fmm and fz combined november 14th 2011 power point final
DESCRIPTION
Full Metal Minerals is a generative exploration mining company focused on base and precious metals discovery in Alaska. In partnership with Antofagasta Minerals, Full Metal Minerals has made a significant copper-gold disvoery at their Pyramid Property in Alaska. View our presentation to learn more or visit www.fullmetalminerals.comTRANSCRIPT
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• Discovery at the Pyramid project – Cu-Au-Mo porphyry that remains open in all directions and depth
• Alaska focused: Gold and Copper
• Partners: Antofagasta and Anglo American/First Dynasty Mines
• Numerous greenfields projects; management team discovered Underworld’s White Gold Project
Company Overview
Symbol: TSX.V – FMM Shares Outstanding: 49,631,977 Fully Diluted: 61,196,952 Stock Options: Exercise Price Expiry 4,395,000 $0.63 - $0.68 Nov 2019 - July 2021 Warrants: Exercise Price Expiry 7,169,975 $0.75 July 2012 - Sept 2012
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Share Structure
• Michael Williams President & Director
• Robert McLeod P. Geo., CEO, VP Exploration & Director
• Carl Hering PhD., Director
• Tony Cange Director
• Darryl Cardey C.A., Director
Technical Team
• Jodie Gibson M.Sc. Senior Geologist
• Joey Wilkins B.Sc. Chief Geologist
• Cale Moodie CA CFO
Senior Management & Directors
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Key Projects 2011/2012
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The “Ring of Fire”
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Cu-Mo-Au targets, SW Alaska
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• Porphyry discovery with supergene enrichment
• Near surface mineralization
• Adjacent to tidewater, Native partnership
• All 5 holes hit significant mineralization in 2010
• 2011 Drill Program – 12 holes, extended mineralization in multiple directions and intersected highest grade to date
Pyramid Property: 49/51 FMM/Antofagasta
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2010/11 Selected Drilling Highlights
Hole-ID From (m) To (m) Length (m) Cu % Au (g/t) Mo % Cu eq. %
PY10-01 32.3 499.9 467.6 0.27 0.05 0.019 0.43
PY10-02 4.6 356.6 352.1 0.34 0.07 0.008 0.45*
PY10-05 6.4 201.2 194.8 0.63 0.14 0.018 0.85*
PY11-07 6.0 110.0 104.0 0.56 0.13 0.009 0.72
Including 12.0 60.0 48.0 0.74 0.15 0.011 0.93
PY11-10 16.7 327.0 310.3 0.39 0.10 0.009 0.53*
PY11-16 94.0 249.9 155.9 0.71 0.18 0.018 0.97*
Including 226.0 246.0 20.0 0.99 0.15 0.012 1.19
PY11-17 44.0 161.5 117.5 0.60 0.08 0.024 0.81*
Including 93.0 136.0 43.0 0.77 0.09 0.026 1.00
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* Hole ended in mineralization Copper equivalent % calculated using $2.00/lb Cu, $1,150/oz Au, and $12/lb Mo
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Pyramid Property
Pyramid Property
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Open
Open
Open
Pyramid Property
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• Potential 2012 Pyramid exploration program with Antofagasta:
1. Confirm and expand the new high grade zone to the southeast
2. Test down-dip extensions
3. Expand the limits of known mineralization to the north and west
Full Metal Minerals: Pending Results
Full Metal Minerals: Moving forward…
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Senior Management & Directors
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• Michael Williams Chairman & Director
• Steve Hayes President & CEO
• Robert McLeod P. Geo., Director
• Aaron Keay Director
• Adrian Fleming Director
• Al Paterson Director
• Cale Moodie C.A., Director
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New Management
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New President and CEO – Steve Hayes
Mr. Hayes began his career with Noranda Sales Corporation, working in multiple commodity groups in a commercial capacity over the course of eight years. Thereafter, he joined Breakwater Resources, a mid tier zinc focused mining company. Over a 14-year career with Breakwater, Mr. Hayes was responsible for the company's marketing, purchasing and ultimately corporate development. Mr. Hayes left Breakwater in conjunction with its recent takeover by Nyrstar.
Symbol: TSX.V : FZ Shares Outstanding: 33,615,989 Fully Diluted: 44,685,974 Stock Options: Exercise Price Expiry 3,084,997 $0.185 - $0.265 November 2019 – July 2021 Warrants: Exercise Price Expiry 7,984,988 $0.22 - $0.35 July 2012 – July 2013
Share Structure
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Zinc Usage
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First Use
Oxides and Chemicals
Semi-Manufactured
Products
Die-casting Alloys
Brass
Galvanizing
Miscellaneous
End use
Industrial
Machinery
Consumer Products
Infrastructure
Transport
Construction
Zinc consumption highly correlates to industrial growth. 50% of zinc now used is in galvanizing, with 85% of demand derived from construction, infrastructure and transportation.
Source: Brook Hunt
Zinc Demand
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Europe Japan North
America
Oceania Africa Latin
America
Asia (ex
Japan & China)
China
10% 12% 15%
21% 22% 24%
32%
47%
Growth in Global Zinc Demand 2010-
2015
Source: Brook Hunt
Zinc Market
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• Zinc supply is constrained in the near-term by a depletion of large mines and a lack of similarly-sized and quality mines ready to replace them.
• New production coming on-line is associated with much
smaller mines with more limited mine life. This is not likely to improve the production efficiencies of an already fragmented industry.
• Mine supply-side bottlenecks appear inevitable in 2015 and beyond.
Zinc Market
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• Significant mine closures such as Century (Australia) 500,000 t/y, Brunswick and Perseverance (Canada) 340,000 t/y and Lisheen (Ireland) 170,000 t/y with only moderate replacement from new openings will move the zinc market back into deficit by 2014/15.
• Xstrata estimates 1.9 Mt/y of zinc mine capacity will
close by 2016 and only 800,000 t/y of new projects brought on stream to replace the lost mine supply. Furthermore, Xstrata forecasts a supply gap of 7 Mt/y by 2020.
Zinc Market
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-800000
-600000
-400000
-200000
0
200000
400000
600000
800000
1000000
Zinc Metal World Balance (t)
Source: CRU Group 2011
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40 Mile Property: 100% Full Metal Zinc
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40 Mile Property: Regional Potential
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LWM: Kill Zone
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*In Meters
Hole-ID From To Length Ag (g/t) Zn % Pb % Cu %
LWM06-01 30.2 42.3 12.1 110.9 15.7 4.0 0.32
Including… 35.7 42.3 6.6 200.8 27.0 7.2 0.56
LWM07-04 14.1 26.4 12.27 68.6 8.1 3.7 0.13
74.2 119 44.57 76.6 15.9 5.3 0.19
Including… 98.67 119 20.1 159.4 19.7 11.1 0.37
LWM07-05 52 60.5 8.5 105.3 12.3 8.0 0.08
Including… 55 57.5 2.5 340.0 21.0 26.1 0.59
LWM07-07 101.9 118 15.6 127.0 21.2 8.7 0.22
including:… 101.9 113 11.1 169.8 26.3 11.7 0.3
LWM07-09 211.5 218 6.5 464.2 31.6 11.3 1.41
LWM: Massive Sulphide Discovery
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2012 & Beyond
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• Continue exploration at the Fortymile project
• Evaluation of “brownfields” zinc opportunities
• Establish Full Metal Zinc as a company leveraged to the zinc market dynamics that suggest significant supply shortfalls moving forward