SOUTH AMERICAN GOLD Production, Development & Exploration

Transcription

1 SOUTH AMERICAN GOLD Production, Development & Exploration Exploration Update in Colombia I TSX:OMI, AIM:OMI I February 2018

2 Disclaimer This document has been issued by Orosur Mining Inc. (the Company ). This document does not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any securities of the Company, nor shall any part of it nor the fact of its distribution form part of or be relied on in connection with any contract or investment decision relating thereto, nor does it constitute a recommendation regarding the securities of the Company. In particular, this document and the information contained herein does not constitute an offer of securities for sale in the United States. This document is being supplied solely for information. The information in this document has been provided by the Company or obtained from publicly available sources. No reliance may be placed for any purposes whatsoever on the information or opinions contained in this document or on its completeness. No representation or warranty, express or implied, is given by or on behalf of the Company or any of the Company s directors, officers or employees or any other person as to the accuracy or completeness of the information or opinions contained in this document and no liability whatsoever is accepted by the Company or any of the Company s members, directors, officers or employees nor any other person for any loss howsoever arising, directly or indirectly, from any use of such information or opinions or otherwise arising in connection therewith. Nothing in this document or in the documents referred to in it should be considered as a profit forecast. Past performance of the Company or its shares cannot be relied on as a guide to future performance. All statements, other than statements of historical fact, contained in this presentation constitute "forward-looking statements" within the meaning of certain securities laws, including the "safe harbour" provisions of the Securities Act (Ontario) and the United States Private Securities Litigation Reform Act of 1995 and are based on expectations estimates and projections as of the date of this presentation. Such forward-looking statements include statements relating to funding the planned drilling at Anza and San Gregorio, definition of a first mineral resource calculation on the Anza property for precious and base metals, delivery of a PEA on Anza, potential to build a mining operation in Colombia, exploration results in Chile, completion of a NI compliant technical report of the Anza property, the increase in mineral reserves, expected additional capital costs and operational costs, net present value and the extension of mine life. Such statements are subject to significant risks and uncertainties, and actual results and future events could differ materially from those anticipated in such statements. Such risks and uncertainties that may affect actual results include, but are not limited to; results of the drilling plan at Anza, environmental base line results, social base line results, upgrading camp facilities, initiation of more active communities engagement, permitting time lines; the failure of plant; equipment or processes to operate as anticipated; accidents; labour disputes, requirements for additional capital and the price of gold. Other risks and uncertainties are included in the Company s most recently filed Annual Information Form under the heading Risk Factors. The Company has made certain assumptions about the price of gold. The Company does not intend to update any forward looking statements except to the extent required by applicable law. Qualified Person's Statement All technical information related to the current assets of Orosur Mining in this presentation has been reviewed by Miguel Fuentealba, a Mining Engineer who is considered to be a Qualified Person under NI reporting guidelines. Mr. Fuentealba is a graduate in Mining Engineering from the University of Santiago de Chile and is an AusIMM Member and Qualified Person of Chilean Mining Commission. Mr. Fuentealba has 20 years of professional experience in the field of mining engineering, mine development and management. For further details regarding the any of Orosur s projects, please refer to the technical reports available under Orosur company profile, or Waymar Resources profile for previous Anza technical reports, on SEDAR at Non-GAAP Financial Measures Cash flow from operations and cash cost per ounce are not measures that have any standardized meaning prescribed by IFRS and are considered non GAAP measures. Therefore these measures may not be comparable to similar measures presented by other issuers. These measures have been presented in this presentation as additional information regarding the Company s financial performance and financial position. Cash flow from operations is calculated by adding back non-cash items to net earnings. Contribution margin has been calculated by deducting operating expenses from sales. Operating expenses include movements in inventories but exclude operating amortization and depletion. Cash cost per ounce are determined according to the Gold Institute Standard and consist of site costs for all mining, processing, administration, royalties, refining charges, silver credits and inventory adjustments relating to metal production. Capital expenditure, depletion and amortization, corporate costs and financing costs are not included. Cash costs per ounce are total cash costs divided by gold ounces produced. 2

