Fraser Range Acquisition

Transcription

1 Fraser Range Acquisition Nickel, Copper and Gold Exploration in Western Australia October 2013

2 DISCLAIMER Disclaimer This presentation has been prepared by Segue Resources Limited (Segue or the Company). It contains general information about the Company s activities current as at the date of the presentation. The information is provided in summary form and does not purport to be complete. This presentation is not to be distributed (nor taken to have been distributed) to any persons in any jurisdictions to whom an offer or solicitation to buy shares in the Company would be unlawful. Any recipient of the presentation should observe any such restrictions on the distribution of this presentation and warrants to the Company that the receipt of the presentation is not unlawful. It should not be considered as an offer or invitation to subscribe for or purchase any securities in the Company or as an inducement to make an offer or invitation with respect to those securities. No agreement to subscribe for securities in the Company will be entered into on the basis of this presentation or any information, opinions or conclusions expressed in the course of this presentation. This presentation is not a prospectus, product disclosure document or other offering document under Australian law or under any other law. It has been prepared for information purposes only. This presentation contains general summary information and does not take into account the investment objectives, financial situation and particular needs of any individual investor. It is not financial product advice and investors should obtain their own independent advice from qualified financial advisors having regarding to their objectives, financial situation and needs. Segue nor any of their related bodies corporate is licensed to provide financial product advice. This presentation and information, opinions or conclusions expressed in the course of this presentation contains forecasts and forward looking information. Such forecasts, projections and information are not a guarantee of future performance, involve unknown risks and uncertainties. Actual results and developments will almost certainly differ materially from those expressed or implied. There are a number of risks, both specific to Segue, and of a general nature which may affect the future operating and financial performance of Segue, and the value of an investment in Segue including and not limited to title risk, renewal risk, economic conditions, stock market fluctuations, manganese demand and price movements, timing of access to infrastructure, timing of environmental approvals, regulatory risks, operational risks, reliance on key personnel, reserve estimations, native title risks, foreign currency fluctuations, and mining development, construction and commissioning risk. You should not act or refrain from acting in reliance on this presentation, or any information, opinions or conclusions expressed in the course of this presentation. This presentation does not purport to be all inclusive or to contain all information which its recipients may require in order to make an informed assessment of the prospects of Segue. You should conduct your own investigation and perform your own analysis in order to satisfy yourself as to the accuracy and completeness of the information, statements and opinions contained in this presentation before making any investment decision. Recipients of this presentation must undertake their own due diligence and make their own assumptions in respect of the information contained in this presentation and should obtain independent professional advice before may any decision based on the information. No representation or warranty, express or implied, is made in relation to the fairness, accuracy or completeness of the information, opinions and conclusions expressed in the course of this presentation. To the maximum extent permitted by law, no representation, warranty or undertaking, express or implied, is made and, to the maximum extent permitted by law, no responsibility or liability is accepted by the Company or any of its officers, employees, agents or consultant or any other person as to the adequacy, accuracy, completeness or reasonableness of the information in this presentation. To the maximum extent permitted by law, no responsibility for any errors or omissions from this presentation whether arising out of negligence or otherwise is accepted. An investment in the shares of the Company is to be considered highly speculative. The exploration targets or conceptual exploration targets in this presentation or expressed during the course of this presentation are subject to completion of the necessary feasibility studies, permitting and execution of all necessary infrastructure agreements. In relation to any statements pertaining to future exploration targets or conceptual exploration targets, the nature of the exploration target means that the potential quantity and grade is conceptual in nature, that there has been insufficient exploration to define a Mineral Resource and that it is uncertain if further exploration will result in the determination of a Mineral Resource. This presentation and information, opinions or conclusions expressed in the course of this presentation should be read in conjunction with Segue's other periodic and continuous disclosure announcements lodged with the ASX, which are available on the Segue website. Some statements in this presentation regarding future events are forward-looking statements. They involve risk and uncertainties that could cause actual results to differ from estimated results. Forward-looking statements include, but are not limited to, statements concerning the Company s exploration programme, outlook and target sizes. They include statements preceded by words such as potential, target, scheduled, planned, estimate, possible, future, prospective and similar expressions. The information in this presentation that relates to Exploration Results or Mineral Resources at the Pardoo Project is based on information compiled or reviewed by Mr Peter Langworthy, Consulting Geologist, who is a Member of the Australian Institute of Mining and Metallurgy. Mr Peter Langworthy has sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration and to activities undertaken, to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code of Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Peter Langworthy consents to the inclusion in the presentation of the matters based on the information in the form and context in which it appears. 1

