Exeter January 17, 2013 Powerpoint
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  • The stable market and political situation in Chile continues to attract investment. Barrick Gold for example have 38% of their attributed reserves in Latin America and when Pascua Lama comes into production will have over 30% of production coming from the region.Chile, unlike some of its neighbours, has a strong transparent environmental permitting system, and, although there have been recent incidences of projects being stopped after permitting, notably Goldcorp’s el Morro project, these have been due to errors in the application process not due to voxpopuliwhich have forced populist governments to act with little technical bases

Exeter January 17, 2013 Powerpoint Exeter January 17, 2013 Powerpoint Presentation Transcript

  • DEVELOPING ONE OF THE WORLD’S LARGEST GOLD-COPPER PROJECTS January 2013 TSX: XRC NYSE MKT: XRA
  • Cautionary StatementCautionary Note to U.S. Investors – The United States Securities and Exchange Commission (“SEC”) permitsmining companies in their filings with the SEC to disclose only those mineral deposits that a company caneconomically and legally extract or produce. We use certain terms in this presentation, such as “inferredresource”, that the SEC guidelines strictly prohibit us from including in our filing with the SEC. U.S. investorsare urged to consider closely the disclosure contained in our annual report on Form 40-F. You can reviewand obtain copies of our filings from the SEC’s website athttp://www.sec.gov/edgar.shtml.This document and the information contained in it do not constitute a prospectus and do not form any partof an offer of, or invitation to apply for, securities in any jurisdiction. Potential investors should not relysolely on the information contained herein prior to making any investment decision. Investors should seekindependent advice from a qualified finance and investment advisor, giving due regard to their ownpersonal circumstances, prior to forming any investment decision.Safe Harbour Statement - This presentation may contain certain “forward-looking statements” within themeaning of the United States Private Securities Litigation Reform Act of 1995. These statements reflect ourcurrent belief and are based upon currently available information. Actual results could differ materiallyfrom those described in this presentation as a result of numerous factors, some of which are outside of thecontrol of Exeter.Many of the assay results presented are preliminary and may not be accurate due to various factors,including but not limited to sample recoveries, true widths and interpretations. T S X XRC 2 N Y S E . M K T XRA
  • Capital Structure – January 3, 2012 Shares issued 88.4 M Options (aver. $4.09) 10.5 M Fully Diluted 98.9 M Management & Insiders 7% Institutions 32% Retail 61% Cash in millions C$54 T S X XRC 3 N Y S E . M K T XRA
  • Investment Highlights World class gold-copper deposit Chile – a top ranking jurisdiction for mining investment Located in an active mining district with available infrastructure Area has attracted considerable M&A activity by major companies Caspiche Pre-feasibility Study completed. First economic analysis for this major deposit Current market valuation $4 /oz. gold equivalent OR only $2/oz. gold equivalent when cash is removed => a significant transaction premium is available to investors T S X XRC 4 N Y S E . M K T XRA
  • Low Geopolitical Risk - Chile Chile: a mining friendly, politically stable, OECD nation Worlds largest exporter of The Fraser Institute’s 2011/2012 survey on copper political risk placed Chile 18th out of 93 mining jurisdictions, and #1 in South America: Consistently ranked one of the top 20 best places to mine in the world & the #1 place to mine in South America Clear regulations, transparency, well- established legal system Skilled labor force Many large mines permitted: Escondida, Andacollo, Cerro Casale Source: Fraser Institute, 2011/2012 T S X XRC 5 N Y S E . M K T XRA
