Metals Exploration Plc · LSE:MTL
Metals Exploration — Shareholder Meeting (June 2012)
24 slides from Metals Exploration's shareholder meeting presentation, June 2012
Slide 1: Annual General Meeting - June 2012
ANNUAL GENERAL MEETING - June 2012
Slide 2: Important Notice
IMPORTANT NOTICE This presentation has been prepared by the management of Metals Exploration Plc for the benefit of the investing community including, brokers, fund managers, investors and analysts and not for the benefit of any particular person. The information is based on publically available inf
Slide 3: A Near Term Gold Producer
A NEAR TERM GOLD PRODUCER Philippine focussed exploration and development company Owns 100% of the Runruno Gold Project Early stage construction works commenced in December 2011 Project debt funding – terms agreed being documented Runruno is secured by a Financial or Technical Assistance A
Slide 4: Company Information
COMPANY INFORMATION KEY SHAREHOLDERS - % HOLDING (30 April 2012) SHARE CAPITAL Solomon Capital Limited 32.08% Issued ordinary shares 694,673,626 Baker Steel 22 79% 22.79% Unlisted options and warrants 31,285,000 Runruno Holdings Limited 15.26% Market Capitalisation (22 Feb 2012) £ 71 mil
Slide 5: Runruno Gold Project
RUNRUNO GOLD PROJECT Status: In development – early works commenced, Mine life: 10 3 years 10.3 Payable Production: 1,006,000 ozs Annual Production (aver.): 96,700 ozs (101,800 ozs Au years 1-5, 92,700 ozs Au years 6-10.3) Capital Cost: US$167.5m Cash Cost (Ave): US$ 477 / oz Au IRR : 42% post tax (
Slide 6: Construction Philosophy
CONSTRUCTION PHILOSOPHY Strong experienced owners team GMP – EPC execution ti philosophy hil h ffor hi highest h t risk i k mostt ttechnical h i l area – Process P Plant Pl t Appoint an Engineer / Constructor with demonstrated performance – Leighton Contractors Incentivise by sharing upside i.
Slide 7: Runruno Construction Timeline
RUNRUNO CONSTRUCTION TIMELINE Q4, 2011 H1, 2012 Q3, 2012 Q4, 2012 H1, 2013 H2, 2013 Q1, 2014 DMF Early works Project Sanction Construction Construction Construction Commissioning Infrastructure Finalise debt Process plant Commence mining Mining pre pre-strip strip Mining pre pre-strip s
Slide 8: Early Site Works
EARLY SITE WORKS Commenced December 2011 Program of work to support full construction activities Includes: • General site earthworks; • Processing plant pad earthworks; • Establishment E t bli h t off site it roads; d • Erection of construction camp; • Installation of construction power; • Con
Slide 9: Processing Plant Pad
PROCESSING PLANT PAD metal Sration TOWARDS PROOUCTION
Slide 10: Process Plant Contract
PROCESS PLANT CONTRACT Letter of Intent (LOI) issued to Leighton Contractors for the design and construction of the processing plant on a Engineering and Construct contract and a Procurement contract basis for a Guaranteed Maximum Price (GMP) of US$95.1 US$95 1 million The GMP prices is to be re
Slide 11: Camp Site and Batch Plant Area
CAMP SITE and BATCH PLANT AREA 11
Slide 12: Main Access Road and Pit Access
MAIN ACCESS ROAD and PIT ACCESS 12
Slide 13: Regional Location
REGIONAL LOCATION Airfield – Bagabag airfield 5 kms north of Solano •Solano Road – upgrade allowed along parts of the road. Currently passable all year. •Bayombong “Project Project is well served by existing infrastructure.” Power supply – switch yard in Bayombong will be the origin for the new 69Kv
Slide 14: Resources and Reserves
RESOURCES AND RESERVES March 2011 Resource & Reserve Statement Ore Gold Molybdenum Reserve Category Mt g/t M Oz ppm M lbs Proven 10.2 1.90 0.62 616 13.9 Probable 4.8 1.77 0.27 414 4.4 2P RReserves 1 0 15.0 18 1.85 0 90 0.90 603 18 3 18.3 Additional Inferred 2.9 1.73 0.16 258 1.7 Resource in-pit Ore
Slide 15: Project Description
PROJECT DESCRIPTION Five key components: Mine Open Pit and Run of Mine (ROM) Pad Process Plant facility y consisting g of conventional crushing, grinding, flotation, along with BIOX® and gravity recovery Tailings T ili St Storage F ilit (TSF): Facility (TSF) to t ensure materials t i l are pro
Slide 16: Mining
MINING Open pit area - 600m x 1,500m 1.75 1 75 Mtpa ore - transported by conveyor to the Process Plant 9.1 Mtpa overburden - used for the construction of the Tailings Storage Facility and in-pit backfill During D i th first the fi t three th years, waste t material t i l will ill be b used d
Slide 17: Gold Processing
GOLD PROCESSING Pressure Oxidation, & BIOX® processes tested Ore contains free and refractory gold BIOX® offers: and molybdenite Reduced Red ced capital intensity intensit Lower operating costs Gold circuit demonstrated by extensive Proven process testwork including 20t pilot plant Ease o
Slide 18: Molybdenum Opportunity
MOLYBDENUM OPPORTUNITY Molybdenite occurs at Runruno as very fine 10-20 µm grains with pyrite and silicate minerals Hydrometurgical H d t i l MoM recovery circuit i it in i development d l t – Electrometals El t t l Laboratory L b t Q Queensland l d Modular add-on to gold circuit Mo solubilise
Slide 19: Tailing Disposal
TAILING DISPOSAL Tailing Storage Facility (TSF) Permanent storage of treated tailings in valley adjacent to the Process Plant 2 year starter embankment established using pit pre strip pre-strip Dam lifted to final height during initial 3 years of production Designed to national and internati
Slide 20: Regional Exploration - Activities
REGIONAL EXPLORATION - ACTIVITIES Active systematic exploration underway Diamond drilling IP and resistivity survey Aeromagnetic survey Ground mapping Geochemistry Remote sensing Early drilling results encouraging Identification of Runruno styled mineralisation south of the pit Strong co
Slide 21: Southern Extension Area
SOUTHERN EXTENSION AREA Potential gold / molybdenum zone outlined south of the Runruno pit; • Flat dipping zone • Indicated grades 2-3 g/t Au • 8-12 m thick • +600m 600 llong, +200m 200 wide id • Terminated in the east by Malilibeg fault p to the west and south • Open • Underground potential • Int
Slide 22: Cross Sections Showing Mineralised Zone
CROSS SECTIONS SHOWING MINERALISED ZONE 22
Slide 23: Corporate Social Responsibility
CORPORATE SOCIAL RESPONSIBILITY Education & Training Scholarships and assistance Adopt a school programme Out of work youth skills training programmes Teachers salaries Mature age learning programmes Multiple award winner Health & Nutrition Provision of a professionally staffed clinic inclu
Slide 24: Corporate Social Responsibility
CORPORATE SOCIAL RESPONSIBILITY Environment Protection and Enhancement Environmental monitoring Slope stabilisation and rehabilitation of disturbed areas Forest regeneration Multiple award winner Communication Information and Education To shape desirable social opinion about the compan