stavely minerals ipo...

Rec'd this in my inbox last week, if Integra is anything to go by, this could go alright...

Dear Investor,

After extensive behind-the-scenes preparations over the past year, I’m delighted to inform you that the Initial Public Offer (IPO) for Stavely Minerals Limited (“Stavely”) has been launched with our Prospectus lodged with ASIC this week…..it has begun!

Following a compulsory 7-day exposure period, the Prospectus will be open for subscription by the public on 26 March 2014.

In the meantime, a copy of the Stavely Prospectus can be downloaded from our web site at www.stavely.com.au.

As you may already be aware, the IPO of Stavely marks a return to the public arena of key members of the former Integra Mining team – including myself and my fellow directors Bill Plyley, Peter Ironside and Jennifer Murphy – with our comeback underpinned by two copper deposits in western Victoria and some very exciting exploration targets!

At the Ararat Project, the Mt Ararat Volcanogenic Massive Sulphide (VMS) deposit has an Inferred Mineral Resource of 1.2 million tonnes at 2% copper, 0.5 g/t gold, 0.4% zinc and 6 g/t silver.

A VMS deposit is analogous to modern day sea floor ‘black smoker’ vents (as seen on Discovery Channel) which release hot brines rich in base metals (copper, lead, zinc and associated gold and silver) onto the sea floor. When the hot metal-rich brines mix with sea water and cool, the dissolved metals are precipitated onto the sea floor in a plume extending from around the outflow vent. The outflow zone is often characterised as the thickest and hosts the highest grades of metal and precious metal bearing sulphide mineralisation.

Along strike to the north of this known VMS deposit are coincident electromagnetic (EM) geophysical conductors, copper-zinc soil anomalies and noted gossans (weathered sulphides) at surface extending for 3.5km which are effectively undrilled.

Stavely is proposing to undertake a programme comprising 24 drill-holes (each around 200m) followed by down-hole geophysics (EM) to identify deep conductors – which may be the metals outflow zone – and a follow-up programme of diamond drill holes to test those conductors.

Also at the Ararat Project, the Langi Logan gold prospect is considered a possible analogy of the Stawell Gold Mine some 35km to the north. The modern Stawell Gold Mine has been in continuous operation for nearly 30 years and has produced over 2 million ounces of gold.

Previous exploration at Langi Logan has intersected 2m at 9.2 g/t gold in RC drilling hosted in Stawell-style sulphidic sediments (Mine Sequence) but was not followed up. Stavely plans several diamond drill holes to properly test this opportunity.

At the Stavely Project, the team cannot be accused of modest aspirations!! A significant body of evidence accumulated by Stavely over the past year points to the potential for a Tier-1 Cadia Valley (Newcrest) or Northparkes (formerly Rio Tinto) style copper-gold porphyry system at depth below an Inferred Mineral Resource of 28 million tonnes at 0.4% copper within a chalcocite-enriched supergene blanket. This evidence includes:

· several programmes of geophysics (gravity, EM and IP);
· expert analysis of alteration mineralogy analysis (HyLogger and PIMA);
· full re-logging of all available drill core by noted porphyry experts; and
· recent sulphur isotope analyses by Geoscience Australia.

Stavely plans to drill four 700m and two 500m deep diamond drill holes to test for porphyry-style copper-gold mineralisation at the Thursday’s Gossan and Junction prospects. Several other porphyry and VMS exploration targets will also be progressed towards a drill-ready status.

With immediate drill targets at hand and an intention to drill as soon as Stavely is successfully listed on the ASX, we are very excited and enthusiastic about our new venture and hope that you will share our enthusiasm.

I am pleased to take this opportunity to update you on our progress and to encourage interested potential investors to download and read the Stavely Prospectus.

Share application forms are included in the Prospectus, and investors can apply for shares by completing the application form and instructing their broker to submit bids for shares via the ASX bookbuild facility once the ASIC exposure period closes on the 24 March, 2014. Further details regarding the ASX bookbuild facility and application procedure are set out in the Prospectus.

All relevant JORC Code Competent Persons’ statements, consents and JORC Code Table 1 reporting are fully detailed in the Stavely Prospectus. Potential investors should consider the Prospectus in its entirety in deciding whether to acquire shares in Stavely.

If you have any other queries, please don’t hesitate to contact myself, Jennifer or Peter in the Perth office on (08) 9287 7630.

I look forward to catching up with you in the near future as we list Stavely on the ASX!


Kind regards,

Chris Cairns
Managing Director