Blackthorn Resources

Report
February 2014
AZMEC EXPLORERS FORUM 2014
DISCOVER DEVELOP DELIVER
Forward Looking Statement
This presentation may include certain “forward-looking statements”. All statements other
than statements of historical fact, included herein, including, without limitation, statements
regarding future plans and objectives of the company, are forward-looking statements that
involve various risks, assumptions, estimates and uncertainties. These statements reflect
the current internal projections, expectations or beliefs of the company and are based on
information currently available to the company. There can be no assurance that such
statements will prove to be accurate, and actual results and future events could differ
materially from those anticipated in such statements. All of the forward looking statements
contained in this presentation are qualified by these cautionary statements and the risk
factors described above. Furthermore, all such statements are made of the date this
presentation is given and the company assumes no obligation to update or revise these
statements.
An investment in the company is speculative due to the nature of the company's
business. The ability of the company to carry out its growth initiatives as described in this
confidential PowerPoint presentation is dependant on the company obtaining additional
capital. There is no assurance that the company will be able to successfully raise the
capital required or to complete each of the growth initiatives described. Investors must
rely upon the ability, expertise, judgment, discretion, integrity and good faith of the
management of the company.
2
Company Overview – Project Portfolio
Production
‘Deliver’
Burkina Faso
Resource
‘Develop’
Zambia
Exploration
‘Discover’
Perkoa Project
 First concentrates shipped
 Joint venture with Glencore (operator)
 27.3% Blackthorn Resources
Mumbwa Project
 PFS Kitumba Deposit completed
 M&I mineral resource 81.6Mt
@ 1.37% Cu
 High-grade core 34.7Mt @ 2.29% Cu
 100% Blackthorn Resources ownership
 5 Tenements – 1036.8 km2
Burkina Faso Exploration
 Base metals exploration
 Targeting VMS style satellite deposits
 Airborne EM has defined good targets
3
Company Overview
CAPITAL STRUCTURE
Issued Securities:
Market Capitalisation:
Cash:
ASX:BTR
164,285,950 ordinary shares
~$40M (@ $0.24 on 31 January 2014)
$16.3M @ 30 December 2013
Board Of Directors
William Cash
Chairman/Director
Michael Oppenheimer
Non-Executive Director
Roger Higgins
Non-executive Director
Peter Kalkandis
Non-executive Director
Derek Carter
Non-executive Director
Nicki Bowman
Non-executive Director
4
Perkoa Project – Burkina Faso
Ventilation Shaft
Open Pit
Elevator conveyor
Process Plant
5
Perkoa Project – original zinc only case
Key parameters: pre-expansion approval1
JORC code compliant
‘Probable’ Ore Reserve =
6.3Mt Ore ROM
(estimated using 9% Zn cut-off )
Average zinc grade
=
13.9% ROM
Production Rate
=
720kt pa ROM Ore
Expected life of Mine
=
9.5 years
Peak production
=
170kdmt pa
Concentrate grade
=
53% Zinc
Underground mine sub-level up-hole retreat method
Contained zinc metal
1
=
~90kt pa
Mining parameters based on the 2005 resource model and were derived in 2009 based on technical information and market conditions available at that time.
6
Indicative Underground Mine Design
BOX CUT AND
PORTAL ENTRY
SURFACE
TOPOGRAPHY
RETURN AIR RISE
5200m RL
RETURN AIR RISE
Horizontal Scale
SILL PILLAR
5100m RL
0m
1,000m
FOOTWALL OREBODY
SILL PILLAR
5000m RL
HANGINGWALL OREBODY
SILL PILLAR
4900m RL
SILL PILLAR
4800m RL
SILL PILLAR
4700m RL
Mineralisation is Open at
>600m modelled depth
7
Perkoa Resource Upgraded May 2012
2012 Mineral Resources1
(May 2012)
2005 Mineral Resources
Mt
Zn %
Ag g/t
Pb %
Mt
Zn %
Ag g/t
Pb %
Measured
0.43
17.2
41.4
-
1.49
13.1
38.4
0.09
Indicated
6.29
16.3
35
-
5.66
10.5
57.9
0.18
Measured and
Indicated
6.72
16.4
35.4
-
7.15
11
53.8
0.16
-
-
-
-
5.01
9.14
54.2
0.17
6.72
16.4
35.4
-
12.2
10.3
53.9
0.16
Inferred
Total
1 The
changes to the Mineral Resources estimates are due to:
• The inclusion of additional samples from extension and infill drilling;
• Re-modelling to create silver and lead domains that lie outside the zinc domain; and
• Applying a cut-off value (US$80/t) rather than a cut-off grade (5% zinc) to ensure that the area of silver and lead that are independent of the zinc are assessed. This
equates to a zinc equivalent cut-off of approximately 4.5% assuming the parameters disclosed in the ASX release dated 25 May 2012.
8
Mumbwa Project – Zambia
Core sample storage
Drilling
Kakozhi outcrop
Core Sample S36-038
9
Mumbwa Project – Overview
Mumbwa Project
 Blackthorn 100% ownership
 BHP Billiton - (2% Production Royalty)
Phases 1 – 7 of drilling completed
 141 holes drilled for > 75,000 m
 Phase 7 infill/geotech/metallurgy completed
Kansanshi Mine
FIRST QUANTUM
Lumwana
Mine
BARRICK
ZAMBIA
Mineral Resource update December 2013
 34.7Mt at 2.29% Cu for a total of 795,000 tonnes
of copper in the Measured and Indicated
categories at a 1% cut-off
Prefeasibility Study
Mumbwa
Project Area
 Completed and released in September 2013
 Optimisation of PFS underway to define final
option for FS
 Lycopodium Minerals appointed Lead Consultant
 Final EIS submitted to ZEMA for review
Mumbwa Licence Renewal
 Mumbwa licence transferred to BTRZ and 7th
year renewal granted 2013
 Mining Lease Application to be submitted mid
2014
10
Results obtained since Feb 2013
 Phase 7 completed with a total of 16 holes for
~9,500m with results including;
 Hole KITDD-027

