1
AFRICAN LION RESOURCES NEW GOLD DEPOSIT DISCOVERY IN MOZ AMBIQUE - - PowerPoint PPT Presentation
AFRICAN LION RESOURCES NEW GOLD DEPOSIT DISCOVERY IN MOZ AMBIQUE - - PowerPoint PPT Presentation
1 AFRICAN LION RESOURCES NEW GOLD DEPOSIT DISCOVERY IN MOZ AMBIQUE CHIFUNDI GOLD PROVINCE DISCOVERY: Potentially one of the most exciting African Gold deposit discoveries in recent years KOBUS BADENHORST INDEPENDENT CONSULTANT
DISCLAIMER - IMPORTANT NOTICE
By accepting this confidential presentation (the “Presentation Materials”), and in consideration of it being made available to the you, you agree to keep strictly confidential the information contained in it and any information otherwise made available to you by African Lion Resources Ltd (the “Company”), whether orally or in writing, in connection with the proposed issue of convertible loan notes by the Company to a limited number of qualified investors. If you receive this Presentation on behalf of a corporation, the information contained herein may only be disclosed to such of the recipient corporation’s directors, officers or employees as are required to review it for the purpose of deciding on investigating further the possibility of investing in the Company. This Presentation has been provided to each recipient at their request, solely for their information, and may not be reproduced, copied, published, distributed or circulated, to any third party, in whole or in part, or published in whole or in part for any purpose, without the express prior consent of the Company. This Presentation is a presentation of information about the Company’s activities as the date of the Presentation. It is information in a summary form and does not purport to be complete. It is not intended to be relied upon as advice to investors or potential investors and does not take into account the investment objectives, financial situation or needs of any particular investor. These should be considered, with or without professional advice, when deciding if an investment is appropriate. The information has not been independently verified and is subject to material updating, revision and further amendment. The sole purpose of this Presentation is to provide information on the Company to those parties who have expressed an interest in investigating the possibility of investing in the Company, in order that they may assess whether or not they wish to proceed with a more detailed review of the matters discussed in this Presentation. This Presentation and its contents do not, and are not intended to, constitute, or form any part of, an offer for sale, prospectus, invitation to subscribe for or purchase or otherwise acquire transferable securities in the Company within the meaning of sections 85 and 102B of the Financial Services and Markets Act 2000, as amended (“FSMA”), nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract or commitment to acquire any securities. No undertaking, representation, warranty or other assurance, express or implied, is made or given by or on behalf of the Company, or any of its respective affiliates, any of their respective directors, officers, employees, agents, advisers or any other person as to the accuracy, completeness or fairness of the information or opinions contained in this Presentation No reliance should be placed on the accuracy, completeness or fairness of the information or opinions in this Presentation, and no responsibility or liability is accepted for any such information or opinions, or for any errors or omissions. No person has been authorized to give any information or make any representations other than those contained in this Presentation and, if given and/or made, such information or representations must not be relied upon as having been so authorized. The contents of this Presentation are not to be construed as legal, financial or tax advice. Each prospective investor should contact his, her or its own legal adviser, independent financial adviser or tax adviser for legal, financial or tax advice. The information contained in this Presentation is being supplied as a guide only, and prospective investors must make their own investigations and satisfy themselves as to the condition of the Company and the accuracy and completeness of the statements contained herein. This Presentation should not be considered a recommendation by the Company or any of its respective directors, officers, employees, agents, advisers or any other person in connection with any purchase of, or subscription for, securities of the Company. No liability is or will be accepted for such information by the Company or any of its respective directors, officers, employees, agents or advisers or any other person. This Presentation contains forward-looking statements and has been based upon a number of assumptions, forecasts and projections which by their nature are forward-looking. These statements relate to the future prospects, developments and business strategies of the Company. Forward-looking statements may be identified by the use of such terms as "anticipate", "assume", “believe”, “could”, “envisage”, “estimate”, "expect", "forecast", “potential”, “intend”, “may”, “plan”, "should", “will” or the negative of those, variations or comparable expressions, including references to assumptions. The forward-looking statements contained in this Presentation are based on current expectations and beliefs, and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied by those statements. If one or more of these risks or uncertainties materialises, or if underlying assumptions prove incorrect, the Company’s actual results may vary materially from those expected, estimated or projected. Given these risks and uncertainties, potential investors should not place any reliance on forward-looking statements. These forward-looking statements speak only as at, and on the basis of information known at, the date of this Presentation. Forward looking information in this Presentation includes, but is not limited to, the Company’s objectives, goals or future plans, statements, exploration results, potential mineralization, the estimation of mineral resources, exploration and mine development plans, timing of the commencement of operations and estimates of market conditions. Factors that could cause actual results to differ materially from such forward- looking information include, but are not limited to failure to identify mineral resources, failure to convert estimated mineral resources to reserves, the inability to complete a feasibility study which recommends a production decision, the preliminary nature of metallurgical test results, delays in obtaining or failures to obtain required governmental, environmental or other project approvals, political risks, uncertainties relating to the availability and costs of financing needed in the future, inflation, changes in exchange rates, fluctuations in commodity prices, delays in the development of projects, capital, operating and reclamation costs varying significantly from estimates and the other risks involved in the mineral exploration and development industry. Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this Presentation are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this Presentation, and no assurance can be given that such events will occur in the disclosed time frames or at all. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law. Neither this Presentation nor any copy of it may be taken or transmitted into the United States of America or distributed directly or indirectly, in the United States of America or to any resident thereof except in compliance with U.S. securities laws. The technical and scientific information in this document was reviewed and approved by Ricardo Valls, P.Geo.M.SC, Independent Competent Person under the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves and a Qualified Person under National Instrument 43-101.
