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GREENWING RESOURCES LTD — AGM Information 2007
Nov 26, 2007
65029_rns_2007-11-26_ec66248d-367c-455d-86c2-8a9d0b7fb075.pdf
AGM Information
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A Review & Update for Shareholders
Annual General Meeting of Shareholders 27 November 2007
Mike Rosenstreich Managing Director
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Disclaimer
An important notice
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Statements contained in this material, particularly those regarding possible or assumed future performance, costs, dividends, production levels or rates, prices, reserves or potential growth of Bass Metals Ltd, industry growth or
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other trend projections are, or may be, forward-looking statements. Such
statements relate to future events and expectations and, as such, involve
known and unknown risks and uncertainties. Actual results and developments
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may differ materially from those expressed or implied by these forward looking
statements depending on a variety of factors.
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solicitation of an offer to buy or sell shares in any jurisdiction.
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Discussion Outline
A review and update
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1. Review year’s results Early Exploration
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Advanced Projects
Mine Development
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2. Base Metals Business Update
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Que River Operations
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Growth opportunities – Hellyer focus
3. Corporate Review
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4. Wrap up
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Review of the year’s results
Early Exploration milestones
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Discovery early stage successes • Switchback – new “Hellyer style” alteration system with 2
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to 5% Pb + Zn.
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� 3.5 metres at 5% Pb, 1.1% Zn, 4 oz./t Ag and 1.1 g/t Au,
� Including a 0.7m interval grading 21.6% Pb, 3% Zn, 550g/t Ag and 3.7
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•
Southern Barite Lens – unexpectedly thick & high-grade
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Ni-Co-Cr in soil anomalies at Heazlewood.
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ranging from 3,642 to 5,135 ppm (0.36 to 0.51%) Ni.
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Review of the year’s results
Advanced Exploration milestones
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– Advanced projects track record of growth
- Base metals resource
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� June 2007 - 736kt resource at Que River (includes reserves)
� October 2007- 750kt at 15% Zn (eq) at Hellyer – total resource now at
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1.5Mt at 15% Zn (eq)
� Current contained metal - 94kt Zinc, 52kt lead, 11kt Copper, 4.0Moz
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•
Gold Resources
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March 2005 - No Mineral Resources
� October 2006 – 6.1Mt at 1.2g/t Au & 36 g/t Ag (380koz Au eq.)
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Review of the year’s results
Mine development milestones
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Que River mine development milestones
• Oct 2006 submitted a development plan (DPEMP) for Que Rive
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March 2007 – Government approvals received.
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Feb-May 2007 – Trial mining and Hellyer ore trials completed.
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June 2007 signed HoA with Zinifex for Ore Sales Agreement.
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August 2007 Zinifex ore trials completed and BSM Board
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•
September 2007 site establishment activities start and first ore
delivered to ZFX-Rosebery plant on 24 September 2007.
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Base Metals Update Que River Mine
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75km south of Burnie 4km south of Hellyer deposit 42 km by road from Rosebery
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Base Metals Update
Que River Mine
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• Stage 1 -2 open pits; PQ pit and S-Lens pit.
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Utilising significant
infrastructure from pre-
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(1978-91)
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Pre-start cost estimate
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of A$0.5M is on track
(somewhat under)
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weeks behind &
catching up.
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(1 in 100 year rainfall event delayed
water dam construction.)
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Base Metals Update
Que River Mine
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Initial surface clearing & blasting at S-Lens
Project is managed for BSM by local, experienced mining group Mancala Mining Pty Ltd under an Alliance Agmt.
Mancala’s drill & blast rig
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Base Metals Update
Que River Mine
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PQ North (7650 ore pod) Grade control drilling
Strong geological control identified approx. another 1,000t of high-grade (c.25% Zn) additional to the current Mine Plan at this location.
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Base Metals Update
Que River Mine
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PQ South – waste mining Productivity and unit costs on track toward budget –after initial impact of very wet/muddy conditions in pre-stripping. Operations now well into primary rock
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Base Metals Update
Que River Mine
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S-Lens Pit ore mining To contain water run-off, the water dam had to be complete before mining started at S-lens. Hence initial delay. S-lens pit now progressing well.
