Asarian Energy Limited · TSX:ARN
Asarian Energy — Forsys Metals — Investor Presentation (October 2006)
32 slides from Asarian Energy's investor presentation, October 2006
Slide 1: Valencia Uranium Deposit Corporate Presentation
Valencia Uranium Deposit Corporate Presentation October 2006
Slide 2: Forward Looking Information
Forward Looking Information This presentation contains projections and forward looking information that involve various risks and uncertainties regarding future events. Such forward looking information can include without limitation statements based on current expectations involving a number of risk
Slide 3: What is Forsys?
What is Forsys? A Canadian company active in a commodity diverse Namibian exploration program for the last 5 years, with empowered relationships and partners Current Mission: to build an energy Company by developing the Valencia Uranium deposit
Slide 4: Corporate History
Corporate History • Westport formed in 2000 wins Sperrgebiet tender EPL 2797 • Sperrgebeit optioned to Cominco – expenditures >C$650,000 • Forsys buys Westport for 8m shares at $0.20 Oct 04 & July 05 • Omaruru gold licence awarded June 04 • Option agreements with Ongopolo for Ondundu and Elbe 04 • C
Slide 5: Corporate Structure
Corporate Structure •Shareholder Distribution •20% management •50% institutional •30% float •Dual listing TSX,V & Frankfurt •$25m cash fully diluted •No debt •Westport Resource - wholly owned Namibian exploration company
Slide 6: Key People
Key People • Canada – Duane Parnham, Chairman & CEO • 15 years of junior mining company equity financing – Wayne Isaacs, President • 20 years of compliance and regulation in capital markets – Mark Frewin, Director • International counsel for First Quantum Minerals specializing in mining practices an
Slide 7: Namibian Infrastructure
Namibian Infrastructure • Permanent Staff • Full time dedicated professionals in Canada and Namibia offices • Exploration Office Opened in March 2004 • professional offices, modern communications, secured sample storage, core logging area, meeting and work rooms, administration • Capital Investment
Slide 8: Why Uranium?
Why Uranium? • Global supply deficits – Limited new discoveries – Reserve replacement issues – Favourable supply and demand fundamentals • Continued price appreciation to economic production levels - US$55.75/lb (Source: www.uxc.com) • Analyst forecast long term Uranium prices US$47/lb (National Ban
Slide 9: Real Uranium Prices Still Below Past Peaks
Real Uranium Prices Still Below Past Peaks $110 Inflation-adjusted 100 Nominal 80 $75 60 $53.25 40 20 1950 1960 1970 1980 1990 2000 Source: CIBC World Markets – Monthly Indicators September 7, 2006
Slide 10: U3O8 Historical Price Projection
U3O8 Historical Price Projection Source: Gold Letter International, August 13, 2005
Slide 11: World Uranium Production versus Requirements
World Uranium Production versus Requirements (1947 – 2025) Growing Supply Deficit Source: World Nuclear Association
Slide 12: Why Uranium … in Namibia?
Why Uranium …in Namibia? • Proven production in Rössing • Market success in Paladin • Resources in Valencia • Progressive mining environment and support • Mining act comparable to Canada • Existing infrastructure • Short production lead-time • Obtained BBB- Sovereign Debt rating (Dec. 8, 2005)
Slide 13: Proven Production: Rössing Uranium Mine
Proven Production: Rössing Uranium Mine (Rio Tinto) • World class opencast U3O8 mine accounting for ~7.5% world supply • >140M lbs U3O8 produced from a low grade (0.3 kg/t) uninterrupted for the past 30 years • Uranium hosted in Granite (Alaskite) with a 5% betafite (non recoverable U mineral) conte
Slide 14: Next Uranium Producer: Langer Heinrich Deposit
Next Uranium Producer: Langer Heinrich Deposit • 100 % owned by Paladin Res • Calcrete-hosted secondary uranium deposit • Second Namibian uranium producer 2006, mine construction 45% complete • 37% overall increase in resource • Capex at US$92M • Operating cost avg US$14.18/lb • 17 year mine life at
Slide 15: Future Production: Valencia Uranium Deposit
Future Production: Valencia Uranium Deposit • Former Gold Fields project dropped in 1986 due to low U prices and company pulling out of Namibia • Preliminary open pit mine design criteria & production completed by Gold Fields • Inferred Resource* 21m lbs U308 @ 0.20 kg/t • In ground asset value of >
Slide 16: Project History
Project History •Gold Fields spent >US5 million 1973- 1988 •Historical data set plus >22,600 m of drill core stored at Valencia • Project idled since 1986 due to low U prices • Forsys acquired project Nov 2005 for C$3.8 m • Camp re-established and development program underway
Slide 17: Valencia Uranium Deposit
Valencia Uranium Deposit Airborne geophysics, Uranium on Landsat
Slide 18: Valencia Ground U Survey
Valencia Ground U Survey • Ground spectrometer survey confirms Valencia Main Zone (+21M lbs U308) • 3000m drill program focused on Main Valencia Zone • Deposit expansion potential identified Rossing east and on strike to main zone Paladin • 2300m drill program initiated on East Zone East Zone Main Z
Slide 19: Depth Slice – Grade in Granite
Depth Slice – Grade in Granite Surface Uranium (eppm) rl ~ 720 masl Max 5.1 kg/t N 1.2 k ~ 50 m m 50 m 1.2 km ~ 100 m ~ 150m ~ 200 m Each depth slice corresponds to DDH intersections of granite allowing allowing a 50 m extrapolation and colour is indicating average Uranium assay values (kg/t).