3 FRASER RANGE ACQUISITION HIGHLIGHTS Segue Resources is to control 3,538km 2 of exploration licences in the highly prospective Albany-Fraser Range Province in Western Australia Fraser Range Province hosts Sirius Resources Nova-Bollinger nickel-copper deposit and the Tropicana gold project (AngloGold Ashanti/Independence Group) Segue to become one of the largest tenement holders in the Fraser Range with three exploration projects Plumridge Nickel, Plumridge Gold and Deralinya Plumridge is highly prospective for nickel/copper and has previously been explored for gold with several deposits identified Pipeline of prospects from grass roots to advanced exploration Consideration is predominantly equity conserving cash for exploration 2

4 ACQUISITION TERMS Segue is to acquire three private companies for a combination of cash and shares Fraser Range Tenements Tropicana Company Cash Shares 1 Tenement Area Fraser Range Resources 2 $200,000 $700,000 2,130km 2 Becrux - $200, km 2 Distant Island - $200, km 2 Plumridge Nickel & Gold Total $200,000 $1,100,000 3,538km 2 Nova Majority of tenements are owned 100% Deralinya Segue to spend $1 million by 31 January 2015 to earn a 60% interest in Plumridge JV Source: Segue Resources 1. Shares are being issued at Segue s 20-day VWAP of $0.002 per share. 2. Fraser Range Resources includes the Plumridge Joint Venture. 3

5 PLUMRIDGE PROJECT Plumridge Tenements Plumridge tenements (2,240km 2 ) covering the northern end of the Fraser Range Significant land package with limited nickelcopper exploration to date Fraser Range Zone is highly prospective for nickel-copper (Nova-style) deposits Primary exploration targets are Nova-type intrusions eye magnetic signature Phased exploration programme with proven technologies and methodology Source: Segue Resources Eastern Biranup Zone well endowed with gold anomalies, mineralisation and deposits 4

6 PLUMRIDGE NICKEL PROJECT Fraser Range generally has limited outcrop with cover of ~40m in the Plumridge Project area Nova Eye Signature Excellent geophysics gravity, airborne magnetics, ground magnetics and electro-magnetics Nova deposit is hosted within a distinct eye magnetic feature interpreted to be a late stage intrusion Nova-type eyes are discrete targets, readily and costeffectively testable for nickel sulphide targets Source: Sirius Resources NL, November 2012 Segue has identified several eye type targets at the Plumridge Nickel Project Exploration programme will systematically evaluate and prioritise eye targets Drill testing of the highest prospectivity nickel targets 5

7 NOVA-STYLE EXPLORATION MODEL Phased decision tree exploration programme: Late Stage Intrusion Targeting 1. Identify Nova-type eye targets from high resolution aeromagnetic data 2. Identify mafic and/or conductor-bearing targets from ground EM traverses across eyes 3. Identify high bedrock nickel mafic and/or conductor zones from bedrock air core drill lines 4. Define strike-continuous, high bedrock nickel conductors from adjacent air core drill lines and ground EM traverses 5. RC drill most strike extensive high bedrock nickel conductive plate targets Source: Geological Survey of WA 6. Down hole EM to refine conductive plates and RC drill DHEM-refined plates 6

8 PLUMRIDGE NICKEL WORK PROGRAMME Activity Timing Details High Resolution Aeromagnetic Survey 4Q 2013 High resolution aeromagnetic surveys over ~40 eye targets identified from existing magnetic data Selection of most prospective eye targets for field work Ground EM traverses 1Q 2014 Ground EM traverses over each eye target Selection of mafic and/or conductor-bearing eye targets for followup air core bedrock drill sampling Bedrock air core drilling programme 1Q 2014 Drill lines across selected mafic and/or conductor bearing bodies Selection of high bedrock nickel, mafic and/or conductor bodies for follow up detailed EM and air core drilling Ground EM surveys and air core drill lines 2Q 2014 Ground EM traverses and air core drill lines over each selected high bedrock nickel target Selection of strike continuous high bedrock nickel conductor plates for RC drill testing in 2H

