AIM : WRES www.wresources.co.uk September 2014 Disclaimer This - - PowerPoint PPT Presentation
AIM : WRES www.wresources.co.uk September 2014 Disclaimer This - - PowerPoint PPT Presentation
AIM : WRES www.wresources.co.uk September 2014 Disclaimer This presentation was prepared by and is the property of W Resources Plc (W Resources or the Company). No reproduction or distribution this material is permitted to companies
September 2014
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Disclaimer
This presentation was prepared by and is the property of W Resources Plc (“W Resources” or “the Company”). No reproduction or distribution this material is permitted to companies or individuals outside of those for whom this is intended. No agents, brokers or investment banks are authorised to present this material to other parties for the purpose of soliciting potential clients or transactions of any kind without prior consent to do so. While the Company is not aware of any inaccuracies, no warranty or representation is made by the Company or their respective employees and representatives as to the completeness or accuracy of the information contained herein. The Company, JLSI and their respective employees and representatives expressly disclaim any liability for damages, direct or consequential, arising out of or related to this presentation or omissions there from, or any other information provided in writing, orally or otherwise regarding this potential transaction. Any party considering a transaction with the Company agrees to look solely to its own due diligence and any representations, warranties and/or covenants set forth in a fully-executed, definitive written agreement with the Company relative to the transaction. Certain matters discussed in this presentation are “forward-looking statements”. These forward-looking statements can often but not always be identified because the context of the statement will include words such as “the Company expects,” “anticipates” or words of similar import. Similarly, statements that describe the Company’s capabilities, future plans, objectives or goals are also forward-looking statements. Such forward looking statements are subject to significant risks and uncertainties, including the financial performance of the Company and the viability of its technology. These risks could cause actual results to differ materially from those currently anticipated. Although the Company believes the expectations reflected in any forward-looking statements are based on reasonable assumptions, the Company can give no assurance that its expectations will be attained. Potential investors, customers, suppliers and other readers are urged to consider this factor carefully in evaluating any forward-looking statements. Forward-looking statements made herein are only made as of the date of this presentation and the Company undertakes no obligation to update such forward looking statements to reflect subsequent events
- r circumstances.
Technical information in this presentation has been prepared and approved for inclusion by Mr Fernando de la Fuente, who is a “qualified person” in respect of the AIM Rules for Companies with over 39 years experience in the Exploration and Mining Geology industry. Mr de la Fuente holds a B.Sc. in Geology and a MSc in Geology from the University of Granada in Spain. He is also a member of the Spanish College of Geologists (Number 49), the Spanish Society of Mineralogy, founder member of the Spanish Society of Geology, member of the Spanish Association of Applied Geology to Mineral Deposits, member of the Society for Mining, Metallurgy and Exploration, Inc., member of PDAC. The technical information contained in the W Resources Plc September 2014 Presentation was prepared and first disclosed under the JORC Code 2004. It has not been updated since to comply with the JORC Code 2012 on the basis that the information has not materially changed since it was last reported.
