TERTIARY MINERALS PLC - Building and Developing a Multi-Commodity Project Portfolio - Precious Metals, Base Metals and Industrial Minerals.
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Company Presentation
August 2019
TERTIARY MINERALS PLC
Building and Developing a Multi-Commodity
Project Portfolio – Precious Metals, Base
Metals and Industrial Minerals.
Disclaimer The content of information contained in these slides and the accompanying verbal presentation (together, the “Presentation”) has not been approved by an authorised person within the meaning of the Financial Services and Markets Act 2000 (“FSMA”). Reliance upon this Presentation for the purpose of engaging in any investment activity may expose an individual to a significant risk of losing all of the property or other assets invested. If any person is in any doubt as to the contents of this Presentation, they should seek independent advice from a person who is authorised for the purposes of FSMA and who specialises in advising in investments of this kind. This Presentation is being supplied to you solely for your information. This Presentation has been prepared by, and is the sole responsibility of, Tertiary Minerals plc (the “Company”). The directors of the Company have taken all reasonable care to ensure that the facts stated herein are true to the best of their knowledge, information and belief. This Presentation does not constitute, or form part of, an admission document, listing particulars or a prospectus relating to the Company, nor does it constitute, or form part of, any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any shares in the Company nor shall it or any part of it, or the fact of its distribution, form the basis of, or be relied upon in connection with, or act as any inducement to enter into any contract therefor. The information in this Presentation is provided as at the date of this presentation and as such is preliminary in nature, has not been fully verified by the Company and is subject to material amendment, updating and change. The Company undertake no obligation to provide the recipient with access to any additional information or to update this Presentation or any additional information or to correct any inaccuracies in any such information which may become apparent. This document sets out certain features of the Company and does not purport to provide a complete description of the Company or the shares in the Company. No reliance may be placed for any purpose whatsoever on the information contained in this Presentation or on its completeness, accuracy or fairness thereof, nor is any responsibility accepted for any errors, misstatements in, or omission from, this Presentation or any direct or consequential loss however arising from any use of, or reliance on, this Presentation or otherwise in connection with it. By accepting this Presentation you confirm, represent and warrant that you have consented to receive information in respect of securities of the Company and other price-affected securities (as defined in the Criminal Justice Act 1993 (“CJA”)) which makes you an “insider” for the purposes of Part V of the CJA, and you agree not to deal in any securities of the Company until such time as the inside information (as defined in the CJA) of which you have been made aware has been made public for the purposes of the CJA. This Presentation may not be reproduced or redistributed, in whole or in part, to any other person, or published, in whole or in part, for any purpose without the prior consent of the Company. The contents of this Presentation are confidential and are subject to updating, completion, revision, further verification and amendment without notice. The Presentation is being distributed on request only to, and is directed at, authorised persons or exempt persons within the meaning of FSMA or any order made thereunder or to those persons falling within the following articles of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended) (the “Financial Promotion Order”): Investment Professionals (as defined in Article 19(5)), members and creditors of certain bodies corporate (as defined in Article 43 (2)) High Net Worth Companies (as defined in Article 49(2)). Persons who do not fall within any of these definitions should not rely on this Presentation nor take any action upon it but should return it immediately to the Company. This Presentation is exempt from the general restriction in section 21 of FSMA relating to the communication of invitations or inducements to engage in investment activity on the grounds that it is made only to certain categories of persons. Neither this Presentation nor any copy of it should be distributed, directly or indirectly, by any means (including