BRR - Straight from the source

MR. BERNARD ROWE, MANAGING DIRECTOR OF GLOBAL GEOSCIENCE LIMITED (GSC)

“Latin America eConference”

http://www.brr.com.au/event/51818

FRIDAY, SEPTEMBER 26, 2008, 2:20 PM.

            BRR    Hello.  This is Bernard Rowe, Managing Director of Global Geoscience, and I’m going to give a presentation on our activities in Latin America for the Latin

10                    America eConference.

                        First slide -- Global Geoscience, Greenfields Exploration in the World’s Best Mineral Provinces, as that suggests, we are a company that conducts Greenfields exploration targeting some of the best mineral provinces in the

15                    world.

                        Next slide -- just some disclaimer information, important notice, that I urge people to read through if anyone is looking at this presentation.

20                    Next slide -- a bit of background on the company or corporate profile. We’re listed on the ASX with a ticker code of GSC.  We are fairly recent listing came on the 19th of December 2007 after raising $3.2 million in our IPO.  We have just over 31 million shares on issue.  Of those 31 million, approximately 6.2 million are held by the directors.  We have just over 28 million options on

25                    issue and those options are 25 cents option, and they expire in August 2012.  Based on the shares on issue and our trading range in the last few days we’re capitalized at approximately $2.3 million.  We’ve got cash in the bank of $2.6 million.  So obviously, market cap is currently below our cash value.  The Board of Directors is made up of Robert Reynolds, he is the Chairman; 

30                    myself, Bernard Rowe, I’m the Managing Director; Peter Nicholson is an Executive Director and Patrick Elliott is a Non-Executive.

                        Next slide, please -- some of those names you may have heard of before. Just briefly stepping through them.  Robert Reynolds is our Chairman.  He is

35                    also the Chairman of Avoca Resources and he’s a former Director of Delta Gold, vast amount of experience in the mining and exploration finance industry; myself, Bernard Rowe, I’m the Managing Director of Global Geoscience.  I have 20 years exploration experience in gold, base metals, diamonds in Australia, North America, Scandinavia, and Western Africa.

40                    Peter Nicholson is the Technical Director.  Peter has over 30 years, gold and base metal exploration experience, particularly in the Northern Territory of Australia but also international.  He was involved in the discovery or Resource increases at the Tanami, Gecko, Argo, Woodcutters, Cosmo Howley, the Endeavor Mine, and Chorobal in Peru.  Patrick Elliott is a Non-

45                    Executive Director and Patrick is a Director of a number of other listed companies including Crossland Uranium Mines and Argonaut Resources.  Again, a vast amount of exploration, mining, finance related experience.

                        Next slide – So Global Geoscience’s exploration strategy is shown on the slide and firstly, we aim to identify and acquire early-stage exploration projects in key mineral provinces around the world that display the potential to host large high value mineral deposits.  Part of the focus in those areas is

5                      because, obviously, those areas have enormous potential, but they are also areas where many other companies are active and we can attract joint venture and farm in top interest in our projects by being involved in exploration in those terrains.  Second part of the strategy is to rapidly advance the projects to the drill stage.  So, not only do we identify and

10                    acquire these early-stage projects, these Greenfields projects, but we actually get down on the ground and work them up to a drill stage and we try and do that as quickly as we can, and we’ve got a small but very experienced team of exploration geologists that allows to do that.  We aim to attract external funding at an appropriate stage to accelerate exploration on any one of our

15                    projects.  So that may mean funding to take us through a drilling program but the company is also… has enough funding to go into a drill program in its own rights.  So various as I say, at appropriate stage of a project we will look for external funding.  We also aim to continue our project generation activities and the reason for that is that we think that’s where we have a competitive

20                    edge and there’s some benefits being involved in early-stage exploration, the most obvious one being the tremendous leverage that it gives in project and the valuation of a project.  So we aim to continue those activities.

                        So just an overview of our exploration projects, we’ve mentioned that we’re…

25                    these are Greenfields projects but they are in provinces that host world class mineral deposits. We have a porphyry focus in the Americas.  All of the projects in the portfolio have been found using Global’s exclusive targeting IP, intellectual property, that is and I’ll just briefly mentioned that in a minute.  The projects are wholly owned and are covered by granted tenure, in most

30                    cases.  It’s limited to no previous exploration in these areas, so they are true Greenfields projects. Some of the tenements though have a 2.5% Net Smelter Return Royalty payable.

