Fraser Range Acquisition
Nickel, Copper and Gold Exploration in Western Australia
DISCLAIMER
Disclaimer
• This presentation has been prepared by Segue Resources Limited (Segue or the Company). It contains general information about the Company’s activities current as at the date of the presentation. The information is provided in summary form and does not purport to be complete. This presentation is not to be distributed (nor taken to have been distributed) to any persons in any jurisdictions to whom an offer or solicitation to buy shares in the Company would be unlawful. Any recipient of the presentation should observe any such restrictions on the distribution of this presentation and warrants to the Company that the receipt of the presentation is not unlawful. It should not be considered as an offer or invitation to subscribe for or purchase any securities in the Company or as an inducement to make an offer or invitation with respect to those securities. No agreement to subscribe for securities in the Company will be entered into on the basis of this presentation or any information, opinions or conclusions expressed in the course of this presentation.
• This presentation is not a prospectus, product disclosure document or other offering document under Australian law or under any other law. It has been prepared for information purposes only. This presentation contains general summary information and does not take into account the investment objectives, financial situation and particular needs of any individual investor. It is not financial product advice and investors should obtain their own independent advice from qualified financial advisors having regarding to their objectives, financial situation and needs. Segue nor any of their related bodies corporate is licensed to provide financial product advice.
• This presentation and information, opinions or conclusions expressed in the course of this presentation contains forecasts and forward looking information. Such forecasts, projections and information are not a guarantee of future performance, involve unknown risks and uncertainties. Actual results and developments will almost certainly differ materially from those expressed or implied.
• There are a number of risks, both specific to Segue, and of a general nature which may affect the future operating and financial performance of Segue, and the value of an investment in Segue including and not limited to title risk, renewal risk, economic conditions, stock market fluctuations, manganese demand and price movements, timing of access to infrastructure, timing of environmental approvals, regulatory risks, operational risks, reliance on key personnel, reserve estimations, native title risks, foreign currency fluctuations, and mining development, construction and commissioning risk.
• You should not act or refrain from acting in reliance on this presentation, or any information, opinions or conclusions expressed in the course of this presentation. This presentation does not purport to be all inclusive or to contain all information which its recipients may require in order to make an informed assessment of the prospects of Segue. You should conduct your own investigation and perform your own analysis in order to satisfy yourself as to the accuracy and completeness of the information, statements and opinions contained in this presentation before making any investment decision. Recipients of this presentation must undertake their own due diligence and make their own assumptions in respect of the information contained in this presentation and should obtain independent professional advice before may any decision based on the information. No representation or warranty, express or implied, is made in relation to the fairness, accuracy or completeness of the information, opinions and conclusions expressed in the course of this presentation. To the maximum extent permitted by law, no representation, warranty or undertaking, express or implied, is made and, to the maximum extent permitted by law, no responsibility or liability is accepted by the Company or any of its officers, employees, agents or consultant or any other person as to the adequacy, accuracy, completeness or reasonableness of the information in this presentation. To the maximum extent permitted by law, no responsibility for any errors or omissions from this presentation whether arising out of negligence or otherwise is accepted. An investment in the shares of the Company is to be considered highly speculative.
• The exploration targets or conceptual exploration targets in this presentation or expressed during the course of this presentation are subject to completion of the necessary feasibility studies, permitting and execution of all necessary infrastructure agreements. In relation to any statements pertaining to future exploration targets or conceptual exploration targets, the nature of the exploration target means that the potential quantity and grade is conceptual in nature, that there has been insufficient exploration to define a Mineral Resource and that it is uncertain if further exploration will result in the determination of a Mineral Resource.
• This presentation and information, opinions or conclusions expressed in the course of this presentation should be read in conjunction with Segue's other periodic and continuous disclosure announcements lodged with the ASX, which are available on the Segue website.
• Some statements in this presentation regarding future events are forward-looking statements. They involve risk and uncertainties that could cause actual results to differ from estimated results. Forward-looking statements include, but are not limited to, statements concerning the Company’s exploration programme, outlook and target sizes. They include statements preceded by words such as “potential”, “target”, “scheduled”, “planned”, “estimate”, “possible”, “future”, “prospective” and similar expressions.
• The information in this presentation that relates to Exploration Results or Mineral Resources at the Pardoo Project is based on information compiled or reviewed by Mr Peter Langworthy, Consulting Geologist, who is a Member of the Australian Institute of Mining and Metallurgy. Mr Peter Langworthy has sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration and to activities undertaken, to qualify as a Competent Person as defined in the 2004 Edition of the “Australasian Code of Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr Peter Langworthy consents to the inclusion in the presentation of the matters based on the information in the form and context in which it appears.
