www.aro.com.au +61 2 8046 2799
Suite 6, Level 5, 189 Kent Street, Sydney NSW 2000GPO Box 2733, Sydney NSW 2001, Australia
Re-introducing Astro Resources
Sydney
6 February 2018
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Disclaimer and Forward Looking Statement
The purpose of this presentation is to provide background information to assist readers in obtaining a general understanding
of Astro Resources NL (Astro) and its objectives. It is not and should not be considered as an offer or invitation to apply for or
purchase securities of the Company or as a recommendation or inducement to make an offer or invitation in respect of the
Company’s securities. This presentation is not a disclosure document under Australian law or under any other law. It does not
purport to contain all the information any reader or prospective investor may require to make an investment decision and it
does not contain all of the information required by Australian law or any other law to be disclosed in a prospectus.
No representation or warranty, express or implied, is given as to the fairness, accuracy, completeness, reliability or adequacy
of statements, estimates, opinions or other information, or the reasonableness of any assumption or statement in this
presentation (any of which may change without notice), or the likelihood of achievement or reasonableness of forecasts or
prospective statements in this presentation. Forecasts and prospective statements are by their nature subject to significant
uncertainties and contingencies. Forecasts and prospective statements in this presentation are based on current
expectations about future events and are subject to risks, uncertainties and assumptions that could cause actual results to
differ materially from the expectations described.
Readers should make their own independent assessment of the information and take their own independent professional
advice in relation to the information and any proposed action to be taken in on the basis of the information. To the
maximum extent permitted by law, Astro and its professional advisors and their related bodies corporate, affiliates and each
of their respective directors, officers, partners, employees, advisers and agents and any other person involved in the
preparation of this presentation disclaim all liability and responsibility (including without limitation any liability arising from
fault or negligence) for any direct or indirect loss or damage which may arise or be suffered through use of or reliance on
anything contained in, or omitted from, this presentation. Neither Astro nor its advisors have any responsibility or obligation
to inform the reader of any matter arsing or coming to their notice after the date of this presentation, which may affect any
matter referred to in the presentation.
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Astro is poised to advance a select portfolio of diverse, high quality assets.
• We have honed our portfolio to diverse, high quality assets in proven areas of Nevada and Western Australia.
• We have the management and partners in place to advance those assets.
• We are applying capital to a responsible plan with milestones expected through 2018 and 2019.
Re-introducing Astro Resources
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| 4Investor Presentation January 2018
A diverse portfolio of high-quality assets
Astro has retained or acquired three well-defined licences in diverse, proven resource-producing areas. The resulting portfolio reduces both exploration and commodity risk.
ANO 2 Project "Reset"
Governor Broome mineral sands (WA)Two assets in a rich WA corridor, one a JV with Iluka.
Kimberley diamonds (WA)Large-scale earthworks required on promising channels that run towards the Argyle diamond mine
Needles epithermal gold (Nevada)Highly promising initial sampling in historically notable area.
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Removing the deadwood
The portfolio has been substantially de-risked, with Astro’s technical team reviewing all assets over the past 30 months, acting on those which are promising.
Mineral Sands
E70/2464 E70/2655
E70/2708 E70/3681
E70/3682 E70/4119
E04/1405 P70/1585
P70/1586 P70/1587
Diamonds
E04/1405 P80/1615
E80/4120 P80/1616
E80/3315 P80/1617
Gold
E52/2480 E52/2481
E52/2482
Other
EL23403 EL24182
E80/3243 E80/4316
Held January 2018
Governor
Broome, WA
R70/53
Needles, NV
Lower Smoke
Creek, WA
E80/4120
Jack Track, WA
E70/2464
Active and
promising
Held June 2015Held June 2011
Mineral Sands
E70/2372 E70/2464
E70/2655 E70/2708
E70/3681 E70/3682
E70/4119
P70/1585 P70/1586
P70/1587 P70/1639
P70/1584 P70/1640
Diamonds
E80/4120
Other
E80/4316
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Needles (Nevada) overview
ANO 2 Project "R
Needles has shown highly promising initial sampling in a proven gold-silver producing area.
