June 2012 Forward Looking Statements No stock exchange, securities - - PowerPoint PPT Presentation
June 2012 Forward Looking Statements No stock exchange, securities - - PowerPoint PPT Presentation
June 2012 Forward Looking Statements No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. This presentation includes certain forward -looking statements . All
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No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. This presentation includes certain “forward-looking statements”. All statements other than statements of historical fact, included in this presentation, including without limitation statements regarding potential mineralization and reserves, exploration results, and future plans and objectives of ECI, are forward-looking statements that involve various risks and uncertainties. The mineral resources estimates contained herein are only estimates and no assurance can be given that any particular level of recovery of minerals will be realized or that an identified resource will ever qualify as a commercially mineable or viable deposit which can be legally and economically exploited. In addition, the grade of mineralization ultimately mined may differ from the one indicated by drilling results and the difference may be material. The estimated resources described herein should not be interpreted as assurances of mine life or of the profitability of future operations. There can be no assurance that forward-looking statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from ECI’s expectations include, among others, risks related to international operations, the actual results of current exploration activities, conclusions of economic evaluations and changes in project parameters as plans continue to be refined as well as future prices of gold and silver, as well as those factors discussed in the section entitled “Special Note Regarding Forward-Looking Statements” in ECI’s Preliminary Prospectus available on www.SEDAR.com. Although ECI has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such 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. Cautionary Note to United States and Other Investors Concerning Estimates of Measured, Indicated and Inferred Resources: Certain tables may use the terms “Measured”, “Indicated” and “Inferred” Resources. United States investors are advised that while such terms are recognized and required by Canadian regulations, the United States Securities and Exchange Commission does not recognize them. “Inferred Mineral Resources” have a great amount of uncertainty as to their existence, and as to their economic and legal feasibility. It cannot be assumed that all or any part of an Inferred Mineral Resource will ever be upgraded to a higher category. Under Canadian rules, estimates of Inferred Mineral Resources may not form the basis of feasibility or
- ther economic studies. United States investors are cautioned not to assume that all or any part of Measured or Indicated Mineral Resources will ever be
converted into Mineral Reserves. United States investors are also cautioned not to assume that all or any part of a Mineral Resource is economically or legally mineable. A preliminary prospectus containing important information relating to the securities referenced herein has been filed with securities commissions or similar authorities in certain jurisdictions of Canada. The preliminary prospectus is still subject to completion or amendment. Copies of the preliminary prospectus may be obtained from Stifel Nicholas Canada Inc. (P. Mark Smith, smithpm@stifel.com), Scotia Capital Inc. (Don Njegovan, don_njegovan@scotiacapital.com), National Bank Financial Inc. (Daniel W. Wilton, dan.wilton@nbfinancial.com). There will not be any sale or any acceptance of an offer to buy the securities until a receipt for the final prospectus has been issued.
Forward Looking Statements
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Investment Highlights
Developing Precious Metals Projects in Three Prolific Mining-Friendly Districts
- Indé (Ag-Au-Pb-Zn-Cu) in Mexico
- Juruena Belt (Gold) in Brazil
- Poconé Belt (Gold) in Brazil
Indé
Growing Resources Moving Towards Feasibility
- Nov 2011-May 2012 Growth of Ag Resource from 40Moz to +50Moz
- Vein – Indicated: 23.7Moz Ag, Inferred: 27.42Moz Ag (total of 51Moz Ag)
- Vein-Indicated : 107koz Au, Inferred: 104koz Au (total of 211koz Au)
Skarn - Indicated: 456koz Au, 187Mlbs Cu, Inferred: 262.1koz Au, 122Mlbs Cu (718koz Au
Juruena Belt
Property Holdings in a District with Historic Alluvial Garimpeiro Mining
- Nov 2011-April 2012 Growth of Internal Resource: 100koz Au to 695koz
Au
- Numerous Geophysical Structures remain to be tested at Cajuero
- Drill Plan designed to take Resource to 2Moz Au with 8,000m drilling
- Several Other Mineralized Properties
Poconé Belt
Similar Geological Setting to Paracatu
- Indentified 10 priority Targets identified along 100km Belt
- Metallurgical testing shows greatly increased recovery using flotation.
