for personal use only · deposit production/reserves history mineralisation storliden, sweden...
TRANSCRIPT
ANNUAL GENERAL MEETING24th November 2015Perth, Australia
Hannans Reward Ltd ABN: 52099862129
ASX:HNRwww.hannansreward.com
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DISCLAIMERThis Document and the information contained herein and any presentation (collectively referred to as “Information”) is proprietary toHannans Reward Limited (“the Company”, “Hannans Reward” or “Hannans”).
This Document is intended to provide general background on the Company. It is not a disclosure document and is not intended as anoffer, invitation, solicitation or recommendation with respect to any potential transaction.
Securities of micro cap exploration companies, typically involve a high degree of risk and as such, any investment in the Company mustbe considered as purely speculative. The Information in this presentation does not purport to cover all relevant information about anypotential investment in the Company. Accordingly potential investors are advised to seek appropriate independent advice, if necessary, todetermine the suitability of this investment. You should not solely act in reliance on the material in this presentation. This presentationdoes not purport to be all inclusive or to contain all information which its recipients require in order to make an informed assessment ofthe Company’s prospects. You should conduct your own investigation and perform your own analysis in order to satisfy yourself as to theaccuracy or completeness of the information, statements, and opinions contained in this presentation before deciding whether to makean investment into Hannans.
The Document contains reference to certain intentions, expectations and plans of the Company. Those intentions, expectations and plansmay or may not be achieved. They are based on certain assumptions which may not be met or on which views may differ. Theperformance and operations of the Company may be influenced by a number of factors, many of which are outside the control of theCompany. No representation or warranty, express or implied, is made by the Company or any of their respective directors, employees,agents, advisers and consultants that any intentions, expectations or plans will be achieved either totally or partially or within aprescribed timeframe or that any particular rate of return will be achieved.
The Information disclosed relates to the proposed business of the Company at the date of this Document. Material information may havechanged since the date the Document was compiled. No responsibility is accepted to advise any person of any change or update any ofthe Information.
Neither the provision of this Document nor any information contained in this Document or subsequently communicated to any person inconnection with this Document is, or should be taken as, constituting the giving of investment advice to any person. By accepting thisDocument you acknowledge and agree to be bound by each of the foregoing statements.
The currency used throughout the presentation is Australian Dollars unless otherwise stated.
Infrastructure, locomotives, ore wagons, unloading facilities, mining operations, drill rigs, windmills, ships nor reindeers are owned byHannans. Hannans does not own any of the infrastructure in this presentation.
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HIGHLIGHTSExposure to copper, gold nickel & ironPortfolio of free-carried projects & sole funded projectsJORC resources and greenfields explorationMining lease application for copper-gold to be lodged 2016
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STRATEGY
Vison
Our vision is to build a successful exploration and production company.
Mission
Our mission is to develop a company that has a material interest in a portfolio of mineral projectsthat are being rapidly progressed whether they are exploration, development or productionassets.
We recognise that maintaining a professional, knowledgeable and ethical team of directors,employees and consultants is the key to our business.
Our focus is to provide shareholders with a satisfactory return on investment by managing ourpeople, projects and capital in an entrepreneurial and responsible manner.
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ASSETS
‘Free-Carried’ Pahtohavare Copper-Gold Project (Sweden)
Copper oxide resource1 (1.4Mt @ 1.8% Cu) amenable to contract mining withexcellent access to infrastructure plus outstanding targets beneath shallow historic mines
Mining lease application to be lodged by joint venture partner during 2016
‘Free-Carried’ Exploration Portfolio (Australia)
Forrestania Nickel & Gold Project - Lake Johnston Nickel Project - QVR Nickel Project.
Lapland Nickel-Copper-PGE (Sweden)
High potential copper-nickel-PGE project targeting magmatic sulphides within gabbroic-ultramafic intrusives.
Rakkurijoki Iron Project (Sweden)
High quality iron project, strategically located with excellent access to infrastructure.
