Creating a solid mining company in the Americas CORPORATE - - PowerPoint PPT Presentation
REPORT INSIDE In-depth industry coverage including exclusive interviews, independent analysis, expert opinion articles and economic data. Distributed to key mining players and fjnanciers in Peru and internationally. Creating a solid mining
In-depth industry coverage including exclusive interviews, independent analysis, expert opinion articles and economic data. Distributed to key mining players and fjnanciers in Peru and internationally.
REPORT INSIDE
JANUARY 2018
This document contains certain forward-looking statements regarding operational information, future exploration and development plans and anticipated future production. Words such as, “potential”, “building” “inferred”, “if”, “will”, “expect”, “forecast”, “estimate”, “consider”, “may”, “possible” and similar expressions have been used to identify these forward-looking statements. These statements represent management’s current beliefs and are based on information currently available. Forward-looking state- ments involve significant risks and uncertainties. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements including, but not limited to, changes in general economic, political and market conditions and other risk factors. Although the for- ward-looking statements contained herein are based upon what management believes to be reasonable assumptions, management cannot assure that actual results will be consistent with these forward looking statements. Investors should not place under reliance forward-looking statements. Forward-looking statements and other information contained herein concerning the metals and mining industry, and Mining Sense / Mines & Metals Trading Peru SAC’s general expectations concerning the industry, are based on estimates prepared by management using data from publicly available industry sources as well as from private sources, industry analysis, and assumptions based on data and knowledge of the industry which the Company believes to be reasonable. However, this data is inherently imprecise. While Mining Sense is not aware of any misstatements regarding any industry data pre- sented herein, the industry involves risks and uncertainties and is subject to change based on various factors. There is no certainty the projections will be met.
Mining Sense aims to become a major player through the acquisition and rapid development of undervalued projects.
Recuperada in Peru, the stepping stone Asset acquired from Buenaventura Cash-flow Q1 2018 from toll processing amounting to 450 tpd Own mining production Q4 2018 (Silver-Zinc-Lead) M&A - Evaluating acquisitions of two large Gold projects Next level of corporate development Will add hundreds of millions in value Long-term vision - Greenfield exploration and resource development Two promising VMS projects in northern Peru Previously targeted by BHP Billiton/Buenaventura and Stellar Mining
ECUADOR COLOMBIA BRAZIL PERU BOLIVIA CHILE
Huancavelica Piura Lima
Acquired in 2017 by Mining Sense, through its subsidiary: Mines & Metals Trading Peru SAC
Location: Huachocolpa district, Huancavelica 90 km south-east of Huancavelica city 7 hours by road from Lima One of Buenaventura’s historic assets (over 70 years of production) Production: 400 tpd until 2014 (care and maintenance) Resources: fertile ground 10,000-hectare land package 5 million tonnes of resources Mine-life: 20+ years using existing processing facilities
Fully-permitted mine and plant Toll production (450 tpd) starting Q1 2018 $3.4 million revenue 2018 Own mining production starting Q4 2018 $10 million investment plan Potential for consolidation of the regional play
PERU Huancavelica Lima
KEY ADVANTAGES AT RECUPERADA
NEAR-TERM CASH FLOW TOLL PROCESSING Q1 2018 STRONG RESOURCE BASE MINING PRODUCTION Q4 2018 GREAT UPSIDE POTENTIAL NARROW VEIN / DISSEMINATED
PHASE I ACQUISITION + CASH-FLOW
$7.5 MILLION INVESTMENT COMPLETED CASH-FLOW PROVISION TOLL PROCESSING (450 TPD) $3.4 MILLION REVENUE 2018 PHASE II RESTART MINING PRODUCTION
$10 MILLION INVESTMENT IMMEDIATELY 50-50 SPLIT MINING / TOLL PROCESSING Q4 2018 PHASE III MEDIUM-TERM VISION
