Corporate Presentation - Adriana Resources Inc.

Corporate Presentation
MARCH 2010
Forward Looking Statement
Certain information regarding the Company including management's assessment of future plans and operations,
may constitute
tit t fforward-looking
d l ki statements
t t
t under
d applicable
li bl securities
iti laws
l
and
d necessarily
il involve
i
l known
k
and
d
unknown risks and uncertainties. Without limitation, statements relating to potential mineralization and resources,
mining exploration and development, future plans and objectives of the Company and imprecision of mineral
resources estimates, are forward looking statements that involve various degrees of risk. Certain important risk
factors could cause the Company’s
Company s actual results to differ materially from those expressed or implied by such
forward looking statements including, without limitation, changes in the world wide price of mineral commodities
and currency fluctuations, general market conditions, the uncertainty of future profitability and access to sufficient
capital, risks inherent in mineral exploration, development, construction and mining operations, delays in obtaining
or failures to obtain required
q
governmental,
g
, environmental or other project
p j
approvals,
pp
, environmental risks,, access
to labour and services and competition from other companies. As a consequence, actual results may differ
materially from those anticipated in the forward-looking statements and caution should be exercised on placing
undue reliance on forward looking information. The TSX Venture Exchange does not accept responsibility for the
adequacy or accuracy of this release.
2
Principal Projects
• Lac Otelnuk Project, Nunavik, Québec, Canada
- Largest iron ore deposit
d
in Canada
d with
h the
h potentiall off becoming
b
the second largest in the world
• Iron
o Ore
O e Port
o t Development,
e e op e t, Brazil
a
- Advancing permitting, engineering, and assembling team
to construct a deep sea terminal with annual throughput
of 45 Mtpa
p
• Other Properties, Canada
- Labrador Trough – December Lake Iron Ore Prospect,
Nunavik Québec
Nunavik,
- Labrador Trough – Bedford Iron Ore Prospect, Newfoundland
and Labrador
3
Global Iron Ore Environment
• Iron ore production dominated by the big three:
- Valle,
ll RTZ, and
d BHP
• China is the largest consumer of Iron ore
- Very
e y little
tt e do
domestic
est c p
production
oduct o a
and
d reliant
e a t upo
upon imports
po ts
- Committee for Planning and Reformation stated policy of acquiring
equity in their source of supply
- Inabilityy to influence market p
price provides
p
incentive to
acquire resources
• Japan and Korea are reliant on imports
- Competition and excess demand for product is driving
iron ore price
4
Lac Otelnuk – Location
Strategic
i Resource
• Located in Nunavik, Québec
• 160 km north of Schefferville
• 250 km south of Kuujjuaq
5
Lac Otelnuk – South Zone Resources
2009 NI 43-101 Mineral Resource Estimate
(South Zone only)
(Davis Tube Weight Recovery (“DTWR”) cut-off grade 18%)
Resource
Classification
Tonnes
(in Billions)
% Fe
Head
DTWR
%
%
SiO2
% Fe
DTC
Indicated
4.29
29.1
27.26
3.53
68.00
Inferred
1.97
29.2
26.55
3.51
68.12
Current mineral resource estimate conforms to the CIM standards for such mineral
resource under the categories listed as reported by Watts, Griffis and McOuat Limited
(“WGM”), a independent geological and engineering consulting firm. WGM completed an
NI 43
43-101
101 T
Technical
h i l Report
R
t that
th t describes
d
ib th
the resource calculation
l l ti methodology.
th d l
The
Th
report is available on SEDAR (www.sedar.com). WGM has visited the site, collected
independent core samples and reviewed all the QA/QC data received to date.
6
Lac Otelnuk – South Zone Resources
• Drilling has outlined iron mineralization over a 9 x 2.5 km area in the South Zone –
up to ~120m thick in places
7
Lac Otelnuk – North Zone
Historical Resources
• Diamond drilling in 1970s – presence of significant iron formation similar to South
Zone (31 drill holes totaling 1,349
1 349 metres)
• Drilling tested only one of three contiguous cherty-banded magnetite units – drilling
by Adriana in South Zone tested all three stratigraphic units
• 1975 – mineral
mine al resource
eso ce estimates (non NI 43
43-101
101 compliant) for
fo No
North
th Zone
prepared by MPH total 6.3 billion tonnes
Historical Resource
Estimates for North Zone
Tonnes
(in billions)
%
Mag Fe
%
TFe
Selected Magnetite IF
0.613
25.08
33.92
Other Magnetite IF
0 317
0.317
25 00
25.00
34 00
34.00
Jasper Hematite-Magnetite IF
2.165
14.00
27.00
Banded Cherty Magnetite IF
3.223
15.00
26.55
Total
6.318
16.00
33.00
The historical resource estimates have not been confirmed in accordance with the
standards in NI 43-101 and should not be relied upon.
