2nd April 2012
ASX Code: GXN
Global Metals Exploration NL
Jutson Rocks Greenstone Belt...the last frontier?
Capital Structure Sector
Share Price (A$)
Fully Paid Ordinary Shares (m)
Partly Paid Shares (0.0075) (m)
Opt (ex 10c, exp 30/6/12) (m)
Opt (ex 2c, exp 01/11/15) (m)
Market Cap (undil) (A$m)
Share Price Year H-L (A$)
Approx Cash (A$m)
Directors & Management Carl Swensson
Ashley Hood Kent Hunter
Non-Exec Director Company Secretary
Major Shareholders SACFM Limited <SACFM No 1 Fund>
HSBC Cust Noms (Aust) P/L
LBT Corp P/L
GT Le Page
+61 8 9488 0800
Share Price Performance
Global Metals Exploration have embarked on an aggressive exploration program on its Jutson Rocks Greenstone Belt Project (“JRGB”) which RM Research considers to be one of the last greenstone belts in the Yilgarn Province (Western Australia) that is yet to be subject to comprehensive modern exploration. A recently completed 241 hole, 50 metre x 125 metre auger drilling program has outlined two significant gold anomalies broadly coincident with major NNW-SSE structures and interpreted mafic/ultramafic sequences. The northernmost anomaly remains open to the north and south. The JRGB Project is situated approximately 125 kilometres north-east of Laverton within the north-eastern region of the Yilgarn Craton and covers over 67 kilometres of strike and 675 km2. Following additional acquisitions in 2009, the Company now controls over 80% of this greenstone belt and has negotiated successfully with the traditional owners. The JRGB also has the great Central Highway running through GXN’s principal anomalies giving it very workable logistics. Significantly, the majority of other greenstone belts so far identified in the Yilgarn are known to host significant gold deposits. Well known greenstone belts in the Yilgarn Craton include Southern Cross (10Moz), Kalgoorlie (120Moz), Leonora (12Moz) and Laverton (25Moz). Investors have taken considerable interest in the activity of ASX listed explorer Gold Road Resources (“GOR”) which recently commenced a feasibility study on its Central Bore Project (152,323 oz gold) on the adjacent Yamarna Greenstone Belt. JORC Resources now total in excess of 1Moz (Attila and Central Bore Projects) with recent discoveries (Justinian, Hann, Byzantium, Central Bore North and Central Bore South) all occurring within a 2 kilometre x 3 kilometre area. The Yarmana Greenstone belt is, in GOR’s words, potentially the “5th gold rich shear zone in the world-class Yilgarn Craton” of Western Australia (Gold Road Resources Limited, 2011 AGM Presentation). What excites RM Research is the fact that GXN is in the early phases of exploration on JRGB which could in fact represent the “6th gold rich shear zone in the world-class Yilgarn Craton”. The belt also has potential for komatiitic hosted Ni-Cu sulphides (Kambalda Style), Gabbro hosted Ni (Sudbury Style) and Cu-Pb-Zn volcanogenic massive sulphide. Previous exploration on the JRGB Project areas has been sporadic and included limited drilling by Tasminex NL during the 1969-1970 Nickel boom which intersected copper and nickel at Mt Venn Prospect (part of the JRGB Project). Subsequent speculation drove the share price from A$3.0/Share to A$96/share reaching a market capitalisation of approximately $200 million at its peak. In 2005, Helix Resources Ltd (“Helix Resources”) had a number of hits including 4 metres @ 1.3% Cu, including 2.0 metres @ 1.2% Ni. High-grade quartz vein hosted gold was identified by the State Prospecting Party in the 1920’s (Chapman’s Reward) and some reconnaissance exploration was completed by Elmina NL during the 1990’s and retuned 20.5g/t Au, 1.31g/t Pt, 3090ppm Cr & 0.769% Pb at Mt Warren and 0.10g/t Pt & 17,700ppm Cr and 0.10g/t Pt & 4490ppm Cr at Mt Cummings. Historical mining also reported average grades in the order of 54g/t gold. GXN has already identified a series of electromagnetic targets that broadly align with regional structures near the previous Tasminex site and at Jutson Rocks North, the Company has conducted a 6-8 week 3,000 metre RAB program. In addition, a BLEG program has covered around 35km2 of a previously untested area and anomalous gold values from a previous BLEG program. The Company is awaiting the results of both programs. All up GXN is synthesizing 575 rock chips, 7,300 soil samples, 970 vacuum holes, 10 diamond drill holes and around 60 RC holes. Detailed mapping is also underway at a number of the projects. At a market capitalisation of just A$2.5 million, GXN is a tremendously leveraged gold play.