- Significant Interest from Majors and other Parties
Established Shareholder Base
- The Sentient Group owns ~15.4% of the fully-diluted common shares
- utstanding and has a right to maintain at least a 15.1% interest
- Hochschild Mining PLC owns ~4.3% of the fully-diluted common shares
- utstanding and has a right to maintain its pro rata interest
Experienced Management
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Management and Board of Directors
Robert J. Harrington President, CEO & Chairman
- Former Exploration Manager for
Mauricio Hochschild
- Former General Manager of
Peruvian Exploration at Rio Tinto
- MSc, BSc
Paul T. Hansed CFO & Corporate Secretary
- CFO of Magellan Minerals
- Former Chartered Accountant with
KPMG
- BBA, CA
Michael J. Bennett Vice President Exploration
- Former Exploration Manager with
Jordex Resources in JV’s with Barrick Gold & Rio Tinto
- BSc Mining Geology
Louis G. Montpellier Director
- Director & VP Corporate
Development / General Counsel of Exeter Resource Corporation
- Former Partner of Gowling Lafleur
Henderson LLP
- LLB
Jorge Benavides Alfaro Director
- President & CEO of Zincore Metals
- Former Senior VP Corporate
Development for Hochschild Mining PLC
- Former Senior Advisor to the
Chairman of Hochschild Mining PLC
- MSc, BSc
Roman Friedrich III Director
- Founder and President of Roman
Friedrich & Company
- Managing Director, Mining and
Metals, of McNicoll Lewis & Vlak LLC
- BA
John Mears Director
- Geologist
- Representative of Sentient Group
Note: Full biographies for each of the above individuals can be found in the company’s preliminary prospectus available at www.sedar.com
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MEXICO
Indé – Silver and Gold (Earning a 50% interest)
- High grade polymetallic deposit moving towards
feasibility
- Historical district production of ~4.9Moz Ag and
~0.9Moz Au since 1767
- Maiden Vein Resource of 23,70Moz Ag Indicted &
27.42Moz Ag Inferred (total of 51Moz)
- Maiden Skarn Resource of 453.6koz Au, 187Mlbs Cu
Indicated & 262.2koz Au, 122Mlbs Cu Inferred
BRAZIL
Juruena Belt – Gold (100% ECI)
- 353,448 hectares in property holdings over 7 projects
- Historic gold production of 7Moz to 10Moz Au from
Garimpeiro workings
- Two properties drill tested, high-grade intercepts
Poconé Belt – Gold (35% ECI)
- Exploring 100km long gold belt in the south of the Mato
Grosso state
- Numerous producing and historic Garimpo gold
- perations
- Free-digging, Paracatu-style mineralization
Main Asset Summary
Main Projects
Poconé Gold Belt Juruena Gold Belt
Vancouver Cuiaba
Indé
Torreon
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Mexico Projects
INDÉ
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Indé (50% ECI)
- The Indé Property is located six kilometres south of the municipal center of Indé in the northern
portion of the state of Durango, Mexico
- Represents nearly 4,000 hectares over 27 mining concessions
- Near infrastructure: Paved highway, power line through site, numerous wells 100M below surface
MEXICO
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Indé (50% ECI)
- ECI is currently earning a 50% interest
Paying US$300K upon signing of agreement Incurring US$4.7M in exploration spend over 5 years since signing to Jan 30 2012. Lending US$2.0M to Scorpio Pay 50% of the value of the independently appraised infrastructure Complete a resource assessment to determine if there are sufficient resources to sustain a 1,000tpd mill for at least 5 years Vendors retain a NSR royalty of between 2% and 3% depending on size of production
- Currently operating as a small 150 tpd operation
- Modern exploration was very limited before
the arrival of ECI in late 2009
MEXICO
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Indé – Drilling
- ECI’s exploration drilling program began in early 2010 and has continued year-round into 2012
- Since early 2010, 104 diamond core drill holes totaling 24,166.18 metres and accounting for 19,307
assayed intervals have been completed
- Initial deep drilling has intersected mineralized porphyry at 800 metres depth.
Drill Hole Plan
MEXICO
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Indé – Resource
MEXICO
- Veins Ag-Pb-Zn structurally controlled.
