Ormonde Mining Plc · AQUIS:ORM
Ormonde Mining — Investor Presentation (May 2011)
31 slides from Ormonde Mining's investor presentation, May 2011
Slide 1: Near Term Tungsten Producer with Exciting Copper/Gold Exploration
ORMONDE MINING PLC NEAR TERM TUNGSTEN PRODUCER with Exciting Copper/Gold Exploration Barruecopardo La Zarza Gold Exploration TUNGSTEN PROJECT CU-AU PROJECT PORTFOLIO MAY 2011
Slide 2: Disclaimer
DISCLAIMER Some of the statements contained in the following presentation are forward-looking statements and not statements of facts. Such statements are based on the current beliefs of management, as well as assumptions based on management information currently available. These assumptions may prov
Slide 3: Ormonde Mining Plc
ORMONDE MINING PLC Quoted on AIM and ESM (ticker = ORM) Issued Shares: 339 m Current Price: 11.5 pence Market Capitalisation: £39M NOMAD & Joint Broker: Davy Joint Broker: Fairfax Institutional Shareholding: 32% (Dec 10) JP Morgan 6.6% Blackrock 5.5% SOURCE: DAVY SHAREHOLDER ANALYSIS DEC’10 Jupiter
Slide 4: Ormonde Strategy
ORMONDE STRATEGY Focus on Spain Barruecopardo Tungsten Project: Major Tungsten Project which will initially produce 8% of non Chinese global mine tungsten supply, by late 2012 La Zarza Cu-Au Project: JV with Antofagasta Minerals, concentrating on expanding the existing significant copper resources –
Slide 5: Ormonde Projects
MINING PLC ‘@) ORMONDE PROJECTS Salamanca & Zamora . d Exploratio Barruecopardo n Project ye @ (Lisbon
Slide 6: Spain mining jurisdiction and infrastructure
ORMONDE MINING PLC Mines currently in operation & development e.g. Las Cruces Cu (Inmet) Aguas Tenidas Cu-Zn (Iberian Minerals) Excellent Infrastructure Sound and well-tested Mining Law Permitting structure, security of ground holdings Capital grants currently available Tax credits available for min
Slide 7: Barruecopardo Tungsten Project
Barruecopardo Tungsten Project An Essential, Secure European Tungsten Supply from 2012 Salamanca Castilla y León Western Spain Province Region (100% Ormonde; 272 sq km permit area)
Slide 8: Barruecopardo Project
BARRUECOPARDO PROJECT Large resource – 10.9Mt grading 0.45% WO3 = 4.9 million mtus (APT mtu price $460) Some 8% of non-Chinese global tungsten mine production at start-up Planned increase in production post start-up Simple processing & initial open pit mining = low capital & operating cost = low ris
Slide 9: Tungsten Price
TUNGSTEN PRICE Tungsten Price (US$/mtu for European APT) from 2004 - 2011 $500 $450 $400 Ongoing reduction $350 of Chinese tungsten exports $300 $250 $200 China increasing $150 domestic Global $100 consumption Recession $50 SOURCE: METAL BULLETIN
Slide 10: Tungsten Properties & Uses
TUNGSTEN PROPERTIES & USES Strongest of all metals – second strongest Global Tungsten Uses material after diamond Highest melting point of all metals at 3,400°C As a result no real satisfactory substitute for key applications Most important use is as tungsten carbide (hardmetals) in all cutting & dr
Slide 11: China & the Tungsten Market
CHINA & THE TUNGSTEN MARKET China Dominates World Primary And is the Main Source of Tungsten Tungsten Production to the Rest of World (RoW) World mine Production in 2008 RoW Primary Tungsten demand in 2008 SOURCE: CRU (2009) SOURCE: CRU (2009)
Slide 12: Increasing Chinese Domestic Consumption
INCREASING CHINESE DOMESTIC CONSUMPTION But China now requires an increasing amount of tungsten in its indigenous industries and has increased its control over its reserves with the goal of protecting domestic production for domestic consumption Increasing Chinese Crude Steel Production and Demand f
Slide 13: Forecasted Supply Deficit for RoW
FORECA STED SUPPLY DEFICIT FOR RoW Together with the fact that Chinese demand is growing at an estimated 8% per annum, leaves the Rest of the World with large forecasted supply deficits Forecast Tungsten Demand V’s Supply excluding China and Russia (Tonnes of Tungsten) Market deficit in 2013 Of 14,5
Slide 14: Key Ingredients for Success Are in Place
KEY INGREDIENTS FOR SUCCESS ARE IN PLACE Management +75 years mining industry experience Location Close to major European tungsten users Low capital cost – “Brownfields” site Proven Product Previous tungsten producer Resource Large Potential to significantly increase resources – long life mine Techn