additional resources in the area
$15 MILLION INVESTMENT 2019 SOLID POSITION AS A KEY REGIONAL PLAYER IN HUANCAVELICA
The reopening of Recuperada brings tremendous opportunities for miners in the area
Tolling agreements in place for 450 tpd:
Astohuaraca - 25 km away Chonta - 18 km away Cambalache - 28 km away
Miners previously took their ore to processing plants on the coast. With Recuperada, trucking costs dramatically go down from $25/t to $4/t Recuperada will:
previously considered uneconomic
its own mining assets
Once the plant is up and running for toll processing, Mining Sense will restart mining operations
Q4 2018: exploitation of the Tangana zone for 350 tpd of own production 2019: operations restart at the historic Teresita mine Investment plan: $25 million ($10 + $15 million), including:
V . E S T R E L L A
9 K m V . T A N G A N A 4
7 5 K m
V . I S A B E L
K m
PLAN VIEW 3D TOPOGRAPHY
Tangana is the first of various assets in Huancavelica that Mining Sense is putting into production
$10 million investment plan to restart mining production at the Tangana concession in 2018
350 TPD OWN MINING PRODUCTION Q4 2018
Diversified production with zinc and lead, as well as precious metals
GREAT EXPOSURE TO HIGHER METAL PRICES
Contracts in place with three mining producers, providing immediate cash-flow
450 TPD TOLL PROCESSING
Increased production in 2019 (historic Teresita mine). New M&A
UPSIDE POTENTIAL
Excellent technical and local expertise guaranteeing strong community relationships
LOCAL TEAM
Ready to start. Permits being extended to guarantee full mine life
FULLY PERMITTED STRATEGIC LOCATION
Potential to consolidate the district and unlock the real potential as a regional play Mining Sense acquired the asset from Buenaventura
100% OWNERSHIP
Recuperada is just the stepping stone of an aggressive growth story
Further corporate development milestones will include:
Arcopunco acquisition
Gold project under evaluation
Lancones + La Saucha
Expanded project pipeline
A first step towards regional consolidation
Earn-in agreement option Explored by Buenaventura in the 1990s. 14 holes, 3,582 meters drilled looking for the ‘Lithocap’ Resources: 3 million tonnes @ 0.4 g/t Au in sulphides (40,000 oz Au) ‘Epithermal-Porphyry’ center - 3km radius anomaly in andesitic rocks Richard Sillitoe: “The principal target is considered to be porphyry gold mineralization beneath the scattered exposures of banded quartz veinlets” Business Concept: Consolidation of the Huachocolpa district
Taking the company to the next level of corporate development
450,000 oz Au resource High sulphidation epithermal disseminations and veins Strong upside potential to increase resource Feasibility study completed 2008 for a 40,000 oz/y Au operation Low grade gold leaching operation Low stripping ratio Low cost Potential combination with Arcopunco to create a world-class size gold play Short-term production potential: oxides and sulfides Long-term exploration development Owned by a senior precious metals company Acquisition cost around $10 million
A promising drill-ready project in northern Peru
100% Ownership VHMS deposit prospect in Piura department Excellent access by air and road - elevation just 300 meters above sea level Previous exploration (2001)
Lancones basin. Mining Sense has acquired a strategic area comprising the most important drilling targets from the previous geophysics works. Drilling targets defined - 3 drill-holes planned for 2018
Drilled project with precious and base metals mineralization
15% ownership. Control of the project, purchase option VMS, “Kuroko type” deposit with Zn, Pb, Au and Ag mineralization Location: Lancones basin, an important host for these kinds of deposits Near Tambogrande VMS cluster (300 million tonnes of Cu-Zn-Au-Ag- Pb ore) Five different mineralization zones identified in La Saucha
24.85 m @ 55.05 g/t Ag, 0.45% Cu, 1.18% Pb, 2.98% Zn 5.10 m @ 52.97 g/t Ag, 0.25% Cu, 1.83% Pb, 14.0% Zn 5.20 m @ 0.55 g/t Au, 31.58 g/t Ag, 0.31% Cu, 0.52% Pb, 4.71% Zn 6.35 m @ 3.0% Zn 6.30 m @ 21.62 g/t Ag, 1.31% Pb, 2.97% Zn
