Agm presentation march 22 2012


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Agm presentation march 22 2012

  1. 1. AGM-VALDRIDGE MINERALS AGM-V March 22, 2012
  2. 2. DISCLAIMER AGM-VCertain statements contained in this presentation regarding the company and its activities constitute“forward-looking statements”. All statements that are not historical facts, including without limitationstatements regarding future estimates, plans, objectives, assumptions or expectations of futureperformance are “forward-looking statements“. We caution you that such “forward-lookingstatements” involve known and unknown risks and uncertainties that could cause actual results andfuture events to differ materially from those anticipated in such statements. Such risks anduncertainties include fluctuations in metal prices, unpredictable results of exploration, uncertaintiesinherent in the estimation of mineral resources and reserves, fluctuations in the costs of goods andservices, problems associated with exploration and mining operations, changes in legal, social orpolitical conditions in the jurisdictions where the company operates, lack of appropriate funding andother risk factors. There can be no assurance that such “forward-looking statements” will prove tobe accurate. Potential investors should conduct their own investigation as to the suitability ofinvesting in securities of the company. Martin S. Oczlon, PhD Geo, is the qualified person for thecompany as required by NI 43-101 (Canadian Securities Administrators). The company undertakesno obligation to update any “forward-looking statements”. We seek Safe Harbour. 2
  3. 3. Directors & Management AGM-VMario Caron, CEO & DirectorJoined Aldridge Nov 2011. Mario is a mining engineer with over 30 years ofexperience in the mining industry including board and management expertise inoperations, exploration, and capital markets as well as government relations, fromvarious international projectsJacob Willoughby, PresidentJoined board Feb 2010 & became President Apr 2010. Geologist and formerPartner and base metal analyst at Paradigm Capital in TorontoBarry Hildred, Chairman & DirectorJoined board Apr 2010. Former President of TMX Equicom, a subsidiary of the TMXGroup, and past President and founder of the Equicom GroupDr. Martin Oczlon, VP Exploration & DirectorFounder & largest individual shareholder. Former BHP Senior Exploration Geologistfor SE Europe and SW Asia 3
  4. 4. Directors & Management AGM-VJim O’Neill, CFOJoined Aldridge Jun 2011. Formerly CFO of Royal Coal Corp, and VPCorporate Controller & IR at Tiomin ResourcesDaniella Dimitrov, Director & legal advisorJoined board Oct 2010. Formerly Vice Chair of Baffinland Iron Mines andCOO of Dundee SecuritiesJohn F. Cook, DirectorJoined the board May 2011. Mining Engineer and former Chairman ofPremier Gold and Wolfden ResourcesEd Guimaraes, DirectorJoined the board May 2011. Served as Executive VP & CFO at AurResources prior to it being acquired by Teck Resources 4
  5. 5. Market Highlights (as of Mar 21, 2012) AGM-VSymbol Canada TSX-V: AGM Analyst coverage Frankfurt: AIW Clarus Securities Inc. – Mike BandrowskiShares outstanding 37.1 million53.1 million pro forma Mackie Research Capital Corporation – Barry AllanDirectors & Insiders approximately 12 % Union Securities – Phil KerShares fully diluted 51.7 million (4.8 m options, avg.67.7 million pro forma $1.37, 4.721 m warrants, avg. $1.94)52 week high / low C$ 1.52 / $0.48Recent price C$ 0.62Market cap C$ 23 millionC$ 29.2 mil pro formaCash C$ 4.74 million (Nov 30, 2011)Top institutional RBIM, US Global, Sprott,shareholders Creststreet, PT Asset Management 5
  6. 6. Yenipazar - Location Map AGM-V AGM – Yenipazar Au-Ag-Cu-Pb-Zn Project 6
  7. 7. Turkey: A Great Place for Mining AGM-VFantastic Growth GDP second only to China at 9.0%. Worlds 17th largest economy set to enter the top 10 by 2022Excellent 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 regions with security of title and a safe working environmentRecent 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) 7
