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Li&Bo PROJECT MINERAL POTENTIAL OF SERBIA IS BELIEVED TO BE MORE SIGNIFICANT THAN ITS PAST AND PRESENT PRODUCTION ! 24.8.2016. Li&Bo PROJECT KOCELJEVA & ALEKSANDROVAC PERMITS www.serbiamining.rs 1 PERMITS 24.8.2016. LOCATIONS KOCELJEVA area location ALEKSANDROVAC area location www.serbiamining.rs 2 24.8.2016. PERMITS LOCATIONS KOCELJEVA area location ALEKSANDROVAC area location www.serbiamining.rs 3 24.8.2016. KOCELJEVA PERMIT LOCATION • KOCELJEVA area is located in western Serbia, approximately 100 km by road from Belgrade. Nearest larger cities are Valjevo (30 km to the south), Loznica (70 kmto the east) and Šabac (40 km to the north). An arterial road, Valjevo-Šabac, runs S - N at west part of the permit, connecting it to a railway marshalling yard at Valjevo. Within the permit itself, a network of few asphalt and mostly gravel and dirt roads connects practically all parts of the permit area. • Due to Mining Law stipulations, Koceljeva area had to be sub-divided into two sub- areas in order to keep them under the limit of 100km2. • Koceljeva area has been divided into the western and eastern part, named Koceljeva and Trlić, respectively. www.serbiamining.rs 4 24.8.2016. Criteria for choosing this area • The criteria for choosing these areas is not very elaborate, since Jadarite deposit model doesn't exist: • The basin has to be confined and not too large, in order to facilitate concentration of B and Li • It should be within the so-called Vardar zone • Granitoid intrusions as a possible source of lithium should be in the vicinity • Presence of Tertiary volcanic/volcano-sedimentary units within the basin is deemed favourable. www.serbiamining.rs 5 24.8.2016. Koceljeva permit position comparing to Jadar basin www.serbiamining.rs 6 24.8.2016. PREVIUOS ACTIVITIES • Koceljeva area has been explored previously for B and Li by a now non-existent company, LithiumLi Balkan, and the area to the north and northwest has been explored by a Canadian based company Ultra Lithium, through its affiliate company in Serbia, Ultra Balkans (UB). • The area is relatively close to Jadar basin and the Cer granitoid intrusion which is most likely the source of B and Li in Jadar basin. • Surface geochemical sampling done by UB has shown that Lower Miocene stratigraphic units (present on the surface within the reserved area) have anomalous content of both B (up to 410ppm) and Li (up to 520ppm). Lower parts of Middle Miocene units also contained B and Li anomalies, but less pronounced. UB drilled four diamond drill holes (KC-1 to KC-4, total length 2,054.2m) in their exploration area (Fig_03.jpg), with no success. Although all four holes reached the basin's basement, none of them intercepted Lower Miocene units and were consequently barren. www.serbiamining.rs 7 24.8.2016. Geological map of Koceljeva area www.serbiamining.rs 8 24.8.2016. • LithiumLi drilled one diamond drill hole (RAD_001, 406m deep) which didn't reach the basement and was also barren. • Since Lower Miocene is absent in the north (the oldest sediments in KC drill holes are of Middle Miocene age), the working hypothesis is that the southern part, with geochemically anomalous Lower Miocene unit, was at that time a small, confined lacustrine basin which might have hosted mineralization similar to that in Jadar basin. www.serbiamining.rs 9 24.8.2016. ALEKSANDROVAC PERMIT LOCATION • ALEKSANDROVAC area is located in southern Serbia, approximately 35 km by road from Belgrade. Nearest larger cities are Kruševac (35 km to the east) and Kraljevo (70 km to the west). An arterial road, Pojate-Preljina, runs E – W, is 25 km at north of the permit, connecting it to a railway marshalling yard at Kraljevo. Within the permit itself, a network of few asphalt and mostly gravel and dirt roads connects practically all parts of the permit area. • Due to Mining Law stipulations, Aleksandrovac area had to be sub-divided into two sub-areas in order to keep them under the limit of 100km2. • Aleksandrovac area has also been divided into the western, Aleksandrovac part and the eastern, named after the village Kupci (Fig_04.jpg). www.serbiamining.rs 10 24.8.2016. Criteria