LCL Resources Limited · ASX:LCL
LCL Resources — Metminco — Investor Presentation (March 2018)
52 slides from LCL Resources's investor presentation, Mar 26, 2018
Slide 1: METMINCO LIMITED: The Quest for Giant Gold
METMINCO LIMITED: The Quest for Giant Gold – Exploring & Developing Colombia’s Andean Cauca Belt – Transformational Equity Raising Presentation 26 March 2018
Slide 2: Disclaimer & Important Information
Disclaimer & Important Information ASX Code: MNC.AX; AIM Code: MNC.L NATURE OF THIS DOCUMENT This presentation has been prepared by Metminco Limited (ACN 119 759 349) (Metminco or the Company). This presentation has been prepared in relation to an underwritten renounceable pro-rata entitlement Issue
Slide 3: Disclaimer & Important Information
Disclaimer & Important Information ASX Code: MNC.AX; AIM Code: MNC.L Assumptions have been made by the Company regarding, among other things: the price of gold, the accuracy of capital and operating cost estimates, the ability of the Company to operate in a safe, efficient and effective manner and t
Slide 4: Introduction
Introduction ASX Code: MNC.AX; AIM Code: MNC.L ➢ Listed in late 2007, Metminco (MNC), 24 Month Share Price Performance & Volume(1) incorporated in Australia, is an Australian Securities Exchange (ASX) and London AIM listed exploration and mining company, with a portfolio of projects located in Colom
Slide 5: Refinance, Restructure, Relaunch
Refinance, Restructure, Relaunch ASX Code: MNC.AX; AIM Code: MNC.L ➢ Provide cash for high impact exploration in 2018 1. Refinance ➢ Pay out convertible note and creditors ➢ Entitlement Issue structure to protect existing shareholders ➢ Reduce overhead ➢ Re-direct activities to exploration 2. Restru
Slide 6: Company Snapshot: Current
Company Snapshot: Current ASX Code: MNC.AX; AIM Code: MNC.L Capital Structure (as at 20 March 2018 pre-trading halt) Shareholder Ownership Structure (3) Ordinary Shares 127,200,299 1.2% Ticker: ASX & AIM listed MNC Share Price (A$) (20 Mar 2018) 1.6¢ Market Cap (undiluted) (20 Mar 2018) A$2.0m Optio
Slide 7: The Value Story: Low Hanging Fruit on Giant Tree
The Value Story: Low Hanging Fruit on Giant Tree ASX Code: MNC.AX; AIM Code: MNC.L • Quinchia Gold Portfolio located in Colombia on Andean Cauca trend, host to world- class gold porphyry deposits: La Colosa (28Moz)(1) & Marmato (8.6Moz)(2) ➢ Tesorito prospect: Initial drilling returned 384m @ 1.01g/
Slide 8: Recent History
Recent History ASX Code: MNC.AX; AIM Code: MNC.L 2018 Milestones 1. Drill confirmatory holes at Tesorito 2. Conclude 2016 2017 2018 formalized agreement or JV Purchase of Colombia Miraflores DFS & Restructure & Relaunch with gold major at Gold Portfolio Start Permitting Chuscal Reinvigorate Board &
Slide 9: Cash Injection: Dual Function - Survive & Prosper
Cash Injection: Dual Function - Survive & Prosper ASX Code: MNC.AX; AIM Code: MNC.L Capital Structure: Current Capital Structure: Post Issue | Raise $5.7m Market Capitalisation A$2.0m Market Capitalisation @ 0.8¢ (1) A$6.8m ~A$3.0m Cash ~A$0.8m Cash(2) (~A$5.7m in from funding) Convertible Debt (P&I
Slide 10: What Are You Buying for A$3.8m EV Post Issue?
