Spain & Portugal AIM : WRES www.wresources.co.uk May 2016 - - PowerPoint PPT Presentation

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Spain & Portugal AIM : WRES www.wresources.co.uk May 2016 - - PowerPoint PPT Presentation

Tungsten in Spain & Portugal AIM : WRES www.wresources.co.uk May 2016 Disclaimer This presentation was prepared by and is the property of W Resources Plc (W Resources or the Company). No reproduction or distribution this


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Tungsten in Spain & Portugal

AIM : WRES www.wresources.co.uk May 2016

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May 2016

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Disclaimer

This presentation was prepared by and is the property of W Resources Plc (“W Resources” or “the Company”). No reproduction or distribution this material is permitted to companies or individuals outside of those for whom this is intended. No agents, brokers or investment banks are authorised to present this material to other parties for the purpose of soliciting potential clients or transactions of any kind without prior consent to do so. While the Company is not aware of any inaccuracies, no warranty or representation is made by the Company or their respective employees and representatives as to the completeness or accuracy of the information contained herein. The Company, JLSI and their respective employees and representatives expressly disclaim any liability for damages, direct or consequential, arising out of or related to this presentation or omissions there from, or any other information provided in writing, orally or otherwise regarding this potential transaction. Any party considering a transaction with the Company agrees to look solely to its own due diligence and any representations, warranties and/or covenants set forth in a fully-executed, definitive written agreement with the Company relative to the transaction. Certain matters discussed in this presentation are “forward-looking statements”. These forward-looking statements can often but not always be identified because the context of the statement will include words such as “the Company expects,” “anticipates” or words of similar import. Similarly, statements that describe the Company’s capabilities, future plans, objectives or goals are also forward-looking statements. Such forward looking statements are subject to significant risks and uncertainties, including the financial performance of the Company and the viability of its technology. These risks could cause actual results to differ materially from those currently anticipated. Although the Company believes the expectations reflected in any forward-looking statements are based on reasonable assumptions, the Company can give no assurance that its expectations will be attained. Potential investors, customers, suppliers and other readers are urged to consider this factor carefully in evaluating any forward-looking statements. Forward-looking statements made herein are only made as of the date of this presentation and the Company undertakes no obligation to update such forward looking statements to reflect subsequent events or circumstances. Technical information in this presentation has been prepared and approved for inclusion by Mr Fernando de la Fuente, who is a “qualified person” in respect of the AIM Rules for Companies with over 39 years experience in the Exploration and Mining Geology industry. Mr de la Fuente holds a B.Sc. in Geology and a MSc in Geology from the University of Granada in Spain. He is also a member of the Spanish College of Geologists (Number 49), the Spanish Society of Mineralogy, founder member of the Spanish Society of Geology, member of the Spanish Association of Applied Geology to Mineral Deposits, member of the Society for Mining, Metallurgy and Exploration, Inc., member of PDAC. Some of the technical information contained in the W Resources Plc May 2016 Presentation was prepared and first disclosed under the JORC Code

  • 2004. It has not been updated since to comply with the JORC Code 2012 on the basis that the information has not materially changed since it was last

reported. Foreign Exchange rate used in this presentation - US$1.00 = €0.90

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May 2016

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Overview

Projects Two large tungsten mines in development La Parrilla Mine, Spain: JORC Resource of 51mt @ 0.096% WO3. Open pit tungsten mine development. Fast tracking for 2016 production Régua, Portugal: Tungsten development. JORC resource of 5.46mt @ 0.28% WO3, at a cut-off of 0.10% WO3. Focussed on trial mine production in 2017 Tarouca, Portugal: Former tungsten and tin mine where advanced exploration is progressing CAA / Portalegre, Portugal: Advanced copper-gold exploration

Ticker: AIM: WRES Focus: Tungsten, copper & gold - production, development & exploration Shares in issue: 3.88 billion ordinary shares Market cap: GBP 17.8m (@ 0.46p – 4 May 2016) Experienced Directors: Michael Masterman Byron Pirola David Garland M Masterman 19.95% Hansource Investments Ltd 8.58 % B Pirola 6.44 % H Gibson 4.41 % C Scott 4.29 %

