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GATEWAY MINING LIMITED — Investor Presentation 2013
Mar 17, 2013
64999_rns_2013-03-17_87065d61-7aa4-47d9-9de5-ab6e041b2f4f.pdf
Investor Presentation
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Gateway Mining Limited
Investor Presentation March 2013
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Disclaimer
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This presentation has been prepared by the management of Gateway Mining Limited (the Company) for meetings with investors, brokers, analysts and other interested parties. The information is based on publicly available information, internally developed models and other available sources. Where an opinion is expressed, it is based on the assumptions and limitations mentioned herein and is an expression of present opinion only. No warranties or representations can be made as to the origin, validity, accuracy, completeness, currency or reliability of the information. The Company disclaims and excludes all liability (to the extent permitted by law), for losses, claims, damages, demands, costs and expenses of whatever nature arising in any way out of or in connection with the information, its accuracy, completeness or by reason of reliance by any person on any of it.
This presentation contains “forward-looking information” within the meaning of applicable securities legislation. Forward-looking information may include, but is not limited to, information with respect to the future financial and operating performance of the Company, its affiliates and subsidiaries, the estimation of mineral reserves and mineral resources, realisation of mineral reserves and resource estimates, costs and timing of development of the Company’s projects, costs and timing of future exploration, timing and receipt of approvals, consents and permits under applicable legislation, results of future exploration and drilling and adequacy of financial resources. Forward-looking information is often characterized by words such as “plan”, “expect”, “budget”, “target”, “Project”, “intend”, “believe”, “anticipate”, “estimate” and other similar words or statements that certain events or conditions “may” or “will” occur.
Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from those expressed or implied by such forward-looking information, including risks associated with investments in publicly listed companies such as the Company; risks associated with general economic conditions; the risk that further funding may be required but unavailable for the ongoing development of the Company’s projects; changes in government regulations, policies or legislation; unforeseen expenses; fluctuations in commodity prices; fluctuations in exchange rates; litigation risk; restrictions on the repatriation of earnings by the Company’s subsidiaries; the inherent risks and dangers of mining exploration and operations in general; risk of continued negative operating cash flow; the possibility that required permits may not be obtained; environmental risks; uncertainty in the estimation of mineral resources and mineral reserves; general risks associated with the feasibility and development of each of the Company’s projects; changes in laws of regulations; future actions by government; breach of any of the contracts through which the Company holds property rights; defects in or challenges to the Company’s property interests; uninsured hazards; disruptions to the Company’s supplies or service providers; reliance on key personnel and retention of key employees.
Forward-looking information is based on the reasonable assumptions, estimates, analysis and opinions of management of the Company made in light of their experience and their perception of trends, current conditions and expected developments, as well as other factors that management believes to be relevant and reasonable in the circumstances at the date that such statements are made, but which may prove to be incorrect. The Company believes that the assumptions and expectations reflected in such forward-looking information are reasonable. Assumptions have been made regarding, among other things: the Company’s ability to carry on its exploration and development activities, the timely receipt of required approvals, the ability of the Company to operate in a safe, efficient and effective manner and the ability of the Company to obtain financing as and when required and on reasonable terms. Readers are cautioned that the foregoing list is not exhaustive of all factors and assumptions which may have been used.
Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable laws and regulations.
Competent Persons Statement:
The information in this report relating to exploration results and resources is based on information complied by Scott Jarvis who is a member of the Australian Institute of Geoscientists and is the Head Geologist at Gateway Mining Limited. Mr Jarvis is a qualified geologist and has sufficient experience which is relevant to the style of mineralisation and types of deposits under consideration and to the activity which he is undertaking, to qualify as a Competent Person as defined in the 2004 Edition of the “Australiasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr Jarvis consents to the inclusion in the report of the matters based on the information, in the form and context in which it appears.