What Are You Buying for A$3.8m EV Post Issue? ASX Code: MNC.AX; AIM Code: MNC.L Highly Prospective ➢ Tesorito Prospect: Gold-copper porphyry-style discovery with initial drilling returning TS-DH-02 Exploration grading 384m @ 1.01g/t Au and adjacent high chargeability anomaly as yet untested. 1 Prosp
Slide 11: “Core” Asset Overview & Locations
“Core” Asset Overview & Locations ASX Code: MNC.AX; AIM Code: MNC.L Location: Quinchia Gold Portfolio (Colombia) Summary: Quinchia Gold Portfolio (Colombia) Current Concession 6,043 Ha Pending Applications 3,792 Ha 100% (deferred milestone payments owed to Ownership RMB – See Appendix) Drilling to D
Slide 12: Key “Non-Core” Asset Overview & Locations
Key “Non-Core” Asset Overview & Locations ASX Code: MNC.AX; AIM Code: MNC.L Mollacas Project (Chile) Vallecillo Project (Chile) • Copper leach project discovery; • Gold-zinc project discovery - porphyry related base and precious metal mineralization containing gold, silver, zinc, lead • Located in R
Slide 13: Colombia - Cauca Belt: Address for Giant Gold
Colombia - Cauca Belt: Address for Giant Gold ASX Code: MNC.AX; AIM Code: MNC.L Status: PF: Prefeasibility F: Feasibility 8.6 Moz Marmato(2) Miraflores 0.84 Moz Au (M&I Resource) Gran Colombia PR FC: Feasibility Completed PR: Production METMINCO (100%) / FC C: Construction 7 Moz Gramalote PF Marmato
Slide 14: Tesorito: Low Hanging Fruit 1.0
Tesorito: Low Hanging Fruit 1.0 ASX Code: MNC.AX; AIM Code: MNC.L • Initial drilling (3 holes) all intersected >250m of anomalous gold mineralisation. • TS-DH-02 returned >1g/t Au over 384m from surface. • Significant surface multi- element geochemical anomaly, and adjacent to high chargeability ano
Slide 15: Tesorito: Low Hanging Fruit 1.0
Tesorito: Low Hanging Fruit 1.0 ASX Code: MNC.AX; AIM Code: MNC.L AG AU 5.00 4.00 3.00 g/t 2.00 1.00 1.01g/t Au 0.00 16 26 33 40 49 56 65 75 85 93 154 163 170 101 110 116 122 131 137 145 178 187 195 205 213 223 233 243 253 261 269 279 288 298 306 314 323 333 342 351 363 373 383 391 398 Drill Depth (
Slide 16: Tesorito: Low Hanging Fruit 1.0
Tesorito: Low Hanging Fruit 1.0 ASX Code: MNC.AX; AIM Code: MNC.L 16
Slide 17: Chuscal: Low Hanging Fruit 2.0
Chuscal: Low Hanging Fruit 2.0 ASX Code: MNC.AX; AIM Code: MNC.L • Significant porphyry gold target. 176Ha • Gold geochemical anomalies >100ppb over majority of the 176Ha sampled, includes 500m x 250m zone > 0.5g/t Au. • No geophysics or drilling. • Title: subject to Option Agreement with AngloGold.
