NEW GOLD SYSTEMS IN WESTERN AUSTRALIA'S EASTERN GOLDFIELDS ANNUAL - - PowerPoint PPT Presentation

ASX Code: BRB www.breakerresources.com.au

NEW GOLD SYSTEMS IN WESTERN AUSTRALIA'S EASTERN GOLDFIELDS

Tom Sanders

ANNUAL GENERAL MEETING 20 NOV 2013

Cautionar y State me nt

2

Cautionar y State me nt

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 Attila

Known Gold De posits Duke ton T r

• pic a na

10Moz 7.9Moz 1Moz



BRB do mina te s the la nd po sitio n in une xplo re d a re a s a fte r “e a rly mo ve r” pe g g ing ke y o f ke y struc ture s in No ve mb e r 2010

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

Intr

• duc tion



E ar ly suc c e ss sinc e ASX listing (Apr il 2012)

…two re g io na l sc a le g o ld-in-so il a no ma lie s a t De xte r Pro je c t (drilling immine nt) …la rg e ne w so il a no ma lie s o n a ll o the r pro je c ts



T he E a ste rn Go ldfie lds Supe rte rra ne a c c o unts fo r 75% o f Austra lia ’ s g o ld in 3% o f the la nd a re a …the e a ste rn ha lf is la rg e ly une xplo re d a nd is no w a n a c tive disc o ve ry a re a



Busine ss str ate gy

T a rg e ting T ie r 1 g o ld de po sits (NPV +$1B) in a n une xplo re d pa rt o f a wo rld c la ss g o ld pro vinc e using ne w to o ls to se e thro ug h sa nd c o ve r

4

… fir st oppor tunity to find the 10% of gold de posits that typic ally c ontain two- thir ds of the pr

• vinc e - sc ale gold

“E ar ly Move r ” Advantage

Pe r spe c tive

Cor por ate Ove r vie w

5

Intr

• duc tion

Ca pita l Str uc tur e (L iste d Apr il 2012, $0.20 pa r )

 F

ully pa id sha re s: 55.1 millio n

 Ma rke t c a p ($0.23): ~$12.7 millio n  L

iste d o ptio ns: 21.2 millio n ($0.25 De c 2014)

 Ca sh: $0.70 millio n (30 Se pte mb e r 2013)

Rig hts issue pe nd ing - te rms to b e fina lise d ; R & D c la im in pre pa ra tio n

 Unliste d o ptio ns: 8.4 millio n  T

• p 20 inve sto rs: 88.0%

Shar e r e giste r dominate d by lar ge funds

1,000 2,000 3,000 4,000 5,000 6,000 7,000 $0.00 $0.05 $0.10 $0.15 $0.20 $0.25 $0.30 $0.35 $0.40 $0.45

BRB Shar e Pr ic e vs ASX All Or ds Gold Inde x

BRB XGD

BRB XGD

Ove r vie w/ T he Ye ar in Br ie f

6 NE E aste r n Goldfie lds Supe r te r r ane

T r

• pic a na

Attila

Duke ton 10Moz 7.9Moz 1Moz



Se ve n la rg e -a re a g o ld pro je c ts lo c a te d 300km NE

• f K

a lg o o rlie (4,055km 2)

• a ll o n ke y struc ture s o n ma jo r c rusta l fa ults
• 100% o wne d

Br e ake r ’s Pr

• je c ts



Main foc us on De xte r Pr

• je c t
• two re g io na l-sc a le g o ld-in-so il a no ma lie s

ide ntifie d

• g o ld tra c ke d to like ly so urc e a t T

hre e Be a rs

• RC drilling pla nne d to re sta rt la te -

No ve mb e r 2013



Re sults va lida te the ta rg e ting stra te g y, the a b ility to se e thro ug h sa nd c o ve r a nd the a b ility to tra c e the g o ld to b e dro c k using inno va tive te c hniq ue s



L ar ge ne w anomalie s… all othe r pr

• je c ts
• no histo ric a l drilling
• a g ro wth pipe line in a n une xplo re d pa rt
• f a ma jo r g o ld pro vinc e
• sc o pe fo r jo int ve nture whe re b e ne fic ia l

