Slide 1: Chile's Star in Copper-Gold
For personal use only CHILE’S STAR IN COPPER-GOLD Investor Presentation June 2012
Slide 2: Important Information
Important Information For personal use only Disclaimer This presentation has been prepared by and issued by Estrella Resources Limited ACN 151 155 207 (Estrella or Company) to assist in informing interested parties about the Company and should not be considered as an offer or invitation to subscri
Slide 3: Presentation Overview
Presentation Overview For personal use only 1. Executive Summary 4 2. Company Overview 5 3. Why Chile? 6 4. Projects 9 5. Board of Directors 17 6. Development Plan 18 7. Comparable Companies 19 8. Summary 20 Chile’s Star in Copper-Gold 3
Slide 4: Executive Summary
1. Executive Summary For personal use only Estrella Australian based, Chilean focused copper-gold exploration company Resources Exploring and developing 4 projects (ASX.ESR) Pursuing acquisition of additional highly prospective assets in Chile Listed on the ASX in May 2012 (code: ASX.ESR) 4 Highly i
Slide 5: Company Overview
2. Company Overview For personal use only ASX Code ASX.ESR Estrella’s Ongoing acquisition of high quality assets Chilean Focus on Brownfields projects Share Price (as at 20 June 2012) A$0.15 Strategy Low Capex & Opex advantages in Chile Market Cap (as at 20 June 2012) A$13.1M Access to existing mini
Slide 6: Why Chile?
3. Why Chile? For personal use only Why Chile? World’s largest copper producer - 35% of global copper output for the last 30 years - ~38% of global copper reserves - Mining investment pipeline estimated to be ~US$70B (2010-2015) All major international miners active in Chile - BHP Billiton, Anglo Am
Slide 7: Why Chile? (Cont)
3. Why Chile? (Cont) For personal use only Mining Clear legislation and well-established procedures Regime Favourable royalty regime - Currently between 4% and 9% royalty on a sliding scale - A recent Bill raises this to 5% to 14% royalty starting in 2018 Clear foreign investment framework - 100% fo
Slide 8: Number of Copper Mining Projects by Country
3. Why Chile? (Cont) For personal use only Number of Copper Mining Projects by Country Sources: Brook Hunt, Codelco and AON Group (May 2011). Chile’s Star in Copper-Gold 8
Slide 9: Projects Overview: Location of Projects in Central Chile
4. Projects For personal use only Overview 4 Projects in central northern Chile Collahuasi (Anglo Xstrata) Escondida (BHP RIO) 2,185mt @ 0.89% Cu 121mt @ 0.81% Cu i. Agustina – 450 km north-northwest of Santiago Productora (Hot Chili) ii. Venus – adjacent to Agustina 85mt @ 0.6% Cu Pascua Lama (Barr
Slide 10: Agustina
4. Projects - Agustina For personal use only Overview Option to acquire 100% of Agustina concessions Covers 4 mining leases with total area of 21.0km2 Numerous artisanal copper and gold mines Geology “Brownfields project” highly prospective for IOCG Mineralisation hosted in numerous fault breccia st
Slide 11: Agustina (Cont): Orion Exploration
4. Projects - Agustina (Cont) For personal use only Orion Maiden drilling currently underway Exploration High ‘chargeability’ IP anomalies identified - Coincide with high Cu & Au sample results - >2km long, >600m wide from surface to >300m depth A A’ 10 targets in mineralised parallel structures (Cu
Slide 12: Agustina (Cont): Exploration Program
4. Projects - Agustina (Cont) For personal use only 5km Exploration Soil & rock chip sampling program Nov- Dec 2011 Program Mapping and sampling to identify mineralised structures Nov- Dec 2011 IP survey across known mineralised structures Dec 2011-Jan 2012 Maiden drilling campaign commenced
Slide 13: Agustina (Cont): Infrastructure
4. Projects - Agustina (Cont) For personal use only Infrastructure Road: 6km from the Pan American Highway via good gravel road Rail: 10km from a rail line to port of Coquimbo. Cape gauge and currently moves 7Mt per annum Power: Grid power available via construction of a 10km power line Ports: Coqui
Slide 14: Venus
4. Projects - Venus For personal use only Venus 100% owned by Estrella Overview Located 75 km NNW of La Serena Covers area totalling 90 km2 Highly prospective region for high grade copper-gold - Mineralised fault structures similar to Agustina Southern extension of Agustina project Significant artis
Slide 15: Luna/Inca
4. Projects – Luna/Inca For personal use only Luna/Inca Luna 100% and Inca 91.5% owned by Estrella Overview Total area of 262km2 of which Inca is a 54 km2 subset Located ~90km SE of Coquimbo Highly prospective region for high grade copper-gold Surrounding concession holders include - Barrick Gold, C
Slide 16: Luna/Inca (Cont)
4. Projects – Luna/Inca (Cont) For personal use only Regional NW to SE trending structural corridor: 15km strike length Geology Inca hosts five small scale Cu, Au and Ag mines including - Epithermal breccia's ranging 3-10m in width Exploration Exploration focus: Structural Corridor with high grade b
Slide 17: Board of Directors
5. Board of Directors For personal use only Dr. Jason Berton, Managing Director (full time) Julian Bavin, Non-executive Director Over 12 years mining and exploration industry Over 30 years experience in the mining industry, experience at Barrick, Homestake and BHP with over 20 years with Rio Tinto i
Slide 18: Development Plan
6. Development Plan For personal use only Indicative Timing Jun 12 July 12 Aug 12 Sep 12 Oct 12 Nov 12 Dec 12 Maiden Drilling Program – Orion (Agustina) Trenching, Mapping & Sampling – Centauri (Agustina) Drilling at Centauri (Agustina) Reconnaissance Mapping & Sampling (Luna) IP & Magnetics Survey
Slide 19: Comparable Companies
7. Comparable Companies For personal use only Market Cap Company Share Price EV ($m) Cash ($m) Resources Location Status (Diluted) Producer (Au, Mandalay (TSX) $0.58 $163.3 $148.50 $14.8 N/a Chile Ag, Sb) 85.1Mt @ 0.6% Cu Hot Chili $0.42 $89.9 $79.10 $10.8 Chile Exploration and 0.1g/t Au Latin Resou
Slide 20: Summary
8. Summary For personal use only Highly prospective near surface targets identified at Agustina Project for IOCG structures. “Drilling has commenced” – targeted exploration program to fast track drilling at Agustina. On-ground presence and strong “in-country’’ skills within Board and Managemen