Mediterranean Resources Ltd
Total Page：16
File Type：pdf, Size：1020Kb
Mediterranean Resources Ltd. TSX: MNR On the Road To Production in the FFT: MHM1 OTC: MNRUF Mediterranean www.mediterraneanresources.com 1 Forward Looking Statements Certain statements in this presentation may constitute “forward looking” statements which involve known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements in the Company to be materially different from any future results, performance or achievements expressed or implied by such forward looking statements. When used in this presentation, such statements use such words as “may,” “will,” “expect,” “anticipate,” “project,” “believe,” “plan” and other similar terminology. The risks and uncertainties are detailed from time to time in reports filed by the Company with the securities regulatory authorities, to which viewers of this presentation are referred for additional information concerning the Company, its prospects and the risks and uncertainties relating to the Company and its prospects. New risk factors may arise from time to time, and it is not possible for management to predict all of those risk factors or the extent to which any factor or combination of factors may cause actual res, performance and achievements of the Company to be materially different from those contained in forward looking statements. Given these risks and uncertainties, investors should not place undue reliance on forward looking statements as a prediction of actual results. There should not be an expectation that forward looking information will, in all circumstances, be updated, supplemented or revised, whether as a result of new information, changing circumstances, future events or otherwise. 2 Strategy . Introduce a strategic Turkish partner with local know-how and connections into the shareholding structure of our Turkish subsidiaries . Make the main Turkish project, Kizildağ, self-financing via a listing of Akdeniz Resources Madencilik on the Istanbul Stock Exchange . Move the Kizildağ pits towards development though ISE financing, trading house off-takes and a debt tranche. Continue exploration of Çeltik in a separate JV with Turkish partners . Adding other developmental projects to the pipeline in other parts of Turkey and Mediterranean Basin . Diversifying metals exposure – seeking base metals and specialty metals deposits (e.g. Chromite, Antimony) 3 TURKEY: One of the Least Explored Gold Regions Pro-Investment Government & Policies Gold Production Exempt from VAT Refund of VAT on Exploration Expenditures Modern Mining Code Excellent Infrastructure Extensive Roads & Power Lines Strong Industrial & Manufacturing Base Location, Access and Infrastructure Located in north eastern Turkey 120 kilometers north of Erzurum, regular scheduled airline service, population 360,000 100 kilometers south of Hopa, a deep water port with bulk handling capability on the Black Sea Samsun Smelter nearby on the Black Sea 12 kilometers west of Yusufeli, population 6,400 4 Turkey –Property Locations Kızıldağ Property Two projects: Red Mountain/Kızıldağ: consisting of the Taç (gold/copper) deposit, Çorak (gold/lead/zinc) deposit and Çevreli (the exploration area between the two). Çeltik: consisting of a gold exploration project 5 Corporate Structure TSX Symbol: MNR Leading Shareholders Frankfurt Symbol: MHM1 Investec WIM’s clients OTC Symbol: MNRUF Teck Corporation (3%) National Bank of Canada Current Share Price: $0.03 Share Price : $0.01 - $0.125 CFO: Anthony Jackson (52-Week Range) Corporate Sec: Cheryl Harpestad Investor Relations: Sean Davis Issued & Outstanding: 142.1 Million Country Manager: Nursel Atar (Turkey) Fully Diluted: 164.7 Million Country Manager: Behar Boshkaj (Albania) Market Capitalization: $4.27 Million 6 Directors & Management Dr. John A. Clarke: Chairman and Director. He brings considerable experience in mineral exploration, corporate acquisition and development in the gold mining sector. He has held roles as Vice Chairman and CEO of Nevsun Resources and Executive Director of Ashanti Goldfields Company Ltd of Ghana. Dr. Clarke is currently a Director of Banro Corporation, Great Quest Metals, Ltd. and PMI Gold Corporation. He holds B.Sc. in metallurgy from University College Cardiff, a Ph.D. in metallurgy from Cambridge University and MBA from Middlesex Polytechnic. Christopher Ecclestone: CEO and Director. He is a Principal at the boutique New York investment bank, Hallgarten & Company, which specializes in mining-related concerns. Prior to that he was a prominent analyst of the Argentine equity market during the 1990s. In the late 1980s, he worked in London as a corporate finance and equities analyst and as a freelance consultant on the restructuring of the securities industry. He has also worked for the Federal and State governments in Australia. He is a native of Melbourne, Australia and graduated in 1981 from the Royal Melbourne Institute of Technology. John Shanahan: Director. He has been the President and CEO of Revett Minerals (TSX:RVM) since October 2008. Prior to becoming CEO, he was the Chairman of Revett from 2005 until April 2009. His background is in commodity price risk management and he has held senior management positions with Barclays Capital, Rothschild Inc., Pasminco Ltd, and Australian Mining and Smelting. He holds a B. Comm. degree from the University of Melbourne, a graduate diploma in Systems Analysis and Design from the Royal Melbourne Institute of Technology, and an MBA degree from the Columbia School of Business. Alex Gostevskikh: Director. He holds a MSc and MBA and is a geologist with over 20 years of experience in mining and exploration for gold, silver, and non-ferrous and base metals. He is currently the Managing Director of Uranium Resources PLC (which is listed on the AIM in London), the company is an explorer in Tanzania. He was a Regional Exploration Manager for Centerra Gold Inc (TSX listed), the largest Western gold producer in Central Asia and has held other positions including Exploration Manager for Gulf International Minerals, Senior Geologist for Kinross Gold/Amax Gold, as well as consulting engagements with a number of major and junior mineral exploration companies. Dr. Michael Hirschberger, Director. He is Principal and CEO of Strategic Min-Metals, AG, Vienna, a niche company focused on the exploitation of Chromite in selected countries. He previously organized and operated Global Min-Metal Holdings, SA, an exploration company, developing manganese ore principally in Panama. He successfully recruited a broad range of professionals with extensive international experience in geology, mining, and large scale production of manganese. His early career was spent in Research & Development, Regulatory Affairs, Business Development and Product Management with Roche, Merck, and Wyeth. Following this he held various positions with the Wall Street firms of White, Weld & Company, Northern Trust, Societe Générale S.A. in New York and his own firm, Healthcare Capital Group. 7 Red Mountain – Kızıldağ Property 8 NI 43-101 Advanced Gold Deposits TAC and CORAK . Mediterranean acquires properties from Teck Resources in 2006 . Excellent cost of discovery - less than $7.00 per oz . Metallurgical recoveries at Tac up to 90% for gold and 70% copper using conventional flotation . Metallurgical recoveries at Corak up to 85% for gold, 58% silver, 85% lead and 73% zinc . Opportunity to increase grade and tonnage . P.A. ( Preliminary Assessment) by SRK released in August 2011 . E.I.A. (Environmental Impact Assessment) baseline studies continue by Golder & Associates 9 Red Mountain/Kızıldağ Production Plan . In September 2011, the PEA prepared by SRK was published . Two stage mining with Çorak pit being exploited first followed by the Taç deposit . Daily mill throughput of the mill of 5,500 tpd (approximately two million tonnes per annum . Production of a Lead/Zinc concentrate with first pit (for 3 ½ years), and a Copper concontrate with the Taç pit (for the following 4 years) . Initial Capital Expenditure of $125 M (including a 25% contingency) . Projected mine life of 7.2 years and average annual production over mine life of 94,500 oz Au. Cash costs of US$538 per Gold equivalent ounce . In-pit, contained resources of 14.4 Mt, 905,000 oz gold, 104 Mlb of zinc, and 32 Mlb of copper and 40 Mlb of lead . Metal prices for the base case optimisation were US$1,000/oz gold, US$2.75/lb copper, US$16/oz Silver, US$0.85/lb lead and $0.90/lb zinc Preliminary Assessment (PEA) Potential Cash Flow Model Outputs Case B Case C Case D Case A Parameter Unit 3-year Ave Metal 2-year Ave Metal 1-year Ave Metal Base Case Prices* Prices* Prices* Gold Price US$/oz 1,000 1,094 1,207 1,346 Silver Price US$/oz 16.00 19.00 21.96 27.36 Copper Price US$/lb 2.75 3.06 3.41 3.84 Zinc Price US$/lb 0.90 0.86 0.97 1.00 Lead Price US$/lb 0.85 0.89 1.00 1.06 Net Cash Flow - undiscounted US$M 87 157 256 366 and before tax and interest Net Present Value - before tax US$M 51 105 184 270 and interest (5% Discount rate) Internal Rate of Return - before % 16 25 37 48 tax and interest Pre-production Capital Payback Production 3 2.5 1 < 1 Period Years Payable Gold oz 680,000 Payable Silver oz 115,000 Payable Copper Mlb 29 Payable Zinc Mlb 88 Payable Lead Mlb 33 *As at May 31, 2011 calculated from LME monthly averages 11 Red Mountain/Kızıldağ Development Plans . Initiate an Environmental Impact Application . Prepare an Engineering study with real Turkish costs for Capex and Opex . Identify off-takers for base metal output . Identification of drill targets at new copper zones . Work towards a resource at Çeltik 12 Listing of Akdeniz on the ISE . Approach listing as an “emerging market” story rather than a mining listing . Scarcity value : only other listed miner is the phenomenally successful Koza listing . Place 15% of Akdeniz Resources with Turkish domestic and international investors . Strategic Turkish Partner with 25% stake will be a household name for Turkish investors and provide assurance of company’s good connections .