Investor Presentation at the 2013 Gold Investment Symposium in Sydney, 16-17 October 2013. Presentation given by White Rock Minerals Managing Director, Geoff Lowe.
Unblocking The Main Thread Solving ANRs and Frozen Frames
Gold 2013 Sydney - White Rock Minerals ASX:WRM
1. The Gold Investment Symposium
October 2013
Gold & Silver
in Eastern Australia
2. Disclaimer
The presentation (in this projected form and as verbally presented) (“Presentation”) has been prepared by White Rock Minerals Limited in relation to the pro-rata nonrenounceable offer of new White Rock ordinary shares under section 708AA of the Corporations Act 2001 (Cth). This presentation is provided on the basis that none of the
Company nor its respective officers, shareholders, related bodies corporate, partners, affiliates, employees, representatives and advisers make any representation or warranty
(express or implied) as to the accuracy, reliability, relevance or completeness of the material contained in the Presentation and nothing contained in the Presentation is, or may
be relied upon as a promise, representation or warranty, whether as to the past or the future. The Company herby excludes all warranties that can be excluded by law.
The Presentation contains prospective financial material which is predictive in nature and may be affected by inaccurate assumptions or by known or unknown risks and
uncertainties and may differ materially from results ultimately achieved.
This Presentation does not constitute an offer for sale, or a solicitation of an offer to purchase, any securities in any jurisdiction in which it would be unlawful.
The Presentation contains “forward-looking statements”. All statements other than those of historical facts included in the Presentation are forward-looking statements.
Where the Company expresses or implies an expectation or belief as to future events or results, such expectation or belief is expressed in good faith and believed to have a
reasonable basis. However, forward-looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future
results expressed, projected or implied by such forward-looking statements. Such risks include, but are not limited to, gold and other metals price volatility, currency
fluctuations, increased production costs and variances in ore grade or recovery rates from those assumed in mining plans, as well as political and operational risks and
governmental regulation and judicial outcomes. The Company does not undertake any obligation to release publicly any revisions to any “forward-looking statement”.
The Presentation contains general background information about the Company and its activities current as at the date of this presentation, October 2013. The information in
this Presentation is in summary form only and does not contain all the information necessary to fully evaluate any transaction or investment. It should be read in conjunction
with the Company’s other periodic and continuous disclosure announcements lodged with the ASX, which are available at www.asx.com.au and other publicly available
information on the Company available at www.whiterockminerals.com.au.
This Presentation is not a prospectus, disclosure document or other offering document. It is for information purposes only and does not constitute an offer, invitation or
recommendation to subscribe for or purchase any security and does not form the basis of any contract or commitment. The Presentation, the entitlement offer and the
contracts formed on acceptance of the relevant applications are governed by the laws applicable in Victoria, Australia. Each person who applies for new shares submits to the
jurisdiction of the courts of Victoria, Australia.
All persons should consider seeking appropriate professional advice in reviewing the Presentation and the Company.
The information in this presentation that relates to Exploration Results or Mineral Resources is based on information compiled by Mr Rohan Worland who is a Member of the
Australian Institute of Geoscientists and is a full time employee of White Rock Minerals Ltd. Mr Worland has sufficient experience which is relevant to the style of
mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the
‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. The Exploration Potential described in this Presentation is conceptual in nature,
and there is insufficient information to establish whether further exploration will result in the determination of a Mineral Resource Mr Worland consents to the inclusion in the
report of the matters based on his information in the form and context in which it appears.
The gold and silver Resource figures for Strauss, Kylo, Lady Hampden, Silver King, White Rock North and Red Rock have been taken from resource estimates prepared by
Ravensgate Minerals Industry Consultants on behalf of White Rock Minerals Ltd and authored by Mr Don Maclean who is a professional geologist with more than 10 years’
experience in resource estimation. Mr Maclean is a Competent Person as defined by the JORC Code and consents to the inclusion in this presentation of references to this
resource estimate in the form and context in which they appear.
The gold and silver Resource figures for White Rock and Guy Bell have been taken from the resource estimate report dated 1 October 2008 prepared by Mining One Pty Ltd on
behalf of Rex Minerals Ltd and authored by Dr Chris Gee who is a professional geologist with more than 10 years’ experience in resource estimation. Dr Gee is a Competent
Person as defined by the JORC Code and consents to the inclusion in this presentation of references to this resource estimate in the form and context in which they appear.
