Altoro Metals Limited · ASX:ARO
Altoro Metals — Variscan Mines — Investor Presentation (November 2023)
31 slides from Altoro Metals's investor presentation, November 2023
Slide 1: Spain's next high-grade Zinc mine
Spain’s next high-grade Zinc mine Investor Presentation November 2023
Slide 2: Disclaimer & Competent Person Statement
DISCLAIMER & COMPETENT PERSON STATEMENT This document is for information purposes only. It is not a prospectus, disclosure document or offering document under Australian law or under any other law and does not constitute an offer or invitation to apply for securities. In particular, this presentatio
Slide 3: Overview – Focus on Advancing the Novales-Udias Project
OVEVIEW – FOCUS ON ADVANCING THE NOVALES-UDIAS PROJECT De-risked Project in proven Mining district • High-grade zinc deposit, with mineralization demonstrating significant potential for expansion • Centred on former producing San Jose Mine (avg. ROM grade 6.9% Zn1) Low-Risk Jurisdiction • Located in
Slide 4: Clear Strategy to Supply Critical Metals in Europe
CLEAR STRATEGY TO SUPPLY CRITICAL METALS IN EUROPE Resourcing the energy transition revolution 1 2 3 Re-start San Jose Mine Exploration upside Growth and M&A • Assess bringing high-grade San Jose • Continue exploration through drilling • Target value accretive assets Mine into production to expand z
Slide 5: Board, Capital Structure & Shareholdings
BOARD, CAPITAL STRUCTURE & SHAREHOLDINGS COMPANY STATISTICS As of 6 November 2023 SHARE REGISTRY (+1% shareholders = 62%) Shares Outstanding (M) 356.6 Zinc GroupCo, Other , 33.8% 16.1% Performance Rights (M) 2.5 CCGF Holding, 1.0% Options (M) 74.1 BNP Paribas Slipsteam Noms , 1.1% Resources, Shares
Slide 6: Share Price and Metal Price Performance (YTD)
SHARE PRICE AND METAL PRICE PERFORMANCE (YTD) VAR vs. ASX Zinc Explorers / Developers Base Metals Prices 180.0% 140.0% 160.0% 120.0% 140.0% 120.0% 100.0% 100.0% 80.0% 80.0% 60.0% 60.0% 40.0% 20.0% 40.0% 0.0% 20.0% 0.0% Variscan Apollo Minerals Rumble Resources Ironbark Zinc Altamin Zinc Copper Lead
Slide 7: Exploring 100% Owned High Grade Zinc Projects in Spain
EXPLORING 100% OWNED HIGH GRADE ZINC PROJECTS IN SPAIN | ASX:VAR 7
Slide 8: Zinc – Key Role in Energy Transition & Move to Net-Zero
ZINC – KEY ROLE IN ENERGY TRANSITION & MOVE TO NET-ZERO Structural Demand for Zinc § Underinvestment in global exploration § Lower production / shut-downs of existing mines § Low grade new discoveries & production 15,800 Uncommitted Projects Committed Projects - China “Every 1MW of installed wind tu
Slide 9: Zinc – Key Role in Energy Transition & Move to Net-Zero
ZINC – KEY ROLE IN ENERGY TRANSITION & MOVE TO NET-ZERO Critical materials for transition to low carbon Forecast wind & solar investment expenditure economy ü Zinc designated as a strategic metal by US ü Zinc designated as a strategic metal by Canadian government in November 2021 government in Febru
Slide 10: Spain Is a Key Part of European Mining Renaissance
