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Creating a leading nickel producer in South East Asia March 2016 - - PowerPoint PPT Presentation

Creating a leading nickel producer in South East Asia March 2016 Disclaimer Forward-Looking Information This document may contain forward-looking statements. These forward-looking statements are made as of the date of this document and Asian


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Creating a leading nickel producer in South East Asia

March 2016

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Disclaimer

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Forward-Looking Information This document may contain forward-looking statements. These forward-looking statements are made as of the date of this document and Asian Mineral Resources Limited (the “Company”) does not intend, and does not assume any obligation, to update these forward-looking statements, except as required under applicable securities legislation. Forward-looking statements relate to future events or future performance and reflect Company management’s expectations or beliefs regarding future events and include, but are not limited to, statements with respect to the estimation of mineral reserves and resources, the realization of mineral reserve estimates, the timing and amount of estimated future production, costs of production, capital expenditures, success of mining operations, environmental risks, unanticipated reclamation expenses, title disputes or claims and limitations on insurance coverage. In certain cases, forward-looking statements can be identified by the use of words 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 statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved” or the negative of these terms or comparable terminology. By their very nature forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward looking statements. Such factors include, among others, risks associated with the Company’s dependence on the Ban Phuc Project, risks related to actual results of current exploration activities; changes in project parameters as plans continue to be refined; future prices of mineral resources; possible variations in ore reserves, grade or recovery rates; accidents, labour disputes and other risks of the mining industry; delays in

  • btaining governmental approvals or financing or in the completion of development or construction activities; as well as those factors detailed from time

to time in the Company's, annual information form, interim and annual reports and other public disclosure. Such forward-looking statements are based

  • n a number of material factors and assumptions, including: that contracted parties provide goods and/or services on the agreed timeframes; that on-

going contractual negotiations will be successful and progress and/or be completed in a timely manner; that application for permits and licences will be granted/obtained in a timely manner; that no unusual geological or technical problems occur; that plant and equipment work as anticipated and that there is no material adverse change in the price of nickel. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events

  • r results to differ from those anticipated, estimated or intended. Forward-looking statements contained herein are made as of the date hereof.

Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward- looking statements. In addition, please note that statements relating to “reserves” or “resources” are deemed to be forward-looking information as they involve the implied assessment, based on certain estimates and assumptions, that the resources and reserves described can be profitably mined in the future.

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Nickel Exploration Platform in Vietnam

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150 Km2 Granted Exclusive Mineral Concession in a “World-Class” Nickel Belt 49.7 Km 2 Exploration License Hosting 25 initial High-Quality targets Key Infrastructure includes Mining, Processing & Camp including fully licensed tailings facility “First Mover Advantage” into a developing mining region in the heart of Asia. Highly Experienced National Operating Team with Proven Operational Ability Last New Source of Nickel Sulphide Production in the World Strong Community, Provincial, and Central Government Support 1. 2. 3. 4. 6. 7. 8. Regional M&A Opportunities Across Multiple Base Metal Opportunities 5.

Multiple opportunities for near-term project extension and expansion

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  • Location Ownership
  • Ban Phuc is located 160 km west of Hanoi near Ban Phuc

village in Son La Province

  • AMR owns (90%) and operates the Ban Phuc Nickel Mine

in partnership with COXAMA (10%) equitised Vietnamese company

  • Exclusive 150km2 Land Package.
  • Including 49.7 Km2 exploration license hosting numerous

local and regional targets

  • Advanced project pipeline of 25 initial targets
  • Multiple Styles of Mineralisation
  • Massive sulphide vein (“MSV”)
  • Bulk low grade disseminated sulphide resource potential
  • Key Infrastructure
  • Modern 450 ktpa processing facility (Rec: 87% Ni, 95% Cu)
  • Internationally designed and permitted tailings facility
  • Modern 250 person camp
  • Established work shops, fabrication and maintenance

facilities

Ban Phuc ‒ Overview

Ban Phuc

World-Class Nickel and Base Metal Region in an Emerging market

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SLIDE 5

Our People and Operations

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  • 1954 (Prior to) Ban Phuc discovered by French geologists
  • 1956 Russian geologists delineated MSV
  • 1963 Chinese delineate maiden resource / reserve
  • 1999 Falconbridge invested in Ban Phuc
  • 2005 Ban Phuc feasibility completed
  • 2007 Mining license granted
  • 2012 New major shareholder joins board of AMR. Construction

