Professional Documents
Culture Documents
Investor Presentation
7 February 2011
Contents Summary The Team The Projects Funding Performance Ownership Value Proposition
Exploration Active exploration for nickel, gold and manganese in Western Australia Large land position in proven mineralised belts Assessing new projects in Australia & overseas Corporate Well funded with approx. A$30M in liquid assets Market cap A$33M @ 25cps Assessing new seed capital & investment opportunities Summary Runaway upside potential, limited downside risk
Mission: To provide shareholders with the returns we all expect from this type of investment Goal: To discover a world-class minerals deposit Strategy: Engage specialists in their respective fields and provide them with the resources they need to achieve the goal Process: Disciplined approach to integrating geochemistry, geology and geophysics
Does Hannans Reward have access to the skilled specialists necessary to successfully implement the strategy? Yes
Dr Nigel Brand Geochemist Consultant ex-Xstrata Nickel & Jubilee Mines Don Huntly Geologist Exploration Manager - exXstrata Nickel & Jubilee Mines Ben Jones Geophysicist Consultant exXstrata Nickel & Jubilee Mines
Does Hannans Reward have major land positions in highly mineralised belts? YES
Three major belt positions, proximal to major mines, neighbours include mid large cap mining companies, well located to infrastructure, easy logistics
Is the Team at Hannans Reward working smart and hard to achieve the goal? YES
Project Prospect Forrestania Skeleton Rocks (1,153 sq Prospect kms) (Ni + Au)
Positive Results Large magnetic high features targeted for iron exploration, Cazaly Resources target model of >30Mt resource.
Geological Drilling program proposal. interpretation during 1st qtr 2011. Surface geochemistry during 1st qtr 2011. Clearances for RC drilling during Jan/Feb 2011 RC drilling to commence Feb 2011. Infill auger sampling to commence Jan 2010. Surface TEM to commence Mar 2011. RC drilling to commence Feb 2011. RAB/Aircore drilling to commence 1st qtr 2011.
Stormbreake Field checking of r Prospect auger anomalies (Ni) completed. Flora surveys completed. Lucy Rocks Prospect (Ni) Flora surveys completed.
Surface TEM. RC percussion drilling at Beautiful Sunday West. Reconnaissance aircore drilling to confirm geology to south.
Nil
Nil
Geological interpretation. Geological Aircore drilling to define interpretation to be geochemical anomalies. completed 1st qtr 2011. Aircore drilling to commence 2nd qtr 2011. Surface TEM to commence during Jan 2011. RC drilling to commence 2nd quarter 2011. Surface TEM to commence Jan/Feb 2011. Technical review to be completed during Feb 2011. Surface TEM to commence Feb/March 2011. Infill geochemical sampling to commence 1st qtr 2011.
Auger sampling One moderately strong data received and anomaly generated from the interpreted. sampling.
Surface TEM to follow up any significant Ni anomalies. RC drill test geophysical and/or geochemical anomalies. Surface TEM to follow up VTEM anomalies. Geological interpretation. Process and interpret historical geochemical data. Surface TEM to over southern ultramafic contact. Technical review.
Preliminary review of TEM and drilling data. Preliminary review of TEM and drilling data.
A number of strong VTEM anomalies require follow up with ground TEM. A number of historical drill holes have intersected what appears to be disseminated Ni sulphides internal to the ultramafic host unit. Mineralisation is still open to the south. Southern ultramafic contact has been folded and/or faulted and remains poorly explored.
RC percussion drilling of any significant anomalies Drilling to commence along southern contact. 2nd quarter 2011. Auger anomaly and magnetic Surface TEM survey. Surface TEM to be high feature along strike of the RC drill test any completed during Feb Spargos prospect has had no significant anomalies. 2011. TEM coverage.
RC drilling has been Minor Au intercepts returned for completed. RC drilling. Gravity survey extended to the north, east, west and south. RC drilling completed mid Jan 2011. Surface geochemical data processed and interpreted. All historical data complied. Surface geochemistry data processed and interpreted. Gravity survey has helped to map structures and lithologies.
Narrow high grade Au intercepts Data and geological returned from assays to date. review when all assays Additional Au anomaly defined received. to the SW Zambezi Anomaly
Extensive gold anomalism identified, high grade anomaly covers an area of 2.1 x 0.5 kms with very little RC drilling completed in the area.
Start gravity survey 1st quarter 2011. Infill auger sampling during 1st qtr 2011. Regolith and RC drilling during 2nd quarter 2011.
Infill auger sampling. Best historic RC intervals include Regolith and RC drilling. 2m @ 6.97 g/t Au and 2m @ 3.85 g/t Au. Additional Au anomalies Surface TEM over the identified on tenement E63/1354. southern portion of the ultramafic unit. Geological interpretation.
