May 2006 Moving from Exploration to Resource Definition 2006 drilling to establish resource status - PowerPoint PPT Presentation

1 / 26
About This Presentation
Title:

May 2006 Moving from Exploration to Resource Definition 2006 drilling to establish resource status

Description:

March, Oryx Uranium project gains momentum with positive mineralogy assessment ... Uranium - Oryx. Potentially high grade mineralization. 6.4% Uranium in first ... – PowerPoint PPT presentation

Number of Views:50
Avg rating:3.0/5.0
Slides: 27
Provided by: MERR8
Category:

less

Transcript and Presenter's Notes

Title: May 2006 Moving from Exploration to Resource Definition 2006 drilling to establish resource status


1
May 2006Moving from Exploration to Resource
Definition2006 drilling to establish resource
status
1
2
Disclaimer
  • The information contained in this presentation is
    subject to updating, completion, revision,
    further verification and amendment without
    notice. This presentation does not constitute, or
    form part of, any offer or invitation to sell or
    issue, or any solicitation of any offer to
    purchase or subscribe for, any shares in Zambezi
    Resources Limited (ZRL), nor shall it (or any
    part of it) or the fact of its distribution, form
    the basis of, or be relied on in connection with,
    or act as an inducement to enter into any
    contract or commitment therefore.
  • No representation or warranty, express or
    implied, is made or given by or on behalf of ZRL,
    any of ZRLs directors, or any other person as to
    the accuracy or completeness or fairness of the
    information or opinions contained in this
    presentation and no responsibility or liability
    is accepted by any of them for such information
    or opinions or for any errors, omissions,
    misstatements, negligent or otherwise, or for any
    communication written or otherwise, contained or
    referred to in this presentation.
  • Accordingly, neither ZRL nor any of the ZRL
    directors, officers, employees, advisers,
    associated persons or subsidiary undertakings
    shall be liable for any direct, indirect or
    consequential loss or damage suffered by any
    person as a result of relying upon the statement
    or as a result of any admission in, or any
    document supplied with, this presentation or by
    any future communications in connection with such
    documents and any such liabilities are expressly
    disclaimed

Slide 2
3
Corporate Financial Summary
  • Market Cap - 14 - 16 million
  • Zambezi Resources Limited LSE (AIM) ZRL ticker
  • 94.5 million shares on issue
  • 4.5 million executive staff options on
    Issue
  • 1.1 warrants
  • 101.1 million shares fully diluted
  • Share Holders
  • Top 10 Shareholders own 70
  • 500 registered shareholders
  • Major shareholders includeRAB Capital,
    Fidelity, Mineral Securities, JP Morgan,
    Jutland Nominees, MG, Morley Funds
    Management, Credit Suisse, Colonial First
    State, Management
  • Note - London Institutional Investors, -
    Seed Investors

4
Zambia Combination of Political and Geological
Risk
  • Infrastructure
  • Industrialised Copperbelt
  • Low Cost Hydro-electric Power
  • Mining Workforce
  • Two Universities with Mining Degree/ Mining
    Educated Local workforce
  • Revamped Main Roads
  • Political Risk
  • Non Tribal
  • Stable Democracy since 1990
  • New Mines Act 1995
  • No history of civil war
  • Strong non government institutions

5
Zambezi History and Development
  • 1997 Founding Director established presence in
    Zambia
  • 2003 February, Mwembeshi Registered in Zambia
  • 2004
  • February, Zambezi established and seed capital
    raised
  • July, Zambezi completes 2.5 million IPO on
    Londons AIM
  • August, Exploration commences in Zambia
  • 2005
  • February, exploration results from brief field
    season confirm copper/gold mineralization and
    gold endowment on properties
  • April, Secondary placement to raise 5 million
  • July, Exploration team increased four fold
  • November, Nickel IPO spin out in AIM completed
  • December, Uranium anomaly identified
  • 2006
  • February, Chakwenga area becomes apparent as
    potential major gold camp reinforced by
    positive results at Moiya and Kangaluwi
  • March, Oryx Uranium project gains momentum with
    positive mineralogy assessment
  • April, Cheowa Copper Project gains momentum with
    positive VTEM results

6
2006- Establishing JORC Resources
  • 18 months solid exploration work in Zambia
  • 30 staff/12 Geologists/2 drilling contactors/
  • four drill crews mobilised for field season
  • close government relations
  • Progress hampered by drill rig availability
  • Mineral and Energy Prospecting Licences covering
    17,300 km2 in Zambia
  • Assets
  • 49 Interest in Zambezi Nickel (Valued at 2.3
    million)
  • 2 million Cash on hand at March 2006
  • Establishing JV partnerships
  • Core Zambian Projects identified prioritised
  • Gold Drilling out Chakwenga, a major new gold
    province
  • Nickel Drilling Mitaba River a very large
    disseminated Nickel Sulphide Target
  • Copper Major breakthrough with VTEM drilling
    testing multiple EM anomalies at Cheowa
  • Uranium Fast Track Development Plan being
    executed

7
Chakwenga Priority Project
8
Chakwenga
Chakwenga A new gold camp beckons
  • Best Trench Results

9
Chakwenga - Regional Opportunities
10
Kangaluwi Moiya
The first two regional targets are stacking up!
11
Chakwenga Regional
Helimag a quantum leap in knowledge!
12
Gold - Chakwenga
  • Project Characteristics
  • Historical Mine (1940s)
  • 900m geochem anomaly with multiple trenches
    completed in 2004 2005
  • Wider lower grade selvedge adjacent to high grade
    veins,
  • 6km strike length at Chakwenga Main
  • Two major neighbouring projects multiple
    regional targets
  • Development Schedule
  • April-completed environmental base line study
  • May - commencement of drilling with tracked rig
    at Chakwenga
  • July - target Drilling at Moiya and Kangaluwi
  • Planned Multiple Rig drilling of Chakwenga from
    August onwards
  • Target to establish significant JORC compliant
    resource prior to feasibility and possible
    development

