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

ASX Code: BRB www.breakerresources.com.au

A NEW GOLD SYSTEM IN AUSTRALIA’S PREMIER GOLD PROVINCE

Tom Sanders, RIU Resources Round-up Sydney, 14-16 May 2013

Cautionar y State me nt

2

Disc laime r

DISCL AIME R T his pre se nta tio n ha s be e n pre pa re d b y Bre ake r Re so urc e s NL (“Co mpany”) in c o nne c tio n with pro viding g e ne ral and b ac kg ro und info rmatio n o n the Co mpany. 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 any ma tte r tha t an a dviso r o r po te ntial inve sto r sho uld c o nside r in e valua ting the Co mpany. T he Co mpany a nd its re la te d b o die s c o rpo ra te o r any o f its dire c to rs, a g e nts, o ffic e rs o r e mplo ye e s do no t make a ny re pre se nta tio ns o r wa rranty, e xpre ss o r implie d, a s to o r e ndo rse me nt o f the Co mpany, the a c c urac y o r c o mple te ne ss o f any info rma tio n, sta te me nts o r re pre se nta tio ns c o ntaine d in this pre se nta tio n, and the y do no t a c c e pt a ny liab ility wha tso e ve r (inc luding in ne g lig e nc e ) fo r a ny info rmatio 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 and unkno wn risks, de la ys a nd unc e rta intie s no t unde r the Co mpany’ s c o ntro l whic h ma y c a use ac tual re sults, pe rfo rmanc e o r a c hie ve me nts o f the Co mpany to b e ma te rially diffe re nt fro m the re sults, pe rfo rmanc e o 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 mpany ma ke s no re pre se ntatio n o r wa rranty, e xpre ss o r implie d, a s to o r e ndo rse me nt o f the ac c urac y o r c o mple te ne ss o f any 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 mpany. Any disc ussio n in re la tio n to E xplo ratio n T a rg e ts, implie d o r sta te d, is o nly c o nc e ptual in na ture . I nve sto rs a re a dvise d tha t b y the ir na ture a s visual a ids, pre se nta tio ns pro vide info rmatio 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 mpany no r sho uld this pre se nta tio n b e re lie d upo n b y any a dviso r o r po te ntial inve sto r in making an inve stme nt de c isio n in the Co mpany. COMPE T E NT PE RSONS ST AT E ME NT T he g e o lo g ic al info rmatio 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

Sande rs who is a me mb e r o f the Austra la sian I nstitute o f Mining and Me tallurg y. Mr Sande rs is a n E xe c utive o f Bre ake 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 Sande rs ha s suffic ie nt e xpe rie nc e whic h is re le vant to the style o f mine ralisa tio n and type o f de po sit unde r c o nside ra tio n to qualify 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 sian Co de fo r the Re po rting o f E xplo ra tio n Re sults, Mine ral Re so urc e s a nd Ore Re se rve s”. Mr Sande 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 la nd ma rk c ha ng e s a ffe c ting WA’ s E a ste rn Go ld fie ld s Supe rte rra ne (E GST ) whic h a c c o unts fo r 75% o f Austra lia ’ s g o ld

Attila

Known Gold De posits Duke ton T r

• pic a na

10Moz 7.9Moz 1Moz



Bre a ke r no w la rg e st te ne me nt ho ld e 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)



Busine ss str a te g y… sha r e holde r va lue / le ve r a g e

Gro wth via d isc o ve ry using mo d e rn so il g e o c he m to find “c o mpa ny ma king ” g o ld d e po sits in la rg e une xplo re d pa rts o f a wo rld c la ss g o ld pro vinc e



E a r ly suc c e ss on une xplor e d g r

• und

−

L a r g e ne w g old syste m ide ntifie d a t De xte r Pr

• je c t (initia l RC dr

illing in pr

• g r

e ss to te st pote ntia l)

−

Sig nific a nt (+10km) g old-in-soil a noma lie s ide ntifie d a t Mt Gill a nd Kur r a jong South Pr

• je c ts

E aste r n Goldfie lds Supe r te r r ane (E GST )

Intr

• duc tion

Cor por ate Ove r vie w

4

Intr

• duc tion

Ca pita l Struc ture (L iste d April 2012, $0.20 pa r)

