BRR - Straight from the source

GRANT KENSINGTON, MANAGING DIRECTOR OF AUGUR RESOURCES LIMITED (AUK)

“Excellence in Mining and Exploration Project”

http://www.brr.com.au/event/51326

WEDNESDAY, SEPTEMBER 17, 2008, 5:30 PM

            AUK     Thanks very much. James.

10                    Thank you for the opportunity to present to you about Augur Resources.  We just for a bit…we got the disclaimer, I’ll take it as being read.  I’ll make some forward looking statements and this isn’t an offer to buy shares.

                        Just a brief overview of Augur Resources’ structure, we have five people on

15                    the board from a mixture of backgrounds.  Peter Bradfield is the chairman.  He’s had managerial experience at executive level with ERA and with Elders Resources.  Joshua Rogers is out of the finance industry.  Tully Richards is a well-known geologist in Central New South Wales and Kimikazu Yoshioka is our representative of our major shareholder, Ichiya Limited.

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                        Our share price range over 2008, as I guess being impacted a lot by the credit market.  We’re down at a rate about 6 cents at the moment, been up to 18.  We listed in October 2007, so been around for a relatively short time on the ASX but the company itself has been active since about 2003.  As I said,

25                    our main shareholders are Ichiya, they are a Japanese retail background and we’ve a number of overseas investors including Dragon Securities out of Hong Kong and HSBC out of England.  Our top twenty shareholders hold over 85% of the stock. Cash at 30 June was about $1.8 million.  We had $500,000 which we’ve loaned to a third party, which has outstanding net so

30                    basically, about $2.3 million in the bank at end of June.

                        I’ll just run through briefly through our philosophy in…. we’ve got four mantras which are worked by with regards to Augur and how are we progressing.  The first one is location, location, location, and what I mean by location, location,

35                    location is number one, is the region in which we explore and we want to be in an environment in which we know that when we spend our dollar every foreign investment that we mine that becomes operational that we can actually get our money out of it and we can return that to investors.  The second location is all about infrastructure, making sure that we have got

40                    projects primarily that have the significant dollar infrastructure in place so close to railway lines, close to roads, water sources, and energy.  The other location, third location was all about geology making sure you’re on the right environment.

45                    From the old MIM days, “grade is king” and I’ll add to that “but size matters”. I think that that has been our focus as to get up to a resource which has a good grade and has potential for good size, and then obviously has an impact on economics of many deposit that we develop.

                        Third mantra is the “I and the three G’s”.  It’s not a rock band but the “I” stands for the investors, the first G is for geology, next one is geochemistry, and then geophysics.  Augur Resources, we’re covering off on all of those three G’s.  We’ve got experts in both …..are in geology, geochemistry, and

5                      geophysics working for our organization.

                        The fourth mantra is “geology is great” but at the end of the day it’s maximising investment returns which is the name of the game.  I’ve seen a lot of projects been developed who has got fantastic geology, but because of

10                    the scope size, the location, they were never ever going to get up off the ground and I think that that’s one of the mantras that I’m pushing through our organization is that at the end of the day, we’re in here about making a buck for our investors.

15                    Our strategy is quite straightforward.  Our focus is on copper, gold, nickel, molybdenum, and there are some associated minerals with these deposits that we’re chasing at the moment. The area we’re focused at the moment is in the Lachlan Fold Belt in New South Wales. We’re only a small organization.  We want to keep ourselves focused and we want to keep our

20                    costs as effective as possible and get us much money into the ground as possible.

                        So we’re looking at value adding and developing, copper, gold, molybdenum, and nickel projects in a timely manner using our expertise and expert

25                    personnel from outside the organization and advanced techniques.

