RAREX LIMITED — AGM Information 2011

May 30, 2011

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CLANCY EXPLORATION LIMITED (ASX: CLY)
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AGM Presentation 2011

Gordon Barnes – Managing Director

May 31 2011 Orange NSW

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Clancy Exploration AGM May 31 2011 www.clancyexploration.com 1
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DISCLAIMER
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The material in this presentation (“material”) is not and does not constitute an offer, invitation or recommendation to subscribe for, or purchase, any security in Clancy Exploration Limited (“CLY”) nor does it form the basis of any contract or commitment. CLY makes no representation or warranty, express or implied, as to the accuracy, reliability or completeness of this material. CLY, its directors, employees, agents and consultants, shall have no liability, including liability to any person by reason of negligence or negligent misstatement, for any statements, opinions, information or matters, express or implied, arising out of, contained in or derived from, or for any omissions from this material except liability under statute that cannot be excluded.

Statements contained in this material, particularly those regarding possible or assumed future performance, costs, prices, resources, reserves or potential growth of CLY or, industry growth or 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 may differ materially from those expressed or implied by these forward looking statements depending on a variety of factors and risks, many of which are outside the control of CLY and its directors. Investment in the securities of CLY is considered to be highly speculative.

The information in this material that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr Gordon Barnes who is a Member of the Australian Institute of Geoscientists. Mr Barnes is a full-time employee of Clancy Exploration Limited and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr Gordon Barnes consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

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Clancy Exploration AGM May 31 2011 www.clancyexploration.com 2
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HIGHLIGHTS
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Highlights:

• Quality explorer with a scientific and strategic approach

• Commanding position in a world class mineral province

• Strong focus on 100% owned projects in 2011 / 2012

• Approximately 22,000m of drilling proposed in next 12 months

• Rights Issue closes in early June 2011  $4.38M raised (before costs)

• Aggressive field program underway at the emerging Condobolin project

• Excellent results from first drill program, testing numerous targets:

  • e.g. Phoenix: 9m @ 4.08g/t Au incl 2m @ 14.18g/t Au

• Identified epithermal, skarn and porphyry mineralisation at Trundle

  • e.g. 2m @ 20g/t Au, 6.97% Cu in epithermal vein

• Exploration underway at numerous other projects:

  • Yalgoo (WA), Roseholme, Currumburrama & Billabong Creek (NSW)

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Clancy Exploration AGM May 31 2011 www.clancyexploration.com 3
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ABOUT CLANCY
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What is Clancy?

Clancy is a mineral exploration company targeting gold, base metals and tin in Australia.

Clancy’s mission is to improve the odds of exploration success by focussing on riskmanaged exploration.

Clancy’s objective is the discovery of ecomonic mineral deposits.

Ownership

Publicly listed company on the Australian Securities Exchange (ASX) ASX trading symbol: CLY 109.5M shares

27.4M listed options (CLYO) 9.1M unlisted options Market cap: $8.8M fully diluted

Clancy is a quality explorer with:

Quality assets.

Promising outlook for targeted commodities. Focussed exploration strategy.

Location

. Head office in Orange NSW Projects are located in NSW, Tasmania and WA.

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Clancy Exploration AGM May 31 2011 www.clancyexploration.com 4
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LOCATION – NSW focus
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Orange Exploration Team: Managing Director & Exploration Manager: Senior Exploration Geologist: Project Geologist: Office Manager:

Orange NSW head office

3 Corporation Place Orange NSW 2800 PO Box 7040 Orange NSW 2800 Phone: +61 2 6361 1285 Fax: +61 2 6361 1202 www.clancyexploration.com

Gordon Barnes Dr Jeff Vassallo Kristy Vassallo Clarissa Lark

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Clancy Exploration AGM May 31 2011 www.clancyexploration.com 5
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BOARD AND MANAGEMENT
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Board: Non-executive Chairman: Dr James Macdonald Managing Director: Gordon Barnes Non-executive Director: Mark Lester Non-executive Director: Dr Mike Etheridge Corporate: Chief Financial Officer: Gavin Doig Company Secretary: Rowan Caren

