Pre IPO Capital Investment Opportunity Duke Exploration Pty Ltd - - PowerPoint PPT Presentation

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Sponsoring Broker

Pre –IPO Capital Investment Opportunity Duke Exploration Pty Ltd

DISCLAIMER AND IMPORTANT INFORMATION

This document is not a prospectus and does not satisfy the disclosure requirements for a prospectus required under the Corporations Act 2001 (Cth) (“the Act”). The information contained in this document relates solely to the private offer to invest in Duke Exploration Limited ABN 28119421868 (“Duke”, “DE” or “the Company”) as set

• ut herein. Novus Capital Limited (AFSL No 238168) (ABN 32 006 711 995) is assisting the Company with the capital raising detailed in this document. This document is

being made available to a limited number of sophisticated (s 708) prospective investors (“Prospective Investors”) solely for information purposes of assisting them in making an initial evaluation of whether to invest in the Company and as such is an Excluded Offer. It is not intended for use by any person who is not a sophisticated investor or professional investor, as defined in the Act. Additionally, the shares to be offered under the offer have not been, and will not be, registered under the U.S. Securities Act and may not be offered or sold in the United States. No disclosure document will be issued in relation to an offer of the Company’s securities. This document does not purport to contain all information that Prospective Investors may require to make an informed assessment of the Company or its securities. Prospective Investors should rely on their own investigations, including of the risks associated with an investment in the Company. Before making an investment, Prospective Investors should consider (with the assistance of professional advice) whether an investment in the Company is appropriate in light of their particular investment objectives and financial circumstances. Each of the Company, its shareholders and its affiliates, and any of their officers, employees, agents, advisors, or representatives (Representatives), makes no promise, representation or warranty of any kind as to the accuracy or completeness of this document. They assume no duty of care to any Prospective Investors. No information contained in this document or any other written or oral communication transmitted by the Company or made available to a recipient is a promise, representation or warranty of any kind. A Prospective Investor, by accepting and reading this document, agrees that it will not rely upon any such information or communication. In addition, the Prospective Investor agrees that any projections and estimates or other forward-looking statements contained in this document involve assumptions and are subject to risks and uncertainties (many of which are outside the control of the Company) which are likely to cause actual results to differ. Such assumptions, risks and uncertainties include Company specific matters, industry market conditions, general business, economic, and market conditions, as well as national and international political, military, and social conditions. Accordingly, the Company gives no assurance as to the accuracy or attainability of any forward-looking statements. This document is confidential. Neither this document nor any other material relating to the proposal described herein may be copied, reproduced, shown, distributed or issued to any other person at any time without the prior written consent of the Company nor may the information contained herein be discussed with any other person without the prior written consent of the Company. By receiving this document, a Prospective Investor agrees to be bound by the restrictions in this disclaimer. 2

DUKE EXPLORATION: OVERVIEW

• Duke aims to find deposits to unlock the next generation of major

mineral discoveries;

• Duke has aligned with Kenex to identify new ore bodies;
• Kenex has developed proprietary analysis techniques (GIS Predictive

Modelling) to synthesise vast data sets;

• Duke’s Strategic Alliance with Kenex has identified a number of high

priority targets and secured overlying tenements;

• Duke Exploration aims to develop these targets into mineable

resources.

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Sponsoring Broker

EXPLORATION TARGETS

• Iron Oxide Copper Gold (IOCG) in the Mt Isa inlier (Cu Au Co)-

e.g. Ernest Henry.

• Porphyry / skarn (Cu Au) Lachlan Fold Belt (NSW) e.g. Cadia.
• Porphyry / skarn in Central Qld
• Predictive analyses carried out to date have identified a number
• f targets ready to drill.

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Managing Director

• Mr. Eugene Iliescu

(Grad Dip Social Sci, Engineer Surveying Cert)

Chairman

• Mr. Toko Kapea

(B.A., LL.B)

Director Dr Gregor Partington

(Ph.D, MAusIMM, MAIG)

Director Company Secretary Mr Paul Frederiks

B.Bus. (Acc), FCPA, FGIA, FCIS, FAICD

BOARD

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Operations Coordinator Mr. Campbell McKenzie

(B.Sc (Hons) Geology)

MANAGEMENT & ADVISORY TEAM

Corporate Adviser Dr Bertus de Graaf

• B. Sc. (Hons geology),

Ph.D. (both Univ. of Bristol, UK) FAusIMM, MGSA

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Technical Advisor Michelle Stokes B.Sc. Geology The Kenex Team

PROSPECT GENERATION

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Predictive Modelling

• Identifies characteristics common to specific styles of

mineralisation (e.g. porphyry copper), and known occurrences & mines – “training points”.

• Allows harvesting of huge, multilayer regional data sets
• Gives probabilistic rankings of similarity to known deposits.
• Target selection incorporates operational logistics, infrastructure,

tenure opportunities, financial and regulatory considerations.

