CLARA RESOURCES AUSTRALIA LTD — AGM Information 2013

Nov 20, 2013

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AusNiCo Limited ‐ 2013 AGM Presentation

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P e t er Willi ams Chief Executive Officer 21[st] November 2013

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Disclaimers

Forward Looking Statement

This presentation may contain certain statements and projections provided by or on behalf of AusNiCo Limited (AusNiCo) with respect to the anticipated future undertakings. These forward-looking statements reflect various assumptions by or on behalf of AusNiCo. Accordingly, these statements are subject to significant business, economic and competitive uncertainties and contingencies associated with exploration and/or mining which may be beyond the control of AusNiCo which could cause actual results or trends to differ materially, including but not limited to price fluctuations, exploration results, reserve and resource estimation, environmental risks, physical risks, legislative and regulatory changes, political risks, project delay or advancement, ability to meet funding requirements, factors relating to property title, native title and aboriginal heritage issues, dependence on key personnel, share price volatility, approvals and cost estimates. Accordingly, there can be no assurance that such statements and projections will be realised. AusNiCo makes no representations as to the accuracy or completeness of any such statement of projections or that any forecasts will be achieved.

Additionall y, AusNiCo makes no re p resentation or warrant y, ex p ress or im p lied , in relation to , and no res p onsibilit y or liabilit y ( whether for ne g li g ence , under statute or otherwise) is or will be accepted by AusNiCo or by any of their respective officers, directors, shareholders, partners, employees, or advisers as to or in relation to the accuracy or completeness of the information, statements, opinions or matters (express or implied) arising out of, contained in or derived from this presentation or any omission from this presentation or of any other written or oral information or opinions provided now or in the future to any interested party or its advisers. In furnishing this presentation, AusNiCo undertakes no obligation to provide any additional or updated information whether as a result of new information, future events or results or otherwise.

Nothing in this material should be construed as either an offer to sell or a solicitation of an offer to buy or sell securities. It does not include all available information and should not be used in isolation as a basis to invest in AusNiCo Limited.

Competent Persons Statement

The information in this presentation that relates to Exploration Results is based on information compiled by Mr Nicholas Mather B.Sc (Hons) Geol., who is a Member of The Australian Institute of Mining and Metallurgy. Mr Mather is employed by Samuel Capital Pty Ltd, which provides certain consultancy services including the provision of Mr Mather as a Director of AusNiCo. Mr Mather has more than five years experience which is relevant to the style of mineralisation and type of deposit being reported and to the activity, which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Minerals Resources and Ore Reserves’ (the JORC Code). This public report is issued with the prior written consent of the Competent Person(s) as to the form and context in which it appears.

The information in this Announcement that relates to Mineral Resources is based on information extracted from the report entitled “ Maiden JORC Resource Estimated for the Taronga Tin Project” created on 26[th] August 2013 and is available to view on www.ausnico.com.au. AusNiCo confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement and, in the case of estimates of Mineral Resources or Ore Reserves, that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed. AusNiCo confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcement.

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2.

Corporate Overview

		Capital Structure	Capital Structure		1 Year Share Price History
		ASX Ticker ANW
		Share Price (as @20/11/13) $0009
		.
		Shares on issue 606,587,987
		Options (various prices) 65,500,000
		Market Capitalisation $5.46m
		Directors and Management
		Brian Moller Chairman
		Nick Mather Non-Executive Director
					Key Projects
		Ben Harrison Non-Executive Director
		John Bovard Non-Executive Director
		Richard Willson Non-Executive Director
		Peter Williams Chief Executive Officer
		Major Shareholders
		Tenstar TradingLimited	17.55%
		DGR Global Ltd	13.80%
		YTC Resources Ltd	11.24%
		Samuel Holdings (Director)	8.83%
		Top 20	72.56%

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3.

Taronga Tin Project – the flagship project

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Marlborough (100%)
Collurabbie North (100%)
Muleryon Hill (100%)
Pembroke (100%)
Jump Up Dam (100%)
Taronga (100%)
Tin
Nickel (granted)
Nickel (Application)
Note: ANW Interests shown as percentage H eaz ewoo l d Ri ver (100%)
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4.

