex 3 Phase Plan for Growth • Phase 1 Swift Low Cost Cash Flow • Phase 2 Open Cut re-optimisation of previously mined shallow open pits. • Phase 3 Establishing a high grade underground Goldmine.
Slide 16: Nex Phase Plan for Growth: Phase 1
For personal use only Nex 3 Phase Plan for Growth • Phase 1 Swift Low Cost Cash Flow A starter project located at the Orient Well area. Nex targets 17,000 ounce gold production from a Laterite Dump Leach. Independent resource estimation & favourable metallurgy completed, 1.84Mt resource with signifi
Slide 17: Nex Phase Plan for Growth: Phase 2
For personal use only Nex 3 Phase Plan for Growth • Phase 1 Swift Low Cost Cash Flow • Phase 2 Open Cut re-optimisation of previously mined shallow open pits. Nex targets 100,000 ounce p/a gold production at the Butterfly – Admiral & Orient Well areas. Independent resource estimation & favourable pr
Slide 18: Nex Phase Plan for Growth: Phase 3
For personal use only Nex 3 Phase Plan for Growth • Phase 1 Swift Low Cost Cash Flow • Phase 2 Open Cut re-optimisation of previously mined shallow open pits. • Phase 3 Establishing a high grade underground Goldmine. Nex targets 50,000 ounce per annum gold production from the Cosmopolitan, Champion
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Slide 26: Nex Metals Explorations Ltd
Explorations Ltd www.nexmetals.com
Slide 27: Phase 1 Swift Low Cost Cash Flow
For personal use only Phase 1 Swift Low Cost Cash Flow • Laterites provide a low cost high profit mining option for Nex start-up gold production. Gold production from laterites are easy, no waste to move, ore rippable with a dozer no crushing required with excellent heap leach ore recoveries (exceed
Slide 28: Phase 1 Swift Low Cost Cash Flow
For personal use only Phase 1 Swift Low Cost Cash Flow • 1.84Mt of lateritic material grading 0.45 g/t ASX reported resource estimation delineated by independent consultants.
Slide 29: Phase 1 Swift Low Cost Cash Flow
For personal use only Phase 1 Swift Low Cost Cash Flow • Recent metallurgical Conceptual test work by Dump Leach independent layout plan consultants suggests Dump Leach recoveries should be better than 65%.
Slide 30: Phase 1 Swift Low Cost Cash Flow
For personal use only Phase 1 Swift Low Cost Cash Flow • Close to infrastructure, adjacent to the existing Orient Well open pit and….. • Potential for more ore using Nex’s tenements along with recent acquisitions. • Ready for mining This gold mineralised laterite is the first deposit, located to the
Slide 31: Phase 1 Swift Low Cost Cash Flow
For personal use only Phase 1 Swift Low Cost Cash Flow • No waste overburden, we only mine ore, no waste. • Mines department and environmental approvals underway. Nex has established a scoping committee of industry specialists to navigate the approvals process. • Alan Matthysen appointed Project Man
Slide 32: Phase 1 Calculations
For personal use only Phase 1 Calculations Resource Status Conservative Initial Concept 500,000 t @ 0.5 g/t, 50% rec. = 4,000 gold oz Latest Resource & Recovery 1.84Mt @ 0.45, 64% rec = 17,300 gold oz Sensitivity Analysis Gold Price $AUS Revenue after Costs pa Best case (spot + 20%) $1,548 $12,300,0
Slide 33: Phase 2 Re-optimisation of previously mined shallow open pits
For personal use only Phase 2 Re-optimisation of previously mined shallow open pits • 12.3Mt @ 1.1 for 432,000 ounces of gold resource estimates already reported to the ASX by Nex, delineated from the Admiral, Butterfly, Clark and Redlake by independent consultants. • Potential for increase due to a
Slide 34: Phase 2 Re-optimisation of previously mined shallow open pits
For personal use only Phase 2 Re-optimisation of previously mined shallow open pits • Potential for increase along strike and down dip. The Admiral Butterfly trend displays gold mineralisation in rhombahedral ladder arrangement as a series of stacked lodes. The depth of resources is from the surface
Slide 35: The Butterfly open pit
