Announcement PDF Investigator Resources Limited ABN 90 115 338 979 Half Year Financial Report - 31 December 2024 Investigator Resources Limited Contents 31 December 2024 Corporate directory Directors' report Auditor's independence declaration Statement of profit or loss and other comprehensive income Statement of financial position Statement of changes in equity Statement of cash flows Notes to the financial statements Directors' declaration Independent auditor's review report to the members of Investigator Resources Limited 1 2 3 17 18 19 20 21 22 29 30 Investigator Resources Limited Corporate directory 31 December 2024 Directors Richard Hillis – Non-Executive Chair Andrew McIlwain – Managing Director Andrew Shearer – Non-Executive Director Company Secretary Ms Anita Addorisio Principal place of business 47 King Street Norwood SA 5067 Share register Computershare Limited Level 5, 115 Grenfell Street Adelaide SA 5000 Auditor Grant Thornton Audit Pty Ltd Level 3, 170 Frome Street Adelaide SA 5000 Solicitors Baker & McKenzie L19, CBW, 181 William Street Melbourne VIC 3000 Stock exchange listing Investigator Resources Limited shares and options are listed on the Australian Securities Exchange (ASX code: IVR and IVRO) Website Website: www.investres.com.au 2 Investigator Resources Limited Directors' report 31 December 2024 The Directors present their report, together with the financial statements, on the consolidated entity (referred to hereafter as the 'consolidated entity') consisting of Investigator Resources Limited (referred to hereafter as the 'Investigator', 'Group' or 'Parent Entity') and the entities it controlled at the end of, or during, the half-year ended 31 December 2024 (the 'financial half-year' or the 'interim reporting period'). Directors The following persons were Directors of Investigator Resources Limited during the whole of the financial half-year and up to the date of this report, unless otherwise stated: Richard Hillis - Non-Executive Chair Andrew McIlwain – Managing Director Andrew Shearer - Non-Executive Director Principal activities The principal activity of the Group during the year was mineral exploration. Dividends There were no dividends paid, recommended or declared during the current or previous financial half-year. Review of operations The profit for the consolidated entity after providing for income tax amounted to $869,774 (31 December 2023: loss of $739,327). The net result for the financial half-year includes receipts of interest and profit earned on sale of tenements of $1,449,164(31 December 2023: $85,954). During the period, the Group incurred $2,383,344 expenditure on exploration activities across the Group’s tenements, compared to $2,303,435 for the prior corresponding period. The increase in exploration activity spend is mainly towards Paris Silver Project along with the continuing work undertaken on other tenements, as detailed in the project summary within this report. At 31 December 2024, the Group had a cash position of $2,736,605. 3 Investigator Resources Limited Directors' report 31 December 2024 Paris Silver Project The Company’s 100% owned Paris Silver Project is located approximately 70km north of the rural township of Kimba on South Australia’s Eyre Peninsula. Access to the project site is predominantly via highways and sealed roads and is approximately 7 hours by road from Adelaide, as can be seen in Figure 1 below. Figure 1: Locality map showing Investigator’s SA tenements and Paris Silver Project – approximately 535km by road, NW of Adelaide. Note: During the Half Year to 31 December 2024, Investigator sold its 49% interest in the Stuart Shelf JV as well as its 100% interest in the adjacent Stuart Shelf tenements1. One of the highest grade undeveloped primary silver projects in Australia, the Paris Silver Project hosts a JORC 2012 compliant Mineral Resource Estimate of 24Mt @ 73g/t silver and 0.41% lead for 57Mozs silver and 99kt lead at a cut-off of 25g/t silver2 with 72% of the estimate within the Indicated classification category. The Paris resource is a shallow, high-grade silver deposit amenable to simple open pit mining. 