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RUMBLE RESOURCES LIMITED — Investor Presentation 2017
May 10, 2017
65736_rns_2017-05-10_6c61df27-5e3b-452d-990e-30f65782af7c.pdf
Investor Presentation
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Photo: Thunderstorm Tanks, Thunderstorm Project, Fraser Range
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Image: Big Red Drilling, Fraser Range
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ASX:RTR
Braeside Zinc – Lead – Silver Project Systematic Exploration Targeting a VMS System May 2017
Braeside Project Highlights
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Rumble is earning up to 70% in the historic high-grade Braeside Zn-Pb-Ag project
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Historic Ragged Hills small scale mine produced lead, silver and zinc from 1901 to 1959
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Very limited modern exploration with 10 known drill-holes in 1928 & 1951 and limited rock chip samples
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Significant historical grab sampling returned up to 18.9% Zn, 79% Pb, 11.64% Cu, 325 g/t Ag and 13 g/t Au throughout project
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Previous explorers post production focused on Gold not Base metals
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Image: Ragged Hills Mine with Marble Bar Telfer Road in Background
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Litho-geochemistry completed suggests the mineralisation is associated with sub volcanic rhyolitic porphyry (Koongaling Felsic Volcanics) indicating potential for a VMS system capable of hosting large base metal deposits
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Over 60km of strike potential with numerous untested Zn, Pb and Cu prospects
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Review of regional tempest EM Survey has identified a conductor near Ragged Hills mine and potential conductors throughout project
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Rumble to fast track systematic exploration targeting a VMS system
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Undersupply forecast due to major Zinc-Lead mine closures in recent years
Image: Valentine Tank (WW2) used to power the Ragged Hills Mine
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ASX: RTR | PAGE 2
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Corporate Overview
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Key Technical Appointment Brett Keillor
| Capital Structure | Capital Structure | Capital Structure |
|---|---|---|
| Shares on Issue | # | 248m |
| Options on Issue1 | # | 5.5M |
| Cash2 | A$ | $870k |
| Market Cap | A$ | $6m |
1. 8c options
- As reported in March Quarterly
| Board & Management | Board & Management |
|---|---|
| Shane Sikora | Managing Director |
| Brett Keillor | Technical Director |
| Matthew Banks | Non-Executive Director |
| Michael Smith | Non-Executive Director |
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| Ownership Analysis | Ownership Analysis | Ownership Analysis |
|---|---|---|
| Board and Management | 12.5% | |
| Top 20 | 41% |
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ASX: RTR | PAGE 3
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Key Technical Director Appointment
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Mr Brett Keillor
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Mr Brett Keillor is a geologist with over 30 years experience in the mining industry, working across a diverse range of commodities with expertise in targeting large deposits and identifying company making projects. He worked on and reviewed exploration and development projects across the globe with Resolute Mining and was recently Chief Geologist (Gold) for the Independence Group (ASX: IGO) from 2002 to 2015.
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Brett has been instrumental in discovering seven significant deposits globally. He was involved from the original grass-roots survey until the first year of gold production of the Marymia gold deposit (1987 to 1994) and completed the original soil sampling and prospecting program that outlined the Plutonic gold deposit in 1987. Brett initiated exploration with Indee that led to the discovery of seven gold deposits in the Mallina Shear Zone and completed the original targeting that led to the discovery of the Tropicana gold deposit for Independence Group. In recent years Brett played a significant part in the discovery of the Bibra (Karlawinda) gold deposit.
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Brett is twice recipient of the AMEC Award “Prospector Of The Year”, for the Marymia discovery in 1998 and again in 2012 for the Tropicana discovery.
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Brett Keillor has enhanced the company’s strategy to proactively identify and review potential acquisitions and was instrumental in identifying and reviewing the Braeside project.
