issue 148 4th december, 2013

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ISSUE 148 4th December, 2013

Are we back to the days of geologists and internet start-ups?

There’s an interesting comparison at present between the malaise within the resource sector and high-

flying components within the industrial sector. This is particularly noticeable in the IPO space. There are just

three resources IPOs amongst the list of 27 upcoming floats currently on the ASX website.

The ‘tech’ sector has seemingly attracted a lot of the speculative money that would naturally find a home in

the resource sector - and the stag profits that these opportunities have generated for speculators means

things aren’t likely to change any time soon (until the fad runs out of steam).

Of course, anyone who’s been around the resource sector a while has seen this all before. I clearly recall

the ‘dot-com boom’ during the period from 1995 – 2000, where seemingly every second junior exploration

company elected to reinvent itself as an IT play as a crude, short-term means of survival.

One of the most dismal pictures I’ve ever had to witness was that of life-long mining and exploration

industry veterans with decades’ worth of experience, walking into my broking office to try and explain their

dot-com start-up business, with no concept of how they were ever going to be successful, attract sales or

generate earnings. To make matters worse, they couldn’t even get their laptops to work!

All that happened was that a bunch of brokers and pimply-faced vendor computer geeks got rich (mostly on

paper) for a while, until the whole house of cards (inevitably) collapsed. And given the situation we’re

seeing now in the tech space, it’s almost a certainty that we’re witnessing the beginnings of the next tech

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debacle. Investors (or more accurately ‘punters’) are happy to back the latest high-priced offerings, without

any real clarity around how earnings will be generated. Just like the 1990s all over again.

The upside out of all this however is that it demonstrates clearly that there is speculative and risk

capital returning to the market - and over time it should start to find its way into the resources

sector once more.

One of the biggest problems facing the resources sector is the massive oversupply of listed entities. We

certainly don’t need +900 listed resource companies on the ASX, as the quality of project and management

simply isn’t there. All that’s happening is that the better quality companies are trying very hard to

differentiate themselves from the hundreds of penny dreadful that have no real projects and are most likely

saddled with management and boards that are more interested in a ‘lifestyle’ than anything else.

To be brutally honest, there are probably 400 to 500 too-many listed resource companies at the present

time – and these companies should either merge or disappear – for the sake of investors and the sector.

The average cost of maintaining an average exploration company is probably around $1 million annually, so

there is a vast swathe of shareholder funds that are simply being wasted just keeping the lights on.

What’s frustrating from my perspective is the lack of corporate (merger) activity amongst the hundreds of

penny dreadful, including a lack of introduction of new project opportunities. In many instances these

resource ‘shells’ believe they are worth a hell of a lot more than they actually are.

Many of these junior companies have cut back on virtually all exploration activity as a strategy of

‘conserving shareholder funds,’ which really isn’t a strategy at all. A company that’s maintaining an

office but no tangible exploration activity is giving its shareholders no rational reason to hold their

stock.

What the junior sector needs is a wholesale cleanout, by way of mergers, de-listings, insolvencies and

backdoor listings. Whilst things aren’t necessarily going to get better any time soon, those of us that have

been around the sector for a while (and have a bit of grey hair) know that this is a process that the resource

sector regularly goes through and will ultimately lead to a better performing industry.

As we’ve said previously, the one certainty about the resource cycle is that it repeats itself. Production falls,

new projects are delayed, and the exploration pipeline of potential new projects is cut to a minimum. Global

growth then starts to recover (which is what we’re witnessing now), with better indications out of China, the

US and Europe.

The net result will inevitably be that shortages of some metals and minerals will start to occur, prices will be

driven upwards once again, and funds will start to become available for new mine development. The

downsized miners will be leaner and more efficient exploration will start to pick up again – all preparing the

way for another cyclical peak some years ahead.

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Emmerson Resources (ERM) – Maintain Spec Buy around $0.045

Advanced explorer with an excellent technical pedigree that’s pursuing aggressive exploration work on its

Tennant Creek acreage package within the NT. It recently regained 100% control of all its project acreage.

