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POLARX LIMITED M&A Activity 2014
65639_rns_2014-11-05_3e3d4491-0173-4e83-b7df-e96311dbbe9e.pdf
M&A Activity
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ACQUISITION OF AN 80% INTEREST IN THE HIGH-GRADE CARIBOU DOME COPPER PROJECT, ALASKA
NOVEMBER 2014
CARIBOU DOME COPPER PROJECT –SUMMARY
- Shallow, very high-grade sediment-hosted copper mineralisation
- Exceptional results in limited drilling to date, including:
- 18.1m at 9.34% copper from 22.7m
- 18.4m at 6.25% copper from 31.4m
- 15.4m at 7.01% copper (underground drilling)
- 13.1m at 7.20% copper from 15.8m
- 11.0m at 8.20% copper from 29.0m
- 10.4m at 7.94% copper from 14.0m
- 12.8m at 5.78% copper (underground drilling)
- Significant exploration upside:
- Mineralisation has been identified over >4,000 metres of strike
- Previous drilling concentrated on just 250 metres of strike
- Multiple drill-ready and underexplored targets
- Metallurgical recoveries up to 91.7% in preliminary testwork
- ~1,000m of underground development
- Road access directly to the deposit; only ~100km to an operating rail line
- Attractive earn-in terms
- Initial exploration target of 5-10Mt of mineralisation at 2.5-4.0% copper*
Outcropping mineralisation at Lense 6 at the Caribou Dome Copper Project
CARIBOU DOME COPPER PROJECT –LOCATION
Location of the Caribou Dome Copper Project in Alaska, USA
- 250km NE of Anchorage
- Just off the Denali Highway
- 20km of purpose built road to the underground openings at the Project from the Denali Highway
- Only ~100km east of the Anchorage-Fairbanks railway line at Cantwell
- 10,240 acres of State mining claims covering a complete 4 mile x 4 mile area
CARIBOU DOME COPPER PROJECT –HISTORY
- **1963 –**Mineralisation first discovered
- **1964 –**First 7 diamond holes drilled
- **1969 –**425m adit developed on the 4,630ft level
- **1970 –**520m decline developed from the 4,510ft level
- 2008 – 225kg bulk sample acquired for metallurgical testwork
| Diandmo | Peionrcuss | ||||||
|---|---|---|---|---|---|---|---|
| Surface | Undendrgrou | ||||||
| Virtuallyalliouprevsrkwodekertaunn1964-1970 | Date | No. Holes | Metres | No. Holes | Metres | No. Holes | Metres |
| 1964 | 7 | 465 | |||||
| 1965 | 14 | 857 | |||||
| 1966 | 17 | 877 | |||||
| 1967 | 3 | 367 | |||||
| 1969 | 2 | 196 | 7 | 947 | |||
| 1970 | 41 | 2315 | 134 | 3,283 | |||
| 1977 | 3 | 120 | |||||
| 1999 | 3 | 744 | |||||
| 2009 | 2 | 621 | |||||
| 2011 | 9 | 794 | |||||
| Totals | 60 | 5,040 | 48 | 3,262 | 134 | 3,283 |
Summary of previous drilling completed at the Caribou Dome Copper Project Entries to the historic adit (upper level) and decline (lower level) at
the Caribou Dome Copper Project
CARIBOU DOME COPPER PROJECT –GEOLOGY
- 9 lenses of outcropping stratiform mineralisation identified to date over ~750 metres of strike
- Lenses predominantly located in argillites at interface with volcanics; interbedded limestones appear to have been important
Geology around the nine known lenses of mineralisation at the Caribou Dome Copper Project, together with surface traces of underground development
CARIBOU DOME COPPER PROJECT –DRILLING
- Only 108 diamond core holes drilled for ~8,300m
- Average hole depth = 77 metres
- Better results include:
- 18.1m at 9.34% Cu from 22.7m
