well funded five headline projects management focused on ...€¦ · 23/07/2014 · • joaquin...
TRANSCRIPT
Well Funded
Five Headline Projects
Management Focused on Shareholder Value
Booth 17
Vancouver Island Room
Speaker: Stephen Nano
President & CEO TSX.V: MRZ
2 | MRZ: TSX-V
Cautionary Statement
This presentation contains certain statements that may be deemed “forward-looking statements”. All statements in this release, other than statements of historical fact, that address future production, reserve potential, exploration drilling, exploitation activities and events or
developments that the Company expects to occur, are forward looking statements. Forward looking statements are statements that are not
historical facts and are generally, but not always, identified by the words “expects”, “plans” “anticipates”, “believes”, “intends”, “estimates”, “projects”, “potential” and similar expressions, or that events or conditions “will”, “would”, “may”, “could” or “should” occur. Information
inferred from the interpretation of drilling results and information concerning mineral resource estimates may also be deemed to be forward
looking statements, as it constitutes a prediction of what might be found to be present when and if a project is actually developed. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such
statements are not guarantees of future performance and actual results may differ materially from those in the forward-looking statements.
Factors that could cause the actual results to differ materially from those in forward-looking statements include market prices, exploitation
and exploration successes, and continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ
materially from those projected in the forward-looking statements. Forward looking statements are based on the beliefs, estimates and
opinions of the Company’s management on the date the statements are made. The Company undertakes no obligation to update these forward-looking statements in the event that management’s beliefs, estimates or opinions, or other factors, should change.
This presentation may use the term “indicated resource”. The Company advises investors that although this term is recognized and required by Canadian securities regulations (under National Instrument 43-101 “Standards of Disclosure for Mineral Projects”), the US Securities and
Exchange Commission does not recognize this term. Investors are cautioned not to assume that any part of or all of the mineral deposits in
these categories will ever be converted into reserves.
Stephen Nano, President and CEO for the Company and a “Qualified Person” under National Instrument 43-101, has reviewed and
approved the scientific and technical information in this presentation.
MIRASOL RESOURCES
Project Generator Primed for Discovery
→ Project Generator Business Model
→ Review of Mirasol’s Headline Projects &
12 Month Business Plans
4 | MRZ: TSX-V
Project Generator Business Model: Key Elements
• Spread risk across multiple projects Improving potential for
shareholder returns
• Lower burn rate Conserving capital structure
• Focus intellectual capital of project generator on generation
Creating new business opportunities (projects)
• Leveraging diverse skill sets Access expertise & technology of JV
partners
Does this business model deliver?
5 | MRZ: TSX-V
Project Generators – Does this industry sector deliver value? 20 project generator companies spanning 22 years on market
• Today’s combined market cap of $1.645 billion CAD Retained value in difficult market.
• Equity Raised $995.6 million CAD Strong capacity to raise capital (good project & people).
• Current working capital $285 million CAD Well funded companies.
• Returns to share holders (sale proceeds shares + cash) $1.038 billion CAD Sale on success (discovery)
• 5 of 20 companies have sold assets. Total value realized $1.363 billion CAD Demonstrated value creation.