- Copper-gold skarns.
- Gold deposits enriched by carbonate replacement.
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Indé – Resource
MEXICO
Note: Indé veins mineral resources at a calculated US$35/tonne cutoff and includes all drilling up to January 1, 2012 Indé skarn gold resource at 0.3gpt Au cutoff, and copper resource at 0.3% Cu cutoff
Au Ag Pb Zn Cu Au Ag Pb Zn Cu (kt) (gpt) (gpt) (%) (%) (%) (Koz) (Moz) (Mlbs) (Mlbs) (Mlbs) Indé Veins: Indicated Resource* 4,005 0.71 213 0.84% 1.49% 0.14% 107.5 23.7 193.9 7421.4 28.0 Indé Veins: Inferred Resource* 4,806 0.57 153 0.60% 1.15% 0.01% 104.0 27.42 165.6 685.8 3.5 Indé Skarn: Indicated Resource 12,189 0.98
- 0.31% 453.6
- Indé Skarn: Inferred Resource
9,722
- 0.25%
- 122.0
* Copper grade calculated from the total tonnes in veins reporting copper Contained Resource Tonnes Grade 0.71 187.9 262.1
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Indé – Resource
MEXICO
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Indé – Resource
MEXICO
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Indé – Resource
MEXICO
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Indé – Deep Drilling
MEXICO
Magnetite Skarn Potassic Alteration Monzonite Limestone Phyllites Metasediments Conglomerate LEGEND
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Indé Summary
- Mexico polymetallic (Ag-Au-Zn-Pb-Cu) project with a growing resource moving towards
feasibility
- ECI earning a 50% interest
- Drilled 24,166.18 metres since early 2010 to produce a maiden resource
- Vein – Indicated: 23,7Moz Ag, Inferred: 27.42Moz Ag (50Moz Ag Total)
- Skarn – Inferred: 416koz Au, 111Mlbs Cu
- Drilling ongoing
- Initial compilation of data has verified the existence of an extensive mineral system
- Initial deep drilling indicates mineralized porphyry at depth
MEXICO
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Brazil Projects
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Juruena Gold Belt (ECI 100%)
- ECI’s has 7 projects in the Juruena Belt consisting of over 353,448 hectares
- Cajueiro & Colider have been drilled while others are being systematically explored
- The Juruena belt was the subject of a major gold rush by artisanal miners from the 1970s to the
early 1990s which according to government estimates produced 7Moz to 10Moz
- Actual production is believed to be two to three times higher
- At the height of mining activities in the 1980s, some 2,000 Garimpeiros were active on the Cajueiro
property
BRAZIL
CAJUEIRO PROJECT (2.06 Moz)
Cajueiro
- ECI Brazil owns 100% of the 43,114 hectare Cajueiro Property, located 48 km northwest of the town
- f Paranaita and approximately 95 km north of the city of Alta Floresta (the largest city in Mato
Grosso)
- Garimpeiros have mined the region since the 1970s
- The property is underexplored with only 11,171.01 metres drilled to date in 55 diamond drill holes
- The potential exists for further discovery of gold mineralization in fracture zones and wider, lower-grade
zones within hydrothermally altered rocks of the Cajueiro Property
Drill Hole Locations Soil Sampling and Trench Exploration
BRAZIL
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Cajueiro Resource Estimate
- The
Cajueiro Project is the most advanced of the Juruena belt and has an in-house inferred resource on four target areas.
Crente Structural Zones
Drill Core (Crente Target)
Crente Inferred Resource Estimate
Note: Inferred Resource at 0.3 gpt Au cutoff
BRAZIL
Target Tonnes Au Grade Contained Gold (kt) (gpt) (oz)
Matrinchã 1,89 1,07
64.871,04
Marinês 1,12 1,70
61.447,89
Baldo 4,68 1,10
165.427,37
Crente 11,42 1,10
403.762,01 Total Resources 19,10 1,15 695.508,31
Sample 24649 / From 129.95 to 130.95 / 1 m @ 3.69 g/t Au
- The Crente zone is a large 3 km x 5 km area
with old workings, extensive soil anomalies
Colider (ECI 100%)
- The Colider Property is accessible via 25 km
- f well-maintained dirt roads between the
property and the city of Colider
- Very early stage project with only 13 holes
(2,700m) of drilling to date.