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Executive Summary
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Gateway Mining Ltd (GML)
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Focused & experienced team
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Advanced VMS & gold exploration projects
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Strong cash balance & low administration costs
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Targeting a major VMS discovery in 2013 at flagship Gidgee project
Gidgee Project
| Capital Structure | Capital Structure |
|---|---|
| ASX Code | GML |
| Shares on Issue | 263m |
| Market Cap (@ 7c) | ~$19m |
| Options | 236m |
| Debt | Nil |
| Cash* at 10 Mar | ~$4.1m |
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All the hallmarks of a new VMS province
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Advanced exploration projects but minimal RC drilling
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Proven VMS and gold mineralisation throughout entire project
Financial Position
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Recently completed significant capital raising at 5cps
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Cash position of circa $4.1m*
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Sufficient cash to test large number of highly prospective targets
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*Includes term deposits, liquid assets, cash at bank
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Highlights
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2013 will be a turning point for Gateway – cash to fund significant exploration
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Restructured & recapitalised company
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Supportive, significant investors introduced to the company
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New Board and Management in place
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Intensive data review completed to delineate high probability targets
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Drilling to commence in February / March
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Sufficient Cash to fund exploration
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Tightly held register - top 40 Shareholders hold 90% of shares
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Strong Board
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- Trent Franklin FAICD BSc (Geology)– Non Executive Chairman
Qualified geologist with strong corporate experience; currently Managing Director of Enrizen Financial Group, formerly director of Australian Olympic Committee Inc & Australian Water Polo Inc; background in financial services, corporate advisory, strong expertise in corporate governance
- Andrew Bray BEc LLB (Hons) – Managing Director
Significant experience in equity capital raising for junior ASX listed companies, including resources companies; background in corporate advisory, mergers & acquisitions, property, investment banking; instrumental in introducing a number of significant, new investors to the Company in the recent placement
- Ian McDonald BSc (Hons) (Geology) – Non Executive Director
Highly experienced and respected geologist of almost 40 years’ standing; expertise in VMS and gold deposits; previously with Western Mining Corporation, North Limited, Jabiru Metals Limited, amongst many others
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Strong Management
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- Gary Franklin CPA (Fellow) BEc – Company Secretary & CFO
Certified Practicing Accountant; over 30 years’ experience in Company Secretarial and CFO positions, including with resources companies; previously Wambo Coal, Hartogen Energy Group, United Collieries, Mount Isa Mines Limited
- Scott Jarvis BSc (Geology) AusIGS – Head Geologist
Member of the Australian Institute of Geoscientists; highly experienced geologist with 16 years’ experience working as a Senior Geologist and Exploration Geologist on wide range of Australian resources projects; previously with Ramelius Resources Limited, Placer Dome Group, Gleneagle Gold Limited, Sons of Gwalia Ltd, and industry consultant CSA Global; strong expertise in exploration and resource development, resource modelling, evaluation of mineral provinces, and very strong skills in database management and interpretation.
- Alan Pellegrini BAppSc (Applied Geology) – Exploration Manager
Gidgee area expert; very strong knowledge of the Gidgee geology and history; consulted to a number of companies who have historically operated in the region; very strong expertise in exploration program design and tenement management & maintenance
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Project Location
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150km2 of tenements over the Gum Creek Greenstone Belt
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“The Belt is underexplored and there is significant potential for discovery of further large high grade gold deposits and base metal deposits” – Mark Creasy 1
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Gateway targeting major Volcanogenic Massive Sulphide (VMS) & Gold discoveries in 2013-14
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Very advanced exploration tenements – in excess of 60 drillready targets
1 Legend Mining Ltd announcement, 15/09/2004
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Project Location
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Wiluna (110km)
Meekatharra (153km) GIDGEE PROJECT
AREA
GIDGEE
Past Gold Operations
Approx 1 million oz
Produced; existing
infrastructure
MONTAGUE Western
Past Gold Operations
Approx 150k ozs produced Australia
historically
Meekatharra
Wiluna
Sandstone
Kalgoorlie
Perth
Sandstone (70km)
GDA94 Zone 50
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VMS Prospects
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Summary
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Gidgee project hosted in greenstone terrain of the Yilgarn Craton
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Highly prospective VMS targets – targeting high grade Cu/Zn deposits
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Significant untested Electromagnetic (EM) anomalies extending the entire project length – over 30km of potential strike length
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Shallow aircore/RAB drilling has historically returned typical VMS geochemical element suite: Cu, Zn, Pb, Au, Ag, As, Bi, Cd, Co, In, Sb, Mo, Sn, Se, Te coincident with EM anomalies highly suggestive of base metal fertility
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Discovery of ‘The Cup’ prospect in 2006 changed focus of Gateway from Gold to VMS
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VMS Deposits occur in clusters; strong likelihood of other VMS mineralisation nearby
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RC results at ‘The Cup’ include:
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76m @ 0.7% Cu including 20m @ 1.57%
Minimal follow up drilling
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44m @ 0.8% Cu including 9m @ 2.0%
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Only 9 RC holes drilled at ‘The Cup’; 300m known strike length but appears to be part of a much larger system & open to the north, south & east