  8. 8. Yenipazar Open Pit Resources (Feb 2011) AGM-V Million Au Ag Cu Pb Zn   Tonnes g/t g/t % % % Ind. 24.28 1.09 33.8 0.31 1.16 1.52 Inf. 0.22 0.49 22.7 0.30 0.71 1.16Contained metal:854,400 oz of Au, 26.6m oz of Ag, 819m lbs of Zn,624m lbs of Pb and 167m lbs of CuNI 43-101-compliant resource estimate based on 370 drill holes inan optimized open pit shell (Feb 2011)According to the USGS the average Felsic VMS deposit is 3.0mtonnes and grades 3.2% Zn, 0.4% Pb, 1.2% Cu, 0.4 g/t Au and 25 g/t Ag.(Felsic VMS deposits are the largest of the 3 subtypes of VMS deposits)Mosier, Berger & Singer 2009 8
  9. 9. Accomplishments in 2011 AGM-VCompleted C$12.4m bought deal private placement Financing ($1.50 unit with one 1/2warrant, for two years at $2.00) Syndicate included Dundee (lead), Clarus, RaymondJames & MacquarieDiscovered Large-Scale Copper-Gold porphyry in Papua New GuineaCompleted 30 hole infill diamond drill program, confirming higher than resource gradezones within Yenipazar, especially for gold and silverCompleted metallurgical study indicating higher gold recoverability (+/- 75%) by gravityconcentrate and cyanide leachingDiscovered Three new mineralized outcrops north of the known resource at Yenipazarwith grades at or higher than average resource gradesEngaged Jacobs Minerals Canada to complete feasibility studyCompleted first pass drill program and further sampling in PNGStrengthened companies Board of Directors and Management teamCompleted the spin-off of Aldridge Uranium (now Anatolia Energy) 9
  10. 10. Strategic Turkish Investor - ANT Holding AGM-V Feb 27, 2012 OnFeb 27, 2012 AGM an u no ncedan$11.2M n -broker ed p ivate placem ent by ANT Ho g, a strategic T on r ldin urki sh Investor. T su scri p he b tion p ce o $0.70 is a 16.7% prem ium o ri f ver F 7 clo eb singprice of $0.60, an wil l resu t in app o mately 30.1% o er sh pby ANTHo g Ano d l r xi wn i ldin nim . S ignifican T m s of the Deal: t er Two-year standstill , lockup & voti ng comm tment s i A NTretains anti-di luti on rights, al lowing them to proport ionately partici pate in fut ure financings, based on their ownershi p at that ti me A NTmay nom nate three board di rect ors out of a total of nine i S ubject t o TSX Venture Exchange & shareholder approval A nnual & S pecial Meeting set for M 27, 2012 ar A NTHol ding A nonim (‘A NT is a pri vat e Turkish holding company wi th involvem in mini ng & media ’) ent “Th e Yen ipa zar pro jec t h as gre at p ote nti al to q uic kly be com e a s ign ific ant mi nin g o per atio n c on trib uti ng t o th e e co no mic de vel opm en t o f T urke y. Th e s ize an d te rm s o f ou r i nve stm en t ar e c lea r in dic atio ns of ou r co mm itm en t to w rk w Ald rid ge’ s m an age me nt & Boa rd t o de ve lop & e nh an ce t he C pa ny ’s valu ab le m in ing pr ope rtie s.” - Fa tih Be rk, C of ANT o ith om EO•••••• 10
  11. 11. Project Details AGM-VOpen pit project — volcanogenic massive sulphide (VMS) Zn-Pb-Cu-Au-Agdeposit. Robust economics as demonstrated by our PEASolid Resource Base — +24 Mt within an optimized open pit shell. This putsYenipazar in the 90th percentile of all known VMS deposits as far as sizeGreat Infrastructure — paved road next to the deposit, as well as access towater. Power and rail within approximately 20 kmUnique characteristic — Large ore mineral grains due to metamorphism –potentially more cost-efficient separation from host rock than usual VMS-depositsDeposit dimensions — roughly flat lying body should allow for flexible minesequencing 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 to the east and north of the deposit 11
  12. 12. Yenipazar Key Parametres AGM-VLarge land package — 100 km2 property that hasseen very limited exploration, level and low-relief,open terrain used predominantly for farming Typical VMS Mining Camps (Source: Geological Survey ofLocal support — Near-by village with pro-mining Canada)work force and strong community support.Agreement with Alacer — to earn 100 % interest.Alacer Minerals retains 6 % net proceeds interest(revenue minus operational cost) until a total revenueof US$165m, and 10% beyond that amountCommitment — Aldridge must deliver a feasibility toAlacer. There is no deadline, as long as Aldridgeworks diligently towards completing feasibility study 12