- Artisanal miners have mined the
region since the 1970s, when they began working alluvial gold from the River Santa Paula Long Section Along Edu Shear Zone
BRAZIL
DDH (001-CL-10)
Target Tonnes Au Grade Contained Gold (kt) (gpt) (oz)
Alvo Edu Principal 2,40 5,20
40.062,74
Edu Zone Inferred Resource Estimate
- Potencial for 500,000 oz Au on this structure.
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Colider Regional Targets
BRAZIL
- 4 targets in NW mineralised trend
- NE and EW high grade parallel veins
- Multi-million oz gold potential
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Apiacas Project - Regional Soil Sampling
BRAZIL
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Apiacas Project - Rock Sampling Results
BRAZIL
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Apiacas Project - Casa Branca Target Trench Results
BRAZIL
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Juruena Gold Belt Summary
- The Juruena Belt was the subject of a major
artisanal gold rush in the 1970s to the early 1990s
- Official estimates of total gold production of 7Moz
to 10Moz
- Advanced projects Cajueiro, Colider and Apiacas
to be aggressively explored over the next 12 months
- In house resources of 695,508 oz Au at Cajueiro
Project Edu Vein (Colider) Zé Rodrigues (Colider) Crente Shear Zone (Cajueiro)
BRAZIL
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BRAZIL
Poconé Gold Belt
GEOLOGICAL MAP OF POCONÉ GOLD BELT AIRBOURNE GEOPHYSICAL SURVEY WITH INTERPRETED STRUCTURES IN THE POCONÉ GOLD BELT
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Poconé Gold Belt
- Ownership:
35% ECI, 35% Magellan Minerals and 30% Brasil Central 50% ECI, 50% Magellan Minerals Option to puchase 100%
- Numerous historic and active Garimpo workings
- Bulk sampling and aeromagnetic surveys have
confirmed the presence of a large anomaly
BRAZIL
- The Poconé Property consists of 129 generally contiguous mining claims with a total surface area of
315,780.56 hectares (100km length) and is located in the southern part of the state of Mato Grosso
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Poconé – Garimpo Workings
Existing Garimpo Locations Deformed Metasediments Recumbent Isoclinal Folds
BRAZIL
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Poconé Gold Belt – Air Core Drillhole Locations
BRAZIL
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Poconé Gold Belt – 10 Priority Target Areas
BRAZIL
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Paracutu vs Poconé
Paracutu Poconé
Gold hosted in Phyllites
Disseminated Mineralization
Free-Digging
Highly Folded
Recoveries 78.6% to 82.3%1 Max of 60% (Garimpeiros) Bench Test ECI 85% - 96%3 Reserve 18.5Moz @ 0.39gpt Au1 TBD Annual Production 482koz2 TBD
(1) 2010 AIF - Recovery range used by Kinross in calculating mineral reserves and resources (2) 2010 actual AuEq production (3) Pilot plant test work was completed on seven bulk samples totaling 97 tonnes
BRAZIL
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Poconé Belt Summary
- Total surface area of 315,780.56 hectares in the Poconé gold belt (Mato Grosso state) of
Brazil extending about 100km
- ECI owns 35% – partners with Magellan Minerals (35%) and Brasil Central (30%)
- Numerous active and historic Garimpo workings
- Free-digging, Paracatu-style mineralization
- Metallugical testing shows greatly increased recovery using floation.
BRAZIL
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CORPORATE INFORMATION
Total Basic Shares Outstanding 71.2M Fully-Diluted Shares Outstanding 98.2M Cash (Dec 31, 2011) C$8.3M Long-Term Debt (Dec 31, 2011) C$0M Ownership: Sentient Group 15.1M Shares Hochschild 4.2M Shares Management & Board 4.2M Shares Other Insiders 5.9M Shares
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Investment Highlights
Developing Precious Metals Projects in Three Prolific Mining-Friendly Districts Indé Growing Resources Moving Towards Feasibility Juruena Belt Property Holdings in a District with Historic Alluvial Garimpeiro Mining Poconé Belt Similar Geological Setting to Paracatu Established Shareholder Base Experienced Management and Board