- PDAC. 2017
Advanced Lead-Zinc Resource Development PDAC. 2017 Pegmont Deposit - - PowerPoint PPT Presentation
Advanced Lead-Zinc Resource Development PDAC. 2017 Pegmont Deposit - - PowerPoint PPT Presentation
Advanced Lead-Zinc Resource Development PDAC. 2017 Pegmont Deposit Queensland, Australia IMPORTANT INFORMATION Cautionary Statement on Forward Looking Information This presentation is not directed to, or intended for distribution to or use by,
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IMPORTANT INFORMATION
Cautionary Statement on Forward Looking Information This presentation is not directed to, or intended for distribution to or use by, any person or entity that is a citizen or resident or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation or which would require any registration or licensing within such jurisdiction. This presentation does not constitute or form a part of, and should not be construed as an offer, solicitation or invitation to subscribe for, underwrite or otherwise acquire, any securities of Vendetta Mining Corp., nor shall it or any part of it form the basis of or be relied on in connection with any contract or commitment whatsoever. Certain information in this presentation contains forward-looking statements and forward-looking information within the meaning of applicable securities laws (collectively "forward-looking statements"). All statements, other than statements of historical fact are forward looking statements. Forward-looking statements are based on the beliefs and expectations of Vendetta Mining Corp. as well as assumptions made by and information currently available to Vendetta Mining Corp. management. Such statements reflect the current risks, uncertainties and assumptions related to certain factors including but not limited to, all costs varying significantly from estimates, production rates varying from estimates, changes in metal markets, changes in equity markets, the proposed use of net proceeds from private placements, availability and costs of financing needed in the future, equipment failure, unexpected geological conditions, imprecision in resource estimates or metal recoveries, ability to complete future drilling programs, drilling program results varying from expectations, delays in obtaining survey results, success of future development initiatives, the completion and implementation of a preliminary economic assessment, pre-feasibility or feasibility studies, competition, operating performance, environmental and safety risks, delays in obtaining or failure to obtain necessary permits and approvals from local authorities, community relations, and other development and operating risks. Should any one or more of these risks or uncertainties materialize, or should any underlying assumptions prove incorrect, actual results may vary materially from those described herein. Although Vendetta Mining Corp. believes that assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein. Except as may be required by applicable securities laws, Vendetta Mining Corp. disclaims any intent or obligation to update any forward-looking statement. Although Vendetta Mining Corp. has attempted to identify important risks, uncertainties and other factors that could cause actual performance, achievements, actions, events, results or conditions to differ materially from those expressed in or implied by the forward-looking information, there may be other risks, uncertainties and other factors that cause performance, achievements, actions, events, results or conditions to differ from those anticipated, estimated or intended. Unless otherwise indicated, forward-looking statements contained herein are as of the date hereof and Vendetta Mining Corp. disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or results or otherwise, except as required by applicable law. About Reserves and Resources This presentation uses the terms measured, indicated and inferred resources as a relative measure of the level of confidence in the resource estimate. Readers are cautioned that: (a) mineral resources are not economic mineral reserves; (b) the economic viability of resources that are not mineral reserves has not been demonstrated; and (c) it should not be assumed that further work on the stated resources will lead to mineral reserves that can be mined economically. In addition, inferred resources are considered too geologically speculative to have any economic considerations applied to them. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian rules, estimates of inferred mineral resources may not form the basis of feasibility
- r pre-feasibility studies or economic studies except for certain preliminary economic assessments.
Qualified Person Peter Voulgaris, MAusIMM, MAIG, a Director of Vendetta, is a non-independent qualified person, as defined by NI 43-101. Mr. Voulgaris has reviewed the technical content of this Presentation and consents to the information provided in the form and context in which it appears.