Lannavaara Iron Project (Sweden)
Large iron project at early stage of exploration.
Capital
Minimal cash, $0.8M receivable and $0.725M interest free loan facilities (~$0.05M drawn)
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ACHIEVEMENTS 2015Pahtohavare Copper Project
Entered into joint venture (JV) with Swedish mining company Lovisagruvan AB (LOVI) in March
JV partner completed diamond drill program at the Central oxide deposit in August,intercepted bonanza copper grades and agreed to proceed to next stage of JV in November.
Lapland Ni-Cu-PGE Project
Generated a 1st-class greenfields exploration project with the potential for significant multi-commodity mineralisation and completed initial field reconnaissance program in August.
Lake Johnston Nickel Project
JV partner announced anomalous nickel mineralisation from two diamond core holes.
Queen Victoria Rocks Nickel Project
JV partner drilled one diamond core hole to follow up historical intercept.
Forrestania Nickel Project
JV partner announced commencement of geochemical and geophysical exploration program.
Divestments
Sold exploration database to Neometals Ltd (ASX:NMT) for 20% free carried interest.
Sold North Ironcap gold rights in Western Australia.
Corporate
Key staff retained, operating costs decreased and no equity raisings completed.
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CHALLENGES 2015
Investor Sentiment
Investor sentiment continues to be very negative towards all companies in the resources sector and all metals.
Commodities Prices
Nickel price at 7 year low (<USD10,000/t)
Iron ore price at 7 year low (<USD50/t)
Copper price at 6 year low (<USD5,000/t)
Gold price at 5 year low (<USD1,100/oz)
Exchange Rates
Depreciating AUD made investing overseas more expensive.
Exploration
Fall in exploration expenditure by major mining companies on global basis made finding strategic partners very difficult - minimal appetite for greenfields exploration projects.
Funding
Discovery Zone transaction did not settle (AUD3M) – Hannans assessing its rights1.
North Ironcap transaction did not settle (AUD0.8M) – Hannans assessing its rights.
71: Refer ASX Announcements dated 9 and 28 October 2015
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PERFORMANCE OF MAJOR COMPANIES
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Company 52 Week Range Last Sale% Drop from 52 Week High
Glencore 66.67 - 338.00 92.33 72%
BHP 27.84 - 57.05 29.10 49%
Rio Tinto 31.97 - 50.07 34.68 30%
Vale 3.75 - 9.55 3.80 60%
Freeport McMoRan 7.76 - 29.75 8.25 72%
Anglo American 417.20 - 1,376.50 446.5 67%
Fortescue Metals Group 1.58 - 3.03 2.18 28%
Barrick Gold 5.91 - 13.70 7.19 47%
Newcrest 9.17 - 15.79 11.48 27%
Antofagasta 465.90 - 811.50 508.00 37%
First Quantum 225.00 - 1,125 246.75 78%
Hannans Reward 0.002 – 0.006 0.004 33%
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GOALS 2016
Shareholder Returns
Implement a strategy giving shareholders the opportunity to recover their investment.
Joint Venture Projects
Pahtohavare, Forrestania, Lake Johnston and Queen Victoria Rocks.
Monitor joint venture partners’ activities.
Assist joint venture partners to unlock the value of these high potential projects.
Sole Funded Projects
Lapland, Rakkurijoki, Lannavaara and Särksjön.
Secure joint venture partners.
Corporate
Protect rights and finalise outcomes on North Ironcap and Discovery Zone transactions.
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Olof ForslundNon-Executive Director
• Director of Hannans Reward Ltd (2012).• Geophysicist with extensive international
experience in the mineral exploration industry.• Previously Regional Manager of SGU Mineral
Resources Information Office.
Jonathan MurrayNon-Executive Director
• Director of Hannans Reward Ltd (2010).• Partner of Steinepreis Paganin• Principal legal practice areas include equity
capital markets, takeovers, project acquisitions and divestments, corporate governance, commercial law and strategy.