SPAIN IS A KEY PART OF EUROPEAN MINING RENAISSANCE § Entering a period of de-globalisation EUROPEAN UNION COMMITS TO SECURING and resource scarcity. CRITICAL MINERALS § The EU Critical Raw Materials Act in March 2023, provided a set of clear targets and initiatives for the EU to catch up in the glob
Slide 11: Novales-Udias Project – Situated in Proven Mining District
NOVALES-UDIAS PROJECT – SITUATED IN PROVEN MINING DISTRICT § San Jose (12km2) Mining Licence hosting former producing San Jose zinc mine § Buenahora (41km2) Exploration Licence hosting +60 historical (mostly artisanal) 62Mt @ 8.7%Zn workings § Defined and metallurgically simple MVT zinc sulfide depo
Slide 12: Novales-Udias Project: Cantabria, Northern Spain
NOVALES-UDIAS PROJECT: CANTABRIA, NORTHERN SPAIN | ASX:VAR 12
Slide 13: MVT Deposits – Favourable Characteristics
MVT DEPOSITS – FAVOURABLE CHARACTERISTICS REOCÍN MINE: 62MT @ 8.7% Zn + 1.0% Pb ✓ Flat-lying, tabular orebodies ✓ Good lateral continuity ✓ Multiple horizons ✓ Occur in clusters / ore fields ✓ Sizeable resources ✓ Grade can be very high ✓ Comparatively simple geology ✓ Simple mineralogy ✓ Simple min
Slide 14: Delivering Exploration Success & Development Progress
DELIVERING EXPLORATION SUCCESS & DEVELOPMENT PROGRESS DDH NOV113: 33.0m @ 4.1% Zn + 0.1% Pb ✓ Sustained underground drilling success at San Jose ✓ Step-out surface drilling success ✓ Sizeable, High-grade JORC Exploration Target for the overall project* Range Tonnage (Mt) Zinc (%) Lead (%) Lower 16.5
Slide 15: San Jose Mine
SAN JOSE MINE § Former high-grade zinc producing mine; ceased production in late 1990s due to prevailing metal prices § Excellent condition: underground development extends over a linear length of c. 2.5km § Links to much larger historical Udias zinc mine complex (> 3.5 km of linear length, within p
Slide 16: San Jose Mine – Shallow Deposit with Mine Development in Place
SAN JOSE MINE – SHALLOW DEPOSIT WITH MINE DEVELOPMENT IN PLACE VAR MATSA (Sandfire) Lundin Depth First Atalaya Ascendant Atalaya Pan Global Depth San Jose Quantum 0m 0m Sotiel Top of Gossan Cerro Colorado La Romana -150m base of pit 400m Mines Lagoa Salgada from surface Base of pit San Jose from sur
Slide 17: San Jose Mine – Proven High-Grade with Simple Metallurgy
SAN JOSE MINE – PROVEN HIGH-GRADE WITH SIMPLE METALLURGY San Jose Mine ROM Grades 1970-1988 Simplified Historical Processing Flow Sheet 10 Avg. Zn 8 Grade 6.3% Grade Zn (%) 6 4 Avg. Pb Grade 1.7% 2 0 Zn Pb Avg Zn Avg Pb Current ‘weak’ zinc price offers 2x-3x premium 5000.00 Zinc Price (US$/T) 4000.0
Slide 18: Developed 3D Mineralisation & Development Model
DEVELOPED 3D MINERALISATION & DEVELOPMENT MODEL | ASX:VAR Sources: Refer ASX announcement 21 June 2023 18
Slide 19: Continued Underground Drilling Success Over Multiple Horizons
CONTINUED UNDERGROUND DRILLING SUCCESS OVER MULTIPLE HORIZONS | ASX:VAR Sources: Refer ASX Announcement 25 August 2022 19
Slide 20: Continued Underground Drilling Success – New Lower Lens