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Potentially fertile VMS systems widely identified, with over 30km of prospective strike extent inside the current project area
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VMS Prospects
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Location of Gidgee project relative to nearby VMS mineralisation
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Horseshoe
Metals
Cu, Au
Horseshoe
Sandfire
Lights Resources Palaeoproterozoic
Cu, Au
DeGrussa
Meekatharra Wiluna Archaean
Yilgarn Craton
Cue Gidgee Project
Leinster
Mt Magnet
Sandstone Independence
MMG Ltd
Group
Cu, Zn, Pb, Au,
Cu, Zn, Ag, Au
Ag
Teutonic Bore
Scuddles
Jaguar
Golden
Bentley
Grove
Gossan Hill Leonora Laverton
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Project Overview - VMS
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Bevan
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Right Geological Environment for VMS deposits
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Typical VMS terrain - Mafic Volcanics and Felsic/Intermediate Volcanic/Volcaniclastic Sequence (Achaean - Primitive Type) typical of ‘Bi-Modal Mafic’ packages which host a number of VMS deposits in the Yilgarn
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30 km of prospective strike extent inside the project area
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The ‘Montague Granodiorite’ intrusion is the probable source of felsic volcanic activity and the “ heat engine” which drove the VMS mineralisation – chemical composition of the granite is typical of sub-volcanic intrusions associated with this style of VMS
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Numerous outcropping gossans , indicative of massive sulphide accumulations
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Shallow transported cover (approx. 10m) overlies a significant proportion of prospective strike in the southwest of the project area at Gossans Galore and Gravel Pit, representing a significant exploration frontier
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Project Overview - VMS
All the hallmarks of a Fertile VMS System
- Alteration (sericite and chlorite) indicative of VMS systems identified widely across the project area in litho-geochemical test work
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The Cup - Significant Cu Discovery
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MLTEM and VTEM anomalies geophysical surveys have located numerous conductive anomalies – VMS deposits are typically characterised by EM anomalism
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Geochemical sampling of surface and subsurface gossan has identified wide spread anomalism for Cu, Zn, Ag, Au, Bi, Co, Mo, Sn, As, Sb, Se & Te typical of VMS Archaean Primitive Type mineralisation
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Many areas with strong geochemistry have coincident EM conductors, suggesting base metal fertility below historical shallow drilling
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RC, Aircore and RAB drilling have intersected significant Cu and Zn anomalism across the project’s entire prospective strike extent
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Early exploration endeavour has intersected significant copper mineralisation at The Cup
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Minimal exploration to the south of The Cup (Gravel Pit - approx 12km of prospective strike) has shallow anomalism of similar magnitude to that at The Cup – believed to be part of the same structure
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Gossans Galore
Gravel Pit
SW Exploration Frontier - shallow
transported cover and multiple MLTEM
conductive anomalies
GDA94 Zone 50
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Drill Targets (1[st] half ‘13)
Drilled February/March, 2013 (awaiting results)
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RC Drilling tested the following targets (see
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next slides)
Bevan & Bigfinger
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Bigfinger & Bevan prospects
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Birthday Gossan
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The Cup
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Snake Gossan
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Snake Gossan
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Aircore drilling to better define targets
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(targeted commencement April / May, 2013)
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Gravel Pit Conductor 1 (~4.5km)
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Gravel Pit Conductor 2 (~3.5km)
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Gossans Galore
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Gravel Pit
Conductor 1
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Gravel Pit
Conductor 2
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Gossans Galore
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The Cup
Birthday
Gossan
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Gravel Pit
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Drill Targets (Feb-Mar)
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5.7% Cu rock
chip sample
Bevan
Shallow line of angled
RAB drilling, max dh
depth 35m;
anomalous in Cu & Zn
Strongest part of the
VTEM Conductor;
conductivity better as
moves south
Awaiting results –
testing northern tip of
conductor
Bigfinger
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Bevan and Bigfinger
•Historic surface rock chip sampling is highly anomalous for copper and zinc, up to 5.7% Cu
•Historic angled RAB drilling intersected copper and zinc mineralisation from surface – anomalous zones in orange, >0.2% Cu
•VTEM conductivity increases to the south along strike of strongly mineralised drilling at Bevan; yet to be tested; planned testing for RC program in July
•Next drill testing of southern mineralised extent at Bevan is 100m along strike and consists of shallow angled RAB drilling only, maximum of 35m down hole depth- does not test conductive zone below
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Background: VTEM Survey - Heli
Flown 100m line spacing, ch23
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•Wide intersections of zinc anomalism at Bigfinger, potential for strong copper and zinc mineralisation nearby
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Drill Targets (Feb-Mar)
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- Strong prospect– part of 4km long trend (MLTEM conductor)
Birthday Gossan
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Coincident gossan outcrop and sub-crop in strongly weathered terrain - minor exploration to date
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Rock chip sampling Anomalous for copper and zinc Highly anomalous pathfinder element
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concentrations for Bi, Mo, Sn, Se and Ag.
As and Sb are also anomalous. Pathfinder elements are relatively immobile during weathering and potentially indicate target metal concentration below the highly weathered, metal depletion zone
Rock chip sample: Cu - 0.09% Zn - 0.004% Ag – 5.14g/t Bi - 8.08ppm Mo – 6.28ppm Sn – 9.4ppm Se – 32ppm
- One hole drilled - GRC225 (did not test sulphide zone)
Intersected highly weathered gossanous material from 15–35m. Anomalous base metals and promising pathfinder element concentrations.