We have estimated the resources reported in this Presentation in accordance with the Australasian Code for Reporting of Identified Mineral Resources and Ore Reserves 2004
Edition ("JORC Code"), which governs such disclosure by companies listed on the Australian Securities Exchange. The JORC Code differs in several significant respects from
Industry Guide 7 of the U.S. Securities and Exchange Commission that governs disclosures of mineral reserves in registration statements and reports filed with the SEC. In
particular, Industry Guide 7 does not recognize classifications other than proven and probable reserves, and the SEC does not permit mining companies to disclose mineral
resources in SEC filings.
2
White Rock Minerals Ltd
ASX:WRM
October 2013
3. Mt Carrington Project….
The best place to find a
new mine…..
….is under an old one.
3
White Rock Minerals Ltd
ASX:WRM
October 2013
4. WRM Corporate Overview
Mt Carrington Project
Executive Summary
Resources
Exploration
Development timeline
Investment Case
4
White Rock Minerals Ltd
ASX:WRM
October 2013
5. Corporate Overview ASX : WRM
Issued Capital: 184M shares, 9.9M options
Cash: A$4.6M #, no debt
Mineral Resources:
23.5M oz Ag & 0.34M oz Au
Enterprise Value: A$2.4M
EV / Resource oz: A$3/oz AuEq*
Board & Management
Brian Phillips – Non-Exec Chairman
Geoff Lowe – Managing Director
Steve Olsen – Non-Exec Director
Peter Lester – Non-Exec Director
Andrew Dart – Company Secretary / CFO
Rohan Worland – Exploration Manager
5
Market Cap:
A$7M @$0.04 / share
Major Shareholders
Avalon Ventures Corp
Greenstone Property
Silverstone Investment
Board & Management
Grand South Development
Top 20:
*AuEq and AgEq calculated at 65:1 Ag ASX:WRM
White Rock Minerals Ltd : Au using metal prices of Au @ US$1,300 per oz and Ag @ US$20 per oz and does
not account for mining or metallurgical recoveries; # Cash balance at 9 September following closure of Rights Issue
43.47%
9.81%
3.68%
2.60%
1.65%
69%
October 2013
6. Mt Carrington Executive Summary & Investment Case
Favourable Location:
350km south of Brisbane
100km to Sydney – Brisbane railhead
Quality Shallow Resources:
23.5Moz silver & 0.34Moz gold
Granted Leases with infrastructure
Exploration Upside:
Modern first mover, 70+ targets defined
Commodities in demand: Au - Ag - Cu
Positive Mining Scoping Study:
Staged open pits with projected modest capex and
operating costs; potential to enhance value in FS
Feasibility Studies and Permitting:
Resource upgrade drilling; environmental,
infrastructure, water, power and marketing studies
On track for commissioning and production in 2015/16
6
White Rock Minerals Ltd
ASX:WRM
October 2013
7. Mt Carrington Ag – Au Resources
Gold:
Strauss, Kylo, Red Rock, Guy Bell deposits
0.34Moz Au @ 1.3g/t Au (0.5g/t
- 0.7g/t cut)
45% Indicated / 55% Inferred
Silver:
Lady Hampden, White Rock, White Rock
North, Silver King deposits
23.5Moz Ag @ 58g/t Ag
(25 g/t cut)
19% Indicated / 81% Inferred
Eight deposits - all from surface
Limited drilling to upgrade Resources
New Resource at Red Rock in July 13:
54koz Au from surface
Option on copper discoveries….
7
White Rock Minerals Ltd
ASX:WRM
Resources reported in accordance with the JORC (2004) code. October 2013
See Appendix for full Resource tables.
