The Pick Issue 13

ISSUE 13REGIONAL FOCUS

Hopefuls ride the Fraser Range

OIL & GAS

Shelf life for Carnarvon

CONFERENCES

China opens its door

Australia’s leading investor-focused publication

EDITOR:Denice [email protected]:Alex Baker, Colin Jacoby, Denice Rice, Ria Rinaldi, Luke Sizer

Professional Public Relations1 Altona StreetWest Perth, WA 6005Ph: +61 8 9388 0944WEB: ppr.com.au

COVER: Core from the discovery hole at Sirius Resources Ltd’s Nova deposit.

DISCLAIMER: PPR has taken care to collect and publish this information in good faith but makes no warranties or representations as to the accuracy of any facts or representations, and has relied upon information provided to it in doing so. PPR does not accept any responsibility for the accuracy of any facts or representations published, or for any opinions expressed. PPR is not a financial adviser, and nothing within the publication is financial or other advice whatsoever.Subject to any terms implied or expressed by the law, PPR does not accept any responsibility for any reliance, loss, damage, cost or expense incurred by any reliance upon this information or anything published by PPR herein, or by acting upon it or for any error, omission or misrepresentation conveyed. The information published is general only and does not take into account any individual objectives of investors.

A PUBLICATION BY

Contents

P5

MARKET WATCH 1

Clock strikes boom time

CARNARVON PETROLEUM LTD 2Driving value on the North West Shelf

KING RIVER COPPER LTD 4 Closing in on a copper crown

CENTREX METALS LTD 5A sector standout

FRASER RANGE FOCUS 6Range of influence

TENEMENT MAP 9Who’s on the range

PLD CORPORATION LTD 10Ready to drill at Rocky Gully

SEGUE RESOURCES LTD 11At home on the Range

RAM RESOURCES LTD 12 In the best neighbourhood

WINDWARD RESOURCES 13Funded and focused

SECTOR NEWS 17Good reasons to invest in exploration

CHINA GOES ON SHOW 15-21 Tianjin prepares for China Mining 2014

Exploration Exchange ready for investors

Golden opportunities in Beijing

P4

P6

P15

THE PICK June 2014 1

While global economic conditions and confidence-sapping commodity prices are keeping sentiment low, fund managers Lion Selection Group says we are now seeing signs that not only is the worst is over for the junior and mid-tier resource sector but there is a new boom on the horizon. Early 2014 saw a flurry of capital raisings, mainly by mid-tier miners, with more money raised in the first two months of 2014 for miners on the Canadian exchanges than in all of 2013. This coincides with project acquisitions and company takeover activity. All of which are excellent signs, but don’t alone herald better times. Most investors in mining are dormant at present and though the wall of selling has subsided, institutional investors are still reeling from several consecutive years of heavy losses and retail investors equally cautious. The most active and acquisitive investors are the Chinese and some mid-tier miners, whilst the risk money that was the marginal buyer of explorers is looking elsewhere. Mining booms are always much slower to start than to end. In order for the mining cycle to move back towards a boom, sentiment must improve, and this will be a gradual process. It will take time for investors to become comfortable with miners cost discipline, the outlook for China and commodities and changes in regulation. This “healing” process could be accelerated by merger and acquisition by already active strategic buyers, or exploration successes – both of which could be rapidly positive for sentiment. Having collapsed throughout 2011 – 2013, mining equity indices now appear to have stabilised. Against the backdrop of a generally buoyant market, the indices for major

miners (ASX100 Resources) stabilised mid-2012. The Small Resources index took longer and didn’t stabilise until mid-2013 – both have since traded sideways.Whilst there is no index for non-producing juniors, these stocks continue

to experience price weakness but are not facing nearly the downward pressure they had done prior to mid-2013. A major driving force of mining equity indices falls was redemption selling, which now appears to have abated.

market watch

Clock strikes boom time While global economic conditions and confidence-sapping commodity prices are keeping sentiment low, fund managers Lion Selection Group says we are now seeing signs that not only is the worst is over for the junior and mid-tier resource

sector but there is a new boom on the horizon.

• Anecdotal evidence and liquidity indicators suggest the worst is behind us.• A new boom will only get under way gradually, with bumps along the way. Investors need to find their way back as many are focussed elsewhere. M&A activity or exploration discoveries could accelerate this, but equally it may be a case of waiting for the heat to come out of other “hot” sectors, such as technology.• The Lion view is mining equities, especially the juniors, are cheap and there are attractive

opportunities on offer. It is unlikely this opportunity will pass quickly – in the past recoveries after a crash have taken years not months, before small companies could raise funds again.• The key risk for junior miners at the moment is funding: accessing funds and making them last, but still being effective.• Given a tangible change in conditions since October 2013, principally the emergence of merger and acquisition activity for projects and companies, the Lion Clock is now at four o’clock.

In conclusion...

2 THE PICK June 2014

One look at a map of the North West Shelf (NWS), a region of prolific oil and gas production off the Pilbara coast, shows that Carnarvon Petroleum realises the importance of being in the right location.

The ASX-listed, Perth-based oil and gas explorer has seized the opportunity to increase its suite of oil and gas assets in the region having recently been awarded three contiguous blocks on the eastern flank of the Barrow Sub Basin.

