Corporate Presentation TSX.V: MSR July

Transcription

1 Corporate Presentation TSX.V: MSR July

2 Disclaimer The content of this JULY 2015 Chita Valley Project Presentation the Presentation is intended to be strictly informational has been prepared by Minsud Resources Corp. (the Company ) on the basis of information and sources believed to be reliable. Certain information contained herein is obtained from third party sources which we believe are reliable but cannot be guaranteed as to its accuracy or completeness. The Company reserves the right, at its sole discretion, to modify all or any part of this Presentation without any liability or notification to any person. This Presentation does not constitute, nor should be construed as, an offer or solicitation of an offer for the purchase of any securities of the Company, nor investment advice or an offering memorandum. Readers should review in conjunction with the Presentation all of the Company's public disclosure available under the Company's profile on including its Filing Statement dated April 27, 2011 and the risk factors contained therein, and the technical report on its material properties. The Presentation does not take account the investment objectives, financial situation and particular needs of any particular person and is not intended to be considered by any person as general advice to any class of persons. You should not rely on the Presentation to make any decision, and if so, you shall bear the entire risk of such decision. You should also obtain relevant and specific professional advice to evaluate and assess the information contained in the Presentation The Company makes no representation or warranty, nor assumes any responsibility whatsoever, in respect to the Presentation. In no event shall the Company, its directors, officers, employees, agents or advisors be liable for any damages of any kind arising out of or relating to the use of this Presentation, including, but not limited to, any of loss of income or profits, incidental, special, indirect or consequential or any similar losses or damages, whether or not advised of the possibility of damages, and on any theory of liability, arising out of or in connection with the use of the Presentation. Mr. Howard Coates, Professional Geoscientist, Director of the Company and a geological consultant, is a qualified person as defined by Canadian National Instrument Mr. Coates has read and approved the contents of this presentation. This Presentation must not be disclosed, copied, published, reproduced or distributed in whole or in part at any time without the prior written consent of the Company.

3 Country features - Framework of the business Supportive laws for mining industry and a large positive cycle, brought eight new mines into production generating more than US$ 4.5 billion in exports of Gold, Silver and Cu concentrate. Notably Argentina does not produce cathode Cu metal. The country has huge mineral potential based on its geology and extensive highly prospective regions. Argentina is still in an early stage of development of its mineral resources, but needs to create competitive advantage to develop this potential. Since 2012, metal prices and capital markets turned down into a negative bias characterized by cutting off exploration expenses by juniors and majors. Looking at the future, the good projects will be scarce to replace reserves consumption worldwide. 1

4 Chita Valley Project Mining rights See note 6 to the condensed interim consolidated financial statements. 2

5 Chita Valley Project Minsud s flagship Project highlights Located 35 kms from Bella Vista All season accessible by 4WD 2,800 to 3,500 m elevation Excellent relationship with local communities San Juan government is highly pro-mining Total of 14,050 meters drilled in 174 km 2 NI resource estimation at PSU All season water supply for exploration No active glacier, periglacier or permafrost. 3

6 Chita Valley Project Minsud s flagship Project highlights The project is a large exploration stage Tertiary diatreme volcanic vent/porphyry complex with classic alteration features, widespread porphyry style Cu-Mo-Ag-Au mineralization, and associated epithermal gold and silver-bearing polymetallic veins. Chita Porphyry Sector: includes two halves of the multiphase Chita porphyry. Affected by N-S trending fold and thrust belt along the long axis of the Andean Frontal Cordillera and by NE-SW trending dislocation or transfer faulting along Chita Valley. Chinchillones Complex: A porphyry/volcanic vent/caldera subsidence/resurgent dome setting that includes the multi-stage breccias and mineralized porphyry of Chinchillones Hill, the sedimenthosted veins of Chinchillones South, the caldera margin/porphyry settings of Brechas Ridge and De los Pozos Hill, the mineralized drill hole MSA-08-A porphyry and finally resurgent dome postmineralization porphyry. Other targets of interest are Placetas porphyry, Minas de Pinto and an array of outcropping breccias and veins as well as potential intrusive underlying both Quaternary and Agua Negra formation. Full detail of technical information can be found in our technical presentation and NI filed in SEDAR. 4

