Navigator Resources Limited Managing Director David Hatch presented at the Commonwealth Resources Investment Forum on May 22, 2012. The presentation summarized Navigator's two gold projects in Western Australia: Bronzewing and Leonora. At Bronzewing, mining operations are focused on expanding cutbacks at the Cockburn open pit, with forecasts of 78,000-96,000 ounces of gold production over 2012-2014. The Leonora project contains a 745,000 ounce gold resource across three areas that could support potential production of 50,000 ounces annually.
1. COMMONWEALTH RESOURCES
INVESTMENT FORUM
Investor Presentation
David Hatch – Managing Director, Navigator Resources
IRONMONGERS’ HALL, CITY OF LONDON TUESDAY, 22 MAY 2012
www.ObjectiveCapitalConferences.com
3. Introduction
DISCLAIMER
The information contained in this presentation is not financial product advice. The presentation is for information purposes and
is of a general and summary nature only. It does not constitute an offer. Navigator Resources Limited (Navigator) gives no
warranties in relation to the statements and information in this presentation. Investors should seek appropriate advice on their
own objectives, financial situation and needs.
Bronzewing
This presentation contains certain statements which may constitute “forward-looking statements”. Such statements are only
predictions and are subject to inherent risks and uncertainties which could cause actual values, performance or achievements to
differ materially from those expressed, implied or projected in any forward looking statements.
Navigator disclaims any intent or obligation to update publicly any forward-looking statements, whether as a result of new
information, future events or results or otherwise. Investors are cautioned that forward-looking statements are not guarantees
of future performance and investors are cautioned not to put undue reliance on forward-looking statements due to the inherent
uncertainty therein.
Leonora
This presentation does not constitute or form any part of any offer or invitation to sell or issue, or any solicitation of any offer to
purchase or subscribe for, any securities in the Company 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, any contract or commitment or investment decision relating to any securities in the
Company. Any decision regarding any proposed subscription for securities in the Company must be made solely on the basis of
information on the Company that is publicly available.
This presentation does not constitute an offer of securities for sale.
Exploration
COMPETENT PERSONS STATEMENT
Sections of information contained within this report that relate to Exploration Results, Mineral Resources or Ore Reserves at the
Bronzewing Gold Project, the Leonora Gold Project and Cummins Range Rare Earth Project are based on information reviewed by
Bernie Kirkpatrick who is a full-time employee of Navigator Resources Limited and a Member of the Australasian Institute of Mining
Conclusion
and Metallurgy. Bernie Kirkpatrick has sufficient experience which is relevant to the style of mineralisation and type of deposit under
consideration and to the activity which he has undertaken 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”. Bernie Kirkpatrick consents to the
inclusion in this report of the matters based on his information in the form and context in which it appears.
4. Introduction
CORPORATE OVERVIEW
ASX Code: NAV
Ordinary Shares 2,222,216,576
Bronzewing
Market Capitalisation ($0.008) A$17.8 million
12 month High-Low A$0.140-0.008
Debt Outstanding US$12 million
Hedging Nil
Leonora
Unlisted Options 62,869,578
ASX Code: NAVOB
Exploration
Listed Options 835,096,124
Exercise Price A$0.04
Expiry Date 31 July 2014
Conclusion
5. Introduction
BOARD & MANAGEMENT
Allan Trench
Non-Executive Chairman (since 2005)
Over 15 years geology/business
Bronzewing
management experience in the
Australian resources industry including
John Shipp
with CRU Group, WMC, Barrick, Non-Executive Director (since 2006)
Woodside and McKinsey & Company. Mining engineer with 40 years of
international experience. Former-
President Barrick Gold Australia-
David Hatch Africa operations and GM of KCGM
Leonora
Managing Director (since 2009) and Boddington.
A track record in the management,
optimisation and development of
predominantly gold mining assets in
Australia, Indonesia, PNG and West Guy Walker
Africa. Former MD Kingsrose Mining, Non-Executive Director (since 2012)
Exploration
Westonia Mines and Abosso Minerals. Over 20 years experience in
financial markets and funds
Ian Macpherson management in NZ, North America
Non-Executive Director (since 2003) and the UK. Former COO of
Chartered accountant with 30 years Talisman Global Asset Management
experience, specialising in corporate and current Company Secretary of
Au Mining.