3 Strategic Footprint in Prolific Belts COLOMBIA, Anzá High Grade Gold Discovery with multiple untested targets Antioquia Department Between Buritica and El Roble-Marmato deposits Drilling at present, high grades over significant widths Mining permit in place URUGUAY, San Gregorio Greenstone Belt next to Producing Mine Northern Uruguay, close to Brazil Produced over 1.4Moz to date Built many open pits, 2 underground mines 100km in underexplored greenstone belt 3

4 Corporate Snapshot 12 Month Share Performance TSX/AIM Dual Listed: OMI Advisors: Cantor Fitzgerald Numis Securities Research Target Prices² Nomad & Joint Broker Joint Broker Current Price¹ C$/sh $ week range C$/sh $ $0.32 Average Daily Volume Basic S/O #M Options and Warrants #M 15.7 Fully Diluted S/O #M Market Capitalisation C$M $18.2 Net Cash³ C$M $0.4 Enterprise Value C$M $17.8 Top 5 Shareholders Name % Paul Stephens 7.3% Gold % Continental 6.4% Fidelity 4.2% Emma Cawkwell 2.3% Cantor Fitzgerald Asa Bridle January 29, 2018 C$0.51 ( 0.29) Edison Investment Research Limited Tom Hayes January 26, 2018 C$0.30 ( 0.17) Numis Securities Jonathan Guy January 15, 2018 C$0.62 ( 0.35) Average C$0.48 ( 0.27) A V E R A G E U P S I D E T O R E S E A R C H T A R G E T O F O V E R % Note 1: Sourced tmx.com and Bloomberg.com as at 19 February 2018 Note 2: Sourced from most recently published research Notes, GBP:CAD rate assumed at 1.76 Note 3: As at 30 November

5 The Team Experience & Commitment Board of directors John Walmsley Non Executive Chairman 30 yrs oil & gas experience Chairman Pantheon Resources Exec Chair - Consilience Energy Management Alejandra López CFO CA and MBA with >12 years experience, incl. 8 years with Orosur and previously senior auditor at Ernst & Young. Ignacio Salazar CEO & Director Jorge Aceituno COO and Director Roger Davey Non-Executive Director CEO of Orosur since 2013 President Uruguay Mining Chamber 18 yrs with Royal Dutch Shell MSc. In Economics & Business Admin, Masters Degree in Law 30 yrs international geology and operational roles for mining companies incl. GM, Operations for Maricunga, Pascua-Lama and Zaldivar Mining Engineer >40 yrs international experience incl. N M Rothschild, Minorco/AngloGold Director of Atalaya Mining, Condor Gold, Tharisa, & Central Asia Metal Ryan Cohen VP - Corporate Development Fernando Fuentes GM, San Gregorio Jerónimo Jáñez Exploration Manager Uruguay Joaquín Sarroca Legal Counsel >12 yrs in the mining sector across investment banking, investor relations, management and corporate advisory roles. Previously a Director, ECM with Canaccord Genuity >25 yrs in the mining sector, incl. 20 yrs with Orosur Mine geologist with >10 yrs in gold/base metals & OP/UG Ops Geology degree from La Plata National University Corporate lawyer >10 yrs experience Master of Law - International Business (LLM) / Uruguayan Lawyer Horng Dih Lee Non Executive Director CA with >25 yrs finance and admin Former CFO of Eastern Platinum & Northern Orion Resources Héctor López Administration & Budget Manager >12 yrs finance experience Worked for Rea Gold, who developed the San Gregorio mine 5

6 Strategy: Investment Summary Value Proposition Strong Asset Base Proven team Production in Uruguay with material organic growth opportunities High grade gold exploration project in Colombia Gold exploration asset in Chile Operating expertise, including CSR, exploration, development, mining & processing Solid track record of delivering on guidance Strong Latin American expertise Increasing value for shareholders: Multiple opportunities for a re-rating Very low economic threshold to develop and mine reserves from the Company s greenstone belt in Uruguay Opportunity to increase production/life of mine in Uruguay and strong leverage to increased in gold price Colombia exploration upside prolific belt, known drill intersected mineralization, untested anomalies V A L U E A C C R E T I O N : P R O G R E S S I N E X P L O R AT I O N B Y P R O V E N M I N I N G T E A M 6