• Market Cap + Returns to Shareholders - Equity Raised = $1.687 billion CAD value creation
Company Altius Minerals Corp. Almaden Minerals Azimut Exploration Inc. Eurasian Minerals Inc. Midland Exploration inc. Millrock Resources Inc. Miranda Gold Corp. Mirasol Resources Ltd. Renaissance Gold Inc. Riverside Resources Inc. Strategic Metals Ltd. Globex Mining Enterprises Inc. Virginia Mines Inc. Kaminak Gold Corp. Evrim Resources Corp. Aurion Resources Ltd. Lara Exploration Ltd. Estrella Gold Corp. Solitario Exploration & Royalty Corp. Reservoir Minerals Inc. Information generously provided by Kyle Mclean & Alex Ruggieri of Haywood Securities
Please see full disclaimer in appendix of this presentation. This chart information is not a solicitation for
the purchase of securities, an offer of securities, or intended as investment research or advice
Sta
rt o
f B
ull
Ma
rke
t
6 | MRZ: TSX-V
Mirasol Project Generator: Conserve Capital Structure
• Drilling under JV increased the
share price / decreased dilution
• Discovery reduced the cost of
capital
• Discovery reduced share dilution
• 2011 last raising cost of capital is
approx. 1/10th pre-IPO raisings
Currently exploring for
discovery with minimal
shareholder dilution due to
sale of Joaquin discovery
Reducing dilution
/ 4 projects drilled
under JV ≈ 15,500m
to 2008
Increasing
Capital raised
2004 2005 2006 2007 2009 2010 2011
IPO
2009-10 Joaquin & Virginia
discoveries reported
drill results
Jo
aqu
in S
ale
Since December 2012
Exploring with minimal
share dilution
WEIGHTED AVERAGE SHARE PRICE $CAD (INCLUDING EXERCISED WARRANTS)
7 | MRZ: TSX-V
Mirasol - December 2012
Sale of 49% of Joaquin to Coeur Mining
Cash and shares: $60 M
Total: $60.4 M
Coeur Mining Inc.
Purchase of 49%: $60 M Exploration: $14.4 M
Total costs 100% Joaquin : $74.4 M
Cost per Ag Eq. Oz of ≈ $1
• Joaquin discovery cost per ounce silver: 18.5 cents/Oz Ag Eq USD
• Joaquin pre-tax return to Mirasol (net of MRZ exploration): $59.35 M USD
• Joaquin total approx. cost per Ag Eq. Oz to Coeur Mining for 100% of project: $1 USD / Oz
Joaquin Discovery
72.8 M Ag Eq. Oz
Mirasol
Life of project exploration spend:
$1.0 M
Coeur Mining Inc.
Exploration spend approx. $12 M JV Cash payments: $400 K
Total investment: $12.4 M
Mirasol Analysis of JV Transaction – Value creation Customer client relationship
JV Model can deliver “win-win” outcome to project generator and partner company.
*Ag Eq Calculation based on relative Au/Ag values for 2012; 1g Au = 53g Ag All $ values USD
8 | MRZ: TSX-V
Appendix : Disclaimer
Important Haywood Securities Notice & Disclaimer: This chart information is not a solicitation for the purchase of
securities, an offer of securities, or intended as investment research or advice. The information presented, while
obtained from sources we believe reliable is not guaranteed against errors or omissions. For Canadian residents:
Haywood Securities Inc. is a Canadian registered broker-dealer and a member of the Investment Industry Regulatory
Organization of Canada, the Toronto Stock Exchange, the Toronto Venture Exchange and the Canadian Investor
Protection Fund. For U.S. residents: Haywood Securities (USA) Inc. is a wholly owned subsidiary of Haywood
Securities Inc., registered with the U.S. Securities and Exchange Commission, and is a member of FINRA and the
Securities Investor Protection Corporation (SIPC).
Sta
rt o
f B
ull
Ma
rke
t
Company Altius Minerals Corp. Almaden Minerals Azimut Exploration Inc. Eurasian Minerals Inc. Midland Exploration inc. Millrock Resources Inc. Miranda Gold Corp. Mirasol Resources Ltd. Renaissance Gold Inc. Riverside Resources Inc. Strategic Metals Ltd. Globex Mining Enterprises Inc. Virginia Mines Inc. Kaminak Gold Corp. Evrim Resources Corp. Aurion Resources Ltd. Lara Exploration Ltd. Estrella Gold Corp. Solitario Exploration & Royalty Corp. Reservoir Minerals Inc.