restarts

  • 2013 October “Rich Glory” departs Hai Phong port with

Vietnams first exported nickel concentrate

Ban Phuc - History

A “Snap Shot” of History

  • Total Capital - $US 74.7M
  • Total OPEX – $US 147.6M
  • Total Ore Mined - 957,995t
  • Concentrate Sold – 167,197 (Dry metric tonnes)
  • Total Nickel Produced – 16,568 Ni tonnes
  • Total Copper Produced – 8,124 Cu tonnes
  • National Workforce – 92%
  • Local Supply - > 80%
  • Low Cost - 1st Quartile cost producer

One of the Worlds Newest Source’s of Nickel Sulphide Production.

Recent Operational History (as at December 2015)

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Local Workforce & Community

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  • Strong local employment and procurement policies
  • Over 92% local Vietnamese workforce. Dedicated

training programs focused on up-skilling workforce

  • Key infrastructure support, including roads, communal

spaces, a suspension bridge and technical assistance with water supply

  • Local business development in collaboration with

Canadian and Australian Embassies through 2014

  • Educational resources and clothing to 3 local schools

through Project Sprouts “Buddy Back Pack” program

Government Support for AMR

Community and Social Initiatives Government Support

  • Support from Central and Provincial Government
  • Vice Minister of Natural Resources & Environment,

and Chairman of the People’s Committee of Son La Province have highlighted importance of Ban Phuc, as the country’s first nickel mine

  • AMR was awarded a mineral exploration license in

July 2014

  • AMR received increase to mining license in early

2015

Proven national and provincial support for AMR

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Song Da Rift Zone

  • Song Da Rift a major crustal suture zone and forms part
  • f a greater system of deep continental rifting known as

the Red River Fault Zone

  • The ultramafic-mafic intrusives are considered to be

triassic in age

  • Geotectonic setting strongly analogous to major Ni-Cu

deposits such as Norilsk

  • Significant regional mineral endowment.
  • First identified by French prior to 1956

Ban Phuc ‒ Geology Overview

World Class Nickel Setting Extensive Exploration Data Set to Date

Ban Phuc’s Song Da Rift Zone “ a world class nickel district “

Advanced Exploration

  • Extensive reconnaissance geological mapping
  • 25 initial nickel prospects identified to date.
  • 62,445 metres diamond drilling (384 holes)
  • 4,491 metres of trenching (164 trenches)
  • 20,747 geochemical soil samples.
  • FLTEM, EM and DHEM data sets
  • Regional structural model
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  • In July 2014 Ban Phuc obtained a 49.7 km2 of the total 150 km2 land area

assigned to Ban Phuc for exploration

  • Recent exploration has continued with a focus on field mapping, trenching and

soil sampling including developing priority ranking and program of work.

  • Only five exploration drill holes have been completed since the exploration

license was approved in July 2014

  • 25 initial targets have been identified
  • Detailed ranking and programs of works established
  • New gossanous outcrops continuing to be discovered from low-cost activities of

trenching and field mapping

  • Low-cost diamond drilling contractor services have been established and proven
  • Established capability to convert exploration success to licenses, permits and

mining approvals

Exploration – Just The Beginning

Ready for focused Exploration

Laos

Area Hole (ea) Mtr’s (000’s) Ban Phuc 309 49.4 Exploration 75 12.9 Total Ta Khoa leases 384 62.5 Only 20% of total drilling to date has been on exploration

prospects outside of the Ban Phuc mine corridor

Ability to Rapidly Convert Exploration Success to Production

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Exploration Ranking and Priority

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1.

King Snake Ban Chang,

2.

Ban Khang, Nam Noi, Ban Phuc North, Suoi Phang, Ban Mong, Ban Khoa North, Ban Khoa South, Suoi Lap, Co Muong

3.

Phu Ho, Ban Phuc West, Ban Phuc East, Suoi Phuc, Phai Han, Suoi Nho, Suoi Muong, Kingsnake North, Queensnake, Queensnake North, Suoi Chanh, Suoi Tao, Phieng Pot, Chim Van

  • 25 individual prospects defined each at

varying stages of maturity.

  • Substantial historical and recent field work

provides a large and useable exploration data set.

