WESTERN GAWLER PROJECT SAEMC November 2019
WESTERN GAWLER
PROJECTSAEMC November 2019
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AGENDA
CORPORATE EXPLORATION OVERVIEW
WESTERN GAWLER PROJECT
SUMMARY
This presentation is being furnished to you solely for your information and for your use and may not be copied, reproduced or redistributed to any otherperson in any manner. You agree to keep the contents of this presentation and these materials confidential. The information contained in thispresentation does not constitute or form any part of any offer or invitation to purchase any securities and neither the issue of the information nor anythingcontained herein shall form the basis of, or be relied upon in connection with, any contract or commitment on the part of any person to proceed with anytransaction.The distribution of this presentation in jurisdictions outside Australia may be restricted by law, and persons into whose possession this presentationcomes should inform themselves about, and observe, any such restrictions. This is not for distribution or dissemination in the U.S.The information contained in this presentation has been prepared by Western Areas Ltd. No representation or warranty, express or implied, is or will bemade in or in relation to, and no responsibility or liability is or will be accepted by Western Areas Ltd, employees or representatives as to the accuracy orcompleteness of this information or any other written or oral information made available to any interested party or its advisers and any liability therefore ishereby expressly disclaimed. No party has any obligation to notify opinion changes or if it becomes aware of any inaccuracy in or omission from thispresentation. All opinions and projections expressed in this presentation are given as of this date and are subject to change without notice.This document contains forward-looking statements including nickel production targets and cost estimates. These statements are based on assumptionsand contingencies that are subject to change without notice, and certain risks and uncertainties that could cause the performance or achievements ofWestern Areas Ltd to differ materially from the information set forth herein. Often, but not always, forward looking statements can generally be identifiedby the use of forward looking words such as “may”, “will”, “expect”, “intend”, “plan”, “estimate”, “anticipate”, “continue”, and “guidance”, or other similarwords and may include, without limitation, statements regarding plans, strategies and objectives of management, anticipated production and expectedcosts. Western Areas Ltd undertakes no obligation to revise these forward-looking statements to reflect subsequent events or circumstances.Individuals should not place undue reliance on forward-looking statements and are advised to make their own independent analysis and determinationwith respect to the forecasted periods, which reflect Western Areas Ltd’s view only as of the date hereof.The information within this PowerPoint presentation was compiled by Western Areas management, but the information as it relates to exploration resultsprepared by Mr Ian Gregory. Mr Gregory is a member of Australian Institute of Geoscientists (AIG) and has sufficient experience which is relevant to thestyle of mineralisation and type of deposit under consideration and to the activity which they are undertaking to qualify as Competent Persons as definedin the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’(2012 JORC Code). Mr Gregoryconsents to the inclusion in this presentation of the matters based on the information in the form and context in which it appears.