7

Br e ake r ’s Pr

• je c ts

De xte r Gold Re gional Pe r spe c tive



T wo c ohe r e nt g old-in-soil a noma lie s of r e g iona l sig nific a nc e

• T

hr e e Be a r s/ T a llows (Aug ust 2012)

Go ld tra c ke d to like ly so urc e b a se d o n 22,000m a irc o re d rilling a nd 8,500m RC d rilling

• Sa ndshoe s (Se pte mbe r

2013)



RC dr illing pla nne d a t both a r e a s in la te -Nove mbe r 2013

Sa ndshoe s Prospe c t (Se pt 2013) T hre e Be a rs/ T a llows Prospe c t (Aug 2012)

Attila

1Moz



T ra nspo rte d c o ve r 40-70m thic k

• g o ld no t suppo se d to re g iste r whe n

this thic k, sug g e sting a b e d ro c k so urc e o f sig nific a nc e

T r

• pic a na

7.9Moz



Size a nd ma g nitud e o f a no ma lie s no t pre vio usly d o c ume nte d in WA in simila r a re a o f tra nspo rte d c o ve r

De xte r Proje c t Attila We st Proje c t Mt Gill Proje c t ppb Au

8



250km NE

• f K

a lg o o rlie 80km NW o f T ro pic a na



70 km lo ng , 1,360km2 a re a

Br e ake r ’s Pr

• je c ts

De xte r Pr

• je c t inte r

pr e te d ge ology (GA)

De xte r Gold Pr

• je c t Se tting

Sa ndshoe s Prospe c t (Se pt 2013) T hre e Be a rs/ T a llows Prospe c t (Aug 2012)



E a c h a no ma ly o n “c la ssic ” struc tura l se tups o n ma jo r c rusta l fa ults with ma ntle - link (sye nite ) so ug ht a fte r whe n e xplo ring fo r la rg e g o ld d e po sits

9

Br e ake r ’s Pr

• je c ts

De xte r Gold Pr

• je c t

Soils - up to 298ppb g old (0.3g / t) 17,415ppb silve r (17.4g / t) Se e ing thr

• ug h the de se r

t sa nd (a histor ic a l limita tion)

10 Gold- in- soil c ontour s ove r ae r

• magne tic image

10km

De xte r

De xte r: T hre e Be a rs/ T a llows Anoma ly (Aug 2012)

Br e ake r ’s Pr

• je c ts



T hr e e Be a r s/ T a llows a noma ly to 298ppb g old (0.3g / t); 17,415ppb silve r (17.4g / t)



16km lo ng



Arc he a n g o ld so urc e ind ic a te d b y:

• te llurium, a ntimo ny, a rse nic
• struc tura l a sso c ia tio n
• ma g nitud e o f a no ma ly
• b e d ro c k g o ld fo und in la st RC

ho le a t T hre e Be a rs Pro spe c t



T e ns o f tho usa nd s o f o unc e s o f g o ld in d ispe rsio n tra il whic h a ppe a rs to b e re c e nt a nd still a c tive



Using a low r isk str a te g y of following the g old to the be dr

• c k

sour c e

T a llows Prospe c t T hre e Be a rs Prospe c t

11

De xte r : Gold- in- Soil on T

• pogr

aphy

3D Pe r spe c tive gold- in- soils dr ape d ove r topogr aphy (x20 ve r tic al e xagge r ation)

Sa ndshoe s Prospe c t (Se pt 2013) T hre e Be a rs/ T a llows Prospe c t (Aug 2012)

Br e ake r ’s Pr

• je c ts



Go ld mo ve s do wnslo pe o nc e it re a c he s the surfa c e …we the re fo re fo llo w it upslo pe to find the like ly so urc e ; this a pplie s to the re do x g o ld e nric hme nt a s we ll



De spite this, a str uc tur al assoc iation is still appar e nt

BDRC057 (last RC hole )

12

De xte r : T r a c king Gold thr

• ug h the T

r a nspor te d Cove r to the Be dr

• c k Sour

c e

Br e ake r ’s Pr

• je c ts

Sc he matic c r

• ss- se c tion mode l (modifie d fr
• m

CRC L E ME OPE N F IL E RE PORT 246, De c 2008)