Mirasol Resources
Project Generator Primed for Discovery
→ Review of Mirasol’s Headline Projects &
12 Month Business Objectives
10 | MRZ: TSX-V
Mirasol Resources: Profile
• Well funded – Approx. $29.8M CAD working capital (Cash & Shares)
• Conservative capital structure (44.2 M Shares)
• High-calibre project portfolio:
o Rubi JV First Quantum Minerals copper-gold porphyry Chile
o Five Headline Projects – large system / multiple targets / drill ready
• Discovery focused management & exploration team
• Demonstrated discovery success for Mirasol : Joaquin & Virginia deposits
• Delivered on business model with sale of Joaquin
Mirasol is primed for the next discovery
11 | MRZ: TSX-V
Mirasol Market Information – July 2014
Trading symbol: TSX.V: MRZ
Market capitalization: (July 1st 2014) $53.1 million
Shares issued and outstanding: 44,245,661
Warrants: N/A
Brokers compensation: N/A
Stock options: 3,697,800
Fully diluted: 47,943,461
Cash + Shares (CAD): Cash: $19.3 million
Shares: 1.1 million shares Coeur Mining (July 1st 2014)
$29.8 million
12 | MRZ: TSX-V
Stephen C. Nano, President, CEO and Director, BSc. (Hons.), +25 years in exploration
and management roles in Latin America, Asia Pacific and Central Asia for major mining
companies. +15 years in South America.
Timothy W. Heenan, Exploration Manager and Director, BSc., +25 years as exploration
geologist and program manager throughout the Americas, with small and large mining
companies. +15 years in South America
Mary L. Little, Director , MSc., MBA, +25 years as geologist, analyst and country
manager for major mining companies. +15 years in South America.
Nick DeMare, Independent Director, CA, President of Chase Management Inc. and Board
member of several TSX listed companies.
Borden Putnam, Independent Director, CA BSc. & MSc. 17-years as analyst for natural
resources hedge funds, 20-years within the mining industry in senior management
exploration and consulting positions. Working worldwide with Newmont and AMAX mining.
Bernie Zacharias, Chief Financial Officer, Co-founder of Avisar Chartered Accountants
since 2004 and CFO of several TSX Venture listed companies.
MA
NA
GE
ME
NT &
DIR
EC
TO
RS
People are Our Most Important Resource!
Su
pp
ort
ed b
y
Team of High Caliber Argentine, Chilean and Australian Geoscientists and Technicians
13 | MRZ: TSX-V
10 / 100% Mirasol owned projects
Rubi FQM JV: copper, gold Gorbea belt: strategic area play 2 headline projects: Atlas: silver, gold Titan: gold
3 headline projects: Claudia: gold, silver Curva: gold, silver Virginia: silver
23 / 100% Mirasol owned projects
Mirasol Resources
Santa Cruz Gold-Silver Projects
0 100
Kilometres
Santa Cruz
Argentina
Atacama Chile
• Excellent Project Portfolio
• 100% Mirasol owned
• Gold silver copper
• Geographic focus
Mirasol Project Generation
Oligocene-Eocene Belt
Miocene Volcanics Belt
Jurassic Igneous Rocks
Tertiary Igneous Rocks
Lithology
Mirasol Mineral Claims
Mirasol Earn-in JV Area
LEGEND
Mirasol Reconaisance Region
Rubi porphyry copper-gold project Chile
