caravel investor presentation - 11 april 2016apr 11, 2016 · calingiri and first quantum minerals...

ASX:CVV

A compelling growth story in Australian copper

Investor PresentationApril 2016

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DisclosuresandDisclaimer

Investor Presentation | April 2016 |

DisclaimerThe presentation materials (and the contents of the presentation) are for information purposes only and do not constitute an offer or invitation to subscribe for orpurchaseany securities, and neither thepresentation materials nor anything contained therein nor the fact of their distribution nor the contents of thepresentationshall form thebasis of or be relied on inconnection withor actas any inducement to enter into any contract orcommitmentwhatsoever.The information contained in this presentation is subject tomaterial updating, completion, revision, amendment and verification. No reliance should beplaced on theinformation and no representation or warranty (express or implied) ismadeby theCompany, any of their respectivedirectors or employees or any other person, and,save in respect to fraud,no liability whatsoever is accepted byany suchperson, inrelation thereto.TheCompany does notprovideany financial product advice.

Forward-LookingStatementsAll statements other than historical fact, contained in this presentation constitute “forward-looking statements” and are based on reasonable expectations,assumptions and projections by the Company as of the date of this presentation. Expectations and assumptions are subject to uncertainties and contingencies ofunknown factors that may cause variation in such forward-looking statements beyond the Company’s ability to control or predict. There can be no assurance thatforward-looking statementswill prove to beaccurate, as actual results and futureevents coulddiffer materiallyfrom thoseanticipated in such statements.

CompetentPersonStatementThe information in this report that relates to Mineral Resources is based on information and supporting documentation compiled by Mr David Williams and TonyPoustie. Mr David Williams, a Competent Person, who is a Member of The Australasian Institute of Mining and Metallurgy is employed by CSA Global Pty Ltd, anindependent consulting company. Mr TonyPoustie, a Competent Person, whois a Fellow of theAustralasian InstituteofMining andMetallurgy is a full-timeemployeeof Caravel Minerals Limited. Mr Williams and Mr. Poustie have sufficient experience that is relevant to the style of mineralisation and type of deposit underconsideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting ofExploration Results, Mineral Resources and OreReserves’. MrWilliams andMr Poustie consent to the inclusion in the report of thematters based on their informationin the form and context in which it appears.

Mr Poustie consents to the inclusion in the report of thematters based on his information in the form and context in which it appears. In relation to the WynbergProject Mineral Resources, Mr Poustie has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to theactivity that he is undertaking to qualify as a Competent Person as defined in the2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, MineralResources and Ore Reserves’. Mr Poustie consents to the inclusion in the report of the matters based on his information in the form and context in which it appearsand with the consent of KingsgateConsolidated Minerals. This information was prepared and first disclosed under the JORC Code2004. It has not been updated sinceto comply with the JORC Code 2012 on the basis that the information has not materially changed since it was last reported, see news releaseswww.caravelminerals.com.au.

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• Cornerstoneasset:CalingiriCopper-MolybdenumProject,WA– agloballysignificantJORCResource

• Tier-1partner:leading internationalminerFirstQuantumMinerals(FQM:TX)

• Explorationfunding:inplaceuntil2017withFQMA$3.6Mfarm-in

• Resource:March2016,MaidenJORCMineralResourceestimate released

• ScopingStudy:Inprogress,dueinQ22016

Overview

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CapitalStructure

CaravelMineralsMajorShareholders^:

*asof31December2015^asat15April2016

DirectorsandEmployees:13.1%

Cash*: $1.1M

SharePrice^: $0.11

12monthsrange: $0.09-$0.25

Avg.dailyvolume(3Mths): 20K

MarketCap(undiluted): A$5.4M

SharesOutstanding^: 48.6M

OptionsListed: 7.6M

Unlisted: 12.7M

KingsgateConsolidated 12.6%

FirstQuantumMinerals 12.3%

HealyRobertAnthony 4.4%

M&CHilmerGroup 4.3%

T&RPoustieGroup 3.9%

WaratahInvestmentsGroup 3.5%

JPMorgan 2.9%

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Calingiriand FirstQuantumMinerals


