Published on March 4, 2014
DIATREME RESOURCES Milestones at Cyclone and New Projects March 2014
Statements This presenta;on contains certain forward-‐looking statements and forecasts which include without limita;on, expecta;ons regarding future performance, explora;on, mineral resources, the ﬁnancial posi;on of Diatreme Resources Limited (the “Company”), industry growth or other trend projec;ons. Whilst this presenta;on is based on informa;on from sources which are considered reliable, the Company, its directors, employees and consultants do not represent, warrant or guarantee, expressly or impliedly, that the informa;on in this presenta;on is complete or accurate. To the maximum extent permiOed by law, the Company disclaims any responsibility to inform any recipient of this presenta;on of any maOer that subsequently comes to its no;ce, which may aﬀect any of the informa;on contained in this document and presenta;on. Nothing in this presenta;on should be construed as either an oﬀer to sell or a solicita;on of an oﬀer to buy or sell securi;es. STATEMENT IN ACCORDANCE WITH THE AUSTRALASIAN CODE FOR REPORTING OF EXPLORATION RESULTS, MINERAL RESOURCES AND ORE RESERVES (THE JORC CODE) The informa;on in this report, insofar as it relates to Explora;on Results is based on informa;on compiled by company personnel under the supervision of Mr David Jelley, who is a full ;me employee of Diatreme Resources Limited and a Member of the Australasian Ins;tute of Mining and Metallurgy. Mr Jelley has suﬃcient experience which is relevant to the style of mineralisa;on and type of deposit under considera;on and to the ac;vity which he has undertaken to qualify as a Competent Person as deﬁned in the 2004 Edi;on of the ‘Australasian Code for Repor;ng of Explora;on Results, Mineral Resources and Ore Reserves’. Mr Jelley consents to the inclusion in the report of the maOers based on the informa;on in the form and context in which it appears. This informa;on was prepared and ﬁrst disclosed under the JORC Code 2004. It has not been updated since to comply with the JORC Code 2012 on the basis that the informa;on has not materially changed since it was last reported. The informa;on in this report that relates to Mineral Resources is based on informa;on compiled by Mr Ian Reudavey, who is a Member of the Australian Ins;tute of Geoscien;sts, and a full ;me employee of Diatreme Resources Limited. Mr Reudavey has suﬃcient experience which is relevant to the style of mineralisa;on and type of deposit under considera;on and to the ac;vity which he has undertaken to qualify as a Competent Person as deﬁned in the 2012 Edi;on of the ‘Australasian Code for Repor;ng of Explora;on Results, Mineral Resources and Ore Reserves’. Mr Reudavey consents to the inclusion in the report of the maOers based on the informa;on in the form and context in which it appears.. The informa;on in this report that relates to Ore Reserves is based on informa;on compiled by Mr Phil McMurtrie, who is a Member of the Australasian Ins;tute of Mining and Metallurgy. Mr McMurtrie is a director of Tisana Pty Ltd, and is a consultant to Diatreme Resources Limited. Mr McMurtrie has suﬃcient experience which is relevant to the style of mineralisa;on and type of deposit under considera;on and to the ac;vity which he has undertaken to qualify as a Competent Person as deﬁned in the 2004 Edi;on of the ‘Australasian Code for Repor;ng of Explora;on Results, Mineral Resources and Ore Reserves’. Mr McMurtrie consents to the inclusion in the report of the maOers based on the informa;on in the form and context in which it appears. This informa;on was prepared and ﬁrst disclosed under the JORC Code 2004. It has not been updated since to comply with the JORC Code 2012 on the basis that the informa;on has 2 not materially changed since it was last reported.
Diatreme Projects Cape Bedford Mandora Tick Hill Clermont Grays Hill Cyclone Eucla Basin Elliston Anabama Glenthompson 3
Mineral Sands Explora@on 4
Cyclone Project Fundamentals • PROBABLE RESERVE: 97 million tonnes @ 2.5% heavy minerals. • 770kt of high value Zircon • Resource: 137Mt @ 2.2%. Poten@al for addi@onal resources. • Joint Venture by Perpetual Mining Holdings Limited (Hong Hong) over Cyclone. • Cyclone JV funding to establish: Water, Environmental & Heritage milestones. 5
Proposed Mining Methods 6
Cyclone Mining Stats – PFS Strip Ra@o 1.1 : 1 Mining Rate (Dry) 1,300 tonnes per hour – 2 x Dozer traps Mine Site Wet Concentra@on Plant Product 26 Tonnes / Hour HMC produc@on 147,000 t PA @ 98.5% HM Concentrate Transport -‐ Road 240km -‐ 4 trucks x 110 tonnes to Forrest. Transport -‐ Rail 1,000km OPTIONS Mineral Separa@on Plant in Australia Mineral Separa@on Plant in China or Other Country Direct sale of HMC within Australia Direct sale of HMC oﬀshore – Most likely op@on. 7
Transport Op@ons CYCLONE Forrest Perth Esperance Haul Road Corridor Port Pirie Adelaide Initial Environmental Surveys - Completed Initial Cultural Heritage Surveys - Completed Formal Referral to the EPA - Completed Referral for Environmental Approval Process - Underway 8
Cyclone Project Milestones • Agreement in place with Chinese party to earn initial 6% for $2M additional to $1.6M expended on project received as placement in 2013. • Able to farm-out further interest in return for funding and still maintain sizeable equity. Water supply - Major water aquifer discovered on site. Bore complete. Supply assured. Haul road - Progressing environmental studies and permitting of haul road from mine site to rail siding. Mining Lease - Finalise agreement with Traditional Owners. 9
