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ALCHEMY RESOURCES LIMITED — Investor Presentation 2012
Aug 2, 2012
64369_rns_2012-08-02_23f836f6-5a95-463c-b6f2-0e153f07e999.pdf
Investor Presentation
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Giving investors a slice of
the rich Bryah Basin,
Australia’s hottest new
exploration frontier
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Investor Presentation August 2012
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Extensive land holding in the heart of WA’s rich Bryah Basin Bryah Basin hosts Sandfire’s DeGrussa Copper-Gold Project. The key DeGrussa geological structures continue into Alchemy’s ground Grosvenor deal (settled 1 March 2012) increased Bryah Basin land holding from 274km[2] to 630km[2 ]
Indicated Mineral Resource of 246,000oz gold at an average grade of 2.22g/t, close to existing processing plants Plus, Murchison Project; >700km[2] prospective for gold and base metals Cash ~$4m at 30 June 2012; Alchemy is well funded Main focus for 2012 is discovering more DeGrussa’s
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| Listed on ASX in November 2007 | Code: ALY |
|---|---|
| Shares on issue | 156.85m |
| Options – unlisted | 3.20m |
| Cash (30 June 2012) | $4.0m |
| Top 3 Shareholders | BlueCrest Capital 26.92m (17.2%) |
| Jindalee Resources 17.47m (11.1%) | |
| Grandor (Mark Scott) 7.39m (4.7%) | |
| Directors | Oscar Aamodt (Non-executive Chairman, Independent) |
| Sofia Bianchi (Non-executive) | |
| Lindsay Dudfield (Non-executive) | |
| Anthony Ho (Non-executive, Independent) | |
| Jan 2012 Feb 2012 Mar 2012 Apr 2012 0.18 0.16 0.08 May 2012 Jun 2012 Jul 2012 0.10 0.12 0.14 |
|
| Aug 2011 Sep 2011 Oct 2011 Nov 2011 Dec 2011 |
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Rights Issue (1 for 3 @ $0.13) raised $4.2m before costs Issue of $3.5m in Alchemy scrip (26.92m shares @ $0.13) Tenement position in Bryah Basin more than doubled to 630km[2]
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Copper-gold targets identified from geophysics and geochemistry, including VTEM anomalies with prospective Narracoota volcanics Mapping across under-explored Grosvenor tenements with >1,500 multi-element samples collected Multi-element (copper, lead, zinc, bismuth, antimony) anomalism in rock-chip samples EIS grant awarded to drill test priority VTEM anomalies
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Audio MagnetoTelluric (AMT) survey completed Dec 2011 AMT acquired data over ~3km strike extent of Narracoota Volcanics Targeted drill testing of priority AMT anomalies – base
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metal anomalism associated with disseminated sulphides in three drill holes
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Down-hole EM surveys interpret a conductor at depth below priority anomaly
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Discovered April 2009 (Sandfire testing shallow gold target) DeGrussa is VMS deposit located near base of Narracoota Volcanic Ftmn Primary mineralization in near-vertical lenses that commence at >100m below surface and have been encountered at >500m depth Strike extent of DeGrussa resources = 1.4km DeGrussa is high-grade (>6% Cu Eq; in situ value ~A$7B) and low cost (C1 costs ~ US$1/lb); commenced production in mid 2012
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Alchemy now controls ~45km of strike extent of the Narracoota Volcanic sequence VMS deposits typically occur in clusters in favourable parts of stratigraphy Prospective stratigraphy mostly soil covered, never explored for copper Alchemy’s main focus for 2012 (and beyond) will be the discovery of more DeGrussa’s Native Title extinguished over >95% of area
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Acquired from Troy Resources in 2008 with 131,000oz Au Indicated resource
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Indicated resources* now total 246,000oz at Hermes and Wilgeena with potential for growth through depth and strike extent of existing resources and at Central Bore
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Re-estimation of resources in September 2012 Quarter Grosvenor tenement acquisition has added to resource growth potential
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- Hermes – Indicated Resources of 2.79Mt @ 2.19 g/t gold (196,650 oz gold) Wilgeena – Indicated Resources of 0.66Mt @ 2.34 g/t gold (49,536 oz gold)
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Hermes Gold Deposit New zone of mineralisation identified (4m @ 8.57g/t Au from 136m) Open at depth, <3% of holes >125m vd
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Central Bore Gold Prospect Continuity of mineralisation confirmed Significant intercepts: 4m @ 25.79 g/t Au from 125m 14m @ 3.26 g/t Au from 44m
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80% owned by Alchemy, with some recently acquired wholly owned prospects >700 sq km tenement package
In close vicinity to several >1Moz gold deposits and recommissioned operations at Big Bell, Bluebird and Cue Prospective for gold and base metals AC drilling at Jeffery Well outlines >1km gold anomaly
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Focus on discovering DeGrussa-style Cu-Au Dominant footprint in Bryah Basin
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Emerging mineral province, highly prospective for copper and gold
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Exploration spend by others in the region poorly directed
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Deep weathering, sparse outcrop, geology poorly understood, good science needed!