  • Ranking and priority matrix developed to

ensure a focused and systematic approach to exploration maintained.

  • Ongoing field work continues to identify new

targets.

Developing the Project “Pipeline”

Geophysical Priority Structural Priority Strain Position Geological Horizon Geochemical Priority Presence of Gossan Chromium Priority Proximal Ultramafic Presence of Host Tremolite Anomalous Drill Hole Intercepts Proximity to Current Infrastructure

Key Ranking Criteria

2 Advanced Targets

Insitu Ni rich gossan and MSV have been delineated by trenching and or drilling.

9 Developing Targets

Include insitu or float Ni rich gossan, trenching .

14 Conceptual Targets

Defined by geochemical or geophysical data with limited follow up exploration activities .

25 initial targets

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Kingsnake Prospect

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  • Kingsnake is located 1.5km North East of Ban Phuc

minesite

  • The Kingsnake MSV is hosted mainly within a sheared

contact along a concordant, tremolite dyke

  • Mineralization

comprises MSV and disseminated sulphides as well as a unique brecciated (high grade) MSV

  • The host shear zone, like that of Ban Phuc, is

interpreted to be a splay off the regionally extensive Chim Van – Co Muong fault system

  • Elevated PGE values identified at Kingsnake provide

significant bi-product credits

  • 15

holes have been drilled into Kingsnake compared to >300m at Ban Phuc

Kingsnake Plan showing geology and sampling results

Potentially larger than Ban Phuc

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Kingsnake - Work Completed and Prospectivity

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  • Works include 15 diamond drill holes (totaling 2900m), 18 trenches (totaling

139m), Soil geochemistry, as well as historical electromagnetic and magnetic geophysical surveys

  • 530m of strike length has been defined by trenching and drilling
  • FLTEM surveys (2015) identified five conductive targets along the strike

length

  • f

Kingsnake extending the

  • verall

potential strike length

  • f

Kingsnake to 1.2km

  • Kingsnake has the potential to be dimensionally larger than Ban Phuc. The

defined extents are already similar to Ban Phuc and the deposit remains

  • pen at depth and down plunge

Kingsnake Drilling Significant Assays Hole Id From To Width Ni% Cu% Co% PGE ppm BP00-01 90.24 91.98 1.74 3.30 1.02 0.11 2.16 BP00-11 57.20 58.00 0.80 1.30 0.78 0.06 0.93 BP01-12 233.00 233.25 0.25 1.99 0.36 0.05 1.63 BP01-12 249.05 250.20 1.15 1.40 0.57 0.05 2.25 BP05-01 99.95 100.25 0.30 3.44 1.56 0.13 3.74 BP05-02 120.30 120.38 0.08 3.54 1.21 0.14 2.18 BP05-03 137.55 138.00 0.60 2.18 1.01 0.09 3.76 BPN07-01 26.00 27.33 1.33 1.42 0.68 0.06 2.54 BPN07-02 19.90 20.10 0.20 2.44 0.82 0.10 3.13 KSO2 3.51 4.01 0.50 2.82 0.62

  • KSO3

2.94 4.54 1.60 3.27 1.30 0.11

  • KSH4

1.10 1.90 0.80 3.08 1.59 0.17

  • MSV outcrop in the middle of King Snake Creek.

The mineralization is comprised of a 1.5m wide brecciated MSV containing 3.27%Ni, 1.30%Cu and a 3m wide sulphide bearing tremolite dyke.

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Kingsnake - Longsection

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Ban Chang Prospect

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  • Ban Chang is proximal to the Ban Chang village, 2 km SW
  • f Ban Phuc Mine
  • The prospect geology consists of a massive dyke swarm

within the phillites, sericite schists and quartzites

  • The dyke swarm is approximately 900m long, and varies

between 5 and 60m wide

  • Ban Chang is analogous to Ban Phuc and Kingsnake

structurally, in that, the MSV is interpreted to be hosted within a splay, (and subsidiary structures) off the major regional Chim Van – Co Muong fault system

  • There are two MSV zones : west zone and the central

zone, both are defined by strong co-incident Ni-Cu soil anomalies

Ban Chang Geology and MSV zones Ban Chang Adit

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Ban Chang - Work Completed and Prospectivity

