Sunstone Metals Ltd · ASX:STM
Sunstone Metals — Avalon Minerals — Shareholder Meeting (November 2013)
19 slides from Sunstone Metals's shareholder meeting presentation, November 2013
Slide 1: Avalon Minerals Ltd - Viscaria Copper Project, Annual General Meeting
AVALON MINERALS LTD Viscaria Copper Project November 2013 Annual General Meeting
Slide 2: Avalon Minerals
AVALON MINERALS Narvik RUSSIA Kiruna Viscaria Cu-Fe Project Scandinavian focused copper Kiruna Fe Mine Malmberget Fe Mine exploration and mineral resource Norwegian Aitik Cu Mine development company Sea Lulea FINLAND Skelleftea Ronnskar Cu-Pb smelter Key Assets: Umea Kokkola Zn smelter • Viscaria Co
Slide 3: Sweden – Unique Investment Opportunity
SWEDEN – UNIQUE INVESTMENT OPPORTUNITY Low sovereign risk (Ranked 2nd in World) • Politically and economically stable • Favourable mining regulations Railway Highly Prospective/Under Explored Powerline • 1000 year mining history Tenement • Largest iron ore producer in Europe • A leading producer of
Slide 4: Viscaria Copper Project Mineral Resources
VISCARIA COPPER PROJECT MINERAL RESOURCES A ZONE 21.6Mt @ 1.5% Cu D Zone B ZONE 19.7Mt @ 0.8% Cu B Zone A Zone D ZONE 13.6Mt @ 1% Cu, 25.6Mt @ 26.3% Fe DISCOVERY ZONE 10.9Mt @ 0.3% Cu & 38.7% Fe TOTAL* 65.8Mt @ 1% Cu, Discovery 36.5Mt @ 30.3% Fe Zone *JORC Mineral Resource breakdown presented on pag
Slide 5: Viscaria Project Goals for 2013
VISCARIA PROJECT GOALS FOR 2013 Define Mineral Resources to support a Project NPV of +$300M – Increase A and D Zone Resources through drilling – Acquire the Discovery Zone Prospect Demonstrate project potential to be a mid-tier copper producer Begin DFS and the process to Permit Project for Developm
Slide 6: D Zone Prospect
D ZONE PROSPECT
Slide 7: 2012-2013 Assay Results – D Zone
2012-2013 ASSAY RESULTS – D ZONE NORTHWEST SOUTHEAST Depth (m) Interval VDD0159 VDD0134 VDD0062 VDD0068 VDD0060 Hole Cu % Fe % CuEq % (down hole m) 6.65 m @ 0.9% CuEq (0.6% Cu, 19.1% Fe) 50 50 50 50 39.38 m @ 0.5% CuEq (0.1% Cu, 24.0% Fe) VDD0128 8.1 1.5% 39.2% 2.1% 50 Hanging wall Basalt 46.1m @ 0.
Slide 8: Long Section – D Zone: High Grade Copper Continues at Depth
LONG SECTION – D ZONE 400m High Grade Copper Continues at Depth 8
Slide 9: 2013 D Zone Resource Increase
2013 D ZONE RESOURCE INCREASE Objective of resource extension drill program was to add: ~45kt of contained Cu and 1.6Mt of recoverable Fe at D Zone Cu Resource Tonnage (Mt) % Cu Metal Cu (t) Increase Cu (t) Oct 2012 5.4 0.9 48,000 88,000 June 2013 13.6 1.0 136,000 • 152% increase to the Cu resource
Slide 10: Scoping Study Final Result (July 2013)
SCOPING STUDY FINAL RESULT (JULY 2013) Open Pit Mining Scenario Viscaria Project including upgraded D Zone and Discovery Zone Tonnage and grade 33.7 Mt @ 0.61% Cu and 22% Fe Optimum Mining Rate 3.5 Mtpa Mine Life 10.3 years Pre-Production CAPEX US$180 M Includes US$20.6M pre-strip Sustaining CAPEX U
Slide 11: 2013 Achievement
2013 ACHIEVEMENT July 2013 Scoping Study October 2012 Parameter Unit (with D Zone upgrade and Scoping Study* Discovery Zone) Tonnage in open pit shells Mt 33.7 11.0 Mining Production Rate Mtpa 3.5 2.1 Mine Life Years 10.3 5.5 Annual Copper Production kt 15-22 9 Annual Fe Conc. Production kt ~1000 40
Slide 12: Path to Delivering on Viscaria Project Potential
PATH TO DELIVERING ON VISCARIA PROJECT POTENTIAL • Complete DFS • Drilling all mineral resources to JORC Indicated-Measured (~40,000m) • Various Studies: Mining, Metallurgy, Geotechnical, Hydrological, Social Impact • Detailed Design of Project Infrastructure • Complete Project Permitting • Get nort
Slide 13: Proposed Development Timeline (Subject to Funding)
PROPOSED DEVELOPMENT TIMELINE (Subject to Funding) 13
Slide 14: Potential Additional Value Opportunities
Potential Additional Value Opportunities • Scoping Study also indicated additional ~$40M of potential value from mineral resource at D Zone that could potentially be extracted by underground mining methods and still open at depth. • Regional exploration work has identified two excellent new prospect
Slide 15: Summary
SUMMARY Sweden is a Top 5 mining destination with excellent infrastructure Viscaria Project value has significantly increased with NPV now $373M up from $25M 12 months ago (Scoping Study). Clear path to deliver on Viscaria Project potential • Complete DFS • Get outstanding Mining Exploitation Conces
Slide 16: Appendix: Price of Iron Ore Pellets
APPENDIX: PRICE OF IRON ORE PELLETS US$150/t 16
Slide 17: Viscaria Project JORC Mineral Resources Breakdown
VISCARIA PROJECT JORC MINERAL RESOURCES BREAKDOWN Resource Name Classification Tonnes (t) Cu Grade (%) Cu Metal (t) Measured 14,439,000 1.7 239,687 Indicated 4,690,000 1.2 57,218 A Zone* Inferred 2,480,000 1.0 25,544 Subtotal 21,609,000 1.5 322,449 Measured 123,000 1.3 1,636 Indicated 4,118,000 0.7
Slide 18: Competent Persons Statement
Competent Persons Statement The information in this report that relates to Exploration Results is based upon information reviewed by Dr Quinton Hills who is a Member of the Australasian Institute of Mining and Metallurgy. Dr Hills is a full time employee of Avalon Minerals Ltd and has sufficient exp
Slide 19: Copper Equivalent Formula
Copper Equivalent Formula *% CuEq = % Cu + ((%Fe x Fe price US$/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 (calculated from US$100 Net Price per tonne of magnetite concentrate containing 69% Fe) F
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