Slide 1: Corporate Update April 2013
CORPORATE UPDATE April 2013 This presentation should be read in conjunction with information provided on the Company’s website at www.metalsexploration.com
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. It should be read in conjunction with information pr
Slide 3: Gold Project – In Development
GOLD PROJECT – IN DEVELOPMENT Philippine focussed mining development company 100% owned Runruno Gold Project being developed Robust funding model, 70% equity 30% debt Strong major shareholder support - Solomon Capital, Baker Steel, Runruno Holdings, Investec Runruno is secured by a Financi
Slide 4: Company Information
COMPANY INFORMATION KEY SHAREHOLDERS - % HOLDING (31 March 2013) SHARE CAPITAL (31 March 2013) Solomon & related parties 47.28% Issued ordinary shares 824,743,103 Baker Steel 24.00% Unlisted options and warrants 19,785,000 Runruno Holdings & related parties 18.26% Market Capitalisation (
Slide 5: Runruno Gold Project
RUNRUNO GOLD PROJECT Status: In development – infrastructure work well advanced, Mine life: 10.3 years 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$182.5m (inc. mining fleet) Cash Cost (Ave): US$ 442 /
Slide 6: Construction Philosophy
CONSTRUCTION PHILOSOPHY Strong experienced owners team Self execute strategy using experienced consultants and sub contractors experienced in the Philippines including: PAIE – project control Contromation Energy Services – design and schedule Goldfields – Biox® process expertise Develop sup
Slide 7: Runruno Construction Timeline
RUNRUNO CONSTRUCTION TIMELINE Q1, 2013 Q2, 2013 Q3, 2013 Q4, 2013 Q1, 2014 Q2, 2014 H2, 2014 Infrastructure Commence Mine pre-stripping Commence Construction Construction First production Development mine stripping Construct TSF mining Pit development Ore production Ramp up Equity fundin
Slide 8: Site Works
SITE WORKS Program of work to support full construction activities Includes: • General site earthworks – 75% complete • Processing plant pad earthworks – complete and within budget • Project access road – substantially upgraded • Establishment of site roads – 80% complete • Erection of construct
Slide 9: Site Layout
. a S . SITE LAYOUT expioration \
Slide 10: Processing Plant Pad - Completed
PROCESSING PLANT PAD - Completed 10
Slide 11: Process Plant Contract
PROCESS PLANT CONTRACT To be constructed using a self execute strategy Team being assembled Design and layout finalised Detailed engineering design 50% complete – will support for quick construction 15 month on the ground construction timetable Process plant construction to commence in s
Slide 12: Camp Site and Batch Plant Area
CAMP SITE and BATCH PLANT AREA Office Camp Mess Concrete Batch Plant 12
Slide 13: Mine Pit Access
MINE PIT ACCESS Mine Haul Road from Starter Pit Mine Haul Road to Starter Pit Mine Pit Design Mine Haul Road 13
Slide 14: Infrastructure
INFRASTRUCTURE Potable Water System Grid Power Connection – 69kV Solano – Runruno Access Road 14
Slide 15: Resources and Reserves March 2011 & April 2013
RESOURCES AND RESERVES March 2011 & April 2013 Runruno Main 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 Reserves 15.0 1.85 0.90 603 18.3 Additional Inferred 2.9 1.73 0.16 258 1.7 Resource in-pit Ore Gold Molybdenum Resou
Slide 16: 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 is well served by existing infrastructure.” Power supply – switch yard in Bayombong will be the origin for the new 69Kv line to
Slide 17: Project Description
PROJECT DESCRIPTION Five key components: Mine Open Pit and Run of Mine (ROM) Pad Process Plant facility consisting of conventional crushing, grinding, flotation, along with BIOX® and gravity recovery Tailings Storage Facility (TSF): to ensure materials are properly managed and to reclaim water
Slide 18: Mining
MINING Open pit area - 600m x 1,500m 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 the first three years, waste material will be used in the construction of the Tailings
Slide 19: Gold Processing
GOLD PROCESSING Pressure Oxidation, & BIOX® processes tested Ore contains free and refractory gold BIOX® offers: and molybdenite Reduced capital intensity Lower operating costs Gold circuit demonstrated by extensive Proven process testwork including 20t pilot plant Ease of operation Gra
Slide 20: Molybdenum Opportunity
MOLYBDENUM OPPORTUNITY Molybdenite occurs at Runruno as very fine 10-20 µm grains with pyrite and silicate minerals Hydrometurgical Mo recovery circuit in development – Electrometals Laboratory Queensland Modular add-on to gold circuit Mo solubilised in the BIOX process with no additional proc
Slide 21: 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 Dam lifted to final height during initial 3 years of production Designed to national and international stand
Slide 22: Current Activities
CURRENT ACTIVITIES Finalise funding package, equity in place debt by end of year Infrastructure development Commissioning mining fleet Award process plant construction package Finalise land acquisition – 85% completed Decommissioning small scale mining operations Environmental manageme
Slide 23: 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 •Southern Extension mineralisation south of
Slide 24: Southern Extension Area
SOUTHERN EXTENSION AREA Potential gold / molybdenum zone outlined south of the Runruno pit; Initial inferred resource 7.55 million tonnes @ 1.4 g.t Au containing 340,000 ozs Au • Flat dipping zone • Indicated grades 2-3 g/t Au in continuous lenses • 8-12 m thick Zone open to the south and west
Slide 25: 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 26: 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
Slide 27: Environment
ENVIRONMENT Air quality monitoring at Runruno Barangay Hall and Elementary School. Water quality monitoring at Dawson Creek and upstream Sulong River. 27
Slide 28: Rehabilitation & Slope Stabilisation
REHABILIATION & SLOPE STABILISATION 28
Slide 29: Extensively Awarded for Excellence in Environment, Social and Safety Programs
EXTENSIVELY AWARDED for EXCELLENCE IN ENVIRONMENT, SOCIAL and SAFETY PROGRAMS 29