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1. Overview Multi project growth portfolio Tungsten focus with high copper-gold upside 2. La Parrilla Staged approach Tailings – in production Mine – under development
- 3. Régua and Tarouca
- 4. Copper and Gold: CAA / Portalegre
September 2014
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10 20 30 40 50 0.00 0.20 0.40 0.60 0.80 1.00 1.20 1.40 1.60 1.80 2.00
Volume Close
Price (p) M
Overview
Share Price History
Ticker: WRES Listing: LSE – AIM (2004) Focus: Tungsten, copper & gold - production, development & exploration Projects: La Parrilla, Spain - Tungsten tailings project (production) and mine Régua, Portugal - Tungsten exploration project CAA / Portalegre, Portugal - Copper-gold exploration prospect Tarouca, Portugal - Tungsten & tin exploration project Shares in issue: 2,338,543,308 Ordinary Shares Market cap: GBP 18.7m (@ 0.80p – 5 Sept 2014) Experienced Directors: Michael Masterman Byron Pirola
Company Information
M Masterman 24.13 % H Gibson 7.44 % B Pirola 6.52 % C Hall 3.51 % M Garland 3.20 %
Significant Shareholders
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Overview
La Parrilla Tailings – Tungsten concentrate production of 450 tonnes WO3 pa and annual revenue of > €7 million La Parrilla Mine – Open pit tungsten mine development - JORC Inferred Resource of 47mt @ 0.09% WO3 Régua tungsten development – JORC resource of 4.5mt @ 0.31% WO3 , at a cut-off of 0.10% WO3 Tarouca former tungsten - tin mine – advanced exploration progressing CAA / Portalegre – advanced copper-gold exploration
La Parrilla Régua Tarouca Portalegre
SPAIN
PORTUGAL
Madrid Lisbon Porto Seville
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W = Tungsten
Tungsten is a rare metal that is critical to some key applications with no satisfactory substitutes Worlds hardest element with the highest boiling point China with 80% of global supply increasingly exerts market power Strong robust price trend Strong demand growth Constrained supply
50 100 150 200 250 300 350 400 450 500
EUROPEAN TUNGSTEN APT PRICES USD per Mtu
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1. Overview Multi project growth portfolio Tungsten focus with high copper-gold upside 2. La Parrilla Staged approach Tailings – in production Mine – under development
- 3. Régua and Tarouca
- 4. Copper and Gold: CAA / Portalegre
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La Parrilla: Staged approach
333,000 tonnes pa ROM 450 tonnes pa 63% WO3 Revenue $ 7-9m pa Capex - $ 3.3m Opex - $ 187/mtu 2.2m tonnes pa ROM 2,300 tonnes pa 63% WO3 Revenue $ 60-70m pa Capex - $ 50-60m Opex - $ 123/mtu
Stage 2
Fast Track Mine 2015
Stage 3
Full Mine 2017
Stage 1
Tailings In production
September 2014
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La Parrilla: Mine and Tailings
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La Parrilla: Location (Spain)
Situated in the Extremadura region
- f southwest Spain,
in the Provinces of Cáceres-Badajoz 310 km southwest of Madrid and 240 km north of Seville, in a predominantly farming community Adjacent to E90 highway with excellent infrastructure access
La Parrilla
SPAIN
PORTUGAL
Madrid Lisbon Seville
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La Parrilla: Tailings Project
Tailings stockpile of 1.2 million cubic metres equivalent to 2.5 million tonnes Project completed on budget and schedule in March 2014 Tailings tungsten production started ramp up in April 2014 Annual plant feed of 330,000 tonnes per annum 450 tonnes Tungsten (WO3) and 26 tonnes Tin (Sn) per annum
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La Parrilla: Tailings in Production
Pre-concentrate Stockpile Concentration Plant Spirals Concentrate Plant Ball Mill Concentrate Plant Flotation Cells Concentration Plant Shaking Tables Concentrate Plant Dryer
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High grade product
Product Quality & Shipment
Current % Target WO3 60-62 On Target Sn 6.95 On Target As 0.30 Below Target S 0.86 On Target
ALS Chemex Vancouver – January 2014
Sales to one of Europe’s largest consumers Good pricing Strong demand for long term off-take agreement
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La Parrilla: Mine
World Scale Resource: 47 million tonnes at 0.09% WO3 at a 0.04% cut-off grade), making it one of the largest tungsten deposits in the western world Open Pit at Surface = Low Mining Cost Simple Coarse Grain Metallurgy Granted mining lease to 2068 and approvals underway Focus on the high grade areas at the surface of the current pit and adjacent to the existing mining pit
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La Parrilla Mine Development Stages
Early Mining Area Large Potential Resource
IP04 Significant intersection 32 metres at 0.55% WO3 IP02 Significant intersection 18 metres at 0.97% WO3