electronic transmission) to any persons with addresses in the United States of America (or any of its territories or possessions) (together, the “US”), Canada, Japan, Australia, the Republic of South Africa or the Republic of Ireland, or to any corporation, partnership or other entity created or organised under the laws thereof, or in any other country outside the United Kingdom where such distribution may lead to a breach of any legal or regulatory requirement. The recipients should inform themselves about and observe any such requirements or relationship. The Company’s ordinary shares have not been, and are not expected to be, registered under the United States Securities Act 1933, as amended, (the “US Securities Act”) or under the securities laws of any other jurisdiction, and are not being offered or sold, directly or indirectly, within or into the US, Canada, Japan, Australia, the Republic of South Africa or the Republic of Ireland or to, or for the account or benefit of, any US persons or any national, citizen or resident of the US, Canada, Japan, Australia, the Republic of South Africa or the Republic of Ireland, unless such offer or sale would qualify for an exemption from registration under the US Securities Act and/or any other applicable securities laws. Past Performance This Presentation contains statements regarding the past performance of the Company’s ordinary shares. Past performance cannot be relied upon as a guide to future performance. Forward-looking Statements This Presentation or documents referred to in it contain forward-looking statements. These statements relate to the future prospects developments and business strategies of the Company and its subsidiaries (the “Group”). Forward-looking statements are identified by the use of such terms as “believe”, “could”, “envisage”, “estimate”, “potential”, “intend”, “may”, “plan”, “will” or the negative of those, variations or comparable expressions, including references to assumptions. The forward-looking statements contained in this Presentation are based on current expectations and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied by those statements. If one or more of these risks or uncertainties materialises, or if underlying assumptions prove incorrect, the Group’s actual results may vary materially from those expected, estimated or projected. Given these risks and uncertainties, potential investors should not place any reliance on forward-looking statements. These forward-looking statements speak only as at the date of this Presentation. No undertaking, representation, warranty or other assurance, expressed or implied, is made or given by or on behalf of the Company or any of its directors, officers, partners, employees or advisers or any other person as to the accuracy or the completeness of the information or opinions contained herein and to the extent permitted by law no responsibility or liability is accepted by any of them for any such information or opinions. Notwithstanding the aforesaid, nothing in this paragraph shall exclude liability for any representation or warranty made fraudulently. January 2019 Company Presentation August 2019 2
Board of Directors
Patrick Cheetham, Chairman
• Geologist.
• 37 years’ experience in mineral exploration.
• 32 years’ experience in public company management.
• Founder of the Company, Dragon Mining Ltd, Archaean Gold NL and Sunrise
Resources plc.
Richard Clemmey, Managing Director
• Chartered Engineer.
• 25 years’ experience in developing and managing mining/quarrying projects
worldwide for Derwent Mining, Lafarge, Hargreaves (GB) Ltd, Marshalls plc and
CFE.
• Board Director since May 2012.
Donald McAlister, Non-Executive Director
• Accountant.
• Previously: Finance Director at Mwana Africa plc, Ridge Mining plc and Reunion
Mining. Currently: Finance Director of ZincOx Resources plc
• 24 years’ experience in all financial aspects of the resource industry, including metal
hedging, tax planning, economic modelling/evaluation, project finance and IPO’s.
• Founding director of the Company.
Company Presentation August 2019 3
Project Portfolio
USA European Storuman
Fluorspar
Projects Projects
Lassedalen
Pyramid Project Fluorspar
Gold
MB Project
Fluorspar
Rosendal
Tantalum
Head Office
Macclesfield Kiekerömaa
& Kaaresselkä
Gold
Paymaster Project
Zinc-Copper-Lead-Silver-Cobalt
Company Presentation August 2019 4
Pyramid Gold Project - Nevada, USA
• Nevada – 5th largest gold producer in
the world
Reno • #1 most desirable mining jurisdiction in
the world – Fraser Institute
• Excellent infrastructure - adjacent to
sealed highway, 25 miles NW of Reno,
Nevada.
• In productive Walker Lane epithermal
gold/porphyry copper belt – host to
numerous multi million ounce gold and
silver deposits
