Salt River Resources LtdSalt River Resources LtdSouth AfricaSouth Africa’’s Newest Mineral Oasis:s Newest Mineral Oasis:The Salt River ZnThe Salt River Zn--CuCu--PbPb--AgAg--Au VMS Au VMS

DepositDeposit

Craig R. McClungCraig R. McClung

Current Exploration Projects in AfricaCurrent Exploration Projects in AfricaGSSA DPP CourseGSSA DPP Course

18 April 200818 April 2008

Acknowledgements

• Board of Directors• Thanusha Naidoo• PPM Group, University of Johannesburg

– Prof. Jens Gutzmer– Keith Osburn– Akani Mathebula

• Nic Norman

Disclaimer

• This presentation is directed at individuals having advanced scientific and geologic knowledge.

• No representation or warranty is given or implied by Salt River Resources Ltd, parent company Thabex Ltd, its’ directors, or their associates as to the accuracy or completeness of the information or opinions contained herein and no liability is accepted for any such information or opinions.

• The presentation may contain certain forward looking statements that are subject to certain risks and uncertainties, e.g. the company’s plans, goals and prospects. Actual results may differ materially.

• This presentation does not constitute an offer to purchase, sell, issue or subscribe for shares in Salt River Resources Ltd, Thabex Ltd or associated companies

Outline

• Location• Namaqua Metamorphic Province• Salt River Deposit• Styles of Mineralisation• Geologic Model• Comparison• Classification• Summary

Location

• Located in the metallogenically significant Namaqua Metamorphic Province

• Occupies a crescent- shaped body covering over 80 000 km2

• Hosts several economically- significant mineral districts and deposits

Modified after Hartnady et al. (1985), Thomas et al. (1992; 1993) and Hanson (2003).

Namaqua Metamorphic Province

• Western continuation of the Namaqua-Natal Metamorphic Belt

• Extends from Olifantshoek to Atlantic Seaboard and Bitterfontein to Luderitz, Namibia

• Characterized by poly-deformed and poly- metamorphosed volcano-sedimentary successions and intrusive igneous rocks

• Deformed and metamorphosed during the Namaquan Orogeny

• Metallogenically well endowed: – Volcanogenic Massive sulphides, Broken Hill-type, Magmatic Ni-

Cu (Hondekloof), Intrusive Cu (Okiep), Cu-Mo Porphyries (Haib), Fe-Oxide-hosted Cu ± Au & vein-hosted REE-Th-Cu-Fe (IOCG ?), base ± precious metal veins, alluvial & marine diamonds, varies industrial minerals, uraniferous granites, etc.

Namaqua Metamorphic Province

Based on structural, lithological, and geochronological differences, the NMP may be divided into four subprovinces (Kroner and Blignault, 1976):

– Richtersveld Subprovince

– Kheis Subprovince– Bushmanland

Subprovinces– Gariep Subprovince

Modified from Hartnady et al. (1985), Joubert (1986) and McClung (2006).

Bushmanland Subprovince

• Eastern juvenile bimodal volcanic arc and associated metasedimentary rocks (Areachap Terrain)

• Central and western metavolcano- sedimentary succession of metapsammo- pelitic schists and gneisses, quartzites, calc-silicate rocks and metabasic volcanic rocks intruded by syn- to post-collisional granitoids (Kakamas, Aggeneys and Garies Terrains)

Deformational Events

• D1 – Orange River Orogeny (1700-1900 Ma; Blignault et al., 1983)–– Solely restricted to the Richtersveld SubprovinceSolely restricted to the Richtersveld Subprovince–– FF 1 1 –– Tight, iTight, isoclinal folds with tapering hinge zones and axial planes parallel to bedding– Thrust faulting – northward directed– M1 – Regional to contact upper greenschist-facies

• D2-3 – Namaquan Orogeny (1020-1220 Ma; Robb et al., 1999; Clifford et al., 2004)–– DD 22 (1180(1180--1220 Ma; O1220 Ma; O’’okiepian Episode)okiepian Episode)

•• FF22 –– Isoclinal, symmetrical folds with rounded hinge zones that concIsoclinal, symmetrical folds with rounded hinge zones that concentrate sulphides orebodiesentrate sulphides orebodies•• Thrust faults Thrust faults –– southwesterly directed, crosssouthwesterly directed, cross--cut Fcut F22 and folded by Fand folded by F33 foldsfolds•• MM22 –– Regional to contact amphiboliteRegional to contact amphibolite-- to granuliteto granulite--faciesfacies•• Intrusion of the Little Namaqualand Suite and associated granitoIntrusion of the Little Namaqualand Suite and associated granitoidsids