• Location. Nye County, 330 km E of Las Vegas. An
area of rich epithermal gold-silver deposits proven
since 1900, with Round Mountain Mine producing
Au 20m oz and Ag 311,000kg.
• Asset. 113 unpatented mineral lode mining claims
over 2,335 acres.
• Highlights. Rock chip sampling has identified high
priority target zones.
• Progress. Pushing ahead with reconnaissance and
detailed follow up as soon as Nevada winter ends.
Acquisition
• 4 Oct 17: purchase
ResultsReconnaissance
• Nov 17: Rock chip
sampling
Target areas
• Apr 18: Drill target
identification.
Drilling
• June/July 2018
Carlin-type Au
Epithermal Au/Ag
Porphyry Cu
Deposits
Round
Mountain
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Nevada (Needles) acquisition
ANO 2 Project "Reset"
Astro exploration consultants Centric Minerals Management has identified strong prospects for target mineralisation of epithermal gold (± silver and base metals)
Acquisition
• 4 Oct 17: purchase
• Source. Asset identified by Centric Minerals
Management Pty Ltd
• Geology. Near eastern margin of a 15km wide
eroded volcano/caldera complex, part of extensive
continental magmatism, formed between ~32 and
~19 million years ago
• Main deposit type. Structurally controlled, silver-
antimony-gold-bearing epithermal quartz veins.
Silver and arsenic-bearing sulphides characterize
areas of high-grade gold-silver mineralisation.
• History. Small-scale historical mining and
exploration.
• N143-101 report. “a paleotectonic and
stratigraphic setting that is highly conducive to the
development of epithermal Au-Ag” … “clearly
analogous to that of Round Mountain Mine”
Needles Property boundary
Anomalous gold in geochemistry (4 areas)
New priority target area
Caldera rim
1 km
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Nevada (Needles) reconnaissance
ANO 2 Project "Reset"
Two sets of sampling by Centric Minerals has identified several areas of mineralisation.
Reconnaissance
• Nov 17: Rock chip
sampling
• Work: Rock chip sampling by
Centric Minerals in 2015 and
again in 2017
• Result: Sufficient to invest in a pole-dipole
resistivity geo-physical survey to determine
anomalous areas of potential mineralisation
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Governor Broome overview
ANO 2 Project "Reset"
Astro has two assets in the rich mineral sands corridor of WA’s southwest corner. The western licence contains a JORC resource 100% owned by Astro; Astro owns 20% of the eastern licence in a JV with Iluka
• Location. SE West Australia, 70km south of Busselton,
South River Coastal Plain.
• Assets. R70/53 (100% owned) plus 20% of Inferred
Resources in adjacent E70/2464.
• Highlights.
• R70/53 Indicated Resource 30Mt @ 4.9% HM
• R70/53 Inferred Resource 125Mt @ 4.4% HM
• Potential access to Iluka’s nearby processing plants
• Progress. Consultants engaged to confirm economic
potential on “Warren Sands” mineralisation (near
surface sand resource), reporting in March 2018.
Acquisition• 2011:
E70/2372 secured.
ResultsReconnaissance• 2012: Initial drilling
and sampling
completed.
Target areas• 2015: JORC Code
complaint resources
reported and
R70/53 granted.
Scoping study• Nov 17. Mining and
Economic analysis of
WS mineralisation
due Mar18.
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Governor Broome details
ANO 2 Project "Reset"
A JORC resource has been long established. A scoping study to confirm economic and mining is due in March 2018, focusing on the Indicated low-slime Warren Sands mineralisation.
Target areas
• 2015. JORC Code
Compliant resource
estimated and R70/53
granted.
Scoping study
• Nov 17.
Economic and
mining analysis
due in March 18.
• Consultants engaged to
remodel its resource
data and undertake a
preliminary mine
schedule and scoping
study to confirm mining
and economic potential.
• Focus is on Warren
Sands mineralisation,
which has a low slimes
content of 4.9%; as such
may be more easily
processed.