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Clancy Exploration AGM May 31 2011 www.clancyexploration.com 6
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HISTORY
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Pedigree and heritage

• Established in 2003 – wholly owned subsidiary of Geoinformatics Exploration (GXL)

• GXL exploration targeting in NSW and Tasmania  initial tenements granted in 2004 & 2005

• NSW Alliance with Gold Fields Australasia Pty Ltd (Gold Fields) in 2004

• Tasmania Alliance with Bass Metals Limited (Bass) in 2005

• Development and deployment of probabilistic targeting in 2005  Target Bank

• Target testing commenced in earnest in late 2007 (post Clancy IPO)

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GXL 3D geology model Lachlan Fold Belt

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GXL 3D geology model of Tasmania

Clancy is a quality explorer:

• Scientific and strategic approach

• Robust targets

• JV partners with deep pockets

• Talented team

• Risk managed exploration

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Clancy Exploration AGM May 31 2011 www.clancyexploration.com 7
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PROJECTS NSW
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Central NSW

NSW

• Macquarie Arc focus  gold-copper porphyries

• Also epithermal gold-base metal outside Arc

Wholly owned and managed projects:

• 12 gold-copper projects

JV projects (Gold Fields managed):

• 7 gold-copper projects

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Western NSW NSW
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PROJECTS TASMANIA & WA
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Western
Tasmania
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Tasmania and WA

Wholly owned and managed project in WA:

• 1 gold-base metal project Murchison Province

• Adjacent to the Golden Grove base metal- gold mine

JV projects in Tasmania (partner managed):

• Mount Read Volcanic Belt NW Tasmania

• 2 base metal-gold projects in Tasmania (Bass Metals)

• 2 tin projects in Tasmania (Minemakers / TNT Mines)

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Murchison WA
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					MACQUARIE ARCNSW – Why?
	Macquarie	Arc			Macquarie Arc Endowment • >80 Moz of gold and >13 Mt of copper • Most discovered in last 15 years • Clancy has >3,000km2 in this richly endowed		terrain
					Northparkes (Rio Tinto mine) >2.9 Moz Au >2.1 Mt Cu
					Cowal (Barrick mine) > 4.5 Moz Au Cadia Valley (Newcrest mine) >67 Moz Au >10Mt Cu
					Marsden (Newcrest resource) 190 Mt @ 0.19g/t Au, 0.35% Cu
					Temora (Goldminco) 150 Mt @ 0.41g/t Au 0.31% Cu
			50 km
Clancy Exploration AGM May			31 2011	www.clancyexploration.com					10

Central NSW tenement holders February 2011 (Group 1, Metals)

Clancy has one of the largest tenement holdings in the central part of the Lachlan Fold Belt

Early Movers: Alkane (1,198 km[2] ) Goldminco (1,574 km[2] ) Golden Cross (2,233 km[2] ) Rio Tinto (860 km[2] ) Newcrest (633km[2] ) Barrick (680 km[2] ) Clancy (3,203 km[2] ) Locke (1,256 km[2] ) YTC (1,266 km[2] )

Others:

Gold Fields non JV (735 km[2] ) Minotaur (2,658 km[2] ) Newmont (2,551 km[2] ) OZ Minerals (4,278 km[2] ) MMG (982 km[2] ) St Barbara (869 km[2] )

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Clancy Gold Fields JV’s

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Clancy Exploration AGM May 31 2011 www.clancyexploration.com 11
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NSW DRILLING
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Drilling completed since Clancy IPO (July 2007)  heavily skewed to JV’s

• Nearly 90km of drilling by Clancy and its JV partner, Gold Fields, in NSW

• 85% of all drilling in NSW has been on JV projects

• By any measure the non-JV projects are chronically underdrilled

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Non-JV (13,291m)
2,178 NSW drilling (89,865m) JV / Non-JV
AC
RC Non-JV
15%
DD JV (76,574m)
3,924
7,189
16,024
JV
AC
85%
RC
6,484
DD
54,066
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Clancy Exploration AGM May 31 2011 www.clancyexploration.com 12
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NSW DRILLING
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Drilling skewed to JV’s despite 100% owned projects occupying larger area