e.g. Goldfield (4.2Moz Au)
Comstock (8.3Moz Au, 192Moz Ag)
Tonopah (1.8Moz Au, 180Moz Ag)
Company Presentation August 2019 5
Pyramid Gold Project – Licence Holdings
9 Patented Claims held under 20 year
Reno lease/purchase option (patented
claims have private land status)
25 unpatented claims staked by
Tertiary
Company Presentation August 2019 6
Pyramid Gold Project – Historical Exploration
• Prospector scale workings with little historical
record from late 19th/early 20th century
• Battle Mountain Gold Explored in 1980s carried
out:
Ruth Mine • Surface rock sampling:
43 widespread historical surface
Western samples assayed up to 7.27g/t Au,
average 1.3 g/t Au
Line
• Soil sampling over area approx. 600m by
600m
Cohesive and open ended gold-in-soil
anomalies including cohesive 750m
long open-ended gold-mercury-arsenic soil
geochemical anomaly on “Western Line”
• 10 drill holes, 8 in Ruth Mine area, 2 on
“Western Line”
Company Presentation August 2019 7
Pyramid Gold Project – Historical Drilling
• Battle Mountain drilling focused on Ruth Mine
area - best result 1.5m grading 1.64 g/t Au
• Only one hole effectively tested Western Line ~
PYR 9:
▪ 1.52m grading 17.8 g/t Au from 94.5
down hole
▪ Ended in 1.52m grading 2.6 g/t Au at
115.8m depth in wide alteration zone
Ruth Mine
Western Line
Company Presentation August 2019 8
Pyramid Gold Project – Soil Anomalies
ARSENIC
GOLD
MERCURY
Company Presentation August 2019 9
Pyramid Gold Project – Western Line Target
WESTERN LINE:
Priority drill target based on:
• Historic workings
• 750m+ long, open ended, coincident multi-element
soil anomaly
• Drill hole PYR 9:
1.52m grading 17.8 g/t Gold from 94.5 down hole
• Wide alteration zone
Western Line Mine workings
Wide alteration zone on Western Line
Looking
Company south July 2019
Presentation
10Pyramid Gold Project - Nevada,USA Planned Exploration 20191 • Soil geochemical sampling programme – to extend open anomalies • IP/Resistivity geophysical survey – to define ore channels • Drilling programme - to test Western Line target Company Presentation August 2019 11
Paymaster Polymetallic Project - Nevada, USA
• 19 claims staked
• Mineralisation
intermittently exposed
and sampled over 1.7
km strike length
East Slope • Grab samples assay
Prospect up to 21% Zn, 6.5%
Valley Pb, 3.3% Cu, 253 g/t
Prospect Ag and 0.11% Co
• 165 soil samples taken
in March 2019 –
significant elevated
levels of Ag, Cu, Zn,
Co and Pb:
▪ Ag: 17.5 ppm
▪ Cu: 896 ppm
▪ Zn: 872 ppm
▪ Co: 33 ppm
▪ Pb: 2,251 ppm
Follow up prospecting in May 2019 identified two prospects for follow up work
East Slope & Valley Prospects
Company Presentation August 2019 12Paymaster Project – East Slope Prospect
East Slope Prospect:
15.8% Zinc, 95 g/t Silver
• Chip sample c. 2m @ 15.8% zinc
& 95 g/t silver
• Associated zinc soil anomaly - 600m long
• Work planned:
• Infill soil sampling
• Magnetic survey
• Follow up drilling as required
Company Presentation August 2019 13Paymaster Project – Valley Prospect
Valley Prospect:
Large outcropping skarn zone – c. 350m long and up to 8m thick
Mine shaft on skarn
Waste material sampled:
11.8% zinc+lead, 180 g/t silver
Work planned:
• Magnetic survey
• Detailed mapping & sampling
• Drill targeting
14Fluorspar – A Strategic Mineral
Company holds three Fluorspar deposits with defined Mineral Resources
• Fluorspar is the commercial name for the mineral
fluorite, composed of calcium and fluorine (CaF2)
• Fluorspar is the predominant commercial source for
the chemical element fluorine
• Fluorine is a STRATEGIC non-metallic element and
the lightest of the halogens and is therefore largely
irreplaceable
• Two principal commercial grades:
➢ Metallurgical grade/Met-spar (60-96% CaF2)
➢ Acid grade/Acid-spar (+97% CaF2)
Company Presentation August 2019 15MB Fluorspar Project - Nevada,USA
Highlights
• Phase 1, 2 & 3 drilling programmes
▪ 35 holes, 5,736 metres
• Large JORC Compliant Mineral Resource Estimate
Classification Million Tonnes (Mt) Fluorspar (CaF2%)
Indicated (9% CaF2 cut-off) 6.1 10.8
Inferred (9% CaF2 cut-off) 80.3 10.7
Total 86.4 10.7
• Phase 4 drilling programme completed following
JORC Mineral Resource Estimate
▪ 4 holes, 1,553 metres - significant lateral and depth extension
of fluorspar mineralisation proven in the Western Area
• Key Opportunities and Challenges:
▪ Metallurgical testwork has indicated that part of the open-pit ore is metallurgically
complex, presenting certain processing challenges
▪ Company has engaged the services of one of the world’s leading consultant fluorspar
metallurgists to assist with the testwork
▪ Project sensitive to transport distance/cost to market
▪ Targeting potential for higher grades to the north-west of deposit following field appraisal
by world renowned geologist Dr Richard Sillitoe.