- 18.4m at 6.25% Cu from 31.4m
- 15.4m at 7.01% Cu (U/G drill hole)
- 13.1m at 7.20% Cu from 15.8m
- 11.0m at 8.20% Cu from 29.0m
- 10.4m at 7.94% Cu from 14.0m
- 12.8m at 5.78% Cu (U/G drill hole)
- 13.0m at 4.94% Cu (U/G drill hole)
- 9.1m at 6.97% Cu from 28.7m
- 10.2m at 6.23% Cu from 46.6m
- 12.2m at 5.04% Cu from 27.1m
- 10.7m at 4.99% Cu from 18.0m
- 10.2m at 4.96% Cu (U/G drill hole)
- 8.3m at 6.07% Cu from 77.7m
Location of the nine known lenses of mineralisation at the Caribou Dome Copper Project, together with surface traces of diamond drill holes and underground development
CARIBOU DOME COPPER PROJECT –CROSS SECTION – LENSES 4 AND 6
- Sub-vertical mineralisation
- Mineralisation extends to >250m depth and remains open in all directions
- Mineralisation remains open:
- in the footwall;
- along strike; and
- at depth
Cross section through mineralised lenses 4 and 6 at the Caribou Dome Copper Project, including select drilling results
CARIBOU DOME COPPER PROJECT –LONG SECTION – LENSES 5 AND 6
- Mineralisation has excellent thicknesses and grades
- Obvious targets to the west and at depth, where mineralisation remains open
- Lower quality mineralisation between adit and decline based almost entirely on results from underground percussion drilling – maybe inadequately tested previously
Long section through mineralised lenses 5 and 6 at the Caribou Dome Copper Project, including select drilling results
CARIBOU DOME COPPER PROJECT –METALLURGY
- A 225kg bulk sample was collected in 2008
- Average sample grade was 6.7% copper
- Recoveries up to 91.7% were achieved with flotation and GalvanoxTM leaching
Potential flowsheet for the Caribou Dome Copper Project – flotation plus Galvanox leach
CARIBOU DOME COPPER PROJECT –EXPLORATION UPSIDE
- Mineralisation is stratiform – it is located at the contact of volcanic and sedimentary rocks
- This contact has been mapped over >4,000m within the Project area
- There is extensive copper anomalism along this contact and elsewhere within the Project
- Strike extensions have never been trenched or drilled
Regional geology at the Caribou Dome Copper Project, showing the argillite sequence that hosts the known mineralisation extends for more than 4,000 metres within the Project area
CARIBOU DOME COPPER PROJECT –EXPLORATION TARGET
- To prepare a Mineral Resource estimate re-drilling of some historic holes will be necessary
- Abundant drill-ready exploration targets are already evident
- Additional immediate targets may also be evident once analytical results are returned from recent work program
- Initial exploration target of 5-10 Mt of mineralisation at a grade of 2.5 – 4.0% copper*
* The potential quantity and grade of this target is conceptual in nature and there has been insufficient exploration completed to define a mineral resource in accordance with Canadian National Instrument 43-101 and the 2012 Edition of the Australasian Code for Reporting of Exploration Results (JORC Code) standards, and it is uncertain if further exploration will result in the target being delineated as a mineral resource. For further information refer to the Company's ASX announcement on 5 November 2014.
4630 level Adit at the Caribou Dome Copper Project. Grey material is an ash unit; black is mineralised sediment. Photo by Pierre Vella-Zarb.
