Positioned for Major Gold Discovery, West Africa

Transcription

1 ASX: ERX Psitined fr Majr Gld Discvery, West Africa Cte d Ivire 121 Mining Investment, Hng Kng Octber 2018

2 Cmpetent Persns Statement & Disclaimer Cautinary Statement Previusly Reprted Explratin Results This presentatin includes infrmatin relating t Explratin Results prepared and first disclsed under the JORC Cde Reference is made t previus ASX releases by Apll Cnslidated Limited (ASX:AOP) dated 15 February 2016, 13 July 2016, 30 Nvember 2016, 9 January 2017, 3 April 2017, 24 July 2017 and 8 June Frward Lking Statements This presentatin may cntain certain frward lking statements and prjectins regarding estimated resurces; planned prductin and perating csts prfiles; planned capital requirements; and planned strategies and crprate bjectives. Such frward lking statements/prjectins are estimates fr discussin purpses nly and shuld nt be relied upn. They are nt guarantees f future perfrmance and invlve knwn and unknwn risks, uncertainties and ther factrs many f which are beynd the cntrl f Exre Resurces Ltd. The frward lking statements/prjectins are inherently uncertain and may therefre differ materially frm results ultimately achieved. Exre Resurces Ltd des nt make any representatins and prvides n warranties cncerning the accuracy f the prjectins, and disclaims any bligatin t update r revise any frward lking statements/prjects based n new infrmatin, future events r therwise except t the extent required by applicable laws. Cmpetent Persns Statement The infrmatin in this reprt that relates t Explratin Results is based n infrmatin cmpiled by Dr Francis Wedin, wh is a Member f the Australasian Institute f Mining and Metallurgy. Dr Wedin is a full-time emplyee f Exre Resurces and has sufficient experience which is relevant t the style f mineralisatin and type f depsit under cnsideratin and t the activity he is undertaking t qualify as a cmpetent persn as defined in the 2012 Editin f the Australasian Cde fr reprting f Explratin Results, Explratin Targets, Mineral Resurces and Ore Reserves (JORC Cde). Dr Wedin cnsents t the inclusin in this reprt f the matters based upn the infrmatin in the frm and cntext in which it appears. Infrmatin in this release is extracted frm the reprts and annuncements frm Apll (ASX:AOP) which are available t view n Apll s ASX annuncement platfrm and its website available t view at The cmpany cnfirms that it is nt aware f any new infrmatin r data that materially affects the infrmatin included in the riginal market annuncements. The cmpany cnfirms that the frm and cntext in which the Cmpetent Persn s findings are presented have nt been materially mdified frm the riginal market annuncement. Exre Resurces 121 Mining Investment Hng Kng, Octber ASX:ERX 2

3 Investment Highlights Substantial and strategic 830km 2 psitin within the mst exciting lcatin in Cte d Ivire Surrunded by several recent +1Mz gld discveries and perating gld mines Pipeline f cmpelling drill targets based n large scale sil and aircre anmalies with favurable gelgy First prspect subject t RC drilling returned exceptinal results frm a small drilling prgram including 1 : 22.52g/t gld frm 8m 11.24g/t gld frm 12m 9.07g/t gld frm 50m 2.93g/t gld frm 65m Prven jurisdictin fr explratin, permitting and mine develpment Mdern and transparent mining cde with attractive fiscal regime $15.5 millin 2 f cash t fund an aggressive explratin prgram 1 Refer AOP ASX annuncements dated 13 July 2016 and 30 Nvember $15.25M as at 30 September 2018 pus $0.25M refundable bnd due Exre Resurces 121 Mining Investment Hng Kng, Octber ASX:ERX 3

4 Cmpany Overview Capital Structure Share Price 1 Current Shares n Issue 372.8M (ASX:ERX) 4.1 cents Acquisitin Shares (t be issued) 90.0M 462.8M Management Perfrmance Optins M Other Optins M 24.0M Market Capitalisatin Cash & Receivables (30 Sept 2018) 4 Liabilities Enterprise Value A$19.0M A$15.5M Nil A$3.5M 1 As at 18 Octber M Perfrmance Optins (vesting cnditins ne third 7.5 cents, ne third 10 cents, ne third JORC resurce >1.5g/t) M Optins exercisable at 1.6 cents by 31 Dec $15.25M as at 30 Sept 2018 plus $0.25M refundable bnd due Bard and Management Jhn Fitzgerald, Nn-Executive Chairman Experienced resurce financier having held senir executive psitins with varius Investment Banks Nn-Executive and lead Independent Directr f Nrthern Star Resurces Ltd (ASX:NST) Nn-Executive Directr f Danakali Resurces Ltd (ASX:DNK) Previusly Chairman f Integra Mining Ltd and Athertn Resurces Justin Tremain, Managing Directr Funding Managing Directr f Renaissance Minerals Ltd until its takever in 2016 Previusly Executive Directr f Emerald Resurces NL 10 years management experience in explratin and feasibility stage in develping cuntries 10 years prir experience in resurce financing Dr Francis Wedin, Technical Directr Gelgist PhD in gld explratin +10 years experience in explratin Senir technical rles in Australia and Eurpe Exre Resurces 121 Mining Investment Hng Kng, Octber ASX:ERX 4