A rich prize awaits…..
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VMS style deposits occur in clusters in favourable stratigraphy
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High grade mineralization targeted (DeGrussa: 5.6% Cu, 1.8g/t Au)
Unlock the value of gold resources
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Targeting additional mineral resources to gain critical mass
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Grosvenor transaction has increased opportunities
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Investigating near-term commercialization
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September 2012 Q
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Acquisition and interpretation of ground geophysics surveys
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Complete geochemistry programs and plan drilling
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Re-estimate gold resources at Gascoyne Gold projects
December 2012 Q
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Test drill targets
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Acquisition of down-hole and follow-up ground geophysics
1[st] Half 2013
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- Follow up new copper and gold discoveries
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This presentation has been prepared by Alchemy Resources Limited (“Alchemy”). This document contains background information about Alchemy current at the date of this presentation. The presentation is in summary form and does not purport to be all inclusive or complete. Recipients should conduct their own investigations and perform their own analysis in order to satisfy themselves as to the accuracy and completeness of the information, statements and opinions contained in this presentation.
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This presentation is for information purposes only. Neither this presentation nor the information in it constitutes an offer, invitation, solicitation or recommendation in relation to the purchase or sale of shares in any jurisdiction.
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This presentation may not be distributed in any jurisdiction except in accordance with the legal requirements applicable in such jurisdictions. Recipients should inform themselves of the restrictions that apply in their own jurisdiction. A failure to do so may result in a violation of securities laws in such a jurisdiction.
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This presentation does not constitute investment advice and has been prepared without taking into account the recipient’s investment objectives, financial circumstances or particular needs and the opinions and recommendations in this presentation are not intended to represent recommendations of particular investments to particular persons. Recipients should seek professional advice when deciding if an investment is appropriate. All securities transactions involve risks, which include (among others) the risk of adverse or unanticipated market, financial or political developments.
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To the fullest extent permitted by law, Alchemy and its officers, employees, agents and advisers do not make any representation or warranty, express or implied, as to the currency, accuracy, reliability or completeness of any information, statements, opinions, estimates, forecasts or other representations contained in this presentation. No responsibility for any errors or omissions from this presentation arising out of negligence or otherwise is accepted.
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This presentation may include forward looking statements. Forward looking statements are only predictions and are subject to risks, uncertainties and assumptions which are outside the control of Alchemy. Actual values, results or events may be materially different to those expressed or implied in this presentation. Given these uncertainties, recipients are cautioned not to place reliance on forward looking statements. Any forward looking statements in this presentation speak only at the date of issue of this presentation. Subject to any continuing obligations under any applicable law and the ASX Listing Rules, Alchemy does not undertake any obligation to update or revise any information or any of the forward looking statements in this presentation of any changes in events, conditions or circumstances on which any such forward looking statement is based.
Competent Person’s Statement
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The information in this report that relates to Exploration Results is based on information compiled by Dr Kevin Cassidy, who is a Fellow of the Australian Institute of Geoscientists, and is an employee of Alchemy Resources Limited. Dr Cassidy has sufficient experience that is relevant to the style of mineralisation, 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 Resource and Ore Reserves’. Dr Cassidy consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.
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The information in this report that relates to Mineral Resources at the Hermes Gold Deposit and Wilgeena Gold Deposit is based on information compiled by Mr Simon Coxhell of Coxsrocks Pty Ltd, who is a Member of the Australian Institute of Geoscientists and a Member of the Australasian Institute of Mining and Metallurgy and is a consultant to Alchemy Resources Limited. Mr Coxhell has sufficient experience that is relevant to the style of mineralisation, type of deposit under consideration and to the activity that 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 Resource and Ore Reserves’. Mr Coxhell consents to the inclusion in this report of the matters based on his information in the form and context in which it appears .
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