Inzinc Mining Ltd. · TSXV:IZN
Inzinc Mining — Investor Presentation (May 2014)
24 slides from Inzinc Mining's investor presentation, May 2014
Slide 1: Emerging Low-cost, Mid-tier Zinc Producer
Emerging Low-cost, Mid-tier Zinc Producer May 2014
Slide 2: Cautionary Statement
Cautionary Statement This presentation contains certain statements that may be deemed "forward-looking statements". All statements in this presentation, other than statements of historical fact, that address future production, reserve potential, exploration drilling, exploitation activities and even
Slide 3: InZinc Mining: Emerging Low-Cost Mid-Tier Zinc Producer
InZinc Mining Emerging Low-Cost Mid-Tier Zinc Producer 100% interest in the West Desert project in Utah: o One of the best located and larger undeveloped zinc resources Newly updated Preliminary Economic Assessment with significant results: o Highest returning (23% IRR after tax) zinc project wi
Slide 4: Board Focused on Delivering Value
InZinc Mining Ltd. Board Focused on Delivering Value Chris Staargaard, M.Sc. (Geochemistry), P.Geo Kerry Curtis, B.Sc. (Geology), P.Geo. President, CEO, Director Chairman, Director Chair of Compensation Committee 35+ years worldwide exploration experience with 30 years experience – base and precious
Slide 5: Capital Structure
InZinc Mining Capital Structure Issued and Outstanding 63,178,019 Warrants Nil Options 3,850,000 Fully Diluted 67,028,019 Institutional Shareholders 20% Management/Board 15% Share Price (5-6-14) $0. 165 Market Cap $10.4 million TSX-V: IZN 5
Slide 6: West Desert Project Location
West Desert Project Location Easy logistics Utah business friendly Multiple WEST DESERT transcontinental rail networks within 90 km Multiple US ports provide access to global shipping networks Main line rail and port network Source: Union Pacific TSX-V: IZN 6
Slide 7: The Right Address
West Desert Project The Right Address 160 km southwest of Salt Lake City, NEVADA UTAH Utah Paved road to within 30 km – all weather gravel roads to property Railheads within 90 km BINGHAM COPPER Grid power at site Two major power plants within 90 km WEST DESERT Natural gas pipeline withi
Slide 8: Low Project Execution Risk
West Desert Project Low Project Execution Risk No major towns or communities proximal to the project Resources are almost entirely contained on private land InZinc owns water rights – two water wells on property All exploration permits, bonds in place WEST DESERT DEPOSIT TSX-V: IZN 8
Slide 9: 2014 Preliminary Economic Assessment
West Desert Project 2014 Preliminary Economic Assessment New, larger resource now includes magnetite (iron) in addition to zinc, copper and indium Bulk underground mining possible with increase in resource size and continuity of mineralization TSX-V: IZN 9
Slide 10: 2014 PEA Economic Highlights
West Desert Project 2014 PEA Economic Highlights 1.6 billion lbs LOM zinc production (107.9 Mlbs py) +20% IRR (after-tax), > $250M NPV 8 14.8 year mine life, 3.7 year payback (from construction) US$ (0.04) lb/zinc direct cash costs (C1) US$0.50 lb/zinc fully allocated costs (C3) US$247M
Slide 11: Large Underground Resource
West Desert Project Large Underground Resource Tonnage ZnEq Zn Cu In Magnetite Zn Cu Magnetite (Mt) (%) (%) (%) (g/t) (%) (Mlbs) (Mlbs) (Mt) Indicated 13.0 6.22 2.16 0.23 33 48 691.3 65.1 6.2 Inferred 46.0 5.57 1.76 0.22 24 48 1,781.0 224.6 22.0 * April 2014: stated at a US$ 50 GMV (Gross Metal Valu
Slide 12: Large, Clean and Well Defined Resources
West Desert Project Large, Clean and Well Defined Resources 40,000m of diamond drilling NW SE Simple mineralogy of U/G resource – sphalerite, chalcopyrite and magnetite 0m “Clean” deposit - no lead, arsenic, mercury or selenium 100 and <1% pyrite Oxide Utah Pb-Ag 200 Resource Mine Magnetite
