2. PDAC 2011 2
MIL RESOURCES LTD
NOTICE AND DISCLAIMER
CAUTIONARY STATEMENT
This document has been prepared by MIL Resources Ltd (the Company). This document contains background information about the Company
and its projects current at the date of this document. It does not purport to be all inclusive or complete. Recipients should conduct their own
investigations and perform their own analysis in order to satisfy themselves as to the accuracy and completeness of the information, statements
and opinions contained in this document.
The document is for information purposes only. Neither the document nor the information contained in it constitutes an offer, invitation,
solicitation or recommendation in relation to the purchase or sale of shares in any jurisdiction. This document may not be distributed in any
jurisdiction except in accordance with the legal requirements applicable in such jurisdiction. Recipients should inform themselves of the
restrictions that apply in their own jurisdiction.
To the fullest extent permitted by law, MIL Resources Ltd, its officers, employees, agents and advisers do not make any representation or
warranty, expressed or implied, as to the currency, accuracy, reliability or completeness of any information, statements, opinions, estimates,
forecasts or other representations contained in this document. No responsibility for any errors in or omissions from this document is accepted.
This document contains "forward-looking statements". Such forward-looking statements include, without limitation, (i) estimates of future
earnings, and the sensitivity of earnings to metals prices; (ii) estimates of future production/sales (iii) estimates of future cash costs; (iv)
estimates of future cash flows, and the sensitivity of cash flows; (v) statements regarding future debt arrangements; (vi) estimates of future
capital expenditures; (vii) estimates of reserves and (viii) the timing or results of permitting, construction and production activities.
Where MIL Resources Ltd expresses or implies an expectation or belief as to future events or results, such expectation or belief is expressed in
good faith and believed to have a reasonable basis.
However, forward-looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially
from future results expressed, projected or implied by such forward-looking statements. Such risks include, but are not limited to, metals price
volatility, currency fluctuations, increased production costs, variances in ore grade or recovery rates from those assumed, as well as political
and operational risks in the countries in which we operate and governmental regulation and judicial outcomes.
The Company does not undertake any obligation to release publicly any revisions to any "forward-looking statement" to reflect events or
circumstances after the date of this document, or to reflect the occurrence of unanticipated events.
To the extent that there is information set out in this document any potential quantity and grade is conceptual in nature, there has been
insufficient exploration to define a mineral resource under the JORC Code and it is uncertain if further exploration will result in the determination
of a mineral resource under the JORC Code.
The information contained in this document that relates to Exploration Results or Mineral Resources or Ore Reserves is based on information
compiled by John Haggman who is a Member of the Australian Institute of Geoscientists. Mr. Haggman is a director of MIL Resources Ltd. Mr.
Haggman has sufficient experience which is relevant to the style of mineral deposits 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 Mineral Resources and
Ore Reserves”. Mr Haggman consents to the inclusion in this presentation of the matters based on his information in the form and context in
which it appears.
