March 2013 Corporate Presentation www.eciexploration.com Forward - - PowerPoint PPT Presentation
March 2013 Corporate Presentation www.eciexploration.com Forward - - PowerPoint PPT Presentation
March 2013 Corporate Presentation www.eciexploration.com Forward Looking Statements No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. This presentation includes
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
1
2
Investment Highlights
Developing Precious Metals Projects in Three Prolific Mining-Friendly Districts
- Indé, November 2011 43-101 Resource (Silver, Gold, Copper) in Mexico
- Juruena Belt, March 2013 43-101 Resource (Gold) in Brazil
- Poconé Belt (Gold) in Brazil
Indé
Growing Resources Moving Towards Feasibility
44.2M oz Ag, 526,000 oz Au, 111Mlbs Cu (43-101 Resource)
- Vein – Indicated:17.1Moz Ag, Inferred: 27.1Moz Ag (total of 44.2Moz Ag)
- Vein-Indicated : 54.1koz Au, Inferred: 56.5koz Au (total of 110.6koz Au)
Skarn – Inferred: 416.3.koz Au, 111Mlbs Cu
Juruena Belt
Property Holdings in a District with Historic Alluvial Garimpeiro Mining
510,000 oz Au @ 1.2gpt (43-101 Resource)
- Numerous Geophysical Structures remain to be tested at Cajuero
- Drill Plan designed to take Resource to +2Moz Au with 16,000m 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
75.7M shares Outstanding
- The Sentient Group ~21%
- Management and Other Insiders ~14%
- Hochschild Mining Holdings ~6%
- Other Institutional Shareholders ~ 55% ( approx. 40)
Experienced Management
3
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
4
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 17.1Moz Ag Indicted &
27.1Moz Ag Inferred (total of 44.2Moz)
- Maiden Skarn Resource of 416.3koz Au, 111Mlbs Cu
Inferred
BRAZIL
Juruena Belt – Gold (100% ECI)
- 510,000 oz Au @1.2gpt 43-101 Resource at Cajuero
- 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
5
Mexico Projects
INDÉ
Naica Piterilla Fresnillo Silver Deposits Silver Belt
6
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
7
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
8
Indé: Resource
MEXICO
- Veins Ag-Pb-Zn structurally controlled
- Copper-gold skarns
- Gold deposits enriched by carbonate replacement
9
Indé: Resource
MEXICO
Note: Indé veins mineral resources at a calculated US$45/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* 2,8 0.6 189 1.01% 2.10% 0.27% 54.17 17.1 54.1 26.5 7.7 Indé Veins: Inferred Resource* 3.6 0.48 233.7 0.66% 1.07% 0.24% 56.56 27.17 52.9 85.6 10.5 Indé Skarn: Inferred Resource 11,800
- 0.72%
- 111.1
* Copper grade calculated from the total tonnes in veins reporting copper Contained Resource Tonnes Grade 1.1 416.3
10
Indé: Resource
MEXICO
11
Indé: Deep Drilling
MEXICO
Magnetite Skarn Potassic Alteration Monzonite Limestone Phyllites Metasediments Conglomerate LEGEND
800 Meters
14.95m @ 1.9gpt Au, 0.7% Cu, 46%Fe
12
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 an initial 43-101 Resource
- Vein – Indicated: 17,1Moz Ag, Inferred: 27.1Moz Ag (44.2Moz Ag, 110koz Au Total)
- Skarn – Inferred: 416koz Au, 111.2Mlbs Cu
- Results and Next Steps
- Ist phase shallow drilling of veins has verified an important Ag resource
- Initial deep drilling indicates significant mineralized skarn and porphyry at depth
- PEA and Feasibility
MEXICO
13
Brazil Projects
Project Locations within the Juruena Belt
Apiacas Project Cajueiro Project 43-101 Resourse Carlinda Project Novo Canaa Project Colider Project Rio do Pombo Project Firmino Project
- Historic Gold Production
from district 7-10Moz Au
- Excellent infrastructure
- Majors active including
Anglogold, Votorantim and Golden Star
14
Cajueiro: A Growing 43-101 Gold Resource March 2013 Update-510,000 0z Au @1.2gpt*
- The Cajueiro Property comprises approximately
50,000ha and is located 48 km northwest of the town of Paranaita and approximately 95 km north of the city of Alta Floresta (the largest city in the north of Mato Grosso)
- Historic placer gold workings extend over an area of
14km at Cajueiro with a historic gold production of +250,000 oz Au. Soil sampling by ECI has so far identified 9 separate anomalous areas of which 5 have been partially drill tested
- To date only 11,171 metres have been drilled in 55
diamond drill holes and an updated 43-101 compliant resource estimate is being prepared by Gustavson on parts of 4 of the anomalous areas, and is expected during February 2013
- Drill results thus far include 31m @ 2.37g/t gold, 30m @
1.48g/t gold, 46m @ 1.05g/t gold, 38m @ 1.28 g/t gold and 39m @ 1.1 g/t gold
15
*weighted average
- Gold mineralization is associated with