Slide 13: Amenable to Low Cost, Bulk Underground Mining
West Desert Project Amenable to Low Cost, Bulk Underground Mining 14.8 year mine life Initial 5,000 tpd Increases to 6,500 tpd in year 3 Longhole open stoping Access via two ramps Conveyor haulage is cost Stoped out areas in effective and flexible yellow Resource open for expansion Ind
Slide 14: Simple, Conventional Process Design
West Desert Project Simple, Conventional Process Design Stage 1 - Iron Concentrate Conventional magnetic separation (LIMS) removes magnetite (iron) before flotation process - common grind size +95% extraction produces 63% Fe concentrate – high quality, no penalty elements Non-magnetic tails wi
Slide 15: Multiple Projected Payable Metals
West Desert Project Multiple Projected Payable Metals Revenue Distribution at PEA Metal Prices Zinc Copper Commodity Units Annual LOM 42% 15% Zinc M lbs 107.9 1,594.3 Copper M lbs 9.9 146.7 Indium t 38.3 566.1 Indium 12% Magnetite Mt 1.0 14.9 Gold K oz 7.6 113.0 Silver 1% Silver K oz 76.9 1,137.0 Go
Slide 16: Long Term Commodity Price Inputs
West Desert Project Long Term Commodity Price Inputs PEA metal prices are the average of long-term (forward) price decks supplied by major financial/banking institutions (except indium) Long term magnetite price is based on benchmark iron ore price for 62% Fe – CFR Tianjin of $105/t. A premium (
Slide 17: Solid Economics Projected by PEA
West Desert Project Solid Economics Projected by PEA Costs US$ Initial Capital $247.4M Sustaining Capital $141.5M Total Capital $388.9M Operating Cost (per tonne) $41.08 Pre-Tax After -Tax NSR $/t 80.54 80.54 IRR % 27 23 EBITDA $M 1,299 1,299 NPV 8% $M 357 258 NPV 5% $M 507 377 Payback (After years
Slide 18: Well Leveraged to Zinc Price
West Desert Project Well Leveraged to Zinc Price Pre-Tax (M US$) After-Tax (M US$) Zinc Payback Price NPV (5%) NPV (8%) IRR NPV (5%) NPV (8%) IRR (Years) ($/lb) 0.80 321 208 19% 238 146 17% 4.9 1.00 507 357 27% 377 258 23% 3.7 1.20 693 506 34% 507 363 29% 3.0 Note: Base case in bold; US$ TSX-V: IZN
Slide 19: Projected C1 Cash Costs in the Lowest 5% of Global Production
West Desert Project Projected C1 Cash Costs in the Lowest 5% of Global Production C1 Cost ($/lb payable Zn) C1 - Direct Cash Cost ($0.04)/lb C2 - Production Cost $0.45/lb C3 - Fully Allocated Cost $0.50/lb TSX-V: IZN 19
Slide 20: Significant Upside Potential
West Desert Project Significant Upside Potential to... Expand higher grade, zinc-rich resource to the east, west and south Add recoverable zinc and copper at depth - within the current magnetite resource but beyond the current limits of zinc-copper data Discover additional mineralized zones
Slide 21: Open for Expansion and New Discoveries
West Desert Project Open for Expansion and New Discoveries W E 0m surface Historic 2.7M oz OPEN 100 silver mine 200 300 OPEN 400 500 600 700m depth 3.05m intercept @ 7.65% Zn, 3.5% Cu, 0.17% MoS2, 28 g/t Ag zone of multiple molybdenum intercepts TSX-V: IZN 21
Slide 22: Board Focused on Building Value
West Desert Project Board Focused on Building Value InZinc has favorable competitive position within peer group: One of the lowest cost potential producers Mid-tier zinc production potential Favorable location resulting in lower capital investment Significant upside potential InZinc business
Slide 23: InZinc Mining: Emerging Low-Cost, Mid-Tier Zinc Producer
InZinc Mining Emerging Low-Cost, Mid-Tier Zinc Producer TSX-V: IZN 23
Slide 24: InZinc Mining Ltd. contact details
InZinc Mining Ltd. 912 – 510 West Hastings Street Vancouver, BC Canada V6B 1L8 (604) 687-7211 For further information contact: C.F. (Chris) Staargaard, President & CEO Joyce Musial, Corporate Communications (604) 317-2728 www.inzincmining.com