for personal use only · 7/22/2016 · the eocene escondida mine, chile: the world's largest...
TRANSCRIPT
Aligning the Stars
Engaging with the Edge of Change
Noosa Mining Conference
21-22 July 2016
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DGR holds major positions in five listed companies, all with world class or Tier 1 project potential
How did we do it ?
What have we got ?
Where are we going ?
Aligning the Stars F
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Global Resources Landscape - A New Dawn
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• Urbanisation of 4bn
people will drive steady
global growth;
• Capital delivery out of
sync with community
demand;
• Price variability has a 5 to
7 year cycle;
• Get set now;
• Emerging nations
• Using paradigm shifts in
technology and;
• Talented geoscientists &
invested management
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Raise to advance or preserve
Raise to create
Raising is difficult
Good News: Commodities Rising, Market Spending
Background slide from Lion Selection group.
This year 2016
2014 - 15
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Constant Growth Defines Key Target Commodities
Urbanise 4 billion people in 35 years – Resource prices are going up
Iron to build it
Gas and Coal to power it
Copper to wire it
Fertilisers
to feed us
Aluminium to make it lighter
Gold –
A form of money
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6 The Eocene Escondida Mine, Chile: The world's largest copper producer - same host rocks, same age as Cascabel. Image:BHP Billiton
USD1,000/t
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I I I I I I I I I I I I I I I I I I I I I I I I I I i
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IncreasingDemand
~ 5Mt increase over The next decade
7000 _ Copper Price set to close this gap.
Likely Range for Global Demand from 2015 - 2025
You’ve Got to Look for Copper
“The Global copper industry needs a new Escondida mine every 15 months over
the next 10 years in order to meet global demand…” Rio Tinto CEO Jean-Sébastien Jacques
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Steady Increase in Gas Price Forecasts to Aid Armour Energy
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The Resource Factory Model
2. Seed raising, proof of
concept, IPO
3. Exploration programs
4. Resource definition,
secondary raisings
5. Development
1. Choose commodity,
region and country
Phase 2
Phase 3
Phase 4
Phase 5
Phase 1
Reinvest in
new project
development
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6. Production
Production & dividends
Phase 6
Argentina, Africa,
Energy, Copper,
Zinc, Gold For
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Highly Levered to Success Through Equity
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How Did We Do It ?
PEOPLE
THE IMPORTANCE OF SCALE AND RECOGNISING PATTERNS
THE RIGHT STUFF
IN THE BEST PLACE
TECHNICAL INNOVATION
DOING IT QUICKLY
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Big Thinkers- Talented Geoscientists
Jason Ward - SolGold
Remote Operations
specialist, south west
Pacific.
Scandinavian IOCG
South American copper
gold porphyry
Neil Wilkins - DGR
Generative
Gold Ridge Solomon
Islands
Shale oil and gas
Macarthur Basin-AJQ
Freda Nena discoveries
PNG
Zinc Lead Macarthur
Basin for Armour
Benn Whistler - SolGold
South Pacific and South
America copper gold
generation and operations
Vatoukuola.Guadalcanal,
Casacbel Ecuador
Len Kolff – Iron Ridge
Rio Simandou
Tawana CEO
Peter Bubendorfer -
DGR Generative
Generated Arrow
Energy’s Surat Basin Gas
Bow Energy
Galilee Coal for Waratah
Coal on the Roma Shelf
Luke Titus - Armour
Macarthur Basin shale oil
and gas, Zinc – Lead
US petroleum
opportunities
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Passionate Invested Executives
INVESTED EXECUTIVES Capital investment that matters
Strong industry experience
No distractions
Big thinkers
They did it..
Nick Davies Arrow Energy
Peter Spiers Orbis Gold
Peter Lynch Waratah
Coal
Richard Laufmann
Ballarat Gold
Vince Mascolo
Iron Ridge
Resources
They’ll do it..
Robbert de Weijer
Armour Energy
Neil Stuart
Dark Horse
Resources
Peter Williams AusTin Mining
David Mason
Dark Horse
Resources
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Think Big. Colossal Footprint- Armour’s McArthur Basin Project
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Cooper Basin, QLD
► Small leases, diluted working interests
► High CO2 (6%-40%)
► TOC: 2%-4%
► Kitchen Area - 75,000km²
McArthur Basin, NT
► Armour Energy 100% working interest
► Low CO2 (3%), wet & dry gas + helium
► TOC: 4%-7%
► Recent successes have confirmed potential
► Kitchen Area - 75,000km² (granted EP’s only)
Provinces Attract:
► Governments
► Majors
► Capital
Provinces give you:
► Room to define
target areas and
relinquish ground
► Access
redundancy
► A cookie cutter for
Success
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Be Lateral -Think 1.2 Billion Years Ago!!
