Lcl Resources Limited · ASX:LCL
Lcl Resources — Metminco — Investor Presentation (September 2015)
50 slides from Lcl Resources's investor presentation, Sep 24, 2015
Slide 1: ASX Announcement: Presentation – Los Calatos High Grade Development Option
ASX ANNOUNCEMENT 24 September 2015 PRESENTATION – LOS CALATOS HIGH GRADE DEVELOPMENT OPTION Metminco Ltd (ASX : MNC; AIM : MNC) is pleased to announce that it has today released a presentation in relation to the results of the Strategic Mining Study Report recently completed by RungePincockMinarco (
Slide 2: Company Background, Projects and Mineral Resources
ASX ANNOUNCEMENT METMINCO LIMITED 24 September 2015 Company Background Metminco is a dual ASX and AIM listed company with a portfolio of copper, molybdenum and gold projects in Peru and Chile. Projects and Mineral Resources The Los Calatos Project, located in southern Peru, has a total estimated min
Slide 3: RPM Study Notes and Forward Looking Statement
ASX ANNOUNCEMENT METMINCO LIMITED 24 September 2015 Further, the RPM global team’s knowledge base has been gained through the conduct of work in over 118 countries, and their approach to the business of mining is strongly grounded in economic principles. The company’s cutting-edge mining software te
Slide 4: For further information contact
ASX ANNOUNCEMENT METMINCO LIMITED 24 September 2015 For further information contact: METMINCO LIMITED Stephen Tainton / Phil Killen Office: +61 (0) 2 9460 1856 NOMINATED ADVISOR AND BROKER RFC Ambrian Australia Will Souter/ Nathan Forsyth Office: +61 (0) 2 9250 0000 United Kingdom Samantha Harrison
Slide 5: Los Calatos: High Grade Development Option
INVESTOR PRESENTATION Los Calatos : High Grade Development Option September 2015 0
Slide 6: Disclaimer
Disclaimer This presentation (the “Presentation”) is strictly confidential to the recipient and has been prepared by Metminco Limited (“Metminco” or the “Company”) based on the information available to it. It is intended solely for the information of the initial recipient of this presentation. Metmi
Slide 7: Corporate Focus – 3 Initiatives
CORPORATE FOCUS – 3 INITIATIVES 1. DEVELOPMENT OF LOS CALATOS Cu-Mo PROJECT IN PERU • RungePincockMinarco (RPM) Strategic Mining Study completed in accordance with a defined Scope of Work • Development of Los Calatos commencing with an underground, sub-level cave, mining operation • Favourable econo
Slide 8: Los Calatos Project
. Los Galatos Project
Slide 9: Priority high grade copper development project
Priority high grade copper development project Los Calatos Cu-Mo Porphyry Complex • Estimated mineable quantity of 134.3Mt @ • Excellent regional infrastructure 0.89% Cu & 360ppm Mo (Mill head grade) • Designated “Project of National Interest” by • LoM of 22 years with average steady state Peruvian
Slide 10: Located in prolific Cu-Mo mining district, Southern Peru
Located in prolific Cu – Mo mining district, Southern Peru Close proximity to substantial open pit mining operations Cerro Verde Toquepala Cuajone Unit Started production 1976 1960 1976 Reserves: ¹ Cu grade 0.51% 0.55% 0.37% Mo grade 0.019% 0.032% 0.020% Cut-off grade (CuEq) 0.19% 0.23% 0.17% Strip
Slide 11: Project is highly deliverable – development risks low