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  • Work completed at Ban Chang includes 7 diamond drill

holes (1,379m), 40 trenches (1,279m), 2 historical adits, soil geochemistry and historical geophysical surveys

  • The presence of the weathered Nickel rich gossan and

MSV located in historical adits dictates this a high-quality priority target, requiring further exploration

  • Recent trenching has defined approximately 200m of

strike length to the gossan. Work is ongoing

DDH / Adit To From Width Ni% Cu% BCLK2 58.15 59.15 1.00 2.65 1.04 BCLK4 62.9 64.6 1.70 1.89 0.91 BCL12-2 16.1 17.1 1.00 1.07 0.39 BCL13-1

  • 1.60

2.19 1.54 Ban Chang adit (BC.ORE1) Significant Assays Ban Chang Cross Section through adit (BC.ORE1)

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Ban Khang Prospect

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  • Ban Khang is located in Ban Khang Village, 5.5 km

NW of Ban Phuc

  • The region is host to the largest (mostly buried)

intrusive body located to date. This prospect has potential to host both MSV and large disseminated mineralization

  • Ban Khang is geologically analogous to Ban Phuc
  • The Ban Khang Intrusion is exposed on the surface
  • ver a strike length of 400m and 150m wide. Grab

samples produced anomalous grades up to 0.6%Ni & 0.26%Cu respectively

  • Disseminated sulphides located in tremolite dyke

(200m long x 20m wide) produced assays of up to 0.48%Ni & 0.29%Cu respectively

  • Coincident Ni & Cu anomalies create an anomalous

zone 900 m long. Anecdotally, strong Cu is a lead indicator for Ni-Cu mineralization (MSV and disseminated) in the Ta Khoa region in general

Geology of Ban Khang

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Ban Khang - Work Completed and Prospectivity

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Significant Rockchip Results

  • Work completed at Ban Khang to date

includes 3 trenches for 75m, soil geochemistry and a historical EM survey

  • The similarities with Ban Phuc (the prospect

is almost identical to Ban Phuc), the

  • ccurrence of gossan float rock proximal to

the ultramafic, the Ni rich weathered rock samples and the presence of the largest intrusive body in the region all make this an exciting prospect

  • The

massive buried intrusive is wholly contained within AMR’s 150km2 concession Sample Lithology Ni% Cu% rockchip Ultramafic 0.48 0.30 rockchip ultramafic 0.60 0.26 rockchip Tremolite dyke 0.46 0.19 rockchip Tremolite dyke 0.54 0.47

Ban Khang Soil Geochemistry

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Nam Noi Prospect

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  • Nam Noi is located approximately 1.0

km SE of Ban Phuc

  • The Nam Noi ultramafic intrusion is

300m long and 50m wide. Magnetic Inversion work suggests this intrusion has a significant (larger than Ban Phuc) buried component

  • The prospect is separated from Ban

Phuc by, and juxtaposed against, the regionally extensive Chim Van-Co Muong fault system

  • This

prospect has both MSV and disseminated mineralisation potential

  • Weathered MSV gossan float rock was

discovered near the intrusion and contained 0.98% Ni and 0.43% Cu

  • Coincident Cu and Ni anomalies in soils

indicate a potential 650m long, structurally dislocated, mineralized zone

Nam Noi Geology

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Nam Noi - Work Completed and Prospectivity

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Gossan float rock at Nam Noi

  • Nam Noi is in the early stages of
  • exploration. Only one hole has been

drilled for 100m. No trenching conducted, but soil geochemistry and historical geophysical surveys have been completed

  • Gossan float rock, as well as the

spatial and structural position significantly upgrades the potential of this prospect i.e. proximity to the regionally extensive Chim Van – Co Muong fault corridor is considered very important in terms

  • f

(post depositional or primary) Ni dispersion Nam Noi Soil Geochemistry

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Exploration Drilling Density

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Contact

Asian Mineral Resources

Evan Spencer, CEO + 84 4 3 773 7997 info@asianminres.com www.asianminres.com

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Competent Person

The scientific and technical information in this press release has been compiled and approved by Darryl Mapleson (BSc (Hons), FAusIMM) who is a Geologist retained by Asian Mineral Resources Limited and a Competent Person as defined by JORC guidelines and a Qualified Person for NI43-101. He has been working for Asian Mineral Resources Limited as an independent consultant.