CHAIRMANS ADDRESS & AGM PRESENTATION Tuesday, 22 November 2011 - - PDF document

chairman s address agm presentation tuesday 22 november
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CHAIRMANS ADDRESS & AGM PRESENTATION Tuesday, 22 November 2011 - - PDF document

CHAIRMANS ADDRESS & AGM PRESENTATION Tuesday, 22 November 2011 Dear Fellow Shareholders Mithril Resources Ltd was very active during the year under review pursuing its mission of discovering economic base metal deposits with a focus on


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SLIDE 1

CHAIRMAN’S ADDRESS & AGM PRESENTATION Tuesday, 22 November 2011

Dear Fellow Shareholders Mithril Resources Ltd was very active during the year under review pursuing its mission of discovering economic base metal deposits with a focus on nickel and copper. The main activities included:

  • Continued aggressive exploration on the Company’s promising Northern Territory projects,

particularly Huckitta.

  • Expanding its land position in the very prospective Yilgarn and Pilbara regions of Western

Australia.

  • Completion of a $12M capital raising through the placement of 100 million new shares. This

funding enabled the Company to scale up its exploration and drilling at Huckitta in the Northern Territory.

  • Playing a pivotal role in the formation of Musgrave Minerals Ltd (MGV), a recently ASX listed

mineral exploration company. At Huckitta, drilling of the Basil Copper Prospect has indicated sulphide mineralisation over 3.9km of strike length within a trend that extends for over 10km. Drilling at the Peaks Zone on this trend intersected 11.5m at 1.01%Cu and 0.08%Co and the higher grades observed at Peaks may provide clues as to the location of significantly higher copper grades on the Basil trend. Although drilling to date has indicated mainly lower grade mineralisation, the mineralising event is large and appears fertile enough to reasonably expect that higher grade zones could have developed. The zone represents a target that still justifies further work and at present the Company is compiling all information collected to date to help target drilling in 2012 and to complete an initial resource calculation for the Rotten Hill mineralised zone on the Basil trend. Recently, the Company has identified new copper prospects, named Austin and Bigglesworth within a broad alteration package that is consistent with an iron oxide copper gold (IOCG) mineralising system. These prospects are located on the Huckitta project approximately 25km south of the Basil trend. It is a different style of mineralisation to Basil and given the encouragement from the early results received to date we expect it to be a new focus for the project going forward. Heritage clearance surveys have been completed at Austin and the target will be drill ready at the beginning of the next field season in March 2012. The Company continues to be well positioned to deliver its growth strategy of discovery and development of economic base metal deposits as it goes into the new financial year with a portfolio of diverse and quality exploration projects and $10.6M of cash (as of 30 June 2011). Finally, on behalf of the Directors and Shareholders, I would like to record our sincere appreciation of the excellent efforts of our small, but dedicated, team of employees and contractors under the

  • utstanding leadership of Graham Ascough, our Managing Director. Graham also excelled during the

year as the key driver of our Capital Raising and for taking the key role in the formation of Musgrave Minerals of which he is the Chairman of the Board of Directors. John B Roberts Chairman

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SLIDE 2

ASX:MTH www.mithrilresources.com.au

Please note the important disclaimer and competent person‟s statement at the end of this presentation

HIGHLIGHTS

Explorer targeting Copper, Nickel and Gold in Australia

Extensive 2011 drill program at Huckitta, NT

Strong pipeline of new targets to be drill to be tested in 2012

Strong Cash Position (~$8.3M)

Highly Experienced Technical and Management Team

2011 AGM November 22nd, 2011

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SLIDE 3

Mithril Resources Ltd – Summary

Capital Structure

Shares on Issue (ASX:MTH) 219.6M

Unlisted Options 24.1M

Cash (30 September 2011) $8.3M

Market Cap @ $0.06 $13.2M

Enterprise Value ~$3.9M Significant Shareholders

Minotaur Exploration Ltd 9.8%

Acorn Capital Limited 5.3%

Lion Selection Group 3.8%

Top Twenty ~40% Directors

John Roberts (Chairman, Non-executive Director)

