Variscan Mines Limited · ASX:VAR
Variscan Mines — 121 Investor Conference, Cape Town (February 2020)
37 slides from Variscan Mines's conference presentation, Feb 4, 2020
Slide 1: Investor Presentation
Investor Presentation February 2020 121 Investor Conference Cape Town
Slide 2: Disclaimer
DISCLAIMER This document is for information purposes only. It is not a prospectus, disclosure document or offering document under Australian law or under any other law and does not constitute an offer or invitation to apply for securities. In particular, this presentation is not an offer of securiti
Slide 3: Variscan Mines
VARISCAN MINES
Slide 4: Overview of Variscan Mines (ASX:VAR)
OVERVIEW OF VARISCAN MINES (ASX:VAR) VARISCAN MINES IS A GROWTH ORIENTATED NATURAL RESOURCES COMPANY FOCUSED ON THE ACQUISITION, EXPLORATION AND DEVELOPMENT OF HIGH-QUALITY STRATEGIC MINERAL PROJECTS. Strategic portfolio Growth of high impact base Opportunities LEADERSHIP TEAM metal projects Dr. Foo
Slide 5: High Impact Portfolio of Assets
HIGH IMPACT PORTFOLIO OF ASSETS Variscan Mines Limited ASX:VAR (Australia) 100% 100% 10.4% 15% Thompson Resources Novales-Udias Project Guajaraz Project Rosario Project (Spain) (Spain) (Chile) ASX:TMZ (Australia) § Priority #1 Project § High quality brown-field § Grant of Earn-In Right to § Focused
Slide 6: Strategically Located Spanish Zinc Projects
STRATEGICALLY LOCATED SPANISH ZINC PROJECTS NOVALES-UDIAS § Located in the heart of the prolific Basque-Cantabrian Basin § Reocín and surrounding area is one of the premier Zinc- Lead mining fields in Europe § Close to Santander with excellent infrastructure GUAJARAZ § Located close to Toledo § Form
Slide 7: Historic Mining Region
HISTORIC MINING REGION
Slide 8: Cantabria Hosts Mineral Deposits of European Significance
CANTABRIA HOSTS MINERAL DEPOSITS OF EUROPEAN SIGNIFICANCE | ASX:VAR Source: BRGM; Euromines 8
Slide 9: Zinc Deposits & Geology in Cantabria
ZINC DEPOSITS & GEOLOGY IN CANTABRIA | ASX:VAR Source: José Antonio Alonso López 9
Slide 10: Global Distribution of Zinc-Lead Deposits (MVT Style)
GLOBAL DISTRIBUTION OF ZINC-LEAD DEPOSITS (MVT STYLE) | ASX:VAR Source: USGS 10
Slide 11: Reocín Is One of the Largest MVT Deposits Globally, Ever
REOCÍN IS ONE OF THE LARGEST MVT DEPOSITS GLOBALLY, EVER BENCHMARKING 113 MVT DEPOSITS & 10 DISTRICTS: GRADE/TONNAGE CURVES § Reocín is <10km from Novales § Both are situated in the Basque-Cantabrian Basin § Diagonal line represents tonnage of Zn and Pb metal | ASX:VAR Source: USGS 11
Slide 12: Novales Mine in Close Proximity to World Class Reocín Mine
NOVALES MINE IN CLOSE PROXIMITY TO WORLD CLASS REOCÍN MINE | ASX:VAR Source: Google Maps; Variscan Mines 12
Slide 13: Zinc Price Performance (1960-2019)
ZINC PRICE PERFORMANCE (1960-2019) CURRENT PRICE ENVIRONMENT OFFERS 2-3x UPSIDE TO THE PREVAILING PRICES AT THE TIME OF MINE CLOSURE 5000.00 4500.00 4000.00 3500.00 3000.00 $/mt 2500.00 2000.00 Current prices look favourable 1500.00 on historical basis 1000.00 2x & 3x higher than prices at 500.00 ti
Slide 14: Future Opportunities
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Slide 15: Novales-Udias: 68.3km2 of Contiguous Tenement Holding
NOVALES-UDIAS: 68.3km2 OF CONTIGUOUS TENEMENT HOLDING EXPLORATION & MINING CONCESSIONS ALREADY GRANTED* 55.8km2 Granted Exploration Concession, initial 3yr term, extendable by 3yrs 12.5km2 Granted Mining Concessions 18yrs to run 1k m | ASX:VAR * See ASX Announcement 29 July 2019 15
Slide 16: Novales-Udias: Significant Regional Geochemistry Anomalies
NOVALES-UDIAS: SIGNFICANT REGIONAL GEOCHEMISTRY ANOMALIES* | ASX:VAR * See ASX Announcement 06 November 2019 16
Slide 17: Novales-Udias: Recent Field Work on High Priority Targets
NOVALES-UDIAS: RECENT FIELD WORK ON HIGH PRIORITY TARGETS* HIGH-GRADE ROCK CHIP SAMPLES § Assay results of targeted samples taken from within the underground Novales Mine recorded: § 31.83% Zn and 62.3% Pb § Assay results of samples taken over the licence area recorded: § 33.16% Zn and 12.25% Pb at
Slide 18: Significant Historic Surface Drilling Database Collated
SIGNIFICANT HISTORIC SURFACE DRILLING DATABASE COLLATED* 102 SURFACE DRILL HOLES FOR +18,870M ACROSS THE NOVALES & BUENAHORA LICENCES § Significant high-grade zinc results at 4 distinct prospect areas: § Novales – San Jose: § 21.00m @ 5.40% Zn from 108.00m, including 6.00m @ 21.00% Zn § Novales – An
Slide 19: Novales-San Jose Mine: High Grade Historic Drilling Data