1 - As announced to the ASX 16 Sept 2024 2 - As announced to the ASX on 5 July 2023 4 Investigator Resources Limited Directors' report 31 December 2024 Paris Mineral Resource Estimate The 2023 Mineral Resource Estimate is shown in the table below: Tonnes Ag Pb (million) g/t % Indicated 17 75 0.5 Inferred 7.2 67 0.2 Total 24 73 0.41 Table 1: 2023 Paris Silver Project Mineral Resource Estimates3 Ag moz 41 16 57 Pb kt 85 14 99 Note:    Based on 25g/t silver cut-off grade. Values may not sum due to rounding. The Company confirms that it is not aware of any new information or data that materially affects the Paris Silver Project Mineral Resource Estimate since its release in July 2023. The 2023 Paris MRE underpins the tasks and evaluations that are required to deliver the Project’s Definitive Feasibility Study (DFS). Finalisation of the DFS will allow assessment of the Project’s financial and operational viability and form the basis for mining and environmental approvals. Paris Silver Project Definitive Feasibility Study The 2021 Paris Pre-Feasibility Study (PFS)4 highlighted the low-risk nature of the high-grade, near surface, open pit project with the Base Case Scenario (“Whole of Ore Leach”) assuming a simple processing circuit with robust silver recovery to dore bars. This Base Case contemplated only the recovery of silver with no revenue contribution from the lead contained in the resource estimate included. The Definitive Feasibility Study currently underway was initiated on the back of the revised 2023 Paris Mineral Resource Estimate and has focussed on improving confidence in a number of study areas, revisiting project economics in light of current commodity prices and forecast capital and operating costs in order to deliver a project assessment to allow the Board to assess project viability and confidence in advance of development of a Mining Lease application as part of the regulatory approvals process. As was announced to the ASX5, the Board of Directors decided to delay the release of the Paris DFS to enable further optimisation work to be undertaken on key aspects of the Project development plan. Whilst there has been an improvement in the silver price of late, increased forecast mining and processing costs, as well as increased preproduction capital expenditure resulted in Project financial metrics that did not, at first-pass, match those presented in the 2021 PFS. There remain several opportunities to add value to the Project that demand further investigation, and the Investigator Board recognises that delivering a successful silver mining operation at Paris is crucially dependent on presenting the most accurate and up-to-date DFS possible. As was detailed in that release, there are several critical areas in which there is considered opportunity to enhance project value through further studies including:     Open pit optimisations; Mining efficiencies and forecast operating costs; Power generation; and Alternate tailings storage facilities. During the Half Year to 31 December 2024, work associated with advancing the DFS included:       Extensive hydrological investigation and modelling of water table behaviour for both the open pit and process plant water supply from Hector; Open pit optimisation studies and subsequent development of mine plans and operating schedules; Material testing to predict settling and drainage behaviour of the processed materials; Detailed design of processing plant and associated infrastructure; Waste rock and tailings facilities design and characterisation studies; and Site layout planning. - As announced to the ASX on 5 July 2023 4 - As announced to the ASX 30 November 2021 5 - As announced to the ASX on 16 December 2024 3 5 Investigator Resources Limited Directors' report 31 December 2024 Baseline studies and continued monitoring of noise and dust and groundwater quality continued. Dialogue with the Gawler Ranges Aboriginal Corporation RNTB (GRAC), the traditional owners of the land on which Paris sits, continues with the objective of negotiating the Native Title Mining Agreement necessary for the production phase of the Paris Project. GRAC are acknowledged key stakeholders in the advancement of Paris, and it is intended that they will also be beneficiaries of the Project’s successful development. As announced, it is anticipated that the Paris Silver Project’s Definitive Feasibility Study will be completed and announced to the ASX in mid-2025. Regional Exploration on Peterlumbo Tenement Exploration around the Paris site continued, with a 27-hole, 3,800m Reverse Circulation (RC) drilling program at the Perseus and Manto prospects completed in late December 2024. These holes, shown in Figure 2 below, were targeted to follow up previously discovered mineralisation, test modelled extensions of the prospective volcanic host geology (both laterally and at depth) and to provide additional coverage on geophysical features that are as yet untested. Results from the earlier program completed in the September 2024 Quarter included hole PLAC267 at Perseus which returned 2m @ 12g/t silver from 104m, 3m @ 0.81% lead from 103m and 3m @ 0.3% zinc from 102m immediately above bottom of hole, demonstrating the high geological variability of the area, and hole PPRC284 at Manto which returned 3m @ 31g/t silver from 105m, 3m @ 0.18% lead and 0.19% zinc from 96m6. Assay results from the December 2024 drilling should be released in March 2025. Figure 2 - Image showing drilling completed in December (blue) with historic drilling (black) in proximity to the Paris deposit 6 - As