*FQMhasa“RightofFirstRefusal”afterobtaininga50.1%equitystake

FQM- Largeglobalcopperproducer:marketcap~A$5b(FM:TSX).OperatingsevenminesanddevelopingfivebulktonnageprojectsinZambia,Peru,ArgentinaandPanama

50.1%projectequity

Righttowithdraw–noprojectequity

Farm-In2nd Phase- +$2.4m

Farm-In1st Phase- $1.2m

JVPartner’s*11/2015 ~4/2016 ~3/2017 ~5/2017

Equity$1.7m+Note$0.6m

2014/15

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ASignificantNewMineralisedDistrict90minutesfromPerth

CalingiriProject,WA


AMajorJORCResource• Over 74% of the Mineral Resource is in

the Indicated category

• 844 Kt copper at CuEq 0.38%

• 143 Mt @ 0.44% for 550Kt copper(0.30% higher cut-off grade)

• 530 Mt @ 0.33% for 1,410Kt copper(0.15% lower cut-off grade)

• Resources remain open along strikeand at depth, and include higher gradezones from near surface

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Calingiri:Alargetonnage,disseminatedstyle,primarycopper-molybdenumsulphideJORCMineralResource

• Refer toMineralResource disclosures on pages 2,19and 20Consolidation of Bindi, Dasher andOpie Prospects


Broadintersectionsofopencopper-molybdenum-silver-goldmineralisation:Dasher:1,050mlongandopen- extendingtoverticaldepthsof450mBindi:2,000mlongandopen- upto150mthickextendingtoverticaldepthsof300mOpie:300mlongandopen- upto172mthickextendingtoverticaldepthsof200m

Classification Tonnes (MT) Cu % Cu Eq % * Cu Metal (T)Indicated 187 0.34 0.38 626,300 Inferred 64 0.34 0.38 218,000 Total 251 0.34 0.38 844,300

Table1:ConsolidatedIndicatedandInferredResourceEstimate(0.25%Cut-off)

549,800

844,300

1,182,5001,407,900

0.38%

0.34%

0.29%0.27%

0.43%

0.38%

0.33%0.30%

0.00%

0.05%

0.10%

0.15%

0.20%

0.25%

0.30%

0.35%

0.40%

0.45%

-

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

0.30 0.25 0.20 0.15

AverageCuGrade

CopperM

etal(t)

Cut-OffGrade(Cu%)

Grade/ContainedCopperCurve

CuMetal(T) Cu% CuEq%

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BindiResource:April2016


The BindiMineral Resourcehas:• a cumulative strikeextentof 3,700m• a planwidth of 200m(BindiWest) and

350m(Bindi East) and• depth extent of 360m belowsurface.

There is a saprolitic weathering layer between5 m and 50 m thick, immediately below whichthe mineralisation is developed.Cut-off Grade Classification Tonnes (MT) Cu % Cu Eq % Cu Metal (T)

Indicated 71 0.39 0.42 274,591 Inferred 7 0.35 0.36 24,467 Totals 78 0.38 0.42 299,058 Indicated 137 0.33 0.37 452,678 Inferred 15 0.31 0.31 45,461 Totals 151 0.33 0.37 498,139 Indicated 235 0.29 0.33 672,417 Inferred 32 0.26 0.26 84,644 Totals 267 0.28 0.32 757,062 Indicated 319 0.26 0.30 821,014 Inferred 52 0.23 0.23 120,018 Totals 371 0.25 0.29 941,033