For personal use only The Butterfly open pit with most of the waste removed and ore remaining
Slide 36: Phase 2 Admiral – Butterfly gold mineralisation
For personal use only Phase 2 Admiral – Butterfly gold mineralisation
Slide 37: Phase 2 Admiral – Butterfly gold mineralisation
For personal use only Phase 2 Admiral – Butterfly gold mineralisation Section
Slide 38: Scenario One conceptual minimum reserve
ry) Nex Metals Conceptual minimum reserve for 2 years mine life: 9 MT @ 1.1g/t. | SCENARIO ONE: A ratio proportion for this exercise: 2 years 9Mt @ 1.1 = 8Mt @ 0.86 (HL)+ 1Mt @ 3.0g/t (CIL) 8 1 Heap Leach (HL) per annum CIP / CIL (CIL) per annum 4,000,000 tonnes @ 0.86g/t 500,000 tonnes @ 3.0 g/t wi
Slide 39: Scenario Two conceptual minimum reserve
ry) Nex Metals Conceptual minimum reserve for 2 years mine life: 9 MT @ 1.1g/t. | SCENARIO TWO: A ratio proportion for this exercise: 2 years 9Mt @ 1.1 = 8Mt @ 0.99 (HL)+ 1Mt @ 2.0g/t (CIL) Heap Leach (HL) per annum CIP / CIL (CIL) per annum 4,000,000 tonnes @ 0.99 g/t 500,000 tonnes @ 2.0 g/t with
Slide 40: Historical gold produced in Kookynie district is free milling
For personal use only Historical gold produced in the Kookynie district is free milling Ore treated (t) Gold produced (oz) Recovered grade (g/t Au) Kookynie Mining Centre 785,917 411,475 16.28 Cosmopolitan 607,387 311,834 15.97 Altona 29,917 19,492 20.26 Champion 60,527 33,758 17.35 Batavia (Brittan
Slide 41: ...and more good points
For personal use only …and more good points • An abundance of quality raw water. The orient Well Mill has an already established and fully reticulated borefield capable of supplying raw water to a 1.2Mt pa CIL treatment plant. • Significant infrastructure already in place borefield, haul roads, ROM
Slide 42: Phase 2 Calculations
For personal use only Phase 2 Calculations Resource Status Conservative Initial Concept 2.0 Mt @ 2.38 g/t, 58% rec. = 89,000 gold oz Latest Resource & Recovery 12.3Mt @ 1.10 g/t, 58% rec. = 432,000 gold oz Current Conceptual Target p/a 4.5 Mt @ 1.10 g/t, 65% rec. = 104,000 gold oz Sensitivity Analys
Slide 43: Phase 3 Establishing a high grade underground Goldmine
For personal use only Phase 3 Establishing a high grade underground Goldmine • The tenement package hosts historical goldmines with impressive gold production. The most significant of these is the Cosmopolitan Goldmine. Diamond drilling has started beneath this previously untested goldmine. The thir
Slide 44: Phase 3 Establishing a high grade underground Goldmine
For personal use only Phase 3 Establishing a high grade underground Goldmine Salient Points • Cosmopolitan Historical Gold production pre 1912 was 320,000 ounces of gold to a maximum depth of 340metres @ an average grade of 16g/t. • Cosmopolitan Gold Mine terminated with the onset of WW1 • Untested
Slide 45: Phase 3 Cosmopolitan Goldmine
For personal use only Phase 3 Cosmopolitan Goldmine
Slide 46: Phase 3 Establishing a high grade underground Goldmine
For personal use only Phase 3 Establishing a high grade underground Goldmine • Visible Gold and a 3metre wide quartz reef intersected in the 3rd drillhole of the drilling program at a depth of 350m approximately 70m south of the existing workings. • Diamantina historical gold calculation of 79,000t
Slide 47: Phase 3 Diamond drilling
For personal use only Phase 3 - Diamond drilling OPEN
Slide 48: Phase 3 Diamond drilling: visible gold intersected
For personal use only Phase 3 - Diamond drilling Visible gold intersected
Slide 49: Nex Metals Explorations Ltd
Explorations Ltd www.nexmetals.com
Slide 50: Orient Well Dump Leach Project
For personal use only Orient Well Dump Leach Project • Good Evening, My name is Alan Matthysen. • Previous Experience in Engineering, Construction and Mining Industry • Immigrated to Australia in July 2004 • Joined St. Ives Goldfields in Kambalda and have been involved with the St. Ives Heap operati
Slide 51: Why Dump Leaching?