Slide 18: Chuscal: Low Hanging Fruit 2.0
Chuscal: Low Hanging Fruit 2.0 ASX Code: MNC.AX; AIM Code: MNC.L • Artisanal underground working with small milling and gravity circuit. • Mineralization is in both high-grade and lower-grade stockwork veining. 18
Slide 19: Other Projects: Miraflores & Chile
Other Projects: Miraflores & Chile ASX Code: MNC.AX; AIM Code: MNC.L ➢ Miraflores • 800m from Tesorito Prospect; 2km from Chuscal Target (under negotiation) • 840koz (M+I) gold Resource @ 2.8g/t Au • 457koz (P+P) gold Reserve @ 3.3g/t Au • DFS completed late 2017, 45koz p.a. for 9.5 years • Capex US
Slide 20: People: Board
People: Board ASX Code: MNC.AX; AIM Code: MNC.L • Kevin has 30+ years’ • Roger has 40+ years of experience in the mining and experience in the mining industry, finance industries including as which has included a geologist, financier in US environmental, strategy, project and Australia and CEO devel
Slide 21: Placement & Entitlement Issue Terms
Placement & Entitlement Issue Terms ASX Code: MNC.AX; AIM Code: MNC.L ➢ Fund Raising • Placement to raise circa A$150k using the Company’s available placement capacity under ASX Listing Rule 7.1. Placement Offer price of A$0.008 per new share together with a one (1) for three (3) Placement Options e
Slide 22: Use of Funds & Pro-Forma Capital Structure
Use of Funds & Pro-Forma Capital Structure ASX Code: MNC.AX; AIM Code: MNC.L • With momentum generated from a Post-Issue Capital Structure successful completion of the capital (assumes maximum shares issued under the Entitlement Issue) raising, the Company will focus on Shares on issue (2) 843.8m pa
Slide 23: Anticipated Timetable
Anticipated Timetable ASX Code: MNC.AX; AIM Code: MNC.L Event (1) Entitlement Issue announced 23 March 2018 Lodgement of Prospectus with ASIC 23 March 2018 Lodgement of Prospectus & Appendix 3B with ASX 23 March 2018 Settlement of Placement and lodgement of Appendix 3B relating to Placement 26 March
Slide 24: APPENDICES
APPENDICES
Slide 25: Deferred Acquisition & Contingency Payments
Deferred Acquisition & Contingency Payments ASX Code: MNC.AX; AIM Code: MNC.L RMB Payments • In May 2016, Quinchia Gold Portfolio purchased from RMB Australia Holding Limited (RMB); • Remaining milestone cash payments to RMB to occur up until 2020: ➢ Second payment of A$1 million on 20 June 2018 (to
Slide 26: Note for UK Shareholders in connection with the Entitlement Issue
Note for UK Shareholders in connection with the Entitlement Issue ASX Code: MNC.AX; AIM Code: MNC.L • The following is extracted from the Prospectus to the Entitlement Issue with respect to the offer to shareholders with a registered address in the United Kingdom • Neither the information in this Pr
Slide 27: Note for Chilean Shareholders in connection with the Entitlement Issue
Note for Chilean Shareholders in connection with the Entitlement Issue ASX Code: MNC.AX; AIM Code: MNC.L • The following is extracted from the Prospectus to the Entitlement Issue with respect to the offer to shareholders with a registered address in Chile o Considering that Metminco Limited has not
Slide 28: Miraflores: Feasibility Study Outcomes
Miraflores: Feasibility Study Outcomes ASX Code: MNC.AX; AIM Code: MNC.L CAPEX of 9.5 year mine life Gold recovery rate 4.33Mt @ 3.3g/t for US$71.8 million* producing of 92% over life of 457,000oz Au P&P before optimisation ~45,000oz gold p/a mine Gold Reserve Asset 100% owned Payback Period After T
Slide 29: Miraflores: Mineral Resource and Reserve
Miraflores: Mineral Resource and Reserve ASX Code: MNC.AX; AIM Code: MNC.L JORC Mineral Resource (1.2g/t Au cut-off) (March 2017)(1) Resource Mt Au (g/t) Ag (g/t) Au (koz) Ag (koz) Classification Measured 2.96 2.98 2.50 283 237 Indicated 6.31 2.74 2.90 557 588 Total (M&I) 9.27 2.82 2.77 840 825 Infe
Slide 30: Miraflores Positioned Favourably on the Global Gold Cost Curve