8
Lac Otelnuk Project – Peer Analysis
Size of Iron Projects World Wide
Owner - Company
El Mutun (Bolivia)
Jindal Steel and Power Ltd.
40.000
Hamersley Consolidated (Australia)
Hamersley Iron Pty Ltd. (Rio Tinto Plc)
13.565
Mikhailovsky Gok (Russia)
Metalloinvest
11.000
Musan ((North Korea))
Tonghua
g
Iron & Steel (Group)
(
p) Co. Ltd.
7.000
Suroyamsky (Russia)
Local Government
6.400
LAC OTELNUK SOUTH ZONE
(Québec, Canada)
ADRIANA RESOURCES INC.
(4.29 indicated, 1.97 inferred)
Labmag (Québec, Canada)
New Millennium Capital Corp.
5.742
Mt Newman (Australia)
BHP Billiton Group
4.087
Bahia ((Brazil))
Bahia Mineracao Ltd.
4.000
Samarco/Samitri (Brazil)
BHP Billiton Group
3.306
Source: Metals Economic Group – October 2008
9
Total Resources
Tonnage – Billions
Project Name
6.260
Lac Otelnuk Project – Peer Analysis
Tonnes
(Billions)
10
45
40
35
30
25
20
15
5
10
5
0
El Mutun
Hamersely Mikhailovsky
Consolidated
Gok
Musan
Suroyamsky
LAC
Labmag
OTELNUK
SOUTH
ZONE
(4.29 indicated
1.97 inferred)
Mt. Newman
Bahia
Samarco/
Samitri
Lac Otelnuk – Project Progress
Technical
• 2007/2008 – completed
p
67 drill hole program
p g
on 9 km x 2.5 km area of South Zone
• Q1/09 – completed NI 43-101 Mineral Resource Estimate South Zone only
• Low stripping ratio – exposed at surface, thick flat lying deposit
• Simple process flow sheet for concentrate (beneficiation and magnetic separation: 67-69% Fe)
• Low impurity levels (i
(i.e.
e P
P, Cr
Cr, S
S, V
V, Ti)
Community
• 2008 – LOI with the Inuit Economic Development Group – Makivik Corporation
• 2008 – Steering Committee with community, local and regional government bodies
• 2008/09 – presented “Lac Otelnuk Infrastructure Concept” to Quebec Government to assist with
“Plan Nord” – Quebec Government’s election platform for northern economic development
• 2009 – various community and government meetings
Infrastructure
• 2006 – completed preliminary cost estimate analysis for transport of concentrate to market via southern route
• 2008 – completed initial engineering review of potential northern deep water port/shipping opportunity
• 2009 – obtained letter of support from the Québec Ministry of Natural Resources expressing willingness to
contribute financiallyy to cost of infrastructure development
p
• 2010 – Quebec Hydro expressed support and willingness to fund 60% of electrical infrastructure
11
Lac Otelnuk Project – Work Program
2010 to Q2 2011
• Complete 10
10,000
000 metres of diamond drilling
• North Zone – program will test entire stratigraphy
• South Zone – program to upgrade a portion of indicated to measured resources
• Update NI 43-101 Mineral Resource Estimate
• C
Complete
l t geo-metallurgical
t ll i l sampling
li and
d testing
t ti
• Complete scoping study for proposed development of the Project
• Continue community relations
Ongoing
g
g
• Continue communication/consultation with stakeholders including Inuit communities, administrative/political
organizations & Québec government
• Continue discussions with governments for infrastructure development support
• Developp strategic
g partnerships
p
p for mine development
p
and iron ore off-take agreements
g
12
Lac Otelnuk Project – Strategy
• Continue to develop resource – prove up the ultimate resource
• Perform Preliminary Economic Analysis or Scoping Study
• Sign an agreement with a strategic partner
• Perform a Bankable Feasibility Study
• Permitting and Design
• Construction
• Production
13
Brazil Port Project – Strategy
Opportunity
• The development of numerous iron ore projects in Brazil is constrained by
lack of access to deep water ports
Strategy
• Permit a deepwater port and exchange interests in the port for interests in
iron ore resources
14
Brazore Brazil – Location
• Iron Ore Port Facility, State of Rio de Janeiro, Brazil
15
Brazore Brazil – Site Location
Brazore’s Proposed Rail
Loop and Stockpile Site
MRS Rail Line to
Iron Quadrangle
Strategic Location
• Port site is located on
coast of Brazil 70 km
west of Rio de Janeiro
(Sepetiba Bay)
• MRS Railway runs
directly through north
edge of port site
• Site is suitable for port
facility with annual
throughput 45 Mt of
iron ore
Deep S
D
Sea
Terminal Site
16
Brazore Brazil – Deep Sea Terminal Location
Benefits
• Opportunity to develop Port to
handle 45 Mtpa iron ore
• Minimum impact and sensitive
to environment due to
underground / water tunnel
and conveyor proposal
• Access to deep water location
(20+ metres depth) minimizes bottleneck on
shipping lanes/channel
• Allows access to iron ore
shipping vessels
( 250 000d t)
(+250,000dwt)
• Multi-generational
development /infrastructure
project and employment
opportunity
17
Brazore Brazil – Project Milestones
Acquired Strategic Port Site Lots
• Purchased coastal industrial vacant lot on the mainland and strategic lot on
the adjacent Itacuruçá Island
Development of Strategic Relationship/Partnership with Worldlink
and Seabulk Systems Inc.