8. Mt Carrington silver – gold Resources growth
Gold
Resource oz
Gold Price
(US$)
2,000
Gold
400,000
Silver
Resource oz
30,000,000
Silver Price
(US$)
Silver
50.00
1,600
300,000
1,200
40.00
20,000,000
30.00
200,000
800
20.00
10,000,000
100,000
400
-
1991
2003
2009
Gold Price ($US)
2012
2013
Gold Resources (oz)
10.00
-
1991
2003
2009
Silver Price ($US)
2012
2013
Silver Resources (oz)
130% increase in gold Resource
from 2003 to 2013
8
400% increase in silver Resource
from 2003 to 2013
White Rock Minerals Ltd
ASX:WRM
October 2013
9. Mt Carrington Infrastructure
Key Infrastructure in place to support
future mining and de-risk development
Granted Mining Leases
1.5Mt Tailings Dam
750ML Freshwater Dam
Site Office
Water treatment plant
Access to State grid power
Reduces development timeframe and
capital cost
< Tenterfield 50km
9
White Rock Minerals Ltd
ASX:WRM
Lismore 100km >
October 2013
10. Mt Carrington Exploration: ‘Drake Volcanic Caldera’
Drake Caldera
Proof of Concept
Global analogies
• Round Mtn (10Moz gold)
• Creede (80Moz silver)
Epithermal style Au - Ag
Intrusive / Porphyry style Cu - Au
Limited work since mine closure
WRM Target Generation
Modern first mover advantage
70 new targets within 20km of
central leases
2013 Exploration Focus
Central Leases: Au – Ag – Cu
Red Rock: Au – Ag
White Rock: Ag – Au
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White Rock Minerals Ltd
ASX:WRM
October 2013
11. Exploration: Central Mining Leases
Strong opportunity to define
new shallow Au-Ag Resources
Resource extensions
30 new targets
Kylo
Potential for new copper
discoveries
95koz Au
Lady Hampden
8.1Moz Ag, 64koz Au
Strauss
Gladstone Cu
95% of previous drilling <100m
depth
113koz Au
All Nations Cu
Guy Bell
13koz Au
Drilling in progress
Carrington Cu
Silver King
1.2Moz Ag
1km
11
White Rock Minerals Ltd
ASX:WRM
October 2013
12. Exploration: Red Rock Leases
Old Au – Cu mining centre
15km from central ML’s
Zoned epithermal Au-Ag
stockwork with high grade
veins
Several priority targets defined
for drilling in 2012
Maiden Resource defined on
first target in 2013
Deadman’s Zone: 54,000oz Au
at surface, open along strike
and down dip
Further drilling in progress
12
White Rock Minerals Ltd
ASX:WRM
October 2013
13. Exploration: White Rock Leases
Old Ag mining centre 6km from
central ML’s
Inferred Resource 8.2Moz Ag
Resource upgrade drilling 2013
New Au zone discovered on SW
margin of Ag Resource
Potential to add significant value
Drilling in progress to investigate
Au zone
13
White Rock Minerals Ltd
ASX:WRM
October 2013
14. Exploration: The Copper option
Opportunity to define
shallow supergene and
deeper primary Cu Resources
Porphyry Cu-Au concept
untested by previous
explorers
Kylo
Large shallow supergene Cu
blankets with underlying
‘feeder’ structures identified
White Rock Minerals Ltd
Lady Hampden
8.1Moz Ag, 64koz Au
Strauss
Gladstone Cu
113koz Au
Guy Bell
13koz Au
Cu
Leverage on future flotation
plant
14
95koz Au
All Nations Cu
Evaluation in progress for
2014 drilling
Au
ASX:WRM
Silver King
Carrington Cu
Ag
1.2Moz Ag
1km
October 2013
15. Exploration: The Copper option
Gladstone Prospect
45m @ 0.88% Cu from 40m
(supergene)
9m @ 2.06% Cu from 104m
(primary)
All Nations Prospect
18.7m @ 5.9% Cu from
52.25m (primary, not true
width)
Gold to 18g/t in primary
quartz-sulphide veins
Deeper porphyry Cu-Au
concept unexplored
15
White Rock Minerals Ltd
ASX:WRM
October 2013
16. Mt Carrington Development Summary
2012 Scoping Study
Study demonstrated potential for
cost-competitive open pit operation
Projected low capital and opex with
conventional flotation flow sheet
Upside: increases in Au and Ag prices;
increased Resource base; lower costs
in FS optimisation
2013 /14 Prefeasibility Study
Focus on de-risking flow sheet,
baseline studies, permitting, Resource
upgrade drilling and metallurgical
testwork
DFS from Q2 2014
16
The technical and economic assumptions used in calculating the scoping study base case of the project
