Sunstone Metals Ltd · ASX:STM
Sunstone Metals — Avalon Minerals — Investor Presentation (April 2012)
31 slides from Sunstone Metals's investor presentation, Apr 24, 2012
Slide 1: ASX Media Release: Presentation
ASX / Media Release 24 April 2012 PRESENTATION Attached is an investor presentation by the Company’s Managing Director, Mr Jeremy Read, titled ‘Viscaria Copper Project and Regional Exploration’. For further information please visit www.avalonminerals.com.au or contact: Mr Jeremy Read Managing Direct
Slide 2: Viscaria Copper Project & Regional Exploration
Viscaria Copper Project & Regional Exploration 24 April 2012
Slide 3: Avalon Minerals Limited
Avalon Minerals Limited Scandinavian focused Copper Exploration and Mineral Development Company Assets • Viscaria Copper Project • Viscaria Regional Exploration • Adak Copper-Zinc Project
Slide 4: Company Snapshot
Company Snapshot Capital Structure Share Register 290,873,602 shares Abu Sahid Bin Mohamed 17.1% Current Share Price: A$0.095 Siew Mun Chuang 9.5% Market Capitalisation circa A$27.2M Galena Fund 7.3% Morgan Nominees 3.5% Cash Position: A$2.9M Brookman Resources 3.4% Head Office – Brisbane, Australia
Slide 5: Avalon's Objectives
Avalon’s Objectives Minimum of 500% increase to shareholder value within a 2-4 year time period Double currently defined Mineral Resources • Focus activities between Scoping Study and completion of BFS • Demonstrate viability of project • Permit Project for development • Assess development options
Slide 6: Well Credentialed Management Team
Well Credentialed Management Team Excellent recent track record of shareholder value creation Discovery Metals Limited 400% return (May 2006 to July 2010) - now increased to +700%) ASX Top 200 Company Meridian Minerals Limited Market cap from AU$1.5M (April 2009) to $68M (Dec 2011) Captured 700% ret
Slide 7: Value Creation Example - Discovery Metals
Value Creation Example - Discovery Metals 1.6 Discovery Metals Limited 1.4 Boseto Mining Licence Approved 1.2 Completion of Boseto BFS and ML Grant 1. Share Price Increase of 700% since initial Mineral Resource defined 2. 300% share price increase by doubling Mineral Resource 1 Share Price (A$) 0.8
Slide 8: Viscaria - High Grade Copper Resources
Viscaria - High Grade Copper Resources 9.4Mt @ 2.7% Cu within 44.7Mt @ 1.2% Cu* Global Average is 0.7% Cu Major potential to expand high grade resources via brownfields drilling Largely untapped regional exploration potential * See Tables 1, 2 & 3 in Appendix For Mineral Resource Classification
Slide 9: Excellent Infrastructure and Mining Regulation
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 Institute 2011-2012) Western
Slide 10: Previous Production – Viscaria Copper Mine
Previous Production – Viscaria Copper Mine World-class Iron Oxide Copper Gold (IOCG) and Iron province Discovered in the 1970’s 15 years historical production to 1997 (Outokumpu) 12.5Mt of 2.3% Cu & 2% Zn Simplified Geology of the central Kiruna area, with location of the Viscaria and Pahtohavare de
Slide 11: Multiple Mineral Resources
Multiple Mineral Resources D Zone 3.2Mt @ 1.2% Cu A Zone 21.6Mt @ 1.5% Cu Including 7.7Mt @ 3.1% Cu B Zone 6.5Mt @ 1.1% Cu See Tables 1, 2 & 3 in Appendix For Mineral Resource Classification
Slide 12: Exploration Strategy
Exploration Strategy Understand controls on High Grade (>2% Cu) mineralisation Scoping Study to determine NPV of combined Open Pit and Underground Mining Operation Drill intensive program at A, B and D Zones to increase High Grade Mineral Resources by 200% Fully permit project including EIA Test sel
Slide 13: Viscaria A Zone
Viscaria A Zone A Zone Open Pit A Zone Underground • Above historical Viscaria Copper Mine • Historical production of 12.5Mt • 2.5mt @ 1.4% Cu Mining Reserve* @ 2.7% Cu • Quality concentrate – 28% Cu, 3% Zn, • 30km of decline and 45g/t Ag, 3g/t Au development • Low contaminants • Remaining High Grad
Slide 14: Viscaria D Zone
Viscaria D Zone Wider and higher grade copper intersections than outlined from PFS resource model: 20m @ 1.1% Cu and 21% Fe 28m @ 1.9% Cu, incl. 18m @ 2.1% Cu 43m @ 1.4% Cu and 31% Fe Drilling to follow high grade shoots down plunge
Slide 15: Regional Exploration Targets
Regional Exploration Targets Viscaria Regional Exploration 720km² tenure, 100km of cumulative strike Targets Criteria: VMS deposits of + 20Mt @ 2% Cu IOCG deposits of +200Mt Key targets: Tjärro Anomalous Cu and Fe, 7km long target Geologically similar to Viscaria D Zone Consistent Cu geochemical ano
Slide 16: Drill Program Currently in Progress
Drill Program Currently in Progress • 2000m five hole drill program testing for extensions of high-grade copper mineralisation at the A and D Zone Mineral Resources • Following up results from A Zone such as: – 7.1m @ 3.5% Cu in hole D-7616 from 60.3m – 8.3m @ 3.1% Cu in hole D-7612 from 46.2m – 11.