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2 April 2012
INVESTMENT CASE UNDER EXPLORED GREENSTONE BELT: RM Research believes the tenements which cover over 67 kilometres of strike covering 675 square kilometres of the JRGB represent a vastly unexplored part of the Yilgarn with preliminary reconnaissance exploration providing much encouragement.
Is the Jutson Rocks Greenstone belt the “6th gold rich shear zone in the world class Yilgarn Craton”?
ADJACENT GREENSTONES ARE PROVEN PRODUCERS: Adjacent greenstone belts include Southern Cross (10Moz), Kalgoorlie (120Moz), Leonora (12Moz) and Laverton (25Moz). In addition Independence Group Limited’s (ASX: IGO) Tropicana Project (5Moz) is situated south of the Yamarna Project. GXN’s Operational Director Mr. Ashley Hood worked on the Tropicana discovery and was later head of operations on the Tropicana drill-out. GOR is currently exploring the 33 kilometre long Attila Trend (including JORC Resources of 900Koz gold) and the Central Bore Trend (incorporating a resource of ~152Koz). MULTIPLE COMMODITY TARGETS: The extensive greenstone occurrences allow for komatiitic hosted Ni-Cu sulphides (Kambalda Style), Gabbro hosted Ni (Sudbury Style), CuPb-Zn volcanogenic massive sulphide (VMS) and shear hosted gold mineralisation within meta-sediments/mafics. MODERN EXPLORATION ABSENT: The failure to negotiate access agreement with traditional owners at Cosmo Newberry has resulted in minimal modern exploration over the Jutson Rocks tenements. AGGRESSIVE EXPLORATION IN PROGRESS: GXN commenced a comprehensive BLEG geochemical sampling program in late 2011. A 3,000 metre RAB program has now followed up two gold geochemical anomalies on JRGB. FOCUSSED MANAGEMENT: Carl Swensson is a leading geologist with 34 years experience in the minerals exploration and mining industries including stints with CRA Limited and previously holding the position of Chief Exploration Geologist at Normandy Mining. The success in neighbouring greenstone belts is likely to focus managements’ attention on implementing a comprehensive exploration program at Jutson Rocks.
COMPANY BACKGROUND FIGURE 1: Jutson Rocks Project, Western Australia and its proximity to major gold deposits in the region (source: Global Metals Exploration Limited Corporate Presentation, August 2011).
Global Metal Exploration Limited ("Global Metals”, “GXN”, or “the Company”) is an exploration company focussed on mineral exploration in the Yilgarn of Western Australia. The Company listed on ASX in September 2007 based on its existing Jutson Rocks Greenstone tenements (Figure 1) raising A$3.0 million at 20c per share. During 2008, GXN acquired the Round Hill Gold Mine and the Longwoods Tops Igneous Complex Platinum project in New Zealand. The Company is now focussing on Jutson Rocks after consolidating tenements in the area. At Jutson Rocks, an agreement has been reached with the Cosmo Newberry Aboriginal Corporation, which provides for staged payments in return for access, however each phase of exploration work will require a Heritage Clearance.
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REGIONAL EXPLORATION ACTIVITY The last few years has seen considerable exploration success in greenstone belts that are proximal to the JRGB. Notable examples include GOR and AusGold Limited (ASX: AUC) which serve to underly the importance of the north-eastern region of the Yilgarn.
FIGURE 2: Global Metals tenure in relation to Gold Road Resources Limited and AusGold Limited (source: Global Metals Exploration NL Nickel Conference Presentation, October 2011).