Corporate Details

Status: Advanced Explorer

Size: Small Cap

Commodity Exposure: Gold

Share Price: $0.045

12-month Range: $0.032 - $0.12

Shares: 262m, Options: 3.6m

Top 20: 61%

Net Cash: $1.9m

Market Value: $12m

Key Parameters Rating (out of 5)Quarterly Statistics

Management Quality Q3 2013 Exploration Spend: $0.451m

Financial Security Q3 2013 Admin Spend: $0.231m

Project Quality Exploration Spend 66%, Admin Spend 34%

Exploration / Resource Potential Q4 2013 Forecast Exploration Spend: $0.4m

Project Risk Q4 2013 Forecast Admin. Spend: $0.25m

We introduced Emmerson Resources to our Portfolio during December 2010 with a Speculative Buy

recommendation around $0.13, based on our long-standing belief in the company’s high-grade gold-

copper Tennant Creek acreage within the Northern Territory. We locked in some profit with a Sell Half

recommendation around $0.245 during December 2011, but we retain confidence in the company’s

ability to ‘crack the code’ with respect to Tennant Creek and move towards commercial production.

One of the company’s biggest attractions has been technological. Emmerson utilises a technique that is

able to clearly identify fresh gold-copper targets that have a strong chance of being mineralised. Within the

Tennant Creek context this means the identification of mineralisation-bearing host ironstones. The

company’s HeliTEM surveys have also highlighted extensions to prospective mine corridors, extending

mineralized trends well outside the areas defined by magnetic surveying alone, providing enormous upside.

We retain strong confidence in the gold-copper potential within Tennant Creek, particularly in terms of

the company’s production ambitions. Given Emmerson’s ownership of the old Warrego treatment

plant, it should comfortably transition to production status at a reasonably modest cost at some stage

over the next couple of years, as the resource base grows. Meanwhile, solid exploration results are

being generated from ongoing field-work that is further enhancing the broader geological understanding.

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Recent Activity

Emmerson has announced outstanding results from the recently completed Mineral Resource Estimation at

its Tennant Creek project. A total of 99,000 ounces of high-grade JORC gold resources have been added

since the last substantial upgrade announced during October 2013. This takes the global mineral resources

to 6.79 Mt at 3.6g/t gold-equivalent for 900,000 gold-equivalent ounces and provides an early source of

high-grade ore to the company’s Warrego CIP mill. JORC-compliant Gold Resources have increased by

70% to 246,000 ounces of gold.

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Technical Significance

The new Chariot mine plan consists of an enlarged open-pit that extracts more than 40,000 ounces of gold

at a grade of 17.7g/t, and then contemplates reconnecting to the existing underground development to

extract a further 58,000 ounces at a grade of 17.2g/t gold. There remains excellent potential to greatly

expand both the open pit and underground resources, as both remain open in most directions.

The company’s next drilling program, planned for early 2014 (immediately following the wet season) will

focus on the Chariot East and West Targets, where approximately 1,200 metres of RC drilling is planned to

test for shallow, high-grade supergene gold. This program has the potential to further rapidly expand the

resource base and add to the high-grade ounces within an even larger open-pit.

Furthermore, given the company’s recent HeliTEM survey over the entire “wine line” structure, there is also

excitement surrounding the ‘brownfields’ potential, particularly at areas such as Mondeuse - where historic

drilling intersected 7 metres at 2.55% copper, Analytic – 3 metres at 40.7g/t gold and West Gibbet – 13

metres at 66.9g/t gold and 4 metres at 50.3g/t gold).

This area hosts excellent infrastructure, with an existing haul road connecting to the Warrego Mill, is within

granted Mining Leases and cleared for drilling by the Traditional Owners/CLC. Furthermore, there is

excellent potential to rapidly grow the copper-gold resource at the new Goanna discovery, as the

mineralization remains open both along-strike and down-plunge.

