OMAN - Gentor Resources, Inc.

Gentor
Resources
Copper in Oman
March 2012
1
Disclaimer
Forward-Looking Statements: This presentation contains forward-looking statements. All statements, other than statements of historical fact, that address activities,
events or developments that the Company believes, expects or anticipates will or may occur in the future (including, without limitation, statements relating to
exploration results, potential mineral resources, potential mineralization and the Company's plans with respect to the exploration of its Oman properties) are forwardlooking statements. These forward-looking statements reflect the current expectations or beliefs of the Company based on information currently available to the
Company. Forward-looking statements are subject to a number of risks and uncertainties that may cause the actual results of the Company to differ materially from
those discussed in the forward-looking statements, and even if such actual results are realized or substantially realized, there can be no assurance that they will have
the expected consequences to, or effects on the Company. Factors that could cause actual results or events to differ materially from current expectations include,
among other things, the possibility that future exploration results will not be consistent with the Company's expectations, uncertainties relating to the availability and
costs of financing needed in the future, changes in equity markets, changes in commodity prices, foreign currency fluctuations, political developments in Oman,
changes to regulations affecting the Company's activities, delays in obtaining or failure to obtain required project approvals, the uncertainties involved in interpreting
geological data and the other risks involved in the resource exploration business. Any forward-looking statement speaks only as of the date on which it is made and,
except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result
of new information, future events or results or otherwise. Although the Company believes that the assumptions inherent in the forward-looking statements are
reasonable, forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such information due to the
inherent uncertainty therein.
The United States Securities and Exchange Commission (the "SEC") permits mining companies, in their filings with the SEC, to disclose only those mineral deposits
that a company can economically and legally extract or produce. U.S. investors are cautioned not to assume that any disclosure of mineralization contained in this
presentation is economically or legally mineable. U.S. investors are urged to closely consider all of the disclosures in the Company's reports filed pursuant to the
United States Securities Exchange Act of 1934 which may be secured from the Company, or from the SEC's website at http://www.sec.gov/edgar.html.
Qualified Person
The technical information included in this presentation has been reviewed and approved by Peter A. Ruxton, who is the Company's President and Chief Executive
Officer and a "qualified person" as such term is defined in National Instrument 43-101.
Technical Report
Additional information with respect to the Company's Omani properties is contained in the technical report prepared by Venmyn Rand (Pty) Ltd, dated December 31,
2010 and entitled "National Instrument 43-101 Independent Technical Report on Block 5 and Block 6 Copper Projects, Semail Ophiolite Belt, Sultanate of Oman held by
Gentor Resources, Inc." A copy of this report can be obtained from SEDAR at www.sedar.com.
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Gentor Copper – Corporate Summary
•