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Base Metals Update
Que River Mine
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PQ pit ore stockpile PQ ore – generally grading 15 to 25% Pb & Zn (also with payable Ag & Au) Early days but positive ore reconciliations
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Base Metals Update
Que River Mine
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S-Lens pit ore stockpile Generally grading 10 to 12% Pb & Zn (also with payable Ag, Au & Cu) Early days but also positive ore reconciliations
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Base Metals Update
Que River Mine
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Loading ore for delivery to Rosebery
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Polymetallic ore containing payable Zn, Pb, Ag, Au and Cu
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Ore Sales Contract for – 5,000 to 8,000t per month.
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Costs are on track as per budget forecasts of A$175/t sold
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Base Metals Update
Que River Mine
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Dewatering UG workings
Neutralisation in settlement dam
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Environmental Management – part of a sustainable mine operation
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Environmental management important aspect of Stage 1 operating plan, particularly water management related to legacy and existing mine operations.
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• Early optimisation work looking positive to utilise MgO instead of lime to increase pH and drop-out metals from run-off water; resulting in a better environmental impact at lower cost.
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Base Metals Update
Que River Mine
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PQ Pit
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S-Lens Nth Pit
Test Pit
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Looking SW at completion of Stage 1 mining phase
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Stage 1 – c. 120kt at 8% Zn, 4% Pb, .7% Cu, 99g/t Ag & 2g/t Au
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This is Stage 1 of a possible 4 stage mining plan spanning 3 to 5 years
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Base Metals Update
Que River Mine
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Key Risks
Metal prices
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Completed a floor price Pb & Zn hedging structure covering c. 65 to 70% of payable production
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Capped FX exposure at US$0.91 for all assumed Stage 1 US$ revenue
These hedges do not limit exposure to rising metal prices or falling FX rate Key Opportunities
Positive ore reconciliations - reducing the strip ratio increasing mined metals. Feasibility on possible stages 2 to 4 assessing the viability of the remaining 620kt Mineral Resource at Que River.
Operating improvements to focus on cost reductions.
Testing for shallow lens extensions and new lenses - highly prospective geological environment.
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Base Metals Update
Growth Opportunities
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1. Hellyer Mine Project – 0.75Mt resource & exciting resource potential at Southern Barite Lens
2. Que River
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several targets prospective for new mineralised lens positions
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Extensions to known lenses
3. Advanced targets – Farrell, Magnet & Oonah (significant historic production centres
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Advanced Base Metals Projects Hellyer Mine Project – new targets & resources
Que River Mining Area
Near surface
Hellyer Plant Site
Hellyer Deposit trend
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Hellyer Mine Portal
Plunging deeper to the North
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Hellyer Mine Project
World class high grade VHMS deposit
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- Pre mining Mineral Resource
17Mt at 14% Zn, 7% Pb, 0.4% Cu, 5oz./t Ag & 2.5g/t Au Mined between 1987 to 2000
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Hellyer Mine Project
Initial Mineral Resource estimate
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| >5% Combined Pb + Zn Lower Cut Off Summary of Classified Hellyer Mineral Resources October 2007 |
>5% Combined Pb + Zn Lower Cut Off Summary of Classified Hellyer Mineral Resources October 2007 |
>5% Combined Pb + Zn Lower Cut Off Summary of Classified Hellyer Mineral Resources October 2007 |
>5% Combined Pb + Zn Lower Cut Off Summary of Classified Hellyer Mineral Resources October 2007 |
>5% Combined Pb + Zn Lower Cut Off Summary of Classified Hellyer Mineral Resources October 2007 |
>5% Combined Pb + Zn Lower Cut Off Summary of Classified Hellyer Mineral Resources October 2007 |
