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BRILLIANT BRUMBY Corporate Presentation AUGUST 2018 STRICTLY PRIVATE & CONFIDENTIAL PROJECT
Transcript
  • BRILLIANT BRUMBY

    Corporate Presentation AUGUST 2018

    STRICTLY PRIVATE & CONFIDENTIAL

    PROJECT

  • The information contained in this presentation does not comprise an admission document, listing particulars or a prospectus relating to Intergroup Mining Limited, does not constitute an offer or invitation to purchase or subscribe for any securities of Intergroup Mining Limited, does not constitute or form part of a prospectus of admission document and should not be relied on in connection with, or act as any inducement in respect of, a decision to purchase or subscribe for any such securities.

    The information contained in this presentation and any accompanying verbal presentation is: (i) confidential and is for informational purposes only and any may not be reproduced, distributed or otherwise disclosed to any other person or published, in whole or in part,

    for any purpose; (ii) does not constitute a recommendation regarding any decision to sell or purchase securities in Intergroup Mining Limited; and (iii) not intended to be used as the basis for making an investment decision. The presentation has been prepared without

    taking into account the investment objectives, financial situation or particular needs of any particular person. Unless otherwise specified, data and tables set out in this presentation are based on Intergroup Mining Limited management estimates.

    No reliance may be placed for any purpose whatsoever on the information or opinions contained in this presentation and any accompanying verbal presentation or the completeness, accuracy, or fairness of such information and/or opinions therein. No representation

    or warranty, express or implied, is given by or on behalf of Intergroup Mining Limited, its shareholders, directors, officers or employees or any other person as to the fairness, accuracy, completeness or correctness of the information, opinions and conclusions contained

    in this presentation and any accompanying verbal presentation. To the maximum extent permitted by law, neither Intergroup Mining Limited nor its shareholders, directors, officers or employees accept any responsibility or liability for: (i) any such information or

    opinions or for any errors, omissions, misstatements or otherwise; and (ii) any loss arising from the use of the information contained in this presentation or any accompanying verbal presentation. In particular, no representation or warranty, express or implied is given

    as to the accuracy, completeness or correctness, likelihood of achievement or reasonableness of any forecasts, projections, prospects or returns contained in this presentation nor is any obligation assumed to update such information. Such forecasts, prospects or

    returns are by their nature subject to significant uncertainties and contingencies. The past performance of Intergroup Mining Limited cannot be relied upon as a guide to its future performance. The price of shares can go down as well as up and shareholders may not

    recoup the amount originally invested.

    This presentation includes “forward-looking statements”. Forward-looking statements can generally be identified by the use of forward-looking words such as “may”, “will”, “expect”, “intend”, “plan”, “estimate”, “anticipate”, “believe”, “continue”, “objectives”,

    “outlook”, “guidance” or other similar words, and include statements regarding certain plans, strategies and objectives of management and expected financial performance. By its very nature, such forward looking information requires Intergroup Mining Limited to

    make assumptions that may or may not materialize. These forward-looking statements involve known and unknown risks, uncertainties and other factors, many of which are outside the control of Intergroup Mining Limited, and any of their officers, employees, agents

    or associates. Actual results, performance or achievements may therefore vary materially from any projections and forward-looking statements and the assumptions on which those statements are based. Readers are cautioned not to place any reliance on forward-

    looking statements and Intergroup Mining Limited assumes no obligation to update such information.

    No person has authorised the contents of, or any part of, this presentation under section 21 of the Financial Services and Markets Act 2000 ("FSMA"). This presentation and its contents are directed only at persons who fall within the exemptions contained in Articles 19

    and 49 of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (such as persons who are authorised or exempt persons within the meaning of the FSMA and certain other persons having professional experience relating to investments, high net

    worth companies, unincorporated associations or partnerships and the trustees of high value trusts) and persons to whom distribution may otherwise lawfully be made. Any investment, investment activity or controlled activity to which this presentation relates is

    available only to such persons and will be engaged in only with such persons.

    Persons of any other description, including those that do not have professional experience in matters relating to investments, should not rely or act upon this presentation. This presentation should not be distributed, published, reproduced or otherwise made available

    in whole or in part by recipients to any other person and, in particular, should not be distributed to persons with an address in the United States of America, Australia, the Republic of South Africa, the Republic of Ireland, Japan or Canada or in any other country outside

    the United Kingdom where such distribution may lead to a breach of any legal or regulatory requirement. The securities have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the “US Securities Act”) or with any securities

    regulatory authority of any state or other jurisdiction of the United States and, subject to certain exemptions, may not be offered or sold within the United States or to, or for the account or benefit of, any US Person as that term is defined in Regulation S under the US

    Securities Act. Intergroup Mining Limited has not been registered and will not register under the United States Investment Company Act of 1940, as amended.