The blocks include Petroleum Exploration Permits EP – 490 (bid block L11-6) and EP-491 (bid block L11-7) as

well as TP/27 (bid block T11-3) which in total cover a substantial 3,200sq km area and, importantly, lie adjacent to oil and gas fields of the Harriet Joint Venture.

What is of particular interest is that the blocks are located in close proximity to producing oil and gas fields. Only 46km to the north lies the Wandoo oilfield which has recoverable oil estimated to be approximately 100Mb. Meanwhile, 24km north of the blocks lies the Stag oilfield which has recoverable oil estimated to be 50Mb.

Apart from the great location of the

blocks, they are already substantially covered by quality 3D seismic data which will assist in identifying analogous traps to the Stag and Wandoo oilfields.

To the west of the blocks, there have been a number of oil and gas discoveries, including the significant hydrocarbon accumulations in the Harriet area, reservoired within the highly productive Flag Sandstone.

Another benefit is that the blocks are located in shallow water, with depths not exceeding 70m. This allows the blocks to be cost-effectively drilled with the use of offshore jack-up rigs.

According to Carnarvon Petroleum managing director Adrian Cook, the awarding of these blocks to the company, which is operator and 100 per cent owner, is in keeping with the company’s strategy of expanding its suite of assets on the NWS.

“These blocks provide an exciting new phase for growth for the company,” Cook said.

“Securing a significant acreage position just to the south of two major oil fields with minimal commitments further compliments the company’s strategy for expansion in the North West Shelf.

“The blocks are already covered by extensive modern 3D data, combined with shallow water depths and reservoir targets, means that future exploration costs will be kept to a minimum as we pursue significant oil prospects in the acreage.”

Carnarvon Petroleum Ltd (ASX: CVN) is certainly hitting its straps; it recently expanded its offshore acreage in a well-known oil and gas producing region, kicked-off drilling operations at its Pheonix Project and is now well-

funded via production out of its Thai interests.

Carnarvon driving value on the North West Shelf

www.carnarvon.com.au


company profile

Looking ahead, work on the blocks will include reprocessing the existing 3D seismic and extensive geological studies. According to Carnarvon, this work will not be of significant cost to the company.

Meanwhile, Carnarvon has recently begun drilling at its highly anticipated Phoenix South-1 well with partner and operator Apache Energy, located at its Phoenix Project in the NWS.

Drilling is expected to take place for approximately 60-70 days which includes time for logging and testing. Total depth is scheduled to reach a minimum of 4,500m, but could extend to 5,000m depending on the presence of gas below 4,500m.

“This well has the potential to be a significant value driver for Carnarvon,” Cook said. “The company is well funded through the upcoming drilling campaign.”

Earlier this month, Carnarvon completed drilling the shallow-hole section at Phoenix South-1 well and is now drilling the intermediate section.

While the main focus is on NWS, Carnarvon also holds an acreage position onshore Thailand with a 20 per cent stake in L44/43, L33/43 and SW1 concessions located in the Phetchabun basin approximately 300km north of Bangkok.

The concessions are producing oil from across eight fields, and technical work by the operator has steadied production rates to around 4,000 barrels of oil per day.

A drilling program on these concessions is expected to kick-off next month and encompass five to seven new wells.

In May, Carnarvon offloaded 20 per cent of its stake in its Thai concessions to Loyz Energy for $US33 million in cash, bringing total company cash reserves up to A$50 million. The company retains a free-carried 20 per cent interest in Thailand, keeping exposure to these assets while pursuing exploration back closer to headquarters in Western Australia.

Carnarvon’s share price has performed strongly over the course of 2014, hitting a high 10.5c late last month.

www.carnarvon.com.au

The Atwood Eagle rig drilling for Carnarvon on the North West Shelf.


Remote copper search may lead a king to a crown

There is only one 30km dirt road in, and one road out of King River’s remote 782sq km Speewah Dome Project in the Eastern Kimberley, some 100km south of Wyndham, in Northern Western Australia.King River embarked on a Phase 1 drilling program on May 28, 2014, using portable diamond rigs that are mobilised by helicopter to isolated locations around the rocky escarpments.But it is such isolated frontiers that offer intrepid explorers such as King River the most prospective targets for discovering the next generation of high-grade copper/gold/silver deposits.Surface samples have returned up to 39 per cent copper, 335g/t silver and 3.9g/t gold at King River’s Chapman Outcrop prospect in the north east portion of the Speewah Dome.Seven high-priority targets stretch 40km across the dome, all having produced exciting, high-grade, multi-element surface grades. Calamondah, a target approximately 8km south west of Chapman, has also returned highly anomalous palladium. King River chairman Anthony Barton said the company’s “Eureka moment” happened about five to six weeks ago with the discovery of a prominent shear zone that runs along the eastern fringe of the dome.“This discovery cemented our views that these high-value mineral occurrences are litho-structural in nature and the shear zone was the plumbing that delivered these elements to the area,” he said.“Recently we used a 3D computer-generated geological model to pin point an unexplored location, landed a helicopter, and picked up a rock grading 30-plus per cent copper.”The Phase 1 diamond drilling is under

way and will cost the companyin the range of $650,000 and $750,000.“The drilling will test each of the seven high-priority surface prospects, starting with the shear zone high up near the Chapman outcrop,” Barton said.“This will be followed late June by drilling directly into the Chapman Outcrop that yielded the 39 per cent copper result.“With limited funds, we must now target the jugular, we can’t be dancing around the edges here.“This year we need to deliver quality drill results to make serious progress.”All drill core from the six-week Phase 1 exploration program will be stored on-site until July when it will then be sent

en masse to Perth for assaying. Results are expected late July.The scale and scope of any Phase 2 program will depend on the results obtained from Phase 1, but it is estimated that it will be between $1.5 million and $2 million and begin in August.In anticipation of the exciting Phase 1 drilling, King River shares started moving in late May, culminating in a doubling of the share price to 14.5c by May 28.On the back of renewed interest in the company, King River has expanded its investor base by adding sophisticated professional investors from US, Hong Kong and the UK to their register with a modest capital raising that secured $600,000 through the issue of 5 million shares at 12c a share and 2 million options.These additional funds will be used for exploration and working capital.

