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Capital Investment Partners AFSL 292416
Mamba Minerals Limited
Iron Ore Developer
Summary
Mamba Minerals Limited (“Mamba” or “MAB”) has entered into an
agreement to acquire Altius Resources Inc.’s (“Altius”) Snelgrove
Lake Project (“Snelgrove Lake”) located in Newfoundland,
Canada. Past exploration activity has demonstrated the high
potential of Snelgrove Lake.
Post the initial $6.5m exploration spend Altius will receive an ef-
fective 20% equity position and a 3% royalty, plus $410,000 for
costs incurred to date.
2 August 2012 ASX Code MAB
Industry Metals
& Mining
Country of Operation Canada
Share Price A$0.055
Market Capitalisation A$7.2m
Estimated Cash A$1.0m
Enterprise Value A$6.2m
Board / Senior Management
Greg Burns To be appointed
Neville Bassett Non Exec Director
Robert Hyndes Non Exec Director
Kurt Stahl | Director - Investor Relations
+61 8 9421 2111 | [email protected]
Capital Structure (current)
Current Shares on Issue 130.9m
Listed Options @ A$0.05
(30/6/13) 104.3m
Figure 1 : Snelgrove Iron Formation
Company Highlights
Prominent iron formation with 33km of strike, 200m wide,
potential for both DSO and a multi-billion tonne magnetite
deposit
Exploration permit has been issued with 3,000m of drilling to
commence in Sep 2012 and results expected end of November
2012
Located within Canada’s premier iron ore district, the Labrador
Trough, with 45Mt produced in 2011 expanding to 80Mt in
2015
65km east of heavy gauge rail connection at Schefferville with
available capacity and 565 km from Schefferville to the Port of
Sept-Îles
Hydropower available 45km from Snelgrove Lake at around
C$0.04/kwh
The Port of Sept-Îles is currently undergoing a C$220 million
expansion increasing the port capacity to 50 million tonnes
per annum by March 2014
Capital Structure (post acquisi-
tion, placement and 1 for 5 con-
solidation)
Proforma Shares on Issue 40.2m
Listed Options @ A$0.25
(30/6/13) 20.9m
Unlisted Options @
A$0.25 (30/9/15) 17m
Performance Shares 32m
Figure 2 : Airborne magnetic survey
Mamba Minerals Limited
2 August 2012
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There is significant activity within Canada’s Labrador Trough which is the premier iron ore disctrict in
North America with numerous projects underway including with Tata Steel, Rio Tinto, Cliffs Natural Re-
sources and ArcelorMittal.
Altius has a proven track record of sourcing Labrador iron ore projects including Alderon Iron Ore Corp’s
(Market cap of C$245M) Kami Iron Ore Project and Century Iron Mines Corporation’s (Market cap of
C$104M) Astray, Grenville, Menihek and Schefferville Iron Ore Projects
Menihek Hydro Power Station Labrador Iron—Schefferville Project
Snelgrove
QNSL Railway to the Port of Sept-Îles
Figure 3 : Labrador Trough Expanding to 80Mtpa Iron Ore Production
Mamba Minerals Limited
2 August 2012
Equities
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Capital
Investment
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DISCLOSURE & DISCLAIMER In accordance with Section 949A of the Corporations Act 2001, Capital Investment Partners (“CIP”) AFSL 292416 advise this document contains general advice only, it does not constitute personal advice or a securities recommendation. CIP has not taken into account the investment objectives, financial situation and particular needs of any person. CIP advise that you should not act on any recommendation without first consulting your own investment adviser in order to ascertain whether the recommendation (if any) is appropriate, having regard to your investment objectives, financial situation and particular needs. CIP believe the information and general advice contained in this publication is accurate as at the time and date of issue. To the fullest extent permitted by law, each of CIP and its directors, officers, employees and advisers excludes and disclaims all liability for any direct or indirect expenses, losses, costs or damages whatsoever arising in any way for any representation, act or omission, whether express or implied (including responsibility to any person by reason of negligence). Except for any liability that cannot be excluded by law, CIP does not accept any responsibility in relation to the Information or the general advice.
CIP its principals, consultants, associates and employees advise that they hold securities in MAB, may have an interest in and/or earn fees and other benefits or advantages, either directly or indirectly from the transaction mentioned in this letter of offer. CIP and its directors, officers, employees, associates, advisers and/or nominees will receive 19.5 million performance shares in MAB (post 1 for 5 consolidation), a $325,000 cash payment from the acquisition of CIP Magnetite, a corporate advisory mandate and a share placement fee of 6% (being A$189,000) in respect of monies raised pursuant to the placement. CIP therefore has an interest in the success of the placement.
Geology, metallurgy and exploration
The Snelgrove Lake Project covers 33 kilometres of the prospective Sokoman Formation. The
northern half of the Snelgrove Lake Project contains predominantly taconite style mineralisation
(30% - 35% Fe) but the southern half also has significant potential for DSO (65% - 70%)
Altius undertook an airborne magnetic and radiometrics survey and collection of IKONOS imagery
in 2008. This was followed by a field program of geological mapping, prospecting and rock
sampling. Almost 300 samples were taken averaging 32%.
Year # of Samples Median Grade Comment
2009 129 32% Zones of enrichment in localised areas where
Fe assays returned between 55% and 64% Fe
2010 68 34% Prospecting, hand trenching, geological map-
ping and rock sampling.
2011 80 32% Geochemical analysis and petrography studies
Snelgrove Snelgrove
Davis Tube Recovery (DTR) tests were conducted on four magnetite rich samples which yielded
acceptable weight recoveries (30 - 53%) and Fe grades in the magnetic concentrate (64 - 69.5% Fe).
Samples with higher hematite content were sent for HLS where it was shown that a good weight
recovery of hematite is possible, with further confirmatory test work to be completed.
A budget of C$6.5M is proposed to test both the DSO and taconite potential of the Snelgrove Lake
property. The program is planned to consist of follow-up ground gravity surveys and prospecting
over DSO targets, a diamond drill program consisting of approximately 15 widely spaced diamond
drill holes targeting taconite mineralisation to a depth of 300-350 m depth and 20 shallow
(~100 m) diamond drill holes testing DSO targets. The 2012 exploration permit has been issued
and drilling is expected to commence in September.
Figure 4 : Exploration summary