Slide 20: NI 43-101 Inferred Resources
NI 43-101 Inferred Resources Valencia Uranium Deposit (Snowden 2005) Cut off Tonne Grade Calculated Pounds (U3O8 kg/t) (millions) (kg/t) (%) (U3O8) 0.10 117 0.16 0.016 41.1 million 0.15 49 0.20 0.020 21.6 million 0.17 32 0.22 0.022 15.5 million 0.20 18 0.25 0.025 9.9 million
Slide 21: Cross-Section Main Zone
Cross-Section Main Zone Historical drill data missing - core re-sampled
Slide 22: Cross-Section Main Zone
Cross-Section Main Zone Historical drill data – core re-sampled
Slide 23: Typical Drill Log
Typical Drill Log Strip Lag ll Hale VA2G-002 Dri coRP
Slide 24: Field Testing for Uranium
anu for Ur U tin rr — ww) = 7 EE Ge 2 = METALS cORP
Slide 25: Comparison of Namibian Uranium Deposits
Comparison of Namibian Uranium Deposits Rössing Langer Heinrich Trekkopje Valencia 68% Rio Tinto 90% Forsys Metals1 Ownership 100 % Paladin UraMin 32% Others 10% Ongopolo Historical 12,702 t U3O8 39,500 t* U3O8 12,760 t U3O8 Resource unknown 0.36 kg/t 0.1 kg/t 0.25 kg/t Grade 2 (Linning 1976) (Labus
Slide 26: Upside Market Potential
Upside Market Potential P aladin Resources M arket Cap. $1,802 vs. Stage of Development $1,602 $1,402 P r e-P r oducti on $1,202 M illio n s $1,002 $802 B ankabl e Feasi bi l i ty $602 For sy s C ur r e nt M a r k e t C a p $402 $202 P r e-Feasi bi l i ty $2 Jan 2003 April 2004 April 2005 May 2006
Slide 27: Valencia Development Objectives
Valencia Development Objectives 2005 2006 2007 2008 2009 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Valencia Acquisition / (CDN$3. Closing 8m) Core Drilling / (CDN$1.5m) Analysis RC Drilling / Metallurical (CDN$ 1-2m) (approx Revised Resource Calculation CDN$ 3.8m) Bankable Feasibil
Slide 28: Capital Structure
Capital Structure S h a re s E x . P ric e C ash S h a re s I/O 4 6 ,8 8 4 ,5 6 8 E lb e O p tio n 3 0 0 ,0 0 0 T re a s u ry $ 1 0 ,3 0 0 ,0 0 0 W a rra n ts J u l-0 7 3 ,0 0 0 ,0 0 0 $ 0 .3 7 5 $ 1 ,1 2 5 ,0 0 0 J u l-0 7 1 ,4 7 8 ,0 0 0 $ 0 .4 5 $ 6 6 5 ,1 0 0 O c t-0 7 4 ,4 1 2 ,4 5 7 $ 1 .5 0 $
Slide 29: Valencia Summary
Valencia Summary • Advanced stage uranium deposit +21M lbs located in stable country friendly to uranium mining • Historical work by Goldfields Namibia 1973-1988 • Major development program underway • Experienced managerial and technical team • 5 year country focus: strong local senior partner and g
Slide 30: Forsys Investor Highlights
Forsys Investor Highlights • Forsys is strategically positioned and exposes the investor to the energy sector, which is enjoying very positive long-term fundamentals and growth potential; • 90% ownership in the 21+ million lbs U3O8 Valencia Uranium Deposit located in Namibia Africa; • Valencia locat
Slide 31: Contact Information
Contact Information Corporate Head Office Exchange Tower 130 King Street West Suite 3670 PO Box 13 Toronto, Ontario Canada M5X 1A9 Tel: 01 416 601 1286 Fax: 01 416 601 6865 Duane Parnham, Chairman CEO Exploration Office 63 Calcium Street Prosperita, Windhoek Namibia Tel: +264 61 219 462 Fax: +264 61
Slide 32: Valencia Uranium Deposit
Valencia Uranium Deposit Listings: Toronto Exchange “FSY”, TSX Venture Frankfurt Exchange “F2T”, Deutsche Boerse Websites: www.forsysmetals.com www.forsysmetals.de