Vrx Silica Ltd. · ASX:VRX
Vrx Silica — Ventnor Resources — Mines and Money Hong Kong 2013
22 slides from Vrx Silica's conference presentation, Mar 21, 2013
Slide 1: Mines and Money Hong Kong Presentation
For personal use only ASX: VRX Mines and Money Hong Kong Presentation March 2013 www.ventnorresources.com.au
Slide 2: Disclaimer & Competent Person
Disclaimer & Competent Person This presentation was prepared with due care and attention and is current at the date of the presentation. The summary is not an For personal use only offer or recommendation to purchase or subscribe for securities in Ventnor Resources Limited or to retain any securitie
Slide 3: Table of Content
Table of Content For personal use only 1 EXECUTIVE SUMMARY 4 2 COMPANY OVERVIEW 6 3 PROJECT OVERVIEW 7 4 THADUNA/ GREEN DRAGON 8 5 DEVELOPMENT PLAN 13 6 CONCENTRATE 20 7 BOARD AND MANAGEMENT 21 8 REASONS TO INVEST 22 3
Slide 4: 1. Executive Summary
1. Executive Summary Ventnor For personal use only Australian listed copper developer (VRX.AX) Flagship project Thaduna/Green Dragon Located 40km east of Sandfire’s DeGrussa Project Highly deliverable standalone copper operation High grade bornite mineralisation Thaduna/ JORC Resources
Slide 5: 1. Executive Summary (Cont)
1. Executive Summary (Cont) Scoping Study confirms attractive economics for Thaduna/Green Dragon For personal use only Key findings include: Capital expenditure estimate $70 million Operating Expenditure average $1.75/lb Average Production (LOM) 15,000tpa Cu Anticipated Mine life 10 years (p
Slide 6: 2. Company Overview
2. Company Overview For personal use only Company Data Share Price Chart ASX Code VRX $0.80 Share Price (1 Mar 2013) A$0.45 $0.60 Shares on Issue 70.9m $0.40 Options 25.1m $0.20 Market Cap (Fully diluted) (1 Mar 2013) A$31.6m Cash (31 December 2012) A$2.1m $0.00 Mar-12 Jun-12 Sep-12 Dec-12 Mar-13 Ma
Slide 7: 3. Project Overview
3. Project Overview Flagship Thaduna/Green Dragon located in highly prospective Doolgunna region, WA For personal use only 175km north-east of Meekatharra Close proximity to the major regional Jenkin Fault Structure Located 40km east of Sandfire’s DeGrussa 7
Slide 8: 4. Thaduna/Green Dragon
4. Thaduna/Green Dragon Project Most advanced copper project in the Doolgunna region For personal use only Overview Brownfield asset with substantial resource upside Aggressive exploration undertaken by Ventnor since 2011 Over 42,000m drilled since April 2011 JORC Resource of 142,000t co
Slide 9: 4. Thaduna/Green Dragon (Cont)
4. Thaduna/Green Dragon (Cont) Thaduna Previously mined as open cut to 30m in 1960s, closed 1971 For personal use only Orebody Tabular, steeply dipping orebody Good width and geometry Suitable for open cut followed by underground Orebody shortens strike at depth, increases in grade Min
Slide 10: 4. Thaduna/Green Dragon
4. Thaduna/Green Dragon (Cont) For personal use only Resource 7.9Mt at 1.8% Cu and 3.7g/t Ag for 142Kt Cu and 945koz Ag 58% of resource in Indicated category Current JORC Resource to depth of 450m Averages 250t of Cu metal per vertical metre below open pit Resource Current drilling progr
Slide 11: 4. Thaduna/Green Dragon
4. Thaduna/Green Dragon (Cont) For personal use only Total Volume Ore Tonnes Grade Recovered Open pit production Source (m3) (t) (%) Copper (t) Production 3 year processing source Stockpiled ore Thaduna Open Pit 10,910,000 1,658,000 1.63 25,000 area Thaduna 1,000,000 2.11% 650,000 0.9% 0m 180m Two y
Slide 12: 4. Thaduna/Green Dragon
4. Thaduna/Green Dragon (Cont) For personal use only Total Volume Ore Tonnes Grade Recovered Open pit production Source (m3) (t) (%) Copper (t) Production area 3 year processing source Stockpiled ore Green Dragon Open Pit 6,120,000 1,107,000 1.29 13,000 Green Dragon 410,000 1.88% 690,000 0.9% Green
Slide 13: 5. Development Plan
5. Development Plan For personal use only Scoping Initial Open Cut operation for 3 years followed by CAPEX A$M Study Underground operation Results Viability of underground extension confirmed Processing plant 35 Minimum 10 year mine life Powerhouse 8 Average Production (LOM) of 15Ktpa Cu T
Slide 14: 5. Development Plan
5. Development Plan (Cont) For personal use only 14
Slide 15: 5. Development Plan
5. Development Plan (Cont) For personal use only Incomplete drilling 250 t Cu per vertical metre 15
Slide 16: 5. Development Plan (Cont)
5. Development Plan (Cont) Mine Thaduna Open cut pit down to 180m For personal use only Plan Underground from 200m to >450m Sound hanging wall and foot wall conditions Simple long hole stoping envisaged Expected underground development of 100 vertical metre per year >4% mineable grade
Slide 17: 5. Development Plan
5. Development Plan (Cont) For personal use only Processing Plant Operating Cost Total Cost Total A$ /year A$/ t milled A$/ Tonne Cu Labour 43% 6,523,680 13.05 725 Power 30% 4,535,681 9.07 504 Reagents 4% 476,675 0.95 53 Consumables 13% 1,934,260 3.87 215 Maintenance 9% 1,398,288 2.8 155 General & A
Slide 18: 5. Development Plan
5. Development Plan (Cont) For personal use only Yearly Production by Source Recovered Copper Tonnes Ore Source Yr1 Yr2 Yr3 Yr4 Yr5 Yr6 Yr7 Yr8 Yr9 Yr10 Thaduna 5,400 8,100 6,000 Green Dragon 300 900 5,800 Low grade stocks 1,400 Stockpiled ore 4,500 2,500 Underground ore 1,500 7,400 20,400 21,300 21
Slide 19: 5. Development Plan
5. Development Plan (Cont) For personal use only 2013 2014 Activity Mar Jun Sept Dec Mar Jun Sept Dec Scoping Study Deeper / In-fill Drilling JORC Resource Update Metallurgical Testwork JORC Reserve Bankable Feasibility Study Decision to Mine Offtake / Financing Construction Production 19
Slide 20: 6. Concentrate
6. Concentrate For personal use only Concentrate Ag As Bi Cu Fe K Mg Mn Ni P Pb S Ti Zn F Cl Assay Detection Limit 1 5 1 0.01 0.01 0.01 0.01 1 1 20 5 0.002 0.002 1 Units ppm ppm ppm % % % % ppm ppm ppm ppm % % ppm Sample 1 91 47 12 29.91 8.68 0.77 2.26 484 272 455 148 9.646 0.364 50 Sample 2 89 51 8
Slide 21: 7. Board and Management
7. Board and Management For personal use only Paul Boyatzis Over 25 years’ experience in the investment and equity markets and an extensive working knowledge of public companies. Non-Executive Chairman Current member of the Australian Institute of Company Directors, the Securities and Derivative
Slide 22: 8. Reasons to Invest
8. Reasons to Invest For personal use only High grade copper project Sufficient resource to support >8 year mining operation Scoping Study confirms technical and economic viability of project Project is highly profitable as standalone operation Highly deliverable Near term development 22