DIRECTORS & MANAGEMENT
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Damian HicksManaging Director
• Co-Founder of Hannans Reward Ltd (2002).• Financial, legal and compliance qualifications• Non-executive director of funds management
company Growth Equities
Markus BachmannNon-Executive Director
• Director of Hannans Reward Ltd (2012).• Corporate finance professional and
founding partner of Craton Capital.• Craton Capital awarded Fund Manager of
the Year at the Mining Journal’s “Outstanding Achievement Awards” during December 2010.
Magnus ArnqvistNon-Executive Director, Kiruna Iron AB
• Ex-MD of Bergteamet
• Ex-MD of Europe’s largest zinc mine.
• Mining engineer with Rapallo (Australia) and Mine Manager of the Kristineberg, Storliden and Maurliden Mines (owned by Boliden).
Amanda ScottExploration Manager
• Geologist with 12 years experience.• Responsible for developing the Kiruna Iron
Project portfolio and the SCR gold and base metals portfolio since inception.
• Previously Exploration Manager for Hannans Reward Ltd (2008-2010) and Scandinavian Resources Ltd (2010–2012)
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CAPITAL STRUCTURE
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# Name %
1 ERI 16.6
2 Craton Capital 8.9
3 Bruce Drummond 3.7
4 Marfield Pty Ltd 3.1
5 Jetosea Pty Ltd 2.6
Top 5 Subtotal 34.9
Top 20 Subtotal 49.4
1,307 Holders 100.0
Shares on issue 721,966,133
Options on issue 36,050,000Red: Hannans Reward Ltd Blue: ASX 300 Metals and Mining (Industry)
Source: ASX
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SWEDEN
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Hannans’ three main explorationprojects are all located inNorrbotten, northern Sweden.
Hannans’ Rakkuri andPahtohavare Projects are located~8km from Kiruna.
Hannans’ exploration office islocated in Malå, approx. 440kmsouth of Kiruna.
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EXPLORING FOR HIGH GRADE DEPOSITS
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Deposit Production/Reserves History Mineralisation
Storliden, Sweden
1.86Mt @ 8.8% Zn, 3.1% Cu, producing 52kt of copper, 150kt of zinc.
Discovered in 1998 by North Atlantic Natural Resources (renamed Lundin Mining), mining commenced in joint venture with Boliden in 2002, closed in 2008.
VMS
Svartliden, Sweden
3Mt @ 4.72g/t Au producing 370koz Discovered in 1994, acquired by Dragon Mining in 1999. Open pit mining commenced in 2004 followed by underground mining in 2011, closed in 2013
Lode Gold
Zinkgruvan, Sweden
Current reserves:Zn-Rich: 11.8Mt @ 9% Zn, 3.6% Pb, 76g/t AgCu-Rich: 3.9Mt @ 2.2% Cu, 0.4% Zn, 31g/t Ag
Discovered in 1857, acquired by Lundin Mining from Rio Tinto in 2004.
SEDEX
Kristineberg, Sweden
Total production to date (2013) 27.8Mt @ 3.74% Zn, 1.04% Cu, 1.4g/t Au, 39g/t Ag, 0.4% PbCurrent reserve: 4.8MtCurrent resource: 6.4Mt
Discovered in 1918. Mining commenced in 1940’s. Production by Boliden ongoing, currently at 650kt/yr.
VMS
Kylylahti, Finland
Current reserve: 4.2Mt @ 1.6% Cu, 0.7g/t Au, 0.6% ZnCurrent resource: 7.7Mt @ 1.3% Cu, 0.7g/t Au, 0.5% Zn
Discovered in 1984 by Outokumpu, acquired by Altona Mining Ltd (ASX:AOH) in 2010, mining recommenced in 2012 and was sold to Boliden in 2014
Ophiolite
Examples of high grade deposits discovered, developed and mined in Scandinavia
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COPPER-GOLD (PAHTOHAVARE)
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All costs funded by JV partner.
Hannans retains a 25% free-carried interest through to aDecision to Mine.
