UNLEASHING VALUE FROM CONFLICT-FREE TIN ITRI CONFERENCE 2016 BORIS - - PowerPoint PPT Presentation

unleashing value from conflict free tin
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UNLEASHING VALUE FROM CONFLICT-FREE TIN ITRI CONFERENCE 2016 BORIS - - PowerPoint PPT Presentation

UNLEASHING VALUE FROM CONFLICT-FREE TIN ITRI CONFERENCE 2016 BORIS KAMSTRA CEO ALPHAMIN RESOURCE CORP. The statements made in this presentation which are not historical facts contain certain forward-looking statements concerning potential


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SLIDE 1

UNLEASHING VALUE FROM CONFLICT-FREE TIN

BORIS KAMSTRA CEO ALPHAMIN RESOURCE CORP.

ITRI CONFERENCE 2016

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SLIDE 2

DISCLAIMER

The statements made in this presentation which are not historical facts contain certain forward-looking statements concerning potential developments affecting the business, prospects, financial condition and other aspects of the Company to which this presentation pertains. The actual results of the specific items described in this presentation, and the Company’s operations generally, may differ materially from what is projected in such forward-looking statements. Although such statements are based upon the best judgments of management of the Company as of the date of this presentation, significant deviations in magnitude, timing and other factors may result from business risks and uncertainties including, without limitation, the Company’s dependence on third parties, general market and economic conditions, technical factors, the availability of outside capital, receipt of revenues and other factors, many of which are beyond the control of the Company. The Company does not warrant the accuracy, currency or completeness of the information with respect to forward-looking statements contained in this presentation, nor the future performance of the Company. Such risks and uncertainties are described in periodic filings made by Alphamin Resources Corp. with Canadian securities regulators and authorities. The Company disclaims any obligation to update information contained in any forward-looking statement. This presentation contains only a brief overview of Alphamin Resources Corp. and its activities and operations. The contents of this presentation (including matters relating to the geology of Alphamin’s projects), may rely on various assumptions and subjective interpretations which is not possible to detail in this presentation and which may not have been subject to any independent verification. To the maximum extent permitted by law, the Company and its officers, employees and advisers are not liable for any loss or damage (including, without limitation, any direct, indirect or consequential loss or damage) suffered by any person directly or indirectly as a result of relying on this presentation or otherwise in connection with it. This presentation is not intended to be an offer for subscription, invitation, solicitation or recommendation with respect to securities in the Company in any jurisdiction including the United States. No securities in the Company have been nor will be registered under the U.S. Securities Act of 1933 as amended. This presentation does not constitute an advertisement for an offer or proposed offer of securities under U.S. law or any other law and is for general information purposes only. The mineral resource estimates referenced in this presentation are estimates only and no assurance can be given that any proven or probable reserves will be discovered or that any particular level of recovery of minerals will in fact be realized or that an identified reserve or resource will ever qualify as a commercially mineable (or viable) deposit which can be legally and economically exploited. Mineral resources that are not mineral reserves do not have demonstrated economic viability. In addition, the grade of mineralisation which may ultimately be mined may differ from that indicated by drilling results and such differences could be material. Production can be affected by such factors as permitting regulations and requirements, weather, environmental factors, unforeseen technical difficulties, unusual or unexpected geological formations and work interruptions. Discussions of our mineral resource estimates should not be interpreted as assurances of commercial viability

  • r potential or of the profitability of any future operations.

Qualified Persons The following “Qualified Persons” as defined in National Instrument 43-101 (NI 43-101) Standards of Disclosure of Mineral Project have reviewed and approved the relevant scientific and technical information contained in this Corporate Presentation and and consented to it being filed with any stock exchange and other regulatory authority

  • Mr. J.C. Witley (BSc Hons, MSc (Eng)) is a Principal Mineral Resource Consultant for The MSA Group, an independent geological consulting company to Alphamin and has reviewed and approved the scientific and technical information contained

in Slides 7 – 10 of this Presentation.

  • Mr. Andrew Pooley (B.Eng. (Hons) (Eng.)) is the Managing Director of Bara Consulting, an independent mine design consulting company to Alphamin and has reviewed and approved the scientific and technical information contained in slide 11

(lhs) of this Presentation.