pyrite and confined to sub-vertical zones up to 50m wide within rhyolites and granites
- Ore bodies are structurally controlled and
airborne magnetics is a key exploration tool
- Preliminary metallurgical testwork indicates
recoveries of +90%
Cajueiro: Current and Future Targets
2.5km Area shown on next slide
16
Cajueiro Project: 2013/2014 Program
View 3D of Crente zone SW-NE
- Drill an additional 16,000m on
Crente, Matrinchã, Baldo and Marines blocks in the phase 2 Drill Program with the objective
- f expanding resource to +2 Moz
Au
- Depending on results drill an
additional 10,000m on Crente, Matrincha and Baldo blocks as part of a PEA to upgrade and expand and prove economic viability of the resource
- Initial exploration drilling of
4,000m in the Novo Sonho, Morro Verde, Target 2 and Target 7 areas
- Ground checking of other
geophysical anomalies
17
Sample 33194 / 92.1 g/t Au Sample 33872 / 6.19 g/t Au Sample 33222 / 41.17 g/t Au
Cajueiro: Wide, Parallel Mineralized Structures
Marines Target Tavares Norte target Morro Verde target Baldo target Matrincha target
Area shown on next slide
Crente target
18
Cajueiro: Crente zone
19
Central Cajueiro Area: Planned Diamond Drill Program to Significantly Expand Resource
20
800 metres to be Drill tested Baldo Target Marinês Target Matrincha Target Crente Target 500 metres to be Drill tested 500 metres to be Drill tested 500 metres to be Drill tested
Apiacas Project Cajueiro Project Carlinda Project Novo Canaa Project Colider Project Rio do Pombo Project Firmino Project
Colider, Novo Canaa and Apiacas: High Grade Gold Veins
21
Colider
- Claims totaling approximately
20,00ha - Property is accessible via 25 km of well-maintained dirt roads between the property and the city
- f Colider. Grid power
- Sub-vertically dipping shear zones
up to 5m in width and several hundred metres in length
- 13 holes drilled to date (2,700m) of
drilling to date. Results include 4.1m @ 13.6g/t gold and 2m @ 9.6 g/t gold
- 4 gold-in-soil anomalies over a
strike length of 5.5km
- Further drilling planned on Edu
zone
22
Colider North Ze Rodrigues Edu Lindolfo
Colider: Gold Anomalies and Target Zones
23
- Approx. 10,000ha of claims covering 3
main target areas including Madeiros, Jap and Galopeira.
- Excellent infrastructure – located 3km
from paved highway
- High grade veins in granitic host rock
(Au associated with pyrite / chalcopyrite and galena)
- Metallurgical testwork planned for
Bodão zone at Galopeira.
- Further drilling planned at Galopeira
target
Novo Canaa
24
2m @ 92.19 g/t Au
Novo Canaa
Bodão zone at Galopeira
25
- +100,000ha of claims containing 7
target areas
- No previous drilling
- Trenching by ECI on 1 of 7 target
areas returned values up to 9m @ 9.44 g/t gold
- High grade veins with evidence of
disseminated gold in wallrocks
- Further work to include trenching
and drilling
Apiacas: High Grade Gold Potential
26
Apiacas Project: Seven Targets High Grade Gold vein
27
Papagaio Target Casa Branca Target Maranhão Rico Target Baixão Novo Target Rio das Primas Target Melexete Target Grota do Oleo Target
28
Poconé Gold Belt
- Ownership:
35% ECI, 35% Magellan Minerals and 30% Brasil Central 50% ECI, 50% Magellan Minerals Option to purchase 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
Active Open Pits and Production
29
- +/- 50 active open pit mines
- +130k oz Au/year production
- Historic production 6M oz
- 100km strike
- + 90% of trend controlled by JV
Current and Historic Mining Operations
30
31
Garimpo Operations
- Easy Mining
Deeply weathered-no blasting Mined to 100m with backhoes
- Grade Control at Face
Backhoe operator controls grade
- Simple Processing
Hammer Mill Ball Mill Concentrator
Priority Targets
32
1. Salinas North
Past production, current tailings resource
- 2. Salinas North Extension
Gold bearing laterite in pits
- 3. Hollywood
Magnetic anomaly
- 4. Tanque Fundo
Gold bearing quartz stockwork
- 5. Tamandua
Gold bearing veins
- 6. Tanque Bello
Along Strike from Mineralization
- 7. Bom Foturo
Contiguous with mineralization
33
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 +130,000 oz 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
34
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
35
Corporate Information
Total Basic Shares Outstanding 75.7M Fully-Diluted Shares Outstanding 98.2M Cash (Dec 31, 2012) C$2.M Long-Term Debt (Dec 31, 2013) C$0M Ownership: Sentient Group 21.1 % Hochschild 6.0% Management, Board and Insiders 14% Other Institutions (~40) 55%
36
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
37