–– DD 33 (1020(1020--1040 Ma ; Klondikian Episode)1040 Ma ; Klondikian Episode)•• FF33 -- Large-scale, open, asymmetrical folds responsible for preservation of metasediments responsible for preservation of metasediments •• MM33 -- RegionalRegional--contact upper amphibolitecontact upper amphibolite-- to granuliteto granulite--faciesfacies•• Intrusion of Spektakel Suite and associated granitoidsIntrusion of Spektakel Suite and associated granitoids

• D4 – Post-Namaquan Deformation–– Low angle extensional faultingLow angle extensional faulting–– FF 44 -- N to NWN to NW--trending monoclinestrending monoclines–– Late shear zones and strikeLate shear zones and strike--slip faults that crossslip faults that cross--cut Fcut F 44–– MM 44 –– RetrogradeRetrograde

In Good Company

Modified from Norman (2006).

Salt River Deposit

• Located 100km SW of Kakamas in the Northern Cape Province on the property Remainder of the farm Adjoining Geelvloer No. 197 (Kraandraai)

• Geologically located in the supracrustal rocks of the Garies Terrain (Joubert, 1986; McClung, 2006)

• Hosted by the Geelvloer Sequence, Kenhardt Subgroup of the Bushmanland Group (Paizes, 1975; Joubert, 1986)– Characterized by immature metasedimentary rocks (i.e. biotite schist/gneiss,

para-amphibolite/calc-silicate rocks, feldspathic quartzites, cordierite gneisses)

• Deposit located in the footwall of the Geelvloer (Shear Zone) Thrust• Age constraints on the mineralisation and host rocks suggest deposition

occurred around 1300 Ma (Reid et al., 1997; McClung, 2006)• Mineralisation comprises stratabound “horizon” of massive to

disseminated pyritic sulphides with elevated base metal contents– Historically interpreted as a metamorphosed volcanogenic massive

sulphides hosted by bimodal metavolcanic rocks

Location - Salt River Deposit

Prospecting Area

Major Gravel RoadSalt River Deposit

PutsbergPutsbergDepositDeposit

Salt RiverSalt RiverDepositDeposit

Looking EastLooking East

Looking WestLooking West

Lovedale 201

Quagga-Maag 200

Hartebeesvlei 199

Putsberg 203

Mineralised Showings

0 5 10km

Salt River Deposit

Gannapoort 202

Adjoining Geelvloer

197

Graafwater 198

Vaal-Kop 225

Prospecting AreaMajor Gravel RoadFarm Boundaries

Modified after Maclaren (1988).

Salt River Deposit

Mineralised Showing

Major Shear Zone

Salt River - Surface Trace

Axis of orebodyAxis of orebody

SubSub--outcropping exposureoutcropping exposure

Exploration History

• 1973 - USA-based Phelps Dodge Corporation identified an aeromagnetic anomaly that was followed up by geological mapping, geochemical surveys and widely spaced percussion and diamond drilling

• 1977 - Gencor and Union Corporation conducted more diamond drilling and geophysics

• 1981 - Gencor calculated a sub-economic Inferred Mineral Resource of 7.18 Mt @ 2.31% Zn, 0.86% Cu, 0.51% Pb, 24 g/t Ag & 0.64 g/t Au

• 1993 - Goldfields conducted further regional mapping and limited diamond drilling (3 diamond drill holes)

• 1995 - Pioneer Minerals (Pty) Ltd obtained the rights to the property and formed a joint venture with Thabex Ltd

• 1997 - JV ended and Thabex exercised its rights to acquire the mineral rights in Thaba Egoli Mining & Exploration Ltd (100% held by Thabex)

• 2005-2006 - Thaba Egoli drilled 26 closely spaced and two metallurgical diamond drill holes

• 2007 - Thaba Egoli’s name was changed to Salt River Resources Ltd and estimated a new Measured and Indicated Mineral Resource