First Quantum Minerals JV
15 | MRZ: TSX-V
Rubi JV – El Salvador porphyry district, Chile
1. FQM can extend earning 1 or 3 - 2 years by making $500k payment per extension
2. FQM operates
3. Tenure fees part of FQM spend
4. Signed binding Letter Agreement which allows non-invasive exploration to proceed
Year 1 Minimum Spend
$1.5 M USD (no management fee)
3,000 m drilling
100% magnetic coverage
4 years 55% payment For $6.5 M USD + $1.1 M USD in staggered cash payments
+2 years 65% NI 43-101 compliant Indicated Resources
+2 years 75% Decision to mine
Provide to Mirasol financing 25% interest
Payback from 50% Mirasol cash flow
• Multi-target porphyry copper-gold project adjacent to world class El Salvador -
Potrerillos porphyry district
• Excellent JV deal terms
• Strong JV partner (First Quantum Minerals)
• Aggressive exploration program commenced November 2013
16 | MRZ: TSX-V
Rubi copper-gold JV - First Quantum Minerals
• FQM initiated exploration November
2013 – JV Spend to date ≈
$680,000 USD
• New property-wide, 2460 line km
helimag survey
• Extensive property-wide soil
program
• Detailed mapping & sampling
• Detailed alteration vectoring studies
• Integrated targeting & modelling
Multiple targets identified for
geophysical testing & potential
drilling
Drill permitting process initiated
Adjacent to world class El Salvador - Potrerillos porphyry district
Mine or adv. Project
Primarily Gold
Primarily Copper
Rubi – El Salvador District
Qda (Quebrada)
del Salado veins
gold-silver intermediate
sulphidation epithermal
no prior drilling
Lithocap
7 sq km of advanced argillic
alteration
high sulphidation/porphyry
copper-gold-molybdenum target
Pampa del Inca
gravel covered
porphyry & exotic
copper target
no prior drilling
Corner Zone
covered porphyry
copper target
no prior drilling
Portezuelo Target
outcropping porphyry stockwork
shallow drilling 1980’s
no modern exploration
copper-molybdenum-gold
porphyry target
Rubi
Property
Potrerillos Porphyry
District
22 250 Mlbs Cu &
25 Moz Au
El Salvador Porphyry
District
37 500 Mlbs Cu &
12 Moz Au
Mirasol Gorbea Gold Belt, Chile:
Atlas & Titan Gold-Silver Projects
18 | MRZ: TSX-V
Mirasol Gorbea Gold Belt, Chile New Strategic Area Play: 9 x 100% owned Mirasol Projects - Most Advanced Atlas & Titan
• Mirasol project generation
program
• 9 x 100% owned Mirasol projects
• Atlas & Titan new discoveries,
large outcropping gold-silver
system
• Epithermal oxide gold targets
• Conceptual porphyry copper-gold
target at Titan
• Atlas: Extensive surface
gold/silver rock chips & trenching
• Titan: Scout drill intersections up
to 18m @ 2.16 g/t Au Incl. 10m
@ 3.58 g/t Au
Mirasol/
First Quantum
Minerals-
Rubi JV
Mirasol
Gobea Gold Belt /
Atlas & Titan
Copper-Gold Mine/Advanced Prospect
Gold-Silver Mine/Advanced Prospect
Miocene-age Deposits
LEGEND
Oligocene-Eocene Belt
100% Mirasol Claims
Miocene Volcanics Belt
Mirasol Earn-in JV Area
Maricunga Gold Belt Total 82 Moz Au Total 243.6 Moz Ag Total 10 968 Mlbs Cu
19 | MRZ: TSX-V
Atlas Project – 7020 Ha 100% Mirasol Owned