www.kingrivercopper.com.au

King River Copper Ltd (ASX: KRC) may be operating in one of Australia’s most remote mineral frontiers but early results show its

chances of success may now be anything but remote.

Speewah Dome in the Eastern Kimberley.

company news


Centrex Metals has managed to do this by taking an unconventional business model of development via foreign investment. The company already has three Chinese-backed joint ventures and is looking to expand its portfolio.Traditionally focused on iron ore and port infrastructure development in South Australia, with the capital needs of that portfolio having been solved through joint ventures with two Chinese steel majors to create an upside story outside its current cash reserve, Centrex has chosen to begin diversifying its interests. Chief executive officer Ben Hammond said Centrex currently presented as an excellent investment option.“Being valued close to our strong cash backing, having plenty of upside through our joint ventures and a business model that burns little cash, we think we are a low risk bet for those looking to wade back into the resources market,” he said.Centrex is building a new metals portfolio north of Canberra in NSW, where it is replicating its business model by signing a fully funded joint venture with another Chinese state owned enterprise over its Goulburn Zinc Project. The first stage of the joint venture will see $2 million in exploration funding provided by its partner Shandong 5th Geo-Mineral Prospecting Institute.Centrex was the first company in 20 years to gain land access to the project that had historically shown promising mineralisation. After completing a number of geophysical surveys Centrex identified further drill-ready targets before bringing in a foreign partner. Centrex has built on the success of the Goulburn joint venture

by gaining two new early stage gold projects nearby to the west. The Gundaroo Project contains a number of historic gold workings and Centrex has defined numerous anomalous geochemical targets which will be drilled in coming months. A magnetic survey was recently completed over the Woolgarlo Project which contains historically defined epithermal gold mineralisation. Centrex intends to follow the survey with

ground-based geophysics and geochemistry to define drill targets. Back in South Australia, the company has recently completed a deal with Arrium Mining to secure the remaining rights to the Kimba Gap Magnetite Project where it has undertaken resource drilling and expects to make a maiden resource announcement soon. Centrex is confident the project will form the

basis of its third iron ore joint venture on the Eyre Peninsula with its partner on the Bungalow magnetite project Baotou Iron & Steel already requesting the project studies to take into account the synergies with Kimba Gap located just 50km north. A further deal in late 2013 on its largest iron ore joint venture with Wuhan Iron & Steel saw agreements to gain funding options for an eventual bankable feasibility study in return for Centrex diluting further to a 30 per cent interest.One of the options negotiated to secure the final funding for its iron ore portfolio includes listing the joint venture on the ASX with Wuhan underwriting the IPO. The Centrex port development on the east coast of the Eyre Peninsula, also a joint venture with Wuhan, remains on track having now received both federal and state government approval.

company news

Centrex a sector standout

A rarity in the current market, Centrex Metals Ltd (ASX: CXM) is a junior that not only has a healthy balance sheet with almost $28.3 million

in uncommitted cash after paying two fully franked dividends over the past two years totalling $31.4 million or 10c a share prior to any production.

www.centrexmetals.com.au

Centrex Metals chief executive officer Ben Hammond.


One of the true believers in the potential for a Fraser Range-led recovery among junior explorers is Sirius Resources managing director Mark Bennett.“It’s still pretty tough for the small companies to raise the money but I think what Nova showed was that there are still things to be found … I think people were starting to doubt,” Bennett said. “Despite what the big companies seem to think, there’s definitely the prospectivity there.”Although only 250km from

Kalgoorlie and the famous Golden Mile, the Fraser Range had been largely unexplored at

the time the Nova discovery was made in 2012, resulting in an

87-fold re-rating of Sirius’s share price.

Sirius continues to explore the region along with a

host of juniors who’ve taken up ground in

the region and are engaged in grass-

roots work to d e v e l o p

Sirius Resources world-class Nova nickel discovery made the remote

Fraser Range in Western Australia the nation’s hottest exploration address and there’s growing confidence that activity in the region has significant implications for the wider Australian

exploration sector.

Fraser Range FocusRange influenceof

Mark Creasy - went looking for Skylab in the

Fraser Range.