ASX:WRM
are detailed in the WRM release to the ASX of 31 July 2012
White Rock Minerals Ltd
October 2013
17. Mt Carrington Development Timeline
CY14
Central Leases
Development
Studies
White Rock
Exploration
Resource
Drilling
Near Mine
Brownfields
White Rock Minerals Ltd
CY16+
Construction
Feasibility &
Permitting
Production
Construction
Production
Feasibility & Permitting
Ongoing
Project Evaluations &
Opportunities
17
Feasibility & Permitting
Drilling
Red Rock
CY15
As appropriate
ASX:WRM
October 2013
18. Investment Case – Why invest in White Rock Minerals?
100% Ownership and key focus on Mt Carrington; no funds bleeding to second tier
projects, no JV dilution
Location – NSW: Stable political, social and environmental jurisdiction; clear pathway for
development permitting
Resources - Robust 700,000 AuEq* in shallow deposits with clear growth upside
Infrastructure - Significant mining assets in place, de-risks development & lowers capex
Exploration - Modern first mover advantage in Drake Caldera; numerous near mine Gold –
Silver targets and strong leverage on Copper
Development Studies – Feasibility Studies progressing at a rate in line with cash reserves
Management Team – Right mix of industry and corporate experience to execute strategy
Value - Compelling value relative to Australian peers – EV / AuEq oz is $3
18
White Rock Minerals Ltd
ASX:WRM
*AuEq and AgEq calculated at 65:1 Ag : Au using metal prices of Au @
US$1,300 per oz and Ag @ US$20 per oz and does not account for mining or
metallurgical recoveries
October 2013
19. PO Box 195
Ballarat Vic 3353
Ph. 03 5331 4644
Email:
info@whiterockminerals.com.au
Website:
www.whiterockminerals.com.au
19
White Rock Minerals Ltd
ASX:WRM
October 2013
21. Board and Management
Mr Brian Phillips – Non Executive Chairman
AWASMMining (CEng.), FAusIMM, MIMMM
Brian Phillips is a mining engineer with over 40 years experience in the mining industry. Mr Phillips joined MPI Mines Limited in 1992 and was Managing Director of that company
from October 2002 until December 2004, followed by two years as Chairman of Leviathan Resources Limited. He was a Non Executive Director of Perseverance Corporation from
January 2007 until February 2008, and was a Non Executive Director of Tawana Resources NL until July 2009 and Rex Minerals Limited until June 2010. He is a currently a Non
Executive Director of Panoramic Resources Limited and Chairman of Indophil Resources NL.
Mr Geoffrey Lowe – Managing Director
B.Sc, MAusIMM
Geoffrey Lowe is a geologist with over 26 years experience in greenfields and near mine exploration for gold and copper in Australia. His career includes 18 years with the Normandy
Mining Group and Newmont Australia Ltd where he held geological and senior management positions in Queensland, Northern Territory and South Australia, followed by two years
with Leviathan Resources Limited and Perseverance Corporation Limited. Mr Lowe joined Rex Minerals Limited as Exploration Manager in August 2007, establishing and managing
the exploration portfolio and programs up to June 2010. Mr Lowe led the exploration team responsible for the discovery and delineation of the Hillside coppergold deposit in South
Australia, and was appointed Executive Director – Exploration of Rex in February 2010. In 2008 he introduced the Mt Carrington project into the Rex portfolio, and managed the revalidation of the current Mineral Resources and generation of current exploration targets. Mr Lowe resigned from Rex in June 2010 to take up his appointment with White Rock.
Mr Steven Olsen – Non Executive Director
B.Sc (Hons), M.Sc. (MinEx), Grad. Dip (F&I), MAusIMM
Steven Olsen has over 21 years experience in the resources industry with a background of 14 years working as a mine geologist and exploration geologist, predominantly in Western
Australia and Canada, on nickel and gold deposits. Mr Olsen has had continued exploration success for both nickel and gold mineralisation throughout his career. Mr Olsen’s
qualifications include a B.Sc. (Hons) University of Melbourne, a Masters in Mineral Exploration from Queens University, Ontario and a Graduate Diploma of Applied Finance and
Investment from the Securities Institute of Australia. He is currently Executive Director of Rex Minerals Limited responsible for business development.
Mr Peter Lester – Non Executive Director
B.E (Mining), MAusIMM, MAICD
Mr Lester has over 35 years’ experience in the mining industry, and has held senior executive positions with North Ltd, Newcrest Mining Limited, Oxiana Limited and Citadel Resource
Group Limited. Mr Lester’s experience covers operations, project and business development and general corporate activities. Mr Lester is a nonexecutive director of Chesser Resources
Limited, Toro Energy Ltd, Castlemaine Goldfields Ltd, Accessio Resources Pty Ltd and Nord Gold NV.