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Project Background

The Chariot deposit was discovered by Normandy Mining in 1998 and lies 10km west of the Tennant Creek

town site and 36km southeast of the Warrego mill. The Chariot Mine operated from 2003 – 2005 and

produced 271,597t @ 10.83g/t gold for 94,600 ounces of contained gold from both open-cut and

underground mining. The mine was closed during 2005 due to Giants Reef Mining (the then mine owner)

entering administration.

The mineralisation at Chariot is gold dominant, with minor to subordinate copper and bismuth hosted by

magnetite-hematite-chlorite rock. The mineralisation is interpreted to be structurally controlled and occurs in

numerous lenses or shoots. The Mineral Resource Estimation includes the remnant resources located

immediately below the existing open-pit, accessible through a cutback.

Given the rapidly expanding resource inventory, Emmerson have engaged Optiro to commence a

conceptual financial model ahead of a detailed scoping study. The model will take into account the costs of

refurbishing the company’s 100%-owned CIP mill, the established underground and open-pit infrastructure

at Goanna, Gecko, Orlando and Chariot, plus the proximity to power, rail, water and amenities at the

township of Tennant Creek.

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Tennant Creek Background

The Tennant Creek Mineral Field (TCMF) is one of Australia’s most prolific gold-copper districts, having

produced more than 5.5M oz of gold and 470,000 tonnes of copper from a variety of deposits - including

Gecko, Orlando, Warrego, White Devil, Chariot and Golden Forty - all of which are situated within

Emmerson’s project portfolio.

Emmerson maintains 2,800 sq

km of project area within the

TCMF, owns the only gold mill

within the region, and also

maintains an extensive

geological database. The

company has managed to

consolidate 95% of the highly

prospective TCMF, where

incidentally just 8% of the

historical drilling has penetrated

below 150 metres depth.

Emmerson is utilising new, high-

technology search techniques to

explore the TCMF and during late 2011 identified two high-grade discoveries - Goanna and Monitor - which

are particularly interesting as they represent a new style of mineralisation undetected by previous explorers.

The discoveries lie close to the underground mine development at the historic Gecko deposit.

Emmerson has firstly established and subsequently enhanced its resource inventory ahead of an eventual

transition to mining and commercial gold production. So far, detailed analysis and additional drilling has

been completed on the Gecko and Orlando discoveries, with substantial resources outlined. Further

brownfields exploration will continue throughout the remainder of 2013 and into 2014.

The company has recently regained a 100% stake in all its Tennant Creek acreage following the withdrawal

of Inova Resources (formerly Ivanhoe Australia) from the prior joint venture within Emmerson. Inova had

ongoing issues regarding its ownership and its withdrawal provides a much clearer pathway for Emmerson.

Summary

Emmerson remains a modestly-valued, hugely prospective exploration play that will continue to

generate strong news flow on both the project exploration and appraisal fronts. The recently

announced resource increase is enormously encouraging and positions the company well for an

eventual transition to production status over the coming years. Now is therefore the right time to

enhance our position, particularly given current low share price levels – so we maintain our

Speculative Buy recommendation on Emmerson Resources around $0.045.

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Gold Road Resources (GOR) – Maintain Spec Buy around $0.09

Advanced gold explorer that’s aggressively evaluating the gold potential of its large-scale Yamarna regional

project in Western Australia. The company is enjoying particular success with its regional program.

Corporate Details

Status: Emerging Producer

Size: Small Cap


Share Price: $0.09

12-month Range: $0.034 - $0.15

Shares: 456m, Options: 12m

Top 20: 33%

Net Cash: $7m

Market Value: $41m







We introduced Gold Road Resources to our Portfolio back in December 2010 with a Speculative Buy

recommendation around $0.38 and we recommended that shareholders take up their SPP entitlement

at $0.11 during January 2013, whilst also recommending the stock to new investors as a Speculative

Buy around similar price levels. We’ve also taken advantage of recent market weakness to purchase

additional stock between $0.064 and $0.087.

