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September 28, 2009
Table of Contents



Forward Looking Statements     3     Production                     14   Iberian
                    ...
Forward Looking Statements

This presentation contains certain “forward-looking statements” and “forward-looking informati...
Iberian– Key Messages

•   Base metals producer – copper, lead, and zinc concentrates with gold
    and silver credits
•  ...
Iberian - Key Goals

Continue to…
•       Maintain Condestable in steady state of production, with local and
        regio...
Iberian - Corporate Summary

•   Toronto Venture Exchange listed: IZN
•   Headquartered in Toronto, with offices in Geneva...
Price / Net Asset Value




                                                                                              ...
Iberian - Capital Structure

    Balance Sheet (in '000s)                     30-Jun-09
    Cash                          ...
Condestable Mine - Location



•   Consists of two mines– Condestable and Raul.
                                          ...
Condestable Mine – Key Facts


•   5th largest copper producer in Peru
•   2009 treatment target – 2,215,000mt, with 1.24%...
Condestable Mine




11
Condestable Mine - Plan view of Infrastructure




Condestable                                    Raul Mine
   Mine
      ...
Condestable Mine – Reserves & Resources


    Mineral Resources as at June 30, 2008

    Classification                   ...
Condestable Mine - Production
              Production          Unit       April         May      June      Q2      Year t...
Condestable Mine - Exploration Concessions

                              Condestable concessions
                        ...
Condestable Mine – Local Exploration

              VINCHO ESTE PROJECT; 2009
                Exploration area 150 HA

   ...
Condestable Mine – District Exploration

Condestable 10

                                                       CONDESTABL...
Aguas Tenidas Mine - Location


•   Located in the Andalucia
    province of Huelva in southwest
    Spain, Aguas Tenidas ...
Aguas Tenidas Mine – Key Facts
•   New NI 43-101 report for the Aguas Tenidas Mine – outlines plans to target
    2.2mtpa ...
Aguas Tenidas Mine




20
Aguas Tenidas Mine – Process Plant Aerial View




             21
Aguas Tenidas Mine – Reserves

     Aguas Tenidas – Proven and Probable Mineral Reserves at 30th June, 2009


            ...
Aguas Tenidas Mine – Resources
          Aguas Tenidas – Measured and Indicated Mineral Resources at 30th June, 2009


   ...
Aguas Tenidas Mine – Inferred Resources

             Aguas Tenidas – Inferred Mineral Resources at 30th June, 2009

     ...
Aguas Tenidas Mine - Mineralization


Zn/Pb/Cu Massive Sulphides




                                                    C...
Aguas Tenidas Mine – Life of Mine 2009-1018

                              Ore            2009 2010 2011 2012 2013 2014 20...
Aguas Tenidas Mine - LOM Processed Ore & Key Ore Grades
                                                    Processed Ore ...
Aguas Tenidas Mine – LOM Metal Production (tonnes metal)

                                          Metal Production Life-...
Aguas Tenidas Mine – 2010 Unit Operating Cost Breakdown

                  OPERATING COST ESTIMATE 2010
        Area      ...
Aguas Tenidas – MATSA Mining Rights

Aguas Tenidas




           30
Iberian - Finances


Key Points
•   Consolidated Reserves 29Mt +
•   MATSA Resources 27Mt + (CMC replaces annually)
•   Pr...
Iberian - Capex 2009/2010

Aguas Tenidas Capex 2009/2010:
                             Mine Infrastructure               k...
Iberian – Hedging
The cornerstone of Iberian's Hedging Policy is the protection of the Company's
assets. Hedging activity ...
Iberian – Hedging


Aguas Tenidas Mine hedges are as follows:

         MATSA
         As at Sep. 30/09

                 ...
Trafigura – Available Support



•   Leverage – project and debt funding
•   Expertise in hedging commodities and currenci...
Future Plans - Criteria



• Targets in the base metals space
• Focus on copper, zinc, lead with potential interest in nic...
Board of Directors

Norman Brewster P.Geo, Chairman of the Board, Director – Norman is a geologist who
   joined IZN in 20...
Management

Daniel Vanin – P.Eng, President & CEO – Daniel has worked in the mining industry for over 30
         years an...
Photo Gallery - Condestable




