Mithril Resources (ASX: MTH)
David Hutton | Managing Director | 4 February 2015
Stark – An emerging WA Copper Nickel PGE Discovery
WA Goldfields
Focused on new Stark Discovery
Copper Nickel PGE’s
Existing 265Kt copper metal inventory*
Slide 2
Stark
Company Snapshot
* Nanadie Well and Basil Copper Deposits attributable copper metal – See Appendix for JORC Information
Overview
Shares on issue 421 million
Options (unlisted) 22.1 million
Market Cap $2.10M
Cash (31/12/2015) $1.25M
Investments $0.36M (MGV shareholding)
Directors and Management
Graham Ascough Non Executive Chairman
David Hutton Managing Director
Donald Stephens Non Executive Director & Company Secretary
Jim McKinnon-Matthews Geology Manager
Shareholders
Top 40 hold 45%
Retail – 80.1% Institutions – 17.3% o Minotaur Exploration - 7.8% o Perth Capital / Wythenshawe - 6.3% o Consolidated Minerals - 1.9% o Scintilla Strategic Investments – 1.3%
Directors and Management – 2.6%
Slide 3
Corporate Summary
Stark Prospect and Nanadie Well Copper Deposit (151Kt Cu metal) located on the Nanadie Well JV
JV with Intermin Resources (ASX: IRC) whereby MTH can earn 75% by spending $4M over 6 years
Interpreted Stark strike extensions on 100% - owned tenement applications (non JV)
Slide 4
Meekatharra
JV agreement executed: December 2013
Key attractions for Mithril:
o Regional Setting
o Existing extensive mineralisation at Nanadie Well Copper Deposit
o Significant exploration upside
o Ability to apply new geological ideas
Magmatic nickel sulphides recognised at Nanadie Well: April 2014
“Boots on ground” geological mapping: April - June 2014
Stark copper - nickel - PGE gossan identified: April 2014
Bedrock EM Conductors identified: September 2014
Semi massive sulphides in first drill test of EM conductors: December 2014
Results announced: January 2015
Follow up diamond drilling: next week
Slide 5
History
Slide 6
Regional Setting
The right address
Stark occurs adjacent to a crustal scale structure - “Youanmi Shear Zone”
Extends to + 25km depth and has acted as a giant “plumbing system”
Big deposits need big “plumbing systems”
MTH has over 100 kilometres of the Youanmi Shear Zone covered
Mithril discovery - no drilling prior to December 2014
High tenor magmatic sulphides (chalcopyrite - pyrrhotite)
Ground and downhole EM geophysics “sees” the mineralisation
First ever drilling returns strong assay results from each hole drilled:
16m @ 0.81% copper, 0.09% nickel, and 0.39g/t PGE’s from 183 metres including 4m @1.91% copper, 0.18% nickel, and 0.96g/t PGE’s (NRC14008)
13m @ 0.44% copper, 0.08% nickel, and 0.24g/t PGE’s from 144 metres including 2m @1.04% copper, 0.18% nickel, and 0.49g/t PGE’s (NRC14003)
2m @ 1.32% copper, 0.03% nickel and 0.80g/t PGE’s from 76 metres (NRC14007)
Grade increasing with depth
Mineralisation remains OPEN in all directions
Excellent size and grade potential
Slide 7
Stark Prospect
Slide 8
High tenor sulphides
2% copper in semi-massive sulphides contain ~7% sulphur
Massive sulphides are typically ~30% sulphur
Stark massive sulphides could have up to 8% copper, 1% nickel, 4g/t PGE’s and represent:
A high - value exploration target
Hole ID From Width Cu_% Ni_% Au_g/t Pt_g/t Pd_g/t Au+Pt+Pd_g/t S_%
NRC14008 182 1 0.13 0.02 0.01 0.02 0.03 0.05 0.58