7 Anza, Colombia Drill Bit Success, More to Follow >200km 2 property package 1 high grade discovery, 4 untested gold targets in soil anomalies

8 Strategically Located in Prolific Belt Note 1: Sourced from company websites, tmx.com & public disclosure as at 19 February

9 Tactical Acquisition During Bear Market 1. Well positioned to develop a project 100% owned - no 3 rd party commitments All season access with excellent infrastructure, including grid power, water and labour 2. High grade gold discovered at APTA Abundant high grade drilled gold intercepts 3. Mining & environmental permits already in place Existing today for a smaller operation, will need to be expanded Located between 700 2,000m elevation 4. Significant upside APTA remains open along strike and at depth Only APTA tested out of 5 identified targets +200km 2 property 5. Drilling ongoing at present 9

10 APTA: Outstanding Historic Drilling Results¹ Hole From To Interval Au Ag Zn # m m m g/t g/t % MAP including MAP including MAP including MAP including MAP including MAP including MAP including including including MAP including MAP including MAP including including As announced by Waymar Resources Press Releases

11 Multiple Targets with Coincident Anomalies COINCIDENT SURFACE GEOCHEMICAL AND GEOPHYSICAL ANOMALIES DETAILED MAPPING & DRILLING HAS CONFIRMED GEOLOGICAL POTENTIAL Only APTA has been drilled and is defined as a discovery A further 4 targets are untested Extensions of APTA along the Aragón Fault are Jesuitas and Guaimarala Charrascala is a strong soil anomaly on north-south structures, 1.5 km west of the APTA deposit La Cejita demonstrates gold anomalies associated with tonalite and diorite intrusives that cover an area of 6.1 km 2. The most significant gold anomaly measures > 1 km 2 and is associated with the northern edges of the intrusions. Porphyries and vein targets have been identified. 11

12 APTA Drilling Campaign

13 Current Drilling Validating High Grades & Thick Intervals Hole Number From (m) To (m) Interval (m) Au (g/t) Ag (g/t) Zn (%) MAP_ Including Including Including Including Including including including including including including MAP_ Including Including MAP_ Including MAP_ MAP_ Including Including Including MAP_ Including Including Including Including Including MAP_ including Including Including Including Geological Model Validated & Mineralization Extended Validated APTA geological model Mineralized zone extends 75m down dip, 50m up dip and 85m along strike to the north APTA high grade gold mineralized intercepts now covers a strike extent of ~1.5 km and depth extent of 275m Mineralization remains open in all directions To date, completed 16 holes (MAP_54 to MAP_69) totaling 5,640.5m at APTA Received assay results for 9 holes totaling 3,121m (MAP_54 to MAP_62) 13

14 New Zone Defined - 450m Strike Demonstrated multiple zones of gold mineralization Defined a new broad zone of gold mineralization covering a continuous strike of 450m immediately north of previous drilling Results from two holes (MAP_60 & MAP_62) demonstrate multiple zones of gold mineralization including: MAP_60 MAP_62 5.5g/t Au over 3.34 metres from 70 metres depth 4.86g/t Au over 25 metres from 222 metres depth 5.09g/t Au over 5.3 metres from 60 metres depth 5.00g/t Au over 23 metres from 217m depth Mineralised This zone is characterized by strongly silicified breccias with disseminated sulphides like pyrite, sphalerite chalcopyrite and traces of galena Orosur Investor Presentation I November 2017 I 14

15 Near Term Exploration Program Charrascala Charrascala is defined by an extensive coincident gold in soil and magnetic anomaly ~3km north-south by 1km east-west. Surface mapping and sampling combined with interpretation of geophysical data sets indicates very similar signatures to APTA The last phase of this drilling campaign will conclude work in the center and south of APTA and increase its focus in Charrascala All permits required to complete this program have been granted Orosur Investor Presentation I November 2017 I 15

