february 2011 - mindoro · 2011. 3. 3. · investment highlights •established “license to...

Mindoro Resources Ltd

From Nickel Discovery to Development with Copper-Gold Upside

February 2011

FORWARD LOOKING STATEMENTS

This presentation may contain forward-looking statements including management's assessments of future

plans and operations, expectations of future production, cash flow and earnings. These statements are based

on current expectations that involve a number of risks and uncertainties, which could cause actual results to

differ materially from those anticipated.

These risks include, but are not limited to, the risks associated with the mining and exploration industry (e.g.

operational risks in development, exploration and production; delays or changes in plans with respect to

exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the

uncertainty of estimates and projections relating to production).

QUALIFIED PERSON

Exploration on Mindoro’s properties is carried out under the supervision of Tony Climie, P.Geol., who is a

qualified person as defined by National Instrument 43-101 and who has also reviewed the technical disclosures

in this presentation.

2

Investment Highlights

• Established “license to operate” with outstanding nickel, gold and copper assets in the Philippines

• Experienced team with discovery, finance and development capability

• Development strategy for major integrated nickel laterite processing project

– Measured and Indicated resources: 32.6mt @ 1.04% Nickel (340,000t /750M lbs Nickel)

– Defined exploration potential, resource drilling for significant upgrade

– Outstanding metallurgy, infrastructure and locational advantages

– Upside through resource growth, strategic acquisitions, partnerships

• Copper-Gold resources and exploration upside

– Gold resources: 500,000 oz with high-grade intercepts at depth

– Copper-Gold exploration portfolio, advanced and early stage prospects

• Demonstrating value in 2011 through major nickel project pre-feasibility, nickel resource growth and drilling copper-gold targets

3

Corporate ProfileCapitalisation ($CDN)Exchange & Symbol TSX-V: MIO,ASX: MDO

Shares outstanding 206m

Fully diluted 271m

Share price (25/02/11) C$0.24/A$0.21

Market capitalisation C$50m

Current treasury, Feb 2011 $9m (+$3m warrants)

Acorn Capital 12.5%

IFC (World Bank) 9.7%

Asian Lion Ltd 7.0%

Lion Selection 6.7%

Directors 4.5%

Top 20 53%

Shareholders

Board and ManagementName Title Comments

Jon Dugdale Director, President & CEO 23 years exploration/mining and investment

Tony Climie Director Exploration & COO 42 years mineral exploration, co-founder of MIO

Rob King VP Commercial and CFO 23 years Commercial and Financial experience in SE Asia, Africa and Canada

Penny Gould VP Inv. Relations & Corp. Sec. 30 years business admin, financing and marketing, with MIO since 1996

Rob Garden Chairman 32 years a QC in natural resources law

Howard Walker Vice Chairman 36 years in Mining, finance and investment

Chris de Guingand Director (Non Executive) 45 years nickel and iron ore commercial and marketing experience

Oscar Reyes Director (Non Executive) 38 years in business management, ex Chairman & CEO of Shell Oil – Philippines.

Doug Frondall Director (Non Executive) 35 years accounting, CEO of Virtus Group LLP, business management consulting.

John Tosney Director (Non Executive) 45 years experienced mining engineer and project developer

4

Key Projects

•Medusa Co-O

•>100,000oz pa

5

6Garnierite (nickel) mineralization

North

SURIGAO PROJECTS

Philippine Sea

Lake

Mainit

Butuan Bay

SURIGAO CITY

Mindoro tenements / applications

Philex

Anglo Ashanti

Other companies

Nickel laterite mineralization

Nickel laterite mine

Recent porphyry copper-gold discovery

Porphyry copper-gold prospects

Gold mine or prospect

10 km0N

NICKEL

SRMI

OSMC

TAGANITO• Nickel Asia –

Sumitomo HPAL

PGMC

CTP

CNC

NORTH DINAGAT

EXPLORATION TARGET

50 - 70 million DMT @ 0.9 - 1.2% Ni

AGATA RESOURCECombined Limonite & Saprolite

Measured & Indicated

32.6M DMT @ 1.04% Ni

Inferred 1.68M DMT @ 1.04% Ni

The Agata Resource estimate is NI 43-101 compliant. However, detaileddrilling will be required to move theExploration Target north of the AgataResource into NI 43-101-compliantresources. There is no guarantee thatthese resources, if delineated, will beeconomic or sufficient to support acommercial mining operation. Until afeasibility study has been completedthere is no certainty that the company'sprojections will be economically viable.