Deposit Confirmation

2020°°

outcropoutcrop

2525°°Salt RiverSalt Riverdepositdeposit

Graafwater WestGraafwater West

Graafwater Graafwater CentralCentral

Graafwater EastGraafwater East

Drilling Program

Potential Mineralization

23.3 Mt @ 1.5% Zn, 0.7% Pb, 0.4% Cu, 21 g/t Ag & 1.0 g/t Au

Total Mineral Resource

Measured Resources9.97 Mt @ 1.8% Zn, 0.5% Cu, 0.6% Pb, 21 g/t Ag & 0.5 g/t Au

Indicated Resources14.13 Mt @ 1.8% Zn, 0.7%

Cu, 0.4% Pb, 19 g/t Ag & 0.7 g/t Au

Total Mineral Resource atSalt River

Project: 47.4 Mt at 1% Zn threshold

Salt River West Occurrences

Soutputs Noord Occurrence

Stratigraphy

Not to scale.

Styles of Mineralisation

• Base metal sulphides occur as four distinctly different styles of mineralisation– semi-massive to massive sulphide

• very fine- to fine-grained pyritic horizon– streaky sulphides

• disseminated to stringer sulphides in foliated and contorted coarse-grained, biotite/phlogopite-quartz ± amphibole rock

– disseminated sulphides• disseminated to stringers of sulphide in foliated fine- to

medium-grained cordierite-biotite/phlogopite gneiss– mineralised calc-silicate gneiss

• sulphide veins in silicified, altered and/or brecciated calc- silicate rock

Semi-Massive to Massive-type Sulphide

• Characterized by a very fine- to fine-grained, semi-massive to massive, durchbewegung-textured pyritic horizon

• Ore mineralogy consist of pyrite, sphalerite, chalcopyrite, galena ± barite, magnetite and molybdenite

• Stratiform and stratabound

• Aerially occurs throughout the deposit

Streaky-type Sulphides

• Characterized by disseminated to stringers of semi-massive sulphides in foliated and contorted, biotite/phlogopite- quartz ± amphibole interbedded with Mg-rich altered rocks

• Ore mineralogy consist of pyrite, chalcopyrite ± sphalerite, galena and magnetite

• Stratabound, but locally observed cross-cutting associated Mg-rich altered rocks

• Aerially restricted to the higher- grade (eastern) portion of the deposit

Disseminated-type Sulphides

• Characterized by disseminated to stringers of sulphides in a foliated cordierite- biotite/phlogopite gneiss

• Ore mineralogy consist of pyrite, chalcopyrite, sphalerite, galena and magnetite

• Stratabound, but locally observed cross-cutting & grading into host rocks

• Spatially restricted to the higher-grade (eastern) portion of the deposit

Mineralised Calc-silicate-type

Sulphide Horizons

• Three economic horizons dipping approximately 25-30º to the northeast– Upper Sulphide Zone

• semi-massive to massive-type with minor disseminated- and streaky-type sulphides

• 2.8m mean thickness– Middle Sulphide Zone

• disseminated-type with occasional “lenses” of streaky-type sulphides

• 2.3m mean thickness– Lower Sulphide Zone

• interbed streaky- and disseminated-type sulphides• 3.2m mean thickness

Cross-Section AA’

AA

2020°°2525°°

outcropoutcrop

AA’’

Section AA’ (dip 25 degrees)

Mineralisation Contours

~ 10 Mt @ 2.3% Zn, 1.2% Cu, 0.5% Pb, 23 g/t Ag and 0.8 g/t Au ov~ 10 Mt @ 2.3% Zn, 1.2% Cu, 0.5% Pb, 23 g/t Ag and 0.8 g/t Au over average 3.3 mer average 3.3 mor ~2.5 to 3% Cu equiv.or ~2.5 to 3% Cu equiv.

Metal Distribution

Pb (wt %)Pb (wt %)

Zn (wt %)Zn (wt %)

Cu (wt %)Cu (wt %)

Geologic Model

Not to scale.

Modified after Hutchinson et al (1971).

Pre-Namaquan Orogeny (~1300 Ma)

BG – Bushmanland Group; GS - Grünau Sequence;GVS – Geelvloer Sequence; RCB – Richtersveld Cratonic Block

HBV HBV –– Hartebeest Vlei ProspectHartebeest Vlei ProspectGWW GWW –– Graafwater West ProspectGraafwater West Prospect

GWC GWC –– Graafwater Central ProspectGraafwater Central ProspectGWE GWE –– Graafwater East ProspectGraafwater East Prospect

SR SR –– Salt River DepositSalt River DepositSP – Soutputs Prospects (Nokami Mining)

EEWW

Modified after McClung (2006).