JORC Report Number WA15/01
prepared by J.J.G. Doepel BSc
(Hons), Principal Geologist,
Continental Resource Management Pty Ltd
Mt%
HM%
Slimes%
Oversize
Indicated 30 4.9 12 8.1
Inferred 170 4.0 14 7.4
Total 200 4.2 14 7.5
Resource summary at min 2% HM lower block-cut
Cross section at 6,209,640mN
Refer to ASX market announcement dated 12 February 2015, for details of the resource, including those assumptions made by the
Competent Person. Astro is not aware of any changes since the date of the above announcement.
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Jack Track overview
ANO 2 Project "Reset"
JORC resource identified, for which Iluka has applied for a retention licence.
• Location. SE West Australia, 70km south of Busselton, South River Coastal Plain.
• Asset. E70/2464 “Jack Track” section (20% owned, Iluka 80%).
• Highlights.
• Inferred Resource of 18.8Mt @ 4.7% HM with 890,000t HM at 3.0% HM cut-off grade.
• Target area identified
• Progress. Iluka applying for a retention licence.
Acquisition
• 2011: Acquired
• Dec 14: JV with
Iluka to establish
maiden resource.
Reconnaissance
• Jan 15 to Mar 16
continued
evaluation.
• Dec 17: Iluka
applies for
retention licence
Target areas
• Apr 16: JORC Code
compliant
resource
estimated.
Jack Track
resource
Refer to ASX market announcement dated 26 April 2016, for details of the maiden resource, including those assumptions
made by the Competent Person. Astro is not aware of any changes since the date of the above announcement.
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Lower Smoke Creek overview
ANO 2 Project "Reset"
Asset exceeding expectations, with large-scale earthworks required. Future sampling is planned on two promising palaeo-channels that run towards the Argyle diamond mine.
• Location. East Kimberley, WA, adjoining the Argyle and Bow River Diamond Mines.
• Assets. E80/4120 Lower Smoke Creek, together with Heavy Mineral Separation (HMS) plant on site.
• Highlights. 10m palaeo-channel of 5 million m3 gravel in a relatively deep bedrock sump represents a compelling target for future exploration
• Progress. Asset exceeding expectations, with bulk sampling due to commence in 2019 using company’s HMS plant.
Acquisition• 2009 by ARO
ResultsReconnaissance• 1986-2005.
Successive
explorations confirm
diamondiferous
gravels.
Bulk sampling• 2018: Enviro
approvals and
funding steps.
• 2019: Sampling
outside wet season.
Target areas• Oct 16: GPR survey
identifies palaeo-
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Lower Smoke Creek details
ANO 2 Project "Reset"
In the main target area, a gravel accumulation infilling a relatively deep bedrock sump, represents a compelling target for future exploration.
Reconnaissance• 1986-2005.
Successive
explorations confirm
diamondiferous
gravels.
• Exploration
included limited
bulk sampling,
airborne
magnetics,
geochemical soil
sampling, and
drilling
Target areas
• Oct 16. GPR
survey identifies
palaeo- channels.
‒ extensions of known
diamond areas running
southwest towards the
Argyle mine
‒ main target: 10m thick
channel, 5 million m3
gravel in a relatively
deep bedrock sump,
represents a compelling
target for future
exploration
‒ second target: 5m thick
channel, diverted
northwest probably in
response to a bedrock
barrier.
• Work: 57-line km ground penetrating radar (GPR) survey together
with 3D modelling of main alluvial trap sites
• Result: Two likely palaeostream channels are targets for alluvial
diamond deposits:
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Experience
• 35 years’ mining experience in Africa, North
America and Australia in production, project
evaluation, feasibility studies and contract
negotiations.
• 18 years’ technical director experience with several
ASX listed companies, leading exploration programs,
JV negotiations and capital raisings.
Track record
• Operational mine management background with Rio
Tinto and Anglo-American.
• Joint JV General Manager bringing the 120,00oz pa
Nolans Gold mine into operation.
• MD Range Resources Ltd negotiated a US$50M JV
with the Lundin Group.
