RESTARTING THE DELGERKHAN FLUORSPAR MINE IN MONGOLIA

Transcription

1 RESTARTING THE DELGERKHAN FLUORSPAR MINE IN MONGOLIA October 25, 2013

2 Disclaimer This presentation has been prepared by Prima Fluorspar Corp. ( Prima ) using its best efforts to realistically and factually present the information contained. Subjective opinion, dependence on factors outside Prima s control and outside information sources unavoidably dictate that Prima cannot warrant the information contained to be exhaustive, complete or sufficient. In addition, many factors can significantly alter the results intended by Prima, rendering the results or outcomes described unattainable or substantially altered. Therefore, interested users should conduct their own assessment and consult with their own professional advisors prior to making any investment decisions. This presentation does not constitute a prospectus or public offering for financing, and no guarantees are made or implied with regard to the success of Prima s proposed ventures. Interested investors are advised to seek advice from their investment advisors. The presentation is being disclosed to the user for user s discussion, review, and/or evaluation only. Historical Data Regarding the Delgerkhan Fluorspar Mine A technical report prepared by Micromine Proprietary Limited ( Micromine ) was completed in August No additional work has been done on the Berkh Uul properties since the completion of the report. We therefore consider that the report to be very reliable and very relevant. However, as the report was not prepared for Prima, it is required under NI to be updated and until then, we are not treating the historical estimate as current mineral resources or mineral reserves. 2

3 About Prima Prima is positioned to be a major global fluorspar producer and supplier through development and acquisition of leading fluorspar assets 3

4 Pending Transaction between Prima and Firebird to Acquire Delgerkhan Mine AGREEMENTS Prima news release (September 3, 2013) announced that on August 30, 2013 Prima Fluorspar Corp. ( Prima ) entered into a non-binding LOI with Firebird Management LLC ( Firebird ) to purchase Firebird s 99.8% ownership stake in Berkh Uul JSC ( Berkh Uul ), which owns the Delgerkhan high grade, large resource fluorspar deposit ( Delgerkhan ) in the Khentii Province of Mongolia. The arms-length transaction will be structured as a RTO. A share exchange agreement between Prima and Firebird is in the final stages of negotiation. CLOSING OF TRANSACTION Closing of the transaction is conditional upon, amongst other things, Prima s receipt of shareholder approval and TSX Stock Exchange approval. It is expected that the transaction will close in early

5 Why Mongolia?

6 Firebird Firebird in Mongolia in Mongolia Firebird Management LLC Among top performing funds globally Firebird Fund launched 1994 Net cumulative return: 4,543% Firebird New Russia Fund launched 1996 Net cumulative return: 2,357% Extensive knowledge and experience in Mongolia 7 years working in country 40-person business development office in Ulaan Baatar Owns and operates Sharyn Gol coal mine Berkh Uul JSC Mongolian fluorspar resource company Owned by Firebird Management LLC (99.8%) Primary asset: Delgerkhaan fluorspar mine 6

7 Mongolia s Commitment to Resource Sector New Investment Law Approved October 3, 2013 by 83% of the Parliament of Mongolia Effective November 1, 2013 Eliminates restrictions of the existing law Reopens the country to foreign investment Tax stabilization for corporate income tax, customs duty, VAT, and mining royalties for 5-15 years Requires 67% majority to change New Securities Law Approved during the 2013 Spring session Effective January 1, 2013 Creates stable and attractive environment for investment Develops Mongolia s capital markets 7

8 Fluorspar Rich Mongolia Mongolian Fluorite Regions* 22Mt of contained CaF known fluorite deposits Over 700 identified fluorite prospects *Source: Roskill Report 2013 Mongolia s mining sector* 80% of the country s exports 50% of government revenue *Source: National Statistical Office of Mongolia 8

9 Delgerkhan Fluorspar Mine Restarting an Important Fluorspar Mine in Mongolia 9

10 Delgerkhan Fluorspar Mine Historical Resource* Technical report: August, 2012* Indicated: 33.7% CaF 2 Inferred: 33.0% CaF 2 Room to expand license Regional Setting: many additional mineralized veins High Quality Fluorspar Product Acceptable to all users Extremely low sulphide content less than 0.01% Low phosphorus approximately 50 ppm *Please refer to Disclaimer on page 2 10

11 Mine History Exploration Mining Delgerkhan Delgerkhan Fluorspar Mine Mine 439 core holes done by Soviet Union (6 by Firebird) 88,000m diamond drilling Trenching and surface pits Peak Production of 170,000 t/annum (late 80 s) : 540,000 tonnes CaF 2 produced. Identified veins adjacent to license boundary with historic resources Many excellent exploration targets offer near term potential Location and Infrastructure Access by good gravel road 80km from Undurkhaan city, 13 km from Berkh City Rail spur at Baganuur 270km away History and Infrastructure Berkh City kilowatt electrical power connected to the central grid 11

12 Delgerkhan Mine Satellite View Historical Resource* Technical report: August, 2012* Indicated: 33.7% CaF2 Inferred: 33.0% CaF2 Room to expand license Regional setting: many additional mineralized veins *Please refer 12 to Disclaimer on page 2

13 View of Underground Mineralization 4 levels 2 fully developed, 2 partial Over 10km of drifts and tunnels 2 Shafts Shaft 1: 200m Shaft 2: 150m 2013 Infrastructure Replacement Costs: $ million Shafts and underground development 439 core holes, 88,000m drilled 13

14 Longitudinal Section Longitudinal View of Vein 3/7 Ore Body 3-7 * Existing Historic Russian Data Extremely detailed and comprehensive SRK Consulting completing a technical report to document the Russian work *Please refer 14 to Disclaimer on page 2

15 Re-commissioning the Delgerhkan Mine Estimated 18 month construction period: De-watering Estimated 60 days to de-water the existing workings to level 2 (100m depth) Remediation of the existing shafts New equipment, piping and wiring Full replacement of hoists, cables and dumping/receiving systems Reconditioning of underground workings Ground support, scaling, piping and tracks will be 100% replaced Ventilation and heating systems installed Mining Method: Shrinkage stoping Mechanized multi-car tramming Air operated chutes installed directly into drifts Construction of flotation facility to produce an acid grade product 15

16 Delgerkhan Moving Fluorspar Forward Mine Near Term Potential Identified veins adjacent to current mining license Excellent exploration targets Toll processing Potential acquisition of existing fluorspar mines Management in Place CEO, Mendsaikhan Bold Extensive experience in fluorspar and Mongolia. Previously with MONROS. COO, Jimmie Wilde Over 35 years experience in open pit and underground mining. Seasoned mining executive. Previously with Rio Tinto. CFO, James Flores Over 30 years experience in financial services. MBA, Finance from Wharton School, University of Pennsylvania. Previously CFO Columbia Energy Resources metallurgical coal mining firm 16

17 Thank you for your attention