Targeting highly profitable, low cost, copper/gold operations
•
Accelerated discovery and development opportunity – low geological risk
•
Building a significant ground position in Oman
Initial assets – 2 blocks in Oman
•
Highly profitable with low embedded operating costs
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
•
Clusters of numerous 1Mt -15Mt deposits typical
Open cut resources with low waste: ore ratios sought
Metallurgically simple ores - copper concentrate produced
Low personnel & fuel costs
Excellent infrastructure & attractive fiscal terms
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Close to port, roads, power & water
5 year tax holiday, then 12% corporate tax, 5% royalty
3
Gentor Resources Inc. – Corporate Overview
Head Office
Toronto, Canada
Listing
TSX-V (GNT) + OTCQB US (GNTOF)
Securities Issued
Shares – 62.8 million
Warrants/Options – 24.5 million
GENTOR RESOURCES SHAREHOLDERS
Share Price
CAD$0.90/sh
Cash
~US$6.8 million
Market Capitalisation
CAD$56.5 million
Galena
Blackrock
Geologic
CQS
Al Fairuz Brothers
Management
TOTAL
Shares
%
6.7
5.3
4.0
1.0
2.5
16.0
10.6%
8.5%
6.4%
1.6%
4.0%
25.5%
35.5
56.6%
62.8 million shares
4
Gentor – Board & Management
Board
•
Simon Village (Non-Executive Chairman)
•
Arnold Kondrat (Executive Vice-President)
(Canadian/US group behind Banro Corporation & Loncor)
•
•
Rudolph de Bruin (Non-Executive)
David Twist (Non-Executive)
(South African group behind Platmin, Sephaku, African Nickel, Taung Gold & APM)
•
Peter Ruxton (President & CEO – Board & Management)
Exploration Management
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Bob Close (Business Development Manager)
•
Eugene Iliescu (MD - Oman)
•
Partha V (Director – Finance & Administration – Oman)
•
Andrew McCarthy (Exploration Manager – Oman-based)
•
Jamie Stewart (Senior Geologist – Oman-based)
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Oman & The Middle East
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Oman Ophiolite – Exploration Blocks
Mawarid
Block 6
Lasail
Yanqul
50 km
50 km
Copper Deposits
Copper Deposits
Copper Smelter Complex
Copper Smelter Complex
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Heli-borne VTEM Survey Results
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Tethyan Fold Belt (Orogeny) – 90-100Myrs – Trans-European
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Mahab 4 Drill Results Summary (to January 2012)
Hole No.
From
To
Mahab 4
m
m
Mineralisation
Intercept
Copper
Gold
Zinc
Silver
m
%
g\t
%
g/t
GRB5D020
40.15
55.55
MS
15.40
7.40
0.17
0.91
7.90
GRB5D030
32.05
63.00
MS + SMS + QVS
30.95
3.16
0.28
1.29
17.40
GRB5D032
67.15
87.45
Jasper + MS
20.30
5.79
0.37
2.42
22.00
GRB5D035
44.42
98.61
MS + SMS + QVS
54.19
4.97
0.19
0.85
9.60
B5MB4D059
33.50
43.69
MS
10.19
6.69
0.48
3.20
20.00
B5MB4D064
13.50
53.00
GOS/MS/SMS
39.50
4.81
0.25
0.38
16.70
B5MB4D070
12.42
36.46
MS
24.04
6.32
0.49
1.10
24.2
B5MB4D071
63.15
120.00
MS + SMS
56.85
6.21
0.22
0.90
10.4
B5MB4D074
70.35
105.44
MS
35.09
4.82
0.38
17.70
0.85
B5MB4D083
45,15
88.44
MS + SMS + QVS
43.29
3.62
0.24
0.90
11.8
Codes (Umber = Fe sediment, Jasper, MS = Massive Sulphide, SMS = Semi-massive Sulphide,
QVS = Quartz Vein Stringer, GOS = Gossan)
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Mahab 4 – Geology & Cross Sections
N
4
25m-50m spaced drill sections
330m long massive sulphide
Thick massive sulphide wedge
Open pittable depth (30-40m)
4
3
3
2
1
11
Mahab 4 – Long Section
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Gentor - Regional Copper Play
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Maqail South Prospect
Maqail South Drill Results Summary (to December 2011)
Hole No.
