Balkan Projects Summary Presentation July 2018 Disclaimer This - - PowerPoint PPT Presentation
Balkan Projects Summary Presentation July 2018 Disclaimer This - - PowerPoint PPT Presentation
Balkan Projects Summary Presentation July 2018 Disclaimer This presentation (Presentation), and the information contained herein, is not for viewing, release, distribution or publication into or in the United States or any other
Disclaimer
This presentation (“Presentation”), and the information contained herein, is not for viewing, release, distribution or publication into or in the United States or any other jurisdiction where applicable laws prohibit its release, distribution or publication. This Presentation is being issued by Vardar Minerals Limited (the "Company") for information purposes only. The content of this Presentation has not been approved by an authorised person for the purposes of Section 21(2)(b) of the Financial Services and Markets Act 2000. Reliance on this Presentation for the purpose of engaging in any investment activity may expose an individual to a significant risk of losing all of the property or other assets invested. This Presentation is not an admission document or an advertisement and does not constitute or form part of, and should not be construed as, an offer or invitation to sell or any solicitation of any offer to purchase or subscribe for any shares in the Company (“Shares”) in the United States or any other jurisdiction. Neither the Presentation, nor any part of it nor anything contained or referred to in it, nor the fact of its distribution, should form the basis of or be relied on in connection with or act as an inducement in relation to a decision to purchase or subscribe for or enter into any contract
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Highlights
2018 fieldwork advanced all projects to next stage
– Evidence of mineralised systems on all licences – Focussed target areas for follow up and drilling
Copper-Gold projects in Kosovo
– Au-Ag, Cu, Pb-Zn mineralisation confirmed on Mitrovica project – Analogous alteration zones to neighbouring Cu-Au porphyry deposits mapped in Drazna project – Porphyry alteration, gossans and Fe-stockworks confirm hydrothermal systems in Viti Project
Lithium-Borate project in Kosovo
– Drill-ready Li-B project with comparable geological setting to Rio Tinto’s world-class Jadar deposit
Mitrovica Drazna Viti Jadar
6 granted exploration licenses targeting four types of mineralisation:
- Porphyry Cu-Au
- Epithermal Au-Ag
- Pb-Zn-Ag replacement type
- Jadar-style Li-B mineralisation
All Vardar and JV licenses :
- Recently awarded
- Exploration rights for 3 years
- Extendable for additional 3 x 2
years
- Total Area = 333.2 km2
Projects
Copper-Gold Projects
Selected rocks from Kosovo porphyry projects
Copper-Gold Project Overview
- Tertiary calc-alkaline magmatic
arc known for major Pb-Zn districts.
- Recently exploration has identified
significant associated porphyry Cu-Au potential.
- Current focus of a number of
majors with several recent discoveries.
- Vardar have secured 3 well
positioned porphyry-epithermal projects.
Recent porphyry related discoveries in the Tertiary Arc:
- Dundee Precious Metals Kiseljak/Tulare project (459 Mt @ 0.22%
Cu and 0.2 g/t Au)
- Eldorado Gold Skouries project (226 Mt @0.54% Cu, 0.91 g/t Au)
- Euromax Resources Ilovica project (256Mt @ 0.21% Cu, 0.32 g/t Au)
Skouries Ilovitsa Trepca Pb-Zn-Ag district Maaden Pb-Zn district Kiseljak
Vardar
Project highlights:
- In proximity to the 40mT Stan-Terg
Pb-Zn mine.
- Classic porphyry alteration
mapped
- Highly anomalous Au and Ag
epithermal target areas
- Anomalous Cu associated with
dykes and breccias in the basement
- Extensive mineralised (Pb-Zn>2%)
gossans identified with strike > 5km
Mitrovica Au, Cu, Pb-Zn Project
2.5% Zn, 1.5% Pb 7 g/t Au
Au/Ag target areas Pb-Zn gossans Cu target areas Stan Terg Mine
1 2 1 2
Project highlights:
- In proximity to Kiseljak Cu-Au
porphyry and Draznja Pb-Zn deposits.
- Alteration typical of porphyry
related systems
- Classic epithermal alteration
centre with elevated As and Au
- Fe-Ox gossans with anomalous
Zn
- Anomalous Au, Pb and Cu
returns from grab samples.
