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A developer of resource projects. Its expertise is in using a science based approach in sourcing mineral projects and developing them to the point where they are either sold before or after commissioning.
GETTING A PIECE OF THE PIE.To date over $1M worth of work was completed in return for either equity or future cash payment.
Commercial
Jarek Kopias
Nick HardingRob NachumJonathan LindhMark StewartJohn FewsterAndrew ShearerJon Reynolds
Julian Reynolds
Project ManagerJonathon Trewartha
Mining & Geo Tech
Simon Parsons
Richard Buckley
John Milbank
Tony Meyers
Leonardo Ramos
Metallurgy
Shane Barker
Steve Jenkin
Reviewers FS Apr 15Peter Reynolds (Overall)
Peter Bartsch (Processing)
Chris Mroczek (Geology)
Geology & Exploration
Dave Larsen
Ken Bamptom
Marc Twining
Leon Faulkner
Stephen Saunders
Mark Stewart
Geoff Borg
David Adams
Environment
Michelle Waters
Joe Misfud
Sean Steed
Nicole Galloway Warland
SA EXPLORATION AND MINING CONFERENCE. TECHNICAL AND PROJECT OVERVIEW
Outline Industry Advocacy for Small Scale MiningBoard & Key Project TeamAssets & Liability Technical TalkExecution StrategySummary
Review of South Australia’s Mining Act An opportunity to ignite a
Small Scale mining sector, again.
Jonathon Trewartha, +61 414 989 107, [email protected]
SA has an abundance of old small gold & base metal mines at surface
ABN C
Now
120 Years ago
Jonathon Trewartha, +61 414 989 107, [email protected]
A healthy Small Scale mining sectorAn incubators for multiple SA based Mining & METS companies
ABN C
Jonathon Trewartha, +61 414 989 107, [email protected]
Creating high value exports for SA Miner’s, METS & Metals
Jonathon Trewartha, +61 414 989 107, [email protected]
Most big mines start out small
ABN CWhy?Unless in a boom time, the cost to gain Knowledge and large Capital investment is to high.
Kalgoorlie Super Pit
Broken Hill Mines
Mt Isa Mines
Jonathon Trewartha, +61 414 989 107, [email protected]
Requires from you as little as jotting down a few key points in aninformal email. Which would takes less time than listening to awhinging colleague about the inactivity of our state.
ABN C
Jonathon Trewartha, +61 414 989 107, [email protected]
Email [email protected]
Mining Act Consultation Period is Open
DisclaimerThis document has been prepared by Resilience Mining Australia Limited (“RMA”, “Company”) and provided as a basic overview to a proposed option to purchase LCCM (from Phoenix Copper) which own the Mountain of Light, Lorna Doone and Mt. Coffin leases at and around Copley, South Australia and is current as at 7 June 2015. The information in this presentation is of general background. This presentation does not purport to be all-inclusive or to contain all the information that you or any other party may require to evaluate the prospects of the Company.
None of the Company, any of its related bodies corporate or any of their representatives assume any responsibility for, or makes any representation or warranty, express or implied, with respect to the accuracy, reliability or completeness of the information contained in this document and none of those parties have or assume any obligation to provide any additional information or to update this document.
This presentation is not investment or financial product advice (nor tax, accounting or legal advice) and is not intended to be used for the basis of making an investment decision. Investors should obtain their own advice before making any investment decision. The tenements of the Company as described in this presentation are at various stages of exploration, study and development. Potential investors should understand that mineral exploration, development and mining are high-risk undertakings. There can be no assurance that exploration, study, development or mining of the tenements, or any other tenements that may be acquired in the future, will result in economic ore deposit. Even if an apparently viable deposit is identified, there is no guarantee that it can be economically exploited.
This document contains statements which may be in the nature of forward-looking statements. No representation or warranty is given, and nothing in this presentation or any other information made available by the Company or any other party should be relied upon as a promise or representation, as to the future condition of the respective businesses and operations of the Company.
To the maximum extent permitted by law, Resilience Mining Australia, its related bodies corporate (as that term is defined in the Corporations Act) and the officers, directors, employees, advisers and agents of those entities do not accept any responsibility or liability including, without limitation, any liability arising from fault or negligence on the part of any person, for any loss arising from the use of the presentation or its contents or otherwise arising in connection with it.
Not a Disclosure DocumentThe investment opportunity outlined in this basic company overview, is not a “prospectus” or a “disclosure document” and as such does not contain all the information that a full “prospectus” or a “disclosure document” would include. This overview is intended for: sophisticated investors; professional investors; person(s) or entities who already hold an interest in securities in “Resilience Mining, “the Company”, Resilience Mining Ltd; or persons associated to “the Company”. This is not a public offering.