Preliminary targeting Hill 616 remains the priority Hill 616 prospect area, it is considered Prospect (Mn) for Mn. Field trip completed, there is potential to increase Marumaru visited all Mn target resource outline. (Mn) Zebra Bore (Mn) areas. Auger sampling program completed over the northern portion of E46/780 Additional Mn occurrences identified during the field visit.
Field reconnaissance to asses Au anomalies. Detailed review of Hill 616 Detailed review of Hill and work program 616 and project area to proposal to be completed. be completed during 1st qtr 2011. Process and interpret recent and historical geochemical data.
RC drill program currently in progress testing nickel sulphide and gold targets generated through geophysics, geochemistry and geology
Interpreted to contain same rock units that host nickel sulphide mines to the south
Does Hannans Reward have the funds to implement its plan? YES
$5.58M $25.4m
2 SCR had drawn down approx. $1m of Convertible Loan 3 AGO at $3.85 & SCR at 42.5 cents. This does not include value of SCR options
Exploration Expenditure
Exploration (LHS) Expenses (A$'000)
2,000 19,927 18,884
Administration (LHS)
Cash (RHS)
17,241
15,000
10,000
5,583 5,000
388
274 0
234
191
239
234
222 0
2010 | Q1 Sep 09
2010 | Q2 Dec 09
2010 | Q3 Mar 10
2010 | Q4 Jun 10
2011 | Q1 Sep 10
2011 | Q2 Dec 10
Relative Share Price Performance January 2010 January 2011 S&P/ASX 300 MET (Red), HNR (Thick Grey) & AGO (Thin Black)
Totals: Top 30 holders of ORDINARY SHARES (GROUPED) Total Remaining Holders Balance
Hannans market capitalisation will only change significantly through exploration discovery either by us or our future joint venture partners. We are allocating the funds to give ourselves the best chance of discovery. It may be that we need to rebalance the project strategy to ensure all projects are released or advanced faster than can be achieved under the existing model. In the meantime, we must use our Balance Sheet and corporate initiatives to create wealth for shareholders. Damian Hicks Managing Director
Cash
Hybrid
Equities
Managed Funds
ASX Listed 6.4m AGO 1.8m SCR 1.2m SCRO at 20c 0.5m SCRO at 40c
Is there a chance of the Hannans Reward share price rising quickly if an exploration discovery is made? YES Portfolio valuation ~$3m
Questions
Damian Hicks Managing Director +61 8 9324 3388 admin@hannansreward.com
Disclaimer This Document and the information contained herein and any presentation (collectively referred to as Information) is proprietary to Hannans Reward Limited (HNR or the Company). This Document is being provided to the general public for the sole purpose of providing background information to enable the Recipient to review the potential of HNR. It is not intended as an offer, invitation, solicitation or recommendation with respect to any potential transaction. Potential investors must make their own independent assessment and investigation of HNR and should not rely on any statement or the adequacy or accuracy of the information provided. Securities of small to mid cap exploration companies, typically involve a high degree of risk and as such, any investment in HNR must be considered as speculative. The Information provided does not purport to cover all relevant information about any potential investment in HNR. Accordingly potential investors are advised to seek appropriate independent advice, if necessary, to determine the suitability of this investment. The Document contains reference to certain intentions, expectations and plans of HNR. Those intentions, expectations and plans may or may not be achieved. They are based on certain assumptions which may not be met or on which views may differ. The performance and operations of HNR may be influenced by a number of factors, many of which are outside the control of HNR. No representation or warranty, express or implied, is made by HNR or any of their respective directors, employees, agents, advisers and consultants that any intentions, expectations or plans will be achieved either totally or partially or within a prescribed timeframe or that any particular rate of return will be achieved. The Information disclosed relates to the proposed business of HNR at the date of this Document. Material information may have changed since the date the Document was compiled. No responsibility is accepted to advise any person of any change or update any of the Information. Neither the provision of this Document nor any information contained in this Document or subsequently communicated to any person in connection with this Document is, or should be taken as, constituting the giving of investment advice to any person. By accepting this Document you acknowledge and agree to be bound by each of the foregoing statements. The information in this document that relates to exploration results is based on information compiled by Mr, Don Huntly Exploration Manager, Hannans Reward Ltd who is a Full Member of the Australian Institute of Geoscientists and a Registered Professional Geoscientist. Mr. Huntly is a full-time employee of Hannans Reward Ltd. Mr Huntly has sufficient experience, which is relevant to the style of mineralisation and types of deposits under consideration and to the activity which has been undertaken to qualify as a Competent Person as defined by the 2004 edition of the Australian Code for the Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mrs. Huntly consents to the inclusion in the report of the matters based on the information in the form and context in which it appears.
Evolution Model of a Hannans Reward Project Forrestania Project During the period 2007 through to 2011Hannans Reward has significantly increased its coverage of prospective rock types at Forrestania as it gains an improved understanding of the geological model for the beltincreasing its chance of exploration success. This is the model for the progressive growth over time of Lake Johnston, Queen Victoria Rocks and Jigalong