November 28, 2014 Qualified Person: Dallas Cox, B.Eng (Mining), - - PowerPoint PPT Presentation

november 28 2014
SMART_READER_LITE
LIVE PREVIEW

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.


slide-1
SLIDE 1

November 28, 2014

slide-2
SLIDE 2

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.

2

www.mindoro.com

slide-3
SLIDE 3
  • 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

3

slide-4
SLIDE 4

4

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

slide-5
SLIDE 5
  • 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

5

slide-6
SLIDE 6

Mindoro (black line) vs TSX Global Mining Index (blue) (1 yr.)

6

www.mindoro.com

slide-7
SLIDE 7

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)

7

www.mindoro.com

slide-8
SLIDE 8

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

8

slide-9
SLIDE 9
  • 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

9

Interests at production:

  • TVIRD: 60%
  • Minimax: 25%
  • Mindoro: 15%

(TVI Resource Development (Phils.), Inc)

slide-10
SLIDE 10

10

slide-11
SLIDE 11

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.

11

www.mindoro.com

slide-12
SLIDE 12

MRL NICKEL PHILIPPINES INC.

LATERITE LIMESTONE

12

www.mindoro.com

12

www.mindoro.com

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

slide-13
SLIDE 13

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

13

Well-Defined Laterite Profile

www.mindoro.com

slide-14
SLIDE 14

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.

14

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%
slide-15
SLIDE 15
  • 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

15

slide-16
SLIDE 16

16

  • 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

slide-17
SLIDE 17

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

17

slide-18
SLIDE 18
  • 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.

18

www.mindoro.com

slide-19
SLIDE 19

Mining high iron-low nickel limonite for DSO Low iron-high nickel saprolite for potential future processing

19

www.mindoro.com

slide-20
SLIDE 20

20

Active Mining Benches Payong-payong village, scheduled for relocation Causeway Stockyard 2 Causeway Stockyard 1

www.mindoro.com

slide-21
SLIDE 21

21

www.mindoro.com

slide-22
SLIDE 22

22

Sampling Stands Shippable stockpiles ready to be hauled to causeway stockyard

www.mindoro.com

slide-23
SLIDE 23

23

www.mindoro.com

slide-24
SLIDE 24

24

www.mindoro.com

slide-25
SLIDE 25

www.mindoro.com

25

slide-26
SLIDE 26

26

www.mindoro.com

Loading barges with ship moored offshore

slide-27
SLIDE 27

27

www.mindoro.com

Transporting laterite

  • re from the causeway
  • nto a barge.
slide-28
SLIDE 28

28

www.mindoro.com

Vessel to be loaded with approx. 55,000 tonnes of high iron – low nickel laterite ore from Agata and shipped to purchaser in China. .

slide-29
SLIDE 29

29

www.mindoro.com

Barges transport ore to offshore vessel.

slide-30
SLIDE 30

30

www.mindoro.com

Loading laterite ore

  • nto the vessel

from a barge.

slide-31
SLIDE 31

31

The first NHP ‘cake’ at 52% to 54% nickel grade produced during the Agata Pilot Plant test at Intertek Minerals Philippines

slide-32
SLIDE 32

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.

32

Well-Defined Laterite Profile

www.mindoro.com

slide-33
SLIDE 33

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

slide-34
SLIDE 34
  • 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

34

www.mindoro.com

slide-35
SLIDE 35

www.mindoro.com

35

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%

slide-36
SLIDE 36

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

www.mindoro.com

slide-37
SLIDE 37

www.mindoro.com

37

PILOT SCALE TEST APPARATUS 1-2 L Batch Tests 30 L/hr Continuous Tests Conditions Primary Secondary Residence Time 5hrs 2hrs Temperature 95C 150C 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

slide-38
SLIDE 38

Pilot Plant Metallurgist Vito Andrada demonstrates production

  • f NHP from a filter press

at the Agata Nickel Project pilot plant at Intertek Minerals Philippines.

38

www.mindoro.com

slide-39
SLIDE 39

39

Agata limestone quarry

slide-40
SLIDE 40

www.mindoro.com

40

  • Adjacent to current

DSO operation and infrastructure

  • 5 holes drilled by

MIO in 2011

  • Weighted avg. 60m
  • f 98.86% CaCO3

(calcium carbonate)

slide-41
SLIDE 41

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

41

Limestone excavation at Agata

slide-42
SLIDE 42
  • 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

42

slide-43
SLIDE 43

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

43

slide-44
SLIDE 44

44

www.mindoro.com

  • 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

slide-45
SLIDE 45

www.mindoro.com

45

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.
slide-46
SLIDE 46

46

www.mindoro.com

For further information, contact Penny Gould, CEO 780-413-8187 (ext. 1) penny@mindoro.com