SOUTH AMERICAN GOLD STRATEGIC FOOTPRINT IN COLOMBIA & URUGUAY - Corporate Overview - Orosur Mining
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
SOUTH AMERICAN GOLD STRATEGIC FOOTPRINT IN COLOMBIA & URUGUAY Corporate Overview www.orosur.ca I TSX:OMI, AIM:OMI I September 2018
Disclaimer This document has been issued by Orosur Mining Inc. (the “Company”). This document does not 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 securities of the Company, nor shall any part of it nor the fact of its distribution form part of or be relied on in connection with any contract or investment decision relating thereto, nor does it constitute a recommendation regarding the securities of the Company. In particular, this document and the information contained herein does not constitute an offer of securities for sale in the United States. This document is being supplied solely for information. The information in this document has been provided by the Company or obtained from publicly available sources. No reliance may be placed for any purposes whatsoever on the information or opinions contained in this document or on its completeness. No representation or warranty, express or implied, is given by or on behalf of the Company or any of the Company’s directors, officers or employees or any other person as to the accuracy or completeness of the information or opinions contained in this document and no liability whatsoever is accepted by the Company or any of the Company’s members, directors, officers or employees nor any other person for any loss howsoever arising, directly or indirectly, from any use of such information or opinions or otherwise arising in connection therewith. Nothing in this document or in the documents referred to in it should be considered as a profit forecast. Past performance of the Company or its shares cannot be relied on as a guide to future performance. All statements, other than statements of historical fact, contained in this presentation constitute "forward-looking statements" within the meaning of certain securities laws, including the "safe harbour" provisions of the Securities Act (Ontario) and the United States Private Securities Litigation Reform Act of 1995 and are based on expectations estimates and projections as of the date of this presentation. Such forward-looking statements include statements relating to obtaining required expansion of mining and environmental permits in Colombia, completion of Phase 1, Phase 2 and Phase 3 of Newmont’s earn-in at Anzá including cash payments of US$4 million to Orosur, completion of a pre-feasibility study and a feasibility study at Anzá, development of a mine at Anzá and commencement of commercial production, continuation of the mine plan in Uruguay with the Veta A underground project and a successful exit of creditor protection of Loryser. Such statements are subject to significant risks and uncertainties, and actual results and future events could differ materially from those anticipated in such statements. Such risks and uncertainties that may affect actual results include, but are not limited to; results of future exploration at Anzá, decisions of Newmont to continue through Phase 1, Phase 2 and Phase 3 of the earn-in, environmental base line results, social base line results, upgrading camp facilities, initiation of more active communities engagement, permitting time lines; the failure of plant; equipment or processes to operate as anticipated; accidents; labour disputes, requirements for additional capital and the price of gold, the ability of the Company to complete a reorganization in Uruguay with the government or third parties, the ability to resume production after placing the mine on care and maintenance, ability to raise capital for operations in Uruguay, Other risks and uncertainties are included in the Company’s most recently filed Annual Information Form under the heading “Risk Factors”. The Company has made certain assumptions about the price of gold, the development of the Anzá project the continuation of the Company as a going