         Plant & Concentrator                        Crushed ore




Underground          ...
Photo Gallery – Aguas Tenidas




Underground                   Plant and ore stockpiles                           Undergr...
Photo Gallery – Aguas Tenidas




                                 Process Plant




                                     ...
Iberian




Appendix
Condestable Mine - Tailings

Tailings Dam 4
             8,606 400 m3                                                 Tail...
Condestable Mine – Raul model view




                                    OPEN PIT RAUL


RP PRINCIPAL
                  ...
Aguas Tenidas Mine – Plan Section




                                                          X = 690380

Plan view of A...
Aguas Tenidas Mine – Long Section




                                                                X = 690380


Long se...
Aguas Tenidas Mine – Mine Overview & Design




           A-6
Aguas Tenidas Mine – Overview & Stopes




      Legend
COB       : Red
POL       : Blue
CSW       : Green




           ...
Aguas Tenidas – Typical Stoping Method & Sequence




                 A-8
Aguas Tenidas – Typical Stoping Method & Sequence
SOUTH-NORTH SECTION                      WEST-EAST SECTION




         ...
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Transcript of "Iberian Sept 2009 Presentation"

  1. 1. September 28, 2009
  2. 2. Table of Contents Forward Looking Statements 3 Production 14 Iberian Exploration 15-17 Finances 32 Iberian Capex 32 Key Messages 4 Aguas Tenidas Mine Hedging 33-34 Key Goals 5 Location 18 Trafigura 35 Corporate Summary 6 Key Facts 19 Future Plans 36 P/NAV 7 Aguas Tenidas Mine 20 Board of Directors 37 Capital Structure 8 Process Plant Aerial View 21 Management 38 Reserves & Resources 22-24 Photo Galleries 39-41 Condestable Mine Mineralization 25 Location 9 Life of Mine Details 26-28 Appendix Key Facts 10 2010 Unit Operating Cost 29 Condestable - Tailings Condestable Mine 11 Breakdown Condestable - Raul model view Plan View of Infrastructure 12 MATSA Mining Rights 30 Aguas Tenidas - Sections Reserves & Resources 13 Aguas Tenidas - Mine Overview & Design 2
  3. 3. Forward Looking Statements This presentation contains certain “forward-looking statements” and “forward-looking information” under applicable securities laws. Except for statements of historical fact, certain information contained herein constitutes forward-looking statements. Forward-looking statements are frequently characterized by words such as “plan”, “expect”, “project”, “intend”, “believe”, “anticipate”, “estimate”, and other similar words, or statements that certain events or conditions “may” or “will” occur. Forward looking information may include, but is not limited to, statements with respect to the future financial or operating performances of the Corporation, its subsidiaries and their respective projects, the timing and amount of estimated future production, estimated costs of future production, capital, operating and exploration expenditures, the future price of copper, gold and zinc, the estimation of mineral reserves and resources, the realization of mineral reserve estimates, the costs and timing of future exploration, requirements for additional capital, government regulation of exploration, development and mining operations, environmental risks, reclamation and rehabilitation expenses, title disputes or claims, and limitations of insurance coverage. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are based on a number of assumptions and subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. Many of these assumptions are based on factors and events that are not within the control of the Corporation and there is no assurance they will prove to be correct. Factors that could cause actual results to vary materially from results anticipated by such forward-looking statements include changes in market conditions and other risk factors discussed or referred to in the section entitled “Risk Factors” in the Corporation’s annual information form dated April 30, 2009. Although the Corporation has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. The Corporation undertakes no obligation to update forward-looking statements if circumstances or management’s estimates or opinions should change except as required by applicable securities laws. The reader is cautioned not to place undue reliance on forward-looking statements. Unless otherwise stated, the information contained in this presentation is as of September 25, 2009. 3
  4. 4. Iberian– Key Messages • Base metals producer – copper, lead, and zinc concentrates with gold and silver credits • Small peer group for investors • Two mines in stable countries of operation (Peru and Spain) • Project debt at Aguas Tenidas paid off • Upside in both mines, and in exploration • Goal for future growth, with plans to be multi-mine • Unique story for investors “Growing Iberian Minerals as a major iconic name in the base metals industry” 4
  5. 5. Iberian - Key Goals Continue to… • Maintain Condestable in steady state of production, with local and regional exploration • Aguas Tenidas commercial production in Q4, and 30% planned production increase in 2010/2011 • Complete polymetallic modification by end of 2009 • Corporate and asset opportunities - base metals in North/South America or Europe/Middle East/Africa region • Structure hedging/financial transactions for best group benefits • Leverage the Trafigura relationship • Focus on key values for social and environmental responsibilities • Focus on broad recognition ...and above all, to enhance value for all shareholders. 5
  6. 6. Iberian - Corporate Summary • Toronto Venture Exchange listed: IZN • Headquartered in Toronto, with offices in Geneva, Lima and Seville • Domiciled in Switzerland, creating a unique opportunity for the Iberian Group of companies to optimize the structure of future transactions • Operations in Peru and Spain • More than 2,000 employees and 200 contract workers worldwide • Strong management and operations teams • Excellent environmental, social and safety record • P/NAV Compelling 6
  7. 7. Price / Net Asset Value 0.00x 0.10x 0.20x 0.30x 0.40x 0.50x 0.60x 0.70x 0.80x 0.90x 1.00x 1.10x 1.20x 1.30x 1.40x Inca Pacific Chariot Iberian Anvil Mining Candente Producers Developers Canadian Royalties Corriente FNX Farallon Augusta Taseko 7 Lundin Breakwater Equinox PolyMet First Quantum Quadra Source: Bloomberg as at September 24, 2009; NAVs based on research analyst consensus. Mirabela Nickel Capstone Mining Hudbay Inmet Teck Resources Katanga Mining Iberian – Price to Net Asset Value Comparison
  8. 8. Iberian - Capital Structure Balance Sheet (in '000s) 30-Jun-09 Cash 34,000 Restricted Cash 3,200 Total Assets 565,000 Long Term Debt 45,300 Convertible Debenture 24,100 Total Debt (app) 130,000 Shareholder's Equity 226,700 Common Shares 338.3M Warrants 7.6M IZN three month chart Options 10.1M Debenture1 30.0M Fully Diluted 385.9M 52 week range $0.94 - $0.19 Month range (August) $0.39 - $0.52 Market Cap August 31 $131.9M Major Shareholder Average daily volume (3 mo) 586,216 Trafigura Beheer B.V 45.93% 1 $25M convertible debt held by Dundee Resources, bearing interest at 6% and convertible at $1.25 maturing July 26, 2011 with an interest rate of 6% payable semi-annually. Convertible at Dundee’s option at any time, in whole or in part, into units of the Company at a conversion price of $1.25 per unit. Each unit will be comprised of one common share and one-half of a warrant, each warrant being exercisable into one common share at $2.00 for a period of two years. 8
