1. THE WEST MUSGRAVE: A POTENTIAL WORLD-CLASS NI-CU-PGE SULPHIDE AND IRON OXIDE CU-AU PROVINCE? I.M. Groves for D.I Groves, I.M. Groves, S. Gardoll, W. Maier & F.P Bierlein Redstone Resources and Centre for Exploration Targeting, UWA AIG 2007, Perth, June 2007

2. THE WEST MUSGRAVE: A FRONTIER TERRANE One of the last frontiers for mineral exploration in Australia One of the last frontiers for mineral exploration in Australia Remote location in central Australia Remote location in central Australia Most prospective ground is under cover despite mineral occurrences known since 1950s Most prospective ground is under cover despite mineral occurrences known since 1950s Access for exploration companies difficult in past due to restrictions imposed by traditional owners Access for exploration companies difficult in past due to restrictions imposed by traditional ownersBUT Recent access approved through structured agreements with well organized land councils Recent access approved through structured agreements with well organized land councils Rapid exploration success initially by Western Mining Corporation Rapid exploration success initially by Western Mining Corporation

3. LOCATION - LITHOSPHERIC TRIPLE POINT JUNCTION Redstone Resources 7300km 2

4. GEOLOGICAL HISTORY OF WEST MUSGRAVE Probable Archaean or Palaeoproterozoic lithosphere Probable Archaean or Palaeoproterozoic lithosphere ca 1600 – 1300 Ma amphibolite to granulite facies para- and ortho-gneisses Protoliths metamorphosed during Musgrave Orogeny ca 1200 – 1120 Ma Protoliths metamorphosed during Musgrave Orogeny ca 1200 – 1120 Ma Emplacement of Bushveld-scale layered Giles Complex at ca 1080 Ma at 33 – 16 km depth: most abundant rock types are olivine gabbronorite to gabbronorite and troctolite Emplacement of Bushveld-scale layered Giles Complex at ca 1080 Ma at 33 – 16 km depth: most abundant rock types are olivine gabbronorite to gabbronorite and troctolite Subsequent emplacement of smaller more-fractionated, shallow-level mafic intrusions: no published ages Subsequent emplacement of smaller more-fractionated, shallow-level mafic intrusions: no published ages Later emplacement of A-type granites: roughly same age as Giles Complex probably ca 1078 Ma Later emplacement of A-type granites: roughly same age as Giles Complex probably ca 1078 Ma

5. OUTCROP MAP OF WEST MUSGRAVE - GSWA

6. MUSGRAVE – MINERAL OCCURRENCES MULTIPLE MINERALISATION STYLES WITH WORLD-CLASS ANALOGUES

7. MUSGRAVE – CONCEPTUAL MODEL Babel Nebo Wingellina 50 km

8. 90% of Region Covered by Shallow Sand, Calcrete and Colluvium, Limiting Exploration in the 50s and 60s OPPORTUNITY – GEOCHEMISTRY

9. GEOLOGY OF NEBO & BABEL DEPOSITS From Seat et al (2007)

10. 3D MODEL OF NEBO & BABEL DEPOSITS From Seat et al (2007)

11. CROSS SECTION THROUGH NEBO SHOWING MASSIVE SULPHIDE From Seat et al (2007)

12. GEOCHEMISTRY OF NEBO & BABEL DEPOSITS SHOWING HIGH Zr (HIGHLY FRACTIONATED)

13. MUSGRAVE – BLACKSTONE “SATURN” Babel Nebo Wingellina 50 km

14. GEOCHEMICAL TARGETS BLACKSTONE/TOLLU GEOCHEMICAL TARGETS BLACKSTONE/TOLLU 10km Titan North Cu

15. 5km

16. INSTANT GEOCHEMISTRY - XRF

17. HALLEYS Cu GEOCHEMISTRY AND AEROMAGNETICS (RMC FARM- IN) 1 km > 500ppm Cu > 300ppm Cu > 200ppm Cu > 120ppm Cu

18. PGE GEOCHEMISTRY OF HALLEYS GOSSAN PGE GEOCHEMISTRY OF HALLEYS GOSSAN

19. DRILLING RESULTS - HALLEYS Large thickness (>74m) of disseminated Cu-PGE rich sulphides in fractionated Zr rich intrusion 50m

