TSX: SMC - Sulliden Mining Capital

Transcription

TSX: SMC
Corporate Presentation
June 2016
Focused on Acquiring, Developing
& Actively Investing in Quality
Mining Projects
Cautionary Statements
This presentation may include certain “forward-looking statements” within the meaning of applicable Canadian securities legislation. All
statements, other than statements of historical fact, included herein, including, without limitation, statements regarding future plans and
objectives of Sulliden Mining Capital Inc. (“the Company”), future opportunities and anticipated goals, projected capital and operating
expenses, timetable to permitting and production and the prospective mineralization of the properties, are forward-looking statements
that involve various risks, assumptions, estimates and uncertainties. Generally, forward looking information can be identified by the use
of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates",
"forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain
actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". There can be no assurance that
such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such
statements. Forward-looking information is subject to known and unknown risks, including but not limited to: general business,
economic, competitive, geopolitical and social uncertainties; the actual results of current exploration activities; acquisition risks; and
other risks of the mining and resource industry. Although the Company has attempted to identify important factors that could cause
actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not
to be as anticipated, estimated or intended. These statements reflect the current internal projections, expectations or beliefs of the
Company and are based on information currently available to the Company. The Company does not undertake to update any forwardlooking information, except in accordance with applicable securities laws. The Company believes that the expectations reflected in
those forward-looking statements are reasonable but no assurance can be given that these expectations will prove to be correct and
such forward-looking statements included in this presentation should not be unduly relied upon by investors as actual results may vary.
Unless required to be updated pursuant to securities laws, these statements speak only as of the date of this presentation and are
expressly qualified, in their entirety, by this cautionary statement.
Non-IFRS Performance Measures: The Company has included in this document certain non-IFRS performance measures related to
working capital. These non-IFRS performance measures do not have any standardized meaning prescribed by IFRS and, therefore,
may not be comparable to similar measures presented by other companies. The Company believes that, in addition to conventional
measures prepared in accordance with IFRS, certain investors use this information to evaluate the Company’s
performance. Accordingly, they are intended to provide additional information and should not be considered in isolation or as a
substitute for measures of performance prepared with IFRS.
The technical content of the presentation was reviewed and approved by the Company’s Project Evaluations Manager, Joseph
Milbourne, who is a Qualified Person within the meaning of National Instrument 43-101. Mr. Milbourne has reviewed and approved the
scientific and technical aspects of this presentation.
TSX: SMC | www.sulliden.com
2
Who We Are
Our team has a history of value creation. Three of our former
companies were taken over at significant premiums since 2002.
2002-2006 (Acquired by Yamana Gold)
Feasibility Study
Mineral growth
Permits obtained
Fully funded
Operational
2007-2009 (Acquired by B2Gold)
Mineral growth
Environmental approvals
Operational
2009-2014 (Acquired by Rio Alto)
Mineral resource growth
Advanced stages of permitting
3
What We Do
We generate value through the acquisition and development of
quality mining projects. In addition, we identify opportunities
across industries for active investments.
In 2014, Sulliden Mining Capital
began trading on the TSX with
$25M in cash. Today, we have
over $30M in working capital.*
We takes an active role in our investments
by being involved at the Board level, or with
contributions from our technical advisory
team to ensure the proper execution of the
projects we are invested in.
*Adjusted working capital as at June 15, 2016, including Fair Market Value of Sulliden’s share holdings of Aguia
Resources. See next slide for breakdown. See slide 2 for details related to Non-IFRS Performance Measures.
Our management team has extensive
experience in the areas of mine exploration,
permitting, construction, operations, and
capital markets, which enabling us to identify
high quality projects and companies to invest
in, or acquire.
4
Performance & Share Value
Capital Structure
Intrinsic Value*
Capitalization Summary (as at Jun.15, 2016)
Shares Outstanding
Warrants
Options
Value of Sulliden Holdings
Avg. purchase price: $0.08/share
ASX:AGR as at June 15, 2016: $0.13/share
~36.9 M
~2.5 M
~3.5 M
$0.25/ Sulliden share
Avg. purchase price: $0.22/share
TSX:BSX as at June 15, 2016: $0.84/share
Cash:
Value of Investments*
~$3 M
Purchase price: $0.07/share
CNX:CPN as at June 15, 2016: $0.07/share
~$27 M
Performance (as at June 15, 2016)
Share Price
52-week range
Market Capitalization
$0.40
$0.19 - $0.45
~$13.6 M
Combined value
of 10 other
investments:
Sulliden Value of Investments + Cash
~$30M working capital
*Adjusted working capital as at June 15, 2016, including Fair Market Value of Sulliden’s share holdings of Aguia
Resources. See slide 2 for details related to Non-IFRS Performance Measures. | *Intrinsic value as at June 15, 2016
5
Major Projects & Investments - Overview
A selection of our most important projects and investments, include:
Troilus Gold Project
Past-producing gold/copper/silver mine, Quebec
 2-year option agreement with First Quantum Minerals (May 2016) to purchase 100% of the project
Rovina Valley Gold project
2nd largest gold deposit in Europe, Romania
 $5M invested in May 2016. Two Sulliden representatives join the Carpathian board of directors.
Rio Grande Phosphate Project
Feasibility-level project, first-mover in the region, Brazil
 Sulliden holds 69.7M shares, or 19% of Aguia`s outstanding shares.
Volta Grande Gold Project
Multi-million ounce gold project in permitting phase, Brazil
 Sulliden holds 8.5M shares, or 2.2% of outstanding shares.
East Sullivan
Past-producing polymetallic mine, Quebec, Canada
 100% ownership
6
Major Projects & Investments - Location
Abitibi Region, Quebec, Canada
Transylvania, Romania
Para State, Brazil
Rio Grande do Sul, Brazil
7
Rovina Valley Project - Overview
$5M invested in May 2016. Two representatives from Sulliden
join the Carpathian Board (See May 19, 2016 press release)
Gold, Copper and Silver project located in Romania.
Second largest gold deposit in Europe.
Overview
 Project covers 94 km² within the “Golden Quadrilateral”, in westcentral Romania.
 This famous mining district has been Europe's most important gold
producing region for over 2000 years (+55M oz. of historic gold
production)
 Three porphyry gold-copper deposits identified to date:
Rovina, Colnic, and Ciresata.
 PEA completed in March 2010 demonstrated attractive economics
 Good existing infrastructure (roads, water and power)
Investment Details
 CAD$5,000,000 invested in Carpathian on May 19, 2016. 71,428,571 units acquired at $0.07 each.
 Each unit is comprised of one common share + one ½ warrant priced at $0.12 (valid for a period of two years).
The warrant may be accelerated if Carpathian shares trade above $0.15 for 20 consecutive days.
 Two Sulliden representatives have joined Carpathian’s board of directors.
8
Rovina Valley Project - Property Map
EXPLANATION