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ASX: RTR | PAGE 4
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Zinc – Lead Markets
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The world is running out of Zinc (the fourth most consumed metal by volume)
Major mine closures in recent years due to depletion
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Century (500,000 tpa)
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Brunswick (200,000 tpa)
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Perseverance (128,000 tpa)
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Lisheen (167,000 tpa)
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Yet at the same time demand is growing (forecast at 3% in 2017*) to 13.8Mt zinc
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The falling supply against rising consumption is driving a price rise
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Zinc market deficit delivers 61% spot price increase in 2016 to US$2,848 per tonne
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• Goldman Sachs predicting worldwide shortage of zinc to increase to 360,000t in 2017
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Zinc price is historically closely correlated to available stock levels
Lead Pricing and Stockpiles
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Closely mirroring the Zinc Price
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Also affected by mine closures
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Strong growth in global car sales and industrial battery market (used for energy storage and back-up ) and relatively low stocks, the fundamental outlook for lead looks sound
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Lead prices have climbed 22 percent while zinc, which shares many of the same supply issues and has higher stocks, has rallied 50 percent
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ASX: RTR | PAGE 5
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Braeside Project Geology and Location
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Project geology is dominated by mafic to intermediate volcanics and felsic volcanics of the late Archaean Fortescue Group. Within the mafic to intermediate rocks, dolomite, chert, siltstone and volcaniclastics lie subparallel to NNW trending faults, thrusts and veins.
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Felsic volcanics are same age as the lead mineralisation at the Ragged Hills Mine.
Legend
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- Largest succession of felsic volcanics within the entire Fortescue Group.
Road To Telfer
Road to Marble Bar – 140km West
Geology based on GSWA Mapping 100K Isabella and 100K Braeside sheets
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ASX: RTR | PAGE 6
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Braeside Historic Exploration
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Historic small scale mining – 1901 to 1959.
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Limited drilling – 10 holes completed in 1928 and 1951.
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Surface geochemistry limited.
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No systematic multi-element soil/lag sampling.
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Only rock chip sampling of known prospects.
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Limited reconnaissance grab sampling (approximately 100 samples)
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Previous explorers (1980’s to early 1990’s) were focused on evaluating gold potential.
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Small exploration companies only tested the known workings.
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Large companies focused east and south of the project area.
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Geophysics limited to large scale aero-magnetics and gravity.
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AEM (Tempest), completed on 2km line spacing, partly covered the western half of the project in 2014-2015. The survey was for water only.
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Low resolution conductors are associated with known mineralisation. No follow up was completed.
The base metal potential of the Braeside Project has not been tested.
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ASX: RTR | PAGE 7
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Ragged Hills Pb-Ag-Zn Deposit
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Historic Drilling
Six DD holes (1928 and 1951) tested below the main workings at the Ragged Hill mine. Five holes intercepted mineralisation (one hole failed to reach target).
Overview
Small scale mining only focused on high grade Pb (Massive Galena) which formed in visual pods. Sphalerite (zn) was not targeted as it wasn’t easy to be visibly identified.
Results include
From 1949 to 1959, 4,372t of concentrate produced 2,927t Pb, 24t Zn and 28,093oz Ag from a small plant (flotation and concentrator). The main reef (over 300m strike and open) was partly worked over a strike of 150m with widths up to 4.2m. Massive galena zones were on average 1m to 2m in width. The mine was worked down to the water table (45m).
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AW #2 – 1.83m (true width) @ 8.1% Pb, 4.6% Zn and 0.2 oz/t Ag.
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MD #2 – 0.9m @ 6.5%Pb, 3.1% Zn and 0.4 oz/t Ag.
Approximately 50,000t of tailings remain on site. Historic surface sampling of dump returned average 3.47% Pb, 1.72% Zn and 22 g/t Ag .
Both intercepts are at a vertical depth of 70m.