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PEGMONT – ADVANTAGES
- Queensland, Australia: Top Tier Mining Jurisdiction, Safe, Stable and Transparent
- Infrastructure: Roads, Haul Roads, Rail, Existing Mines & Natural Gas Pipeline
- Close to Smelters: Lead (Glencore, Mt Isa) and Zinc (Sun Metals, Townsville)
- Land Package: 3 Mining Leases (pre-native title) and 2 Exploration Permits
- Resource Growth: NI 43-101 Mineral Resource update planned in Q4 2016/17
- Geological Model Confirmed: Zinc Grades Increasing & Second Lens Discovered
- Open: Down Dip and Along Strike
- Shallow Deposit, Sulphide Mineralisation from 25 metres depth
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4 Michael Williams
B
President, CEO, Director
Over 20 years of experience as a senior executive within the mining industry. Experienced in the structuring, administrating and marketing of Toronto Stock Exchange listed companies. Served as Executive Chairman
- f numerous public companies
including Underworld Resources Ltd, which was sold to Kinross Gold Corp in 2010 for $138,000,000. Established an international banking and financing network that includes extensive contacts with both institutional and retail investors. Raised significant capital funds for advanced exploration and development projects.
Peter Voulgaris
B.Eng.(Hons), MEngSci. MAusIMM, MAIG
Director, Qualified Person
Over 20 years of international mine operations, project management and development experience. Including Mount Isa Mines’ Hilton/George Fisher lead-zinc- silver mine, Placer Dome’s Osborne copper-gold and Granny Smith gold mines, and Newmont’s Callie gold mine. Significant mine development and project management experience as Technical Services Manager at Ivanhoe’s world class Oyu Tolgoi copper- gold project in Mongolia and as Expansion Study Manager for MMG at Sepon copper-gold mine in Laos. Most recently Vice President of Business Development for the TSX listed Minco Group of Companies.
David Baker
MBA CA
Director (independent)
Has over 20 years of major mine operations and project experience. Spent 15 years with Ivanhoe Mines Group of Companies in several capacities including: Project Controller, Manager Corporate Development and Finance, and Vice President Treasurer. At Ivanhoe Minings' Oyu Tolgoi project managed the pre- feasibility study and directed the economic modeling for the negotiation of the Investment Agreement with the Government of Mongolia. Led the Oyu Tolgoi financing due diligence program for a $4 billion debt finance facility. Currently a consultant whose clients include private and publicly listed mining companies and Governments.
SENIOR MANAGEMENT AND BOARD OF DIRECTORS
Doug Flegg
MBA CFA
Director (independent)
Has over 30 years Mining and Mining Finance Experience. The last 10 years as the Managing Director of Global Mining Sales at BMO Capital Markets (BMO). At BMO, was involved in over 200 mining financings exceeding $25 billion in value. 11 years experience as Mining Portfolio Manager with UBS Global Asset Management Provided advice to senior management teams on strategic issues involving Capital Markets, Financing and Corporate Development Currently a Managing Partner (mining) at Cairn Merchant Partners a Merchant Banking and Advisory Firm based in Toronto.
Doug Ramshaw
B.Sc.(hons), A.R.S.M
Director
Former Mining Analyst for an independent brokerage firm in London, U.K. Mining Geologist, Royal School
- f Mines, Imperial College,
London, U.K. 20 years experience in the industry and capital markets. Involved in the raising of over +$100 million in mining equity financing. Provides financing, corporate governance and business development advice to junior mining companies. Director of several publicly traded mining exploration companies.
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CONSULTANTS & ADVISORS
David Esser
B.Sc. (Hons) Geology, MAIG
Contract Exploration Manager
Over 25 years of near mine and green fields exploration including former twelve years with Placer Dome holding positions
- f
increasing responsibility, culminating as Exploration Manager at the Osborne copper-gold mine, including leading the team that discovered the Kulthor copper-gold deposit. Recently Principal Geologist at Chesser Resources’ Kestanelik epithermal gold project in Turkey.
Geoff Richmond
B.Sc. (Metallurgy) FAusiMM
Contract Chief Metallurgist
An accomplished metallurgist with over 45 years of mineral processing experience. Most recently, Mr. Richmond spent 6 years as Principal Metallurgist at MMG Limited and its predecessor companies. He was project metallurgist during the detailed engineering phase at Las Cruces Mine in Spain (now First Quantum) and was Laboratory Manager at a
- ne
- f
Australia’s leading metallurgical laboratories which is now part of the ALS Metallurgy group in Tasmania, Australia. Prior to these appointments Mr. Richmond spent 14 years working in operations and process improvement at the Hellyer Zinc-Lead-Copper mine, a significant zinc and lead producer at the time.