Orbis Gold’s Birimian gold projects
were sourced from a top-down search strategy
IronRidge’s Gabonese iron ore projects
were sourced from a top-down search strategy
NavGas’ and Armour Energy Proterozoic oil and gas
projects were once in the company of giants
NavGas and Armour
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Look in a Well Endowed Province With Scale
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Andean Copper Belt For
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Natural Patterns Dictate Spatial Frequencies in Orebody Location
• Select the right scale to explore at.
• Thing big to see the patterns in natural databases.
• Make exploration predictive.
• Discoveries reliable and cost effective.
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A Prospect
A Province
A Field
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Patterns in Geochemical Data Lead to 14 Targets at Cascabel
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Soil Molybdenum Soil Cu/Zn Ratio Soil Manganese
Site Offices
Rocafuerte
ALPALA NW
Santa Cecilia
ALPALA CENTRAL
ALPALA SE
Alpala Camp
CRISTAL
AGUINAGA
TRIVINIO
TANDAYAMA -AMERICA
ALPALA WEST
ALPALA SOUTH
MORAN
PARAMBAS
CARMEN
CHINAMIBCITO
Site Offices
Rocafuerte
ALPALA NW
Santa Cecilia
ALPALA CENTRAL
ALPALA SE
Alpala Camp
CRISTAL
AGUINAGA
TRIVINIO
TANDAYAMA -AMERICA
ALPALA WEST
ALPALA SOUTH
MORAN
PARAMBAS
CARMEN
CHINAMIBCITO
Site Offices
Rocafuerte
ALPALA NW
Santa Cecilia
ALPALA CENTRAL
ALPALA SE
Alpala Camp
CRISTAL
AGUINAGA
TRIVINIO
TANDAYAMA -AMERICA
ALPALA WEST
ALPALA SOUTH
MORAN
PARAMBAS
CARMEN
CHINAMIBCITO
Porphyry Cluster
Porphyry Cluster
Porphyry Cluster
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Surface Targets are Becoming Less Frequent –
Exploration Demands Larger Deeper Deposits
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After: Minex Consulting
After: Minex Consulting
Gold Discoveries (MOz) No. of Deposits >1 Moz found in the world from 1950 -2014 by type
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35
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25
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10
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0 1950 1960 1970 1980 1990 2000 2010 2020
215 deposits of more than 10MOz since 1950
1300 deposits of 1-10 MOz since 1950
Primary Gold
By-product Gold
Depth of Discoveries (MOz) Depth of Cover (m) * size of bubble refers to overall Pre-Mined Resources in MOz
World Excluding Sth Africa
South Africa
1900 1920 1940 1960 1980 2000 2020
CASCABEL
Gold Discoveries have a hit 70 year low Only 4 Tier 1 Discoveries since 2006 Golpu, PNG / Brucejack,BC / Redhill-Goldrush, NV / Chester, ON
Cascabel is the fifth-how big do you dare? The wider Cascabel tenement holds 14 porphyry copper-gold targets
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Innovations in Magnetic Modelling- Suggest that Alpala
Could be Very Large
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Constrained MVI Model – a proxy for quartz-chalcopyrite-magnetite veining above a high-grade porphyry intrusion!
