Vendetta Mining Corp. · TSXV:VTT
Vendetta Mining — Investor Presentation (October 2016)
28 slides from Vendetta Mining's investor presentation, Oct 19, 2016
Slide 1: Advanced Resource Development – Pegmont Lead-Zinc Deposit
Advanced Resource Development Q4 2016 Pegmont Lead – Zinc Deposit Queensland, Australia
Slide 2: Important Information
IMPORTANT INFORMATION Cautionary Statement on Forward Looking Information This presentation is not directed to, or intended for distribution to or use by, any person or entity that is a citizen or resident or located in any locality, state, country or other jurisdiction where such distribution, publ
Slide 3: Pegmont – Advantages
PEGMONT – ADVANTAGES • Queensland, Australia: Top Tier Mining Jurisdiction, Safe, Stable and Transparent • Infrastructure: Roads, Haul Roads, Rail, Existing Mines & Natural Gas Pipeline • Close to Smelters: Lead (Glencore, Mt Isa) and Zinc (Sun Metals, Townsville) • Land Package: 3 Mining Leases (pr
Slide 4: Senior Management and Board of Directors
SENIOR MANAGEMENT AND BOARD OF DIRECTORS Michael Williams Peter Voulgaris David Baker Doug Flegg Doug Ramshaw B B.Eng.(Hons), MEngSci. MAusIMM, MAIG MBA CA MBA CFA B.Sc.(hons), A.R.S.M President, CEO, Director Director, Qualified Person Director (independent) Director (independent) Director Over 20
Slide 5: Consultants & Advisors
CONSULTANTS & ADVISORS Ocean Partners David Esser Geoff Richmond B.Sc. (Hons) Geology, MAIG B.Sc. (Metallurgy) FAusiMM Concentrate Marketing Advisor Contract Exploration Manager Contract Chief Metallurgist Ocean Partners Holdings Limited is a base and Over 25 years of near mine and green fields An a
Slide 6: Corporate Structure
CORPORATE STRUCTURE Refined Zinc – Sun Metals Zinc Smelter Townsville Shares Issued and Outstanding 72,635,396 Warrants ($0.35 | exp. 08/17) 4,326,885 Warrants ($0.13 | exp. 09/18) 776,923 Warrants ($0.10 | exp. 05/18) 50,000,000 Options ($0.25 | exp. 10/18) 1,150,000 Fully Diluted 128,889,204 Refin
Slide 7: Location
LOCATION Australia^ 2nd Largest lead producer 2nd Largest zinc producer 4th Largest silver producer Queensland* Australia's largest producer of copper, lead and zinc* Home to over 100 metalliferous mines www.vendettaminingcorp.com | TSXv : VTT ^ Source: U.S. Geological Survey, Mineral Commodity Summ
Slide 8: Infrastructure
INFRASTRUCTURE • 28 km from South32’s Cannington Mine, one of the world’s largest lead and silver mines (3.2 Mtpa) • 25 km from Chinova’s Osborne copper-gold Mine (2Mtpa) • Concentrate rail loading sidings at Phosphate Hill and Cloncurry Mt Isa, a regional mining centre Korea Zinc Townsville – Refin
Slide 9: Pegmont Transaction - Amended
PEGMONT TRANSACTION - AMENDED Amended Agreement • Option to acquire 100% December 2015 Status • $2.25m cash payments over 4.5 On TSX:V Approval $250,000 Paid years 2014 Drill Program $350,000 Paid Completed by Vendor • $3m in exploration expenditures over During 2014 2,000 m of drilling Complete 3 y
Slide 10: Pegmont Evolution
PEGMONT EVOLUTION 2014 – 2016 Highlights Zone 5 Drilling^: • 1970 Discovery – 1973 Placer Prospecting (Placer Dome). PVRD017 4.56 m @ 15.60% Pb+Zn (5.45% Pb, 10.15% Zn) Throught to be a single lens, lead dominant deposit. 4,766 m @ average depth of 70 m PVRD010 4.20 m @ 11.93% Pb+Zn (6.29% Pb, 5.64%
Slide 11: Pegmont – Geology
PEGMONT – GEOLOGY • Broken Hill Type deposit : Mid Proterozoic stratiform, hosted in banded iron formation and garnet rich quartzite • Galena and Sphalerite mineralisation, banded semi massive to massive • Country rock is a high grade metamorphic quartzite grading out to gneisses (meta-sediments) •
Slide 12: Pegmont – Zones 1, 2 & 3 Shallow High Grade
PEGMONT – ZONES 1, & 3 SHALLOW HIGH GRADE • Located on mining lease ML2621 • Zones 1 and 2 Open Pit Target - Transition and Sulphide mineralisation, 20 to ~100 m below surface • Zones 2 and 3 Underground [Room & Pillar] Target - Sulphide mineralisation – Flat dipping Cross Section Looking North East
Slide 13: Burke Hinge Zone (BHZ) – Open Pit Target
BURKE HINGE ZONE (BHZ) – OPEN PIT TARGET • Located on mining lease ML2621 • Located 300m to the NE of Zone 2 mineralisation at Pegmont, the bridge between Zone 2 and BHZ remains an exploration target • Shallowest known sulphide mineralisation at Pegmont (commencing approx. 24 m below surface) with T
Slide 14: Zone 5 – Increasing Zinc Grades