BindiIndicatedandInferredResourceEstimates*

0.30%

0.25%

0.20%

0.15%

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Bindi


Oblique Section A-A1

Oblique Section B-B1

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DasherResource:April2016

Cut-off Grade Classification Tonnes (MT) Cu % Cu Eq % * Cu Metal (T)Indicated 27 0.38 0.43 103,430 Inferred 29 0.39 0.45 114,171 Totals 56 0.39 0.44 217,600 Indicated 38 0.35 0.40 134,841 Inferred 47 0.35 0.40 163,812 Totals 85 0.35 0.40 298,653 Indicated 47 0.33 0.37 155,310 Inferred 69 0.31 0.35 212,594 Totals 117 0.32 0.36 367,905 Indicated 54 0.31 0.35 167,562 Inferred 83 0.29 0.33 237,266 Totals 137 0.29 0.33 404,829

DasherIndicatedandInferredResourceEstimates

0.30%

0.25%

0.20%

0.15%

The DasherMineral Resourcehas:• a strikeextent of 1,500m• a planwidth of 170mand• depth extent of 490m belowsurface.

There is a saprolitic weathering layer between5 m and 45 m thick, immediately below whichthe mineralisation is developed.

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Dasher


DasherSection 6,566,900mN

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OpieResource:April2016


Cut-off Grade Classification Tonnes (MT) Cu % Cu Eq % * Cu Metal (T)Indicated 7 0.37 0.42 27,026 Inferred 2 0.37 0.41 6,113 Totals 9 0.37 0.42 33,139 Indicated 12 0.34 0.38 38,760 Inferred 3 0.33 0.37 8,749 Totals 14 0.34 0.38 47,509 Indicated 15 0.31 0.35 47,178 Inferred 3 0.31 0.35 10,362 Totals 19 0.31 0.35 57,540 Indicated 18 0.29 0.33 51,210 Inferred 4 0.30 0.34 10,845 Totals 21 0.29 0.33 62,055

0.15%

OpieIndicatedandInferredResourceEstimates

0.30%

0.25%

0.20%

The OpieMineral Resourcehas:• a strikeextent of 250m• a planwidth of 400mand• depth extent of 250m belowsurface.

There is a saprolitic weathering layer between5 m and 35 m thick, immediately below whichthe mineralisation is developed.

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Opie


Opie Section 6,560,680mN

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TheCalingiri Project tonnes and grade arebased ontheMaiden JORC Resource estimateMarch 2016 and othercompany mine data isfrom publicly available information. CuEq grades areafter recoveries. Fulldetails ofCalingiri releases can befound atwww.caravelminerals.com.au.


GlobalComparableMinesandExplorationProjects

0.49

0.400.45

0.37

0.470.42

0.320.36

0.50

0.38 0.34

0.00

0.10

0.20

0.30

0.40

0.50

0.60

0

200

400

600

800

1000

1200

Mines:MtExplorationStage: Mt CuEq.%

CuEqGradeMt

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CompletingaScopingStudyinQ22016


1- Indicative for largelowgrade copper /moly deposits2- CalingiriProject existing JORC Resource estimate

M/Tonnes

0 100 200 300 400 500 600

Greenfield

Initital discovery

Exploration justified

Resource definition warranted

Preliminary economics

PFS/ Feasibility

Development &production

CopperMine:BulkTonnageRequirements1

Calingiri: Project Status

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Calingiri Roadmap

Apr15ExplorationTargets

Nov15Earn-InFQM

Q116DrillingResults

Q116MaidenResource

Q216ScopingStudy

April16


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Twosignificantprojects:JVpartnersbeingsourced

OtherProjects– WynbergandBryah


Wynberg (100%)isaCloncurrystylecopper-goldsystemwithhighgradeoutcroppingmineralisation

Threesignificantprospectswithfurtherexplorationgrowth

140k Inferred resource:[email protected]/tAu

Bryah (97.5%)islocated~80kmnorthofMeekatharra– 60kmsouth-westoftheDegrussaCopper-Gold Deposit

Twolargemulti-elementanomaliesoutlinedinageologicalsettinganalogoustotheDegrussadeposit