UnlistedThe Company is currently an unlisted Australian Public Company. Whilst at the time of preparation the intention of the Directors is to stay unlisted. The Company reserves the right to list on the ASX or any other similar exchange. A risk exists that the company is not successful and you could lose all your funds invested. This is not an offer document.
Exploration TargetExploration targets are reported in accordance with clause 18 of the JORC code. This means that potential quantity and grade is conceptual in nature, and there has been insufficient exploration to define a Mineral Resource. It is uncertain if further exploration will result in the determination of a Mineral Resource.
Competent Person StatementThe information in this report that relates to Exploration Results and Mineral Resources is based on information compiled by David Larsen who is a Member of the Australian Institute of Geoscientists(MAIG), and is a shareholder in Resilience Mining Australia (RMA). David Larsen has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to theactivities which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORCCode). Mr Larsen consents to the inclusion in this presentation of the matter based on his information in the form and context in which it appears.
EXPERIENCED BOARD & DEVELOPMENT TEAM
Experienced Board
Jonathon Trewartha (MD)Jonathon is a Mining engineer with more than 28 years’ experience in mining, holding senior positions both in Australia andoverseas. He has a rounded experience in operational, project and technical management; from greenfield exploration through tofeasibility studies and operations. With corporate experience as a Director in both private & listed companies.
Peter Reynolds (Exec.)Peter has over 40 years’ experience managing underground, open cut and alluvial mines, feasibility studies and strategic mineplanning. He was a principal consultant and regional manager for AMC. He's worked projects in Australia, Russia, Mongolia, CentralAsia and Europe. With extensive corporate experience as a Director in both private & listed companies.
Nick Harding (Non Exec.)Nick is an accountant, company secretary and finance professional with over 30 years’ experience in the mining industry.He is a Fellow of both CPA and Finsia and an assoc. of the Governance Inst. of Australia. Holding senior financial roles withWMC, Normandy and Newmont at both mine sites, in corporate positions and with smaller listed and private companies.
Jarek Kopias (Comp. Sec. and CFO)Jarek is a Certified Practicing Accountant, BCom, CPA, ACIS, ACSA who has worked extensively in the resource sector invarious corporate and mine site roles with over 20 years’ experience in the mining industry. A Chartered Secretary and isCompany Secretary and CFO for both Core Exploration Limited (ASX:CXO) and Lincoln Minerals Limited (ASX:LML).
Twenty Four Experienced Multi-Discipline Consultants were used on the Project. Key Discipline Leaders were:
Shane Barker (Metallurgy)Over 29 years' experience in processing operations across many commodities and mineral processingoperations. He was recently General Manager at Polymetals Mining Limited’s Mount Boppy Heap LeachGold Mine.Steve Jenkin (Processing Operating)Over 25 years’ experience in mineral processing operations from operator to Project Manager. His tradebackground is important as well as his varied experience across various commodities and processes. Hehas operated a Copper Oxide Heap Leach facility.Dave Larsen (Geology )30+ years’ experience as a Geologist. Areas of expertise include feasibility and due diligence studies, operationestablishment, grade control processes and reconciliation, data management and QA/QC, geological and resourcemodelling, quality improvement, greenfield and near mine exploration.
Simon Parsons (Mining )25+ years’ of practical open cut mining experiences across a range of commodities. His broad skill set has been developedas both an owner and contractor representative. He also holds a WA Quarry Managers Certificate. Most recently he wasGeneral Manager for Termite Resources at Cairn Hill and now Mine Manager at Tomingley Gold Operations
LEIGH CREEK COPPER MINE
LocationInfrastructure• Accommodation • Water• Regional Airport• Services Community: Few Native Title: NoneEnv. Bond: Costed
After 18 months of work, RMA has exercised itsoption for 100% of LCCM Pty Ltd, from ASX listedPhoenix Metals Ltd (PNX).
Assets• 3 granted MLs 2 Els• Plant in Care and Maintenance.• Combination of JORC 12, JORC 04 and Mineral Inventory
• 36.5ktCu, 5.4Mt @ 0.68%Cu,• 0.7ktCu remaining in old heaps,• 0.4ktCu potential remnant mining opportunity,
• 103ktCu exploration targets on MLs, Els & local• Retreatment of heaps approval pending. Start-up capital cost of $0.4M, free
cash flow $0.7M. Benefits are: Re-commission the plant, Gain processing knowledge; Complete heapoptimisation trial of Lynda Mine and Obtain PEPR to start Lynda.