Graham Ascough (Managing Director)

Derek Carter (Non-executive Director)

Richard Bonython (Non-Executive Director)

Donald Stephens (Non-Executive Director/Company Secretary) Huckitta East Pilbara Sandstone

West Pilbara Yambah Junction East Duketon Alice Springs

Investments

Musgrave Minerals (ASX:MGV) 9.28M shares

MGV Options 2.5M

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SLIDE 4

Huckitta Project

Main Prospects and Mineral Occurrences

Assay values are from surface rockchips

25 km Mithril 100% Treasure JV (MTH earning 80%) Harts Range JV (MTH 60%, OKU 40%) Sammy JV (MTH earning 80%) Plenty Highway ALICE SPRINGS

Blackadder 3 .8%Ni, 9.6%Cu Austin Iron Oxide Copper Gold Prospect Baldrick 2.3%Ni, 2.4%Cu Tibbs 13.9g/t Au, 0.7%W Basil Copper Trend (>10km) Up to 6.3% Cu at surface Yoda 15.4g/tAu, 0.4%Cu

Significant Mineral Prospect

Polly Copper Trend 2.5km) Up to 8.4% Cu at surface Manuel Copper 8.6%Cu, 0.18gpt Au Bigglesworth Iron Oxide Copper Gold Prospect

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SLIDE 5

Emerging Mineral Province with Strong Fundamentals

 First Discovery of Nickel Sulphides in late 2008

  • Surface rockchips From Blackadder confirm NiS targeting

 First Significant Discovery in late 2009

  • Basil Copper-Cobalt Prospect (10km of mineralisation at surface)

 Demonstrated potential for significant Copper, Nickel & Gold

Deposits

  • 16 new mineral occurrences identified at surface since 2009

 Scope for a giant

  • 2011 seismic data confirms Basil is hosted in a crustal scale fault zone

that extends to the mantle => a great setting for large deposits

 Straight forward exploration approach

  • Targets are near surface => ‘boots on ground’ mapping and sampling
  • Targets are good electrical conductors => detectable using geophysics

Regional migrated seismic section for Georgina–Arunta seismic line 09GA-GA1 showing interpretation and key provinces (from Korsch et al in NTGS 2011, AGES 2011 Record of Abstracts)

Basil Fault (BaF) Mantle

Basil Prospect

A B B A

Austin Prospect

Seismic Traverse

~100km

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SLIDE 6

1000m

Rotten Hill Mineralised Zone Peaks Mineralised Zone Wedge Mineralised Zone Flats / Gravity Mineralised Zone

Cu/Co Mineralised Zone All Drillholes LB078DD 12.4m@1.14%Cu and 8m@1.2%Cu LB067DD 11.5m@1.01%Cu LB077DD 7.0m@0.92%Cu

LB080DD LB079DD LB070DD LB069DD LB072DD LB063DD LB052DD LB061DD LB051DD LB060DD LB055DD LB062DD LB059DD LB056DD LB054DD LB053DD LB046DD LB045DD LB076DD LB049DD LB050DD LB057DD LB058DD LB047DD LB048DD

LB035DD 85.7m@0.51%Cu, 0.06%Co LB012RC 41m@0.6%Cu, 0.04%Co LB025DD 56m@0.52%Cu, 0.06%Co LB027DD 29m@0.66%Cu, 0.07%Co Basil Mineralised Trend

Huckitta: Basil Copper Prospect (South)

Broad intervals of semi-massive sulphides

LB085DD LB084DD LB082DD

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SLIDE 7

Peaks Cu Long Section – Plane of Mineralisation (true width intercepts)

LB060DD 16m@0.29%Cu, 0.02%Co LB051DD 12m@0.55%Cu, 0.02%Co LB061DD 13m@0.45%Cu, 0.02%Co 29500E 29600E 29700E 29400E 29300E 29200E 100m 100m