released to the ASX 23 October 2024 – “Quarterly Activities and Cash Flow Report” 6 Investigator Resources Limited Directors' report 31 December 2024 Other Tenements – South Australia Curnamona The Curnamona Project (South Australia) consists of three exploration licences, EL6253 (Olary), EL6345 (Treloars) and EL5938 (Wiawera) which are located south of the town of Olary and within a few kilometres of the Barrier Highway which runs from Adelaide to Broken Hill. The project is approximately 5hrs drive from Adelaide and 1.5hrs drive west of Broken Hill. Figure 3: Curnamona Project area. Considered highly prospective for gold and copper exploration, a focused assessment of the prospectivity of a large magnetic body identified in regional magnetic datasets at the Treloars project (Figure 4) which is associated with a number of conductive features identified from 6 historic airborne electromagnetic survey lines (AEM) that covered the prospect area (conducted by Geoscience Australia in 2010) was undertaken. Work completed in the Half Year included gravity surveying over the broader anomaly, soil sampling and a series of induced polarisation (IP) geophysical survey lines. This work has refined 3 target areas associated with the main Treloars magnetic body. The source of the magnetic body is interpreted as igneous intrusive rocks which have penetrated overlying Tapley Hill and Sturt Tillite Formations and considered a likely source for mineralising fluids. With an initial planned drill program developed, a Native Title Heritage clearance survey with the Wilyakali Traditional Owners was undertaken in late December 2024. The clearance survey focussed on areas at Treloars, Tombstone and Red Sun in addition to access routes to the proposed drill areas. Formal reporting from this heritage clearance survey has been finalised, paving the way for initial drill testing of these targets in the first half of 2025. 7 Investigator Resources Limited Directors' report 31 December 2024 Figure 4 - Investigator’s targets in the Curnamona. Main Image: Band pass filtered gravity data recently collected by IVR with new IP traverses shown in pink. Inset: Regional historic RTP 1VD magnetic image showing large magnetic feature within tenement (Treloars). East Eyre The Uno Range, Morgans and Harris Bluff and Corunna tenements, located approximately 80km east of, and in a similar geological setting to Paris and continued to see work undertaken, albeit at lower levels owing to work at Paris and surrounds and the Curnamona. The results of the gravity survey that was completed during the period were processed by our consultant geophysicist. At present the data is being incorporated into a revised and expanded regional geological interpretation which is to form a key part of future drill targeting work in the area. Figure 5 - Plan showing location of Uno-Morgans tenement group in relation to Paris project.. 8 Investigator Resources Limited Directors' report 31 December 2024 Ultra Fine Fraction soil sampling was also completed over portions of all tenements with the results incorporated into the geological and geochemical assessment of the region and will be integral to future targeting work. Hymapper spectral data which covers portions of the tenements was reprocessed during the half and has identified a number of alteration related minerals of interest which will be reviewed in the field in conjunction with assessment of soil and gravity data collected recently. This work will refine targets for eventual drill testing. Whilst a Native Title Mining Agreement (NTMA) had previously been negotiated and approved to allow advanced exploration activities on all currently held tenements that comprise the East Eyre project (EL5933, EL5845, EL5913, EL6725, EL6753 and EL6909) tenement areas that lie within the Gawler Ranges Aboriginal Corporation RNTBC determination area, a revised NTMA agreement was similarly negotiated with the Barngarla Determination Aboriginal Corporation RNTBC (BDAC) covering parts of EL5933, EL5845and EL6724. This agreement with BDAC is in the final stages of consultative review and is anticipated to be finalised early in the 2025 year. These agreements provide Investigator with a structured and agreed process to allow exploration on tenements under the agreement. Stuart Shelf As was announced in the September 2024 Quarter7, sale of Investigator’s 49% Joint Venture interest and adjacent wholly owned tenements in the Stuart Shelf to Pernatty Co Pty Ltd (a subsidiary of Discover Co Pty Ltd) was finalised with the formal transfer of the tenement interests by the SA regulatory authorities. Investigator received the $1M cash consideration in late December and executed the royalty agreement documentation that will provide future exposure to exploration success. Under the Royalty Deed Investigator will receive:  a 1% Net