  • Latin America has huge untapped gold resource• Chile has largest untapped resource although it is only the 5th largest gold producer in Latin America• Exploration in Latin America accounts for 25% of global exploration spend in 2011• Major company’s such as Barrick have large portion of gold production and reserves associated with Latin American operations T S X XRC 6 N Y S E . M K T XRA
  • An Ideal Project Location CHILE Exeter’s Caspiche La Coipa Mine (Kinross) deposit is centrally located in Chile’s largest gold district. Lobo-Marte (Kinross) Volcan (Hochschild) Maricunga Mine (Kinross)P&P: 19.3 M oz. gold, 4.6 B lbs. Copiapo Caspichecopper, 30.1 M oz. gold equiv. ARGENTINA (see full details on slide 17) Cerro Casale Prefeasibility Complete (Barrick-Kinross) Caserones Ownership is (Nippon-Mitsui) dominated by major Vallenar Relincho (Teck) producing El Morro (Goldcorp-New Gold) companies. Veladero Mine (Barrick) Pascua Lama Mine (Barrick) T S X XRC 7 N Y S E . M K T XRA
  • A Strategic Location Reserves: 9.5 million ounces gold at 0.65 g/t Producing 156,000 ounces per year Reserves: Reserves: 19.3 million ounces gold, 26.0 million ounces gold, 4.6 billion pounds copper 5.8 billion pounds copper (1.1 billion tons at 0.6 g/t gold & 0.2% copper) Caspiche Porphyry Cash costs of $175 per ounce* Discovery *Cash costs as quoted from Barrick’s September 2011 presentation, net of copper credits. See slides 17 for Caspiche’s full tonnes and grade T S X XRC 8 N Y S E . M K T XRA
  • World-Class ProjectCaspiche is ranked in thetop 1% of global golddeposits by endowmentLarge tonnage, long life assetshave been historically desiredby large gold miners to replacereserves and guarantee stableproduction profiles.Caspiche is located in a mineralbelt that has been undergoingsignificant investment byKinross, Barrick, Goldcorp, Teckand Nippon-Mitsui alldeveloping major projects T S X XRC 9 N Y S E . M K T XRA
  • Big Deposits Are Becoming Scarce Source: U.S. Global Research T S X XRC 10 N Y S E . M K T XRA
  • Grades Have Fallen, Costs Have Risen Source: GFMS Mine Economics, LBMA, World Gold Council *All in costs are a GFMS measure to reflect the full marginal cost of mining T S X XRC 11 N Y S E . M K T XRA
  • The Discovery Deficit Discoveries from 1990 to 2011 replaced only 56% of the gold mined during that same period. T S X XRC 12 Source: Metals Economic Group, extracted from Brent Cook’s Exploration Insights N Y S E . M K T XRA
  • Why are Porphyry Deposits Developed? Long Mine Life and Low Cash Costs *chart from Barrick’s September 24, 2012 HSBC Presentation, slide #7 T S X XRC 13 N Y S E . M K T XRA
  • Long-Term Gold Price T S X XRC 14 N Y S E . M K T XRA
  • Source: See Goldcorp’s November 2012 Presentation: Bloomberg Data Nov 2, 2002 to Nov 2, 2012 T S X XRC 15 N Y S E . M K T XRA
  • Life Cycle of a Junior Explorer T S X XRC 16 N Y S E . M K T XRA
  • Proven & Probable Reserves Reserves: (Super Pit Scenario – January 17, 2012) Oxide Ore Leachable Sulphide Ore Sulphide Ore Ore Gold Silver Ore Gold Copper Silver Ore Gold Copper Silver Grade Grade Grade Grade Grade Grade Grade Grade Reserves (Mt) (g/t) (g/t) (Mt) (g/t) (%) (g/t) (Mt) (g/t) (%) (g/t) Proven 62 0.42 1.71 4 0.46 0.08 0.7 321 0.62 0.26 1.1 Probable 62 0.33 1.52 74 0.51 0.07 1.08 568 0.55 0.23 1.15 Total 124 0.38 1.62 78 0.51 0.07 1.05 889 0.58 0.24 1.13 +1 Billion Tonnes Total Contained Metal in Total Reserves Gold* Gold Copper Silver Equivalent (Moz) (Blbs) (Moz) (Moz) Proven 7.3 1.76 14.8 11.4 Probable 11.9 2.86 26.6 18.6 Total 19.3 