** * * * * * * * *

100km 100km

• a = total study area (e.g. 10,000 km)
• A = Unit Cell = 1 km2 cell
• N(D) = number of deposits
• P(D) = prior probability
• N(T) = total area of study region
• N(B) = area of binary theme
• N(B) = area of binary theme not

present

• N(T) = N(B) + N(B) (as long as no

missing data)

) ( / ) ( ) ( / ) ( ln T N B N D N D B N W   

) ( / ) ( ) ( / ) ( ln

_ _

T N B N D N D B N W   

) ( ) (     W W C

_

) | ( ) | ( ln D B P D B P W  

) ( 1 ) ( 1 B N D B N Ws    

) ( ) (     Ws Ws Cs

_

) | ( ) | ( ln D B P D B P W   ) ( 1 ) ( 1 B N D B N Ws     ) ( ) (     Ws Ws Cs

_ _ _

) | ( ) | ( ln D B P D B P W  

) ( 1 ) ( 1

_ _

B N D B N Ws    

Cs C StudC / 

Fuzzy Logic, Weights of Evidence, Neural Networking & Logistic Regression USING MASSES OF DATA TO SIMPLIFY

Weights of Evidence Neural Networking Fuzzy Logic Logistic Regression

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• Superior asset targeting
• Intellectual property
• Cutting edge technology
• Wealth of experience

DUKE EXPLORATION ADVANATAGE

• Improved mineral exploration techniques +
• Increased likelihood of discovery +
• Reduced exploration costs +
• Reduced risk

SUCCESS + ADDING VALUE + GENERATING RETURNS Next generation of new discoveries

• 5 tenements 100% owned by Duke
• New targets in established mineral provinces :
• Cloncurry – IOCG, (Cu-Au-Co) e.g. Ernest Henry
• Bundarra – Porphyry-skarn (Cu-Au)
• Red Hill – Porphyry-skarn-epithermal (Cu-Au)
• Coomerang – Orogenic (Au)
• Duke provides game-changing “proof of concept”
• pportunities.
• Duke holds 10% free carried interest in five tenements

managed by Emmerson Resources (ASX : ERM; Porphyry Cu, NSW.)

DUKE’S PORTFOLIO

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CLONCURRY PROJECTS

IOCG Mineralisation Style (Qld)

• Target type – Ernest Henry, copper-gold-cobalt.
• 2 Tenements, 100% held; EPM19253 & 25764.
• 3D geology modelled and 2 drill ready targets

generated.

• Archer – Identified Cu-Au-Co mineralised zones

to be drilled.

• Jasper – gold zones to be extended.
• Oonoomurra - untested soil anomalies >500ppm

Cu, and Co intersections

• Close to Cloncurry and infrastructure.

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CLONCURRY EPM 19253

Jasper and Archer prospects are situated on the “Magpie Trend” (after Richard Lilly).

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EPM 19253

Archer and Jasper could host significant IOCG mineralisation. Archer

• Includes 5 m @ 2.2% copper and 10 m @ 0.15% Co.
• >500 ppm copper soil anomaly.
• Untested extents.
• Existing model targets 73kt Cu, 7kt Co and 30k oz Au

(30 m x 200 m x 300 m).

Jasper

• Drill results include 4 m @ 2.97 % copper and 1.25 g/t

gold

• Untested extensions.

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ARCHER PROSPECT

• 3D modelling shows multiple ore grade zones that

could represent a significant orebody.

• Initial work will include surface mapping and

geochemical sampling

• Immediate drill targets
• Encouraging cobalt intersections

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HoleID From (m) To (m) Interval (m) Co ppm CA002RC 2 2 1060 CA008D 146 147 1 1440 CA008D 149 150 1 1040 CA008D 156 157 1 1050 CA009D 304 305 1 1070 CA009D 306 307 1 1160 CA009D 316 326 10 1546 CA009D 354 355 1 2160

BUNDARRA PROJECT EPM 26499

Porphyry copper-gold (Qld)

• Target type – porphyry copper-gold.
• EPM 26499 encompasses the entire Bundarra

granodiorite pluton and associated historical mineralisation.

• Close to Moranbah and related mining infrastructure.
• Unique porphyry occurrence within the Bowen

Basin/Back Creek sequences.

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BUNDARRA PROJECT

• Exploration data sets include:
• Untested EM targets, coincident with

surface geochemistry anomalies.

• Mineralised breccias.
• Historic drilling intersections include:
• 48 m @ 0.58% Cu;
• 44 m @ 0.46% Cu;
• 6 m @ 1.4% Cu and 38 g/t Ag
• 19 m @ 1% Cu and 4.9 g/t Ag
• 10 m @ 0.7% Cu

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RED HILL PROJECT EL 8568

Porphyry copper-gold mineralisation style (NSW Lachlan Fold Belt)

• Target type – Cadia ( 37 M oz Au, 7.5 Mt Cu)
• Historical multiple disparate skarn, epithermal and VMS prospects

indicate likely presence of buried porphyry sources and associated targets.

• Surface results include 0.17% Cu, 11.5 g/t Au.
• 6 untested epithermal targets.

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• RTP magnetic image shows a

number of circular and sub-circular magnetic anomalies indicative of buried intrusions.

• Could be the source for the

epithermal systems modelled.