7

Agata Nickel – Competitive Advantages

Located in established Mining District of Surigao Supportive government & community

Few people + no forest Minimal social & environmental issues

Close to deep protected ocean and key markets Lower transport costs, all year shipping

Outstanding metallurgy, acid leach and thermal Low operating costs

Close to Mindoro’s Pyrite / limestone deposits Potential acid production/neutralisation

The company’s production objectives are intended to provide an indication of management’s current expectations and are still conceptual in nature. It is uncertain that it will be established that these resources will be converted into economically viable mining reserves. Until a feasibility study has been completed, there is no certainty that these objectives will be met.

OceanAgata nickel laterite resource

8

9

Agata Nickel Laterite Resource

Contained Metal

(K Tonnes)

ktonnes Ni % Co % Fe % Ni Co Fe

Measured &

Indicated

Limonite 10,210 0.94% 0.11% 46% 96 11 4,702

Saprolite 22,380 1.09% 0.03% 11% 244 7 2,462

Inferred

Limonite 260 1.00% 0.11% 44% 3 0.3 114

Saprolite 1,420 1.05% 0.03% 11% 15 0.4 156

Grand Total 34,270 1.04% 0.05% 22% 358 19 7,434

• Well-defined profile:

– Limonite layer: lower nickel, higher iron

– Saprolite layer: higher nickel, lower iron

• NI 43-101 resource estimate: (M&I 340,000t/750M lbs)Limonite

Saprolite

9

Thickness of intercept (m)

Fe%

Ni%

1.09 /41.615.00

46m

Drillhole number

Ferruginous Laterite

Limonite

Boulder

Saprolite

Saprolitic rock

Bedrock

End of hole

AGL-362

AGATA NICKELLATERITE PROJECT

Cross Section Line 9550N

9300E8900E

0

50m

50m

9100E 9200E9000E

2.001.08 /49.340.90 /50.00

13.1511.45 4.001.41 /11.561.55 /18.00

2.90

0.63 /48.00

0.92 /53.00

0.69 /47.78

0.94 /51.475.15 1.10

1.87 /12.817.95 6.65

0.96 /11.00

4.85

0.53 /49.77

4.00

0.96 /53.485.30 4.25

1.43 /12.6410.90

1.39 /15.907.15

1.29 /8.00

1.18 /40.001.15

0.90 /51.042.00

FERRUGINOUS LATERITE

LIMONITE

SAPROLITE

250m

150m

AGL-140

AGL-146AGL-500

22.15m

26.8m19.4m

25.3m15.1m

20m

AGL-499AGL-142

AGL-341

16m

AGL-498

200m

300m ASL

100m

1. Limonite: DSO or HPAL2. Saprolite: DSO or Atmos Leach

SURIGAO PROJECTS, AGATA XS

10

AGATA NICKEL LATERITE PROFILE

ZONE

FERRUGINOUS LATERITE

LIMONITE

TRANSITION

SAPROLITE

POSSIBLE EXTRACTION PROCESSES

FRESH ROCK

SCHEMATIC LATERITE PROFILE

SAPROLITIC ROCK

CHARACTERISTICS

HIGH PRESSURE

ACID LEACH

ATMOS & HEAP LEACH

THERMAL PROCESSING

Low Ni, High Fe – Thermal reduction to high Ni/Fe product

Moderate nickel 0.8% to 1.2%,Cobalt 0.1% to 0.2% High Iron 40% to 50%HPAL extracts 98% Ni in 20 minutes and 96% Co

Mod-High Ni, Fe (>1.2-1.6% Ni, 22% Fe); low Co

High nickel 1% to >2%High MgOLow IronAtmospheric leach and supplemtn in HPALDSO for nickel >1.8%

SAPROLITE NEUTRALIZATION

SURIGAO PROJECTS

Limonite

Saprolite

Low grade nickel recovered in neutralisation

11

12

• Value Added Shipping Product

– Value-added thermal upgrading

– Direct Ship high-grade saprolite

Sumitomo’s Coral Bay HPAL processing operation, Palawan Island, Philippines, US$550m Capex 2002 -2004, 21,000t Ni pa @ <$2.50/lb Opex to Intermediate Product

• On-site Acid Leach Processing

– High pressure acid leach (HPAL)