Three gold-copper deposits
identified to date

Many other targets identified;
substantial exploration upside
*Geological map showing
porphyry mineralisation
centered on subvolcanic
quartz diorite to andesite
stocks intruded 10 – 13 Ma
9
Rovina Valley Project

Latest NI 43-101 mineral resource
estimate (July 2012) demonstrates
over 10 million ounces of Gold
Equivalent Measured & Indicated
mineral resources
For Au Eq. calculation, determined by using a gold price of $US1,370/oz and a copper price of $3.52/lb (3yr trailing avg. as of July 10, 2012),
metallurgical recoveries are not taken into account. In-pit resource calculation based on US$1,313/oz Au oz and $2.27 to $2.57/Cu. Cut-off grades
used of 0.25% Cu eq for the Rovina deposit, 0.35 g/t Au eq for the Colnic deposit and 0.65 g/t Au eq for the Ciresata deposit.
* Mineral resources that are not mineral reserves do not have demonstrated economic viability. See Forward Looking Statements on slide 2.
10
Troilus Project - Overview
2-year option agreement with First Quantum
Minerals to acquire past-producing Troilus Mine
(See May 2, 2016 press release)
Overview
 Approximately 4,700 hectares of mining and exploration claims,
and surface rights in the Abitibi region of Quebec, Canada
 Located in the east domain of the Frotet-Evans Greenstone Belt
History
 Past-producing gold/copper/silver mine (1996-2010) produced in
excess of two million ounces of gold and 70,000 tonnes of copper*
Option Agreement with First Quantum:
 2-year option agreement to purchase 100% interest in Troilus Mine
 During this period, Sulliden commits to spend a min. of $1M on
technical studies to evaluate the economic viability of the project.
Agreement Payment Structure




