Norsemont Mining Inc. · CSE:NOM
Norsemont Mining — Shareholder Meeting (December 2009)
36 slides from Norsemont Mining's shareholder meeting presentation, December 2009
Slide 1: Constancia Copper Project
Constancia Copper Project Constancia Global Resource ~ 4 Billion lbs Cu: Vision to Grow to + 8 Billion Lbs TSX: NOM
Slide 2: Executive Summary
Executive Summary Premier independent South American copper project Market capitalisation ~ C$150M 100% interest in Constancia Project (Titled 23,146 ha) 100% ownership of ~4,100 ha private surface rights Mineral Resource 441.3 million tonnes Sole Asset: Constancia Copper-Molybdenum Proj
Slide 3: Capital Structure
Capital Structure ¾ Shares issued: ~ 80 million ¾ Fully diluted: ~116 million ¾ Share price: ~C$1.85 (Hi/Lo C$2.63/C$1.18) ¾ Market cap: ~C$150 million ¾ Cash: ~C$27 million ¾ Debt: ~C$9 million (convertible notes held by Sentient) ¾ Largest shareholders: Sentient Group 18% MacKenzie Financial 12% S
Slide 4: History
History ¾ Feb 2005: Option agreement with Rio Tinto to acquire up to 70% in Constancia ¾ Nov 2007: Agreed to acquire Mitsui Mining’s 30% interest; final transfer June 30, 2009 ¾ Dec 2007: Scoping Study completed ¾ Jan 2008: Exercised Rio Tinto Option - 100% ownership secured ¾ Sept 2009: Definitive
Slide 5: Norsemont Directors
Norsemont Directors George Bell, Chairman (Canada) Patrick Evans, CEO, Director Bob Baxter, President/COO, Director Robert Parsons, Director (USA) Malcolm Siverns, Director (Canada) Brian Kerzner, Director (Canada) Augusto Baertl, Director (Peru) Ian Hume, Director (Australia)) TSX:
Slide 6: Norsemont Management
Norsemont Management Patrick Evans, CEO Bob Baxter, President and COO Chris Reynolds, CFO Norsemont Peru: Sean Spraggett, General Manager, VP Engineering Gaston Loyola, VP Exploracion Carol Fries, VP RRCC & EHS Katty Vargas, Administration Manager Max Pinsky, Legal and Corporative
Slide 7: Strategic Location
Strategic Location Xstrata 860 Mt @ 0.93% Cu Inferred Resource Mitsui Pre-Feasibility Study Xstrata 120,000 tpa of Cu 600km southeast of production Lima; QUECHUA PROJECT 334km by road to Arequipa TSX: NOM Proposed Xstrata Transportation Line -------- 7
Slide 8: Infrastructure
Infrastructure ¾ Matarani port 120km from Arequipa by highway ¾ Within 60km of railroad ¾ Three perennial rivers nearby ¾ 70 km from 138kV Tintaya substation (plans to upgrade to 220kV by 2012); Capex $25m ¾ Access road: 83km, Capex $19m to upgrade ¾ Skilled and unskilled labour nearby TSX: NOM 8
Slide 9: Constancia Titles
Constancia Titles Constancia ¾ 100% titled mining concessions to 22,516 Ha (excluding overlaps) ¾ 100% private land title to 4,097 Ha TSX: NOM 9
Slide 10: Geology
Geology ¾ Located in the Yauri-Andahuaylas metallogenic belt, which hosts several unexploited porphyry deposits (Antapaccay, Quechua, Los Chancas) and copper skarn deposits (Tintaya and Katanga mines, Las Bambas project) ¾ Topography: moderate relief with shallow glacial valleys and low rolling hill
Slide 11: Constancia Resource
Constancia Resource 43-101 Resource Statement GDR Minproc (Sept 09) Grade Contained Category Mt Cu (%) Mo (%) Ag (g/t) Au (g/t) Cu (mlb) Mo (mlb) Ag (koz) Au (koz) Cu-Eq (mlb) (1) Reserves Proven 161.8 0.45 0.012 3.68 0.05 1,605 43 19,130 260 2,102 Probable 115.6 0.4 0.011 3.70 0.05 1,019 28 13,751
Slide 12: Definitive Feasibility Study