5 Cte d Ivire Plitical stability with strng ecnmic perfrmance Last under-explred district within the prlific Birimian Gld Belt which hsts ver 60 +1Mz gld depsits Largest endwment f hst rck (35% f the Birimian Greenstne) but least explred Outstanding infrastructure HV transmissin lines, hydr pwer, bitumen rads, excellent access, flat tpgraphy A new mdern, transparent and attractive mining cde implemented in March 2014: Tax hliday fr initial 5 years f prductin Variable ryalty rate based n prevailing gld price (3.5% at US$1,000-US$1,300/z) 10% gvernment interest in mining licences fllwing capital repayment Exemptin frm VAT and Imprt Duties fr bth explratin and mining licences Five +1Mz gld mines develped in last 10 years and several mre at resurce and feasibility stage Exre Resurces 121 Mining Investment Hng Kng, Octber ASX:ERX 5

6 Prject Lcatin Lcated in nrthern Cte d Ivire Sparsely ppulated, n frestry reserves Lcated n the cnvergence f tw f the mst prlific gld belts; the Tngn Gld Belt and the Syama Gld Belt Majr nearby gld depsits assciated with the same gelgy and structures include: 4.2Mz Tngn Gld Mine (Randgld) ~40km 11.5Mz Syama Gld Mine (Reslute) ~90km 1.0Mz Sissingue Gld Mine (Perseus) ~50km Fnndara/Bundiali gld discvery (Randgld) - immediately adjacent Mark Bristw, Randgld CEO n Bundiali, the mst exciting gld prspect in West Africa Exre Resurces 121 Mining Investment Hng Kng, Octber ASX:ERX 6

7 Prject Overview and Ownership 80% wnership interest in substantial 830km 2 psitin Tw granted permits Bundiali and Krhg Targeting multi-millin unce gld prject in the near term Intersectin f the well-endwed Syama and Tngn Gld Belts Outstanding pipeline f xide, shallw explratin targets Drill-prven shallw, wide and high-grade gld mineralizatin. Key intersectins include 1 : 22.52g/t gld frm 8m 11.24g/t gld frm 12m 2.43g/t gld frm 65m 9.07g/t gld frm 50m 1 Refer AOP ASX annuncements dated 13 July 2016 and 30 Nvember 2016 Exre Resurces 121 Mining Investment Hng Kng, Octber ASX:ERX 7

8 Bundiali Permit Same gelgy and structures that hst Randgld s Tngn Gld Mine and its recent Fnndara Gld Discvery Residual sils surface gechemistry effective Limited gechemical sampling (30% f permit area) defined tw large scale (7-8km strike) anmalies Antinette Vernique Bedrck gld discvery at Antinette Central, being the first and nly prspect t be RC drill tested t date Vernique a large, high grade sil anmaly, still pen alng strike drill ready Mst f permit area is unexplred Exre Resurces 121 Mining Investment Hng Kng, Octber ASX:ERX 8

9 Antinette Prspect Bundiali Permit Lcated within the Syama gld crridr 600m f high grade strike defined with limited RC drilling Less than 10% f +7km gechemical anmaly tested Adjacent target identified and t be fllwed up as a pririty Resurce drilling t cmmence immediately f Antinette Central Adjacent targets untested with RC drilling Antinette Central Limit f RC drilling (see Slide 10) Exre Resurces 121 Mining Investment Hng Kng, Octber ASX:ERX 9

10 Antinette Central Bundiali Permit Open in all directins Only 3,000m acrss 28 RC hles t date (avg. depth f ~100m) Frm just 28 hles drilled: 25 intercepts >20 gram metre 9 intercepts > 50 gram metre Drill results include 1 : gld frm 8m 11.24g/t gld frm 12m 2.93g/t gld frm 65m 9.07g/t gld frm 50m 6.9g/t gld frm 58m 10.56g/t gld frm 44m 7.35g/t gld frm 84m Gd cntinuity f grade alng strike 11.24g/t Au 2.86g/t Au 5.29g/t Au 6.86g/t Au 2.74g/t Au 2.44g/t Au 7m@ 5.65g/t Au 7.15g/t Au 22.52g/t Au 6.69g/t Au 3.58g/t Au 6.77g/t Au 3.10g/t Au 2.84g/t Au 3.37g/t Au 3.25g/t Au 3.23g/t Au 2.45g/t Au 2.44g/t Au 1.87g/t Au 2.46g/t Au 5.69g/t Au 9.07g/t Au 2.93g/t Au 10.56g/t Au 7.35g/t Au 2.61g/t Au 5.25g/t Au 1 Refer AOP ASX annuncements dated 13 July 2016 and 30 Nvember g/t Au; 5.02g/t Au Exre Resurces 121 Mining Investment Hng Kng, Octber ASX:ERX 10

