September 15, 2014 Qualified Person: Jake Foronda, Vice-President - - PowerPoint PPT Presentation

september 15 2014
SMART_READER_LITE
LIVE PREVIEW

September 15, 2014 Qualified Person: Jake Foronda, Vice-President - - PowerPoint PPT Presentation

September 15, 2014 Qualified Person: Jake Foronda, Vice-President of Operations of TVI Resource Development (Phils.), Inc. (TVIRD), is acting as the Qualified Person in compliance with NI 43-101 reporting requirements with respect to the Agata


slide-1
SLIDE 1

September 15, 2014

slide-2
SLIDE 2

Qualified Person: Jake Foronda, Vice-President of Operations of TVI Resource Development (Phils.), Inc. (TVIRD), is acting as the Qualified Person in compliance with NI 43-101 reporting requirements with respect to the Agata project technical information in this presentation. 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

Mindoro has teamed with an experienced partner to develop the Agata project into a two-phase nickel

  • peration in the Philippines, building on early

revenue from direct shipping ore (DSO) and moving into processing by 2017.

Agata project interests, assuming all options exercised:

  • Mindoro: 40% (15% + 25% option)
  • TVIRD: 60% (fund DSO into production and complete a

processing feasibility study; operator of project)

3

www.mindoro.com

slide-4
SLIDE 4
  • 1. Direct Shipping Ore (DSO) Operation
  • Robust economics: IRR 187% & 1 yr. payback
  • Offtake agreement signed to ship 1M wmt over 1st yr.
  • $2M advance on sales received by Agata JV company
  • 1st shipment expected within 30 days
  • 2. Processing Operations
  • Proven technology for an intermediate nickel product
  • Definitive Feasibility Study near completion
  • First intermediate nickel product targeted 2017
  • 3. Limestone DSO and processing opportunities
  • 4. Gold and Copper-Gold discovery potential

www.mindoro.com

4

slide-5
SLIDE 5

Exchange & Symbol TSX-V:MIO FFT: OLM Shares outstanding 297M Fully diluted 366M Share price $0.04 Market capitalisation $11.9M Current treasury

(Aug. 31, 2014)

$328,000

5

www.mindoro.com

Number (Millions) Price Expiration Warrants 5.98 $0.31 Jul 9 2015 13.17 $0.31 Jul 22 2015 18.78 $0.10 Sep 28 2017 24.00 $0.10 Oct 11 2017 Options 0.20 $0.125 Jan 12 2015 1.45 $0.19 Mar 15 2015 0.25 $0.10 Jul 4 2015

Major Shareholders Prime Holdings 25.4% TVI Pacific 14.4%

Shares Reserved for Issue (Millions) Warrants 61.8 Options 1.9 Property Acquisitions 5.4 Loan Bonus Shares 0.1 Total 69.1

slide-6
SLIDE 6

6

Prime Resources (Philippines) TVIRD (Philippines) Mindoro (TSXV: MIO) TVI Pacific (TSX:TVI) MRL Nickel (Philippines) Agata Joint Venture 60% 40%1 100% 14.4% 30.7%2 25.4% 68.4% 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-7
SLIDE 7

Non-Executive Directors:

  • Rob Garden, QC, Director & Chairman: 38 yrs. in natural resources law
  • Larry Nagy, Director : Geologist with 36 yrs. in mineral resource industry
  • Cliff James, Director : CEO & President of JV partner, TVI Pacific

Executive Directors & Management

  • Penny Gould, Director & CEO: 30 yrs. in business admin, financing and

marketing; variety of positions with Mindoro from 1996 – 2011, including

  • Exec. VP, CFO and President; rejoined Mindoro in 2013.
  • Clayton Northey, CFO & Corp. Sec.: 8 yrs. in finance and admin; 6 yrs. with

Mindoro as accountant and financial controller before assuming CFO position in 2012.

  • Edsel Abrasaldo, COO: VP of Philippine sub, MRL Nickel; major role in
  • perations and sustainability programs, 37 yrs. in Philippine mining

industry and 17 yrs. with Mindoro. www.mindoro.com

7

slide-8
SLIDE 8
  • Pre 2000: Rocks containing small percentage of laterite ore = waste
  • Post 2000: China demand  prices sky rocket  $23.50/lb in mid-2007.
  • China invents 'pig nickel‘ using low grade ore imported from Indonesia and

Philippines, easing dependence on nickel mines.

  • Pig nickel + new mines  prices drop & stockpiles grow ($6.80/lb in 2013).
  • Jan. 2014: Indonesia bans DSO  China imports more Philippine ore.
  • Prices rise on prospects of shortage but stockpiles increase, tempering gains.
  • Sept. 2014: Philippines proposes DSO export ban.
  • Potential to strain world supply as China becomes dependent on mines again.
  • Speculators drive price higher. Stay tuned.

8

A Sept. 5, 2014, editorial from Stainless Steel News and Nickel Prices:

slide-9
SLIDE 9
  • 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 will be substantially

mined out well in advance.

  • Production of intermediate nickel product

targeted 2017.

9

www.mindoro.com

slide-10
SLIDE 10

MINDANAO

Manila

LUZON PALAWAN

Taganito Nickel Project (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.