Definitive Feasibility Study Constancia ¾ Resource Open Pit TMM 626.8 mt ¾ Plant and Processing max throughput 76mt, 38’ SAG and 2 x 24’ ball mills (34.5 MW) ¾ Tailing Management Facility 277 mt dry ¾ Mine Waste Dump 295 mt PAG ¾ Power demand 90 MW average continuous 75 MW ¾ Operations camp for 400
Slide 13: Mining and Processing
Mining and Processing ¾ Low-cost open pit mine ($1.19/t mined) ¾ Large-scale bulk mining; conventional flow-sheet ¾ Strip ratio: 1.26 ¾ Life of mine: 15 years ¾ Nominal 50,000tpd sulphide concentrator plant producing high-grade commercial concentrate of copper and molybdenum. ¾ Throughput rates vary
Slide 14: Production
Production ¾ Concentrate specification: ¾ Copper LOM average annual production150m lbs contained Cu; recovery 88%; grade 28%; Ag credit 1.5moz pa ¾ Molybdenum LOM average annual production1.2m lbs pa contained Mo; recovery 55%; grade 40% ¾ Production profile(1): 350 300 Production (mlb Cu-Eq) 250 20
Slide 15: DFS Economics
DFS Economics Commodity Price Sceanrio Low Medium High NPV (5%) $m 496.8 731.9 1,277.5 NPV (8%) $m 303.6 494.2 931.8 IRR % 15.5 19.4 26.9 Payback years 4 3 3 ¾ Low: $2/lb Cu; $13/lb Mo; $12/oz Ag; $800/oz Au ¾ Medium: $2.25/lb Cu; $13/lb Mo; $12/oz Ag; $800/oz Au ¾ High: $2.75/lb Cu (based on forwar
Slide 16: DFS Economics Raymond James LT
DFS Economics Raymond James LT ¾Dec 1 Raymond James updated long-term Price Deck ¾Cu $2.50/lb, Mo $14.50/lb, Ag $13.00/oz, Au $ 900/oz Applied to Constancia Economics: ¾Post tax NPV @ 8% USD$711 million ¾IRR 23.4% ¾Payback 3 years TSX: NOM 16
Slide 17: Capital Cost Structure
Capital Cost Structure Development Capital US$ 845,986,301 Mining US$ 120,510,596 Process Plant & Associated Infrastructure US$ 367,183,057 Waste Management Facilities & Water Infrastructure US$ 84,164,464 Infrastructure US$ 87,646,211 - Access Road US$ 20,170,138 - Accomodations US$ 43,023,618 - Po
Slide 18: Project Parameters
Project Parameters ¾ Initial Capital $USD 846 ¾ LOM Capital $USD 993.6 ¾ LOM 15 years ¾ Avg Annual Production Yr 1-5 Avg 102,000 tonnes Cu in concentrate Yr 1-10 Avg 80,000 tonnes Cu in concentrate Yr 1-15 Avg 68,000 tonnes Cu in concentrate Costs ¾ Processing costs LOM $0.48/lb - Payable $3.85/T pr
Slide 19: Project Parameters
Project Parameters Cost per pound of copper production ¾ Site Costs inclusive of by-product credits $0.56 per lb ¾ Total after sustaining and deferred capital $0.62 per lb ¾ Cash cost net of by-product credits $0.98/lb ¾ Zn penalties $2 per tonne of concentrate ¾ Mining Rate - Avg. total mining rate
Slide 20: Exploration Upside
Exploration Upside ¾ Vision to increase Constancia resource from current ~440 million tonnes to + 800 million tonnes ¾ Only aaprox 10,000 ha of 22,516ha property mapped to date ¾ Discovery of Pampacancha, Chilloroya South, Yanaccaca and Uchucarco ¾ Pampacancha 3km SE of Constancia property ¾ Chillor
Slide 21: Exploration Targets
Exploration Targets Yanaccaca Uchucarco Pampacancha Cu Au Mo Skarn Porphyry Target Constancia South Chilloroya TSX: NOM 21
Slide 22: Pampacancha Prospect
Pampacancha Prospect NE Looking to SE SW Cu-Au Skarn Bodies Au-Ag Limestone replacements Au-Ag main vein Pampacancha South Photo taken from the top of the Sayhualoma Hill, Constancia TSX: NOM 22
Slide 23: Pampacancha Prospect
