PENINSULA MINES CORPORATE PRESENTATION Drilling planned to test - - PDF document

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PENINSULA MINES CORPORATE PRESENTATION Drilling planned to test - - PDF document

ASX:PSM 07 August 2017 PENINSULA MINES CORPORATE PRESENTATION Drilling planned to test high-chargeability sulphide targets at Ubeong Peninsula Mines Limited (Peninsula or the Company) is pleased to release its corporate presentation


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ASX:PSM 07 August 2017

PENINSULA MINES CORPORATE PRESENTATION

Drilling planned to test high-chargeability sulphide targets at Ubeong

Peninsula Mines Limited (“Peninsula” or the “Company”) is pleased to release its corporate presentation to coincide with the Diggers and Dealers Conference in Kalgoorlie, Western Australia. The presentation includes planned drilling to test the Copperhead, very-high IP Chargeability porphyry/sulphide target at the Ubeong Zinc-Silver and Copper-Gold Project in South KoreaD1. For further information please contact: Jon Dugdale, FAusIMM, MAICD Managing Director Phone: +61 8 6143 1840 Email: jdugdale@peninsulamines.com.au The material and/or releases referenced in this release are listed below: D1 IP Survey Identifies Very Strong Sulphide-Porphyry Targets at Ubeong, 12 July 2017 About Peninsula Mines Peninsula Mines Ltd is an Australian listed, exploration/development company focused on developing the outstanding opportunities for mineral discovery within South Korea. Peninsula’s strategy is to focus on mineral commodities that have a positive price outlook and offer potential for off-take and/or strategic partnerships in-country. The Company has established, and is growing, a portfolio of highly prospective graphite, lithium, gold- silver and zinc-silver-polymetallic projects in South Korea, that all offer significant exploration potential. Full versions of all the company's releases are available for download from the Company's website www.peninsulamines.com.au

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PENINSULA MIN INES LTD TD (A (ASX:PSM) FOCUSED ON HIG IGH-VALUE DIS ISCOVERY & DEVELOPMENT IN IN SO SOUTH KOREA

August 2017

Historical Mines Copper-Gold Zinc-Lead-Silver Flake Graphite

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The information in this presentation that relates to Exploration Targets is based on information compiled by Mr Daniel Noonan, a Member of The Australian Institute of Mining and Metallurgy. Mr Noonan is engaged as a full time consultant to the Company providing exploration managerial services for the Company’s Korean operations. Mr Noonan has sufficient 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 2012 Edition of the ‘Australasian Code for Reporting of Mineral Resources and Ore Reserves’. Mr Noonan consents to the inclusion in this presentation of information compiled and interpreted by him in the form and context in which it now appears. The information in this release that relates to metallurgical test work is based on information compiled and / or reviewed by Mr Peter Adamini who is a Member of The Australasian Institute of Mining and Metallurgy. Mr Adamini is a full-time employee of IMO Project Services. Mr Adamini consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. The information in this release that relates to Geophysical Results and Interpretations is based on information compiled by Mr William Peters, a Consulting Geophysicist (Crosmin Pty Ltd) at Southern Geoscience Consultants. Mr Peters is a Fellow of the Australasian Institute of Mining and Metallurgy and Chartered Professional (Geology) and has sufficient 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 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Peters consents to the inclusion in the release

  • f the matters based on this information in the form and context in which it appears.

The background information on the location and history of the Company’s key projects has not materially changed since they were first described in earlier ASX releases of the Company following the adoption by the Company of the reporting practices outlined in the 2012 edition JORC code. The Company's website is located at (www.peninsulamines.com.au). The website contains information on the Company's projects, project maps, a list of the Company's announcements to ASX, information on Native Title (including the tenement grant process and heritage surveys), legislative environments under which the Company operates, Corporate Governance, a section on risks, many of which are common to exploration companies and other useful information. All the information presented in this investor update has been released to the market in previous Company announcements and no new exploration results are presented in this presentation. A list of the Company's announcements is also obtainable from the Australian Securities Exchange. Forward-Looking Statements are included herein, regarding the future ability to finance projects and other statements that express management's expectations, or estimates regarding the timing of completion of various aspects of the projects' development or of our future performance and thereby constitute "forward-looking statements". The words "believe", "expect", "anticipate", "contemplate", "target", "plan", “aims”, "intends", "continue", "budget", "estimate", "may", "will", "schedule", and similar expressions identify forward-looking statements. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management, are inherently subject to significant business, economic and competitive uncertainties and contingencies. In particular, announcements and presentations by Peninsula Mines Limited include many such forward-looking statements and such forward- looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual financial results, performance or achievements of Peninsula Mines Limited to be materially different from its estimated future results, performance or achievements expressed or implied by those forward- looking statements and its forward-looking statements are not guarantees

  • f future performance. These risks, uncertainties and other factors are included in the Risks section of the Company’s website and ASX announcements available on the

company’s websites. Peninsula Mines Limited expressly disclaim any intention or obligation to update or revise any forward-looking statements whether as a result of new information, events or otherwise, except where required by law.

