The REKO DIQ project

Transcription

1 The REKO DIQ project

2 REKO DIQ - LANDSAT IMAGE

3 THE REKO DIQ PROJECT Drill tested to Resource status Western Porphyries 33 Drill Holes Inferred Resource 0.6% Cu and 0.4g/t Au at 0.5% Cu cut-off 0 1km 7 Drill Holes Bukit Pashir 1 Drill Hole 1 Drill Hole 27 2 Drill Holes Camp H4 Resource 10 1 Drill Hole 2 4 Drill Holes 46 Drill Holes 3 Drill Holes 1 Drill Hole Drill Holes Koh I Dalil Parrah Koh drillholes each - more work required New targets - not yet drill tested North Koh I Dalil Possible second supergene resource) Sam Koh

4 H4 PROJECT - LEACHED CAP The light-coloured material in the middle ground is the H4 Leached Cap

5 H4 - DRILL HOLE LOCATION PLAN

6 H4 - CROSS SECTION

7 H4 - LONG SECTION

8 H4 pre-feasibility study Indicated Resource: 0.73% Cu, cut-off 0.3% Cu Mining, Metallurgy, Capital and Operating Costs Probable Reserve: % Cu, cut-off 0.3% Cu SX-EW bacterial heap leach operation: 5-8m tonnes ore pa for 40,000 t copper metal pa Strip ratio LOM - 1:1 Cash cost of production - 48c per pound copper NPV (10) = US$73 million Internal Rate of Return = 21% (ungeared) Average annual after tax cashflow (ungeared) = US$30m Copper price assumption: 90c per pound, LOM Upside: capital costs, recoveries, grade, ore extensions

9 THE REKO DIQ PROJECT Western 3 Porphyries Drill tested to Resource status 1-7 drillholes each - more work required New targets - not yet drill tested 33 Drill Holes Inferred Resource 0.6% Cu and 0.4g/t Au at 0.5% Cu cut-off 0 1km 7 Drill Holes Drill Hole 1 Drill Hole 27 2 Drill Holes Camp 10 1 Drill Hole 2 4 Drill Holes H4 (Supergene) 46 Drill Holes 3 Drill Holes 1 Drill Hole Drill Holes Koh I Dalil Parrah Koh North Koh I Dalil Possible second supergene resource) Sam Koh

10 WESTERN PORPHYRIES - plan view

11 WESTERN PORPHYRIES - cross SECTION

12 WESTERN PORPHYRIES

13 WESTERN PORPHYRIES Inferred Resource: 730 million 0.6% copper and 0.4g/t gold Metal Contained in Inferred Resource: 4.4 million tonnes copper and 9 million ounces gold Estimated Global Resource for Reko Diq System: more than Three Billion Tonnes of mineralised material, containing possibly 18 million tonnes copper metal and 35 million ounces of gold (based only on known mineralised porphyry systems)

14 FINANCING OFFSHORE PROJECTS WHY DO IT? WHY IS IT SO HARD? SOURCES OF FINANCE THE ETHICAL DIMENSION THE REWARDS

15 The kalgoorlie formula Share Price = f[1/(distance from Kalgoorlie) 2 ]

16 YILGARN CRATON Gold - in lots of small deposits Nickel - in lots of small deposits

17 The Classic Australian Junior is a gold or nickel play in Western Australia Australian investors have made money in Australia - and seen it lost outside Australia Australia is a great mining country - local punters want their speculative funds spent in country For a brief period in the 90 s the ASX funded global exploration - that is now over.

18 There is still money available for Australian mining exploration and development (Mincor raised $29m in 3 months to buy the Miitel Nickel Mine) But significant capital is not available, from the Australian Market, for offshore mining development.

19 I wasn t going to touch Mincor - I thought you were just going to put all your money into Pakistan I think you really need to make people realise you are not going to fund Pakistan out of your Miitel cashflows Actual quotes: two Australian stockbrokers

20 You should keep Reko Diq in Mincor, add the copper development to your existing nickel production, size is so important these days, look to becoming a mid-cap international base metal company Actual quote: London Stockbroker Just get out there and drill the f.. thing! Actual quote: Shareholder

21 early reko diq financing Modest seed capital raising, Oct 2000 (A$1.6 million, A$400,000 from Mincor, the rest from Australian, English and Pakistani investors, and Mincor directors) Spent A$700,000 turning vaguely defined copper zone at H4 into a Probable Reserve. TCC - 52 million issued shares, 24 million options, 14 shareholders Next step - Offshore Listing to raise US$7 million

22 FINANCING OFFSHORE PROJECTS WHY DO IT? WHY IS IT SO HARD? SOURCES OF FINANCE THE ETHICAL DIMENSION THE REWARDS

23 Sources of capital World Bank (Mining Division of the International Finance Corporation) Asian Development Bank Japanese metal houses Commonwealth Development Corporation Major Mining Companies Private Equity - niche markets (Pakistani capital) Pre-feasibility = Equity

24 FINANCING OFFSHORE PROJECTS WHY DO IT? WHY IS IT SO HARD? SOURCES OF FINANCE THE ETHICAL DIMENSION THE REWARDS

25 The ethical dimension THE NATURAL ENVIRONMENT POVERTY ALLEVIATION

26 FINANCING OFFSHORE PROJECTS WHY DO IT? WHY IS IT SO HARD? SOURCES OF FINANCE THE ETHICAL DIMENSION THE REWARDS

27 THE REWARDS The Witwatersrand Broken Hill & Mount Isa The Andean Copper Belt The Sudbury Nickel District The Yilgarn Craton The Bushveld Complex The Tethyan Belt The Zambian Copper Belt The East and West African Goldfields

28 H4 Value Curve Value Indicated Resource List on AIM of LSE Pre-Resource Seed Financing Completed Bankable Feasibility Study List on Main Board of LSE Risk Discovery Exploration Stages - Discovery to Production

29 Western porphyries Value Curve Western Porphyries Project H4 Project Value

30 Total Reko Diq Value Curve Total Reko Diq Resource Western Porphyries Project H4 Project

31 Mincor shareholders IF TCC SUCCESSFULLY LISTS ON AN OFFSHORE MARKET: Distribution of Mincor s shares in TCC, to Mincor s shareholders Mincor will not create a pyramid holding structure Shareholders retain exposure through their TCC shares to on-going development of a major base metal play.

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