Miraflores Positioned Favourably on the Global Gold Cost Curve ASX Code: MNC.AX; AIM Code: MNC.L 1800 1600 1400 1200 US$/oz 1000 800 600 Metminco 400 Total AISC 200 US$643/oz 0 0 20 40 60 80 100 Cumulative Gold Production (%) Source: Barrick February 2016 Investor Day Presentation 30
Slide 31: Miraflores: First Cost Quartile Gold Operation
Miraflores: First Cost Quartile Gold Operation ASX Code: MNC.AX; AIM Code: MNC.L Low Capital and Operating Costs*; Attractive IRR All-in Sustaining Costs* US$643.00 per payable Au-oz Item Units Oct 2017 1300 Mineral Material Processed Kt 4,326 1200 LoM Years 9.33 1100 Gold Recovered Koz 421 1000 Mar
Slide 32: Miraflores: Project Area
Miraflores: Project Area ASX Code: MNC.AX; AIM Code: MNC.L Admin. Tailings Surface Filter Outcrop of Existing Breccia Access Portal ROM Proposed Existing New Portal Access & Decline Portal Plant 32
Slide 33: Miraflores: Underground Mine Development
Miraflores: Underground Mine Development ASX Code: MNC.AX; AIM Code: MNC.L Underground Development Design ➢ Underground mining operation with low impact on surrounds. South Portal ➢ Ore processing via gravity and float Slopes concentration followed by cyanide leaching. North Portal Drift ➢ 62% of go
Slide 34: Miraflores - Plant Layout
Miraflores - Plant Layout ASX Code: MNC.AX; AIM Code: MNC.L ROM Primary Crusher Product Screen Secondary & Fine Ore Bin Tertiary Crusher Classification and Gravity Recovery Ball Mill Flotation Cyanidation 34
Slide 35: Miraflores - CAPEX Breakdown and Optimisation
Miraflores - CAPEX Breakdown and Optimisation ASX Code: MNC.AX; AIM Code: MNC.L Pre-production Capital Expenditure US$m* Item Optimisation by Metminco Oct 2017 Significant reduction in underground development due to increase in Underground Mining 14.0 distance between levels and reduction in main ra
Slide 36: Miraflores: Sensitivity to Gold Price - Feasibility Study (Oct 2017)
Miraflores: Sensitivity to Gold Price - Feasibility Study (Oct 2017) ASX Code: MNC.AX; AIM Code: MNC.L Sensitivity to Gold Price US$1,200 US$1,300 US$1,400 Key Financial Indicators* Unit Au/oz Au/oz Au/oz C1 Cash Cost** US$ per Au/oz 595 599 603 AISC-cost US$ per Au/oz 639 643 647 EBITDA (LoM averag
Slide 37: Miraflores: Formalisation Process
Miraflores: Formalisation Process ASX Code: MNC.AX; AIM Code: MNC.L • Two characterizations of the informal miners present in Miraflores (2013 and 2016/2017). • Nearly 200 informal miners identified. • Formalization plan: ⁃ Priority in the recruiting of the workforce; ⁃ Productive plan; ⁃ Training,
Slide 38: Social Projects
Social Projects ASX Code: MNC.AX; AIM Code: MNC.L RELATIONSHIP WITH INFRASTRUCTURE EDUCATIONAL INDIGENOUS CULTURAL COMMUNITIES Aid on the construction and 450 education kits donated to the Donation of uniforms for Consultation process with the adaptation of the Miraflores rural community of Miraflor
Slide 39: Sydney Office
Sydney Office Suite 401 6 Help Street Chatswood NSW 2067 PH: +61 (0) 2 9460 1856 FX: +61 (0) 2 9460 1857 E: info@metminco.com.au www.metminco.com.au Medellin Office Miraflores Compania Minera S.A.S Carrera 36 No 2 Sur 60 Int 1301 Poblado Alejandria Medellin Colombia PH: +57 4 3121196 or +57 4 312132
Slide 40: Appendix A JORC Code, 2012 Edition – Table 1: Tesorito and Chuscal
Appendix A JORC Code, 2012 Edition – Table 1 report: Tesorito and Chuscal Section 1 Sampling Techniques and Data (Criteria in this section apply to all succeeding sections.) Criteria JORC Code explanation Commentary Sampling • Nature and quality of sampling (eg cut channels, random chips, or • Detai
Slide 41: JORC Table 1: Logging and Sub-sampling
Criteria JORC Code explanation Commentary Logging • Whether core and chip samples have been geologically and • The core has been geologically logged and sampled to a level of geotechnically logged to a level of detail to support appropriate detail to support geological modelling and mineralisation s