Ocean Partners
Concentrate Marketing Advisor
Ocean Partners Holdings Limited is a base and precious metals concentrate trader providing trading, tolling, agency and consulting services to many of the world’s leading mining and smelting companies. Ocean Partners has global reach through local offices or agents throughout the world. In addition to the services mentioned above, Ocean Partners has significant experience in project and structured finance in the form of debt and equity financing agreements tied to
- fftake
and has assisted in raising
- ver
US$1B for mining companies since its inception.
Glencore – Lead-Zinc ore from George Fisher Mine being trucked 20km to Mt Isa Mine for processing
Images in this presentation by Roslyn Budd, Budd Photography, Townsville, www.buddphotography.com.au
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CORPORATE STRUCTURE*
Shares Issued and Outstanding 81,165,396 Warrants ($0.35 | exp. 08/17) 4,326,885 Warrants ($0.13 | exp. 09/18) 1,010,000 Warrants ($0.10 | exp. 05/18) 41,470,000 Options ($0.25 | exp. 10/18) 1,125,000 Options ($0.15 | exp. 12/21) 5,100,000 Fully Diluted 134,197,283 Management Ownership ~12% Institutional Shareholders: Resource Capital Fund VI LP 28% Solitario Exploration and Royalty 9.9%
Refined Lead – Glencore’s Mt Isa Lead Smelter Refined Zinc – Sun Metals Zinc Smelter Townsville * As of 28th February 2017
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VTT SHARE PRICE
Copper-Gold Discovery $2.5M Finance Closes Drilling Commences BHZ Assay Results Zone 5 Assay Results Zone 5 & Z Fold Assay Results
$0.00 $0.05 $0.10 $0.15 $0.20 $0.25 $0.30 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000
VTT Price CA$
Volume
Average Volume Last 12 Months: 253,349 Last 6 Months 424,717
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TRANSACTION (ALL AMOUNTS IN AUSTRALIAN DOLLARS)
- Option to acquire 100%
- $2.25m cash payments over 4.5
years
- $3m in exploration expenditures over
3 years +$2.2m completed
- 17,000 meters drilling over 3 years,
>10,500 m completed
- $3m advanced royalty payment at
exercise of option
- 1.5% NSR or $1.05/t Run of Mine
royalty
- Royalty credit of $5.25m, equal to
- ption payments and advanced
royalty
Amended Agreement December 2015 Status On TSX:V Approval $250,000 Paid 2014 Drill Program Completed by Vendor $350,000 Paid During 2014 2,000 m of drilling Complete September 2015 $800,000 in exploration Complete February 2016 $150,000 Paid August 2016 $1,000,000 in exploration & a minimum 3,000 m of drilling prior to April 2016 Complete February 2017 $350,000 Paid August 2017 $1,200,000 in exploration ~$400,000 completed,
- ngoing
February 2018 $500,000 August 2018 Total aggregate of 17,000 m of drilling >10,500 m completed,
- ngoing
November 2018 $1,000,000
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MOUNT ISA – MCARTHUR RIVER PROVINCE – LEAD & ZINC
McArthur River – Glencore
- Production cut backs
Myrtle & Teena – Teck (to 70%) & Rox (30%)
- Teck exercising pre-emptive right to acquire Rox’s 30% for total value of $19.6m
Century – MMG, Open Pit
- Closed
Lady Loretta – Glencore
- Care and maintenance – ore reserves preservation
George Fisher & Hilton – Glencore
- George Fisher Production cut backs
- Handlebar Hill Open Pit on care & maintenance due to wall stability problems in
host shales Mt Isa – Glencore
- Black Star Open Pit closed October 2016
Dugald River – MMG
- Project approved for 1.5Mtpa down from 2Mtpa due to adverse ground
conditions in shales
- In construction
Cannington – South32
- Grades declining year on year
- Potentially expanding from 3.2 to 4Mtpa
Source: various company news releases, annual reports and presentations.