concern. The Company does not intend to update any forward-looking statements except to the extent required by applicable law. Qualified Person's Statement All technical information related to the current assets of Orosur Mining in this presentation has been reviewed by Miguel Fuentealba, a Mining Engineer who is considered to be a Qualified Person under NI 43-101 reporting guidelines. Mr. Fuentealba is a graduate in Mining Engineering from the University of Santiago de Chile and is an AusIMM Member and Qualified Person of Chilean Mining Commission. Mr. Fuentealba has 20 years of professional experience in the field of mining engineering, mine development and management. For further details regarding any of Orosur’s projects, please refer to the technical reports available under Orosur company profile, or Waymar Resources profile for previous Anzá technical reports, on SEDAR at www.sedar.com Non-GAAP Financial Measures Cash flow from operations and cash cost per ounce are not measures that have any standardized meaning prescribed by IFRS and are considered non-GAAP measures. Therefore, these measures may not be comparable to similar measures presented by other issuers. These measures have been presented in this presentation as additional information regarding the Company’s financial performance and financial position. Cash flow from operations is calculated by adding back non-cash items to net earnings. Contribution margin has been calculated by deducting operating expenses from sales. Operating expenses include movements in inventories but exclude operating amortization and depletion. Cash cost per ounce are determined according to the Gold Institute Standard and consist of site costs for all mining, processing, administration, royalties, refining charges, silver credits and inventory adjustments relating to metal production. Capital expenditure, depletion and amortization, corporate costs and financing costs are not included. Cash costs per ounce are total cash costs divided by gold ounces produced. Orosur Investor Presentation I www.orosur.ca 2
Strategic Footprint in Prolific Belts
COLOMBIA, Anzá
High Grade Gold Discovery with multiple untested targets
• Antioquia Department
• Strategic alliance with Newmont funding to BFS
• Between Buritica and El Roble-Marmato deposits
• High grades over significant widths
• Mining and environmental permits in place
URUGUAY, San Gregorio
Greenstone Belt next to Producing Mine
• Northern Uruguay, close to Brazil
• Underexplored 100 km long greenstone belt
• Produced over 1.4Moz to date
• Built many open pits, 2 underground mines
• Operating subsidiary in voluntary creditor protection
• Mine in care and maintenance
Orosur Investor Presentation I www.orosur.ca 3
Sept 2018 Strategic Colombian Agreement with Newmont
Exploration & Option Agreement Placing
Three phase earn-in of up to 75% in Anzá by spending a minimum US$30.0mm over 12 • US$2.0mm
years, completing an NI 43-101 feasibility study & making cash payments to Orosur
equaling a US$4.0mm • Purchased 29,213,186 shares at
C$0.091 per share
• Phase 1, earning 51% interest by spending US$10.0mm over 4 years & making cash
payments equaling US$2.0mm during the first 2 years. After Phase 1, Newmont may • Newmont owns 19.9% of the
elect to form a JV Company
• In Phase 2, earning additional 14% interest by sole-funding US$20.0mm within 4 years, • Granted the right to participate in
completing an NI 43-101 pre-feasibility study & making cash payments to Orosur future equity offerings to maintain
equaling a total of US$2.0mm. its ownership level
• In Phase 3, earning an additional 10% interest by completing an NI 43-101 compliant
feasibility study within four years
Joint Funding and Financing Option
• After Phase 3 earn-in, Orosur may elect for Newmont to fund all expenditures until
commencement of commercial production. If so, Newmont’s interest shall increase by
5% to 80% and Orosur must pay back post-FS expenses from its share of production
Orosur Investor Presentation I www.orosur.ca 4
Strategy: Investment Summary
Value Proposition