Mark Bennett at the time of the Nova discovery.


and drill targets – exactly the type of back-to-basics exploration that Bennett believes was responsible for Sirius’s success.“I think being a small company helped, rather than being a big company,” he said. “I’ve worked in big companies and big companies do high-tech airborne surveys but tend not to get out on the ground and hit rocks with hammers very much.“We didn’t have the money to do that and it forced us to go onto the ground, to look closely and pick a few areas and fortunately, the first one we looked at was what became Nova. We did it with about $150,000 worth of expenditure before we started drilling.“It was very systematic, we said ‘okay we’ll pick this target’, we sent two vacation students out to sample the ground and they came back and it produced an anomaly of the sort we were looking for.“Then we sent a geophysics crew out and they came back with an anomaly, so we said ‘okay we’ll drill this bit’ and bingo. It was so textbook that we were afraid to believe it was real most of the time.“The big question is whether it’s just Nova or whether there’s a whole family of them out there. I think its early days. It could be another month and there’s a discovery or it could be 10 years before there’s another discovery. “If you look at the area in Canada that took us there in the first place, then typically there’s half a dozen of these deposits in a cluster.“There’s never any guarantee but we’ve only just scratched the surface. It’s an area that’s probably 500km long and 50km wide and people have hardly set foot there before so it’s going to take many lifetimes to explore.”

Undoubtedly, the original true believer in the prospectivity of the region was Mark Creasy the quintessential old-school prospector who pegged vast areas of the region after looking over the area while searching for debris of the US space station Skylab in 1979.Bennett said Creasy was the first to dientify similarities between the area and Canada’s Thompson Nickel Belt, which has to date produced more than four billion pounds of nickel.“He went out there chasing bits of Skylab and then looked at the mines department records, realised Newmont had been out there in a joint venture with Anglo and Western Mining,”

Bennett said. “They’d gone out there becuse they had a geologist at the time who had worked for Inco in Thompson who’d said ‘this looks exactly like the area in Canada’. So it’s been the same theme the whole way through.”Creasy described the Fraser Range as a “geological clone” of the Thompson Belt.“On the Thompson Belt they’ve got at least 10 nickel mines,” Creasy said.

“The interesting thing about the Fraser Range is the quality of the ore. It’s absolutely first grade ore, it lacks any magnesium content, it lacks arsenic and that puts the cream on the cake.“So we’ve got one (mine) about to start at the Nova-Bollinger deposit, can we repeat the Thompson belt experience?“I’m the eternal optimist and can I say that we are going to find them or not? Well we’re going to do our level best.”Creasy is also quick to point to potential speed humps in the road to developing Australia’s greenfield exploration opportunities.

P8p

“... we’ve only just scratched the surface.”

Fraser Range Focus

Consultant Dr Walter Witt mapping in Windward Resources’ Fraser Range North Project area.


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yP7“When I started, governments had created an environment where they tried to make it as easy as possible for people to go out there, prospect,” he said.“These days they (governments) make it difficult. Would I advise people to go out prospecting? When I started it cost you 50c for a miners right you could go anywhere you liked.“It took six weeks after pegging a gold mining lease to get it granted. These days, years have lapsed and every delay costs money, so what would I advise people to do? Probably be a lawyer.”But as much as Creasy believes in the future of the Fraser Range, where he still holds, either outright or as an interest in, vast tracts of tenements, he doesn’t believe it’s the only opportunity in the sector.“People keep on talking about the last frontier and every time the last frontier is found, guess what? Theres another frontier,” he said.Sirius recently bought out Creasy’s 30 per cent interest in the company for $210 million.A recent research report from funds manager Lion Selection Group also touted the potential impact future Fraser Range discoveries could have on the wider the exploration sector.The importance of the region is immense,” the report said. “Another discovery would confirm the potential of the region, and more than one could well tempt the speculative dollar back toward exploration.”Another believer in the potential of the Fraser Range region

to punch above its weight is Morgans resource analyst James Wilson.“Sirius proved that in Australia you can still go out and make a new discovery in what was previously virgin territory,” he said. “It showed that the whole world hasn’t been drilled out, that there are new discoveries to be made and exploration can be hugely successful.Much like Bennett, Wilson believes it will be junior explorers on the ground that will have the greatest chance of success in the Fraser Range and that another discovery in the Fraser Range would see the region “explode”.

Fraser Range Focus

See full Mark Bennett interview at: https://www.youtube.com/watch?v=iT-77SkW33M

Nickel-laden Core from the Nova Project.

Fraser Range Focus


Fraser Range Focus


PLD Corporation Ltd (ASX: PLD) is ready to roll out the drills at its highly prospective Rocky Gully Project in the Albany-Fraser Range after receiving final approval from the

WA Department of Minerals and Energy for its works program.

The M20 Prospect at the Rocky Gully Nickel Copper Project has returned strong assay results with the company reporting up to 7,750ppm nickel and 103ppm copper from soil sampling, over a strike extent of 1,200m X 700m. The approved program of works at M20 allows PLD to drill up to 3,000m, which will give the prospector the detailed information it needs to progress the M20 Prospect. Commenting on the upcoming drill program, PLD Corporation managing director Matthew Gauci said the government approval “is an important step in getting on with the job of drilling M20, better understanding the geometry and tenor of the nickel-copper, and ultimately creating value for our shareholders, before moving onto the next stage of development”.“We have compiled some excellent indicators of the potential of magmatic nickel-copper sulphide mineralisation, so it is exciting stage to now get a drill rig up and running,” he said. “Given the similarities at Rocky Gully to Sirius Resources’ Nova-Bollinger deposit in the same geological belt, and the

overall high value per tonne of mineral resource of these type of deposits globally, we are cautiously optimistic that we will return some value accretive result.”In addition to the M20 prospect at Rocky Gully, which represents only 5 per cent of the large land holding of 1,200sq km of tenements at Rocky Gully, of the company has generated more than 30 priority nickel-copper targets that are

