Future Mineral Resources Inc. · TSX:FMR
Future Mineral Resources — Sulliden Gold — Investor Presentation (August 2010)
35 slides from Future Mineral Resources's investor presentation, August 2010
Slide 1: An Emerging Gold Producer in Peru
TSX : SUE OTCQX : SDDDF AN EMERGING GOLD PRODUCER IN PERU Corporate Presentation - August 2010
Slide 2: Forward-Looking Statements
Forward-Looking Statements Caution regarding forward-looking information: This presentation contains "forward looking information" within the meaning of applicable Canadian securities legislation. Forward looking information includes without limitation, statements regarding the proposed use of the p
Slide 3: Investment Highlights: Positioned for Success
Investment Highlights: Positioned for Success Near-term gold production in excellent location Outstanding potential to increase mineral resources Robust Preliminary Assessment completed, Feasibility Study underway Proven Management and Board with excellent track-record TSX:SUE OTCQX:SDDDF ww
Slide 4: Located in Low Cost Gold Belt
Located in Low Cost Gold Belt Located in one of the world’s most prospective gold producing belts, among low cash cost, low capital investment, simple heap leach operations. 80 km from Newmont’s Yanacocha Mine (1.8 M oz. gold/year, cash cost of $294/oz) 30 km from Barrick’s Lagunas Norte Mine (1.2 M
Slide 5: Ideal Logistics
Shahuindo Property Overview: Ideal Logistics Excellent infrastructure and logistics Comfortable altitude of 2500-2900m Access to experienced labor force N Algamarca Anticline TSX:SUE OTCQX:SDDDF www.sulliden.com 5
Slide 6: Low Cost Discoveries
Mineral Resources: Low Cost Discoveries Tonnes Gold Oz Gold g/t Silver Oz Silver g/t Indicated 44,500,000 830,000 0.58 18,800,000 13.2 OXIDE Inferred 17,700,000 280,000 0.49 3,400,000 6.0 Indicated 2,000,000 60,000 0.87 2,600,000 39.7 TRANSITION Inferred -- -- -- -- -- Indicated 5,300,000 160,000 0.
Slide 7: Historically Under-Explored
Historically Under-Explored 90,000 +30,000 meters of Meters Drilled at Shahuindo 80,000 additional drilling planned 70,000 before the end of 2010 to New grow the mineral resource 60,000 Management 50,000 10,000 meters of drilling 40,000 completed since Feb. 2009 30,000 Since 20,000 1992 40,000 meter
Slide 8: Exploration Focus
30,000 meter drill program currently underway: Exploration Focus 2010 Mineral Resource Potential + 2 Million ounces Gap Zone Potential to add +500,000 oz. 40% drilling focus East Zone Potential to add Along 4 km Strike +50,000 - 100,000 oz Potential to add 20% drilling focus +150,000 - 250,000 oz 40
Slide 9: Gap Zone Target
Recent Drill Program results: Gap Zone Target TSX:SUE OTCQX:SDDDF www.sulliden.com 9 9
Slide 10: Section 350E
Upside Potential: Section 350E 3 new holes drilled in 2009 TSX:SUE OTCQX:SDDDF www.sulliden.com 10 10
Slide 11: Section 350E
Upside Potential: Section 350E 275% Increase in Mineralized Area TSX:SUE OTCQX:SDDDF www.sulliden.com 11 11
Slide 12: Section 450E
Upside Potential: Section 450E TSX:SUE OTCQX:SDDDF www.sulliden.com 12 12
Slide 13: Section 550E
Upside Potential: Section 550E TSX:SUE OTCQX:SDDDF www.sulliden.com 13 13
Slide 14: Section 650E
Upside Potential: Section 650E TSX:SUE OTCQX:SDDDF www.sulliden.com 14 14
Slide 15: Growth Strategy
Mineral Resources: Growth Strategy Primary Target Main Mineralized Corridor (308 holes drilled) +30,000 meters of drilling underway Resource Growth: +2 million oz. target Secondary Targets North/South Corridor (8 holes drilled) Resource growth in secondary targets Infill drilling (Inferred >
Slide 16: Simple Heap Leach
Straightforward Processing: Simple Heap Leach 15,000 - 22,000 tpd Open Pit Mine ADR Plant (Adsorption Desorption Heap Leach Reactivation) Processing TSX:SUE OTCQX:SDDDF www.sulliden.com 16
Slide 17: Currently Being Optimized
Positive Preliminary Assessment Results: Currently Being Optimized Preliminary Assessment completed, Feasibility Study underway Robust Estimated cash operating costs of $403 per oz gold Economics IRR of 43.3% using $875 gold Straightforward Simple open pit, heap leach operation Operation Ann
Slide 18: Near-Term Production
Corporate Milestones: Near-Term Production TSX:SUE OTCQX:SDDDF www.sulliden.com 18
Slide 19: Managed Risk Profile
Managed Risk Profile All possible risks at Shahuindo have been addressed: Community Legal Grade Mining Recovery/Metallurgy TSX:SUE OTCQX:SDDDF www.sulliden.com 19
