Home' Australian Resources and Investment : July 2012 Contents that sits on the north-eastern limb of
that, and adjacent to the Mount Well
project. This is stranded at the moment,
but in due course might be of some
And what's particularly interesting
to us is that the Great Northern
Highway, which is just six kilometres
from DeGrussa, runs right through the
middle of our tenements -- fantastic from
a logistical point of view.
We've got at least 30 linear
kilometres of strike. We have looked at
about 1.2 kilometres of that, down to a
depth of 600 metres. What you see up
there on the slide is essentially the four
lenses of the DeGrussa ore body. We
strongly believe that they were all one
package of ore at one point in time and
they've been moved with little structural
faults over time.
The last thing we discovered was
a little yellow lens up there called
Conductor 5, which is running at about
one million tonnes grading 6.5 per cent
copper and 4.5 grams gold. We chose,
at that time, to stop exploration and to
take that ore body into feasibility.
I suppose, to some extent, the sense
for us was that if we didn't get on and
do things quickly and add value, this
fantastic project might just be stolen
off our shareholders. Our view is to
work for our shareholders and to make
them as much money as possible. But
we've actually got a lot of work to do.
Every single dot on Slide 23 shows you
copper or copper-related mineralisation.
At depth, there is huge potential and
laterally we haven't even started looking.
As I said at the beginning, these things
form in clusters -- multiple lenses, deep
We haven't even really started in an
exploration sense. So there's signi cant
work to be done and there's signi cant
value to be had, bearing in mind we
weren't even looking for this style of
deposit. We are now actively looking
for VMS deposits, and we're employing
state-of-the-art technology to do so.
In terms of VMS's and that logic of
clusters, Slide 24 shows some of the
big ones that have been found around
the world, and they all started off as
one discovery. Canada and Japan are
particularly interesting. This set of
data stops in 1980 from a particular
study done out of Ottawa. Bathurst,
for example, is 230 million tonnes at
an average base metal grade of close
to eight, nine or 10 per cent. It was
discovered in 1952. This is a set of data
up until 1982, because I want to keep it
pure to the paper it came out of.
Up until the current time, there's
been over 300 million tonnes of ore
that has come out of that eld for in
excess of 30 million tonnes of contained
metal. And you can only sort of work
out the value of 30 million tonnes of
base metals in the current environment.
It's probably in excess of $100 billion
or $130 billion of contained metal. It
started off with one VMS discovery.
We would have heard of companies
like Noranda -- the Noranda eld is up
there as well. Noranda was a small
junior resource company that made a
discovery in a VMS eld, which became
a camp of multiple discoveries.
Golden Grove in Western Australia,
which is 65 million tonnes, owned
by MMG, started off as an ore body
of about ve million tonnes. It was
discovered in 1971. It also took 20 years
to become a mine. Slide 24 shows our
current resource of around 14 million
tonnes, including the low-grade oxide.
My point is, no one nds a big VMS;
they get big.
You've got to work at it. It takes
time, persistence, diligence, and
dedication, and you just can't walk
away. In the province we're in, we have
our 400 square kilometres. There's the
single discovery with four lenses, and
the work has not even started.
For a little bit of information about
why it is a VMS, Slide 26 shows some
data compiled from those graphs that
I showed before. Talking about VMS
camps and what averages have been,
there's a bit of statistical analysis that
on average you get 12 deposits and they
all have multiple lenses. At nearly 100
million tonnes of ore and 5.5 million
tonnes of contained metal, their average
grade is six per cent base metals. When
you look through the statistical side of
things as well, anecdotally there is more
ore to be had.
Just to wrap up: we're incredibly
excited about the future of this
company, this commodity and I think
resources generally, even when we look
at what's happening in the short term in
the current global environment.
At the end of the day, there is
a requirement and a need for raw
materials, while we work our way
through these blips. We think there
is signi cant value still to be had
in this area and for us. We will
make substantial returns for our
Many people that I have spoken to are
interested in making a lot of money; and
I say that to make a lot of money, you've
got to buy a lot of shares. It really is
something that becomes a lifestyle thing.
We're very driven by creating value
and we're also very driven by not
wasting opportunities. We love what we
do and it's just fantastic. I think there's
a lot more to still be had.
Thank you very much for your
time, ladies and gentlemen. It's been a
pleasure to present.
66•AustralianResourcesandInvestment•VOLUME 6 NUMBER 3
...we're incredibly excited about the
future of this company, this commodity
and I think resources generally, even
when we look at what's happening
in the short term to the current global
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