2014 02-03-alder presentation

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  • 1. TSX-V: ALR Extracting Value Early Via Staged Project Development February 2014 1
  • 2. Forward Looking Statements This document contains forward-looking statements under Canadian securities legislation. Forward-looking statements include, but are not limited to, statements with respect to the development potential and timetable of the Rosita project; the timing and amount of estimated future development and exploration; costs of future activities; capital and operating expenditures; success of exploration activities; government regulation of mining operations; and environmental risks. Generally, forward-looking statements can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”. Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements, including but not limited to risks related to: timing and availability of external financing on acceptable terms; unexpected events and delays during construction, expansion and start-up; variations in ore grade and recovery rates; receipt and revocation of government approvals; actual results of exploration and mining activities; changes in project parameters as plans continue to be refined; future prices of metals; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes and other risks of the mining industry. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company does not undertake to update any forward-looking statements except in accordance with applicable securities laws. The technical and scientific information included herein has been reviewed and approved by Don Dudek, P.Geo , President and CEO of the Company, and a qualified person under National Instrument 43-101 of the Canadian Securities Administrators. 2
  • 3. Investment Highlights Past producing Rosita Project in Nicaragua • Option to earn a 65% interest in the Rosita project • Open ended mineralized zones : historic production of 245 million lbs Copper, 160,000 oz Gold and 2.6 million oz Silver Strategic Location • Located in Nicaragua - stable, pro-mining government with a competitive tax code: 3% NSR, 30% Net Profits Tax all in Processing of stockpiles/tailings • Potential path to near term cash flow – metallurgical studies commenced High grade resource • Stockpiles inferred resource of 8 million tonnes containing 1.01% Copper Equivalent grade1,2,3 Significant exploration upside • Drilling has defined a 1.1 km long and 200 m deep Copper-Gold-Silver mineralized zone • Drill highlights include 0.57% Cu, 1.52 g/t Au and 5.93 g/t Ag over 15 m, 29.54 g/t Au over 8 m and 1.42% Cu, 0.18 g/t Au and 20.45 g/t Ag over 10 m Experienced Management 1. 2. 3. • Proven and experienced management team and Board of Directors Assumes a long term copper price of US$2.90/lb, gold price of US$1,200/oz and silver price of US$24/oz. See Data in NI 43-101 Technical Report entitled “Technical Report on Mineral Resource Estimate of the Rosita Stockpiles” dated June 22, 2012 and filed on SEDAR. As reported in the news release issued by Alder on May 9, 2012, the inferred resource estimate totals 7.95 mt, at an average grade of 0.62% Cu, 0.46 g/t Au and 9.2 g/t Ag with an overall copper equivalent grade of 1.01%. The inferred mineral resource contains 108 million pounds of Cu, 118,500 ounces of Au and 2.35 million ounces of Ag. 3
  • 4. Rosita Project Location • 3,356 hectare concession in the prolific Mining Triangle 275 km northeast of the capital city of Managua, Nicaragua • 7 km north of the Primavera, porphyry style, Au-Cu prospect - 201.35 m grading 0.77 g/t Au and 0.36% Cu (Calibre Mining/B2Gold) • Rated the safest country in Central America with a long mining history • Modern infrastructure and easily accessible Cobre Panama 605 M tonnes Cu Cerro Colorado 1,445 M tonnes Cu • Stable, supportive and democratically elected government supportive of foreign investment • Competitive tax code : 3% NSR, 30% Net Profits Tax all in • Three producing gold mines: – La Libertad and El Limon Mines (B2Gold) – Bonanza Mine (Hemco) Prolific, underexplored mining district with a stable, pro-mining government 4