Slide 42: JORC Table 1: Location of Data Points
Criteria JORC Code explanation Commentary including the sampling data underlying the information in the releases had been verified. Verification included a review and validation of the applicable assay databases and reviews of assay certificates. Location of • Accuracy and quality of surveys used to
Slide 43: Section 2 Reporting of Exploration Results
Criteria JORC Code explanation Commentary 2013 and 2014. Specifically, earlier disclosures stated that the data, including the sampling data underlying the information in the releases had been verified. Verification included a review and validation of the applicable assay databases and reviews of as
Slide 44: JORC Table 1: Deposit Type and Exploration History
Criteria JORC Code explanation Commentary entered into an exploration agreement with the AMM, and carried out exploration including diamond drilling in 2005 to 2007 at Miraflores, completing 1,414.75m. • In 2007 Kedahda optioned the project to B2Gold Corp. (B2Gold), which carried out exploration inc
Slide 45: JORC Table 1: Drill Hole Information
Criteria JORC Code explanation Commentary magnetite in disseminations as well as in veinlets and stockworks of quartz. Pyrite, chalcopyrite, molybdenite, and minor bornite are the main sulphides observed. Drill hole • A summary of all information material to the understanding of the Hole ID Easting
Slide 46: JORC Table 1: Balanced Reporting and Other Data
Criteria JORC Code explanation Commentary Balanced • Where comprehensive reporting of all Exploration Results is not • Combined and included selected intervals of assay results are shown reporting practicable, representative reporting of both low and high grades on the sections (Appendix E) accompan
Slide 47: Appendix B Tenure Schedule
Appendix B Tenure Schedule Tenements Miraflores Comañía Minera SAS MINING REGISTRY No. TENEMENT HOLDER EXPIRATION DATE TIPE OF CONTRACT STAGE EXTENSION OF EXPLORATION DATE An extension of the tenement was requested, which is valid for 15 years and expires in 2019. Miraflores Likewise, in April, 2017
Slide 48: Appendix C Tenement Map
Appendix C Tenement Map 1140000 1145000 1150000 1155000 1160000 1165000 Ü Rio Sucio _ ^ LEGEND 1090000 1090000 625-17 Seafield's Mining Titles (Agreement with Anglogold, Feb 11th 2010) Seafield's Mining Titles (Directly Acquired) FCG_08353X DLK-141 010-87M Miraflores FCG-08354X DLK-142 DLK-141A FCG_
Slide 49: Appendix D Geology Map
LEGEND LITHOLOGY [EZ] Mirafores Breccia (Miocene) 1207" “XY Coordinate System: WGS_1984_UTM_Zone_18N Intrusive Rocks Sedimentary Rocks oo ‘Amaga Formation (Tertiary) ‘Andestic Porphyry - Miocene Andestic Porphyry (Plagioclase rich) [J sandstone HE Miocene [7 ested sandstone TE ete dinrite Porphyry -
Slide 50: Appendix E Cross Sections
Appendix E Cross Sections TESORITO PROJECT Vertical Section Litholoay | Drill hole TS-DH-01 Looking to NE Granodioritic Porphyry LEGEND ‘— Drill Hole Trace NH! 002 68S Dacitic Porphyry Monzonite Volcanic Rocks Barroso Formation | Structures —:— Faults 1100 m 268.5 m@)\0'46 g/tAu‘and|0!03 6 Cu: TS_DH
Slide 51: Appendix E (continued)
Appendix E (continued) LEGEND a | | TESORITO PROJECT *—1 Drill Hole Trace 5 5 Vertical Section = Drill hole TS-DH-02 Mithestoory Looking to NE QO intrusive Breccia cs Granodioritic Porphyry Dacitic Porphyry Monzonite Volcanic Rocks Barroso Formation 4100 m 29.3 m @ 1.9 g/t Au and 0.12 % Cu 384 m @ 1
Slide 52: Appendix E (continued)
Appendix E (continued) TESORITO PROJECT Vertical Section Drill hole TS-DH-03 Looking to NE GEN! @— Drill Hole Trace Lithology GE intrusive Breccia cs) Granodioritic Porphyry Dacitic Porphyry Monzonite Structures —-— Faults TS-DH-03 > 254.9m @ 0.51 git Au and 0.05 % Cu 23.15 m @ 0.42 git Au and 0.04