GOR’s project incorporates 5,000 square kilometres covering >200 kilometres along the Yamarna Greenstone Belt believed by RM Research and th GOR to potentially be the “5 gold belt”. Adjacent greenstone belts include Southern Cross (10Moz), Kalgoorlie (120Moz), Leonora (12Moz) and Laverton (25Moz). In addition IGO”s Tropicana Project (5Moz) is situated south of the Yamarna Project. GOR is currently exploring the 33 kilometre long Attila Trend (including JORC Resources of 900Koz gold) and the Central Bore Trend (incorporating a resource of ~152Koz). Best intercepts from 2010/2011 included 13 metres @ 40g/t Au (Central Bore), 7 metres @ 27g/t Au (Justinian) and individual assays of up to 1,000g/t Au (Central Bore).
TABLE 1: Gold Road Resources Limited, Resources and Reserves (source: Gold Road Resources Limited AGM Presentation, October 2011).
Central Bore Project (1.0g/t) (Mar 2011)
Attila Project (0.5g/t) (Sept 2008)
Other recent discoveries have included Central Bore, Justinian, Hann Byzantium, Central Bore North and Central Bore South. In 2012, GOR is likely to increase resources at Central Bore and complete a Scoping Study in early 2012 with a view to commencing production 2013/2014 via toll treatment at Laverton.
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EXPLORATION OVERVIEW Jutson Rocks Location and Access The Jutson Rocks Greenstone belt is situated approximately 125 kilometres north-east of Laverton within the north-eastern region of the Yilgarn Craton. The project can be accessed via bitumen road to Laverton, followed by approximately 130 kilometres of good quality gravel roads to the Cosmo Newberry aboriginal community. Previous airbourne magnetic surveys and geological mapping have been successful in tracing the JRGB for approximately 60 kilometres over an average width of around 9 kilometres.
Geology and Mineralisation
FIGURE 3: Jutson Rocks Greenstone Project (source: Global Metals Exploration NL Nickel Conference Presentation, October 2011).
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The Greenstone belt, comprising greenschist-amphibolite facies intrusive ultramafics, mafics, felsics and meta-sediments, strikes broadly NNW. In this typical Archaean setting, the belt is bounded by granitoids which are in turn posted dated by several phases of deformation, known to coincide elsewhere in the Yilgarn with metalliferous mineralisation. Ultramafic lithologies (the most common host of nickel sulphide mineralisation) appear more dominant in the east with a great proportion of felsic lithologies and banded iron formations (BIF) in the west. Additionally, there exist mafic sequences throughout the project area which hold good potential for platinum and palladium. The most notable feature is a series of interpreted shears and splays that occupy the central portion of the greenstone belt (Figure 2) on which a number of gold anomalies are located.
Prospects Mt Venn (GXN earning up to 80%) & Mt Venn North (GXN earning up to 100%)
Speculation at Mt Venn helped drive the Tasminex NL share price to A$0.92 during the Poseidon boom
GXN is earning up to 80% on E38/1000 from Platina Resources Limited (ASX: PGM) in addition to applying for the Mt Venn North Project (E38/2405). The project is situated in the southern part of the JRGB project with limited systematic exploration. Jutson Rocks was a hot spot for nickel exploration during Poseidon Boom over late 1969 early 1970 nickel boom, driven in large part by the discovery of nickel in September 1969 at Windarra in the Yilgarn. At the time, nickel surged to £7,000/ton (November 1969) on the back of nickel shortages during the Vietnam war and industrial action by Canadian based miner International Nickel Company Ltd (“Inco”). Poseidon NL (“Poseidon”) shares surged from A$0.80 in September 1969 to A$280 in February 1970 falling rapidly thereafter. Tasminex intersected copper and nickel at the Mt Venn Prospect (part of the JRGB Project of GXN) with subsequent speculation driving the share price from A$3.0/Share to A$96/share, driven in part by a statement by the Chairman and Major Shareholder of Tasminex Mr Bill Singline mentioned to journalist Trevor Sykes that the project “could be bigger than Poseidon”. In 2005, Helix Resources Ltd (ASX: HLX) had a number of hits including 4 m @ 1.3% Cu, including 2.0 metres @ 1.2% Ni. HLX undertook a drilling campaign in 2005 comprising 24 drill holes totalling 3,031 metres. Once again, while the project area was only subjected to limited testing, the results were promising with HLX recording a best intersection of 4 metres @ 1.3% Cu from a shallow depth of 33 metres – with this copper rich zone interspersed with a 2 metre intersection grading 1.2% Ni (including 1 metre @ 1.8% Ni). Work at the area has also returned significant rock chip results including 8.3% Cu & 1.9% Ni. Mt Venn is considered highly prospective for gabbro complex hosted nickel-copper mineralisation and for ‘Kambalda style’ mineralisation within komatiite flows related to the area’s gabbro margin intrusions. Chapman’s Reward (GXN 100%)
Chapmans’ Reward has returned a number of high- grade gold values...previous mining returned assays of 54g/t gold
In late 2009 GXN consolidated its gold interests through the acquisition of Chapman’s Reward (P38/3880, P38/3881), a series of old gold workings on the granite/ultramafic contact and located in the middle of the JRGB. Limited mining activity recorded average grades in the region of 54 g/t Au. Gold associated with quartz veins (up to 5.0 metres wide in places) was identified in the 1920’s by the State Prospecting Party at the Chapman’s Reward prospect with individual assays up to 201g/t Au and 208g/t Au near Lang’s Rock.
