November 28, 2014 Qualified Person: Dallas Cox, B.Eng (Mining), - - PowerPoint PPT Presentation
November 28, 2014 Qualified Person: Dallas Cox, B.Eng (Mining), - - PowerPoint PPT Presentation
November 28, 2014 Qualified Person: Dallas Cox, B.Eng (Mining), MAusIMM(CP), Principal Consultant of Crystal Sun Consulting Limited has worked as a mining engineer for 28 years, including 10 years as an independent mineral industry consultant.
Qualified Person: Dallas Cox, B.Eng (Mining), MAusIMM(CP), Principal Consultant of Crystal Sun Consulting Limited has worked as a mining engineer for 28 years, including 10 years as an independent mineral industry
- consultant. Mr. Cox graduated with a degree in Mining Engineering at the University of New South
Wales, Kensington in 1986. He is a member of The Australasian Institute of Mining and Metallurgy, a Chartered Professional (CP), and a qualified person under the guidelines of National Instrument 43-
- 101. Mr Cox has approved the scientific and technical information in this news release.
Forward Looking Statements: This presentation contains forward-looking statements including management's assessments of future plans and operations, and expectations of future production, including the statements with respect to when Mindoro expects production and the direct shipping of high-iron laterite resources at the Agata project to commence. These statements are based on current expectations that involve a number of risks and uncertainties, which could cause actual results to differ materially from those anticipated. These risks include, but are not limited to, the risks associated with the mining and exploration industry (e.g.
- perational risks in development, exploration and production; delays or changes in plans with respect to
exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty with respect to results of exploration, the uncertainty of estimates and projections relating to production and the uncertainty of the availability of capital). The assumptions used in the preparation of such statements, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. The Company does not undertake to update forward-looking statements except where required to do so by law.
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www.mindoro.com
- Agata limonite DSO operation underway
- Plans to ship higher grade saprolite
- DFS on nickel processing due by year end
- Drilling to increase ni laterite resource
- Drilling limestone to advance DSO concept
- Experienced partners
with successful track record
www.mindoro.com
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60% Agata Joint Venture Co.’s 40%1 MRL Nickel (Philippines) 100% Prime Resources (Philippines) Mindoro (TSXV: MIO) 25.4% TVIRD (Philippines) 30.7%2 68.4% 14.4% TVI Pacific (TSX:TVI) 5%
2TVI Pacific’s 30.7% interest held through
subsidiary TVI International Marketing Limited
1 Option signed in August 2014 to acquire
25% interest from Minimax Mineral Exploration.
www.mindoro.com
- Mindoro listed on TSX Venture
- Subject to strict financial and disclosure
requirements.
- TVI Pacific listed on TSX
- Subject to further rigorous financial controls
and reporting standards.
- JV partner TVIRD to list on PSE
- Further rigorous financial and disclosure
requirements.
www.mindoro.com
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Mindoro (black line) vs TSX Global Mining Index (blue) (1 yr.)