My overall confidence in the Gold Road story is based upon the ‘big picture’ potential for its Yamarna

project to host a multi-million ounce gold belt. Importantly too, the grades and widths being generated

are amongst the best seen in an Australian gold project for several decades. What makes Gold Road’s

exploration achievements even more notable is that they have taken place against a background of

relative mediocrity in terms of grassroots exploration discoveries within the Australian gold sector.

Given the vast sums of exploration dollars that have been raised and pumped into the ground by gold

exploration companies over the past decade, there isn’t a huge lot to show for it in terms of

‘greenfields’ gold discoveries – with Gold Road’s Yamarna project and Independence/Anglogold’s

Tropicana project providing the notable exceptions. The company is beginning to generate strong

market recognition on the back of its recent regional exploration success.

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Recent Activity

The company has announced that assay results from the first hole of ongoing extensional RC drilling

at its new Gruyere prospect within the Dorothy Hills Trend, has confirmed that gold mineralisation

extends to the north for an additional 200 metres beyond previous drilling.

During November, the

company commenced a

program of step-out RC

drilling aiming at

delineating potential strike

extensions to the Gruyere

prospect, focusing on the

northern extension of

previously announced

wide mineralization (refer

to our prior coverage of

Gold Road).

Drilling of two step-out

sections 200 metres north

(Section H) and 300

metres north (Section I) of

previous RC drilling was

completed, comprising 11

RC holes for a total of

1,328 metres. The host

Gruyere Intrusive was

intersected at

approximately 120 metres

horizontal width on both

sections.

Additional RC drilling is in

progress and will step-out

a further 300 metres to the

north and then infill the

original discovery area to

consistent 100-metre spaced sections. Additional air-core drilling has also commenced scoping the

extent of the Gruyere Intrusive along a 2km trend to the north of planned RC drilling.

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Previous RC drilling at Gruyere had defined a mineralised trend of 800 metres strike length and up to

180 metres horizontal width within the Gruyere Intrusive body. This mineralization remained open

along strike to both the north and south, and at depth.

Drilling on step-out Section H (200 metres to the north of previous drilling) was completed, with seven

holes for 764 metres identifying an additional 200-metre extension to the Gruyere Intrusive at a

horizontal width of between 120 to 150 metres. Step-out Section I (100 metres north of H) has also

been completed, with four holes (564 metres) also successfully intersecting the Intrusive and defining

a horizontal width of between 110 to 120 metres.

Drilling on both sections intersected pervasive silica-albite-pyrite alteration as logged in RC drilling

chips, similar to previously intersected to the south in the Gruyere discovery area. An intermediate

volcanic sequence has been intersected to the west of the Intrusive body and mafic volcanics (basalt)

to the east, consistent with the existing Gruyere interpretation.

The Gruyere discovery has grown rapidly in size to 1.1km in strike length with in a very short

timeframe and is still growing. It has real potential to develop into a bulk-mining opportunity,

given its horizontal width, consistent mineralisation and shallow depth. The mineralisation at

Gruyere is a style that’s completely new to the Yamarna Belt and unusual even in the Yilgarn

context in Western Australia.

Drilling has now moved back to the main Gruyere discovery area for a short period to extend

previously drilled sections to the east and west. A new step-out line (Section L) approximately 300

metres north of Section I is being prepared for drilling, which is expected to start during the first week

of December. If successful, it will define a 1,400-metre strike on the Gruyere prospect.

A 3,500-metre air-core drilling program has also commenced with the aim of defining further

extensions of the Intrusive to the north and north-east of the current Gruyere footprint. Positive

indications of the host intrusive will be immediately followed up with RC drilling, which will test the

strike extent of the Gruyere trend for an additional 2,000 to 2,500 metres north of the current limits of

RC drilling.

Yamarna Project Background

The company’s acreage position encompasses more than 5,000 sq km of the Yamarna greenstone

belt, situated 150km east of Laverton on the eastern edge of the Yilgarn Craton. The Yamarna belt lies

adjacent to the 500km-long Yamarna shear zone and north of the developing +5-million ounce

Tropicana deposit, jointly-owned by AngloGold-Ashanti/Independence Group. Although it was

discovered during the 1990s, Yamarna’s relative remoteness 870km from Perth and its abundant

surface cover means it is one of the most underexplored greenstone belts within Western Australia.