LOCATION – ALR Gold Project
3
MOZAMBIQUE
- Politically stable & multi-party
democracy
- One of the strongest growing
and most politically stable countries in Africa
- GDP forecast >7% from 2017
- nwards
- 80% of World Bank’s MICA
Guarantees Issued in Mozambique
- “Mining friendly” - High inflow
- f Foreign Direct Investment
(FDI)
- Multi-billion $ investments by:
Rio Tinto Nippon Steel Posco Vale Kenmare BHP Exxon Gold One ENI Coal of India South 32 Gemfields Fura Gems Anhui Battery Min Syrah Mustang CPC Boabab Grupo Videre Sasol Ncondezi GMC Black Rock MMC Andarko PanEx ARM Mina De Revuboe ERG Savanna Xract PPT Mozmin NSJ
MINERAL TENURE IN MOZAMBIQUE
- Prospecting and Exploration License
(valid up to 5 years and can be extended for 3 more years). The Surface Tax applicable to Prospecting and Exploration License:
- For gold the tax is 6% of the evaluation
carried out during the inspection
- A Prospecting and Exploration License
can be converted to a Mining concession (valid for 25 years and can be extended for more 25 years). The Surface Tax applicable to a Mining Concession License
Year 1 – 4 17,5 MZN/ha Year 5 91.0 MZN/ha Year 6 105.0 MZN/ha Year 7 – 8 310.0 MZN/ha Year 1 – 5 30 MZN/ha Year 6 and onwards 60 MZN/ha
LOCATION – ALR Gold Project
4
ALR GOLD PROJECT
- Tete Province – Chifunde an underexplored
area of Mozambique
- The known extent of the Chifunde Gold
Discovery is contained on concession 7113L, with a total area of 189km2 (18,900 hectares)
- Negotiations currently underway for
additional concessions adjacent to the current concession.
- Extensive primary and secondary gold
deposits identified
- Wide sampling program completed
- Regional Geophysics acquired and analyzed
- Two big Chinese gold mines producing gold,
45km and 85km south of Deposit.
- Locals producing 25kg of gold per month
PRIMARY DEPOSIT – ALR Gold Project
5
Main Hard Rock Deposit Numerous areas where artisanal mine workings is evident, the strike length is over 2,500m
6
- Over 400 artisanal workers,
mining primary gold deposits from surface to ~25m along a > 2, 500m strike
- Artisanal miners are producing
25kg of gold per month from Primary crystalline deposits
GOLD RUSH UNDERWAY ARTISINAL WORKERS ALREADY MINING GOLD ON SITE
GEOLOGY PRIMARY DEPOSIT – ALR Gold Project
7
- Gold project is located within a
geological environment dominated by Proterozoic, metamorphic rocks.
- Newly Discovered Chifunde Gold
Province
- Artisanal miners are producing 25kg of
gold per month from Primary crystalline deposits
- Multiple additional targets identified
across the license
- Two Chinese Companies are mining
gold 45km and 80km from this deposit
- Applied for concessions surrounding
this property FEATURES GEOLOGY
- The hard rock artisanal mining is focused
- n wide quartz veins and/or altered and
sheared amphibolites.
