Skip to main content

AI assistant

Sign in to chat with this filing

The assistant answers questions, extracts KPIs, and summarises risk factors directly from the filing text.

CRITICAL RESOURCES LIMITED AGM Information 2017

May 30, 2017

64708_rns_2017-05-30_9a3c812b-41e3-4029-9814-3710491abb0c.pdf

AGM Information

Open in viewer

Opens in your device viewer

31 May 2017

ASX Announcements Office ASX 152-158 St Georges Terrace Perth WA 6000 Australia

Electronic lodgement

AGM PRESENTATION MATERIALS

Force Commodities Limited (Force or the Company) (ASX: 4CE) hereby provides a copy of the presentation materials that will be addressed by the Company's Chairman and Executive Director at the Company's 2017 Annual General Meeting (AGM) to be held at llam (WST) today.

Yours sincerely FORC£,COMMDITIES LIMITED

MICHAEL FRY COMPANY SECRETARY

Chairman's Address - 2017 AGM

"As was mentioned in my Chairman's Letter which accompanied the 2016 Annual Report, the resources industry has experienced a recent period of uncertainty but now enters an era of renewed interest and optimism, with commodity prices having shown improvement, and increased investment market activity in terms of raisings and M&A activity.

Structural adjustments are often required in changing times and at Force we too are adjusting with these changing times.

Our Company has recently taken the strategic decision to bring in a new Board and management to reinvigorate our Company and to bring in the necessary skills and disciplines required to take your Company forward.

Myself and my fellow directors, with the exception of Patrick, are all newcomers to your Company.

Besides having strong expertise in our chosen fields, I am confident in saying to you, our shareholders, that we three are men of strong principle and ethics. Indeed a number of shareholders have telephoned the Company to congratulate us, the newcomers, on what many consider to be a much improved quality of ASX announcements and the level of disclosure being made. I can assure shareholders that as long as I am Chairman and as long as men of the calibre of Alistair and Peter are involved this will continue to be the case.

The new Board together with a new management team are all well versed in the areas of finance, geology, mining and metallurgy.

As a Company we have aggressive plans to advance the Company's projects and in so doing expect investors and analysts to better understand our projects, their prospects and most importantly their value.

We look forward to reporting back to you on our progress as calendar year 2017 unfolds."

MARK DARRAS CHAIRMAN

AGM Presentation

AGM to be held at:Hotel Northbridge210 Lake Street, Northbridge, WA 6003on 31 May 2017

ASX:4CE

www.forcecommoditjes.com.au

Disclaimer

This presentation has been prepared by Force Commodities Limited (Force or the Company) based on information from its own and third party sources and \s not a disclosure document. No party other than the Company has authprisecl or caused the issue, lodgement, submission, despatch or provision of this presentation, or takes any responsibility for, or makes or purports to make any statements, representations or undertakings in this presentation.

You should be aware that as an Australian company with securities listed on the ASX, the Company is required to report. reserves and resources in Australia in accordance with the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (The JORC Code 2012 Edition') ("JORC Code"). You should note that while the Company's reserve and resource estimates comply with the JORC Code, they may not comply with the relevant guidelines in other countries.

This is a presentation about geology, geoscientific interpretation, geoscientific speculation, gold deposits, gold potential, base metal deposits, base metals potential, enjgineering, infrastructure, potential values, costs, risks, a'hd reTated matters pertinent to ForceTs present and future activities as a publicly listed mineral exploration and production company. It includes forecists, predictions, This is a presentation about geology, potential values, costs, risks, a-nd related targets and estimates which may vary over time.

It is uncertain if further exploration will result in the determination of a Resource pr Reserve. Where exploration, evaluation/ operational and feasibility study expenditure estimates and budgets amounts are presented herein, ongoing prioritisation and scaling of expenditures will be subject to results and, where applicable, scheduling changes. Targeted production and other oytcomes^are subject to change, and may not eventuate, depending on the results of ongoing performance and assessment of data. All Reserves and Resources as referrecTto herein are in accordance with the JORC {e. Refer toTast slide of this presentation for the relevant Competent Person statements. Resources are inclusive of Reserves.

Certain statements contained in the Presentation Materials, including information as to the future financial or operating performance of the Company and its projects, are forward looking statements. Such forward looking statements:

  • are necessarily based upon a number of estimates and assumptions that, while considered reasonable by the Company, are inherently subject to significant technical, business, economic, competitive, political and social uncertainties and contingencies; a)
  • b) involve known and unknown risks and uncertainties that could cause actual events or results to differ materially from estimated or anticipated events or results reflected in such forward looking statements; and
  • c) may include, among other things, statements regarding estimates and assumptions in respect of prices, costs, results and capital expenditure, and are or may be based on assumptions and estfmates related to'future technical, economic, market/political, social and other conditions.