Company Presentation August 2019 16Storuman Fluorspar Project - Sweden Positive Scoping Study – Scott Wilson • Low Capex: US$ 46 million • Average annual T/O: >US$ 34 million • Pre-Tax NPV (8% coc): US$ 33 million • IRR (100% Equity): 24% • Payback:
Lassedalen Fluorspar Project - Norway
Highlights
• Positive Scoping Study (Wardell Armstrong International) – 2012
Base Case Extended Mine Case
Tonnage Mined (Underground) 3.6mt @ 22.4% Fluorspar 4.5mt @22.4% Fluorspar
Mining Rate 543,000 tpa 543,000 tpa
Acid Grade Fluorspar production/year 100,000 tpa 100,000 tpa
Mine Life 6.6 years 8.25 years
Initial Capital Cost (Capex) US$ 78 million US$ 78 million
Pre-Tax NPV (10% coc) US$ 31.6 million US$ 52.2 million
IRR (100% Equity) 20.20% 24.10%
• JORC Mineral Resource Estimate (SRK
consulting)
• Re-logged and sampled 3.5 km of drill core from
23 of the 28 diamond holes drilled in the 1970’s
JORC Mineral Resource Estimate
Classification Million Tonnes (Mt) Fluorspar (CaF2% )
Inferred 4 24.6
18Strategic Relationship - Possehl Erzkontor GmbH& Co. KG
Memorandum of Understanding (“MOU”) signed with
• Highlights and Key Terms:
▪ Possehl and Tertiary intend to enter into a definitive purchase and sales agreement (“Offtake
Agreement”) for a minimum of 70% of Tertiary’s acid-grade fluorspar production
▪ Possehl will provide part of the pre-financing to Tertiary for working capital needs and/or its
capital investment needs for the development of its fluorspar projects
▪ The MOU provides extends to any near-term revenue generating fluorspar acquisition targets
▪ Possehl will provide invaluable commercial and logistical support and advice to Tertiary during
the development of its fluorspar projects
▪ Possehl, founded in 1915 with headquarters in Lübeck, Germany, is owned by CREMER:
(Founded in 1946; headquarters in Hamburg; circa 70 branch offices and holdings worldwide; circa
1800 employees; annual revenue of >3 billion Euro; sales volume of >10.4 million tonnes in 2016)
▪ Possehl continue to support Tertiary with the development of its fluorspar assets and
evaluation of new projects in the pipeline
Company Presentation August 2019 19Royalty Interest Project
Kaaresselkä & Kiekerömaa - Gold, Finland
• Two legacy gold assets in Finland sold to TSX-V listed Aurion Resources Ltd
• Aurion is a Canadian listed (TSX-V: AU) exploration company 8% owned by Kinross Gold
Corporation and primarily focusing on the development of its Finnish gold projects.
• Deal Highlights:
▪ Received £100,000 initial consideration paid by Aurion: £15,000 in cash and £85,000 in
Aurion shares – sold in Nov 2017 resulting in a profit of £31,264
Tertiary retains royalty interest in the projects:
▪ Pre-Production Royalty on definition of a NI 43-101 (or equivalent) Code compliant
Minerals Resource Estimate on either project:
▪ US$1.00 – US$2.00 – US$3.00 ounce gold: Inferred-Indicated-Measured Mineral
Resources
▪ Net Smelter Returns Royalty (NSR) of 2% on all future gold production from either
property (Aurion can purchase 50% of the NSR from Tertiary for USD$1,000,000 at any
time prior to commencement of commercial production on either project
Company Presentation August 2019 20Summary
• Turnaround Strategy to:
• Build and develop multi-commodity project portfolio – Precious metals, Base Metals and Industrial
Minerals
• Reduce future geographical, technical, permitting and commodity risk exposure
• Exciting new polymetallic project portfolio - Paymaster and Pyramid
• Additional project acquisitions in the pipeline – focus on low cost claim staking
• Three 100%-owned fluorspar assets strategically located in the USA and Europe: 13.1 million tonnes
contained fluorspar (CaF2) resources (JORC classified) - advancing through mine development cycle.
Current Fluorspar price approx. $500/tonne
• Strategic relationship and MOU signed with leading global commodities trading group, Possehl Erzkontor
GmbH & Co. KG – MOU provides for intention to enter into Offtake Agreement and associated partial pre-
financing
• Potential future revenue: Retained Royalty interest in Finnish gold projects
Company Presentation August 2019 21You can also read