Slide 20: Market Overview
Market Overview Stock Market Listings Analyst Coverage CANADA TSX : SUE Gary Baschuk USA OTCQX : SDDDF Steve Parsons Capital Structure (August 1, 2010) Institutional Ownership Shares Outstanding: 156 M Aberdeen International Inc. Fully diluted: 204 M Socrate Capital Inc. Market Cap: $95 M Acuity Inv
Slide 21: Summary: Positioned for Growth
Summary: Positioned for Growth Located in prolific gold producing belt Delivered positive Preliminary Assessment in December 2009, Feasibility Study underway Largest exploration program to date planned this year to increase mineral resources Clear path to production in 2012 TSX:SUE OTCQX:SDD
Slide 22: Appendix
APPENDIX TSX:SUE OTCQX:SDDDF www.sulliden.com 22 22
Slide 23: Management & Board
Management & Board Senior Management Board of Directors Peter Tagliamonte, P.Eng. MBA, President & CEO Stan Bharti, P.Eng, Chairman Professional Engineer with 25 years experience in Mine Building and Mr. Bharti is a professional engineer and the President and CEO of Forbes & Operations with extensiv
Slide 24: Proposed Mining Infrastructure
Proposed Mining Infrastructure Office Infrastructure Area Algamarca Anticline Leach Pads Waste Pit Outline Dumps TSX:SUE OTCQX:SDDDF www.sulliden.com 24
Slide 25: Grade Improvement
Grade Improvement 1 2 3 1. High-grade veins run parallel to the typical drilling direction, therefore are seldom intersected 2. Gold is hosted in crumbly rock, and part of it is believed to escape during drilling 3. During mining, barren porphyry dikes can clearly be identified and removed as waste
Slide 26: Shahuindo Office Construction
Shahuindo Office Construction January 2010 - present TSX:SUE OTCQX:SDDDF www.sulliden.com 26 26 26
Slide 27: Corporate Social Responsibility
Corporate Social Responsibility Building Strong Community Relationships NUTRITIONAL AID EDUCATION Sulliden is committed to the sustainable development of the communities WATER surrounding MONITORING Shahuindo. TRAINING WORKSHOPS HEALTH AGRICULTURE TSX:SUE OTCQX:SDDDF www.sulliden.com 27 27 27
Slide 28: Excellent Infrastructure
Shahuindo Property: Excellent Infrastructure 120,000 ppl CAJAMARCA (Region’s Capital City) Shahuindo 20,000 ppl Gold Project 3 roads leading 3 hour drive from to the site Cajamarca TSX:SUE OTCQX:SDDDF www.sulliden.com 28 28
Slide 29: Structural Framework of Shahuindo Mineral Deposit
Structural Framework of Shahuindo Mineral Deposit TSX:SUE OTCQX:SDDDF www.sulliden.com 29 29
Slide 30: Shahuindo Rock Units
Shahuindo Rock Units Monomictic breccia with hematite matrix Folded sandstone stratas in shale- siltstone (Santa Fm) Argilized quartz Sandstone strata feldspar porphyry in Carhuaz Fm TSX:SUE OTCQX:SDDDF www.sulliden.com 30
Slide 31: Advanced Metallurgical Test Work
Advanced Metallurgical Test Work Feasibility-level bulk testing work was conducted in 2004 by Heap Leaching Consulting S.A.C.: $1 million worth of metallurgical testing 10 columns 1.5 meter diameters 25-50 tonne samples TSX:SUE OTCQX:SDDDF www.sulliden.com 31
Slide 32: PEA Highlights
PEA Highlights Preliminary Operating Costs Mining: $ 1.47 per tonne ore Processing: $ 2.48 per tonne ore G&A: $ 1.46 per tonne ore Gold IRR Undiscounted Discounted Cash Price Price Cash Flow Flow at 8% Scenario (%) (USD$) (USD$)(ii) (USD$) (ii) Base Case $775 30.8 136,753,000 73,269,000 $875
Slide 33: Options & Warrants
Options & Warrants Outstanding Options Exercise Price Expiry Date # $0.39 December 19, 2010 350,000 $0.50 December 18, 2011 400,000 $0.50 December 13, 2012 250,000 $0.50 April 4, 2013 200,000 $0.65 March 24, 2014 4,950,000 $0.81 November 20, 2014 200,000 $0.80 October 27, 2011 1,815,000 $0.80 Novemb
Slide 34: Shahuindo Ownership Litigation Settled in March 2009
Shahuindo Ownership Litigation Settled in March 2009 Settlement Terms Cash Payments: $US 13.5 million Shares: 10.825 million NSR*: 1.5% *NSR may be repurchased for $US10 million in the next 3 years Completed Payments ($US) Upcoming Cash Commitments ($US) Feb. 27, 2009 (On Closing) $1.25 M November 2
Slide 35: For Additional Information
For Additional Information: Peter Tagliamonte, President & CEO Scott Moore, VP Corporate Development 416-861-5309, smoore@sulliden.com Caroline Arsenault, Investor Relations 416-861-5805, carsenault@sulliden.com TSX:SUE OTCQX:SDDDF www.sulliden.com 35 35