T he g o ld-in-so il is so urc e d fro m the re do x g o ld (wa te r ta b le -re la te d e nric hme nt) b y pla nts ...g o ld do e s g ro w o n tre e s …re la tive ly re c e nt a nd sub je c t to g ra vity

T r a nspor te d Be dr

• c k

Gold- in- soil image

T hre e Be a rs Prospe c t T a llows Prospe c t



Air c or e dr illing use d to loc ate smalle r ar e as of r e dox gold e manating upwar ds fr

• m be dr
• c k

sour c e … a smalle r footpr int loc ate d c lose to the be dr

• c k sour

c e

13

De xte r : Disc r e te Ar e a s of Re dox Gold Ide ntifie d by Air c or e a nd RC Dr illing

Br e ake r ’s Pr

• je c ts

E xample : Sunr ise Dam (AngloGold 2000) Cle o Gold De posit 40Mt @ 3.4g/ t Au

Sur fac e T r anspor te d

Gold- in- soil

• utline

T a llows Prospe c t She a r T hre e Be a rs Prospe c t

L e ge nd (ppb x m)

Subsur fac e (r e dox) gold in dr ill hole de fine d by 22,000m of air c or e and 8,500m of RC dr illing



One or two be dr

• c k sour

c e s?



Multi- km zone s of r e dox gold loc ate d at T hr e e Be ar s & T allows (to 3m @ 7.5g/ t Au)

Sc he matic c r

• ss- se c tion mode l (modifie d fr
• m

CRC L E ME OPE N F IL E RE PORT 246, De c 2008)

T r a nspor te d Be dr

• c k

14 Be dr

• c k sulphur

in R C hole s on gold-in-soil image

T hre e Be a rs Prospe c t T a llows Prospe c t

Br e ake r ’s Pr

• je c ts



RC dr illing at T hr e e Be ar s tr ac e d the r e dox gold upslope and found pyr ite , alte r ation, gold and gold pathfinde r e le me nts inc r e asing to the south along the De xte r She ar

Be dr

• c k sulphur

(pyr ite ) in RC hole s BDRC057

De xte r : Gold T r a c ke d to L ike ly Be dr

• c k

Sour c e with RC Dr illing

+1g / t Silve r

16m of anomalous gold in last RC dr ill hole … but not e nough to e xplain the soil anomaly!

15



Gold pa thfinde r e le me nts in be dr

• c k

… a qua ntita tive ve c tor pointing south

Pe r spe c tive : Re dox gold in r e lation to De xte r She ar Zone

Br e ake r ’s Pr

• je c ts

Pe r spe c tive vie w looking to NE showing inc r e ase in Sb (and T e , Se , As)

De xte r: T hre e Be a rs RC Ge oc he mistry



Ac tive fluid flo w/ mixing o n De xte r She a r Zo ne c o nfirme d

T hr e e Be a r s South… T ar ge ting Disc ove r y with Pla nne d RC Dr illing

16 Planne d RC ove r gold- in- soil image Planne d RC ove r ae r

• magne tic image



17 RC hole s pla nne d (~2,500m)… the n infill a s ne e de d

L a st RC hole 16m of a nom Au L a st RC hole 16m of a nom Au

Br e ake r ’s Pr

• je c ts

De xte r: F

• llowing the Gold a t T

a llows

17 Pe r spe c tive vie w of T allows Pr

• spe c t dr

illing



Re d o x g o ld c luste rs a ro und the Ya ma rna She a r



Up to 3m @ 7.5g / t Au in multi-km zo ne s o f re d o x g o ld d e fine d b y a irc o re d rilling



Only 13 initia l RC ho le s o ve r the 4,400m re d o x a no ma ly c o re , inc lud ing 7 o n o ne se c tio n (o nly 1 RC ho le in Ya ma rna She a r Zo ne )



Se le c tive a ir c or e dr illing pla nne d la te - Nove mbe r 2013 to follow r e dox g old to be dr

• c k sour

c e

Inse t Pla n Vie w

Br e ake r ’s Pr

• je c ts

E xample : Sunr ise Dam (AngloGold 2000) Cle o Gold De posit 40Mt @ 3.4g/ t Au Sour c e ? Sour c e ?