                        I’ll run you through our key projects.  Primarily, I’ll just discuss two of them today.  The first is Yeoval and the second what we call Arena which I’ve highlighted in blue.  Yeoval is about 30 km south of Wellington or about 80

30                    km north of Orange.  It’s in the triangle with Cadia Ridgeway, North Parks, and Yeoval making up the third part of that triangle.  It’s adjacent to Copper Hill, so it’s in a good neck of woods with regards to geology.  Fantastic neck of the woods with regards to infrastructure and obviously it’s in a geopolitical  side there.  So I’ll run through there on first Yeoval Project is primarily a

35                    copper, gold, molybdenum, plus silver.  It has been around for a little while but previously the exploration was looking for near-surface mineralization.  There’s a high occurrence of copper and gold at surface in this area and historically, it has been worked for high-grade gold with plus ounce deposits.  We’ve got a very large perspective area of 147 sq km on this particular

40                    project area and as I said earlier, it’s in a good neck of woods with regards to world class deposits in close proximity.

                        This is a picture of airborne magnetics covering the Yeoval area.  There’s a black outline showing the tenement area. The white dots are mineral

45                    occurrences or prospects that have been looked at historically or had been looked at more recent times.

                        This is covering an area of granite aurite and the large red area is high in magnetic signature where it goes into a yellow and orangey color is a low magnetic signature, and our interpretation is that a large percentage of this area here is showing signs of alteration. When we go out into the field and we start walking around and see what’s on the ground, what we notice is that where that yellow and orange colouring is in the magnetics it’s associated

5                      with copper staining at surface, the rocks are outcropping.  So the strike length of that area is about 18 km, it’s about 10 km wide, so a significant area.  It’s had a lot historical occurrences on it and our aim is to build up a resource at one, if not more, prospects within this main Yeoval Project area.

10                    We’ve identified a number of areas which are highly prospective.  Our key areas are really Yeoval Mine, Goodridge Mine, and Cyclops.  Each one of these has had some previous drilling in the past with significant copper intersections and in some cases particularly down at Goodridge with gold intersections.

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                        I’ll talk today about a Yeoval mine prospect, which has been our key prospect since listing, it was really what the company was listed on. This picture here gives you an outline or an idea about what sort of topography we’re dealing with.  There are very gentle rises.  There’s a sealed road within about

20                    2 km over here.  There’s a river system very close by, there’s a planned gas pipeline which will be on the edge of the tenement.  So infrastructure-wise, it’s in a fantastic location.

                        I little bit of history about Yeoval mine.  It was mined briefly very sufficiently

25                    back in the 1800’s or 1900’s. Their first phase of real modern exploration occurred with North Broken Hill-Hastings in the 1970’s, in 1971 to 1973’s.  Holes were drilled in the prospect and North Broken Hills target was actually large tonne copper.  They weren’t necessarily interested on the gold.  They didn’t analyse for gold in all the holes and they were very selective and

30                    where they analyse for gold.  Even our gold was none on the area,  North Broken Hill concluded that there were high grades within Yeoval or the possibility of high grades within Yeoval, but no further drilling was ever contemplated or undertaken since 1973 within the Yeoval mine prospect.  You have to understand that porphyry at this state weren’t very well

35                    understood within New South Wales.  Possibly the only other porphyry discovery in the eastern seaboard of that particular time was Copper Hill, and this is prior to North Parks and prior to Cardia, prior to Ridgeway.  So, obviously I’ll understand that porphyry deposits has increase substantially since the drilling exercise that was undertaken by North Broken Hill-Hastings.

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                        Another part or another issue to raise here is that the focus in previously…. certainly by North Broken Hill was on exposed areas not on the shallow areas of shallow cover. This is quite critical for where Augur’s going and I’ll explain a little bit further later on about why this is so critical.

