Presentation April 2009...Lane et. al., 2000, An example of 3D conductivity mapping using the...
Transcript of Presentation April 2009...Lane et. al., 2000, An example of 3D conductivity mapping using the...
PresentationApril 2009
Ken HarveyManaging Director
Nicholson River
This presentation has been prepared by the management of Superior Resources Limited (the Company) for the benefit of brokers, analysts and investors and not as specific advice to any particular party or persons. The information is based on publicly available information, internally developed data and other sources. Where an opinion is expressed in this presentation, it is based on the assumptions and limitations mentioned herein and is an expression of present opinion only. No warranties or representations can be made as to origin, validity, accuracy, completeness, currency or reliability of the information. The Company disclaims and excludes all liability (to the extent permitted by law) for losses, claims, damages, demands, costs and expenses of whatever nature arising in any way out of or in connection with the information, its accuracy, completeness or by reason of reliance by any person on any of it. Where the Company expresses or implies an expectation or belief as to the success of future exploration and the economic viability of future project evaluations, such expectation or belief is expressed in good faith and is believed to have a reasonable basis. However, such expected outcomes are subject to risks, uncertainties and other factors which could cause actual results to differ materially from expected future results. Such risks include, but are not limited to, exploration success, metal price volatility, changes to current mineral resource estimates or targets, changes to assumptions for capital and operating costs as well as political and operational risks and governmental regulation outcomes. The Company does not have any obligation to advise any person if it becomes aware of any inaccuracy in or omission from any forecast or to update such forecast.
Limitations
• Chairman Lawrie Litzow• Managing Director Ken Harvey• Non-Executive Director David Horton
• Incorporated February 2005• Floated on ASX November 2007• Copper, Lead-Zinc-Silver, Diamonds (Uranium, Phosphate)
• 77 Million Shares (9.5M Escrowed)• 9.6 Million Options (9.0M Escrowed)• 15 Exploration Permits (13 Granted)• ~$5.7M Cash & Liquid Assets (7.4c per share)• Last Trade 7.0c per share (~$5.4M Market Cap)
Company
Search for Large Deposits in Northwest Queensland(Mount Isa Style Copper & Lead-Zinc-Silver and Diamonds
Conceptual Approach using Modern Technology(Geophysics & Computer Modelling followed by Drilling)
The Best Two Prospects
Walford South Prospect350km north-north-west of Mount Isa
Elizabeth Diamond Prospect150km south of Mount Isa
Targets & Best Projects
Walford South Prospect
Mount Isa
Walford South Prospect
Walford Creek ProspectInferred Resources – 6.5 Mt @ 0.6% Cu, 1.6% Pb, 2.1% Zn, 25g/t Ag, 0.07% Co(Copper Strike – Quarterly Report – March 2006)
4km south of the ‘Mount Isa type’Walford Creek Prospect
(Copper Strike)
350km north-north-west of Mount Isa
Airborne Electromagnetics
Walford Creek Prospect
Walford South Prospect Tempest EM System
3D ViewInterpreted Conductivities
Lane et. al., 2000, An example of 3D conductivity mapping using the Tempest airborne electromagnetic system
Walford South Prospect
InterpretedConductivity100m Depth
-Tempest AEM
(Fugro)
Plan View
Not heldby SPQ
Walford South Prospect
InterpretedConductivity200m Depth
-Tempest AEM
(Fugro)
Plan View
Not heldby SPQ
Walford South Prospect
InterpretedConductivity300m Depth
-Tempest AEM
(Fugro)
Plan View
Not heldby SPQ
Walford South Prospect
InterpretedConductivity400m Depth
-Tempest AEM
(Fugro)
Plan View
Not heldby SPQ
Walford South Prospect
InterpretedConductivity500m Depth
-Tempest AEM
(Fugro)
Plan View
Not heldby SPQ
Walford South Prospect
CompiledBouguerGravity
-ESSOWMC
ComalcoGA
-ProposedDrill Hole
600m
Plan View
Not heldby SPQ
Walford South Prospect
Geology-
SectionLine
-ProposedDrill Hole
600m
Plan View
Not heldby SPQ
Walford South Prospect
Walford South Summary
The Walford South Prospect contains a large modelled conductivity anomaly and a large coincident gravity anomaly in an area where Mount Isa type mineralisation exists.
It is a high-priority target which will be drilled once access is possible after the
wet season.
