A NEW SEARCH SPACE IN AUSTRALIAS PREMIER GOLD PROVINCE Tom Sanders, - - PowerPoint PPT Presentation

ASX Code: BRB www.breakerresources.com.au

A NEW SEARCH SPACE IN AUSTRALIA’S PREMIER GOLD PROVINCE

Tom Sanders, Australian Resources Conference, Zurich, 22 February 2013

Ca utiona ry Sta te me nt

2

Disc la ime r

DISCL AIME R T his pre se nta tio n ha s b e e n pre pa re d b y Bre a ke r Re so urc e s NL (“Co mpa ny”) in c o nne c tio n with pro viding g e ne ra l a nd b a c kg ro und info rma tio n o n the Co mpa ny. T his pre se nta tio n sho uld no t b e re lie d upo n a s a re pre se nta tio n o f a ny ma tte r tha t a n a dviso r o r po te ntia l inve sto r sho uld c o nsid e r in e va lua ting the Co mpa ny. T he Co mpa ny a nd its re la te d b o die s c o rpo ra te o r a ny o f its d ire c to rs, a g e nts, o ffic e rs o r e mplo ye e s do no t ma ke a ny re pre se nta tio ns o r wa rra nty, e xpre ss o r implie d, a s to

• r e ndo rse me nt o f the

Co mpa ny, the a c c ura c y o r c o mple te ne ss o f a ny info rma tio n, sta te me nts o r re pre se nta tio ns c o nta ine d in this pre se nta tio n, a nd the y d o no t a c c e pt a ny lia b ility wha tso e ve r (inc luding in ne g lig e nc e ) fo r a ny info rma tio n, re pre se nta tio n o r sta te me nt ma de in o r o mitte d fro m this pre se nta tio n. T his do c ume nt ma y c o nta in c e rta in fo rwa rd-lo o king sta te me nts whic h invo lve kno wn a nd unkno wn risks, d e la ys a nd unc e rta intie s no t unde r the Co mpa ny’ s c o ntro l whic h ma y c a use a c tua l re sults, pe rfo rma nc e o r a c hie ve me nts o f the Co mpa ny to b e ma te ria lly diffe re nt fro m the re sults, pe rfo rma nc e

• r e xpe c ta tio ns implie d b y the se

fo rwa rd lo o king sta te me nts. T he Co mpa ny ma ke s no re pre se nta tio n o r wa rra nty, e xpre ss o r implie d, a s to o r e ndo rse me nt o f the a c c ura c y o r c o mple te ne ss o f a ny info rma tio n, sta te me nts o r re pre se nta tio ns c o nta ine d in this pre se nta tio n with re spe c t to the Co mpa ny. Any disc ussio n in re la tio n to E xplo ra tio n T a rg e ts, implie d o r sta te d, is o nly c o nc e ptua l in na ture . I nve sto rs a re a dvise d tha t b y the ir na ture a s visua l a ids, pre se nta tio ns pro vide info rma tio n in a summa ry fo rm. I nve sto rs a re urg e d to re a d suppo rting info rma tio n in full in ASX re le a se s. T his pre se nta tio n do e s no t c o nstitute a n o ffe r o f se c uritie s in the Co mpa ny no r sho uld this pre se nta tio n b e re lie d upo n b y a ny a dviso r o r po te ntia l inve sto r in ma king a n inve stme nt de c isio n in the Co mpa ny. COMPE T E NTPE RSONS ST AT E ME NT T he g e o lo g ic a l info rma tio n in this re po rt tha t re la te s to E xplo ra tio n Re sults is b a se d o n info rma tio n re vie we d b y Mr T

• m

Sa nde rs who is a me mb e r o f the Austra la sia n I nstitute o f Mining a nd Me ta llurg y. Mr Sa nde rs is a n E xe c utive o f Bre a ke r Re so urc e s NL a nd ha s b e e n e ng a g e d o n a n 80% o f full time b a sis. Mr Sa nde rs ha s suffic ie nt e xpe rie nc e whic h is re le va nt to the style o f mine ra lisa tio n a nd type o f de po sit und e r c o nsid e ra tio n to q ua lify a s a Co mpe te nt Pe rso n a s de fine d in the 2004 E ditio n o f the “Austra la sia n Co de fo r the Re po rting o f E xplo ra tio n Re sults, Mine ra l Re so urc e s a nd Ore Re se rve s”. Mr Sa nde rs c o nse nts to the inc lusio n in the re po rt o f the ma tte rs b a se d o n this info rma tio n in the fo rm a nd c o nte xt in whic h it a ppe a rs.