  9. 9. Condestable Mine - Location • Consists of two mines– Condestable and Raul. Lima • located 90km from Lima, with excellent access to infrastructure • Copper mineralization at Condestable occurs in stratiform sulphide-rich replacement bodies (mantos) and crosscutting sulphide Condestable bearing quartz veins Mine • Acquired in early 2008, IZN holds 98.7% ownership 9
  10. 10. Condestable Mine – Key Facts • 5th largest copper producer in Peru • 2009 treatment target – 2,215,000mt, with 1.24% Cu head grade • 2009 Annual Production Target: 96,400mt of copper concentrates with 26% Cu grade • Optimized at 6000+ tonnes processed per day • Low direct costs due to minimal ground support and no required backfilling • Historically replaced reserves each year with a comprehensive underground drilling program, performed by company personnel • New 3 year collective labour agreement signed January 2009 10
  11. 11. Condestable Mine 11
  12. 12. Condestable Mine - Plan view of Infrastructure Condestable Raul Mine Mine Mill Offices Tailings Dam #1, Tailings Dam #4 2 and 3 12
  13. 13. Condestable Mine – Reserves & Resources Mineral Resources as at June 30, 2008 Classification 000's tonnes %Cu Measured 5,246 1.76 Indicated 2,433 1.82 Total Measured & Indicated 7,679 1.77 Inferred 8,806 1.24 Proven and Probable Reserves as at June 30, 2008 000’s tonnes % Cu Proven 6,696 1.27 Probable 3,120 1.30 Total Proven & Probable 9,816 1.28 Stocks (Proven) 262 0.80 Total for Mining Plan 10,078 1.27 Extracted from SRK Consulting 43-101 Technical Report dated January 2009 13
  14. 14. Condestable Mine - Production Production Unit April May June Q2 Year to 2009 Date 2009 Concentrate DMT 7,509 8,596 8,204 24,309 48,649 Contained copper t 1,818 2,092 2,063 5,973 12,087 Fine gold oz 1,315 1,507 1,592 4,414 9,072 Fine silver oz 17,692 20,667 21,143 59,502 121,199 Production – First 6 Months 2009 • C1 and C3 costs $0.47/lb and $1.07/lb • Q2 Recovery rate of 91%, and an average head grade of approximately 1.23% copper • Capital projects completed 2009 - Two new six-yard scooptrams, one diamond drill, mill spares (main power transformer and ball mill motor) and completion of the automated plant monitoring and control system. $4.7M announced for the year. Of this, acquisitions of $3.6M are complete, with $2.9M already onsite. 2008 - New primary crusher, improved tailings thickener, lesser dependence on fresh water wells • Sustaining Capex 2010 in range of $4-5M 14
  15. 15. Condestable Mine - Exploration Concessions Condestable concessions Raul concessions Local exploration concessions District exploration concessions CONCESSIONS Number Size (Ha) Raul concessions 43 6,600 Condestable concessions 3 1,960 Local exploration concessions 16 4,600 District exploration concessions 47 33,560 Total 109 46,720 Results from the most recent Vinchos 5 KM Este drill program are expected at the end of September, 2009. 5 KM Iberian has exploration planned for 2010, on concessions surrounding the mine and regionally. 15
  16. 16. Condestable Mine – Local Exploration VINCHO ESTE PROJECT; 2009 Exploration area 150 HA RAUL-CONDESTABLE PROJECT; 2009 Exploration area 127 HA SAN MARCOS PROJECT; 2009 – 2010 Exploration area 300 HA VINCHO SUR PROJECT; Stand By Exploration area 150 HA PACAY PROJECT; Stand By Exploration area 300 HA 16
  17. 17. Condestable Mine – District Exploration Condestable 10 CONDESTABLE 10 Condestable 27 Exploration area 500 HA 10 KM CONDESTABLE 27 Condestable 53 Exploration area 900HA CONDESTABLE 53 Exploration area 600 HA mine 17
