Telferscot Resources Inc - December 2012 Telferscot Resources Inc. 401 Bay Street, Suite 2702
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December 2012
Telferscot Resources Inc.
Telferscot Resources Inc.
401 Bay Street, Suite 2702
P.O. Box 136
Toronto, ON M5H 2Y4
+1.416.640.5197
info@telferscotresources.com
TFS:CN
Telferscot Resources Inc.
General Disclaimer
Telferscot Resources Inc. ("Telferscot"), has taken all reasonable care in producing and publishing information contained on this web
site, and will endeavor to do so regularly. Material on this site may still contain technical or other inaccuracies, omissions, or
typographical errors, for which Telferscot assumes no responsibility. Telferscot does not warrant or make any representations
regarding the use, validity, accuracy, completeness or reliability of any claims, statements or information on this site. Under no
circumstances, including, but not limited to, negligence, shall Telferscot be liable for any direct, indirect, special, incidental,
consequential, or other damages, including but not limited to, loss of programs, loss of data, loss of use of computer of other systems,
or loss of profits, whether or not advised of the possibility of damage, arising from your use, or inability to use, the material on this
site. The content posted on this web site is not a substitute for independent professional advice for making any investment decisions.
Furthermore, you may not modify or reproduce in any form, electronic or otherwise, any information on this site, except for personal
use unless you have obtained our express permission.
Forward-Looking Statements
This web site contains forward-looking statements that involve risks and uncertainties, which may cause actual results to differ
materially from the statements made. When used on this web site, the words "may", "would", "could", "will", "intend", "plan",
"anticipate", "believe", "estimate", "expect" and similar expressions are intended to identify forward-looking statements. Such
statements reflect Telferscots current views with respect to future events and are subject to such risks and uncertainties. Many factors
could cause actual results to differ materially from the statements made, including those factors discussed in filings made by
Telferscot with the Canadian securities regulatory authorities. Should one or more of these risks and uncertainties, such actual
results of current exploration programs, the general risks associated with the mining industry, the price of gold and other metals,
currency and interest rate fluctuations, increased competition and general economic and market factors, occur or should assumptions
underlying the forward looking statements prove incorrect, actual results may vary materially from those described herein as
intended, planned, anticipated, or expected. Telferscot does not intend and does not assume any obligation to update these
forward-looking statements, except as required by law. Shareholders are cautioned not to put undue reliance on
such forward-looking statements.
Telferscot’s Qualified Person
Telferscot’s exploration programs are being supervised by Wiliam S.F. Trewick, President and COO, a Qualified Person
as defined by National Instrument 43-101 and is the person responsible for the technical content of this news release.
TFS:CN
Telferscot Resources Inc.
• Exploring in Katanga Region of the DRC
- Largest, richest deposits of copper and cobalt in the world
• PR 12719 Adjacent to Robert Friedland’s Ivanplats
- Kamoa one of the largest copper discoveries in history
• Experienced Management Team
- Bill Trewick, COO with over 35 years of exploration
experience in Africa
• Copper is the right metal to be focusing on
- Excellent Supply/Demand fundamentals
Right Address - Right Time
TFS:CN
Location & Neighbours
Mawson West -
Dikulushi Mine
Telferscot’s properties
are located in Katanga
Province, Democratic
Republic of Congo in Freeport/Lundin -
the heart of the Central Tenke Fungurume Mine
African Copper Belt Ivanplats -
Kamoa Deposit Anvil Mining -
Kinsevere Mine
Telferscot Resources Inc.
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Global Copper Deposits
Katanga portion of the CACB containing our properties is home to
some of the world’s largest and richest Copper-Cobalt Deposits…
GLOBAL COPPER DEPOSITS CENTRAL AFRICAN
Source: Geological Survey of Canada COPPER BELT
Grade (percent)
Size (million tonnes)
Telferscot Resources Inc.
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Telferscot Properties
The Kolwezi Klippe is a
roughly egg-shaped area over
200 square kilometers in size
from which more than 50
million tonnes of copper
metal has been and continues
to be mined from a series of
sedimentary units within the
Roan Group.
Ivanplats’ recent mega
discovery at Kamoa has
proven the presence of
copper in sedimentary units
previously thought not to
contain copper - in particluar
the Mwale (Grand
Conglomerate) unit
Telferscot Resources Inc.
TFS:CN
Stratigraphic Column for the Kolwezi Area
Telferscot Resources Inc.
