Investor Presentation June 2018 Disclaimer This Document comprises - - PowerPoint PPT Presentation
Investor Presentation June 2018 Disclaimer This Document comprises - - PowerPoint PPT Presentation
Investor Presentation June 2018 Disclaimer This Document comprises an institutional presentation (the Presentation) which has been prepared by and is the sole responsibility of Herencia Resources Plc (the Company), a company trading on
Disclaimer
This Document comprises an institutional presentation (the “Presentation”) which has been prepared by and is the sole responsibility of Herencia Resources Plc (the “Company”), a company trading on AIM, the market operated by the London Stock Exchange plc (“AIM”). The content of this promotion has not been approved by an authorised person within the meaning of the Financial Services and Markets Act 2000. Reliance on this promotion for the purpose of engaging in any investment activity may expose an individual to a significant risk of losing all of the property or other assets invested. The information in this presentation is subject to updating, completion, revision, further verification and amendment without notice. This Presentation does not constitute or form part of any offer for sale or solicitation of any offer to buy or subscribe for any securities nor shall it or any part of it form the basis of or be relied on in connection with, or act as any inducement to enter into, any contract or commitment whatsoever or constitute an invitation or inducement to engage in investment activity under section 21 of the UK Financial Services and Markets Act 2000. Notwithstanding the above, in the United Kingdom, this Presentation is only being given to persons reasonably believed by the Company to be investment professionals within the meaning of paragraph (5) of Article 19 or to high net worth companies or unincorporated associations within the meaning of paragraph (2)of Article 49 of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (SI 2005/1529). This Presentation is only being sent to persons reasonably believed by the Company to be investment professionals or to persons to whom it may otherwise be lawful to distribute it. If you are not such a person (i) you should not have received this Presentation and (ii) please return this Presentation to the Company's registered office as soon as possible and take no other action. By accepting this Presentation the recipient represents and warrants that they are a person who falls within the above description of persons entitled to receive this Presentation. This document has not been approved by an authorised person under Section 21 of the Financial Services and Markets Act 2000 (“FSMA”). This Presentation is not intended to be distributed, or passed on, directly or indirectly, to any other class of person and in any event under no circumstances should persons of any other description rely or act upon the contents of this Presentation. This Presentation and its contents are confidential and must not be distributed or passed on, directly or indirectly, to any other person. This Presentation is being supplied to you solely for your information and may not be reproduced, further distributed or published in whole or in part by any other person. No representation or warranty, express or implied, is made or given by or on behalf of the Company, its advisers or any of their respective parent or subsidiary undertakings or the subsidiary undertakings of any such parent undertakings or any of the directors, officers or employees of any such person as to the accuracy, completeness or fairness of the information or opinions contained in this Presentation and no responsibility or liability is accepted by any person for such information or opinions. 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The Company has not been, and will not be, registered under the US Investment Company Act of 1940, as amended, and investors will not be entitled to the benefits of that Act. Neither this Presentation nor any copy of it may be taken or transmitted into the United States of America or its territories or possessions (the “United States”), or distributed, directly or indirectly, in the United States, or to any U.S Person as defined in Regulation S under the Securities Act 1933 as amended, including U.S resident corporations or other entities organised under the laws of the United States or any state thereof or non-U.S branches or agencies of such corporations or entities or into Canada, Australia, Japan, South Africa or the Republic of Ireland. Neither this Presentation nor any copy of it may be taken or transmitted into or distributed in Canada, Australia, Japan, South Africa or the Republic of Ireland, or any other jurisdiction which prohibits the same except in compliance with applicable securities laws. Any failure to comply with this restriction may constitute a violation of United States or other national securities law. Forward-Looking Statements. Information contained in this Presentation may include 'forward-looking statements'. All statements other than statements of historical facts included herein, including, without limitation, those regarding the Company's financial position, business strategy, plans and objectives of management for future operations (including development plans and objectives relating to the Company's business) are forward-looking statements. Such forward-looking statements are based on a number of assumptions regarding the Company's present and future business strategies and the environment in which the Company expects to operate in future. Actual results may vary materially from the results anticipated by these forward-looking statements as a result of a variety of
- factors. These forward-looking statements speak only as to the date of this Presentation and cannot be relied upon as a guide to future performance. The Company expressly disclaims any
- bligation or undertaking to disseminate any updates or revisions to any forward-looking statements contained in this Presentation to reflect any changes in its expectations with regard thereto
- r any change in events, conditions or circumstances on which any statement is based.
