PRODUCTION, EXPLORATION, OPTIONALITY GROWTH THROUGH PARTNERSHIPS - - PowerPoint PPT Presentation
PRODUCTION, EXPLORATION, OPTIONALITY GROWTH THROUGH PARTNERSHIPS - - PowerPoint PPT Presentation
PRODUCTION, EXPLORATION, OPTIONALITY GROWTH THROUGH PARTNERSHIPS Presentation June 2017 FORWARD-LOOKING STATEMENTS Some statements in this presentation contain forward-looking information or forward-looking statements for the purposes of
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Some statements in this presentation contain forward-looking information or forward-looking statements for the purposes of applicable securities laws. These statements include, among others, statements with respect to the Company's plans for exploration and development of the Brazil properties and potential mineralization. These statements address future events and conditions and, as such, involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the statements. Such risk factors include, among others, failure to obtain regulatory approvals, failure to complete anticipated transactions, the timing and success of future exploration and development activities, exploration and development risks, title matters, inability to obtain any required third party consents, operating hazards, metal prices, political and economic factors, competitive factors, general economic conditions, relationships with strategic partners, governmental regulation and supervision, seasonality, technological change, industry practices and one-time events. In making the forward- looking statements, the Company has applied several material assumptions including, but not limited to, the assumptions that: (1) the proposed exploration and development of mineral projects will proceed as planned; (2) market fundamentals will result in sustained metals and minerals prices and (3) any additional financing needed will be available on reasonable terms. The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise except as otherwise required by applicable securities legislation. The Company cautions that it has not completed any feasibility studies on any of BMC's mineral properties, and no mineral reserve estimate has been established. Because the Company production decision is not based upon a feasibility study of mineral reserves, the economic and technical viability of the property has not been established. The potential quantity and grade of resource targets are conceptual in nature. There has been insufficient exploration to define a primary vein mineral resource and that it is uncertain if further exploration will result in the target being delineated as a mineral resource. QUALIFIED PERSON The technical information about the Company's mining activities has been prepared under the supervision of and verified by Dr. Adrian McArthur (B.Sc. Hons, PhD. FAusIMM), a consultant to Meridian Mining, who is a "qualified person" within the meaning of National Instrument 43-101. The technical information about the Company’s production and sales activities has been prepared under the supervision of and verified by Carlos Braga (B.Sc., MBA, member of the Chilean Mining Commission), the Chief Operating Officer of Meridian Mining, who is a “qualified person” within the meaning of National Instrument 43-101.
FORWARD-LOOKING STATEMENTS
PROVEN STRATEGY BUILDS FOUNDATION FOR SUCCESS
High-purity manganese operation Ore being sold to established customer base at a premium Promising gold prospects Trenching in progress Preparing for maiden drill campaign Bom Futuro Joint Venture provides entry into Brazil’s second largest tin mine
Discovering & Developing Investment Opportunities - Partnering for Growth
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PREMIUM MANGANESE PRODUCER
World’s highest grade hydrothermal manganese production Niche markets: Batteries and Agriculture Brazilian and international customer base Meridian production has grown from 8,000 to 35,000tpa in 3 years Production capacity building to 100ktpa
Continual growth in output and capacity
70 kt/a upgrade to Jaburi Plant, 2017 Rio Madeira plant to be upgraded to 30 kt/a in 2018 Jaburi production resumes Q3 2017
UPGRADING INFRASTRUCTURE TO INCREASE MANGANESE PRODUCTION
Continual growth in output and capacity
PREMIUM PRODUCT PREMIUM PRICE
Premium product supporting a premium price
4.12 3.03 3.02 2.48 2.43 3.78 3.50 8.20 5.48
0.00 1.00 2.00 3.00 4.00 5.00 6.00 7.00 8.00 9.00 Q12015 Q22015 Q32015 Q42015 Q12016 Q22015 Q32016 Q42016 Q12017 Benchmark 44%Mn CIF China US$/dmtu Meridian Net Sales unit price CIF Customer US$/dmtu
Extensive land package Installing new 70,000 tpa plant Well established local operation Diverse customer base