Potential for 2-3 high gradecopper deposits across theProject.
Southern - high potential forcontinuation of copper orebeneath the lowest mined levelof ~200m. Historical productionof ~1.7Mt @ 1.9% Cu, 0.9g/t Au.
Central – high potential forcontinuation of copper-goldsulphide ore beneath oxide ore.
Between Southern and Centralthere is potential for copper-goldore, currently ZERO drillingtesting contiguous hoststratigraphy.
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COPPER-GOLD (PAHTOHAVARE)
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Visible copper mineralisation in drillcore from PADH15005between 48.5-49m downhole.
Bonanza grade copper assay resultsreceived from diamond drilling at theCentral deposit.
Assay1 highlights for PADH15005 include:
14.2m @ 9.60% Cu, 2.43g/t Au, 16.98g/tAg from 40.0m inc. 4m @ 23.26% Cu,3.62g/t Au, 43.03g/t Ag from 47.5m.
14m @ 2.03% Cu, 0.53g/t Au, 4.07g/t Agfrom 7.2m inc. 3m @ 3.58% Cu, 1.02g/tAu, 8.47g/t Ag from 10.8m.
Highest grade 1m interval from withinPADH15005 was 31.5% Cu, 5.89 g/t Auand 63.1 g/t Ag from 50.5m.
Note that all widths are downhole as truewidths are not currently known.
1: Please refer ASX Announcement “1st Quarter Activities Report” dated 30th October 2015 for additional detailsregarding the diamond drilling at Pahtohavare including the JORC Table.
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COPPER-NICKEL-PGE (LAPLAND)
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Project located in Sweden’s equivalent of the FraserRange province in Western Australia; a coincidentregional scale magnetic-gravity anomaly and multiplemafic intrusives located on the edge of a potentialcraton margin.
Work plan for the next twelve months includesstakeholder engagement, environmentalassessments, mapping, sampling and prospecting,geophysical surveys (in-fill airborne gravity andelectromagnetic surveys) and bedrock drilling.
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COPPER-NICKEL-PGE (LAPLAND)
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Completed maiden field reconnaissance trip inAugust 2015 which identified outcroppinggabbro, anorthosite and ultramafic intrusives.
The Jalokoski prospect contained an ultramaficsample (SRTS15010) collected during the fieldtrip that showed evidence of differentiationwhich typically indicates dynamic magmaemplacement which is generally required fornickel sulphide mineralisation.
Nearby sample SRTS15011, whilstundifferentiated, contained olivine suggestingthat it may have formed from a more primitivemagma. Sample SRTS15011 also contained traceamounts of pentlandite. This may be howeverthe result of secondary alteration rather thanevidence for primary magmatic sulphides.
The Jalokoski and Kaalamakoski prospects willbecome the primary focus for future explorationat the Lapland Project.
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IRON (RAKKURIJOKI)
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Potential open pit iron ore mine
Operating iron mine at 1,365m depth
Current JORC Inferred resource of 74.5Mt @ 39.7%Fe (down to 350m).
Mineralisation currently open at a depth of >400m.
Area of national interest for mining.
Iron upgrades to +68% Fe product (DTR-analysis).
Excellent Location:
• 6km from Kiruna
• ~1km from open access, heavy gauge rail
• 250m from the road
Open pit mining potential.
Positive scoping study completed in February 2013.
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IRON (LANNAVAARA)
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Potential open pit iron ore mine
Operating iron mine at 1,365m depth
Potential to be a large, long-life (+25year) magnetite project.
High iron content product (+69% Fe inDTR testwork) in low sovereign riskjurisdiction.
The Project comprises exploiting a largemagnetite iron resource at Lannavaara,converting the ore into a high qualityiron product, transporting the product170km to an ice-free, deep-water portand shipping the product to market.
Completed slurry pipeline, portunloading-storage-loading scopingstudies in 2014 both of which confirmedthe concept to be viable.
Modelled airborne magnetic image over the Paljasjärvi magnetite prospect within the Lannavaara Iron Project.