 F

ully pa id sha re s: 55.1 million

 Ma rke t c a p ($0.35): ~$19.3 million  L

iste d options: 21.2 million ($0.25 De c 2014)

 Ca sh: $3.2 million (31 Ma rc h 2013)  Unliste d options: 8.1 million  T

• p 20 inve stors: 88.4%

Sha re re g iste r domina te d by la rg e funds Bre a ke r Sha re Pric e vs All Ords Gold Inde x BRB vs XGD - One Ye a r to Ma y 2013

De xte r Announc e me nt XGD

BRB +75% XGD - 31%

BRB

Boar d & Se nior Manage me nt

5

Intr

• duc tion

E xe c utive Chair man

• 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 ld fie ld s re g io n; pre vio usly b uilt a 2Mo z g o ld inve nto ry

Non- E xe c utive Dir e c tor

• Pro c e ss e ng ine e r with 38 ye a rs e xpe rie nc e in the mining ind ustry
• 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 Dir e 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

Mar k E dwar ds E xplor ation Manage 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

Manage r Cor por ate Affair s/ Company Se c r e tar y

• 18 ye a rs a d ministra 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 r ie nc e d mining industr y pr

• fe ssionals foc use d on shar

e holde r value

T

• m

Sande r s Mike Kitne y

Pr

• je c t Ove r

vie w

6



Bre a ke r’ s pro je c ts a re o n se le c te d struc ture s a dja c e nt to ma jo r c rusta l fa ults whe re g o ld is kno wn to b e mo st a b unda nt

E aste r n Goldfie lds Supe r te r r ane (E GST )

T r

• pic a na

Attila

Duke ton 10Moz 7.9Moz 1Moz



T he e a ste rn ha lf o f the E GST is e sse ntia lly une xplo re d o 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 disc o ve ry ho t spo t with e xpa nding infra struc ture



E ar ly r e sults validate o ur str ate gic fo c us and …the unte ste d go ld po te ntial o f the E GST



Ya ma rna She a r (ma in fo c us)

− De xte r Pro je c t (la rg e g o ld syste m)

8,500m RC drilling in pro g re ss

− Mt Gill Pro je c t (multi-km a no ma lie s) − K

urra jo ng So uth (12km a no ma ly)

− Duke to n No rth/ De L

a Po e r Br e ake r ’s Pr

• je c ts

7

Pe r spe c tive

Why a Ne w Se ar c h Spac e ?

 10 Ye ar

s of Inte nsive Re se ar c h (2001- 2010)

• struc tura l a nd me ta mo rphic histo ry re writte n
• ne w unde rsta nding o f g o ld g e ne sis a nd c o ntro ls o n mine ra lisa tio n

 Ne w tools for

e xplor ing tr anspor te d c ove r

• 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

 Ne w data (Ge ologic al Sur

ve y of We ste r n Austr alia 2005 - 2009)

• a e ro ma g , g ra vity, se ismic surve ys, ma pping , g e o c hro no lo g y
• ne w Yamarna T

e rrane (sa me a g e a s K a lg o o rlie T e rra ne , Oc t 2010)

• da ting o f 3 g o ld e ve nts fo r the first time

 Se ve r

al signific ant gold disc ove r ie s dur ing this time

• 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)

8

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

Pe r spe c tive

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

9

Br e ake r ’s Pr

• je c ts

 So urc e o f the g o ld b e lo w c o ve r – sa nd (1m-3m), Pe rmia n se dime nt (25m-75m))

De xte r Gold Pr

• je c t

Up to 0.3g/ t gold and 17.4g/ t silve r in sandy de se r t soil

10



140km SE

• f L

a ve rto n 80km NW o f T ro pic a na



A ve ry larg e pro je c t



E sse ntia lly une xplo re d



Outsta nding struc tura l se t-up



Initia l ste p: 1,600m x 400m

• Pha se I a ug e r soils

72km 1,102km 2

Br e ake r ’s Pr

• je c ts

Sydne y to Wollong ong

De xte r Pr

• je c t Inte r

pr e te d Ge ology

De xte r Gold Pr

• je c t

11 De xte r Pr

• je c t Gold- in- Soil Contour

s ove r Ae r

• magne tic Image

 1,600m x 400m patte r

n soils 

Unusua lly la rg e a nd c ohe 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