BUSINESS FUNDAMENTALS IN PLACE TO ATTRACT A STRATEGIC PARTNER
Proven business, strong customer base, expanding production capacity
GOLD – EXCITING GROWTH OPPORTUNITY
Maiden trenching and drilling campaign commencing
Newly discovered gold system at Espigão Do Oeste Amazon Craton address; home to major Moz gold camps An initial program of 18 trenches spanning 2,000m has commenced to evaluate the anomalies and will continue into Q3 Coice de Cobra gold targets prioritized for testing are distributed over 4 square km
GOLD – EXCITING GROWTH OPPORTUNITY
Extensive anomalies tested followed by first drill campaign
Six targets prioritized for first trenching campaign Sub-parallel structures; individual veins 3m wide, with broader alteration halos Visible gold occurrences; rock chips to 9.8g/t Au Broader geochemical anomalies extend for 7km along strike; two main centers identified in structurally favorable settings Drill rig on site to test targets at depth
BOM FUTURO TIN JV: PRIMARY VEINS, PALEOCHANNELS AND TAILINGS
Bom Futuro mine has produced over 192,000 tonnes of tin since 1987
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Bom Futuro ranks in the top 5 deposits by endowment
BOM FUTURO TIN DEPOSIT – COMPARISION BY ENDOWMENT
Bom Futuro is the least explored of the major tin deposits Limited processing technology deployed Opportunities to build resources through systematic palaeochannel and bedrock drilling
10,000 100,000 1,000,000
Total Tin (t)
Bom Futuro Hill Vein and pegmatite tin mineralization Palanqueta Hill Vein and greissen tin mineralization
BOM FUTURO AERIAL VIEW FROM THE SOUTHWEST
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THE TIN MARKET - A GROWING OPPORTUNITY
Tin Uses
Stable demand for tin with output dropping in key producing countries
43.5% 15.5% 14.7% 7.3% 7.0% 5.2% 4.8% 2.0%
Solders - Electronic Chemicals Tinplate Lead-Acid BaNeries Other Brass & Bronze Solders - Industrial Float Glass
346,000 tonnes consumed in 2015
20000 40000 60000 80000 100000 120000
China Indonesia Myanmar Peru Bolivia
Tonnes
2010 2015 Top 5 Tin Producing Countries
Source: ITRI
IMPROVING TIN PRICING *
Reduced stocks, lower production and high new mine costs driving recent pricing
$- $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000 0.00 2.00 4.00 6.00 8.00 10.00 12.00 14.00 1990 1995 2000 2005 2010 2015 2020 USD/tonne Weeks’ Supply Weeks' Supply (tonnes) Price (USD)
Forecast * Interna)onal Tin Research Ins)tute - November, 2016
Average last 10 years: $20,000
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TARGET STRIKE EXTENSION FOR REPEAT MINERALISATION
Potential for repeat mineralization along strike (Historic district production 270,000 tonnes of tin Rondonia)
Underlying magnetic anomaly over 20km long NE extent projects on Meridian tenement applications Deposit model indicates potential for repeat mineralization (c.f. Erzgebirge/Krásno Ore District, Czech Republic: Worked between 1516 and 1991)
2 km Meridian area Bom Futuro area mine
EXPLORATION TARGETING
A significant mineral field with untested potential
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Numerous palaeochannel targets:
- Extensions to known channel positions
- New targets from ground-penetrating radar surveys
- Geophysical exploration ongoing
- Self-managed rigs being equipped for deeper drill testing
Excellent near-mine primary exploration opportunity
- Magnetic-radiometric data reprocessed
- Undercover extensions to intrusive corridor highlighted
- Cross-cutting structures evident
- Radiometric anomalies characteristic of prospective
intrusions
- Indications of cassiterite in drainage systems
MERIDIAN TAILINGS PROJECT TARGETS 10+ YEARS OF MINE LIFE
An estimated 100m tonnes of tailings accumulated from 30+ years of artisanal mining Cooperative tailings operations have averaged 1,000tpa of tin production per annum since 2010 (from un-optimized plants; no metallurgical studies) First phase of Meridian testwork indicates a high percentage of tin is recoverable from the tailings with improved technology Target for early cash-flow
Accelerating profitability through staged development
SYNERGIES WITH PALAEOCHANNEL SYSTEMS
- Rich gravel horizons: 4-5 Sn kg/m3
- Broader low grade packages: 270 - 800 g/m3
- Three channel trends worked to date
- Expectations of further concealed positions in
sharply incised palaeotopography
Accelerating profitability through staged development
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m 20 10 5 0 10 20 40 60 80 100 m
Tin mineralization in base of modern drainage Perched placer deposits Concentrations at base of palaeochannel Cassiterite concentrate from palaeochannel