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WESTERN AUSTRALIA
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Hannans holds a 16-20% interest free-carriedto Decision to Mine in the Forrestania, LakeJohnston and Queen Victoria Rocks nickel andgold projects.
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NICKEL & GOLD (FORRESTANIA)
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All costs funded by JV partner.
Joint venture partner Neometals Ltd(ASX:NMT) approves greenfields nickelsulphide exploration program at theForrestania Nickel Project.
Leading edge technology developed byconsultants Richard Stuart (geophysicist)and Gordon Kelly (geochemist) to confirmpotential for Flying Fox-style mines withinStormbreaker prospect.
Stormbreaker prospect located ~7kmalong strike to the north of the Flying Foxnickel mine and is hosted within the samefavourable western ultramafic komatiiteunit.
Tenements include prospecting licenseapplications over the historic high gradeBlue Haze gold mine.
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NICKEL (LAKE JOHNSTON)
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All costs funded by JV partner.
Two diamond holes drilled in 2014 intersected a classicmafic-ultramafic pile of gabbro, amphibolite andserpentinite before entering the pillowed basaltfootwall. The serpentinised cumulate zones in bothholes contain very fine grained sulphides, are elevatedin nickel and sulphur and have very high MgO levels.
The holes have been cased with PVC to enable down-hole geophysics to be completed in the future.
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NICKEL (QUEEN VICTORIA ROCKS)
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All costs funded by JV partner.
A re-interpretation of the geological setting at QVRhas resulted in the identification of a lava channeland basal contact.
The footwall contact remains untested, overlain bymultiple sulphidic sediments giving false EMconductors.
Future work will use PGE-vectoring and IP to ‘seethrough’ upper sediments and define co-incidenttargets on the ultramafic embayment contact.
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CONTACT DETAILS
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Damian Hicks, Managing Director, +46703220226
Amanda Scott, Exploration Manager, +46703221497
Mindy Ku, Finance & Compliance Manager, +61893243388
www.hannansreward.com (W)
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COMPLIANCE STATEMENTSThe information in this document that relates to exploration results is based on information compiled by Amanda Scott, aCompetent Person who is a Member of the Australian Institute of Mining and Metallurgy (Membership No.990895). AmandaScott is a full-time employee of Hannans Reward Ltd. Amanda Scott has sufficient experience, which is relevant to the style ofmineralisation and types of deposits under consideration and to the activity which has been undertaken to qualify as aCompetent Person as defined in the 2012 edition of the Australasian Code for Reporting of Exploration Results, MineralResources and Ore Reserves (JORC Code). Amanda Scott consents to the inclusion in the report of the matters based on herinformation in the form and context in which it appears.
The information in this document that relates to Mineral Resource and Exploration Target Estimates for Pahtohavare isextracted from the report entitled “Re-Release of Maiden JORC Resource at Pahtohavare To Comply With JORC” created on 31January 2014 and is available to view on the Company’s website (www.hannansreward.com). The Company confirms that it isnot aware of any new information or data that materially affects the information included in the original marketannouncement and in the case of Mineral Resources or Ore Reserves that all material assumptions and technical parametersunderpinning the estimates in the relevant market announcement continue to apply and have not materially changed. TheCompany confirms that the form and context in which the Competent Person’s findings are presented have not beenmaterially modified from the original market announcement.
The information in this document that relates to Mineral Resource Estimates for Rakkurijoki and Rakkurijärvi is extracted fromthe report entitled “Kiruna Iron Project JORC Resource Update” created on 17 January 2012 and is available to view on theCompany’s website (www.hannansreward.com). The Company confirms that it is not aware of any new information or datathat materially affects the information included in the original market announcement and in the case of Mineral Resources orOre Reserves that all material assumptions and technical parameters underpinning the estimates in the relevant marketannouncement continue to apply and have not materially changed. The Company confirms that the form and context in whichthe Competent Person’s findings are presented have not been materially modified from the original market announcement.
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