50 Mil.
M a r k e t c a p i t a l i z a t i
2017 40 100 150 200 Revenue ($ Million)
Resource consolidation
from Pan American Silver (resource: 5 million tonnes)
agreement on La Saucha VMS
1,000-1,500 tpd
Recuperada into production Recuperada doubling production Au project into production
2018 2019 2020 2021
José M. García - Founder, CEO and Director
Mining Engineer / Masters Mineral Economics International mining career: Peru, Chile, Australia, Spain World Economic Forum - Global Leadership Fellows Programme (Switzerland) Experience in mining operations, project management and evaluation, and corporate affairs Anglo American, Buenaventura, BHP Billiton, Inmet Mining
Sebastian Wahl - Co-founder, CFO and Director
Degree in Business Law / BSc Business Administration and Management German national based in Peru since 2010 A decade of experience in the investment business, mining and commodity trading In charge of Mining Sense financial planning and execution Affinity Gold, Mines & Metals Trading Peru, Consultant for precious metals companies
Alberto Ríos - Exploration Manager and Director
Geological Engineer / PhD in VMS-type deposits Qualified Person (QP) for Lima Stock Exchange (BVL) Discovery track-record: led teams for CB Gold (4 million oz Au) and Arasi-Jessica (800,000 oz Au) Other experience: Azuca discovery (Hochschild), Taca Taca project (Rio Tinto, Argentina)
Juan Carlos Ramírez Strategy Advisor
Former Vice Minister Mines / Director, IIMP Formerly at Buenaventura, Southern Copper
Jesús Montero Mining Director
15-year experience, developed greenfield projects (Spain) Formerly at Las Cruces Copper, Berkeley Energia
Lidia de La Cruz General Manager
Mining and corporate lawyer Formerly at Milpo, Marsa, Volcan
Juan Ricardo López Chief Mining Engineer
M.Sc. Mineral Economics - Specialist in mine productivity and planning Formerly at Ministry of Mines, Volcan, BHP Billiton (Chile)
Daniel Robles Environmental Expert
10 years experience in EIA studies and permitting (Canada / Peru) Formerly at Barrick Gold and ERM
Philippe Cohen Strategy Advisor
Entrepreneur, banking background Involved across extractive industries value chain
Gilbert Lanoire Finance and Controlling
CPA, MBA, lead auditor for ISO 9000 quality systems Former Chief Accountant Officer at Barrick South America
Bedrick Mory Geology & Exploration Consultant
Advisor in mine development and production geology Formerly at Los Quenuales (Glencore)
Aroldo Inga Plant Manager
Metallurgical engineer and safety / occupational health expert Formerly at Buenaventura, Shuntur, Castrovirreyna
Juan Pablo Guerrero Geologist
Geological engineer with track-record in community relations Formerly at Silver Standard, Votorantim, Oban Mining
OFFICE
Miraflores, Lima Peru Tel: +51 (1) 414 9095 José M. García, CEO j.garcia@mining-sense.com Tel: +51 944 163 451 Sebastian Wahl, CFO s.wahl@mining-sense.com Tel: +51 994 745 841
Vein Length Depth Pot P.E. mt GRADE POTENTIAL EQUIVALENT Ag g/t Oz Ag Au g/t Oz Au Pb % Zn % Oz Ag Oz Au Oz Pb Oz Zn Oz Ag Eq (Ag Au) Oz Ag Eq (Ag Au Pb Zn) TANGANA ZONE Cauca 1200 300 0.95 2.6 889200 182.00 5.85 1.92 0.062 2.81 0.94 5,203,093 54,890 803,425,080 268,761,415 9,408,202,13 14,136,368,28 Tangana NW 1400 200 1,70 2.6 1237600 102.00 3.28 0.30 0.010 5.44 2.87 4,058;553 11,937 2,164,805,145 1,142,093,891 4,973,041,20 19,898,896,89 Tangana Central 750 300 1.20 2.6 702000 113.00 3.63 0.28 0.009 4.15 2.19 