El Dorado Project-1100 Ha 100% Mirasol Owned
Titan Project- 4120Ha 100% Mirasol Owned
Alunite Illite Kaolinite
ASTER Alteration
LEGEND
Pyropyllite
Magnetic
Depletion Zone
Ground Magnetic
Analytical Signal of the Vertical Integral (ASVI)
100% Mirasol
Claims Sulfidation Trend
Low High
Ground Magnetic Imagery:
Analytical Signal to Vertical Integral (ASVI)
Base Imagery:
Landsat-8 (USGS 2014)
• Atlas new prospects
identified
• Extensive at surface
gold & silver
geochemistry
• New trench gold/silver
channel samples
• New 5.4 sq. km IP
electrical geophysics
Gorbea Gold Belt: Atlas & Titan Projects, Chile 2 adjacent head line Projects / excellent result / good Access / workable Altitude
20 | MRZ: TSX-V
Atlas Project – Gorbea gold belt, Chile
Atlas All Surface Rock Chips
AGZ
ASZ
1 to 50.4
0.25 to 1
0.10 to 0.25
0.05 to 0.10
0.01 to 0.05
0 to 0.01
BDL to 0 Ro
ck
Ch
ip A
ss
ays
by G
old
Eq
uiv
ale
nt
Au
+A
g/5
5
50. 3 / 5.2
30.7 / 42.3
16.8 / 43.9
5 0 . 3 / 5 . 2
Labelled Rock Chip
Results
Silver (g/t) Gold (g/t)
Best 3 Rock Chip Samples
From beginning of project to June 2014
Gold / Silver (g/t)
By Gold By Silver
0.01 / 2470
0.08 / 639
0.06 / 592
0.01/247
0 0.02/592
0.15/415
Areas of Gold/Silver
Anomalous Rock
Chips
50.3/5.2
16.8/43.9 30.7/42.3
0.08/639
Atlas
Silver Zone
Atlas
Gold Zone
0.01/377
0.3/0.1
0/70.7
0/56.5
0/43.6
0.01/14
0.06/492
Pampa Zone
By
Go
ld
2.91/1.9
1.14/2.1
1.32/5.7
By
Silv
er
0.06/421 0.05/386
0.08/248 Pleiades Base Imagery
IP Resistivity
50m Depth Slice
Pleiades Base Imagery
10 500 100
IP 50m Depth Slice:
Resistivity (Ohm-m)
1000
NEW PAMPA ZONE
Anomalous Rock Chip up to
2.91 g/t Au & 421 g/t Ag
ATLAS GOLD ZONE
Anomalous Rock Chips
up to 50.3 g/t Au
ATLAS SILVER ZONE
Anomalous Rock Chips
up to 639 g/t Ag
Soil covered high-resistive
zone. Local outcrops of
strong quartz-alunite
alteration & elevated
Ba-As-Sb-Hg
Large gold-silver system / high grade rock chip assays with geophysical anomalies – defining drill target
MRZ Atlas
Project 7020 Ha
21 | MRZ: TSX-V
1 to 50.3
0.25 to 1
0.10 to 0.25
0.05 to 0.10
0.01 to 0.05
0 to 0.01
BDL to 0
Rock Chip Assays
by Gold (g/t)
Trench Collar & Trace
50m IP Resistivity
Contour Line
500
10
100
1000
50
m IP
(o
hm
me
ters
)
Re
sis
tiv
ity D
ep
th S
lic
e
50.3/5.24
30.7/42.3
16.75/43.9
7.72/28.5
5.05/23.4
7.03/0.37
8.96/44.7 7.46/56.9
Magnetic Structure
50m IP Resistivity
Depth Slice
Labelled Rock Chip
Results,
greater than 5.0 g/t
Au
Silver (g/t) Gold (g/t)
5 0 . 3 / 5 . 2 4
Funnel Shaped Resistive Bodies
Feeder Zone/Buried Dome?
Mirasol Atlas
Project-7020 Ha
AGZ Santiago
Antofagasta
Mirasol
Atlas Project
Location Overview: Tenure Overview:
Atlas Gold Zone (AGZ) Prospect – Priority Drill Targets
• AGZ prospect surface rock chip
samples define an 800 by 500 m area
with anomalous gold/silver
• 55 samples in the range 1-50.3 g/t Au.
outline multiple NW trending vuggy
silica structures.
• AGZ gold structures traverse 1.1 km
long trend with highly resistivity bodies
– hydrothermal feed zones (breccia’s?)
or buried domes.