3. PDAC 2011 3
Papua New Guinea
Major gold/copper production …
• OK Tedi, Porgera, Lihr, Hidden Valley, Simberi
and projects
• Frieda, Yandera, Wafi-Gulpu, Woodlark
Major gold companies exploring in PNG …
• Barrick, Newcrest, Harmony, Newmont, Highlands Pacific
as well as juniors
• Coppermoly, Frontier, Gold Anomaly, Goldminex, Papuan Precious Metals and others
Large investments are being made in PNG
• LNG Project, Ramu, Hidden Valley
4. PDAC 2011 4
MIL Resources (ASX:MGK)
Large Papua New Guinea land position
• 14 exploration licences and exploration licence applications
• More than 10,000km2
Track record of grant and renewal
• Amazon Bay granted in December 2005 and renewed twice
• Support from warden hearings for ELA and EL renewals in late 2010
Achieving on the ground results
• Amazon Bay – airborne geophysics, drilling and metallurgical testing
• Poi – airborne geophysics, extensive sampling trenching
• Golden Peak – sampling and trenching
• Domara – airborne geophysics
5. PDAC 2011 5
Agenda
• Excellent land position
• Building a strong team
• Adding value
• Fund raising
6. PDAC 2011 6
Agenda
• Excellent land position
• Building a strong team
• Adding value
• Fund raising
7. PDAC 2011 7
South East Papua Gold
Poi Golden Peak
• 11km x 1.5km geophysical anomaly
• 800m X 2000m alteration zone
• Gold geochemistry over several km2
• Coincident gold geochemistry over 9
prospects Domara
• Characteristics of large porphyry gold • Radiometric anomalies identified
copper systems found in island arc
settings such as PNG
• Adjoining Papuan Precious Metals and
Goldminex tenements
8. PDAC 2011 8
Poi
• EL 1628 and ELA 1643, 100% MIL
• Porphyry gold-copper
• Radiometric anomaly 11km x 1.5km open
along strike
• Coincident with cross-cutting radiometric
structures and anomalous geochemistry
• Prominent NE – SW transfer structure
• 9 gold zones defined by stream
geochemistry over 27 km2
• Aladdins prospect trenching
20m @ 7.17g/t Au, 0.50%Cu and
9.60g/t Ag
• Visible gold in streams
9. PDAC 2011 9
Golden Peak
• Recent assays: • Gold geochemistry over several km2
20m of 7.2 g/t Au • EL 1625, 100% MIL
Including 6m of 22.4 g/t Au
• 40km east of Port Moresby
10. PDAC 2011 10
Domara
• EL 1637, 100% MIL • South of Papuan Precious Metals EL1424
• Radiometric anomalies defined • 3 Cu/Au porphyry structures
• 2Ni/PGM targets
• … and Goldminex EL1576
• elevated gold in drainage
geochemistry
Domara Geophysical Targets
(after Steve Collins – Arctan Geophysical Services)
11. PDAC 2011 11
New Britain Gold
• EL 1640 and 1642, 100% MIL • Esso Minerals (1982-3) & CRA (1985)
• Copper-molybdenum-gold systems identified high-grade gold:
• EL’s located close to : • Dagi South (18.4g/t Au)
• Barrick / Coppermoly $20M JV area • Ania South (10.7g/t Au)
• Ok Tedi / Frontier’s $36 million JV areas • Gasmata (10.8g/t Au)
• Yonathan River (50.1g/t Au)
12. PDAC 2011 12
New Ireland Gold
Legusulum Palabong
• ELA 1638, 100% MIL • ELA 1645, 100% MIL
• Legusulum Cu/Au/Mo deposit • Porphyry copper-gold targets
• 70m thick leached cap over 1km2
• Rockchips to 6.1g/t Au • Weitin River caldera with copper stream
sediment anomaly
• Explored by Swiss Aluminium during
early 1970’s Mussau and Tanga Islands
• 13 DDH’s total 1500m
• Ave depth 115m, Ave grade 0.25% Cu • ELA 1818 and 1639, 100% MIL
• Located on the Simberi – Lihir – Tanga -
Feni Island chain (hosts over 49 mOz of
gold resources)
• 10km x 5km zone of epithermal quartz
float - rock chips returning 28 g/t Au at
Mussau
• Epithermal gold with assays to 2.0g/t
Au at Tanga
13. PDAC 2011 13
Amazon Bay
• EL 1396, 1623 and 1681
• 42% MIL Resources, earning to 51%
• Strandlines along 70km of coast
• Exploration target of 3 – 4 billion tonnes of vanadium rich magnetite ironsands
potentially containing +200Mt of concentrate
• Preliminary metallurgy produced concentrate grading 1.02% V205, 52.3% Fe, 17.3%
Ti02, 3.5% Si02, 1.8% Al203
• Vanadium content of 1.02% V205 compares favourably to other projects, for example;
Balla Balla Atlas Iron Limited 0.63% V2O5
Windamurra Atlantic Limited 0.47% V2O5