Slide 15: Management
MANAGEMENT Mike Donoghue Mining Engineer with +30 yrs European, African, Australian Exec Chairman experience in development and operation of mines Kerr Anderson Geologist who has worked extensively (+20 yrs) in Spain on Managing Director gold and base metal mining projects Steve Nicol Mining Enginee
Slide 16: Barruecopardo Operation 1970s
BARRUECOPARDO OPERATION 1970 s Historic Open Pit
Slide 17: JORC Resources (CSA Global May-10)
JORC RESOURCES (CSA Global May-10) Category Tonnes (millions) Grade (WO3%) Contained WO3 (mtu) Indicated 6.5 0.46 3.0 million Inferred 4.4 0.44 1.9 million Total 10.9 0.45 4.9 million All resources quoted at a 0.25% WO3 cut-off Current resources should allow for a mine life of 15+ years Potential ex
Slide 18: Resources
RESOURCES Plan View Cross Section of tungsten View of zones tungsten zones
Slide 19: Technically Simple Mining
TECHNICALLY SIMPLE MINING Pit design showing Scheelite mineralisation in Ormonde drill main mineralised zones core under fluorescent light Coarse mineralisation amenable to low cost gravity processing Recoveries for main mineralised zones of +80% to saleable concentrates
Slide 20: Simple Gravity Processing by Jigs & Spirals
SIMPLE GRAVITY PROCESSING BY JIGS & SPIRALS Jig “Cleaner” Concentrate Spiral “Rougher” Concentrate
Slide 21: Low Capital Costs
LOW CAPITAL COSTS Advanced Tungsten Projects Estimated Capital Costs (US$M) Source: Respective company published reports & websites
Slide 22: Scott Wilson Study - Summary
SCOTT WILSON STUDY - SUMMARY Scott Wilson Study, Sept 2010 BASE CASE Start-up at 500,000t /year to produce an averaged 130,000 mtu’s/annum over ten years €9M/year pre-tax operating cash flows at then present tungsten price (US$245) €14M/year at a forecast tungsten price (US$290)* Capital cost = €30M
Slide 23: Barruecopardo v's World Production (Ex China)
BARRUECOPARDO V’S WORLD PRODUCTION (EX CHINA) Planned Barruecopardo Production V’s World Production (Ex China) World Primary Tungsten Production by Country (tonnes) - 2009 (Ex. China) 2,500 2,000 1,500 1,000 500 -
Slide 24: 2011-2012 Development Plan
2011– 2012 DEVELOPMENT PLAN 2011 2012 2013 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 FEASIBILITY & PERMITTING STAGE Infill drilling Permitting Engineering design / Feasibility DEVELOPMENT STAGE Capital funding & off-take arrangements Plant construction PRODUCTION Open pit mining 10 YEARS -> Underground mining U
Slide 25: La Zarza Copper-Gold Project
La Zarza Copper-Gold Project JV With Antofagasta Minerals One Of The World’s Leading Copper Producers Huelva Andalucia Southern Spain Province Region (100% Ormonde; 12.8sq km permit)
Slide 26: Iberian Pyrite Belt Mines & Deposits
IBERIAN PYRITE BELT MINES & DEPOSITS 2011 targeted copper production from this area is 160,000t (US$1.5 Billion at $9,500/t)
Slide 27: La Zarza Overview
LA ZARZA OVERVIEW Antofagasta has right to earn 51% by spending $7M and can increase its interest to 75% by the completion of a feasibility study; Ormonde Manager Current JV Resource of 61Mt grading 0.8% Cu, 0.9g/t Au, 0.6% Pb, 2.0% Zn and 5.7g/t Ag (~490k tonnes contained copper) New permits coveri
Slide 28: Gold Properties
Gold Properties Including Exciting Drill Ready Targets Salamanca & Zamora Castilla y León Western Spain Provinces Region (90% Ormonde; 309km permit area – includes tungsten)
Slide 29: Significant Gold Deposits in NW Spain
SIGNIFICANT GOLD DEPOSITS IN NW SPAIN El Vale/Carles Salave Resources = 2.3M oz Resources = 2.0M oz past production = 950k oz Corcoesto Orvana Astur Gold Resources =1.2M oz Edgewater Ormonde Permit Areas
Slide 30: Gold Properties Overview
GOLD PROPERTIES OVERVIEW Independent Report by CSA Global (Aug’10) outlined significant “1M oz+” gold potential Permits contain “all the major features of classic intrusion related gold systems” Recent decision to split prospects into Gold-Tungsten and Gold-only and fund separately Gold-Tungsten pro
Slide 31: Summary
SUMMARY Barruecopardo Tungsten Project: Low cost mine; commencing production in late 2012 to supply 8% of non-Chinese global tungsten mine production at start-up La Zarza Cu-Au Project: JV with Antofagasta Minerals, concentrating on expanding the existing significant copper resources – fully funded