Our Busine ss

3



E sta b lishe d to c a pita lise o n tra nsfo rma tio na l c ha ng e s a ffe c ting g o ld e xplo ra tio n in We ste rn Austra lia ’ s E a ste rn Go ldfie lds Supe rte rra ne (E GST ) whic h a c c o unts fo r 75% o f Austra lia ’ s g o ld

E a ste rn Goldfie lds Supe rte rra ne (E GST ) Attila

Known Gold De posits Duke ton T ropic a na 10Moz 7.9Moz 1Moz



Bre a ke r is no w la rg e st te ne me nt ho lde r in the E GST a fte r “e a rly mo ve r” pe g g ing o f ke y struc ture s in No v 2010 (e ig ht 100%-o wne d pro je c ts, 5,500km2)



E xplora tion suc c e ss 4 months ASX listing

• a 32km g o ld tre nd o n virg in g ro und 80km NW
• f T

ro pic a na (20,000m drill pro g ra m in pro g re ss)

• po sitive re sults o n a ll o the r sa mple d pro je c ts



Busine ss stra te g y

Gro wth thro ug h disc o ve ry using c o st-e ffe c tive , mo de rn so il sa mpling to o ls in une xplo re d pa rts o f a hig h-e ndo wme nt g o ld pro vinc e



L a ying the fo unda tio ns fo r a la rg e g o ld b usine ss

Corpora te Ove rvie w

4

Introduc tion

Ca pita l Struc ture

 F

ully pa id sha re s: 55.1 millio n

 Ma rke t c a p ($0.34): $18.7 million  L

iste d o ptio ns: 21.2 millio n

 Ca sh: $4.4 million (31 De c e mbe r 2012)

E nte rprise va lue : $14.3 million

 Unliste d o ptio ns: 8.2 millio n  T

• p 20 inve sto rs: 88.5%

Sha re re g iste r domina te d by la rg e funds (unusua l for a g re e nfie lds e xplore r) ASX Code : BRB

De xte r Announc e me nt

Boa rd & Se nior Ma na g e me nt

5

Introduc tion

E xe c utive Cha irma n

• Ge o lo g ist with 35 ye a rs e xpe rie nc e in e xplo ra tio n, mining a nd c o rpo ra te ma na g e me nt
• E

xte nsive e xpo sure to E a ste rn Go ldfie lds re g io n; pre vio usly b uilt a 2Mo z g o ld inve nto ry

Non- E xe c utive Dire c tor

• Pro c e ss e ng ine e r with 38 ye a rs e xpe rie nc e in the mining industry
• Curre nt Chie f Ope ra ting Offic e r a t K

a sb a h Re so urc e s

Non- E xe c utive Dire c tor

• L

a wye r with 27 ye a rs e xpe rie nc e in re so urc e s a nd c o rpo ra te la w

• E

xpe rie nc e in ASX listing s, jo int ve nture s, pro je c t a g re e me nts a nd pro je c t fina nc ing

Ma rk E dwa rds E xplora tion Ma na g e r

• Ge o lo g ist with +20 ye a rs e xpe rie nc e in e xplo ra tio n a nd mining

Ala sta ir Ba rke r

Ma na g e r Corpora te Affa irs/ Company Se c re ta ry

• 18 ye a rs a dministra tio n e xpe rie nc e (c o rpo ra te , mining a nd e xplo ra tio n)

Mic he lle Simson

E xpe rie nc e d mining industry profe ssiona ls foc use d on sha re holde r va lue

T

• m

Sa nde rs Mike Kitne y

Proje c t Ove rvie w

6

Bre a ke r’s Proje c ts



Pro je c ts situa te d o n ma jo r c rusta l fa ults whe re g o ld is mo st a b unda nt b a se d o n spa tia l a na lysis/ re c e nt re se a rc h

• g o o d ro a ds, e xpa nding infra struc ture

E a ste rn Goldfie lds Supe rte rra ne (E GST )

T ropic a na

Attila

Duke ton 10Moz 7.9Moz 1Moz



Mino r histo ric a l e xplo ra tio n (~5% so il c o ve ra g e , no fo llo w-up drilling )

