For personal use only - Australian Securities Exchange · 2 brumbyresources.com.au This presentation has been prepared by Brumby Resources Limited (“ rumby” or the “ ompany”)

EXPLORATION REVIEW & STRATEGY

BOARD MEETING | MAY 2011 | PRESENTED BY ALISON MORLEY

ASX: BMY brumbyresources.com.au

INVESTOR PRESENTATION | MAY 2012| PRESENTED BY ALISON MORLEY

ASX: BMY brumbyresources.com.au

For

per

sona

l use

onl

y

brumbyresources.com.au 2

This presentation has been prepared by Brumby Resources Limited (“Brumby” or the “Company”). 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.

This presentation contains forward looking information. Such forecasts, projections and information are not a guarantee of future performance and involve unknown risks and uncertainties. Actual results and developments will almost certainly differ from those expressed or implied. To the maximum extent permitted by applicable laws, Brumby takes no responsibility and assumes no liability for, the authenticity, volatility, accuracy, suitability or completeness of, or any errors in or omission, from any information, statement or opinion contained in this presentation.

You should not act or refrain from acting in reliance on this presentation material. This overview of Brumby does not purport to be all inclusive or to contain all information which it’s recipients may require in order to make an informed assessment of the Company’s prospects. You should conduct your own investigation and perform and own analysis in order to satisfy yourself as to the accuracy and completeness of the information, statements and opinions contained in this presentation.

Disclaimer Notice

For

per

sona

l use

onl

y


A Genuine Greenfields Explorer

Manganese - Oakover (WA)

Base Metals - Caranbirini, Yalco North and McArthur (NT)

Brumby was founded and floated by the late Graeme Hutton, one of the

pre-eminent prospecting geologists of the last few decades.

Graeme Hutton discoveries - Sandfire Resources, Metana Minerals, DFD Rhodes

(Hope Downs, Jimblebar, McCameys, Rhodes Ridge), Kimberley Diamond Co

Exploration Priorities

For

per

sona

l use

onl

y


Board

• Geoff Jones Chairman

• ex-Resolute Resources, 27 years in resource project development

• Director of Azumah Resources Ltd and Energy Metals, COO GR Engineering Services

• John Hutton Director

• ex-Sandfire Resources,

• Director of RNI Ltd and Marine Produce Australia Ltd

• Tom Henderson Director

• Corporate Finance, Forrest Capital

• Director of Fitzroy Resources and Everyday Mine Services

CEO

• Alison Morley

• Underground Mine Geologist with Pasminco at Broken Hill, and Superintendent Mine Geology at Isa Lead

and George Fisher mines.

• SRK Consulting for 7 years; due diligence, valuation of resource projects and economic modelling

• Joined BMY as CEO in December 2010.

Corporate

For

per

sona

l use

onl

y


Total shares on issue 171.7M Unlisted Options • 5.3 M @ $0.24 (May 2013) • 1.0 M @ $0.25 (Dec 2013) • 5.5 M @ $0.15 (Nov 2014) Current Share Price • $0.08 @ 4 May 2012

Market Cap • $13.7 M

Corporate

Top 20 Shareholders 42.4%

Nutsville Pty Ltd 9%

John Hutton 7%

Independence Group 4%

Cash in bank (March quarterly) $1.0M

For

per

sona

l use

onl

y


• Oakover & Ethel Creek (Mn)

• McArthur & Caranbirini

(ZnPbAg)

Project Locations

For

per

sona

l use

onl

y


Project Locations

East Pilbara Mn Province

Two new Mn mining developments of similar geological style hosted by same rocks as BMY’s Oakover project: • Ant Hill (Mineral Resources) • Nicholas (Balfour) Downs (Mineral

Resources / HPPL) Brumby has made a significant greenfields Mn discovery – Inferred Mineral Resource

of 27Mt @ 10.2% Mn at 8% Mn cut off.

Numerous untested or partially tested new Mn targets on BMY tenements Access to regional infrastructure F

or p

erso

nal u

se o

nly


The Manganese Market

China became a net importer of manganese alloy for the first time in 2009 and this trend continues in 2011 and early 2012.

For

per

sona

l use

onl

y


What’s so good about Manganese?