• Non JV’s: 52% of area  15% of drill metres

• JV’s: 48% of area  85% of drill metres

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NSW area held (3,203km [2] ):
Non-JV (13,291m)
2,178 JV (76,574m)
AC
16,024
RC
Non-JV JV AC
DD
3,924 52% 48% RC
7,189
6,484
DD
54,066
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Reasons

• Early focus on JV’s under Clancy management  cash preservation

• Post Gold Fields management of JV’s (April 2009) Clancy has been cash constrained

• Major offshore shareholders unwilling to dilute or contribute cash  restricted fund raisings

• Note – no longer an issue, major offshore holders divested in late 2010

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Clancy Exploration AGM May 31 2011 www.clancyexploration.com 13
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EXPLORATION Strategy
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Focus on 100% owned projects

• 100% owned projects are as equally prospective as the JV projects

• Chronically underdrilled for reasons outlined earlier

• Ramp-up drilling activity on 100% owned projects

• Follow-up drilling at Condobolin and Trundle (September 2011 quarter)

• RC drilling at Yalgoo, WA (June – July 2011)

• Drilling at Orange East and Fairholme (late 2011)

• Drill proposal for Moonagee (March 2012 quarter?)

• Completion of geophysical and geochemical surveys to advance to drill-ready status

• Currumburrama and Roseholme aeromagnetic surveys completed  target definition now

• Billabong Creek and Condobolin aeromagnetic surveys completed  data processing now

• Cundumbul  helimagnetic survey and soil sampling planned (September 2011 quarter?)

• Billabong Creek, Gobondery, Nadbuck and East Parkes  soil geochemistry and rock chips

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Clancy Exploration AGM May 31 2011 www.clancyexploration.com 14
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TARGETING INNOVATIONS
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Exploration strategy  refresh the Target Bank, new targeting innovations

• Porphyry copper-gold retargeting in the Macquarie Arc is underway

• Significant advances in processing techniques have been made since 2007

• New techniques to be verified against current Target Bank

• Many porphyry targeting components are applicable to other mineral systems

• Development of targeting models for other mineral systems in NSW is underway

• Excellent potential for post-Ordovician gold-rich systems

• e.g. McPhillamy’s, Wyoming (orogenic systems?) and intrusive-related systems

• Better targeting methods are needed  declining worldwide discovery rates

Source: Diederen, 2009

Source: McKeith et al, 2010

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Clancy Exploration AGM May 31 2011 www.clancyexploration.com 15
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NSW 100% OWNED PROJECTS
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50 km
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Current / recent drilling activity:

• Condobolin  RC drilling completed Feb 2011

• Trundle  RC drilling completed Jan 2011

• Orange East  DD drilling completed Oct 2010

Current / proposed aeromagnetic surveys:

• Roseholme & Currumburrama  completed

• Condobolin & Billabong Creek  data processing in progress

• Cundumbul  helimagnetic survey planned

Next part of presentation  update on:

• Condobolin

• Trundle

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CONDOBOLIN EL6939 & ELA4103
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Condobolin Mineral Field:

• Active 1890’s to early 1900’s  Phoenix, Mascotte, Bluebell

• Mined for Au, Cu, Pb, Ag, Zn

• Mining ceased due to water @ 70-90m depth

• Dormant until late 1970’s

• Drilling 1970’s to 2000’s

• 500 shallow holes (mostly RAB), average depth 24m

• Underpowered rigs, not enough air, halted by water

• The mineral field has not been effectively explored below the weathered zone (30m).