Slide 17: Drill Program Currently in Progress
Drill Program Currently in Progress • Copper mineralisation intersected in drill hole VDD0125 from 451 – 468m (17m down-hole thickness) – Assays pending
Slide 18: Work Program Timeline 2012-2013
Work Program Timeline 2012-2013 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Initial Drill Program Scoping Study Open Pit/Underground Structural Geological Study Field Work to Prepare Regional Targets For Drilling Major Drill Program
Slide 19: Peer Comparison
Peer Comparison Australian Copper Pre-Producers With Off Shore Assets Average EV/Mineral Resource – US$0.08/lb Avalon Minerals EV/Mineral Resource – US$0.02/lb
Slide 20: Peer Comparison
Peer Comparison Avalon Minerals Altona Project Viscaria Outokumpu Location Sweden Finland Stage Advanced Exploration Production 9.4Mt @ 2.7% Cu within 8.4Mt @ 1.3% Cu & 0.7 Mineral Resource 44.7Mt @ 1.2% Cu g/t Au Mineralogy Sulphide Sulphide Open Pit and Mining Method Underground Underground 0.55Mt
Slide 21: 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 • Scoping study on NPV of combined open pit underground mining operation • Fully permit project Sweden 7th best min
Slide 22: Contact
Contact Jeremy Read jeremy.read@avalonminerals.com.au Mobile: +61 409 484 322 ASX Code: AVI www.avalonminerals.com.au
Slide 23: Appendix
APPENDIX rN minerals Itd
Slide 24: Table One – A Zone Mineral Resources
Table One – A Zone Mineral Resources
Slide 25: Table Two – B Zone Mineral Resources
Table Two – B Zone Mineral Resources
Slide 26: Table Three – D Zone Mineral Resources
Table Three – D Zone Mineral Resources
Slide 27: Competent Person's Statement
Competent Person’s Statement Competent Persons Statement The information in this report that relates to Mineral Resources and exploration targets is based upon information reviewed by Mr Jeremy Read BSc (Hons) who is a Member of the Australasian Institute of Mining and Metallurgy. Mr Read is a full
Slide 28: Managing Director Jeremy Read
Managing Director Jeremy Read 23 year career in mineral exploration and project development in Australia, Africa, India and Indonesia Founding Managing Director of Discovery Metals Secured Boseto Copper Project in NW Botswana, Built exploration team and financed PFS and BFS studies, Listed Discovery
Slide 29: Exploration Manager Dr Quinton Hills
Exploration Manager Dr Quinton Hills Previous Experience Exploration Manager, Meridian Minerals Limited – Lennard Shelf Project (Kimberley, WA), Thomson Fold Belt Project (NSW), Lachlan Fold Belt Project (NSW) Senior Geologist, Discovery Metals Limited – Boseto Copper Project (Botswana) and Dikoloti
Slide 30: Key Management Personnel
Key Management Personnel Management Team has a demonstrated track record in the following: Unlocking value in projects through brownfield exploration Significant growth of known Mineral Resources by stepping outside of the known exploration paradigm Understanding the geological structure of deposits
Slide 31: Adak Copper / Zinc Project
Adak Copper / Zinc Project Discovered in 1940’s in Skelleftea Base Metals Belt • Over 80 VMS zones - Cu, Zn, Pb + Au/Ag Historical production • 6.3Mt @ 2.0% Cu • 4.7Mt @ 0.9% Cu and 3.0% Zn Attractive exploration address • Dome structure with draped VMS deposits • Recent high grade discoveries, incl