ARC Conference November, 2012

Transcription

1 ARC Conference November, 2012

2 Disclaimer This presentation and any oral presentation accompanying it has been prepared by Latin Resources Ltd ( LRS or the Company ). It should not be considered as an offer or invitation to subscribe for or purchase any securities in the Company or as an inducement to make an offer or invitation with respect to those securities. No agreement to subscribe for securities in the Company will be entered into on the basis of this presentation. This presentation contains forecasts and forward looking information. Such forecasts, projections and information are not a guarantee of future performance, involve unknown risks and uncertainties. Actual results and developments will almost certainly differ materially from those expressed or implied. LRS has not audited or investigated the accuracy or completeness of the information, statements and opinions contained in this presentation. Accordingly, to the maximum extent permitted by applicable laws, LRS makes no representation and can give no assurance, guarantee or warranty, express or implied, as to, and take no responsibility and assume no liability for, the authenticity, validity, accuracy, suitability or completeness of, or any errors in or omission, from any information, statement or opinion contained in this presentation. You should not act or refrain from acting in reliance on this presentation material. This overview of LRS does not purport to be all inclusive or to contain all information which its recipients may require in order to make an informed assessment of the Company s prospects. You should conduct your own investigation and perform your own analysis in order to satisfy yourself as to the accuracy and completeness of the information, statements and opinions contained in this presentation before making any investment decision.

3 Latin Resources Limited (ASX Code: LRS) Mineral exploration and development company based in mineral rich Peru with a focus on Iron & Mineral Sands Over 4 years of exploration work and $12m spent to date Listed on ASX September 2010 Cape Lambert Australia Second largest shareholder RMB Resources (FirstRand Bank) acquired 5% in May Junefield Chinese Group acquired 16.8% for $8.4m (28c) Now hold % Strong Management team

4 Peru 2011Mineral Production Rank 1 World Latin America 2 2 SILVER 1 Mineral World Latin America Silver 1 1 Copper 2 2 Zinc 2 1 COPPER 1 4 ZINC Lead 4 1 Gold 6 1 LEAD GOLD Iron 17 5 (Source: Peruvian Ministry of Energy and Mines, Annual Mining Report 2010; US Geological Survey, The Silver Institute, Gold Fields Mineral Services, International Copper Study Group, International Lead and Zinc Study Group, International Tin Research Institute, International Molybdenum Association, Intituto Latinoamericano del Hierro y Acero) IRON

5 August 2011 September 2011 March 2012 December 2011 February 2011 September 2012 Latin Resources Limited Achievements since listing on ASX Acquired a major and potential world class mineral sands project at Guadalupito Completed Initial JORC Resource at Guadalupito (Snowdens) Completed Scoping Study Guadalupito ASX September 2010 Completed exploratory drilling program at Ilo Appointed Ausenco for Guadalupito Scoping Study Signed $52m investment deal with Junefield Group

6 Project Portfolio & Strategy Guadalupito Iron & Mineral Sands Iron, Zircon, Rutile, Ilmenite, Gold, Andalusite Close to Port & Infrastructure Focus on Flagship Project Guadalupito Ilo & Mariela Projects Iron, Copper, Gold Develop strong community relationships Ilo Projects situated in area surrounded by major International Resource Sector Players

7 Latin Resources Projects Latin Resources Guadalupito Project ILO PROPERTIES MARIELA ILO Latin Resources Ilo & Mariela Projects

8 Guadalupito Iron & Mineral Sands Project Total holding of over 16,000 hectares The port town of Chimbote is 25kms South Guadalupito Project SiderPeru Steel works (Gerdau Group) is located in Chimbote Close to infrastructure - Port & Hwy Chimbote Port

9 Guadalupito Iron & Mineral Sands Project Conceptual exploration target of over 2 Billion tones of mineralized sediments* Magnetite with a low Titanium Gold grades of potential economic significance have been encountered Discrete liberated mineral grains of recoverable size of Zircon, Rutile,Ilmenite and Andalusite have been identified. *On 9 and 10 May 2011 Latin announced a conceptual exploration target of 2 billion tons of mineralised sediment at Guadalupito (within a range billion tones). This conceptual exploration target was based on an estimated area of 6000 hectares of prospective sediments generated from detailed field mapping, a mineralised depth of 20 m as suggested by initial test drilling and an estimated S.G. of Work conducted at Guadalupito to date highlights good potential for economic content of: Magnetite (3.5% %),Andalusite (5.3% 16.5%),Gold (6-556 mg/m3) and potentially economic content of: Monazite (REE) (trace 1.7%),Zircon (trace 1.1%),Ilmenite (trace 2.8%),Wolframite (trace). The potential quantity and grade is conceptual in nature, and there has been insufficient exploration to define a Mineral Resource and it is uncertain if further exploration will result in the determination of a Mineral Resource.