                        Exploration projects overview …so as I mentioned previously, the Greenfields

35                    exploration projects that are located in provinces that host world class mineral deposits is where we’re focused.  We have a porphyry focus in the Americas and you’ll see that as we look through a couple of projects in Latin America.  All of our properties have been identified using Global’s exclusive targeting intellectual property, IP, on the slide.  That’s a method that we use to identify

40                    areas that we consider to have increased prospectivity and then we target those areas for intensive exploration. It’s a method that’s being developed in-house and as far as we’re aware, we’re the only company that’s using this IPs to generate our exploration projects.  The projects are wholly owned and they’re covered by granted tenure, in most cases.  Limited to no previous

45                    exploration, so there’s plenty of scope for our future activities on these properties.  There’s a 2.5% Net Smelter Return Royalty payable on some projects.  Potential for huge upside, that comes with the fact that these are Greenfields exploration projects that have had very little previous exploration.  We have the ability to self-fund these projects as I’ve previously mentioned or advance through farm-out joint venture, etc., and along the lines of the latter then we’ve recently signed an agreement with Inmet Mining on one of our projects in Mexico.

5                      Next slide -- okay so, just looking at an overview of all our exploration projects which I’ll flick through very quickly.  The first couple are in Latin America and there’ll be the ones we would be discussing.  So we have in Peru, porphyry and epithermal targets, gold, copper, silver, and Mancha Pampa is the main project area there where we have already defined some drill targets.  In

10                    Mexico, we have a copper-moly-gold porphyry target located in the Sonora District of Northern Mexico and that’s subject to this recent agreement with Inmet Mining, so Inmet are earning, you know, on that project.  I’ll just skip through the others.  They’re not in Latin America.  We have a couple of gold, silver projects in Nevada, copper-gold project in Queensland where we’re

15                    seeking a joint venture partner to fund  future exploration.  We’ve got a couple of base metal projects in New South Wales.  Similarly, we’re not doing any work on those ourselves at present, and we have a couple of diamond projects in Alberta and Saskatchewan in Canada where we’re seeking a joint venture partner.  So there’s quite a spread of projects but that’s in line with

20                    the strategy of the company of doing these grassroots project generation work and then advancing these projects or a combination of self-funding and joint venture participation.

                        Next slide -- So just looking at our Latin America projects, in Peru, we have

25                    the Mancha Pampa project.  It’s a porphyry-style of mineralisation, large copper-gold geochemical anomaly.  There’s no evidence of any previous exploration and we considered this to be a significant potential for large tonnage copper-gold mineralisation at that prospect.  The second project in Peru, which I’ll be discussing  today, Lavanderos, in the northern part of

30                    Peru.  Again, it’s a porphyry copper-moly targets.  It’s in a well-established mineral district of Northern Peru, Pierina and Anatamina, are the two major deposits that are in this district.  At Lavanderos, we’ve identified those zoned copper-moly-zinc geochemical anomaly coincidental with an area of an extensive alteration.  In Mexico, the Los Graceros project in the Sonora

35                    District of Northern Mexico, again a porphyry copper-moly target, well-established mineral district.  Some of the deposits better known ones are La Caridad, Cananea, El Creston, Washington; they are all porphyry deposits in Northern Mexico.  We’ve defined the zoned geochemical anomaly at Los Graceros.  The target area is under cover and that project is subject to the

40                    recent agreement with Inmet.  So just looking at the location of our projects in the Peru, major porphyry deposits are shown on this map as red stars.  There’s a volcanic belt that runs down the west coast of South America through in this case Ecuador, Peru into Bolivia or in Chili and other two projects Lavanderos in the northern part of Peru and Mancha Pampa in the

45                    sort of, central part of Peru as shown there.  I guess the thing to point out on this map is that there is a little bit wide but the distribution of porphyry deposits along this volcanic belt and generally those porphyry deposits occur fairly close to the margins of the volcanic belt at Mancha Pampa and Lavanderos are similar in that respect.

