copper/gold capital growth through exploration success
DESCRIPTION
Copper/Gold Capital Growth through Exploration Success. Red Metal - Unique Market Appeal. Red Metal - Assets. Australia-wide Cu exploration alliancewith Phelps Dodge. Pipe line drill- ready targets on 33 licences 5 PD-funded J.V.’s - PowerPoint PPT PresentationTRANSCRIPT
Copper/Gold Capital Growth through
Exploration Success
Red Metal - Unique Market AppealAlliance With Phelps Dodge, world largest public trade copper
producer. Australia wide, Cu-Au exploration.
Funding Parallel exploration funding (shared risk). Increased exposure to drilling.
Projects Long pipe line of projects, ~ 24 drill tests year 1. Targeting giant Cu-Au deposits. 6 world class and proven terrains.
Discovery Free carried to decision to mine if discovery meets PDinvestment criteria.
Capital A$12M public raising for 72% equity.
Board Demonstrated expertise in exploration, developmentand public company management.
Growth Highly leveraged to exploration success.
Red Metal - Assets
• Australia-wide Cu exploration alliance
with Phelps Dodge.
• Pipe line drill- ready targets on 33 licences 5 PD-funded
J.V.’s
• Projects are hand- picked in fertile terrain's, >15,000km
• Acquired at bottom of cycle
Olympic Dam
Broken Hill
Prominent Hill
Mt Isa Ernest Henry
Browns
HYC
Century
Nifty
Base metal mines and projectsRed Metal project 100%
CaningtonOsborne
Copper mines and projects
Red Metal managed/ PD-funded J.V.
Gawler Curnamona
Mt Isa
Pine Creek
McArthur Basin
Tennant CreekTenant Creek
Exploration Strategy
• Giant high-grade, copper+gold deposits; IOCG, Mt Isa and Zambian styles. In fertile Early-Middle Proterozoic terrain's. Refined exploration models.
• Deposits containing >1 million tonnes Cu>15% IRR or greater
• Explore in covered portions of highly prospective terrain's.
• Utilise cost effective, new technology.• Undertake drill intensive programs.
• Gawler Craton Moonta J.V. Hawks Nest J.V. Peak & Denison J.V.’s
• Mt Isa Southern Isa - Elizabeth Springs Maronan Corkwood Naraku Others including NE Isa, Western Isa
• Pine Creek Browns J.V.
• Curnamona NE Broken Hill,
• McArthur Basin Urapunga
• Tennant Creek Inlier Tennant Creek Projects
Red Metal - Main Projects
Red Metal 100% Joint Ventures
Fe oxide CuAu - Geological Models
Pluton roof zones
Deep penetrating structures
Dilation zones
Magnetite-rich
Gawler - Strategy
Gawler - Regional Scale
Gawler - Peak Denison J.V.’s• Large IOCG system below
50-400m of cover. • Similar regional setting to
Olympic Dam system.• Limited previous drilling• Reprocessing and re-
interpretation of regional data complete.
• Several structure controlled magnetic and gravity targets.
• PD funding, Red Metal 18%-21% free carried to DTM.
• Drilling in 2004.
Gawler - Peak and Denison J.V.’s
Olympic Dam analogy:discordant NE trending structure,coincident magnetic and gravity,deep seated magmatic source,basement 295m
TMI
Gravity
20km
200m
200m
Basement 100m
Basement 100mRTZ
RTZ/BHPRTZ/BHP
RTZ
RTZ/BHPRTZ/BHP
RTZ
Gawler - Moonta J.V.
Moonta J.V.with Adelaide Res.
8km
• Large IOCG system under shallow cover.
• Historic Cu,Au mines.• Excellent infrastructure.• Reprocessed and re-
interpreted historic and new data.
• Initial RAB drilling completed over Moonta J.V.
• RC and DDH drill targets defined (PD spent > $A1M).
• Drilling initiated Feb 2004.• PD funding, Red Metal 21%
free carried to DTM.
TMI
Gawler - Moonta Ranking Targets
Calcrete Sampling
Gravity Surveying
Gawler - Moonta Deep Drilling
Gawler - Moonta Alford TMI/Calcrete
TMI
Ernest Henry size footprint
Target 81
Target 1Displaced copper in saprolite
Gawler - Moonta Alford Gravity/Calcrete Cu
Gravity
Ernest Henry size footprint
Target 81
Target 1Displaced copper in saprolite
Gawler - Moonta Alford Gravity/Calcrete Au
Gravity
Ernest Henry size footprint
Target 81
Target 1Displaced copper in saprolite
Mt Isa - Regional Scale• Red Metal acquired 100%• Fertile terrain• Re-interpretation of data • Buried geophysical drill
targets with potential for a giant FeOx Cu-Au deposit.