Permitting
• Environmental, engineering, legal and socio-economic consultants have
completed all documentation and permit application and revised application
has been submitted
18
Brazore Brazil – Iron Ore Sources
Brazore is looking to develop relationships with local independent iron
mine operations (highlighted in purple) to export iron ore through its
proposed
d iiron ore port ffacility.
ili
ArcelorMittal
The Iron Quadrangle
of Minas Gerais
contains in excess of
10 billion tonnes high
grade iron ore that
could provide years of
annual throughput at
Brazore’s Port Facility
19
Adriana – Corporate Goals
Advance Québec Iron Ore Strategy:
• Continue to develop/expand significant iron ore resources
• Achieve strategic partnership
• Develop a world class operation
Advance Brazilian Iron Ore Strategy:
• Advance permitting and engineering/design of 45 Mtpa port facility
• Develop Iron Ore Port Facility; secure iron ore resources
Continue to Create World Class Team & Partnerships
• Continue to build new partnerships
• Continue to build a strong operational and management team
20
Experienced Leadership
Allen J. Palmiere, President & CEO
35+ years of extensive experience in senior executive and leadership roles in the mining industry. Former positions
of Chairman and President and CEO of HudBay Minerals Inc., President and CEO of Silk Road Resources Ltd., CEO
and CFO of Breakwater Resources Ltd., CFO of Zemex Corporation, and Executive Chairman of Barplats
Investments Limited.
Daniella E. Dimitrov, General Counsel and Corporate Secretary
16+ years experience in legal and corporate finance. Former positions include Senior Vice President, Strategic
Initiatives of Raymond James, Chief Operating Officer of Dundee Securities, General Counsel of DundeeWealth and
Dundee Corporation and counsel with a national law firm.
N
Norman
L.
L Calder,
C ld
CFO
30+ years of extensive financial experience; positions include Director of Finance of TriNorth Capital Inc., Chief
Financial Officer and Director of Finance of Centiva Capital, Inc., Chief Financial Officer of Silk Road Resources
Ltd., and Treasurer of Breakwater Resources Ltd. Mr. Calder is a Member of Institute of Chartered Accountants.
Frank Condon, P.Eng., Director of Québec Operations, Director
35 years in various positions with Noranda (1964 to 1999), including General Manager, Hopewell Phosphate Corp
(1976 to 1986) where he was responsible for the acquisition, evaluation and development of the Hopewell
Phosphate Mine.
Guilherme de Andrade, Director Port Development, Brazore Ltda.
25+ years of port development, operations, logistics, and commercial and administration expertise, most recently
with Companhia Siderúrgica Nacional (“CSN”) as the Terminal Operations Manager at the Port of Itaguai in the
State of Rio de Janeiro, Brazil and as Terminal Manager for Alumina do Norte S.A, a subsidiary of VALE.
21
Strong Board of directors
Allen J. Palmiere, President & CEO
35+ years of extensive experience in senior executive and leadership roles in the mining industry. Former positions of Chairman and President and CEO
of HudBayy Minerals Inc.,, President and CEO of Silk Road Resources Ltd.,, CEO and CFO of Breakwater Resources Ltd.,, CFO of Zemex Corporation,
p
, and
Executive Chairman of Barplats Investments Limited.
Donald K. Charter, Chairman
Mr. Charter is currently the President of 3Cs Corporation, a private consulting and investment company. Mr. Charter previously was a partner at a
national law firm where he practiced as a securities lawyer specializing in mergers and acquisitions and was the President and Chief Executive Officer of
Dundee Securities Corporation.