Key Points
- Multi-focussed copper and base metals strategy in Chile
- Advanced projects with significant prior drilling and mining
- Excellent geological pedigree;
- Significant past drilling results
- Strong current artisanal mining grades
- Under-explored footprint
- Close to other copper and base metal operations – toll treatment
- Core projects_ Picachos/Pastizal tenements and Guamanga
- Both Mantos systems and demonstrate high grade copper zones
- Guamunga early stage – copper, gold and cobalt
- 28 of 29 past holes in Picachos intercepted copper
- 40 M Shaft prospect - 91m at 1.42% Cu & 13.5 g/t Ag
- Including – 20 m at 3.10% Cu & 25.4 g/t Ag
- Pastizal drilling grades up to 4.10% Cu
- 15 of 25 RC holes were within copper ores
- Guamanga-6.0 m @ 2.2% Cu and 1.34 g/t Au from 42 m (1440 Co ppm)
- Targeting other mineral projects build Herencia
- HG copper, copper porphyry's, cobalt, gold
Company overview
- AIM Listed Resource Company (AIM: HER)
- Strategic Copper assets in Chile
- Strong management team with extensive exploration and financial experience
Financial
Auditors UHY Hacker Young LLP Number of shares 10.6B Company Secretary Shakespeare Martineau Market capitalisation £4.2M (Ben Harber) Nominated Advisor WH Ireland Limited Share registry
Capita Registrars
Office: 6th Floor 60 Grace Church St London EC3V 0HR Ph: +44 (0)207 544 5555
The Team
Carl Dumbrell Non Executive Director
- Appointed May 2018
- Managing Director Emperor
Energy (ASX: EMP)
- Chartered Accountant, Australia,
England & Wales Jeff Williams Executive Director
- Appointed March 2017
- Managing Director MacPhersons
Resources (ASX: MRP)
- Mining Engineer
Sergio Avendaño Country Manager - Chile
- Appointed March 2011
- Civil Engineer with extensive
experience in resources in Chile
Chile
PICACHOS/ PASTIZAL
- World largest copper producer
- Low sovereign risk
- Producers include Codelco,
Freeport-McMoRan, Glencore, BHP, Rio Tinto and Anglo American
- Well developed infrastructure
- Skilled mining workforce
GUAMANGA
Schedule of Tenements
Permit Type Ownership Pastizal Option 100% Picachos Option 100% Guamanga Lease 100% La Serena Lease 100%
Pastizal Picachos
Pastizal & Picachos
- Pastizal Option agreement signed Nov 2017
- Private mine production for +20 yrs (grade
+2.0% Cu)
- Inaugural drill campaign at Pastizal in Dec 2018
comprising 2,400 RC metres
- Excellent initial results:
- PZ17051 4 m at 1.47% Cu from 31 m
- PZ17057 4 m at 2.72% Cu from 52 m
3 m at 4.13% Cu from 59 m
- PZ17063 4 m at 2.21% Cu from 16 m
5 m at 1.69% Cu from 32 m 2 m at 3.03% Cu from 60 m
- PZ17064 3 m at 1.94% Cu from 19 m
- PZ17065 3 m at 1.39% Cu from 15 m
- PZ17066. 3 m at 1.44% Cu from 32 m
9
Picachos – prospective drill targets
Possible Porphyry Feeders
suggested by geological setting
Mining shallow ore – 40m shaft
Picachos “40m Shaft Prospect”
High grade copper grades at surface
Cross section PDP 21 showing untested potential Grades include
- 117m @ 1.14% Cu
- 34m @ 2.09% Cu
- 53m @ 0.68% Cu
(with 16m @1.14%) Conceptual open pit with untested areas. Note high grades near surface private mining workings (up to 4.5% Cu values…) Mineralisation extends well below the conceptual pit floor.