20. ANALOGY WITH PLATREEF OF BUSHVELD COMPLEX Adapted from Kinaird (2005)

21. LAYERED INTRUSION DEPOSIT STYLES

22. INTERPRETATION OF HALLEYS RESULTS Nebo-Babel system high Ni:Cu ratio (1:1 for disseminated and blebby type ores, higher for massive sulphide - Seat et al. 2007) relative to Halleys Ni:Cu ratio of 0.2:1Nebo-Babel system high Ni:Cu ratio (1:1 for disseminated and blebby type ores, higher for massive sulphide - Seat et al. 2007) relative to Halleys Ni:Cu ratio of 0.2:1 Halleys may represent fractionated high tenor sulphide system in high flow-through zone along discordant margin of Saturn intrusionHalleys may represent fractionated high tenor sulphide system in high flow-through zone along discordant margin of Saturn intrusion More Ni-rich sulphides potentially to the northwest along the marginMore Ni-rich sulphides potentially to the northwest along the margin

23. CONCEPTUAL MODEL – PLAN VIEW OF SATURN Younger Fractionated Intrusion S - Saturated Older layered Intrusion S – Unsaturated

24. CONCEPTUAL MODEL B Section A Concentration of sulphide droplets on intrusion margin – turbulent flow zoneConcentration of sulphide droplets on intrusion margin – turbulent flow zone Partial crystallization of Fe-Ni rich MSSPartial crystallization of Fe-Ni rich MSS Continued flow of residual Cu- PGE rich sulphide liquid along intrusion marginContinued flow of residual Cu- PGE rich sulphide liquid along intrusion margin Progressive deposition along flow through zone (Halleys, Titan etc)Progressive deposition along flow through zone (Halleys, Titan etc) Main Ni-Cu-PGE sulphide deposit lower in the intrusionMain Ni-Cu-PGE sulphide deposit lower in the intrusion Cu PGE Cu Ni PGE Ni Cu PGE

25. MODEL – IOCG (Fe-OXIDE Cu-Au) MODEL – IOCG (Fe-OXIDE Cu-Au) WORLD-CLASS POTENTIAL

26. STRUCTURAL / INTRUSIVE CORRIDOR

27. COMPARISON OF WEST MUSGRAVE & CARAJAS GEOLOGICAL SETTING ANALOGOUS TO WORLD-CLASS CARAJÁS IOCG PROVINCE WEST MUSGRAVE CARAJÁS PROVINCE - BRAZIL

28. Coincident bull’s-eye gravity and magnetic high Geophysical response similar to Olympic Dam and Prominent Hill COINCIDENT GRAVITY / MAGNETIC ANOMALY OLYMPIC DAM ANALOGUE GRAVITY IMAGE OLYMPIC DAM BAGGALEY HILLS – Cu-Au (IOCG) or Ni-Cu BAGGALEY HILLS – Cu-Au (IOCG) or Ni-Cu GRAVITY IMAGE BAGGALEY HILLS

29. DETAILED AEROMAGNETIC SURVEY BAGGALEY DETAILED AEROMAGNETIC SURVEY BAGGALEY 10km

30. BAGGALEY HILL IRON OXIDE COPPER GOLD TARGETS (IOCG) OVER DETAILED TMI AEROMAGNETICS BAGGALEY HILL IRON OXIDE COPPER GOLD TARGETS (IOCG) OVER DETAILED TMI AEROMAGNETICS 5km

31. SUMMARY West Musgrave is one of the last frontiers for exploration in Australia West Musgrave is one of the last frontiers for exploration in Australia It is a unique tectonic environment at the triple-point junction of three cratons It is a unique tectonic environment at the triple-point junction of three cratons Despite limited exploration, potentially world-class Ni-Cu-PGE sulphide deposits and Ni laterite deposits are already known Despite limited exploration, potentially world-class Ni-Cu-PGE sulphide deposits and Ni laterite deposits are already known Recent high-resolution aeromagnetic data define a structural corridor in which discrete subcircular intrusions of fractionated basic magma and A-type granite magmas were emplaced Recent high-resolution aeromagnetic data define a structural corridor in which discrete subcircular intrusions of fractionated basic magma and A-type granite magmas were emplaced This coincides with a lack of exposure with thin regolith cover This coincides with a lack of exposure with thin regolith cover

32. First Pass exploration by Redstone identifies numerous geochemical anomalies above thick zones of disseminated magmatic sulphides (on ground since August 2006) First Pass exploration by Redstone identifies numerous geochemical anomalies above thick zones of disseminated magmatic sulphides (on ground since August 2006) Further exploration is expected to confirm the potential of the West Musgrave for magmatic Ni-Cu-PGE and IOCG deposits Further exploration is expected to confirm the potential of the West Musgrave for magmatic Ni-Cu-PGE and IOCG deposits SUMMARY