Helix Resources Limited Gold, Copper, Iron Ore in Australia and Chile Helix Resources Limited (ASX:HLX) is a minerals exploration company focused on identification, acquisition and 20 November development 2012 of projects in Australia and Chile The Manager Company Announcements Office Australian Stock Exchange Limited BY ELECTRONIC LODGEMENT Dear Sir INVESTOR PRESENTATION Please find attached Investor Presentation to be delivered at the Peruvian and Chilean Mining Sector Briefing Luncheon in Sydney, Wednesday 21 st November 2012. Yours faithfully Michael H Wilson Technical Director Helix Resources Limited A.C.N. 009 138 738 Incorporated in Western Australia Suite 7 / 29 Ord Street, West Perth WA 6005 P: +61 8 9321 2644 F: +61 8 9321 3909 www.helix.net.au Email: greg.wheeler@helix.net.au Email: mick.wilson@helix.net.au
Helix Resources Limited Unlocking Chile s Competitive Advantage Exploration & Discovery in Geologist s Paradise
Disclaimer Competent Person s Statement The information that relates to Exploration Results, Mineral Resources or Ore Reserves on these projects is based on information compiled or reviewed by Mr M Wilson who is a full time employee of Helix Resources Limited and a Member of The Australasian Institute of Mining and Metallurgy. Mr M Wilson has sufficient experience which is relevant to the style of mineralisation and type of deposit 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 Exploration Results, Mineral Resources and Ore Reserves. Mr M Wilson consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. Exploration Target It is common practice for a Company to comment on and discuss its exploration in terms of target size and type. The term "Exploration Target" should not be misunderstood or misconstrued as an estimate of Mineral Resources and Reserves as defined by the JORC Code (2004), and therefore the terms have not been used in this context. Exploration Targets are conceptual in nature, and it is uncertain if further exploration or feasibility study will result in the determination of a Mineral Resource or Mining Reserve. Forward Looking Statements This presentation has been prepared by Helix Resources Ltd ( Helix ) to assist with informing interested parties about the Company. The presentation is in summary form and 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 presentation. This presentation is for information purposes only. Neither this presentation nor the information contained in it constitutes an invitation or offer to subscribe for or purchase any securities in the Company or as an inducement to make an offer or invitation with respect to those securities. This presentation contains forward-looking statements. Such forward-looking statements may include, without limitation:- estimates of exploration targets, resources, reserves and statements regarding future exploration results; estimates of future metal production, opex, capex, earnings and cashflow estimates; and the sensitivity of these to risks including economic conditions, interest rates, metals prices, foreign exchange rates, stock market movements and access to infrastructure. While Helix has no reason to believe that any statements are either false, misleading or incorrect, it cannot guarantee that through either the passage of time or actions beyond the control of Helix, they will not become so. To the fullest extent permitted by law, Helix Resources Ltd, its officers, employees, agents and advisers do not make any representation or warranty, express or implied, as to the accuracy, reliability or completeness of any information, statements, opinions, estimates, forecasts or other representations contained in this presentation. No responsibility for any errors or omissions from this presentation arising out of negligence or otherwise is accepted. For a more detailed discussion of such risks and other factors, see the Company s Annual Reports, as well as the Company s other filings. 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 presentation, or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws.
State of Play AUSTRALIA HAS BECOME AN INCREASINGLY DIFFICULT OPERATING ENVIRONMENT FOR JUNIORS VIEW OF THE MARKET Increased competition in Junior market Retail investors wary of exploration exposure Baby Boomers becoming risk averse with retirement just around the corner FUNDAMENTALS: Supply Constraints - Large discoveries few and far between Production grades are falling OPEX s are rising Demand Strong - Large Populations, emerging economies in development phase Discovery is needed for the mines 5yrs from now or the only variable is PRICE WHERE? AUSTRALIA - Greenfields is now dominantly undercover and/or in remote locations AFRICA Over 200 Australian Junior Companies operating or claim to have an exposure. LATIN AMERICA THE NEW HORIZON Traditionally the second home of the TSX - ASX entities are gaining a foothold.
Unlocked value in Helix Defined Resources (Au, Cu & Fe) and value in Legacy Assets Quality Portfolio in prospective infrastructure rich exploration jurisdictions Chile & Australia Technical focus and dollars in the ground
The Helix Story Listed on the ASX in 1986 - play in the exploration space - look to capture value uplift through discovery - target large scale copper and gold deposits Greenfields Exploration Discovery & Development Studies F u n d i n g Construction C Ramp-up Production i o o m n m i i n s g s EXPLORATION SKILLS MINING SKILLS Yr 0 Decision Point Yr 5-10 (Explorer or Miner?) After: Hartleys Research Refocus & Stay Relevant If it is tough to find elephants in your backyard, go to where to where the elephants are.