- Contains in-situ grades of up to ca. 5g/t 1.
confirmed with test work at SGS Laboratories
- Open at depth and over 2,500m strike
length of hard rock mineralization
- The two greatest targets are located in
the south-eastern area of the licence within the amphibolite rocks of the Mualadzi Group (P2Dvl) along a N/S trending fault.
- 1. Samples taken May 2018 by Kobus Badenhorst –
Independent Consultant Geologist
8
CHIFUNDE GOLD PROJECT
❖ Highly experienced team with over 15 years operating and entrepreneurial experience in Mozambique ❖ Primary Targets: ➢ High Grade quartz veins and stockwork amphibolites yielding 3-5g/t 1 (Jewelry box) ➢ Large tonnage, lower grade, low cost Porphyritic Granite deposit ❖ Decree by Government that all gold by artisanals should be sold at 50% of market price to ALR during exploration
- phase. ALR to pay 10% production tax.
❖ Ricardo Valls (ICP) complete NI43-101 ❖ License held through Joint Venture corporation with 20% held by Mozambique partner (MP) ❖ Under the JV Agreement, a payment of U$50,000 was made and Monthly payments of U$1,500 are due to MP for duration of Joint Venture.
- 1. Samples taken May 2018 by Kobus
Badenhorst – Independent Consultant Geologist
9
INVESTMENT OPPORTUNITY
- Pre-IPO raising of U$3,500,000
- 7,000,000 shares at U$0.50c
- U$85,000 For 1% of Company or
- U$850,000 For 10% of Company
- Pre-Money valuation of U$5,0mil
- Company will seek to apply for listing on a
recognized Stock Exchange in Canada, subject to regulatory approval and pursuant to requirements of applicable security laws
- Vendors penalty of 1% pm dilution for not
listing
10
PHASE 1: EXPLORATION PROGRAM (Pre-IPO)
- 1. Lineament Analysis
- 2. Satellite Interpretation
- 3. Geophysics
- 4. Trenching – 1000m3
- 5. Drilling – 3,500m
- 6. NI43-101 Report
USE OF PROCEEDS (USD) – Pre IPO PHASE 1
11
Activity UOM Total Project
Lineament analysis US$ 110 000 Satellite interpretation US$ 20 000 Aero Magnetics & Analysis US$ 200 000 Geologist US$ 756 250 Trenching US$ 250 000 Drilling US$ 1 000 000 Laboratory Analysis US$ 694 778 Corporate US$ 240 000 Corporate Advisory fee 7% US$ 228 972
Total US$ 3 500 000
12
PHASE 2: EXPLORATION PROGRAM
- 1. Trenching – 9,000m3
- 2. Drilling – 20,000m
- 3. Define NI43-101 Resource
- 4. Scoping Study
- 5. Environmental Impact Study
- 6. Plant and Pit Design
USE OF PROCEEDS (USD) PHASE 2
13
Activity UOM Total Project
Geologist US$ 1 512 500 Trenching US$ 300 000 Drilling US$ 5 000 000 Laboratory Analysis US$ 3 333 333 Metallurgical test US$ 250 000 Scoping Study US$ 500 000 Environmental Impact Study US$ 950 000 Plant and Pit Design US$ 150 000 Corporate US$ 1 377 200 Listing fee US$ 700 000 Corporate Advisory fee 7% US$ 985 112
Total US$ 15 058 146
PHASE 2: 24 MONTH BUDGET SUMMARY (USD)
14
Activity UOM Year 1 Year 2 Total Project
Geologist US$ 756 250 756 250 1 512 500 Trenching US$ 150 000 150 000 300 000 Drilling US$ 3 333 333 1 666 667 5 000 000 Laboratory Analysis US$ 1 111 111 2 222 222 3 333 333 Metallurgical test US$ 100 000 150 000 250 000 Scoping Study US$ 100 000 400 000 500 000 Environmental Impact Study US$ 950 000 950 000 Plant and Pit Design US$ 150 000 150 000 Corporate US$ 688 600 688 600 1 377 200 Listing fee US$ 700 000 700 000 Corporate Advisory fee 7% US$ 985 112 985 112
Total US$ 7 924 407 7 133 739 15 058 146
NEXT STEPS – ALR Gold Project - (The Dates are Target Estimates)
Activities
2016 2017 H1 2018 H2 2018 H1 2019 H2 2019
Discovery of Chifunde Gold Deposit Securing Tenement over entire known Deposit Environmental impact and management study Initial Field Work and Soil Sampling Field work and confirmation trenching Financial close Commence drilling program Resource statement Listing
15
16
AFRICAN LION RESOURCES TEAM
- MR. COBUS VAN WYK - Executive Chairman
Mr van Wyk is extensively experienced exploration and mining entrepreneur active in Mozambique since
- 2004. He directly contributed to securing the current project’s concessions via extensive contacts in the
Mozambique government and business community. Mr van Wyk has personally identified prospective areas and done due diligence on 1,800 concessions. His mining development experience in Mozambique includes Tantalite, Coal, Gold, Rubies, Graphite and Heavy Mineral Sands. Mr van Wyk completed his MBA from the University Of Wales. He has over 20 years of experience in the financial markets and corporate finance and 20 years of experience as director of listed and unlisted companies.