>5% Combined Pb + Zn Lower Cut Off Summary of Classified Hellyer Mineral Resources October 2007 |
>5% Combined Pb + Zn Lower Cut Off Summary of Classified Hellyer Mineral Resources October 2007 |
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|---|---|---|---|---|---|---|---|---|---|---|
| Mineralisation Type | Category JORC Code |
(000's) Tonnes |
% Zn |
% Pb |
% Cu |
g/t Ag |
g/t Au |
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| Stringer Zones | Indicated | 255 | 4.4 | 2.7 | 0.4 | 48 | 0.9 | |||
| Remnant Pillar & Surrounds Base Metals Sulphide |
Indicated Indicated |
195 190 |
6.4 10.6 |
3.8 6.0 |
0.3 0.4 |
70 145 |
1.2 2.0 |
|||
| TOTAL INDICATED | 641 | 68 | 40 | 04 | 83 | 13 | ||||
| . | . | . | . | |||||||
Base Metals Sulphide Stringer Zones |
Inferred Inferred |
27 24 |
8.9 7.3 |
5.7 3.6 |
0.2 0.1 |
138 69 |
1.7 0.9 |
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| Remnant Pillar & Surrounds | Inferred | 56 | 8.0 | 5.1 | 0.3 | 109 | 1.6 | |||
| TOTAL INFERRED | 107 | 8.1 | 4.9 | 0.2 | 107 | 1.5 | ||||
| TOTAL MINERAL RESOURCE | 748 | 7.0 | 4.1 | 0.3 | 87 | 1.3 |
Estimate and classification by Coffey Mining with input from BSM and former Hellyer employees. Refer ASX Release (c 25 Oct 07) for full details.
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Hellyer Mine Project
750kt resource–without Southern Barite Lens
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SBL Resource target 750kt of Hellyer resources
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Hellyer Mine Project
Southern Barite Lens - resource target
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300m
13.5m at 6.7% Zn, 3.8 Pb, 170 g/t Ag & 3.6g/t Au
7.2m at 21.6% Zn, 9.7% Pb, 1.0% Cu, 142 g/t Ag & 2.3g/t Au
5.3m at 9.4% Zn, 5.4% Pb, 166 g/t Ag & 2.3g/t Au
57.5 metres at 9.2% Zn, 4.7% Pb, 94 g/t Ag & 2.89 g/t Au 14.3m at 4.7% Zn, 3.1% Pb, 190 g/t Ag & 4.4g/t Au
Pink text box, BSM result, others historic intercepts
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Hellyer Mine Project
Southern Barite Lens - resource target
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– SBL drilling resumed
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Hellyer Mine Project Plans • SBL drilling & resource
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• Scoping study on existing Hellyer resource
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• Met test work-process options.
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Corporate Snapshot
A review since the last AGM
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- -
2006 AGM 2007 AGM
Share price 29 cents 38 cents
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Mkt Cap $18M $38M
No. of shares 63.3M 99.8M
Shareholders c. 600 c. 1,300
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Cash $2.6M $5M (as at 31 oct.07 after Creditors)
Receivables $0.2M $1.5M (as at 31 oct.07)
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Inventory nil $0.2M (as at 31 oct.07)
Hedging nil 65-70% of Pb & Zn covered with Puts
•Avg. prices to Nov 2009 of:
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–Zn price of A$3,700 & US$2,250/t
–Pb price of A$3,000 & US$2,875/t
•FX - 100% of revenue is capped at US$0.91.
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Status Explorer Producer - under prudent management
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Proposition for BSM Investors
Production growth & exploration success
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Exposure to production and advanced projects
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Que River Mine; high grade, polymetallic-commenced production
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Significant resource base
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Hellyer – growth path for production leveraging off local infrastructure
advantages
Exposure to Discovery - the Elephant Hunt
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Positive results to date – Que, Hellyer, Iris River and Heazlewood
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Constantly drilling through the past year – up to 4 rigs at a time
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Spending c. A$4 million pa on exploration
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Exposure to volatile markets
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BSM is in the best shape ever with:
� Strong cash position
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� Cash flow from production – underpinned with uncommitted hedging,
� significant resource base comprising base metals & gold
� Abundant prospective exploration targets
� Experienced and talented team growing the assets and managing the Company.
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Successfully implementing a twin strategy of Production and Discovery to generate shareholder value.
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Developing Mines - Actively exploring for “ Elephants ” www.bassmetals.com.au
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