10 JORC Inferred Resource (Snowdens) Tres Chosas JORC Resource % Heavy Mineral Heldmaier JORC Resource 5.5 % Heavy Mineral Total JORC inferred Resource of 4.5% Heavy Mineral 1 Billion tones JORC inferred Resource planned for Q1 2013

11 Scoping Study Summary Scoping Study is based on a dry mining then dredging operation targeting Magnetite, Andalusite, Zircon,Rutile,IImenite and Gold The study uses Snowdens Proof of Concept Mining Study based on conceptual model of 2.7 Billion tonnes (ROM) Mining would be carried out in 2 stages,second stage commencing in Year 4 1 st Stage Dry mining and 2 nd Stage would use 2 Bucket line dredges capable of 1875 t/h of effective lift Heavy mineral pumped to a Mineral Separation Plant (MSP) to produce concentrates of minerals

12 REJECTS Stage 1 Concept 10 mtpa Dry surface Magnetite Mining Operation DESLIMING STAGE 1 CONCEPTUAL FLOWSHEET SCREENING SPIRAL CIRCUIT Mining CLAY FINES SAND TAILS HMC STOCKPILE MINING VOID WCP THICKENER CONCENTRATE NON-MAGNETICS NON-MAG STOCKPILE NON-MAG SPIRALS SUPER-CON LIMS MAGNETIC SEPARATION MSP GOLD CON WET TABLE MAGNETITE STOCKPILE GOLD CONCENTRATE PORT

13 non-magnetics rejects rejects Concept - 25 mtpa Dredging Mining Operation DREDGE MINING WCP screening desliming spiral circuit mining void clay fines sand tails rejects HMC stockpile MSP conductors concentrate nonmagnetics Andalusite Non-mag conductor magnetic separation magnetics Magnetic TIO2 product Zircon product Lims non-mags HT separation nonconductors Gold concentrade non-magnetic spiral circuit super-con Lims magnetic separation Wet Zircon spiral circuit Non-magnetic non-conductors Magnetic separation Gold con wet table Magnetite stockpile PORT ship loader

14 Latin Resources Ilo Projects ILO PROPERTIES MARIELA ILO Latin Resources Ilo & Mariela Projects

15 Ilo District 2008 Latin Resources Ilo Port Southern Copper Latin Resources Chile

16 Ilo 2012 Latin resources controls 100,000 HA Metmnco Mariela Southern Copper BHP Ilo Norte Anaconda (Antofagasta) Ilo Port Chile

17 Ilo Norte Drilling

18 Drill results Ilo Norte Iron and copper mineralisation in all 8 initial exploratory holes 120m from 0.13% Cu, 20.38% Fe in hole IN-02 Gold anomalism coincident with Copper mineralisation 14m from 0.55% Cu, 0.13g/t Au in hole IN-02 and 22m from 0.25% Cu, 0.09g/t Au in hole IN-03 Anomalous Zinc values Mineralized unit more than 250m thick New drilling planned 1 st Quarter 2013

19 250,000 me 252,000 me 254,000 me Ilo Norte new drilling program 8,076,000 mn IP Lines 8,074,000 mn IN-03 IN-05 IN-01 IN-06 IN-04 IN-02 IN-07 IN kilometres Drill holes 8,072,000 mn

20 Mariela - Joint Venture Junefield Group Large anomaly Excellent Iron Oxide Copper Gold (IOCG) District Close to Port and Highways Junefield paid $9m in cash to Latin Resources for major stake Junefield Group to spend $35m to BFS for 70% LRS 30% free carry during this phase

21 Mariela Drill Program (12,000m)

22 Mariela Drilling May 1 rig

23 Mariela Drilling Results First hole: 37.2% Fe, from 542.6m, including 55.7% Fe, low P & S Second Hole: Multiple Fe mineralised zones between 187m to 820m from 0.4m to at least 21.9m thick with grades ranging from 20% to 52% Fe incomplete results Copper Assays 18 samples 0.01% to 0.46% Cu

24 Mariela Drill Program October 6 Rigs

25 Strategy and Goals for 2013/14 Expand JORC inferred resource at Guadalupito 2013 Commence mining planning at Guadalupito Complete 12,000m drilling program at Mariela Commence detailed exploration and drilling program at Ilo Concessions Increase shareholder value by achieving sound fundamental milestones

26 LRS Capital Structure Shareholding Shares Options Total Shares 189million 62 million Market $30 million March 2013 Junefield Group major Shareholder with 19.8% Cape Lambert shareholding 14% Top 30 Shareholders represent 70% of shareholding If options in Money in March 2013 will raise 30c $1.5 m cash Sept 2012

27 Thank you and Questions Competent Person Statement The information in this report that relates to Geological and Geochemical Data, Exploration Results, Conceptual Exploration Target, Mineral Resources, or Ore Reserves is based on information compiled by Mr Andrew Bristow, a full time employee of Latin Resources Limited s Peruvian subsidiary. Mr. Bristow is a member of the Australian Institute of Geoscientists and has sufficient experience which is relevant to the style of mineralization and the type of deposit under consideration to qualify as a Competent Person as defined in the December 2004 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code). Mr. Bristow consents to the inclusion in this report of the matters based on his information in the form and context in which they appear. *On 9 and 10 May 2011 Latin announced a conceptual exploration target of 2 billion tons of mineralised sediment at Guadalupito (within a range billion tones). This conceptual exploration target was based on an estimated area of 6000 hectares of prospective sediments generated from detailed field mapping, a mineralised depth of 20 m as suggested by initial test drilling and an estimated S.G. of Work conducted at Guadalupito to date highlights good potential for economic content of: Magnetite (3.5% %), Andalusite (5.3% 16.5%),Gold (6-556 mg/m3) and potentially economic content of: Monazite (REE) (trace 1.7%),Zircon (trace 1.1%), Ilmenite (trace 2.8%), Wolframite (trace). The potential quantity and grade is conceptual in nature, and there has been insufficient exploration to define a Mineral Resource and it is uncertain if further exploration will result in the determination of a Mineral Resource.