94% of Mn is used in steelmaking to increase strength, toughness, hardness and malleability – there are no satisfactory substitutes for Mn in steel making A “green” metal: • Alkaline battery industry • Research into use in photovoltaic cells Currently unable to substitute or recycle Mn F

or p

erso

nal u

se o

nly


Sixty Sixer

JayEye

Karen

Oakover Target Overview F

or p

erso

nal u

se o

nly


Oakover RC drilling

Full results for Phase 1 (black dots) were reported in BMY’s 25/1/2012 release to the ASX

For

per

sona

l use

onl

y


For

per

sona

l use

onl

y


Maiden Mineral Resource – Sixty Sixer prospect

Full results were reported in BMY’s 28/3/2012 release to the ASX

Domain

Tonnes Mn Fe Al2O3 BaO SiO2 Resource

Category (Mt) (%) (%) (%) (%) (%)

All 27 10.2 9.1 9.8 0.1 39.3 Inferred

*Figures may not sum due to rounding, significant figures do not imply an added level of precision

Sixty Sixer prospect – Mineral Resource summary, 8% Mn cutoff

Competent Persons’ Statement

The information in this report that relates to Mineral Resource Estimate and Reporting is based on information compiled by Robert H Spiers (BSc (Hons), MAIG), who is a Member

of The Australasian Institute of Geoscientists. Robert Spiers is a full time employee of H&S Consultants Pty Ltd and 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 2004 Edition of the

‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Spiers consents to the inclusion in the report of the matters based on his

information in the form and context in which it appears.

For

per

sona

l use

onl

y


• 9 samples tested from Sixty Sixer and Karen Projects, varying head grades, 3.4 SG, HLS

• The average beneficiated product from all

testwork samples from Sixty Sixer with a head grade of >10% Mn was 36% Mn, with an average yield for this subgroup of 25.3%

• Preliminary results - completely unoptimised

Beneficiation results (May 2011)

Full results were reported in BMY’s 27/5/2011 release to the ASX

For

per

sona

l use

onl

y


Regional Targeting

Untested Mn outcrop at Taya - significant

potential

For

per

sona

l use

onl

y


Defining Commercial Potential • Sixty Sixer

• March 2012 - Inferred Mineral Resource completed • April 2012 - Second round of RC pattern drill completed - • May 2012 - Assays returned • June/July 2012 - Updated Mineral Resource • Q3 2012 - Pattern drill at JayEye prospect, further

metallurgical beneficiation testwork planned • Q4 2012 - Scoping study

• Oakover Potential

• Q3 - Taya ridge exploration drilling • Significant numbers of nearby targets

Oakover Strategy F

or p

erso

nal u

se o

nly


NT

McArthur,

Yalco North

and

Caranbirini

Projects

McArthur River Mine - Xstrata 227Mt @ 4.1% Pb, 9.2% Zn and

41.0g/t Au

For

per

sona

l use

onl

y


McArthur River Mine - Xstrata

• Operating since 1995, open cut from 2006, $270m expansion planned for end 2012

• Will increase capacity from 2.5Mtpa to 5.5Mtpa and produce nearly 800,000t of zinc-lead concentrate a year

• Expansion to increase McArthur’s mineable reserves from 53Mt to 115Mt and extend the life of the mine by nine years to 2036

• M+ I Resource – 162Mt @10.7% zinc, 4.47% lead, 48g/t silver

• Annual operating profit of $105m on Aust. Zn-Pb in 2011 F

or p

erso

nal u

se o

nly


McArthur Diamond Drilling - Dec 2011

• One diamond hole of 4 hole programme drilled before rain halted work • Drilling of three remaining holes expected in 2012 after access is possible • Elevated Zn and Mn values were intersected • Results confirm that geophysical anomaly warrants further investigation

For

per

sona

l use

onl

y


McArthur Diamond Drilling

4m @ 0.11% Zn from 209m

1m @ 0.13% Zn from 220m

Elevated Mn

Full results were reported in the December 2011 Quarterly Announcement to the ASX

For

per

sona

l use

onl

y


• 6 x diamond holes @ 1200m planned in 2012 to test VTEM anomalies

• AAPA authorisation granted in Feb 2012 allowing access

McArthur Leases - Caranbirini

From Rox Resources website

For

per

sona

l use

onl

y


McArthur Leases – Yalco North

• New targeting work done by Margy Hawke

• Digitised 1990s MIM soil samples for first time – not followed up at depth

• Combined with structural analysis and local knowledge

• Preliminary reconnaissance underway, geochemical surface sampling expected as part of 2012 field programme F

or p

erso

nal u

se o

nly


Summary

• BMY met key targets in 2011/12 -announcement of maiden Mineral Resource at Oakover

• Significant upside from expected Mineral Resource update and drilling of identified Mn targets

• Mn and base metals - highly sought after commodities

• NT base metal targets – all permitting, targetting, planning complete F

or p

erso

nal u

se o

nly


The information in this report that relates to Exploration Results is based on information compiled by Alison Morley (BSc (Hons), MSc, GradDipAppFin, MAusIMM (CP)) , who is a Member of The Australasian Institute of Mining and Metallurgy. Alison Morley is an employee of Brumby Resources Ltd and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which she is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Ms Morley consents to the inclusion in the report of the matters based on her information in the form and context in which it appears.

Competent Person’s Statement

For

per

sona

l use

onl

y

Documents

For personal use only - Australian Securities Exchange · 2 brumbyresources.com.au This presentation has been prepared by Brumby Resources Limited (“ rumby” or the “ ompany”)