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The Yamarna Belt has been identified by the Geological Society of Western Australia as sharing

the same age and characteristics as the prolific Kalgoorlie Belt, so the same gold exploration

techniques that proved effective in Kalgoorlie may also prove effective for Yamarna. Past gold

production from the Kalgoorlie greenstone belt exceeds 120 million ounces and it continues to

deliver new discoveries 130 years later.

Importantly, Gold Road is the only company to have consolidated tenements and conducted

systematic exploration within the Yamarna Belt. With only a small proportion of the belt having so far

received detailed exploration, the company has made 13 new gold discoveries since 2009, established

a pipeline of more than 100 targets and compiled a JORC-compliant Resource comprising more than

1.2 million ounces of gold.

Exploration is focused on increasing confidence and expanding the resource of the advanced projects,

whilst also searching for more new gold discoveries. Meeting its target of 150,000 metres of drilling

during calendar 2012, around one-third of the total metres drilled (two-thirds of the budget) was

focused on further proving the company’s advanced projects, whilst two-thirds was spent on on

establishing new gold prospects. The company is prioritising projects and allocating drill rigs and

resources to the key projects, with the aim of advancing projects into the JORC Resource category.

Regional Exploration Excitement

Gold Road has undertaken extensive work since 2012 across its Yamarna tenements, resulting in a

predictive geological model that has highlighted areas within the tenements with the greatest potential

of hosting large gold deposits. This process utilized regional targeting tools using conceptual models

that interpreted various geological and geophysical data sets, including gravity, magnetic and

geological images.

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The result was the

identification of numerous

“Gold Camp Scale Targets”

across the tenements - each

target with a 15km ‐ 20km

strike length and approximately

80 – 100 sq km in area and

containing numerous gold

prospects. During June 2013

the company completed the

third regional targeting

exercise, utilising Reduction

Oxidation Analysis (Redox),

which identified 15 regional

targets, the majority of which

were associated with the Gold

Camp Scale Targets identified

during the course of 2012.

Analysis of existing geophysical

data (aeromagnetic) and sparse

geochemical data suggests

potential for a repeat unit of the

intrusive to continue to the north

and east providing a potential

parallel zone. Drilling will be

undertaken to test the extent of

the intrusive footprint to the north

and east of the Gruyere target.

A combination of gold and multi‐element assays would be utilised to identify further occurrences of the

similar intrusive now recognised as the host at Gruyere. Positive identification of further anomalously

mineralised intrusive rocks would open up considerable additional exploration potential in this new

mineralised belt.

Corporate Partnership - Sumitomo Metals

Gold Road has also secured a major exploration joint venture agreement with Sumitomo Metals

coverings 2,720 sq of its ~5,000 sq km project acreage at Yamarna. Sumitomo can earn up to a 50%

interest in Gold Road’s South Yamarna tenements by spending up to $8 million on exploration by 31

December 2016, with a minimum spend of $3.5 million prior to the end of 2014.

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Through this joint venture the company has made a conscious decision to bring forward the testing of

some of the exploration targets on the southern portion of the Yamarna Greenstone Belt by several

years in order to give them the near-term attention they deserve. Sumitomo and Gold Road have

agreed a budget of $1.75 million during 2013 for a program comprising surface geochemical sampling

and HeliSAM surveys, followed by 15,000 metres of RAB/air-core drilling

Established JORC Resource - Central Bore & Atilla Trends

Gold Road has previously progressed exploration on two key gold trends, together with two recently

discovered trends, within the Yamarna Belt. The first comprises the Attila Trend that extends for more

than 33km and hosts a significant JORC-compliant resource; whilst the second comprises the Central

Bore Trend, an area east of the southern extent of the Attila Trend which has delivered six new

discoveries in 24 months and hosts a significant JORC resource.