Smelter Royalty (NSR) for all mineral production from the Joint Venture tenements; and  a 0.5% NSR for all mineral production from the Lake McFarlane tenements Where Pernatty announces a decision to mine on any of the tenements, Pernatty has a once-off option to acquire the NSRs at a price that is either agreed or determined by independent experts. If, at a future date, Investigator wishes to sell the NSRs to a third party, Pernatty will have the right to acquire the NSRs at the price offered by that third party buyer within 30 days of the offer. Northern Territory Molyhil Tungsten-Molybdenum Project On the 23 November 2022 Investigator announced that it had entered into a 3 stage Earn-In to Joint Venture agreement between Investigator’s 100% owned Fram Resources and Thor Energy PLC. The agreement provides for a minimum $1M expenditure by Investigator by May 2024 to earn a 25% Joint Venture interest in Molyhil and acquire Thor’s 40% interest in the adjacent Bonya tenement. Stage 2 and 3 expenditures require a further spend of $7 million over 5 years to earn up to 80% of the project. During the Half Year, Investigator’s wholly owned subsidiary Fram Resources Ltd, having expended the minimum $1M Stage 1 commitment, progressed finalising the formal regulatory transfer of a 25% interest in the Molyhil tenements and assignment of Thor Energy Plc (ASX & AIM:THR, Thor) 40% interest in the adjacent Bonya Joint Venture with Arafura (ASX: ARU). Under Stage 2 of the Joint Venture, Investigator can earn an additional 26% Joint Venture interest (for a total of 51%) through expenditure of a further $2M over an additional 3 years. Expenditure to date, in excess of the Stage 1 expenditure commitment of $1M, will count towards the Stage 2 expenditure. Investigator then has the right to earn a total Molyhil Project interest of 80% with further expenditure of $5M over a further 3 years. 7 - As released to the ASX 23 October 2024 – “Quarterly Activities and Cash Flow Report” 9 Investigator Resources Limited Directors' report 31 December 2024 The updated Molyhil MRE8 represented a substantial increase in the Measured Category as shown in Table 1 below. The updated Mineral Resource Estimate for Molyhil shown above will be utilised in the completion of a high-level scoping study on the Molyhil project to determine the project viability in the current market (given that the last study undertaken by Thor was completed in 2018). Investigator anticipate completion of this work in the first half of 2025. Following the successful 2023 gravity program over the Molyhil project, supported through a co-funding grant from the Northern Territory government resulting in the identification of a large number of high amplitude gravity features of varying sizes that had potential to represent potential dense skarn mineralisation similar to that at Molyhil. Investigator identified four anomalies within the Mt Sainthill tenement that surrounds Molyhil as priority targets to investigate with tungsten or copper prospectivity. Investigator was again successful in receiving a co-funding grant from the Northern Territory government for a drill proposal to test 3 of the 4 nominated targets. Drilling of all four targets will be undertaken following completion of the necessary Native Title heritage clearance surveys that were rescheduled from late December 2024 to what is now anticipated to occur in the first half of 2025. Investigator are actively liaising with the Northern Territory government regarding the unforeseen delays to heritage clearance in order to maintain grant funding for this program of work. The Molyhil project was given Major Project Status by the Northern Territory government in July of 2020, and this status was due for review in July 2023. Investigator held discussions with representatives of the NT government with a view of appraising them of the company’s ambitions for the Molyhil project and upgraded timelines to potential development. At the conclusion of discussions, it was agreed that Investigator would develop a revised timeline of key milestones for Molyhil which would satisfy the continuation of Major Project Status for the project within the Northern Territory. During the Half Year, this revised timeline was accepted by the Northern Territory government and Major Project Status was renewed. Investigator have satisfied one milestone event with the recent delivery of an updated Mineral Resource Estimate. Tasmania White Spur – EL2/2020 Investigator holds the White Spur exploration licence (EL2/2020) in the highly mineral endowed Mount Read Volcanic belt of North-West Tasmania. Identified through a “machine learning” or “neural analysis” exercise in targeting mineralisation similar to that at the significant Rosebery Mine (which has operated continuously from 1936, producing zinc, copper, lead and gold) and