Which companies are exploring well; A systematic analysis of - PowerPoint PPT Presentation

Which companies are exploring well; A systematic analysis of exploration strategy in the Fraser Range Region, Western Australia Presenter: Zenoushka Bynevelt (Image Source: Sirius Resources CET 2014 Presentation)

Objective To help improve contemporary exploration strategies via economic evaluation of junior exploration companies. (Sirius Resources CET 2014 Presentation)

Wider Scale Importance - The current crisis - No systematic analysis for investment - Form a new model to evaluate exploration strategy - Recognising strategies to increase the effectiveness of exploration investment. (Koch et al., 2015)

The Fraser Range: Prospective for Nickel-Copper (Smithies et al. 2013)

Aims 1. To document the strategies of nickel-copper explorers in the Fraser Range region. 2. To analyse the cost of the different exploration strategies applied in the Fraser Range. 3. To determine which of the exploration strategies appear to have a higher probability of success when applied to Fraser Range geology. 4. To assess the trade-off between cost and probability of success, using an Expected Monetary Value approach.

The Approach Undertaken

Exploration Spending Results Part 1: 2014 Calendar Year: 1. ~$95,061,000 spent on nickel-copper projects in region 2. 14 companies show active and initial prospecting ~$40,580,000 cumulatively spent 3. Over ~60% of spending made up by 5 companies (excluding Sirius Resources)

Results Part 2: Exploration Strategies & Techniques

Results Part 3: Expected Monetary Approach Matsa Resources Limited Symons Hill Project E69/3070 (100% ownership) ~$8,875,000 on FR project Market Capitalisation Value~$32.25M

Expected Monetary Values (EMV) Stages: Mineralisation:

Key Findings: 1. Geochemical techniques are more useful than geophysical surveys at the earlier stages of exploration; 2. Companies that implemented a diverse range of techniques produced less false positive results and more nickel sulphide intercepts compared to companies using a narrow range of techniques; 3. Starting initial exploration with aircore drilling may be an effective technique in producing success; 4. The cost of exploration does not appear as critical to company evaluation, compared to the probability of success values. Companies should therefore focus on maximising the range of techniques used.

Thank you to: John Sykes Professor Allan Trench Professor Michael Dentith

References Guj, P. & Bartrop, S.B., 2009. Estimating Historical Probabilities in Mineral Exploration. CET Quarterly News , (8). Koch, A., Dale, S. & Upton, D. 2015. Tackling the Crisis in Mineral Exploration. Boston Consulting Group. Sirius Resources CET Presentation, 2014 Smithies, R.H. et al., 2013. Petrogenesis of gabbros of the Mesoproterozoic Fraser Zone: constraints on the tectonic evolution of the Albany-Fraser orogen , Perth: Geological Survey of Western Australia, Record 2013/5. Spaggiari, C. V et al., 2011. The geology of the east Albany- Fraser Orogen - a field guide , Perth: Geological Survey of Western Australia, Record 2011/23.