Broken Hill Prospecting Limited ARBN: 003 453 503

Level 14, 52 Phillip Street, Sydney NSW 2000 Box 3486 GPO, Sydney NSW 2001

P: +61 2 9252 5300 F: +61 2 9252 8400 E: info@bhpl.biz W: www.bhpl.biz

 

 

2 June 2011

ASX Compliance Pty Limited, 91 King William Street, Adelaide SA 5000 Attention Mr Justin Nelson

Broken Hill Prospecting ASX release of 2 June 2011

Please find attached a replacement for Broken Hill Prospecting’s presentation release entitled “Company Update and Work Program” which was lodged prior to start of trading on 2 June.

This replacement release contains modifications to slides three and eight in order to comply with the ASX reporting policy for reporting in-ground and in-situ value.

We note that under the terms of the ASX companies update 03/08 in-situ value should not be a basis for investment decisions. Accordingly, we have removed all references to contained metal value in both slides 3 and 8 of the presentation and have re-lodged the redrafted presentation as per the attached.

We also note that the wording of the first item under the top dot point in the eighth slide of the early release included the statement "good potential to double the resource to +30mt" which does not comply with the requirements of clause 18 of the JORC Code. Accordingly, the wording on this slide has been corrected and the Company wishes to withdraw mention of an exploration target.

Yours faithfully

Dr Ian Pringle Managing Director

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Company UpdateCompany Updateand work programp g

Dr Ian Pringle, Managing Director June 2011

Big Hill viewed from Pyrite Hill

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Key contactsey co tactsAustralia contacts

Wolfgang LeyhManaging DirectorEaglehawk Geological Consulting

Dr Ian PringleManaging DirectorBroken Hill Prospecting Limited Eaglehawk Geological Consulting

Pty LtdPhone: 08 8087 9194 Email: eaglegeo@ceinternet.com.au

Broken Hill Prospecting LimitedPhone: 0408 548767 or + 852 6506 2872Email: ipringle@bhpl.biz

Geoffrey Hill New Zealand contactDirectorBroken Hill Prospecting LimitedPhone: 0411 539 000

852 6506 2872

Peter AtkinsonManaging DirectorHeritage Gold NZ Limitedor + 852 6506 2872

Email: ghill@ipshk.net

Heritage Gold NZ Limited541 Parnell Rd, Parnell, Auckland New ZealandPhone: +64 9 303 1893Email: peter@heritagegold.co.nz

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Broken Hill Prospecting LimitedBroken Hill Prospecting Limited• New exploration and development

concepts for e ploration of Broken Hillconcepts for exploration of Broken Hill style mineralisation and cobalt deposits

• Broken Hill Prospecting Limited (BPL) has over 20 years experience ofhas over 20 years experience of exploration in the Broken Hill region

• Existing inferred resource of +14 million tonnes of cobalt-pyrite ore gradingtonnes of cobalt-pyrite ore grading 2.1lb/T

• Exploration license (EL6622) and two mining leases (ML86 ML87)mining leases (ML86, ML87)

• Field work and drill testing of prioritised targets in progress

• Highly qualified experienced technical• Highly qualified, experienced technical team with a track record of successful discovery and developmentFor

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Capital structureCapital structurePublic capital raising of $A4.5 million: Commenced Trading 17 February 2011

ASX Code: BPL and BPLOA

Current Cash: AUD 3.4m 

Share price on 27 May 2011: 12 centsShare price on 27 May 2011: 12 cents 

Listed on ASX and NZSX

Post IPO capital

Shares 82,581,900

Post IPO Ownership   Shares (mil)

%

So Co Limited 34 37 42%

Options(20c, escrow 5 years)(24c, 1 – 2 years)

42,790,95025,650,0001,500,000

So Co Limited 34.37 42%

Heritage Gold 17.93 22%

Top 20 62.86 76%(24c, 1  2 years)New Shareholders (20c, 3yrs)

1,500,00011,190,950

Total capital 125,372,850

Total shareholders 429  

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Broken Hill overviewo e o e e• Broken Hill was discovered in 1883 and is still producing after 127 years• Recorded production of >210 Mt @ >20% Pb+Zn and 100-150g/t AgRecorded production of 210 Mt @ 20% Pb Zn and 100 150g/t Ag• Largest and richest deposit of its type ever discovered anywhere to date• Direct value to Australian economy estimated in excess of $80 billion• District is under explored and has excellent potential for new discoveriesDistrict is under explored and has excellent potential for new discoveries

using new technology and mineral models with the advantage of currentand future high metals values

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Location, location,• BPL’s project is only 25km SW of BH

S l d i d hi h t Ad l id• Sealed main road highway to Adelaidejoins the N part of project

