Southstone Minerals Limited · TSXV:SML
Southstone Minerals — Tango Mining — Investor Presentation (April 2016)
18 slides from Southstone Minerals's investor presentation, April 2016
Slide 1: Investor Presentation April 2016 Reactivating the BK11 Kimberlite Diamond Mine
Tango Mining Limited TGV:TSXV Investor Presentation April 2016 Reactivating the BK11 Kimberlite Diamond Mine Orapa/Letlhakane Kimberlite District, Botswana - Roadmap to +500,000 carats BK11 Diamonds 2011 34.579 carats – 6 grainer sawables production (Dodecahedral and Octahedral shapes) 1
Slide 2: Forward Looking Statement
Forward Looking Statement Certain information set forth in this presentation contains “forward-looking statements” and “forward-looking information” under applicable securities laws. Except for statements of historical fact, certain information contained herein constitutes forward-looking statements
Slide 3: Our Board of Directors and Senior Management
Our Board of Directors and Senior Management Terry L Tucker (P.Geo) Executive Chairman and Interim CEO Terry Tucker has over 26 years ‘ expe rience in mine ral exploration and development projects and has se rved on various exe cutive Boards that include CEO and Director of Nyota Minerals Lim ited (
Slide 4: Corporate Profile
Corporate Profile Tango Mining Limited (“Tango” or the “Company”) is an TSXV-listed diamond producer with the producing Oena Diamond Mine in South Africa, an option to acquire and reactivate the past producing BK11 Kimberlite Diamond Mine in Botswana and four thermal coal, metallurgical and processi
Slide 5: South Africa Operations – Locations
South Africa Operations – Locations TGV.TSXV 5
Slide 6: South Africa Operations – Kwena Group
South Africa Operations – Kwena Group 7,286,981 t processed to year end August 2015 (6,500,000 t budget) South Africa based team of 325 skilled engineering and metallurgical skilled persons. Established 1988 – 27 years experience in the precious metal, base metal, thermal coal and diamond industry.
Slide 7: South Africa Operations – African Star
South Africa Operations – African Star Bulk-sampling Program ongoing and asset sold to Bothma* Oena is a producing alluvial diamond project that operated from 2000 to 2007 and with mine permit renewal and recommenced of operations in 2015. Tango`s first diamond tender closed on 28 July 2015 and diam
Slide 8: Acquisition – BK11 Kimberlite Diamond Mine, Botswana
Acquisition – BK11 Kimberlite Diamond Mine, Botswana BK11 acquisition will transform Tango into a kimberlite diamond producer Acquisition: BK11 Kimberlite Diamond Mine BK11 100% of production plant facility & 100% interest of the mining license (valid to 30 June 2022) Acquisition Price: Firestone Di
Slide 9: What we are buying – BK11 Kimberlite Diamond Mine, Botswana
What we are buying – BK11 Kimberlite Diamond Mine, Botswana 100% of BK11 plant & 100% of mining license from Firestone & minority partner for US$8.8m The History Discovered in 1974 by De Beers Explored and evaluated by Firestone 2007-2009 Mined by Firestone 2010-2011 Care & maintenance since Februar
Slide 10: BK11 Geological Model
BK11 Geological Model • Accurate geological model created in 2015 (NI 43-101 report dated 15 August 2015) • Total kimberlite pipe volume modelled at 12.5M mɜ (22M tonnes) • High resolution ground magnetics, EM and gravity carried out in 2008. • Accurately re-modelled in 2015 – kimberlite surface siz
Slide 11: BK11 NI 43-101 Inferred Resource Statement – effective 15.8.2015
BK11 NI 43-101 Inferred Resource Statement – effective 15.8.2015* • 17.4 million tonnes (Mt) Inferred Resource containing a total of 780,820 carats (“cts”) of which approximately 9.0 Mt (Kimberlite Facies K2U, K2L and K3) averages 6.8 cts per hundred tonnes (“cpht”) for a total of 608 000 cts, with
Slide 12: What went wrong and how can we do it differently?
What went wrong and how can we do it differently? Focus : Improve process recovery rate to >95% § Cut 2 pit extension to access high grade material ❶ § Optimize newly installed secondary crushing circuit § Implement an autogenous milling circuit to improve diamond liberation Result : Improved qualit
Slide 13: Autogenous milling will improve recovery and revenue
Autogenous milling deemed to be a low risk investment with highest return wrt. extending life of mine and diamond liberation What Tango will do differently to get recovery from historical 20 - 30% to >95% and why the previous operators were not able to achieve these results – implement autogenous mi
Slide 14: BK11 NI 43-101 Preliminary Economic Assessment (PEA) – effective 12.10.2015
BK11 NI 43-101 Preliminary Economic Assessment (PEA) – effective 12.10.2015 NI43%101(PEA(Results((0(–(143(m) POST(TAX(DISCOUNTED(NPV(( US$40M (excluding(acquisition(costs(and(8%(discount) IRR( 43% (including(acquisition(costs) Development(CAPEX((including(autogenous(mill) US($15M (Resource(Statement
Slide 15: BK11 NI 43-101 Preliminary Economic Assessment (PEA) – effective 12.10.2015
BK11 NI 43-101 Preliminary Economic Assessment (PEA) – effective 12.10.2015 15 TGV.TSXV 15
Slide 16: Budgets and Financing
Budgets US$ US$ US$ Acquisition Costs Balance due 29 July 2016 to Firestone $7,650,000 Balance due 29 July 2016 to Minority Partner $800,000 Subtotal $8,450,000 Capital Summary Mining and mining equipment - prestripping $2,900,000 Processing Plant Refit (including autogenous mill) $6,840,000 EPCM, G
Slide 17: Botswana, southern Africa - Why Botswana?
Botswana, southern Africa - Why Botswana? • Second largest diamond producing country in the world • Damtshaa, Letlhakane and Orapa are operated by Debswana as well as four shareholder owned diamond mines: Gem Diamonds, Firestone (care and maintenance), Lucara and Kimberley Diamonds (recommissioning)
Slide 18: Contact Information
Contact Information Tango Mining Limited, Canada Tango Mining Limited, South Africa 5626 Larch Street, Suite 202 Witbank Regional Office Vancouver, British Columbia, Canada 205A, 2nd Floor Smokey Mountain Office Park V6M 4E1 Route N4 Office Line +1 604 696 4236 Corner Nelson Mandela & Paul Sauer Str