7 Corporate Overview - Milestones Achieved Drilling 3,312 mt at the Chita Porphyry South (PSU) and Chita Porphyry North (PNO) NI compliant First Resource Estimation at PSU Systematic multidisciplinary exploration approach by sampling, mapping, channel sampling, and magnetometer search on main identified targets Consolidation of Chita Valley Project Listing on the TSX-V Private placement raising $ 5.5 M

8 Corporate Overview - Upcoming milestones In 2015 Minsud retained P&E Mining Consultants Inc., of Brampton (Toronto), Canada firm to prepare an independent NI Technical Report and Resource Estimation. Now filed at SEDAR, the report also contains full description of the main targets and prospects identified so far at the Chita Valley Project. Chita In Pit Mineral Resource Estimate Statement All Inferred resources at 0.3% Cu Cut-off Tonnes Cu Contained Au Contained Ag Contained Mo Contained Cu Au Ag Mo Mt % M lb g/t K oz g/t M oz % M lb (*) See notes (1),(2), (3) and (4) in press release dated May 29,2015. Also in 2015, the Company contracted Quantec Geophysics of Mendoza, Argentina to execute a state of the art IP/Resistivity survey. This new step in the systematic exploration approach has generated many high quality targets that are ready for drilling. Minsud is prepared to continue outlining the resource at the oxidation zone that is open in all directions, even at depth, now supported by geophysics search in a widen area that largely exceeds recently drilled limits. 6

9 IP resistivity survey targets 7

10 Chita Valley Project Upcoming Milestones Proposed drilling program: Target Meters Holes Av. Deep Target PSU 3, Continue outlining enrichment zone opened in all directions 2 of these holes to test also the epithermal structure already intercepted by drill hole 24 PNO hole to test possible hypogene mineralization. 1 hole to test an area of feeder/magmatic and hydrothermal breccias an also veins with potential for Au-Ag 4, Chinch 1, holes to test Magmatic - Hydrotermal Breccia (Au+Ag+Cu+Pb+ Zn) and porphyries 1 hole to test Cu Hypogene Porphyry 5,290 22

11 Management s Vision The vision of the management is to develop a Cu deposit with a low stripping ratio, potentially minable by open pit, processing by heap leaching solvent extraction and producing Cu cathode by electro-winning ( SE-EW ). The investments highlights of a deposit of this kind are: low Capex and Opex, low technical risk and relatively short term construction period. Currently Argentina does not produce copper metal, only concentrate, and is reliant on Chilean imports of the metal of US$ million annually to satisfy its demand. The Chita Valley project has also an strong potential that goes well beyond the oxidation zone at the Chita Porphyry. Management is highly supportive of testing the Chinchillones target particularly the porphyry and magmatic and hydrothermal breccias. The properties contain an array of veins and breccias as well as potential underlying intrusive that represent an enormous blue sky for future target development. 9

12 Business Opportunity. Minsud management believes that due to poor market conditions, the Company s market capitalization does not recognize the significant progresses made so far on exploring the Chita Valley Project. Minsud is clearly an undervalued asset. Existing investor has contributed capital at an average price of C$ 0.20 per share. Certain long term investors have taken the risk of initial and a more extensive drilling as well as financing the First Resource Estimation and IP/ Resistivity geophysics, by contribution C$ 0,10 per share. Searching a deposit after an initial resource estimation improves the Risk Reward relation and gives momentum to an strategic investment with large potential for value creation. Long term investor believes in: (i) Medium and long term future for mining development in Argentina; (ii) Better investment climate for doing business after elections; (iii) The great potential of the Chita Valley Project; and (iv) the management ability to continue exploring and raising capital, even during difficult times. 10

13 Capital Structure Capital structure July 3, 2015 TSX.V MSR Share price Cad$ 0.06 Market capitalization Cad$ 4.5M Shares issued 74.1M Options issued & outstanding 6.4M Warrants issued & outstanding 34.5M Fully diluted 115 M Top shareholders Shares % Cía. de Tierras Sud Argentino S.A. 20,733, % Panedile S.A.I.C.F.e I. 7,217, % Carlos A. Adamo 5,072, % Directors & officers 7,091, % TOTAL 40,115, %

14 Management Seasoned Management and Board of Directors with solid technical and business background in Canada and Argentina, highly committed to build up a successful exploration company in the medium to long term Carlos A. Massa - President & Chief Executive Officer, Mr. Massa is endowed with entrepreneurial spirit and 25 years of experience in doing business in Argentina. He also guided Minsud to listing on the TSX-V and riding out difficult times. Howard J. Coates Exploration Vice President & Director, an economic geologist with 43 years of diverse experience worldwide working for major mining companies and as a consultant. He implemented a successful systematic exploration methodology in Minsud s principal properties. Paul F. Andersen - Chief Financial Officer, is a Certified Public Accountant and a Chartered Accountant with 18 years of experience covering senior management positions in private and public companies. He has been highly supportive in adapting Minsud to Canadian regulations. 12

15 Players in Argentina Province Operative Mines Mines under development Advanced projects Catamarca Bajo la Alumbrera (Glencore Xstrata) Agua Rica ( Xstrata) Farallon Negro (YMAD) San Juan Veladero (Barrick) Pascua - Lama (Barrick) (1) Los Azules (McEwen Minerals) Gualcamayo (Yamana) Pachón (Xstrata) Altar (Stillwater) Casposo (Troy Resources) Jose Maria (NGEX) Filo del Sol (NGEX) Santa Cruz Cerro Vanguardia (Anglogold) Don Nicolas (Ciminas) Cerro Puntudo ( Yamana) San José (Hochschild- McEwen) Cerro Moro (Yamana) Joaquin (Coeur D alene) Mananthial Espejo (Pan American Silver) El Tranquilo (Patagonia Gold) Cerro Negro (Goldcorp) La Josefina (Hunt Mining) Lomada de Leiva (Patagonia Gold) Jujuy Aguilar (Glencore - Xstrata) Pirquitas (Silver Standard) Salta Lindero (Goldrock Minerals) El Quevar (Golden Minerals) Rio Grande (Regulus Resources) Chubut Navidad (Pan American Silver) Cordon de Esquel (Yamana) Río Negro Calcatreu (Pan American Silver) (1) This project was recently put on halt due to environmental issues that came up on the chilean side. 13

16 M&A deals U$S 20,0 million. May 6 th, Troy Resources acquires Casposo, gold silver project, San Juan $ 626 million. October 30, Pan American Silver acquires Aquiline (Navidad Chubut and Calcatreu- Rio Negro projects) $ 3,6 billion. September 2 nd, Goldcorp acquired Andean Resources (Cerro Negro Santa Cruz) U$S 487,1 million. July 11, Stillwater acquires Peregrine Metals. (Altar project - San Juan) U$S 110 million. September 1, Xstrata Copper, Goldcorp and Yamana closed a Fouryear Option Agreement on Agua Rica. U$S 414 million. June 18, Yamana acquires Extorre Gold Mines Ltd (Cerro Moro Santa Cruz). U$S 60 million. December 11, Mirasol sold the 49% interest in Joaquin Silver-Gold project (100 km north from La Rosita) to Coeur d'alene Mines Corporation, US$30 million in cash and US$30 million in shares. U$S 80 million. September, An industrial group based in Tierra del Fuego provided financing to put Don Nicolás (IRL) into production. U$S 15 million. October A large Argentine investor Mr. Eduardo Elstain provided U$S 15 million to Gold Rock Resources in order to put Lindero project (Salta) under development. U$S 470 million, June 17, 2014 First Quantum acquires Lumina Copper Taca Taca project Salta Argentina. 14

17 NORTH AMERICA Headquarters Minsud Resources Corp. 340 Richmond Street West Toronto, Ontario, Canada M5V 1X2 Phone / Fax : +1 (416) SOUTH AMERICA Headquarters Minera Sud Argentina S.A. Esmeralda 684 piso 13 - (CP. 1007) Ciudad Autónoma de Buenos Aires República Argentina Phone / Fax : + 54 (11)