for choosing this area • The criteria for choosing these areas is not very elaborate, since Jadarite deposit model doesn't exist: • The basin has to be confined and not too large, in order to facilitate concentration of B and Li • It should be within the so-called Vardar zone • Granitoid intrusions as a possible source of lithium should be in the vicinity • Presence of Tertiary volcanic/volcano-sedimentary units within the basin is deemed favourable. www.serbiamining.rs 11 24.8.2016. • Far less is known about the geology of this basin and opinions of various authors on its stratigraphy differ. • However, it satisfies all the criteria stated above - it is rather confined, not too big, Jastrebac granitoid intrusion is nearby to east-southeast, it is partly within the Vardar zone and contains volcano-sedimentary units. www.serbiamining.rs 12 24.8.2016. Geological map of Aleksandrovac area www.serbiamining.rs 13 24.8.2016. SERBIA FRAMEWORK www.serbiamining.rs 14 24.8.2016. WHY TO INVEST IN SERBIA • Good infrastructure, existing mine industry, skilled workforce, low crime rate, nice climate… • Around 47,000 university and college graduates, and 75,000 high school graduates every year. • Top quality technical education at both high school and university level. • Strong command of the English language - Serbia was ranked 4th out of 76 countries in Business English proficiency by BEI*. Young graduates speak other languages, primarily French, Italian, German, and Russian. *Business English Index, Source: Global English Corporation, 2012 www.serbiamining.rs 15 Infrastructure 24.8.2016. www.serbiamining.rs 16 WHY 24.8.2016. TO INVEST IN SERBIA www.serbiamining.rs 17 Corporate Profit Tax • 10-year tax holiday for investments over €8.5 milion, 100 new jobs; WHY 24.8.2016. Reduced Salary Load TO New employment entitles employers to a sizable relief of taxes and contributions paid on net salary from the moment of employment INVEST until June 30, 2016. IN • 1-9 new jobs: 65% reduction; SERBIA • 10-99 new jobs: 70% reduction; • 100+ new jobs: 75% reduction; This reduces the total salary load to very competitive 20%*. *an estimate for an average salary in Serbia. www.serbiamining.rs 18 • Serbia is one of the most competitive locations in Europe, according to Eurostat. WHY 24.8.2016. • Among 37 European countries the lowest cost of electricity, gas, other fuels, postal services, landline telephony, fax service, and maintenance of motor TO vehicles costs. • Serbian cities always on Financial Times´ list of the Most Cost Effective Cities of INVEST the Future. IN SERBIA www.serbiamining.rs 19 Government Stable and 24.8.2016. POLITICAL FRAMEWORK Proactive • On-going EU accession negotiations, full membership expected in 2020. • On January 2014 Serbia has officially started the EU membership negotiations. It is well proven as one of the leading investment locations in CEE with key strengths in highly capable human capital and customs free access to the 15% of the world market. • New government determined to improve the business climate. Support for investments, focus on new employment, economic reforms, fiscal and budget consolidation. • New set of laws including Labour Law, Law on Bankruptcy, Law on Privatization, Law on Planning and Construction… • Law on investments – adopted at end of 2015 www.serbiamining.rs 20 24.8.2016. BENEFITS FROM THE NEW MINING CODE • Mining code was adopted at end of 2015. • Exploration timeframe is 8 years (3+3+2 years + 2 for significant find in last exploration year) • Reservation of exploration area for next phase of getting exploitation license up to 2 years • Expropriation of the land for private investors is enabled • Security of tenure defined for the first time in Serbia. • Fastest permitting procedures www.serbiamining.rs 21 24.8.2016. MINE PERMITTING PROCEDURE steps from greenfield to building a mine www.serbiamining.rs 22 24.8.2016. CONTACT DETAILS Dragan Milosevic, mining engineer Terragold&co doo Beograd Mokroluška nova 1, 11050 Beograd Tel/fax: + 381 11 3474 806 Mob.tel: + 381 64 220 8624 www.serbiamining.rs [email protected] www.serbiamining.rs 23.
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