$100,000 to First Quantum upon signing (completed)
Additional cash payment of $100,000 on the 1st anniversary of Agreement
Final cash payment of $100,000 on the date of exercise of the Option
First Quantum to receive a Net Smelter Royalty (NSR) of 1.5% or
2.5% depending on the gold price being more or less than $1,250/oz
*Source: Technical Report on the Troilus Gold-Copper Mine dated July 25, 2016. Report
prepared for Copper One Inc., and can be found on their profile at www.sedar.com.
11
Troilus Project - Location
12
Troilus Project - Property Geology


From 1996 to 2010,
the Troilus mine
operated from two
open pits: J4 and 87
J4
87
Gold mineralization at
Troilus is hosted in
brecciated marginal
series rocks
13
3D Section of Troilus Zones Looking East
14
3D Section of Troilus Zones Looking North
15
Mineral Resources (as at April 22, 2016)
Updated mineral resource estimate as at April 22, 2016, completed by Roscoe
Postle Associates Inc. with focus on a potential underground mining scenario.
Underground Mineral Resources (as at April 22, 2016)
Classification
Indicated
Zone
Tonnage (Mt)
Au (g/t)
Cu%
AuEq (g/t)
Contained Gold
(000 oz)
Contained
Copper (Mlb)
Contained AuEq
(000 oz)
Z87
29.6
1.48
0.157
1.72
1,403
102.2
1,635
J4
-
-
-
-
-
-
-
J5
-
-
-
-
-
-
-
29.6
1.48
0.157
1.72
1,403
102.2
1,635
Z87
7.9
1.19
0.138
1.41
305
24.2
360
J4
4.4
1.15
0.040
1.21
163
3.9
172
J5
0.3
0.98
0.045
1.05
10
0.3
11
12.6
1.18
0.102
1.33
478
28.4
543
Total Indicated
Inferred
Total Inferred
Notes:
1.
2.
3.
4.
5.
6.
7.
CIM definitions were followed for mineral resources.
Mineral resources were estimated at a cut-off grade of 0.8 g/t Au.
Mineral resources were estimated using long-term metal prices of US$1,500 per ounce gold and US$3.50 per pound copper; and an exchange rate of US$1.00 = C$1.1.
AuEq = (34.59 * Au Grade + 54.02 * Cu grade)/ 34.59
A recovery of 83% was used for gold and 92% for copper.
Numbers may not add due to rounding.
Other than the receipt of necessary permits and ongoing reclamation obligations, Sulliden does not know of any material legal, political, environmental or other factors that could
affect the development of the project.
16
Open Pit Mineral Resources (as at April 22, 2016)
Classification
Indicated
87
-
-
-
-
-
-
Contained
AuEq
(000 oz)
-
J4
12.2
0.84
0.044
0.91
329
11.8
356
J5
2.2
0.80
0.052
0.88
57
2.5
63
14.4
0.83
0.045
0.90
386
14.3
419
Z87
-
-
-
-
-
-
-
J4
2.9
0.85
0.043
0.92
81
2.8
87
J5
0.7
0.78
0.059
0.87
18
0.9
20
J4 Low
2.5
0.56
0.049
0.64
45
2.7
51
6.1
0.73
0.048
0.81
144
6.4
158
Zone
Total Indicated
Inferred
Total Inferred
Notes:
1.
2.
3.
4.
5.
6.
7.
Tonnage (Mt)
Au (g/t)
Cu%
AuEq (g/t)
Contained Gold
(000 oz)
Contained
Copper (Mlb)
Mineral resources were estimated at a cut-off grade of 0.3 g/t Au and were constrained by a Whittle pit shell.
Mineral resources were estimated using long-term metal prices of US$1,500 per ounce gold and US$3.50 per pound copper; and an exchange rate of US$1.00 = C$1.1.
Other than the receipt of necessary permits and ongoing reclamation obligations, Sulliden does not know of any material legal, political, environmental or other factors that could
affect the development of the project.
17