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La Parrilla: Mine Section
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1. Overview Multi project growth portfolio Tungsten focus with high copper-gold upside 2. La Parrilla Staged approach Tailings – in production Mine – under development
- 3. Régua and Tarouca
- 4. Copper and Gold: CAA / Portalegre
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REGUA TAROUCA
Régua and Tarouca: Tungsten (Portugal)
High grade Régua tungsten deposit Tarouca tungsten exploration licence containing old tungsten mine workings
Regua
SPAIN
PORTUGAL
Madrid Lisbon
Tarouca
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Régua and Tarouca: Progress
Régua tungsten permit Located 400km north of Lisbon and 95km east of Porto covering 8km2 Granted four-year trial Mining Licence (with 1 year extension option) – July 2014 Golder Associates Resource Estimate resulted in a 30% increase in JORC resources:
- Based on results of 34 holes for 5,514.45 metres all of which intersected scheelite
mineralisation
- Resource of 4.46 million tonnes @ 0.308% WO3 with 1.37 mtu WO3
- Further 2,000m drilling programme planned to commence 4Q2014 to increase confidence
in M&I and extend deposit
- Golder & WRES have completed a conceptual mine study
Tarouca tungsten - tin project Former tungsten mine and several other tin deposits covering 48km2 located 400km north of Lisbon and 140km east of Porto A detailed trenching and sampling programme completed in 2013 with exceptional results 1,500m drilling programme completed in June 2014. Initial assay results - 1.39 metres at 2.44% Tungsten Trioxide (WO3) from 41.28 metres
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1. Overview Multi project growth portfolio Tungsten focus with high copper-gold upside 2. La Parrilla Staged approach Tailings – in production Mine – under development
- 3. Régua and Tarouca
- 4. Copper and Gold: CAA / Portalegre
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CAA / Portalegre: Copper - gold project
Located 200km east of Lisbon, comprising two gold exploration licences covering 188.05km2 Positive initial assay results with extended reverse circulation drilling programme completed with a total of 1,600m Rock surface sampling identified a number of high grade copper – gold samples
- Gold grades included 1.385 g/t and 0.881 g/t and indicated good surface samples
- f copper including 0.77% and 0.43%.
Diamond core drilling programme will commence in October / November 2014
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CAA / Portalegre: 9.5km Anomaly
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Summary and Investment Strategy
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Investment Strategy
Grown from GBP 4.4 million to GBP 20.1 million market cap in less than 20 months – faster to production with significant upside vs listed peers La Parrilla tailings now in production
- Capital cost €2.4 million
- First concentrate produced in April with ramp up to imminent full production of 450 tonnes
tungsten and 26 tonnes of tin per annum
- Equivalent to revenue at current prices €7 million per annum
La Parrilla mine extension exploration delivering exceptional results
- 30% increase in original mine area resource
- Defined exploration potential in extension area including high grade zones adjacent to mine
- Economic mine with proven metallurgy and processing
Tungsten hub comprising Régua and Tarouca advancing on both development and exploration fronts in Northern Portugal Exploration drilling on potentially very large CAA / Portalegre Copper-Gold project to commence 3Q2014
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Overall W JORC Resources & Reserves
La Parrilla Tungsten Mine
Mt WO3 (%) Contained WO3 (mtu) Sn % Contained Sn (t) Inferred 46.92 0.09 3.99 M 0.009 4270
Source: Golder Associates Pty Ltd – 18 June 2013
Régua Tungsten Deposit
Mt WO3 (%) Contained WO3 (mtu) Indicated 2.14 0.367 0.785M Inferred 2.32 0.253 0.587M Total 4.46 0.308 1.37M
Source: Golder Associates Pty Ltd – 4 October 2012
La Parrilla Tailings Reserves
Mt WO3 (%) Contained WO3 (mtu) Indicated 1.0 0.12 0.12M
Source: SRK 2008 WO3 – tungsten tri-oxide
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Track Record
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News flow 1H 2012 – 1H 2013
Jan / Apr
- IRS acquisition delivers La Parrilla Mine and Tungsten projects
- La Parrilla mine option extension & drilling started at La Parrilla
- High grade results from Hole 1, including 36m at 0.35% WO3
May / Aug
- AIO / Iberian Resources Portugal acquisition delivers Tungsten and first Gold projects
- First assay results from Portalegre Gold licence, including 6m at 3.04g/t
- High grades assay results continue at La Parrilla resulting in extension of drilling programme