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Reconnaissance exploration by Elmina NL (later Quadrant Resources Ltd) during the 1990’s retuned 20.5g/t Au, 1.31g/t Pt, 3090ppm Cr and 0.769% Pb at Mt Warren and 0.10g/t Pt and 17,700ppm Cr and 0.10g/t Pt and 4490ppm Cr at Mt Cummings. HLX farmed into the project in 2002 and discovered samples with highly anomalous results up to 8.7% Cu, 0.34% Ni and 0.14g/t pgm (Pt + Pd). Follow up drilling by HLX as part of a 24 hole, 3,331 metre program intersected 2 metres @ 1.2% Ni and 1.3% Cu from 33 metres downhole. Jutson Rocks West Project (GXN 99%) In November of 2009 GXN acquired a 99% interest in E38/2351, E38/2352 & E38/2353 situated on the western border of the JRGB from Mt Vetters Pty Ltd. Jutson Rocks (GXN 70%) The Company has earnt 70% of E38/1540 and E38/1541 from Cazaly Resources Ltd (ASX: 2 CAZ). Jutson Rocks covers approximately 320 km and comprises ultramafic, mafic and felsic rocks in addition to pyroclastics and sediments. The northern and eastern part of the project comprises mafic intrusives (gabbro, pyroxenitic and dolerites) with the western side containing mafics, and felsic volcanics and banded iron formations. A metamorphosed and deformed komatiite sequence has also been identified in the eastern part of the tenement and is interpreted to be up to four kilometres thick-a target for nickel sulphide mineralisation. The mafics are also potential targets for platinum and palladium. Mt Cornell (GXN 90%) GXN holds a 90% interest in the Mt Cornell Project (E38/1850) from Corazon Mining Limited (ASX: CZN). The project is located in the northern part of the belt and comprises layered mafic sills and ultramafics. Limited rock chip sampling returned peak values of 8.4 g/t Au, 3.2% Cu, 1.31 g/t Pt and 0.769 g/t Pd. GXN’s phase one drilling program at Mt Cornell intersected weathered mafic rocks, massive pyrrhotite and quartz veining overlying granites and mafics. Better results reported in October 2011 included MCRC021 with 4 metres @ 0.12% Cu, 0.17% Zn from 232 metres downhole within a black shale horizon.
Recent Exploration & Evaluation Recent exploration by GXN has consisted of the following:
Integration of data together with recent exploration has outlined extensive Cu, Au and Ni anomalism at Jutson Rocks
SYNTHESIS OF PREVIOUS EXPLORATION: In the process of synthesizing and integrating previous exploration (including 575 rock chip samples, 7,300 soil samples, 970 vacuum holes, 10DD holes and 60 RC holes) a total of seven new nickel targets, 13 Cu anomalies, two Cu-Ni anomalies and 25 gold anomalies have been outlined. None of these targets have been drill tested.
BLEG & SOIL SAMPLING: A total of 246 BLEG samples have been taken at a density of 2 500 metres x 500 metres covering an area in excess of 50 km .
AUGER DRILLING: A total of 991 auger holes (Figure 4) have been drilled and have outlined a total of six gold anomalies striking up to 1.6 kilometres in apparent length. The drilling also returned platinum values up to 26 ppb gold and palladium up to 40 ppb.
