Meridian Mining Plc · TSX:MNO
Meridian Mining — Investor Presentation (January 2017)
37 slides from Meridian Mining's investor presentation, January 2017
Slide 1: Production, Exploration, Optionality
PRODUCTION, EXPLORATION, OPTIONALITY
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS Some statements in this presentation contain forward-looking information or forward-looking statements for the purposes of applicable securities laws. These statements include, among others, statements with respect to the Company's plans for exploration and development of
Slide 3: Company Highlights
COMPANY HIGHLIGHTS Early-stage Significant land Option on tin JV Growing pilot Experienced opportunity in packages with with potential production of management metal-rich but multi-commodity for near-term high-grade and technical team underexplored exploration production from manganese with with sig
Slide 4: Multiple Project Areas – Focused on Rondônia
MULTIPLE PROJECT AREAS – FOCUSED ON RONDÔNIA 20,000 ha Target areas Tin Prioritized manganese targets Production plants Tailings areas Central area 140,000 ha Non-explored area Manganese, tin, gold Considerable Leveraging exploration regional upside presence and expertise to target Bom Futuro tin op
Slide 5: Significant Project De-risking Already Completed
SIGNIFICANT PROJECT DE-RISKING ALREADY COMPLETED Metal-rich region of Skilled local labour Brazil with long history force, compulsory of production education and technical colleges Access to infrastructure; Solid relationships maintained roads, fresh with regional and water on site, electricity, roa
Slide 6: Driving Growth
DRIVING GROWTH 5
Slide 7: Bom Futuro JV Option
BOM FUTURO JV OPTION Maintains Rondônia focus Strong land position in world- famous metallogenic province Experienced exploration and operations teams leveraging previous regional Mn production Compelling tin opportunity expertise 270kt of district production Strong community and political since the
Slide 8: Bom Futuro JV Option Terms
BOM FUTURO JV OPTION TERMS Tailings Area Central Area Unexplored Area 493 HA 2,000 HA 18,000 HA • 5-year tailings reprocessing permit, • Right to explore the Central Area • Right to explore the Unexplored extendable for another 5 years Area • $1.5 million in exploration work • Cassiterite concentrat
Slide 9: Rondônia State Development Since 1975
RONDÔNIA STATE DEVELOPMENT SINCE 1975 Bom Futuro Gold 8
Slide 10: Bom Futuro Initial Discovery
BOM FUTURO INITIAL DISCOVERY Bom Futuro JV Area Tin mineralization discovered by woodcutter in 1987 Early production from thousands of artisanal miners Work centered on ~150ha hill and surrounding palaeovalleys Total recorded tin production to Bom Futuro date: 192,000 tonnes Hill Considerable Extens
Slide 11: Regional Exploration Potential Recognized
REGIONAL EXPLORATION POTENTIAL RECOGNIZED Reinterpretation of government geophysical data indicates a structural granite trending NE- SW beyond the central hill Potential targets include: Concealed palaeovalleys Extensions to underlying granite Central Area Discrete high-grade body are poorly expose
Slide 12: Radiometric Anomalies
RADIOMETRIC ANOMALIES Radiometric anomalies present along strike Signature is characteristic of the young granites • Associated with a mineralized event Suggest depth to basement is not excessive Available geological interpretations indicate the basement is poorly understood Considerableresponse Geo
Slide 13: Bom Futuro JV Option
BOM FUTURO JV OPTION Significant exploration potential Unexplored area – 18,000ha using modern techniques • 5-year evaluation period • USD$10.5 million for 80% interest Limited drilling in Central Area to date confirms depth extensions Central area – 2,000ha to high-grade veins • 5-year evaluation p
Slide 14: Bom Futuro Aerial View from the East
BOM FUTURO AERIAL VIEW FROM THE EAST Bom Futuro Hill Tailings Vein and pegmatite tin mineralization Palaeovalley 13
Slide 15: Initial Tailings Program
INITIAL TAILINGS PROGRAM Drilling and metallurgical test work commenced • Two augur rigs; Banka rig 200 holes completed to date Freely liberated cassiterite observed over all size ranges Tailing piles can be up to18 metres deep Considerableopportunity Nearer-term explorationtoupside produce from exi
Slide 16: Exploration Opportunities – Palaeochannels
EXPLORATION OPPORTUNITIES – PALAEOCHANNELS Cassiterite concentrate from palaeochannel Rich gravel horizons: 4-5 Sn kg/m3 Broader low grade packages: 270 - 800 g/m3 Three channel trends worked to Tin mineralization Perched placer date in base of modern deposits drainage Expectation of further conceal
Slide 17: Exploration Opportunities - Primary
EXPLORATION OPPORTUNITIES - PRIMARY Veins and pegmatite mineralization Exceptionally coarse cassiterite slabs weighing up to several hundred kilograms Considerable Coarse exploration cassiterite commonupside in primary tin mineralization in the area 16
Slide 18: Initial Primary Exploration
INITIAL PRIMARY EXPLORATION 1,000m scout diamond drilling program • On sixth hole (assays pending) Ground geophysics • Orientation and extensional surveys Cassiterite – Sphalerite vein mineralization Considerable Coarse exploration cassiterite seen inupside initial diamond drill holes 17
Slide 19: Bom Futuro Aerial View from the Southwest