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www.mindoro.com
Sept 27/13 Nov 27/14 Shares outstanding 297M 297M Fully diluted 370M 367M Share price $0.025 $0.040 Market capitalisation $7.4M $11.9M Treasury (June 2013 & 2014) $239,000 $507,000
($CDN)
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www.mindoro.com
Bridge Loan
- Negotiating with TVIRD for CDN$400,000
- 8% interest
- Secured with shares of MRL Nickel
- Repayable earlier of Jan. 31, 2015, or receipt of proceeds from
proposed convertible debenture
Convertible Debenture
- Negotiating with TVIRD for CDN$2M convertible debenture
- Similar terms as bridge loan
- 2 year term
- Conversion feature in accordance with rules of TSXV
Both financing proposals are subject to final board and regulatory approvals
www.mindoro.com
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- Agata Mining Ventures Inc. (AMVI)
- All Agata DSO operations
- Mindoro: 40% & TVIRD: 60% (operator)
- Agata Processing Inc. (API):
- All Agata non-DSO operations
- Mindoro: 40% (15% + 25% option )
- TVIRD: 60% (operator): produce a definitive
feasibility study to complete 60% earn-in
- Pan de Azucar Mining
- Pan de Azucar Processing
www.mindoro.com
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Interests at production:
- TVIRD: 60%
- Minimax: 25%
- Mindoro: 15%
(TVI Resource Development (Phils.), Inc)
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MINDANAO
Manila
LUZON PALAWAN
Taganito Nickel Project 30,000 ni tpa (Sumitomo- Nickel Asia) Coral Bay Nickel 21,000 Ni tpa (Sumitomo/Nickel Asia)
AGATA NORTH RESOURCE Combined Limonite & Saprolite
- Measured & Indicated: 33.94M
DMT @ 1.10% Ni
- Inferred: 2.09M DMT @ 1.04% Ni
AGATA SOUTH RESOURCE Combined Limonite & Saprolite
- Indicated: 5.04M DMT @ 0.86% Ni
- Inferred: 0.45M DMT @ 0.83% Ni
Located in the Surigao region, which has hosted DSO operations since the 1980s; between 13 & 15 DSO
- perations since 2011 and exported 27
million wmt in 2013.
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www.mindoro.com
MRL NICKEL PHILIPPINES INC.
LATERITE LIMESTONE
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High iron nickel laterite and limestone deposits 2 km from the coast. On west coast, protected from seasonal monsoons which limits shipping season on east coast. Little vegetation; few people, no one living on laterite deposit.
LATERITE RESOURCE
Ferruginous Limonite Zone (high iron – low nickel grades) Limonite Zone (high iron – medium nickel grades) Saprolite Zone (low iron-medium nickel grades)
Phase 1 Direct Shipping Ore (DSO)
Included in Agata North Resource proven and probable:
- 9.7M wmt @ 0.93% Ni & 48% Fe
- DSO operation now underway
Phase 2 Processing
- Supplement limonite DSO
- Majority as feed for planned
nickel processing plant
- DFS due by end of year
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Well-Defined Laterite Profile
www.mindoro.com
NPV (10%) after tax (USD) $38M IRR% 187 Mine Life 10 yrs
(majority mined <4 years)
Opex2 $10-$12/wmt Full Capex $11.9M Capex Payback 1 yr.
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1 DSO prices are volatile: reached high of >$40/wmt in July 2014; currently $13-14/wmt
Base Case at $22/wmt(1) (for 100% of Project )
Estimated Total Free Cash Flow for Project
- Yr. 1
- Yr. 2
- Yr. 3
- Yrs. 4 - 17
(per annum) LOM Million US$
$(6.9) $10.6 $20.6 $15.0 $1.7 – 1.1 $50.7 www.mindoro.com
- Mindoro: 40%
- TVIRD: 60%
- DSO offtake agreements: 1.5M wmt high fe/low ni
- US$3M advance payments received by Agata Mining
- Two DSO shipments to date (3rd in progress)
- Plans to ship every 3-4 weeks
- China Bank Letter of Advice to Agata Mining:
- US$8M term loan facility (subject to AMVI board approval)
- Secured by suretyship of Prime Asset Venture
- Proposed use of proceeds:
- Ramp up DSO operations
- Definition drilling of nickel laterite and limestone
- Resource estimate updates
www.mindoro.com
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- Nov. 27/14 market pricing (source: FerroAlloyNet):
- 0.6%-0.8% ni & 49% fe = $13-$14 / wmt (Agata grades currently being shipped)
- 1.5% ni & 25% - 40% fe = $37- $38 /wmt (similar to Agata saprolite grades)
- Plans to ship higher-grade saprolite (1.5% or higher) (subject to
securing off-take agreement(s) for saprolite DSO):
- Higher revenue associated with higher nickel content
- Agata Mining to ensure sufficient saprolite remains for planned
processing operatioin
- Definition drilling underway to upgrade resource.