– Atmospheric leach

SURIGAO PROJECTS

NICKEL LATERITE DEVELOPMENT OPTIONS

DSO operation south of Mindoro’s Agata Project 12

Lake Mainit

Mindoro tenement boundary

Nickel-iron laterite mineralization

Road

Provincial boundary

4 km0 N

780

,00

0E

1,040,000N

770

,00

0E

1,050,000N

VILLARIZA

KARIHATAG

BOLOBOLO

SAN JOSE

SURIGAO PROJECTSNickel Laterite Prospects

Philippine Sea

LakeMainit

MindanaoSea

Agata Nickel

Laterite Areas

SRMI

SURIGAO CITY

Mat-I

Tapian Main

Tapian SF

Map Area

TAPIAN

CORPLEX AREA

Mindanao Sea

MAMATFA Area

CAN-AGA

EXPLORATION TARGET50 - 70 million DMT @ 0.9 - 1.2% Ni and 28 - 32% Fe

The potential quantity and grade of the Exploration Target described is conceptual in

nature, there has been insufficient exploration to define a mineral resource and it is uncertain if

further exploration will result in the target being delineated as a mineral resource. Until a

feasibility study has been completed there is no certainty that the Company's projections will be

economically viable.13

• Direct Shipping: ECC for 2 m tpa, low capital but lower margin

• Thermal Upgrading: potential value added product

• Acid Leach Processing: Exceptional leaching rates = low operating cost HPAL and Atmospheric Leach (AL) Project:

1. HPAL-AL “Full Monty”: 27,000t Nickel pa, <$2.50/lb Opex; 1.3Bn Capex

2. Agata Base Case: thermal-upgrade then acid-leach 15 - 20,000t Ni tpa, intermediate product, Capex ~50% of above (Economic Analysis by March)

• Next stage: Preliminary Economic Assessment then Integrated project Pre-Feasibility study in parallel with growing resource base


NICKEL LATERITE DEVELOPMENT OPTIONSSURIGAO PROJECTS

14

Bridging the Gap from Discovery to Development

2011 2012Agata Nickel Project:

Preliminary Economic Assessment

Nickel Regional Resource Growth

Permitting and Approvals Stage 1

Pre-Feasibility for Integrated Project

Definitive Feasibility Study

Gold and Copper-Gold:

JV Cu-Au drilling

Other Gold and Cu-Au drilling


15

established resources with exploration upside

16

Local miner panning gold

at American Tunnels,

Agata Project

Manila

Luzon

Mindanao

Sea

LOBO

Freeport Taysan Cu-Au Deposit

Gold FieldsJV, earning 75%

Mindoro tenements /

applications

Freeport McMoRan

Porphyry copper-gold prospects

defined by chargeability /

alteration / copper showings

Resource area

Epithermal vein–breccia trends

/ prospects (gold – silver -

copper)

Copper showing

Historical mine / workings

Other prospects [not yet

evaluated]

Road

GOLD AND COPPER-GOLD HIGHLIGHTSBATANGAS PROJECTS

ARCHANGEL PROJECT

NI 43-101 Resource Estimate

Indicated: 9,879,000 t @ 1.1 g/t (337,500 oz)

Inferred: 3,741,000 t @ 0.8 g/t (97,200 oz)

SW BRECCIA

high grade epithermal veins; 5km to test

NI 43-101 Resource Estimate

Indicated: 270,000 t @ 6.49 g/t (56,380 oz)

Inferred: 61,000 t @ 5.35 g/t (10,540 oz)

17

85.00m

104.50m

129.10m

57.30m

Trench19.1 g/t Au11.0m

52.25m

6.3 g/t Au8.3m

Incl.: 15.6 g/t Au2.7m

69.40m

LB-13LB-07&06

LB-05,

04&03

180m

ASL

160

140

120

100

80

60

40

12.2 g/t Au30.8m


& 29.9 g/t Au4.3m

8.3 g/t Au13.3m


3.4 g/t Au6.0m

9.6 g/t Au17.4m

Incl. : 23.6 g/t Au2.8m

9.5 g/t Au32.2m

Incl.: 22.2 g/t Au13.1m

1.67 g/t Au14.0m


20m

20m

g/t Au

Thickness of

intercept

6.3 g/t Au8.3m

Quaternary agglomerate

Propylitized andesite wallrock

(chlorite - clay - pyrite quartz

calcite magnetite )

Argillized polymictic breccia

(clay-pyrite chlorite calcite altered)

Pyritic hydrofractured andesite

Quartz - barite - pyrite clay breccia

Quartz - pyrite clay alteration

Clay - pyrite alteration

Fault gouge

Drill hole

Mineralized

intercept

LB-07

End of hole75m

BATANGAS, LOBO PROJECT (SW BRECCIA ZONE)