Significant Shareholders (as at 18 March 2016)

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May 2016

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Overview

La Parrilla Régua Tarouca Portalegre

SPAIN

PORTUGAL

Madrid Lisbon Porto Seville

Tarouca, Portugal Former tungsten / tin mine advanced exploration progressing La Parrilla Mine, Spain Open pit tungsten mine development - 1,300 tpa expanding to 5,000 tpa JORC Resource of 51mt @ 0.096% WO3 Régua, Portugal Open pit / UG tungsten mine development - 1,300 tpa JORC Resource of 5.46mt @ 0.28% WO3 CAA / Portalegre, Portugal Advanced copper-gold exploration Non JORC Resource of 328,621oz @ at 1.37 g/t Au

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What’s New

Tungsten and Tin prices up La Parrilla

  • Great metallurgy results up 72%
  • Mine Plan – Pit 12
  • Engineering Underway

Régua

  • Great metallurgy results
  • Mine planning – low cost adits

What’s Coming

Continued price rises La Parrilla

  • Engineering
  • Final Development Plant
  • Financing

Régua

  • Fast-track 100kt high-grade

development

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Tungsten & Tin Prices: UP 

W to be one of the top 5 global tungsten producers

La Parrilla one of only a few Tin projects

150 175 200 225 250

Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16

13.0 14.0 15.0 16.0 17.0 18.0

Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16

US$ per tonne US$000’s per tonne

+15.7% +25.6 European Tungsten APT price Tin price

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More Price Rises to Come?

Source: Northland Capital Partners estimates - 2015-2020 and Bloomberg 2013 – 2002-2014

Tungsten is a rare metal that is critical to some key applications with no satisfactory substitutes due to its unique properties Worlds hardest element with the highest boiling point China with 80% of global supply increasingly exerts market power Resilient price trend Strong demand growth Constrained supply

0.0 100.0 200.0 300.0 400.0 500.0 600.0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016E 2017E 2018E 2019E 2020E

APT price (US$/mtu)

Scenario 1 European APT free market Scenario 2 European APT free market Scenario 3 European APT free market Historic APT Chinese No 1 HK Index

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La Parrilla Highlights

By 2018:

5,000 TPA tungsten

150% increase

US$90m pa Revenue

large profitable mining company

US$16m

FTM capital cost

US$121 MTU

low operating costs

US$124m NPV

net present value

70% IRR

robust high return project

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May 2016

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La Parrilla - ‘‘The Grill’’

  • 1. Large deposit
  • pen north, south & west

Current 51mt JORC 100 mt target

  • 2. Scalable to market,

growth at low capital cost Faster to build Low cost to expand

  • 3. Bankable

US$16m financing Low cost opex AAA Customers Approved

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La Parrilla - Updated Resource Estimate

70% / 36mt Indicated (Increase from zero to 36mt) Open at higher grades to North, South, West and at Depth 3 high grade zones at surface identified for initial mining

Classification Tonnage (Mt) WO3 (ppm) Sn (ppm) Indicated 36 965 115 Inferred 15 947 92 Total 51 960 108

Golder Associates Pty Ltd – February 2016

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La Parrilla West (LPW) Area Fast Track Mine (FTM) Area

IP04 Significant intersection 32 metres @ 0.55% WO3

La Parrilla Mine - Large Resource Growth Potential

IRC1-33 19 metres @ 0.20% WO3 IRC1-40 40 metres @ 0.32% WO3

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La Parrilla - 100m + Tonne Target

U.V

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Optimisation Results: Sectional View

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Mining Pit 12

Initial 5 years of operation Low strip ratio in initial years (1.02:1) Feed Grade average of 0.110% WO3 Lateral N, S, W resource expansion will increase NPV

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La Parrilla - Scalable at Low Cost