Positive r e sults on all pr

• je c ts sample d

in the 10 months sinc e ASX listing



Ya ma rna She a r



De xte r Proje c t (32km g o ld tre nd)

20,000m a irc o re drilling in pro g re ss



Mt Gill Proje c t (multi-km a no ma lie s)



Kurra jong South



Duke ton North (17 so il a no ma lie s)



E a ste rn ha lf o f E GST la rg e ly une xplo re d

• utside re c e nt disc o ve ry a re a s – a ne w

se a rc h spa c e a nd a c tive disc o ve ry zo ne

7

Pe rspe c tive

Why a Ne w Se a rc h Spa c e ?

 10 Ye a rs of Inte nsive Re se a rc h (Ge osc ie nc e Austra lia 2001- 2008)

• struc tura l a nd me ta mo rphic histo ry re writte n
• ne w unde rsta nding o f ma ntle c o nne c tio n/ do me s/ la rg e fa ults

 Ne w da ta (Ge olog ic a l Surve y of We ste rn Austra lia 2005 - 2009)

• a e ro ma g ne tic , g ra vity a nd se ismic surve ys
• g e o lo g ic a l ma pping (Burtvile a nd Ya ma rna T

e rra ne s)

• g e o c hro no lo g y - ne w Ya ma rna T

e rra ne

• da ting o f thre e ma in g o ld e ve nts fo r the first time !

 Disc ove ry

Mo o la rt We ll (2002), T ro pic a na (2005) Ce ntra l Bo re a nd Ga rde n We ll (2009)

 T

e c hnolog ic a l De ve lopme nts

• to o ls fo r e xplo ring tra nspo rte d c o ve r

(e g re lia b le , lo w de te c tio n, multi-e le me nt a na lytic a l te c hniq ue s)

Ke y De ve lopme nts in E GST tha t Dire c tly Affe c t F inding Gold

8

… the opportunity to the 10% of g old de posits c onta ining two- thirds of the provinc e - sc a le g old

Pe rspe c tive

Advantage of “E ar ly Mover ” in a New Sear ch Space?

Me thod for F inding L a rg e Gold De posits

9

Bre a ke r’s Proje c ts

Multi- e le me nt a ug e r soil sa mpling



Mode rn soil g e oc he m to sc re e n ke y struc ture s

• ve r la rg e une xplore d a re a s for big de posit

sig na ture s



Pha se 1 a ug e r so il sa mpling (1,600m x 400m)



Pha se I I infill a ug e r so il sa mpling o n de fine d a no ma lie s (400m x 100m)



Airc ore drilling to “sc o pe ” the so il a no ma lie s

• te st the b e dro c k
• te st fo r e nric hme nts in supe rg e ne ha lo e s



RC/ dia mond drilling

• fo r disc o ve ry a nd re so urc e de line a tio n

De xte r Proje c t

10



L

• c a tion

140km SE

• f L

a ve rto n 80km NW o f T ro pic a na (7.9Mo z) 75km so uth o f Attila (1Mo z)



A ve ry large pro je c t



E sse ntia lly une xplo re d



Outsta nding struc tura l se t-up



Co ve r 25m to 70m

• de e pe r to so uth



I nitia l ste p: 1,600m x 400m

• Pha se 1 a ug e r so ils

De xte r Proje c t Inte rpre te d Ge olog y 72km 1,102km 2

~ Zuric h to Ba se l

Bre a ke r’s Proje c ts

11

Bre a ke r’s Proje c ts



Up to 0.3 g / t g old a nd 17.4 g / t silve r on surfa c e of de se rt



L ike ly so urc e b e lo w tra nspo rte d c o ve r 1-3m sa nd 25m-70m Pe rmia n se dime nt)

De xte r Proje c t

12 De xte r Proje c t Gold- in- Soil Contours ove r Ae roma gne tic Ima g e

 1,600m x 400m pa tte rn so ils



Unusua lly la rg e a nd c o he sive g o ld- in-so il re spo nse (de spite c o ve r)



32km-lo ng (up to 59ppb g o ld)



Ano ma lo us g o ld pa thfinde rs (me rc ury-te llurium-silve r)



Stro ng spa tia l a sso c ia tio n with sta c ke d fa ult jo g s b e twe e n Ya ma rna a nd De xte r She a rs g o o d po te ntia l fo r a la rg e ne w g o ld syste m

10km

Pha se II Aug e r

De xte r - Pha se I Soil Re sults

Bre a ke r’s Proje c ts

13

T ropic a na Soil Anoma ly (sa me sc a le )

2 km

Pe a k va lue 31ppb g old

400m x 100m Infill Pa tte rn Infill Soils



Up to 298ppb g o ld (0.3g / t) 17,415ppb silve r (17.4g / t)



Ano ma ly c o nfirme d…re a dy fo r a irc o re drilling !