During the March 2013 quarter, the company announced an upgraded Mineral Resource Estimate for

the combined Central Bore Project comprising 813,900 tonnes at 7.7 g/t Au for a total of 201,100

ounces. This represents a 32% increase in total ounces, along with a 134% increase in ounces in the

Measured category and a 407% increase in ounces within the Inferred category.

Encouraging Scoping Study Results

The Scoping Study for Attila and Central Bore was completed during September 2012 by Optiro Pty

Limited and confirmed the economic viability of the projects. The production scenario has been further

enhanced with the announcement of results earlier this year from ore processing studies that have

confirmed the viability of an even smaller, 100,000tpa high-grade underground mining operation at

Central Bore, with total gold production of around 35,000 ounces per annum. Production could be

accelerated by ~6 months and pay-back could be achieved within 12 months.

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The original Scoping Study was based on a processing throughput of 400ktpa via a conventional CIL

plant, with blended feed material from both the high-grade Central Bore underground mining operation

and the lower-grade Attila and Alaric open-pit mining operations. A review of the outcomes however

highlighted the difference in operating costs of the underground versus open-pit mines, along with the

increased project and funding risk from including the relatively lower-grade/higher-cost open-pit ore.

The company had previously commissioned investigations into smaller-sized processing plant options

(fed only from the Central Bore underground mining operation) and a number of engineering firms

have provided detailed quotations for both the capital expenditure and operating expenditure

requirements for the smaller 100ktpa modular processing plant option. These quotes range from $18 -

$20 million for the processing plant and $80/t - $100/t in plant operating expenditure. The lower-cost

option is more attractive in the current environment.

The company had previously stated that the Pre‐feasibility Study would be completed by the end of

June 2013, however the decision has been made to defer completion of the Pre‐feasibility Study until

mining costs settle and can materially improve the economics of the Central Bore development.

Summary

The company’s regional targeting strategy, aimed at trying to discover multi-million ounce

deposits, has highlighted both the Gruyere and YAM14 targets along with around another 40

priority structural and Redox targets within its 5,000 sq km tenement holdings. Both Gruyere

and YAM14 are the first targets at the Dorothy Hills trend to be RC drill-tested. I am enormously

encouraged by the solid RC results so far achieved.

We already have a strong existing Portfolio exposure, but I am happy to reiterate our Spec Buy

recommendation around current price levels of $0.09. Managing Director Ian Murray is currently

attending Mines & Money in London, so there could be further market momentum following an

Eastern States investor road-show last week.

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Artemis Resources (ARV) – Maintain Spec Buy around $0.004

An emerging gold explorer with exposure to various interesting exploration projects in Western Australia.

Current activity is focused on the Eastern Hills antimony-lead deposit, where drilling is about to commence.

Corporate Details

Status: Grassroots Explorer

Size: Small Cap


Share Price: $0.004

12-month Range: $0.004 – $0.024

Shares: 744m, Options: 275m

Top 20: 55%

Net Cash: $1.3m

Market Value: $3m







Artemis Resources represents a promising grassroots exploration opportunity, primarily because of its

strategically located Yandal and Mount Clement gold projects in Western Australia, combined with a

modest market value. We initially introduced Artemis Resources into our Portfolio with a Speculative Buy

recommendation around $0.068 during January 2011. Like most junior explorers the company has suffered

from ‘the flight from risk’ within the Australian sharemarket over the past couple of years.

The company’s flagship project at present is its Mt Clement Eastern Hills Antimony Project. The Eastern

Hills prospect was originally drilled by BHP during the mid 1970s with a single drill hole as part of a broader

gold exploration program at its Mt Clement gold deposit. During the mid 1990s, ASX-listed Taipan

Resources defined a zone of lead-antimony (Pb-Sb) mineralisation based on 19 RC holes. More recently,

stronger antimony prices have led to a reevaluation of the project’s resource potential.