13
Copper Project - Cheowa Neningombe
14
Copper - Cheowa
three bulls eye drill targets from VTEM data!
15
Copper - Cheowa
16
Copper - Cheowa
VTEM very effective
  • Project Characteristics
  • Anglo Discovery in 1960s
  • Anglo drilling confirmed copper sulphide and gold
    intersections from IP anomalies
  • 15km plus gold and copper geochem anomaly,
  • VTEM successful in identifying massive sulphide
    conductors
  • Development Schedule
  • Fly VTEM over additional 12km of geochem strike
    length in May
  • Commence test drilling of three VTEM targets in
    May
  • June, VTEM interpretation and assaying of drill
    results
  • July onwards, commence drilling of multiple
    targets if successful

April 2006 3D interpretation of VTEM with
historical Anglo data has prompted Zambezi to
fast track extension of VTEM coverage over 16km
of strike length
17
Nickel ZRL Retains a 49 Interest in ZNI
18
Nickel - Mitaba River
19
Nickel
Pursuing Significant Nickel Production
  • Project Characteristics
  • Anglo Discovery in 1960s
  • Anglo drilled a few drill holes
  • Successive flow Komatiite style deposit similar
    to Mt Keith
  • Project footprint 2 - 3 times size of Mt Keith
    pit
  • Development Schedule
  • Drilling of 4,300m programme has commenced to
    test two main projects
  • June July, Mineralogy Investigation Met
    Testwork
  • August, Inferred JORC resource compilation
  • October onwards multiple rig drill out campaign

The key issues in proving up Mitaba as a
significant global nickel resource will be
proving up mineralogy, namely nickel tenor,
nickel to sulphur ratio and metallurgical
characteristics
20
Uranium Oryx
21
Uranium - Oryx
Additional Value from Existing Assets
  • Potentially high grade mineralization
  • 6.4 Uranium in first sample Davidite
  • Current Deposit Interpretation
  • Intrusive type
  • Multiple sheeted veins
  • Large Anomaly
  • 1.5km by 6 km
  • Multiple Other, smaller anomalies exist nearby

22
Oryx - 2006
Uranium A fast track development schedule
  • Project Characteristics
  • extensive surface expression, amenable to
    multiple rig drill out campaign
  • Historically Davidite mineralisation has been
    treated by low cost, physical beneficiation with
    subsequent upgrade prior to acid leaching
  • Upgraded concentrate is inert and suitable for
    bulk transport
  • Development Schedule
  • April ground exploration commenced
  • May - trenching, structural interpretation and
    geological validation
  • June July Assay confirmation, drill rig
    mobilisation
  • Fast Track Program if Successful
  • Aug Sept Bench Scale upgrade testwork,
    assessment of drilling results to confirm mineral
    endowment, leach testing
  • Oct Dec Bulk testwork to validate upgrade
    testwork and generation of bulk samples for
    offtake testwork
  • 2007 Jan Mar, Prefeasibility Study Completed

April 2006 - Initial structural interpretation
of helimag data and spectrometer results has
confirmed the geological model
23
Zambezi - A Value Investment Opportunity
  • Zambia
  • A great place to be
  • A combination of political risk and mineral
    endowment
  • A Huge Mineral Endowment
  • Targeting IOCG Copper Gold
  • Also found Nickel Uranium
  • Execution Capability
  • 12 Geologists on Staff
  • A modern office in Lusaka
  • Established network of local suppliers
  • Zambezi (AIMZRL)
  • Commodities Cu, Au, Ni, U
  • Market Cap. 15 mil.
  • Comparative Companies
  • Albidon (AIMALD) Nickel
  • Market Cap. 35 million
  • African Eagle (AIMAFL) Cu Au
  • Market Cap. 22 million
  • Teal (TSXTL) Cu Au
  • Market Cap. 142 million
  • Other Zambian Companies
  • First Quantum (TSXFM)(Cu)
  • Market Cap. 1,543 million
  • Equinox (TSXEQN)(Cu, U)
  • Market Cap. 310 million
  • Note All values are at 18 May 2006. For TSX
    listed companies, the exchange rate assumed is 2
    C

24
Summary of Priority Projects
  • Gold
  • First Mover Advantage
  • Chakwenga is proving to be a major new gold
    province.
  • Targeting a 1 million oz JORC resource, commence
    drilling in May 2006,
  • Major Regional Prospectivity with additional
    drill targets for testing later in 2006
  • Copper/Gold
  • Modern Exploration Effective
  • 2005 VTEM effective in defining multiple massive
    conductors co-incident with surface copper and
    gold geochem anomalies
  • copper and gold in 15km long shear
  • Drilling commencing in May
  • Nickel
  • Large Disseminated Ni Sulphide
  • Zambezi retains strategic 49 stake in Zambezi
    Nickel (AIM ZNI)
  • 2005 exploration confirmed geological model
  • 4000m diamond drill campaign commences April 06
  • Uranium
  • Discovery, Nov 2005
  • The nature of mineralisation (Davidite), extent
    of the anomaly (2km X 6km) and grade (6 in rock
    chip) favours a fast track development schedule
  • Fast Track program commenced in April 06 at start
    of field season

25
Appendix - Map of projects
26
Exploration The Big Opportunity
All Information is from UBS Research, Issue 12,
January 2006
Write a Comment
User Comments (0)
About PowerShow.com