Ballambie Reed Resources 0.82% V2O5
14. PDAC 2011 14
Agenda
• Excellent land position
• Building a strong team
• Adding value
• Fund raising
15. PDAC 2011 15
Building a strong team
• Two field geologists already engaged to supervise PNG work programs
Recruit one additional field geologist
• Exploration manager to manage overall exploration program
Recruit an experienced exploration manager in 1H 2011
• Manager in place to manage community and PNG government relations
• Utilizing external experts to supplement internal knowledge
• Full time CEO appointed in November 2010
• Experienced and knowledgeable Board
16. PDAC 2011 16
Agenda
• Excellent land position
• Building a strong team
• Adding value
• Fund raising
17. PDAC 2011 17
Golden Peak
• Preferred first drill targets
• Simple logistics by PNG standards (40km from Port Moresby)
• Well defined targets
• 2010 trenching and sampling provided location control for historical results
• 2011 Program:
• Continue trenching and sampling to recreate Elders high grade results - Completed
20m of 7.2 g/t Au
Including 6m of 22.4 g/t Au
• Extend trenching and sampling to determine the extent of high grade mineralization and define
drill targets
• If successful:
Drill up to 2000m into targets
18. PDAC 2011 18
Poi
• 2 targets defined in 2010
• Aladdins
20m @ 7.17 g/t Au, 0.50% Cu and 9.60 g/t Ag
including 2m @ 41.5 g/t Au and 2m @ 31.6 /t Ag
• Wallaby Ridge
• Awaiting further trenching and sampling results and interpretation
• 2011 Program:
• Technical expert review to refine model
• Continue trenching and sampling to define drill targets
• If successful:
Drill up to 2000m into 3 targets – 6000m in total
• Extend geochemical sampling to test northern and southern extension
19. PDAC 2011 19
Other PNG Gold/Copper
Legusulum
• Conduct and interpret geophysical surveys to define drill target
• If successful, drill up to 5000m into target
New Britain
• Commence geochemical sampling, follow up with geophysical surveys
Palabong
• Commence geochemical sampling, follow up with geophysical surveys
Massau Island
• Conduct and interpret geophysical surveys, follow up with geochemical sampling
20. PDAC 2011 20
Amazon Bay
• Improve understanding of ore body
• Drill 3 reconnaissance lines to define inland strandlines
• Investigate options to enhance preferred flow sheet
• Actively seeking partners for development
• Vanadium rich titanomagnetite concentrate into China
21. PDAC 2011 21
Work Program – Timing
1H 2011 2H 2011 2012
Golden Peak Geochem Sampling Drill up to 2000m
Poi Geochem Sampling Drill up to 6000m
Legusulum Geophysics Drill up to 5000m
EL Grant?
New Britain Geochem Sampling Geophysics
EL Grant?
Palabong Geochem Sampling Geophysics
EL Grant?
Massau Is. Geophysics Geochem Sampling
EL Grant?
Amazon Bay Drill 3 Lines
22. PDAC 2011 22
Work Program – Cost
• 2011 expenditure of $3m – $4m
Define and drill Golden Peak targets
Define and commence drilling 3 Poi targets
Acquire geophysics, define Legusulum drill target, commence drilling
Exploration work on New Britain, Palabong and Massau Island
Drill 3 reconnaissance lines at Amazon Bay
Build and maintain capability
23. PDAC 2011 23
Agenda
• Excellent land position
• Building a strong team
• Adding value
• Fund raising
24. PDAC 2011 24
March 2011 Fund Raising
• Raise ~$4.25m net
• Placement
35m shares at 2c
Sophisticated, professional and institutional investors
• Fully underwritten 3 for 5 entitlement offer
Approximately 190m shares at 2c
Australian and New Zealand shareholders
25. PDAC 2011 25
Ongoing news flow in 2011
• Golden Peak
Geochem
Drilling
• Poi
Expert review
Geochem
Drilling
• Legusulum
Geophysics
Drilling
• New Britain/Palabong/Massau Island
Initial Geochem/Geophysics
26. PDAC 2011 26
Share price and capital structure
Capital Structure (as at 25 February 2011)
• Market Capitalisation $11.9m as at 25 February 2011
• 339,879,819 shares
• 60,329,111 listed 31 May 2012 options
• 33,333,333 unlisted redeemable preference shares
• 26,900,183 unlisted options (various exercise dates and prices)
