investor presentation - apr 2012 final · 1 april 2012 investor presentation lumwana west, zambia...
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APRIL 2012
INVESTOR PRESENTATIONLumwana West, Zambia
Argonaut Resources NL │ Suite 4, Level 9, 341 George St, Sydney │ phone (02) 9299 9690 │ fax (02) 9299 9629
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This presentation contains certain statements which may constitute "forward‐looking statements". Such statements are only predictions and are subject to inherent risks and uncertainties which could cause actual values, results, performance or achievements to differ materially from those expressed, implied or projected in any forward‐looking statements. No representation or warranty, express or implied, is made by Argonaut Resources NL that the material contained in this presentation will be achieved or prove to be correct.
Except for statutory liability which cannot be excluded, each of Argonaut Resources NL, its officers, employees and advisers expressly disclaims any responsibility for the accuracy or completeness of the material contained in this presentation and excludes all liability whatsoever (including in negligence) for any loss or damage which may be suffered by any person as a consequence of any information in this presentation or any error or omission there from.
Argonaut Resources NL accepts no responsibility to update any person regarding any inaccuracy, omission or change in information in this presentation or any other information made available to a person nor any obligation to furnish the person with any further information. Investment in Argonaut Resources NL should be considered speculative.
Sections of information contained in this report that relate to Exploration Results and Mineral Resources were complied or supervised by Mr Lindsay Owler BSc, MAusIMM who is a Member of the Australasian Institute of Mining and Metallurgy and is a full time employee of Argonaut Resources NL. Mr Owler has sufficient experience which is relevant to the style of mineral deposits under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 edition of the “Australasian Code for Reporting of Mineral Resources and Ore Reserves”. Mr Owler consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.
DISCLAIMER & COMPETENT PERSON’S STATEMENT
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As at 26 April 2012:
Market Cap: AUD 14 millionCash: AUD 7.5 millionInvestments: AUD 5 million
Issued Shares: 253,376,470
Current Cash Resources
Cash available: $3.5 millionAdditional cash: $4.0 million by 4 May 2012No debt
Investments
16.7m Cuesta Coal Ltd shares26.6m Cuesta Coal Ltd options2.5m Musgrave Mineral Ltd shares
Board of DirectorsPatrick J.D. Elliott Non‐exec ChairmanAn investment banker who has 40 years experience in financial management and resource investment and development.
Lindsay J. Owler Exploration DirectorA geologist and geophysicist with 18 years experience in mineral exploration and development.
Andrew W. Bursill Director/SecretaryAndrew is a chartered accountant with more than 10 years experience as a Director and Company Secretary of numerous publicly listed entities.
Malcolm Richmond Non‐exec DirectorA metallurgist and economist with extensive senior executive and board experience in the resource and technology industries
CORPORATE INFORMATION
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• Potential for world‐class, bulk tonnage deposit
• Strong initial drill intercepts
• 13 kilometres of potentially mineralised shear‐zone to explore
• Mineralisation intercepted to 400+ metres
• Numerous peripheral exploration targets
• ‘Domes Region’ of the Central African Copperbeltis host to the new generation of Zambian mines
• Strong cash and investment position
• No debt
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INVESTMENT HIGHLIGHTS – LUMWANA WEST
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• Host to the Central African Copperbelt
• Africa’s largest copper producer and 8th largest in the world (2009)
• 2011 copper production estimated to reach 730,000tpa
• Zambian copper production estimated to exceed 1.5mtpa by 2016
• New generation of deposits in Domes Region fuelling production growth
• Excellent Copper/Cobalt exploration targets at Lumwana West
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COPPER MINING IN ZAMBIA
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• The Domes Region within the Copperbelt is host to the significant, new Zambian copper mines