  • 5. Nicaragua – An Emerging Porphyry District Bonanza 3.0M ozs Au production* Puerto Cabezas Managua Forest Reserve Rosita 108M lbs Cu, 118K ozs Au, 2.4M ozs Ag resource Primavera B2Gold/Calibre Discovery 261.7M @ 0.78 g/t Au, 0.30% Cu Siuna 2.3M ozs Au production* Alder Calibre Calibre-B2Gold Hemco *See data in NI43-101 Technical Report entitled “Technical Report on the CopperGold-Silver Porphyry/Skarn Project at the Rosita D Concession dated January 5, 2012 which is filed on SEDAR. 8 million oz Au and 305 million lbs Cu produced in Mining Triangle of Nicaragua 5
  • 6. Santa Rita Value Proposition • Santa Rita Project contains four large surface stockpiles that comprise an inferred resource of 8 million tonnes containing 1.01% Cu Eq. grade1,2,3 • Gross metal value of ~ $ 500 million • Tailings have a non-NI 43-101 compliant inferred resource of 1.75 to 2.25 million tonnes grading from 0.14 to 0.30% Cu, 0.52-0.57 g/t Au and 6.37-12.55 g/t Ag • Metallurgical studies of the stockpile and tailings will define the best processing path in order to extract the maximum value for the material ~$400,000 to complete • Complete a PEA study using updated metallurgical data ~ $250,000 to complete • Near term cash flow from processing of Stockpiles and Tailings would support delineation of other mineralized zones on the Property 1. 2. 3. Assumes a long term copper price of US$2.90/lb, gold price of US$1,200/oz and silver price of US$24/oz. See Data in NI 43-101 Technical Report entitled “Technical Report on Mineral Resource Estimate of the Rosita Stockpiles” dated June 22, 2012 and filed on SEDAR. As reported in the news release issued by Alder on May 9, 2012, the inferred resource estimate totals 7.95 mt, at an average grade of 0.62% Cu, 0.46 g/t Au and 9.2 g/t Ag with an overall copper equivalent grade of 1.01%. The inferred mineral resource contains 108 million pounds of Cu, 118,500 ounces of Au and 2.35 million ounces of Ag. 6
  • 7. Project Geology, Targets and Prospects Multiple highly prospective targets yet to be drilled Refer to press release dated Nov 1, 2012 7
  • 8. Santa Rita Targets NE Stockpile North Stockpile East Stockpile South Stockpile Stockpiles include a NI 43-101 compliant inferred resource of 8 million tonnes containing 1.01% Copper Equivalent grade1,2,3 1. 2. 3. Assumes a long term copper price of US$2.90/lb, gold price of US$1,200/oz and silver price of US$24/oz. See Data in NI 43-101 Technical Report entitled “Technical Report on Mineral Resource Estimate of the Rosita Stockpiles” dated June 22, 2012 and filed on SEDAR. As reported in the news release issued by Alder on May 9, 2012, the inferred resource estimate totals 7.95 mt, at an average grade of 0.62% Cu, 0.46 g/t Au and 9.2 g/t Ag with an overall copper equivalent grade of 1.01%. The inferred mineral resource contains 108 million pounds of Cu, 118,500 ounces of Au and 2.35 million ounces of Ag. 8
  • 9. Santa Rita and R-13 Deposits & Targets Gold Zone 0.96Cu, 1.06Au, 9.33Ag/12m 3.26Cu, 0.15Au, 55.82Ag/8m 29.54Au/8m 0.49Cu, 1.15Au, 4.4Ag/4m 0.80Cu, 10.45Au, 21.83Ag/3m 1.42Cu, 0.18Au, 20.45Ag/10m 0.87Cu, 0.81Au, 7.96Ag/14m 6.90Au/8.0, 1.76/4m IP Anomaly Potential to add additional tonnage to an already robust stockpile resource Refer to press release dated Nov 1, 2012 9
  • 10. Large Broken Rock Resource at Surface 10
  • 11. Santa Rita Inferred Stockpile Mineral Resource Effective Date: June 22, 2012 STOCKPILE TONNES (Mt) Cu (%) Au (g/t) Ag (g/t) CuEq (%) Cu (M lbs) Au (oz) Ag (oz) NORTH 3.33 0.78 0.58 10.3 1.25 56.99 62,100 1,100,900 SOUTH 2.20 0.33 0.49 5.1 0.69 16.16 34,700 360,000 NE 0.55 0.50 0.22 9.6 0.75 6.06 3,800 168,300 EAST 1.88 0.71 0.30 12.0 1.03 29.33 17,900 725,100 TOTALS 7.95 0.62 0.46 9.2 1.01 108.54 118,500 2,354,300 Notes on Mineral Resource Estimation 1. See Data in NI 43-101 Technical Report entitled “Technical Report on Mineral Resource Estimate of the Rosita Stockpiles” dated June 22, 2012 and filed on SEDAR. 2. The mineral resource estimate base case is reported at a 0.15% copper equivalent cut-off grade; this cut-off incorporates consideration of mining and processing cost, recoveries, commodity prices and selling cost. 3. The mineral resource estimate is reported on an undiluted basis. 