  18. 18. Aguas Tenidas Mine - Location • Located in the Andalucia province of Huelva in southwest Spain, Aguas Tenidas is 100% owned by MATSA, a wholly owned Spanish subsidiary of IZN • Aguas Tenidas is 80km from Huelva, which contains a major port facility and smelter • Historically a producing mine, Aguas Tenidas was re-discovered in the 1980’s • The deposit is part of a roughly east-west striking chain of VMS deposits • MATSA currently has more than 400 company employees and more than 200 contract workers on site 18
  19. 19. Aguas Tenidas Mine – Key Facts • New NI 43-101 report for the Aguas Tenidas Mine – outlines plans to target 2.2mtpa production • Purchased the underground division of Insersa, giving the Company control • 5 year underground mining operating permit (including blasting) for production ore • Permanent process plant permit covering the life of mine • Grant documentation finalized and presented - €10,092,472 • Copper and polymetallic circuits are operational • Metallurgic recoveries for copper meet or exceed expectations • Polymetallic circuit converted to copper/lead bulk and zinc concentrate • Further optimization of the polymetallic circuit underway – completion in Q4 • Commercial production target Q4 • Exploration potential on strike and in vicinity • Large Exploration potential in JV with Cadillac Ventures 19
  20. 20. Aguas Tenidas Mine 20
  21. 21. Aguas Tenidas Mine – Process Plant Aerial View 21
  22. 22. Aguas Tenidas Mine – Reserves Aguas Tenidas – Proven and Probable Mineral Reserves at 30th June, 2009 Reserve Category Total Tonnes MT Proven 4.85 Probable 14.36 Total 19.21 Cupriferous Polymetallic Reserve Category Tonnes Cu % Zn % Pb % Ag g/t Au g/t NSR Tonnes Cu % Zn % Pb % Ag Au g/t NSR Mt Euro/t Mt g/t Euro/t Proven 2.41 2.16 0.80 0.17 21.90 0.30 70.90 2.44 0.87 6.48 1.86 62.90 0.87 82.20 Probable 6.40 2.32 0.99 0.24 28.20 0.43 77.80 7.96 1.28 6.48 1.98 70.80 0.78 101.50 TOTAL 8.81 2.27 0.94 0.22 26.50 0.40 75.90 10.40 1.19 6.48 1.95 69.00 0.80 97.00 Note – In determining mining reserves, reserves were blocked out on the basis of contained NSR value, with reference to the combined stoping and processing costs. The NSR values were calculated using metal prices of $4.500/t Cu, $1,650/t Zn, $1,650/t Pb, $12.50/oz Ag, $750/oz Au. Copper ore is split approximately 82% : 18% Cupriferous : Stockworks Extracted from Report 43-101 Technical Report on the Mineral Resources and Reserves of the Aguas Tenidas Mine Project – Spain, Prepared for Iberian Minerals Corp. by Adam Wheeler, 11 September 2009 22
  23. 23. Aguas Tenidas Mine – Resources Aguas Tenidas – Measured and Indicated Mineral Resources at 30th June, 2009 Combined Resources Class Total Tonnes Mt Measured 11.72 Indicated 15.78 Total 27.5 Resource Category Mt Cu (%) Zn (%) Pb (%) Ag (g/t) Au (g/t) Cupriferous Type Notes: Measured 5.40 1.9 0.9 0.2 23.0 0.4 - Measured and indicated resources shown are inclusive of reserves Indicated 6.76 2.4 1.1 0.3 32.1 0.5 - Mineral Resources were evaluated using the Total M & I 12.16 2.2 1.0 0.2 28.1 0.4 following cut-off grades: Polymetallic Type - Polymetallic 3% Zn - Cupriferous 1% Cu Measured 5.39 0.6 6.7 1.8 56.3 0.8 - Stockworks 1% Cu Indicated 7.13 1.3 7.8 2.3 80.1 0.8 Total M & I 12.52 1.0 7.3 2.1 69.8 0.8 Stockworks Extracted from Report 43-101 Technical Report on the Mineral Resources and Reserves of the Aguas Tenidas Mine Project – Spain, Measured 0.93 2.0 0.3 0.1 9.4 0.1 Prepared for Iberian Minerals Corp. by Adam Wheeler, 11 Indicated 1.89 1.7 0.1 0.1 6.1 0.1 September 2009 Total M & I 2.82 1.8 0.2 0.1 7.2 0.1 23