TheMonty discoveryhassignificantlyupgradedprospectivity

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AVeryHighQualityLeadershipTeamMARCEL HILMER,CEOand Executive DirectorMr Hilmer is a Fellow of the Institute of Chartered Accountants and a Member of the Australian Institute of Company Directors withmore than 30 years experience in executive management of global public and private groups including 6 years as BusinessDevelopment Executive with First QuantumMinerals Limited and following as CEO of Forsys Metals

ROWENCOLMAN,CFOMr Colman is a Chartered Accountant with over 25 years of senior financial management experience and holds a Bachelor Degree inCommerce. Recently Mr. Colman spent time as Development Director for a major sovereignwealth fund in the Middle Eastmanagingmultiple development projects globally

TONY POUSTIE,Director of ExplorationMr Poustie is a fellow of the Australian Institute of Mining andMetallurgy. He is a geologist with 44 years international experience inmineral exploration, resource definition, project evaluation and development, andmining. He was GeneralManager Exploration from1998 until the takeover of Dominion by Kingsgate Consolidated Limited in 2011,when he took on the role of Chief Geologist

GRAHAM KUBALE, ExplorationManagerMr Kubale is a Geologist with over 12 years’ experience in the resources sector, having worked extensively in greenfields and near-mine exploration for a range of gold, base metal andIron Ore mineralisation styles in Australia, Asiaand Canada. Graham spent severalyears at NewmontMining Corporation, Kingsgate Consolidated and Cliffs Natural Resources He holds a Bachelor of Applied Science(Geology)

PETER ALEXANDER,Non-Executive DirectorMr Alexander has over 40 years experience in the Australian and international mining and exploration industry. He was ManagingDirector of Dominion Mining Limited for 10 years. Mr Alexander is also Non-Executive Director of the ASX listed company DorayMinerals Limited

JAMES HARRIS,Non-Executive DirectorMr Harris has had extensive experience in both Government and private enterprise in Australia and overseas. He has worked for tenyears with both Alcoa of Australia and the United Group Limited. His qualifications are in Legal Studies and Public Administration andhe is a Fellow of the Australian Institute of Company Directors


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InvestmentSummaryCalingiriProject– MajorJORCMineralResource

Caravel:


Strongfundingpartner - FQM

Ideallocation–infrastructure – localworkforce

Openpitmine– lowcost– lowstrip

Metallurgicalrecoveries - >90%Cu>80%Mo

NonativetitleorenvironmentalissuesFor

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CorporateandOperations:MarcelHilmer,CEOorTonyPoustie,Dir.OfExploration

L3,18RichardsonStreetWestPerthWA6005+618 94266400

CorporateAdvisors:RodClarksonPalladionPartnersTelephone:+61290025415


ContactInformation

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Investor Presentation | April 2016 | AP 1

Projects Status Target Location Holding Area(km2)

CALINGIRI Granted Copper,Gold,Molybdenum WA,Australia 18tenements–100%

1tenement– 80% 1048.8

WYNBERG Granted Gold,Copper QLD,Australia 2tenements–100% 83.5

BRYAH Granted Copper,Gold,Manganese WA,Australia 1tenement–100%

1tenement –92.5% 129.0

Appendices:AustralianPortfolio

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OptionsSummary:April2016


Listed/Unlisted Mn ExercisePrice ExpiryDateListed 7.57 0.770$ 31/05/2016Unlisted 0.03 0.460$ 16/10/2016Unlisted 3.80 0.770$ 31/12/2016Unlisted 2.52 0.440$ 16/10/2016Unlisted 5.26 0.290$ 31/01/2017Unlisted 0.20 0.170$ 31/01/2017

SummaryListed 7.57 0.770$Unlisted 11.81 0.475$Totals 19.38 0.590$ Averageexerciseprice

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Calingiri:JORCMineralResourceEstimate