• One and a bit deposit ready to mine. Approvals process started.Lynda and siltstone portion of Lorna Doone. Currently updating FS, Apr 16 FS est. start-up capital cost of$0.9M, a free cash flow of A$13.9M, 3 yr life and a payback period of less than 8 months.
• Four and a bit known minable deposits. Ready for development.• FS Nov 16 Lynda and Lorna Doone. Extensive drilling, test work,
operational reports, feasibilities , LOM & other studies.Technical issues well defined.
• Well thought through execution strategy.
Liabilities• Environment Protection & Rehabilitation Cost $560k, current
Bond $150k. Gap of $310k.• ML renewals $35kpa. ELs $12kpa plus commitments.• A payment to PNX of $100k when 3ktCu. Is reached• No other known major liabilities.
COMBINATION OF JORC 12/04 AND MINERALINVENTORY
Cut-off grade
Mineralisation Type
TonnageGrade (%Cu)
Tonnes Cu contained
Notes
Indicated Resources
ML5467 - Mountain of LightPaltridge North 0.30% Oxide 591,000 0.85 5,000
0.30% Transitional 258,000 0.83 2,1000.30% Total 849,000 0.84 7,100 Nov 2016, JORC 2012
Rosmann East 0.30% Oxide+Trans 128,000 0.78 1,000 Phoenix Copper 2014, JORC 2004
ML5498 - Lorna DooneLynda 0.30% Oxide 1,349,000 0.65 8,800 Jun 2016, JORC 2012
Lorna Doone 0.30% Oxide 1,180,000 0.65 7,700 Jun 2016, JORC 2012
Inferred Resources
ML5467 - Mountain of LightPaltridge North 0.30% Oxide 22,000 0.77 200
0.30% Transitional 19,000 0.52 1000.30% Total 41,000 0.66 300 Nov 2016, JORC 2012
ML5498 - Lorna DooneLorna Doone 0.30% Oxide 166,000 0.68 1,100 Jun 2016, JORC 2012
Total Resources
Indicated 0.30% 3,506,000 0.70 24,600Inferred 0.30% 207,000 0.68 1,400
Total Resource 0.30% 3,713,000 0.70 26,000
Other defined ore sources (non JORC)
ML5467 - Mountain of LightExisting leach pads Oxide 195,000 0.38 700 RMA, Oct 2016
ML5741 - Mount CoffinWest Jubilee 0.30% Oxide 155,000 0.85 1,300 RMA, Apr 2016
Elsie Adair 0.30% Oxide+Trans 1,294,000 0.66 8,500 RMA, Apr 2016
Total defined mineralisation 5,357,000 0.68 36,500
Ore Mined by Previous owners.Only 197,738t @0.75% Cu and 1488 t Cu.
Only a small percentage of the total resource was mined by previous owners. This highlights that the project never got past ramp up stage and its associated teething problems.
Lorna DooneLorna Doone & Lynda
Mt CoffinWest Jubilee, Sth Adiar, Elsie Adair
MOLPaltridge NthRosman EstPaltridge Sth
LCCM3 ML’s 2 EL’s
LOCAL AND REGIONAL GROWTH
High Priority - Existing ML Expected to be limited - Exploration Target of 18.1kt.
Medium Priority – RegionallySome good targets - Exploration Target of 85.1kt.
Current Lower Priority - Sth Aust.Over 850 known copper oxide working in SA. To be
investigated.
Not reviewed – Sulphides under the oxides
LESSONS TO BE LEARNED FROM A FAILED START UP
Keep overheads low and have a tight control on cash burn.
Ensure solid operational planning before commencing operations. Use conservative assumptions Understand the in situ fines and degradation of host rock in the heap or other
selected processing technique. And trail it before you start operations. Ensure future pits are scheduled and developed in a timely manner to not halt
production.
Have at least one person in the owners team from day one, who has extensive experience in construction and operation of heap leaching.
Ensure sufficient working capital.
USE CONSERVATIVE ASSUMPTION – EG RECOVERY
RMA’s FS Nov 16 for Lynda uses
75% Cu Recovery in 240 days
Previous owners started with 80% Cu Recovery in 90 days
and then moved to75% Cu Recovery in 120 days.
REGIONAL GEOLOGY
The diapirs consist essentially of blocks of feldspathic-siliceous dolomites, siltstones and sandstones and bedded micaceous quartzite set in a matrix of dolomitic breccia. The degree of crushing varies from diapir to diapir. They may also contain large blocks or rafts of the host lithologies.