GOLD HIGHLIGTSCross Section 10170N

Batangas Projects

18

Sea

Balibago

Ahit

Biga

Marita

Bootin

Chargeability Anomalies /

Porphyry Targets

Younger cover rocks

Extensively altered volcanics

intruded by diorite and dacite

Advanced argillic zones from PIMA

analysis

Resource area

Epithermal gold-silver zones

Porphyry-related stockworks

Vein breccia

Boulder field of mineralized massive

silicified rocks – Biga Prospect

Old mine working

Copper showing

Strong chargeability anomalies

(Interpreted sulphide mineralization with

correlating alteration, copper & gold

showings)

Road Creek

Kay Tanda Resource (NI 43-101 Compliant)

CategoryMetric Tonnes

Gold (g/t Au)

Silver (g/t Ag)

Gold (ounces)

Silver (ounces)

Measured 5,737,000 1.11 5.43 205,600 1,022,600

Indicated 4,142,000 0.99 3.04 131,900 405,200

Measured + Indicated

9,879,000 1.06 4.50 337,500 1,427,800

Inferred 3,741,000 0.81 1.75 97,200 210,800

1 Km0

N

BATANGAS, ARCHANGEL PROJECT

GOLD HIGHLIGHTS

• High chargeability and soil geochemistry anomalies over 6km’s, 1km tested.

High grade drilling results, including:61m @ 5.1 g/t Au64m @ 3.5 g/t Au

19

> 100

Au g/t X interval (m)

5 - 15

15 - 30

50 - 100

< 5

30 - 50

v

v

v

v

vv

v

v

v

v

Diamond drill hole location

River / Creek

KTDH-04

CA11 Historical drill hole

RC drill hole location

Younger cover volcanics and

sedimentary rocksv N

100 m0

KT-55

Historical working

Drillhole with pending assay resultsPL-38

PL-21

1.5 g/t gold

17 mand

9.8 g/t gold

6 m

KT-58

1.32 g/t gold

24 m

KT-44

1.19 g/t gold

76 m

KT-55

3.45 g/t gold

64 m

including

9.6 g/t gold

20 m

PL-23

4.03 g/t gold

26 mand

179.16 g/t

Silver

KTDH-20

5.12 g/t gold

61 m

Including

246.41 g/t gold

1 m

20

Most high-grade intercepts were

excluded from resource estimate

due to lack of information on

geological controls.

Batangas Projects

Archangel Project

Gold Highlights

20

+

+

+

AT-3 Trench15m @ 1.3 g/t Au

Estrada Tunnel24m @ 2.8 g/t Au

Assmicor Tunnel49.7 @ 5.7 g/t Au

&33.8m @ 3.1g/t

Pabling Tunnel29.4m @ 2.50 g/t Au

N

1km0

Quaternary alluvium

Intrusive complex

Limestone

Ultramafics with minor basement schist

Copper showing

Gold anomaly in soil

High chargeability anomaly

Artisanal gold or copper mine

Drill hole

Road

Agata North

Laterite

Manila

Luzon

Mindanao

Surigao Projects

Gold Highlights – American Tunnels• High chargeability anomalies over 6 kms.

21

COPPER-GOLD AND PYRITE – Pan de AzucarPAN DE AZUCAR PROJECT

Manila

Luzon

Mindanao50 m

22

Summary:

• Established “licence to operate” outstanding nickel laterite, gold and copper assets in the Philippines

• Development strategy for major integrated, nickel laterite processing project with outstanding metallurgy, infrastructure and locational advantages

• Experienced team with discovery, finance and development capability

• Demonstrating value in 2011 through major nickel project pre-feasibility, nickel resource growth and drilling copper-gold targets

23

C$m

1. Integrated nickel project pre-feas/feasibility: $6.3m

2. Regional nickel resource growth $1.9m

2. Gold and Cu-Au Exploration $1.3m

3. Corporate and Working Capital $1.2m

Total $10.7m (including $0.7m residual)

Projected Use of Funds 2011/12

24

ASX: MDO TSXV: MIO FFT: OLM

AustraliaNathan Ryan

NWR Communications+0420.582.887

[email protected]

GermanyRobert Sarcher, Aprendo Capital+49.821.6089051

[email protected]

Canada Penny Gould

VP Investor Relations+1.780.413.8187; 1.877.413.8187

[email protected]

www.mindoro.com

february 2011 - mindoro · 2011. 3. 3. · investment highlights •established “license to...

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