FRASER RANGE ACQUISITION HIGHLIGHTS
•
Segue Resources is to control 3,538km
2
of exploration licences in the highly
prospective Albany-Fraser Range Province in Western Australia
•
Fraser Range Province hosts Sirius Resources’ Nova-Bollinger nickel-copper deposit
and the Tropicana gold project (AngloGold Ashanti/Independence Group)
•
Segue to become one of the largest tenement holders in the Fraser Range with
three exploration projects – Plumridge Nickel, Plumridge Gold and Deralinya
•
Plumridge is highly prospective for nickel/copper and has previously been explored for
gold with several deposits identified
•
Pipeline of prospects from grass roots to advanced exploration
•
Consideration is predominantly equity – conserving cash for exploration
ACQUISITION TERMS
•
Segue is to acquire three private companies for a
combination of cash and shares
3
Company
Cash
Shares
1
Tenement
Area
Fraser Range Resources
2
$200,000
$700,000
2,130km
2
Becrux
-
$200,000
698km
2
Distant Island
-
$200,000
710km
2
Total
$200,000
$1,100,000
3,538km
2
•
Majority of tenements are owned 100%
•
Segue to spend $1 million by 31 January 2015 to earn a
60% interest in Plumridge JV
Plumridge Nickel & Gold
Deralinya
1. Shares are being issued at Segue’s 20-day VWAP of $0.002 per share. 2. Fraser Range Resources includes the Plumridge Joint Venture.
Fraser Range Tenements
Source: Segue Resources
Nova
PLUMRIDGE PROJECT
•
Plumridge tenements (2,240km
2
) covering
the northern end of the Fraser Range
•
Significant land package with limited
nickel-copper exploration to date
•
Fraser Range Zone is highly prospective for
nickel-copper (Nova-style) deposits
•
Primary exploration targets are Nova-type
intrusions – “eye” magnetic signature
•
Phased exploration programme with proven
technologies and methodology
•
Eastern Biranup Zone well endowed with
gold anomalies, mineralisation and deposits
4
Plumridge Tenements
PLUMRIDGE NICKEL PROJECT
•
Fraser Range generally has limited outcrop with cover
of ~40m in the Plumridge Project area
•
Excellent geophysics – gravity, airborne magnetics,
ground magnetics and electro-magnetics
•
Nova deposit is hosted within a distinct “eye” magnetic
feature interpreted to be a late stage intrusion
•
Nova-type “eyes” are discrete targets, readily and
cost-effectively testable for nickel sulphide targets
Source: Sirius Resources NL, November 2012
5
•
Segue has identified several “eye” type targets at the Plumridge Nickel Project
•
Exploration programme will systematically evaluate and prioritise “eye” targets
•
Drill testing of the highest prospectivity nickel targets
NOVA-STYLE EXPLORATION MODEL
Phased “decision tree” exploration programme:
1. Identify Nova-type “eye” targets from high resolution
aeromagnetic data
2. Identify mafic and/or conductor-bearing targets from
ground EM traverses across “eyes”
3. Identify high bedrock nickel mafic and/or conductor zones
from bedrock air core drill lines
4. Define strike-continuous, high bedrock nickel conductors
from adjacent air core drill lines and ground EM traverses
5. RC drill most strike extensive high bedrock nickel
conductive plate targets
6. Down hole EM to refine conductive plates and RC drill
DHEM-refined plates
Source: Geological Survey of WA
6
PLUMRIDGE NICKEL WORK PROGRAMME
7
Activity
Timing
Details
High Resolution
Aeromagnetic Survey
4Q 2013
High resolution aeromagnetic surveys over ~40 “eye” targets
identified from existing magnetic data
Selection of 15-20 most prospective “eye” targets for field work
Ground EM traverses
1Q 2014
Ground EM traverses over each “eye” target
Selection of mafic and/or conductor-bearing “eye” targets for
follow-up air core bedrock drill sampling
Bedrock air core drilling
programme
1Q 2014
Drill lines across selected mafic and/or conductor bearing bodies
Selection of high bedrock nickel, mafic and/or conductor bodies for
follow up detailed EM and air core drilling
Ground EM surveys and
air core drill lines
2Q 2014
Ground EM traverses and air core drill lines over each selected high
bedrock nickel target