Technical expertise
Corporate Experience
• Principals in the US and Australia have mining
exploration experience in Americas, Asia and
Australia.
• US-based principal geologist has over 35 years’
experience in epithermal gold-silver project
assessment.
Track record
• Centric Minerals Management is currently managing
four other drill-ready gold projects in Nevada and
Arizona.
• US principal has been involved in the discovery of
gold and silver deposits in the western US that have
lead to both new mines and mine expansions.
• Principals in the US and Australia have deep
experience in managing gold-silver projects from
prospect identification through resource delineation
and feasibility.
Michael Povey, Executive DirectorC.Eng. M.Sc B.Sc (Hons) ACSM M.Aus I.M.M
Centric Minerals Management, Consultants
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Management expertise
Experience
• Director of Gun Capital Corporate, a strategic
investor and advisory services company.
• Representative of the major shareholder, Mining
Investments Ltd, a strategic investor in junior
exploration companies.
• Successful value creation with Medibio Limited
(MEB) and Cape Lambert (CFE) among other
companies.
• Former director of Medibio Limited and Esperance
Minerals Limited.
Experience
• 35 years’ experience in corporate finance,
international M&A, accounting and other advisory
related services in Sydney-based mid-tier
accounting firms.
• As Executive Director of East Coast Minerals (ECM,
now part of European Lithium Limited) responsible
for capitalisation and progression of the lithium
project to JORC resource.
• Public company experience includes Executive
Director, Company Secretary and CFO of Greenvale
Energy Limited (ASX: GRV), ED and Interim CFO of
Ashley Services Group Limited (ASX:ASH), Chair of
Medibio Limited (ASX: MEB) and NED of Esperance
Minerals Limited (ASX: ESM).
Jacob Khouri
Non-executive Chairman
Vince Fayad
Executive Director, CFO, Company Secretary
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Development record and plan
Astro will be active on its three primary properties through 2018, with the first scoping results being from Governor Broome in early 2018.
Acquisition
2011
Results
March 18.
Reconn
2016
Targets
2016
Scoping
Nov 17
Governor Broome, WA
2018Q1
2018Q2
2018Q3
2018Q4
2019
Acquisition
2014
Reconn
2016
Targets
2017
Jack Track, WA Further action by Iluka
Acquisition
2009
Reconnaissance
Previous
Targets
2017
Bulk sampling.
2018 Plans and approvals 2019 Sampling.
Lower Smoke Creek, WA
Acquisition
4 Oct 17
Results
2018-19
Reconnaissance
Nov 17: Rock chip sampling
Target areas
Apr 18:Drill target
identification
Drilling
June/July
2018
Needles, Nevada
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Past application of funds
Astro has explored several tenements over 2.5 years at a cost of approximately $2.5m, and is now advancing its selected high quality assets.
FUNDS RAISED FY 2016 FY 2017 HFY Dec 2018*
Advances received from associated parties 514 - 790
Proceeds from rights issue - 3,090 -
Loans repaid/capitalised - (1,985) -
(Decrease)/Increase in cash at bank (120) (14) 64
Total 394 1,091 854
*unaudited
** Abnormal costs include transaction costs for the aborted technology transaction, convertible debt facilities
and prior years stamp duty on the initial 80% acquisition of the Governor Broome Sands tenement.
FUNDS APPLIED FY 2016 FY 2017 HFY Dec 2018*
Operating Expenditure 472 434 217
Abnormal expenditure** 258 166 5
Acquisition of Needles tenement - - 399
Exploration Costs 166 148 145
Interest Expense 64 - 22
Brokerage costs capitalised (30) (162)
(Decrease)/Increase in trade and other creditors (417) 524 55
(Decrease)/Increase in prepayments and other current assets (9) (22) 27
(Decrease)/Increase in Goods and Services Tax (GST) (15) 16 (10)
Depreciation of property, plant and equipment (14) (13) (6)
(Decrease) in other asset (81) - -
Total 394 1,091 854
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Funding for the next phase
To advance its selected properties, Astro currently has $271,000 in available funds (after continued support from its largest shareholder), excluding any options to be exercised.