ACQUISITION – COMMERCIAL TERMS
- Unlisted Australian company Aldevco Pty Ltd holds an option to acquire an 80% interest in the Project from unlisted Hatcher Resources Inc
- Coventry has entered into agreements - subject to Coventry shareholder and regulatory approval, to acquire 100% of the shares in Aldevco in consideration for the issue of 60 million Coventry shares
- Coventry's capital structure post transaction would comprise:
| CShtovenryares | Nubmer |
|---|---|
| Clyiturrenonssue | 91,012,182 |
| Nhbidi100%fAldttesaresoesseoacqreoecowuuv | 60,000,000 |
| Piiif100%fAldttosacqusonooevco | 151,012,182 |
ONGOING OBLIGATIONS TO ACQUIRE AN 80% INTEREST IN THE CARIBOU COPPER PROJECT
- US$75,000 payment due to Hatcher to partially reimburse it for exploration expenses incurred during 2014
- 9-year option to acquire 80% of the Project
- Ongoing obligations comprise:
| OiilVdrgnaenor1Ptaymens | AlExdibliituOtnnuapenregaon | MiiExdiidtu3-nmumpenreperyearpero | ||
|---|---|---|---|---|
| J5201neu | $20,000 | $100,000 | $2,000,000 | |
| J2016une | $30,000 | $100,000 | ||
| J2017une | $50,000 | $100,000 | ||
| J2018neu | $100,000 | $0 | ||
| J2019une | $100,000 | $0 | $2,000,000 | |
| J2020une | $100,000 | $0 | ||
| J2021neu | $100,000 | $0 | ||
| J2022neu | $100,000 | $0 | $2,000,000 | |
| J2023une | $1,360,000 | $0 | ||
| Tltoa | $1,960,000 | $9,000,000ClFibiliSd2ttytuorompeeeasy |
1 Original vendors are C-D Development Corporation and SV Metals LP, neither of which are related parties 2If the Feasibility Study is delivered before expending $9million, the earn-in condition will be satisfied
One of the original vendors – C-D Development Corporation will retain a 5% royalty, with Coventry to have the right to purchase each 1% for US$1,000,000
CARIBOU DOME COPPER PROJECT –FORWARD WORK PROGRAM
- A field program to pursue the strike extensions of the mineralisation was conducted during September/October 2014
- Mineralisation was identified across the entire Project area
- 45 samples were collected and will be submitted for analysis in the near term
- A suitable program of trenching, ground EM (or IP) and drilling will be undertaken in 2015
Looking NE from outcropping mineralisation at Lense 6 (foreground) to trenching at Lense 3 (background)
DISCLAIMER
This presentation is not a prospectus nor an offer for securities in any jurisdiction nor a securities recommendation. The information in this presentation is an overview and does not contain all information necessary for investment decisions. In making investment decisions in connection with any acquisition of securities, investor should rely on their own analysis of the Company and consult their own legal and/or financial advisers. The information contained in this presentation has been prepared in good faith by the Company, however no representation or warranty expressed or implied is made as to the accuracy, correctness, completeness or adequacy of any statements, estimates, opinions or other information contained in this presentation. To the maximum extent permitted by law, the Company, its directors, officers, employees and agents disclaim liability for any loss or damage which may be suffered by any person through the use or reliance on anything contained in or omitted from this presentation.
This presentation contains forward looking statements which involve a number of risks and uncertainties. These forward looking statements are expressed in good faith and believed to have a reasonable basis. These statements reflect current expectations, intentions or strategies regarding the future and assumptions based on currently available information. Should one or more risks or uncertainties materialise, or should underlying assumptions prove incorrect, actual results may vary from the expectations, intentions and strategies described in this announcement. The forward looking statements are made as at the date of this announcement and the Company disclaims any intent or obligation to update publicly such forward looking statements, whether as the result of new information, future events or results or otherwise.
Qualified and Competent Person
The information in this announcement that relates to exploration results for the Project has been approved by Kevin Anthony Joyce, who is a consultant to the Company. Mr Joyce has reviewed the exploration results disclosed in this release, but has not verified the information due to the programs having been undertaken by the previous owners of the Project.
Mr Joyce is a Member of the Australian Institute of Geoscientists. Mr Joyce has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and the activity he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the "Australasian Code for Reporting of Exploration Results. Mr Joyce is also a Qualified Person as defined by Canadian National Instrument 43-101 Standards of Disclosure for Mineral Projects. Mr Joyce consents to the inclusion in the report of the matters based on the information in the form and context in which it appears.