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RED HILL PORPHYRY POTENTIAL

RED HILL SKARN

Red Hill Target Analysis Carbonate ✓ NW-NNW trending fault ✓ Granite-sediment contact ✓ Exoskarn ✓ RTP slope ✓ Rock-drilling-MinOcc Pb ✓ Rock-drilling-MinOcc Zn ✓

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• Skarns vector to porphyry

style mineralisation (e.g. Cadia)

COOMERANG PROJECT EL 8539

Orogenic gold mineralisation style (NSW Lachlan Belt)

• Target type – Adelong or Challenger (600K Au oz historic and 350K

Au oz reserve).

• Target size – medium-giant 500k-2M oz Au.
• Historical gold workings, along strike from Adelong Gold Fields.
• High grade gold intersected (to 53 g/t).
• Historic drill results including 5 m @ 2.64 g/t Au.

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COOMERANG PROJECT

Orogenic Gold (NSW Lachlan Belt)

• Adjacent to Gilmore Shear Zone which controls gold deposits

including Adelong, Mt Adrah, Temora, Wyalong, Lake Cowal.

• Untested drill targets identified along 12 km+ strike length within

the tenement.

• Exploration programme to evaluate orogenic style

mineralisation from regional and cross-trending structures along this strike length.

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• 10% free carried interests (to BFS) in five NSW Cu-Au porphyry tenements

currently operated by ERM which were recently subject to a $2 mil raising.

• Drilling targets to test concepts are potentially eligible for state and federal

exploration incentive funding contributions.

• Kenex techniques have a proven track record;
• Duke’s strategic alliance with Kenex gives Duke priority to participate in
• ngoing prospect generation opportunities.

ADDITIONAL INVESTOR HIGHLIGHTS

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0.5 1 1.5 2 2.5 4/10/2005 4/10/2006

AZX Price

0.1 0.2 0.3 0.4 0.5 0.6 0.7

ARM Price

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ABOVE FIGURES AS OF 14 FEB 2018

SEED FUNDING- PLACEMENT OFFER

Cash Position & Requirements A$

IPO Funding Requirements Estimated Pre-IPO Exploration remaining $230,000 Estimated Pre-IPO Costs $970,000 Estimated Total $1,200,000 Funds Raised to Date Seed Raised $500,000 Less Funds spent (June-Mar)

• $90000

Equity for Services $370,000 Total $742,000 Total Placement Offer Funds Sought $420,000 Placement Offer : ▪ $420,000 through issue of 4.2 mil shares @10cps; ▪ Shares rank equally; ▪ Intention is to undertake IPO @ 20cps Q3, 2018; ▪ Placement Offer closes 13 April 2018. ▪ Applications via Information Memorandum.

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Existing Share Holdings % Existing Share Holdings No of Share Holdings Post this Raising % Share Holding post this Raising Vendors 6,400,000 36.4% 6,400,000 26.2% Seed/Placement 10,100,000 63.6% 18,039,000 73.8% Total 16,500,000 100% 24,439,000 100% Key Cornerstone Investors

• Westrade - Perth based investor (7%)
• Tuia Group - commercial consulting, law firm

(4%)

• Wellington, NZ investors (Wellypreneurs)

(28%)

• M. Stokes – Dr G. Partington (Kenex founders)

(42%)

• Board Members (6%)

POST PLACEMENT RAISING & PRE IPO

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INDICATIVE CAPITAL STRUCTURE: POST IPO

Existing Share Holdings % Existing Share Holdings Vendors 6,400,000 13.63% Seed/Placement Investors 18,039,000 38.43% Public (assuming $4.5 mil @ 20 cps) 22,500,000 47.94% Total 46,939,000 100% Enterprise Value at IPO $4.89 M

SHORT TERM EXPLORATION WORK PLAN

In order to maximise exploration success, and establish strong news flow, post IPO, Duke intends to undertake the following exploration as a pre-listing priority :

• Bundarra – Refine drill target strategy using porphyry copper

gold model, EM targets, and geochemistry, in conjunction with structural analysis (complete).

• Access in place for field checking, alteration mapping and

geochemical sampling.

• Red Hill – Targeting (complete). Geochemical sampling,

mapping and 3D modelling. Generate 3D subsurface porphyry drill target.

• Coomerang – Map and sample most prospective areas. 3D

model generation to isolate best exploration target sites.

• Cloncurry – Field confirmation of drill target sites.

PROJECT Estimated Exploration Expenditure (A$) Bundarra $70,000 Red Hill $30,000 Coomerang $30,000 Cloncurry $80,000 Plans Map Figs Reports $20,000 Total $230,000

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FURTHER INFORMATION

FOR FURTHER INFORMATION REFER TO OUR INFORMATION MEMORANDUM AND/OR CONTACT Eugene Iliescu, Managing Director md@duke-exploration.com.au Aust (+61) 0418757364

OR

Toko Kapea, Chairman t.kapea@duke-exploration.com.au NZ (+64 4 9798270)

OR

Dr Ray Shaw Consultant, Novus Capital Limited Aust (+61) 0419403533

OR

visit Duke’s website www.duke-exploration.com.au