High grades extending to surface
Cross section PDP 16 showing untested potential Grades include
- 91m @ 1.42% Cu
- 14m @ 1.00% Cu
- 12m @ 1.19% Cu
Conceptual open pit with untested areas. Note high grade near surface private mining workings. Mineralisation extends well below the conceptual pit floor.
Guamanga Project – Copper with Cobalt
- Potential large tonnage IOCG
- Mineralisation similar to large local deposits
- Manto Verde 250 Mt IOCG - 15 km north
- Candelaria 420 Mt IOCG - 100 km south
- JV with Oz Minerals in 2014/15 intercepted
deep low grade copper mineralisation
- Great location with nearby infrastructure
- Cobalt & Molybdenum grades are enticing
- Work to date insufficient but strong potential
- Evidence of 3 separate mineralisation styles:
- Au-Fe-Cu Veins
- Porphyry Copper
- Cu-Au-Fe veins and stockworks
Guamanga – 3 successful drill programs
16
Drilling Campaign 1 (Dec-11): 11 diamond drill holes,
- 10m at 1.1% Cu and 0.63g/t gold(Au) from 25m
including 5.0m at 1.7% Cu and 1.07g/t Au
- 15m at 0.8% Cu and 0.35g/t Au from 17m including
6.0m at 1.0% Cu and 0.42g/t Au
- 6m at 1.3% Cu and 0.49g/t Au from 5m
- 13m at 1.0% Cu and 0.40% Au from 63m
Drilling Campaign 2 (Mar-12): Included six diamond drill holes,
- 6m at 0.60% Cu and 0.20g/t Au from 146m
- 3m at 1.3% Cu 0.37g/t gold and 158ppm Co - some
drilling high values of Mo (up to 3280 ppm), Co (up to 1440 ppm) Drilling Campaign 2 -OZ Minerals (Jun-14) 5 diamond for 3,495m
- 14m at 0.52% Cu and 0.19g/t Au from 260m; and
24m at 0.32% Cu and 0.13g/t Au from 308m
- 6m at 0.43% Cu and 0.22g/t Au from 476m
- 12m at 0.51% Cu 0.17g/t Au from 668m
Guamanga Project – Copper with Cobalt
- Prior to the acquisition of Guamanga, a
number of drill holes were drilled to test the potential of Cu-Au mineralisation
- Positive results were identified in three drill
holes including the following interceptions:
- 8.0 m @ 1.55% Cu and 0.53 g/t Au from 36 m
- 2.0 m @ 2.7% Cu and 0.33 g/t Au from 9 m
- 6.0 m @ 2.2% Cu and 1.34 g/t Au from 42 m
- 3.0 m @ 2.9% Cu and 2.58 g/t Au from 34 m
- High values of Battery Metals observed;
- Molybdenum - up to 3280 ppm
- Cobalt - up to 1440 ppm
- These had high correlation with Cu and Au
Potential Treatment Options
Minera China Co Ltda. Treatment Plant
Potential for corporate transaction (JV/Purchase/Toll treat) Delayed due to environmental permits pending New plant nominal capacity: approx 900k tpa Road distance to Picachos site: 37 km
Plus one other treatment options currently being evaluated Tambillos Treatment Plant
Potential for corporate transaction (JV/Purchase/Toll treat) Spare capacity but limited tailings Treatment capacity: approx 900k tpa Road distance to Picachos site: 10 km
Minera China Treatment Plant
Company outlook and exploration strategy
- Further drilling at Picachos
- Exploration activities at Guamanga_Cu,Au,Co
- Assessment and due diligence of new exploration
project
- Recapitalise the company
- Review of current suppliers and terms of business
- Turn around the company’s share price
- www. herenciaresources.com