Drilling for Water -‐ Cyclone • Successful water discovery beneath proposed mine site. • Water discovery as important as mineral discovery at Cyclone. • High yielding sandstone aquifer below 530m depth, extending to the base of test borehole (803m). • Appears to be part of an extensive Officer Basin aquifer system. • Brackish water quality amenable to mineral processing requirements. • Drill hole cased and developed for future production bore. 10
Drilling for Water -‐ Cyclone Preliminary flow of 40 l/sec at salinity of 20,000TDS 11
Mineral Sands Explora@on WA Eucla Basin Tenements Zephyr Legend Possible Beach Strandline Diatreme Tenement Topography Background Cyclone Highly Prospective 12
Cape Bedford, QLD Cape Bedford, QLD Cape Bedford EPM Application Size: 554 sq km Silica Sand, Heavy Mineral Sands 13
Cape Bedford, QLD Lookout Pt Large sand dune system with known silica sand mineralisation cover an area 50km x 15km. (50 – 100m high). Previous exploration for silica sand indicates heavy minerals are present in a number of horizons. High grade silica established from former drilling above heavy minerals. Existing port at Cape Flattery and potential port sites at Nob Pt & Lookout Pt. Nob Pt Culture of mining with indigenous landowners with Cape Flattery silica sand mining operation. Issues with the proposed Cape York Regional Plan to be resolved. T.O support for granting tenement. 14
Cape Bedford, QLD Sand Dunes, Cape Bedford. 15
Cape Bedford, QLD Heavy Minerals on beach, Cape Bedford. 16
Cape Bedford, QLD Mineralisation on the current beach shedding from the dunes 17
Cape Bedford, QLD Major dune field with high grade silica sand overlying heavy mineral sand potential 18
Cape Bedford, QLD Overburden comprising high quality silica sand grading up to 99.9% silica 19
Elliston, SA Elliston Project, SA EL Application Size: 994 sq km Heavy Mineral Sands Elliston 20
Elliston, SA 21
Elliston, SA Prospective for heavy mineral sands along a ridge 35 km long and 5km wide Tested by BHP-Utah in 1990 as part of an assessment of the Eucla Basin, but only one drill traverse of 1km spaced shallow (<30m) holes completed at the far northern end of the feature. BHP results: • TA0010 - 14m at 0.4% HM from 16m (open at depth) • TA0011 - 9m at 0.3% HM from 18m (open at depth) • TA0012 - 10m at 0.3% HM from 16m (open at depth) Mineralogy: • 25% Zircon (23 – 27%) • 5% Rutile (4 – 7%) • 17% Leucoxene (12 – 23%) • 31% Ilmenite (26 – 37%) BHP were exploring for rutile and found very little in the Eucla Basin so abandoned the project. 22
Mandora, WA Mandora Project, SA EL Application Mandora Size: 472 sq km Heavy Mineral Sands 23
Mandora, WA Easily accessible for exploration Diatreme first mineral sands company into the Southern Canning Basin. Good network of tracks and fence lines for access 24
Mandora, WA Mandora Project, Canning Basin, WA Broome Large (50km long) radiometric anomaly behind current beach. Will be explored for heavy mineral sands using Company’s aircore drill rig. Mandora Project Port Headland 25
Mandora, WA 26
DRX Prospec@vity • Cyclone – One of the best undeveloped zircon deposits in the World. • Cape Bedford, Qld – 554 sq km of massive silica sand & @tanium mineralisa@on. • Elliston SA -‐ Virtually unexplored with known heavy mineral poten@al. • Mandora, WA – Unexplored radiometric high within Canning Basin. • Exci@ng porphyry copper explora@on projects in Queensland, Victoria & South Australia. 27
Investment Fundamentals • Programs funded and underway for the Environmental, Heritage and Haul Road Licencing requirements at Cyclone Zircon Deposit. • Poten@al funding op@ons at project level to crystallise shareholder value. Currently 100% ownership by DRX -‐ Agreement in place with Chinese party to earn ini@al 6% for $2M. • A renounceable en@tlement rights issue to shareholders currently on oﬀer. • High JV interest in DRX project porjolio. Nego@a@ons currently for Tick Hill gold and Clermont copper projects. • Massive imbalance between DRX share price and value of Cyclone Deposit. Investment opportunity at DRX current low share price. 28
DIATREME RESOURCES Towards Development at Cyclone New Projects. High Prospec;vity March 2014
Diatreme Resources Limited ... Cyclone represents potential for new, ... working on a number of prospective metalliferous exploration projects as follows:
View 341839 New Projects posts, ... New team members or new projects present leaders with new opportunities to ... Tony Fawdon, Diatreme Resources Limited ...
DIATREME RESOURCES LIMITED. ... Tony Fawdon, said Cyclone was of ... due to adjacent deposits and new discoveries. With Diatreme’s additional ...
DIATREME RESOURCES LIMITED ABN 33 061 267 061 ... Diatreme Resources Contact: Tony Fawdon ... and away we went again with new projects.
DIATREME RESOURCES LIMITED ... Diatreme Resources Contact: Tony Fawdon . ... Infill drilling of the Cyclone resource was carried out in two phases:
Tony Fawdon – 29 November 2011 ... the financial position of Diatreme Resources Limited ... • New prospective heavy mineral projects for testing in 2012 .
... for which he was Managing Director/CEO until 2000 and went on to start Diatreme Resources Limited in ... to Traprock Resources) ... (New Zealand, Papua ...
BOLLWERK > News > Allgemein > Diatreme Resources announced a boost for its Cyclone ... Diatreme Resources Limited ... Tony Fawdon, said Cyclone was of ...
... DIATREME RESOURCES LIMITED ... Projects: EuclaBasin Cyclone Zircon Project ClermontCopper Project AnabamaCopper Project GilbertRiver Base Metals ...