Early Namaquan Orogeny (~1200 Ma)

BG – Bushmanland Group; GS - Grünau Sequence; KF – Koeris Fromation; RCB –Richtersveld Cratonic Block

NNSS

Modified after McClung (2006).

Comparison with Aggeneys & Prieska/Copperton

• Aggeneys-Gamsberg– Metapelitic schist– Tabular to cigar-shaped

body & no feeder zone– Pb, Zn, Cu, Ag, Ba ± Au– 1300-1350 Ma (Pb-Pb

Model Age; Reid et al., 1997)

– Intracontinental rift to back- arc basin

– Associated with basic sills

– Mag-py-marc-po-sph-gn- cpy-bar

– Metal zonation visible at district scale

• Prieska/Copperton– Metapelitic gneiss– Tabular with a visible

feeder zone– Zn, Cu, Pb, Ag, Au ± Mo– 1280-1290 Ma (U-Pb

zircon; Cornell et al., 1990; Bailie, in prep.)

– Back-arc basin

– Contemporaneous bimodal volcanic rocks

– Py-sph-cpy-po-gn-bar-tour- moly

– Metal zonation visible at deposit scale

Salt River DepositSalt River DepositMean World Mean World ““FelsicFelsic”” VMS DepositsVMS DepositsAreachapAreachap--Prieska/Copperton DepositsPrieska/Copperton Deposits

AggeneysAggeneys--Gamsberg DepositsGamsberg Deposits

Mean Canadian VMS: 7.3 Mt @ 4.12% Zn, 0.70% Cu, 1.00% Pb, 37 g/t Ag & 0.88 g/t Au (Galley et al., 2005)

World “Felsic” VMS deposits : 7.1 Mt @ 2.70% Zn, 0.62% Cu, 1.09% Pb, 39 g/t Ag & 0.59 g/t Au

(Franklin, 2005)

Comparison with other VMS Deposits

0.1

1.0

10

100

0.01 0.1 1.0 10 100 1000

Tonnage (Mt)

Cu+

Zn+P

b (%

)

Canadian VMS deposits

1 Mt10 Mt

0.1 Mt

0.01 Mt

SR HG

0.1

1.0

10

100

Zn+P

b (%

)

0.1 1.0 10 100 1000

Tonnage (Mt)

1 Mt10 Mt

0.1 Mt

IPB deposits

Bathurstdeposits

Mt Readdeposits

Kurokodeposits

SR HG

Modified after Galley et al. (2005) Modified after Goodfellow (2003)

Cu

ZnPbSEDEX deposits VMS deposits

Deposit Classification

MaficMafic--associatedassociated

FelsicFelsic--associatedassociated

Salt River DepositSalt River DepositSalt RiverSalt River--type Prospectstype ProspectsAreachapAreachap--Prieska/Copperton DepositsPrieska/Copperton Deposits

AggeneysAggeneys--Gamsberg DepositsGamsberg Deposits

Modified after Slack (1993) Modified after Franklin (1981)

Cu

ZnPb

Zn-CuZn-Pb-Cu

Pb-Zn

SEDEX deposits VMS deposits

Summary

• Salt River deposit displays numerous similarities in common with:– Kuroko-type deposits (Sawkins, 1976)– Zn-Pb-Cu group deposits (Franklin et al., 1981; Franklin, 1993)– Volcanic-Sediment-hosted Massive sulphides deposits

(Goodfellow and McCutheon, 2003)– Siliciclastic-felsic deposits (Franklin et al., 2005; Galley et al.,

2005)SEDEXMVT VHMS

(Cyprus)Irish

Aggeneys-Gamsberg

Salt River

Prieska

Looking Forward

• Delineation of the high-grade “shoot” or zone– Ground and/or downhole geophysical surveys– Infill drilling

• Localized detailed surface mapping• Continued revision of the stratigraphic column

and lithotypes– Mineralogical, petrographic, geochemical and

geochronologic analyses• Continued analyses of the sulphides horizons

– Mineralogical, petrographic, geochemical (whole rock and mineral) and isotope analyses

• Characterization and definition of alteration types and zones