11 Antinette Prspect Bundiali Permit Open at depth Multiple parallel znes f mineralisatin emerging 0m Average depth f drilling <100 metres Deeply weathered metres f xide +10,000 metre RC drilling prgram 40m Define maiden resurce estimate (Q2 2019) Diagnstic leach test wrk (Q1 2019) 80m 120m Exre Resurces 121 Mining Investment Hng Kng, Octber ASX:ERX 11

12 Antinette Surrunds Bundiali Permit All targets utside f Antinette Central remain untested with RC drilling Antinette West Prspect 400m west f Antinette Central Shallw (<50m) aircre results include 1 : g/t gld EOH g/t gld EOH g/t gld Antinette West Antinette Suth-East Prspect Hsted in grandirite Shallw (<50m) aircre results include 1 : Antinette Central Antinette Suth-East g/t gld EOH g/t gld g/t gld - 1.0g/t gld g/t gld Antinette Suth-West Antinette Suth-West Prspect Artisanal wrkings Shallw (<50m) aircre results include 1 : g/t gld g/t gld 1 Refer AOP ASX annuncements dated 8 June 2018, 3 April 2017, 16 January 2017, 27 May 2016 and 15 February 2016 Exre Resurces 121 Mining Investment Hng Kng, Octber ASX:ERX 12

13 Vernique Prspect Bundiali Permit 8 kilmetre lng cherent, high tenr, sil anmaly striking NNE Similar gelgy and prximal t Tngn Gld Mine Very high grade sil samples ften >200ppb gld and up t 1,320ppb gld Open in all directins Majr discvery ptential Aircre drilling t be priritised t quickly define RC drill targets Exre Resurces 121 Mining Investment Hng Kng, Octber ASX:ERX 13

14 Krhg Permit Liberty Trend Limited wrk has defined a 20-kilmetre gld-in-sil anmaly alng the prlific Tngn gld crridr Only ~30% f the Krhg Permit area explred Adjacent t Randgld s Fnndara gld discvery (ptential 1-1.5Mz unce discvery at +2.5g/t1) Liberty 1 KHAC g/t Au In-situ gld cnfirmed at key prspects alng the Liberty trend with aircre drilling KHAC g/t Au KHAC g/t Au N RC drilling ever undertaken KHAC g/t Au KHAC g/t Au Liberty 2 KHAC g/t Au KHAC g/t Au Chert Zne Krik KHAC g/t Au Liberty 3 1 Refer Slide 16 KHAC g/t Au KHAC g/t Au Randgld Tngn Gld Mine Presentatin, Jan 2018 Exre Resurces 121 Mining Investment Hng Kng, Octber ASX:ERX 14

15 Liberty 2 Prspect Over 1 kilmetre f strike defined by shallw aircre drilling Remains OPEN Brad intersectins f +2g/t cntinuus ver entire strike extent: 2.04 g/t gld frm 0m 2.27g/t gld frm 0m 2.20g/t gld frm 24m 3.16g/t gld frm 8m 2.90g/t gld frm 8m Drilling underway Exre Resurces 121 Mining Investment Hng Kng, Octber ASX:ERX 15

16 Explratin Prgram Surface Sampling Majrity f 830km 2 prject area remains unsampled Previus 4,000 samples identified several anmalies that remain pen N stne left unturned cmprehensive ~15,000 sample prgram planned (400m x 100m) Bundiali Permit Prpsed Sampling Krhg Permit Prpsed Sampling Exre Resurces 121 Mining Investment Hng Kng, Octber ASX:ERX 16

17 Explratin Prgram +30,000m Drilling Immediate RC drilling at Antinette Central t define maiden JORC resurce estimate Immediate Aircre drilling at Vernique and Liberty t refine targets RC drilling f Vernique and Liberty t fllw aircre Preliminary metallurgical test wrk n Antinette Central Q Q Q Q RC Drilling Antinette RC drilling Vernique RC Drilling Liberty Aircre Drilling Liberty Aircre Drilling Vernique Gechemical Sil Sampling Metallurgical Test Wrk Antinette Maiden Resurce Antinette Exre Resurces 121 Mining Investment Hng Kng, Octber ASX:ERX 17

18 Summary Strategic 830km 2 grund hlding with an excellent address in Cte d Ivire Surrunded by several recent +1Mz gld discveries and perating gld mines Ptential prven with first prspect subject t RC drilling returning exceptinal results prviding near-term resurce definitin ptential Pipeline f cmpelling, large-scale drill targets Majr gld discvery ptential Prven jurisdictin fr explratin, permitting and mine develpment +30,000m drilling prgram underway cntinuus news flw $15.5 millin f cash t fund an aggressive explratin prgram Extremely mdest enterprise valuatin Exre Resurces 121 Mining Investment Hng Kng, Octber ASX:ERX 18

19 Cntact Justin Tremain Exre Resurces 121 Mining Investment Hng Kng, Octber ASX:ERX 19