Target Metals in depleted zone (max dh grades) Cu - 0.076%, Zn - 0.13%
Pathfinder Elements (max dh grades)
Bi - 7.11ppm (aprx. 4 times greater than at The Cup mineralisation) Mo – 6.91ppm (aprx. same level as at The Cup mineralisation) Sn – 10.9ppm (aprx. 2 times greater than at The Cup mineralisation) Ag – 0.48g/t (aprx. 1/3[rd] level at The Cup mineralisation)
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Drill Targets (Feb-Mar)
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confirmed VMS mineralisation The Cup –
Plan View - Drill Hole Pierce Points (recent drilling only)
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Cross Section 6968000mN (+/- 25m window)
GRC198: [email protected]%Cu from126m
4m@ 1.46% Cu from 69m
18m@ 1.48% Cu from 74m
27m@ 1.42% Cu from 89m
GRC209: [email protected]%Cu from 72m
GRC200: [email protected]%Cu from 68m
GRC199: [email protected]%Cu from 58m
AGD84 Zone 50
GRC183: [email protected]%Cu from 71m
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GRC198: [email protected]%Cu from126m
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AGD84 Zone 50
Drill Targets (Feb-Mar)
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Snake Gossan Trend
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Historic line of shallow
angled RAB drill holes:
16m@ 0.27% Cu from
surface to EOH
Historic aircore drill hole:
34m @ 0.07% Cu from surface
Awaiting results from
holes recently drilled
Historic RC drill hole:
13.7m @ 0.26% Cu from
15.2m
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• Geophysical & Geochemical results point towards a base metal system
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•1.4km trend of strong VTEM conductivity
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•Minimal RC drilling
•Drilling in February to test below previous RAB hole (16m @ 0.27% Cu from surface to EOH); targeting higher grades in sulphide zone (yet to be tested).
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•Drilling to also test below historic hole (13.7m @ 0.26% Cu from 15.2m)
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Historic surface rock chip sampling is highly anomalous
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for copper and zinc coincident with EM conductor
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Historic shallow drill intersections are strongly
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anomalous for copper
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Background: VTEM Survey - Heli
Flown 100m line spacing, ch23
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•Little to no drilling below significant shallow intersections to test mineralisation at a depth in the weathering profile that is appropriate to assess primary/supergene grade 17
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Drill Targets (April -May)
Aircore Program – late April commencement
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1km
Gravel Pit Gravel Pit
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Gravel Pit Gravel Pit Conductor 2 Conductor 1 (~4km length) (~4.5km length)
Gossans Galore area
Planned aircore hole Previous aircore hole
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Extremely promising prospect
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Almost no RC drilling in area
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Very strong EM conductors, with coincident geochemical multielement VMS anomalism, and zones of massive sulphides, semi-massive sulphides & gossans , point towards base metal fertility
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Aircore program designed to achieve better spatial definition of conductors & identify likely zones for ore-grade intersections
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Conductor 1: southern EM extension of known VMS mineralisation at The Cup
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RC drilling planned for July / August
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Other Gidgee Prospects
Airport Area ( 85% Gateway; 15% Goldfan Ltd)
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OVERVIEW
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4km long gold trend
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Advanced Project
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Historically mined areas during the
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1980s by Herald Resources
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Existing 25,600 oz JORC inferred
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resource at Whistler Pit
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WRC017 - 9m @ 33.82 g/t Au
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Significant exploration success
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Potential for resources to extend
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under old pits
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Many prospects requiring follow up
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work
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Most drilling work done between
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2001-2004 – very little activity since • Potential to significantly expand
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existing Whistler resource
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Minimal drilling done at depth
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Other Gidgee Prospects
Victory Creek ( 75% Gateway; 25% Estuary Resources Ltd)
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Subject to JV with Placer Dome in 2006 prior to takeover by Barrick Gold
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Placer “targeting minimum 5.0 million oz gold resource”[1]
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Placer interpreted Victory Creek as having similarities to the Wallaby Deposit (7.1m ozs Au)
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Very strong multi-element anomalism & broad zones of gold mineralisation (0.4 – 0.5 g/t Au) near surface
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JV terminated early upon Placer takeover by Barrick Gold
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Yet to be properly tested
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Potential remains for Victory Creek to host an exceptionally large gold resource
1 GML Announcement 20/01/2006
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Summary
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Exciting and highly prospective exploration company
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Significant untapped potential
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Gateway’s Gidgee projects have all the hallmarks of a major new VMS province , along with several extremely significant gold targets
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Numerous drill ready targets
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Upcoming drilling programs well funded
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Supportive, long-term investors
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Experienced and proactive management and exploration team
For Further Information: Andrew Bray
+61 401 025 002
02 9191 4543
www.gatewaymining.com.au
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