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Building a new Australian zinc company
• Exploring and developing the Newman Zinc Project, WA
• Planned ASX listing by mid 2015
Overview
• Newly established Australian resource company • Experienced Board and management with extensive experience in exploration, development and production:
• Ross Ashton – Chairman (Red Back Mining, PMI Gold);
• Joe Treacy (Kagara, Mungana Goldmines);
• Jeremy Robinson (Mungana Goldmines, Mining Analyst) • Strong share register comprising long‐term strategic resource investors
• Focused on zinc – a commodity with extremely favourable supply/demand fundamentals
• Flagship asset: Newman Zinc Project, located in emerging Capricorn Orogen (WA):
• 3Mt JORC resource at Prairie deposit, located within 20km long
strongly mineralised corridor
• Exciting new Wolf discovery requires immediate drilling
• Multiple untested targets: building a regional land position via JV and acquisition
• Industry partnership with CSIRO – Capricorn Distal Footprints Program
• Aiming to list on ASX before mid 2015, via either IPO or back‐door listing
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Why Zinc? – A Metal Poised for Take‐Off • No new major mines on the horizon (the last significant development was Century)
• Major mines closing (660ktpa this year from Century and Lisheen alone)
• Dugald River – ongoing issues with stope design and production plan
• New Chinese legislation aiming to restrict output from the country’s lead and zinc mines to speed up consolidation in the sector
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Why Zinc? – Deficit Looming
• Rapidly declining inventories (currently 540kt)
• Market generally reacts at about 3 weeks of supply
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Newman Zinc Project – Location
• Located 60km SW of Newman in an established mining province
• Large +1000km2 tenement position
• Excellent infrastructure and access – gas pipeline transects tenement holding
Outstanding location in an emerging mineral province.
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Newman Zinc Project – Regional Setting
• Located in a major regional corridor bounded by the Tangadee and Flint Hill Lineaments which contain Proterozoic sedimentary basins hosting the large massive sulphide and structurally controlled gold and base metal deposits of Telfer, Nifty, Encounter/ Yeneena and Abra. The area is cut by crustal, district and local fluid pathways
• Cross‐cut by low angle thrust zones which host significant gold deposits including Paulsen’s, Mt Olympus and Karlawinda
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Newman Zinc Project – Overview
• Large‐scale zinc‐lead‐silver project encompassing 24km long regional structure (Prairie Downs Fault System)
• Marindi is earning 51% interest from European‐focused coal developer by spending $1M – right to earn up
to 100%
• 3Mt JORC resource outlined at advanced Prairie Deposit by previous owner, including limited mining studies
• Nearby Wolf deposit was discovered but never drilled out – Marindi has established an Exploration Target of 25‐35 Mt @ 1‐4% Pb + Zn (+Ag), including 2‐4Mt @ 10‐20% Pb + Zn (+Ag)
• Limited past work on highly prospective extensions and covered areas of the fault system.
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Wolf‐Prairie Corridor
• Significant mineralisation intersected over 2.6km of strike
• Wolf Prospect is a very large low temperature intense alteration system over 500m in thickness (Prairie is a silica‐rich system) associated with both fine grained disseminated and coarse crystalline sphalerite and galena
An emerging base metal system: no deep drilling
• The Wolf deposit has higher Pb and Ag values with a Zn:Pb ratio of 1:1 versus the Prairie deposits where the ratio is closer to 3:1 Page: 8
Prairie Deposit
• Current Independent JORC resource: 3Mt @ 5.0% Zn, 1.6% Pb, 15g/t Ag, Zn; 75% in the Indicated Category – with the mineralisation remaining open
• Mineralisation outcrops – open pit opportunity
• Preliminary metallurgical test work indicated good recoveries and good quality concentrate
• Marindi Structural Review ‐ Recognised South East Plunge for first time
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Wolf Deposit – Plan View
• The better defined mineralisation can be traced over 1,000m and plunges to the south‐east
• Where intersected, the mineralisation is a consistent zone at least 60‐80m true width
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Wolf Deposit – Cross‐Section (A‐A’)
• Drill Hole PDP 379 intersected a high grade zone of 8m at 11.1% Zn, 8% Pb, 73g/t Ag
• Large zones of low grade mineralisation also reported: PDP 404: 97m @ 1.3 % Zn, 1.2 % Pb and 33 g/t Ag
Diamond core PDD410 from 184m
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Wolf Deposit – Cross‐Section (B‐B’)
• Diamond hole PDD410, 150m along strike from PDP379, confirmed underground grades and widths including:
10.1m @ 9% Zn, 8.6% Pb & 60g/t Ag
from 184.30m PDD410 184m
PDD410 191m
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Copper / Gold Potential
Regional
• Multiple zones of copper anomalism identified along the PDFZ by recent drilling program
Prairie
• The Marindi exploration model predicts copper to be located in the hotter/deeper zones and separate from the lead‐zinc mineralisation.