Copper mineralisation
There is a strong spatial association between diapirs and the abundant small scale Cu and Pb-Zn mines throughout the northern Flinders Ranges. The Cu deposits on the ML’s are hosted by Umberatana Group sediments (predominantly the Tapley Hill Formation).
Copper mineralisation can be:
• Oxide copper occurrences, &• Primary (sulphide) copper occurrences
RMA DID NOT UNLOCK THE CODE OF THE REGION BUT WEWERE PATIENT AND PERSEVERED AND RE DISCOVERED IT.
Adelaide Walleroo Fertiliser in the 1980’s “unlocked the code" and planned to mine all three ML's. The AWF Board did not hit the go button in late 1989 due to "falling world copper prices, escalating mining costs and high interest rates“. Letter addressed to Director General, Dept. of Mines and Energy dated 11, Jan 1990.
EACH DEPOSIT HAS A DIFFERENT LEVEL OF FINESAND HARDNESS
Side note: If you remove the fines you upgrade the ore
ORE BODY CHARACTERISTICS
3 YRS OF LOW RISK PRODUCTIONAND IMMEDIATE CASH FLOW .
Step 2: Relocate plant to Lynda mine, 70km away. Step 3: Start mining ore at surface, Lynda deposit and Lorna Doone Siltstone.
Step 1: Recommission plant, flushing heaps and heap leach trial for Lynda.
REGIONAL EXECUTION STRATEGY
Lorna DooneLorna Doone & Lynda
Mt CoffinWest Jubilee, Sth Adiar, Elsie Adair
MOLPaltridge NthRosman EstPaltridge Sth
LCCM3 ML’s 2 EL’s
Stage 4
Yr 2 Yr 3 Yr 4 Yr 5
Detailed Planning & Approvals
Treat Existing Heap
Detailed Planning & Approvals
Plant Relocation from MOL & Construction
Mining Lynda & Lorna Doone Siltstone
Detailed Planning & Approvals
Plant Relocation to Mol, Mine Overburden
Mining PN & Mt CoffinExploration Targets on Mining Leases
Exploration Targets on Expl. Leases
Regionally Exploration
7-12 Mths
Stage 1 Stage 2 Stage 3 Stage 5
MO
LPa
ltrid
ge
Nor
th &
M
t Cof
finEx
plor
atio
n
Lyn
da &
Lo
rna
Doo
ne
1-6 Mths
LEIGH CREEK COPPER MINE PROJECT
Ready to Start
• Fundamentals for Copper strong.
• Suitable for many options: keep private; as a company starter or re starter; steady income source or as a regional development.
• Well thought-through execution strategy . Corner stone being the first two projects. Which the Apr 16 Feasibility Study gives an estimated Pre Tax cashflow of $14M. Which will change to be marginally lower when the Nov 16 FS is complete.
• Pipeline of five other minable deposits.
• Completing the above will consolidate a pathway to regional growth.
For further information please contact Jonathon Trewartha Phone: (0) 414 989 107 Email: [email protected]
THANK YOU
COMPETENT PERSON’S STATEMENTCompetent Person StatementThe information in this report that relates to Exploration Results and Mineral Resources is based on information compiled by David Larsen who is a Member of the Australian Institute of Geoscientists (MAIG), and is a shareholder in Resilience Mining Australia (RMA). David Larsen has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activities which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code). Mr Larsen consents to the inclusion in this presentation of the matter based on his information in the form and context in which it appears.
WHY BUY THE ASSET, LCCM?Benefit
• Fundamentals for Copper strong.• Suitable for many options: keep private; as a company starter or re starter; steady
income source or as a regional development.• Well thought-through execution strategy . Corner stone being the first two projects.
Which the Feasibility Study gives an estimated Pre Tax cashflow of $14M. The two projects are:
• Re commissioning of existing plant and retreatment of old heaps.• Mining of the Lynda deposit and a portion of the Lorna Doone Deposit.
• Pipeline of five other minable deposits.• Completing the above will consolidate a pathway to regional growth.
CostTotal Project Capital $2M + Cost of Purchase.
Low Risk for the first two projects, nearly three years production.• Previous JORC Resource 2004 being upgrade to JORC 12 .• Existing 3 Mining leases & Plant in C&M. Approvals to start re-treatment pending.• Extensive drilling, test work, Feasibility & other studies complete. • First pit is shallow, with ore on surface. With no significant processing issues. • Initial cashflow from old heaps and short payback period for the whole project.
CORNER STONE: LYNDA AND LORNA DOONE (SILTSTONE)
* FS is currently being updated to include latest Metallurgical results
Feasibility Study April 16*
