Investor Presentation July 2012

Transcription

1 Investor Presentation July

2 Forward Looking Statements & Disclaimer Information Not A Recommendation The views expressed in this Information Memorandum are based on information derived from Xanadu's own internal sources and from publicly available sources that have not been independently verified by Xanadu. No representation, warranty or undertaking, express or implied, is made or given by Xanadu or any of its officers or employees as to the fairness, accuracy, completeness or reliability of that information. This Information Memorandum should not be relied upon as a recommendation or forecast by Xanadu. Any recipient of this Information Memorandum is responsible for conducting their own due diligence and other enquiries as to the information provided herein. Recipients of this Information Memorandum should seek and rely upon their own legal, tax, financial and accounting advice. Any decision to rely on the information contained in this Information Memorandum is the sole responsibility of the recipient of this document and Xanadu will not be responsible for any loss incurred by the recipient as a result of any actions taken by them relying on the information in this Information Memorandum. Explorations targets are conceptual in nature there not having been sufficient exploration to define a Mineral Resource, and that it is uncertain if further exploration will result in the determination of a Mineral Resource. 2

3 Corporate Overview XMM = S&P/ASX 300 Metals and Mining Index Share Price / volume History (A$; millions) 52 week low 52 week high 30 Day VWAP Date 27-Jun Jul-11 6-Jul-12 Share Price $0.21 Key Statistics (A$) Ordinary Shares on issue 6-Jul m Options 6-Jul-12 26m Share Price 6-Jul-12 $0.23 Market Capitalisation 6-Jul-12 46m Cash 6-Jul-12 15m Enterprise Value 6-Jul-12 31m Substantial Share holders Name No. Shares Held % of Shares on Issue Straits Resources 24.6m 12.4% Noble Energy 17.9m 9.0% Eagle Securities 14.3m 7.2% XMM = S&P/ASX 300 Metals and Mining Index Directors Interest Directors collectively have 20% of securities on issue

4 Business Strategy Xanadu Mines Ltd (ASX:XAM) Exploration strategy to target copper/gold systems with large scale potential Attract attention and maintain dialogue with global majors Existing thermal assets (500mt in two JORC resources) in divestment process Suitable for domestic power station feedstock or coal to liquids (CTL) Joint venture interest in hard coking coal vehicle (Ekhgoviin Chuluu LLC) with Noble Group 2012 Exploration programs 5,000m diamond program at Sharchuluut copper porphyry project Mapping at the Argalant and Amgalant copper project 10,000m program at Elgen Zost low sulphidation epithermal project New copper acquisition Currently in earn in phase of advanced copper project, Oyut Ulaan in SE Gobi Management team strengthened Recently recruited senior resources professional based in Mongolia to drive commercial strategy and business development 4

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6 Sharchuluut Uul Porphyry Cu-Au Project Strategic location Bulgan Province of Northern Mongolia, approximately 230km NW of Ulaanbaatar Approximately 40 km NW of the world-class Erdenet Cu-Mo deposit Well developed infrastructure including rail access to China and Russia Exploration area comprises 1 exploration licence Totalling 488km² and remains relatively unexplored Five porphyry-related prospects within a 15-kilometre-long, northwest oriented corridor of porphyry-related alteration and mineralisation at the north-western extremity of the Erdenet Trend 6

7 Sharchuluut Uul Porphyry Cu-Au Project Erdenet Trend Located at the NW extremity Erdenet trend Intersection of the arc parallel faults and the northwest-southeast transverse faults Optimal for porphyry copper exposure and preservation Erdenet trend displays a progressively deeper erosion level from NW to SE 7

8 Sharchuluut Uul Porphyry Cu-Au Project 2012 Exploration Program Exploration drilling commenced in April 2012 Alteration and field relationships suggest a high level of formation above a deeper porphyry A strong possibility of discovering additional mineralised porphyry gold-copper targets within the Sharchuluut Uul district, and along the defined structural corridor 8

9 Oyut Ulaan Cu-Au Project The acquisition Xanadu Mines has executed a terms sheet with Temujin Mining Corp (a private Canadian company) to acquire Oyut Ulaan Cu- Au project via a purchase of Temujin s wholly owned subsidiary Vantage LLC. Once documentation is finalized and a mining license issued, Xanadu will be entitled to a 25% Project interest Xanadu s purchase of the remaining 75% will be subject to approval by a General Meeting of its Shareholders Strategic location 275 km NE and along strike of the world-class Oyu Tolgoi Cu-Au Project 60 km West of Sainshand city and the Trans Mongolian Railway Exploration license License comprises 120 km² of moderately eroded Cu/Au rich porphyry and skarn stratigraphy License area explored by Mongolian & Russian geologists in the 1960 s and by Ivanhoe mines from Extensive geophysical, trenching and drill data from 16 holes being evaluated Mineral potential Potential to host a large buried porphyry copper deposit or multiple skarn targets Numerous walk up drill targets comprise 18 mineralized prospects 9

