Presentation to Investors London March 2012
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. 2
Latin Resources Limited (ASX Code: LRS) Mineral exploration and development company based in mineral rich Peru. Over 3 years of exploration work and $8m spent to date Listed on ASX September 2010 Strong Management team 3
Exploration Management Structure Chris Gale Managing Director Andrew Bristow General Manager Geoff Blackburn Consultant Geologist Guadalupito Peter Hinner - Project Manager Mariela,Ilo Norte & Sur Regional Sam Garrett Project Manager Derek Judkins -Technical Manager Raul Carbaul- Senior Geologist One Snr Geologist Two Jnr Geologist
Latin Resources projects Latin Resources Guadalupito Project Latin Resources Ilo & Mariela Projects 5
Latin Resources Limited Achievements since listing on ASX Acquired a major and potential world class mineral sands project at Guadaluptio Completed Initial JORC Resource at Guadalupito -Snowdens Appointed Ausenco for Guadalupito Scoping Study Completed exploratory drilling program at Ilo Secured Joint Venture Partner for Mariela Junefield Group 6
Project Portfolio & Strategy Close to Port & Infrastructure; Situated in area surrounded by major International Resource Sector Players Two major projects - Guadalupito Iron & Mineral Sands - Ilo & Mariela 7
Guadalupito Iron & Mineral Sands Project Total holding of 16,000 hectares The port town of Chimbote is 25 Kms south SiderPeru Steel works (Gerdau Group) is located in Chimbote Close to infrastructure Guadalupito Project Chimbote Port 8
Guadalupito Iron & Mineral Sands Project Conceptual exploration target of 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, 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 2.0-2.6 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 1.8-2.2. Work conducted at Guadalupito to date highlights good potential for economic content of: Magnetite (3.5% - 15.1%),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. 9
Sonic Drill Rig Guadalupito 10
Initial JORC Inferred Resource Above water table JORC Resource 38MT @8.9% Heavy Mineral Below water table JORC Resource 81MT@ 4.1% Heavy Mineral Total JORC inferred Resource of 119MT @ 5.7% Heavy Mineral Initial JORC carried out over 682 ha - Total Concession Hectares 16,437-682 ha is only 5% of total concession area 68 Sonic Holes completed Total drill program of over 1000 holes 11
Scoping Study Brief- Ausenco Develop of early cash flow based on a 10Mt pa dry mining operation to produce; Magnetite Gold Andulusite Develop eventual target of a 30 to 35 Mt pa operation to produce other minerals ; Zircon Ilmenite and other Ferro-Titanium oxides 12
Stage 1 Concept 10 mtpa Dry surface Mining Operation REJECTS 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
Stage 2 Concept 35 mtpa Dredging Mining Operation REJECTS NON- CONDUCTORS REJECTS REJECTS DESLIMING STAGE 2 CONCEPTUAL FLOWSHEET SCREENING SPIRAL CIRCUIT Mining CLAY FINES SAND TAILS HMC STOCKPILE WCP MINING VOID MSP CONDUCTORS CONCENTRATE NON-MAGNETICS NON-MAGNETICS NON-MAG CONDUCTOR MAGNETIC SEPARATION LIMS NON-MAGS HT SEPARATION NON-MAGNETIC SPIRAL CIRCUIT SUPER-CON LIMS MAGNETIC SEPARATION MAGNETICS NON-MAGETIC TIO 2 PRODUCT MAGNETIC TIO 2 PRODUCT ZIRCON PRODUCT WET ZIRCON SPIRAL CIRCUIT NON-MAGNETIC NON-CONDUCTORS MAGNETIC SEPARATION GOLD CON WET TABLE MAGNETITE STOCKPILE GOLD CONCENTRATE PORT 14
Potential Mining Operation & Example of Concentrate 15
Latin Resources Ilo projects Latin Resources Ilo Projects Mariela 16
Ilo District 2008 Latin Resources Southern Copper Ilo Port Latin Resources Chile 17
Ilo 2012 Latin Resources controls 100,000 HA Mariela Southern Copper BHP Metminco Ilo Port Anaconda (Antofagasta)
Mariela Large anomaly Excellent Iron Oxide Copper Gold (IOCG ) District Close to Port and highways Drilling planned 2 nd Quarter 2012 Junefield Group to spend $35 m to BFS for 70% - LRS 30% free carry 19
Mariela- 3km x 1km x 300m Modeled Body 20
Mariela - 3D Gravity Model 21
Strategy and Goals for 2012 Expand JORC inferred resource at Guadalupito Complete Scoping study at Guadalupito Commence drilling program at Mariela Commence detailed exploration program at Ilo concessions Increase shareholder value by achieving sound fundamental milestones 22
LRS - Capital Structure Shareholding Shares Options Total Shares 180,821,141 55,883,333 Market Cap @ 35c $63 million Junefield Group major Shareholder with 16.8 % Cape Lambert shareholding 12% Top 30 Shareholders control 70% of shareholding $6.4m in cash 23
Peer Market Cap ASX 300 280 Iluka - $6B 250 Latin Resources 200 150 100 50 $ m 0 63 75 78 Mkt Cap 86 Centauras - Iron Brazil Indo Mines - Iron Sands Amex -Iron Sands Fiji Metminco- Copper Peru 24
Thank You and Questions 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 2.0-2.6 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 1.8-2.2. Work conducted at Guadalupito to date highlights good potential for economic content of: Magnetite (3.5% - 15.1%),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. 25