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INFRASTRUCTURE
Australia^ 2nd Largest lead producer 2nd Largest zinc producer 4th Largest silver producer Queensland* Australia's largest producer of copper, lead and zinc* Home to over 100 metalliferous mines
^ Source: U.S. Geological Survey, Mineral Commodity Summaries, January 2016 * Source: Queensland Government, Business and Industry Portal: http://www.business.qld.gov.au/invest/investing-queenslands-industries/mining/investing-mining-services-industry
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INFRASTRUCTURE
- 28 km from South32’s
Cannington Mine, one of the world’s largest lead and silver mines (3.2 Mtpa)
- 25 km from Chinova’s Osborne
copper-gold Mine (2Mtpa)
- Concentrate rail loading sidings
at Phosphate Hill and Cloncurry
- 15 km from a natural gas
pipeline used by Osborne and Cannington Mines
- Rail line to Queensland smelters
- Access to other Australian and
Asian lead and zinc smelters through Townsville deep sea concentrate port
Mt Isa, a regional mining centre Concentrate Rail Cars – Mt Isa Townsville Port - Concentrate Shipping Korea Zinc Townsville: Refined Zinc for Export
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PROJECT EVOLUTION
2014 – 2016 Highlights Zone 5 Drilling^: PVRD017 4.56 m @ 15.60% Pb+Zn (5.45% Pb, 10.15% Zn) PVRD010 4.20 m @ 11.93% Pb+Zn (6.29% Pb, 5.64% Zn) PVRD013 11.81 m @ 9.94% Pb+Zn (6.85% Pb, 3.09% Zn) PMR283 9.0 m @ 13.23% Pb+Zn (6.35% Pb, 6.88% Zn) PMR290 9.0 m @ 8.61% Pb+Zn (5.30% Pb, 3.11% Zn) PMR294 10.0 m @ 8.68% Pb+Zn (4.77% Pb, 3.91% Zn) PVRD030 8.3 m @ 10.73% Pb+Zn (5.82% Pb, 4.91% Zn) PVRD032 7.0 m @ 9.55% Pb+Zn (6.40% Pb, 3.15% Zn) 2014-2016 Highlights Burke Hinge Zone^: PVR019 7.0 m @ 11.52% Pb+Zn (7.79% Pb, 3.72% Zn) PVR021 6.0 m @ 10.11% Pb+Zn (6.98% Pb, 3.13% Zn) PVRD023 4.0m @ 16.83% Pb+Zn (12,28% Lead, 4.55% Zn) PVRD026 6.0m @ 10.41% Pb+Zn (5.94% Pb, 4.47% Zn)
^ Please see the Company’s New Releases for full details, dated the 7th September 2016 and 21st September 2016
1970 Discovery – 1973 Discovered by Placer Prospecting (Placer Dome). Thought to be a single lens, lead dominant deposit. 1971 – 1995 Newmont (operator), Placer, Mount Isa Mines & BHP Joint Venture. 1995 – 2014 Pegmont Mines Ltd. Acquires Claims 2014– Present Vendetta Options Pegmont Deposit Initial NI 43-101 Mineral Resource Estimate Completed Near Surface Sulphide Mineralisation Discovered @ BHZ Second Lens Discovered Zinc Grade Increasing Overall and at Depth New Copper Discovery – separate system
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GEOLOGY
- Broken Hill Type deposit : Mid Proterozoic stratiform, hosted in
banded iron formation and garnet rich quartzite
- Galena and Sphalerite mineralisation, banded semi massive to
massive
- Country rock is a high grade metamorphic quartzite grading out
to gneisses (meta-sediments)
- Tight isoclinal folding in Zone 1 and Burke Hinge Zone
- Flat dipping through Zones 2, 3 and 4, each zone separated by
a drag “Z” fold
- Upright open folds in Zone 5, two mineralised lenses, zinc
grades increasing
- Sub-horizontal amphibolite dyke underlies zones 1 to 4 and
cuts the mineralisation at the boundary between Zones 4 and 5
- Later granite intrusion in the northern end of the project area
- Remobilisation/concentration of lead & zinc mineralisation into
fold structures
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BURKE HINGE ZONE (BHZ) – OPEN PIT TARGET
- Located on mining lease
ML2621
- Located 300m to the NE of
Zone 2 mineralisation at Pegmont, the bridge between Zone 2 and BHZ remains an exploration target
- Shallowest known sulphide
mineralisation at Pegmont (commencing approx. 24 m below surface) with Transition (70-80% sulphide) outcropping at surface
- 250 m Strike length, drilled to a depth of 100 m below surface
- Metallurgical samples are currently at the ALS Metallurgical Laboratory
- Burke Hinge Zone is not included in current NI 43-101 Mineral Resource
Estimate, it will be included in the planned resource update See Map Page 10 for location Cross Section Looking South East
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ZONES 1, 2 & 3 - SHALLOW HIGH GRADE
15 Cross Section Looking North East, see map page 11 for location
- Located on mining lease ML2621
- Zones 1 and 2 Open Pit Target - Transition and Sulphide mineralisation, 20 to ~100 m below surface
- Zones 2 and 3 Underground [Room & Pillar] Target - Sulphide mineralisation – Flat dipping
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ZONE 5 – INCREASING ZINC GRADES
- Located on EPM15106
- Known strike length 500 m
- Zinc grades continue to improve towards SW and Zinc to Lead ratios approaching or exceeding 1:1
- Open down dip and down plunge to NE and SW
- Metallurgical samples are currently at ALS Metallurgical Laboratory
- Zone 5 is not included in current NI 43-101 Mineral Resource Estimate, it will be included in the planned resource update
Cross Section Looking North East Cross Section Looking North East, see map page 11 for location
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METALLURGY
- Open Cycle Flotation Test Work performed on Diluted Composites of Sulphide
Mineralisation from BHZ and Zone 5 Lenses B and C, plus BHZ Transition Mineralisation.
