2015 Broken Hill Resources Investment Symposium - Fronteir Resources (FNT) - Paige McNeil
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Frontal Resources Ltd has signed a partnership with Goldridge Community Investment Limited to acquire an 80% interest in the Gold Ridge Mine, which has significant gold resources and potential for exploration. The project currently has a total of 3.2 million ounces of gold resources, and the company plans to initiate drilling and a feasibility study to enhance mining operations and extend the mine's life. This new ownership model aims to improve transparency, trust among stakeholders, and ensure local community involvement in managing the project.
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2015 Broken Hill Resources Investment Symposium - Fronteir Resources (FNT) - Paige McNeil
- 1. ASX:FNT www.fron/erresources.com.au Fron%er Resources Ltd GOLD RIDGE MINE: A NEW PARTNERSHIP Resources Investment Symposium Broken Hill Tuesday 26th May 2015 Paige McNeil Managing Director
- 2. Disclaimer This Informa/on Presenta/on has been prepared by Fron/er Resources Ltd (ABN 96095684389) “Fron/er Resources” or “Company” to provide prospec/ve investors in the Company with general informa/on to assist them in deciding whether they wish to undertake their own inves/ga/on or consider a possible investment in the Company. This Informa/on Presenta/on is based on informa/on and material collated, prepared by and supplied to the Company and form publicly available informa/on. The Company has not independently verified the reliability, completeness or accuracy of certain of the informa/on and materials contained in this Informa/on Presenta/on and does not represent that such informa/on and materials are reliable, complete or accurate. This informa/on Presenta/on is not a prospectus and does not cons/tute an offer of invita/on or recommenda/on to any person and has been prepared solely for use by persons who are deemed to be “sophis/cated investors” as described in the Corpora/ons Act. All informa/on provided in this presenta/on has been formally released to the ASX in compliance with all JORC requirements. The most recent document released to the ASX provides details and hyperlinks relevant to all informa/on provided in this presenta/on and can be accessed on the Company website at hyperlink: ASX Announcements. The Company confirms that it is not aware of any new informa/on or data that materially affects the informa/on included in the original market announcement(s).
- 3. Gold Ridge Mine Photo by St Barbara Limited
- 4. Gold Ridge General • Low strip ra/o gold mine with 3.2 million ounces of gold in Total Resources + excellent explora/on poten/al • 2.5 Mtpa CIL processing plant infrastructure is intact. Requires new electrical power generators, conveyor rebuild, laboratory + office • Logis/cally well located ~50min drive to the SE of Honiara • The mess and accommoda/on block is in good condi/on, powered and readily habitable • Significant quan//es of various spare parts and other consumables / items remain onsite • All new houses for displaced landowners have been completed • Some mining equipment comes with the JV, including 5 haul trucks + 114,000 tonne 6m3 bucket excavator
- 5. Conveyor, Sag Mill & south part of CIL Plant St Barbara photo
- 6. Acquisi/on • Fron/er (FNT) announced May 25th 2015 that it signed a Heads of Agreement with GoldRidge Community Investment Limited (GCIL), to acquire 80% of the Gold Ridge Mine / Project • ASX listed mid-‐/er gold producer, St Barbara Limited sold the suspended Gold Ridge Mine / Project to GCIL on May 1st 2015 • GCIL will grant FNT an 80% direct interest in the Project • FNT will carry GCIL's costs and be repaid from 50% of their future profit • FNT will issue shares to GCIL = 19.9% interest in FNT on JV signing • GCIL will have an ini/al 35.9% total direct and indirect interest • FNT will issue deferred shares to GCIL in 1 year = 4.98% in FNT • GCIL will appoint 1 Execu/ve Director to the Board of FNT-‐ Landowner Paramount Chief Mr Walton Naezon
- 7. Gold Ridge Proposed Considera/on
- 8. New Ownership Model • GCIL will sell ¼ of its 19.9% equity in FNT for opera/ng capital and will budget it to meet its goals, establish appropriate businesses and assist the community • Landowner ownership + increased transparency = trust & certainty for all stakeholders • Landowners & community 100% responsible to ensure a smooth and poten/ally profitable mining opera/on • Marginal local interests will no longer exert significant influence on key stakeholder decisions • GCIL will be responsible for all community support
- 9. Resources & Reserves • Total Mineral Resources* were es/mated to contain 3.18 million ounces of gold, within 64.2 million tonnes grading 1.5 g/t gold • Total Ore Reserves* were es/mated to contain 0.67 million ounces of gold, within 14.6 million tonnes grading 1.4 g/t gold * St Barbara Limited Gold Ridge Resources and Reserve Statements dated June 30th 2014 and issued to the ASX on August 27th 2014. The Total Reserves are included within the Total Resources and were reported with the qualifica/on that they are economic based on the on-‐going mine plan, but the opera/on remains suspended.