  • 75mRL

200m

  • 150mRL

300m

  • 225mRL

LB059DD 4m@0.20%Cu, 0.04%Co LB052DD NSA LB063DD LB055DD NSA 29100E 3m@0.42%Cu, 0.01%Co LB070DD 3.2m@0.4%Cu, 0.04%Co LB080DD 8m@0.15%Cu, 0.02%Co LB062DD 3m@0.76%Cu, 0.05%Co LB079DD NSA LB067DD 15.5m@0.84%Cu, 0.06%Co Incl 11.45m@1.01%Cu, 0.08%Co LB078DD 22.9m@0.76%Cu, 0.04%Co Incl 12.4m@1.14%Cu, 0.06% Co and 8m@1.2%Cu, 0.04%Co LB077DD 14.1m@0.62%Cu, 0.05%Co Incl 7.0m@0.92%Cu, 0.06%Co LB083DD 6.3m@0.22%Cu, 0.02%Co

Surface

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SLIDE 8

Basil Copper Prospect - Next Steps

 Resource modelling and target generation

  • n the 10km long Basil copper trend
  • Downhole EM surveys completed in

deepest drillhole on each section evaluating „down-dip‟ potential

  • Compilation of a 3D geological model

incorporating all drillholes and geophysical data collected to date

  • Initial resource calculation planned
  • Delineation of further drill targets for

testing in the 2012 program

LB078DD – 12.4m@1.14%Cu, 0.06%Co and 8m@1.2%Cu, 0.04%Co. Massive and semi-massive sulphides

Peaks Zone

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SLIDE 9

IOCG Target Area (30km south of Basil)

Residual Gravity

Austin Prospect Copper mineralisation at surface in hematite veining Powers Prospect Intensely altered granite with hematite- fluorite veining Bigglesworth Prospect Copper mineralisation at surface in hematite veining

New copper prospects identified on Huckitta South

Widespread copper mineralisation and hematite- alteration at is consistent with IOCG system

Gravity survey has identified large dense bodies adjacent to copper mineralisation, consistent with IOCG signature.

Multiple drill targets identified for testing in 2012

EL28335 100%MTH EL25643 80%MTH

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SLIDE 10

IOCG Target Area (30km south of Basil)

Regional Magnetics

Austin Prospect Copper mineralisation at surface in hematite veining Powers Prospect Intensely altered granite with hematite- fluorite veining Bigglesworth Prospect Copper mineralisation at surface in hematite veining

New copper prospects identified on Huckitta South

Widespread copper mineralisation and hematite- alteration at is consistent with IOCG system

Gravity survey has identified large dense bodies adjacent to copper mineralisation, consistent with IOCG signature.

Multiple drill targets identified for testing in 2012

EL28335 100%MTH EL25643 80%MTH

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SLIDE 11

Copper mineralisation at the Bigglesworth Prospect (Looking SE)

Mineralised horizons continue under cover to southeast

Intense silica hematite alteration 3-5m thick in granite with common copper mineralisation (malachite and chalcopyrite)

Large gravity anomaly under thin cover – source unknown Mapped mineralisation 500m to SE

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SLIDE 12

Copper mineralisation at the Austin Prospect

Outcropping ridge of hematite veining in altered granites (looking east) Malachite (copper) mineralisation (green) in hematite vein. Altered granite Hematite-silica veins

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SLIDE 13

Austin Copper Prospect IP Geophysical Anomalies

1km

Area under thin cover Area under thin cover

Copper Mineralisation at surface Copper Mineralisation at surface

Intense alteration over 2km

Area under thin cover

A B B A IP Line 1 - Inversion Model

300m

DRILL TARGETS

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SLIDE 14

Regional Targets – Aircore & RC Drilling

Targets IVT017 and 020 Base metal targets – Ground EM conductor Target IVT061 Copper / gold target – Ground EM conductor anomalous Cu+Au at surface Tibbs Gold Prospect Drilling targeting down dip of 6.3g/tAu at surface

20km

Yoda Gold Prospect 21g/t Au, coincident IP anomalies Basil Copper Prospect Blackadder and Baldrick Nickel Prospects