10km

Pha se II Aug e r

De xte r

• Phase I Soil Re sults

Br e ake r ’s Pr

• je c ts

12

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

2 km

Pe ak value 31ppb gold

400m x 100m Infill Pa tte rn Infill Soils



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

16km

T hr e e Be ar s Pr

• spe c t

T allows Pr

• spe c t

De xte r

• Phase II Soil Re sults

Br e ake r ’s Pr

• je c ts



~10 time s la rg e r in size a nd ma g nitude tha n T ro pic a na -Ha va na so il a no ma ly

• sug g e sts so me thing unusua l b e lo w

Ima g e d g old- in- soil (400m x 100m)



A la rg e a re a ...ne e d to sc o pe the syste m with a irc o re drilling e nsure tha t initia l RC drill ho le s a re in the b e st pla c e

Airc ore drill line s (pink)

Air c or e and RC Appr

• ac h

13



De xte r drill a pproa c h: simila r to first pa ss T ropic a na drilling

Pe r spe c tive

T arge te d supe rge ne “smoke ” above the gold de posit … a muc h bigge r targe t than the ore positions be low AIRCORE Phase 1 We athe re d Arc he an Pe rmian c ove r Arc he an RC Phase 2

14

Br e ake r ’s Pr

• je c ts

T

• tal downhole gold (ppb) in air

c or e dr illing

• ve r

400m x 100m gold- in- soil image

Sye nite Amphibolite

De xte r

• Air

c or e Dr illing: T hr e e Be ar s

SY SY SY

Bottom- of- hole sye nite ~1g/ t gold (mantle c onne c tion c onfir me d) 



~23,000m a irc o re d rilling c o mple te d to sc o pe the syste m in pre p fo r RC d rilling (200m-400m line spa c ing ; 40m ho le spa c ing )

Young- Davidson Mine Sye nite (4.8Moz) Sc ale

1km



T hr e e 2-3km-long zone s of g old e nr ic hme nt in tr a nspor te d c ove r

• ve r

a lte r e d sye nite (“smoke ” fr

• m infe r

r e d be dr

• c k sour

c e )



Be dr

• c k mine r

a lisa tion c onfir me d in fr e sh a lte r e d sye nite up to 1g / t g old (dr ill pe ne tr a tion <1m, RC dr illing in pr

• g r

e ss)

15

Br e ake r ’s Pr

• je c ts

T

• tal downhole gold (ppb) in airc ore drilling
• n 400m x 100m gold-in-soil image

Sye nite Amphibolite

De xte r

• Air

c or e Dr illing: T allows Ce ntr al



Multi- km zone s of se c onda ry g old e nric hme nt “smoke ” in tra nsporte d c ove r (to 3m @ 7.5g / t g old)



Be droc k fa ults in a lte re d sye nite a noma lous in g old a nd ha ve simila r pa thfinde r e le me nts to Young - Da vidson g old mine , Ca na da (drill pe ne tra tion of fre sh be droc k <1m)

SY SY

Young - Da vidson Mine Sye nite (4.8MOz) 3m @ 7.5 g / t Au “smoke ” Sc a le

1km

Infe rre d Mine ra lise d Be droc k F a ults



RC drilling c urre ntly in pro g re ss (with $150K suppo rt fro m WA g o ve rnme nt E I S sc he me )



Drill ho le s o n 400m-1,200m line spa c ing ; 40m-80m ho le spa c ing (ve ry wide -spa c e d )



Hig he r g ra de zone s of se c onda ry g old e nric hme nt de fine multiple sta c ke d be droc k fa ult positions

Kur r ajong South/ Attila We st Pr

• je c ts

16

Br e ake r ’s Pr

• je c ts

Attila We st L andsc ape ; She ar e d Mafic F

• otwall Roc ks

Kur r ajong South/ Attila We st Pr

• je c ts

17

Br e ake r ’s Pr

• je c ts

570km 2 919km 2 Inte r pr e te d Ge ology with Pr e vious Dr illing & Gold- in- Soil Anomalie s

