AGM Presentation June 2011
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AGM Presentation June 2011 AGM Presentation June 2011 Presentation Transcript

  • ALDRIDGE MINERALS AGM-V www.aldridge-minerals.com
  • DISCLAIMERCertain statements contained in this presentation regarding the company and itsactivities constitute forward-looking statements . All statements that are not historicalfacts, including without limitation statements regarding future estimates, plans,objectives, assumptions or expectations of future performance are forward-lookingstatements . We caution you that such forward-looking statements involve knownand unknown risks and uncertainties that could cause actual results and future eventsto differ materially from those anticipated in such statements. Such risks anduncertainties include fluctuations in metal prices, unpredictable results of exploration,uncertainties inherent in the estimation of mineral resources and reserves, fluctuationsin the costs of goods and services, problems associated with exploration and miningoperations, changes in legal, social or political conditions in the jurisdictions where thecompany operates, lack of appropriate funding and other risk factors. There can be noassurance that such forward-looking statements will prove to be accurate. Potentialinvestors should conduct their own investigation as to the suitability of investing insecurities of the company. Martin S. Oczlon, PhD Geo, is the qualified person for thecompany as required by NI 43-101 (Canadian Securities Administrators). The companyundertakes no obligation to update any forward-looking statements . We seek SafeHarbour. 2
  • Directors & ManagementJacob Willoughby — President & director. Joined board Feb 2010 & became presidentat last annual meeting April 28th 2010Jean-Pierre Colin — Chairman. Director since Oct 2010, also a director of Premier Gold& Ursa Major MineralsDr. Martin Oczlon — CEO & director. Founder & largest individual shareholderDaniella Dimitrov — Director & legal advisor. Joined board Oct 2010Mark Monaghan — Director. Joined board April 2010Barry Hildred — Executive director. Joined board April 2010John F. Cook — Director. Joined board May 2011. Currently a director of StrategicResources Inc., MBMI Resources Inc., Southern Andes Energy Inc. and Cerro Resources IncEd Guimaraes — Director. Joined board May 2011. Served as Executive VP & CFO at AurResources prior to it being acquired by Teck Resources 3
  • Market Highlights (as at May 27, 2011)Symbol Canada TSX-V: AGM Frankfurt: AIWShares outstanding 37.1 millionDirectors & Insiders about 15 %Shares fully diluted 51.7 million (4.119 m options @ avg. strike of $1.43, 10.535 m warrants @ avg. strike of $1.72)52 week high / low C$ 2.25 / $0.52Recent price C$ 1.28Market cap C$47.5 millionCash C$ 11.0 millionTop institutional RBIM, Colonial First State, US Global, Libra, Excalibur, Sprott,shareholders JVAR and Creststreet 4
  • Yenipazar - Location Map AGM – Yenipazar Au-Ag-Cu-Pb-Zn Project 5
  • Turkey: A Great Place for MiningPolitically stable, pro-mining, non-bureaucraticExcellent infrastructure roads, electricity, water, railwaysNew, modern and western oriented mining code (2004)Low tax rate, tax incentives in our area, VAT re-payments•  0.5-1 % effective royalty, 20 % corporate taxOne of the world s last under explored mineral-rich regionsRecent large discoveries include:•  EGO-T: Kisladag (254 Mt @ 0.95 g/t Au – 7.8 M oz Au = $10.7 B )•  ANO-T: Cöpler (90 Mt @ 1.87 g/t Au – 5.4 M oz Au = $7.4 B)•  ENK-ASX: Caldag (33 Mt @ 1.3 % Ni – 946 M lbs Ni = $9.8 B excluding Cobalt value)•  AGM-V: Yenipazar (+25 Mt @ 1.1 g/t Au, 33.8 g/t Ag +Zn+Pb+Cu = $4.3 B) 6
  • Yenipazar Open Pit Resources Million Au Ag Cu Pb Zn Tonnes g/t g/t % % %Ind. 24.28 1.09 33.8 0.31 1.16 1.52Inf. 0.22 0.49 22.7 0.30 0.71 1.16 Contained metal: 854,400 oz of Au, 26.6m oz of Ag, 819m lbs of Zn, 624m lbs of Pb and 167m lbs of Cu. In-ground metal value at current prices: Approximately US$4.3 billion. NI 43-101-compliant resource estimate based on 370 drill holes in an optimized open pit shell (Feb 2011) 7