COMPETENT PERSONS STATEMENT AND DISCLAIMER

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CORPORATE STR TRUCT CTURE, DUAL FOCU CUS: METALS & & GRAPHITE

Peninsula Mines Ltd (ASX:PSM)

  • ASX listed, 516m shares
  • A$10m Market Cap (2.0c)
  • A$1m cash 30 June 2017

Korea Graphite Co. Ltd – to be incorporated* Suyeon Mining Co. Ltd Ubeong Zinc-Silver & Copper-Gold Project Yongwon Graphite Osu Gold-Silver Daewon Graphite Other Korean Graphite Projects

*Korea Graphite Co. Ltd to be incorporated shortly and the graphite projects to be transferred from Suyeon Mining

Graphene Korea Co. Ltd Offtake and Projects MOU

Aurora 29% Directors 8% Perth Seafoods 7% Lynch 6% Other top 20 Other Retail 26%

PSM Directors – over 120 years of discovery, development and corporate/finance experience Phillip Jackson Non-Executive Chairman – lawyer, oil & gas and minerals experience Jon Dugdale Managing Director – geologist, track record of advanced discovery & financing Daniel Noonan Executive Director – geologist, resources & development experience Martin Pyle Non-Executive Director – geologist/MBA, track record - financing and corporate

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FOCUSSED ON DIS DISCOVERY AND DE DEVELOPMENT IN IN SOUTH KOREA – 1.

  • 1. Ubeong Base

ase an and Precious Metals ls Project an and 2.

  • 2. Gr

Graphit ite Projects

Key Projects, Granted:

Polymetallic Projects: ▪ Ubeong:

  • Zinc - Silver &
  • Porphyry Cu-Au

▪ Osu:

  • Gold – Silver &
  • Porphyry Cu-Au

Graphite Projects: ▪ Yongwon

  • Flake Graphite

▪ Daewon

  • Flake Graphite

▪ Other Korean Projects

Drilling targets at Ubeong (Zn-Ag, Cu-Au), Osu (Au-Ag) and Yongwon (Graphite)

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UBEONG, CHILBO PROSPECT – ZI ZINC-SILVER & COPPER-GOLD TARGETS

H 70 H 69 H 59 H 60

mV/V Keumho Mine (Operating) Chilbo Prospect

▪ Tenement/applications

  • ver 10km mineralised

limestone-skarn, along strike from producing Keumho Zinc mine. ▪ High-grade Zinc-Silver targets in skarn- limestone unit ▪ Very high chargeability features indicative of sulphides (Cu-Au?) above porphyry system ▪ Drilling planned to test for porphyry/skarn Zn- Ag & Cu-Au deposits

Copperhead

Cobra Taipan

Section

Krait

48.8% Zn 2m @ 29% Zn, 958 g/t Ag 28.4% Zn & 2.7% Cu

IP chargeability image with XRF soil and rockchip results (Zn) Skarn-limestone unit & tenements on TMI Aeromagnetic image

Drill Site

500m 0m

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Copperhead Krait

UBEONG, CHILBO: VERY-HIGH IP CHARGEABILITY (SULPHIDE) TARGETS

>300m

mV/V

▪ Drilling to test very-high chargeability porphyry/sulphide target at Copperhead ▪ Further drilling planned to test zinc-lead-silver skarn targets in limestone

Copperhead Krait

Cross Section 513,000mE

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SLIDE 8

7

OSU GOLD-SILVER – Drilling Approval, 5 Holes Planned

Drilling, 2 holes planned Palgong East Channel Sampling Results: ▪ 5.7m @ 3.14 g/t Au, including ▪ 1.25m @ 7.73 g/t Au ▪ 0.15m @ 11.3 g/t Au, 327 g/t Ag ▪ 0.20m @ 18.3 g/t Au, 224 g/t Ag

▪ Palgong – Baegun lode system, 1.5km strike length, 3 parallel structures ▪ Palgong East: high-grade Au-Ag in shears in 20m - 30m wide channel sampled zone ▪ Drilling planned (2 holes) to test Palgong East and 1 – 3 holes Pal Gong West ▪ Drilling may be continued to test magnetic porphyry target (see inset – TMI image)