- 10. Gold Ridge Total Resources and Reserves RESOURCES Grade g/t Ounces Grade g/t Ounces Grade g/t Ounces Grade g/t Ounces Dawsons 19,883,000 1.4 863,000 1,056,000 1.4 48,000 15,932,000 1.3 666,000 2,895,000 1.6 149,000 Kupers 13,306,000 1.3 544,000 2,640,000 1.5 127,000 7,662,000 1.2 291,000 3,004,000 1.3 126,000 Charivunga 25,342,000 1.9 1,530,000 -‐ -‐ -‐ 8,437,000 1.5 410,000 16,905,000 2.1 1,120,000 Valehaichichi 4420000 1.3 187,000 435,000 1.3 18,000 3,118,000 1.3 128,000 867,000 1.5 41,000 Namachamata 768000 1.7 41,000 166,000 2.0 11,000 457,000 1.7 24,000 146,000 1.4 6,000 Stockpiles 443000 0.7 10,000 443,000 0.7 10,000 Total RESOURCES 64,162,000 1.5 3,175,000 4,740,000 1.4 214,000 35,606,000 1.3 1,519,000 23,817,000 1.9 1,442,000 RESERVES Grade g/t Ounces Grade g/t Ounces Grade g/t Ounces Dawsons 7,215,000 1.5 348,000 739,000 1.6 39,000 6,476,000 1.5 309,000 Kupers 3,933,000 1.5 186,000 1,693,000 1.7 91,000 2,240,000 1.3 95,000 Charivunga 2,834,000 1.3 120,000 61,000 1.1 2,000 2,774,000 1.3 118,000 Valehaichichi 192,000 1.5 9,000 96,000 1.7 5,000 95,000 1.3 4,000 Namachamata -‐ -‐ -‐ -‐ -‐ -‐ -‐ -‐ -‐ Stockpiles 443,000 0.7 10,000 443,000 0.7 10,000 -‐ -‐ -‐ Total RESERVES 14,617,000 1.4 673,000 3,032,000 1.5 147,000 11,584,000 1.4 526,000 Tonnes Gold Tonnes Gold Tonnes Gold Project Area Tonnes Gold Tonnes Gold Total Proved Probable Project Area Gold Tonnes Tonnes Gold GOLD RIDGE MINE TOTAL RESOURCES AND TOTAL RESERVES Measured Indicated Total Inferred
- 11. Geology Guadalcanal Island is highly prospec/ve and underexplored for addi/onal epithermal gold deposits plus porphyry copper-‐gold deposits Gold Ridge Deposits are low-‐ sulphida/on intrusive related epithermal gold deposits hosted by shallow dipping volcaniclas/cs associated with intense argillic altera/on and various different structures; plus with low angle to approximately bedding-‐parallel altera/on zones and shears and veins that bifurcate from major NNE and NNW trending faults
- 12. Explora/on • There are very good near mine drill targets for further explora/on and FNT will commence drilling asap • The new (unmined) Charivunga Zone is located between exis/ng pits and is more strongly gold mineralised than the Gold Ridge average Drilling including GDC0761, with 13m grading 2.3 g/t gold from 48m, plus 15m grading 2.6 g/t gold from 215m, plus 84m grading 2.0 g/t gold from 313m (St Barbara:ASX 28/10/2013) • The Gold Ridge Project consists of Prospec/ng Licence 02/14 and PL Applica/ons Lower Vunusa, Sutakiki and Central
- 13. Tailings Storage Facility TSF: Cyclonic rainfall April 2nd 2014 damaged mine access, resulted in a loss of storage volume in the TSF and led to the suspension of mining opera/ons Immediate Ac/on: • Gold Ridge Mining Ltd (GRML: the opera/ng company) has been granted permission to build a large, new spillway to help protect the integrity of the Tailings Storage Facility from all future major rain events • Community Awareness campaign commenced today to allow untreated pumping at the TSF to reduce the dams very high ‘clear water’ level • St Barbara is providing a water treatment facility for the TSF by the end of August 2015 to allow treated water pumping
