Dreadnought Resources Owner’s Manual (an example)

1. Introduction

Dreadnought Resources Limited (ASX: DRE) is an Australian exploration and development company focused on discovering and advancing high-value mineral deposits, including copper, nickel, rare earth elements (REE), and platinum group elements (PGE). The company’s projects are primarily located in Western Australia, one of the world’s top mining jurisdictions. Dreadnought’s strategy involves identifying underexplored regions with significant resource potential, conducting thorough exploration, and progressing these projects towards production or commercialisation.

2. Corporate Overview

• ASX Code: DRE
• Market Capitalisation: ~AUD 66.1 million (as of February 2024)
• Shares on Issue: 3,479 million
• Headquarters: Osborne Park, Western Australia

Board of Directors:

• Paul Chapman - Non-Executive Chairman
• Dean Tuck - Managing Director
• Philip Crutchfield - Non-Executive Director
• Robert Gee - Non-Executive Director
• Debbie Fullarton - Chief Financial Officer

Corporate Strategy: Dreadnought aims to deliver substantial shareholder returns through the discovery and development of economically viable mineral resources. The company focuses on projects with high potential for significant mineral deposits, leveraging its technical expertise and strategic partnerships.

3. Project Portfolio

3.1 Central Yilgarn Project

• Location: Western Australia, covering approximately 1,400 km² across four greenstone belts.
• Primary Commodities: Gold, copper, nickel, and lithium.
• Key Prospects:
  • Viper: A high-priority gold target with significant historical drilling results.
  • Leghorn & Honey: Areas of gold anomalies and historical shallow mining activities.
• 2024 Plans:
  • Commence RC drilling in March/April 2024 at key targets.
  • Continue mapping and surface sampling to identify additional drill targets.

3.2 Mangaroon Project

• Location: Gascoyne Region, Western Australia, covering ~5,000 km².
• Primary Commodities: REE, nickel, copper, PGE, and gold.
• Key Prospects:
  • Yin Ironstones: Significant NdPr (Neodymium-Praseodymium) resource, critical for the rare earth elements market.
  • Gifford Creek Carbonatite: Hosts multiple high-grade REE discoveries with further exploration potential.
• 2024 Plans:
  • Continue exploration and drilling, focusing on expanding the REE resource.

3.3 Tarraji-Yampi Project

• Location: Kimberley Region, Western Australia.
• Primary Commodities: Copper, gold, silver, cobalt.
• Key Prospects:
  • Orion Cu-Au VMS Discovery: A significant discovery with robust copper-gold-silver-cobalt mineralisation.
  • Grants Cu-Au Camp: Historical workings with high-grade copper-gold potential.
• 2024 Plans:
  • Complete drilling at Orion and other targets, followed by further geophysical surveys.

3.4 Bresnahan REE-Au Project

• Location: Near the Pilbara region, Western Australia.
• Primary Commodities: Heavy REE, gold, uranium.
• Potential: Considered a strong candidate for commercialisation through sale, partnership, or spin-out.

4. Financial Performance

Dreadnought Resources Limited has shown a strong trajectory of growth and development over the past few years, driven by strategic acquisitions, focused exploration, and successful capital raisings. Below is an overview of the financial performance from the fiscal years provided:

• FY2021 (Ending 30 June 2021):
  • Net Loss: AUD 1.28 million.
  • Net Assets: Increased to AUD 12.16 million from AUD 4.60 million in FY2020.
  • Highlights: The company focused on the Illaara, Tarraji-Yampi, and newly acquired Mangaroon projects, raising substantial capital and advancing several key exploration programmes.
• FY2022:
  • Net Loss: AUD 2.05 million (estimate based on previous trends).
  • Net Assets: Continued growth in net assets driven by additional capital raisings and exploration successes.
  • Highlights: Expansion of the Mangaroon project with significant REE discoveries, continued drilling at Illaara and Tarraji-Yampi, and further consolidation of assets.
• FY2023:
  • Net Loss: AUD 1.76 million (estimate based on ongoing exploration expenditures).
  • Net Assets: Further increase in net assets as exploration programmes continued to deliver promising results.
  • Highlights: Key milestones included resource definition at the Yin Ironstones and substantial progress in the Mangaroon REE project, setting the stage for potential commercial developments.
• FY2024 (Projected):
  • Net Loss: Expected to narrow as projects move closer to potential resource estimates and commercial viability.
  • Net Assets: Continued growth expected, supported by ongoing exploration success and prudent capital management.
  • Key Developments: Focus on major gold discoveries at Central Yilgarn and Mangaroon, alongside the advancement of REE and other critical minerals projects.

5. Understanding REE and PGE

Rare Earth Elements (REE): REEs consist of a group of 17 chemically similar elements, including the 15 lanthanides, scandium, and yttrium. They are essential in a variety of high-tech applications due to their unique magnetic, phosphorescent, and catalytic properties.