FTM US$ 16m US$ 6m

+

US$ 30m

+

1,300 tpa*

(starting late 2016)

2,600 tpa* 5,000 tpa*

  • Crushing Circuit

upgrades

  • X-Ray Ore Sorting or

increased jig capacity

  • Concentrator capacity

upgrades

* Concentrate @ 66% WO3

  • Increase crusher hr
  • Increase Jig run hr
  • Concentrator

capacity upgrades

  • New crushers
  • Jig & Mill
  • Concentrator

Upgrades

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Project Capex Required $’000 / tonne Long term Production La Parrilla

(W Resources Plc)

10,400 5,000 Barruecopardo

(Ormonde)

23,076 2,600 Drakelands

(Wolf Minerals)

58,260 ~3,450 Nui Phao

(Masan Group)

73,300 6,000

La Parrilla - Low Financing Requirement

36 52

60 201 440

16 US$ Millions

FTM

Source: Ormonde, Wolf Minerals & MasanGroup Websites

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La Parrilla: Fast Track Mine Layout

Initial Fast Track Mining Area Mine Waste Dump Existing Tailings Dump Coarse Jig Rejects & Dry Stacked TSF Extra TSF Storage Capacity

Open pit = low mining costs

Existing Open Pit

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Core Infrastructure in Place

7km from main Seville / Madrid Highway Power grid connection established Access to quality water supply Short trucking distance from both Atlantic and Mediterranean ports Accommodation, office and employee facilities operational On-site laboratory

  • perational
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La Parrilla Existing Plant

Pre-concentrate Stockpile Concentration Plant Spirals Concentrate Plant Ball Mill Concentrate Plant Flotation Cells Concentration Plant Shaking Tables Concentrate Plant Dryer

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Additional Equipment Concentrator Upgrades

200 tph jig Upgrade capacity from 40 tph to 80tph 325 tph Crushing and Screening Circuit

La Parrilla: Integration of Mine & Tailings

100 tph roller mill

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Current Plant Layout

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FTM Plant Extension

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Low Operating Cost

Source: Northland Capital Partners estimates. W Resources La Parrilla and Régua projects displayed in red

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Product Summary Table

SPAIN - LA PARRILLA PORTUGAL

Tailings FTM / FM RÉGUA

WO3 Concentrate WO3 Concentrate Sn Concentrate WO3 Concentrate WO3

60-62 66-67 < 2 64-65

Sn

6.95 1.23 > 60 < 3

As

0.30 0.14 < 0.2 < 0.3

S

0.86 0.52 < 0.6 < 0.3

ALS Chemex Vancouver - January 2014 ALS Brisbane - April 2015

Sales to one of Europe’s largest consumers Good pricing Strong demand for long term off-take agreement, with discussions underway

Golder Associates Pty Ltd - October 2015

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Major Customer Offtake

Customers: Large European

Simple truck delivery Good terms 600 tpa

Large Middle East

Largest in region Good terms 600 tpa

Large United States

New plant 600 tpa

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FTM Regulatory Approvals

Current Mining Lease

  • Fully Granted

  • Provides access to tailings facilities for the FTM

FTM Mining Lease

  • Mining plans submitted to the Department of Mines (DM) in Q1 2015

  • The Environmental Impact Assessment submitted in Q1 2015

  • First initial review stage completed Q2 2105 by the department of mines

  • Environmental team has provided written feed back to queries

  • Environmental Impact Assessment approval anticipated in Q3 2015

  • Full mining approval granted for FTM stage development

FM Mining Lease*

  • Environmental team has begun to draft the application for the full mine

*All required approvals (environmental, water, heritage, etc.) fall under the single mining lease application

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Régua Highlights

Resource up 76% to 3.76mt at 0.304% WO3 Total resource tonnage up 22% to 5.46mt at 0.28% WO3 High grade open pit mining opportunity Strong metallurgical results and simple flow sheet Development study on-track for H1 2016