Total Open Pit and Underground Mineral Resources (as at April 22, 2016)
Classification
Tonnage (Mt)
Au (g/t)
Cu%
AuEq (g/t)
Contained Gold
(000 oz)
Contained Copper
(Mlb)
Contained AuEq
(000 oz)
Total Indicated
44.0
1.27
0.120
1.45
1,789
116.5
2,054
Total Inferred
18.7
1.03
0.084
1.16
622
34.8
701
Notes:
1.
2.
Open pit Mineral Resources were estimated at a cut-off grade of 0.3 g/t Au and were constrained by a Whittle pit shell. Underground Mineral Resources were estimated at a cutoff grade of 0.8 g/t Au.
3.
Mineral Resources were estimated using long-term metal prices of US$1,500 per ounce gold and US$3.50 per pound copper; and an exchange rate of US$1.00 = C$1.1.
4.
5.
6.
18
Troilus Project - Opportunity
The former mill was sold, however
key infrastructure remains, including:
 Network of roads
 Permitted tailings pond
 Office building and garage
 Water treatment facilities
 Core storage area
 Electrical transformer station
19
East Sullivan Project - Overview
Project retained following the Rio Alto
and Sulliden Gold Corporation transaction (May 2014)
Overview
 334 hectares in the Abitibi region of Quebec, Canada
 Property located 2 km north of Cadillac Break, a major fault zone in the district
History
 Underground base metal mine operated on the property from 1949-1966
 1950s: gold-bearing zone discovered about 900 m from the mine shaft
 1980s: drilling conducted on the gold target (98 holes, 11,500 m)
Opportunity
 Total of 180 drill holes (22,768 m) define a high-grade gold zone
 Gold zone remains open - potential larger deposit
 Potential for an economic and technically feasible mining operation
Development Strategy
 Compile and index all historical geological data related to the gold zone
 Drilling: Confirm gold zone with larger core in a denser array, and define size
 Technical study: Mineral resource estimate & mine operation potential
20
East Sullivan - Sample Section (6600E)
Selected intercepts from section 6600E
 2.1 g/t gold over 10m, including 4.4 g/t over 2.8m
 4.2 g/t gold over 5.2m, including 10.7 g/t over 1.9m
 6.8 g/t gold over 7.2m, including 16.8 g/t over 2.7m
Shearzone
21
Aguia Resources (ASX: AGR)
Shares held: 69.7M (19%)
Average purchase price: $0.08
Aguia Resources (ASX:AGR) as at June 15, 2016: $0.13/share
2015 performance: +243%
22
Aguia Resources – Rio Grande Overview
Fertilizer company aiming to produce domestic sources of
phosphate to supply booming Brazilian agricultural sector.
Project Overview
Excellent Location
 Project covers 39,000 ha in heart of southern agricultural region
 Ideal location with proximity to local infrastructure and consumers
Positive PEA Completed in 2015*
 500,000 tonnes of SSP per annum
 Projected OPEX of ~US$160.7/tonne of SPP (top quartile low cost producer)
 Projected CAPEX ~US$184 million (US$209 with contingency)
 NPV (5%)US$273 million and IRR 25% with payback in 3.2 years
Large Resources & Growth Potential
 Três Estradas resource
 One of many deposits held by Aguia, offering excellent future growth potential
Brazil
Opportunity
 Brazil currently imports 65% of its phosphate requirements.
 Aguia will have a sustained logistical advantage – first mover in the region
Upcoming Catalysts