yet to be systematically explored using modern techniques. The Rocky Gully district is hosted in Proterozoic rocks slightly older than those which host the Nova Bollinger deposit in the Fraser Belt, and appear to be analogous more to the high grade Raglan Cluster of Nickel Copper deposits in the Cape Smith Belt of Canada, widely recognised as the highest value per tonne of mineral resource deposits globally. Mr Gauci said: “There remains significant

upside in the exploration for nickel copper deposits at Rocky Gully and with analogies to some of the world’s most valuable mineral districts as Raglan, at a time when the nickel price has surged more than 30 per cent in 2014, while being located in a safe, modern and supportive jurisdiction like Western Australia, we are genuinely excited at the next stage of drilling at Rocky Gully.” In addition to PLD Corporation’s Albany-Fraser Range tenements, the company is further leveraged through a recent exploration license application for a highly prospective Pilbara iron ore tenement. The tenement is well positioned, being adjacent to BHP’s Shay Gap-Yarrie- Goldsworthy iron ore operations and tenements owned by Fortescue Metals Group. The site is near road and rail access as well as being in close proximity to a gas pipeline.PLD Corporation finds itself in the rare situation of holding nickel-copper, gold and iron ore prospects, all in the nation’s most prospective regions and with the probability that drilling at Rocky Gully could add further to the company’s inventory.

PLD ready to drill at Rocky Gully

company news

PLD managing director Matthew Gauci on site..

www.pldcorporation.com.au


Plumridge is 120km north-east of Sirius Resources’ Nova discovery and surveys to date have identified five conductors, all bearing the trademark Nova eye formation.In total, Segue has identified 30 highly prospective eye formations within its tenements.While further data processing is still pending, early signs are positive with Segue already commissioning aircore drill-ing and the next round of EM surveys to further define the locations of the largest anomalies.Segue Resources managing director Steven Michael said that the completion of phase one of exploration would mark a defining point in Segue’s development, with the company now able to greater focus on the five targeted areas that are most consistent with Fraser Range nickel discoveries. “Our exploration activities are shaping up to be the broadest and most comprehensive seen in the Fraser Range to date, and so far, we have been very pleased with the results” Michael said.“We are very aware of the similarities between our findings and those of Sirius Resources and we are taking appropriate steps to increase our geological understanding of the Fraser Range and more specifically our Plumridge Nickel Project”.“For instance, we have brought on board Newexco Mining and Exploration Services to assist our exploration program.“Newexco have a track record of success in the Fraser Range and were the specialist consulting group behind Sirius Resources’ Nova exploration program.”Segue Resources has complimented its exploration activities with an aggressive tenement purchasing plan.

The Plumridge Project now consists of eight 100 per cent owned tenements and two 80 per cent Segue-owned joint venture tenements totalling 2,881sq km. When combined with Segue Resources’ other Fraser Range tenements the company has exploration licences totalling

approximately 4,180sq km, making the company one of the largest tenement holders in the Fraser Range.Segue is increasingly well positioned to take advantage of these significant assets. A resurgent nickel price, significantly aided by the imposition of bans on mineral exports from Indonesia, has many analysts believing that nickel will come under increasing upward price pressures once Chinese stock-piles of the steel-making mineral begin the dwindle in the coming months.With Sirius Resources laying claim to a trajectory to become one of the world’s top 10 nickel production companies, the Fraser Range is set to remain one of Australia’s exploration hot spots for at least the next few years.Segue Resources also has the significant advantage of strong shareholder support.The company recently announced that its major shareholder had voluntarily placed all its shares into

escrow, meaning that, in addition to shares already in escrow, a total of one third of the company’s issued capital will be inactive until mid-December 2014. Segue Resources is strategically positioned in one of Australia’s most prospective mineral resources regions, and with the tide turning for commodity prices as well as investor sentiment for the exploration and mining sectors, the company looks set to change the face of the Fraser Range.

Junior explorer Segue Resources Ltd (ASX: SEG) continues to tick more big boxes as it begins its second phase of exploration including further ground electromagnetic (EM)

exploration and aircore drilling at its flagship Plumridge Nickel Project in the Fraser Range.

SEGUE AT HOME ON THE RANGE

www.segueresources.com

company news


Described as having the “lowest cost and purest” exposure to the highly prospective Fraser Range belt, Ram Resources Ltd (ASX: RMR) holds property on three sides of Sirius

Resource’s exciting Nova and Bollinger nickel-copper massive sulphides discoveries.

Ram controls a total holding of 850sq km over three sets of tenements in the Fraser Complex of the Albany-Fraser Tectonic Zone.At its Fraser Range Project, Ram has an 86.5 per cent interest in tenements covering 271sq km in the Albany-Fraser orogen, located 20km west of the Sirius Nova nickel-copper massive sulphides discovery.At its Fraser Range North Project, Ram has secured the rights to five explor-ation tenements covering 410sq km and located approximately 150kms north of the Sirius Nova discovery. Ram’s latest addition in the region is its Fraser Range South Project, which it recently secured via an option to acquire three tenements. The package is just 2km from Sirius Resources’ Crux anomaly – which is currently being drilled.The tenements also cover approximately 30km of the interpreted Fraser Fault zone which hosts the Mammoth Nickel Prospect in the north.VTEM and soil sampling have identified a 1.3km long MMI anomaly within Ram’s

