february 2011 - mindoro · 2011. 3. 3. · investment highlights •established “license to...
TRANSCRIPT
Mindoro Resources Ltd
From Nickel Discovery to Development with Copper-Gold Upside
February 2011
FORWARD LOOKING STATEMENTS
This presentation may contain forward-looking statements including management's assessments of future
plans and operations, expectations of future production, cash flow and earnings. These statements are based
on current expectations that involve a number of risks and uncertainties, which could cause actual results to
differ materially from those anticipated.
These risks include, but are not limited to, the risks associated with the mining and exploration industry (e.g.
operational risks in development, exploration and production; delays or changes in plans with respect to
exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the
uncertainty of estimates and projections relating to production).
QUALIFIED PERSON
Exploration on Mindoro’s properties is carried out under the supervision of Tony Climie, P.Geol., who is a
qualified person as defined by National Instrument 43-101 and who has also reviewed the technical disclosures
in this presentation.
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Investment Highlights
• Established “license to operate” with outstanding nickel, gold and copper assets in the Philippines
• Experienced team with discovery, finance and development capability
• Development strategy for major integrated nickel laterite processing project
– Measured and Indicated resources: 32.6mt @ 1.04% Nickel (340,000t /750M lbs Nickel)
– Defined exploration potential, resource drilling for significant upgrade
– Outstanding metallurgy, infrastructure and locational advantages
– Upside through resource growth, strategic acquisitions, partnerships
• Copper-Gold resources and exploration upside
– Gold resources: 500,000 oz with high-grade intercepts at depth
– Copper-Gold exploration portfolio, advanced and early stage prospects
• Demonstrating value in 2011 through major nickel project pre-feasibility, nickel resource growth and drilling copper-gold targets
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Corporate ProfileCapitalisation ($CDN)Exchange & Symbol TSX-V: MIO,ASX: MDO
Shares outstanding 206m
Fully diluted 271m
Share price (25/02/11) C$0.24/A$0.21
Market capitalisation C$50m
Current treasury, Feb 2011 $9m (+$3m warrants)
Acorn Capital 12.5%
IFC (World Bank) 9.7%
Asian Lion Ltd 7.0%
Lion Selection 6.7%
Directors 4.5%
Top 20 53%
Shareholders
Board and ManagementName Title Comments
Jon Dugdale Director, President & CEO 23 years exploration/mining and investment
Tony Climie Director Exploration & COO 42 years mineral exploration, co-founder of MIO
Rob King VP Commercial and CFO 23 years Commercial and Financial experience in SE Asia, Africa and Canada
Penny Gould VP Inv. Relations & Corp. Sec. 30 years business admin, financing and marketing, with MIO since 1996
Rob Garden Chairman 32 years a QC in natural resources law
Howard Walker Vice Chairman 36 years in Mining, finance and investment
Chris de Guingand Director (Non Executive) 45 years nickel and iron ore commercial and marketing experience
Oscar Reyes Director (Non Executive) 38 years in business management, ex Chairman & CEO of Shell Oil – Philippines.
Doug Frondall Director (Non Executive) 35 years accounting, CEO of Virtus Group LLP, business management consulting.
John Tosney Director (Non Executive) 45 years experienced mining engineer and project developer
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Key Projects
•Medusa Co-O
•>100,000oz pa
5
6Garnierite (nickel) mineralization
North
SURIGAO PROJECTS
Philippine Sea
Lake
Mainit
Butuan Bay
SURIGAO CITY
Mindoro tenements / applications
Philex
Anglo Ashanti
Other companies
Nickel laterite mineralization
Nickel laterite mine
Recent porphyry copper-gold discovery
Porphyry copper-gold prospects
Gold mine or prospect
10 km0N
NICKEL
SRMI
OSMC
TAGANITO• Nickel Asia –
Sumitomo HPAL
PGMC
CTP
CNC
NORTH DINAGAT
EXPLORATION TARGET
50 - 70 million DMT @ 0.9 - 1.2% Ni
AGATA RESOURCECombined Limonite & Saprolite
Measured & Indicated
32.6M DMT @ 1.04% Ni
Inferred 1.68M DMT @ 1.04% Ni
The Agata Resource estimate is NI 43-101 compliant. However, detaileddrilling will be required to move theExploration Target north of the AgataResource into NI 43-101-compliantresources. There is no guarantee thatthese resources, if delineated, will beeconomic or sufficient to support acommercial mining operation. Until afeasibility study has been completedthere is no certainty that the company'sprojections will be economically viable.