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Geological Map of Telferscot Properties
Experience and understanding of regional geology has lead to the acquisition of
three new prospective properties - PR 12717, PR 12718 & PR 12719
TFS:CN
Work Completed to Date
• Licence PR 9090
- Soil sampling program completed in Q2 2011
- Airbourne magnetic and radiometric survey flown in Q2 2011
- 500 meters of stratigraphic drilling completed in Q4 2011
• Licences PR 12717, 12718 & 12719
- Geochemical soil sampling program completed Q3 2012
- Airbourne magnetic and radiometric survey flown in
September 2012
• Comprehensive geological model developed
• Drill targets identified and prioritized
Telferscot Resources Inc.
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Proximity to Ivanplats’ Kamoa Deposit
• Telferscot’s PR 12719 is adjacent to Ivanplats’ Kamoa deposit.
• Ivanplats founded by Robert Friedland was taken public in October 2012
with a market valuation of $2.5 Billion
Kamoa Deposit
Indicated Resource:
348 million tonnes @ 2.64% Cu
9.2 million tonnes of Contained Cu
Inferred Resource:
462 million tonnes @ 2.72% Cu
12.5 million tonnes of Contained Cu
Telferscot Resources Inc.TFS:CN
Prospectivity of PR12719
Due to the Ivanplats’ Kamoa discovery, conventional thinking
on exploration for copper in the Katanga region has changed:
• Grand Conglomerate unit has been proven to host copper
• We believe PR 12719 hosts an extension of the Kamoa Grand
Conglomerate
• Recent airbourne survey shows extensive folding and faulting
resulting in a very prospective target, in addition to the Grand
Conglomerate
• The target zone for drilling is accessible - Kalahari sands are
believed to be no deeper than 40 meters on PR 12719
Telferscot Resources Inc.TFS:CN
2013 Work Program
• 2-stage diamond drill program totalling up to
3,000 meters commencing in Q1
• Further ground work to identify drill targets
on licenses PR 9090, PR 12717 & PR 12718
• Identify and acquire additional licenses for
copper/cobalt exploration in the Congo
Telferscot Resources Inc.TFS:CN
Management & Directors
James Garcelon, CFA - Chief Executive Officer and Director
Mr. Garcelon has over 15 years of experience in the financial services industry. He has acted in a number of capacities and areas including investment
banking, private equity, institutional equity sales and research. Mr. Garcelon has worked at RBC Dominion Securities; the Pacific Century Group, a Hong Kong
based private equity fund. He has previously acted as Managing Director, Institutional Research at HSBC Securities Canada; and Managing Director, Head of
Institutional Sales at National Bank Financial. Currently, Mr Garcelon is a Principal with Grove Capital Group. Mr. Garcelon is a Chartered Financial Analyst;
holds a MSc in International Political Economy from the London School of Economics; and a HBA from the Richard Ivey School of Business.
William (Bill) Trewick – President, Chief Operating Officer & Director
Mr. Trewick joined Anglo American Corporation as a geologist in 1976. He worked his way up through the organization culminating with his appointment as
Head of Geology for Anglo Gold’s South African operations in 2001 and of the Africa Underground Mines, after its merger with Ashanti. In 2008, he assumed
responsibility for AngloGold Ashanti’s Greenfields Exploration in Africa. Mr. Trewick has presented at both local and international geological conferences. He
is a Fellow of the Geological Society of South Africa; a member of the South African Council for Natural Scientific Professions. Mr. Trewick holds a Honours
BSc in Geology, an MBA and attended the Ashridge Executive Development Programme in 1998.
Avrom Howard, MSc, PGeo – Consulting Geologist
Over the past 30 years Mr. Howard has obtained considerable exploration experience in a variety of deposit settings and locations around the world. In
1994, he founded Odyssey Resources Limited, a TSXV listed company. In 2004, he co-founded Homeland Uranium Inc., which subsequently split leading to
the creation of Homeland Energy Group Ltd. Both Homeland Uranium and Energy are reporting issuers, the latter listed on the Toronto Stock Exchange.
Mr. Howard graduated with a BSc in Geology from the University of Toronto and a MSc in Geology from the University of Colorado.
Chacha Kalala – DRC Country Manager
Mr. Kalala is a Congolese national with extensive relationships at all levels of government in the DRC. He has developed an in depth knowledge of the DRC’s
new mining code and its protocols. He has a good working relationship with the Department of Mining (Cadastre Miniere). Mr. Kalala has been instrumental
in the acquisition of the Company’s Kolwezi licenses and managing the logistics for DRC operations. Mr. Kalala is an Oils Lubrication and Viscosity specialist
who has lectured at the Johannesburg Technikon and consulted throughout Central Africa.
Geoff Kritzinger, CA – Chief Financial Officer
Mr. Kritzinger began his career at KPMG obtaining his CA designation in 1986. In the past, Mr. Kritzinger has been a partner with Shimmerman Penn LLP and
CFO of Enquest Energy Services Corp., an oilfield services company with annualized revenues in excess of $150 million. He holds a Bachelor of Commerce
degree from the University of Toronto and is a past member of the Practice Inspection Committee of the Institute of Chartered Accountants of Ontario. Mr.