Colin K. Benner, Director
Mr. Benner, a professional mining engineer, has extensive national and international experience in mining engineering and management in the mining
industry including leadership roles at EuroZinc Mining Corp., Lundin Mining Corp., HudBay Minerals Inc., Skye Resources Inc., PBS Coal Inc. and
Breakwater Resources Ltd. Mr. Benner is Executive Chairman of Creston Moly Corp., Chairman of Capstone Mining Corp.
Frank Condon, P.Eng., Director
35 years in various positions with Noranda (1964 to 1999), including General Manager, Hopewell Phosphate Corp (1976 to 1986) where he was
responsible for the acquisition, evaluation and development of the Hopewell Phosphate Mine.
Ronald P. Gagel, Director
Mr. Gagel is a chartered accountant with more than 30 years of professional experience, predominantly in the natural resources sector. Mr. Gagel is
currently the Senior Vice President and Chief Financial Officer of FNX Mining Company. Prior to this, Mr. Gagel was the Chief Financial Officer of Aur
Resources Inc.
Donald Siemens, Director
Mr. Siemens brings over 30 years of experience to the board as a Chartered Accountant, including 8 years in public practice as a partner with major
accounting firms, 8 years in senior executive positions in industry and 18 years as a self- employed Financial Services executive. Currently, as an
independent financial advisor, Mr. Siemens specializes in Corporate Finance, cross-border transactions and Mergers & Acquisitions.
22
Strong Board of directors
Robert G. Power, Director
Mr. Power brings corporate leadership and a broad range of experience in energy, environment, law and business. Mr. Power is the Board Chair of EuroMax
Resources. He recentlyy completed
p
a 5-year
y
term as Co-Chair of Blakes National Energy
gy Law Group.
p Previously,
y he lead his own law and consulting
g firm,
chaired Canada's largest foundation, the Ontario Trillium Foundation, and served in leadership roles in both the international ISO and national CSA
environmental standards development processes.
Julio Carvalho, Director
Mr. Carvalho brings over 35 years of experience in the Brazilian mineral resource sector and is currently Chairman and CEO of Rio Novo Holdings S/A,
which owns two developing gold projects in Brazil, and an executive director of Santa Elina Group in Brazil. Previously, Mr. Carvalho was President
and CEO and a member of the board of directors of Peak Gold Limited (now New Gold Inc.).
Colin Blyth, Director
Mr. Blyth is a senior marketing and sales executive with 20 years of progressive international marketing and general sales management experience
with diversified mining and refining companies generating annual revenue ranging from $600M to $3B. Mr. Blyth is currently the Vice-President,
Sales and Marketing for CMC - Coal Marketing Company (USA) Inc. in Atlanta, Georgia, USA. Mr. Blyth was previously Vice-President Marketing Asia for Elk Valley Coal Corporation and for 14 years held senior marketing positions with Teck Cominco Limited.
Paul Yeou, Director
Mr. Yeou is the President & Director of Worldlink (Canada) Resources Ltd., Vancouver, British Columbia, Canada. Worldlink is a private integrated
trading company engaged in import and export of iron ore, coal and other dry bulk commodities. Established in 1992, the Worldlink Group has built
solid marketing channels, relationships and synergies with major steel mills and power plants throughout China and the Far East Asian countries.
Worldlink has a joint venture each with Liuzhou Steel and Lianyuan Steel of China. The Group has also invested in building one of the largest private
bulker ports in China with Zhejiang Energy Group, located in Zhoushan. Phase one of the construction, totalling USD$360 million with annual
throughput of 30 million tonnes, will be completed in Q2 2008. Worldlink started exporting the first capesize Canadian iron ore to China in 2000, and
the first capesize Canadian metallurgical coal to China in 2003.
23
Corporate Share Structure
TSX-V: ADI
(as at February 12, 2010)
Shares Issued:
Options:
Warrants:
78,361,279
8,405,000
n/a
Convertible Debentures*:
11,111,109
Fully Diluted:
97,594,054
52 Week high/low:
Market Cap:
$0.72-$0.15
~$50.4
$50.4 Million
* $6,450,000 debenture convertible into common shares at $0.90 per share on or before September 10, 2010
and $0.99
$0 99 per
pe share
sha e on or
o before
befo e Septembe
September 10
10, 2012
2012. $3
$3,550,000
550 000 debentures
debent es convertible
con e tible into common shares
sha es
at $0.90 per share on or before September 10, 2010 and $0.99 per share on or before September 10, 2011.
24