4. The mineral resource estimate assumes a long term copper price of US$2.90/lb, a gold price of US$1,200/oz and a silver price of US$24/oz. 5. Rounding as required by NI 43-101 reporting guidelines may result in apparent summation differences between tonnes, grade and contained metal content. 6. Tonnage and grade measurements are in metric units. Contained gold and silver ounces are reported as troy ounces, contained copper pounds as imperial pounds. 7. Mineral resources that are not mineral reserves do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, sociopolitical, marketing, or other relevant issues. 8. The quantity and grade of reported inferred mineral resources in this estimation are uncertain in nature and there has been insufficient exploration to define these inferred mineral resources as indicated or measured mineral resources and it is uncertain if further exploration will result in upgrading them to indicated or measured mineral resources. Robust resource base at low resource discovery cost of $0.01/lb Cu1 1. Based on the inferred copper mineral resource and total exploration expenditures of $900,000 11
  • 12. Santa Rita Stockpile RC Drilling 1.25 % Cu, 0.47 g/t Au, 11.8 g/t Ag/19.5m 0.54 % Cu, 3.69 g/t Au, 5.2 g/t Ag/10.5m 0.29 % Cu, 0.10 g/t Au, 5.7 g/t Ag/12.0m 2.21 % Cu, 0.14g/t Au, 15.3 g/t Ag/4.5m 0.54 % Cu, 0.51 g/t Au, 5.1 g/t Ag/10.5m • Stockpiles include a NI 43-101 compliant inferred resource of 8 million tonnes containing 108.5 million lbs Cu, 118,500 oz Au and 2.4 million oz Ag (1.01% Cu Eq. grade1)2,3 • Stockpiles were created in early 1970’s when copper and gold prices were low. In today’s market they are likely economic Large Broken Rock Stockpiles with existing 43-101 Compliant Inferred Resource 1. 2. 3. Assumes a long term copper price of US$2.90/lb, gold price of US$1,200/oz and silver price of US$24/oz. See Data in NI 43-101 Technical Report entitled “Technical Report on Mineral Resource Estimate of the Rosita Stockpiles” dated June 22, 2012 and filed on SEDAR. As reported in the news release issued by Alder on May 9, 2012, the inferred resource estimate totals 7.95 mt, at an average grade of 0.62% Cu, 0.46 g/t Au and 9.2 g/t Ag with an overall copper equivalent grade of 1.01%. The inferred mineral resource contains 108 million pounds of Cu, 118,500 ounces of Au and 2.35 million ounces of Ag. 12
  • 13. Broken Rock Resource at Surface • Large broken rock stockpiles at surface • No excavation required for processing South Stockpile North Stockpile North East Stockpile 13
  • 14. Santa Rita Tailings Mineral Resource Target Tailing TONNES (Mt) Cu (%) Au (g/t) Ag (g/t) CuEq (%) Area A 1.75 – 2.25 0.14-0.30 0.52-0.57 6.37-12.55 0.53-0.80 Inc. Area B 0.4-0.5 0.38-0.41 0.70-1.00 6.37-10.65 0.88-1.14 14
  • 15. Tailings sampling • Detailed area in yellow dots with core samples to tailings base collected every 50 m • Outside area sample to an average depth of 2.76 metres with average grades of 0.16% Cu, 0.21 g/t Au and 5.56 g/t Ag and a surface area of 454,155 square metres – not all cores went to base • Average SG is 1.818 tonnes/m3 15
  • 16. Management and Board of Directors Don Dudek | President and CEO • • Held various roles with junior and senior exploration and mining companies over the past 28 years Recently served as Senior VP Technical Services for Endeavour Mining Corp., prior to that he served as SVP Exploration for Avion Gold Corp. and Exploration Manager for Aur Resources Inc. Ryan Ptolemy | CFO • • Certified General Accountant and CFA charter holder Currently CFO of Rodinia Lithium Inc. and Belo Sun Mining Corp. Josh van Deurzen | Corporate Secretary • Corporate and securities lawyer, working as a legal consultant to various public and private companies in the resource-based sector Don Dudek | Chairman Rene Bharti | Director • Has held roles in several public and private companies, including experience in the mining sector Allan Polk| Director • Over 22 years of experience, in mine operations, consulting, feasibility studies and construction projects for both underground and open pit mines in a variety of commodities at mines and projects around the world Hon. Pierre Pettigrew | Director • • Former Minister of Foreign Affairs and currently Executive Advisor, Deloitte Touche LLP Current board member of several public companies Will Randall | Director • Professional Geologist and currently President and CEO of Rodinia Lithium Inc. Keith Stein| Director • Currently counsel to Heenan Blaikie. Previous to that he was a senior executive with Magna International Inc. reporting to the Chairman 16