Tin price is performing strongly – up 24% in last 12 months[1]

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600
Tin
500
400
300
200
LME
100
0
Jan-00 Jan-03 Jan-06 Jan-09 Jan-12 Source: ITRI October 2013
ex
d
In
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1 Source: ANZ (A$24,710/t 15/11/13; A$19,926/t 16/11/12)

5.

Supply side concerns - global mine production in decline

	Tin-in-Concentrate (tonnes)	Tin-in-Concentrate (tonnes)
	Tin-in-Concentrate (tonnes)
	% Global Production 2011 2012 Change
	Indonesia 35% 104,800 96,600 (7.82%)
	China 34% 101,900 91,500 (10.21%)
	Peru 10% 29,022 26,105 (10.05%)
	Bolivia 7% 20,373 19,702 (3.29%)
	Brazil 4% 8,800 10,800 22.73%
	B l 10% 26 305 28 393 7 94% a ance , , .
	Total 100% 291,200 273,100 (6.22%)

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Source: ITRI October 2013

6.

Consumers are demanding more sustainable tin

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7.

Taronga Tin Project – located in a low risk jurisdiction

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AusNiCo’s 360km[2] of tenements prospective for tin, base & precious metals

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8.

Supportive local community proud of their mining heritage

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9.

Close to existing key infrastructure

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Proposed
Pro ecj t Site
8km to Emmaville
Emmaville
New England Hwy 27km
Existing Power Glen Innes 42km
@6km
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10.

Significant level of de-risking of Taronga completed by previous owners

• Newmont[1] completed a Pre-Feasibility Study (PFS) in 1982

• Exploration & Development: Completed over 33,000m drilling and mined three adits for bulk samples

• Metallurgy: Extensive metallurgical test work including pilot plant programs

• CAPEX & OPEX: Complete engineering design & costing

• −Spent over $21M (2012 terms)

• −Joint Venture surrendered project in 1984 citing low tin prices (A$3,539/t)

1Newmont Holdings Pty Ltd on behalf of the Taronga Joint Venture

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Northern Zone Adit completed in conjunction with PFS

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11.

Focussed program and clear path for developing the Taronga Tin Project

	2013 2014 2015 2016 2017 Project Development	2013 2014 2015 2016 2017 Project Development
	2013 2014 2015 2016 2017
	Project Development
	Pre-Feasibility Study
	Bankable / Definitive Feasibility Study
	Project Finance / Funding
	Construction
	Commissionin/ Oerations
	g p
	Statutory Approvals
	Environmental Impact Statement / Development Application
	MiningLease
	Other, including Local & Commonwealth

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12.

Mineral Resource (JORC 2012) completed

	Cut-off Grade Indicated Inferred Total	Cut-off Grade Indicated Inferred Total	Cut-off Grade Indicated Inferred Total	Cut-off Grade Indicated Inferred Total	Cut-off Grade Indicated Inferred Total
	Cut-off Grade	Indicated	Inferred	Total
	(0.1%Sn)
		Mt %Sn Metal (t)	Mt %Sn Metal (t)	Mt %Sn Metal (t)
	Northern Zone	19.3 0.16 30,800	7.7 0.12 9,300	27.0 0.15 40,100
	Southern Zone	7.6 0.19 14,400	1.7 0.16 2,700	9.3 0.19 17,100
	Total	26.9 0.17 45,200	9.4 0.13 12,000	36.3 0.16 57,200

• Mineral Resource ( JORC 2012 ) also includes 26 , 400 tonnes of co pp er and 4 , 400 , 000 ounces of silver

1 Source: Refer to AusNiCo Limited’s ASX Announcement dated 26 August 2013 for full details

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13.

Simple metallurgy = Simple flow sheet = lower CAPEX & lower OPEX

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14.

Opportunities already identified where additional value can be created

• Regional exploration

• −Over 500 known occurrences of tin in the region

• −Advanced exploration targets at McDonalds ,

Pound Flat and Emerald, all within trucking distance

• Resource extension at Taronga

• −Increased grade attributable to sample volume / variance

• −Limited drilling at depth indicates potential for continuation of mineralisation at depth, which

may trend to higher grade mineralisation as vein width increase but vein density decreases

• Increased metallurgical recoveries

• −Adoption of modern tin recovery equipment

• −Copper and silver , encouraging results to date

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15.