16km

T hre e Be a rs Prospe c t T a llows Prospe c t

Ima g e d Gold- in- Soil 400m x 100m

De xte r - Pha se II Soil Re sults

Bre a ke r’s Proje c ts



Se ve ra l time s la rg e r in size a nd ma g nitude c o mpa re d to T ro pic a na a t the sa me sta g e

Airc ore a nd RC Drill Me thodolog y

14



De xte r drill a pproa c h: simila r to first pa ss T ropic a na drilling (ve rtic a l hole s)

Pe rspe c tive

T a rg e te d Supe rg e ne Ha lo… a big g e r ta rg e t re la tive to be droc k inte rse c tions! RC Pha se 2 AIRCORE Pha se 1 We a the re d Arc he a n (de ple te d) Pe rmia n c ove r Arc he a n

T hre e Be a rs Prospe c t T a llows Prospe c t 15

Airc ore drill line s (pink)

• n ima g e d g old- in- soil

(400m x 100m)



RC drilling pla nne d for la te Ma rc h 2013

Bottom- of- hole sye nite ~1g / t g old (ma ntle c onne c tion c onfirme d)



20,000m a irc ore drilling in prog re ss to sc ope the syste m ove r 16 km dista nc e in pre p for RC

40m to 80m ho le spa c ing (ve rtic a l) 400m to 1,200m line spa c ing

De xte r - Airc ore Drilling in Prog re ss

16km

Bre a ke r’s Proje c ts

Airc ore Drill L ine s



Pre lim re sults for ~30% of drill prog ra m (T hre e Be a rs Prospe c t only)



Be droc k mine ra lisa tion c onfirme d in sye nite porphyry (T hre e Be a rs a nd T a llows)



E nric he d re g olith ove r be droc k mine ra lisa tion

16

Bre a ke r’s Proje c ts

Mt Gill L a ndsc ape : up to 63ppb Au g old- in- sand a noma ly

Re g olith e nric hme nt ove r mine ra lise d sye nite porphyry Sye nite ve rtic a lly be low g old- in- soil a noma lie s

SY

SY

MA

T

• ta l downhole g old (ppb) in a irc ore drilling on 400m x 100m g old- in- soil ima g e

(ba se d on pre lim 4m c omposite a ssa ys)

SY MA Sye nite Amphibolite

No be droc k pe ne tra tion

2 km

De xte r Pr

• je c t – Air

c or e T hr e e Be ar s

Attila We st/ Kurra jong South Proje c ts

17

Bre a ke r’s Proje c ts

Attila We st L a ndsc a pe ; She a re d Ma fic F

• otwa ll Roc ks

Attila We st/ Kurra jong South Proje c ts

18

Bre a ke r’s Proje c ts

570km 2 919km 2 Inte rpre te d Ge olog y with Pre vious Drilling & Gold- in- Soil Anoma lie s

Attila We st Proje c t



L a rg e a re a a dja c e nt to Ya ma rna She a r a nd 1Mo z Attila de po sit (60km strike )



Co mpe lling struc tura l ta rg e ts/ e sse ntia lly une xplo re d



Aug e r drilling in pro g re ss

Kurra jong South Proje c t



Histo ric a l so il a no ma ly

• 45ppb g o ld
• no pre vio us drilling
• g o o d struc tura l se tup



Aug e r drilling c o mple te d

• pre limina ry re sults

te nd to c o nfirm histo ric a l a no ma ly

Mt Gill Proje c t

19

Bre a ke r’s Proje c ts

Mt Gill L a ndsc a pe : up to 63ppb Au g old- in- sa nd a noma ly

20

Bre a ke r’s Proje c ts



L

• c a te d 30km NW o f 1Mo z Attila -

Ala ric de po sits



I nc lude s 50km o f Ya ma rna She a r



Mino r histo ric a l e xplo ra tio n (no drilling , 10% g e o c he m c o ve ra g e )



