For personal use only HIGH GRADE BASE METALS IN THE COBAR BASIN Diggers & Dealers Investor Presentation August 2019
CORPORATE SNAPSHOT For personal use only Capital Structure - ASX: PEX 3 Year Share Price Performance Shares on issue: 242 million 0.75 Options: 10 million 0.60 Market cap (@ $0.25/sh): $60 million 0.45 Cash (end June Q): ~$7 million Other: 31% of ASX: STN 0.30 0.15 Substantial Shareholders St Barbara Ltd 16% Board & Management Hampton Hill Mining and assoc. 15% Simon Hadfield Non-Executive Chairman Directors 12% Graham Hardie Non-Executive Director Ariki Investments Pty Ltd 8% Rob Tyson Managing Director Top 20 60% Jim Simpson Exec Director Mining (Sep 1)
BUILDING A HIGH-GRADE BASE METALS COMPANY For personal use only Our Company Three major base metals discoveries in the prolific Cobar Basin • Global Resources (equity share) of >7Mt high grade mineralisation • Experienced team preparing for commercialisation • Our Exploration Approach Money into the ground • Continual innovation and R&D • Partnerships are part of our success • Our Ground Cobar track record: 150 years of high-grade, long-life • Cobar prospectivity previously incorrectly viewed as mature • Peel has established pre-eminent Cobar greenfields position •
COBAR – 150 YEARS OF HIGH-GRADE METALS Peel Dominates the Exploration Landscape 50 km For personal use only Endeavor CSA Ag = Cobar >200 Peak Moz Pb = Zn = >2.7Mt >4.5Mt Three discoveries in seven years Au = >6.5Moz Wirlong x Hera Cu = >2Mt x Mallee Bull Wagga Tank x Cobar Basin Metal Endowment (Recovered or Current Resource Inventory) Peel 100% Modified from NSW Geological Survey – A Review of Metalliferous Basins in NSW - 2015 JOGMEC JV CBH JV TLM JV
THE PRIZE: HIGH-GRADE – LONG-LIFE – WORLD-CLASS For personal use only
12 YEARS OF MONEY INTO THE GROUND For personal use only Exploration vs Admin Exploration Admin 12000 10000 8000 $000s 6000 4000 2000 0 30.6.2007 30.6.2008 30.6.2009 30.6.2010 30.6.2011 30.6.2012 30.6.2013 30.6.2014 30.6.2015 30.6.2016 30.6.2017 30.6.2018 30.6.2019 (est) Metres Drilled RC DD Three discoveries 60000 in seven years 40000 20000 0 Mallee Southern Wirlong Bull Nights
2019-2020 FOCUS Unlocking The Cobar Basin’s Next Mine Development Opportunities For personal use only Wagga Tank / Southern Nights (100%-owned) High-Grade Zinc-Lead-Silver mineral system • Maiden JORC Resource July 2019 (3.5% ZnEq cutoff) • 3.8Mt @ 5.5% Zn, 2.1% Pb, 75g/t Ag, 0.27% Cu, 0.31g/t Au (9.2% ZnEq 1 ) o Follow up drilling and internal scoping commencing imminently • Mallee Bull (50%-owned) One of Australia’s highest-grade undeveloped copper resources • JORC Resource update July 2017 (1.0% CuEq cutoff) • 6.8Mt @ 1.8% Cu, 31 g/t Ag, 0.4 g/t Au, 0.6% Pb, 0.6% Zn (2.6% CuEq 1 ) o Peel and CBH seeking regulatory approval for exploration decline to ~300m • below surface planned to access high-grade copper lens at depth Regional Exploration to continue – Southern Nights, Wirlong, Siegals, May Day Tails • 1: See Appendix for JORC Resource Table and ZnEq & CuEq calculation. ASX Release 12 July 2019
SOUTHERN NIGHTS-WAGGA TANK A Major Zinc-Rich Mineral System For personal use only Under-Explored Tenure High-grade, economic mineralisation discovered at Wagga Tank in mid- • 1970s Land banked with no drilling from 1989 • +80,000m drilled by Peel since acquisition in 2016 • Camp Scale Mineral System Wagga Tank to Southern Nights covers >2km strike • Significant maiden Resource delineated • Camp-scale (0.5-10km) mineral system characteristics • VMS-style mineralisation with similarities to worldclass Rosebery deposit • VMS deposits often cluster/stack • Excellent potential to grow resource •
SOUTHERN NIGHTS-WAGGA TANK JORC RESOURCE Bringing Critical Mass to Peel’s Cobar Basin Endeavours For personal use only Solid Foundations for Development Planning Maiden JORC Resource provides robust platform to • commence internal scoping studies Potential development scenarios include both stand- • alone and dig-and-truck processing options Discovery cost of only US$33 per ZnEq 1 tonne • Exploration now underway to expand resource further • Drilling to enhance quality and quantity of resource to • commence imminently Southern Nights-Wagga Tank mineral system remains • open along strike and down dip ^ASX Release 12 July 2019