CONTINUED UNDERGROUND DRILLING SUCCESS à NEW LOWER LENS § NDDT007B. 21.85m @ 8.50% Zn, 0.38% Pb § including 18.05m @ 10.22% Zn, 0.46% Pb § NDDT007. 23.35m @ 7.09% Zn, 1.72% Pb § including 11.0m @ 11.58% Zn, 3.35% Pb § NDDT014. 14.55m @ 5.81% Zn, 0.90% Pb § NDDT012. 10.30m @ 5.09% Zn, 0.19% Pb § NDDT
Slide 21: Drilling Success – Discovering New Lower Lens at San Jose
DRILLING SUCCESS à DISCOVERING NEW LOWER LENS AT SAN JOSE | ASX:VAR Sources: Refer ASX Announcement 5 October 2023 21
Slide 22: Stepping Out - Udias Historical Drilling Extensions on Strike
STEPPING OUT - UDIAS HISTORICAL DRILLING EXTENSIONS ON STRIKE § S-89D 14.85m @ 8.17% Zn, 0.64% Pb § S-89D 10.70m @ 8.64% Zn, 0.57% Pb § SU3/82 10.90m @ 12.01% Zn, 0.62% Pb § SU10/82 6.20m @ 10.23% Zn, 3.00% Pb § S-89A 6.10m @ 5.54% Zn, 0.57% Pb § S-89 4.80m @ 14.36% Zn, 2.17% Pb | ASX:VAR Sources: R
Slide 23: Stepping Out – Surface Drilling Extensions on Strike
STEPPING OUT – SURFACE DRILLING EXTENSIONS ON STRIKE § Drill-hole SB-18: 22.0m @ 8.16% Zn | ASX:VAR Sources: Refer ASX Announcement 2 March 2023 23
Slide 24: Seeking Resources in the Vicinity of the San Jose Mine – Nov 22
SEEKING RESOURCES IN THE VICINITY OF THE SAN JOSE MINE – NOV 22 | ASX:VAR Sources: Refer ASX Announcement 29 Nov 2022 24
Slide 25: Seeking Resources in the Vicinity of the San Jose Mine – Nov 23
SEEKING RESOURCES IN THE VICINITY OF THE SAN JOSE MINE – NOV 23 | ASX:VAR Sources: Refer ASX Announcements 7 July 2022, 2 March 2023, 5 October 2023 25
Slide 26: Drilling Results Ranked Amongst 'Best of the Best'
DRILLING RESULTS RANKED AMONGST ‘BEST OF THE BEST’ MinerDeck – Top Zinc Intercepts – Q1 2023 MinerDeck – Top Zinc Intercepts – October 2023 | ASX:VAR Source: Variscan Company Reports; Miner `Deck 26
Slide 27: Significant Exploration Upside – Future Drill Targets Identified
SIGNIFICANT EXPLORATION UPSIDE – FUTURE DRILL TARGETS IDENTIFIED FUTURE SURFACE UNDERGROUND DRILLING DRILLING PLANNED FOR PLANNED CY2024 FOR Q4 2023 | ASX:VAR 27
Slide 28: San Jose Mine – Infrastructure & Facilities
SAN JOSE MINE – INFRASTRUCTURE & FACILITIES MUNICIPAL WATER ELECTRIC GRID TREATMENT PLANT CONNECTION CORE SHACK SAN JOSE FORMER MINE ENTRANCE FLOATATION PLANT ROAD ACCESS WORKSHOP ROAD ACCESS CORE SHACK OFFICE CORE LOGGING | ASX:VAR 28
Slide 29: San Jose Mine – Infrastructure & Facilities
SAN JOSE MINE – INFRASTRUCTURE & FACILITIES | ASX:VAR 29
Slide 30: Indicative Timeline of Key Deliverables
INDICATIVE TIMELINE OF KEY DELIVERABLES AGM FY YR END AUG ‘23 SEP ‘23 OCT’23 NOV ‘23 DEC ‘23 JAN ‘24 FEB ‘24 MAR ‘24 APR ‘24 MAY ‘24 JUN ‘24 JUL ‘24 Assay 1 Assay 2 YOUR TITLE Phase 3 Underground Drilling at San Jose Phase 4 Underground Drilling at San Jose YOUR TITLE Surface drilling at San Jose al
Slide 31: Variscan Mines Limited (ASX:VAR) Contact
Variscan Mines Limited (ASX:VAR) Stewart Dickson Managing Director & CEO +44 7799694195 +61 8 93169100 stewart.dickson@variscan.com.au Investor Relations The Capital Network Julia Maguire +61 2 8999 3699 julia@thecapitalnetwork.com.au | ASX:VAR 31 www.variscan.com.au
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