                        Next slide -- similar sort of map that’s showing the major porphyry deposits of Mexico and into Arizona or New Mexico.  I mentioned a couple of deposits here before around Los Graceros, to the north of is La Caridad and Cananea, large porphyry deposits.  The map on the left shows the known porphyries as

5                      pink squares but only those that have a resource, past and present, of greater than 1 billion tonnes are shown there, and the very large ones, but you can see our Los Graceros tenement project sits in the southern sort of trend of the porphyry deposits.  The map on the right, smaller map shows a more localized view of the Los Graceros and there are a number of other

10                    porphyries including El Creston and Washington that are within 30 km or 40 km of our Los Graceros project.

                        So just looking specifically our projects now,  Mancha Pampa in Peru.  Some of the characteristics of this prospect, firstly, I should point out that this

15                    was identified using our in-house targeting methods.  There was no evidence of any previous exploration in this area.  So as far as we are aware this is a new discovery and completely untested.  So we’ve identified a highly altered and mineralised porphyry intrusive.  That’s the main target there.  This area is located 150 km southeast of Lima and 20 km east of the town of Yauyos. 

20                    There’s a new road going in and so we have road access within a short distance of the main prospect area.  Our work has identified a 600 m x 400 m copper zone in soils and rock chips.  Within that zone, the soil values, we’ve had return up to 2.2 g gold, 23 g per tonne silver and 0.3% copper.  Within so… there are some very high, obviously some very high soil numbers there. 

25                    Overall, the copper zone now is more in the order of plus a couple of 100ppm copper but with a higher zone of plus of 1,000ppm copper in the soils.  Rock chip samples that we’ve collected within that copper zone average about 500ppm copper but have been found to be up to 2.6% copper in rock chips.  The property is 100% owned.  We have 125 or thereabouts sq km of

30                    tenements.  Some of those are still in application stage but the tenure it covers, the main prospect, has been granted.  There’s no evidence of previous exploration and we’re at the drill stage where we’ve defined some targets for drill testing and we’ve been planning and preparing for drilling program.

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                        Just a map showing the Mancha Pampa prospect, this map shows, on a geological base, the results of how surface geochemical samplings.  So the brown-coloured zones here are andesitic and andesite volcanic rocks, so quite a good favourable, sort of, host rock for the style of mineralisation.  The

40                    pink shows a porphyry intrusive and then the sort of the pale buff colour in the sort of southwestern part of the map represents younger cover alluvial and glacier sediments, so cover rocks and cover sediments sitting on top of the prospective rocks.  The soil geochemistry there is shown in the squares and you can clearly see there’s a zone on the eastern side of the map there

45                    where we have the red squares which are greater than 750ppm copper in soil.  The yellows are greater than 120, so that’s the zone that we’re talking about as our main copper zone with the higher copper numbers shown in the red squares.  Most of that porphyry is altered and that’s shown with a sort of a cross-section there is being potassic and silica alteration.  Obviously, the porphyry intrusive is…we think anyway has been offset by some faults and it’s a little interpretive but there are some evidence of some offset.  But the main target area is the central area on the eastern side of the map where we have high soil geochemistry.  Not only do we pointed out before but in

5                      addition to the high copper numbers in the soil and rock chips, that zone also has some quite high gold and silver and in soils and rock chips.

                        Next slide is the Lavanderos project also in Peru. This is located in the northern part of Peru.  As I mentioned before, it’s in a well-established mining

10                    district of Northern Peru.  The work that we’ve done there to date has identified a very anomalous copper-moly-zinc stream sediment anomaly coincidental with a large zone of alteration and skarn development.  We’re targeting a porphyry skarn-style of mineralisation.  The area, we believe, is quite under-explored.  We have two tenements that are shown on the map

15                    there that are 100% owned.  They cover an area of about 12 sq km and those tenements are granted.  The map shows that the geochemical anomalism, which is red line as shown is being 40ppm molybdenum, and the green is 100ppm copper, and the pink line which is 100ppm zinc, obviously, extends outside of our tenement to the north.  That area is a top of reserve which was

20                    not open for mineral title, so we can’t get in there nor can anyone else, but it seems to us that the strongest part of that anomaly is actually in the south, so where we have been able to have tenement coverage.  It’s quite a large geochemical anomaly.  If you look there is scale bar on the lower part of the map, 2 km scale bar there, so the inner molybdenum-copper zone is over a

25                    strike of approximately 5 km and then there’s an outer high levels of zinc anomalies and which is much larger.