From
To
m
m
GRB5D0023
68.02
74.27
GRB5D0024
63.71
GRB5D031
43.86
Maqail South
Mineralisation
Intercept
Copper
Gold
Zinc
Silver
m
%
g\t
%
g/t
MS
6.25
3.30
0.16
0.02
2.69
70.39
MS
6.68
7.42
0.29
0.03
4.95
57.46
MS
13.60
3.22
0.08
0.02
0.76
Codes (MS = Massive Sulphide, SMS = Semi-Massive Sulphide, QVS = Quartz Vein Stringer)
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Maqail South – Geology & Cross Section
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Oman Ophiolite – Deposit Styles
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Gentor – Oman Program & Budget 2012
GENTOR RESOURCES - OMAN
PLAN
2012 EXPLORATION PROGRAM
Q1
Drilling
Evaluation
Exploration
Geophysics
Ground Follow-up
Scoping Study
Q2
Q3
Q4
ACTIVITY
Drilling
Assays
Geophysics
Data Costs
Ground Follow-up
Scoping Study
Running Costs
TOTAL
COST (USD '000)
2,000
300
700
200
500
800
500
5,000
Programme – 2012
•
•
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Drilling
• Resource Definition & Metallurgical Test Work – Mahab 4
• Evaluation – drill out Maqail South + other prospects
• Exploration – on-going drilling to discover further VMS deposits
Ground follow-up – on-going to generate further drill targets
Budget 2012 - ~US$5.0m expandable with further discovery success
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Oman Potential – 3 x size of Cyprus
CYPRUS
50 km
Where Cyprus-AMAX & Oxiana
(now Oz Minerals) began
Historical Production
>1.0 million tonnes copper
(see EMED AIM Admission Document)
OMAN
Cyprus & Oman – same geological environment – identical VMS deposit types
Oman Ophiolite is >3x length of Cyprus – yet little modern exploration done....
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Sultanate of Oman
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The Gulf Cooperation Council (GCC) – trade block with common currency
(Rial), established 1981 - including six Gulf countries: Bahrain, Kuwait, Oman,
Qatar, Saudi Arabia and United Arab Emirates
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Monarchy – current Sultan well liked moderniser & highly effective ruler stable, westernised, liberal Middle Eastern Arabic State – >30% expat
population, investor friendly – encouraging foreign investment outside oil & gas
•
Population – small @ ~2.8 million – Muslim country but tolerant to other faiths –
effective rule of law – safe to walk the streets – Arabic but English-speaking
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Excellent infrastructure
o
o
o
Capital Muscat is a modern city – tidy – Infrastructure Budget 2011 US$20bn
Deep sea port of Sohar is a major centre – Rio-Alcan 340,000tpa aluminium
smelter + Vale building iron ore pellitising plant, large oil refinery complex
Prospective areas ~10-15km from coast in mostly flat (wadi) terrain
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Muscat – very much a modern city!
50 km
Copper Deposits
Copper Smelter Complex
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Block 5 – Desert Terrain
Superb infrastructure & outcrop
Wadi flats underlain by
prospective pillow basalt
stratigraphy
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Gentor Copper - Omani Agreements
Blocks 5 & 6
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Block 5 – Equity holding 40% in Al Fairuz Mining LLC - right to earn-in to 65%
by funding to completion of BFS
Omani Partner - Al Fairuz brothers – Heavy Earthmoving Equipment/
Construction/Cannery/Boats - 4% shareholder in Gentor Resources
•
Block 6 – Equity holding 20% in Al Zuhra Mining LLC – right to earn-in to 70%
by funding to completion of BFS
Omani Partner – Sheikh Ahmed Fahrid – owner of some 21 Companies in Oman including
Construction/Telecoms/Tourism/Hotels etc
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Capital Return Agreements – Gentor to re-coup 100% of exploration,
feasibility & development costs on commencement of mining (on a formula)
before dividends split on equity share
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Oman Mining Industry & Fiscal Terms
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Oman is relatively unexplored with Mining Industry still in its infancy
o
o
o
o
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active bulk mining of Chromite & Manganese ores – Chinese off-take
Copper mining by government between 1983-1994 – private participation in 2000
Single copper miner Mawarid commenced production in late 2007
New copper blocks recently released by government
Modern mining law took effect in May 2003
o
o
Aim to encourage foreign investment & participation