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Régua: Tungsten

Location: 133km east of Porto Licence Status: Granted trial mining licence (2018 + 1 year option) JORC Resources: 5.46mt @ 0.28% WO3 Metres Drilled: 6,310 metres from 38 holes Mine Life: 7 to 10 years (Golders) Mine Capex: US$18m* Mine Economics: US$35m NPV / 52% IRR* Milestones:

  • Metallurgical and

equipment testing Q2 2015

  • Completed an additional

1,200m drilling in Q3 2015

  • Evaluate early mine

development options

* Historical Estimate Only

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Régua Summary Works

Open at depth and on all sides, with significant potential resource growth to the north east Key results include:

  • Hole RGD028 - 4.35 metres at 0.83% WO3

from 16.50 metres

  • Hole RGD027 - 3.08 metres at 0.61% WO3

from 33.60 metres Conceptual mine study completed JORC increased from 4.46Mt at 0.308% WO3 to 5.46Mt at 0.280% WO3 Bulk samples at surface returned assays of 0.33% to 1.0% WO3 from initial 4 tonne sample Drilling results highlight 6 zones (compared to expected 3) of tungsten bearing skarn including 10 metres at 0.6% WO3

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Régua Geology

Scheelite is the dominant tungsten mineralisation present Main gangue minerals present at Régua: vesuvianite, zoisite, axinite, carbonates, sericite , quartz, fluorite Minor heavy minerals: rutile, pyrite, and arsenopyrite in minor concentrations present The mineral resource consists of mineralised skarn horizons hosted within calcsilicate- altered schists and greywackes.

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Régua Resource Section

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CAA / Portalegre: Copper - Gold Project

Located 200km east of Lisbon covering a total of 289.75km2 São Martinho Gold Project - Includes high grade intersections - Hole SMRC025 15 grams / tonne including 1 metre at 44.9 grams per tonne. Portalegre Project - Positive initial assay results completed with a total of 1,600m. Rock surface sampling identified a number of high grade copper – gold samples CAA Project - 1,100 metre scout drilling programme completed in April 2015 showed encouraging results - Hole CAAD-05 16m of gold at 1.37 g/t between 124m and 140m

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Portalegre – Large Gold Copper Licence

High grade intersections: Resource (Non JORC) 9.62g/t @ 18.55m 7.52g/t @ 31m

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Portalegre – Large Gold Copper Licence

Best intersection

HOLE POR-96-2 14m @ 7.52 g/t Au from 31m, including 2m @ 49 g/t Au from 31m

Best intersection

HOLE POR 96-5 8m @ 6.5 g/t Au from 27m, including 2m @ 24.75 g/t Au from 29m

Does West link to East?

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Finance

Project Value Status La Parrilla Mine Definition Study US$400k Funded (NPV US$124m) Fast-track mine US$16m EU Govt or JV Régua (NPV US$35m) Metallurgical testing / Geological Extension US$300k Funded Trial Mine TBE 2016 W Exploration CAA / Portalegre US$200k Funded São Martinho US$300-500k Farm-out

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Why W Resources

Two tungsten mines – exceptional exploration acreage La Parrilla targeting first mine production 2016 Régua advancing well and targeting first mine production in 2017 Large scale exploration potential Strong tungsten price fundamentals Financing discussions advancing at asset level (less dilution)

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Milestones to Date

La Parrilla Total JORC resources estimate increased 16% to 51 mt at 0.096% WO3 and 0.108% Sn Built and commenced production at La Parrilla tailings, achieving product quality of 60% WO3 Shipped over 111 tonnes of tungsten concentrate to date Strong customer relationships and credibility of product Established infrastructure base for FTM development, grid power connection, road, laboratory and water access Environmental and development approval received in H2 2015 On track for first mine production in late 2016 Régua Drilled extensions – remains open in all directions and at depth Conceptual mine study completed New JORC Resource increased from 4.46Mt at 0.308% WO3 to 5.46Mt at 0.280 WO3 Trial Mine targeting first mine production in 2017