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Agata Nickel – Competitive Advantages
Located in established Mining District of Surigao Supportive government & community
Few people + no forest Minimal social & environmental issues
Close to deep protected ocean and key markets Lower transport costs, all year shipping
Outstanding metallurgy, acid leach and thermal Low operating costs
Close to Mindoro’s Pyrite / limestone deposits Potential acid production/neutralisation
The company’s production objectives are intended to provide an indication of management’s current expectations and are still conceptual in nature. It is uncertain that it will be established that these resources will be converted into economically viable mining reserves. Until a feasibility study has been completed, there is no certainty that these objectives will be met.
OceanAgata nickel laterite resource
8
9
Agata Nickel Laterite Resource
Contained Metal
(K Tonnes)
ktonnes Ni % Co % Fe % Ni Co Fe
Measured &
Indicated
Limonite 10,210 0.94% 0.11% 46% 96 11 4,702
Saprolite 22,380 1.09% 0.03% 11% 244 7 2,462
Inferred
Limonite 260 1.00% 0.11% 44% 3 0.3 114
Saprolite 1,420 1.05% 0.03% 11% 15 0.4 156
Grand Total 34,270 1.04% 0.05% 22% 358 19 7,434
• Well-defined profile:
– Limonite layer: lower nickel, higher iron
– Saprolite layer: higher nickel, lower iron
• NI 43-101 resource estimate: (M&I 340,000t/750M lbs)Limonite
Saprolite
9
Thickness of intercept (m)
Fe%
Ni%
1.09 /41.615.00
46m
Drillhole number
Ferruginous Laterite
Limonite
Boulder
Saprolite
Saprolitic rock
Bedrock
End of hole
AGL-362
AGATA NICKELLATERITE PROJECT
Cross Section Line 9550N
9300E8900E
0
50m
50m
9100E 9200E9000E
2.001.08 /49.340.90 /50.00
13.1511.45 4.001.41 /11.561.55 /18.00
2.90
0.63 /48.00
0.92 /53.00
0.69 /47.78
0.94 /51.475.15 1.10
1.87 /12.817.95 6.65
0.96 /11.00
4.85
0.53 /49.77
4.00
0.96 /53.485.30 4.25
1.43 /12.6410.90
1.39 /15.907.15
1.29 /8.00
1.18 /40.001.15
0.90 /51.042.00
FERRUGINOUS LATERITE
LIMONITE
SAPROLITE
250m
150m
AGL-140
AGL-146AGL-500
22.15m
26.8m19.4m
25.3m15.1m
20m
AGL-499AGL-142
AGL-341
16m
AGL-498
200m
300m ASL
100m
1. Limonite: DSO or HPAL2. Saprolite: DSO or Atmos Leach
SURIGAO PROJECTS, AGATA XS
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AGATA NICKEL LATERITE PROFILE
ZONE
FERRUGINOUS LATERITE
LIMONITE
TRANSITION
SAPROLITE
POSSIBLE EXTRACTION PROCESSES
FRESH ROCK
SCHEMATIC LATERITE PROFILE
SAPROLITIC ROCK
CHARACTERISTICS
HIGH PRESSURE
ACID LEACH
ATMOS & HEAP LEACH
THERMAL PROCESSING
Low Ni, High Fe – Thermal reduction to high Ni/Fe product
Moderate nickel 0.8% to 1.2%,Cobalt 0.1% to 0.2% High Iron 40% to 50%HPAL extracts 98% Ni in 20 minutes and 96% Co
Mod-High Ni, Fe (>1.2-1.6% Ni, 22% Fe); low Co
High nickel 1% to >2%High MgOLow IronAtmospheric leach and supplemtn in HPALDSO for nickel >1.8%
SAPROLITE NEUTRALIZATION
SURIGAO PROJECTS
Limonite
Saprolite
Low grade nickel recovered in neutralisation
11
12
• Value Added Shipping Product
– Value-added thermal upgrading
– Direct Ship high-grade saprolite
Sumitomo’s Coral Bay HPAL processing operation, Palawan Island, Philippines, US$550m Capex 2002 -2004, 21,000t Ni pa @ <$2.50/lb Opex to Intermediate Product
• On-site Acid Leach Processing
– High pressure acid leach (HPAL)
– Atmospheric leach
SURIGAO PROJECTS
NICKEL LATERITE DEVELOPMENT OPTIONS
DSO operation south of Mindoro’s Agata Project 12
Lake Mainit
Mindoro tenement boundary
Nickel-iron laterite mineralization
Road
Provincial boundary
4 km0 N
780
,00
0E
1,040,000N
770
,00
0E
1,050,000N
VILLARIZA
KARIHATAG
BOLOBOLO
SAN JOSE
SURIGAO PROJECTSNickel Laterite Prospects
Philippine Sea
LakeMainit
MindanaoSea
Agata Nickel
Laterite Areas
SRMI
SURIGAO CITY
Mat-I
Tapian Main
Tapian SF
Map Area
TAPIAN