Drazna Pb- Zn deposit Kiseljak Cu-Au porphyry
Au/Ag Zn Au
Prospective Lece Magmatic Complex
Drazna Copper-Gold Project
Zn
Au epithermal target
Advanced argillic altered rocks from Au target
Project highlights:
- Licenses target an interpreted
circular intrusive (caldera)
- Intense alteration typically
associated with porphyry systems identified
- Several gossans, hydrothermal
breccias and Fe-stockworks identified with anomalous As and elevated Zn and Cu
Porphyry alteration Porphyry alteration
Viti Copper-Gold Project
Circular caldera
Hydrothermal breccias & FeOx stockwork
Lithium-Borate Projects
Viti Lithium-Borate Projects
Rio Tinto’s Jadar Deposit:
- Assessed geological
resource of more than 135Mt @ 1.86% Li2O and 15.4% B2O3.
- Potential to supply
>10% of global Lithium demand.
- Equivalent borate
product resources @ 21 Mt.
Comparison with Jadar: ✓ Miocene lacustrine sedimentary rocks with intrabasinal tuffs. ✓ Associated volcanic activity provides metal source and hydrothermal heat engine. ✓ Tectonically active environment with basin scale faults acting as conduits for metal-rich brines. ✓ Fault controlled graben = closed basin environment which allows for metal concentration in playas.
Does Viti fit the Jadar Li-B deposit Model?
Viti Lithium-Borate Project
- Mapping and geophysical
modelling completed
- Advanced drill-ready project
Basin margin
Basin
Caldera structure
Sub-volcanics
Proposed Work Programme
- Drazna
– Ground magnetic survey over epithermal target area – Trenching/sampling Fe-Oxide gossans – IP to generate drill targets – Drill testing as required
- Viti
– Further field mapping – Trenching/sampling Fe-Oxide gossans – IP to generate drill targets – Drill testing as required
- Mitrovica
– Trenching, channel sampling and mapping Pb-Zn gossans for drill target planning – RC drilling to test extent/grade of Pb- Zn mineralisation – Heliborne magnetic-radiometric to map structures controlling Au-Ag mineralisation + porphyry targets – Trenching/mapping/rock sampling to test targets – IP surveys to provide drill targets – Diamond drilling to test Au and Cu targets
- Viti Li-B project
– Sampling hot springs, mudstones for elevated Li – Drill testing basin for evidence of salt horizons and Li-B mineralisation
Timelines
2018 2019 Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Viti (Li-B) Mitrovica Drazna Viti (Cu)
Field mapping, stream sampling, soil geochemistry Trenching, ground geophysics Drill targeting and ground preparation Drill testing targets Heliborne mag/spec
News Flow
Q4 2018
- Trenching results for
Mitrovica Pb-Zn
- Groundmag results for
Drazna epithermal target
- Trenching results for Viti
gossans
Q1 2019
- Drill testing Viti Li-B
project
- Drill testing Mitrovica
Pb-Zn gossan
Q3 2019
- Drill testing targets
Q2 2019
- Helimag results
- IP surveys for drill
targeting
2019/20
- Ground geophysics,
sampling, mapping and drilling to prove up targets
Project Conceptual targeting Reconnaissance site visits support target model License application submitted Licenses awarded Traverse mapping confirms mineralisation potential Sampling / mapping identifies target areas Detailed mapping and geochem prioritise targets Ground geophysics / trenching provides drill targets Drill testing of targets
Mitrovica Au
Q2/Q3 Q4 19-Q2
Drazna Cu-Au
Q3/4 Q4/Q1
Viti Li-B
19-Q2
Viti Cu
Q3/4 19-Q1
Chelnik
Exploration pipeline
Yambol Boyadzhik Lozen Srednogora
Stage Gate Stage Gate Stage Gate
Exploration maturity and pipeline
Stage Gate
Investment opportunity
Well positioned license holding in proximity to significant deposits, major exploration campaigns and mining districts:
- Mitrovica project with extensive mineralised Pb-Zn gossans, Au
targets and potential for Cu-Au porphyry mineralisation
- Drazna porphyry Cu-Au project proximal to Dundee’s Kiseljak
porphyry discovery with similar alteration, anomalous geochemistry and epithermal Au target
- Viti porphyry Cu-Au project with characteristic alteration on margins
- f circular intrusive structure with associated gossans, breccias and
Fe-stockworks
- Advanced drill ready Li-B project with analogies to Jadar.
Low, cost-effective expenditure to progress projects to drill testing. Sizeable, recently awarded license holding in proximity to European markets.