DSO Shipments
- Oct. 23
- Nov. 18
Tonnes shipped 54,181 55,499 Grade 0.7% ni & 49% fe 0.8% ni & 49% fe Gross Revenue (to jv co.) US$890,000 US$916,000
www.mindoro.com
Objective: upgrade current resource estimate
- 1. Definition drilling:
- 494 diamond drill holes planned
- 15-20m depth = total ~7,904 m
- Results from 93 holes: up to 2.3% ni & 52.5% fe
- 2. Data verification drilling:
- 143 twin holes planned
- 52 holes to date: indicating higher grade &
thicker saprolite horizons
Expect drilling completed Q1-2015
www.mindoro.com
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- Aug 2014: bill introduced in Philippines to ban
unprocessed exports of ore (direct shipping ore, “DSO”).
- Sept. 9: Proponents of bill suggest 7 yrs. before
any ban would take effect.
- Mindoro’s Agata DSO project would be
substantially mined out well in advance.
- Production of intermediate nickel product
targeted 2016.
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www.mindoro.com
Mining high iron-low nickel limonite for DSO Low iron-high nickel saprolite for potential future processing
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Active Mining Benches Payong-payong village, scheduled for relocation Causeway Stockyard 2 Causeway Stockyard 1
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Sampling Stands Shippable stockpiles ready to be hauled to causeway stockyard
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Loading barges with ship moored offshore
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Transporting laterite
- re from the causeway
- nto a barge.
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Vessel to be loaded with approx. 55,000 tonnes of high iron – low nickel laterite ore from Agata and shipped to purchaser in China. .
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Barges transport ore to offshore vessel.
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Loading laterite ore
- nto the vessel
from a barge.
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The first NHP ‘cake’ at 52% to 54% nickel grade produced during the Agata Pilot Plant test at Intertek Minerals Philippines
Ferruginous (high iron – low nickel grades) Limonite Zone (high iron – medium nickel grades) Saprolite Zone (low iron-medium nickel grades)
Phase 1 DSO removes the
- verburden, giving access
to saprolite feed for the Phase 2 processing plant Phase 2 Processing Plant
- Mixed hydroxide product
with 40% Ni produced from TVIRD Pilot Plant.
- Feasibility Study
expected by year end.
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Well-Defined Laterite Profile
www.mindoro.com
Port/Causeway
Limestone
Ni Laterite Ore body
1 Km
Proposed Nickel Processing Plant
Key Elements:
1) Ore body location 2) LGU supportive 3) Near power grid 4) Abundant water 5) Limestone for lime 33
MRL NICKEL PHILIPPINES INC.
www.mindoro.com
- Definitive Feasibility Study: expected prior to year end.
- Tank leach technology is proven and operating in China
- 1st nickel hydroxide production from pilot plant announced
- n March 17, 2014.
- Targeting capex of US$150M - $200M and opex of
<US$4/lb.
