gold coast resources showcase - rns submit · peru – 2010 mineral production rank silver copper...
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Gold Coast Resources Showcase June, 2012
Disclaimer
This presentation and any oral presentation accompanying it has been prepared by Latin Resources Ltd (“LRS “ or
the “Company”). It should not be considered as an offer or invitation to subscribe for or purchase any securities in
the Company or as an inducement to make an offer or invitation with respect to those securities. No agreement to
subscribe for securities in the Company will be entered into on the basis of this presentation.
This presentation contains forecasts and forward looking information. Such forecasts, projections and information
are not a guarantee of future performance, involve unknown risks and uncertainties. Actual results and
developments will almost certainly differ materially from those expressed or implied. LRS has not audited or
investigated the accuracy or completeness of the information, statements and opinions contained in this
presentation. Accordingly, to the maximum extent permitted by applicable laws, LRS makes no representation and
can give no assurance, guarantee or warranty, express or implied, as to, and take no responsibility and assume no
liability for, the authenticity, validity, accuracy, suitability or completeness of, or any errors in or omission, from any
information, statement or opinion contained in this presentation.
You should not act or refrain from acting in reliance on this presentation material. This overview of LRS does not
purport to be all inclusive or to contain all information which its recipients may require in order to make an informed
assessment of the Company’s prospects. You should conduct your own investigation and perform your own
analysis in order to satisfy yourself as to the accuracy and completeness of the information, statements and
opinions contained in this presentation before making any investment decision.
Latin Resources Limited (ASX Code: LRS)
Mineral exploration and development company
based in mineral rich Peru with a focus on Iron Ore
Over 3 years of exploration work and
$10m spent to date
Listed on ASX
September 2010
Cape Lambert Australia Second
largest shareholder
RMB Resources (FirstRand Bank)
acquired 5% in May
Junefield Chinese Group acquired 16.8%
for $8.4m (28c) 2012
Strong Management
team
(Source: Peruvian Ministry of Energy and Mines, Annual Mining Report 2010; US Geological
Survey, The Silver Institute, Gold Fields Mineral Services, International Copper Study Group,
International Lead and Zinc Study Group, International Tin Research Institute, International
Molybdenum Association, Intituto Latinoamericano del Hierro y Acero)
Peru – 2010 Mineral Production Rank
SILVER
COPPER
ZINC
GOLD
IRON
LEAD
2
World
Latin America
2
1
1
1
6
1
2
1
4
Mineral World Latin
America
Silver 1 1
Copper 2 2
Zinc 2 1
Lead 4 1
Gold 6 1
Iron 17 5
Latin Resources Limited
Achievements since listing on ASX
Completed
exploratory
drilling program
at Ilo
Appointed Ausenco
for Guadalupito
Scoping Study
Secured Joint
Venture Partner for
Mariela – Junefield
Group
Acquired a major
and potential world
class mineral sands
project at
Guadalupito
ASX September 2010
Fe
bru
ary
20
11
Au
gu
st 2
011
Dece
mb
er
20
11
Se
pte
mber
20
11
Ma
rch 2
011
Completed
Initial JORC
Resource
at Guadalupito
(Snowdens)
Project Portfolio & Strategy
Guadalupito
Iron & Mineral
Sands
Iron, Zircon, Gold,
Andalusite
Ilo & Mariela
Projects
Iron, Copper, Gold
Close to
Port & Infrastructure
Focus on Flagship Project Guadalupito
Develop strong
community relationships
Situated in area surrounded by
major International
Resource Sector Players
Development Success in Peru
Government Economic
Development
Community
Relationships Water & Employment
Project
Development
Latin Resources Projects
ILO PROPERTIES
MARIELA
ILO
Latin
Resources
Guadalupito
Project
Latin
Resources
Ilo & Mariela
Projects
Guadalupito Iron & Mineral Sands Project
Total holding of over
16,000 hectares
The port town of Chimbote is
25kms South
SiderPeru Steel works (Gerdau Group)
is located in Chimbote
Close to
infrastructure – Port & Hwy
Guadalupito
Project
Chimbote
Port
*On 9 and 10 May 2011 Latin announced a conceptual exploration target of 2 billion tons of mineralised sediment at Guadalupito (within a range 2.0-2.6 billion tones). This conceptual exploration target was based on
an estimated area of 6000 hectares of prospective sediments generated from detailed field mapping, a mineralised depth of 20 m as suggested by initial test drilling and an estimated S.G. of 1.8-2.2. Work conducted at
Guadalupito to date highlights good potential for economic content of: Magnetite (3.5% - 15.1%) ,Andalusite (5.3% – 16.5%) ,Gold (6 - 556 mg/m3) and potentially economic content of: Monazite (REE) (trace – 1.7%)
,Zircon (trace – 1.1%) ,Ilmenite (trace – 2.8%) ,Wolframite (trace). The potential quantity and grade is conceptual in nature, and there has been insufficient exploration to define a Mineral Resource and it is uncertain if
further exploration will result in the determination of a Mineral Resource.