Conclusion
advice, equity and debt raising and
compliance. Established Ord Partners
in 1990.
6. Introduction
BOARD & MANAGEMENT
David Hatch – Managing Director
Bronzewing
Gerry Kaczmarek Bernie Kirkpatrick
CFO/Company Secretary (since 2009) Exploration Manager (since 2008)
Accountant and economist with almost 42 years multi-commodity
30 years experience in the resources exploration and mining experience
and minerals processing industry with projects throughout
covering projects in Australia and Australasia including roles of Mine
overseas. Including 10 years as CFO Geologist, Consulting Geologist
Leonora
and Company Secretary of Troy and Australian Exploration
Resources. Manager.
Craig Bradshaw Michelle Simson
Exploration
Chief Operating Officer (since 2012) Manager Corporate Affairs (since
Mining Engineer with nearly 20 years 2007)
experience, predominantly with WA 9 years administration experience
gold companies in roles including in the WA mining industry in the
Mining Manager, General Manager and gold and uranium sectors, in both
COO. site and corporate roles.
Conclusion
Tim Blyth – General Manager – Bronzewing Operations
7. Introduction
TWO GOLD PROJECTS IN WA
BRONZEWING
Bronzewing
1,067,000oz Au resource*
+960km2 tenements
+3Moz historic production
Purchased September 2009; first gold poured
April 2010
Leonora
Mining operations focussed on Cockburn Open Pit
LEONORA
Exploration
745,000oz Au resource*
320km2 tenements
+280,000oz historic production
Trial mining program February-August 2010
Conclusion
Potential 50,000oz Au/yr production
* Refer Reserves & Resources table
8. Introduction
1. Cockburn Pit Cutbacks
Bronzewing
2. Physicals Performance
Leonora
3. Current Mine Plan
4. 2012/13 & 2013/14 Mine Plan
Exploration
Forecasts
Conclusion
9. Introduction
COCKBURN PIT CUTBACKS
Bronzewing
Leonora
Exploration
Eastern Cutback Interim Western Cutback
Cutback commenced February 2011 Cutback commenced June 2011
First ore mined June 2011 First ore mined September 2011
Conclusion
Majority of waste pre-strip is completed
Eastern and interim western cutback now
connected around southern end of pit
11. Introduction
CURRENT MINE PLAN
Bronzewing
Leonora
2+ years Mine Plan 200,000oz Exploration potential
Cockburn Pit 4.33Mt @ 1.6g/t Au* Recovered (Drill testing a series of
(If the current observed near mine surface
trend of conversion of anomalies based on gold
Exploration
Inferred material continues, nuggets and soil sampling
there will be additional ore scheduled for July)
tonnes and mine life)
Conclusion
* $1,350 pit design; Indicated only
12. Introduction
2012/13 MINE PLAN FORECAST
Q1 Q2
Total movement: 2.40M BCM Total movement: 1.49M BCM
Bronzewing
Ore mined: 613,000t Ore mined: 708,500t
Plant throughput: 512,500t Plant throughput: 497,000t
Average grade: 1.30g/t Average grade: 1.55g/t
Gold recovered: 18,000-22,000oz Gold recovered: 21,500-25,500oz
Leonora
Q3 Q4
Total movement: 1.49M BCM Total movement: 1.50M BCM
Exploration
Ore mined: 655,000t Ore mined: 727,500t
Plant throughput: 472,500t Plant throughput: 478,000t
Average grade: 1.46g/t Average grade: 1.51g/t
Gold recovered: 19,000-23,000oz Gold recovered: 20,000-24,000oz
Conclusion
Note: Budget costs and revenue estimates in progress
13. Introduction
2013/14 MINE PLAN FORECAST
Q1 Q2
Total movement: 1.50M BCM Total movement: 1.08M BCM
Bronzewing
Ore mined: 664,000t Ore mined: 962,000t
Plant throughput: 483,500t Plant throughput: 478,000t
Average grade: 1.34g/t Average grade: 2.18g/t
Gold recovered: 17,500-21,500oz Gold recovered: 30,500-34,500oz
Leonora
Q3 Q4
Plant throughput: 472,500t Plant throughput: 478,000t
Exploration
Average grade: 1.84g/t Average grade: 0.83g/t
Gold recovered: 25,000-29,000oz Gold recovered: 9,500-13,500oz
Note: Budget costs and revenue estimates in progress
Conclusion
14. Introduction
1. Project History
Bronzewing
2. Project Areas
Leonora
3. Trial Mining
4. Development Scenarios
Exploration
Conclusion
15. Introduction
PROJECT HISTORY
PFS completed:
12.2Mt @
LGP purchased from Sons 1.9g/t Au
First recorded of Gwalia Administrators (742,000oz)+; Development
Bronzewing
mining activity on 6 year life options under
the leases Resource doubles consideration
to 444,444oz*
Leonora
1996- 2005 2006 2009 2010 2011...