16 San Gregorio, Uruguay Production with Exploration Upside Produced over 1.4Moz over past 20 years Strategic Footprint in 1,800 km 2 Greenstone Belt With Low Economic Threshold Orosur Investor Presentation I November 2017 I 16

17 Uruguay Snapshot Country Population: ~3.5 million people High Level of Education: Literacy rates one of the highest in Latam. In 2009, became the first country in the world to provide a laptop for every primary school student Uruguay has the most progressive income distribution in Latin America Strong, long lasting track record of respect for political, social and economic freedom Established banking and other financial institutions Uruguay ranked the best place to live in Latin America 1 One of the safest countries in Latin America (along with Chile & Costa Rica) 2 Promotion and protection of investments a consistent state policy Orosur Track Record In Uruguay since early 1990 s as an explorer and in production since 2004 Workforce predominantly local Orosur has trained the majority of its underground workforce Ability to permit i.e. responsibly diverted a river in 2007, permits in 6m - 1year Orosur has been granted a gold royalty exemption in 2015/ 2016 and again in 2017/

18 San Gregorio: Greenstone Belt with Infrastructure Exploration efforts curtailed in the bear market: focusing on near mine exploration Despite under investment in exploration which has resulted in declining grade profile, the mine is breaking even at the average grade of the last two years, which has been dominantly UG Owner operated 1.5Mtpa CIL plant: ~ 93% average recovery, spare capacity (currently processing 800k tpa) Little systematic exploration to date in the Greenstone belt 18

19 Technical Excellence & Tested Operating Team Remediated Tailings Dam US$40M Development of Arenal UG Mine Backfill Raise Diameter: 3.1m Height: 210m Emergency Exit Diameter: 2m Main Ventilation Raise Diameter: 3.5m Height: 130m Mine Portal Main Ramp Arenal Over 0.5Moz OP & U/G Production Strong Social Track Record Multiple Open Pits 19

20 100km Long Under-Explored Greenstone Belt SANTA TERESA 0.92 g/t Au SOBRESALIENTE 1.04 g/t Au VETA A 3.10 g/t Au VETA REY 1.41 g/t Au OMBU 1.55 g/t Au SAN GREGORIO 2.12 g/t Au VETA SUR 2.04 g/t Au Airmag (AS) base ARENAL 2.12 g/t Au GUILLO 1.09 g/t Au ZAPUCAY 1.61 g/t Au ARGENTINITA 1.33 g/t Au LAURELES 1.10 g/t Au VACA MUERTA 1.31 g/t Au A M O D E S T D I S C O V E R Y W O U L D R E P R E S E N T G R E A T V A L U E G I V E N T H E E X I S T I N G P L A N T O R O S U R H A S O P E R A T E D 2 0 O P E N P I T & 2 U N D E R G R O U N D M I N E S 20

21 Underexplored Granite Greenstone ONLY 39,000M DRILLED OUTSIDE 5 MAIN PRODUCING ZONES OVER 20 YEARS 4 9 2, M O F T O T A L D R I L L I N G I N T H E G R A N I T E G R E E N S T O N E 21

22 Orosur A New Growth Profile Colombia Current drill program aimed at infill drilling and expanding known gold mineralization at the Anzá Project Active mining licence in place Exciting current drilling intersects: 17.75g/t over 5.32m, 5.00g/t Au over 23m and 4.86 g/t Au over 25.0m Mineralized zone extended 75m down dip, 50m up dip and 85m along strike to the north APTA high grade gold mineralized intercepts now covers a strike extent of 1.5km and depth extent of 275m Drilling in new target, Charrascala in next few months, extensive coincident gold in soil and magnetic anomaly Charrascala is approximately 3km north-south by 1km east-west. Uruguay Prominent position in underexplored Greenstone belt Existing and proven CIL plant with spare capacity Proven Developer: Built two underground mines & multiple open pits Effective operators with high standards Substantial cost reductions achieved over past 4 years Uruguay is a proven and safe mining jurisdiction H I G H Q U A L I T Y E X P L O R A T I O N A S S E T S W I T H A P R O V E N O P E R A T O R A N D D E V E L O P E R 22