Guadalupito Iron & Mineral Sands Project
Conceptual exploration
target of 2 Billion tones of mineralized
sediments*
Magnetite with a
low Titanium Gold grades of potential economic
significance have
been encountered
Discrete liberated mineral grains
of recoverable size of Zircon,
Ilmenite and Andalusite have been indentified
Sonic Drill Rig Guadalupito
Recent High Grade Heavy Mineral
Content discovered
New hole (GUA-BL-045) to 39 meters with average
7.4% HM
Hole included 15m @ 9.8%
High Grade zone at surface 4 kilometres
long, 300m to 500m wide
This suggests thicker and higher grade HMC
Iron Ore (Magnetite)
Initial JORC Inferred Resource (Snowdens)
Above water table JORC Resource – 38MT @ 8.9% Heavy Mineral
Below water table JORC Resource – 81MT @ 4.1% Heavy Mineral
Total JORC inferred Resource of 119MT @ 5.7% Heavy Mineral
Initial JORC carried out over 682 ha
. Total Concession Hectares 16,437
. 682 ha is only 5% of total concession area
68 Sonic Holes completed – Total drill program of over 1000 holes
Peer % Heavy Mineral Comparison
7%
6%
5%
4%
3%
2%
1%
0%
World Titanium
Resources
Madagastar
Latin Resources
Peru
Base Resources
Kenya
Rio Tinto
South Africa
Kenmare
Mozambique
Matilda
Zircon
Australia
Mineral
Deposits
Senegal
6.54%
5.70%
4.90%
4.00%
3.00% 2.52%
1.70%
Heavy Minerals (%)
Scoping Study Brief - Ausenco
Develop of early cash flow based on a
10Mt pa dry mining operation to produce
Magnetite | Gold | Andulusite
Develop eventual target of a 30 to 35 Mt pa
operation to produce other minerals
Zircon | Ilmenite and
other Ferro-Titanium oxides
Stage 1 Concept - 10 mtpa Dry surface Mining Operation
MINING WCP
screening desliming spiral circuit
thickener
mining void
clay
fines
sand
tails
HMC stockpile
MSP
Lims magnetic
separation
Magnetite
stockpile
spiral circuit
Non-mag
stockpile
super-con
PORT
ship loader
“Gold con”
wet table
Gold
concentrade
STAGE 1
CONCEPTUALFLOWSHEET
Andalusite
Stage 2 Concept - 35 mtpa Dredging Mining Operation
MINING WCP
screening desliming spiral circuit
mining void
clay
fines
sand
tails
HMC stockpile
MSP
Lims magnetic
separation
Magnetite
stockpile
non-magnetic
spiral circuit
super-con
PORT
ship loader
“Gold con”
wet table
Gold
concentrade
STAGE 2
CONCEPTUALFLOWSHEET
rejects
non-
magnetics concentrate
Lims non-mags
HT separation
Non-mag conductor
magnetic separation
conductors
Non-magnetic
non-conductors
Magnetic separation
non-
conductors
reje
cts
Wet Zircon
spiral circuit
reje
cts
Zircon
product
magnetics
Magnetic
TIO2 product
Andalusite
no
n-m
ag
ne
tics
Potential Mining Operation & Example of Concentrate
Latin Resources Ilo Projects
ILO PROPERTIES
MARIELA
ILO
Latin
Resources
Ilo & Mariela
Projects
Ilo District 2008
Latin
Resources
Ilo Port
Latin
Resources
Chile
Southern
Copper
Ilo 2012 – Latin resources controls 100,000 HA
Ilo Port
Ilo Norte
Anaconda
(Antofagasta)
Chile
BHP
Southern
Copper
Mariela
Metminco
Ilo Norte Drilling
Iron and copper mineralisation in all 8 initial exploratory holes 120m from 24m @ 0.13% Cu, 20.38% Fe in hole IN-02
Gold anomalism coincident with Copper mineralisation 14m from 52m @ 0.55% Cu, 0.13g/t Au in hole IN-02 and