Updated and optimized PEA expected in Q3 2016
Maiden Joca Tavares JORC resource and EIA submission expected in Q3 2016
Permitting advancements and Feasibility Study in 2016
Construction start expected in 2017
*See press release issued by Aguia dated August 19, 2016
23
Rio Grande - Low Cost Growth
Large resource and excellent long-term growth potential.
Rio Grande Mineral Resource (2015)
 JORC compliant phosphate resource of:
15.2Mt Indicated, 54.9 Mt Inferred @ 4.20% P2O5
 Recent drilling program expanded strike length
of deposit by 1.3km to 2.5km
Previous JORC
Resource
 Higher grade oxide zone at surface doubled, now
totalling combined Indicated and Inferred 3.9Mt
grading 10.25% P2O5
Sample from
TRÊS ESTRADAS
Rail going through
the property
Recently completed
drill program
extending JORC
resource
24
Rio Grande - Path to Higher Returns
Aguia will optimize the PEA ahead of the Feasibility Study;
material improvements are expected.
PEA Completed in 2015*
 500,000t of SSP per annum
 Calcite by-product 630,000t per year
(market = $47/tonne)
 Projected OPEX of ~US$160.7/t of SPP
(top quartile low cost producer)
The following factors will be considered
to enhance the PEA:
 Inclusion of a +600,000t per year calcite
plant to enhance cash flow and minimize
the volume of waste product;
 Potential inclusion of nearby
higher-grade deposit in the mine plan;
 Projected CAPEX ~US$184 million
(US$209 with contingency)
 Optimized metallurgical recoveries;
 NPV (5%) US$273 million; IRR 25%
 Trade-off study of a phosrock only operation
(simplified development timeline, reduced CAPEX);
 Payback in 3.2 years
 Alternative, more cost effective logistics solutions;
 Long-term currency implications;
 Further optimization of the mine plan.
 Updated PEA expected in 2016
*See press release issued by Aguia dated August 19, 2015
25
Belo Sun Mining (TSX: BSX)
Shares held: 8.5M (2.2%)
Average purchase price: $0.22
Belo Sun (TSX: BSX) as at June 15, 2016: $0.84/share
*Working Capital is calculated as: Current Assets - Current Liabilities. See slide 2 for details related to Non-IFRS Performance Measures
26
Belo Sun Mining - Volta Grande Overview
Belo Sun is developing a low-cost open pit gold mine in Brazil.
Project Overview
Excellent Location
 Brazil: a mining-friendly country
 Para State: 2nd most active mining state in Brazil; goal to be #1
Advanced Stage of Development
 Construction license expected in 2016
 All surface rights acquired
Positive Feasibility Study
 17 year mine life; average annual gold production of 205,000 oz
 First 10 years: 268,000 oz gold annually
 Pre-Tax IRR of 36%; Pre-Tax NPV of $918M (1)
 Post-Tax IRR of 26%; Post-Tax NPV of $640M (1)
Large Resources & Reserves; Excellent Long-term Growth Potential
 Reserves: 3.8M oz at 1.02 g/t (2)
 Resources: Measured, 5Moz at 0.99 g/t and Inferred, 1.1Moz at 0.90 g/t
 Property covers over 120 km of “Três Palmeiras” greenstone belt
Volta Grande
Project
Opportunity
 Potential transition to production in next 2 years
Upcoming Catalysts
 Construction license expected in 2016
27
Volta Grande - Feasibility Study
Feasibility Study Results (March 2015)
Production
 Average LOM annual gold production of 205,000 oz, 17 year mine life
 First 10 years: 268,000 oz gold annually
Economics
 Pre-Tax IRR of 36%; Post-Tax IRR of 26% ($1,200 / oz Au)
 Pre-Tax NPV of $918 million; Post-Tax NPV of $640 million (5% discount rate)
Operating Costs
 Average cash operating costs of $618 / oz Au
 All-in sustaining cash operating costs of $779 / oz Au
Strip Ratio
 Strip ratio of 4.3:1
CAPEX
 Pre-production capital costs of $298 million
 Annual LOM sustaining capital costs of $7.3 million
*$1,200 / oz Au; Reais:Dollar exchange rate of 3.1:1; See Belo Sun press release dated March 30, 2015 for details related to this study.