Project is highly deliverable – development risks low Social Licence • No exposure to local potable water issues • No competing land use • All surface rights covering the project will be acquired directly from the Peruvian government - Project of National Interest status Access to Power and Wate
Slide 12: Pre-production capital expenditure
Pre-production capital expenditure Estimated pre-production capital Parameter US$ (millions) Flotation plant, Mo plant, indirect costs 233 Underground mine including development, equipment and conveyor 58 Infrastructure including power supply, water pipeline, road access, site 216 facilities, worksh
Slide 13: Key operational parameters
Key operational parameters Life of Mine – Operational Parameters Parameter Amount Annual tonnes milled (millions) 6.5 Annual copper in concentrate (kt) 50 Annual molybdenum in concentrate (kt) 1.3 Mining costs (US$/t) 14.27 Processing costs (US$/t) 6.05 G & A costs (US$/t) 1.34 By-product credits (U
Slide 14: Key performance indicators
Key performance indicators LoM Performance Indicators Parameter LoM Total tonnes mined (millions) 134.3 Average milled copper grade (%) 0.89 Average milled molybdenum grade (%) 0.036 Copper in concentrate (kt) 1,101 Molybdenum in concentrate (kt) 32 EBITDA (US$ millions) 3,820 Unlevered cash flow be
Slide 15: LoM cash costs – Comparison with global producers
LoM cash costs – Comparison with global producers Cash Cost Estimates (US cents/lb Cu) – 269 Projects / Mines 400 C1 cash operating cost after by-product credits (US cents/lb) 350 300 250 200 Los Calatos 150 129.00 100 50 0 0 10 20 30 40 50 60 70 80 90 100 -50 (0 Mlbs) Cumulative % Paid Metal (Mlbs
Slide 16: Competitive capital intensity
Competitive capital intensity Capital intensity – Initial Capital (US$) vs. Ave LoM Cu production (ktpa) 35,000 Capital Intensity (Initial Capital US$/Annual Cu) 30,000 25,000 20,000 Los Calatos 15,000 13,100 10,000 5,000 0 100 0 10 20 30 40 50 60 70 80 90 (0 ktpa) Cumulative % Cu (ktpa) (9,292 ktpa
Slide 17: Good regional infrastructure
Good regional infrastructure Road and Access Proposed Services Corridor • Close to Pan American highway (50km) and the Port of Ilo (100km SW) Power Supply • Power will be sourced from the regional city of Moquegua 32km SSE of the project • Power costs – long term price 6c/kWh Services Corridor
Slide 18: Project infrastructure
Project infrastructure 75km Pipeline 45km Access Road 32km Powerline Quebrada Guaneros Province Limit PNI Area 13,363km² Reserve 13
Slide 19: Mineral Resource Estimate @ June 2015 (JORC 2012)
Mineral Resource Estimate @ 15 June 2015 (JORC 2012) 4,500 1.30 4,000 Tonnes 1.20 Cu% 1.10 3,500 1.00 3,000 0.90 Tonnes (Mt) Cu (%) 2,500 0.80 2,000 0.70 0.60 1,500 0.50 1,000 352Mt @ 0.76% Cu 0.40 500 0.30 0 0.20 0.00 0.05 0.10 0.15 0.20 0.25 0.30 0.35 0.40 0.45 0.50 0.55 0.60 0.65 0.70 0.75 0.80 0
Slide 20: Breccia/Total Resource
98% of contained Cu metal in the breccias at a 0.70% Cu cut-off 100% 1.40 90% 1.20 80% Breccia/Total Resource In Situ Cu Grade (%) 70% 1.00 60% 0.80 50% 40% 0.60 154Mt @ 0.98% Cu 30% (98% of total Cu 0.40 20% metal) 0.20 10% 0% 0.00 0.00 0.05 0.10 0.15 0.20 0.25 0.30 0.35 0.40 0.45 0.50 0.55 0.60 0.