22m from 254m @ 0.25% Cu, 0.09g/t Au in hole IN-03
Anomalous Zinc values
Mineralized unit more than 250m thick
Infill drilling planned 3rd Quarter, 2012
Drill results Ilo Norte
Mariela Project – Joint Venture
Large anomaly
Excellent Iron Oxide Copper Gold
(IOCG) District
Close to
Port and Highways
Drilling commenced
May 2012
Junefield Group to spend
$35m to BFS for 70%
LRS 30% free carry during this phase
Mariela – 3D Gravity Model
Mariela Drill Program (12,000m)
Strategy and Goals for 2012
2012 Expand JORC inferred resource at Guadalupito
Complete Scoping study at Guadalupito
Complete 12,000m drilling program at Mariela
Commence detailed exploration program at Ilo Concessions
Increase shareholder value by achieving sound fundamental
milestones
LRS – Capital Structure
Junefield Group major Shareholder
with 16.8%
Cape Lambert shareholding
12%
Top 30 Shareholders
represent 70% of shareholding
$3.5m in
current cash
If options in Money
in March 2013 will raise @ 30c –
$18m cash
Shareholding Shares Options
Total Shares 180,921,141 62,450,000
Market Cap @30c $54 million March 2013 exercisable @30c
300
250
200
150
100
50
0
$54m
$200m
$34m
$86m
$280m
Peer Market Cap – ASX*
* As of 30th April 2012
Latin Resources
119MT Base Resources
262MT Matilda Zircon
66MT World Titanium
700MT Metminco
Copper Peru
Iluka Resources
$6B+
Mkt Cap
$ m
illio
n
Thank you and Questions
Competent Person Statement The information in this report that relates to Geological and Geochemical Data, Exploration Results, Conceptual Exploration Target, Mineral Resources, or Ore Reserves is based on information compiled by Mr Andrew Bristow, a full time employee of Latin Resources Limited’s Peruvian subsidiary. Mr. Bristow is a member of the Australian Institute of Geoscientists and has sufficient experience which is relevant to the style of mineralization and the type of deposit under consideration to qualify as a Competent Person as defined in the December 2004 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code). Mr. Bristow consents to the inclusion in this report of the matters based on his information in the form and context in which they appear.
*On 9 and 10 May 2011 Latin announced a conceptual exploration target of 2 billion tons of mineralised sediment at Guadalupito (within a range 2.0-2.6 billion tones). This conceptual exploration target was based on an estimated area of 6000 hectares of prospective sediments generated from detailed field mapping, a mineralised depth of 20 m as suggested by initial test drilling and an estimated S.G. of 1.8-2.2. Work conducted at Guadalupito to date highlights good potential for economic content of: Magnetite (3.5% - 15.1%), Andalusite (5.3% – 16.5%) ,Gold (6 - 556 mg/m3) and potentially economic content of: Monazite (REE) (trace – 1.7%) ,Zircon (trace – 1.1%), Ilmenite (trace – 2.8%), Wolframite (trace).
The potential quantity and grade is conceptual in nature, and there has been insufficient exploration to define a Mineral Resource and it is uncertain if further exploration will result in the determination of a Mineral Resource.