  24. 24. Aguas Tenidas Mine – Inferred Resources Aguas Tenidas – Inferred Mineral Resources at 30th June, 2009 Total Inferred Resources Total Tonnes Mt 10.62 Class Mt Cu % Zn % Pb % Ag g/t Au g/t Cupriferous Main Zone 1.34 3.52 0.61 0.08 23.00 0.44 Western Extension 6.25 1.99 1.51 0.50 37.70 0.67 Total 7.59 2.26 1.35 0.42 35.10 0.63 Polymetallic Main Zone 0.87 1.24 10.33 2.63 111.20 0.88 Western Extension 1.94 1.64 4.00 1.31 64.70 0.56 Total 2.81 1.52 5.96 1.72 79.10 0.66 Stockworks 690800-691060 0.22 1.38 0.05 0.02 4.60 0.03 Notes: - Measured and indicated resources shown are inclusive of reserves - Mineral Resources were evaluated using the following cut-off grades: - Polymetallic 3% Zn - Cupriferous 1% Cu - Stockworks 1% Cu Extracted from Report 43-101 Technical Report on the Mineral Resources and Reserves of the Aguas Tenidas Mine Project – Spain, Prepared for Iberian Minerals Corp. by Adam Wheeler, 11 September 2009 24
  25. 25. Aguas Tenidas Mine - Mineralization Zn/Pb/Cu Massive Sulphides Cu Massive Sulphides Cu - Stockwork 25
  26. 26. Aguas Tenidas Mine – Life of Mine 2009-1018 Ore 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Total kt 641 1,180 1,369 1,284 1,287 825 781 798 538 305 8,810 (Massive Sulplide & Copper Stockwork) Copper Ores % Cu 2.06 2.07 2.22 2.21 2.31 2.40 2.51 2.57 2.23 2.09 2.27 % Zn 0.71 0.96 1.14 1.07 0.58 1.04 0.91 0.84 0.98 1.24 0.94 % Pb 0.17 0.20 0.25 0.23 0.12 0.25 0.25 0.25 0.30 0.38 0.22 Ag 21.5 24.2 27.2 24.9 19.3 27.7 32.4 30.0 34.7 33.9 26.5 (g/t) kt 254 748 833 939 951 1,375 1,419 1,402 1,662 913 10,399 Polymetallic Ore % Cu 1.00 0.93 1.03 1.22 0.94 1.19 1.27 1.24 1.33 1.30 1.19 % Zn 5.26 6.05 5.89 4.82 6.66 6.68 6.51 6.92 6.97 7.05 6.48 % Pb 1.11 1.62 1.58 1.43 2.08 1.92 2.04 2.13 2.24 2.20 1.95 Ag 45.2 58.2 63.4 57.9 64.8 66.1 71.5 73.3 78.2 76.1 69.0 (g/t) Total Ore (kt) 900 1,928 2,202 2,223 2,238 2,200 2,200 2,200 2,200 1,218 19,209 Years 2010 to 2018 Based on Table 19-3 Page Nº 110 NI 43-101 Technical Report Sept 11th, 2009 26
  27. 27. Aguas Tenidas Mine - LOM Processed Ore & Key Ore Grades Processed Ore LOM 2,500,000 8.0% 835,000 935,000 1,370,000 1,425,000 1,400,000 1,665,000 950,000 7.0% 740,000 7.0% 2,000,000 6.6% 6.7% 6.5% 6.9% 7.0% 6.0% 5.9% 5.9% 5.0% 1,500,000 5.3% 4.8% Tms 1,365,000 4.0% 1,295,000 1,265,000 1,250,000 817,000 1,000,000 253,550 2.5% 2.6% 3.0% 2.3% 2.4% 2.3% 2.2% 2.2% 2.1% 2.0% 800,000 2.2% 2.0% 830,000 775,000 500,000 610,142 535,000 1.0% 85,000 0 0.0% 2,009 2,010 2,011 2,012 2,013 2,014 2,015 2,016 2,017 2,018 Polymetallic Copper %Cu Cupriferous %Zn Polymetallic 27
  28. 28. Aguas Tenidas Mine – LOM Metal Production (tonnes metal) Metal Production Life-of-Mine 100,000 90,000 91,126 80,000 77,448 75,275 74,973 70,000 60,000 Tms 50,000 50,848 49,164 40,000 44,554 43,860 42,104 30,000 29,975 30,182 28,424 27,438 27,923 25,382 26,648 20,000 24,037 16,092 15,532 19,587 10,000 14,560 9,436 9,879 8,233 8,225 8,324 5,454 7,175 7,462 0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Copper Lead Zinc Cu in Bulk 28
  29. 29. Aguas Tenidas Mine – 2010 Unit Operating Cost Breakdown OPERATING COST ESTIMATE 2010 Area $US/t Mining 22.79 Labour 8.41 Contract 2.75 Power 1.14 Consumables 10.50 Process Plant 19.39 Labour 3.45 Electrical Power 4.25 Reagents 4.56 Grinding Media 3.22 Other Consumables 3.07 Tailings 0.84 Paste Plant 0.53 General & Administration 6.85 Total Operating Cost 49.57 • C1 + C3 costs will be available after commercial production 29
  30. 30. Aguas Tenidas – MATSA Mining Rights Aguas Tenidas 30