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Disclaimer and forward-looking statements
1. Based on share price on 28 November 2019 2. As at 30 September 2019 4
Corporate overview
High Quality
Low Cash CostHigh GradeNickel Sulphide
No Debt
$165.9M at bank2
Strong Growth
Odysseus MineDiggers SouthNew Morning
Nickel Leverage
COSMOSOdysseus 165kt Ni Ore Reserves265kt Ni Mineral ResourceEarly works completeMine Life>10 years
FORRESTANIAFlying Fox2.3kt Ni mined Q1FY2019.0kt Ni Ore Reserves76.6kt Ni Mineral Resource
Spotted Quoll3.5kt Ni mined Q1FY2061.1kt Ni Ore Reserves75.5kt Ni Mineral Resource
ASX code WSAShare price 2.91Shares outstanding (m) 273.5
Market Cap (A$m)1 801
Cash (A$m)2 165.9
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Western Gawler- Greenfields Exploration ProjectProspective Ni-Cu- Au Greenfields Exploration Project• Exploring for nickel-copper & orogenic / IOCG gold deposits • Western Gawler Project 4,450km2 (WSA 100%)
Iluka Farm in and Joint Venture• Five leases covering an additional 5,070km2
• Two stage farm-in earning up to 75% base and precious metals rights ($5.75M)
• Strategic ground holding within the Fowler Domain • Total project area 9520 km2, 250km strike
Ramp-up of Exploration Activity• Elevated funding support in FY19, FY 20.• Integrated series of belt scale exploration campaigns • Strong pipeline of targets identified, Focus on the Mystic - Splendour
corridor in 2019• Early days- encouraging drilling results; geology and geochemical
anomalies• Progress from regional to prospect scale focus and evaluation
Long term view- typically several years to discovery
Nickel sulphide deposit / occurrence
Fowler Domain
FraserRange
West Musgraves
East Kimberley
Ni-Cu-PGE Bearing mafic-ultramafic hosted intrusive systems
• Craton Margin Model - generally thinner crustal margins
• Mafic-ultramafic association -Large Igneous Provinces (LIP)
• Parental melts –Looking for primitive mantle derived, olivine saturated magma,
• Impacting on the Sub-continental Lithospheric Mantle (SCLM) underlying active deformation zones during
• Deposits form during active regional tectonism
Australian Analogies• Fraser Range ( Nova-Bollinger) • East Kimberley (Savannah)• Halls Creek Orogen (Double Magic) • West Musgraves (Nebo-Babel- Succoth)
Global Analogies• Canada – Superior Craton– (Thompson, Raglan, Sudbury) ~250Mt @ 2% Ni•Botswana- (Selebi-Phikwe) – ~175Mt @ 0.8% Ni, 0.85% Cu
Potential Ni Provinces
Geodynamic setting - Australian Ni-Cu-PGE intrusive deposits
Halls Creek
?
ü Archaean circum-cratonic margin• inverted rift structure
ü Proterozoic Thrust Belt / Mobile Zone • High Metamorphic Grade• Deep seated crustal shear zones• Geochronology GSSA collaboration -new
ages/ insights (1730-1490Ma)ü Mafic – ultramafic intrusives
• Multiple intrusions identified• Voluminous Paleoproterozoic mafic
intrusive rocks• Broad Gravity High (200x60km)
Known Ni-Cu-Au Deposits (?)ü Ni-Cu sulphides – (petrography)ü Sulphur Saturated igneous rocks? Sulphur Source
ü Opportunity Preserved• Shallow Cover~45m average cover depth • highly underexplored • Applying cutting edge geophysics
Fowler Domain Geodynamic Setting / Interpretation
Nickel Sulphide
MYSTIC
THUNDERDOME WEST
THUNDERDOME WEST
MYSTIC
Fowler Domain
Hitting the ground running in 2019 Leveraging existing Iluka targeting, focus on regional / remote targets• 2019 Aircore Drilling - 399 holes 24,213m• Airborne Electromagnetic Surveys- 1882line kms• Ground Electromagnetic Surveys – Moving Loop • High-resolution low-level aeromagnetic survey KEY RESULTS Splendour • 15m @ 1.14%, incl 1m @ 2.27% Ni (Oxide) Woodford• 1m @ 996ppm Cu, 1200ppm Ni, 685ppb Pt+PdF1_6• Refined bedrock conductor (MLEM) Regional Targets• Central Sector – remote & relatively underexplored• Prospective Ni-Cu-PGE mafic-ultramafic host rocks