10

www.mindoro.com

slide-11
SLIDE 11

MRL NICKEL PHILIPPINES INC.

LATERITE LIMESTONE

11

www.mindoro.com

11

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-12
SLIDE 12

Ferruginous (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 limonite of Agata North Resource, proven and probable: 9.7M wmt @ 0.93% Ni and 48% Fe

Phase 2 Nickel Processing Plant

12

Well-Defined Laterite Profile

www.mindoro.com

slide-13
SLIDE 13

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.

13

1 Prices reached high of >$40/wmt in July 2014; 2 Varies year to year

Above information from Sept. 2013 Feasibility Study, available at www.sedar.com and www.mindoro.com

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%

(upon exercise of 25% option)

  • TVIRD: 60%

(upon earn-in)

slide-14
SLIDE 14

Mindoro will hold 40% of Agata Mining and Processing upon exercise of option to acquire 25% from Minimax Mineral Corp . Key Option Terms:

  • US$60,000 upon signing (paid)
  • US$60,000 (60 days from signing: Oct. 13/14)
  • US$250,000 (6 months after 1st DSO shipment)
  • US$4,000,000 (five annual installments of US$800,000 commencing

1 yr. after 1st DSO shipment)

  • Forgive CDN$5.5 million debt owed to Mindoro
  • 0.5% Net Smelter Returns(1) royalty levied on 100% of processing

production (does not apply to revenue from limonite DSO)

(1) NSR defined as the proceeds from the sale of mineral products after deducting insurance and

transportation costs from the processing plant to the purchaser of the processed product

14

www.mindoro.com

slide-15
SLIDE 15
  • Offtake agreement to sell 1M wmt , Sept 2014 – Sept 2015
  • $2M advance received by JV to fund initial operating costs
  • 1st shipment anticipated within 30 days, subject to

receipt of remaining permits

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

15

www.mindoro.com

slide-16
SLIDE 16

16

Active Mining Benches Payong-payong village, scheduled for relocation Causeway Stockyard 2 Causeway Stockyard 1 www.mindoro.com

slide-17
SLIDE 17

17

www.mindoro.com

slide-18
SLIDE 18

18

www.mindoro.com

slide-19
SLIDE 19

19

Sampling Stands Shippable stockpiles ready to be hauled to causeway stockyard www.mindoro.com

slide-20
SLIDE 20

20

www.mindoro.com

slide-21
SLIDE 21

Sample preparation building under construction Samples being returned to stockpile after assaying www.mindoro.com

21

slide-22
SLIDE 22

22

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

www.mindoro.com

26

slide-27
SLIDE 27

27

www.mindoro.com

slide-28
SLIDE 28

28

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

slide-29
SLIDE 29

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 near

completion

29

Well-Defined Laterite Profile

www.mindoro.com

slide-30
SLIDE 30

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 30

MRL NICKEL PHILIPPINES INC.

www.mindoro.com

slide-31
SLIDE 31
  • TVIRD may earn 60% in processing project by producing

Definitive Feasibility Study; expected prior to year end.

  • Tank leach technology is proven and operating in China
  • 1st nickel production from TVIRD pilot plant announced on

March 17, 2014.

  • Targeting capex of US$100M and opex of <US$4/lb.
  • Annual metal production target: 7000 tpa Ni metal

equivalent as mixed hydroxide product

  • First mixed hydroxide product targeted 2017
  • Mine life: +20 yrs

31

www.mindoro.com

slide-32
SLIDE 32

www.mindoro.com

32

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-33
SLIDE 33

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) 33

slide-34
SLIDE 34

www.mindoro.com

34

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 ore 49 t acid /t Ni

ATMOSPHERIC TANK LEACH LOW PRESSURE AUTOCLAVE

ATMOSPHERIC TANK LEACH

BENCH SCALE TEST APPARATUS

LOW PRESSURE AUTOCLAVE

slide-35
SLIDE 35

Pilot Plant Metallurgist Vito Andrada demonstrates production

  • f NHP from a filter press

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

35

www.mindoro.com

slide-36
SLIDE 36

SR Metal’s DSO Operation

Lawigan

Mindanao Sea

? 2 km

LIMESTONE

  • Near-term potential for DSO
  • Medium-term potential for lime

processing

  • On coast and existing laterite DSO

infrastructure GOLD AND COPPER-GOLD PROSPECTS

  • Assmicor Gold and Copper-Gold
  • American Tunnels Gold and

Copper-Gold

N

Mindoro MPSA boundary Mindoro tenement application SR Metal MPSA Corplex APSA Limestone Nickel laterite mineralization Porphyry copper-gold target Road Mine working

www.mindoro.com

36

slide-37
SLIDE 37
  • 1. Direct Shipping Ore Operation
  • Simple, quick and generating near-term cash flow
  • 2. Processing Operations
  • Proven technology operating in China
  • Definitive Feasibility Study near completion
  • Construction targeted 2016 & production in 2017
  • 3. Limestone DSO and processing opportunities
  • 4. Gold and copper-gold discovery potential

www.mindoro.com

37

slide-38
SLIDE 38

www.mindoro.com

38

Mindoro team being awarded Presidential Award for top junior exploration company in the Philippines for its social and environmental programs

slide-39
SLIDE 39

39