Helix Looking over the Horizon Post GFC Strategic Review Where to get best value for investing risk Exploration Dollars. take into account the commodity market, the equity market and our successful peers. Which Commodities did we want to focus on Gold Hedge against inflation with countries printing their way out of/into trouble Copper Long term growth in consumption, supply constraints Looking Globally, what was our criteria Are you as management and a board willing to travel and/or live there Retain Commodity focus Prospectivity vs- risk assessment Learn from those who have paved the way to avoid costly mistakes. Answer for Helix was Latin America, specifically Chile
Why Chile? Chile has a mining culture with strong support from all levels of Government and the Community. Chile produces 40% of global copper and hosts many of the largest copper mines in the World. that s where the Elephants are! Chilean Government recognises the benefits of exploration as the key to a robust future mining industry. How many listed Mining companies on Chilean Stock Exchange..Answer? Chile established an Exploration co-funding scheme FENIX whereby private equity is matched to US$180M of Government funds for the specific purpose of funding exploration in Chile. Waste dumps at the Chuquicamata Operations Region II Chile
Chile Exposure Established Chilean local subsidiary and presence in early 2010 In two years and in under $2.8M expenditure to date, HLX has achieved the following milestones: Greenfields discovery of copper porphyry within the first year of field activities Assembled experienced local technical team to carry out exploration Developed geological search criteria & established priority target areas. Applied for and secured tenements 100% under wholly owned Chilean subsidiary
Area of Interest Region IV ~350km North of Santiago Close to ports, rail, water and mining infrastructure untested prospectivity in Palaeocene & Eocene Belts Ability to secure concessions without option payments
The Joshua Project 40 km SE of Teck s Carmen de Andacollo Mine (400Mt @ 0.38% Cu Reserve) Finalising JV agreement with MMC to fund up to $19.5M program to earn 50% Target 1: +500Mt Cu Porphyry Exploration target* Four porphyry targets identified in project area of over 100km² *(See disclaimer page) N
3D Inversion Model of Chargeability ARJS005 6613600mN DDH2 N Target Zone Northern Flank 150m 6613600mN Chargeability Inversion Section 6613600mN W Sydney Harbour Bridge to scale 500m E
Huallillinga Project 100% HLX Purchased Blanco Y Negro Mine and Leases 100% for US$80,000 covering artisanal copper mine and surrounding 128Ha [13km2] Copper and gold mineralisation present in 15-30m wide zones - replaced stratigraphic units in volcanic pile IP Survey has identified large chargeable feature (+600m wide) at depth below workings Potential for subparallel systems Forms part of a regional shear system Los Mantos Fault Huallillinga Recent Purchase Blanco Y Negro Mine Shear hosted Cu/Au in Qtz Veins Joshua 20km from Glencore s Punitaqui Copper Mill Glencore Punitaqui Mill (~1Mtpa) Copper concentrator Hado
Blanco Y Negro Mine 100% HLX DDH Drilling commencing this week
Hado Project 100% HLX First-pass field activities have confirmed second significant porphyry project for Helix with large alteration system and geology similar to Joshua Setting Mapping and wide-spaced rock chip sampling has identified intrusive breccia on SW flank (+1.5km x 0.5km at surface) returning up to 0.6g/t Au and elevated copper from limited sampling. Two line IP Survey highlighted sulphide accumulations
Challenges Turbulent Market Conditions Even in current challenging market conditions underlying fundamentals associated with growth in Asia points toward strength in gold and copper markets Helix aiming to deliver near-term to shareholders from sale of Legacy Assets Discovery is the key to wealth creation for junior companies exposure to a mineral rich region such as the Andes is a crucial step towards unlocking company maker project Get the story out there Chile and Peru are World-Class mining destinations and junior Australian companies are present and active. Aussie tenacity will result in discovery and success in Latin America
INVESTMENT SUMMARY Helix has a demonstrated track record of identifying significant mineral discoveries Leveraged to copper and gold strong demand fundamentals Established in Chile since 2010 with experienced in-country technical team Large exploration targets at key projects with nearby infrastructure HLX is attracting attention from significant global players and advancing joint venture negotiations on key projects Exploration programs advancing priority projects Experienced board and technical team
Company Snapshot ASX Listed: HLX Shares on issue: 204 Million (Top 20 Shareholders - 52%) Market Capitalisation: $8 Million Cash & Investments: $3.1 Million ($900k committed to Olary Project) Directors: Greg J Wheeler Executive Chairman Corporate Michael Wilson Executive Technical Director Geologist John Den Dryver Non Executive Director Mining Engineer Gordon Dunbar Non Executive Director Geologist Gold and Copper -Australia and Chile Defined resources, advancing discoveries and development aspirations