  31. 31. Iberian - Finances Key Points • Consolidated Reserves 29Mt + • MATSA Resources 27Mt + (CMC replaces annually) • Production 2010 (est): 50,000t+ copper, 42,000t+ zinc & 5,400t+ lead • No project debt • Flexibility in dealing, with no bank covenants/restrictions • Bought deal financing completed in May 2009 - $40M • Current funding of $20-30M to be debt financed • No planned equity financing • SocGen $70M facility at Condestable balance, at June 30, 2009 approximately $52M; being repaid at $6M per quarter • Trafigura NPI at Condestable (46% of net profits 2011-2014) is in range of US $11M (assuming current year figures) 31
  32. 32. Iberian - Capex 2009/2010 Aguas Tenidas Capex 2009/2010: Mine Infrastructure k$ (8,314,759) (10,840,788) Mine Projects k$ (9,648,104) (778,400) Mine Equipment k$ (12,010,143) (2,545,200) Drillings: Mine k$ (2,169,694) 0 Drillings: Surface k$ 0 (1,008,000) Sulphides Plant k$ (36,022,846) 0 Plant Projects k$ (11,257,172) (2,819,250) Paste Backfill Plant k$ (4,962,952) (84,000) Plant Maintenance Workshop k$ 0 0 Electrical Installations k$ (408,664) 0 Buildings, Infrastructure k$ (1,634,703) (280,000) Tailings k$ (1,215,372) (5,271,360) Communications k$ (292,477) (280,000) License k$ (1,218,000) (1,289,070) Safety k$ (311,420) 0 Spare parts k$ 0 0 INSERSA k$ (9,450,000) 0 Others k$ 69,610 0 Total k$ (98,846,697) (25,196,068) 32
  33. 33. Iberian – Hedging The cornerstone of Iberian's Hedging Policy is the protection of the Company's assets. Hedging activity and monitoring is overseen by the Company's Hedging Committee. The Hedging Committee continually reviews the markets in which the Company trades, and depending on circumstances, decides if any additional or altered hedging is appropriate to enhance the future cash flow of the Company’s operations, and protection of the Company’s assets. Condestable Mine hedges are as follows: CMC As at Sep. 30/09 Copper Q4 2009 2010 2011 Q1 2012 % of hedgeable 87 89 89 31 tonnes 5000 20475 20625 1750 Avg. Price 4419 4419 3494 3408 Gold Q4 2009 2010 2011 Q1 2012 % of hedgeable 14 14 14 0 ounces 600 2400 2400 0 Avg. Price 741 741 741 0 Silver NO POSITIONS 33
  34. 34. Iberian – Hedging Aguas Tenidas Mine hedges are as follows: MATSA As at Sep. 30/09 Q4 Copper 2009 2010 2011 Copper calls sold % of hedgeable 30 77 0 2010 5175 t @ $4,200 tonnes 1325 20100 0 Avg. Price 6100 4116 0 Q4 Zinc 2009 2010 2011 Zinc calls sold % of hedgeable 0 51 0 2010 4900 t @ $1,500 tonnes 0 17350 0 Avg. Price 0 1418 0 NO OTHER POSITIONS IN OTHER METALS 34
  35. 35. Trafigura – Available Support • Leverage – project and debt funding • Expertise in hedging commodities and currencies • Off-take agreements – single customer at benchmark/spot • Board expertise – Jeremy Weir and Jesus Fernandez, with invaluable global insight (2 of 7 board members) • Traditionally supportive in financing requirements 35
  36. 36. Future Plans - Criteria • Targets in the base metals space • Focus on copper, zinc, lead with potential interest in nickel • Mid size with ideally a minimum of 25kt annual production of copper equivalent units • Assets preferably in in North/South America or Europe/Middle East/Africa region • Producing (preferable) or (second choice) near production stage with at least a completed bankable feasibility study • Corporate merger or asset acquisition 36
  37. 37. Board of Directors Norman Brewster P.Geo, Chairman of the Board, Director – Norman is a geologist who joined IZN in 2002. He also sits on the board of Cadillac Ventures Inc. Philippe Blavier, Director – Philippe is Chairman of the Company’s Audit Committee and a member of the Remuneration Committee of the Company. He has extensive experience at BNP Paribas, where he was Head of Corporate & Investment Banking and Member of the Executive Committee. Jesus Fernandez, Director – Jesus has been part of the Trafigura team since 2004 as Manager of the Corporate Finance team, with an emphasis on mining and downstream oil project