1899
1978 2004
2004
Exploration
Sons of Gwalia own
& operate Leonora
Gold Project (LGP)
Inferred Resource: Trial mining activity
3.54Mt @ 1.9g/t undertaken; 5 months,
(221,500oz) 114,000t, 7,673oz
Conclusion
Resource increases to
700,400oz#
* Indicated : 2.15Mt @ 2.7g/t for 189,000oz ; Inferred: 3.73Mt @ 2.1g/t for 255,000oz; # Measured: 3.65Mt @ 2.1g/t for 241,300oz; Indicated: 3.44Mt @ 2.1g/t for 232,300oz;
Inferred: 3.63Mt @ 1.9g/t for 227,000oz; + Indicated: 8.27Mt @ 2.0g/t for 539,000oz; Inferred: 3.91Mt @ 1.6g/t for 203,000oz
16. Introduction
THREE MAIN PROJECT AREAS: TOTAL 745,000oz RESOURCE
Bronzewing
Leonora
Cardinia Mertondale Raeside
Exploration
199,000oz 395,000oz 134,000oz
4.79Mt @ 1.3g/t 5.59Mt @ 2.2g/t 1.57Mt @ 2.6g/t
(Indicated: 2.35Mt @ 1.3g/t = 95,000oz (Indicated: 4.34Mt @ 2.2g/t = 311,000oz (Indicated: 1.47Mt @ 2.7g/t = 127,000oz
Inferred: 2.44Mt @ 1.3g/t = 104,000oz) Inferred: 1.25Mt @ 2.1g/t = 84,000oz) Inferred: 0.10Mt @ 2.1g/t = 7,000oz)
Bruno Pit Trial: Mert 2 Pit Trial: Resource review:
Conclusion
February – June 2010 March – May 2010 September 2009
* Additional 17,000oz Resource to total 745,000oz located at Gambier Lass prospect
17. Introduction
TRIAL MINING: SIGNIFICANT VALUE-ADD ACHIEVED
Mining Processing Results
Bronzewing
February – June 2010 April – August 2010 40% grade upgrade from
114,000t ore 5 parcels (T1-T5) Bruno Pit
Predominantly Bruno High recovery of 93% Significant ore body data
supergene ore generated
7,673oz gold poured
Free dig mining confirmed Mining costs and material
Leonora
handling confirmed
A$2.12 million net profit
generated
Exploration
Conclusion
NAV gold from T1 milling
18. Introduction
SEVERAL DEVELOPMENT SCENARIOS
Bronzewing
Leonora
2009 PFS Scenario 2011 Post-Trial Scenario Financing Options
1Mtpa CIL processing facility Low capital (<$30 million) Debt
Central Merton’s Reward 0.5Mtpa processing facility Hybrid Debt
location OR Cardinia only; shallow low strip JV
Exploration
6 year mine life ratio mining
Equity
Anticipated pit backfill of
53,000oz pa (1.8g/t) Asset Sale
tailings and waste rock
~$45million capital
4-6 year mine life; 30,000-
40,000oz pa
Conclusion
Estimated unit cash cost of
$900-$1,000/oz
19. Introduction
CARDINIA MULTIPLE PIT DEVELOPMENT
Bronzewing
Trial Mined
Bruno Pit
Leonora
Exploration
Conclusion
Cardinia Pit Designs based on A$1,300/oz
23. Introduction
BRONZEWING
Total land holding: ~960km2
Total annual expenditure
commitment: $2.74 million
Bronzewing
JV arrangement with Mark
Creasy (70% NAV; 30%
Creasy)
JV arrangement with Audax
Leonora
Minerals & Hot Holdings (NAV
farmin to 50% on $1 million
expenditure over 4 years;
additional 19% on $1 million
Exploration
over further 2 years)
Conclusion
24. Introduction
BRONZEWING – COCKBURN
Bronzewing
Leonora
Exploration
Conclusion
Potential for underground mining following completion of open pit
25. Introduction
BRONZEWING – DRAGON-VENUS
Bronzewing
Leonora
Exploration
Conclusion
33km south of Bronzewing plant
Best intersections include 13m @ 5.2g/t from 126m and 10m @ 4.7g/t from 224m