9 PLUMRIDGE GOLD PROJECT Significant historical exploration for gold on the western portion of the Plumridge tenements Kanowna Belle PIMA Study Several gold prospects discovered by International Goldfields including the very large Corvette gold anomaly Recent oriented diamond drilling and structural analysis has identified a brittle/ductile gold system PIMA alteration mineral chemistry study underway to identify gold-bearing fluid pathways Source: Scott Halley Integration of structural and fluid pathways knowledge will provide new drill targets for testing in 2H

10 DERALINYA PROJECT Deralinya Tenements Deralinya tenements (1,298km 2 ) on the southern end of the Fraser Range Prospective for: Archean Ida fault extension type gold Shear zone hosted gold Palaeochannel/shoreline mineral sands Palaeodrainage/salt lake uranium Source: Segue Resources Several radiometric uranium/thorium anomalies on the margins of salt lakes 9

11 TRANSACTION AND CAPITAL STRUCTURE Non-refundable deposit of $200,000 paid out of existing cash reserves Issue of 550 million shares Transaction is subject to Segue shareholder approval Notice of Meeting will include Independent Experts Report and Fairness Opinion Shares % of Total Current shares on issue 536.9m 50% Fraser Range Resources 350.0m 32% Becrux 100.0m 9% Distant Island 100.0m 9% New Shares on Issue 1,086.9m 100% 10

12 RECENT FRASER RANGE TRANSACTIONS Company ASX Code Date Project Interest Consideration 3 Cash Shares Spend Area (km 2 ) Segue Resources SEG Sep 13 Plumridge 100% 1 $0.20m $1.10m - 3,520 Orion Gold ORN Aug 13 Peninsula 70% 2 - $1.95m - 2,628 Windward Resources WIN Jul 13 Fraser Range South 70% 2 $3.00m $4.40m - 8,333 Rumble Resources RTR Jul 13 Fraser Range 100% $0.12m Windward Resources WIN Dec 12 Fraser Range South 70% $0.60m 767 Pioneer Resources PIO Oct 12 Fairwater 75% $0.04m $0.41m Eight tenements owned 100% and Segue can earn a 60% interest in the Plumridge JV (four tenements) 2. 30% partner is free carried until completion of a Bankable Feasibility Study 3. Value of shares is based on share price at the time of the transaction Fraser Range Exploration Tenements (km 2 ) 10,000 8,000 6,000 4,000 2,000 0 WIN ORN SEG PGM BUX SIR PIO SFX PLD AXC HRR ENT AQD MAT RMR BOA CLZ RTR Source: Company announcements, Segue Resources 11

13 SUMMARY One of the largest tenement holders in the Fraser Range Province with over 3,500km 2 of exploration tenements Exploration to commence immediately and funded out of existing cash reserves Focus on Plumridge Nickel Project and Nova eye signatures Phased exploration programme to establish high priority drill targets by 1H 2014 Purchase consideration is primarily shares with little cash outlay Low entry price for a dominant tenement package in the Fraser Range Province 12

14 Jan 13 Feb 13 Mar 13 Apr 13 May 13 Jun 13 Jul 13 Aug 13 Sep 13 CORPORATE SUMMARY Company Overview Pro-Forma Shareholder Analysis (Post Transaction) ASX stock code: SEG Share price: 0.3 Shares on issue: 536.9m Options on issue: 11.8m ($0.051, 8/11/14) 25.0m ($0.01, 18/2/18) Market capitalisation: $1.6m Australian Investors 48% Board & Management 2% Source: Advanced Share Registry Overseas Investors 7% Fraser Range 21% Becrux 11% Distant Island 11% Cash at bank: As at 26 September 2013 Directors Steven Michael Dr Howard Carr Nicholas Ong $1.1m Managing Director Technical Director Non-Executive Director Share Price Performance Matthew Foy Non-Executive Director Source: CommSec 13

15 PARDOO NICKEL PROJECT Pardoo Nickel Project remains highly prospective for magmatic sulphide nickel-copper deposits Pardoo Gravity Survey Highway deposit is likely the result of structural remobilisation within the Pardoo Fault zone Field work has commenced to identify new targets for detailed ground EM Highway Inferred Resource Estimate Interpreted Geology Material Tonnes Nickel Copper Weathered Sulphide 5.5mt 0.25% 0.18% Fresh Sulphide 44.5mt 0.31% 0.12% Total 50.0mt 0.30% 0.13% Nickel cut-off grade of 0.1% Ni 14

16 Segue Resources Ltd ASX Code: SEG Level 2, 1139 Hay St West Perth WA 6005 Phone: Website: