Norsemont Mining Inc. · CSE:NOM
Norsemont Mining — Investor Presentation (October 2009)
39 slides from Norsemont Mining's investor presentation, October 2009
Slide 1: Constancia Copper Project
Constancia Copper Project TSX: NOM Constancia Global Resource 4 Billion lbs Cu
Slide 2: Executive Summary
Executive Summary Premier independent South American copper project Market capitalisation ~ C$180M (~US$165M) 100% interest in Constancia Project (Titled 23,146 ha) 100% ownership of ~4,100 ha private surface rights Mineral Resource 392.5 million tonnes (Measured and Indicated Resources) 48.4 millio
Slide 3: History
History Feb 2005: Option agreement with Rio Tinto to acquire up to 70% in Constancia Nov 2007: Agreed to acquire Mitsui Mining’s 30% interest – final transfer June 30, 2009 Dec 2007: Scoping Study completed Jan 2008: Exercised Rio Tinto option - 100% ownership Sept 2009: Definitive Feasibility Study
Slide 4: Capital Structure
Capital Structure Shares issued: 70 million 80% TSX Composite Index 60% Fully diluted: 107.3 million S&P/TSX Global Mining 40% S&P/TSX Small Cap Relative performance Copper Price Share price: C$2.58 (Hi/Lo C$3.05/C$1.07) 20% Norsemont 0% Market cap: C$180m ($165m) -20% -40% Cash: C$12.6m ($11.7m) -6
Slide 5: Norsemont Directors
Norsemont Directors Constancia George Bell, Chairman (Canada) Patrick Evans, CEO, Director Bob Baxter, President/COO, Director Robert Parsons, Director (USA) Malcolm Siverns, Director (Canada) Brian Kerzner, Director (Canada) Augusto Baertl, Director (Peru) Ian Hume, Director (Australia) TSX: NOM 5
Slide 6: Norsemont Management
Norsemont Management Constancia Patrick Evans, CEO Bob Baxter, President and COO Chris Reynolds, CFO Max Pinsky, Legal and Corporate Secretary Norsemont Peru: Sean Spraggett, VP Engineering Gaston Loyola, VP Exploration Carol Fries, VP Social & Environmental Katty Vargas, Administration Manager TSX:
Slide 7: Strategic Location
Strategic Location Xstrata 860 Mt @ 0.93% Cu Inferred Resource Mitsui Pre-Feasibility Study Xstrata 600km southeast 120,000 tpa of Cu of Lima production QUECHUA PROJECT 334km by road to Arequipa TSX: NOM Proposed Xstrata Transportation Line -------- 7
Slide 8: Infrastructure
Infrastructure Matarani port 120km from Arequipa by highway Within 60km of railroad Three perennial rivers 70 km from exisiting 138kV Tintaya substation (plans to upgrade to 220kV by 2012); Capex $25m Access road: 83km, Capex $19m to upgrade Skilled and unskilled labour nearby TSX: NOM 8
Slide 9: Constancia Titles
Constancia Titles Constancia 100% titled mining concessions over 22,516 Ha 100% private land title over 4,097 Ha TSX: NOM 9
Slide 10: Geology
Geology Located in the Yauri-Andahuaylas metallogenic belt, which hosts several unexploited porphyry deposits (Antapaccay, Quechua, Los Chancas) and copper skarn deposits (Tintaya and Katanga mines, Las Bambas project) Topography: moderate relief with shallow glacial valleys and low rolling hills No
Slide 11: Constancia Resource
Constancia Resource 43-101 Resource Statement GDR Minproc (Sept 09) Grade Contained Category Mt Cu (%) Mo (%) Ag (g/t) Au (g/t) Cu (mlb (mlb) mlb) Mo (mlb) Ag (koz) koz) Au (koz) koz) Cu- Cu-Eq (mlb) mlb) (1) Reserves Proven 161.8 0.45 0.012 3.68 0.05 1,605 43 19,130 260 2,102 Probable 115.6 0.4 0.0
Slide 12: Definitive Feasibility Study
Definitive Feasibility Study Constancia Resource Open Pit TMM 626.8 mt Plant and Processing max throughput 76mt, 38’ SAG and 2 x 24’ ball mills (34.5 MW) Tailing Management Facility 277 mt dry Mine Waste Dump 295 mt PAG Power demand 90 MW average continuous 75 MW Operations camp for 400 TSX: NOM Gen
Slide 13: Production
Production Copper LOM average annual production: 150mlb contained Cu; recovery 88%; grade 28%; Ag credit 1.5mozpa Molybdenum LOM average annual production: 1.2mlb contained Mo; recovery 55%; grade 40% Production profile 350 300 Cu-Eq) 250 Production (mlb Cu 200 150 100 50 0 1 2 3 4 5 6 7 8 9 10 11 1
Slide 14: Mining and Processing
Mining and Processing Low-cost open pit mine ($1.19/t mined) Large-scale bulk mining - conventional flowsheet Strip ratio: 1.26 Life of mine: 15 years Nominal 50,000tpd sulphide concentrator plant producing high-grade commercial concentrate of copper and molybdenum. Throughput rates vary depending o
Slide 15: DFS Economics
DFS Economics Commodity Price Scenario Low Medium High NPV (5%) $m 496.8 731.9 1,277.5 NPV (8%) $m 303.6 494.2 931.8 IRR % 15.5 19.4 26.9 Payback years 4 3 3 (1) Including mining, royalty, transportation, marketing fees, treatment and refining charges, state royalty, by-product credits Low: $2/lb Cu
Slide 16: Valuation (US$m)
Valuation 1,400 1,200 1,000 Valuation (US$m) 800 600 400 200 0 NPV (5%) NPV (8%) MCap (last 12mths) TSX: NOM 16
Slide 17: NPV Sensitivities
NPV Sensitivities Post-tax NPV Sensitivity 1,000 900 800 700 Copper Spot Price 600 Moly Spot Price NPV (US$m) 500 Initial Capital Cost 400 300 200 100 0 TSX: NOM 17
Slide 18: IRR Sensitivities
IRR Sensitivities Post-tax IRR Sensitivity 30% 25% Copper Spot Price 20% Moly Spot Price IRR (%) 15% Initial Capital Cost 10% 5% TSX: NOM 18
Slide 19: Capital Cost Structure
Capital Cost Structure Development Capital US$ 845,986,301 Mining US$ 120,510,596 Process Plant & Associated Infrastructure US$ 367,183,057 Waste Management Facilities & Water Infrastructure US$ 84,164,464 Infrastructure US$ 87,646,211 - Access Road US$ 20,170,138 - Accomodations US$ 43,023,618 - Po
Slide 20: Project Parameters
Project Parameters Initial Capital $USD 846 LOM Capital $USD 993.6 LOM 15 years Avg Annual Production Yr 1-5 Avg 102,000 tonnes Cu in concentrate Yr 1-10 Avg 80,000 tonnes Cu in concentrate Yr 1-15 Avg 68,000 tonnes Cu in concentrate Costs Processing costs LOM US$/Lb 0.48 - Payable US$3.85/T process
Slide 21: Project Parameters
Project Parameters Cost per pound of copper production Site Costs inc by product credits US$0.56 per lb Total after sustaining and deferred capital US$0.62 per lb C1 net of by product US$0.98 per lb Penalties LOM $2 per tonne of concentrate (Zn) Mining Rate Avg. total mining rate for first 12 years
Slide 22: Plant and Mine Camp
Plant and Mine Camp Constancia Pit Outline TSX: NOM Plant throughput Year 1 – 3 60,000 t/day: Year 1 – 12 52,000t/day 22 Mine camp for capacity of 400 during operations – Construction requirement 1800
Slide 23: Grinding Area Layout
Grinding Area Layout Constancia TSX: NOM SAG mill 38ft driven by a 15MW variable speed gear motor 23 Two 22ft ball mills
Slide 24: Final Pit Layout
Final Pit Layout Constancia Four staged pit designs TSX: NOM 24
Slide 25: Proposed Power Line
Proposed Power Line Constancia TSX: NOM Supply 90MW 25 70 km 220kv line Capex $25M
Slide 26: Exploration Upside
Exploration Upside Further potential to increase Constancia resource. 5,540ha of 22,000ha property mapped to date. Discovery of Pampacancha and Chilloroya South Pampacancha — 3km SE of Constancia property — Outcropping copper oxides in skarn bodies; high-grade gold and silver mineralisation associat
Slide 27: Exploration Targets
Exploration Targets Pampacancha Cu Au Mo Skarn Porphyry Target South Chilloroya TSX: NOM 27
Slide 28: Pampacancha Prospect
Pampacancha Prospect NE Looking to SE SW Cu-Au Skarn Bodies Au-Ag Limestone replacements Au-Ag main vein Pampacancha South Photo taken from the top of the Sayhualoma Hill, Constancia TSX: NOM 28
Slide 29: Pampacancha Prospect
Pampacancha Prospect High grade anomaly Preliminary exploration target 1,000m by 400m First drill results released in Jan 2009, including: 43.5m grading 1.7% Cu, 0.1% Mo, 10.35g/t Ag, 0.76 g/t Au 13.5m grading 2.17% Cu, 0.02% Mo, 7.03g/t Ag, 1.12g/t Au Rock chip sampling conducted over 27km2 area 32
Slide 30: Mineralized Intervals
Mineralized Intervals HOLE_ID Length Start_At End_At COG Cu_per Mo_ppm Ag_ppm Au_ppb CuEq_per PR-08-005 15.00 18.00 33.00 0.2 0.69 478.0 8.14 463 1.33 PR-08-005 10.50 22.50 33.00 0.4 0.87 665.4 10.27 595 1.72 PR-08-008 43.50 112.50 156.00 0.3 1.70 1001.0 10.35 757 2.86 PR-08-008 40.50 114.00 154.50
Slide 31: 2009 Drill Program
2009 Drill Program 14 new exploration drill holes Proposed 1200 m RC drill program to further test target TSX: NOM 31
Slide 32: Chilloroya South Targets
Chilloroya South Targets Constancia TSX: NOM 32
Slide 33: Chilloroya South
Chilloroya South 2009 reconnaissance Western sector: 3 samples taken from a strongly leached area hosted by fine grained sandstones returned up to 1.7gpt Au, 0.17% Cu and 106ppm Mo Visible green copper oxides occur on a lower topographic level below the leached profile. This type of mineralization r
Slide 34: Chilloroya South Targets
Chilloroya South Targets Skarn Targets SECTOR 1. Qz- Qz- LIMs Bxs SECTOR 3. Felsic Porphyry SECTOR 2. Qz- Qz- Tourm- Tourm- LIMs Bxs TSX: NOM Cu-Au-Mo Occurrences 34
Slide 35: Community Relations
Community Relations Sound community relations – strong support for development Two local communities (Uchucarco and Chilloroya): Good working relationship - agreements in place for over three years Support project development No significant relocation required No NGO opposition Norsemont community p
Slide 36: Permitting Timeline
Permitting Timeline ESIA: Baseline studies complete Principal consultants Knight Piesold and Social Capital Group Target to complete in Dec 2009 Permitting: No foreseen obstacles Regional Ministry of Energy & Mines Cusco (DREM) and Ministry of Energy and Mines Lima (MEM) representatives supportive C
Slide 37: Corporate Information
Corporate Information Corporate Office Peru Office 40 University Ave Amador Merino Reyna #267 Suite 1002 Piso 7 Of. 701 Edif. Parque Toronto Ontario Plaza M5J 1T1 San Isidro, Lima 27 Tel: (416) 408-4088 Teléfono: (51-1) 628-7272 Fax: (416) 408-4077 Fax: (51-1) 628-7275 TSX: NOM www.norsemont.com 37
Slide 38: Cautionary Notice
Cautionary Notice This presentation may contain “forward looking” statements that involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Norsemont Mining Inc to be materially different from any future results, performance or
Slide 39: Qualified Person and Data Verification
Qualified Person and Data Verification • The Feasibility Study and NI 43 43--101 Technical Report were prepared by an integrated engineering team led by GRD Minproc as the primary author of the Technical Report. The following Qualified Persons were involved in the development of the DFS and the Tech
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