Sunstone Metals Ltd · ASX:STM
Sunstone Metals — Avalon Minerals — Investor Presentation (August 2012)
29 slides from Sunstone Metals's investor presentation, Aug 15, 2012
Slide 1: ASX Announcement: Presentation Viscaria Copper Project
ASX: AVI ASX ANNOUNCEMENT 15 August 2012 PRESENTATION VISCARIA COPPER PROJECT Attached is an investor presentation by the Company’s Managing Director, Mr Jeremy Read, on the Viscaria Copper Project in Sweden. For further information please visit www.avalonminerals.com.au or contact Mr Jeremy Read -
Slide 2: Avalon Minerals Ltd
AVALON MINERALS LTD A MINERAL EXPLORATION & MINING PROJECT DEVELOPMENT COMPANY WITH A PORTFOLIO OF COPPER AND IRON ORE ASSETS IN NORTHERN SWEDEN 1
Slide 3: Avalon Minerals assets in northern Sweden
RUSSIA Narvik AVALON MINERALS Viscaria Cu-Fe Project Kiruna Kiruna Fe Mine Malmberget Fe Mine Aitik Cu Mine Norwegian Sea Assets Lulea FINLAND Viscaria Copper Project Skelleftea Ronnskar Cu-Pb smelter Umea Kokkola Zn smelter Ostersund NORWAY Gulf of Viscaria Regional SWEDEN Bothnia Exploration
Slide 4: Company Snapshot
COMPANY SNAPSHOT Capital Structure Share Register 330,873,602 shares Abu Sahid Bin Mohamed 15.85% Share Price: $0.08 $0 08 Siew Mun Chuang 9.06% 9 06% Market Capitalisation circa A26$M Galena Fund 6.42% JP Morgan Nom 4.75% 4 75% Top 10 holders 49% of share capital Brookman Resource
Slide 5: Avalon's Objectives
AVALON’S OBJECTIVES Minimum of 500% increase to shareholder value within a 2-4 year time period Double currentlyy defined high g ggrade copper pp Mineral Resources D Demonstrate t t viability i bilit off project j t through th h completion l ti off BFS Permit Project for development includin
Slide 6: Sweden - Excellent Infrastructure and Mining Regulation
SWEDEN - EXCELLENT INFRASTRUCTURE AND MINING REGULATION Infrastructure Railway • 4km from mining centre of Kiruna (pop. 23,000) Powerline • Nearby smelters Tenement • Rail – heavy haul • Ports – Narvik (ice free), Luleå • Power (3c/Kwatt hour) Mining Regulation • Sweden 7th Globally (Fraser Institut
Slide 7: Viscaria Copper Project
VISCARIA COPPER PROJECT A ZONE • 21.6Mt @ 1.5% Cu • Inc. 9.5Mt @ 2.7% Cu B ZONE B Zone • 19.7Mt @ 0.8% Cu A Zone D Zone D ZONE • 11.9Mt @ 0.6% Cu & 24% F Fe • Inc. 3.2Mt @ 1.2% Cu TOTAL • 53.8Mt @ 1.0% Cu See slides 25, 26 and 27 for the JORC Classification of the Mineral Resources 6
Slide 8: Previously Operated Viscaria Copper Mine (A Zone)
PREVIOUSLY OPERATED VISCARIA COPPER MINE (A ZONE) World-class Iron Oxide Copper Gold (IOCG) and Iron province Discovered in the 1970’s 15 years historical production from 1982 to 1997 (Outokumpu) Production of 12.5Mt of 2.3% Cu 7
Slide 9: Viscaria Copper Project
VISCARIA COPPER PROJECT A ZONE •21.6Mt @ 1.5% Cu B ZONE •19.7Mt @ 0.8% Cu 8
Slide 10: Viscaria Copper Project
VISCARIA COPPER PROJECT Tailings Dam (2 year capacity) Processing Plant Site Power Line Portal 9
Slide 11: Exploration Strategy
EXPLORATION STRATEGY Understand controls on High Grade (>2% Cu) mineralisation Scoping Study to determine NPV of combined Open Pit and g Underground Miningg Operation p Drill intensive pprogram g at A, D Zones to double High g Grade ((>2% Cu) Mineral Resources Fully permit project including
Slide 12: Successful Initial 2012 Drill Program
SUCCESSFUL INITIAL 2012 DRILL PROGRAM A Zone Extensional Drilling – 2 holes, 2 high grade intersections 11
Slide 13: Successful Initial 2012 Drill Program
SUCCESSFUL INITIAL 2012 DRILL PROGRAM D Zone Extensional Drilling Hole VDD0128 8.1m @ 2.2% CuEq* (1.5% Cu & 39.2% Fe) from 189.9m, including 5.1m @ 2.8% CuEq* (2.1% Cu & 42% Fe) 8.0m @ 2.1% CuEq* from 216.0m (1.5% Cu & 33% Fe) including 6.4m @ 2.4% CuEq* (1.8% Cu & 34.5% Fe) 68m @ 11.0% 0%
Slide 14: D Zone Open Pit
D ZONE OPEN PIT Wider and higher grade copper intersections than outlined from PFS resource model • 68m @ 1.0% CuEq (0.6% Cu & 28.2% Fe) • 19 8m @ 1.9% 19.8m 1 9% Cu • 38m @ 1.6% Cu Drilling to follow high grade shoots down plunge >2.5% Cu 1.5-2.5% Cu 500 500m 0.5-1.5 % Cu 13