- 15. History • Gold Ridge Mining Lease (No1/1997) granted March 12th 1997 to Ross Mining -‐valid for 25 years +10 year renewal op/on • Delta Gold NL acquired Ross Mining. Force Majure enacted June 5th 2000 due to Ethnic Conflict on Guadalcanal Island. The AFP RAMSI mission restored law and order • Gold Ridge Mine purchased by Australian Solomons Gold Ltd (ASGL) May 30th 2005 from American Home Assurance for deposit of US$20M + addi/onal payments at various points in the redevelopment process The par/es renego/ated the remaining amount due in February 2009 and the debt of US$20 million was sa/sfied by the payment of US$2.5 million cash and the establishment of a fixed produc/on payment income stream of US$15 per ounce recovered from the Gold Ridge Mining Lease
- 16. History Cont. • Allied Gold acquired ASGL, completed a A$150 million refurbishment and expansion of processing plant capacity from 2.0 to 2.5 Mtpa • Allied Gold successfully put the mine back into produc/on in March 2011 • St Barbara Limited (SBM) purchased Allied Gold 2012 for £360 million in cash/script and operated the Gold Ridge Mine for <2 years Projects acquired were Gold Ridge with Total Resources = 2.5 million ounces of gold and Simberi (PNG) with Total Resources = 6.5 million ounces of gold (at similar grades) • SBM suspended mining early April 2014 due to effects from cyclonic weather condi/ons including road destruc/on and excess water volume in the TSF • GoldRidge Community Investment Limited purchased the Mine and Project on May 1st 2015 for a nominal cost
- 17. GCIL Ownership Mr Bob Vassie – Chairman St Barbara Limited in Sale Release to ASX noted: “The sale of the Gold Ridge mine to a locally owned company with strong landowner representa<on provides a fresh and realis<c opportunity to successfully manage the cri<cal security, local resourcing and environmental issues that Gold Ridge must resolve in the near term. Representa<ves of GCIL first approached us about buying Gold Ridge in February 2015, when the Solomon Islands Government advised it was no longer interested in buying the mine. Many of the shareholders and directors of GCIL have had personal associa<ons with, and concerns for the success of, the Gold Ridge mine since it was first established in the mid 1990s, with the GCIL Chairman being a former Minister of Mines and Energy”
- 18. Gold Ridge 2.5 Mtpa Processing Facility
- 19. Five Carbon in Leach Tanks at Gold Ridge
- 20. Gold Ridge Mine Haul Trucks
- 21. Gold Ridge Mine Accommoda/on and Mess
- 22. Feasibility Study and Strategy Forward A Feasibility Study evalua/ng re-‐opening the mine will commence to: • Inves/gate repairing the CIL processing plant, conveyor, electrical systems, laboratory and mine offices Fron/er's ini/al due diligence determined this is cost approximately A$30 million, plus required opera/ng capital – Inves/gate the possible addi/on of a refractory gold processing / concentra/ng circuit to significantly increase the gold recovery – Inves/gate upgrading the remaining mining fleet to maximise u/lisa/on and increase the volume of ore hauled – Inves/gate the Mine's future power requirements – Address specific cost reduc/on opportuni/es including be{er determining the metallurgical characteris/cs of the ore types, increasing mill recoveries, improved blending/run of mine pad management, improved grade control and mine planning • Inves/gate and rec/fy issues with Tailings Storage Facility ASAP and as appropriate • Undertake diamond core drilling at Gold Ridge to a{empt to increase the Total gold Resources and Reserves to ensure an enhanced and more economically robust mine with a significantly longer life • Addi/onal capital will be required to undertake this work