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ASX: RTR | PAGE 8
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Ragged Hills Pb-Ag-Zn Deposit
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Check/Grab Sampling Completed by Rumble Resources and Historic Grab Sampling Plan
Limited Exploration Completed
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No soil geochemistry
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6 DD holes into main reef
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No high resolution geophysics
Rumble Check Sampling (14 Samples )
- Completely open along strike
Tailings
Approximately 50,000t Ave 3.47% Pb. 1.72% Zn, 22 g/t Ag
Historic Grab Sampling
22 samples from main reef – Ave 27.12% Pb, 111 g/t Ag
42 samples on main reef (1987) Range 15% to 50% Pb
6 samples > 5% Zn – Max 18.9% Zn Range 30 to 150 g/t Ag Cu to 0.75%
Main Zone (ore) 6 samples BRRK001 – 7.09% Zn, 1.1% Pb BRRK002 – 5.48% Zn, 31.54% Pb, 88 g/t Ag BRRK007 – 26.34% Pb, 76 g/t Ag BRRK009 – 35.69% Pb, 91 g/t Ag, 0.27 g/t Au BRRK012 – 14.51% Pb, 67 g/t Ag BRRK017 - 7.17% Zn, 3.11% Cu, 1.08% Pb
Wall rock – 7 samples BRRK003 – 4.13% Pb, 0.25% Zn BRRK004 – 3.44% Pb, 0.52% Zn BRRK005 – 4.75% Pb BRRK006 – 4.69% Pb BRRK008 – 11.94% Pb BRRK010 – 7.66% Pb, 0.53% Zn BRRK011 - 0.98% Pb, 0.51% Zn BRRK016 – 1.11% Pb, 0.75% Zn
See Legend Slide 6
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Ragged Hills Pb-Ag-Zn Deposit
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Check Sampling by RTR Ore Zone and Wall Rock Alteration
Footwall Zone
Ore Zone
Hanging Wall Zone
Zone up to 4.2m wide
Footwall Results
BRRK003 4.13% Pb, 9 g/t Ag BRRK004 3.44%Pb, 0.52% Zn BRRK006 4.49% Pb
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Hanging Wall Results
BRRK005 4.75% Zn BRRK008 11.94% Pb, 0.15% Zn BRRK016 1.11% Pb, 0.75% Zn
Ore Zone Results BRRK001 – 7.09% Zn, 1.95% Pb BRRK002 – 5.49% Zn, 31.54% Pb, 88 g/t Ag BRRK007 – 26.34% Pb, 76 g/t Ag BRRK009 – 35.69% Pb, 91 g/t Ag
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Ragged Hills East Prospect
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Check/Grab Sampling Completed by Rumble Resources and Historic Grab Sampling Plan
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Historic Rock Chip – 44% Pb, 73 g/t Ag Historic Rock Chip – 14.7% Cu, 40g/t Ag Historic Rock Chip – 8.1% Cu, 52 g/t Ag Historic Rock Chip – 34.1% Pb
Historic Rock Chips A - 23.4% Zn, 4.6% Pb B - 68% Pb, 1.21% Zn C – 18.9% Pb D – 12.5% Pb Rumble Check Sampling BRRK013 – 8.42% Zn, 16 g/t Ag BRRK014 – 14.88% Pb, 35 g/t Ag BRRK015 – 23.42% Pb, 49 g/t Ag See Legend Slide 6
Numerous workings over 2.5 km strike
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No soil geochemistry completed
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No drilling completed
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Completely open along strike
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Devons Cut Prospect
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Historic Grab Sampling Plan
Devons Cut Unstated no. of rock chip samples average – 13.52% Pb, 28 g/t Ag One sample from 6m shaft returned 12.6% Zn
1 km
No Exploration Completed
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No soil geochemistry
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No high resolution geophysics
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No drilling
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Completely open along strike
Historic Grab Sample rock chip – 12.1% Pb, 0.21% Zn, 17 g/t Ag
Wide (>5m) quartz/chert zone No exploration completed See Legend Slide 6
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Koongaling Hill, Lightning Ridge and Moxams Wells Prospects
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Historic Grab Sampling Plan
Koongalling Prospect Unknown No. of rock chip samples. Ave grade 31.7% Pb, 118 g/t Ag
Lightning Ridge Prospect
Western Zone – 5 rock chip samples average – 24.78% Pb, 27 g/t Ag Eastern Zone – 2 rock chip samples average– 21.65% Pb, 56 g/t Ag
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2 km
Historic workings over broad area
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No soil geochemistry completed
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No high resolution geophysics
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No drilling completed
Moxams Well Prospect
- Completely open along strike
3 rock chip samples Up to 5.4% Cu, 12.1% Pb, 16 g/t Ag
See Legend Slide 6
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Gossan Hill South Rock Chip Anomalism
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Historic Exploration Plan
Strong base metal anomalism in flat lying sediments encouraging for VMS potential Only reconnaissance rock chip sampling completed. Flat lying dolomite and chert Pb – 0.6%, Cu 1650 ppm Flat lying mineralised sediments Cu – 2.52%, Pb – 0.61%, Ag 24 g/t Flat lying mineralised chert Flat lying dolomite and chert Cu – 5.28% Zn – 1370ppm, Pb – 3040 ppm Flat lying mineralised chert and shales Main Structure Cu – 3.64% See Legend Slide 6
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Barker Well Prospect
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Historic Exploration Plan
North Shoot Rock Chip Sampling Pb to 21.7%, Ag to 15 g/t Single Gov DD Hole (1928) 0.8m @ 48.6% Pb, 5.5% Zn, 40.4 g/t Ag from 26m
Middle Shoot Rock Chip Sampling Pb to 28.8%, Ag to 34 g/t
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Large alteration zone associated with mineralised corridor
South Shoot (PD) Rock Chip Sampling Pb to 21%, Ag to 16 g/t Single Gov DD Hole (1928) 0.1m @ 2.2% Pb,18.7 g/t Ag From 95m
Limited Exploration Completed
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No soil geochemistry No detailed geophysics
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• Mineralised alteration corridor completely open
See Legend Slide 6
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Regional Tempest AEM Survey
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Analysis of the late time (channel 15) data indicated the basalts, andesites and felsic volcanics of the Fortescue Group (Late Archaean) have low conductance and low noise response. This suggests there are no or minor geological units such as graphitic shales which often masks base metal conductors and therefore ideal for Airborne EM systems such as VTEM.
