Presentation 1: Project Generator JV Business Model Risk management for exploration success

Transcription

1 Presentation 1: Project Generator JV Business Model Risk management for exploration success Presentation 2 : Gorbea Gold Belt & Rubi Copper projects New targets in a mature terrane Chile Explore Congress Speaker: Stephen Nano President & CEO August 2014 TSX.V: MRZ

2 MIRASOL RESOURCES 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 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 , has reviewed and approved the scientific and technical information in this presentation. 2

3 Project Generator JV Business Model Risk management for exploration success Project Generator Business Model - How does it work? Does it deliver? Project Generator technical example of portfolio building Santa Cruz Argentina

4 Project Generator Joint Venture Business Model: Elements Spread risk across multiple projects Improving potential for shareholder returns Lower burn rate by accessing JV partner capital Conserving share 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? 4

5 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. Start of Bull Market 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 5

6 Mirasol Market Information July 2014 TSX:V IPO yrs - Conservative capital structure Well funded Approx. $29.8M CAD (Cash & Shares) 2 Silver discoveries Joaquin & Virginia Santa Cruz Argentina December 2012 sold 49% interest in Joaquin for US$30 million & 1.3 million Coeur shares (at time transaction approx. value of US$60 million) High-calibre project portfolio: 33 projects Chile & Argentina 10 drill-ready Rubi JV First Quantum Minerals copper-gold porphyry Chile Five Headline Projects large mineral system / multiple targets / drill-ready Trading symbol: Market capitalization (CAD): (July 1 st 2014) TSX.V: MRZ $53.1 million Shares issued and outstanding: 44,245,661 Warrants: Brokers compensation: N/A 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 1 st 2014) $29.8 million 6

7 Increasing Value $ Generative concept Discovery to Development Risk Management & Value Creation Understanding our Business Driver Mirasol Resources JV Business Model Generative target Project geochem anomaly Project drill targets Project drill intersections Project resource Project Feasibility Mine development Mine commissioning Operating mine The Mirasol JV model The Mirasol model is to de-risk projects to drill-ready status before JV Improves the discovery rate Achieves stronger JV deal terms Attracts high-calibre JV partners Counterbalanced by additional spend to achieve drill-ready status 1000/1 100/1 10/1 1 Decreasing risk ratio 7

8 Mirasol Project Generator: Conserve Capital Structure Reducing dilution / 4 projects drilled under JV 15,500m to 2008 IPO Joaquin & Virginia discoveries reported drill results Increasing Capital raised 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. 1/10 th pre-ipo raisings December 2012 Sale of 49% interest in Joaquin for US$30 million & 1.3 million Coeur mining shares Since December 2012 Exploring with minimal share dilution Joaquin Sale Currently exploring for discovery with minimal shareholder dilution with funds from Joaquin sale WEIGHTED AVERAGE SHARE PRICE $CAD (INCLUDING EXERCISED WARRANTS) 8

9 Project Generator JV Business Model Risk management for exploration success Project Generator Business Model - How does it work? Does it deliver? Project Generator technical example of portfolio building

10 Long Term Focus on Two Highly Prospective Terranes PERU BOLIVIA Nth CHILE Tertiary HSE & PCD program PARAGUAY BRAZIL Exploration Advantage Leveraging off in-house discovery history / terrane knowledge Building reiterative knowledge base On-ground operational advantage Santiago Mendoza Bueno Aires URUGUAY Compatibility with exploration technologies Open ground fits project generation model Two countries: diversified sovereign risk SANTA CRUZ Jurassic LSE & ISE program Commodity & terrane branding Improved success rate & operational efficiencies Kilometres 10

11 Targeting Underexplored Terrane 2003 : Santa Cruz Jurassic Epithermal Province Lejano San Jose Cerro Negro Highly prospective, underexplored epithermal Au/Ag terrane 2003, 50% of prospective stratigraphy pegged by competitors Manchuria Cerro Vanguardia Martha Mine Manantial Espejo 2003 Tenement Aster Scenes Jurassic Chon Aike Aster Alteration Volcanics Advanced Projects Mine/Resource Mirasol Advantage In-house track record for discovery in province (Cerro Negro / Don Nicolas) Acquisition of regional historic geochemical database Exploration advantage with new technology- ASTER mineral mapping Processed & targeted 31 ASTER Satellite scenes Systematic ground follow-up 11

12 Santa Cruz Jurassic Epithermal Province 2012: Emerging Mining Region San Jose By 2012 Mirasol had: Cerro Negro Secured 25 projects: ~15% of outcropping permissive stratigraphy with epithermal mineralization Virginia Don Nicholas Calandrias Curva Evolved exploration strategy: ASTER outcropping systems Cap Oeste Joaquin Pinguino Cerro Vanguardia Cerro Morro Complex targeting with in-house geophysics covered systems Martha Mine Manantial Espejo Claudia Two Silver Discoveries: Joaquin Virginia 6 high calibre drill-ready projects for JV or in-house drilling Mirasol Tenements 2003 Tenement Aster Scenes Aster Alteration Jurassic Chon Aike Volcanics Mirasol Drill Projects Mine/Resource Headline Projects: Claudia, La Curva, Virginia 12

13 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 AngloGold Ashanti Vanguardia Vein Field Cerro Vanguardia 8.1 Moz Au & 117 Moz Ag Laguna Blanca Mirasol Claudia Cateo Ha Ailen Rio Seco New drill targets defined LEGEND Gold Equilivent Au + Ag / 55 (g/t) Curahue South Ciline New prospect R T P G r o u n d M a g n e t i c s Low High Magnetic Grid 13

14 La Curva Gold & Silver Santa Cruz Argentina Strategic project in new gold district New District / Four Prospects / No Drilling 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 Mirasol La Curva Ha 14

15 Why Mirasol uses the Joint Venture Model Generator JV Model Can delivered value to investors Access to exploration capital with minimum share dilution Shares risk & geological uncertainty Accelerate discovery through multiple, parallel JVs Focus Mirasol s human capital on what we do best (project generation) Access to expertise & sources of funds for later development stages Mirasol Resources Well funded Conservative share structure 2 discoveries 5 headline projects Strong JV with First Quantum Minerals at Rubi Mirasol is primed for the next discovery 15

16 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). 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. Start of Bull Market 16

17 Project Generator JV Business Model Risk management for exploration success Gorbea Gold Belt & Rubi Copper projects New targets in a mature terrane Chile Explore Congress Speaker: Stephen Nano President & CEO August 2014 TSX.V: MRZ