T hin sa nd c o ve r (1-3m g e ne ra lly) o ve r Arc he a n b a se me nt



Re c o nna issa nc e a ug e r sa mpling c o mple te d (1,600m x 400m)

Mt Gill & Kurra jong North Proje c ts Inte rpre te d Ge olog y 518km 2 158km 2

Mt Gill Proje c t

50km

21

Bre a ke r’s Proje c ts

Mt Gill Proje c t: Contoure d a nd Ima g e d Gold- in- Soil Va lue s

Mt Gill - Pha se I Aug e r

Ya ma rna She a r Anoma lie s



1,600m x 400m a ug e r re sults



Multiple g old- in- soil a noma lie s (thre e ma in

a re a s)

• So uthe rn a re a 25km-lo ng

(pe a k o f 25ppb Au)

• Ya ma rna She a r 14km-lo ng

(pe a k o f 57ppb Au)

• Ya ma rna g re e nsto ne 7km-lo ng

(pe a k o f 63ppb Au)



Silve r va lue s up to 5,729 ppb (5.7g / t)



Pre vio usly unkno wn ma fic c o mple x in so uthe rn a re a (b a se d o n c hro me g e o c he mistry)



Ne xt ste ps…infill so il sa mpling , drilling

25km

Southe rn Are a Anoma lie s Ya ma r na Gre e nstone Anoma lie s

Duke ton North/ De L a Poe r Proje c ts

22

Bre a ke r’s Proje c ts

De L a Poe r la ndsc a pe Sta nding on g re e nstone (ma ppe d a s g ra nite )

Duke ton North Proje c t De L a Poe r Proje c t

De L a Poe r g re e nstone (disc ove re d 1999)

Duke ton North/ De L a Poe r Proje c ts

23

Bre a ke r’s Proje c ts

869km 2 527km 2 Duke ton North & De L a Poe r Proje c ts Inte rpre te d Ge olog y

De L a Poe r Proje c t



Ne w g re e nsto ne b e lt a nd re g io na l she a r ide ntifie d in 1999 (130km strike le ng th)



E sse ntia lly une xplo re d



Pha se I a ug e r drilling in pro g re ss

130km

Zur ic h to Jung fra u!

Re g is 10Moz

Gold Ca mp

Duke ton North Proje c t



L a rg e a re a a lo ng strike fro m 10Mo z Re g is g o ld c a mp (43km strike )



K no wn g re e nsto ne ; no pre vio us g e o c he m



Pha se I a ug e r drilling c o mple te d (po sitive re sults)

24

Bre a ke r’s Proje c ts

Duke ton North - Pha se I Aug e r

1,600m x 400m Aug e r Re sults



Up to 10ppb g o ld Spa tia l a sso c ia tio n with fa ults



1-3m sa nd o ve r Arc he a n



Co mpa riso n



Mo o la rt We ll 3 to 7ppb g o ld



Ga rde n We ll 3 to 25ppb g o ld

Inve stme nt Summa ry

25

Conc lusion

 Bre a ke r is po ise d fo r disc o ve ry!

E a rly re sults a t the De xte r Pro je c t indic a te a la rg e ne w g o ld syste m with po te ntia l fo r ra pid c a pita l a ppre c ia tio n upo n drill c o nfirma tio n

• 20,000m a irc o re drilling in pro g re ss; RC drilling pla nne d la te Ma rc h 2013

 BRB is b uilding a g o ld b usine ss with ma na g e d e xplo ra tio n risk

~A$3M e xplo ra tio n b udg e t fo r 2013

 Ma rke t Ca p o f ~A$19M (a t $0.34/ sha re ) tha t

e q ua te s to ~A$3,500 pe r km2 …va lue with va st upside po te ntia l

 Po sitive re sults o n o the r pro je c ts sa mple d pro vide a 2nd tie r o f g o ld pro je c ts

tha t va lida te the po te ntia l o f a ne w se a rc h spa c e in a wo rld c la ss g o ld pro vinc e in a sa fe jurisdic tio n

T he roa d to disc ove ry

26

T HANK YOU

Conc lusion