DEFINITION OF GEOCHEMCIAL ANOMALIES: The recent phases of geochemical sampling together with the integration of previous exploration data has given rise to the outlining of gold anomalies that are broadly coincident with NNW-SSE striking mafic/ultramafic lithologies and regional magnetic features. Two significant gold anomalies (Figure 4) namely Prospect A (Figure 5) and Prospect B (Figure 6) are earmarked for follow up RAB (see below).
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FIGURE 4: All Soil-Auger st Gold results over 1 vertical derivative Magnetic image (source: Global Metals Exploration NL ASX Announcement 24 February 2012).
FIGURE 5: Southern Prospect (“A”) Soil Auger gold results (source: Global Metals Exploration NL ASX Announcement 24 February 2012).
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FIGURE 6: Northern Prospect (“B”) Soil Auger gold results (source: Global Metals Exploration NL ASX Announcement 24 February 2012).
Further declines in equity markets could see a move out of riskier asset classes such as junior resource companies
Proposed Exploration RAB Drilling Re-Commences The RAB program that was halted in January due to Cyclone Heidi has now re-commenced, with the program doubling to 3,000m to test the extended anomalous zones (Figure 4). Depth to basement has varied from 5-60 metres with results due by mid April 2012. Bulk Leach Extractable Gold (BLEG) Program The Company is also awaiting BLEG geochemical results from a recent program that covered approximately 35km2 of a previously untested area. These samples comprised the southern extension of the May 2011 program which had provided significant encouragement.
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GOLD MARKET OUTLOOK Gold prices (Figure 7) have edged higher in recent days after dropping nearly 1 percent last month, as a slightly weaker dollar came to the aid of buyers, while sluggish physical demand and an improving U.S. economic outlook capped gains.
Recent gold price falls have been due to the stronger dollar and lack of support in the physical market
Recent U.S. housing data added to a series of numbers pointing to a steady recovery, and the reduced likelihood of further quantitative easing which helped buoy gold earlier this year. At the time of writing gold is trading at US$1,653, up US$234 YOY and down US$70 over the last 30 days. Some investors have taken money out of gold after a recent equities rally, and turned to chase higher-yielding assets with indications of a stabilizing global economy taking the shine off safe-haven assets such as gold and government bonds. There has also been some recent liquidation of gold by funds after the hopes for QE3 (third round of quantitative easing) were dashed. The recent firming US economy could see gold move lower in the near term, compounded by a stronger dollar and lack of support from the physical market.
FIGURE 7: 1 Year Gold price chart (source: www. kitco.com).
We believe the longer term outlook remains strong however it may take some time before recent gold price highs are surpassed
Investors are closely watching the U.S. debt market, an indicator of appetite for the safehaven asset. Interestingly Indonesia has recently been a big buyer of gold. High oil prices have helped underpin gold sentiment. But oil tumbled in the previous session after comments from Saudi Arabia on its willingness to meet any supply gap. SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings had slipped 0.23 percent to 1,290.247 metric tonnes (1,422.3 tons) by March 20, the first drop after staying unchanged for four straight sessions. Notwithstanding the uncertainty of short term volatility and liquidity related selling pressure and the associated move into the US dollar, RM Research believes the long term price outlook for gold is positive, driven by its relative safe-haven status and longer term momentum of portfolio diversification away from the US currency. However, if the current decline in gold prices is any indication of the next leg down of the GFC, it could be a couple years before recent gold price highs are surpassed. During 2008, by comparison, the gold price fell US$288/oz from US$1000/oz (Mar ’08) to a low of US$712/oz (Nov ’08) and did not return to US$1000/oz till September 2009, a period of 18 months. Gold subsequently rallied a massive ~US$1200/oz to US$1900/oz. The recent bull market in gold has been fuelled by the fear associated primarily with massive deficit-driven stimulus spending in the US, and the eurozone sovereign debt crisis and associated risk to global financial stability.
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CORPORATE The Company raised approximately A$250K in late September 2011 to Sophisticated Investors and in late 2011 undertook a one for nine entitlement issue of options (exercisable st at 2 cents each on or before 1 November 2015) at an issue price of A$0.004 each to raise A$172,000 (before expenses of the placement.