• Colombia: Prolific belt, known drill intersected mineralization, untested anomalies, strong
permitting position
Strong Asset Base
• Uruguay: Large asset base with exploration and development upside. Strong jurisdiction
for Orosur
• Externally funded high grade gold exploration project in Colombia
Financed • Cash injection of US$2.0mm & influx of additional US$2.0mm of non-dilutive cash over
next 2 years
• In Colombia, Potential to:
Opportunities for a significant re-
rating o Either own 25% of a Newmont mine; or
o Develop a significant project in Anzá
• In Uruguay, progress a fair and balanced solution with government and third parties
Orosur Investor Presentation I www.orosur.ca 5
Anzá, Colombia Drill Bit Success, More to Follow Strategic Agreement with Newmont >200km2 property package Strategic alliance with Newmont 1 high grade discovery, gold mineralization confirmed in another target 3 untested gold targets in coincident geochem and geophysical anomalies
Strategically Located in Prolific Belt
Note 1: Sources from company websites & public disclosure as at 5 September 2018 (as set forth in Appendix 1)
Orosur Investor Presentation I www.orosur.ca Miguel Fuenteabla, Orosur’s Qualified Person, has been unable to verify the information concerning adjacent properties and th e 7
information is not necessarily indicative of the mineralisation of the Anzá Property
Tactical Acquisition During Bear Market (2014) 1. Well positioned to develop a project • 100% owned - no 3rd party commitments • All season access with excellent infrastructure, including grid power, water and labour 2. High grade gold discovered at APTA • Abundant high grade drilled gold intercepts 3. Mining & environmental permits already in place • Existing today for a smaller operation, will need to be expanded • Located between 700 – 2,000m elevation 4. Significant upside • APTA remains open along strike and at depth • APTA and Charrascala only tested. Another 3 identified targets available. • +200km2 property 5. Recent Drilling • Consistent high grade intercepts Orosur Investor Presentation I www.orosur.ca 8
APTA: Outstanding Historic Drilling Results¹
Hole From To Interval Au Ag Zn
# m m m g/t g/t %
MAP‐11 213.0 219.0 6.0 18.26 1.95 0.35
including 217.5 219.0 1.5 72.30 6.90 0.93
MAP‐20 145.0 186.0 41.0 3.85 1.39 1.25
including 171.3 177.0 5.7 19.84 3.94 1.66
MAP‐21 224.0 242.0 18.0 14.14 2.05 2.83
including 225.0 229.4 4.4 45.62 5.47 10.59
252.0 253.0 1.0 10.85 1.80 0.67
MAP‐29 183.0 194.9 11.9 10.57 2.40 1.61
including 185.0 187.0 2.1 40.25 4.85 4.64
MAP‐33 157.1 179.5 22.4 10.42 1.87 1.56
including 165.0 170.8 5.8 29.49 3.37 2.81
MAP‐36 198.6 227.5 28.9 3.88 1.68 0.43
including 205.5 217.5 12.0 8.83 2.65 0.59
MAP‐38 123.4 124.5 1.1 15.40 3.60 1.94
172.0 212.5 40.5 14.09 3.82 1.95
including 179.5 186.0 6.5 70.99 6.34 0.12
including 184.6 186.0 1.4 176.00 15.20 0.39
including 202.0 205.4 3.4 20.89 9.71 4.75
MAP‐43 65.5 68.6 3.1 7.66 73.04 0.68
167.5 231.5 64.0 1.88 1.88 0.70
including 209.0 214.0 5.0 9.07 3.40 0.70
MAP‐47 105.0 118.3 13.3 2.24 316.25 1.00
including 106.0 110.5 4.5 4.69 768.89 2.34
MAP‐48 181.0 195.7 14.7 40.37 9.30 3.41
including 185.5 195.7 10.2 58.03 13.16 4.85
including 187.6 189.5 1.9 219.00 29.50 6.55
Orosur Investor Presentation I www.orosur.ca As previously disclosed, sources of information in Appendix 1 9
Multiple Targets with Coincident Anomalies
COINCIDENT SURFACE GEOCHEMICAL AND GEOPHYSICAL ANOMALIES
DETAILED MAPPING & DRILLING HAS CONFIRMED GEOLOGICAL POTENTIAL
• Only APTA has been drilled and considered a discovery
• Gold mineralization confirmed at Charrascala which is a strong soil anomaly
on north-south structures, 1.5 km west of the APTA deposit
• A further 3 targets are untested.
o Extensions of APTA along the Aragón Fault are Jesuitas and Guaimarala
o La Cejita demonstrates gold anomalies associated with tonalite and
diorite intrusives that cover an area of 6.1 km2. A gold anomaly
measuring > 1 km2 is present and associated with the northern edges of
the intrusions. Porphyries and vein targets have been identified.