• Main trunk railway line through middle ofprojectproject

• Industrial minerals (feldspar, garnet,beryl) mined to the SW. Pinnaclesdeposit is located between the projectdeposit is located between the projectand BH

• Perilya at Potosi (1.6mt of 14.1%Zn,3 4%Pb 46g/tAg and NBH Deeps (3 3mt3.4%Pb, 46g/tAg and NBH Deeps (3.3mtof 11.5%Zn, 13.8%Pb and 224g/t Ag))

• CBH at Rasp Mine ($150m expansionunderway)

Pinnacles mine

underway)• Bemax – mineral sands processing plant

Broken Hill provides an excellent supportbase for exploration and future miningactivities

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Geology and prospectsgy p pF

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Strategy – a three pronged approachSt ategy a t ee p o ged app oac• Cobalt resources – evaluate and explore for new extensions

– Drill test the immediate depth and strike trend of the Pyrite Hill zone withDrill test the immediate depth and strike trend of the Pyrite Hill zone withthe aim of significantly increasing the size of the resource

– Map and drill test a Big Hill extension and other ‘host’ rock horizons inthe tenements to increase the resource base Advance met studiesthe tenements to increase the resource base. Advance met studies.

– Co demand increasing (Fe/Ni/Co and Li/Co batteries). Co mostlyproduced as by-product from Ni laterite or Cu (eg central Africa). BPLh di ti t d t b h i C d i t d it & hi h dhas a distinct advantage by having Co dominant deposits & high grade

• Broken Hill Style mineralisation (BHS) occurs at 13 prospects in BPL tenements

– Mapping/drilling at Pyramid Hill and Himalaya North both show good prospects of distalpp g g y y g p pBHS targets

– Wolf Leyh (+35 years of district experience of detailed mapping of BHS prospects)

• Regional exploration for Cobalt and BHS mineralisation• Regional exploration for Cobalt and BHS mineralisation

– Rob Barnes (retired Chief Geoscientist, NSW Geological Survey) researching targets aspart of a regional initiative.U d l d di t i t ith id bl i l t ti l f di i f b lt– Under-explored district with considerable regional potential for new discoveries of cobaltand BHS deposits

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Pyrite Hill Cobalt Deposit - plany p p• Albite-quartz-pyrite gneiss in folded

antiform of stratabound Na-rich rock.• Strike extent over 1.2km • Shallow oxidation. Some surface gossan

and oxidation/weathering above 30m gwith no cobalt enrichment. Fresh pyrite at surface.

• Mineralisation dips to east at about 50 pdegrees and is thickest in plunging fold hinge.

• Cobalt occurs in solid solution in early Coba occu s so d so u o ea ypyrite (commonly 3-5% of rock). Later pyrite has no Co.

• Can be concentrated by flotation orCan be concentrated by flotation or gravity (+90% recovery).

• Pyrite can be oxidised by pyrometallurgical and hydrometallurgicalpyrometallurgical and hydrometallurgical methods, bioleaching and SXEW.

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Pyrite Hill Cobalt Deposit – long sectiony p g

Approx.  location of planned hole

Excellent depth potential

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Co extends outside deposit areaspAlbite ‐ quartz ‐ pyrite gneiss target rocks for 

additional cobalt

Anomalous Co in 1998 drillhole

additional cobalt mineralisation occur 

under soil/alluvial cover over large areas

Pyrite HillBig Hill

New discovery here

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Pyrite Hill South – new Co discoveryPyrite Hill South new Co discovery• Extensive cobalt rich zone found in poorly exposed outcrop and

successful RAB drilling.g• Massive sulphide gossans are very similar to Pyrite Hill and Big Hill.• Zone very persistent and at least 200m long by 20m wide.• Target zone is open along strike and clearly extends off the end of the• Target zone is open along strike and clearly extends off the end of the

grid.• Potential for adjacent zones in mostly soil covered surrounds and along

strikestrike.

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Broken Hill Type oreo e ype o e• Broken Hill style ore (BHS) is very high grade and it occurs as coarse

massive silver-rich lead and zinc sulphides as well as Au, Cu, Sb and Cd. Metallurgically simple to treat.

• At Broken Hill ore occurs in a stack of tightly folded long thin ruler like lenses extending for more than 8km Due to the rich nature of ore andlenses extending for more than 8km. Due to the rich nature of ore and high grades a small 300m x 50m surface exploration footprint could be expected for an undiscovered deposit with commercial grade and size.

• 13 BHS prospects have been identified

• Their footprint is likely small and low grade

• 2 areas (Pyramid Hill and Himalaya North) already show yexcellent potential

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2 year summary exploration program2 year summary exploration programProspect Programme Exploration Budget

Year 1 (Admin costs $400,000, Issue costs $980,000)

C b l dCobalt resources and exploration

Pyrite Hill/ Big Hill

Detailed geological mapping, interpretation, IP surveying, database establishment, data compilation, resource evaluation. $100,000

Drill testing of depth and along‐trend continuity of mineralisation.