Slide 15: Current Estimate of Value of Open Pit Resources
CURRENT ESTIMATE OF VALUE OF OPEN PIT RESOURCES Mineral Open Pit Mine Life Grade Strip Ratio Processing NPV Resource Tonnes (Years) (Eq Cu%) Rate (Mtpa) (US$M) (Mt) A Zone 2.8 1.9 1.2 7.8 1.5 54 D Zone 63 6.3 42 4.2 13 1.3 49 4.9 15 1.5 115 TOTAL 9.1 6.1 1.2 5.3 1.5 169 Assumptions 1. Cu Price – US$
Slide 16: Further Value Creation - D Zone Extension
FURTHER VALUE CREATION – D ZONE EXTENSION 300m STRIKE EXTENSION 35m DEPTH EXTENSION +$50M NPV 15
Slide 17: Further Value Creation - A Zone Mineralisation
FURTHER VALUE CREATION – A ZONE MINERALISATION $250 3.5% Cu $200 3.0% Cu 2.5% Cu sh Margiin ($M) $150 2.0% Cu 1.5% Cu 1 5% C $100 2.5Mt @ 2.5% Cu Cas $50 adds $80-100M $- $ Resource Mt 2.5Mt @ 2% Cu $(50) adds $40-50M 0.5 1.0 1.5 2.0 2.5 3.0 CLEAR PATHWAY TO ADDING $80-150M IN VALUE 16
Slide 18: Metal Production Scenario
METAL PRODUCTION SCENARIO A Zone Open Pit 500 000tpa @ 1.35% 500,000tpa 1 35% Cu 6,7500t of Cu in concentrate D Zone Z Open O Pit Pi 1,000,000tpa @ 0.5% Cu and 25% Fe 5,000t of Cu in concentrate 252,000t of Fe in concentrate Open Pit Copper Production 11,750t of Cu in concentrate U
Slide 19: Underground - Open Pit Scoping Study
UNDERGROUND – OPEN PIT SCOPING STUDY Refine estimate of open pit mining inventory by incorporating new drilling results at D Zone Finalise current estimate of underground mining inventory by estimating underground mineable material at A, B and D Zones D t i optimum Determine ti mining i i sche
Slide 20: Project Development Time Line
PROJECT DEVELOPMENT TIME LINE Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2012 2012 2013 2013 2013 2013 2014 2014 2014 2014 2015 2015 2015 2015 2016 2016 Initial Drill Program ✔ Scoping S i St Study d Open O Pit/Underground Major Drill Program to increase High g Grade Copper Resources Drill Prog
Slide 21: Regional Exploration Targets
REGIONAL EXPLORATION TARGETS Viscaria Regional Exploration • 720km² tenure, 100km of cumulative strike Heli-EM To Define Drill Targets • Preliminary data received • Final data and interpretation in Sept Priority Prospect - Tjärro Tj Tjarro • Anomalous Cu and Fe, 7km long target • Geologically
Slide 22: Heli-EM Targets Close to A and D Zone Resources
HELI-EM TARGETS CLOSE TO A AND D ZONE RESOURCES D ZONE A ZONE 1000m UNTESTED 21 EM TARGET
Slide 23: Strong News Flow
STRONG NEWS FLOW August Assay results for final D Zone drill hole Preliminary targets from Heli-EM Heli EM regional survey September D Zone Mineral Resource Upgrade Results of Underground / Open Pit Scoping Study Final results of Heli-EM Survey October A Zone Mineral Resource Upgra
Slide 24: Conclusions
CONCLUSIONS Viscaria Copper Project contains high grade Copper Mineral Resources (9.4Mt @ 2.7% Cu ) Objective is to create shareholder value by: • Doubling the >2% Cu Mineral Resources • Fully permit project • C Complete l t BFS • Implement combined open pit / underground mining operation Swed
Slide 25: Contact
CONTACT Jeremy Read jeremy read@avalonminerals com au jeremy.read@avalonminerals.com.au Mobile: +61 409 484 322 ASX Code: AVI www.avalonminerals.com.au 24
Slide 26: Classification of Mineral Resources - A Zone
CLASSIFICATION OF MINERAL RESOURCES – A ZONE 25
Slide 27: Classification of Mineral Resources - B Zone
CLASSIFICATION OF MINERAL RESOURCES – B ZONE 26
Slide 28: Classification of Mineral Resources - D Zone
CLASSIFICATION OF MINERAL RESOURCES – D ZONE 27
Slide 29: Additional Information and Attribution
ADDITIONAL INFORMATION AND ATTRIBUTION Copper Equivalent Formula • *% CuEq = % Cu + ((%Fe x Fe price US$/tonne x Fe recovery)/(Cu price US$/tonne x Cu recovery)) • Cu price US$/tonne = $7,163.00 (US$3.25/lb) • Cu Recovery = 90% • Fe price US$/tonne = $144.93 $144 93 (calculated from US$100 Net Price
Avalon Minerals — Investor Presentation (August 2012) on 6ix