1 km
Orosur Investor Presentation I www.orosur.ca As previously disclosed, sources of information in Appendix 1 10Consistent High Grade Intercepts: OMI campaign 2017 - 2018
Select Intercepts Over 20 g/t Au
Hole Number From (m) To (m) Intercept (m) Au (g/t) Ag (g/t) Zn (%)
MAP_11 217.5 219.0 1.5 72.30 6.90 0.93 High grade outline
MAP_20 172.3 175.5 3.2 22.28 4.55 1.98
Including 172.3 174.0 1.7 32.60 5.50 1.82 Holes with intercepts over 10 g/t
MAP_21 225.0 231.6 6.6 35.24 5.00 6.97
Including 226.3 228.0 1.7 61.40 8.20 4.03
Including 228.0 229.4 1.4 51.50 5.10 1.80
MAP_28 220.5 221.7 1.2 29.20 8.10 0.58
MAP_29 185.0 187.0 2.0 40.25 4.85 4.64
Including 186.0 187.0 1.0 54.20 6.00 3.03
MAP_33 166.5 170.8 4.3 37.09 3.99 2.93
Including 167.5 169.0 1.5 79.90 7.70 3.15
MAP_36 213.2 214.5 1.3 23.00 4.40 0.63
MAP_38 179.5 186.0 6.5 70.99 6.34 0.12
Including 181.0 182.5 1.5 99.90 7.50 0.03
Including 184.6 186.0 1.4 176.00 15.20 0.39 71 DIAMOND CORE HOLES DRILLED (6,314m)
202.0 205.4 3.4 20.89 9.71 4.75
Including 203.5 204.5 1.0 28.30 12.50 5.85
MAP_48 187.6 194.0 6.4 91.62 20.28 7.52 50.7 % of holes =>1 intercepts over 5g/t Au
Including 187.6 189.5 1.9 219.00 29.50 6.55
Including 190.5 191.5 1.0 89.10 15.20 16.25 35.2% of holes =>1 intercepts over 10g/t Au
MAP_51 201.6 203.3 1.7 37.00 5.40 13.80
303.5 305.0 1.5 22.90 8.40 6.06 18.3% of holes =>1 intercepts over 20g/t Au
MAP_054 145.7 148.9 3.2 24.92 1.40 2.40
Including 145.7 146.7 1.0 37.96 1.30 0.70
12.7% of holes =>1 intercepts over 30g/t Au
MAP_062 237.7 238.50 0.80 25.84 7.40 0.07
MAP_070 183.0 184.0 1.0 23.66 3.60 0.04
257.0 259.0 2.0 22.04 4.65 4.23 8.5% of holes =>1 intercepts over 50g/t Au
Including 257.0 258.0 1.0 28.93 5.30 3.59
Notes: 5.6% of holes =>1 intercepts over 70g/t Au
• Intervals reported as drilled thicknesses; true thicknesses estimated to be 65-85% of drilled thicknesses
• Gold grades have been calculated based on weighted averages 2.8% of holes =>1 intercepts over 100g/t Au
• Not intended to express any continuity or viability as a mining project
• Holes 1 – 53 drilled by Waymar Resources, Holes 54 – 71 drilled by Orosur
• Percentage below indicates holes with an intercept of a minimum grade
OV E R 3 5 % O F H O L E S D R I L L E D H AV E I N T E R C E P T S G R A D I N G OV E R 1 0 G / T AU
Orosur Investor Presentation I www.orosur.ca As previously disclosed, sources of information in Appendix 1 11New Zone Discovered in APTA - 450m Strike
Demonstrated multiple zones of gold mineralization
• Defined a new broad zone of gold mineralization covering a continuous strike of
450m immediately north of previous drilling
• Results from three holes (MAP_60, MAP_62 & MAP_70) demonstrate multiple
zones of gold mineralization including:
• MAP_60
• 5.5g/t Au over 3.34 metres from 70 m depth
• 4.86g/t Au over 25 metres from 222 m depth
• MAP_62
• 5.09g/t Au over 5.3 metres from 60 m depth
• 5.00g/t Au over 23 metres from 217m depth
• MAP_70
• 6.35 g/t Au over 11 meters from 256 m depth
• 5.02 g/t Au over 14 meters from 284 m depth
• This zone is characterized by strongly silicified breccias with disseminated sulphides
Mineralised like pyrite, sphalerite chalcopyrite and traces of galena
Orosur Investor Presentation I www.orosur.ca As previously disclosed, sources of information in Appendix 1 12San Gregorio, Uruguay Exploration Upside with low economic threshold In good jurisdiction Strategic Footprint in 1,800 km2 Greenstone Belt With Low Economic Threshold Produced over 1.4Moz over past 20 years Key Operating Subsidiary in Voluntary Creditor Protection, mine in care and maintenance Orosur Investor Presentation I www.orosur.ca 13
Uruguay Snapshot
Country
• Population: ~3.5 million people