intersected2020 Work Program• Building on significant in-ground expenditure and
exploration • Strong pipeline of targets identified
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Iluka Farm-In Joint Venture
WOODFORD
SPLENDOUR
F1_6
Western Gawler Drilling
Mystic
Citadel
Thunderdome
19WGAC 4445m @ 4.29 %
Ni Oxide
Pearl
WGAC01035400ppm Ni
WGAC 177Magmatic $ pn, po
blebs
WGAC 1111410ppm Cu
Atomic Cafe
18WGRC 3771m @0.8% Cu
215m @ 574ppm
Thunderdome
Significant Investment in Drilling -Regional to Prospect Scale Exploration
• 501 drillholes (AC, RC, DDH) 38,022m Pearl - Mystic Corridor• Mafic-Ultramafic intrusives (higher MgO)• Magmatic Ni-Cu sulphides • Mystic Nickel Oxide ZoneThunderdome Corridor – Atomic Café • Numerous mafic-ultramafic intrusives
(more fractionated)• Several copper anomalies associated
with discrete magnetic anomalies • Nickel Sulphides intersected (pyrrhotite/
pentlandite) Regional targets• EM targets – airborne & ground• Co-incident magnetic (remanent) &
gravity anomalies
WGAC 0931095ppm Cu
Citadel
Mystic
Ni Cu
Mystic Nickel Oxide Zone
• Intense nickel oxide (supergene) zone • Nontronite / Iron- Chromium bearing
montmorillonite clay • Overlying ultramafic unit (olivine
orthocumulate)
19WGAC444Interval Ni % Depth
1.00 @ 4.91% 54-55
5.00 @ 4.29% 66-71
8.00 @ 3.38% 63-71
18.00 @ 2.06% 54-72
19WGAC444 66-67m
Air ‘CORE’ Samples
Target intrusives + magmatic events
Mystic
Citadel
Thunderdome
Pearl
Atomic Cafe
Range of Prospective Intrusive Host Rocks
Thunderdome Colona Block Mid-low amphibolite
• Fe Rich; low-Mg tholeiitic magma
(sub-alkaline)
• Hornblende pyroxenties /
amphibolites
• Gabbroic-ferrogabbroic protolith
• High Fe-Ti Oxides (5%)
• Increase in metamorphic grade
to the north
• Less deformed pyroxenite
intrusives
Atomic Café Intrusives ( Colona Block) • Lower Granulite Facies
• Ultramafic Granultes
• Distinct compositional field
groups
Thunderdome / Atomic Café appear to be lateral equivalents• Same Zr/Nb values (~3-15)
• Same distinct ‘humped shaped’
LREE pattern & sloping HREE
pattern
Mystic /CitadelUltramafic Orthocumulate• Utramafic intrusives (High MgO)
• Little deformation, igneous
textures preserved
• Greenschist facies (retrograde?)
• Lower Zr/Nb ratios 15-20
Mafic Granulites• gabbronorite suite
• Lower MgO suite
• Higher Zr/Nb ratios 20-45
• +ve Eu anomalies
• Granulite facies
• Rift tholeiitic magmas
Relationships • Unlikely to be broadly co-
magmatic – two suites preserved
• Different immobile element ratios
• Contrasting metamorphic grades
• Additional research / age dating required
Lateral Equivalents
Inc. m
etmgr
ade
MgO
%Fe
2O3%
MgO%
SiO2%
Atomic Cafe
Thunderdome
Thunderdome
Mystic Olivine Orthocumulate
Geochronological studies (GSSA)
GSSA collaboration with Western Areas; A Reid, E Jagodzinski
Six Fowler Domain samples SHRIMP U-Pb • Western Areas & previous drill samples
collected from Colona/ Barton / Central Blocks
Colona Block WGDD001 – Atomic Cafe• 1730 ±5 Ma ; 1697 ±5 Ma• Kimban Orogeny
Barton Block – WGAC 0045 • 1586 ±3 Ma (Garnet Gneiss)
Central Block - WGAC 0105 - Pearl• 1611 ±3 Ma• St Peters Suite
Nundroo Block (FBD 1, 2)• 1578 ±3 Ma , 1612 ±5 Ma• Hiltaba Suite Granites
Ø Western Gawler Project - province scale project
Ø Significant opportunity to discover a high-grade Ni-Cu-PGE or Gold deposit in SA.
Ø Strategic land holding - Fowler Domain fully captured
Ø Highly underexplored region
Ø Systematic exploration programs –increasing chance for success
Ø Elevated funding throughout FY20
Ø Ongoing commitment to regional and grass-roots exploration
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Concluding Remarks
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