- DR. EVAN KIRBY - Non-Executive Chairman
- Dr. Evan Kirby is a metallurgist with 40+ years’ experience and extensive corporate and technical expertise. He
has held leading roles in world-class developments and several ASX and AIM-listed mining companies. 16 years’ experience in South Africa with Impala Platinum, Rand Mines and then Rustenburg Platinum Mines. Dr. Kirby has experience in management and technical positions with Minproc Engineers and Bechtel Corporation (Australia). He is a founder of Metallurgical Management Services, Australia.
- MR. FELICIO ZACARIAS - Chairman of the Board in Mozambique
Mr Felicio Zacarias is the Chairman and Mozambican representative of the Regius Group. Mr. Zacarias holds a Bachelor Degree in Economics. Mr Zacarias is a highly respected and prominent figure in the Mozambican business arena. Mr Zacarias was a Governor of three different provinces with the highlight of his career being appointed as Minister of Public Works in Mozambique. Following his tenure as Minister, Mr Zacarias allocated all his time to the private sector. Mr Zacarias has more than 30 years experience in doing business in Mozambique and is an invaluable asset to the Board of Directors of Regius.
17
AFRICAN LION RESOURCES TEAM
- MR. FRANCO JORDAAN - Chief Financial Officer
Mr Franco Jordaan is an expert in all aspects of financial accounting, management reporting, systems, corporate governance, treasury, marketing and projects. He has worked for major players including Impala platinum, Eastplats, Trafigura and Vedanta, and has experience with multiple commodities (Platinum group metals, Iron ore, Chrome, Copper Zinc, Lead, Silver). He has been involved in mining, exploration processing and refining since 2001, and has first-hand experience of doing business in Angola, DRC, Namibia and South Africa. Mr Jordaan completed his B.comm hons. Degree, CIMA advanced diploma, PMP and CCP.
- MR. CHRISTIAAN JORDAAN - Chief Executive Officer
Mr Jordaan is the CEO and co-founder of Mozambican-focused exploration company Regius Resources Group. Regius is the largest shareholder in New Energy Minerals Ltd (ASX.NXE), focused on Caula Vanadium-Graphite Project in Mozambique. Mr Jordaan is a mining entrepreneur with extensive experience managing mining and energy projects in Mozambique. He obtained his Degree in Commercial Law from the University of Pretoria, South
- Africa. He is a member of AICD, former Director of financial services group in SA.
- DR. BERNARD OLIVIER - Non-Executive Director
Dr Olivier obtained his PhD in Economic Geology from the University of Stellenbosch, South Africa. He has worked as a geologist since 1998 in Africa, Asia and South America, including Tanzania, South Africa, Burundi, Swaziland, Argentina, Colombia, Australia and the Philippines. He has experience in exploration, development and mining
- perations across a spread of commodities, including gemstones, graphite, gold, diamonds, PGEs, base metals and
coal. Dr Olivier has over 10 years’ experience as a listed company director, including CEO of Richland Resources Plc (formerly Tanzanite One) since March 2010, and Director of Bezant Resources Plc since March 2007. He is a member of the Australasian Institute of Mining and Metallurgy (MAusIMM).
18
AFRICAN LION RESOURCES TEAM
- MS. GRACA FERREIRA - Country Manager
Ms Ferreira completed a Diploma in Master of Marketing Research, as well as a Diploma in Society for Human Resources Management, at the EIC Freire de Anfrade in Beira, Mozambique. In 1969 she started working for an international company, Safrique PTY Lda, as the Public Relations Officer. In this position Ms Ferreira accumulated considerable knowledge on marketing and tourism. In 1974, she opened an Importing and Exporting company in South Africa, mainly dealing with Africa, Asian and the USA. In 1983 Ms Ferreira started working for a group in South Africa, Metro Cash & Carry, as the Marketing Director of their International Division. In 2001 she decided to pursue a career as an Investment Advisor in Mozambique. In 2011 she joined Regius Resources Group as the Country Manager, where she is responsible for all the company’s activity in Mozambique.