26. Introduction
BRONZEWING – BOWER-HARRIER
Greenfields prospect 3-5km SE of plant; close
proximity to mill and other infrastructure
Bronzewing
NAV has farmed into ground with only sparse
previous drilling
BLEG soil anomalies + numerous nuggets over
a strike length of 6km; maximum soil sample
value of 225ppb Au
Leonora
Favourable geology with main host rock a
pillowed basalt; magnetic structures evident;
shearing visible in outcrop
Heritage survey completed April 2012;
Exploration
prospect is ready for drill testing with a
9,000m aircore program planned for July
2012
First pass drill program costing <$0.5 million
Conclusion
will determine whether any likelihood of a
significant new discovery
27. Introduction
LEONORA
Total land holding: ~320km2
Tenement package focussed on well
Bronzewing
mineralised Mertondale Shear and
sub-parallel Kurrajong trend
Highly prospective land holding
warrants exploration spend to
increase open pit resource base from
Leonora
745,000oz to +1Moz
Total annual expenditure
commitment: $1.75 million
Exploration
Conclusion
28. Introduction
LEONORA – MERTON’S REWARD
Bronzewing
Leonora
Exploration
Original gold discovery on Mertondale Shear
Current Resource of 1.08Mt @ 2.6g/t for 91,000oz*
Conclusion
Potential for northeast plunging, high grade underground lodes
Historical underground production (1899-1942) of 89,000t @ 21.0g/t = 60,524oz
* within a $2,000/oz pit shell, 0.7g/t Au cutoff; Indicated: 1.01Mt @ 2.7g/t for 87,000oz ; Inferred: 0.07Mt @ 1.7g/t for 4,000oz
29. Introduction
LEONORA – MERTONDALE 5
Bronzewing
Leonora
Exploration
10km north of Mertondale
Current Resource of 0.48Mt @ 3.0g/t for 46,000oz*
Potential for flat, south plunging, higher grade shoot
Conclusion
Historical production of 0.39Mt @ 2.6g/t for 32,000oz
* within a $2,000/oz pit shell, 0.7g/t Au cutoff; Indicated: 0.32t @ 3.2g/t for 33,000oz ; Inferred: 0.16Mt @ 2.7g/t for 13,000oz
30. Introduction
LEONORA – HOBBY
Bronzewing
Leonora
Exploration
Mineralisation from surface, located 6.5km NNE of Cardinia
Conclusion
Best intersections include 12m @ 10.7g/t from 6m and 9m @ 3.88g/t from 31m
Mineralisation open down dip and along strike
31. Introduction
EAST KIMBERLEY
Cummins Range Rare Earth
Project: JV with Kimberley Rare
Bronzewing
Earths (NAV 75%; KRE 25%) (KRE
to farmin to 55% on $10 million
expenditure over 4 years;
additional 25% on BFS delivery)
Laura River Base Metals Project:
Leonora
JV with Magma Metals (NAV 30%
free-carried; Magma have earnt
in 70%)
Exploration
Conclusion
32. Introduction
CONCLUSIONS
As expected, first two years of Bronzewing operation have been
challenging
Bronzewing
Supplementary funding has been required
NAV is positioned to generate significant cashflow in the next 2-3 years
Seeking to extend Bronzewing mine life with higher quality ounces
Leonora
NAV is planning to drill test the near mine Bower and Harrier prospects in
July
Exploration
NAV is keen to add value to the latent Leonora project by:
further exploration spend; or
facilitating development options with third parties
Conclusion