Palgong West, Previous KORES Drill hole: 75-2: 0.3m @ 5.1 g/t Au, 2,252 g/t Ag and 0.4m @ 8.4 g/t Au, 6,121 g/t Ag Drilling, 3 holes planned

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GRAPHITE – Key to Li-Ion Batteries and Expandable Graphite

  • South Korea is the world’s largest Li-ion battery manufacturer

and Graphite is the key component

  • South Korea is also the largest market for Expandable Graphite –

a heat resistant, very light weight, non-toxic building material to be required for all wall cladding

  • South Korea is highly prospective for Graphite, and was a leading

producer up until the 1980s

  • Peninsula Mines has identified potential high-value flake-graphite at

its Yongwon and Daewon projects in central Korea

  • The Company has signed Memorandum of Understanding (“MOU”)

with Korean Expandable Graphite producer, Graphene Korea Co.,

  • Ltd. MOU for offtake and development cooperation

Flake-Graphite concentrate

Graphene Korea’s Expandable Graphite Li-Ion battery structure

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SLIDE 10
  • Peninsula has completed petrography showing large to jumbo flakes of graphite in Yongwon Graphite Project

samples and large flakes at Daewon Graphite Project:

  • Metallurgical tests (Grind – Flotation) on 50kg composite samples indicate high-purity concentrate and recovery

potential from Yongwon (97% Graphite (TGC) in concentrate and 87.3% recovery) and Daewon (96.6% Graphite (TGC) and 81.8% recovery) indicating suitability for Li-Ion battery spherical graphite production

Metallurgical Testing - Flake-Graphite Concentrate Potential

Size Fraction Mass Total Carbon *LOI 1000°C TGC Recovery µm % % % % >106 8.2% 97.6 97.9 >75 13.7% 97.8 98.2 <75 78.1% 96.6 96.7

  • Calc. Head

100.0% 96.8 97.0 87.3%

Yongwon: “Jumbo”, >300µm flakes in petrography Daewon: large, >180µm flakes in petrography

Size Fraction Mass Total Carbon *LOI 1000°C TGC Recovery µm % % % % >106 6.7% 97.0 97.1 >75 11.4% 97.5 97.7 <75 81.9% 96.5 96.6

  • Calc. Head

100.0% 96.6 96.7 81.8%

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➢ EM geophysics defines >400m strike x >200m deep graphitic unit ➢ Drilling planned to define Indicated Resource (2mt target, >10% TGC) ➢ Feasibility Study to generate Ore Reserve and Production Plan

Yongwon Graphit ite – Sa Sampli ling, g, EM Geophysic ics th then Dri rill llin ing*

Trench 1: 13.8m @ 11.7% TGC Trench 5: 12.7m @ 10.8% TGC Trench 3: 8.45m @ 7.1% TGC

* * Drilling subject to access approval from either Chungju or Eumseong local Government EM anomaly at Depth

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DAEWON GRAPHITE PROJECT – Next Target

▪ >400m strike length, up to 10m thick flake-graphite unit ▪ Grades up to 24.8% graphite ▪ Positive metallurgy (96.7%concentrate) ▪ Next steps:

  • Channel sampling
  • EM geophysics
  • Drilling (subject to access agreements)

1.08m @ 9.6% TGC 1.03m @ 24.8% TGC 6.4m @ 4.79% TGC

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SLIDE 13

PENINSULA MINES (ASX:PSM) - Why Invest:

Experienced Team

  • Graphite and Lithium Projects for high-end technology applications in South Korea
  • New Zinc-Silver Project with 10km of potential, near operating mine, offtake in-country
  • Historical high-grade Gold mine to be drill tested and other gold opportunities in-country
  • Favourable operating and fiscal regime providing clear path mining to markets
  • Excellent infrastructure, logistics and skilled labour market
  • Graphite and Zinc-Silver & Copper-Gold highly sought after in South Korea and region
  • Highly experienced Board and Management team with discovery, development track record
  • Built reputation with South Korean government and industry since 2011
  • Aggressive Field Program to advance key projects to drilling and resource definition stage
  • Ubeong Zinc: Channel Sampling, Soil Sampling, then Geophysics (IP), Drilling Q2/3 2017
  • Yongwon Graphite: Channel Sampling then Drilling EM target, 16 holes for 1,100m Q3/4 17
  • Daewon Graphite: Detailed Metallurgy, Channel Sampling, EM and Drill-Targeting, Q3/4 17
  • Osu Gold: Drilling planned to test high-grade target, >3 holes, 650m, Q3/4 17
  • New Projects: Continued review of opportunities, continue focus on South Korea

Hottest Commodities Plans in 2017 to advance Drilling and Resources Discovery South Korea Benefits