RC drilling and aircore drilling testing geophysical targets under shallow cover and the Tibbs gold prospect

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SLIDE 15

Tibbs Gold Prospect

 New Gold (+/- tungsten & copper)

Prospect identified November 2010

 Surface grab samples up to 13.9g/t

gold (‘Au’), 0.7 % tungsten (‘W’) & 2.1% copper (‘Cu’)

 Mineralisation appears to be

controlled by sub-vertical structures

 Drill Tested November 2011

Oklo JV (MTH 60%)

2m

Marble Felsic Gniess Gossan 6.35g/t Au

Tibbs 13.9g/t Au, 0.7%W in surface rockchips 4.2g/tAu,

Mineralised Structures

4.0g/tAu, 5.1g/tAu, 13.9g/tAu, 1.4g/tAu, 6.4g/tAu, 1.0g/tAu,

Magnetic anomaly RC DRILL TARGET RC DRILL TARGETS beneath surface gold up to 6.4g/t

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SLIDE 16

Yoda Gold - Copper Prospect Drilling planned 2012

15.4g/tAu, 0.4%Cu

EL28336 (MTH - 100%)

4.8g/tAu 0.14g/tAu, 2.5%Cu

1km

21.5g/tAu Coincident magnetic and IP anomalies under thin cover

Page 16

A A B B

200m

IP Line - Inversion Model DRILL TARGETS

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SLIDE 17

Mithril and MMG enter Agreement to accelerate nickel exploration at Huckitta

 Nickel only Option and JV Agreement  MMG to earn 51% by completing $4M in

Exploration

 MMG may earn up to 80% by completing a Pre-

Feasibility study that includes a „JORC‟ Indicated Mineral Resource

 Mithril retains the rights to all other metals  Agreement does not include the existing JV‟s

where Mithril can continue to explore for nickel

 MMG operates the Century, Golden Grove and

Rosebery mining operations in Australia and the Sepon gold and copper operation in Laos in South East Asia

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SLIDE 18

Alice Springs

Base Metal Mineral Occurrence/Prospect

10km

1.6%Cu in rockchips 6m@6.5%Zn from 131m

Yambah Project, NT

 Wholly owned tenements

well located along Stuart Hwy and Ghan Railway

 Prospective for base metal

mineralisation (VMS)

 Multiple mineral

  • ccurrences, up to

6m@6.5%Zn in shallow drilling

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SLIDE 19

East Pilbara Tenement Locations

50km CATTLE WELL CAMEL WELL Port Hedland Marble Bar CUTTING CREEK Goldsworthy (BHP) Shay Gap (Jupiter) Pardoo (Atlas) Poondana (Polaris) Turner River (Atlas) Wodgina (Atlas) Abydos (Atlas) Mt Webber (Giralia) Coongan (BC Iron)

Six wholly owned tenements totalling 701km2 Prospective for nickel, copper, iron

  • re & gold

High Priority VTEM conductors associated with nickel and copper mineral occurrences - consistent with the response from significant accumulations of nickel and copper sulphide mineralisation July 2011 - new copper bearing gossan identified with a strike length

  • f over 2km (TALGA EAST)

Heritage Surveys in progress

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SLIDE 20

East Pilbara - Cattle Well Targets Drilling in 2012

Mapped Ultramafic E45/3457 E45/3680

GORGE PROSPECT

  • Cu-Ni mineralisation at surface
  • Rockchips to 27%Cu, 0.4%Ni
  • chalcopyrite at surface

Coincident VTEM , magnetic anomalies and nickel sulphide prospective ultramafic rocks

  • ver 10km

TALGA EAST New gossan identified 2km long and coincident with discrete VTEM anomaly. Rockchips to 0.48%Cu, 0.31g/t Au and 22.7g/tAg

5km

CATTLE WELL

Port Hedland

CAMEL WELL CUTTING CREEK

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SLIDE 21

West Pilbara Nickel Project

10km

E47 / 2158 E47 / 2258

Munni Munni PGE Deposits Radio Hill Ni Deposit North Whundo Cu-Ni Prospect

4m@0.8%Cu, 0.3%Ni

Munni Munni South PGE-Cu-Ni Prospect

Two wholly owned tenements covering 172km2 Demonstrated magmatic nickel and PGE potential Proximal to Radio Hill mining