Geology and Geological Inter pretati on: The mi neralisati on at all prospect s is believed to be of por phyry and/or skarn deposit style which occurs within a possi ble larger scale Archean subduction relatedgeologi cal setting. The mineralisation at Bindi , Dasher and Opie typically consists of chalcopyrite ± moly bdenite ± magnetite, disseminated within a coarse - grained, garnet -bi otite gneiss, of likely graniticorigin. Gar net abundance has a broad spatial a ssociation with minerali sation. The gar net -biotite g neiss , and associated minerali sation, typically forms tabular zones in the or der of 50 -150 m true thick ness (upto 200 m) through the core of the main pr ospects . The mi neralised zones at Dasher and Opie di p moderately to the east and north, respectively, while the Bi ndi minerali sation is inter preted to be folded,resulting in t he Bi ndi West (west -di pping ) and Bi ndi E ast component s (di p currently uncertain). Dolerite dykes were modelled by Caravel a nd ar e interpr eted to st ope out the mi neralisation. Geologi cal modelsfor gneiss, gra nite and mafi cs wer e also modell ed by Caravel a nd incorporated int o the Mi neral Resour ce bl ock models. Minerali sation i s inter preted to be constrained withi n the g neiss , and to a le sser extentthe hangingwall mafi cs and weathering profile. The granite unit is interpreted to be barren, and mi neralisation blocks interpolated within the granite were set to barren Cu and Mo grades . Two weatheringdomains (reg olith and transported cover) were i nterpreted for each model a nd overlie the fresh rock. The Cu domain inter pretations were based upon a lower cut-off gra de of 0.1% Cu. Mo domaininterpretations were based upon a l ower cut -off grade of 10 ppmMo. Mi neralisation domains were encapsulated by means of 3D wireframe model s. Domai ns were extrapol ated al ong strike or down plungeto half a section spa cing or if a barren hol e cut the pl unge extensi on before thi s limit. Domains were extrapolated to a dept h of 50 m below the deepest drill inter cept, alt hough the deeper blocks with limiteddrill support were not necessarily classified according to the JORC (2012) Code.Drilling Techniques: Drilling at Calingiri used to support the Mineral Resource estimate was mostly Reverse Circulation, with a minor amount of Diamond Core drilling.Sampli ng and Sub-sampling Techniques. RC drilling used a nomi nal 5.5 i nch fa ce sampling hammer, wit h one metre sample s fed int o a rig mounted splitter or rotating cone, with the primary split dr opped i ntoa cali co bag. The residue was capt ured in a green pla stic bag. Two consecutive one metre drill samples w ere composited to form 2 m sample composite s, w hich wer e di spat ched for chemi cal a nalyse s. Drillrecoverie s were very high. Field duplicate sampl es were colle cted at a ratio of 1:20 sampl es, with the 20th sample (and multi ple thereof) being the primary sample , and the 21st sample etc. bei ng the fieldduplicate.Diamond core drilli ng used conventional diamond coring techniques with an HQ core size (5.6 cm diameter). Drill core was oriented by the drillers pla cing orientati on marks on t he bottom of t he core at theend or start of sele ct runs. Drill core recovery wa s 100%. The core was transported to Caravel’s fiel d support yard in t he town of Cali ngiri wher e the core wa s marked up, geologi cally logged and then sampl edby cutting the nominated samples in half. Duplicate samples were quarter cut. All samples were collected as per Caravel procedures for sampling.Sample Analys is Method: All samples were sent to ALS la borat ory (Perth) wher e they were weig hed, dri ed and pulverised to 85% passi ng 75 micron to form a sub-sample, w hich wa s sent for multi elementsuite analyses usi ng 4 -aci d dig estion with an ICP Atomi c Emissi on S pectr ometry (ICP-OES) and / or Mass Spectrometry (MS) finish. Sele cted sample s were sent for a 50g Fire Assay for A u analysis wit h an AASfinish.Estimation Methodology: All composited drill hol e sampl es contained within the Cu mi neralisati on domai n supported the interpolation of bl ock grades, using a hard boundary interpolation. Cu, Mo and