Sep / Oct
- 30% resource increase at Régua Tungsten deposit, with Golder upgrading the JORC compliant
resource estimate
- Portalegre Strikes Gold Grades at 15 g/t over 3m
Jan / Feb
- La Parrilla Tailings project receives environmental Authorisation from Spanish Authorities
- La Parrilla Mine extension drilling completed
- Golder Associates started resource estimation process
Mar / Jun
- Early exploration success at Tarouca tungsten and tin project in Portugal
- Construction commences at La Parrilla Tailings Development
- 30% resource increase at La Parrilla Mine, Golder upgraded JORC compliant resource estimate
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News flow 2H 2013 – 2H 2014
Aug - Oct
- Full title of the La Parrilla mine was transferred to WRES for a total of €2.7m over 3 years
- 3.5km gold anomaly identified at Portalegre project in Portugal
- Exploration programme at Tarouca continues to deliver exceptional results
Jan / Feb
- Successful commissioning of Pre-Concentration Plant at La Parrilla
- La Parrilla Final Concentrate Grades Exceed Expectations
- Construction of the Concentration Plant at La Parrilla is completed
Mar / Apr
- 1,500 metres of core drilling has commenced at its Tarouca Project in Portugal
- First production from La Parrilla Tailings Plant
- Encouraging Copper and Gold Values in CAA / Portalegre Rock Samples
Jun
- Trial Mining Licence Awarded at Régua Tungsten Deposit in Portugal
- Production Ramp-up at La Parrilla Tailings - Initial Production Exceeds Grade specifications
Jul / Aug
- Tarouca Drilling Update: Intersects High Tungsten Grades
- First Tungsten Shipment Cash Proceeds
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Board and Management Team
Board Michael Masterman Chairman Mr Masterman has an exceptional track record in establishing and financing new resources companies. He recently completed the US$1.15bn sale of a 31% interest in the Fortescue Metals Group’s majority-owned FMG Iron Bridge iron ore company to Formosa Plastics Group. Following 9 years at McKinsey, and 8 years as an Executive Director of Anaconda Nickel, he has been a founding shareholder at Fortescue Metals Group, Po Valley Energy and Atacama Metals. Byron Pirola Non-Executive Director Director of Port Jackson Partners Limited, a Sydney based strategy management consulting firm. Prior to joining Port Jackson Partners in 1992, Byron spent six years with McKinsey & Company working out of the Sydney, New York and London Offices and across the Asian Region. He has extensive experience in advising CEOs and boards of both large public and small developing companies across a wide range of industries and geographies. Byron is a Non-Executive Director of Po Valley Energy Limited. Key Management Fernando De La Fuente Technical Advisor Mr De La Fuente holds a B.Sc. in Geology and a MSc in Geology from the University of Granada in Spain and has over than 39 years experience in the Exploration and Mining Geology industry in Europe, Africa and North America and Latin America. He is Managing Director and main shareholder of Fernando de la Fuente Consultores, S.L. a mining exploration and geological consulting company. He was the Regional Manager for Anglo American Corporation of South Africa in West Africa and has also worked for Rio Algom and Phelps Dodge. Fernando is a ‘qualified technical person’ in respect of the AIM Rules for Companies.
September 2014
30 56% 20% 17% 7% 66kt 2007
Source: CRU; USGS; Money Morning Australia; EC: Critical raw materials for the EU (July 2010)
Tungsten – A critical metal scarce as rare earths
Hard metals Steel / Superalloys Mill products Others High speed steel, military armaments Tungsten carbide – Used to produce cutting and drilling tools used by mining, petroleum, construction industries Examples Lighting filaments, electrical contacts Chemical applications Tungsten has unique properties and no real substitutes…
- Strongest of all metals and second strongest materials
after diamonds
- Highest melting point of all metals (3,400°C)
- Considered environmentally ‘inert’
Its uses are economically critical… World supply is dominated by China… …Leading it to be classified as a critical or strategic metal
- Strategic metals are metals integral to the national defence,
aerospace or energy industry; and subject to potential supply restrictions
- The US and China both classify Tungsten as a strategic
metal
- Similarly, the European Commission classified Tungsten a
‘critical raw material’ in June 2010, citing: ‾ High risks of quantitative and supply disruption ‾ Limited substitution possibilities due to costs of alternatives, less performance and inferior environmental outcomes ‾ Growing risks of ‘predatory’ behaviour by China on the tungsten scrap market
2010
69kt
86 % 4 % 10 %
China Russia Other