The Company disclaims any intent pr obligation to publicly update any forward looking statements, whether as a result of new information, future events or results or otherwise. The words "believe", "expect", "anticipate", "indicate", "contemplate", "target", "plan", "intends", "continue", "budget", "estimate", "may", "will", "schedule" and similar expressions identify forward looking statements.

All forward looking statements contained in the Presentation Materials are qualified by the foregoing cautionary statements. Recipients are cautioned that forward looking statements are not guarantees of futu're performance and accordingly recipients are cautioned not to put undue relFance on forward looking statements due to the inherent uncertainty therein. The Presentation Materials do not purport to be all inclusive or to contain all information about the Company.

This presentation is not a prospectus, disclosure document or other offering document under Australian law or under any other law. It is provided for information purposes and is not an invitation nor offer of shares for subscription, purchase or sale in any jurisdiction.

Take care to question and carefully evaluate any judgments you mi^ht make, on the basis of the Presentation Materials, as to the value of Force and its securities. This presentation is not intended to provide the sole or principal basis of any investmenfor credit decision or any^ other risk evaluation and may not be considered as a recommendation by Force or its officers. Any investor reading the Presentation Materials should determine its interest in acquiring securities in 'Force on the basis of independent investigations that it considers necessary, prudent or desirable.

Force and its officers do not accept any liability for any loss or damage suffered or incurred by any investor or any other person or entity however caused (including negligence) relating in any way to this presentation including, without limitation, the information contained in it, any errors or omissions however caused by any other person or entity placing any reliance on the Presentation Materials, its accuracy or reliability.

Introduction

  • a New Board and Management team commenced in March 2017
  • a Hands-on experience in resource definition and project development
  • a Focussing on realising value through progression of projects into production
  • a Dual pursuits: base metals and gold
  • a Key Projects (in New South Wales):
  • Halls Peak : high grade zinc (Zn), lead (Pb), copper (Cu), silver (Ag)
  • Mt Adrah 770k oz gold (Au): near surface exploration for high grade gold veins

"Our Mission is to strive to achieve excellence in all aspects of our business, to provide long term capital growth and dividend return to our shareholders, a safe and rewarding work environment for our employees, and opportunities and benefits to the people in the communities we operate in."

Board of Directors, Force Commodities Limited

Core Values and Beliefs

At Force we believe a successful culture doesn't happen by accident.

The new management team has established a set of core values and beliefs under which Force is to operate. Some values we currently perform, while others are aspirational.

We commit to all stakeholders to embody these values and beliefs in all that we do.

to engage, empower and encourage
to engage, keep informed, and be understanding; to provide opportunities for training,
employment and business development
to preserve and not to disturb; to rehabilitate to the highest standards
to be open, honest and transparent; to operate with integrity and objectivity, striving at
all times to enhance the reputation and performance of Force

'Core values are what you start with; culture is what you end up with"

Corporate Snapshot M

Overview Share Price History (past six months)
Shares on issue (ASX: 4CE): 215 million
Total No. Of Holders:
Top 20 holding:
1, 167
37.40%
Options: 5 million
16.
Market cap (@ 2.
2 eps)
\$4.
7 million
Cash (at end April 2017) \$1.
3 million
Non-Executive Chair Mark Darras
Executive Director Alistair Stephens
Non-Executive Director Patrick Glovac
Non-Executive Director Peter Smith
CFO / Company Secretary Michael Fry
Resource Development Manager Geoff Chapman
Project Development Manager MarcSteffens
Community & Environment Manager Renee Grogan

Our Projects

Location Licence Number Status Expiry Date Area
(square Kms)
Rocky River-Uralla EL 7491 renewal sought 29-Mar-17 148
Rocky River-Uralla EL 6483 granted 12-Nov-19 163
Halls Peak EL 4474 granted $12$ -Jan- $18$ 11
Halls Peak EL 5339 renewal sought 29-Jan-17 15
Halls Peak EL 7679 granted $11$ -Jan- $18$ 73
Mt Adrah EL 6372 granted $2-Feb-20$ 28
Mt Adrah EL 7844 granted 20-Sep-18 28
Mt Adrah ELA5334 Under application pending 140
TOTAL 602

Halls Peak Project - Overview

  • □ Located 65 km SW of Armidale, NSW
  • Intermittent small-scale mining of Zn/Pb/Cu/Ag ores across multiple locations within the Halls Peak project area between 1916 and 1967
  • $\Box$ No mining activity since 1967
  • Recent drilling (2014 -2016) intercepted significant widths of high grade Zn/Pb/Cu/Ag mineralisation
  • $\Box$ Drilling results indicate the strong potential for development of multiple, shallow, high grade Zn/Pb/Cu/Ag deposits
  • $\Box$ Initial focus is at Gibsons
  • Gibsons is located on Crown Land Special Mining Reserve
  • $\Box$ No Native Title
  • □ Near established infrastructure (road, rail, power)
  • Access to skilled labour from Armidale region EL4474, EL5339: 100% owned EL7679: 55% owned