Government releases blocks for exploration – process has been slow and unwieldy
– beneficiaries are mainly well connected Omani business men
•
Mining infrastructure excellent – close to main roads, deep-sea port and
national power grid, artisanal water available
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Corporation Tax 5-year holiday & then12% - Government royalty 5.0% - full repatriation
of funds – security of title – historical exploration data available (Kenex GIS database)
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Oman Ophiolite – Exploration & Mining History
Bronze Age
1970s-90s
1973-79
1983-1994
1996-2000
2000/2001
Copper mined in Oman since the Bronze Age
Multinational exploration discovered >44Mt of 1-2% Cu
Prospection Ltd explored entire ophiolite belt discovered 3 deposits
Government-owned Oman Mining Company (OMCO) mined Lasail,
Aarja and Badja – built & still run Copper Smelter & Lasail Refinery
JICA (Japanese) regional exploration with >150 copper prospects
Private company - Mawarid Mining - owned 100% by Omani MB
Petroleum Group acquired first 3 Exploration Blocks:
 commenced exploration in October 2000 on Blocks 1 & 2 + Ghuzayn
 found 3 outcropping VMSs in <6mths - Shinas & Hatta (2x): 3.5Mt @ 2.5% Cu –
with a 3-4yr mine life – currently processing @ 1Mtpa ore
mid-2007
Open pit mining commenced – free cash US$60m in Yr1
 Concentrate treated at Omani OMCO smelter with some exported
 VTEM survey by Mawarid in 2009 - 4 new discoveries – 3 to be mined from 2011
2008/2009
Government offered copper blocks for tender
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Block 5 – Google Map & JICA Targets
Safwa
Mandoos
Known VMS deposits
New VMS discoveries
JICA VMS prospects
25
OMCO – Lasail Complex
Lasail Cluster Mine
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1973 – Lasail, Aarja & Bayda deposits discovered by
Prospection
Projects purchased by Oman government – assets held
under OMCO
Concentrator, smelter & refinery complex built
Reserve of approx. 10Mt @ 1.5% Cu defined
1983-1994 – Mining of the Lasail Cluster
1994 - mine closed on lower copper prices
Concentrate imported to continue Lasail smelter
operation
2005 – Mawarid purchased the concentrator @ Lasail
(OMCO continue to operate the smelter & refinery)
Mawarid under contract to supply at least 30% of
concentrate to OMCO
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Yanqul – OMCO (Oman Government)
Yanqul Project
•
•
•
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1974 – Discovered by Prospection (Canadian)
1988 - Japanese exploration & feasibility
1994 - Oxide gold mining commenced
1984-2012 - Six feasibility studies done
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Mineral Resources
• 15Mt @ 1.2%-1.4% Cu & 1.0g/t Au
• 5 near-surface deposits
Rakah, Hayl As Safil, Al Asghar
Al Bishara & Al Jadeed
• Rakah East 2.0Mt @ 0.7% Cu additional
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Ore Reserves
• 8.1Mt @ 1.2% Cu & 0.7g/t Au
• Open pittable reserves only
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Mawarid – MB Petroleum
Mawarid Mine
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•
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1999/2000 – Hatta & Shinas deposit clusters discovered
by Bob Close
2007 – Mining @ Hatta & Shinas commenced on reserve
of 3.5Mt @ 2.5% Cu
2008 – Mawarid made US$120m free cash flow in Year 1
– paid off US$60m capex in 6 months
2009 – Exploration recommenced using VTEM
2010 - Discovered Safwa & Mandoos
2011 – Mining commenced on Safwa & Mandoos
Mawarid has approximately 2 years of open pit reserves
and then proposes to go underground at Ghuyzan
Ghuyzan has 3 deposits ~10Mt @ 1.5-2.0% Cu
Mawarid has taken 9.8% of Nautilus & is exploring in
Kazakhstan for gold
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Gentor Resources – VMS Copper Focus
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Large land position - ~1,500km2 of prospective ophiolite in 500km prospective
belt (‘first mover’ advantage)
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Along strike from operating VMS copper mines – in same geology
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Well academically studied Belt but significantly under-explored economically
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Potential for accelerated discovery using modern techniques (eg VTEM)
•
Excellent infrastructure (access, power, communication, water)
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Low cost – highly profitable mining environment
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