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2 km
Ragged Hill East
Conductor
Ragged Hill Mine
A broad late time conductor (2000m line spacing) is
associated with the Ragged Hill Mine and the Ragged
Hill East prospect.
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Braeside Project – Tempest AEM Conductive Linears
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Potential Conductors
Barker Well Area Example
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Onlapping Jeerinah Formation Strongly conductive shale
A number of linear conductive trends (potential mineralisation) can be interpreted throughout the project area, however, with the current 2000m spacing, the processing has a north-south bias. Proposed VTEM will be on 400m spacing which will better define the conductive trends.
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Conceptual Model for Braeside Project
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Whole rock litho-geochemistry (completed by Rumble) was conducted on the footwall and hanging wall (proximal and distal) wall-rock zones to the main reef at the Ragged Hills Mine. Fresh unaltered basalt was located away from the mineralisation zones to use as a relative standard. In addition, fresh samples of porphyritic rhyolite of the Koongalling Felsic Volcanics were analysed for fertility classification. Age dating (historic) confirmed the potential bimodal association for the Koongalling Felsics (rhyolites) and the host rock to the mineralisation at the Ragged Hill Mine – Kylena Basalt. Pb dating of the mineralisation at the Ragged Hills Mine also had a similar age to the Koongalling Felsics.
Based on the on the lithogeochemistry, the Ragged Hills Mine mineralised structure likely represents a deep feeder fracture with underlying sub- volcanic porphyritic rhyolite. There is potential for VMS/porphyry related breccia pipe base metal deposits and if higher levels (sub-sea floor) are discovered, potential for VMS.
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Examples of pipe-like base metal deposits include the Elura Zn - Pb – Ag mine (Cobar, NSW). Elura comprises of 6 pipes ranging from 120m to 30m in diameter – pre mining resource of 50.7 Mt @ 8.8% Zn, 5.6% Pb, 107 g/t Ag and 0.2% Cu.
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Systematic Exploration Process
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Rumbles technical team will systematically explore the Braeside project looking to generate first order VMS feeder pipe targets using proven exploration techniques. Rumble will fast track exploration in stages outlined below:
- Stage 1: Regional soil geochemistry (multielement) to cover E45/2032 – Team ready to be mobilised
Stage 2: Airborne VTEM over the regional geochemical base metal trends.
Stage 3: Infill geochemistry over conductors (generated by VTEM) to rank targets.
Stage 4: Ground TEM surveys over the conductors
Stage 5: Drill test conductive plates in order or ranking
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Summary
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- Zinc and Lead Production globally in decline
Very high grade historical grab sampling at Braeside Project returned up to 18.9% Zn, 79% Pb, 11.64% Cu, 325 g/t Ag and 13 g/t Au, throughout project
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Braeside Project has VMS potential capable of hosting hosting large base metal deposits identified through litho-geochemistry completed by Rumble
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Rumble fast tracking systematic program to explore for VMS feeder pipe deposits with exploration commencing imminently
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RTR is funded through initial stages of exploration
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Successful Technical Director has discovered 7 deposits
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Rumble provides significant leverage to any exploration success.