217sq km Fraser Range property, plus Ram has defined 17 VTEM anomalies and five high-priority drill targets.Ram will commence drilling within weeks with a rolling high-impact program designed to test several of the priority targets.Ram managing director Bill Guy said the company was perfectly placed to capitalise on its exciting land holdings.“We are well funded, with cash in the bank and significant land holdings on three sides of what is arguably Australia’s hottest exploration belt,” he said.“In addition to the planned drilling program, we have magnetics and geo-

chemical work ongoing to identify further targets on both the Fraser Range North and South properties.“Within the Fraser Range South tenements, historical soil sampling has already highlighted three high-priority areas with elevated copper assays as well as 28 VTEM anomalies untested by nickel geochemistry assay.”Mr Guy said the option over the additional tenements gave the company highly promising exploration prospects on the southern extension of the Fraser Range Complex and Biranup contact zone.This area is the subject of increased attention from Sirius and other Fraser Range explorers. “We have an active and ongoing exploration program under way on our tenements, as do many other companies in the Fraser Range,” Mr Guy said.“This combination means there is enormous opportunity for strong news flow that could generate positive results for Ram shareholders, partciularly off our low share price and low market capitalisation.”

Ram gets the right results in the best neighbourhood

ramresources.com.au

Ram Resources exploration team on site in the Fraser Ranges

company news


Investors have seen value in and supported the explorer from its first day on the ASX boards as a pure play in Australia’s hottest exploration address.On the day the company listed in November 2013, shares hit an intra-day high of 35c compared to its IPO price of 20c.Windward has a total tenement holding of 8,405sq km over two projects in the Albany Fraser Belt – the 2,790sq km Fraser Range North Project and the 5,615sq km Fraser Range South Project. Surface sampling and detailed magnetics on both projects have identified a range of priority targets.Windward shares more than just the same address as Sirius Resources Ltd, the explorer that lit the fuse on the Fraser Range frenzy with its world-class nickel-copper discovery within the Nova “eye” in July 2012.Like Sirius Resources at the time it made the Nova discovery, Windward has as its cornerstone investor (31 per cent) veteran prospector Mark Creasy. Sirius recently acquired Creasy’s 30 per cent holding in Sirius for $210 million.Sirius and Windward are also the only two pure plays in the Fraser Range and other than Sirius, Windward has the largest cash holding among its peers in the region.With a cash balance of $6.4m (as at 31 March 2014) Windward has the funding to back its aggressive works program which will include a $1.4 million dollar spend in the June quarter this year.The tenements that comprise the Fraser Range North Project sit variously within the Tropicana gold belt and the Nova nickel-copper belt.

A ground EM survey has commenced at the Buningonia North prospect, within the Fraser Range North Project. Aircore drilling has already returned a number of highly anomalous nickel, copper and silver results, over a strike length exceeding 2km at greater than 1,000ppm nickel at Buningonia North, which is located 60km along strike from Nova.Windward has also completed soil geochemical programs at the Ponton Creek and Spy Hill prospects, which are along strike of the Buningonia North prospect.Detailed magnetic studies have also already identified several

“eye” type targets and other intrusive bodies on Windward’s E69/2989 tenement, which is also within the Fraser Range North Project and is contiguous with Sirius’s Nova deposit tenement.At the Fraser Range South Project, a number of electromagnetic and geochemical targets have been identified along strike from Heron Resource’s Rocky Gully nickel-copper prospect, where anomalous nickel-copper sulphides with a peak intercept of 12m at 0.71

per cent nickel and 0.01 per cent copper have been identified. Known deposits in the area include the Trilogy lead-zinc-copper-gold deposit, the Southdown magnetite deposit and various small gold depositsWindward managing director and CEO David Frances said that over and above its holding of highly prospective land in Australia’s hottest exploration province, the company was debt free and had the funds, expertise and focus needed to discover more significant mineralisation and perhaps, a world-class deposit such as Nova/Bollinger

company news

Funded and focused in the Fraser Range

As the ASX-listed company with the largest tenement holding in Western Australia’s Fraser Range region, Windward Resources (ASX: WIN)

offers investors unique exposure to Australia’s hottest exploration province.

www.winres.com.au

Aircore drilling at Windward’s Buningonia North prospect


Likewise, China’s outbound and inbound expansion in the resources sector has seen a growing take-up and adoption of western technologies and services, according to Williamson.“As China continues to grow and change, there has never been a better opportunity to interact with Chinese companies and promote your project, equipment or services in China,” he said.“To be in the best position to directly engage and take advantage of the China market, a number of conferences and exhibitions have been planned in China in 2014, hosted by the relevant Chinese Government Ministries.”

The Premium Mining Conferences in China for 2014 will happen over September and October.“These conferences rate as major global events on the mining stage, with upwards of 7000 delegates attending these events,” Williamson said.“Delegates usually include senior executives and decision makers from Chinese Government as well as State owned and private enterprises.“These conferences offer the ideal opportunity to get your company or project in front of the right people to do business in China.”

www.redrivergroup.com.au

Technological advancementsTechnological advances in exploration, particularly in the past decade, have helped improve the odds of exploration success even as exploration becomes more complicated.In particular, advancements in electro-magnetic (EM) techniques, in-field geochem analysis and cheaper and more accurate drill rigs have increased exploration productivity and precision.