4.62 41.5 30.1Mineral Reserves are defined within a mine plan with pit phase designs guided by Lerchs-Grossman (LG) pit. The LG shell generation was performed on Measured and Indicatedresources only, using a gold price of 1,150 US$/oz., a silver price of 20 US$/oz. and a copper price of 2.5 US$/lb, a base mining cost of 1.00 US$/t with incremental of 0.025 US$/t per15 m bench below the pit exit and 0.015 US$/t per 15 m bench above the pit exit. Processing and treatment costs used were 3.40 US$/t of ore plus 6 US$/oz. of gold and 0.4 US$/oz.of silver for oxides, 5.31 US$/t plus 6 US$/oz. of gold and 0.4 US$/oz. of silver for MacNeill and 7.04 US$/t plus 6 US$/oz. of gold and 0.4 US$/oz. of silver for sulphides. ApplicableNet Smelter Royalties were applied. Metallurgical recoveries for oxides were 78 % for gold and 34 % for silver. Metallurgical recoveries for MacNeill were 55 % for gold in the upperlayers and 30 % in the lower layers and 20 % for silver. Silver metallurgical recovery for sulphides was 50 %. Copper and gold metallurgical recovery for sulphides was a function of T S X XRCthe head grade.Sulphide and oxide ore reserves are reported at 0.00 US$/t profit. Leachable MacNeill ore reserves are reported at 0.49 US$/t profit after cost of rehandle. Tonnagesare rounded to the nearest 1,000 kt; grades are rounded to two decimal places. Rounding as required by reporting guidelines may result in apparent summation differences betweentonnes, grade and contained metal content. Tonnage and grade measurements are in metric units; contained gold and silver are in troy ounces. The life of mine strip K T XRA N Y S E . M ratio is 3.11. 17
  • The Caspiche Development Concept Phase 1: Oxide Gold Deposit Phase 2: Sulphide Gold-Copper Deposit Prefeasibility Study Completed for combined Oxide + Sulphide January 2012 NPV: $2.8 Billion T S X XRC N Y S E . M K T XRA 18
  • Caspiche Total Deposit Pre-Feasibility StudyResults Released January 17th, 2012 19 million ounces goldProven & Probable Reserves 4.6 billion pounds copper 696,000 ounces goldAverage Annual Production 244 million pounds copper 1.17 million ounces gold equivalent *Mine Life 19 years US$606 per ounce gold equivalent*Cash Costs US$18 per ounce gold net of Cu/Ag creditsNPV5 US$2.8 billionIRR 11.5%Payback 7 yearsRevenue US$27.4 billionCapital Costs US$4.6 billion 150,000 tonnes per day through concentratorThroughput 72,000 tonnes per day through heap leachStudy uses a 5% discount rate. Metal Prices are as follows: $1,430/oz. gold over years 1-4, $1,200/oz. gold over remaining LOM, $2.75/poundcopper over LOM, $31.20/oz. silver over years 1-4, $22.50/oz. silver over remaining LOM. See study filed on SEDAR Jan. 17, 2012 for full details. *Gold equivalent value is based on gold and copper revenues (prices and recoveries involved) at 1,150 US$/oz gold and 2.50 US$/lb copper, and assuming recoveries of 65 % and 85 % T S X XRC 19 respectively for sulphide material, and 78 % for Au and 11 % for Cu in the oxide zone. N Y S E . M K T XRA
  • Caspiche Adopts In-Pit Crushing and Conveying (IPCC)In-pit Crushing and Conveying is an alternative to truckingoverburden from a mine pit. It has a similar capital cost totrucking but reduces operating costs. T S X XRC 20 N Y S E . M K T XRA
  • IPCC: Advantages for Caspiche Reduces mine staffing by up to 360 Significantly fewer trucks Reduces fuel costs Advantages of long term electrical power contracts and regenerative power from conveyors Operating cost reduction of $US0.25/t material moved or approximately $US0.80 /t of ore ~$US1 billion in capital cost saving by using the waste rock for the Tailings Storage Facility T S X XRC 21 N Y S E . M K T XRA