• High Level of Education: Literacy rates one of the highest in Latam. In 2009, became the first country in the
world to provide a laptop for every primary school student
• Uruguay has the most progressive income distribution in Latin America
• Strong, long lasting track record of respect for political, social and economic freedom
• Established banking and other financial institutions
• Uruguay ranked the best place to live in Latin America1
• One of the safest countries in Latin America (along with Chile & Costa Rica)2
• Promotion and protection of investments a consistent state policy
Orosur Track Record
• In Uruguay since early 1990´s as an explorer and in production since 2004
• Workforce predominantly local – Orosur has trained the majority of its underground workforce
• Ability to permit i.e. responsibly diverted a river in 2007, permits in 6m - 1year
• Orosur has been granted a gold royalty exemption in 2015/ 2016 and again in 2017/2018
Orosur Investor Presentation I www.orosur.ca 2014 14Loryser Voluntary Re-organisation Proceedings
• Loryser is the Company’s key operating subsidiary in Uruguay
• In June 2018, applied for Voluntary Re-organisation Proceedings
BACKGROUND
• Scarcity of alternative sources of ore resulted in financial liquidity constraints
• To continue the mine plan, the Veta A underground project would be needed:, which itself would require external financing
and environmental permit
• Decision to apply for the Loryser Re-organisation Proceedings in the best interests of Loryser, the Company and its
stakeholders
• Company’s management team continues to lead day-to-day operations
• Loryser continued production at SG UG until the end of July 2018
• Loryser placed the mine in care and maintenance in August 2018
• Loryser remains able to enter into transactions with its Uruguayan assets:
o positive relationship with the Government and received two royalty exemptions in recent years
o conducting conversations with the Government to analyse different options
o conducting discussions with third parties
Orosur Investor Presentation I www.orosur.ca 15Greenstone Belt with Infrastructure
20 km
• Exploration efforts curtailed in the bear market: focusing on near mine
exploration
• Little systematic exploration to date in the Greenstone belt
• Owner operated 1.5Mtpa CIL plant: ~ 93% average recovery
• Access to the geologic data base, exploration services (drilling, geophysics and
laboratory) as well as full suite of working mining equipment,
• Strong mining know-how and reputation in Uruguay
• Uruguay: one of the best mining jurisdictions in the world
Orosur Investor Presentation I www.orosur.ca 16100km Long Under-Explored Greenstone Belt
SOBRESALIENTE
22koz @ 1.04 g/t Au Airmag (AS) base
SANTA TERESA OMBU
63Koz @ 0.92 g/t Au 13koz @ 1.55 g/t Au
SAN GREGORIO
536koz @ 2.12 g/t Au
VETA SUR ARENAL
33koz @ 2.04 g/t Au 528koz @ 2.12 g/t Au
GUILLO
5koz @ 1.09 g/t Au
ZAPUCAY
86koz @ 1.61 g/t Au
ARGENTINITA
VETA A 13koz @ 1.33 g/t Au
29koz @ 3.10 g/t Au
VETA REY
16koz @ 1.41 g/t Au
LAURELES
12koz @ 1.10 g/t Au
VACA MUERTA
13koz @ 1.31 g/t Au
A M O D E S T D I S C O V E R Y W O U L D R E P R E S E N T G R E AT VA L U E G I V E N T H E E X I S T I N G P L A N T
O R O S U R H A S O P E R AT E D 2 0 O P E N P I T & 2 U N D E R G R O U N D M I N E S
Orosur Investor Presentation I www.orosur.ca 17The Team – Experience & Commitment
Board of Directors Management
John Walmsley • 30 yrs oil & gas experience Alejandra López • CA and MBA with >12 years experience, incl. 8 years with
Non Executive Chairman • Chairman – Pantheon Resources CFO Orosur and previously senior auditor at
• Exec Chair - Consilience Energy Ernst & Young.