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                        Just to give an outline of where we’ve been drilling. We have been doing some diamond drilling over the past three to four months and we’ve released some of those results out to the market.  We’re still waiting on some additional results.  If you have a look at the diagram that’s there at the moment, the black holes are really Indicated or indicating historical drill holes of Hastings and North Broken Hill, and are principally concentrated on the western edge of the Yeoval Mine prospect.  The red holes are Augur drill holes for 2008, and as I said these are the first holes that have gone back into

5                      this prospect since 1973.  Of note and of interest is hole 17, YA017, down here in the southeast, that’s about 280 m away from where anybody have previously drilled and I’ll talk a little bit about that once we see some of the results, but it’s quite critical. It’s out in the cover area,  basically, about 3 m of cover that’s got some fairly significant results for us.

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                        Overall, over the last couple of months these are some of the better intersections that Augur Resources has achieved out of the Yeoval Mine prospect.  What’s of interest, I should highlight, is that the best results that North Broken Hill got were about 43 m at 0.91% copper. As you can see

15                    from these results, we’ve been able to show that there’s significantly high concentrations of copper, gold, silver, and molybdenum and what was previously thought.  Part of the issue with molybdenum when we twinned the hole, we believe it is in the analytical process that simply back in the 1970’s molybdenum was a difficult element to analyse for and we’ve pretty came on

20                    what we’re getting at the moment, but we’re getting some very high-grade zones.

                        I’ve highlighted this in schematic, basically, they read the highlight in the high-grade zones.  We were chasing 6 million tonnes at around about 1%

25                    copper equivalent, and what we’ve seen is that we’ve got at least two high-grade zones within the prospect, what we called the Western and the Eastern Mineral zone.

                        I just get back to 17 down in here, it’s possibly showing that there’s a third

30                    zone.  This particular hole went through about 290 m of 0.1% copper, 0.1% gold, and there’s no drilling around it so we’ve put in another hole which has got similar geology.  We went back for the geochemistry.  As I said, it’s under shellac cover. As soon as went through that 3 m of cover we’re going to visible gold and copper staining.

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                        So in the next six months we’ll define our JORC Resource for Yeoval and we’ll get that out into the market in first quarter of 2009.  We’ll conduct some moly element analysis and define some further targets.  There are some concentrates of  work around that southeast area to get an idea of the size

40                    and we’ve advanced  the Goodridge Mine and Cyclops.

                        Just quickly go through Collerina, Collerina here is about 50 km south of (inaudible) (00:15:44) near Cobar.  It’s got what…our Homeville deposit on it.

45                    The Collerina tenement, just to give you a brief overview, is it’s got perspective for gold, copper, and nickel-cobalt.  Our deposit is 12.2 tonnes at 0.91% nickel and 0.06% cobalt, as you can see how as I present this very good prospect that that resource will get upgraded.

                        Looking at the Homeville deposit at south, it’s currently got a 110,000 tonnes of contained nickel, 7,000 tonnes of cobalt.  There are numerous holes that ended up in greater than 1% nickel.  We’ve only tested about 28% of the associated magnetic anomaly, so there’s a strong possibility of upsizing on

5                      the resource.

                        Just shows you…just the blue sign is showing the extent, over 1,300 m, of where mineralization actually sits.  The red-colored holes are where the high-grade was still at the end of the holes.  Mineralization comes to surface, so

10                    very easy mining, extends to about 50 m in most cases.

                        This is the shot of the magnetic anomalies.  The Homeville anomaly as I said is about 4.6 km long, area tested is small proportion of that.

15                    Just summing up, we have a going to Yeoval, we’ll continue the exploration but we’re also get the resource out in early part of 2009, and our expectation is to commence a pre-feasibility in late 2009.  In Homeville, we’ll continue exploration.  Obviously, there’s a bit more of drilling there to do to get the resource extended and we expect an upgrade of the resource sometime in

20                    early part of 2009 and we’ll commence… likely to commence in the pre-feasibility sometime in early part of 2009 as well.  Goodridge, continue exploration and look for a resource coming out in about second half of 2009 as with Cyclops.

25                    That’s my presentation and thanks very much.  I guess the message is that all goes well for Augur Resources.

INTERVIEW CONCLUDED

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