  • 17. Share Capital and Share Performance TSX Venture Symbol Share Price (Feb 2, 2014) Share Price (52-week range) ALR $0.025 $0.07- $0.01 Issued and Outstanding 81.7 million Fully Diluted1 93.2 million Cash2 Market Capitalization (Basic) Insider/Institutional Holders $285,718 $ 2.1 million 25% 1. 7,115,000 options outstanding with a weighted average exercise price of $0.21. Also, 4,367,500 warrants outstanding with an exercise price of $0.10 expiring on March 21, 2015. 2. As reported on Dec 11, 2013 audited year end financial statements for the period ending Sept 30, 2013 17
  • 18. TSX-V: ALR 65 Queen Street West, Suite 800 Toronto, ON, M5H 2M5 info@alderresources.ca Follow us: Don Dudek President & CEO (416) 861-2261 ddudek@alderresources.ca Michael McAllister Manager, Investor Relations (416) 309-2134 mmcallister@alderresources.ca 18
  • 19. Appendix 19
  • 20. Project History & Overview • Option agreement with Calibre Mining to earn a 65% interest in the Rosita D concession by making the following payments: – – • • • Project expenditures of C$4.0 million (C$2.5 million already spent) Issuance of 1,000,000 shares over a four year period (400,000 shares have been issued) Completed an initial 5,900 m drill program centered on the past producing Santa Rita and R-13 deposits Mineralization below the Santa Rita pit is open along strike to the east, west and down dip Exploration upside from the Bambana prospect located 4 km northwest of Santa Rita – 400 m drill program completed • Concession hosts the historic open-pit Santa Rita copper-gold-silver deposit – Historic production of 245 million lbs Cu, 160,000 oz Au and 2.61 million oz Ag – Reported mill recoveries of 60 – 80% • First gold recovery during the last five years of production • Mine closed in 1975 due to low copper prices • Management believes that a substantial amount of Cu-Au-Ag mineralization lies both below and adjacent to the Santa Rita pit 20
  • 21. Historic Tonnage and Copper AREA Stockpile1 Zopilote2 Magnetite Hill (R-9)2 Santa Rita Pit2 R-132 R-13 West2 TOTALS TONNES (Mt) 7.95 0.28 1.54 1.17 0.60 0.52 12.06 Tonnage by Prospect (Mt) Cu (%) 0.62 0.92 0.45 0.83 1.68 1.12 0.70 % of 12 Million Tonne Total 0.6 0.52 5% 4% 10% 1.17 13% 1.54 66% 7.95 2% 0.28 Stockpile 1. 2. 3. Zopilote Magnetite Hill (R-9) Santa Rita Pit R-13 R-13 West See Data in NI 43-101 Technical Report entitled “Technical Report on Mineral Resource Estimate of the Rosita Stockpiles” dated June 22, 2012 and filed on SEDA Disclosure of Historical Estimates. Despite section 2, an issuer may disclose an historical estimate, using the original terminology, if the disclosure: (a) identifies the source and date of the historical estimate, including any existing technical report; (b) comments on the relevance and reliability of the historical estimate; (c) to the extent known, provides the key assumptions, parameters, and methods used to prepare the historical estimate; (d) states whether the historical estimate uses categories other than the ones set out in sections 1.2 and 1.3 of 43-101 (i.e. inferred, indicated, etc.) and, if so, includes an explanation of the differences; (e) includes any more recent estimates or data available to the issuer; (f) comments on what work needs to be done to upgrade or verify the hi storical estimate as current mineral resources or mineral reserves; and; (g) states with equal prominence that; (i) a qualified person has not done sufficient work to classify the historical estimate as current mineral resources or mineral reserves; and; (ii) the issuer is not treating the historical estimate as current mineral resources or mineral reserves. or mineral reserves. 21