CORPLEX AREA
Mindanao Sea
MAMATFA Area
CAN-AGA
EXPLORATION TARGET50 - 70 million DMT @ 0.9 - 1.2% Ni and 28 - 32% Fe
The potential quantity and grade of the Exploration Target described is conceptual in
nature, there has been insufficient exploration to define a mineral resource and it is uncertain if
further exploration will result in the target being delineated as a mineral resource. Until a
feasibility study has been completed there is no certainty that the Company's projections will be
economically viable.13
• Direct Shipping: ECC for 2 m tpa, low capital but lower margin
• Thermal Upgrading: potential value added product
• Acid Leach Processing: Exceptional leaching rates = low operating cost HPAL and Atmospheric Leach (AL) Project:
1. HPAL-AL “Full Monty”: 27,000t Nickel pa, <$2.50/lb Opex; 1.3Bn Capex
2. Agata Base Case: thermal-upgrade then acid-leach 15 - 20,000t Ni tpa, intermediate product, Capex ~50% of above (Economic Analysis by March)
• Next stage: Preliminary Economic Assessment then Integrated project Pre-Feasibility study in parallel with growing resource base
The company’s production objectives are intended to provide an indication of management’s current expectations and are still conceptual in nature. It is uncertain that it will be established that these resources will be converted into economically viable mining reserves. Until a feasibility study has been completed, there is no certainty that these objectives will be met.
NICKEL LATERITE DEVELOPMENT OPTIONSSURIGAO PROJECTS
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Bridging the Gap from Discovery to Development
2011 2012Agata Nickel Project:
Preliminary Economic Assessment
Nickel Regional Resource Growth
Permitting and Approvals Stage 1
Pre-Feasibility for Integrated Project
Definitive Feasibility Study
Gold and Copper-Gold:
JV Cu-Au drilling
Other Gold and Cu-Au drilling
The company’s production objectives are intended to provide an indication of management’s current expectations and are still conceptual in nature. It is uncertain that it will be established that these resources will be converted into economically viable mining reserves. Until a feasibility study has been completed, there is no certainty that these objectives will be met.
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established resources with exploration upside
16
Local miner panning gold
at American Tunnels,
Agata Project
Manila
Luzon
Mindanao
Sea
LOBO
Freeport Taysan Cu-Au Deposit
Gold FieldsJV, earning 75%
Mindoro tenements /
applications
Freeport McMoRan
Porphyry copper-gold prospects
defined by chargeability /
alteration / copper showings
Resource area
Epithermal vein–breccia trends
/ prospects (gold – silver -
copper)
Copper showing
Historical mine / workings
Other prospects [not yet
evaluated]
Road
GOLD AND COPPER-GOLD HIGHLIGHTSBATANGAS PROJECTS
ARCHANGEL PROJECT
NI 43-101 Resource Estimate
Indicated: 9,879,000 t @ 1.1 g/t (337,500 oz)
Inferred: 3,741,000 t @ 0.8 g/t (97,200 oz)
SW BRECCIA
high grade epithermal veins; 5km to test
NI 43-101 Resource Estimate
Indicated: 270,000 t @ 6.49 g/t (56,380 oz)
Inferred: 61,000 t @ 5.35 g/t (10,540 oz)
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85.00m
104.50m
129.10m
57.30m
Trench19.1 g/t Au11.0m
52.25m
6.3 g/t Au8.3m
Incl.: 15.6 g/t Au2.7m
69.40m
LB-13LB-07&06
LB-05,
04&03
180m
ASL
160
140
120
100
80
60
40
12.2 g/t Au30.8m
Incl.: 22.1 g/t Au7.3m
& 29.9 g/t Au4.3m
8.3 g/t Au13.3m
Incl.: 17.0 g/t Au4.1m
3.4 g/t Au6.0m
9.6 g/t Au17.4m
Incl. : 23.6 g/t Au2.8m
9.5 g/t Au32.2m
Incl.: 22.2 g/t Au13.1m
1.67 g/t Au14.0m
Incl.: 4.67 g/t Au2.6m
20m
20m
g/t Au
Thickness of
intercept
6.3 g/t Au8.3m
Quaternary agglomerate
Propylitized andesite wallrock
(chlorite - clay - pyrite quartz