investments. He joined IZN’s board in 2008. L. Jack Gunter, P.Eng, FIMM, Director – Jack has over 45 years experience in the mining industry. He has worked previously with Rio Tinto and Phelps Dodge, and also sits on the board of Galantas Gold Corp. Murray John, Director – Murray is an engineer with more than 25 years experience in the resource industry. He is currently the President & CEO of Dundee Resources. Jeremy Weir, Director – Jeremy works as Executive Director and Manager at Trafigura, where he has also been head of the metals derivatives trading structured products and risk management departments. Daniel Vanin, Director – Daniel is the President and CEO of Iberian. 37
  38. 38. Management Daniel Vanin – P.Eng, President & CEO – Daniel has worked in the mining industry for over 30 years and has strong international mine development and management skills with extensive experience in Canada, South America, Africa and Russia. He is a professional mining engineer and graduated from McGill University, Montreal, in 1975. Most recently, Daniel was Executive VP & Chief Operating Officer at High River Gold. Prior to that, he was Chief Executive Officer of RBG Resources Plc, in Bolivia, where he managed all operations, project development and construction at the Vinto smelter and Huanuni tin mine. David Poynton, Senior Vice-President, General Counsel and Corporate Secretary - David is a lawyer with more than 20 years experience in private practice with public companies, private entrepreneurs and the non-profit sector, with a particular emphasis on, and understanding of the mining industry. David acted as primary counsel to many TSX and TSX-V issuers before joining Iberian in January 2009. Jeff Hillis, CFO - Mr. Hillis joined Iberian in June 2009. He has worked in the mining industry for over 5 years in progressively more senior finance and reporting positions. He most recently served as CFO of a TSX listed mining company based in Toronto. Jeffrey is a Chartered Accountant (Ontario, 2001). He worked for three years in the audit group of Ernst & Young with major clients in the mining industry. 38
  39. 39. Photo Gallery - Condestable Plant & Concentrator Crushed ore Underground Copper flotation Fico Ramp underground 39
  40. 40. Photo Gallery – Aguas Tenidas Underground Plant and ore stockpiles Underground Aguas Tenidas View of the two stockpiles 40
  41. 41. Photo Gallery – Aguas Tenidas Process Plant Ball & SAG mills Concentrates awaiting shipping Paste plant 41
  42. 42. Iberian Appendix
  43. 43. Condestable Mine - Tailings Tailings Dam 4 8,606 400 m3 Tailings Dam N°4 Dam Limit (life: 6 years) 3 Total capacity 8,606,400 m 3 Accumulated to Jul-09 1,444,580 m Current Difference 7,161,820 m 3 3 Volume per month 100,000 m Life of the Tailings Dam 6.0 years Plant Thickener Tailings Dam 4 Tailings Dams 1,2 and 3 A-1
  44. 44. Condestable Mine – Raul model view OPEN PIT RAUL RP PRINCIPAL RP FICO LV +20 LV -20 LV -55 LV -95 LV -130 LV -175 LV -215 LV -255 DEEPENING KARINA VEIN A-2
  45. 45. Aguas Tenidas Mine – Plan Section X = 690380 Plan view of Aguas Tenidas Resource Limits from Adam Wheeler 43-101 A-4
  46. 46. Aguas Tenidas Mine – Long Section X = 690380 Long section view of Aguas Tenidas Resource Limits from Adam Wheeler 43-101 A-5
  47. 47. Aguas Tenidas Mine – Mine Overview & Design A-6
  48. 48. Aguas Tenidas Mine – Overview & Stopes Legend COB : Red POL : Blue CSW : Green A-7
  49. 49. Aguas Tenidas – Typical Stoping Method & Sequence A-8
  50. 50. Aguas Tenidas – Typical Stoping Method & Sequence SOUTH-NORTH SECTION WEST-EAST SECTION Stope Slot Raise Slot Gallery W and E LOS Rings Down Access Gallery A-9
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