BOM FUTURO AERIAL VIEW FROM THE SOUTHWEST Palanqueta Hill Vein and greissen tin mineralization Bom Futuro Hill Vein and pegmatite tin mineralization 18
Slide 20: Tin Exploration Analogue
TIN EXPLORATION ANALOGUE Erzgebirge/Krásno Ore District, Czech Republic Worked between 1516 and 1991 Shows potential for multiple stocks developed along strike length of fertile pluton Considerable Potential exploration for repeat upside along strike mineralization 19
Slide 21: The Tin Market
THE TIN MARKET Tin Uses Top 5 Tin Producing Countries 2.0% 120000 4.8% 5.2% 100000 Solders - Electronic 7.0% 80000 Chemicals Tinplate 346,000 tonnes 43.5% Tonnes 7.3% Lead-Acid Batteries 60000 Other consumed in Brass & Bronze Solders - Industrial 2015 40000 Float Glass 14.7% 20000 15.5% 0 China Indo
Slide 22: Improving Tin Pricing
IMPROVING TIN PRICING Monthly Average Tin Price (LME Cash Buyer) vs Stocks 8,000 $24,000 10-year average - $19,694 7,000 $22,000 $21,221 $21,262 $20,733 6,000 $20,161 $20,000 $19,574 5,000 $18,397 USD$/tonne $17,822 tonnes $18,000 $16,982 $17,051 $16,976 4,000 $16,729 $15,640 $16,000 3,000 $13,761 $
Slide 23: Timelines – Tin – Bom Futuro
TIMELINES – TIN – BOM FUTURO 2016 2017 2018 Milestone Q4 Q1 Q2 Q3 Q4 Q1 Q2 Technical due diligence on tailings and central area Decision to exercise option Tin exploration program Assume and complete construction of power transmission line Complete NI 43-101 compliant resource assessment and PEA on
Slide 24: Use of Proceeds
USE OF PROCEEDS Bom Futuro Tailings Program Bom Futuro Exploration Power Transmission Line • Banka/Sonic resource definition • Aerial and ground geophysical • Finalize design drilling program surveys • Renew environmental permits • Feasibility studies: metallurgical test • Target definition and anom
Slide 25: Management Team
MANAGEMENT TEAM Anthony has a proven track record as an Anthony Julien entrepreneur focusing on growth and innovation President & Chief Executive and has built and sold several companies. As Carlos has held a number of senior positions in the Brazilian mining and Officer Meridian’s CEO, he aims to c
Slide 26: Board of Directors
BOARD OF DIRECTORS Barry has over 30 years of experience in the Peter has over a decade of private equity experience as a fund minerals industry and has held a number of investor and in direct co-investments, including several years with Peter Weidmann Barry Bolitho executive management positions in
Slide 27: Market & Financial Data
MARKET & FINANCIAL DATA Ticker TSX-V: MNO Share Price (Jan 20, 2017) $0.85 Avg. daily 3-month volume 12,634 52-week range $1.54 – $0.75 Shares Outstanding 151.1 million Market Capitalization $128.4 million Cash (December 31, 2016) $4.1 million Majority Holder (Sentient Group) 88% 26
Slide 28: Investment Highlights
INVESTMENT HIGHLIGHTS Extensive growth Option on tin JV in High-purity potential with multi- same region with both manganese being commodity exploration near- and longer-term sold to established upside potential customer base Multiple near-term Potential for early Significant project value creating
Slide 29: Appendix
APPENDIX 28
Slide 30: More Than Steel
be Rt MORE THAN STEEL™ lese Ex VAAN MERIDIAN
Slide 31: Extensive Land Position
EXTENSIVE LAND POSITION 140,000 ha land package Aerial survey: 62 manganese target areas, 5 prioritized for drilling / trenching 211 kms of structure identified Supporting expansion to 50,000+ tonnes production Pilot production with considerable exploration upside 30
Slide 32: More Than Steel – The Premium Manganese Market
MORE THAN STEEL – THE PREMIUM MANGANESE MARKET ~50 million tpa1 Specialty Applications for High-Grade Manganese Global manganese oxide (per cent) consumption 6.8% CAGR by 20202 1.2 million tpa Specialty applications 63% 21% 16% for 50%+ manganese BATTERIES EMERGING FERTILIZER/ USES ANIMAL FEED 1 Sou
Slide 33: 2016 Manganese Production and Sales Performance
2016 MANGANESE PRODUCTION AND SALES PERFORMANCE 60,000 Growing Manganese Typical geology 2016 produced 50,000 Production (tonnes) 50,000 for mine sites 34,622 tonnes Pilot Production Plant Capacity 40,000 COLLUVIUM AND CLAY 34,622 Dry screening has increased BRECCIA ALTERED GRANITE tonnes production
Slide 34: Premium Product, Premium Price
PREMIUM PRODUCT, PREMIUM PRICE Company Sales vs CIF China in US$/dmtu $9.00 $8.00 $7.00 $6.00 $5.67 $5.10 $4.82 $5.00 $4.32 $4.33 $3.96 $4.00 $3.62 $3.25 $3.00 $2.00 $1.00 $4.12 $3.03 $3.02 $2.48 $2.43 $3.78 $3.50 $8.20 $- Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Benchmark 44%
Slide 35: New Pilot Plant
NEW PILOT PLANT Expected commissioning in early Q2 2017 on time and on budget More efficient jigging, improved water utilization Supports mining of colluvium (surface) and (harder) primary vein material Grows capacity to 50,000 tpa 34
Slide 36: Gold Exploration Map
GOLD EXPLORATION MAP 4km Soil Anomaly (Peak 243ppb Au) Open to the east 7km Soil Anomaly (Peak 394ppb Au) Open to the east ® Reconnaissance Drainage Anomaly @ Drainage anomaly with soil follow up 35
Slide 37: Newly Recognized Gold Event
NEWLY RECOGNIZED GOLD EVENT Extensive drainage anomalies recognized Up to 430 counts in pan concentrates Gold Bedrock targets emerging 3,100 soil samples; peak values of 394 ppb Blocks with quartz-sulphide and quartz- hematite alteration in catchment areas Sources areas are poorly exposed For evalua
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