Slide 21: Life of Mine production – mineable quantity & head grade
Life of Mine production – mineable quantity & head grade 7.00 1.20% 6.00 1.00% 5.00 0.80% Head Grade % Million tonnes 4.00 0.60% 3.00 0.40% 2.00 0.20% 1.00 0.00 0.00% Year 10 Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20 Year 21 Year 22 Year 1 Year 2 Year 3 Year 4 Y
Slide 22: Life of Mine Production – Cu & Mo concentrate
Life of Mine Production – Cu & Mo concentrate 70 60 50 Metal in Concentrate (kt) 40 30 20 10 - Yr Yr Yr Yr Yr Yr Yr Yr Yr Yr Yr Yr Yr Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr 9 10 11 12 13 14 15 16 17 18 19 20 21 22 Mo_in_Conc 0.8 1.3 1.3 2.2 2.6 1.7 2.2 2.2 2.2 1.7 1.7 1.3 1.3 1.3 1.3 0.8 1.3 0.8
Slide 23: Comparison: Los Calatos vs. Ernest Henry
Comparison: Los Calatos vs. Ernest Henry Los Calatos (Peru) Ernest Henry (Australia) Parameter Planned Estimated Mining Operation Underground Open Pit & Underground Underground mining method Sub-level caving Sub-level caving Ore Mined 134.3 Mt @ 0.89% Cu & 0.036% Mo 64.3Mt @ 1.03% Cu & 0.53g/t Au ¹
Slide 24: Next steps
Next steps …… REVIEW ECONOMICS OF RPM MINING STUDY Q3 2015 ENGAGE WITH SUITABLE STRATEGIC AND FINANCIAL DEVELOPMENT PARTNERS DRILL TD2 EXPLORATION TARGET AS A PRIORITY PROCEED TO PRE-FEASIBILITY AND FEASIBILITY STAGE 19
Slide 25: Mollacas Project
. Mollacas Project
Slide 26: Mollacas in brief
Mollacas in brief 100% owned, small • Measured and Indicated Mineral Resource of 15.5Mt @ 0.51%CuT undeveloped Copper Leach project • Project area of 33km² including 20 Exploration Concessions Located in close • 55km ESE of Ovalle with road infrastructure and access to power proximity to infrastruct
Slide 27: Copper leach project – Mineral Resource Estimate
Copper leach project – Mineral Resource Estimate Mineral Resource Estimate – Oxide & Secondary Sulphide Zone (July 2012) Grade Contained Metal Category Tonnes (Mt) CuT (%) Cu_Sol (%) CuT (t) Cu_Sol (t) Measured 11.2 0.55 0.44 61,424 49,140 Indicated 4.3 0.41 0.29 17,687 12,510 Total 15.5 0.51 0.40 7
Slide 28: Mollacas target – supergene cap of primary porphyry
Mollacas target – supergene cap of primary porphyry Secondary Sulphide Secondary Zone –– highest Sulphide Zone highest copper copper grades (50 –- 100m grades (50 100m below below surface) surface) W COPPER LEACH PROJECT E Oxide Zone Secondary Sulphide Zone CuT % Transitional Sulphide Zone Primary S
Slide 29: Phase 3 metallurgical testwork yields positive results
Phase 3 metallurgical testwork yields positive results Metallurgical testing 16 columns representing 5 geo- metallurgical units Acid consumption in agglomeration stage 10kg/t ore leached 85% soluble copper Ore crush size of P80 12mm to 16mm Stacked ore depth of 6 metres Opportunity to re
Slide 30: Mollacas progressing towards development
Mollacas progressing towards development Preliminary layout – SX/EW operation Completed • Updated Scoping study • Resource definition drilling • Geotechnical design work for open pit OP & leach pads • Phase 3 column leach test work WD • Preliminary layout of mining WD infrastructure AG • Environme
Slide 31: Life of mine financial model yields robust results
Life of mine financial model yields robust results Physicals Unit Parameter Financials Unit Parameter Mining rate tpd 6,108 Total Capital Expenditure US$000’s 52,306 Crushing rate ktpa 2,500 C1 Cash Operating Costs US$/lb Cu 1.23 Tonnes leached kt 14,500 Project Economics Unit Parameter Average Cu_S
Slide 32: Mollacas – Access Rights
Mollacas – Access Rights Metminco holds 21 Exploitation Concessions & surface rights to 179ha Private landowner holds surface rights over planned open pit First Extension to Initial Servidumbre / Easement declared invalid by the Court of Appeal of the IV Region Appeal against ruling lodged w
Slide 33: Appendix: Los Calatos Geology & Mining
APPENDIX 1 Los Galatos Geology & Mining
Slide 34: Geometry of mineralised hydrothermal breccias
Geometry of mineralised hydrothermal breccias Geological Plan 2050m RL Geological Section 10350 E 0 250 500m 0 250 500m Hydrothermal breccias • Exhibit well defined lateral and vertical continuity 29
Slide 35: Conceptual Mine Design – Looking East