Appendix
Kosovo background
- Independent since 2008
- Member of IMF, World Bank and EBRD
- Potential candidate to join EU
- Significant NATO presence via KFOR
- Home of largest US military base in the Balkans
- VAT 18%, Corporate Tax 10%
License details
Project License License holder Issue Renewal Area (Km2) Mitrovica 1724/KPMM/ 2017 Vardar Geoscience Kosovo LLC 2017/08/21 2020/08/02 54.3 Viti 1723/KPMM/ 2017 Vardar Geoscience Kosovo LLC 2017/08/21 2020/08/02 73.5 1758/KPMM/ 2017 Vardar Geoscience Kosovo LLC 2017/11/23 2020/11/12 88.3 1759/KPMM/ 2017 Vardar Geoscience Kosovo LLC 2017/11/23 2020/11/12 52.1 Drazna 1567/KPMM/ 2016 Byl & Byl SH.P.K. 2016/05/31 2019/05/02 11.4 1708/KPMM/ 2017 SunKo Trade SH.P.K. 2017/07/21 2020/07/11 52.4
Earn-in Terms for Drazna Project
- The Drazna project covers two licences
- Fifteen thousand euro on contract signing (completed)
- 1000 per month per licence admin fee (up to date)
- To be transferred to NewCo owned 85% by Vardar of 2nd
anniversary of issue
- 200,000 in shares on transfer to NewCo
- 10,000 in cash on transfer
- Vardar to fund until first JORC resource completed
Kosovo license regulations
- License term of 3 years extendable for 3 x 2 years provided
license is reduced by 50% on each renewal
- Maximum exploration license holding of 300 km2
- Mining license term of 30 years extendable for an additional 15
years
- Royalties negotiated on registration of mining licenses
- Exploration expenditure requirements:
Km^2 Ha Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 €/Ha 10 20 30 50 50 50 50 50
Region Highlights: Tertiary Tethys Arc
- Renowned historical Pb-Zn mining districts including Trepca, Maaden, and Madjanpek
- Limited exploration for porphyry copper/gold despite compelling link to porphyry
sources for Pb-Zn-Ag and Au mineralisation
Trepca Pb-Zn-Ag District Maaden Pb-Zn District Madjaravo Pb-Zn-Au District Skouries Kiseljak Ilovitsa
- Significant recent porphyry
discoveries – Dundee Precious Metals: Kiseljak/Tulare (300 Mt) – Eldorado Gold: Skouries (568 Mt) – Euromax Resources: Ilovica (256Mt)
- Tertiary Arc is rapidly
becoming an exploration focus for majors (Dundee, Eldorado, First Quantum)
- Excellent exploration
- pportunities for porphyry
related mineralisation
Legend Porphyry Cu-Au and polymetallic
Total metal content (t)
370,000 Pb_perc Zn_perc Cu_perc Au_g_t
Tertiary magmatics
Felsic Intermediate Mafic Volcanosedimentary
Cretaceous magmatics
Felsic Intermediate Mafic Volcanosedimentary
Tertiary Tethys Arc with major ore fields and recent porphyry development projects highlighted
Region Highlights: Cretaceous Tethys Arc
- World-class porphyry deposits
– Madjanpek (1.2 Gt); Borska Reka (591 Mt), Elatsite (319 Mt), Chelopech (425 Mt), Assarel (354 Mt)
- Recent discoveries in the
Timok Complex demonstrate potential under cover – Cukuru Peki (350 Mt @ 2.9% Cu, 1.7 g.t Au)
- Exploration boom in Serbia
by major and junior explorers
- Significant opportunity in
Bulgarian extension of the Arc which lacks modern systematic exploration
Legend Porphyry Cu-Au and polymetallic
Total metal content (t)
370,000 Pb_perc Zn_perc Cu_perc Au_g_t
Tertiary magmatics
Felsic Intermediate Mafic Volcanosedimentary
Cretaceous magmatics
Felsic Intermediate Mafic Volcanosedimentary
Bor Cukuru Peki Madjanpek Elatsite Chelopech Assarel Cretaceous Tethys Arc with major porphyry deposits highlighted
Mitrovica License Data coverage and work completed
- Regional magnetic,
radiometric and FEM data purchased
- Regional stream sediment
sample data purchased
- 485 mapping site descriptions
- 183 grab samples analysed
- 25 petrography samples
Legend
Au_ppm
!0.005 - 0.050
!
0.051 - 0.150
!
0.151 - 1.010
!
1.011 - 2.710
!