- Separate, marketable lead and zinc concentrates produced in call cases.
- Bond Ball Work Index: BHZ Sulphide 16.6 kWh/t and Zone 5 Lens B 19.4 kWh/t,
placing them in the medium to medium hard range respectively.
- There remains scope to further optimize flotation results.
* Based on one hole, potentially not representative of the Transition Mineralisation at BHZ **Transition Mineralisation is defined as predominately sulphide mineralisation in variably weathered rocks.
ALS Metallurgy Laboratory, Pegmont Lead Rougher Flotation Test
Area Bore Holes Included in Composite Head Grades (diluted) Lead Circuit Zinc Circuit Pb % Zn% Pb Recovery % Concentrate Pb Grade % Zn Recovery % Concentrate Zn Grade %
Sulphide Mineralization
BHZ PVRD023, 024, 026, 027, 041, 042, 043, 044 & 045 5.02 3.03 91.5 70.6 61.8 50.7 Zone 5, Lens B PVRD013, 030, 032, 033, 034 & 037 5.61 4.74 88.5 68.0 75.6 50.1 Zone 5, Lens C PVRD030, 33 & 037 4.30 5.48 83.0 66.1 76.7 50.3 Transition Mineralization** BHZ* PVRD023 3.19 2.90 80.6 57.0 19.3 48.9
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EXPLORATION UPSIDE
- Zone 5 Extensions
In the direction of increasing zinc grade there is an additional 2 km of strike length and 2.8 km of down dip available to explore
- Burke Hinge Zone Repeats
5 km of strike around a large fold structure between BHZ and the “Airport BIF”, possible repetitions of the BHZ geometry, this includes a previously untested IP anomaly
- New Copper Target
- PVR040 : 3 m of 3.21% copper, 0.57 g/t gold
- High grade centred on a 10 m wide alteration halo
- A similar geological model as at Kulthor is proposed
- Kulthor is a satellite orebody at the Osborne mine, an
iron sulphide copper-gold deposit, hosted in altered pegmatites and shears
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EXPLORATION UPSIDE CONTINUED
- BONANZA LOAD
- BHZ “look-a-like”, two moderately
dipping lenses
- Same structural position as BHZ
- Limited exploration drilling:
PMRD037 5.0 m @ 3.06% Pb, 3.69% Zn PMRD038 3.4 m @ 2.27% Pb, 3.42% Zn
- Encouraging Pb:Zn ratios, and
potential to develop a shallow open pit target
Cross Section Looking South East
- BHZ – Synclines & Zone 2 Bridge Targets
- Conceptual synclines either side of BHZ limbs
- Fold hinges are known places of metal accumulation at Pegmont
- Zone 2 Bridge a flat lying target connecting Zone 2 and BHZ
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COMPARISONS
Source: various company technical reports, news releases, annual reports and presentations. 0% 5% 10% 15% 20% 25% 30%
RESOURCE GRADE TSX and ASX ZINC MINERS & DEVELOPERS
(metal prices as of 1st March 2017, 100% recovery and payables assumed)
ZnEq % Pb+Zn%
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NEWS FLOW – 12 MONTHS
Updated Mineral Resource Estimate (Q1 2017) New Regional Copper Discovery Ground EM Survey and Drilling (Q2 2017) Pegmont Lead-Zinc Resource Drilling to Commence (March/April 2017) Environmental Baseline Studies Commencing (Q2 2017) Updated Mineral Resource Estimate #2 (Q4 2017) PEA Completion Target (Q1 2018)
Mount Isa and Glencore’s Mt Isa Mine
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SUMMARY