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Phoenix
8.52% Cu, 56g/t Ag, 0.95% Pb
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Phoenix
22.5 g/t Au, 56g/t Ag, 1.15% Pb
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Clancy Exploration AGM May 31 2011 www.clancyexploration.com 17
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CONDOBOLIN Historic mining
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Phoenix:

• Active 1893 – 1907: Au, Cu, Pb and Ag

• ~6 g/t Au, ~5% Cu, ~10% Pb

• 70m depth, 10m wide

• Epithermal veins

Mascotte:

• Active 1899-1914: Pb, Au and Ag

• ~15% Pb, 5g/t Au, 12oz/t Ag

• 94m depth and 105m along strike

• Epithermal veins

Bluebell:

• Active 1898-1906: Au and Cu

• ~9% Cu, ~6 g/t Au

• 30m depth, 26m along strike

Potters:

• Active 1905-1925: Ag, Pb and Zn

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Numerous mineral
occurrences
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• ~25oz/t Ag, ~55% Pb

• 100m depth, 90m along strike

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Clancy Exploration AGM May 31 2011 www.clancyexploration.com 18
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CONDOBOLIN Previous Exploration
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Previous Explorers:

• 1997-1981: Mines Proprietary

• 1993-1995: North Mining

• 1996-1999: Conquest Mining

• 2000-2007: Triako

• 2007-2009: Centaurus (no work)

Recent:

• Clancy acquired project from Centaurus in 2009

• Project optioned to Gold Fields for 12 months

• Gold Fields handed project back to Clancy in 2010

• Now 100% owned by Clancy and unencumbered

Type n m Min Max Avg AC 102 947 2 105 9 DD 3 373 101 151 124 RC 78 4589 30 250 59 ROT 336 6630 1 150 20 Total 519 12539 24 Note very shallow drilling Previous drilling breakdown by type:	Type n m Min Max Avg AC 102 947 2 105 9 DD 3 373 101 151 124 RC 78 4589 30 250 59 ROT 336 6630 1 150 20 Total 519 12539 24 Note very shallow drilling Previous drilling breakdown by type:	Type n m Min Max Avg AC 102 947 2 105 9 DD 3 373 101 151 124 RC 78 4589 30 250 59 ROT 336 6630 1 150 20 Total 519 12539 24 Note very shallow drilling Previous drilling breakdown by type:	Type n m Min Max Avg AC 102 947 2 105 9 DD 3 373 101 151 124 RC 78 4589 30 250 59 ROT 336 6630 1 150 20 Total 519 12539 24 Note very shallow drilling Previous drilling breakdown by type:	Type n m Min Max Avg AC 102 947 2 105 9 DD 3 373 101 151 124 RC 78 4589 30 250 59 ROT 336 6630 1 150 20 Total 519 12539 24 Note very shallow drilling Previous drilling breakdown by type:	Type n m Min Max Avg AC 102 947 2 105 9 DD 3 373 101 151 124 RC 78 4589 30 250 59 ROT 336 6630 1 150 20 Total 519 12539 24 Note very shallow drilling Previous drilling breakdown by type:	Type n m Min Max Avg AC 102 947 2 105 9 DD 3 373 101 151 124 RC 78 4589 30 250 59 ROT 336 6630 1 150 20 Total 519 12539 24 Note very shallow drilling Previous drilling breakdown by type:
Previous drilling breakdown by type:						Note very shallow drilling
Type	n	m	Min	Max	Avg
AC	102	947	2	105	9
DD	3	373	101	151	124
RC	78	4589	30	250	59
ROT	336	6630	1	150	20
Total	519	12539			24

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Previous drilling over magnetics
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CONDOBOLIN Previous Highlights
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RC drilling by Conquest (1996-1999) and Triako (2000-2007)

Phoenix: 4m @ 4.07g/t Au

Mascotte: 6m @ 4.59g/t Au

Bluebell: 3m @18.12 g/t Au, 0.68% Cu 1m @ 45.65 g/t Au, 1.42% Cu

Surprise: 2m @ 5.42g/t Au

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CONDOBOLIN Gold Fields drilling
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Gold Fields RC drilling at Mascotte Conquest RC holes (1990’s) Conquest holes not surveyed  highly unlikely to be straight Note hole deviation: 17[o] lift, 21[o] swing  target missed? Gold Fields RC holes (2010) Conclusion: mineralisation geometry poorly understood

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CONDOBOLIN Clancy Work
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Review previous work:

• First prospects to follow up:

• Phoenix

• Surprise

• Mascotte

• Bluebell

Field work in Sept 2010:

• Spectacular rock chip results

• 7 of 12 samples >5g/t Au

• 2 samples >5% Cu

• Max 26g/t Au and 8.53% Cu

• 1 sample 25.3% Zn

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Next slide
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CONDOBOLIN Clancy Rock Chip Results
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22.5g/t Au, 58.1g/t Ag &1.15% Pb (COR0001) 1.0g/t Au, 57.1g/t Ag & 8.52% Cu (COR0002) 14.6g/t Au, 23g/t Ag, 2.72% Pb, 1.49% Cu (COR0003) 12.2g/t Au, 23.1g/t Ag & 2.08% Pb (COR0005) 1.9g/t Au, 40g/t Ag, 25.3% Zn & 1.38% Pb (COR0004) 13.6g/t Au, 21.3g/t Ag, 2.8% Zn & 0.85% Pb (COR0008) 26g/t Au, 27g/t Ag & 1.35% Zn (COR0009) 3.6g/t Au, 71g/t Ag and 7.89% Cu (COR0012)

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CONDOBOLIN Clancy RC Drilling Results
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8m @ 3.7g/t Au, 7.1g/t Ag from 59m (CORC005); incl. 2m @ 9.8g/t Au, 13.5g/t Ag from 64m 8m @ 3.73g/t Au, 17g/t Ag, 0.85% Cu from 70m (CORC008); incl. 2m @ 10.4g/t Au, 10.7g/t Ag from 76m (see section on next slide) 24m @ 0.9% Zn from 88m (CORC017); incl. 6m @ 2.7% Zn, 2.7% Pb, 30g/t Ag from 100m Note – only one hole completed Next slide 18m @ 1.1% Zn, 0.36g/t Au from 70m (CORC015); incl. 4m @ 3.7% Zn, 1.3g/t Au, 12g/t Ag from 76m 4m @ 0.29g/t Au, 1.14% Cu, 8.17g/t Ag from 98m Note – drilling cut short by rain before best zone could be tested

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CONDOBOLIN Phoenix RC drill section
NW SE
8m @ 3.7g/t Au, 7.1g/t Ag,
Footprint of old workings 0.62% Pb, 0.26% Zn
8m @ 3.73g/t Au, 17.0g/t Ag,
0.47% Cu, 0.35% Pb, 0.42% Zn
Legend
<0.05 <0.01
2m @ 3.1g/t Au, 17.2g/t Ag, 0.05 – 0.2 0.01 – 0.05
0.85% Cu, 0.17% Pb, 0.5% Zn 100m 0.2 – 0.5 0.05 – 0.1
0.5 – 1 0.1 – 0.5
112m >1 >0.5
Open at depth &
Au (g/t) Cu (%)
along strike
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CONDOBOLIN Prospects
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Significant drill intercepts at each prospect drilled in first RC drill program:

• Phoenix: 8m @ 3.73g/t Au, 17g/t Ag, 0.85% Cu; incl 2m @ 10.4g/t Au

• Mascotte: 4m @ 3.7% Zn, 1.3g/t Au, 12g/t Ag

• Bluebell: 4m @ 0.29g/t Au, 1.14% Cu  note drilling cut short before target reached

• Potters: 6m @ 2.7% Zn, 2.7% Pb, 30g/t Ag  note first hole >40m drilled at prospect!

Work program in progress:

• Large tenement holding  significant regional potential

• Follow-up drilling proposal  targeting extensions to high grade Au - Cu lodes

• Aeromagnetic / radiometric survey recently completed  data processing now

• Large soil geochemical program commenced in May 2011

• Trial prospect scale 3D IP survey at Phoenix planned

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CONDOBOLIN Screen fire assay results
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Gold intercepts uplifted by >30% on an equivalent interval basis:

• Phoenix: 9m @ 4.08g/t Au incl 2m @ 14.18g/t Au

• Significant upgrades of gold, silver and base metal intercepts were also returned:

• Bluebell and Potters prospects

Prospect	Hole	2m composites	2m composites	2m composites	1m re-splits	1m re-splits	1m re-splits	Cutoff Au (g/t)	Uplift
		Interval (m)	Au (g/t)	From (m)	Interval (m)	Au (g/t)	From (m)
Phoenix	CORC008	10	3.06	72	9	4.08	72	0.1	33.4%
		8	3.74	72	7	5.18	73	0.5	38.7%
		6	4.73	72	5	6.90	73	1.0	45.9%
		2	10.35	76	2	14.18	76	5.0	37.0%
Mascotte	CORC015	4	1.33	76	4	2.28	76	0.1	71.4%
Bluebell	CORC012	4	0.29	98	4	0.39	98	0.1	34.5%

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CONDOBOLIN Regional Potential
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8% of tenement area is outcrop / subcrop

98% of historic mineral occurrences are within 200m of outcrop Average depth of cover in non-outcropping areas is <5m  very easy to explore

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CONDOBOLIN Aeromagnetic Survey
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High resolution aeromagnetic and radiometric survey completed May 2011

Aeromagnetic and radiometric survey:

• 2,399 line km

• 50m traverse spacing

• 40m terrain clearance

• Data processing in progress

• Results  1[st] half of June 2011

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CONDOBOLIN Upcoming work
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Field work and drilling:

• Process magnetic data  structure definition

• Pricess radiometric data  alteration and regolith mapping

• Geochemical sampling in progress  fertile structures

• Drill target definition  follow-up drilling July/August 2011

• Ongoing exploration of the Condobolin Mineral Field

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TRUNDLE EL4512 & EL7187
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Trundle:

• Porphyry- and skarn-style copper-gold mineralisation

• Several Ordovician intrusive centres

• Strong similarities to Big Cadia skarn  peripheral to Cadia

• Extensive skarn horizons defined  gold, copper and magnetite

• Only 2.8% of previous drill holes are deeper than 50m

• Poorly explored below 50m  potential for deeper porphyry

• High-grade epithermal gold veins and native copper

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Skarn vein: py-ep-chl-mgt
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Epithermal vein
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TRUNDLE History
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Long lived project:

• EL4512 granted July 1993

• Exploration under numerous JV’s

• Targeted by Clancy in October 2005

• Approached owner Western Plains in August 2007

• Western Plains and Calibre Mining JV in early 2008

• Clancy acquired right to earn 70% from Calibre in May 2009

• Clancy purchased Western Plains 30% share in August 2009

• Now 100% owned by Clancy (with 2.5% NSR to vendors)

Highly ranked targets:

• Project targeted for fundamental reasons

• Favourable magnetic and gravity signals

• Corporate acquisitions motivated by targeting results

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TRUNDLE and Northparkes
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RTP horizontal gradient image
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Northparkes:

• Rio Tinto porphyry copper-gold mine

• Initial discovery 1976 (E22)

• Production commenced in 1993 (North Ltd)

• Endowment: 3.8Moz Au, 2.8Mt Cu

• 2010 production: 65Koz Au, 39Kt Cu

• 2010 average grades: 0.33g/t Au, 0.88% Cu

• Value of 2010 production: $470M AUD

Source: www.northparkes.com.au

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TRUNDLE and Northparkes
Trundle host rocks are
similar to Northparkes
K-Fspr alteration in diorite Epithermal vein
Classic “brick-red” alteration
Monzonite
Skarn vein: py-ep-chl-mgt
Syenite dyke in diorite
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TRUNDLE and Northparkes
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Trundle Bouguer Gravity

Gravity lows  intrusive complex:

• Prominent gravity low at Northparkes

• Gravity lows also present at Trundle

• Note different scales though

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Northparkes Bouguer Gravity

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TRUNDLE and Northparkes
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Rift Basin

Trundle:

• Same geophysical characteristics as Northparkes

• Same rock types, same mineralisation styles

• Same complex....

