Lcl Resources Limited · ASX:LCL
Lcl Resources — Metminco — Shareholder Meeting (May 2018)
32 slides from Lcl Resources's shareholder meeting presentation, May 28, 2018
Slide 1: Exploring & Developing Colombia’s Cauca Belt
Exploring & Developing Colombia’s Cauca Belt Photo credit: Mike Doyle AGM 28 May 2018
Slide 2: Disclaimer & Important Information
Disclaimer & Important Information ASX Code: MNC.AX; AIM Code: MNC.L NATURE OF THIS DOCUMENT This presentation has been prepared by Metminco Limited (ACN 119 759 349) (Metminco or the Company). The information is based on publicly available information, internally developed data and other sources an
Slide 3: Disclaimer & Important Information
Disclaimer & Important Information ASX Code: MNC.AX; AIM Code: MNC.L Although management believes that the assumptions made by the Company and the expectations represented by such information are reasonable, there can be no assurance that the forward-looking information will prove to be accurate. Fo
Slide 4: Recent History - Near Term Objectives
Recent History- Near Term Objectives ASX Code: MNC.AX; AIM Code: MNC.L 2018 Milestones Refinanced Drill confirmatory holes at Tesorito 2016 2017 2018 Conclude agreement with gold major at Purchase of Colombia Miraflores DFS & Refinanced & Chuscal Gold Portfolio commenced Relaunched Permitting Progre
Slide 5: Company Snapshot: Current
Company Snapshot: Current ASX Code: MNC.AX; AIM Code: MNC.L Capital Structure (as at 25 May 2018) Shareholder Ownership Structure (3) (4) Ordinary Shares (1) 912.6m Ticker: ASX & AIM listed MNC/MNCOA BNP PARIBAS NOMINEES 8% Share Price (A$) 1.1¢ MR NEVRES CRLJENKOVIC 5% Market Cap (undiluted) A$10.0
Slide 6: Equity Raising: Refinanced, Restructured, Relaunched
Equity Raising: Refinanced, Restructured, Relaunched ASX Code: MNC.AX; AIM Code: MNC.L ➢ Provides cash for high impact exploration in 2018 ➢ Paid out convertible note 1. Refinanced ➢ Other creditors being paid when due ➢ Recapitalised balance sheet ➢ Reduce overhead ➢ Re-direct activities to explora
Slide 7: Colombia - underexplored, developing nation
Colombia- underexplored, developing nation ASX Code: MNC.AX; AIM Code: MNC.L ➢ Underexplored compared to other countries’ gold endowment Potential ➢ November 2016 peace agreement between Govt. and FARC reduced security risk ➢ Despite limited access, many multimillion ounce deposits found in last dec
Slide 8: Colombia - Cauca Belt: Address for Giant Gold
Colombia - Cauca Belt: Address for Giant Gold ASX Code: MNC.AX; AIM Code: MNC.L Note: Combined Measured, Indicated & Inferred ounces 8
Slide 9: “Core” Asset Overview & Locations
“Core” Asset Overview & Locations ASX Code: MNC.AX; AIM Code: MNC.L Location: Quinchia Gold Portfolio (Colombia) Summary: Quinchia Gold Portfolio (Colombia) Current Concession 6,043 Ha Pending Applications 3,792 Ha 100% (deferred milestone payments owed to Ownership RMB – See Appendix) Drilling to D
Slide 10: The Value Story: Low Hanging Fruit on Giant Tree
The Value Story: Low Hanging Fruit on Giant Tree ASX Code: MNC.AX; AIM Code: MNC.L • Quinchia Gold Portfolio located in Colombia on Andean Cauca trend, host to world- class gold porphyry deposits: La Colosa (28Moz)(1) & Marmato (8.6Moz)(2) ➢ Tesorito prospect: Initial drilling returned 384m @ 1.01g/
Slide 11: Tesorito: Low Hanging Fruit 1.0
Tesorito: Low Hanging Fruit 1.0 ASX Code: MNC.AX; AIM Code: MNC.L • Initial drilling (3 holes) all intersected >250m of anomalous gold mineralisation. • TS-DH-02 returned >1g/t Au over 384m from surface. • Significant surface multi- element geochemical anomaly, and adjacent to high chargeability ano
Slide 12: Tesorito: Low Hanging Fruit 1.0
Tesorito: Low Hanging Fruit 1.0 ASX Code: MNC.AX; AIM Code: MNC.L AG AU 5.00 4.00 3.00 g/t 2.00 1.00 1.01g/t Au 0.00 16 26 33 40 49 56 65 75 85 93 154 163 170 101 110 116 122 131 137 145 178 187 195 205 213 223 233 243 253 261 269 279 288 298 306 314 323 333 342 351 363 373 383 391 398 Drill Depth (
Slide 13: Tesorito: Low Hanging Fruit 1.0
Tesorito: Low Hanging Fruit 1.0 ASX Code: MNC.AX; AIM Code: MNC.L • Porphyry system, mineralised throughout drill holes • 1,500m drilling program commences May 2018 to target both increasing copper at depth and chargeability anomaly 13
Slide 14: Chuscal: Low Hanging Fruit 2.0
Chuscal: Low Hanging Fruit 2.0 ASX Code: MNC.AX; AIM Code: MNC.L • Significant porphyry gold target. 176Ha • Gold geochemical anomalies >100ppb over majority of the 176Ha sampled, includes 500m x 250m zone > 0.5g/t Au. • No geophysics or drilling. • Title: applications; formalised agreement / JV dis
Slide 15: Chuscal: Low Hanging Fruit 2.0
Chuscal: Low Hanging Fruit 2.0 ASX Code: MNC.AX; AIM Code: MNC.L • Artisanal underground working with small milling and gravity circuit. • Mineralisation is in both high-grade and lower-grade stockwork veining. 15
Slide 16: Miraflores
Miraflores ASX Code: MNC.AX; AIM Code: MNC.L • 800m from Tesorito Prospect; 2km from Chuscal Target (under negotiation) • 840koz (M+I) gold Resource @ 2.8g/t Au • 457koz (P+P) gold Reserve @ 3.3g/t Au • DFS completed late 2017, 45koz p.a. for 9.5 years • Capex US$72M, NPV after-tax = US$72M (8%) • A
Slide 17: Summary: High impact drilling program commencing May 2018
ASX Code: MNC.AX; AIM Code: MNC.L • High impact drilling program commencing May 2018 • Large gold prospect at Tesorito • Existing Resources and Reserves at Miraflores • Negotiating on Chuscal, large gold prospect • Low capitalisation of A$10m • Cash for current programs 17
Slide 18: APPENDICES
APPENDICES
Slide 19: Tesorito: Low Hanging Fruit 1.0
Tesorito: Low Hanging Fruit 1.0 ASX Code: MNC.AX; AIM Code: MNC.L 19
Slide 20: Tesorito: mobilisation May 2018
Tesorito: mobilisation May 2018 ASX Code: MNC.AX; AIM Code: MNC.L 20
Slide 21: Deferred Acquisition & Contingency Payments
Deferred Acquisition & Contingency Payments ASX Code: MNC.AX; AIM Code: MNC.L RMB Payments • In May 2016, Quinchia Gold Portfolio purchased from RMB Australia Holding Limited (RMB); • Remaining milestone cash payments to RMB to occur up until 2020: ➢ Second payment of A$1 million on 20 June 2018; ➢
Slide 22: Miraflores: Feasibility Study Outcomes
Miraflores: Feasibility Study Outcomes ASX Code: MNC.AX; AIM Code: MNC.L CAPEX of 9.5 year mine life Gold recovery rate 4.33Mt @ 3.3g/t for US$71.8 million* producing of 92% over life of 457,000oz Au P&P before optimisation ~45,000oz gold p/a mine Gold Reserve Asset 100% owned Payback Period After T
Slide 23: Miraflores: Mineral Resource and Reserve
Miraflores: Mineral Resource and Reserve ASX Code: MNC.AX; AIM Code: MNC.L JORC Mineral Resource (1.2g/t Au cut-off) (March 2017)(1) Resource Mt Au (g/t) Ag (g/t) Au (koz) Ag (koz) Classification Measured 2.96 2.98 2.50 283 237 Indicated 6.31 2.74 2.90 557 588 Total (M&I) 9.27 2.82 2.77 840 825 Infe
Slide 24: Miraflores Positioned Favourably on the Global Gold Cost Curve
Miraflores Positioned Favourably on the Global Gold Cost Curve ASX Code: MNC.AX; AIM Code: MNC.L 1800 1600 1400 1200 US$/oz 1000 800 600 Metminco 400 Total AISC 200 US$643/oz 0 0 20 40 60 80 100 Cumulative Gold Production (%) Source: Barrick February 2016 Investor Day Presentation 24
Slide 25: Miraflores: First Cost Quartile Gold Operation
Miraflores: First Cost Quartile Gold Operation ASX Code: MNC.AX; AIM Code: MNC.L Low Capital and Operating Costs*; Attractive IRR All-in Sustaining Costs* US$643.00 per payable Au-oz Item Units Oct 2017 1300 Mineral Material Processed Kt 4,326 1200 LoM Years 9.33 1100 Gold Recovered Koz 421 1000 Mar
Slide 26: Miraflores: Underground Mine Development
Miraflores: Underground Mine Development ASX Code: MNC.AX; AIM Code: MNC.L Underground Development Design ➢ Underground mining operation with low impact on surrounds. South Portal ➢ Ore processing via gravity and float Slopes concentration followed by cyanide leaching. North Portal Drift ➢ 62% of go
Slide 27: Miraflores - CAPEX Breakdown and Optimisation
Miraflores - CAPEX Breakdown and Optimisation ASX Code: MNC.AX; AIM Code: MNC.L Pre-production Capital Expenditure US$m* Item Optimisation by Metminco Oct 2017 Significant reduction in underground development due to increase in Underground Mining 14.0 distance between levels and reduction in main ra
Slide 28: Miraflores: Sensitivity to Gold Price - Feasibility Study
Miraflores: Sensitivity to Gold Price - Feasibility Study (Oct 2017) ASX Code: MNC.AX; AIM Code: MNC.L Sensitivity to Gold Price US$1,200 US$1,300 US$1,400 Key Financial Indicators* Unit Au/oz Au/oz Au/oz C1 Cash Cost** US$ per Au/oz 595 599 603 AISC-cost US$ per Au/oz 639 643 647 EBITDA (LoM averag
Slide 29: Miraflores: Formalisation Process
Miraflores: Formalisation Process ASX Code: MNC.AX; AIM Code: MNC.L • Two characterisations of the informal miners present in Miraflores (2013 and 2016/2017). • Nearly 200 informal miners identified. • Formalisation plan: ⁃ Priority in the recruiting of the workforce; ⁃ Productive plan; ⁃ Training,
Slide 30: Social Projects
Social Projects ASX Code: MNC.AX; AIM Code: MNC.L RELATIONSHIP WITH INFRASTRUCTURE EDUCATIONAL INDIGENOUS CULTURAL COMMUNITIES Aid on the construction and 450 education kits donated to the Donation of uniforms for Consultation process with the adaptation of the Miraflores rural community of Miraflor
Slide 31: Key “Non-Core” Asset Overview & Locations
Key “Non-Core” Asset Overview & Locations ASX Code: MNC.AX; AIM Code: MNC.L Mollacas Project (Chile) Vallecillo Project (Chile) • Copper leach project discovery; • Gold-zinc project discovery - porphyry related base and precious metal mineralisation containing gold, silver, zinc, lead • Located in R
Slide 32: Sydney Office / Medellin Office
Sydney Office Suite 401 6 Help Street Chatswood NSW 2067 PH: +61 (0) 2 9460 1856 info@metminco.com.au www.metminco.com.au Medellin Office Miraflores Compania Minera S.A.S Carrera 36 No 2 Sur 60 Int 1301 Poblado Alejandria Medellin Colombia PH: +57 4 3121196 or +57 4 3121325