  • Mr. Roger Gordon Leighton (MSc (Eng), FSAIMM) is a Lead Process Engineer of MDM Technical Africa (Pty) Ltd,, an independent ● company to Alphamin and has reviewed and approved the scientific and technical information contained in slide

11 (rhs)of this Presentation

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SLIDE 3

TODAY’S AGENDA

A new tin producer Our journey to Bisie Geology Feasibility Study Our ambitious aims A bright future awaits

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SLIDE 4

OUR JOURNEY TO BISIE

Refine technical studies to support a feasibility study Get comfort that project is technically feasible

Studies carried out - Mining UG feasible Metallurgy - gravity separation feasible Logistics - feasible Infrastructure - self sufficient

Drill out resource to support mine as a decent investment proposition

Significant capital spent on moving resources into indicated category

Initial aim was to produce 20ktpa Sn

Industry advisors suggested tempering our output Reduced plan to 10ktpa Sn

Identified as a potential high grade tin deposit

Invested in exploration program

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SLIDE 5

BISIE PROJECT

Regional location Bisie project area

Dar es Salaam Mombasa Goma

Mpama North drill pads Mpama South drill pads Exploration camp Manoire village Process plant Underground mine Construction camp Access road 1km

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SLIDE 6

TRANSITION FROM EXPLORER TO TIN MINER

Corporate overview

Chairman

Charles Needham is the Chairman of the Board and has been involved in the DRC mining industry for 10 years. Charles is also the Chairman of Ruashi Mining and Kinsenda Copper Company

Chief Executive Officer

Boris has been involved in the DRC mining industry for 12 years and has extensive experience in establishing diamond operations in remote locations

Chief Financial Officer

Eoin O’Driscoll has been involved in the DRC mining industry for 6 years with extensive experience in the gold mining sector

Chief Operating Officer

Trevor Faber has been involved in the DRC mining industry for 10 years and has experience in establishing 2 major copper mines in Katanga

Strategic Growth Officer

Mark Gasson has been involved in the DRC mining industry for 12 years. He has held senior positions with a number of Australian, Canadian and international mining companies

  • perating in Africa where he was responsible for the discovery 1Mt of copper in DRC,

>200kt tin in DRC, and >2Moz of gold in Tanzania and DRC.

Managing Director ABM

Richard Robinson has has senior level experience with a particular focus on managing political and social risk as an executive and adviser in DRC mining projects, with the U.S. Agency for International Development for the last 13 years. Richard has a Doctorate of Education in which he studied successful entrepreneurship in central and southern Africa. Richard was born in the DRC and is a permanent resident living full-time in North Kivu

Major Shareholders

Tremont Master Holdings 43% Malaysia Smelting Corporation 5% Industrial Development Corporation (15% Shareholder in ABM – project company)

Shareholders who need Sn

Malaysia Smelting Corporation Traxys

Capital Structure

Shares in issue 380million Share price 18c CAD Market capitalisation US$53 million

Strategic Partners

Government of DRC Malaysia Smelting Corporation Industrial Development Corporation

Board and management team

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SLIDE 7

BISIE PROJECT

GEOLOGY Mpama North

Current resource area at Mpama North High grade intersects shown, which are not representative of the deposit as a whole. Long section showing chute geometry, high grade intercepts and mineralisation open at depth § Mineralisation focused within a high grade chute which plunges at 40 degrees to the north § At Mpama North tin mineralisation has been delineated through drilling down to 550m below surface and down plunge to 720m § High grade mineralisation within two chutes which appear to coalesce at depth § The Main Vein zone generally occurs over thicknesses of between 2m & 22m with an average thickness of approximately 9m § High grade chute is open down plunge § Best intersections to date from deep drilling

  • 16.01m @ 22.5% Sn from 387.45m
  • 12.5m @ 10.93% Sn from 336.7m
  • 13.6m @ 7.59% Sn from 534.4m
  • Highest grade intersections at depth
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SLIDE 8

BISIE PROJECT

GEOLOGY Mpama South

Diamond drill holes with better intercepts at Mpama South

  • Limited drilling has been carried out at Mpama South
  • Tin mineralisation defined over >500m
  • First phase drilling results at Mpama South were similar to those at Mpama North
  • Significant grades include:
  • 32m @ 2.46% Sn from 192.2m
  • 6.7m @ 2.34% Sn from 146m
  • Mineralisation is hosted within the same chlorite schist which hosts high grade

mineralisation at Mpama North

  • Mineralisation has a strong structural control similar to Mpama South
  • Best intercepts were at depth
  • Mineralisation potentially within a similar high grade plunging chute as that at Mpama North
  • A second zone rich in silver lead and zinc was intersected above the tin zone at Mpama South
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SLIDE 9