    By attending any verbal presentation and/or accepting this presentation you agree to be bound by the foregoing limitations and restrictions and, in particular, will be taken to have represented, warranted and undertaken that you have read and agree to comply with

    the contents of this notice.

    The information described in this presentation may contain certain material information that is confidential, price-sensitive and which has not been publicly disclosed. By your receipt of this document you recognise and accept that some or all of the information in this

    document may be “inside information” as set out in Section 56 of the Criminal Justice Act 1993 (“CJA”) or as set out in Article 7 of the Market Abuse Regulation; EU Regulation 596/2014 (as applicable). You confirm, warrant and undertake that you will not: (i) deal in

    securities that are price-affected securities (as defined in the CJA) in relation to the insider information, encourage another person to deal in price-affected securities or disclose the information except as permitted by the CJA or before the inside information is made

    public; (ii) deal or attempt to deal in a qualifying investment or related investment (as defined in the FSMA) on the basis of the inside information; (iii) disclose the inside information to another person other than in the proper course of the exercise of your employment,

    profession or duties; or (iv) engage in behaviour based on any inside information which would amount to market abuse.

    DISCLAIMER

  • KEY HIGHLIGHTS

    PROLIFIC MINING REGION

    3 GENERATIONS OF MINING EXPERIENCE

    EXCELLENT EXPLORATION & DRILLING RESULTS

    MINING WORKS STARTED - DEC 2017.

    HIGH GRADE VEINS - VISIBLE GOLD – BULK TARGETS

    PRE - IPO

    1

    2

    3

    4

    5

    6

    7

    GOLD PRODUCTION SCHEDULED FOR Q4 2018

    TARGETED ONGOING DRILL PROGRAM TO EXPAND RESOURCES

  • PROLIFIC MINING REGION KEY HIGHLIGHTS

  • MULTIPLE MILLION OUNCE (MOz) GOLD DISCOVERIES NEARBY

    The Doyle Family The Doyle family has three generations of mining history and has participated in the discovery of several large resource properties, including the initial discovery and exploration of the Century mine, one of Australia’s primary silver/lead deposits.

    3 GENERATIONS OF MINING EXPLORATION EXPERIENCE WITHIN THE REGION

    PROLIFIC MINING REGION

  • WALTER DOYLE – MANAGING DIRECTOR & CEO Walter has over 30 years of experience of mining and resource properties in Australia. The Doyle family has three generations of mining history. Walter is a venture capitalist who is also a specialist in public equity markets worldwide. Most recently, he was behind the resurrection of Sirius Minerals (AIM:SXX) which was transformed from a destitute shell company into a potash business where the share price went from 2p to 32p, capitalising that company at >£1 Billion.. He is currently Managing Director of London listed NQ Minerals (ISDX:NQMI).

    BRIAN STOCKBRIDGE – DIRECTOR Brian Stockbridge is an investment banker, based in London. He has held senior positions with several well-respected City firms, including Grant Thornton, Noble & Company (now part of Espirito Santo Investment Bank), and Allenby Capital. In 2012, Brian opened the London office of the independent investment banking operation Zeus Capital. As a regulator at the Panel on Takeovers & Mergers, he was the primary case officer for over 150 transactions valued up to and over £1bn. Brian is experienced in raising funds for companies and is a former Qualified Executive for the purposes of AIM. In 2014, Brian set up International Financial Strategic Associates (IFSA), a boutique financial advisory and investment company. He is currently Non-Executive Chairman of London listed NQ Minerals (ISDX:NQMI)

    STEPHEN WHITE – DIRECTOR Stephen White is an investment banker specialising in start-up and growth phase enterprise. Over the last three decades, Stephen has been involved in a diverse cross section of industries, including property development, energy projects, finance, investment banking, export, environmental technologies and has wide experience in mining exploration, including gold and base metals, uranium, potash, phosphate, coal, and oil & gas. During this period Stephen has been on the Board of Directors of over 30 companies and performed the role of Managing Director / CEO of 13 of these companies (averaging over 5 years at each) – all of which were “Start-Up” enterprises. He has provided hands on Corporate Development advice to numerous North American and UK based public companies and has over 20 years experience in mergers and acquisitions in major public equity markets worldwide. He is currently a Director of Hellyer Gold Mine in Tasmania.