• Deposits in the Domes Region represent the ‘new generation’ of deposits in the Copperbelt
• The Mwombezhi Dome comprises two NE‐SW trending inliers and is one of several domes
• Significant mines in the region include:
1. Lumwana, Barrick – 900Mt at 0.7% Cu acquired via $7.8 billion takeover of Equinox
2. Kansanshi, First Quantum – 500Mt at 1% Cu
3. Trident, First Quantum –150‐300k tpaproduction from 2016, acquired via $260 million Kiwara takeover
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DOMES REGION, CENTRAL AFRICAN COPPERBELT
The Domes Region, Central African Copperbelt
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NYUNGUDevelopment
Target
NYUNGUDevelopment
Target
ZNS Prospect
ZNS Prospect
KavipopoProspectKavipopoProspect
LumwanaTownship Prospect
LumwanaTownship Prospect
MWOMBEZHI DOME – TARGETS AND DEPOSITS
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8km
LUMWANA WEST TARGETS
LumwanaTownship Prospect
LumwanaTownship Prospect
NYUNGUDevelopment
Target
NYUNGUDevelopment
Target
ZNS Prospect
ZNS Prospect
KavipopoProspectKavipopoProspect
RTP aeromagnetic imagewith >20ppm copper in historical soil samples
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• 176m at 0.55% copper and 0.04% cobalt from 51m in drill hole NYU11RD010
• 31m at 1.57% copper and 0.02% cobalt from 173m
• and 6m at 5.51% copperand 0.7% cobalt and 0.3g/t gold from 174m in drill hole NYU11RD021
• 90m at 0.46% copper and 0.7% cobalt from 12m in drill hole NYU11RD022
• 59m at 0.49% copper and 0.02% cobalt from 8m in drill hole NYU11RD023
NYUNGU DRILL INTERCEPTS: SEPT ‐ NOV 2011
A A’
RTP aeromagnetic image
400m
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A A’
NYUNGU DRILL INTERCEPTS: SEPT ‐ NOV 2011
Section N8,630,415
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Nyungu North: 2012 exploration target
Nyungu North: 2012 exploration target
• Excellent exploration potential
• 13km of potentially mineralised shear‐zone
• Intercepts up to 175m at depths to 430m
• Potential for bulk tonnage, low/medium grade deposit
2012 Exploration Program
• Soil geochem and Induced Potential (IP) geophysics over:
• Nyungu South and
• Nyungu North
• Drill north/south strike extensions
• Aggressive step outs
Nyungu Central:Development target
Nyungu Central:Development target
3.5km
5.5km
4km
Nyungu South:2012 exploration target
Nyungu South:2012 exploration target
NYUNGU SHEAR ZONE
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16121‐HQ‐LPL approved and registered in July 2011
JVA signed late July 2011
Drilling commenced early September 2011
Argonaut holds 80% of Lumwana West Resources Ltd
Under the JVA, Lumwana West can earn up to 85% over three phases of exploration
Phase One (51%): $1.8m in exploration works plus $300,000 signing fee
Phase Two (75%): $2.4m in exploration works plus $600,000 instalment
Phase Three (85%): Feasibility Study plus $1.1m final payment
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LUMWANA WEST JOINT VENTURE
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KIWARA HISTORY:• Commenced work on Trident project
in 2007/08
• Initial intercepts similar to Nyungu
• Drilling progressed through 2008/09
• Achieved 340 million tonnes at 0.72% copper in October 2009
• First Quantum Minerals (FQM) bid cash and shares to the value of 75p per Kiwara share in November 2009
• Buyout worth $260 million
• Takeover finalised in February 2010 i.e. during the GFC
TRIDENT /NYUNGU COMPARISON:• Also located in the Domes Region
• The copper mineralisation is low grade with cobalt credits (plus nickel in the case of Trident, gold in case of Nyungu)
• Similar initial drill results to Nyungu
• Nyungu intercepts are thicker
• Kalumbila’s grades are higher
• Kiwara focused on 4km of strike and achieved 340 million tonnes at 0.72% copper
• Nyungu and Trident can both be compared to Barrick’s Lumwana mine and FQM’s Kansanshi mine
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ZAMBIAN CASE STUDY: KIWARA PLC
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Area Activity Timing
Nyungu CentralAssessment of resultsLithogeochemistry studyFurther drilling
NowMay 2012July 2012
Nyungu SouthDetailed soil geochem.IP surveyDrilling
NowNowJuly 2012
Nyungu NorthDetailed soil geochem.IP surveyDrilling
May 2012May 2012August/Sept 2012
Regional ProspectsSoil geochemistryIP surveys
June 2012 (TBC)Contingent on geochemistry
EXPLORATION ACTIVITY
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