EXPLORATION REVIEW & STRATEGY
BOARD MEETING | MAY 2011 | PRESENTED BY ALISON MORLEY
ASX: BMY brumbyresources.com.au
INVESTOR PRESENTATION | MAY 2012| PRESENTED BY ALISON MORLEY
ASX: BMY brumbyresources.com.au
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This presentation has been prepared by Brumby Resources Limited (“Brumby” or the “Company”). It should not be considered as an offer or invitation to subscribe for or purchase any securities in the Company or as an inducement to make an offer or invitation with respect to those securities.
This presentation contains forward looking information. Such forecasts, projections and information are not a guarantee of future performance and involve unknown risks and uncertainties. Actual results and developments will almost certainly differ from those expressed or implied. To the maximum extent permitted by applicable laws, Brumby takes no responsibility and assumes no liability for, the authenticity, volatility, accuracy, suitability or completeness of, or any errors in or omission, from any information, statement or opinion contained in this presentation.
You should not act or refrain from acting in reliance on this presentation material. This overview of Brumby does not purport to be all inclusive or to contain all information which it’s recipients may require in order to make an informed assessment of the Company’s prospects. You should conduct your own investigation and perform and own analysis in order to satisfy yourself as to the accuracy and completeness of the information, statements and opinions contained in this presentation.
Disclaimer Notice
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A Genuine Greenfields Explorer
Manganese - Oakover (WA)
Base Metals - Caranbirini, Yalco North and McArthur (NT)
Brumby was founded and floated by the late Graeme Hutton, one of the
pre-eminent prospecting geologists of the last few decades.
Graeme Hutton discoveries - Sandfire Resources, Metana Minerals, DFD Rhodes
(Hope Downs, Jimblebar, McCameys, Rhodes Ridge), Kimberley Diamond Co
Exploration Priorities
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Board
• Geoff Jones Chairman
• ex-Resolute Resources, 27 years in resource project development
• Director of Azumah Resources Ltd and Energy Metals, COO GR Engineering Services
• John Hutton Director
• ex-Sandfire Resources,
• Director of RNI Ltd and Marine Produce Australia Ltd
• Tom Henderson Director
• Corporate Finance, Forrest Capital
• Director of Fitzroy Resources and Everyday Mine Services
CEO
• Alison Morley
• Underground Mine Geologist with Pasminco at Broken Hill, and Superintendent Mine Geology at Isa Lead
and George Fisher mines.
• SRK Consulting for 7 years; due diligence, valuation of resource projects and economic modelling
• Joined BMY as CEO in December 2010.
Corporate
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Total shares on issue 171.7M Unlisted Options • 5.3 M @ $0.24 (May 2013) • 1.0 M @ $0.25 (Dec 2013) • 5.5 M @ $0.15 (Nov 2014) Current Share Price • $0.08 @ 4 May 2012
Market Cap • $13.7 M
Corporate
Top 20 Shareholders 42.4%
Nutsville Pty Ltd 9%
John Hutton 7%
Independence Group 4%
Cash in bank (March quarterly) $1.0M
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• Oakover & Ethel Creek (Mn)
• McArthur & Caranbirini
(ZnPbAg)
Project Locations
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Project Locations
East Pilbara Mn Province
Two new Mn mining developments of similar geological style hosted by same rocks as BMY’s Oakover project: • Ant Hill (Mineral Resources) • Nicholas (Balfour) Downs (Mineral
Resources / HPPL) Brumby has made a significant greenfields Mn discovery – Inferred Mineral Resource
of 27Mt @ 10.2% Mn at 8% Mn cut off.
Numerous untested or partially tested new Mn targets on BMY tenements Access to regional infrastructure F
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The Manganese Market
China became a net importer of manganese alloy for the first time in 2009 and this trend continues in 2011 and early 2012.
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What’s so good about Manganese?