Elizabeth Diamond Prospect
Mount Isa
Elizabeth Prospect
150km south of Mount Isa
A prominent circular feature with a coincident ‘carrot shaped’modelled density anomaly
Northwest Queensland and the Northern Territory are prospective
for diamonds
NT & QLD Diamonds
Source: NT and QLD Governmentdiamond databases Diamond distribution in NT and QLD
Merlin Diamond
Australia’s Biggest Diamond104.73 carats
Merlin, NT
This diamond is not the property ofSuperior Resources Limited
Diamonds
KIMBERLITEPIPE
150 km
Moho ~40 km
LITH
OSPH
ERE
ASTH
ENOS
PHER
E
MAN
TLE
CRUS
T
GRAP
HITE
STAB
LEDI
AMON
D ST
ABLE
Diamonds are the stable form of carbon under the very high pressures that exist below about 150km depth within the earth. Diamonds are transported to the earth’s surface by deep seated volcanic activity originating below the level where the diamonds are stable. The diamonds must be brought rapidly to the surface so that they don’t revert to graphite. Only two types of volcanics are known to bring diamonds to the surface in economic quantities – kimberlite and lamproite. These are unusual rocks which contain ‘indicator minerals’ some of which become distributed in stream gravels.A search for diamonds usually involves a search for kimberlite or lamproite using the indicator minerals and/or geophysics to locate the volcanic pipes or dykes. These pipes or dykes are then drilled to establish their diamond content. Only a small fraction of kimberlite and lamproitebodies contain economic quantities of diamond.
Diamond Model
Diamonds
Model of idealised kimberlitemagmatic system illustrating the relationship of crater, diatreme and hyperbyssal facies rocks (Modified after Mitchell 1986).
Note the ‘carrot shaped’ diatremelying beneath the volcanic crater.
This is the crater – diatreme (diamond pipe) model being used by Superior Resources during exploration for diamonds at the Elizabeth Diamond Prospect.
Diamond Pipe Model
~2km
Elizabeth Diamond Prospect
335,
000
mE
334,
000
mE
333,
000
mE
332,
000
mE
332,
000
mE
333,
000
mE
7,568,000 mN
334,
000
mE
335,
000
mE
7,569,000 mN
7,570,000 mN7,570,000 mN
7,569,000 mN
7,568,000 mN
N
500metres0
Contains material (c) GeoEye
ElizabethProspect
-Ikonos
Imagery-
CircularFeature
(ProbableCrater)
Plan ViewCrater Sediments
Air photograph of crater
Photo of crater centre
Elizabeth Diamond Prospect
ElizabethProspect
-BouguerGravity
-CircularGravity
Low-
PossibleDiamond
Pipe
Plan View
335,
000
mE
334,
000
mE
333,
000
mE
332,
000
mE
332,
000
mE
333,
000
mE
7,568,000 mN
334,
000
mE
335,
000
mE
7,569,000 mN
7,570,000 mN7,570,000 mN
7,569,000 mN
7,568,000 mN
N
500metres0
Bouguer Gravity
Contours at 0.25 milligals
Alternative Explanations:Meteorite Impact FeatureDeep Weathering Trough
Section7,569,200N
Sectional View
Elizabeth Diamond Prospect
ElizabethProspect
-Section
7,569,200N-
ModelledDensity
-‘Carrot Shaped’
Density Low-
PossibleDiamond
Pipe
3D ViewImage on
TopographyHeight X30
Elizabeth Diamond Prospect
Contains material © Geoeye
Elizabeth Diamond Prospect
ElizabethProspect
-Ikonos
Imagery-
GravityContours
-Second
DiamondTarget
Plan ViewContains material © Geoeye
The Elizabeth Diamond Prospect contains a ‘carrot shaped’ modelled density
anomaly lying beneath a prominent surface circular feature which is a probable crater
in an area which is prospective for diamonds. It is a high-priority target which
will be drilled in April/May 2009.
Elizabeth Diamond Prospect
1. Drilling of the highly-prospective Elizabeth Diamond Prospect (and adjacent Copper, Lead and Zinc prospect) commencing April/May 2009.
2. Drilling of the highly-prospective Walford South Prospect for Copper, Lead and Zinc later in 2009.
3. Continuing exploration of other areas to identify large targets.The focus on large high-grade targets is essential for success.
4. Budget of $1.0 to $1.5 million with the capability to scale up if warranted based on results.
5. Two Queensland Government (CDI) grants to support drilling.$50,000 for the Elizabeth Diamond Prospect.$150,000 for the Walford South Prospect.
2009 Exploration Program
1. A base metal prospect with major potential – ready for drilling. One of the best prospects in Queensland and probably Australia.
2. A diamond prospect containing a possible large diamond pipe -ready for drilling. A second diamond target if this is successful.
3. Other prospects which are progressively being evaluated.4. Currently trading at 7c per share which is essentially cash and
liquid assets value – no value for prospects. 5. Little downside at the current price and very considerable
upside to the price.6. Company well-managed and in excellent shape to deliver in
these difficult times.7. Competent explorers with a proven track record of discovery.8. Cash for another 3 years exploration at the current expenditure
rate.
Superior Resources Limited
JORC Statement
The information in this presentation that relates to explorationresults is based on information compiled by Mr Ken Harvey, a full-time employee of the Company, who is a Member of the Australasian Institute of Mining and Metallurgy and a Member of the Australian Institute of Geoscientists. Mr Harvey 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 in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Harvey consents to the inclusion in this presentation of the matters based on his information in the form and context in which it appears.