Kritzinger is also currently CFO of Homeland Uranium Inc.
Telferscot Resources Inc.TFS:CN
Management & Directors
Gerry Gravina – Independent Director
Mr. Gravina has over 30 years experience in equity trading and asset management. He has held senior positions at a number of
Canadian broker dealers including: Merrill Lynch Canada, Loewen Ondaatje McCutcheon, RBC Dominion Securities and Gordon
Capital and HSBC Securities Canada. In 2002, Mr. Gravina joined National Bank Financial as Executive Vice President and Head of
Institutional Equities. Mr. Gravina founded Visum Capital, a multi-strategy alternative investment management firm, in 2009. At Visum,
Mr. Gravina is responsible for the firm’s risk policy and management as well as trading Canadian equity strategies. Mr. Gravina holds
an Honours Bachelor’s degree from the University of Toronto.
Stephen Coates - Independent Director
Mr. Coates is the founder and a Principal of Grove Capital Group, specializing in the incubation and development of new resource
companies. He has more than 12 years of experience in the resource markets in Canada and internationally. Most recently, Mr. Coates was
President & CEO of Homeland Energy Group (TSX:HEG), a company which he co-founded in 2006. In the past, Mr. Coates provided
communications and business development services to a number of small-cap public companies primarily in the mining and resource
industry. He previously served, as Special Assistant to Ontario Premier, Mike Harris. Mr Coates is currently CEO of Homeland Uranium
Inc. and serves on several boards of public and private companies. Mr. Coates graduated with a BA in Political Science from the University
of Western Ontario.
Louis Chertkow - Non-Executive Director
Mr. Chertkow has over 30 years of experience in the distribution industry in North America. Currently Mr. Chertkow is the Chief
Executive Officer and majority stockholder of a distribution company with distribution centers throughout the United States. Mr.
Chertkow holds a Master Degree in Finance from the Massachusetts Institute of Technology, Cambridge Massachusetts.
Telferscot Resources Inc.TFS:CN
Strong Copper Demand Growth
• Strong demand from Asia; predominantly China but increasing from India.
• China represents 37% of world consumption; expected to reach 45% in 5 years;
• China consumes 3.5 kg of copper per capita per year – Japan 40 kg;
• 80% growth in China to reach developed world averages supporting double digit growth
for many years.
Telferscot Resources Inc.TFS:CN
Copper Consumption
Copper Consumption by End-Use
• Global infrastructure,
urbanization and energy efficiency Industrial Machinery
13%
• Consumption underpinned by Construction Consumer Products
diverse uses 32% 8%
• Pipes, power lines, electric
motors, appliances,
communication devices,
computers, and health care Transport Equipment
13%
• Industries driving the future
• Products people want
Electronic Products
34%
Telferscot Resources Inc.TFS:CN
Copper Supply Constraints
• Depletion of existing resources is substantial
• China has little domestic resource
• Under investment in the early 2000s
• New mine delays
• More underground mines – lower capacity
• Greater country risk and infrastructure
challenges
• Tougher permitting conditions
• Higher costs
• Scarcity of new quality projects and
discoveries - lower grades and increased
complexity
Telferscot Resources Inc.TFS:CN
Copper Supply Deficit
• Supply deficits
forecasted through
2015
• Inventories expected
to fall below critical
levels supporting
strong price increases
Telferscot Resources Inc.TFS:CN
Corporate Structure
Telferscot Resources Inc.
(CN:TFS)
Earn-in Agreement
(currently 42%, right to go to 60% and 100%)
Terms of Earn-in Agreement
TFS spends on the Kolwezi Project in the DRC:
• C$ 1 million for initial 30% interest in KCC
Kolwezi Copper Corp. • C$ 4 million for additional 30% interest in KCC
(British Virgin Islands) (must be completed prior to September 2013)
When 60% ownership is reached:
100% • TFS has call on 40% balance
• Other KCC shareholders have put on 40% balance
Buyout price is 40% of outstanding shares of Telferscot at the
time of exercise calculated on a partially diluted basis
Miniere du Congo SPRL
(Democratic Republic of Congo)
100%
Exploration Permits
(PR9090, PR12717, PR12718,
PR12719)
Telferscot Resources Inc.TFS:CN
Capital Structure
Share Structure
• Issued: 40,512,200
• Options: 3,370,000
• Warrants: 8,000,000
Working Capital (September/12)*
• Cash: $ 289,533
• FD Cash: $1,250,533
* $500,000 Private Placement completed November 14, 2012 @ $0.15
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