28
Volta Grande - Property
Belo Sun owns the property covering +100km of strike length on
the “Três Palmeiras” Greenstone belt; a large underexplored area
with tremendous blue sky potential.
29
Volta Grande - Mineral Resources
North Block (2015)
Total Measured & Indicated
(0.4g/t cut-off)
Total Inferred (0.4g/t cut-off)
Avg. grade
Tonnes (Mt)
Gold
0.99 g/t
156.520
4,954,000 oz
0.90 g/t
39.690
1,148,000 oz
North Block
(2015 Feasibility Study)
200,000 m of drilling
South Block
(5km from North Block)
20,000 m of drilling
South Block (2013)
Avg. grade
Tonnes (Mt)
Gold
Total Indicated (0.5g/t cut-off)
3.06 g/t
2.503
246,000 oz
Total Inferred (0.5g/t cut-off)
3.94 g/t
2.921
370,000 oz
30
Strong Management Team
 High calibre team with a proven track-record
and a long history of working together
Senior Management Team
Board of Directors
Justin Reid, MSc., MBA, CEO; Director
Stan Bharti, P.Eng., Chairman
 Geologist and capital markets executive with
+20 yrs focused in the mineral resource space
 Former President and Director of Sulliden Gold, Senior mining analyst
at Cormark and Managing Director Global Mining Sales at NBF
Justin Reid, MSc., MBA, President & CEO; Director
Peter Tagliamonte, P.Eng., MBA Executive Director
Bruce Humphrey, P.Eng., Director
Paul Pint, CPA, CA, President
 +20 yrs of capital markets experience
 Has held a number of senior positions at various financial
institutions and boutique investment banks in Canada.
Hon. Pierre Pettigrew, p.c., Director
Diane Lai, MBA, Director
Peter Tagliamonte, P.Eng. MBA, Senior VP; Executive Director
 30 yrs of experience in mine building and operations
with particular focus in Central and South America
 Former CEO Sulliden Gold, Central Sun Mining and COO of Desert Sun
Joe Milbourne,FAusIMM, Corporate Evaluations Coordinator
 Metallurgist with +40 yrs experience in Central and South America
 Former head of process engineering at AMEC Mining and Metals.
International experience with BHP, Eldorado and Cominco
Stéphane Amireault, MScA., P.Eng., Senior Geologist
 Professional engineer with +25 yrs experience in gold exploration
 Extensive experience in Central and South America, particularly in Peru
31
Former Mine Development Successes
2002 - 2006
Value generated through the development of the
mine to production and exploration success
Acquired by:
Mineral growth
Permits obtained
Fully funded
$1.00
$48.38
$11.26
invested
April 2002
value as of
Nov 2012
value as of
Jan 2015
32
2007 - 2009
Value generated through exploration
success and mine development
Acquired by:
Environmental
approvals
Mineral growth
Global
Financial
Crisis
$1.00
$3.89
$1.73
invested
Dec 2007
value as of
Mar 2012
value as of
Jan 2015
33
2009 - 2014
Value generated through resource growth
and advancement of mine to construction
Mineral resource growth
Advanced stages of permitting
Acquired
in 2014 by:
Acquired
in 2015 by:
$1.00
$3.86
$4.23
invested
Jan 2009
value as of
Jan 2015
value as of
Apr 2015
34
Sulliden Mining Capital Inc.
800-65 Queen Street West
Toronto, Ontario M5H 2M5
TSX: SMC
www.sulliden.com
Investor Contact
Caroline Arsenault
Corporate Communications
+1 (416) 861-5805

TSX: SMC - Sulliden Mining Capital

Transcription

Similar documents

Lebus.com » Wendover

TSX: SMC - Sulliden Mining Capital

I`m helping to end MS by participating in the 2016 Jayman BUILT MS

The Board of Directors of Qatar Fuel (WOQOD) is pleased to invite

ROTH Precious Metal Corporate Access Day

5 `S` Training Program at ABV-IIITM, Gwalior on 21.07.2016

Porky Expo Flyer

The NeuLion Report

Sept 30-Oct 2, 2016 Nov 4-6, 2016 @Camp Tadmor

4 star ALOE HOTEL, PAPHOS

the Guidelines for the registration on