Ryan Cohen • >12 yrs in the mining sector across investment banking,
Ignacio Salazar • CEO of Orosur since 2013 VP - Corporate investor relations, management and corporate advisory
CEO and Director • President Uruguay Mining Chamber Development roles. Previously a Director, ECM with Canaccord Genuity
• 18 yrs with Royal Dutch Shell
• MSc. In Economics & Business Admin, Masters Degree in Law
Fernando Fuentes • >25 yrs in the mining sector, incl. 20 yrs with Orosur
GM, San Gregorio
Jorge Aceituno • 30 yrs international geology and operational roles for mining
COO and Director companies incl. GM, Operations for Maricunga, Pascua-Lama
and Zaldivar
Jerónimo Jáñez • Mine geologist with >10 yrs in gold/base metals & OP/UG
Exploration Manager Ops
Uruguay • Geology degree from La Plata National University
Robert Schafer • >40 yrs international experience incl. Hunter Dickinson,
Non-Executive Director Kinross and BHP
• Past president of PDAC and Canadian Institute of Mining and Joaquín Sarroca • Corporate lawyer >10 yrs experience
Metallurgy Legal Counsel • Master of Law - International Business (LLM) / Uruguayan
Lawyer
Horng Dih Lee • CA with >25 yrs finance and admin
Non Executive Director • Former CFO of Eastern Platinum & Northern Orion Resources Héctor López • >12 yrs finance experience
Administration & Budget • Worked for Rea Gold, who developed the San Gregorio
Manager mine
Orosur Investor Presentation I www.orosur.ca 18Corporate Snapshot
12 Month Share Performance TSX/AIM Dual Listed: OMI
Current Price¹ C$/sh $0.075
52 week range C$/sh $0.02 - $0.30
Average Daily Volume ‘000 617
Basic S/O #M 146.8
Options and Warrants #M 17.2
Fully Diluted S/O #M 164.0
Market Capitalisation C$M $11.0
Net Cash³ C$M ($0.7)
Enterprise Value C$M $11.7
Advisors:
Top 5 Shareholders (as at September 10, 2018)
Cantor Fitzgerald Nomad & Joint Broker Name %
Numis Securities Joint Broker Newmont Mining Corporation 19.9%
Gold 2000 5.1%
Continental 5.1%
KBC Group 3.7%
Interactive Investor Trading 3.0%
Note 1: Sourced tmx.com and Bloomberg.com as at 10 September 2018, Newmont placing shares included
Orosur Investor Presentation I www.orosur.ca Note 2: Sourced from most recently published research Notes, CAD:GBP rate assumed at 0.585, USD:CAD at 1.319
19
Note 3: As at 31 May 2018Orosur – A New Growth Profile
Colombia
✓ Newmont transaction provides exploration funding, additional technical expertise and cash
✓ Successful recent drill program aimed at infill drilling and expanding known gold mineralization at the Anzá Project
✓ Active mining and environmental licences in place
✓ APTA high grade gold mineralized intercepts now covers a strike extent of 1.5km and depth extent of 400m:
• 91.62 g/t over 6.4m (MAP_48) • 37.09 g/t over 4.3m (MAP_33)
• 70.99 g/t over 6.5m (MAP_38 • 24.92 g/t over 3.2m (MAP_54)
• 35.24 g/t over 6.6m (MAP_21) • 37.00 g/t over 1.7m (MAP_51)
✓ Drilling at Charrascala target confirmed mineralization
✓ Multiple untested targets in coincident geochem and geophysical anomalies
Uruguay
✓ Prominent position in underexplored Greenstone belt
✓ Existing and proven CIL plant in care and maintenance
✓ Proven Developer and operator
✓ Uruguay is a proven and safe mining jurisdiction
✓ Striving to arrive at a fair and balanced plan in interests of all our stakeholders to exit creditor protection quickly and effectively
H I G H Q U A L I T Y E X P L O R AT I O N A S S E T S , S T R AT E G I C A L L I A N C E W I T H N E W M O N T, R E C E N T F U N D I N G
Orosur Investor Presentation I www.orosur.ca 20Appendix 1 - Sources SLIDE 7 SLIDES 9 - 12 Orosur Investor Presentation I www.orosur.ca 21
You can also read