  • Accomplishments in 2010Raised C$5m in a private placement attracting the first institutional investors inAldridge (Jan - $1.00 unit with full warrant for two years at $1.50)Restructured the board and management – 5 Directors out, 5 Directors in –all new directors based in Toronto and have significant knowledge and experiencein Canadian capital marketsRevised our earn-in agreement with Anatolia on YenipazarGained analyst coverage from Mackie Research and Clarus Securities, bothwith target prices nearly 2x our current share priceCompleted infill drilling and collected metallurgical samplesCompleted 43-101 complitant PEA in December (commenced in mid July)Relocated our corporate offices to Toronto from VancouverHired IR groups Ascend Communication and Profinnotiv for NA and Europerespectively 8
  • Yenipazar Key ParametresLarge land package — 100 km2 property that has seen very limitedexploration, level and low-relief, open terrain used predominantly for farmingLocal support — Near-by village with pro-mining work force and strongcommunity support. Local unskilled labour rate is US$20/day – farmers earnless than that. AGM has been working in the area since 2004.Agreement with Anatolia — to earn 100 % interest. AnatoliaMinerals retains 6 % net proceeds interest (revenue minus operational cost)until a total revenue of US$165m, and 10% beyond that amountCommitment — Aldridge must deliver a feasibility to Anatolia. Theagreement remains valid without time limit, as long as Aldridge worksdiligently towards completing feasibility study. 9
  • Project DetailsOpen pit project — volcanogenic massive sulphide (VMS) Zn-Pb-Cu-Au-Ag deposit. Robust economics as demonstrated by our PEA.Solid Resource Base — +24 Mt within an optimized open pit shell. Thisputs Yenipazar in the 90th percentile of all known VMS deposits as far as sizeGreat Infrastructure — paved road next to the deposit, as well asaccess to water. Power and rail within approximately 20 kmUnique characteristic — Large ore mineral grains due tometamorphism – potentially more cost-efficient separation from host rock thanusual VMS-depositsDeposit dimensions — roughly flat lying body should allow for flexiblemine sequencing to optimize early payback - 1700 m long, up to 300 m wide,30-190 m deep, on average about 25-30 m thick. Still open, especially to thenorth of the deposit 10
  • Typical VMS Mining Camps(Source: Geological Survey of Canada) 11
  • Scoping Study HighlightsBase Case NPV US$209m & IRR of 23.2 at 7% discount rate•  At 10% discount rate, NPV US$151m or $4.07per basic share, $2.93 ashare fully diluted. (Exercising all options and warrants brings in C$23.5m)•  Base cases uses 3-year trailing average metal prices and 4.5:1 strip includingpre-strip and capex of US$198m for a 12 year mine life assuming 5,700 tpd mill(2m tpa).•  Average payable production of 23,700 oz Au, 1.1m oz Ag, 10m lbs Cu, 37mlbs Pb, 37m lbs Zn from diluted average grades of 1.02 g/t Au, 31.6 g/t Ag,0.29% Cu, 1.1% Pb, 1.4% Zn•  Zn conc grades 55%, Pb conc grades 55% & 1025 g/t Ag, Cu conc grades23% with 20 g/t gold & 337 g/t Ag• Project payback in 3.9 years. LOM average NSR US$57.27/t, LOM averagetotal operating cost $29.65/t.•  At current metal prices NPV over US$554m and IRR of over 51.51% 12
  • Revenue by payable metal production 13
  • Scoping Study LowlightsBase case used results of ONE locked cycle flotation test•  Recoveries: Zn 59%, Pb 78%, Cu 77% - well below average for Zn – need tobe improved – Proper floatation study to be completed soon (60 – 90 days)•  Recoveries: Au 37%, Ag 57% - both should be improved. Have three separatesolutions to improve these.•  A doubling of gold recoveries would double the base case NPV (i.e. US$302m at 10% or $8.14 / basic share)•  A 10% increase in recoveries of each of the 5 metals would result in a52% increase in our base case NPV.•  Assumed smelter payability of Au and Ag in the Cu conc were only 90% and80%; should get 95% for both•  Assumed payability of Ag in the Pb conc was only 85%; should get 90% - 95% 14
  • Price / Net Asset Value 0.0X 0.2X 0.4X 0.6X 0.8X 1.0X 1.2X 1.4X Royal Nickel Duluth Aldridge Curis Hana Noront Producer Candente PolyMet Chieftain Developer Developer Average Relative Valuation Baja Amerigo Average Iberian Augusta Mercator Capstone Quadra FNX Taseko General Moly Far West HudBay PRICE / NET ASSET VALUE Nevada Copper Inmet Breakwater Thompson Creek Mirabela AGM consensus NAV $5.05, P/NAV = 0.24 Anvil Producer Average Comparable Base Metals Companies Lundin Katanga Teck Copper Mountain Consolidated Thompson First QuantumSource: Net asset values based on research analyst consensus estimates; closing prices per Bloomberg as at May 12, 2011, WWCM presentation 2011 Equinox