    KEVIN DOYLE – DIRECTOR Kevin Doyle have a lifetime of experience in mining and resource properties within the region, particularly gold, silver, lead, iron ore, uranium, thorium, tin and potash. He is based in Townsville and has a very strong hands-on approach, working closely with a highly experienced team of geologists. Kevin Doyle has a proven track record in locating properties with valuable resources and developing them to bankable stage.

    KEY HIGHLIGHTS

  • Mundic Breccia – much bigger than Kidston Mine (5MOz) & Mt Leyshon (3.5MOz)

    BRILLIANT BRUMBY

    Note: Jodo Gold Pty Ltd is a 100% owned subsidiary of Intergroup Mining Limited

    OAKEY CREEK

    Brandy Creek

    MINING LEASE AREA 2 historic mine sites

    (average 26g/t & 20g/t). Recent rock chip samples

    176g/t Au, 95g/t Au, 82g/t Au. Drill samples to 74g/t Au.

    Multiple Samples – Visible Gold UNDEREXPLORED AREA NEVER PREVIOUSLY DRILLED

    Historic Mine Average grade 51g/t Au

    Recent rock chip samples to 15g/t Au

    ML 100008

    2 km strike length for significant gold mineralization from surface to 120 meters +.

    Typical of quartz-vein

    mesothermal “Charters Towers style” gold

    mineralizing systems that are well known for their high

    grade and deep structures.

    MULTIPLE TARGETS mesothermal high grade narrow

    veins (Devonian) and

    bulk mineable (Permo-Carboniferous) Intrusion-Related Gold.

    Devonian

    Permo- Carboniferous Brilliant Brumby

    The Worm

    High Ridge

    Mundic Breccia

    High Ridge Samples up to >1oz/t Au, >1oz/t Ag, and Pb at >1%,

    91ppm As, 68ppm Bi, >100ppm Mo

    THE PROJECT AREA - Priority Targets

    Mining Commenced - Dec 2017 Gold Production Q4 2018

  • Gold was not discovered in the area until 1937 and led to the Mt Stewart gold rush. The initial mining was on the Surprise and Brilliant Brumby workings. At Surprise a shaft at least 34m deep produced 1,650 oz gold from 2600 tons, while the Brilliant Brumby has recorded production of 790 oz gold from 950 tons of ore. The extent of workings however suggests that more may have been produced but not officially recorded.

    3 HISTORICAL MINES – IN PROJECT AREA

    Brandy Creek – 51 g/t Au Brilliant Brumby – 26 g/t Au

    Surprise – 20 g/t Au AVERAGE GRADES

    HISTORICAL

    3 Shafts from Old Workings

  • Global Average 1.01 g/t

    Charters Towers 34 g/t

    Brilliant Brumby Historic

    Mine 26 g/t

    Brandy Creek Historic Mine 51 g/t

    BRILLIANT BRUMBY & SURPRISE HISTORICAL MINES

    AVERAGE GOLD GRADE

    Two mines (located in the Project Area EPM) was worked between 1937- 1940 producing 790 oz of gold from 950 tons of ore.

    26 g/t Au

    CHARTERS TOWERS HISTORICAL MINE

    AVERAGE GOLD GRADE

    This mine produced over 7 million oz of gold and is Australia’s richest major gold field

    34 g/t Au

    BRANDY CREEK HISTORICAL MINE

    AVERAGE GOLD GRADE

    QLD Mines annual reports from 1932-1935 record 83.5t of ore treated for 137.4 oz. of gold at a grade of 51 g/t Au

    51 g/t Au

    GLOBAL GOLD MINES PRODUCING & UNDEVELOPED

    AVERAGE GOLD GRADE

    GLOBALLY

    After examining all 580 gold deposits held by public, private and government backed companies here is what was found. (Source: Natural Resource Holdings)

    1.01 g/t Au

    HISTORICAL GOLD GRADES vs. GLOBAL AVERAGE

  • OUTSTANDING SAMPLE RESULTS OUTSTANDING SAMPLE ASSAYS

    1331 Surface Geochemical Samples

    428 Rock Chip Samples 176 g/t Gold 95.7 g/t Gold 82.2 g/t Gold Multiple >20 g/t Gold

    208 Stream Sediment Samples 171,000ppb Au

    6,790ppb Au 4,780ppb Au

    647 Soil Samples EXCELLENT RESULTS

    GOLD NUGGETS FROM SEDIMENT SAMPLING

  • RARE SAMPLE CHARACTERISTICS MULTIPLE SAMPLES CONTAIN VISIBLE GOLD

  • EXCELLENT EXPLORATION & DRILLING RESULTS

    CONFIRMATION that widespread surface mineralisation continues down

    hole with high grade drill samples up to 74.1 g/t Au that the mineralisation has not been closed off at depth or

    along strike to the north. the characteristics of the deposits have mesothermal

    characteristics similar to Charters Towers style mineralised systems (depth & high grade potential).