Halls Peak Project - Gibsons

Mineralisation - Gibsons

  • $\Box$ Interpreted to be a volcanogenic massive sulphide (VMS) deposit
  • □ Mineralisation exposed at surface and much of the mineralisation identified from drilling lies in up to four different sub-vertical horizons (lenses)
  • □ Lenses with typical dimensions of:
  • widths 0.30 to 20m; $\mathbf{u}$
  • lengths of up to 150m; $\blacksquare$
  • depths of at least 100m; open $\blacksquare$
  • $\Box$ Mineralisation grades reported of up to 48% Zn, 27% Pb, 7% Cu and 1900 g/t Ag
  • □ Metallurgical test-work indicates substantial density difference between gangue and base metal minerals, indicating low cost gravity concentration techniques are applicable

Halls Peak Project - Exposed mineralisation at Gibsons

Image 1: High grade Zinc exposed on wallofGibson'spit.

mineralisation exposed inwallofGibson'pit. in rocks on the floor of Gibson's pit. Gibsons Pit

Image 2: Close-up of near pure Zinc Image 3: High-grade Zinc mineralisation Image 4: Copper lode exposed in wall of

"The above images show the exposures of mineralisation and extent of disturbance and provides an insight into the ease of access of mining operations" Alistair Stephens, Executive Director

Halls Peak Project- Upcoming Drill Program

  • a The plan view alongside shows the following:
  • mineralisation (shown in red) is interpreted from historic mapping, historic drilling and recent drilling
  • location of previous drilling
  • drill-hole plan (location, angle, depth, target) for upcoming drill program
  • a Drilling planned for July 2017:
  • delineation for resource estimate
  • test proximal extensions

Halls Peak Project - Cross-Section A - A/

  • a The cross-section A-A' alongside shows:
  • extent of mineralisation down-dip
  • opportunity for additional mineralisation down-dip
  • potential for additional near-surface mineralisation
  • a Best intercepts include:
    1. 8m@16. 8%Zn(SG01)
    1. 3m (5)15. 2% Zn(SG03)
    1. 6m @9. 8%Zn(PMR26)
    1. 4m @5. 7% Zn (PMR28)
  • a High grade lead, copper and silver associated with zinc

Table: Previously reported drill intercepts

www.forcecommodities. com. au - ASX:4CE

hlalls Peak Project - Cross-Section B - B/

  • a The cross-section B-B' alongside shows:
  • potential to extend mineralisation
  • potential to find new mineralisation
  • potential for underground mining without the need for waste development i. e. strike drive directly into mineralisation

Halls Peak Program - Summary Work Program

Item Program Expected
Timing
Data collation Data collation for known mineralisation Complete
Environmental studies Establish environmental base line data collection program 2017
H2,
Drilling Drill shallow high grade areas of mineralisation: collect mineralisation, geotechnical,
hydrological, and waste characterisation data for resource modelling
Q3, 2017
Metallurgical /Engineering Laboratory test work program to determine metallurgical characteristics of
mineralisation, develop the (non-chemical) process route and marketable product
Q3, 2017
Resource statement Publish a resource statement that meets JORC guidelines 2017
Q4,
Mine Design Undertake mine design and logistics plan Q4 2017
Approval Process Project Development Plan 2018

Mt Adrah Project - Overview

  • □ Located 30 km SE from Wagga Wagga, NSW
  • □ 25km NW of township and historic mining centre of Adelong, where gold was first discovered in 1841
  • □ the Project hosts the Hobbs Pipe deposit which has a mineral resource (JORC 2012) of 20.5 Mt @1.1 g/t Au (for 765,900 oz gold)
  • □ regionally situated at the southern end of the Lachlan Fold belt, a zone in New South Wales containing many mineral deposits and mines
  • located west of the Gilmore $\Box$ Suture, a major north northwest trending tectonic feature
  • The Gilmore Suture broadly defines a 300km long belt of gold mineralisation in which several significant mines and numerous prospects are located including Lake Cowal, West Wyalong, Gidginbung-Temora and Mt Adrah

Mt Adrah Project - Hobbs Pipe Mineral Resource

JORC (2012) resource for Hobbs Pipe deposit (2013 - AMC Consultants)

Oxide 0.4 0.6 0.9 17, 800
Primary 0.9 3.0 1.0 95, 800
Primary 0.9 8.5 1.2 324, 000
12.1 1.1 437, 600
Primary 0.5 0.2 0.6 39, 000
Primary 0.9 8.2 1.1 289, 300
8.4 1.1 328, 300
Total 20.5 1.1 765,900