- MR. HÉLMER MANJATE - Manager
Mr Manjate completed a Bachelor’s degree in Diplomatic and International Relations, in 2003, at the Higher Institute of International Relations (ISRI) of Mozambique in Maputo. Mr Manjate is now starting with his Master’s Degree in Oil & Gas Management at the Higher Institute of Sciences & Technology of Mozambique (ISCTEM). In 1999 he started working for a Private Company as a Service Provider, where he accumulated considerable knowledge about foreign investment in Mozambique. Inspired by the discovery of vast mineral resources in Mozambique, he decided to redirect his career to the Energy and Mining sectors which lead Mr Manjate to join Regius Resources Group in 2009. He is now responsible for managing all legal aspects pertaining to the mining sector, labor and environmental affairs, as well as government relations.
- MR. RICARDO VALLS - Independent Senior Geologist and QP (Qualified Professional)
- Mr. Ricardo Valls is professional geologist with over thirty years in the mining industry, with extensive geological,
geochemical, and mining experience. Projects included from regional reconnaissance to local mapping, diamond drilling and RC-drilling programs, open pit and underground mapping and sampling, geochemical sampling and interpretation, and several exploration techniques pertaining to the search for diamonds, PGM, gold, nickel, silver, base metals, industrial minerals, oil & gas, and other magmatic, hydrothermal, porphyritic, VMS and SEDEX ore deposits.
19
AFRICAN LION RESOURCES TEAM
- MR. LLEWELYN WHITECROSS – Geologist and QP (Qualified Professional)
Llewelyn Whitecross is a South African Council for Natural Scientific Professions (SACNASP) registered geologist and member of the Geological Society of South Africa with a broad set of skills in exploration and a good understanding of mine development with over 9 years’ experience within the geosciences field. Llewelyn has multi-commodity experience in Platinum Group Elements, Nickel, Coal, Graphite, Vanadium and Heavy Mineral
- Sands. He has extensive experience in planning and managing exploration projects in remote areas in
Mozambique.
- MR. KOBUS BADENHORST – Independent Geologist and QP (Qualified Professional)
Mr Kobus Badenhorst obtained his BSC (Geology) in 1992 and BSC (Hons) (Geology) in 1993, both from the University of the Free State, South Africa. He has more than 20 years’ experience in the Exploration and Mining
- industry. Mr Badenhorst has been the Managing Director of GeoActiv (Pty) Ltd since 2007. He is involved in
various projects for different commodities. Greenstone Stella Platinum; various Bushveld PGM projects; heavy mineral sands projects in South Africa West coast, Sri Lanka and Bangladesh; Postmansburg Iron Ore Projects; Zimbabwe Great Dyke PGM and Greenstone Gold; Zambia Cu; Mali Au etc.
- MS. SARA TURNBULL – Geologist and QP (Qualified Professional)
- Ms. Sara Turnbull (B.Sc. Hons., M.Sc.) is a qualified, practiced and registered (SACNASP) geologist offering over
6 years’ experience within the Exploration and Mining industry. Ms. Turnbull has multi-commodity experience and is a Competent Person/Qualified Professional (CP/QP) in alluvial gemstones, graphite and vanadium. Additional active involvement in several other commodities including gold, heavy mineral sands and phosphate. Her duties as a geologist have included geological modelling, field mapping, geological pit mapping, drill site management, core logging, sampling, laboratory liaison and overseeing the bulk sample process. She has assisted in JORC and SAMREC Compliant Resource Statements, Scoping Studies and Due Diligences.
20
AFRICAN LION RESOURCES TEAM
- MR. PAULO CINTRA - Mining Engineer
- Mr. Paulo Cintra holds a degree in Mining Engineering with more than 25 years’ experience in production with
a diverse mixture of products and technologies, bringing valuable hands-on operations management. Experienced primarily in prospecting mineral processing and quarry exploration operations having worked in Portugal, Spain Angola and Mozambique.
- MR. GERHARD BURGER - Site Manager
- Mr. Gerhard Burger a highly experienced site manager. Practical, hands on experience on plant installation,
knowledge and proficiency of all machinery on a processing plant and mining site. Hands on participation with the training of locals. General supervision and overseeing of the onsite team to ensure the staff adhere to strict controls and procedures to ensure the project runs smoothly.