243m @ 5.0% Cu between 208m and 451m
 Hole KITDD-031

166m @ 7.14% Cu between 199m and 365m
 Hole KITDD-028

174m @ 5.04% Cu between 240m and 414m
 Hole KITDD-032

223m @ 3.22% Cu between 183m and 406m
 Hole KITDD-030

184m @ 2.71% Cu between 278m and 462m
 Hole KITDD-033

110m @ 4.08% Cu between 236m and 346m
 Hole KITDD-037

186m @ 2.25% Cu between 221m and 407m
11
Kitumba Mineral Resource Update Dec 2013
 A key improvement on the previous Mineral Resource estimate is the
inclusion of 10.4 million tonnes in the Measured category at a grade
of 2.93% Cu using a 1% cut-off, for a total of 306,000 tonnes of
copper, or approximately 38.5% of the total contained copper in the
Measured and Indicated categories.
12
Kitumba Section Location
 Drill hole location plan
showing collar locations
on surface geology and
the surface projections of
the 1% Cu shells for the
Measured and Indicated
resources.
 Dimensions of high grade
material (>1% Cu) is
roughly 300m x 500m x
320m (xyz).
 Also note the long section
and cross section location
lines (next slides).
13
Kitumba Long Section Looking East
Long Section 479230mE
14
Kitumba Cross Section Looking North
Cross Section 8373925mN
15
Kitumba Prefeasibility Study Outcomes
 Summary Results from PFS (still to be optimised);
 Underground mine with 11 years mine life, 33 million
tonnes of mineable ore with 572,000 tonnes of contained
copper (using old resource estimate).
 Annual ore production of ~3 million tonnes Run of Mine
(ROM).
 Metallurgical flowsheet uses a combination of flotation and
solvent extraction and electrowinning (SXEW).
 Annual average of approximately 39,000 tonnes copper
(ranging from 36,000 tonnes in early years ramping up to
40,000 tonnes in the latter years).
 Life of mine average C1 cash cost estimate of US$2.04/lb
of Cu metal.
 Project development cost estimated at US$358 million,
including US$34.2 million contingency.
16
Exploration Foot Print Zambia ~1036.8 km2
LICENCE NUMBER
AREA
SQ KM
Mumbwa
8589-HQ-LPL
248.3
Musafwa
14265-HQ-LPL
186.0
Kachindu
14266-HQ-LPL
203.9
Kabwera
14267-HQ-LPL
147.0
Nyoko
16385-HQ-LPL
251.6
TOTAL
1036.8
NAME
17
Mumbwa Exploration Upside
 Potential to expand the current Kitumba resource.
 A number of high priority “Satellite” targets near Kitumba have been
defined from soil geochem and EM work.
 Multiple targets in the broader Mumbwa licence area include the
Kakozhi prospect with;

KAKDD-001 drilling results including 202m @ 0.35% Cu from 16m to 218m
including 9m @ 0.78% Cu.

Coincident soil geochemistry and FALCON™ gravity/magnetics/radiometrics
anomaly.

Similar geology and topographic characteristics as Kitumba.

Adjacent to the crustal scale Mumbwa Fault.