LOCATION Queensland is a stable, pro-mining jurisdiction and world leading producer of lead, zinc, and copper Proximity to operating base metal mines, existing natural gas pipeline, rail and road infrastructure Access to both Australian and Asian smelters Multiple exit strategies identified RESOURCE ESTIMATE UPDATE Revised Geological Model Zone 1 to 4 included in the current Mineral Resource Estimate with upside on tonnes and grade Over 13,500 m to be included in updated resource estimate Zone 5 and Burke Hinge Zone to be added to next update Metallurgy completed on BHZ and Zone 5 with Marketable Pb & Zn Concentrates EXPLORATION UPSIDE Wide spaced drilling in Zone 5 is a basis for up- coming infill drilling programs Open along strike in all zones The Broken Hill Type model has the potential to deliver further stacked mineralised horizons Repetitions of BHZ, such as Bonanza and BHZ syncline targets New Copper-Gold Target to be tested with ground EM survey and drilling LEAD and ZINC Zinc: Declining inventories, closure of major mines, limited development projects available as demand is increasing Lead: Declining inventories, major mine closures, increased demand for lead- acid batteries Historically, lead and zinc prices have moved in similar trajectories
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APPENDICES
- Geological Model : Broken
Hill Type Model
- 2014 NI 43-101 Resource
- Ground Conditions
- Mount ISA – McArthur
River Province Pb-Zn
- Zinc : Upward Price
Pressure
- Zinc : Shrinking mine
supply, Declining Inventories
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GEOLOGICAL MODEL : BROKEN HILL TYPE MODEL
What is a Broken Hill Type Deposit
- Not as common as VMS but with similarities.
- Sedimentary basins overprinted by high-
grade metamorphism (amphibolite or granulite)
- Stacked lenses with low aspect ratio (longer
& wider compared to thickness)
- Mineralisation associated with banded iron
formations
- Metal Zonation
- “Skarn like” mineralogy
- Broken Hill Type Deposit Examples:
- Broken Hill, NSW Australia, the largest
accumulation of lead and zinc in the world
- Cannington, QLD Australia, a world class
lead-silver deposit
- Zinkgruvan, Sweden
- Namaqua Belt, South Africa
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2014 MINERAL RESOURCE ESTIMATE
Oxidation State Mineral Resource Category Tonnes Kt Grade Pb % Zn % Ag g/t
Sulphide Indicated 757 6.66 2.69 11.87 Inferred 4,417 6.51 2.80 10.56 Transition Indicated 797 4.50 2.17 6.88 Inferred 1,066 5.01 2.23 6.77 Oxide Indicated 512 4.56 1.58 6.37 Inferred 614 5.76 1.23 5.18
Notes on the above table:
- 1. CIM definitions were used for the Mineral Resources.
- 2. The cut-off grade applied to the oxide and transition Mineral Resources is 3% Pb
+ Zn, the sulphide cut-off grade is 5% Pb + Zn.
- 3. Cut off is based on $0.90 /lb for Pb and Zn, a $0.90 A$:US$ exchange rate, and
90% recovery for both metals.
- 4. Specific gravity used by oxidation state: 3.2 t/m3 oxide, 3.4 t/m3 transition and
3.9 t/m3 sulphide.
- 5. Using drilling results to 12 December 2013.
- 6. For full details please see: Reference: “Technical Report Pegmont Property
Mineral Resource Estimate” AMC Mining Consultants (Canada) Ltd, effective date of 28 February 2014. Available on SEDAR.
- 2014 NI 43-101 Mineral Resource
Estimate completed by AMC Consultants (Canada) Ltd.
