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Investor Presentation – February 2019
Investor Presentation – February 2019
Cautionary StatementPresentation MaterialThis presentation is for information purposes only and does not constitute a prospectus or prospectus equivalent document. The information in this presentation is provided in summary form, has not been independently verified, and should not be considered to be comprehensive or complete. It is not intended to and does not constitute, or form part of, an offer, invitation or the solicitation of an offer to purchase or otherwise acquire, subscribe for, sell or otherwise dispose of any securities, or the solicitation of any vote or approval in any jurisdiction, nor shall there be any offer, sale, issuance or transfer of securities in any jurisdiction in contravention of any applicable law.
Not financial product advice This presentation is not a financial product or investment advice, nor a recommendation to acquire Spectrum Metals Limited securities. It has been prepared without taking into account the objectives, financial situation or needs of individuals and is not intended to be relied upon as advice to investors or potential investors. Before making an investment decision, investors or prospective investors should consider the appropriateness of the information having regard to their own objectives, financial situation and needs and seek legal and taxation advice appropriate to their jurisdiction. Spectrum Metals Limited is not licensed to provide financial product advice in respect of its securities or any other financial products. Cooling off rights do not apply to the acquisition of Spectrum Metals Limited securities. Spectrum Metals Limited assumes that the recipient is capable of making its own independent assessment, without reliance on this document, of the information and any potential investment and will conduct its own investigation. Disclaimer: Spectrum Metals Limited and its related bodies corporate and each of their respective directors, officers, employees, agents and contractors disclaims, to the maximum extent permitted by law, all liability and responsibility for any direct or indirect loss or damage which may be suffered by any person (including because of fault or negligence or otherwise) through use or reliance on anything contained in or omitted from this presentation. In particular, this presentation does not constitute, and shall not be relied upon as, a promise, representation, warranty or guarantee as to the past, present or the future performance of Spectrum Metals Limited.
Forward Looking StatementsStatements regarding Spectrum Metal Limited’s plans with respect to its mineral properties and programmes are forward-looking statements. There can be no assurance that Spectrum’s plans for development of its mineral properties will proceed as currently expected. There can also be no assurance that Spectrum will be able to confirm the presence of additional mineral resources/reserves, that any mineralisation will prove to be economic or that a mine will successfully be developed on any of Spectrum’s mineral properties. The performance of Spectrum may be influenced by a number of factors which are outside the control of the Company and its Directors, staff and contractors.
Competent Persons StatementThe information in this report as it relates to exploration results and geology was compiled by Mr Alexander Hewlett who is a Member of the AusIMM and a director to the Company. Mr Hewlett, who is a shareholder and option-holder, 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. Hewlett consents to the inclusion in the report of the matters based on the information in the form and context in which it appears.
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Corporate Snapshot
Capital Structure 12 Month Share PriceCurrent Shares On Issue (m) 1,051
Options (m) 78
Fully Diluted (m) 1,129
Current Share Price (A$) 0.005
Market Capitalisation (A$m) 5.3
Cash (31 Dec, 2018) (A$m) 1.3
Debt (A$m) 0.0
EV (A$m) 4.0
Major Shareholders % Board and managementPatina Resources Pty Ltd 11.9 Alexander Hewlett Chairman
A Barton & Assocs 6.8 Paul Adams Managing Director
Moutier Holdings Pty Ltd 3.6 James Croser Technical director
Mainview Holdings Pty Ltd 2.9 Nader el Sayed Non-Executive Director
Plateaux Resources Pty Ltd 2.8
Top 40 63.5
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Spectrum Overview
Spectrum’s Strategy
• Gold in WA
• Focus on high grade
• Under-drilled and open mineralisation
• Leverage off sunk capital and development
• Low hurdles to start-up
• Proximity to 3rd party mills
• Expertise in high grade mining
• Aim to be a producer
• Acquire further brown-fields assets
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Directors & Management
Alex Hewlett – Chairman
Geologist, with significant gold and ASX
management experience including MD of
Hammer Metals Ltd (ASX:HMX) and founding
director of Black Cat Syndicate Ltd (ASX:BC8).
Technical background includes former
Resource Geologist with CSA Global.
Paul Adams – Managing DirectorGeologist, 18 years in industry. 2IC Geology at
the giant high-grade Porgera Gold Mine PNG.
12 years as Director, Head of Equities
Research at DJ Carmichael, specialist in hard-
rock mining equity valuations across
numerous commodities, project assessment,
corporate advisory, M&A.
Nader El Sayed - Non-Executive Director
CEO of Mining Services Group Multiplant Holdings
with 15 years of strategic, financial and risk
management background in Mining and
Resources. Current Director of Hammer Metals
and previous senior management roles with
KPMG in Australia and Internationally.