Trundle split from Northparkes:

• Part of the Northparkes complex

• Split during rift development

• Restores to a position on the western edge of the Northparkes complex

RTP horizontal gradient image

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TRUNDLE Previous Drilling
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Previous drilling:

• Only 2.8% of holes are >50m deep

• The majority of these are shallow RAB

• Most assayed for Au and Cu only

• Excellent potential at depth

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Trundle Park
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RTP magnetics and previous drilling
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Holes >50m deep
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TRUNDLE PARK Previous highlights
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Note - average hole depth in Trundle Park area is 20m

~150m radius BOH Avg Cu 0.11% Avg Au 0.35g/t

14m AC Hole - TR143 bottom 11m @ 1.2g/t Au, 0.36% Cu + discrete mag high

9m AC Hole – TR490 BOH 0.19% Cu + discrete mag low

Cu

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Botfield Magnetite Skarn

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Au
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Trundle Park copper and gold geochemistry over ground magnetic image

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TRUNDLE PARK Vectors
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Vectors:

• Skarn mineralogy:

• Similar to peripheral Cadia skarns

• Distal: Fe-oxide with Cu & Au

• Intermediate: garnet>pyroxene

• Proximal: garnet>>pyroxene

• Skarn assemblages  confirmed by petrology

Big Cadia and Little Cadia:

• Mined for decades from 1870’s

• High-grade copper lodes ( 5-7% Cu )  vein hosted

• Magnetite exploited for iron ca. WWII

• Magnetite mine feasibility study by Newcrest 1991

• Reinterpreted as magnetite skarn

• Cadia Intrusive Complex 1991-1992:

• Causative intrusion for skarn plus Cu veins (?)

• Low-grade Au & Cu in intrusive rocks

• Potential for porphyry mineralisation

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Similar assemblages
noted at Trundle Park
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Source: Forster et al, 2004

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CADIA Discovery History
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Cadia copper veins mined from 1870’s. Magnetite exploited for iron ca WWII

Porphyry discovery at Cadia:

• Mapping identified large scale hydrothermal system: • Covering Little and Big Cadia and Cadia Hill

• Strong structural control for sulphides & alteration

• November 1992 - Cadia discovery hole:

• NC40: 217m @ 1.36g/t Au, 0.15% Cu

from 56m

• November 1996 – Ridgeway discovery hole:

• •NC498: 145m @ 4.30g/t Au, 1.2% Cu

• from 598m

• 84m @ 7.4g/t Au, 1.3% Cu from 821m

Source: Forster et al, 2004

Sources: Wood and Holliday, 1995; Holliday et al, 1999; Holliday 2004

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TRUNDLE PARK Clancy RC drilling
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28m @ 0.3g/t Au, 0.15% Cu, from 24m

2m @ 20g/t Au, 6.97% Cu, 81g/t Ag from 64m 58m @ 0.44g/t Au, 0.17% Cu, from 22m

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52m @ 0.45g/t Au from 32m
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1930’s copper-gold
workings
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Skarn and vein-hosted mineralisation intersected:

• Broad widths (30-50m) of skarn ~0.3g/t Au, 0.15% Cu

• Epithermal vein-hosted high-grade gold and copper – 20g/t Au, 6.97% Cu

• Also broad intersection of epithermal style gold; e.g. TPRC009

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TRUNDLE PARK Clancy RC drilling
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75m

	Hole Id	Interval (m)	Au (g/t)	Cu %	Ag (g/t)	from (m)	Cutoff Au (g/t)
	TPRC001	28	0.30	0.15		24	0.1
	including	2	0.92	0.35		32	0.9
	TPRC002	2	0.13			14	0.1
	TPRC002	4	0.17			98	0.1
	TPRC002	10	0.13			124	0.1
	TPRC003 TPRC003	20 56	0.18 0.88	0.28 0.35	3.74	0 34	0.1 0.1
	including	2	20.00	6.97	81	64	0.9
	TPRC004	2	1.13	0.29		4	0.1
	TPRC005	58	0.44	0.17		22	0.1
	including including	4 2	1.19 1.06	0.41 0.36		28 70	0.9 0.9
	TPRC005	2	0.13			90	0.1
	TPRC006	20	0.19	0.11		0	0.1
	TPRC009	52	0.45			32	0.1
	including	6	0.99			52	0.9
	including	2	0.99			64	0.9
	TPRC010	2	0.11			14	0.1
	TPRC010	22	0.24	0.17		60	0.1