Selection of strike continuous high bedrock nickel conductor plates
for RC drill testing in 2H 2014
PLUMRIDGE GOLD PROJECT
•
Significant historical exploration for gold on the western
portion of the Plumridge tenements
•
Several gold prospects discovered by International
Goldfields including the very large Corvette gold anomaly
•
Recent oriented diamond drilling and structural analysis
has identified a brittle/ductile gold system
•
PIMA alteration mineral chemistry study underway to
identify gold-bearing fluid pathways
•
Integration of structural and fluid pathways knowledge will
provide new drill targets for testing in 2H 2014
8
Kanowna Belle PIMA Study
DERALINYA PROJECT
•
Deralinya tenements (1,298km
2
) on the
southern end of the Fraser Range
•
Prospective for:
• “Archean Ida fault” extension type gold
• Shear zone hosted gold
• Palaeochannel/shoreline mineral sands
• Palaeodrainage/salt lake uranium
•
Several radiometric uranium/thorium
anomalies on the margins of salt lakes
9
Deralinya Tenements
TRANSACTION AND CAPITAL STRUCTURE
•
Non-refundable deposit of $200,000 paid out of existing cash reserves
•
Issue of 550 million shares
•
Transaction is subject to Segue shareholder approval
•
Notice of Meeting will include Independent Experts Report and Fairness Opinion
10
Shares
% of Total
Current shares on issue
536.9m
50%
Fraser Range Resources
350.0m
32%
Becrux
100.0m
9%
Distant Island
100.0m
9%
RECENT FRASER RANGE TRANSACTIONS
11
Company
Code
ASX
Date
Project
Interest
Consideration
3
Area
(km
2
)
Cash
Shares
Spend
Segue Resources
SEG
Sep 13
Plumridge
100%
1
$0.20m
$1.10m
-
3,520
Orion Gold
ORN
Aug 13
Peninsula
70%
2
-
$1.95m
-
2,628
Windward Resources
WIN
Jul 13
Fraser Range South
70%
2
$3.00m
$4.40m
-
8,333
Rumble Resources
RTR
Jul 13
Fraser Range
100%
$0.12m
-
-
200
Windward Resources
WIN
Dec 12
Fraser Range South
70%
2
-
-
$0.60m
767
Pioneer Resources
PIO
Oct 12
Fairwater
75%
$0.04m
$0.41m
-
338
1. Eight tenements owned 100% and Segue can earn a 60% interest in the Plumridge JV (four tenements) 2. 30% partner is free carried until completion of a Bankable Feasibility Study
3. Value of shares is based on share price at the time of the transaction
Source: Company announcements, Segue Resources
0
2,000
4,000
6,000
8,000
10,000
WIN
ORN
SEG
PGM
BUX
SIR
PIO
SFX
PLD
AXC
HRR
ENT
AQD
MAT
RMR
BOA
CLZ
RTR
SUMMARY
•
One of the largest tenement holders in the Fraser Range Province with over 3,500km
2
of exploration tenements
•
Exploration to commence immediately and funded out of existing cash reserves
•
Focus on Plumridge Nickel Project and Nova “eye” signatures
•
Phased exploration programme to establish high priority drill targets by 1H 2014
•
Purchase consideration is primarily shares with little cash outlay
•
Low entry price for a dominant tenement package in the Fraser Range Province
CORPORATE SUMMARY
ASX stock code:
SEG
Share price:
0.3¢
Shares on issue:
536.9m
Options on issue:
11.8m ($0.051, 8/11/14)
25.0m ($0.01, 18/2/18)
Market capitalisation: $1.6m
Cash at bank:
$1.1m
As at 26 September 201313
Pro-Forma Shareholder Analysis (Post Transaction)
Company Overview
Source: Advanced Share Registry
Share Price Performance
Source: CommSec
Board &
Management
2%
Australian
Investors
48%
Overseas
Investors
7%
Fraser Range
21%
Becrux
11%
Distant Island
11%
Directors
Steven Michael
Managing Director
Dr Howard Carr
Technical Director
Nicholas Ong
Non-Executive Director
Matthew Foy
Non-Executive Director
-¢
0.1¢
0.2¢
0.3¢
0.4¢
0.5¢
Ja
n 1
3
Feb 1
3
Ma
r 1
3
Ap
r 1
3
Ma
y
13
Ju
n 1
3
Ju
l 1
3
Aug
13
Sep 1
3
PARDOO NICKEL PROJECT
•
Pardoo Nickel Project remains highly prospective for
magmatic sulphide nickel-copper deposits
•
Highway deposit is likely the result of structural
remobilisation within the Pardoo Fault zone
•
Field work has commenced to identify new targets
for detailed ground EM
14
Material
Tonnes
Nickel
Copper
Weathered
Sulphide
5.5mt
0.25%
0.18%
Fresh Sulphide
44.5mt
0.31%
0.12%
Total
50.0mt
0.30%
0.13%
Highway Inferred Resource Estimate
Nickel cut-off grade of 0.1% Ni