    EXCEPTIONAL DRILLING RESULTS

    Two Successful Drill Programs

    4,633 meters of drilling

    2992 Drilling Samples High Grade Drill Samples up to 74.1 g/t Au

    Drill Programs to date tested 550m of the mapped ~2,400m of lodes on the Brilliant Brumby Line.

  • BRILLIANT BRUMBY MINING LEASE AREA – Brilliant Brumby

    Note: Jodo Gold Pty Ltd is a 100% owned subsidiary of Intergroup Mining Limited

    Recent construction of the EBBAR road up the Lolworth Range to the

    Mining Lease.

  • Fully Permitted

    2km

    MINING LEASE AREA

  • HIGH GRADE NARROW VEINS

    Mineralisation has not been closed-off at depth nor along strike.

  • BRILLIANT BRUMBY GOLD MINING COMMENCEMENT Extensive work is now being carried out to

    Expose the gold bearing quartz

    Stockpile ore for processing

    Prepare drill pads for further exploration

  • BULK SAMPLING

    STOCKPILE FOR

    Extensive stockpiling and separation of ore has taken place since December 2017. The rationale for the work includes commencement of early cash flow operations once production equipment is commissioned.

    BULK SAMPLING

  • KEY HIGHLIGHTS GOLD EXTRACTION TESTING Kev Doyle (2017) collected a composite quartz sample of 134 kg from the mullock dumps at Brilliant Brumby (40 g), BB North (80 kg), Mystery East (10 kg) and Blue Doe (2kg; EPM 18510). The sample was crushed to -0.6mm and processed through a hydraulic gold concentrator resulting in 10.8 g of gold recovered, i.e. a head grade of 63.5 g/t Au.

  • KEY HIGHLIGHTS

    Production plant and equipment is expected to be on site in Q3 2018, ready for installation and commissioning Q4. Tailings areas are being prepared, ready for gold production.

    GOLD PRODUCTION

  • Excellent results have been obtained on gold ore from the Brilliant Brumby Project.

    The aim of the test work was to determine the amenability of the ore to Gekko Python processing technology and in particular to determine the maximum gold recovery. It was found that:

    The calculated head grade from the 54.32 kg Two Stage CGR test was 8.74 g/t Au. This compared well to the calculated head grade derived from the 1 kg grade by size analysis of the minus 1.18 mm feed, which was 8.38 g/t Au.

    Combined Two Stage CGR, Single Pass Knelson and flotation gave an outstanding overall gold recovery of 97.5% into 5.84% of the mass at a concentrate grade of 135.8 g/t Au.

    RECOVERY TESTWORK

    CRUSHER SHAKING TABLE

    LAB SCALE EQUIPMENT

    CONCENTRATOR FLOTATION UNIT

  • SURPRISE

    Steve asked me what my view of the best revenue potential was. Based the half-ounce/t Au quartz sample from 7m depth at the south end of Surprise, and on the historic 1 oz/t figures from there, Surprise looks the best high-grade option to me at the moment. It also has the advantage of being in deeply weathered ground (more easily excavated near surface) and has potential below the cover to the north. Silica Ridge has some wider drill hole intersections, possibly suitable for an open pit. The costeaning confirmed that the gold persists to the surface there. Additional costeaning (and drilling) will provide the information needed on the shallow production potential on the other lodes.” Regards, Jim.

    CHIEF GEOLOGIST – ON STRATEGY & SURPRISE (Feb 2018) “At Surprise, Kev’s idea of a ramp down from the south to the old workings looks “right on the money” (see attached long section). The reef there seems to have good continuity over 50 to 100m or more. The continuity of the reef suggests focused ore-fluids there and that It may well keep going at depth as the attached conceptual section shows.

