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DIRECTORS’ REPORT
Annual Report 2015 69
Directors' report
30 June 2015
Operating and financial review (continued)
• Beachcomber and Salt Creek Joint Ventures - During FY2015, the Company entered into two joint ventures with
AngloGold Ashanti whereby it has the right to increase its interest in certain tenements from 30% to 70% by
spending an aggregate of $6 million over 4 years. The Beachcomber JV comprises five tenements at the southern
end of the Tropicana JV footprint covering approximately 140km
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and the Salt Creek JV covers eleven tenements
on the eastern margin of the Tropicana JV footprint covering approximately 2,300km
2
. The Company withdrew from
the Beachcomber JV on 25 June 2015 and the tenements reverted back to the Tropicana JV.
The Salt Creek JV is targeting mafic intrusive related magmatic nickel-copper sulphides, which is a similar style of
mineralisation to Sirius' Nova-Bollinger. The initial exploration work programme will continue through the remainder
of calendar 2015.
• Jaguar Operation Exploration - Exploration activities at the Jaguar Operation focused on in-mine, near-mine and
regional exploration.
The Jaguar Operation is currently focusing its in-mine exploration activity on seeking additional resources at depth
at Bentley and near-processing plant deposits. At Bentley work is also focused on in-fill drilling on the Arnage and
Flying Spur lens in order to enhance resource definition with a view to achieving incremental increases in mine life
at the Bentley deposit.
In terms of regional exploration, the Jaguar Operation covers 50km of strike prospective for the discovery of VMS
deposits. It encompasses three known high grade zinc-copper-silver-gold deposits: Teutonic Bore (inactive), Jaguar
(mining completed in FY2014) and Bentley (in production). Ongoing exploration has identified a number of high
priority areas and exploration activities during FY2015 have been focused on the Triumph Prospect, approximately
5km north of the Jaguar processing plant. Drilling at Triumph has identified disseminated, stringer, semi-massive
and massive base metal sulphide mineralisation with a shallow southerly plunge which extends over a strike of at
least 450m. Drilling to define the continuity and extent of mineralisation is ongoing.
• Darlot JV (IGO Manager and earning 70% - 80%) - During FY2014, the Company entered into a joint venture on the
Darlot Project, held by Enterprise Metals Limited. The Company is earning a 70%-80% interest in the project which
covers some 740km
2
of tenure approximately 60km north and along-strike from the Group’s Jaguar Operation. The
Darlot Project, which covers similar volcanic stratigraphy to the Jaguar Operation, has strategic value to the Group
as any base metals discoveries are potentially within economically viable trucking distance of its Jaguar processing
facility. Late in FY2015, an aircore program comprising 106 holes for 4,968m tested the Jarrah Well and 20ft
prospects. Earlier wide-spaced aircore drilling at these prospects last year outlined anomalous base metals and
VMS pathfinder geochemical responses associated with black shale horizons. The current program was designed
to infill and extend previous drilling to generate targets for follow-up deeper RC and diamond drill testing. Results
are in the process of being evaluated.
• Long Operation Exploration - During the financial year, exploration activities at the Long Operation have focused on
in-mine exploration with a view to growing the resource base and extending mine life. The Long Operation is
currently focusing its in-mine exploration activity on Moran South and McLeay South.
• Stockman Project - 100% owned - The Stockman Project is located in Eastern Victoria, 460km by road north-east of
Melbourne. The proposed project is on mining tenements approximately 19km east-south-east of Benambra in the
East Gippsland region. The project encompasses two copper-zinc-lead-silver-gold VMS deposits, Wilga and
Currawong, which were discovered in 1978 and 1979. The larger Currawong deposit is intact, whilst a core of
copper-rich ore from the Wilga deposit was mined and processed onsite between 1992 and 1996.
The scope of the Stockman Project encompasses concurrent development of the two underground deposits to feed
a central 1.0Mtpa differential flotation concentrator that could produce approximately 150,000tpa of copper and zinc
concentrates over a project life of approximately ten years. The development includes recommissioning the Wilga
underground mine, a new Currawong underground mine and construction of a process plant and infrastructure.
The existing tailings storage facility will be expanded for use by the project, whilst water will be sourced from either
local onsite sources or, if required, off-site.
On 28 November 2014, the Company announced the results of an optimisation study on the Stockman Project that,
among other things, included an updated Ore Reserve estimate for the project.
This review should be read in conjunction with the financial statements and the accompanying notes.
Independence Group NL
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