- Only Zones 1 to 4 included in the
Mineral Resource Estimate
- >13,500 m of drilling not
included in mineral resource estimate
- Burke Hinge Zone and Zone 5
form part of significant exploration potential for sulphide lead-zinc mineralisation
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GROUND CONDITIONS
Ground Conditions at Pegmont would be classified as “very good” on Barton’s Q system. The deposit is hosted in a quartzite, characterised by very low joint counts, 100% RQD and high intact rock strength (UCS ~100 to 150MPa estimated). There is also a distinct lack of faulting, geologically the deformation history was ductile rather than brittle, this was also the case at the nearby Osborne Mine. These factors all contribute to conditions that will result in minimal unplanned external dilution in the stopes. Examples of the typical hangingwall and footwall conditions are show below (PVRD017):
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MOUNT ISA – MCARTHUR RIVER PROVINCE – LEAD & ZINC
Mine or Project Resource Category Tonnes Mt Grade Ore Reserves Tonnes Mt Grade Pb % Zn % Ag g/t Pb % Zn % Ag g/t McArthur River* Measured + Indicated 190 4.5 9.6 48 Proved + Probable 117 4.5 9.4 45 Inferred
- Teena**
Inferred 58 1.6 11.1
- Century
CLOSED Lady Loretta* Measured + Indicated 9.2 5.6 15 96 Proved + Probable 8.5 5.1 13.0 87 Inferred 0.3 5 14 80 Hilton + George Fisher* Measured + Indicated 212.8 3.6 7.5 64.6 Proved + Probable 69.5 4.0 7.6 74 Inferred 85.5 3 7 5 Mt Isa* Measured + Indicated 246.0 3.0 3.7 62.3 Proved + Probable
(Black Star)
CLOSED Inferred 120.8 2 3 50 Dugald River# Measured + Indicated 27.1 2.2 12.9 50 Proved + Probable 22.5 1.9 12.1 49 Inferred 28.5 1.7 12.0 13 Cannington Underground^ Measured + Indicated 67 4.84 3.28 177 Proved + Probable 21 5.76 3.69 206 Inferred 8.4 3.56 2.04 101 Cannington Open Pit^ Measured + Indicated 20.3 3.12 2.06 76 Proved + Probable
- Inferred
- *Glencore Resources
& Reserves Report as at 31 December 2016 **Rox Resources, New Release 1st June 2016 # MMG Limited 2016 Mineral Resources and Ore Reserves Statement as at 30 June 2016 ^ South32 Annual Report 2016, as at 30 June 2016
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ZINC : UPWARD PRICE PRESSURE
Mine closures to alter supply / demand balance Delays in new mine development Ability to finance large CAPEX projects LME stocks down >435 kt
- ver 14 months
Large inventory position still to work down Significant off-market inventories exist Increase in Chinese Mine supply
Mine closures/reductions since 2013 have removed about 15% of the global supply outpacing foreseeable new mine development.
- Brunswick Mine – Xstrata (250 ktpa) – CLOSED 2013
- Perseverance Mine – Glencore (100 ktpa) – CLOSED 2013
- Century Mine – MMG Ltd. (500 ktpa) – CLSOED 2015
- Lisheen Mine – Vedanta Resources Plc. (160 ktpa) – CLOSED 2015
- Black Star Open Cut – Glencore (140ktpa) – CLOSED 2016
- 60%
- 50%
- 40%
- 30%
- 20%
- 10%
0% 10% 20% 30% 40% 1-Jul-15 1-Oct-15 1-Jan-16 1-Apr-16 1-Jul-16 1-Oct-16 1-Jan-17
Relative Basemetal Price Performance
Zinc +26% Lead +20%
Copper 0% Nickel -18%
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ZINC : SHRINKING MINE SUPPLY, DECLINING INVENTORIES
Source: Teck presentation “Global Metals & Mining Conference”, Dec 2,2015, Goldman Sachs
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ZINC
“The next two years, 2016 and 2017, represent the ‘pinch point’ of concentrate supply, with mine-closure- related cuts expected to outweigh new output from projects.”
Wood Mackenzie Analyst, Jonathan Leng
One of the World’s Largest Zinc Mines Closes
“Mining completed at MMG Century mine in August, 2015.”
www.mmg.com – News Release | Oct. 1, 2015
www.vendettaminingcorp.com | TSXv : VTT
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NOTES:
For more information please contact:
Matthew Sroka Corporate Development
Tel: 604 484 7855 Cel: 604 219 2140 Email: ms@vendettaminingcorp.com Suite 1500 - 409 Granville Street Vancouver, BC V6C 1T2
For more information please contact:
Matthew Sroka Corporate Development
Tel: 604 484 7855 Cel: 604 219 2140 Email: ms@vendettaminingcorp.com Suite 1500 - 409 Granville Street Vancouver, BC V6C 1T2