Conceptual Mine Design – Looking East Alternate Case Two Decline Systems and a Central Shaft System • Eastern Decline down to the 2,175mRL • Western Decline down to the 2,300mRL • Vertical Shaft System to extend below to the 1,550mRL Expansion Case Two Decline Systems and a Central Conveyor System •
Slide 36: Primary mining method comprises sub-level caving
Primary mining method comprises sub-level caving Source: Page & Bull (2001) 31
Slide 37: Appendix: Los Calatos Exploration Potential
APPENDIX 2 Los Galatos Exploration Potential
Slide 38: 8 exploration targets identified in project area
8 exploration targets identified in project area Exploration Targets 8 targets identified • 4 drill ready exploration targets (TD1 to TD4) • 4 exploration targets (TE1 to TE4) Targets defined on basis of geophysics and geochemistry Initial work suggests porphyry complex extends to the southeas
Slide 39: Target TD2 – similarities with the Los Calatos deposit
Target TD2 – shares a number of similarities with the Los Calatos deposit Target TD2 – Drill Ready Target Located in similar structural setting to the main Los Calatos deposit Supported by geophysics and geochemistry Outcropping, mineralised, breccias similar to those intersected in drill hole
Slide 40: Schematic cross section - Los Calatos and Target TD2
Schematic cross section - Los Calatos and Target TD2 Exploration Target TD2 • Outcropping shallow-level hydrothermal breccia containing chrysocolla (hydrated copper cyclosilicate) mineralisation • Extends over strike distance of >200 metres • Presence of cryptocrystalline quartz indicative of the up
Slide 41: Appendix: Overview: Copper & Peru
APPENDIX 3 Overview: Copper & Peru
Slide 42: Global copper supply – demand dynamics
Global copper supply – demand dynamics COPPER WILL REMAIN SUPPLY CONSTRAINED AND A DEFICIT IS EXPECTED IN 2018 • The outlook for copper remains compelling as emerging economies transition to consumption led growth • Global copper demand is expected to grow at a CAGR of 2.3% to 2030 • In the near t
Slide 43: Peru remains an attractive mining jurisdiction
Peru remains an attractive mining jurisdiction Government type : Constitutional Republic. Legal system : Based on civil law. Executive branch : Chief of state and head of government: President Ollanta Humala (since July 2011). Elections : Every five years by popular vote (non consecutive re-
Slide 44: Economic performance 2009 to 2013
Economic performance 2009 to 2013 Key Indicator 2009 2010 2011 2012 2013 Annual Percent Change Real GDP 0.9 8.8 6.9 6.3 6.3 Inflation (eop) 1 0.2 2.1 4.7 2.8 2.0 Policy rate (eop %) 1.5 3.0 4.25 4.25 .. Real exchange rate 2 3.4 2.4 -1.0 8.8 .. Percent Output gap 3 -2.2 -0.2 0.2 0.0 -0.1 External cur
Slide 45: Copper production to increase to 2.8Mtpa by end 2015
Copper production to increase to 2.8Mtpa by end 2015 Long history of mining, second largest producer of copper after Chile. Five major copper mines, with an estimated investment of $13 billion, are expected to begin production in Peru before 2016, increasing the country’s copper output from 1.3
Slide 46: Southern Peru gas pipeline – improved power costs
Southern Peru gas pipeline – improved power costs Camesia gas pipeline now under construction - due for completion 2016/2017 Gas to fuel power generation, explosives and agricultural industries and gas sales Will deliver long term low cost power to the Region Government indication to Minera
Slide 47: Corporate
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Slide 48: Capital structure, shareholding & volumes traded
Capital structure, shareholding & volumes traded Listed ASX : AIM MNC.AX MNC.L Shareholding (30 June ’15) Directors & Management 10.8% Share Price (17 Sept ‘15) A$0.005 [£0.002] Top 10 Shareholders 31.8% Share price (52-Weeks) A$0.003 - A$0.019 Top 25 Shareholders 47.2% Issued Shares 2,656m Daily Vo
Slide 49: Board of Directors
Board of Directors Executive and Non-Executive Directors Timothy (Tim) Read William Howe Steve Tainton Chairman Managing Director Executive Director • Tim has over 40 years’ experience in the • William has over 30 years’ experience in • Steve is a geologist by profession and metals and mining sector
Slide 50: Contact details
Contact details Sydney Office Metminco Limited Level 6 122 Walker Street North Sydney NSW 2060 Australia Ph: +61 (2) 9460 1856 Fax: +61 (2) 9460 1857 Email: info@metminco.com 45