A review of historical exploration at Eastern Hills suggests there was potential for an initial Exploration

Target in the range of 410,000 to 1,250,000 tonnes at a grade range of 1.5% - 1.9% Sb and 2.1% - 2.4%

Pb. Artemis has subsequently undertaken focused exploration activity during the course of the second half

of 2013, with the aim of confirming the Exploration Target and upgrading it to JORC-compliant resource

status. It has managed to do so successfully, as well as expand mineralisation down-dip and along strike.

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Recent Activity

Artemis has achieved a significant milestone by releasing its maiden JORC-compliant Mineral Resource

estimate for its Eastern Hills Antimony-Lead Project in the Ashburton region of Western Australia. The

resource is based upon results from the recently completed RC drilling program.

The combined Indicated and Inferred resource comprises 1.3 million tonnes at 1.7% Sb (antimony) and

2.5% Pb (lead). Importantly, the higher-confidence Indicated resource category has returned higher grades

than expected with respect to antimony (2.0%), lead (3.1%) and gold (0.41g/t) compared to the company’s

Exploration Target estimated earlier this year.


The RC drilling program set the scene for the sizeable initial resource estimate, as the results confirmed the

validity of the antimony-lead mineralisation model at Eastern Hills, as comprising vein-hosted massive

sulphides bounded by a broader zone of disseminated sulphides. The program also confirmed the

extension of the Eastern Hills antimony-lead mineralisation along strike and down-dip.

Importantly too, the company has met its timetable with respect to announcing its initial JORC resource

estimate. The resource estimate includes mineralisation from the Taipan Zone only, with drill-testing of the

recently identified high-grade Dugite Zone (up to 35.7% Sb, 29% Pb, 1335g/t Ag and 3.36g/t Au),

scheduled for the 2014 field season.

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Encouragingly from a confidence point of view, more than 70% of the Total Mineral Resource is contained

within the Indicated category. The remaining 29% of the resource estimate is within the Inferred category,

highlighting the potential for mineralisation to continue at depth.

The exploration target has been defined over a 600-metre strike length in what is now thought to be a

mineralised system of at least 1km in strike length and which is also open at depth. The current exploration

target does not take into account new zones with a combined prospective strike length of 2.8km. Detailed

studies have yet to be completed to assess the viability of economically extracting and processing the

Eastern Hills Mineral Resource, however the Resource estimate will form the basis of a Scoping Study that

is scheduled for early 2014.

Based on current commodity prices of $7,000/t copper and $10,000/t antimony, antimony grades of

2-3% are equivalent to 3-4.5% Cu - or around 6/g/t Au in gold-equivalent terms.

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Summary

Artemis’ first drilling program at Eastern Hills has generated highly encouraging exploration results

that have provided the basis for a solid initial JORC resource estimate, as well as confirming the

company’s geological model. Artemis is now well on track to extend the Eastern Hills antimony-lead

mineralization. Recent follow-up work has been completed, including a field campaign to further

map and sample new zones identified adjacent to the Taipan Zone (including the high-grade Dugite

Zone). Results of this work will lead to drill target generation for potential resource expansion,

whilst a scoping study to assess the economic parameters around the deposit is scheduled for

early 2014. We are therefore happy maintaining our Spec Buy recommendation on Artemis

Resources around $0.004.

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Disclaimer: Gavin Wendt, who is a Financial Services Representative of Summit Equities Ltd ACN 097 771 634, and is a director of Mine Life Pty

Ltd ACN 140 028 799, compiled this document. In preparing the general advice of this report, no account was taken of the investment

objectives, financial situation and particular needs of any particular person. Before making an investment decision on the basis of the advice in

this report, investors and prospective investors need to consider, with or without the assistance of a securities adviser, whether the advice is

appropriate in light of the particular investment needs, objectives and financial circumstances of the investor or the prospective investor.

Although the information contained in this publication has been obtained from sources considered and believed to be both reliable and

accurate, no responsibility is accepted for any opinion expressed or for any error or omission in that information.

MineLife Portfolio: Please refer to our Portfolio page for a full listing of all our stocks held, including

purchase prices and dates.

issue 148 4th december, 2013

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