Altoro Metals Limited · ASX:ARO
Altoro Metals — Variscan Mines — Shareholder Meeting (2016)
26 slides from Altoro Metals's shareholder meeting presentation, 2016
Slide 1: 2016 AGM Presentation
2016 AGM Presentation Greg Jones Managing Director
Slide 2: Disclaimer and Competent Persons Statement
Disclaimer and Competent Persons Statement This presentation contains forward looking statements that are subject to risk factors associated with mineral resource businesses. It is believed that the expectations reflected in these statements are reasonable but they may be affected by a variety of va
Slide 3: Company Snapshot
Company Snapshot Two high grade deposits (zinc-rich and Capital Structure Shares (million) at 30 Sept 519 tungsten) with genuine mine potential Options (million) at 30 Sept 188 Seven tenements $ in bank at 30 Sept $1.6 million Advanced projects only – old mines or Share Price 1.9 cents Market
Slide 4: Last 12 months
Last 12 months JORC Mineral Resource estimate at Porte-aux-Moines (Merléac Project) 2.2Mt grading 6.0% zinc, 1.3% lead, 0.8% copper, 80.6 g/t silver and 0.9 g/t gold First quartile in zinc equivalent grade Two VMS corridors with seven centres of mineralisation outlined at Merléac VTEM surv
Slide 5: European Metallogeny
European Metallogeny Areas of focus
Slide 6: Project Portfolio
Project Portfolio Project Area Commodity Significant High grades Pre-JORC Type 2 (km ) old mines in exploration Resource Merléac 411 Zn, Pb, Cu, Ag, Au VMS Silfiac 173 Zn, Pb, Ag, Ge Vein Tennie 205 Zn, Pb, Cu, Au VMS Beaulieu 278 Sn, W Stockwork and vein Loc Envel 336 W, Cu Skarn and stockwork St P
Slide 7: Projects in Brittany
Projects in Brittany ® Paris Loc Envel/ FRANCE con ae \ Merléac 77 e : Rennes VW, : e Beaulieu Abbaretz Mine Le Mans = [__] Paris Basin Sediments 2] [J carboniferous - Fy [J Metamorphic domain E| (EBS Paleozoic (Pre Carb) 3 [J cadomian basement &| [> Brioverian Sx Principal structures 38) [HI ordovi
Slide 8: Merléac
Merléac Volcanogenic massive sulphide (VMS) belt Advanced, high grade, Zn-Pb-Cu-Ag-Au deposit – Porte-aux-Moines (PAM) Numerous prospects – VMS cluster
Slide 9: Porte-aux-Moines
Porte-aux-Moines Extensive work by BRGM* from 1975 to 1985 • 6,843m surface drilling • 2,830m underground drilling • 2km underground development Value of work completed to date >A$10M *Bureau de Recherches Géologiques et Minières - the French geological survey
Slide 10: Porte-aux-Moines
Porte-aux-Moines variscan mines 260400mE 260500mE 6815600mN Decline Interpreted mineralisation Chert dominant Clastic sediments and cherts HU08 Porte-aux-Moines Geology and Mineralisation ° 25 50 Crosscut and drive development Plan View at -150 metre level —— Felsic and intermediate volcanics
Slide 11: Porte-aux-Moines
Porte-aux-Moines Mineral Resource 2.2Mt grading 6.0% zinc, 1.3% lead, 0.8% copper, 80.6 g/t silver and 0.9 g/t gold* Open along strike 1.1Mt at higher grades in Main Zone thickened lens Averaging 16.3m thick Drilling planned to commence shortly Initially 3 holes for 1000m High grade mine
Slide 12: PAM Mineral Resource
PAM Mineral Resource High grade, high $ value Top grade quartile against other zinc-rich deposits Similar in grade to other advanced Australian zinc projects such as Hayes and Thalanga Tonnage expansion to move into feasibility studies Initial target 3.5Mt+ Grade is King The zinc equivalen
Slide 13: PAM Resource Comparison
PAM Resource Comparison \7, VaRiscan Zinc Equivalency (Zn Eq %) ASX-Listed Zinc Stocks Red = producer Green = developer Blue = explorer T T 6% 8% Zinc Grade (%) T T 1 10% 12% 14% Bubble size = contained Zn Eq tonnes