Attila We st Pr

• je c t



L a rg e a re a a d ja c e nt to Ya ma rna She a r a nd 1Mo z Attila d e 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 d rilling c o mple te d , re sults und e r a sse ssme nt

Kur r a jong South Pr

• je c t



Histo ric a l so il a no ma ly

−

45ppb g o ld (WMC)

−

no pre vio us d rilling

−

g o o d struc tura l se tup



Aug e r d rilling c o mple te d

−

12km g o ld -in-so il a no ma ly d e fine d

Kurra jong South Proje c t

18

Br e ake r ’s Pr

• je c ts

570km 2 Gold- in- Soil Anomaly

Young - Da vidson Mine Sye nite (4.8MOz)

12km 1600m x 400m Soils ove r Inte r pr e te d Ge ology

1km Sc ale



L ar ge c ohe r e nt gold- in- soil anomaly c or r e late s with ge ology in a re a o f tra nspo rte d c o ve r



Pe ak value of 24ppb gold, 1,574ppb silve r with e le va te d me rc ury, mo lyb de num a nd

c o ppe r



F

• llo w-up infill so ils (~June 2013) with a irc o re drilling pla nne d in Se pt/ Oc t 2013

Mt Gill Proje c t

19

Br e ake r ’s Pr

• je c ts

Mt Gill L andsc ape : up to 63ppb Au gold- in- sand anomaly

20

Br e ake r ’s Pr

• je c ts



L

• c a te d 30km NW o f 1Mo z Attila -

Ala ric de po sits



50km o f Ya ma rna She a r



No pre vio us drilling <10% histo ric a l 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)

• 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)

518km 2

Mt Gill Proje c t

50km Mt Gill & Kur r ajong Nor th Pr

• je c ts Inte r

pr e te d Ge ology

21

Br e ake r ’s Pr

• je c ts

Gold- in- Soil Image 1,600m x 400m auge r r e sults

Mt Gill - Pha se I Aug e r Re sults

25km

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

Ae r

• magne tic Image

Ma fic c omple x



Multiple g old- in- soil a noma lie s ove r lar ge a re a s

−

Gold up to 63ppb

−

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



Ano ma lie s to we st o f Ya ma rna She a r c o rre spo nd with struc tura l ta rg e ts a nd ma g ne tic lo w (sa nd)



Ano ma lie s to e a st o f Ya ma rna She a r in Ya ma rna Gre e nsto ne b e lt (mixe d re sidua l so il/ sa nd)



I nfill so il sa mpling pla nne d June 2013; a irc o re drilling Se pt/ Oc t 2013

Ma fic c omple x Gold- in- soil a noma lie s c orre spond with struc tura l fe a ture s

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

22

Br e ake r ’s Pr

• je c ts

869km 2 527km 2 Inte r pr e te d Ge ology

De L a Poe r Pr

• je 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



E sse ntia lly une xplo re d



Phase I auge r dr illing c omple te d (multiple gold anomalie s)

130km

Sydne y to Ne wc a stle

R e g is 10Moz

Gold Ca mp

Duke ton Nor th Pr

• je 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



Phase I auge r dr illing c omple te d (multiple gold anomalie s)

Inve stme nt Summar y

23

Conc lusion

 Bre a ke r ha s ide ntifie d a L

ARGE ne w g re e nfie lds g o ld syste m a t its De xte r Pro je c t…upo n RC drill c o nfirma tio n o f e c o no mic g ra de s, a ra pid re -ra ting o f the Co mpa ny is like ly

 Bre a ke r is b uilding a n inno va tive g o ld b usine ss b a se d o n stro ng re sults;

the e xplo ra tio n b udg e t o f ~A$3M fo r 2013 will b e re vise d upwa rds upo n disc o ve ry

 Bre a ke r’ s ma rke t c a p o f ~A$19M e q ua te s to

A$3,500/ km 2…va lue with va st upside po te ntia l in o ur vie w

Golde n Stor m

 8,500m RC drilling is in pro g re ss with re sults e xpe c te d in mid-July 2013  Sig nific a nt (+10 km) g o ld-in-so il a no ma lie s a t the pre vio usly undrille d

K urra jo ng So uth a nd Mt Gill Pro je c ts a re hig hly pro spe c tive with fo llo w- up in June 2013

24

T HANK YOU

Conc lusion