  13. 13. Scoping Study Highlights AGM-V (P&E Mining, February 2011)Base Case NPV US$209m & IRR of 23.2% at 7% discount rate• At 10% discount rate, NPV US$151m or $4.07per basic share, $2.92 a sharefully diluted• Base case uses 3-year trailing average metal prices and 4.5:1 strip including pre-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, 37m lbs.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 grades 23% with20 g/t gold & 337 g/t Ag•Project payback in 3.9 years. LOM average NSR US$57.27/t, LOM average totaloperating cost $29.65/t• At current metal prices (11/07/11) NPV of US$532m at 7% discount rate (NPV ofUS$431m at 10% discount rate) and IRR of 44%•*pre-tax numbers excluding the Alacer NPI 13
  14. 14. Scoping Study Lowlights AGM-VBase 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•Recoveries: Au 37%, Ag 57% - we expect to significantly improve on both ofthese• 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
  15. 15. Targeted Metallurgical Recoveries AGM-V & Production Revenue by MetalPEA Recoveries and Production Au (oz) Ag (oz) Cu (lbs) Pb (lbs) Zn (lbs) Au (oz) Zn (lbs) Pricing Assumptions (3 Yr Trailing as at 12/10/10) $1,007 $16.19 $2.95 $0.90 $0.86 18% 23% Estimated Recoveries (PEA) 36.8% 56.9% 76.6% 77.8% 58.8% Ag (oz) Avg Payable Prod 23,700 1,100,000 10,000,000 37,000,000 37,000,000 13% 10% Di s count Rt. 7% Di s count Rt. IRR Pb (lbs) NPV (US$m) $151 $209 23.2% 24% Cu (lbs) Share Price (Basic) $4.07 $5.63 22% Share Price (FD) $2.92 $4.04Targeted Potential Recoveries Au (oz) Ag (oz) Cu (lbs) Pb (lbs) Zn (lbs) Pricing Assumptions (3 Yr Trailing as at 12/10/10) $1,007 $16.19 $2.95 $0.90 $0.86 Zn (lbs) 20% Au (oz) Estimated Recoveries (Targeted) 70.0% 66.9% 76.6% 77.8% 65.5% 28% Avg Payable Prod 49,000 1,670,000 9,742,000 36,838,000 40,609,000 10% Di s count Rt. 7% Di s count Rt. IRR Pb (lbs) NPV (US$m) $381 $475 39.8% 19% Ag (oz) Share Price (Basic) $10.27 $12.80 16% Cu (lbs) Share Price (FD) $7.37 $9.19 17%Potential Recoveries at Spot Prices Au (oz) Ag (oz) Cu (lbs) Pb (lbs) Zn (lbs) Pricing Assumptions (Spot as at 11/7/11) $1,792 $35.00 $3.55 $0.90 $0.89 Zn (lbs) 15% Estimated Recoveries (Targeted) 70.0% 66.9% 76.6% 77.8% 65.5% Au (oz) Avg Payable Prod 49,000 1,670,000 9,742,000 36,838,000 40,609,000 Pb (lbs) 35% 13% 10% Di s count Rt. 7% Di s count Rt. IRR NPV (US$m) $850 $1,017 70.1% Cu (lbs) Share Price (Basic) $22.91 $27.41 14% Ag (oz) Share Price (FD) $16.44 $19.67 15 23%
  16. 16. Recent Metallurgical Improvements AGM-VBased on work done by G&T Metallurgical (Released Dec 1, 2011)• Improvement in TOTAL Au recovery to 76% (approx. 47% recovered to a Augravity “Pan” concentrate, 24% recovered to Cu conc., 5% recovered to Pb conc.)• Cu conc. graded 19.6% at recovery of 72% and contained 30.3 g/t Au (recovery of24%) and 482 g/t Ag (recovery of 15%)• Pb conc. graded 64.3% at a total recovery of 51% and contained 1111 g/t Ag (45%recovery) and 4.7 g/t Au (5% recovery)• Zn conc. graded 57.7% at a recovery of 77%• OPPORTUNITY OF IMPROVEMENT: in this latest round of testing, 24% of our totalAu and 20% of our total Ag ended up in the Cu cleaner tailings. We will examineways to get more of this “lost” Au and Ag to remain in the Cu conc., and also test todetermine if we can leach these tails to recover more gold and silver. We’ll also lookto improve the Pb recovery by examining operating mines with similar grades andmineralogy (such as Oz Minerals Rosebery Mine in Tasmania). 16
  17. 17. Yenipazar Property & Drill Hole Sites AGM-VExploration Drill Target 17
  18. 18. High-grade Intersections AGM-V 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 18
  19. 19. Recent Yenipazar Drilling News AGM-V 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 19
  20. 20. Feasibility Study - Consultants AGM-VJacobs Minerals Canada – part of Jacobs Engineering Group Inc. (NYSE: JEC), one of theworld’s largest & most diverse providers of technical, professional & construction services -US$10B market cap. Overseeing & coordinating feasibility study.P&E Mining – established geological & mine engineering consulting firm specializing in NI43-101 geological reports, resource estimate technical reports, preliminary economicanalysis and pre-feasibility studies. Commissioned to do resource update and mine design.Golder Associates – founded in 1960, a global company providing consulting, design, &construction services to clients in Mining, Oil & Gas, Manufacturing, Power, Transportation &more. Responsible for geotechnical studies.SGS UK – global leader & innovator in inspection, verification, testing & certificationservices. Responsible for Metallurgical test work.SRK Turkey – formed in 1974, with 1000+ professionals employed internationally,specializes in design & management of mineral exploration programs. Experienced inpreparing technical reports admissible for stock exchange purposes, mineral explorationproject audits and in the valuation of exploration projects. Recent projects in Africa, SouthAmerica, the Middle East, Asia and Europe. Preparing ESIA Study. 20