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Contacts
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Shane Sikora, Managing Director [email protected] Brett Keillor, Technical Director [email protected]
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Disclaimer
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Disclaimer;
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This presentation has been prepared by Rumble Resources Limited (Rumble or the Company ). It contains general information about the Company’s activities current as at the date of the presentation. The information is provided in summary form and does not purport to be complete. This presentation is not to be distributed (nor taken to have been distributed) to any persons in any jurisdictions to whom an offer or solicitation to buy shares in the Company would be unlawful. Any recipient of the presentation should observe any such restrictions on the distribution of this presentation and warrants to the Company that the receipt of the presentation is not unlawful. It should not be considered as an offer or invitation to subscribe for or purchase any securities in the Company or as an inducement to make an offer or invitation with respect to those securities. No agreement to subscribe for securities in the Company will be entered into on the basis of this presentation or any information, opinions or conclusions expressed in the course of this presentation.
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This presentation is not a prospectus, product disclosure document or other offering document under Australian law or under any other law. It has been prepared for information purposes only. This presentation contains general summary information and does not take into account the investment objectives, financial situation and particular needs of any individual investor. It is not financial product advice and investors should obtain their own independent advice from qualified financial advisors having regarding to their objectives, financial situation and needs. Rumble nor any of their related bodies corporate is licensed to provide financial product advice.
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This presentation and information, opinions or conclusions expressed in the course of this presentation contains forecasts and forward looking information. Such forecasts, projections and information are not a guarantee of future performance, involve unknown risks and uncertainties. Actual results and developments will almost certainly differ materially from those expressed or implied.
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There are a number of risks, both specific to Rumble, and of a general nature which may affect the future operating and financial performance of Rumble, and the value of an investment in Rumble including and not limited to title risk, renewal risk, economic conditions, stock market fluctuations, manganese demand and price movements, timing of access to infrastructure, timing of environmental approvals, regulatory risks, operational risks, reliance on key personnel, reserve estimations, native title risks, foreign currency fluctuations, and mining development, construction and commissioning risk.
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You should not act or refrain from acting in reliance on this presentation, or any information, opinions or conclusions expressed in the course of this presentation. This presentation does not purport to be all inclusive or to contain all information which its recipients may require in order to make an informed assessment of the prospects of Rumble. You should conduct your own investigation and perform your own analysis in order to satisfy yourself as to the accuracy and completeness of the information, statements and opinions contained in this presentation before making any investment decision. Recipients of this presentation must undertake their own due diligence and make their own assumptions in respect of the information contained in this presentation and should obtain independent professional advice before may any decision based on the information. No representation or warranty, express or implied, is made in relation to the fairness, accuracy or completeness of the information, opinions and conclusions expressed in the course of this presentation. To the maximum extent permitted by law, no representation, warranty or undertaking, express or implied, is made and, to the maximum extent permitted by law, no responsibility or liability is accepted by the Company or any of its officers, employees, agents or consultant or any other person as to the adequacy, accuracy, completeness or reasonableness of the information in this presentation. To the maximum extent permitted by law, no responsibility for any errors or omissions from this presentation whether arising out of negligence or otherwise is accepted. An investment in the shares of the Company is to be considered highly speculative.
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The exploration targets or conceptual exploration targets in this presentation or expressed during the course of this presentation are subject to completion of the necessary feasibility studies, permitting and execution of all necessary infrastructure agreements. In relation to any statements pertaining to future exploration targets or conceptual exploration targets, the nature of the exploration target means that the potential quantity and grade is conceptual in nature, that there has been insufficient exploration to define a Mineral Resource and that it is uncertain if further exploration will result in the determination of a Mineral Resource.
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This presentation and information, opinions or conclusions expressed in the course of this presentation should be read in conjunction with Rumble's other periodic and continuous disclosure announcements lodged with the ASX, which are available on the Rumble website. In respect of reported historical exploration results please refer ASX announcements dated 20 March 2017 and 18 April 2017.
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Some statements in this presentation regarding future events are forward-looking statements. They involve risk and uncertainties that could cause actual results to differ from estimated results. Forward-looking statements include, but are not limited to, statements concerning the Company’s exploration programme, outlook and target sizes. They include statements preceded by words such as “potential”, “target”, “scheduled”, “planned”, “estimate”, “possible”, “future”, “prospective” and similar expressions.
Competent Person Statement:
- The information in this presentation that relates to Exploration Results or Mineral Resources is based on information compiled or reviewed by Mr Darryl Mapleson, who is a Member of the Australian Institute of Mining and Metallurgy. Mr Mapleson has sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration and to activities undertaken, to qualify as a Competent Person as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr Mapleson consents to the inclusion in the presentation of the matters based on his information in the form and context in which it appears.
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