Potential also exists with a number of other untested FALCON™ gravity
anomalies within the tenement package.
 A recent soil program between Kitumba and Kakozhi has produced
a number of targets with good geology/structure/geophysics.
 Geochemical orientation surveys completed for Musafwa and
Kachindu tenements highlighting some areas for follow up work.
18
Mumbwa – Outlook 2014 and Beyond




Optimisation of Prefeasibility Study - to be completed April 2014.
Mining licence application over Kitumba - June/July 2014.
Initiate Definitive Feasibility Study - Q3 2014.
Continue with DHEM orientation and interpretation work within Kitumba
and surrounds.
 Plan for additional drilling for metallurgical testing, geotechnical study
and sterilisation drilling.
 Continue regional exploration work.
19
Kitumba Project – development timeline (CY)
2013
Qtr4
2015
2014
Qtr1
Qtr2
Qtr3
Qtr4
Qtr1
Qtr2
Qtr4
Qtr3
PFS OPTIMISATION
Resource Update/MRE Report
Metallurgical Testing
Geotechnical assessment
Mining Optimisation
Final PFS Report
MINING LICENSE APPLICATION
DFS FUNDRAISING
DFS IMPLEMENTATION
Planning & Tendering
Engineering
Regulatory & Permitting
Geotech & Resource Drilling
Commercial, Marketing, Financial assessments
Final DFS Report
FINAL INVESTMENT DECISION
20
Social and Community - Kitumba
Big Concession Farming Community
Important social projects
 Electrification of the local
Kitumba Community
School (KCS).
 Donation of school
books/chairs/skills to
KCS.
 Completion of needs
assessment for local
community.
 Community meetings and
information sessions
initiated and to be a
regular occurrence.
Kitumba Community School
21
Value Growth Drivers
TODAY
NEAR TERM
MED-LONG TERM
 Ramp up production and
 Optimisation of Perkoa
 Kitumba Project DFS
export from Perkoa
Project
 Measured and Indicated
Cu resource Kitumba
Project
 High-grade drilling
results Kitumba Project
Operations
 Complete optimisation
of PFS Kitumba Project
 Mumbwa Project
exploration work
 Base metals exploration
study
 Potential for further
discoveries at Mumbwa
Project
 Potential growth
opportunities
Burkina Faso
 Regional targets
Mumbwa Project
22
Attributions
Perkoa Project
The information in this presentation that relates to Exploration Results, Mineral Resources or Ore Reserves at the Perkoa Project, based on work done prior to the 2012
Perkoa Project Mineral Resource update and prior to the preparation of the expansion case as presented in slides 7 to 8 of this presentation, is based on information
compiled by Mr John Miles and Dr Mike Armitage, both of whom are members of the Institute of Materials, Minerals and Mining, which is a Recognised Overseas
Professional Organisation (“ROPO”).
Dr Armitage, who is also a fellow of the Geological Society of London, is the Chairman of SRK Consulting (UK) Ltd (“SRK”) and has taken responsibility for the Mineral
Resource aspects of SRK’s work. Mr Miles is a Principal Associate of SRK and takes responsibility for the ore reserve and economic modelling aspects of SRK’s work.
Mr Miles and Dr Armitage both have sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity
which they are undertaking to qualify as Competent Persons as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves’. Mr Miles and Dr Armitage have consented to the inclusion in this presentation of the matters based on their information in the form and
context in which it appears.
The information in this presentation that relates to the Mineral Resources estimate produced in 2012 for the Perkoa Project is based on information compiled by Mr
Danny Kentwell, who is a fellow of The Australasian Institute of Mining and Metallurgy (“FAusIMM”). Mr Kentwell has 23 years’ experience in resource evaluation, mine
planning and operations and is employed full-time by SRK Consulting Australasia Pty Ltd. Mr Kentwell 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 by the 2004 Edition of
the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Kentwell has consented to the inclusion in this presentation of
the matters pertaining to the 2012 Perkoa Mineral Resource estimate based on his information in the form and context in which it appears.
Mumbwa Project
The information in this presentation which relates to Mineral Resources at the Mumbwa Project in Zambia is based on information compiled by Mr Jeremy C Witley, BSc
(Hons), Pr.Sci.Nat., who is a member of the Geological Society of South Africa, which is a Recognised Overseas Professional Organisation (“ROPO”). Mr Witley has
more than 20 years’ experience in base and precious metals exploration, mining geology and Mineral Resource estimation and is a Principal Consultant with the MSA
Group. Mr Witley has sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration, 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 Witley has consented to the
inclusion in this presentation of the matters based on his information in the form and context in which it appears.
The information in this presentation which relates to Exploration Results at the Mumbwa Project in Zambia is based on information compiled by Mr Michael J Robertson,
MSc, Pr.Sci.Nat., MSAIMM, who is a member of The South African Institute of Mining and Metallurgy, which is a Recognised Overseas Professional Organisation
(“ROPO”). Mr Robertson has 22 years’ experience in mineral exploration and is a full-time employee of The MSA Group. Mr Robertson has sufficient experience which
is relevant to the style of mineralisation and type of deposit under consideration and to the activity which is being undertaken 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 Robertson has consented to the
inclusion in this presentation of the matters based on his information in the form and context in which it appears.
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