• Public funds raised used to drill test and generate new plays.
• PD retain claw back option up to 70% of major discovery. Red Metal free carried 30-40% to DTM
Mt Isa - Regional Scale• Red Metal acquired 100%• Fertile terrain• Re-interpretation of data • Buried geophysical drill
targets with potential for a giant FeOx Cu-Au deposit.
• Public funds raised used to drill test and generate new plays.
• PD retain claw back option up to 70% of major discovery. Red Metal free carried 30-40% to DTM
Mt Isa - Elizabeth Springs Projects
3D Gravity Model
Mt Isa - Maronan Project
Mt Isa - Corkwood Projects
UntestedUntested MagneticMagneticTargetsTargets
Drill hole withDrill hole with210m @ 0.3% Cu210m @ 0.3% Cu0.2g/t Au0.2g/t Au
TMI Vertical Gradient Magnetics
10km 10km
Mt Isa - Naraku Projects
Tennant Creek - New Project Areas
TMI
>50% exposure
Interpreted deep seated oxidised intrusive plutons
Pine Creek - Browns Geology
Pine Creek - Browns J.V. Concept • Compass/Guardian• Mt Isa or Zambian style
Cu-Co target at depth below known Browns Pb-Co-Cu resource.
• Detailed gravity survey indicates anomalous mass is synclinal axis.
• Drilling soon after listing• PD funded, Red Metal
21% free carried to DTM
Pine Creek - Browns Longitudinal Section
Pine Creek - Browns Residual Gravity
Pine Creek - Browns Gravity and TMI Model
Poor fit
Dense corePoor fit
Dense coreDense keelGood fit
MagneticTarget
Magnetic Model
Gravity Model 3
Gravity Model 2
Gravity Model 1
Pine Creek - Browns Drill Hole in Progress
Preliminary Interpretation
Bas
emen
t
Current hole 03BD03
?
?
?
?
Pelit
es
?
?
Fault zone @ 1055m
?
Marble
Am
phib
olite
Ore
Sha
le
Browns PbCoCuResource
?
Inferred TargetZone
?-400 mN
400 mN
?
Curnamona - NE Broken Hill Project• Tenement adjacent to
Broken Hill Mine• Targets - Mt Isa style Cu,
Strataform styles of Pb-Zn-Ag.
• 2 significant Falcon Gravity anomalies
• Anomalous bedrock Cu surrounding magnetic target
• Red Metal 100% or free carried 30-40% to DTM if PD clawback
• Drilling 2004
Curnamona - Northeast Broken Hill Section
NE Broken Hill Project
Mine Horizon
Broken Hill Mine282.5 Mt @ 12.4% Zn, 5.8% Pb, 115.5g/t Ag
Gravity anomaliesPossibly sourced fromshallow Mine Horizon ?
~ 2km
McArthur Basin - Urapunga Projects
• Fertile terrain• Right stratigraphy• Basement high• Structural antiform• Crustal scale faults• Known stratabound and
epigenetic Cu,Pb,Zn• Proposed airborne TEM
program• Access issues• Red Metal 100% or free
carried 30-40% to DTM if PD clawback Cannington
Mt Isa
Lorretta
Walford
Century
McArthur
Airborne TEM
Copper - Good Time to Make Discovery
Chinese Refined Copper Consumption
0
500
1,000
1,500
2,000
2,500
3,000
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002
Thou
sand
Ton
s
Source: WBMS
Increased copper consumption in China, improved economic conditions in USA and Japan predicted to result in copper supply deficit and increase Cu prices.
Red Metal - Drilling Schedule
Olympic Dam
Broken Hill
Prominent Hill
Mt Isa Ernest Henry
Browns
HYC
Century
Nifty
Base metal mines and projectsRed Metal project 100%
CaningtonOsborne
Copper mines and projects
Red Metal managed/ PD-funded J.V.
Gawler Curnamona
Mt Isa
Pine Creek
McArthur Basin
Tennant CreekTenant Creek
• List Sept. 2003
• Q4 2003 Browns Moonta Hawks Nest
• First half 2004 Browns J.V. Moonta J.V. Elizabeth Springs NE Broken Hill Maronan Isa - Others
• >24 Drill targets in year 1