For personal use only Why Dump Leaching ? • Not new technology. Dump Leaching has been around since the early 1900’s • Provides a low capital and operating cost gold process. • Used extensively in the USA, South America's, Africa and Australia • Providing recoveries as high as 80% in the correct ore
Slide 52: Why Dump Leaching?
For personal use only Why Dump Leaching ? • Orient Well is Heap Leach Suitable Ore. Presently the Orient Well laterite ore confirms recoveries exceeding 65% with the test work continuing. • Low Capital Upfront (approximately one tenth). Requires minimal infrastructure and equipment to get an operati
Slide 53: The Dump Leaching Process
For personal use only The Dump Leaching Process The easiest, most effective low cost gold treatment option Ideal for the Orient Well Ore 1. Drill and Blast the ore in the pit. 2. Load, haul and stacking directly from the pit to the leach pad, no rehandling. 3. Irrigation & Solution Management 4. Ads
Slide 54: For personal use only
For personal use only 1. Drill and Blast the ore in the pit. 3. Irrigation & Solution Management 2. Load, haul and 4. Adsorption & stacking directly Elution from the pit to the leach pad, no rehandling. 5. Pour Gold
Slide 55: The Dump Leaching Process
For personal use only The Dump Leaching Process The easiest, most effective low cost gold treatment option Ideal for the Orient Well Ore
Slide 56: Drill and Blast
For personal use only Drill and Blast • Reduce in-situ ore body to a fractured, stackable product • Cost effective as no Mechanical Crushing is required.
Slide 57: Haulage and Stacking
For personal use only Haulage and Stacking • This operation to be carried out by the use of 85 ton Dump trucks (Cat 777B) loaded by WA800 loader. • Ore tipped onto the Leach Pad, leveled and ripped by a D11 Dozer • Stack height of 10m high per lift
Slide 58: Leach Pad
For personal use only Leach Pad • Strip designated area of Top soil and Vegetation • Compact the sub-grade • Lay 300mm thick compacted clay sub-base • Overlay with 1.5mm thick HDPE liner • 150mm of compacted clay layer then added to act as a cushion layer to protect the HDPE • 300mm thick drainage l
Slide 59: Leach Pad Construction
For personal use only Leach Pad Construction Uncrushed ore Directly from pit
Slide 60: Irrigation & Solution Management
For personal use only Irrigation & Solution Management • Irrigated via Senninger Wobblers; standard spray angle, No. 10 size nozzles, 15psi regulator • Laid in 8m x 8m pattern, discharging 10.3 L/min • Solution application rate 9.66 L/hr/sqm • Irrigation via barren leach solution (BLS) • Stormwater
Slide 61: Adsorption & Elution plant
For personal use only Adsorption & Elution plant • Consists of 6 open top carbon contact columns. • Each column contains: • centrally located downcomer pipe • 4 piece bubble plate with 25 nozzles per plate. • Each contactor contains ~ 2 T of carbon. Carbon advance every 48 hours • Typical feed 0.75
Slide 62: Adsorption Circuit
For personal use only Adsorption Circuit
Slide 63: Summing up
For personal use only Summing up • Dump Leach has been a success for more than 100 years globally & recently at St Ives & Telfer. • Orient Well has excellent ore for leaching. • Kookynie Project will perform better than St Ives because of water quality and type of ore. • Low capital & operating cost
Slide 64: Disclaimer
For personal use only Disclaimer This document contains reference to certain plans of Nex Metals Explorations Ltd which may or may not be achieved. The performance and operations of Nex Metals Explorations Ltd may be influenced by a number of factors, uncertainties and contingencies many of which ar
Slide 65: Nex Metals Explorations Ltd
Explorations Ltd www.nexmetals.com
Nex Metals Explorations — Shareholder Meeting (November 2009) on 6ix