18

Br e ake r ’s Pr

• je c ts

De xte r : Sandshoe s Pr

• spe c t



12km- long , c ohe re nt, up to 35ppb g old



No o utc ro p in this a re a ; e stima te d 30m- 60m o f Pe rmia n c o ve r (o utc ro p 10km to no rth)



Ano ma ly o n inte rse c tio n o f Se fto n L ine a me nt, De xte r She a r (We st) a nd g ra nite -g re e nsto ne c o nta c t

Sa ndshoe s Prospe c t T hre e Be a rs Prospe c t T a llows Prospe c t



Se c ond a noma ly of re g iona l sig nific a nc e ide ntifie d Se pte mbe r 2013 – Sa ndshoe s Prospe c t

Gold- in- soil image

De xte r : Sandshoe s Planne d RC

19



~15 RC ho le s pla nne d (~1,800m) la te -No ve mb e r 2013

Planne d RC ove r gold- in- soil image Planne d RC ove r ae r

• magne tic s

Planne d RC ove r ge ology (GA)



Go ld e ma na ting fro m stro ng struc tura l ta rg e t(s) a nd mo ving d o wnslo pe

Vie wing a r e a 25km x 15km

Br e ake r ’s Pr

• je c ts

20

Br e ake r ’s Pr

• je c ts

1Moz Attila We st inte r pr e te d g e olog y (GA) Ima g e d g old- in- soil… 20km a noma ly on g r a nite c onta c t

Attila We st Gold Pr

• je c t (Nth)

21

Br e ake r ’s Pr

• je c ts

Gold- in- soil ove r L a ndsa t

Attila We st Gold Pr

• je c t (Nth)



20km-lo ng g o ld -in-so il ta rg e t o n g re e nsto ne / g ra nite c o nta c t in fo o twa ll o f Ya ma rna She a r Zo ne



T hin c o ve r, 2-3m sa nd d ire c tly o n Arc he a n



Go ld up to 73ppb , silve r to 2,068ppb (2g / t) a sso c ia te d with Mo -As-Bi-W



Airc o re d rilling pla nne d o n prio rity ta rg e ts (2,500m; ~$75k) …c o st-e ffe c tive , la rg e upsid e



No pre vio us d rilling <10% histo ric a l g e o c he m c o ve ra g e

1Moz

22

Mt Gill Gold Pr

• je c t

Br e ake r ’s Pr

• je c ts



+20km-lo ng g o ld -in-so il ta rg e ts id e ntifie d a d ja c e nt to Ya ma rna She a r



Airc o re d rilling pla nne d o ve r prio rity ta rg e ts (2,000m; ~$60k) …c o st-e ffe c tive , la rg e upsid e

Ma fic c omple x

Gold- in- soil ima g e



Go ld up to 63ppb ; silve r to 5,729ppb (5g / t) a sso c ia te d with Mo -As-Bi-W



No pre vio us d rilling <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 (2-3m) d ire c tly o n Arc he a n

23

Conc lusion  L imite d a irc o re drilling o f hig h-prio rity ta rg e ts a t Attila We st a nd Mt Gill 

Ma in foc us on unusua lly la rg e a noma lie s a t De xte r Proje c t

…RC drilling pla nne d a t T hre e Be a rs in la te -No ve mb e r 2013 (ta rg e ting disc o ve ry) …I nitia l wide -spa c e d RC drill pro g ra m a t Sa ndsho e s Pro spe c t (No ve mb e r 2013) …Airc o re drilling a t T a llo ws Pro spe c t (No ve mb e r 2013) …F

• llo wing the g o ld in sma ll ste ps with mo de rn to o ls (g e o c he m/ re fle c ta nc e )



Ste a dy ne ws flo w e xpe c te d fro m o ng o ing drilling



Va st upside with ma na g e d risk in a n une xplore d pa rt of a world c la ss g old provinc e in Austra lia

T he Ye ar Ahe ad



Se c o nd tie r pro je c ts pro vide a g ro wth pipe line with sc o pe to JV whe re b e ne fic ia l (la rg e unte ste d g o ld a no ma lie s in the E a ste rn Go ldfie lds a re unc o mmo n)

24

T HANK YOU