2m @ 20g/t Au, 6.97% Cu, 81g/t Ag from 64m Open at depth and along strike

Open at depth and along strike

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TRUNDLE Magnetite Potential
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Dunns skarn (large)
Precedents for processing Cu, Au & Fe:
• Xstrata, Ernest Henry, Qld
•
Head grade: 1/gt Au, 0.5% Cu, 22% magnetite
• IMX Resources, Cairn Hill, SA
•
Resource: 11.4Mt @ 49.5% Fe, 0.4%Cu, 0.1g/t Au
• The Trundle magnetite may be economically significant
TPRC001
• Crude estimate of Trundle Park magnetite grade:
Probable magnetite
• Based on ICP Fe assays
skarn strike length at
• ~20-25% magnetite least 2.8km
• Requires Davis Tube assays to confirm
•
Ground magnetic data  magnetite skarn is extensive
• Large areas remain untested
Untested
• Some skarn intercepts:
TPRC005
Hole Id Interval (m) Au (g/t) Cu % Company TD025
TPRC001 28 0.30 0.15 Clancy TD026
TPRC005 58 0.44 0.17 Clancy
TD025 No Au or Cu, but mgt & gt (?) logged Newcrest
Botfield magnetite skarn
TD028 23 0.35 0.17 Newcrest
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TRUNDLE Upcoming work
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Mordialloc
Ravenswood
Trundle
Park
Quartz-calcite-molybdenite vein
in monzonite TD002, 420m
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Drilling and assesment of magnetite potential:

• Most areas now under winter cereal crops

• Follow-up drilling epithermal Au-Cu intercept in TPRC003

• Step out drilling to follow-up TPRC009 intercept

• Drill test porphyry target south of TPRC010

• Davis Tube assays for magnetite in TPRC001 and TPRC005

• If succesful, then further drillling to evauate extent

• Also assess skarn potential elsewhere; e.g. Mordialloc

• Aircore drilling: geophysical targets

• Continue to target deeper (larger) porphyry source

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WRAP UP
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Clancy is an active explorer with outstanding prospects:

• Rights Issue underway, well funded

• Commanding position in a world class mineral province

• Strong focus on 100% owned projects in 2011 / 2012

• Approximately 22,000m of drilling proposed

• Following up excellent first round drilling at:

• Condobolin e.g. 9m @ 4.08g/t Au incl 2m @ 14.18g/t Au

• Trundle 2m @ 20g/t Au, 6.97% Cu

• Exploration underway at numerous other projects:

  • Yalgoo (WA), Roseholme, Currumburrama & Billabong Creek (NSW)

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REFERENCES
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Diederen, A.M., 2009 - Global resource depletion: metal minerals scarcity and the elements of hope. Peak summit, Alcatraz, Italy, June 27, 2009. Available from www.materialscarcity.nl/systems/file_download.aspx/

Forster, D.B., Seccombe, P.K. and Phillips, D., 2004 - Controls on skarn mineralization and alteration at the Cadia deposits, New South Wales, Australia. Econ. Geol. 99: pp 761-788. Holliday, J.R., 2004 – Past, present and future exploration in the NSW Lachlan Fold Belt. Evening presentation given to MORE-SGEG conference, Orange, NSW, July 6-8 2004. Available from www.newcrest.com.au.

Holliday, J.R., McMillan, C. and Tedder, I., 1999 - Discovery of the Cadia Ridgeway gold-copper porphyry deposit. Proceedings of New Generation Gold Mines 1999. Case histories of discovery. Australian Mineral Foundation, Adelaide.

McKeith, T.D., Schodde, R.C. and Baltis, E.J., 2010 - Gold discovery trends. SEG Newsletter 81, April 2010.

Wood, D.G. and Holliday, J.R., 1995 - Discovery of the Cadia gold-copper deposit in New south Wales - by refocussing the results of previous work. Proceedings of New Generation Gold Mines 1995. Case histories of discovery. Australian Mineral Foundation, Adelaide.

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