Further declines in equity markets could see a move out of riskier asset classes such as junior resource companies
Sole Project Focus: GXN is very much a “one trick pony” focussing entirely on the Jutson Rocks Greenstone Belt however RM Research believe exploration conducted on this extensive greenstone belt provides plenty of exploration upside..
Exploration Risk: Reconnaissance RAB drilling may not resolve surface Au, Ni-Cu anomalism outlined by earlier exploration and future exploration may be unsuccessful in identifying any significant mineralisation on the tenements. Furthermore the extensive transported cover (mostly Aeolian sand) may make exploration very expensive and mask any potentially economic mineralisation.
Traditional Owners: Relations with traditional owners at the Cosmo Newberry Aboriginal reserve may deteriorate which may make future access to the tenements problematic. Previous explorers have struggled with unfettered access over many years and this may continue to be a serious problem.
Financial Position: The Company has limited cash reserves (around A$400K) which will necessitate an equity raising within the next three to six months.
Infrastructure Risks: The isolation of the tenements and associated lack of infrastructure are likely to result in a higher threshold for any mineral deposit. The nearest processing facility (gold) is situated 125km from the tenement, increasing the reliance on the Company’s ability to discover an orebody that would justify a “stand-alone” plant.
Commodity Risks: The Company is primarily exposed to copper and gold. Copper has weakened from recent highs of just over US$10,000/tonne in February 2011, to around US$8,300/tonne, in response to the European government debt problems and the weaker growth outlook for developed economies. Gold has come off recent highs and may come under pressure as investors move back into US$ as economic conditions improve.
Market Risks: Further declines in equity markets may continue to put pressure on junior resource companies as investors switch out of “risk” into perceived safe haven investments such as cash, gold and counter cyclical equities. Our medium term view is that the risk premium has been eroded for many junior resource companies and we see near term upside.
Currency Risks: A strengthening Australian dollar (as funds flow back into riskier currencies) may make the price of copper and gold in local (Australian) currency terms less attractive. This could have negative influences on Australian copper miners however it is more relevant to producing companies.
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DIRECTORS AND MANAGEMENT Lia Darby, BA, LLB
Lia was a founding director of Proto Resources & Investments
Lia Darby was admitted to practice law in the Supreme Court of NSW but now works full-time as a mining company executive. As Executive Director of corporate advisory firm Superstructure International Pty Ltd, Ms Darby has worked in corporate advisory on listing mining securities and assisting the senior management of listed companies to improve shareholder value. Ms Darby was instrumental in founding Proto Resources & Investments Ltd and acquiring and developing its portfolio of projects. Ms Darby is the Managing Director of ASX listed Global Metals and a non-executive director of Condor Blanco Mines Ltd.
Carl was formerly Chief Exploration Geologist, Normandy Mining
Carl Swensson is a leading geologist with extensive experience, with 26 years experience in the minerals exploration and mining industries. Mr. Swensson has held senior exploration and exploration management positions with CRA Limited, Bendigo Gold Associates and Normandy Mining Limited. As Chief Exploration Geologist at Normandy Mining, Mr Swensson was responsible for the management of the exploration budget across that company’s tenement portfolio. This included exploration of the Neptune project, which later became Prominent Hill. Mr. Swensson is a Director of Condor Blanco Mines Ltd.
Ashley Hood ...includes experience with Anglo Ashanti and Independence Group
Andrew has a background in law and metallurgy...
Ashley Hood is in charge of GXN’s field operations and logistics, based in Perth, WA. Mr Hood was the Head of Operations for the Tropicana gold project in joint venture between AngloGold Ashanti Limited and the Independence Group NL. In this role, Mr Hood acquired valuable experience over a three year period in managing people, machinery, personnel and consumables in remote locations in WA. Mr Hood has been with the Company since the inception and has managed all of the Company’s native title negotiations and agreements.
Andrew Mortimer, BA, LLB, MAusIMM
With a background in law/metallurgy as well as experience in investment markets, Andrew Mortimer has experience in creating, structuring and preserving the necessary strategic alliances to build solid mining businesses with the potential for sustained growth. Mr Mortimer is currently Chairman of corporate advisory firm Superstructure International Pty Ltd, Managing Director of Proto Resources & Investments Ltd and a Director of SA Capital Funds Management Ltd.