2,550,388 6,320 936,752,412 494,334,405 3,034,529,0v9 9,493,903,88 Tangana SE 600 300 0.70 2.6 327600 138.00 4.44 0.22 0.007 1.39 0.74 1,453,496 2,317 146,419,293 77,949,839 1,631,013,90 2,644,219,24 Estrella 900 200 0.50 2.6 234000 45.00 1.45 0.81 0.026 1.21 0.88 338,547 6,094 91,041,801 66,212,219 805,397,23 1,528,205,99 Gaby 1000 200 0.70 2.6 364000 98.00 3.15 0.46 0.015 0.39 0.11 1,146,881 5,383 45,646,302 12,874,598 1,559,296,87 1,815,398,94 SUB TOTAL 3,754,400 14,750,957 86,941 21,411,480 49,516,993 SAN ANTONIO ZONE San Antonio NW 1100 350 1.20 2.6 1201200 59.00 1.90 0.19 0.006 2.74 3.99 2,278,547 7,338 1,058,291,961 1,541,089,389 2,840,688,77 15,277,716,85 San Antonio Centro 350 200 0.70 2.6 127400 81.00 2.60 0.20 0.006 3.37 2.91 331,776 819 138,050,804 119,207,074 394,535 1,588,930,11 San Antonio SE 600 150 0.85 2.6 198900 116.00 3.73 0.24 0.008 4.68 2.63 741,794 1,535 299,309,325 168,201,608 859,371 2,976,885,80 SUB TOTAL 1,527,500 3,352,118 9,692 1,253,907 19,843,533 HUACHOCOLPA SOUTH ZONE Liz 800 200 0.35 2.6 145600 29.00 0.93 0.08 0.003 1.03 1.38 135,753 374 48,221,222 64,607,074 164,443 701,779,81 Flor SW 600 200 0.65 2.6 202800 247.00 7.94 0.05 0.002 5.09 9.64 1,610,481 326 331,913,826 628,614,791 1,635,457 6,295,990,93 Flor NE 300 200 0.80 2.6 124800 28.00 0.90 0.06 0.002 0.78 1.37 112,347 241 31,300,322 54,976,206 130,791 547,780,35 SUB TOTAL 473,200 1,858,582 941 1,930,691 7,545,551 MARÍA LUZ ZONE Silvia 300 200 0,35 2.6 54600 801.00 25.75 0.73 0.023 0.41 0.67 1,406,099 1,281 7,198,071 11,762,701 1,504,272 1,595,563,02 José 250 200 0,60 2.6 78000 210.00 6.75 0.24 0.008 0.08 0.19 526,629 602 2,006,431 4,765,273 572,737 605,959,45 Rossana 150 150 0,55 2.6 32175 196.00 6.30 0.13 0.004 0.05 0.14 202,752 134 517,283 1,448,392 213,055 222,769,44 Ramal Silvia 150 150 0,25 2.6 14625 1839.00 59.13 1.22 0.039 0.59 0.77 864,706 574 2,774,518 3,620,981 908,653 939,066,07 SUB TOTAL 179,400 3,000,186 2,591 3,198,717 3,363,358 CASTORINDO ZONE Castor 400 135 1.24 2.6 174096 287.9 9.26 5.52 0.177 1.83 1.00 1,611,466 30,897 102,442,341 55,979,421 3,978,500,04 4,694,930,91 Jess 40 20 0.18 2.6 374 654.7 21.05 0.07 0.002 2.68 0.22 7,881 0,84 322,634 26,485 7,945,33 9,418,05 Pamela 1 220 74 1.68 2,6 71111 105.3 3.39 0.16 0.005 1.03 0.07 240,744 366 23,551,245 1,600,570 268,768,60 374,532,02 Pamela 2 360 120 0.75 2.6 84240 224.8 7.23 0.4 0.013 3.13 0.13 608,843 1,083 84,781,736 3,521,286 691,838,70 1,060,855,37 Norah 240 80 0.43 2.6 21466 268.4 8.63 1.19 0.038 5.77 1.92 185,232 821 39,825,245 13,252,075 248,148,91 482,153,51 SUB TOTAL 351,287 2,654,167 33,168 5,195,202 6,621,890 VIUCO ZONE SE Viuco 1200 150 0.44 2.6 205920 111.649 3.59 0.23 0.007 1.98 1.23 739,253 1,523 131,100,193 81,441,029 855,907,69 1,824,024,50 NE Viuco 1200 250 0.36 2.6 280800 158.921 5.11 0.000 0.23 0.32 1,434,888
28,892,605 1,434,888,00 1,671,886,83 SUB TOTAL 486,720 2,174,141 1,523 2,290,796 3,495,911 TOTAL 6,772,507 27,790,150 134,856 35,280,792 90,387,236
LME ZINC HISTORICAL PRICE GRAPH
(Source: LME. Period January 1st 2016- December 6th 2017)
LME LEAD HISTORICAL PRICE GRAPH
PERU’S RANKING IN PRODUCTION AND RESERVES
LATIN AMERICA WORLD ELEMENT
PRODUCTION
6 2 2 2 4 4 6
COMMODITY
Gold Silver Copper Zinc Lead Molybdenum Tin
PRODUCTION
1 2 2 1 1 2 3
RESERVES
6 1 3 3 4 4 11
RESERVES
1 1 2 1 1 2 3
Au
79
Ag
47
Cu
29
Zn
30
Pb
82
Mo
42
Sn
50
Source: USGS (2017 Commodity Summaries, rankings for 2016)