ZONE 5 – INCREASING ZINC GRADES • Located on EPM15106 • Known strike length 500 m • Zinc grades continue to improve towards SW and Zinc to Lead ratios approaching or exceeding 1:1 • Open down dip and down plunge to NE and SW • Metallurgical samples are currently at ALS Metallurgical Laboratory • Zon
Slide 15: Exploration Upside
EXPLORATION UPSIDE • Zone 5 Extensions In the direction of increasing zinc grade there is an additional 2 km of strike length and 2.8 km of down dip available to explore • Burke Hinge Zone Repeats 5 km of strike around a large fold structure between BHZ and the “Airport BIF”, possible repetitions of
Slide 16: Exploration Upside
EXPLORATION UPSIDE • BONANZA LOAD • BHZ – Synclines & Zone 2 Bridge Targets BHZ “look-a-like”, two moderately Conceptual synclines either side of BHZ limbs dipping lenses Fold hinges are known places of metal accumulation at Pegmont Zone 2 Bridge a flat lying target connecting Zone 2 and BHZ
Slide 17: Comparisons
COMPARISONS RESOURCE GRADE TSX and ASX ZINC MINERS & DEVELOPERS (metal prices as of 14th September 2016, 100% recovery and payables assumed) 30% 25% 20% 15% 10% 5% 0% ZnEq % Pb+Zn% www.vendettaminingcorp.com | TSXv : VTT 17
Slide 18: Summary
SUMMARY LOCATION RESOURCE ESTIMATE EXPLORATION UPSIDE LEAD and ZINC Queensland is a stable, UPDATE Wide spaced drilling in Zinc: Declining inventories, pro-mining jurisdiction and Zone 1 to 4 included in the Zone 5 is a basis for up- closure of major mines, world leading producer of current Mineral
Slide 19: Appendix
APPENDIX www.vendettaminingcorp.com | TSXv : VTT 19
Slide 20: Geological Model – Broken Hill Type Model
GEOLOGICAL MODEL – BROKEN HILL TYPE MODEL What is a Broken Hill Type Deposit • Not as common as VMS but with similarities. • Sedimentary basins overprinted by high- grade metamorphism (amphibolite or granulite) • Stacked lenses with low aspect ratio (longer & wider compared to thickness) • Mineralis
Slide 21: Ground Conditions
GROUND CONDITIONS Ground Conditions at Pegmont would be classified as “very good” on Barton’s Q system. The deposit is hosted in a quartzite, characterised by very low joint counts, 100% RQD and high intact rock strength (UCS ~100 to 150MPa estimated). There is also a distinct lack of faulting, geol
Slide 22: 2014 Mineral Resource Estimate
2014 MINERAL RESOURCE ESTIMATE • 2014 NI 43-101 Mineral Resource Mineral Resource Tonnes Grade Oxidation State Estimate completed by AMC Category Kt Pb % Zn % Ag g/t Consultants (Canada) Ltd. Indicated 757 6.66 2.69 11.87 Sulphide Inferred 4,417 6.51 2.80 10.56 • Only Zones 1 to 4 included in the In
Slide 23: Mount Isa – McArthur River Province – Lead & Zinc
MOUNT ISA – MCARTHUR RIVER PROVINCE – LEAD & ZINC McArthur River – Glencore • Production cut backs Myrtle & Teena – Teck (to 70%) & Rox (30%) • Teck earning in by spending total $15M Century – MMG, Open Pit • Closed Lady Loretta – Glencore • Care and maintenance – ore reserves preservation George Fi
Slide 24: Mount Isa – McArthur River Province – Lead & Zinc
MOUNT ISA – MCARTHUR RIVER PROVINCE – LEAD & ZINC Resource Tonnes Grade Ore Tonnes Grade Mine or Project Category Mt Pb % Zn % Ag g/t Reserves Mt Pb % Zn % Ag g/t Measured + 180 4.7 9.9 48 Proved + McArthur River* Indicated 102 4.8 10.0 49 Probable Inferred - - - - Teena** Inferred 58 1.6 11.1 - - -
Slide 25: Zinc – Upward Price Pressure
ZINC – UPWARD PRICE PRESSURE Mine closures/reductions since 2013 have removed about 15% of the global Mine closures to alter supply outpacing foreseeable new mine development. supply / demand balance • Brunswick Mine – Xstrata (250 ktpa) – CLOSED 2013 Delays in new mine • Perseverance Mine – Glencor
Slide 26: Zinc: Growing Demand & Shrinking Mine Supply
ZINC: GROWING DEMAND & SHRINKING MINE SUPPLY Source: Teck presentation “Global Metals & Mining Conference”, Dec 2,2015, Goldman Sachs www.vendettaminingcorp.com | TSXv : VTT 26
Slide 27: Zinc concentrate supply 'pinch point' quotes
ZINC “The next two years, 2016 and 2017, represent the ‘pinch point’ of concentrate supply, with mine-closure- related cuts expected to outweigh new output from projects.” Wood Mackenzie Analyst, Jonathan Leng One of the World’s Largest Zinc Mines Closes “Mining completed at MMG Century mine in Augu
Slide 28: Matthew Sroka Corporate Development
For more information please contact: Matthew Sroka Corporate Development Tel: 604 484 7855 Cel: 604 219 2140 Email: ms@vendettaminingcorp.com Suite 1500 - 409 Granville Street Vancouver, BC V6C 1T2
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