MVI Modelling Now Constrained to Down Hole Magnetic Susceptibility Data
Moran-Alpala Constrained MVI Magnetic Model
Moran
Alpala Central
Carmen
Alpala West
Alpala NW
Alpala Central
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High Grades Set Us Apart in the DGR Group
SolGold - Cascabel high grade core
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Alpala CSD-13-005 – 1204.0m
Asbolite rich cobalt ore
Bauxite at Monogorilby
Alpala CSD-16-017 – 880.45m
Granville Tin Concentrate table in production
IronRidge Resources
AusTin Mining
May Queen high grade gold veins
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Category Estimate
Cash flow
timing (1)
• Oil – shortly following completion
• Gas / LPG / condensate – 6 to 12
months
Independently
verified 2C
contingent
resources
(net) (2)
• Gas – 105 PJ gas
• Condensate – 1,011,978 bbls
• LPG – 214,580 tonnes
• Oil - 152,800 barrels
Storage • Newstead facility ready to go
• Already contains sales gas
• Potential for further capacity
Un-risked
prospective
resources
exploration
upside
• Unconventional gas and condensate
in Permian reservoirs
• Gas in Permian Coals and shallower
Walloon Coal Measures
(1) Refer Armour Energy ASX release of 21 July 2016. (2) Can be reclassified to 2P reserves following the recommissioning of the Kincora Gas Plant and necessary infrastructure and approval of the required well activities. Refer Armour Energy ASX
release of 19 July 2016.
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Roma Shelf, Surat Basin project
We’ll Always Need Oil and Gas!
Armour is transitioning to become a significant petroleum producer
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Developing Nations - Early Mover Advantages for Juniors
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DGR’s daughter companies go to emerging jurisdictions to establish resource projects.
Government support
Available tenure
Globalisation demands increasing regulatory prudence
Growing financial market acceptability
Strong infrastructure base
Improving living standards
Maturing taxation and development regulations
IronRidge with Minister of Mines Gabon, Africa
Javier Córdova - Minister of Mines Ecuador.
Dark Horse Resources in Rio Negro Province, Argentina
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Dark Horse Resources’ Big Power Opportunity in
Argentina
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• Pico Quemado coal – a big project with big potential (DHR: up to 75%* )
• High quality steaming coal
• 600 km from an Argentine port
• Chilean ports blocked by the Andes, but: 80km from 4 x 500kV power lines to one of the worlds largest cities!!
• BA power shortages
• New progressive government
• DGR and Dark Horse – think laterally *Subject to Farm in conditions and Terms see announcement dated 26/08/2015
Aluar Aluminium Smelter
Rosario Industrial
Area
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Invested Board and Management
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Shareholding Ownership Number of
Shares Percentage of Shares
Number of Options
Percentage of Options
Board of Directors 114,796,041 21% 34,950,000 47%
Key Management 15,064,104 3% 20,000,000 27%
Other Shareholders 421,021,732 76% 19,500,000 26%
Total 550,881,887 100% 74,450,000 100%
30 June 2016
47%
27%
26%
Board Management Others
21%
3%
76%
Shares on Issue Options
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Corporate Asset Update
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• SolGold about to rerate (?) on the basis of the tier 1 Cascabel copper gold discovery.
• Iron Ridge - Bauxite assessment for Monogorilby due.
• Iron Ridge – May Queen exploration to commence.
• Dark Horse negotiating with a potential partner for Pico Power Project, Argentina.
• AusTin about to start tin production at Granville, Tasmania.
• AusTin to commence high grade cobalt exploration, Kilkivan, south east Queensland.
• Armour oil and gas production planned from Kincora Project in the near term.
Photo (right) – Chalcopyrite in drill core from Hole 5
at SolGold’s Cascabel Project
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Disclaimer
Forward Looking Statement
Whilst based on information from sources considered reliable, DGR Global Limited, its directors, employees and consultants do not represent, warrant or guarantee, expressly or impliedly, that the information in this document and presentation is complete or accurate. To the maximum extent permitted by law, DGR Global Limited, disclaims any responsibility to inform any recipient of this document and presentation of any matter that subsequently comes to its notice, which may affect any of the information contained in this document and presentation.
JORC and Competent Person Statement
Information herein relating to Exploration Targets and Results is based on information compiled by Nicholas Mather B.Sc (Hons), who is a Member of The Australasian Institute of Mining and Metallurgy. Mr Mather is employed by DGR Global Limited, as Chief Executive Officer.
Mr Mather has more than five years experience relevant to the style of mineralisation and type of deposit being reported and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Minerals Resources and Ore Reserves’ (the JORC Code). This report is issued with the prior written consent of the Competent Person as to the form and context in which it appears.
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DGR Global Contacts
Nick Mather | CEO [email protected]
Priy Jayasuriya | Chief Financial Officer
Karl Schlobohm| Company Secretary
Pru Maclean| Business Development and Investor Relations
Twitter: DGRGlobal
LinkedIn: https://www.linkedin.com/company/dgr-global
ASX:DGR | www.dgrglobal.com.au
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