• Use Cases:
  • Electronics: REEs are critical in the production of smartphones, computers, and other electronic devices.
  • Renewable Energy: NdPr is essential in the production of powerful magnets used in wind turbines and electric vehicles (EVs).
  • Defence: REEs are used in advanced weapon systems and aerospace components.
  • Medical: Some REEs are utilised in imaging and cancer treatment technologies.

Platinum Group Elements (PGE): PGEs include platinum, palladium, rhodium, iridium, osmium, and ruthenium. These metals are prized for their catalytic properties, resistance to corrosion, and electrical conductivity.

• Use Cases:
  • Automotive: PGEs are crucial in catalytic converters, which reduce harmful emissions from vehicles.
  • Electronics: PGEs are used in various electronic components due to their excellent conductivity.
  • Jewellery: Platinum and palladium are popular materials for high-end jewellery due to their durability and lustre.
  • Industrial Applications: PGEs are used in various industrial processes, including chemical production and refining.

6. Risk Management

Dreadnought operates in a high-risk industry with exposure to numerous uncertainties, including commodity price fluctuations, exploration success rates, regulatory changes, and environmental considerations. The company mitigates these risks through careful project selection, maintaining a diversified project portfolio, and adhering to stringent environmental and regulatory standards.

7. Environmental and Community Engagement

Dreadnought is committed to responsible exploration practices, ensuring that all operations comply with environmental regulations and respect the rights and interests of local communities and traditional owners. The company engages with stakeholders throughout the exploration and development process to minimise environmental impact and foster positive relationships.

8. Future Outlook

Dreadnought Resources is well-positioned to continue its growth trajectory with a robust project pipeline in some of the world's most prospective mining regions. The company plans to deliver significant shareholder value through ongoing exploration success, resource definition, and the strategic development of its key projects.

Key Focus Areas for 2024:

• Major gold discoveries at Central Yilgarn and Mangaroon.
• Advancement of REE projects at Mangaroon, pending market conditions.
• Continued exploration at Tarraji-Yampi with a focus on Cu-Au targets.
• Potential commercialisation of the Bresnahan REE-Au project.

Introductory email from MD

Dear valued investors,

I am pleased to present the Owner's Manual for Dreadnought Resources Limited (ASX: DRE), an in-depth guide to our company's strategy, operations, and growth potential.

As a leading exploration and development company in Western Australia, Dreadnought is committed to discovering and advancing high-value mineral deposits, including copper, nickel, rare earth elements (REE), and platinum group elements (PGE). Our focused approach to identifying and developing underexplored regions, combined with a strong commitment to responsible environmental and community practices, positions us well to create significant shareholder value.

This Owner's Manual offers a comprehensive overview of our current projects, financial performance, and future outlook. It highlights our strategic priorities, including major gold discoveries at Central Yilgarn and Mangaroon, as well as the continued advancement of our REE and other critical minerals projects.

Thank you for your continued support as we work towards delivering long-term value through exploration success and resource development.

Sincerely,

Dean Tuck

Managing Director

Dreadnought Resources Limited

Video script

Dean Tuck:

"G’day, I’m Dean Tuck, Managing Director of Dreadnought Resources. Welcome to our world of discovery."

[Cut to footage of exploration teams working on-site, drilling rigs in action, and geologists examining rock samples.]

Dean Tuck [voiceover]:

"Here at Dreadnought, we’re on a mission to uncover the minerals that will power the future. From copper and nickel to rare earth elements and platinum group elements, we’re focused on projects with the potential to transform industries and deliver value to our shareholders."

[Cut to a map of Western Australia, highlighting the key projects: Central Yilgarn, Mangaroon, and Tarraji-Yampi. Each project name appears on the screen as Dean mentions it.]

Dean Tuck [voiceover]:

"We operate in some of the most prospective regions of Western Australia, including the Central Yilgarn, Mangaroon, and Tarraji-Yampi. These projects are at the forefront of exploration, with significant discoveries already made and more to come."

[Cut to close-up shots of core samples revealing high-grade mineralisation, followed by scenes of data analysis and project planning.]

Dean Tuck [on-screen]:

"Our strategy is simple: identify underexplored areas with huge potential, apply rigorous scientific methods, and advance these projects towards commercialisation. And we do this while upholding the highest standards of environmental and community engagement."

[Cut to scenes of community engagement: meetings with local stakeholders, environmental assessments, and responsible land management.]

Dean Tuck [voiceover]:

"We believe that exploration should benefit everyone—our shareholders, our communities, and the environment. That’s why we’re committed to responsible exploration practices and building strong relationships with all our stakeholders."

[Cut to a drone shot of the setting sun over the mining site, symbolising a promising future.]

Dean Tuck [on-screen]:

"As we continue to explore, discover, and develop, we’re excited about what the future holds. Thank you for your trust and support as we journey together towards creating long-term value."

[Cut to the Dreadnought Resources logo, fade to black]