calcite magnetite )
Argillized polymictic breccia
(clay-pyrite chlorite calcite altered)
Pyritic hydrofractured andesite
Quartz - barite - pyrite clay breccia
Quartz - pyrite clay alteration
Clay - pyrite alteration
Fault gouge
Drill hole
Mineralized
intercept
LB-07
End of hole75m
BATANGAS, LOBO PROJECT (SW BRECCIA ZONE)
GOLD HIGHLIGTSCross Section 10170N
Batangas Projects
18
Sea
Balibago
Ahit
Biga
Marita
Bootin
Chargeability Anomalies /
Porphyry Targets
Younger cover rocks
Extensively altered volcanics
intruded by diorite and dacite
Advanced argillic zones from PIMA
analysis
Resource area
Epithermal gold-silver zones
Porphyry-related stockworks
Vein breccia
Boulder field of mineralized massive
silicified rocks – Biga Prospect
Old mine working
Copper showing
Strong chargeability anomalies
(Interpreted sulphide mineralization with
correlating alteration, copper & gold
showings)
Road Creek
Kay Tanda Resource (NI 43-101 Compliant)
CategoryMetric Tonnes
Gold (g/t Au)
Silver (g/t Ag)
Gold (ounces)
Silver (ounces)
Measured 5,737,000 1.11 5.43 205,600 1,022,600
Indicated 4,142,000 0.99 3.04 131,900 405,200
Measured + Indicated
9,879,000 1.06 4.50 337,500 1,427,800
Inferred 3,741,000 0.81 1.75 97,200 210,800
1 Km0
N
BATANGAS, ARCHANGEL PROJECT
GOLD HIGHLIGHTS
• High chargeability and soil geochemistry anomalies over 6km’s, 1km tested.
High grade drilling results, including:61m @ 5.1 g/t Au64m @ 3.5 g/t Au
19
> 100
Au g/t X interval (m)
5 - 15
15 - 30
50 - 100
< 5
30 - 50
v
v
v
v
vv
v
v
v
v
Diamond drill hole location
River / Creek
KTDH-04
CA11 Historical drill hole
RC drill hole location
Younger cover volcanics and
sedimentary rocksv N
100 m0
KT-55
Historical working
Drillhole with pending assay resultsPL-38
PL-21
1.5 g/t gold
17 mand
9.8 g/t gold
6 m
KT-58
1.32 g/t gold
24 m
KT-44
1.19 g/t gold
76 m
KT-55
3.45 g/t gold
64 m
including
9.6 g/t gold
20 m
PL-23
4.03 g/t gold
26 mand
179.16 g/t
Silver
KTDH-20
5.12 g/t gold
61 m
Including
246.41 g/t gold
1 m
20
Most high-grade intercepts were
excluded from resource estimate
due to lack of information on
geological controls.
Batangas Projects
Archangel Project
Gold Highlights
20
+
+
+
AT-3 Trench15m @ 1.3 g/t Au
Estrada Tunnel24m @ 2.8 g/t Au
Assmicor Tunnel49.7 @ 5.7 g/t Au
&33.8m @ 3.1g/t
Pabling Tunnel29.4m @ 2.50 g/t Au
N
1km0
Quaternary alluvium
Intrusive complex
Limestone
Ultramafics with minor basement schist
Copper showing
Gold anomaly in soil
High chargeability anomaly
Artisanal gold or copper mine
Drill hole
Road
Agata North
Laterite
Manila
Luzon
Mindanao
Surigao Projects
Gold Highlights – American Tunnels• High chargeability anomalies over 6 kms.
21
COPPER-GOLD AND PYRITE – Pan de AzucarPAN DE AZUCAR PROJECT
Manila
Luzon
Mindanao50 m
22
Summary:
• Established “licence to operate” outstanding nickel laterite, gold and copper assets in the Philippines
• Development strategy for major integrated, nickel laterite processing project with outstanding metallurgy, infrastructure and locational advantages
• Experienced team with discovery, finance and development capability
• Demonstrating value in 2011 through major nickel project pre-feasibility, nickel resource growth and drilling copper-gold targets
23
C$m
1. Integrated nickel project pre-feas/feasibility: $6.3m
2. Regional nickel resource growth $1.9m
2. Gold and Cu-Au Exploration $1.3m
3. Corporate and Working Capital $1.2m
Total $10.7m (including $0.7m residual)
Projected Use of Funds 2011/12
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ASX: MDO TSXV: MIO FFT: OLM
AustraliaNathan Ryan
NWR Communications+0420.582.887
GermanyRobert Sarcher, Aprendo Capital+49.821.6089051
Canada Penny Gould
VP Investor Relations+1.780.413.8187; 1.877.413.8187
www.mindoro.com