  21. 21. Yenipazar Mineralization AGM-V Large mineral grainsat Yenipazar allow for gravitational pre-enrichment 21
  22. 22. Favourable Terrain AGM-V Shallow topography is ideal for open pit construction 22
  23. 23. Future Milestones for Aldridge AGM-VComplete feasibility study at Yenipazar – Began in May 2011, targeting November 2012Complete an AIF – draft complete, working towards final document – To be filed concurrent with our audited annual financial statementsComplete a private placement with ANT Holding Anonim to secure funding for all our planned 2012 expenditures of approximatley C$10m – Targeting Q1 2012Release the results of the metallurgical portion of our feasiblity study – Targeting early Q2 2012Recommence exploration drilling at Yenipazar – Targeting mid-March 23
  24. 24. Aldridge PNG – The Kili Teke Discovery AGM-VAcquired a 338 sq. km license awarded in Feb 2009. Received 3 requests from majors to JV the property before any results publishedCollected 80 rock samples and 350 soil samplesDiscovered a very large Cu-Au porphyry & skarn system named Kili Teke• Two rock samples grading between 23% - 35% Cu with an average of 60 g/t Au and 238 g/t Ag;• Thirteen samples grading from 1.0% - 12.9% Cu with an average of 0.44 g/t Au and 3.8 g/t Ag;• 28 samples grading from 0.3% - 1.0% Cu with an average of 0.39 g/t Au and 3.8 g/t Ag. Also had one sample grade 9.1% zinc 24
  25. 25. Aldridge PNG License Area AGM-V ALDRIDGE MINERALS INC Exploration License_2009-2-18Base image source: PNG Mineral Resources Authority, Info-DVD distributed on PDAC 2009-3, Toronto 25
  26. 26. Aldridge PNG – 2011 Drill Program AGM-V January 31, 2012• Three holes were drilled to a depth of 441 meters• Overall drill results confirm the geophysical modeling• Drill Highlights: – Hole KT- KT-003 intercepted 134 meters grading 0.28% Cu and 0.37 g/t Au from a depth of 35 meters to 169 meters drilled at a 65 degree angle – Hole KT-002 intercepted 137 meters grading 0.11 g/t Au and 2.82 g/t Ag from surface drilled at a 55 degree angle• Plans to seek partners or transactions that will provide maximum value
  27. 27. Timeline – Advancing Ahead AGM-V 27
  29. 29. Directors & Management AGM-VMario Caron, CEO & DirectorJoined Aldridge Nov 2011. Mario is a mining executive with over 30 years of experience in the mining industry including board and management expertise in operations, exploration, and capital markets as well as government relations, from various international projects. He holds a Bachelor of Engineering degree in Mining from McGill University and is a member of the Quebec Order of Engineers and the Association of Professional Engineers of Ontario.Jacob Willoughby, PresidentJacob is a geologist with a Masters in Business Administration from the University of Windsor and became president of Aldridge in April 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. 29
  30. 30. Directors & Management AGM-VBarry Hildred, ChairmanMr. Hildred 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.Dr. Martin Oczlon, VP Exploration & 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. 30
  31. 31. Directors & Management AGM-VJohn 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.Daniella 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. 31
  32. 32. Directors & Management AGM-VEd Guimaraes, DirectorMr. Guimaraes 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 has worked 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.Jim O’Neill, CFOMr. ONeill, a CA with over 25 years of industry experience, brings a depth of knowledge from various international mining, project management 32