10 Oyut Ulaan Cu-Au Project Malachite in surface rocks at Oyut Ulaan June 2012 Trench featuring Malachite at Oyut Ulaan June 2012

11 Amgalant & Argalant Uul Cu-Au Projects Strategic location Omnogovi Province of Southern Mongolia, approximately 230km SE of Ulaanbaatar Approximately 110 kilometres northeast of the world-class Oyu Tolgoi Cu-Au Project Proximal to the large Tsagaan Suvarga Cu-Mo deposit under development Exploration licences are large (Amgalant 109 km² and Argalant Uul 895 km²) Relatively under explored and occur in a shallowly eroded porphyry-type environment 11

12 Amgalant & Argalant Uul Cu-Au Projects Regional Landsat image 12

13 Amgalant & Argalant Uul Cu-Au Projects Regional airborne magnetic (RTP) Image 13

14 Amgalant & Argalant Uul Cu-Au Projects Detailed ground magnetic data showing interpreted intrusive centres under shallow cretaceous gravels Regional airborne magnetic (RTP) Image 14

15 Solenker Epithermal Gold District Strategic location Dornogovi Province of SE Mongolia, approximately 680km SSE of Ulaanbaatar & 30km from Chinese border Xanadu holds 80% of the joint venture (Altan Xanadu) covering Elgen-Zost and Suug All significant regional Landsat data & geochemical anomalies held by Xanadu Altan Xanadu JV consists of 4 exploration licenses covering approximately 401km² Regional Geology Mesozoic Continental extension Upper Jurassic to Lower Cretaceous bimodal volcanism associated with extension Numerous High Priority Low Sulphidation Epithermal Prospects Shallow level of erosion ( vertical meters ) above the gold rich (boiling) zone 15

16 Solenker Epithermal Gold District Suuj Uul LSE Prospect Interpreted to represent the shallow level of a epithermal breccia pipe enriched in Au & Ag. Target at depth within a dilatational structure. Elgen Uul LSE Prospect Zost Uul LSE Prospect Interpreted to represent the upper level of a low sulphidation epithermal system enriched in Au. Outcropping, sub-cropping and buried mineralised LSE style veins over >3km strike. Broad silica alteration continues under cover. Discreet epithermal quartz-adularia vein zones have been intersected beneath the silica sinter. Shallow level of erosion ( vertical metres above where the gold rich zone is present). The presence of stibnite & arsenic minerals. Predominance of chalcedony and amorphous silica. Interpreted to represent the shallow level of a low sulphidation epithermal system enriched in Au. Extensive stibnite & arsenic anomaly associated with exposed silica sinters. 16

17 Foreign Investment Law Law on regulation of foreign investment in business entities operating in sector of strategic importance Highlights Became law on May Applies to three business sectors Minerals Banking and finance Media and communications Thresholds Foreign entity must notify Government if it acquires between 5% to 33.33% of a domestic entity Approval from Cabinet must be sought for acquisition of 33.33% or above Parliamentary approval required for >49% and acquisition value > 100B MNT ($75M) International treaty provisions would prevail for those signature counties Implementation Will require full suite of regulations to administer Decision timing up to 95 days Expect further clarification after June 28 election outcome 17

18 Investment Highlights A next generation minerals play in a next generation minerals region Pursuing coal and copper/ gold production in Mongolia with significant early mover advantage Identified significant JORC coal resources currently being divested Operating in Mongolia for more than seven years; 30 national support staff in Ulaanbaatar Mongolia an emerging resources powerhouse due to prospectivity and location Major international mining companies, currently investing significantly in Mongolia including Rio Tinto, Vale, Centerra, Ivanhoe, Peabody, Xstrata and Teck Cominco A suite of highly prospective for coal, copper, gold and uranium which are all in strong demand Direct rail access to China & north Asia All projects are located near rail infrastructure with excellent access to China and broader Asian markets China will be targeted as preferred export destination 2012 Exploration Program Focused on porphyry copper at Sharchuluut and Oyut Ulaan and gold at Elgen-Zost-Suug Strong balance sheet to fund aggressive exploration Aggressive exploration of recently acquired JV coking coal licences supported by Noble Energy Preparing spin out of coking assets into new IPO in

19 Mongolian Office 2 nd Khoroo, AOS Street Military Town, Bayanzurkh District Ulaanbaatar, Mongolia T E:info@xanadumines.com ABN: ASX Code: XAM Sydney Office Suite 4, Level 2, 66 Oxford Street Darlinghurst NSW 2010 Australia T W: 19