NOVALES-SAN JOSE MINE: HIGH GRADE HISTORIC DRILLING DATA* | ASX:VAR * See ASX Announcement 03 February 2020 19
Slide 20: Udias: High Grade Historic Drilling Results
UDIAS: HIGH GRADE HISTORIC DRILLING RESULTS* | ASX:VAR * See ASX Announcement 03 February 2020 20
Slide 21: Novales-Udias: Making Early Progress Quickly
NOVALES-UDIAS: MAKING EARLY PROGRESS QUICKLY WHAT WE’VE ACHIEVED SO FAR… ü Identified & executed transformational acquisition ü Successful capital raise attracting high-quality investors Repurchase of Hispanibal Option & Co-Operation ü Agreement Technical Memorandum with School of Mines, University
Slide 22: Novales-Udias: Plan to Maintain Momentum to Maiden Drilling
NOVALES-UDIAS: PLAN TO MAINTAIN MOMENTUM TO MAIDEN DRILLING WHAT WE’RE PLANNING TO DO…NEAR TERM…. ü Historic surface drilling data published ü Historic underground drilling data published Site works commenced establish safety and security ü of the Novales Mine site Synthesiation of historic and new
Slide 23: Next Steps & Opportunities for Immediate-Term Results
NEXT STEPS & OPPORTUNITIES FOR IMMEDIATE-TERM RESULTS ADDITIONAL MULTIPLE PROJECTS NEAR TERM RESOURCE We continue to be agile and alert to additional PRODUCTION TARGETS value–accretive projects POSSIBILITY Both Toledo and Cantabria that are complementary have the right rocks to yield POTENTIAL The C
Slide 24: ESG
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Slide 25: We Respect the Local Environment
WE RESPECT THE LOCAL ENVIRONMENT SEEKING TO MINIMISE OUR IMPACT § Careful use of exploration techniques & technologies § Understanding local flora & fauna § Conduct Environment Impact Assessment in due course § Restoration of areas in which we conduct our activities § Care & respect in everything th
Slide 26: Open, Transparent Engagement with Local Leaders
OPEN, TRANSPARENT ENGAGEMENT WITH LOCAL LEADERS The President of Cantabria The Mayor of Alfoz de Lloredo Miguel Ángel Revilla Enrique Bretones Palencia § The Mayor of Ruiloba § The Mayor of Alfoz de Lloredo § The Mayor of Udías § The Mayor of Comillas | ASX:VAR 26
Slide 27: Zinc Mining Welcomed by the Government of Cantabria
ZINC MINING WELCOMED BY THE GOVERNMENT OF CANTABRIA ‘CHALLENGES & OPPORTUNITIES OF ZINC IN CANTABRIA’ MARCH 2019 The President of Cantabria, Miguel Ángel Revilla, commented: §that if the presence of sufficient material is confirmed, Cantabria will once again have mining activity which, in his opinio
Slide 28: Building Collaborative Relationships with Local Partners
BUILDING COLLABORATIVE RELATIONSHIPS WITH LOCAL PARTNERS LONG-TERM COMMITMENT & KNOWLEDGE TRANSFER § Signed Technical Memorandum and a Cooperation Agreement* with the University of Cantabria in Torrelavega § Commercial terms to collate, digitise and analyse the relevant information contained within
Slide 29: Supportive Local Spanish Partner & Shareholder
SUPPORTIVE LOCAL SPANISH PARTNER & SHAREHOLDER § Aníbal Group is owned by the Fernández-Sampedro family. Range of business activities including haulage, excavation and ground works, public and private construction works, road maintenance, rental and sale of industrial machinery, to aggregate mining
Slide 30: Zinc
ZINC
Slide 31: Zinc: An Essential Metal for Everyday Life
ZINC: AN ESSENTIAL METAL FOR EVERYDAY LIFE | ASX:VAR 31
Slide 32: Zinc: A Metal for a Greener Future
ZINC: A METAL FOR A GREENER FUTURE UNSUNG HERO OF THE CONSTRUCTION INDUSTRY BATTERY & ENERGY REVOLUTION ü Drive towards sustainable construction ü Zinc is rust and corrosion-resistant, weatherproof, ultra violet light proof and even earthquake proof à decades of service with virtually no degradation
Slide 33: Zinc: Contributing to the Circular Economy
ZINC: CONTRIBUTING TO THE CIRCULAR ECONOMY | ASX:VAR Source: International Zinc Association 33
Slide 34: Zinc: Positive Impact Due to New Technologies
ZINC: POSITIVE IMPACT DUE TO NEW TECHNOLOGIES | ASX:VAR Source: Rio Tinto 34
Slide 35: Zinc: Key Trends
ZINC: KEY TRENDS FALLING TOTAL TRACKABLE ZINC STOCKS FALLING CHINESE DOMESTIC ZINC STOCKS | ASX:VAR Source: Citi Group Research; International Zinc Association 35
Slide 36: Zinc Production in Spain (1999-2017)
ZINC PRODUCTION IN SPAIN (1999-2017) 250000 200000 150000 t Reocín closed in 2003 100000 50000 0 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 | ASX:VAR Source: Euromines 36
Slide 37: ASX:VAR
| ASX:VAR 37
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