Service providers are discounting to stay in workThe exploration industry is currently at a cyclical low, which means an exploration dollar (if you can get one) buys a lot more than when exploration was at peak levels.

Market is predictable, if you are an expertWe believe that the investment market for explorers has largely been reduced to investors with significant mining industry and investment experience. Hence, exploration being undertaken by juniors in the current market has to be of particular quality to achieve the funding required. This doesn’t mean that all explorers are

going to make a big discovery (on average, they won’t). It does however mean that, generally, the exploration programs are well considered and methodical, and are usually being well communicated to the market. Exploration companies are increasingly being “drip fed” budgets by capital markets and hence progress can be slow, but this also encourages companies to be very focused with their spending and make predictable investments (ie. nickel explorers focus on nickel exploration). The tight reign explorers are kept on by capital markets means that share price catalysts (volatility) are more predictable because programs unfold in a consistent manner with detailed market updates as each milestone occurs (soils, ground EM, reconnaissance drilling, petrography and down-hole EM, confirmation drilling, resource definition).

Risk/reward is attractiveExploration is highly risky but can be

financially very rewarding. Absolute success is rare, but as Sandfire Resources NL and Sirius Resources NL have shown, the reward for a commercial discovery is handsome.Currently, the uplift for a commercial discovery is very significant as the exploration companies are trading at low levels, but investment demand for high-quality developers remains robust. In addition, positive exploration results on the way to a discovery can drive significant investor returns.The bottom line is that there is profit to be had in investing in junior mineral exploration companies. The downturn in exploration investment has meant that, generally, only exploration companies with true prospectivity have funded programs, which in some ways makes naive investing possible. However, technical experience or advice is recommended given the market is currently dominated by investors who have that insight. If you are not aware of the criteria that mining professionals base their investment decisions upon then identifying entry and exit points when investing in explorers will be difficult.

In many jurisdictions the shallower and more easily located mineral deposits have already been discovered. It is well documented that future world-class deposits are

likely to be deeper and/or located in more remote locations. However, that doesn’t mean that exploration success is unlikely. Hartleys research highlights four reasons for

investing in junior explorers today.

When the going gets tough...sector news

CHINA OPENS ITS DOORS

™

China’s ongoing search for opportunities in their quest for resource security, coupled with their investment power, will continue well into the future according to Robert Williamson, the managing director of China business consulting organisation Red River Group.


China Mining Conference and Exhibition October 20-23, 2014,

Tianjin

Exploration Exchange China 2014October 24-25, 2014

Beijing

China Gold Congress and Expo, September 10-12, 2014

Beijing

PRESENT YOUR COMPANY AT:

Advertising and editorial opportunities exist for companies wishing to appear in the officially endorsed magazines of China’s three major resource sector conferences in 2014

Conference-specific, dual-language magazines will be distributed to delegates and participants at:

• China Mining Conference and Exhibition • Exploration Exchange China 2014• China Gold Congress and Expo

COST PER CONFERENCE: A$4000 (+GST)

Cost includes two pages of editorial/advertising (English/Mandarin) and company representation on a booth at the conference by an experienced investor relations consultant.

P U B L I C A T I O N S

Contact: Denice Rice P +61 8 9388 0944 E [email protected]


Preparations are already under way in Chinese city of Tianjin for the 16th China Mining conference – the world’s largest mining and resources event.China Mining offers one of the most comprehensive audiences with last year’s event recording approximately 7,000 delegates and 1,700 exhibitors ranging from multi-commodity giants like Rio Tinto to some of the globe’s hottest exploration plays in addition to mining services and financial capital firms.Organisers are hoping to surpass last year’s impressive numbers.The conference is sponsored by major mining corporations such as Zijin Mining Group, Shandong Gold Group, Chinalco and RBC Capital Markets. A China Mining 2014 executive said “this year is shaping up to be our largest ever conference”. “We are very privileged to have such a wide array of mining executives, analysts and investors in attendance. Their continued

support demonstrates that China Mining remains the preeminent conference for generating mining business across all commodities and sizes.”China Mining facilitates a number of important networking events for miners and investors alike.China Mining 2014 offers the chance to join some of the resources industry’s most pivotal figures at the pre-convention reception dinner and the much anticipated awards night.China Mining 2014 also invites attendees to share a drink at one of the conference’s most popular social events – the annual cocktail party.China Mining 2014 offers over 100 highly informative keynote addresses, forums and demonstrations across a range of topics including financing, exploration, and commodity analysis.This year’s conference is set to build on the quality of last year’s event which included speeches from Rio Tinto head

of exploration Gerard Rheinberger, Bank of China chief economist Cao Yuanzheng and Michael Han, Group Chief Economist for Teck Resources. Aside from being strongly supported by business, China Mining 2014 is fortunate to also receive vital assistance from the Chinese public sector which is increasingly working with the resources industry to establish more efficient and streamlined processes.China Mining 2014 will also include participation from a number of provincial governments and the federal body responsible for regulating the resources sector, the Ministry of Land and Resources.China Mining is also well represented by international governments. The 2013 conference attracted mining ministers and vice ministers from 10 separate countries, including Australia’s own Ian Macfarlane.

www.chinamining-expo.org

China MIning 2013

TIANJIN PREPARES FOR CHINA MINING 2014

China Mining, the world’s largest mining conference is gearing up for another great show in 2014.