Slide 14: Merléac Exploration
Merléac Exploration Seven confirmed VMS prospects Two VMS trends over 22km Numerous VTEM anomalies requiring follow up Typical VMS cluster Former drilling returned ore grade intersections Les Essarts: 1.25 metres @ 7.0% zinc, 3.04% lead, 0.22% copper from 80 metres in LSS2, and 1.0 metre
Slide 15: Zinc Price and Supply
Zinc Price and Supply Unsustainable zinc price to maintain production levels Significant recent mine closures creating global supply shortage • Glencore: -500Kt • Nyrstar: -50Kt • MMG: Century -500Kt • Vendanta: Lisheen -160Kt ~9% production off-line Falling warehouse stocks Falling smelte
Slide 16: St Pierre Gold Project
St Pierre Gold Project 386km2 over France’s third largest goldfield Produced 334,000oz Au to 1952 Average production grade: 12g/t Au Max depth of 170m over a strike length of 1.6km Old drilling - shallow, thick, un-mined gold zones
Slide 17: St Pierre Exploration
St Pierre Exploration St Pierre Rock chip results Ce mS RNA YA La Rouillére @ 6690000m N MES RO ERGO SSeS La Belliére Mine 334,000 oz gold \ Assays - g/t Au ——~ Road 40 to 159 10 to 40 5 to 10 1to5 0.5 to 1.0 0.1 to 0.5 0 to 0.1 Shear zone Township
Slide 18: Ville Tirard Prospect
Ville Tirard Prospect Two holes drilled 1952 Intersected strong gold mineralisation Near surface ~15-20 true thickness individual assays between 0.5 to 33g/t Au Averaging around 3-4g/t Au Two core holes planned First of the new Variscan drilling
Slide 19: Belleville Prospect
Belleville Prospect Proposed RC drill traverses
Slide 20: Couflens PER
Couflens PER Covers Salau, formerly one of the world’s highest grade tungsten mines Mine produced 0.93Mt at 1.5% WO3 for around 11,500 tonnes of WO3 in concentrate In the mine’s latter years, production grades were 2.0 to 2.5% WO3
Slide 21: Salau and funding
Salau and funding Salau contains significant copper and gold Salau production tonnage and grade values (circa 10g/t gold in Veronique) 80,000 4.0 70,000 3.5 Previous drilling confirmed the continuation 60,000 3.0 Head Grade (%WO3) of the mineralised system, enabling the mine Tonnes milled 50,000
Slide 22: Salau Exploration
Salau Exploration w E i Ne 6185000mN = a 8 —— I a _ | LE, N — — 0 200m Targets Outside Mine Area COUFLENS PROJECT Geology and key prospects Granodiorite Carboire Limestone Blue Schists Upper Limestone Barregiennes Formation Graphitic and Calcareous Sediments Mont Rouch Schists and Pelites Fault + MD
Slide 23: Salau Mine
Salau Mine VaRISCAN 1) == 7 Bois du Maillet W variscan mi Approx. drill hole pierce points around lower Veronique Bois d’Anglade Low gradefbarren me High grade < Couflens Project Salau Long Section 200m Mineralised Zones HF Nora GF sua Golfe S.C. [J veronique [EG Granite/Granodiorite [HE Limestone ™
Slide 24: Salau Pictorial
\) VaRiscan Salau Pictorial
Slide 25: Variscan Highlights
Variscan Highlights Seven tenements Advanced, high grade zinc-rich deposit – PAM - genuine mine potential PAM 2012 JORC Mineral Resource – expand by one third to justify feasibility studies Clear zinc upside – supply shortfall appearing and price increase forecast High quality gold targets
Slide 26: QUESTIONS?
QUESTIONS? VARISCAN MINES LIMITED ABN: 16 003 254 395 Level 1, 80 Chandos Street, St Leonards NSW 2065 Postal: PO Box 956, Crows Nest NSW 1585 Telephone: +61 2 9906 5220 Facsimile: +61 2 9906 5233 Email: info@variscan.com.au Website: www.variscan.com.au ASX Code: VAR