Pyrite Hill Reverse circulation (RC) drilling of central thicker mineralised zone  to determine continuity in depth and along trend. Drilling of 8‐10 RC drill holes (2,500m) .

Diamond core drilling to provide fresh drill core for metallurgical study (300m).

$515,000

RC drilling to more clearly define the Big Hill north extensions (1 500m drilling in 15 RC holes)Big Hill

RC drilling to more clearly define the Big Hill north extensions (1,500m drilling in 15 RC holes).

Diamond core drilling to provide fresh drill core for metallurgical study (150m).$375,000

Exploration for Broken Hill Mapping and sampling at Big Hill North and Tower Hill as well as systematic shallow RAB grid drilling at otherType deposits 

Base metal prospects

Mapping and sampling at Big Hill North and Tower Hill as well as systematic shallow RAB grid drilling at other established high priority prospects. Follow‐up at both Himalaya North and Pyramid Hill. $60,000

Year 2

Pyrite Hill/ Big Hill Resource estimation, pre‐feasibility studies including baseline environmental, mining, metallurgical, economic evaluation, marketing. $570,000

Base Metal Prospects Close spaced RC section drilling of best prospects to 150m depth. Target zones determined by combined  $200 000Base Metal Prospects mapping and RAB work from Year 1. $200,000

TOTAL $1.82M

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Company people and addressCompany people and addressContact details Directors and Senior Management

C h O’C Ch iBroken Hill Prospecting LimitedLevel 14, 52 Phillip Street, Sydney S 2000

Craegh O’Connor Chairman

Dr Ian Pringle Managing Director

Geoff Hill Executive DirectorNSW 2000Australia

P t l

Peter Atkinson Non Executive Director

l hPostal:Box 3486 GPO, Sydney, NSW 2001 Australia

Ralph Stagg Non Executive Director

Wolf Leyh Project Geology 

Website: www.bhpl.biz

Phone: +61 2 9252 5300

Consultant

Rob Barnes Research Geology ConsultantPhone: +61 2 9252 5300

Fax:       +61 2 9252 8400

Mobile for Ian Pringle: +61 408 548 767

Donald de Boer Company Secretary

Franco Girotto Administration Mobile for Ian Pringle:   61 408 548 767email:    ipringle@bhpl.biz Manager

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Important noticeImportant notice• This document is confidential and is intended for the exclusive use of potential investors (“the

Recipients”) to evaluate a specific opportunity to subscribe to shares (“the Investment”) in Broken HillProspecting Limited (ARBN) 003 453 503 (“BPL”, “the Company”). This Document has been preparedp g ( ) ( , p y ) p pfor information purposes only.

• The information contained in this Document does not purport to be all inclusive or to contain all of theinformation that interested investors may require prior to subscribing for shares. In all cases, Recipientsshould conduct their own investigation and analysis Neither BPL nor any of their Directors Officers orshould conduct their own investigation and analysis. Neither BPL nor any of their Directors, Officers oremployees make any representation or warranty as to the accuracy or completeness of the informationin this Document. None of the abovementioned shall have any liability for any information orrepresentations, expressed or implied, contained in, or in any omissions from, this Document or anyother written or oral communications transmitted to the Recipient in the course of the Recipient’sother written or oral communications transmitted to the Recipient in the course of the Recipient sevaluation. This Document is not, and should not be construed as, a recommendation or offer by BPLor its Directors or Officers to invest in the Company.

• This is not a disclosure document for the purposes of the Corporations Act 2001 (“the Act”).C t t P St t t Th i f l ti ti iti d lt t i d i thi t• Competent Person Statement The review of exploration activities and results contained in this report

is based on information compiled by Dr Ian Pringle, a Member of the Australasian Institute of Miningand Metallurgy. Dr Pringle is the Managing Director of Broken Hill Prospecting Pty Ltd and also aPrinciple of Ian J Pringle & Associates Pty Ltd, a consultancy company in minerals exploration. He has

ffi i t i hi h i l t t th t l f i li ti d t f d it dsufficient experience which is relevant to the style of mineralization and types of deposits underconsideration and to the activity which he is undertaking to qualify as a Competent Person as defined inthe December 2004 edition of the Australasian Code for Reporting of Exploration Results, MineralResources and Ore Reserves (the JORC Code). Dr Pringle has consented to the inclusion in thisreport of the matters based on his information in the form and conte t in hich it appearsreport of the matters based on his information in the form and context in which it appears.

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