James Croser – Technical Director
Mining Engineer, 25 years experience, Director,
MD and Principal of several ASX-listed and private
resource companies. Operational roles and Mine
Manager roles in high grade UG environments. UG
Mine Manager at Daisy-Milano & Frog’s Leg. WA
1st Class Mine Managers Certificate
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SPX Lead Asset - Penny West, WA
• Located 25km south of Youanmi Mining Centre
• Acquisition completed December 2018
• Acquisition of current resource for A$27 per oz*
• Fulfills all SPX acquisition criteria
• Been in private hands since 2012
• Crucially, Penny West formed part of Youanmi Gold Project until 2012
• Currently drilling – 4,500m of RC
* See ASX announcement dated 16 October 2018
Ore zone in quartz-sulphide veins in Porphyry
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• 1989/90 Eastmet granted title and find Penny West by soil sampling
• 1991 / 92 Eastmet mine Penny West open pit
• One of the highest grade open pits ever mined in WA from 121,000 tonnes at 21.8 g/t for 85,000 ozs (Holden & Hoyland, 2004)
• Successive owners of Youanmi – GMA(‘93), AMI/QMM (‘98), Aquila (‘00), Goldcrest (‘02), Ventour (’03), Apex (‘07), Private (‘12)
• Several drill programs under pit and at Magenta/Columbia to north – Total 23,000m in RC and DD
• Numerous high grade intersections within the Penny West lode, but no follow up due to successive corporate actions
SPX Lead Asset - Penny West, WA
Brief history of Penny West….
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Penny West Gold Project
Penny West drill intersections prior to SPX acquiring the project
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Penny West Gold Project
Auger drilling identifies additional targets
• 1,227 multi-element (33) Auger geochemistry samples
• Gold to 447 ppb
• Coincident As, Ag, Cu, Pb, Zn, Bi, Sb
• Results in 5 high-priority targets from 18 anomalies
• Potential pegmatite at Youangarra East
• Identifies additional targets at:
– Northern Extension
– Magenta / Columbia
– Columbia North
Auger Gold Geochemistry Results
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Penny West Gold Project
SPX RC Drill program now underway
• 4,500m RC drilling program
• 24 holes, a mixture of infill, extensions and new targets
• Test along strike and down plunge of high grade intersections
• Three targets:
– Penny West (18 holes)
– Northern Extension (3 Holes)
– Magenta (3 Holes)
• Potential for resource growth at all three targets
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Penny West Gold Project
Northern Extension
Penny West Lode approximately 200m in strike
Open down dip and down plunge
Quartz-vein lode with associated base metal sulphides
Free-Milling historically with recovery of 95%
Long Section through Penny West lode with SPX drilling pierce points
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Penny West Gold Project
Penny West over the next 4 months
1. Complete 4,500m RC drilling program
2. Update resource estimate
3. Initiate development studies
a) Scoping level mining studies
b) Geotechnical assessment
c) Environmental Review
d) Metallurgical Review
e) Financial analysis
4. Identify 3rd party mills
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First Hit Gold Project
• Location – 50km west of Menzies, WA
• Mined in 2001-2002 by Barra & Barminco via a decline to 240m
• Pre-mining reserve – 76Kozs @ 13.4g/t
• Mined – 29Kozs @ 7.65g/t (dilution, large gear, low drill density
• Mined, Hauled and Processed by Barminco at its Coolgardie plant and at Davyhurst
• Silica lode, 55% gravity, high recoveries
• Opportunity down plunge, south & north
• Exploration planning for First Hit is underway
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First Hit Gold Project
* Barra Resources Ltd – First Quarter Activities Report, 30 October 2002
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Whaleshark Project
Whaleshark
• Located 50km from Onslow
• Proterozoic host rocks
• Large magnetic anomalies
• Coincident gravity anomalies
• Copper-gold prospectivity
• Very under-explored
• Large structures act as conduits
• No modern geochemistry employed – potential for MMI?
• 1 g/t intersection under +100m of cover
The discovery of Haverion by Greatland Gold plc reminds us that the large deposits remaining to be found are likely to be under cover
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Investment thesis
• Historic high-grade, high margin deposits
• Multiple high-grade intersections beneath mines
• Under drilled
• Multiple targets
• Toll milling options
• Mining studies to commence
• Mining expertise within the company
• Potential for low CAPEX project development
• Pathway to production and cashflow
• Low market capitalisation
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Spectrum Resource Table
Notes:
Top cut used to estimate mineral resources was 170g/t Au
The estimate used a 1 g/t block cut off for reporting purposes
Samples were composited to 1.0m
Estimation method used Inverse distance squared on a 4m x 4m x 1m block size
Bulk density used = 2.8 g/cm3
Competent Person Statement
“Where the Company references the ASX release dated 16 October 2018 in respect to the Penny West Mineral Resource Estimate, it confirms it is not aware of any new information or data that materially affects the information included in that announcements and all material assumptions and technical parameters underpinning the resource estimates with those announcements continue to apply andhave not materially changed.”
* See Spectrum ASX Announcement dated 16 October 2018
Tonnes Gold (g/t) Contained gold (oz)
181,000 4.8 28,000
9,000 3.0 900
43,000 5.0 7,000
52,000 4.0 8,000
Total 230,000 4.8 36,000
Category
Indicated within wireframe
Inferred within wireframe
Inferred below wireframe
Total Inferred
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SPX Contact:Paul Adams – Managing DirectorSpectrum Metals LtdE:[email protected]:+61 431 931 942
DJC Contact:Davide Bosio – Head of CorporateDJ Carmichael Pty LtdE:[email protected]:+61 431 931 942