  • Price / Net Asset Value 0.0X 0.2X 0.4X 0.6X 0.8X 1.0X 1.2X 1.4X 1.6X 1.8X Aldridge Geologix Volta Andina Exeter Aura Minerals Senior Victoria Mineral Deposits Brigus Inter-Citic Belo Sun Dundee Precious Intrepid Mines Intermediate Golden Star St. Andrew … Argonaut Gold Northgate OceanaGold Junior Vista Romarco Relative Valuation Colossus Sulliden Junior Average Average Greystar Trelawney Novagold Jaguar Allied Nevada Claude Guyana Goldfields San Gold Aurizon Detour Timmins Gold Avion Minefinders International … Gabriel Gammon Alamos Richmont Kinross Comparable Gold Companies Rainy River GOLD – PRICE / NET ASSET VALUE Harmony Osisko Lake Shore Barrick IAMGOLD Kirkland Lake Yamana New Gold Senior Average B2Gold Newmont Intermediate … Goldcorp Centerra Newcrest Randgold Eldorado Anglogold AshantiSource: Net asset values based on research analyst consensus estimates; closing prices per Bloomberg as at May 12, 2011, WWCM presentation 2011 Extorre Agnico-Eagle Alacer Franco-Nevada Royal Gold
  • Goals for 2011Improve the recoveries of our metalsDiscover new VMS bodies on our property surrounding YenipazarHire on additional staff with experience overseeing polymetallic feasibility studiesContinue to add analyst research coverageSignificantly raise our profile among retail investorsGraduate to a TSX listing for the company (Initiated already)Evaluate potential M & A opportunities and properties in Turkey 17
  • Yenipazar Drilling •  Deposit open to north, where holes had to be abandoned before they could reach the orebody. •  A number of RC-holes (seen on map in yellow) are to be re-drilled with a diamond rig because the hole stopped in mineralization or presumably earlier. This could significantly add to our resources. To be completed during feasibility •  For resource determination: 280 RC holes and 6 Diamond holes were used of the total database of 371 holes (364 RC + 9 Diamond) 18
  • High-grade Intersections Hole-No Interval (m) Thick-ness Au g/t Ag g/t Cu % Pb % Zn %YP-149 92 126 34 m 5.78 93.4 1.11 2.72 3.90YP-151 58 70 12 m 3.62 52.0 1.03 0.52 2.76YP-151 74 100 26 m 6.35 52.5 1.62 1.18 2.79YP-156 42 90 48 m 3.93 16.7 1.09 0.30 0.30YP-156* 110 150 22 m* 0.46 26.9 0.15 0.81 1.39YP-264 52 100 48 m 4.72 66.2 0.96 4.22 7.65YP-282 82 114 32 m 2.93 82.1 0.97 3.10 4.84 *Cumulative thickness of 4 levels in 110-150 m interval 19
  • Recent Yenipazar Drilling News Pairs of RC and duplicated diamond holes, 5 m apart. * YPD-1 includes 112-114 m (61 g/t Au), 122-124 m (20.15 g/t Au), 124-126 m (12.5 g /t Au). Capped at 10 g/t Au, the average grade for the diamond drilled interval of 62-130 meters is 2.05 g/t Au. 20
  • Yenipazar Mineralization Large mineral grainsat Yenipazar allow for gravitational pre-enrichment 21
  • Favourable Terrain Shallow topography is ideal for open pit construction 22
  • Yenipazar Site Visit – May 2011 23
  • Yenipazar Site Visit – May 2011 24
  • Future Milestones for AldridgeComplete the floatation study to improve recoveries and determine whichsmelters or off-takers to target with our concentrates – June/JulyRestart drilling and conduct extensive geophysics at Yenipazar to upgraderesources and to discover new deposits – Results by mid yearCommence a feasibility study at Yenipazar – May/June, Requires 12 to 18 mo.Restart our PNG exploration work including initial drilling – April/May, Wouldlikely require 6 monthsGraduate to the TSX and complete an AIF 25
  • Aldridge PNG – The Kili Teke DiscoveryRecognized significant mineralization potential in one of the most prospectiveareas of PNG between Porgera and Ok Tedi.Acquired a 338 sq. km license awarded in Feb 2009. Received 3 requests frommajors to JV the property before any results published.Identified two highly interesting mag anomalies similar to Porgera. AGMcompleted a 4 week mapping and sampling campaign that outlined a Cu-Au systemwithin a 10 km alteration footprint, then followed up with further sampling.Discovered a very large Cu-Au porphyry & skarn system named Kili Teke. Thesampling results here were far above our expectations with two rock samplesgrading between 23% - 35% Cu with an average of 60 g/t Au and 238 g/t Ag; 13samples grading from 1.0% - 12.9% Cu with an average of 0.44 g/t Au and 3.8 g/tAg; 28 samples grading from 0.3% - 1.0% Cu with an average of 0.39 g/t Au and 3.8g/t Ag. Also had one sample grade 9.1% zinc. 26
  • Aldridge PNG License Area ALDRIDGE MINERALS INC Exploration License_2009-2-18Base image source: PNG Mineral Resources Authority, Info-DVD distributed on PDAC 2009-3, Toronto 27
  • Au in Soil Samples at Kili Teke 28
  • Cu in Soil Samples at Kili Teke 29
  • Cu in Soil Samples at MAG1 with Ok TediPit Overlain for Scale 30