For full details of resource statement refer ASX announcement dated 27 December 2013

Mt Adrah Project - Drilling to target High Grade Vein Mineralisation

  • a Hobbs Pipe deposit is well defined
  • a Previous drilling identified presence of high grade veins
  • a Upcoming drilling program designed to test continuity of veins
  • a Near-suri:ace high-grade mineralisation will significantly boost project economics

^ COMMODITIES

Mt Adrah Project - Regional Opportunity

  • a Numerous gold occurrences in the immediate vicinity of the Hobbs Pipe resource that remain un-tested
  • a In-housegeochemical analysis of hlobbs Pipe has generated a signature for identifying replicas of the Hobbs Pipe style mineralisation
  • a Prospective corridor is dominantly un-tested
  • a Project area lies within the right structural trend for significant discoveries

Mt Adrah Project - Summary Work Program

Item Program
Data collation Data collation for known mineralisation Completed
Environmental studies Establish environmental base line data collection program 2017
H2,
Drilling Phase 1: White Deer Reef-drilling to target lode style gold mineralisation beneath
historic mine workings for purposes of determining extent of near-surface high
; grade vein mineralisation
Q2, 2017
Metallurgical [ i
Laboratory test work program to determine metallurgical characteristics of
mineralisation
2018
Drilling Phase 2: White Deer Reef - follow-up drilling to test extensions of vein
mineralisation (if Phase 1 successful)
Q4, 2017
Drilling Phase 3: White Deer Reef - in-fill drilling of vein mineralisation to support resource
definition (if Phase 2 successful)
2018
Resource statement statement ,
; Publish an updated JORC
2018

n Summary COMMODITIcS

What we have done:

  • a Installed a new board and management team with relevant skills and complementary expertise
  • a Introduced a corporate culture based on core values and beliefs encompassing re-worked corporate governance charters and policies
  • a Reviewed and collated available project data
  • a Developed a plan for project development leading to value generation for shareholders

What we will do:

  • a Aggressively progress Halls Peak Project, involving:
  • drilling
  • resource statement
  • mine plan
  • community engagement
  • development schedule to production
  • a Mine Halls Peak as soon as approval given
  • low capex, high margin, low technical and market risk
  • a Advance Mt Adrah Gold Project
  • Identify and define high-grade, near-surface mineralisation
  • a Achieve re-rating of our projects which in our view are significantly under-valued by market

Competent Person Statement

Mt Adrah Gold Project

  • The information in this presentation that relates to Mineral Resources in relation to the Mt Adrah Gold Project is extracted from an ASX Announcement dated 27 December 2013, (see ASX Announcement - 27 December 2013 "Hob'bs Pipe - Mineral 'Resource Update Additional Information", www.forcecommodities. com. au and www. asx. com. au).
  • The information in this presentation that relates to Exploration Results in relation to the Mt Adrah Gold Project is extracted from an ASX Announcement dated 27 November 2013, (see ASX Announcement - 27 November 2013 "Bonanza hit of 1. 2m @ 58. 6 g/tAu confirms multiple high-grade structures at Mount Ad rah") and from an ASX Announcement dated 27 July 2016, (see ASX Announcement -27 July 2016 "MtAdrah Gold Project Targets High Grade Gold Potential"), both of which are available for viewing at www.forcecommodities.com. au and www.asx.com. auj.
  • The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcements and that all'materidl assumptions and technical parameters underpinning the Exploration Results or Minerals Resource estimates in the relevant market announcement continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Person's findings are represented have not been'materially modified from the original market announcement.

Halls Peak Base Metals Project

  • The information in this presentation that relates to Exploration Results obtained by Frontier Caprtal Group Limited in relation to the Halls Peak Base Metals Project is extracted from an ASX Announcement dated 3 January 2014, (see ASX Announcement - 3 January 2014 "Promising Results - Initial Halls Peak Drilling"), which is available for viewing at www.fcgl. com. au and www.asx. com. au^.
  • The information in this presentation that relates to Exploration Results obtained by Sovereign Gold Company Limited in relation to the Halls Peak Base Metals Project is extracted from an ASX Announcement dated 19 February 2016, (see ASX Announcement - 19 February 2016 "Halls'Peak Exploration Update"), and an ASX Announcement 29 December 2016 (see ASX Announcement - 29 December 2016 "99. 1m Intersection - Up to 46% Zinc Mineralisation Extended"), both of which are available for viewing at www.forcecommodities. com. au and www.asx. com. au.
  • The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcements and that all material assumptions and technical parameters underpinning the Exploration Results or Minerals Resource estimates in the relevant market announcement continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Person's findings are represented have not been'materially modified from the original market announcement.