Mr Andrew Dart – Company Secretary & Chief Financial Officer
CPA, B. Comm
Andrew Dart is a CPA and has 10 years experience in accounting and financial management. Mr Dart spent 9 years with Central Highlands Region Water Corporation before joining
Rex Minerals in 2012 as Senior Accountant. Mt Dart joined White Rock Minerals as CFO in April 2013.
Mr Rohan Worland – Exploration Manager
BSc ( Hons), Grad. Dip (F&I), MAIG
Rohan Worland is a geologist with 21 years exploration experience including 14 years with the Normandy and Newmont groups. Mr Worland recently held the roles of Exploration
Manager with WCP Resources Limited, Buka Gold Limited and Rex Minerals Limited. He has extensive experience in a variety of gold deposit styles in Australia, North and South
America and New Zealand.
21
White Rock Minerals Ltd
ASX:WRM
October 2013
24. Red Rock Resources – gold / silver
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White Rock Minerals Ltd
ASX:WRM
October 2013
25. Mineral
Resource
Summary
Resource
Category
Indicated
MT CARRINGTON JORC (2004) MINERAL RESOURCES – JULY 2013
Silver Dominant Resources
Gold grade
Silver grade
Deposit
Tonnes
Gold ounces
(g/t)
(g/t)
Silver
ounces
Total
1,840,000
2,470,000
4,080,000
3,180,000
640,000
10,370,000
4,310,000
4,080,000
3,180,000
640,000
0.6
0.3
0.1
0.5
-
37,000
27,000
27,000
64,000
-
69
51
62
52
59
56
58
62
52
59
4,056,000
4,023,000
8,194,000
5,314,000
1,218,000
18,749,000
8,079,000
8,194,000
5,314,000
1,218,000
Total
Inferred
Lady Hampden
Lady Hampden
White Rock
White Rock North
Silver King
Sub-Total
Lady Hampden
White Rock
White Rock North
Silver King
12,210,000
0.2
64,000
58
22,805,000
Silver grade
(g/t)
Silver
ounces
Gold Dominant Resources
Resource
Category
Inferred
Total
Tonnes
Gold grade
(g/t)
Gold ounces
Strauss
Kylo
Sub-Total
Strauss
Kylo
Red Rock
Guy Bell
Sub-Total
Strauss
Kylo
Red Rock
Guy Bell
1,240,000
1,590,000
2,830,000
1,260,000
760,000
1,630,000
160,000
3,810,000
2,500,000
2,350,000
1,630,000
160,000
1.4
1.2
1.3
1.4
1.5
1.0
2.5
1.3
1.4
1.3
1.0
2.5
57,000
59,000
116,000
56,000
35,000
54,000
13,000
158,000
113,000
95,000
54,000
13,000
Total
Indicated
Deposit
6,640,000
1.3
275,000
Total Resources
3.8
153,000
2.6
133,000
3.1
286,000
2.6
104,000
1.8
43,000
3.5
182,000
4.9
24,000
2.9
353,000
3.2 Resources
257,000
2.3 reported176,000
in
3.5
182,000
accordance with
4.9
24,000
3.0 the JORC (2004)
639,000
code
Category
Gold ounces
Silver ounces
Indicated
Inferred
Total
25
Tonnes
4,670,000
14,180,000
18,850,000
153,000
185,000
338,000
4,342,000
19,102,000
23,444,000
White Rock Minerals Ltd
ASX:WRM
October 2013
26. 2013-14 Strategy
Exploration and Resource Expansion
Drilling to expand and upgrade the 0.7Moz AuEq Resource base
Drill test highest priority near-mine exploration targets from Q3 2013
Red Rock targets adjacent to the new Deadman’s Inferred Resource Q3 2013
White Rock deposit gold zone scoping Q4 2013
Resource upgrade drilling Q2 2014
Project Feasibility
Advance development programs to achieve PFS level confidence in 2014
Metallurgical test work to underpin optimal flow sheet design - ongoing
Environmental baseline studies in support of EIS - Q3 2013
Desk top engineering studies of infrastructure, water, power and transport - Q3/4 2013
Statutory permitting and approvals
NSW Conceptual Project Development Plan submission Q4 2013
NSW Director Generals Requirements Q1 2014
NSW Environmental Impact Statement submission Q2 2014
26
White Rock Minerals Ltd
ASX:WRM
October 2013