Kent Hunter, CA
Kent is an experienced Chartered Accountant & Company Secretary
Kent is a chartered accountant with over 16 years corporate and company secretarial experience. He has been involved in the listing of over 30 companies on ASX and has experience in capital raisings, ASX compliance and regulatory requirements. He is a director of Cazaly Resources Limited, Carbon Conscious Ltd, Western Manganese Ltd, Metal Bank Ltd and is company secretary of two other ASX companies. Kent started with Hall Chadwick Chartered Accountants in 1990 and joined Ord Partners Chartered Accountants in 1995 and became Corporate and Audit Manager for a range of listed and unlisted entities. Mr Hunter founded Mining Corporate in 2000 and established a business of identifying projects requiring a route to commercialisation including industrial, technology, mining and exploration companies.
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Stars appear to be lining up...
RM Research considers that the stars are lining up with strong interest in gold, a renewed interest in under or unexplored greenstone belts together with outstanding exploration success on additional greenstone belts by the likes of GOR. With competition for exploration acreage remaining high, the consolidation of a large greenstone belt with very little previous exploration places the Company in an outstanding position...all that is needed is a little luck! Speculative Buy.
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Registered Offices Perth Level 2, 6 Kings Park Rd West Perth WA 6005
Email / Website PO Box 154 West Perth WA 6872
Phone: +61 8 9488 0800 Fax: +61 8 9488 0899
RM Research Recommendation Categories Care has been taken to define the level of risk to return associated with a particular company. Our recommendation ranking system is as follows: Buy
Companies with ‘Buy’ recommendations have been cash flow positive for some time and have a moderate to low risk profile. We expect these to outperform the broader market.
We forecast strong earnings growth or value creation that may achieve a return well above that of the broader market. These companies also carry a higher than normal level of risk.
A sound well managed company that may achieve market performance or less, perhaps due to an overvalued share price, broader sector issues, or internal challenges.
Risk is high and upside low or very difficult to determine. We expect a strong underperformance relative to the market and see better opportunities elsewhere.
Disclaimer / Disclosure This report was produced by RM Research Pty Ltd, which is a Corporate Authorised Representative of RM Capital Pty Ltd (Licence no. 221938). RM Research will receive payment of A$35,000 for the compilation and distribution of four research reports. RM Research Pty Ltd has made every effort to ensure that the information and material contained in this report is accurate and correct and has been obtained from reliable sources. However, no representation is made about the accuracy or completeness of the information and material and it should not be relied upon as a substitute for the exercise of independent judgment. Except to the extent required by law, RM Research Pty Ltd does not accept any liability, including negligence, for any loss or damage arising from the use of, or reliance on, the material contained in this report. This report is for information purposes only and is not intended as an offer or solicitation with respect to the sale or purchase of any securities. The securities recommended by RM Research carry no guarantee with respect to return of capital or the market value of those securities. There are general risks associated with any investment in securities. Investors should be aware that these risks might result in loss of income and capital invested. Neither RM Research nor any of its associates guarantees the repayment of capital. WARNING: This report is intended to provide general financial product advice only. It has been prepared without having regarded to or taking into account any particular investor’s objectives, financial situation and/or needs. Accordingly, no recipients should rely on any recommendation (whether express or implied) contained in this document without obtaining specific advice from their advisers. All investors should therefore consider the appropriateness of the advice, in light of their own objectives, financial situation and/or needs, before acting on the advice. Where applicable, investors should obtain a copy of and consider the product disclosure statement for that product (if any) before making any decision. DISCLOSURE: RM Research Pty Ltd and/or its directors, associates, employees or representatives may not effect a transaction upon its or their own account in the investments referred to in this report or any related investment until the expiry of 24 hours after the report has been published. Additionally, RM Research Pty Ltd may have, within the previous twelve months, provided advice or financial services to the companies mentioned in this report. As at the date of this report, the directors, associates, employees, representatives or Authorised Representatives of RM Research Pty Ltd and RM Capital Pty Ltd may hold shares in Global Metals Exploration NL.
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