2.711 - 7.210
Ag_ppm
$0.0 - 0.1
$
0.2 - 0.3
$
0.4 - 1.7
$
1.8 - 5.0
$
5.1 - 10.9
$
10.9 - 39.0
Pb_ppm
#2 - 184
#
185 - 518
#
519 - 961
#
962 - 1840
#
1841 - 4030
#
4031 - 14050
Zn_ppm #
2 - 651
#
652 - 2080
#
2081 - 7100
#
7101 - 15950
#
15951 - 25300
Cu_ppm
" )1 - 26
" )
27 - 67
" )
68 - 165
" )
166 - 423
" )
424 - 2100
Mapped lithology and alteration Unit, Lith
Pliocene-Quaternery clastic Unit, UCS Vardar Greenschist Unit, PHY Vardar Ophiolite Unit, MTB Vardar Ophiolite Unit, UM Volcanic Unit, DAC Volcanic Unit, TRY Volcano-Sedimentary Unit, BCG Volcano-Sedimentary Unit, VCG Gossan Advanced argillic alteration Intense argillic alteration Argillic alteration Silicification
Advanced argillic zone: Highly anomalous Au (up to 7 g/t) and Ag (up to 70g/t) in grab samples Anomalous Cu in basement dykes and breccias (>2000ppm) Extensive mineralised gossan (up to 2.5% Zn and 1.5% Pb
Mitrovica project highlights
Viti Licenses Data coverage and work completed
- Regional magnetic,
radiometric and FEM data purchased
- Regional stream sediment
sample data purchased
- 390 mapping site descriptions
- 79 grab samples analysed
- 28 petrography samples
- 20 km ground magnetic data
collected
Intense argillic alteration with wide gossan zones, highly anomalous As and elevated Cu
Legend
Vardar Viti Project
Au_ppm
!. 1
- .
2
!
. 3
- .
4
!
. 5
- .
6
!
. 7
- .
1 1
Zn_ppm
#6
- 3
9
#
4
- 7
#
7 1
- 1
4
#
1 5
- 1
5 3
#
1 5 4
- 7
1
Pb_ppm
#2
- 1
4
#1 5
- 3
4 # 3 5
- 6
7
#
6 8
- 1
#
1 1
- 1
7 2
#
1 7 3
- 3
1 1
Cu_ppm
" )1
- 2
8
" )
2 9
- 5
4
" )
5 5
- 1
6
" )
1 7
- 2
9 4
Mapped lithology and alteration
Pliocene-Quaternery clastic Unit, UCS Upper Miocene Sediments, LMS Upper Miocene Sediments, SCS Lower Cretaceous Sedimentary Unit, SST Basement Unit, MRL Basement Unit, QRZ Basement Unit, SCH Upper Cretaceous Sedimentary Unit, SST Vardar Ophiolite Unit, MRB Vardar Ophiolite Unit, MSS Vardar Ophiolite Unit, MTB Vardar Ophiolite Unit, SST Volcanic Unit, AND Volcanic Unit, LAT Volcanic Unit, LCT Volcanic Unit, TRY Volcano-Sedimentary Unit, BCG Volcano-Sedimentary Unit, LMS Volcano-Sedimentary Unit, VCG GOS_region SIL_region PRP_region AR_3-4_region AR_1-2_region Structure from magnetics Extent of Oligocene volcanics from magnetics
Zone of intense argillic and silicic alteration, gossanous ridge Alteration associated with Fe-stockwork and gossan, elevated Zn Hydrothermal breccia stockwork with elevated Au Zones of intense alteration associated with subvolcanic body, elevated Zn, Pb, Cu
Viti project highlights
Drazna Licenses Data coverage and work completed
- 428 mapping site descriptions
- 372 soil samples collected
- 67 grab samples analysed
- 31 petrography samples
Legend
Ag_ppm
$0.0 - 0.2 $ 0.3 - 1.3
$
1.4 - 7.0
$
7.1 - 19.9
$
20.0 - 57.2
Au_ppm
!0.00
!
0.01
!
0.02 - 0.03
!
0.04 - 0.10
!
0.11 - 0.36
Pb_ppm
#0 - 33 # 34 - 193
#
194 - 479
#
480 - 2400
#
2401 - 6480
Zn_ppm
#0 - 26 # 27 - 64
#
65 - 122
#
123 - 298
#
299 - 926
Au_ppm
< -0.50 Std. Dev.
- 0.50 - 0.50 Std. Dev.
1.5 - 2.5 Std. Dev. > 2.5 Std. Dev. Au anomaly (Draznje)
Mapped lithology and alteration
Lower Cretaceous Sedimentary Unit, SST Serbo-Macedonian Massif, SCH Volcanic Unit, AND Volcanic Unit, LAT Volcanic Unit, RIO Volcano-Sedimentary Unit, VCG SIL_region GOS_region AS_region PRP_region AAR_region AR-4_region AR-2_region Kiseljak - Yellow Creek Porphyry Drazna_Pb-Zn_Deposit
Adularia-sericite alteration overprinting intense argillic + anomalous Ba and elevated Au and As in soil results Au & Ag anomalies in grab samples from qrtz- CO3 vein stockwork Gossanous Fe-stockwork, anomalous Zn Gossanous Fe-stockworks noted, anomalous Zn