™

The Red River Group is an authorised agent for China Mining 2014Tel: 1800 554 163

Email: [email protected]


The conference, held at the Beijing International Convention Center, is set to host more than 1,000 delegates and over 100 exhibitors, including executives from the world’s hottest resource exploration plays, representatives from the booming Chinese private sector, high net worth individuals and Chinese Government officials. The event is designed to closer harmonise the relationship between China’s government and the resource industry. Chinese foreign direct investment (FDI) is set to be a major topic of discussion at the conference with FDI being subject to some of the most stringent government regulations.The conference aims to provide consultation and clarification on these difficult regulations so those in attendance gain a clear understanding of correct procedure and where an ill-informed investor may be caught out. The Chinese Government will also be launching new corporate social responsibilities guidelines for mining investment at the conference with the aim of providing a clear roadmap for sustainable development.Exploration Exchange China has significant government support, with the pro-business Chinese Ministry of Commerce providing official endorsement and the Ministry of Land and Resources to deliver a keynote address. The event is also supported by both the

Canadian and Australian embassies.Exploration Exchange China will feature a variety of workshops, trade shows and demonstrations designed to provide attendees with a comprehensive understanding of mining process as well as the vital subject of mining investment. The conference also provides delegates with a number of fantastic networking opportunities. Exploration Exchange China will feature a gala dinner for exhibitors and delegates. Additionally, organisers are finalising plans for a minesite visit offering attendees rare access to China’s rapidly growing, modern industry.Exploration Exchange China is the centerpiece event for the China International Investment and Trade Fair for the Private Sector (CIITF), which is a large investment summit also occurring across October 24-25.CIITF is a unique fair aiming to promote Chinese enterprises ‘going abroad’. CIITF aims to help private industry gain access to more international business opportunities and build lasting overseas partnerships.To book your place at Exploration Exchange China and for further information please see:www.exploration-exchange.cn/en or email us at: [email protected].

www.exploration-exchange.cn/en

Exploration Exchange

China prepares for a wave of investment

Beijing is preparing for a wave of investment at the upcoming resources conference –

Exploration Exchange China, October 24-25.

™

The Red River Group is an authorised agent for Exploration Exchange 2014Tel: 1800 554 163 Email: [email protected]

China's Premier Outbound Mining Investment Conference and ExhibitionThe Theme Event of China International Investment Trade Fair for the Private Sector

October 24-25, 2014 Beijing International Convention Center, China

China Chamber of Commerce of Metals Minerals & Chemicals Importers & Exporters

China International Chamber of Commerce For the Private Sector

Exploration Exchange China

Host Organizers

Official Supporters

Cooperation Partners

All -China Federation of Industry & Commerce

National Development and Reform Commission

Ministry of Commerce of the People's Republic of China

Canadian Embassy in Beijing

Australian Embassy in Beijing

Convention, Trade Show, Gala DinnerTopics include: Outbound Investment Summit, Policies and Practices, Merge and Acquisition, Risks Control,

Outbound Investment Facts and Trends, Corporate Social Responsibility, Financing, Investment Opportunities

Trade Show Area: Mining Rights Trading, Investment Service, and General Mining Service areas

Tel: +8610-56257285 Fax: +8610-58850711 Email: [email protected] Web: www.exploration-exchange.cn/en

Exploration Exchange & CIITF Organizing Committee


The China Gold Congress is set to bring critical investment to some of China’s most profitable, but also least recognised precious metal miners and will have a strong focus on boosting international cooperation – opening doors to an industry often regarded as highly protectionist.

China Gold has confirmed sponsorship from China’s five largest gold producers: China Gold Corporation, Shandong Gold, Zijin Gold, Zhaojin Gold and Eldorado Gold.

The event will also bring representatives from the world’s top 50 gold producing countries, key banking institutions such as the Industrial & Commercial Bank of China and ANZ Bank, in addition to internationally renowned jewelry companies, and consulting firms.

China Gold aims to bring each of the different elements of the gold industry

together at the conference’s numerous networking events. A proposed minesite visit, gold jewelry fashion display and Gold Night gala dinner are all prime opportunities for attendees to forge new business relationships.

The China Gold Conference is strongly supported by international organisations such as the World Gold Council as well as the China focused China Gold Association, Shanghai Gold Exchange and Shanghai Futures Exchange.

Importantly, the China Gold Conference and Expo also benefits from government backing with some of the nation’s most powerful departments like the Ministry of Commerce, Ministry of Land and Resources and the Ministry of Industry and Information Technology all registered as official supporters.

In recent years China’s gold industry has achieved record growth, with

advances in productivity on the supply-side matched by an increasing appetite from investors on the buy-side.

China has grown to become one of the world’s biggest markets for the yellow metal and recent movements have many analysts predicting that this trend is set to continue.

China’s rising thirst for gold is not limited to investors. While the Shanghai Gold Exchange has grown to be the world’s largest physical gold exchange-traded market, in 2013 Greater China also consumed more gold jewelry than India, traditionally the world’s largest buyer.

To take part in this rapidly growing industry visit:http://www.china-gold.org/en/ or contact us at: [email protected]

www.china-gold.org/en/

China Gold Congress and Expo, September 10-12 is shaping up to be one of Beijing’s most exciting resource conferences.

Golden opportunities in Beijing

™

The Red River Group is an authorised agent for China Gold Congress 2014

Tel: 1800 554 163Email: [email protected]

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