- Annual metal production target: 7000 tpa Ni metal
equivalent as mixed hydroxide product
- First production targeted for 2016
- Mine life: +20 yrs
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www.mindoro.com
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Saprolite 92% Limonite 8% Scrubbing
- 1mm = 47%
+1mm = 53%
83% Saprolite 17% Limonite 99.5 % Saprolite 0.5 % Limonite
Milling
Secondary Leach Feed – Low Pressure Autoclave (99.5% Saprolite, 0.5% Limonite) Primary Leach Feed – Agitated Atmospheric Tanks (87.9% Saprolite, 12.1% Limonite)
65% of total feed
(lhigh Fe, low Mg)
Screening
Primary Leach Residue SULPHURIC ACID
35% of
total feed (low Fe, high Mg)
Feed Grades Ni Fe Mg Primary Leach >1.3% 16-20% <13% Secondary Leach >1.2% <12% 18- 20%
COUNTER CURRENT DECANTATION
Sec Leach Residue
PLS Overflow Underflow RESIDUE NEUTRALISATION & FILTRATION
Leached Ore Disposal
(approximately 490,000 tpa solids)
Barren Solution NICKEL PRECIPITATION METALS REMOVAL
Nickel Product
6,700 to 7,500 tpa Nickel (contained in Mixed Hydroxide Product of 40% Ni)
Brine Disposal
(approximately 1.97M m3 per year) 36
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PILOT SCALE TEST APPARATUS 1-2 L Batch Tests 30 L/hr Continuous Tests Conditions Primary Secondary Residence Time 5hrs 2hrs Temperature 95C 150C Pressure atm 5bar After Leaching %Ni Extraction 94 % Acid Consumption 650 kg acid/t
- re
49 t acid /t Ni
ATMOSPHERIC TANK LEACH LOW PRESSURE AUTOCLAVE
ATMOSPHERIC TANK LEACH
BENCH SCALE TEST APPARATUS
LOW PRESSURE AUTOCLAVE
Pilot Plant Metallurgist Vito Andrada demonstrates production
- f NHP from a filter press
at the Agata Nickel Project pilot plant at Intertek Minerals Philippines.
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Agata limestone quarry
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- Adjacent to current
DSO operation and infrastructure
- 5 holes drilled by
MIO in 2011
- Weighted avg. 60m
- f 98.86% CaCO3
(calcium carbonate)
MIO 2011 Drilling SECTION 776 200E
5 4 3
Current market $100-$450/tonne Payong Payong Exploration Target
- 20-30 million tonnes
- 35 – 50 meters thick
- 400 x 800 meters
- Grade ranges:
- CaCO3 97.26% - 99.96%
- MgO
0.41% - 0.75%
- Al2O3
0.07% - 0.30%
- Fe2O3
0.12% - 0.37%
The Exploration Target was announced by TVIRD affiliate, TVI Pacific Inc., on November 27, 2014, based on information derived from Mindoro’s 2011 drilling. The potential quantity and grade of the Exploration Target described is conceptual in nature, there has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in the target being delineated as a mineral resource. Until a feasibility study has been completed there is no certainty that the Company's projections will be economically viable.
www.mindoro.com
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Limestone excavation at Agata
- TVIRD in discussion
with potential buyers
- Limestone uses:
- Paper whitener
- Toothpaste filler
- Glass making
- Cement
- Variety of
industrial uses
- In planned Agata
Nickel processing plant
www.mindoro.com
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Evaluating limestone DSO & processing potential:
- Review & verification of MIO previous work
- Detailed surface mapping and sampling
- Phase I drilling underway:
- 10 holes at 200 m spacing
- Phase II drilling:
- 100 m intervals
- subject to results of Phase I
Objective: NI 43-101 resource est. and, subject to results of drilling and market studies, commence DSO shipping by mid-2015
www.mindoro.com
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- Pan de Azucar:
- Pyrite and copper-gold potential
- Under JV with TVIRD
- Tapian San Francisco:
- Copper-gold potential
- Key low-cost tenements to
be retained
MINDANAO
Manila
LUZON PALAWAN
www.mindoro.com
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2015 DEC JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC 2016
Limonite DSO shipping Saprolite DSO shipping Nickel laterite drilling Updated Nickel resource estimate Nickel processing DFS released Processing financing & engineering Processing plant construct. & commission. Limestone exploration & drilling Limestone resource estimate Limestone DSO shipping
The company’s production objectives are intended to provide an indication of management’s current expectations and are still conceptual in nature. It is uncertain that it will be established that resources will be converted into economically viable mining
- reserves. Until a feasibility study has been completed, there is no certainty that these objectives will be met.
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www.mindoro.com
For further information, contact Penny Gould, CEO 780-413-8187 (ext. 1) penny@mindoro.com