Aggrades wer e estimated i nto the model using ordi nary kriging (OK) as t he primary method, whilst Au was estimated using i nverse distance weighting. Search ellipses used pr e-set dire ctions for the Dasher andOpie model s, with t he elli pses aligned along strike and down dip of the domain. The grade i nterpolation at Bi ndi used a varia ble search ellipse orientation di ctated by the local di p and strike of the boundingmineralisation domain.The relatively low nugget effe ct for Cu and Mo allow ed a low number of sample s to be used for each bl ock estimate. A mi nimum of 4 and maximum of 16 composited (2 m) sample s were used i n any one bl ockestimate, wit h a sear ch elli pse of 150 m by 100 m by 50 m used. Block size s for ea ch deposit model were based upon the averag e drill spaci ng, with block size s set to appr oximately half t he drill spa cing i n theeasting and northi ng directions. S ub-celling wa s used t o constrain the large bl ock size s within the geologi cal envelopes. Density values were a ssigned to the block models based upon the geol ogical domai ns.Density values were derived by way of caliper method, with Caravel measuri ng the volume and weight (in air) of 96 diamond cor e samples. Densities applied to the model are : Gneiss (a nd mostmineralisation) 2.75 t/m3, granite 2.66 t/m3, dolerite dykes 3.02 t/m3, mafic hangingwall 2.75 t/m3, saprolite 2.2 t/m3 and transported cover 1.8 t/m3.Minera l Resource Cla ssifi cation: The Mineral Resource estimates were cla ssifi ed as a combi nation of Indicated and Inferred. The vol umes classi fied a s Indicated is ba sed upon geologi cal evidence derived fromdrilling, suffi cient to assume geol ogical and grade continuity between drill holes. The tenor of Cu and Mo grade between drill hol es demonstrates low variability. Drill spaci ng supporting Indicated are : Bi ndi(80 m across strike x 200 m al ong strike), Dasher (100 m x 200 m), Opie (100 m x 80 m). Drill spa cing supporti ng Inferred are : Bi ndi (160 m across strike x 200 m along strike), Dasher (100 m x 200 m), Opie (100m x 80 m). Some vol umes of mineralisation domains were not classi fied, w here the interpolated bl ock grades and geologi cal understa ndi ng were not reasonably supported by drilling to satisfy therequirement for an Inferred classification.Cut Off Grades: Cut off grades reported ra nging from 0.15 - 0.3% Cu ar e consi stent with those reported for similar deposit types elsewhere in t he worl d are are considered appropriate for the style ofminerali sation encounter ed. Mining and Metall urgical Parameters. Rougher fl otation Metallurgi cal testwork has been compl eted on representative material from ea ch prospect with averag e recoveries usedin the calcul ation of copper equivalents. Initial metallurgi cal results sugg est copper along with the associated potential metal by-products; molybdenum, silver and gold can be readily recovered viaconventional flotation processes. It is the company’s opinion that all the elements included in the metal equivalents calculation have a reasonable potential to be recovered and sold.Copper Equiv alent Va lues: Metal equivalent values were calculated usi ng the formula : Cu ppm + (Mo ppm*2.73 ) + (Ag ppm*77.9 ) + (A u ppb*4). A ssumed commodity pri ces w ere Cu ($2.87/l b), Mo ($8.00/l b),Ag ($17.37 / Oz) and Au ($1,206/Oz). Prices in USD; sourced from consensus reports supplied by the Bank of Montreal in Mar ch 2016 . Assumed recoverie s are 92% (Cu), Mo (90%), Ag (80% ) and Au (60%).Supported by initial metallurgi cal results suggesting copper along with the associated potential metal by-products; moly bdenum, silver and gol d can be readily recovered via conventional fl otation processes.In estimati ng Au grades a nominal val ue of 1 ppb Au has been applied where samples had not been analysed for Au. It is the company’s opini on that all the elements included i n the metal equival entscalculation have a reasonable potential to be recovered and sold.

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caravel investor presentation - 11 april 2016apr 11, 2016 · calingiri and first quantum minerals...

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