• New trench channel of vuggy silica
structures & breccias, assay:
8.4 m @ 1.85 g/t Au,
11.3 m @ 1.32 g/t Au and
14.9 m @ 1.67 g/t Au
• Priority drill targets developing
22 | MRZ: TSX-V
Titan Gold Project – Gorbea Belt Chile encouraging oxide gold results from 1st round of drilling
• 700 by 660 m zone of
anomalous gold outlined in
trenches
• Best trench intersections:
194 m @ 0.41 g/t Au
inc. 31 m @ 1.36 g/t Au
10 metres @t 2.13 g/t Au
• Scout drill program with
encouraging oxide-gold
intersections:
18 m @ 2.16 g/t Au
inc. 10 m @ 3.85 g/t Au
10 m @ 1.87 g/t Au
inc. 8 m @ 2.24 g/t Au
• New surface & trench
mapping analysis
underway
• Evidence for conceptual
porphyry target suggested
at depth
LEGEND
Base Imagery:
Worldview-2 (ESRI 2012)
ASTER Alteration
Alunite
Illite
Kaolinite
Pyropyllite
Ground Magnetics (ASVI)
High Low
100% Mirasol
Titan Project
Joint Venture Earn-
in Claim
Mirasol JV earn-in
Vaquillas Project
Mirasol Titan
Project Area
23 | MRZ: TSX-V
10 / 100% Mirasol owned projects
Rubi FQM JV: copper, gold Gorbea belt: strategic area play 2 headline projects: Atlas: silver, gold Titan: gold
3 headline projects: Claudia: gold, silver Curva: gold, silver Virginia: silver
23 / 100% Mirasol owned projects
Mirasol Resources
Santa Cruz Gold-Silver Projects
0 100
Kilometres
Santa Cruz
Argentina
Atacama Chile
• Excellent Project Portfolio
• 100% Mirasol owned
• Gold silver copper
• Geographic focus
Mirasol Project Generation
Oligocene-Eocene Belt
Miocene Volcanics Belt
Jurassic Igneous Rocks
Tertiary Igneous Rocks
Lithology
Mirasol Mineral Claims
Mirasol Earn-in JV Area
LEGEND
Mirasol Reconaisance Region
24 | MRZ: TSX-V
Rio Seco
New drill targets
defined
R T P G r o u n d M a gn e t ic s
Ciline
New
prospect
AngloGold Ashanti
Vanguardia Vein Field
Laguna
Blanca
Ailen
Curahue South
Mirasol Claudia
Cateo – 129 333 Ha
Cerro Vanguardia
8.1 MOz Au & 117 Moz Ag
Claudia Gold & Silver – Santa Cruz Argentina Extension of AngloGold - Ashanti Cerro Vanguardia Vein System - Mine
• 5 epithermal prospects with extensive surface & trench gold-silver results
• New drill targets defined by geophysics/rock chip assays at 14 km long Curahue trend & Rio Seco vein zone
High Low
Magnetic Grid
Gold Equilivent
Au + Ag / 55 (g/t)
LEGEND
25 | MRZ: TSX-V
• Strategic project in new gold district
• Four large gold-silver prospects identified / no previous drilling
• Potential for high-grade & bulk mineable gold mineralization
• 6 km long La Castora trend with 3 separate drill targets defined by gold-silver assays / geology & geophysics
• Drill-ready targets at Chato, Arthur & Southwest prospects
Curva Gold & Silver – Santa Cruz Argentina New District / Four prospects / No Drilling
Mirasol La Curva – 36 600 Ha
Mirasol: Objectives & investment rational
27 | MRZ: TSX-V
Mirasol – Forward focus & objectives
Focus on our core business model – Project Generator JV company
o Chile focus of our spend / project generation / project exploration
o Argentina represents a counter cyclic investment opportunity
Build our generative pipeline – our R&D investment & life blood of this company
o Chile: Concept driven generation & early stage project acquisition
o Argentine: strategic consolidation in key districts / low holding cost
JV deals on headline properties in Chile & Argentina - release value to
our shareholders via discovery – Gorbea Belt & Argentine headline projects
Slow the burn rate – targeting corporate + exploration spend Fy2015
USD $6.1 to 5.5M
Evaluate accretive business opportunities
Improve information flow to our shareholders & the Market so they can make
informed investment choices
28 | MRZ: TSX-V
Mirasol: Why Invest ?
• Well funded – Approx. $29.8M CAD working capital (Cash & Shares)
• Conservative capital structure -
• High-calibre project portfolio:
• Rubi JV First Quantum Minerals copper-gold porphyry Chile
• Five Headline Projects – large mineral system / multiple targets / drill ready
• Discovery focused management & exploration team
• Demonstrated discovery success for Mirasol : Joaquin & Virginia Silver deposits
• Delivered on business model with sale of Joaquin
Mirasol is primed for the next discovery
29 | MRZ: TSX-V
• Well Funded
• Strong Rubi JV
• Five Headline Projects
• Management Focused On Shareholder Value
Booth 17
Vancouver Island Room
Speaker: Stephen Nano
President & CEO TSX.V: MRZ