94% of Mn is used in steelmaking to increase strength, toughness, hardness and malleability – there are no satisfactory substitutes for Mn in steel making A “green” metal: • Alkaline battery industry • Research into use in photovoltaic cells Currently unable to substitute or recycle Mn F
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Sixty Sixer
JayEye
Karen
Oakover Target Overview F
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Oakover RC drilling
Full results for Phase 1 (black dots) were reported in BMY’s 25/1/2012 release to the ASX
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Maiden Mineral Resource – Sixty Sixer prospect
Full results were reported in BMY’s 28/3/2012 release to the ASX
Domain
Tonnes Mn Fe Al2O3 BaO SiO2 Resource
Category (Mt) (%) (%) (%) (%) (%)
All 27 10.2 9.1 9.8 0.1 39.3 Inferred
*Figures may not sum due to rounding, significant figures do not imply an added level of precision
Sixty Sixer prospect – Mineral Resource summary, 8% Mn cutoff
Competent Persons’ Statement
The information in this report that relates to Mineral Resource Estimate and Reporting is based on information compiled by Robert H Spiers (BSc (Hons), MAIG), who is a Member
of The Australasian Institute of Geoscientists. Robert Spiers is a full time employee of H&S Consultants Pty Ltd and has sufficient experience which is relevant to the style of
mineralisation and type of deposit 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 Exploration Results, Mineral Resources and Ore Reserves’. Mr Spiers consents to the inclusion in the report of the matters based on his
information in the form and context in which it appears.
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• 9 samples tested from Sixty Sixer and Karen Projects, varying head grades, 3.4 SG, HLS
• The average beneficiated product from all
testwork samples from Sixty Sixer with a head grade of >10% Mn was 36% Mn, with an average yield for this subgroup of 25.3%
• Preliminary results - completely unoptimised
Beneficiation results (May 2011)
Full results were reported in BMY’s 27/5/2011 release to the ASX
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Regional Targeting
Untested Mn outcrop at Taya - significant
potential
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Defining Commercial Potential • Sixty Sixer
• March 2012 - Inferred Mineral Resource completed • April 2012 - Second round of RC pattern drill completed - • May 2012 - Assays returned • June/July 2012 - Updated Mineral Resource • Q3 2012 - Pattern drill at JayEye prospect, further
metallurgical beneficiation testwork planned • Q4 2012 - Scoping study
• Oakover Potential
• Q3 - Taya ridge exploration drilling • Significant numbers of nearby targets
Oakover Strategy F
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NT
McArthur,
Yalco North
and
Caranbirini
Projects
McArthur River Mine - Xstrata 227Mt @ 4.1% Pb, 9.2% Zn and
41.0g/t Au
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McArthur River Mine - Xstrata
• Operating since 1995, open cut from 2006, $270m expansion planned for end 2012
• Will increase capacity from 2.5Mtpa to 5.5Mtpa and produce nearly 800,000t of zinc-lead concentrate a year
• Expansion to increase McArthur’s mineable reserves from 53Mt to 115Mt and extend the life of the mine by nine years to 2036
• M+ I Resource – 162Mt @10.7% zinc, 4.47% lead, 48g/t silver
• Annual operating profit of $105m on Aust. Zn-Pb in 2011 F
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McArthur Diamond Drilling - Dec 2011
• One diamond hole of 4 hole programme drilled before rain halted work • Drilling of three remaining holes expected in 2012 after access is possible • Elevated Zn and Mn values were intersected • Results confirm that geophysical anomaly warrants further investigation
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McArthur Diamond Drilling
4m @ 0.11% Zn from 209m
1m @ 0.13% Zn from 220m
Elevated Mn
Full results were reported in the December 2011 Quarterly Announcement to the ASX
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• 6 x diamond holes @ 1200m planned in 2012 to test VTEM anomalies
• AAPA authorisation granted in Feb 2012 allowing access
McArthur Leases - Caranbirini
From Rox Resources website
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McArthur Leases – Yalco North
• New targeting work done by Margy Hawke
• Digitised 1990s MIM soil samples for first time – not followed up at depth
• Combined with structural analysis and local knowledge
• Preliminary reconnaissance underway, geochemical surface sampling expected as part of 2012 field programme F
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Summary
• BMY met key targets in 2011/12 -announcement of maiden Mineral Resource at Oakover
• Significant upside from expected Mineral Resource update and drilling of identified Mn targets
• Mn and base metals - highly sought after commodities
• NT base metal targets – all permitting, targetting, planning complete F
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The information in this report that relates to Exploration Results is based on information compiled by Alison Morley (BSc (Hons), MSc, GradDipAppFin, MAusIMM (CP)) , who is a Member of The Australasian Institute of Mining and Metallurgy. Alison Morley is an employee of Brumby Resources Ltd and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which she is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Ms Morley consents to the inclusion in the report of the matters based on her information in the form and context in which it appears.
Competent Person’s Statement
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