Henty Mine (produced approximately 1.3Moz since its commissioning in 1996), the 84km2 White Spur tenement lies immediately to the south of the Rosebery and historic Hercules zinc mines and west of, and adjacent to the Henty Mine. No significant exploration has been undertaken on the tenement since 2013 when the presence of thallium, a known vector to massive sulphide mineralisation, was reported. Under an access agreement with MMG, who own the adjacent Rosebery Mine, MMG have conducted extensive investigations as to the suitability of the northern portion of EL2/2020 for potential tailings storage. A field visit was undertaken by Investigator during the Half Year to inspect the rehabilitation work completed by MMG. 8 - As released to the ASX 28 May 2024 – Update Molyhil Resource Estimate 10 Investigator Resources Limited Directors' report 31 December 2024 Safety, Environment and Community Investigator completed all programs of work within the Half Year without lost time injury or incident. The company maintains an industry developed Safety Management System with significant reporting and oversight mechanisms in place to monitor and proactively work towards the identification of hazards in the workplace and prevention of work-related incidents. Investigator also completed all work programs within the Half Year without the occurrence of a reportable environmental incident, and within approved environmental requirements from requisite state bodies. The company maintains a database for rehabilitation and undertakes internal photo monitoring and inspection of rehabilitation as part of internal processes. Investigator completed all work programs without receipt of any complaint from landowners or Native Title groups. The company maintains a process of early and regular engagement with identified key stakeholders, including a register of complaint or recommendation as part of our work process and has developed and implemented a stakeholder engagement policy. Investigator have a policy of maximising spend within the communities we work and prefer use of local businesses and contractors wherever possible. Investigator participated in sponsorship of the following activities or organisations:     Clontarf Foundation (www.clontarf.org.au) focussed on the education, discipline, life skills, self-esteem and employment prospects of young Aboriginal and Torres Strait Islander men. Gawler Ranges Progress Association – Sponsorship of annual Nonning Gymkhana event Kimba Agricultural Show Sponsorship Harts Range Amateur Race Club – Sponsorship of 77th Harts Range Races Corporate Business development Investigator continue to review opportunities for the acquisition of prospects with the potential to generate significant accretive value. Whilst the Company’s principal focus remains the advancement of the Paris Silver Project and continued regional exploration, the aim of creating some diversification in Investigator’s portfolio continues. Focus has been maintained on domestic opportunities, conscious that the tightening equity market may present some possibilities. Cash The Company had $2.7 million cash at bank as at 31 December 2024. JMEI credits During the Half Year, Investigator was advised by the Australian Taxation Office that application for tax credits under the Federal Government’s Junior Minerals Exploration Incentive (JMEI) scheme has been assessed and fully allocated. Under the JMEI scheme:  Investigator has received an allocation of $300,000 in JMEI credits.  Some or all of these JMEI credits may be distributed to eligible Investigator shareholders as a tax offset or franking credit against the Company’s tax losses for allowable greenfields exploration expenditure in the 2024/25 financial year.  To be eligible, a shareholder must participate in any fundraising that Investigator undertakes during the 2024/25 financial year.  Only new shares issued through any fundraising by Investigator will be subject to the JMEI scheme. The JMEI scheme enables eligible exploration companies to create refundable tax credits to distribute to eligible shareholders by forgoing a portion of their carried forward tax losses that have arisen from allowable expenditure on "greenfield" exploration. It will apply to shareholders who acquire new shares if the Company undertake a share placement during the year. Australian resident shareholders that are issued with JMEI credits will generally be entitled to refundable tax offsets (for individual shareholders or superannuation funds) or franking credits (for companies). 