• Copper mineralisation located in the footwall position at Prairie in the deepest holes and not in the main Pb‐Zn zone, e.g. PDD 320 – 2m @ 1.5% Cu from 340m
• Drilling at Prairie is relatively shallow, maximum depth approximately 300m vertical.
• The copper ore position at Prairie has not been tested.
Wolf
• Surface copper staining seen at Wolf to C7, costean sampling of up to [email protected]% Cu.
• Copper is associated with high grade Pb‐Zn mineralisation and much higher silver compared to Prairie, e.g.PDP420 – 1m @1.1% Cu, 22% Pb, 4.6% Zn, 291g/t Ag
Gold • No systematic assaying of drilling for gold at Wolf.
• Epithermal textures in quartz veins and associated antimony and arsenic geochemistry indicate a fertile environment for gold mineralisation.
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Evaluation by Marindi
• Previous geochemistry was unreliable due to transported cover and weathering
• Although $15m had been spent on the Newman zinc project it was immature from an exploration point of view
• Drilling and expenditure had been concentrated on the Prairie Downs deposit
• There were no geological logs and no geological explanation of the style or host for the mineralisation
• A very large alteration system was present over a 20km strike length and which Marindi believe is capable of producing an orebody an order of magnitude greater than that outlined at Prairie
• Gradient Array Induced Polarisation (IP) had detected the Prairie deposit and may have potential for further discoveries
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Exploration Work Completed to Date
• Exploration camp re‐established
• Multiple site visits for general prospecting and confirmation of prospectivity
• Extensive 320‐hole vacuum drilling program over 20 kilometers of strike to sample the bedrock and provide full geochemical coverage
• Multi‐element geochemistry used to target hydrothermal hot spots
• Extensive IP survey coverage and geological mapping to confirm drill targets
• Development of deposit mineralisation model –
re‐logging of drill core + structural interpretation
• Renewal of both exploration licenses
• Industry partner with the CSIRO $20M distal footprints program
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Exploration – Vacuum Drilling Geochem
• Multi‐element data is only preliminary at this stage but has outlined three high priority targets
• Re‐logging of diamond drill core from Prairie has confirmed a strong south‐east plunge to the mineralising system and opened up several potential new ore positions
• The IP surveys detected several new anomalies coincident with anomalous geochemistry that will require drill testing
• Prospecting and mapping has found outcropping high‐grade zinc and lead mineralisation (+2.7% Zn and 3.5% Pb) 500m beyond drilling at Prairie Downs and confirms the prospectivity of the project area
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Exploration – IP Program
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Broader Potential – Structural Setting
• Marindi believe geochemical signatures and structural setting show similarities to the large Cobar deposits in NSW
• The alteration seen at Wolf is indicative of much larger system than seen at Prairie or Wolf to date and indicates a potential basemetal system at depth
• Known system anomalously low in copper and gold – suggests possible zonation with copper at depth like the C.S.A. mine at Cobar – 50Mt @ 3% Cu)
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Other Targets (IOCG) • Prairie, Wolf etc. may represent hydrothermal vein systems proximal to IOCG target
• Anomaly B is a large coincident aeromagnetic and gravity anomaly Page : 19
Summary
• Newly established Australian resource company with strong leadership
• Strong share register – expected to support upcoming ASX Listing
• Focused on zinc – a commodity with extremely favourable supply/demand fundamentals
• An outstanding zinc asset: Newman Zinc Project
• Existing JORC resource with outstanding upside
• New discovery at Wolf awaiting drill‐out
• Deeper potential providing future “game‐changing” opportunity
• Aiming to list on ASX my mid 2015, via either IPO or back‐door listing
A ground‐floor investment opportunity in zinc. Page : 20
Joe Treacy, Managing Director
T: 0428 600 121
E: [email protected]
Jeremy Robinson, Director and Company Secretary
T: 0431 722 330
E: [email protected]