NRC14008 183 1 0.37 0.07 0.01 0.03 0.11 0.15 1.99
NRC14008 184 1 0.76 0.06 0.03 0.02 0.14 0.19 2.36
NRC14008 185 1 0.45 0.10 0.03 0.04 0.15 0.22 3.06
NRC14008 186 1 0.58 0.07 0.05 0.02 0.13 0.20 2.31
NRC14008 187 1 0.31 0.03 0.03 0.02 0.05 0.09 1.03
NRC14008 188 1 0.59 0.12 0.11 0.05 0.27 0.42 3.67
NRC14008 189 1 0.34 0.06 0.04 0.03 0.12 0.19 1.74
NRC14008 190 1 0.31 0.06 0.04 0.03 0.09 0.15 1.46
NRC14008 191 1 0.17 0.03 0.03 0.01 0.03 0.08 0.73
NRC14008 192 1 0.54 0.03 0.11 0.04 0.07 0.21 1.36
NRC14008 193 1 0.61 0.04 0.16 0.04 0.12 0.31 1.58
NRC14008 194 1 1.49 0.08 0.27 0.18 0.26 0.71 3.08
NRC14008 195 1 1.23 0.19 0.26 0.32 0.53 1.11 5.46
NRC14008 196 1 1.97 0.26 0.28 0.09 0.38 0.75 7.55
NRC14008 197 1 2.95 0.18 0.46 0.16 0.64 1.26 7.02
NRC14008 198 1 0.28 0.02 0.03 0.02 0.06 0.11 0.52
NRC14008 199 1 0.01 0.00 0.00 -0.01 0.00 0.00 0.04
Sulphur Copper
NRC14003 – 008 cross-section
Two RC holes drilled down dip of surface gossan targeting bedrock EM conductor
Multiple mineralised zones including semi massive sulphides at base of a mafic intrusion
Width and grade of mineralisation increasing down dip
Remains OPEN in all directions
300 metre diamond drill hole to confirm increasing grade and continuity of mineralisation commencing next week
Slide 9
Size and grade potential
Slide 10
Size and grade potential
Target pierce point: Planned diamond drill hole
500 metres
Slide 11
Size and grade potential
DHTEM surveying confirms drilled sulphides as source of original ground EM conductors
Off-hole conductors modelled up to 4000S – very high conductance (consistent with massive sulphides)
NRC14008 DHTEM profile: Semi massive sulphides at 195m – Good off-hole response (near hole) persisting to 50 msec
NRC14003 DHTEM profile: Semi massive sulphides at 152m – Good off-hole response persisting to 50 msec
Size and grade potential
Nanadie Well Copper Deposit
(151Kt Cu metal)
Magnetic Trend
Gabbro outcrop boundary
Stark Gossan
Bedrock EM Conductor Plates
500 metres
11m @ 0.33%Cu, 0.06%Ni, 0.31g/t PGE’s
2m @ 1.32%Cu, 0.03%Ni, 0.80g/t PGE’s
Slide 12
Slide 13
Regional potential
20 kilometres of prospective rocks
Directly along strike from Stark
Shallow (≤ 20 metres) cover
No prior drilling or EM geophysics
Multiple untested magnetic targets
Easy access
Reconnaissance activities planned following tenement grant (June 2015 Qtr.)
Stark – Nanadie Well Deposit
MTH - 100%
Boundary of MTH ground EM surveys
Analysis of selected samples for full PGE suite - underway
Diamond drilling - February
Assay Results - March
Slide 14
Next Steps
WA Goldfields
Focused on new Stark Discovery
Copper Nickel PGE’s
Existing 265Kt copper metal inventory*
Stark
Company Snapshot
* Nanadie Well and Basil Copper Deposits attributable copper metal – See Appendix for JORC Information
Slide 15
Refer to Intermin Resources’ ASX Announcement “Initial Resource Estimate for the Nanadie Well Cu-Au Project” dated 19 September 2013.
The information pertaining to the Nanadie Well Copper Deposit Inferred Resource was prepared and first disclosed by Intermin Resources under the JORC Code 2004. It has not been updated since to comply with the JORC Code 2012 on the basis that the information has not materially changed since it was last reported.