ALPHAMIN’S MINERAL RESOURCE BASE

Within Mining Permit PE13155

  • Mpama South – positive drill

results to date

  • Mpama North Deeps – ore

body is open at depth with improving grades PR10346

  • Soil geochemical anomalies –

exploration underway

Classification Tonnes (millions) Sn % Sn tonnes (thousands) Indicated 3.94 3.94 155.3 Inferred 0.84 4.64 38.9

Mpama North Mineral Resource Exploration – Mineral Resource Growth Potential

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SLIDE 10

BISIE PROJECT UPSIDE

BLUE SKY Mpama Deeps Mpama South Regional targets

§ Well developed tin and copper in soil anomalies along 15km of the Bisie Ridge § Tin mineralization strongly associated with copper, arsenic, lead, zinc and silver § Significant Sn/Cu/Pb/Zn/As soil anomalies defined over 15km of Bisie Ridge § Cassiterite (SnO2) identified in pitting on adjacent PR 10346 § Tin potentially hosted within same geological setting as Mpama North § Limited drilling at Mpama South § Significant grades include: § 32m @ 2.46% Sn from 192.2m § 6.7m @ 2.34% Sn from 146m § Mineralisation hosted in same chlorite schist as at MN § Mineralisation potentially within a similar high grade plunging chute § High grade chute continues & open down plunge § Best intersections at depth on northern drill line § Significant grades include: § 16.01m @ 22.5% Sn from 387.45m § 12.5m @ 10.93% Sn from 336.7m § 13.6m @ 7.59% Sn from 534.4m § Grades improving with depth

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SLIDE 11

BISIE PROJECT FEASIBILITY STUDY

MINING AND PROCESS METHODS Mining by sublevel caving methods Process flow sheet follows standard gravity separation methods

Succefully piloted using full-scale equipment.

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SLIDE 12

BISIE PROJECT FEASIBILITY STUDY RESULTS

¡

Probable Mineral Reserves 3.04Mt @ 3.76%Sn

As part of the Indicated Mineral resources

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Tin output per annum 9,000t

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Life of mine 10 years

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Capital investment US$119.3 million

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Tin price used for study US$14,800/t Sn

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NPV @ 15% discount rate US$84.7 million

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IRR 36.4%

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All-in cost of production US$8,448/t Sn

Economic Sensitivities

20 40 60 80 100 120 140 160 180

  • 20%
  • 10%

Base case 10% 20% Project NPV at 15% discount ($ million) Revenue Operating costs Capital costs

Key Economic Performance Indicators @$14,800/tSn

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SLIDE 13

A BRIGHT FUTURE AWAITS

  • Develop Mpama North

2017 to 2018

  • Operate mine and plant at
  • utput of 9,000t Sn per

annum from 2019 to 2027 Phase 1

  • Develop Mpama South

2025 to 2026 Phase 2

  • Develop Mpama Deeps

2028 to 2031 Phase 3

  • All future

expansions are expected to be self funded

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SLIDE 14

SOCIAL LICENSE TO OPERATE

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SLIDE 15

WHAT ARE THE NEXT STEPS ON OUR JOURNEY?

Roll out of community development projects

  • Process of surveying

1400 families in Extended Bisie range

On-going exploration on PR's Constructing light vehicle access road

  • Labour intensive

process

  • Forms the foundation

for final road

Start mine infrastructure

  • Return airway drive

Capital raise to begin construction commence in all earnest in 2017

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SLIDE 16

BUILDING THE ROAD TO PROSPERITY

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SLIDE 17

ALPHAMIN A NEW TIN PRODUCER WITH A FRESH APPROACH

Alphamin is a pioneering tin exploration and mining business with the vision to be respected in the international tin mining sector, unleashing the full profit and potential of its world- class tin asset in North Kivu, DRC Alphamin is committed to contributing to the stability and economic activity in North Kivu, bringing significant benefit to the community and other stakeholders alike Alphamin will be a new viable and scalable tin producer offering long-term supply The Bisie operation will supply conflict-free tin from eastern Democratic Republic of Congo The Alphamin operation will be the manifestation of what conflict mineral legislation aimed to achieve Alphamin has the expertise, resolve and determination to

  • vercome the challenges on the

way to delivering a lucrative tin mining operation in North Kivu

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SLIDE 18

READY TO DELIVER AMBITIOUS AIMS

Be at steady state production in 2018 Majority of staff DRC nationals Producing ~9kt ton Sn in +60% con Increasing local businesses supporting mine

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SLIDE 19

EXPERTISE TO OVERCOME CHALLENGES AND UNLOCK POTENTIAL

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SLIDE 20

THE RESOLVE TO SUCCEED

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SLIDE 21

THANK YOU VERY MUCH

ANY QUESTIONS?