    CONCEPTUAL EXTENSION OF SURPRISE REEF

  • HIGH RIDGE Rock chip sample assays up to >1oz/t Au, >1oz/t Ag, and Pb at >1%, 91ppm As, 68ppm Bi, >100ppm Mo. Gold / silver / lead combination suggests a large target. The generally elevated Mo and Bi suggests the possibility of a younger Permo-Carboniferous component to the mineralisation. Working hypothesis is that the 3km N-S zone of alteration is the main ore channel way and that the gold deposited in brittle zones off the main fracture. The best gold often drops out in the complex fracture array at the end of major mineralised faults in places where the best fluid flow occurred. The highest grades at Golden Spur seem to fit this concept. These zones can have considerable vertical extent.

    BULK TARGET – Permo Carboniferous

  • BULK TARGET – Gold Bearing Breccia

    OAKEY CREEK – Mundic Breccia The Oakey Creek EPM represents a compelling prospect. Extensive research of the open file data was undertaken which highlighted untested gold potential. Definitive parameters are the known presence of gold, breccias and rhyolites. The principal target is the “Mundic Breccia” which lies within the Mundic Igneous Complex (Clarke & Paine, 1970) and is now believed to be of Early-Mid Permian age (Jell, 2013, p.494). The breccia is larger than the those which host the Kidston and the Mt Leyshon 3 to 5 Moz gold orebodies .

    OAKEY CREEK Mundic Breccia

    outline

    Outline of Mundic Breccia at Oakey Creek with insets at same scale

    Kidston Gold Mine

    Breccia (5 million oz Au)

    Mt Leyshon Gold Mine Breccia

    (3.5 million oz Au)

    5 sq. km. breccia on the same regional structure as Mt Leyshon Exploration to date - no drilling - no soil geochemical assays - only 3 rock chip samples.

  • BRANDY CREEK NW of Brilliant Brumby

    Based on the similarity of the mineralisation to that on the 2 km strike length Brilliant Brumby Line to east where shallow resources are inferred, the known Brandy Ck strike length may conceptually host resources of a quarter to a third of those at Brilliant Brumby. The highest gold values were found on the north western workings with 6 samples over 100m strike ranging from 2.5 to 11.5 g/t Au, averaging 7.3 g/t Au. Other high gold assays included 15.2 and 4.3 g/t Au in the south eastern group.

    BRANDY CREEK

    Geological mapping Brandy Creek pits (J Morrison).

  • TARGETED ONGOING DRILL PROGRAM An extensive ongoing drill program is planned as outlined below.

    Drill program preparation.

    EXPANDING RESOURCES

  • GOLD IN QUARTZ BRILLIANT BRUMBY

    GOLD NUGGETS FROM SEDIMENT SAMPLING AT THE WORM

    PANNED GOLD FROM DRILL CHIP BRILLIANT BRUMBY

    Whilst the Brilliant Brumby has been recognised as a mesothermal Charters Towers style vein system, the mineralisation in the northern part of the Mining Lease application area has cross-cut dyke rocks which may be of Permo-Carboniferous age, west of the Surprise. The Company’s geologists advise that this, in conjunction with the presence of Permo-Carboniferous intrusions on the eastern side of the project area, has the potential to upgrade the prospectivity of the region. If the mesothermal vein mineralisation at Brilliant Brumby is of older (Charters Towers) age, now exposed through 400 million years of erosion, it formed much deeper in the crust (higher pressures) where ore widths are constrained by pressure. If the mineralisation formed at a younger Permo Carboniferous age, the mineralisation is less eroded and formed in a lower pressure environment where greater widths of breccia-hosted mineralisation could have formed and be preserved. This possibility is encouraging, however it needs further testing in the area to confirm. The Mt Leyshon (3+ million oz. Gold), Mt Wright (1+ million oz. Gold) and Ravenswood (4+ million oz. Gold) gold mines are evidence of mineralisation from this Permo-Carboniferous era. The Mundic Igneous Complex which runs through the eastern side of the tenements contains some breccias and is also of this age.

    GOLD PROLIFERATION

  • INDEPENDENT ANALYST REPORT

    Download Analyst Report

    https://www.igmining.com/wp-content/uploads/2018/08/InterGroup-Mining-Report-31-July-2018.pdf

  • SUMMARY OVERVIEW

    PROLIFIC MINING REGION

    3 GENERATIONS OF MINING EXPERIENCE

    EXCELLENT EXPLORATION & DRILLING RESULTS

    MINING WORKS STARTED - DEC 2017.

    HIGH GRADE VEINS - VISIBLE GOLD – BULK TARGETS

    PRE - IPO

    1

    2

    3

    4

    5

    6

    7

    GOLD PRODUCTION SCHEDULED FOR Q4 2018

    TARGETED ONGOING DRILL PROGRAM TO EXPAND RESOURCES

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