- 23. Fron/er Resources Ltd Corporate Informa/on Ini%al Public Offering (as TasGold Ltd) April 2003 Current Shares on Issue (ASX : FNT) ~582 million Shareholders: Interests of P.A and P.S McNeil 10% Ok Tedi Mining Ltd 4% Top 20 Shareholders hold ~40% Two tranches of equity in FNT are proposed to be issued to GoldRidge Community Investment Limited (GCIL), the first on signing the JV and second 1 year later. 19.9% + 4.98%
- 24. Fron/er Resources Ltd 10 Year Share Price
- 25. Fron/er’s Board and Management Peter McNeil B.Sc., M.Sc., MAIG Non Execu*ve Chairman, Explora/on Geologist with 33 years mineral explora/on and corporate experience, incl. 30 years in PNG for epithermal gold, porphyry copper-‐gold, skarns and VHMS mineral systems. Peter was the consultant site supervisor for the discovery holes in 1992/1993 at Sunrise Dam (Delta) and Nimary (Eagle Mining) in WA that contain >20M oz gold. Paige McNeil Grad DipEd, ACIS, GAICD Managing Director, Corporate Governance prac//oner with 14 years administra/ve experience in the mineral explora/on industry in Papua New Guinea, Australia and Canada. Paige was a Founding Director and Company Secretary of Kanon Resources Ltd (2003) and Quintessen/al Resources Ltd (2010) which were subsequently listed on the TSX-‐V and ASX respec/vely. She was responsible for the raising of $10M in capital for Quintessen/al over 2 years. Peter Swiridiuk , BSc (Hons), DipEd, MAIG Execu*ve Technical Director, Geophysicist with 25 years experience in various countries including the Solomon Islands. Between 1997 and 2012, he managed explora/on, discovery and resource defini/on for projects in Papua New Guinea, including evalua/on of data at Frieda River and ac/ng as a consultant geophysicist to Fron/er Resources (2004-‐2013). In 2007 he spent over six years as Managing Director of ASX listed Coppermoly Limited where he a{racted over $32 million through an IPO, capital raisings and joint venture partner Barrick Gold Corp Walton Naezon Proposed Execu*ve Technical Director Chairman of GCIL and the regional Paramount Chief of the Gold Ridge landowners and was Mining & Energy Minister (1997-‐ 2001), Minister of State Government (2001 -‐ 2003) and Minister for Commerce (2003 -‐ 2005) in the Solomon Islands Government. Walton successfully nego/ated GCIL's purchase of the Gold Ridge Mine / Project from St Barbara Ltd and he will provide the local communi/es and landowner tribes with control and direct responsibility over the exploita/on of and pro-‐rata profits from the mineral resources on their land Minerva Corporate will con/nue to provide the services of Company Secretary: Ma{ Foy and Chief
- 26. Summary • Fron/er and GCIL have created a new Melanesian resource ownership model which will increase transparency, create trust and certainty for all stakeholders • Gold Ridge has a 3.2 million ounces of gold in Total Resources plus excellent explora/on poten/al • Fron/er will commence explora/on and resource infill drilling to a{empt to demonstrate significantly enhanced Total Reserves and Resources, targe/ng a larger and higher grade zone to enable a more robust and significantly longer mine life • Fron/er will undertake a capital raising (July/August) to commence a diamond drilling program and undertake a feasibility study with the aim of bringing the Gold Ridge Mine back into produc/on as soon as possible