SOUTHERN NIGHTS - HIGH GRADE CORE Central Zone Underwrites Production Potential For personal use only Central Zone presents an early-stage mining target: • 1.1 Mt @ 8.8% Zn, 3.5% Pb, 107g/t Ag, 0.44g/t Au, 0.28% Cu o (14.3% ZnEq 1 ) 18.2m @ 40.3% Zn, 15.7% Pb, 0.97% Cu, 10m @ 16.28% Zn, 11.17% Pb, 387 Drilling intercepts include: 356 g/t Ag, 2.77 g/t Au from 182m • g/t Ag, 0.63 g/t Au from 148m 10m @ 16.3% Zn, 11.2% Pb, 387 g/t Ag, 0.63 g/t Au from 148m o 11m @ 28.35% Zn, 14.84% Pb, 0.46% 18.2m @ 40.3% Zn, 15.7% Pb, 0.97% Cu, 356 g/t Ag, 2.77 g/t Au Cu, 380 g/t Ag, 1.56 g/t Au from 218m o 26m @ 25.45% Zn, 9.92% Pb, 215 g/t Ag, 1.19 g/t Au from 190m from 182m 142m @ 7.4% Zn, 3.7% Pb, 101 g/t Ag, 0.54 g/t Au from 108m 38m @ 8% Zn, 2.4% Pb, 0.5% Cu, 26m @ 25.5% Zn, 9.9% Pb, 215 g/t Ag, 1.19 g/t Au from 190m 54 g/t Ag, 0.63 g/t Au from 195m o 28m @ 19% Zn, 10.8% Pb, 0.2% Cu, 166 g/t Ag, 1.21 g/t Au from o 224m 22.1m @ 6.62% Zn, 2.19% Pb, 0.87% High-grade CZ remains open at depth , a key geological attribute of • Cu, 60 g/t Ag, 0.42 g/t Au from 459m Cobar deposits 40m @ 10.2% Zn, 2.83 % Pb, 0.61% Cu, 49 g/t Ag, 1.04 g/t Au from 365m The high-grade component has the potential to facilitate rapid payback • 20.65m @ 9.92% Zn, 4.83% Pb, 0.51 % Cu, 104 g/t Ag, 0.53 g/t Au from 355.35m during any mining scenario
SOUTHERN NIGHTS CENTRAL ZONE Very High-Grade Zn-Pb-Ag-Au-Cu Core For personal use only
WAGGA TANK-SOUTHERN NIGHTS Extensive High-Grade System – Open Down-Dip and Along Strike For personal use only The Wagga Tank-Southern Nights JORC Mineral Resource long section showing >4% Zn domains.
AUSTRALIAN VMS AND COBAR DEPOSITS Southern Nights-Wagga Tank Resource Geologically & Economically Significant For personal use only Gossan Hill Discovery vs Time Wagga Tank – Southern Nights maiden JORC Resource forms • the basis for potential long-life mine Mineralisation extent delineated to date analogous to other • major base metal mines in Australia Exploration upside – mine life of Cobar operations and many • VMS systems significantly exceeds initial LoM expectations due to discovery of additional mineralisation VMS Deposit Examples: Jaguar Mine (Cu-Zn-Ag) Pre-Mining Inventory* (2005): • ➢ 1.6Mt @ 3.4% Cu, 12.9% Zn, 132g/t Ag Bentley Mine (Cu-Zn-Ag) Pre-Mining Inventory* (2009): • ➢ 1.9Mt @ 2.2% Cu, 14.3% Zn, 198g/t Ag Hera Mine (Au-Zn-Pb-Ag) Pre-Mining Inventory^ (2011): • ➢ 2.44Mt @ 4.1g/t Au, 3.8% Zn, 2.8% Pb, 17g/t Ag * ”Discovery of the Teutonic Bore Jaguar and Bentley VMS Deposits” Presentation, Independence Group Limited 2015 Acknowledgment: S.W. Beresford ^ “Hera Definitive Feasibility Study”. 19/09/2011. Aurelia Metals Limited
EXCELLENT REGIONAL POTENTIAL A Camp-Scale Mineral System For personal use only Strong Geophysical Indications for a Large System The Bird Strong 3km x 4km circular magnetic and gravity anomaly • Large buried magnetic feature possibly represents “heat • source/engine” driving mineral system Strong historic and recent intercepts at Fenceline including: Wagga • Tank o 6m @ 5.4% Zn, 3.9% Pb, 44 g/t Ag, 0.83 g/t Au from 84m Fenceline o 14m @ 12.4% Pb, 1.3% Zn, 64 g/t Ag, 2 g/t Au from 118m o 10m @ 2.3 g/t Au from 80m Southern o 13m @ 21.5% Pb, 120 g/t Ag, 4.36 g/t Au from 119m Nights o 3m @ 20.9% Pb, 66 g/t Ag, 2.08 g/t Au from 92m Further drilling planned at regional targets. • Regional exploration success will supplement Southern • Anomaly G Nights mineralisation – potential for ‘hub and spoke’ central processing facility strategy
SOUTHERN NIGHTS-WAGGA TANK Forward Program 2019/2020 For personal use only Key Milestones: Resource definition drilling Completed April ‘19 • Maiden Mineral Resource Estimate Completed July ‘19 • Internal Scoping study Underway • Additional Drilling for Resource Upgrade Underway • Substantial metallurgical testwork Underway • Regional Exploration Underway • Other Activities: Pre-development baseline studies Underway • Preliminary Geotechnical studies Underway • Preliminary underground mine design Underway • Regulatory engagement Underway •
MALLEE BULL One Of The Highest-Grade Undeveloped Copper Resources In Australia For personal use only Favourably Located Situated on pastoral lease owned by Peel • 100km South of Cobar; 50km to Wagga Tank-Southern Nights • Trucking distance to Endeavor Mine • JV Details 50:50 JV with CBH Resources (CBH spent $8.33m to earn 50%) • CBH owns the Endeavor Mine and processing facility located 150km • away (substantial surplus milling capacity). Low Capex, Staged Development Proposal Development study completed on a ‘dig and truck’ scenario to • Endeavour Peel and CBH seeking to advance mine development via an exploration • decline Lower capital cost and potential reduced permitting pathway •
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