Pampacancha Prospect ¾ High grade anomaly ¾ Preliminary exploration target 1,000m by 400m ¾ First drill results released in Jan 2009, including: ¾ 43.5m grading 1.7% Cu, 0.1% Mo, 10.35g/t Ag, 0.76 g/t Au ¾ 13.5m grading 2.17% Cu, 0.02% Mo, 7.03g/t Ag, 1.12g/t Au ¾ Rock chip sampling conducted over 2
Slide 24: Pampacancha Drill Results
Pampacancha Drill Results HOLE_ID Length Start_At End_At COG Cu_per Mo_ppm Ag_ppm Au_ppb CuEq_per PR‐08‐005 15.00 18.00 33.00 0.2 0.69 478.0 8.14 463 1.33 PR‐08‐005 10.50 22.50 33.00 0.4 0.87 665.4 10.27 595 1.72 PR‐08‐008 43.50 112.50 156.00 0.3 1.70 1001.0 10.35 757 2.86 PR‐08‐008 40.50 114.00 154
Slide 25: 2009 Drill Program
2009 Drill Program ¾ 14 new exploration drill holes ¾ Proposed 1200 m RC drill program to further test target ¾ Priority drill holes1a and 2a have already been completed TSX: NOM 25
Slide 26: 2009 Drill Program
2009 Drill Program Hole PO-09-006 (visual estimates) ¾ 55m to 107m; well mineralized magnetite and calc-silicate skarn ¾ 107 - 127m; mineralised magnetite calc silicates skarn (increasing calc silicates). ¾ Strong high grade near surface TSX: NOM Pampacancha preliminary results PO-09-006 26
Slide 27: 2009 Drill Program
2009 Drill Program High grade mineralisation in hole PO-09-007 TSX: NOM Pampacancha preliminary results DH2a 27
Slide 28: 2009 Drill Program
2009 Drill Program TSX: NOM 28
Slide 29: Chilloroya South Targets
Chilloroya South Targets Constancia TSX: NOM 29
Slide 30: Chilloroya South
Chilloroya South 2009 reconnaissance: ¾ Western sector: 3 samples taken from a strongly leached area hosted by fine grained sandstones returned up to 1.7gpt Au, 0.17% Cu and 106ppm Mo ¾ Visible green copper oxides occur on a lower topographic level below the leached profile. This type of mineralizat
Slide 31: Chilloroya South Targets
Chilloroya South Targets Skarn Targets SECTOR 1. Qz- LIMs Bxs SECTOR 3. Felsic Porphyry SECTOR 2. Qz- Tourm- LIMs Bxs TSX: NOM Cu-Au-Mo Occurrences 31
Slide 32: Upside Potential
Upside Potential ¾ The Constancia project has a excellent potential for additional Cu-Au-Mo discoveries, like the recently identified Pampacancha and Chilloroya South. ¾ Potential for identifying new targets responds to the prolific location of Constancia in the belt and the fact that almost 72% of
Slide 33: Community Relations
Community Relations ¾ Sound community relations – strong support for development ¾ Two local communities (Uchucarco and Chilloroya): ¾ Good working relationship - agreements in place for over three years ¾ Support project development ¾ No significant relocation required ¾ No NGO opposition ¾ Surface
Slide 34: Permitting Timeline
Permitting Timeline ¾ ESIA: - Baseline studies complete - Principal consultants Knight Piesold and Social Capital Group ¾ - Target to complete in Dec 2009 ¾ Permitting: - No foreseen obstacles ¾ - Regional Ministry of Energy & Mines Cusco (DREM) and Ministry of Energy and Mines Lima (MEM) representa
Slide 35: Corporate Information
Corporate Information Corporate Office Peru Office 40 University Avenue Amador Merino Reyna Suite 1002 Piso 7 Edif. Parque Toronto, Ontario San Isidoro, Lima 27 M5J 1T1 Tel: (416) 408-4088 Tel: (51-1) 628-7272 Info@norsemont.com www.norsemont.com TSX: NOM 35
Slide 36: Cautionary Notice
Cautionary Notice Constancia This presentation may contain “forward looking” statements that involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Norsemont Mining Inc to be materially different from any future results, per
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