11 Investigator Resources Limited Directors' report 31 December 2024 Other As was announced to the ASX in November 20249, the Company announced that it had entered into a Sale Agreement for the cash sale of approximately 30% of the NT “Molyhil” Mount Sainthill Exploration License (EL22349), which includes the Oorabra Mining Leases (MLs) 33903, 33904, 33905, 79 and 86, for total consideration of $1.075M to fluorite explorer/developer Tivan Limited (ASX:TVN, Tivan). The sale agreement provides for development of a “Mineral Sharing Agreement” that recognises the specific and mutually exclusive mineral focus of both companies. The Mineral Sharing Agreement will enable Investigator access to undertake exploration for all minerals, other than fluorite on the divested portion of the tenement (blue hatched area in Figure 6 below), with a reciprocal right allowing Tivan to explore for fluorite in an area on the Northern boundary of the Mt Sainthill EL, shown as the green hatched area in Figure 6 below. Importantly, the boundary of the proposed subdivision does not impact on the area associated with the Molyhil Tungsten Project, the associated infrastructure corridors, nor the near mine exploration targets identified by Investigator that will be drilled following formal completion of Native Title clearance surveys scheduled for the first half of 2025. Figure 6 – Proposed subdivision of Mount Sainthill tenement EL 22349. The blue shaded area to the North and East will be subdivided and sold to Tivan. Investigator retain the right to explore for minerals other than fluorite within this area. Tivan will have access to explore for fluorite within the green shaded area on the Northern boundary. Area around Molyhil Mine retained by Investigator. 9 - As released to the ASX 21 November 2024 – Cash Sale of NT Fluorite Interest 12 Investigator Resources Limited Directors' report 31 December 2024 Corporate disclosure and reporting The status of Investigator’s tenements at 31 December 2024 are detailed in the table below. 13 Investigator Resources Limited Directors' report 31 December 2024 Competent Person Statement for Exploration Results The information in this Annual Report that relates to exploration results is based on information compiled by Mr. Jason Murray who is a full-time employee of the company. Mr. Murray is a member of the Australasian Institute of Mining and Metallurgy. Mr. Murray has sufficient experience of relevance to the styles of mineralization and the types of deposits under consideration, and to the activities undertaken, to qualify as a Competent Person as defined in the 2012 Edition of the Joint Ore Reserves Committee (JORC) Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr. Murray consents to the inclusion in this report of the matters based on information in the form and context in which it appears. Competent Person for Previously Reported Mineral Resource Estimates The information in this Annual Report that relates to historic Mineral Resource Estimates as listed in the table below is based on and fairly represents information and supporting documentation prepared by the Competent Person whose name appears against the relevant Mineral Resource Estimate. Investigator is not aware of any new data or information that would materially affect the Mineral Resource Estimations listed below. Project Paris Project ASX Announcement 5 July 2023 Molyhil Project 28 May 2024 Competent Person Membership Mr Jonathon Abbott (Consultant) AIG Mr Luke Burlett (Consultant) AIG The information in this release that relates to Mineral Resources Estimates at the Paris Silver Project is extracted from the release titled “Paris Mineral Resource Estimate Update” dated 5 July 2023 and is available to view on the Company’s website www.investres.com.au. The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement and that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed. The company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcement. The information in this release that relates to Mineral Resources Estimates at the Molyhil Tungsten Project is extracted from the release titled “Updated Molyhil Mineral Resource Estimate” dated 28 May 2024 and is available to view on the Company’s website www.investres.com.au. The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement and that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed. The company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcement. Forward Looking Statements This Interim Financial Report includes certain forward-looking statements that have been based on current expectations about future acts, events and circumstances. These forward-looking statements are, however, subject to risks, uncertainties and assumptions that could cause those acts, events and circumstances to differ materially from the expectations described in such forward-looking statements. These factors include, among other things, commercial and other risks associated with the meeting of objectives and other investment considerations, prevailing commodity prices, as well as other matters not yet known to the Group or not currently considered material by the Group 14