                        Just putting that into some kind of context, next slide, so we have here the… just a very simple cartoon showing the Lavanderos project on the left with the

30                    geochemical anomalies shown.  The map on the right is the same scale that comes from the La Escondida porphyry deposit mine owned by BHP in Chili.  So, the blue zones are, on both maps, are greater than a 100ppm zinc in sediments.  The greens are greater than 80ppm copper and the reds are greater than 10ppm moly.  So you can see that it’s a smaller anomaly than

35                    Escondida but it’s not vastly different in scale and it shows that similar zonation of copper-moly in the central part of the zone and an outer zinc anomaly.

                        Next slide -- the Los Graceros project in Mexico.  Again, a porphyry copper-

40                    moly target and it’s located 100 km northeast of the city of Hermosillo in Sonora State of Northern Mexico. Hermosillo is the capital of Sonora.  There’s a very good road that seal (iinaudible) (00:19:36) roads from that city out to where we are, out to the Los Graceros project area.  The work that we’ve done there has identified a zoned geochemical anomaly showing in red

45                    on the map, that’s a copper-moly-bismuth zone shown as a red dotted line with an outer high low of silver-lead-zinc,  silver in blue and the tenement  area is shown in black so the zoned geochemical anomaly is much larger than our tenement, but the central, sort of core of the anomaly is covered by our tenement.  However, this is an example where the prospective rocks are actually covered by younger sediments and volcanic rocks.  So the geological map that sort of forms the base of that map… the pinks are granites which are probably not particularly prospective the more mouldy purply colours are volcanic rocks as shown on the legend, cretaceous and

5                      tertiary in age so they would be the potential hosts for this porphyry mineralisation.  Porphyries would intrude into those volcanics overlying that and younger that and hence forming a cover the pale yellow and sort of yellowy-orange colours which are, as I said, sediments and volcanics that would mask.

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                        So, the main central part of this anomaly, the geochemical anomaly and our tenement is covered by younger rocks that will mask any possible porphyry mineralisation beneath.  As shown there also is a magnetic anomaly, in a pink one with the hatching, that’s a magnetic low which may indicate

15                    magnetite destruction which commonly occurs when you have these porphyry intrusives into particularly the volcanic rocks which the alteration associated with the porphyry used alters and destroys the magnetite, so that’s an interesting target, just overall broad magnetic anomaly.  However, the key here is going to be exploring under the cover and we’ve been very fortunate

20                    in that we’ve attracted Inmet Mining of Canada to farm into this project then in Inmet, under the terms of our agreement, have the ability to earn up to 51% in this project for spending $2 million over a period of three years with a minimum in the first year of $350,000.  Once Inmet earned that 51%, Global Geoscience can contribute that 49% or has the option to convert to a 20%

25                    interest free carried by Inmet through the completion of feasibility.  So Inmet is going to be funding the exploration on this project.  They’ve indicated that they’re going to commence with IPG or physical survey that will assist them in defining targets beneath that younger cover and those targets to be tested …any targets that come out of that IPG physical survey will obviously need to

30                    be drilled to test them to get through the cover.  That work is going to start in the next month or so, the IPG or physical survey.

                        Next slide – so again, just putting that into a similar context that we did before for the Lavanderos project, again, it’s same scale, Escondida on the right, Los

35                    Graceros on the left, with copper and moly geochemical anomalies shown, the zinc and copper.  Again, the two anomalies are of the same sort of magnitude and size, so a quite favourable indication that there could be some porphyry related mineralisation beneath the cover at Los Graceros, and that’s obviously what has attracted Inmet to the project.

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                        Next slide – so in conclusion, Global Geoscience is targeting large, high value deposits in key mineral provinces around the world.  In the Americas, we, very much have a porphyry focus particularly the projects in Peru and Mexico.  We also have other projects so in Arizona.  Our projects are being advanced

45                    through a combination self-funding and farm-out joint venture so that we can afford to have perhaps a larger number of projects in our portfolio than might otherwise be the case, we intend to continue our project generation activities using our in-house targeting methods.  We think that method gives us an advantage and we intend to continue using that to work up new targets that will be assessed and advanced to a stage where again we can attract investment to accelerated programs on particular projects.  We’re a team of experienced explorers.  We have a cash balance as of the 30th June 2008 of $2.6 million, so we have plenty of money in the kitty for the coming year.

5                      We cover a portfolio of very prospective projects as just demonstrated by the recent deal with Inmet and we’re actively working those projects.

                        Thank you for your time.

INTERVIEW CONCLUDED

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