Fraser Range Acquisition Nickel, Copper and Gold Exploration in Western Australia October 2013
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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
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
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 - $200,000 698km 2 Distant Island - $200,000 710km 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
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
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
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
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 15-20 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 2014 7
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 2014 8
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
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
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 - - 200 Windward Resources WIN Dec 12 Fraser Range South 70% 2 - - $0.60m 767 Pioneer Resources PIO Oct 12 Fairwater 75% $0.04m $0.41m - 338 1. 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
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
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 0.5 0.4 0.3 0.2 0.1 - Matthew Foy Non-Executive Director Source: CommSec 13
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
Segue Resources Ltd ASX Code: SEG Level 2, 1139 Hay St West Perth WA 6005 Phone: +618 9486 4699 Email: admin@segueresources.com Website: www.segueresources.com