  • Caspiche –Development UpdateWater Supply:Working with Schlumberger Water Services to develop itswater supply option. Exeter has option to rights of 300 l/sand requires < 100 l/s for the heapleach project.Exeter two water exploration concessions that have beengranted. Initial drilling on the first concession area indicatedpresence of water – further development will continue laterthis year.Power Supply:Worked with POCH Engineering to complete a feasibility studyon the extension of an existing power line from a neighbouringoperation. The study was completed in August 2012 and willbe submitted to the Chilean authorities for approval prior tonegotiating the line extension. T S X XRC 22 N Y S E . M K T XRA
  • Caspiche –Development UpdateOn site Hydrology and Hydrogeology:Worked with Schlumberger Water Services to completeproject wide water management plan for the initial heapleach operation. This study was completed in August 2012and will support future engineering studies.Geotechnical Evaluation:Worked with Knight Piesold on detailed geotechnical studiesto support process plant and infrastructure location andfoundation requirements and to evaluate use of on sitematerial for fill and concrete use. The Study was completedin August 2012 and indicates there is sufficient material onsite which can be conditioned for use in concrete forconstruction. T S X XRC 23 N Y S E . M K T XRA
  • Caspiche Conceptual Mine Layout T S X XRC 24 N Y S E . M K T XRA
  • Project Value Drivers In 2012 we demonstrated economics for total project: $2.8 billion NPV5 , 11.5% IRR, $27.4 Billion in Revenues (see slide 19 for details) Adding value by ongoing project optimization studies to maximize recovery/revenues Adding value by continuing to de-risk all aspects of the project thereby minimizing the timeline to commercial development Adding value by drilling for water T S X XRC 25 N Y S E . M K T XRA
  • Gold Project Transactions – Maricunga Belt, Chile Proven and probable reserves are shown for Caspiche. See slides 17 for full tonnes and grade. **Gold equivalence for Caspiche was calculated using assumed metal prices of US$1150/oz. for Au T S X XRC 26 and $2.50/lb for Cu N Y S E . M K T XRA
  • Value of Gold Resource Per Dollar Invested Leverage (Dollar Value of Gold per $1 Invested)450.0400.0350.0300.0250.0200.0150.0100.0 50.0 0.0 Calculation: (Total Gold P&P, M&I, Inf / Shares Outstanding)/Share Price x $1750/oz gold T S X XRC 27 as of January, 2013 N Y S E . M K T XRA
  • Why Invest in Exeter? C$54 million in cash Largest prefeasibility stage project in Chile not owned by a major company Top 1% of global gold deposits in size (30 million ounces gold equivalent*) Low political/permitting risks; top mining skills Strategic location – Maricunga region dominated by major mining companies Provides exceptional leverage to gold Clearly undervalued – Project NPV approximately 25 times current market capitalization *Gold equivalent value is based on gold and copper revenues (prices and recoveries involved) at 1,150 US$/oz gold and 2.50 US$/lb copper, and assuming recoveries of 65 % and 85 % respectively for sulphide material, and 78 % for Au and 11 % for Cu in the oxide zone. T S X XRC 28 N Y S E . M K T XRA
  • Analyst Coverage Mr. David West Mr. Daniel Earle dwest@salmanpartners.com daniel.earle@tdsecurities.com 604.622.5569 416.308.7906 Mr. John Hayes Mr. Adam Graf johnp.hayes@bmonb.com agraf@dahlmanrose.com 416.359.6189 212.702.4527 T S X XRC 29 N Y S E . M K T XRA
  • Caspiche - A Unique Asset “With the release of the January 17thPrefeasibility Study the Caspiche Project has emerged as the one truly world class gold- copper asset in Chile not yet owned by a major mining company” www.exeterresource.com Suite 1660, 999 West Hastings Street Vancouver, BC, Canada, V6C 2W2 Toll Free: 1-888-688-9592 Telephone: 1-604-688-9592 T S X XRC 30 N Y S E . M K T XRA