Pembroke (Qld) – shallow gold / copper and deeper nickel

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• Re-interpretation of zone of gold / copper based on recent geochemical program an d prev ous r i d illi ng − Shallower and dipping to south

• − Potential for discrete lenses of mineralisation across strike

• Opportunity for early cashflow from copper & gold ahead of deeper nickel

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Significant Intersections from previous drilling at Pembroke*

Drill Hole #	Depth (m)	Interval (m)	Grades	Au(eq) 1 (g/t)	Announcement Date
PEM2	8‐28	20	0.48%Cu, 1.5g/t Au	2.39	June 2008
PEMD1	18‐39	21	1.04%Cu, 2.09g/t Au	4.03	24/11/10
PEMD3	0‐4	4	0.13%Cu, 2.33g/t Au 0.26% Ni	2.57	2/03/10
PEMD4	26‐33	7	0.68%Cu, 2.1g/t Au, 4.8g/t Ag	3.45	2/03/11
PEM18	18‐40	22	0.33%Cu,0.30g/t Au	0.91	15/12/11
PEM20	12‐18	6	1.22 g/t Au	1.22	15/12/11

•Unchanged historical exploration results

1Au(eq) is based on a gold price of US$1,385/oz, copper price of US$ 3.77/lb & silver price of US$22.62/oz. No adjustment has been made for metallurgical recovery as these remain uncertain at this time. Au (eq) formula is Au(eq) = Au g/t+[(Cu% x 22.0462 x 3.770) / (1385 / 31.104)]+[(Ag g/t x 22.62 / 31.104 ) / ( 1385 / 31.104 )] + ( Ni% x 0 )

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16.

Heazlewood River (TAS) – Avebury nickel style target

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Anomaly E
(Magnetic Target)
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• Heazlewood River EL located adjacent to Waratah Road (NW Tasmania)

• Historic nickel, chromium and iridium production (1890s)

• Potential for Avebury style m nerai lisation at Anoma y l E g ven i evidence of:

• −secondary magnetite alteration (confirmed in the field) with probable granitic sources

• −some evidence of addition of sulfur to the s stem - heazlewoodite at y

• Lord Brassey

• −a potential fluid pathway with the steep bounding faulted contact at Nickel Creek

• −nickeliferous serpentinised dunite host rocks (evidenced by remobilised Nickel eg: Zaratite at Lord Brassey) as a plausible trap site

17.

Jump Up Dam (WA) – strong potential for nickel sulphides

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• Jump-Up Dam 100km NNE of Kalgoorlie

• Herron Resource’s nickel laterite resource (67Mt containing 497,700t Ni & 27,400t Co)[1] fully contained within ’

• AusNiCo s EL 31/1031

• Magnetic surveys demonstrate ultramfics extend to SE and are coincident with high nickel in soil anomalies

• Anomalous gold in soil assays

• Stron electroma netic conductor g g

• (possibly graphite)

1 Herron Resources Ltd Annual Report 2012

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18.

Marlborough (Qld) – prospective for nickel, cobalt and chrysoprase

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• Native Title Agreement finalised, formal grant of EPM pen di ng

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• GPNL nickel mine to west

• Significant chromite po en t ti a l

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• Chrysoprase (substitute for jade) found on EPM and Candala mine to west

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• Unchanged historical exploration results

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Chrysoprase

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19.

AusNiCo represents a compelling investment opportunity

• Strong fundamentals for tin

• Merits of the Taronga Tin Project

• World class hard rock tin asset located in NSW

• Simple metallurgy

• Located close to existing infrastructure

• Supportive local community

• Develo p ment p ro g ram tar g etin g tin p roduction b y 2017

• Exciting tenement package prospective for nickel sulphides and other commodities

• AusNiCo offers an attractive investment opportunity

• Significant upside through exploration and metallurgical success

• Undervalued by any metric

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20.

Closing

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Thank you for your attendance. Questions?

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21.