Substantial shareholders Share of fully paid capital
Mining Investments Limited 34.0%
SEK Investments Pty Ltd 9.97%
Carkaho Holdings Pty Limited 5.25%
Shares issued at 31 Dec 2017
Fully paid ordinary shares (price $0.004 at 25 January 2018)
Opening share capital 34,902,097
Conversion of convertible note debt 75,463,818
Issue from rights issue 772,561,405
Total ordinary shares on issue 882,927,320
Shares over which options granted
(exercise price $0.004, expiry 8 March 2018) 772,561,405
Partly paid ordinary shares issued Nil
Fully diluted number of shares on issue 1,655,488,725
Available funds $’000
Cash on hand 71
Mining Investments Ltd – Loan Facility 200
Initial facility 1000
Drawdown as at 31/12/2017 (770)
Interest and borrowing costs (30)
Currently available funds 271
Potential funds from options if fully exercised 3,088
Potentially available funds 3,359
Mining Investments loan terms
Terms of the loan from Mining Investments are:
• interest rate 12% p.a;
• unsecured loan
• repayable 13 October 2018, with early repayment by Astro without
penalty, and extendable by either party for a further 13 months.
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ContactVince Fayad, Company Secretary, [email protected] or [email protected]
ASX AnnouncementsSee aro.com.au or ASX listing
18 Jan 2018 Quarterly activities and cashflow report
18 Dec 2017 Update on Needles Exploration Project
17 Oct 2017 Quarterly activities and cashflow report
10 Oct 2017 Completion of Needles acquisition and board changes
13 Sep 2017 2017 Annual Report
04 Sep 2017 Market update
26 Apr 2016 Jack Track Maiden Inferred Heavy Mineral Resource
12 Feb 2015 Update on Governor Broome Resource
Further information
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The information in this report that relates to the Needles Property is based on information compiled by Charles Straw, a Director of CentricMinerals Management. Mr Straw who is a member of the Australian Institute of Mining and Metallurgy has sufficient experience which is relevantto the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a CompetentPerson under the 2012 Edition of the ‘Australasian Code for reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr. Strawconsents to the inclusion in this announcement of the matters based on his information in the form and context in which it appears.
The information in this presentation as it relates to Mineral Resources and Exploration Targets for the Governor Broome Deposit (excluding thatof the lluka JV is based on information compiled by John Doepel (Director of Continental Resource Management Pty Ltd (CRM), who is a memberof the Australasian Institute of Mining and Metallurgy). Mr Doepel has sufficient experience in mineral resource estimation, which is relevant tothe style of mineralisation and type of deposit under consideration and are qualified as a Competent Person as defined in the 2004 edition of the“Australasian Code for Reporting of Mineral Resources and Ore Reserves”. Mr Doepel consents to the inclusion in the report of the information inthe form and context in which it appears.
The information in this report as it relates to Iluka JV is based on information compiled by Shaun Seah under the review of Brett Gibson who is amember of The Australasian Institute of Geoscientists and a full time employee of Iluka. Brett Gibson has sufficient experience which is relevantto this style of mineralisation to qualify as a Competent Person as defined in the 2012 Edition of the JORC Code and consents to the inclusion inthe report of the matters based on information in the form and context in which it appears.
The information in this report as it relates to Mineral Resources for the East Kimberley diamond deposits is based on information compiled byMichael Povey C.Eng who is a member of the Australasian Institute of Mining and Metallurgy). Mr Povey has sufficient experience in mineralresource estimation, which is relevant to the style of mineralisation and type of deposit under consideration and are qualified as a CompetentPerson as defined in the 2004 edition of the “Australasian Code for Reporting of Mineral Resources and Ore Reserves”. Mr Povey consents to theinclusion in the report of the information in the form and context in which it appears.
Compliance Statement
The Company confirms:
• it is not aware of any new information or data that materially affects the information included in the relevant market announcement; and
• in the case of estimates of Mineral Resources or Ore Reserves, the company confirms that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed.
Competent PersonsF
or p
erso
nal u
se o
nly