  • peration and the Munni-Munni

PGE deposit Well positioned with regard to road rail and port facilities

Karratha

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SLIDE 22

Musgrave Minerals IPO Listed April 29th, 2011

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SLIDE 23

The Project Pipeline

Planned activity on the main prospects

Project/Prospect Target The next 6 months

Huckitta – Basil (Cu-Co)

10 km long copper trend, broad intersections of copper Resource modelling and further drilling in 2012

Huckitta – IOCG Bigglesworth, Austin

Widespread IOCG alteration and copper mineralisation Soil geochem and surface sampling results pending. Drilling in 2012

Huckitta – Tibbs (Au)

Gold in surface samples up to 13.9g/t Drilling completed Nov 2011, assays pending

Huckitta – Yoda (Au)

Gold in surface samples to 21.5g/t Drill ready for 2012

Huckitta – Lizzie Ck (Cu-Co)

VTEM targets in same setting as Basil Mapping and geophysics to advance target to drill stage 2012

Huckitta – Gertrude (Ni-PGE)

Drill ready nickel target Part of the MMG JV

Yambah, NT (Cu-Pb-Zn)

Numerous base metal occurrences incl historic intercept of 6m @ 6.5% Zn Verification of mineral prospects in October followed by geophysics

East Pilbara (Ni-Cu)

Surface mineralisation with strong geophysical response Heritage surveys in prggress. Dilling in 2012

West Pilbara (Ni-Cu)

Nickel copper mineralisation in historical drilling Ground geophysics and drilling 2012

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SLIDE 24

Mithril Resources Limited - Summary

  • STRONG PROJECT PORTFOLIO

Huckitta, NT Resource modelling and target generation on the 10km long Basil copper trend Widespread IOCG alteration discovered with

  • utcropping copper mineralisation at two new

prospects Regional program continues to identify new drill targets (Yoda gold prospect) Nickel only joint venture with MMG to accelerate exploration efforts

East Pilbara, WA New mineralisation, drill ready targets

EXPERIENCED MANAGEMENT & EXPLORATION TEAM

STRONG CASH POSITION

SOLID SHAREHOLDER BASE

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SLIDE 25

Competent Person’s Statement

The information in this presentation that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr G Ascough, who is a full-time employee of the Company and a Member of the Australasian Institute of Mining and Metallurgy. Mr G Ascough has more than five years 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”. Mr G Ascough consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

Disclaimer

This presentation has been prepared by Mithril Resources Limited (Mithril). The information contained in this presentation is a professional opinion

  • nly and is given in good faith. Certain information in this document has been derived from third parties and though Mithril has no reason to believe

that it is not accurate, reliable or complete, it has not been independently audited or verified by Mithril. Any forward-looking statements included in this document involve subjective judgement and analysis and are subject to uncertainties, risks and contingencies, many of which are outside the control of, and may be unknown to, Mithril. In particular, they speak only as of the date of this document, they assume the success of Mithril‟s strategies, and they are subject to significant regulatory, business, competitive and economic uncertainties and risks. Actual future events may vary materially from the forward-looking statements and the assumptions on which the forward- looking statements are based. Recipients of this document (Recipients) are cautioned to not place undue reliance on such forward-looking statements. Mithril makes no representation or warranty as to the accuracy, reliability or completeness of information in this document and does not take responsibility for updating any information or correcting any error or omission which may become apparent after this document has been issued. To the extent permitted by law, Mithril and its officers, employees, related bodies corporate and agents (Agents) disclaim all liability, direct, indirect

  • r consequential (and whether or not arising out of the negligence, default or lack of care of Mithril and/or any of its Agents) for any loss or damage

suffered by a Recipient or other persons arising out of, or in connection with, any use or reliance on this presentation or information. All amounts in A$ unless stated otherwise.

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