2004 JORC Code
Classification
Tonnes
(Mt) Copper % Gold ppm Contained Copper (tonnes) Contained gold (ounces)
Inferred 36.07 0.42 0.064 151,506 74,233
Nanadie Well Copper Deposit (MTH earning 75%)
Slide 16
JORC Information
Basil Copper Deposit (MTH 100%)
2004 JORC Code
Classification
Tonnes
(Mt) Copper % Cobalt% Contained Copper (tonnes) Contained cobalt (tonnes)
Inferred 26.5 0.57 0.05 151,050 13,250
The Inferred Mineral Resource of 26.5Mt @ 0.57% copper, 0.05% cobalt has been calculated using a 0.3% copper cut-off grade. The Resource is composed of both interpolated and extrapolated resources and has been reported in accordance with the JORC Code (2004) and JORC/ASX Companies Update Number 03/07. Refer to ASX Announcement dated 21 March 2012 for further information.
It has not been updated since to comply with the JORC Code 2012 on the basis that the information has not materially
changed since it was last reported.
Further details (including JORC 2012 Code Reporting Tables, where applicable) for the information included in this Presentation can be
found in the following announcements previously lodged with the ASX.
Stark Copper Nickel PGE Discovery - 20.01.2015
Copper mineralisation increasing with depth at Stark - 16.12.2014
Drill targets defined at Stark copper nickel prospect - 07.10.2014
New EM conductors at Stark copper-nickel prospect - 11.09.2014
EM surveys underway at Meekatharra - 28.08.2014
Highly anomalous copper-nickel-PGE results at Nanadie Well - 21.08.2014
Further results reinforce Nanadie Well Cu-Ni prospectivity - 28.07.2014
Meekatharra Copper Update - 01.07.2014
Nickel gossan identified at Nanadie Well - 22.04.2014
Meekatharra Copper Exploration Update - 31.03.2014
Slide 17
JORC Information
This presentation has been prepared by Mithril Resources Limited (Mithril). The information contained in this presentation is a professional opinion only and is given in good faith. Certain information in this document has been derived from third parties and though Mithril has no reason to believe that it is not accurate, reliable or complete, it has not been independently audited or verified by Mithril. Any forward-looking statements included in this document involve subjective judgement and analysis and are subject to uncertainties, risks and contingencies, many of which are outside the control of, and may be unknown to, Mithril. In particular, they speak only as of the date of this document, they assume the success of Mithril’s strategies, and they are subject to significant regulatory, business, competitive and economic uncertainties and risks. Actual future events may vary materially from the forward-looking statements and the assumptions on which the forward-looking statements are based. Recipients of this document (Recipients) are cautioned to not place undue reliance on such forward-looking statements. Mithril makes no representation or warranty as to the accuracy, reliability or completeness of information in this document and does not take responsibility for updating any information or correcting any error or omission which may become apparent after this document has been issued. To the extent permitted by law, Mithril and its officers, employees, related bodies corporate and agents (Agents) disclaim all liability, direct, indirect or consequential (and whether or not arising out of the negligence, default or lack of care of Mithril and/or any of its Agents) for any loss or damage suffered by a Recipient or other persons arising out of, or in connection with, any use or reliance on this presentation or information. All amounts in A$ unless stated otherwise.
The information in this report that relates to the Nanadie Well Mineral Resource is based on information compiled by Mr David O’Farrell who is a full‐time employee of Intermin Resources Limited and a Member of the Australasian Institute of Mining and Metallurgy (AusIMM). Mr O’Farrell has more than five years’ 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 O’Farrell consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. The information in this report that relates to the Basil Mineral Resource, Exploration Targets and Exploration Results is based on information compiled by Mr David Hutton, who is a Competent Person, and a Fellow of The Australasian Institute of Mining and Metallurgy. Mr Hutton is Managing Director and a full-time employee of Mithril Resources Ltd. Mr Hutton has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken 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’. Mr Hutton consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
Slide 18
Disclaimer and Competent Persons Statement
Website – www.mithrilresources.com.au
Email – [email protected]
Phone – 08 8378 8200
Follow us on
MithrilResources@MTHResources
Slide 19
Contact Details