  • TIMELINE – Advancing Ahead Fiscal 2011 Fiscal 2012 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Nov.Feasibility StudyFlotation StudyYenipazar Exploration (Infill and Bulk Sample)Pilot Plant Metallurgical StudiesPNG GeophysicsPNG Drilling 31
  • ALDRIDGE MINERALS AGM-V www.aldridge-minerals.com
  • Directors & ManagementJacob Willoughby, President & DirectorJacob is a geologist with a Masters in Business Administration from the University of Windsor and became president of Aldridge in April 2010. He joined the board in February 2010. He was previously a partner and mining analyst at Paradigm Capital in Toronto, a highly ranked investment firm with a specialization in mining finance, where he worked for five years until choosing to leave in March 2009. He is also a director of Foxpoint Capital Corp.Dr. Martin Oczlon, CEO & DirectorDr Oczlon spent seven years during the 1990 s with BHP as senior exploration geologist in SW Asia and SE Europe. He drilled the discovery holes for the Reqo Diq Cu-Au porphyries in Pakistan, now with 21 Mt Cu + 37 Moz Au. From 1999-2002, he developed a private exploration company with a large project in Romania and sold it at a 200% profit. Aldridge Director since 2003, responsible for project acquisition, exploration and development 33
  • Directors & ManagementJean-Pierre Colin, ChairmanMr. Colin began his career as an investment banker in 1980. Formally the Director & Head of Corporate Finance at Octagon Capital Corp, he is currently providing corporate strategy consulting services to CEOs of public companies. Previous to his position at Octagon Capital, Mr. Colin was an investment banker with Desjardins Securities Inc., Executive VP of Deacon Capital, and Senior VP of Richardson Greenshields. He is also a director of Premier Gold and Ursa Major Minerals. He is a Member of the Bar of the Province of Quebec and holds a Master of Business Administration from the University of Western OntarioDaniella Dimitrov, DirectorMs. Dimitrov has over 16 years of broad commercial and operational experience in senior executive roles with major companies. She has held principal roles in mergers, acquisitions, financings, corporate finance and joint ventures. Ms. Dimitrov s former positions include Senior VP, Strategic Initiatives of Raymond James Ltd., COO of Dundee Securities and Dundee Private Investors, General Counsel for the Dundee group of companies and counsel at a national law firm. She is also a director and vice chair of Baffinland Iron Mines. 34
  • Directors & ManagementBarry Hildred, DirectorBarry founded The Equicom Group in 1995 and remained its President until October of 2009. In 2007, Equicom was acquired by the TSX Group. Mr. Hildred also serves on the Board of the Childrens Aid Foundation and is a past member of the Ontario Securities Commissions Continuous Disclosure Advisory Committee.Mark Monaghan, DirectorMark is a business consultant with 18 years of institutional equities and public company experience. He has worked in various capacities including equity sales, trading as well as investment banking at several brokerages including TD Securities, Deacon Capital, CT Securities and Quest Capital. Has been a strategic adviser and/or director to several publicly listed companies. 35
  • Directors & ManagementJohn F. Cook, DirectorMr. Cook is a mining engineer with 45+ years of experience including development of open-pit & underground mines, exploration, operations, management, & feasibility studies. He was most recently President & CEO of San Anton Resource Corp. & is currently a director of Strategic Resources Inc., MBMI Resources Inc., Southern Andes Energy Inc. & Cerro Resources Inc.. He was Chairman of Wolfden Resources Inc. until its purchase by Zinifex Ltd in June 2007, and was Chairman of Premier Gold Mines Limited until 2010. Mr. Cook is a graduate of Sheffield University in mining engineering.Ed Guimaraes, DirectorEd is a CA who held progressive management positions with Aur Resources between 1995 and 2007, ultimately serving as Executive Vice-President, Finance and Chief Financial Officer of Aur until December 2007. Aur was acquired by Teck Resources Limited in a takeover valued at $4.1 billion in August 2007. Mr. Guimaraes hasworked as a consultant in the resources industry since that time and is currently a director of Nuinsco Resources Limited. Mr. Guimaraes holds a Bachelor of Arts in Administrative and Commercial Studies from the University of Western Ontario. 36