Emerging mining opportunities in Turkish Copper


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Objective Capital's Industrial Metals, Minerals & Mineable Energy Investment Summit 2011

Ironmongers' Hall, City of London
3 November 2011
Speaker: David Cliff, Empire Mining

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Emerging mining opportunities in Turkish Copper

  1. 1. INDUSTRIAL METALS, MINERALS& MINEABLE ENERGYINVESTMENT SUMMIT Emerging mining opportunities in Turkish Copper David Cliff – Empire MiningIRONMONGERS’ HALL, CITY OF LONDON THURSDAY, 3 NOV 2011www.ObjectiveCapitalConferences.com
  2. 2. EPC: TSX-V Emerging mining opportunities in Turkish Copper Empire Mining Corporation david@empireminingcorp.com 307 - 475 Howe Street Vancouver, BC V6C 2B3 CANADANovember 2011 www.empireminingcorp.com
  3. 3. DISCLAIMERThis presentation contains forward-looking information and statements, as defined by law including withoutlimitation Canadian securities laws and the "safe harbor" provisions of the US Private Securities Litigation ReformAct of 1995 (“forward-looking statements”), respecting the Company’s future plans respecting its mineral projects.Forward-looking statements involve risks, uncertainties and other factors that may cause actual results to bematerially different from those expressed or implied by the forward-looking statements, including without limitationthe availability of qualified workers; risks associated with exploration projects; dependence on third parties forservices; non-performance by contractual counterparties; title risks; financial ability of the company to proceed asplanned; force majeure; and general business and economic conditions. Forward-looking statements are based ona number of assumptions that may prove to be incorrect, including without limitation assumptions about: generalbusiness and economic conditions; the timing and receipt of required approvals; ability to procure equipment andsupplies; continued availability of licences; political stability; and ongoing relations with employees, partners andjoint venturers. The foregoing list is not exhaustive and we undertake no obligation to update any of the foregoingexcept as required by law.David Cliff is a Chartered Engineer and Member of the Institute of Materials, Metals and Mining and Fellow of theGeological Society and is the Qualified Person under National Instrument 43-101 for the projects discussed in thispresentation, however the historic or other figures presented herein are not NI 43-101 compliant. A qualifiedperson has not done sufficient work to classify the historical estimates as current mineral resources or mineralreserves, the Company is not treating the historical estimates as current mineral resources or mineral reserves asdefined by National Instrument 43-101, and the historical estimates should not be relied upon. 3
  5. 5. MANAGEMENT Directors and OfficersDavid Cliff - President & CEO, Director  26 years with Rio Tinto Exploration :former Exploration Manager, Europe;  Involved in the discovery of three gold and one copper deposit;  Extensive experience in the evaluation of mineral projects and in the negotiation of all forms of mining industry agreements.Robert Giustra – Chairman, Director  Engaged in creating, financing, developing and managing publicly traded companies since 1992;  Formerly an institutional sales broker with an international investment dealer;  President & CEO of Columbus Gold Corporation and Columbus Silver Corporation. Michael Johnson – Director  Former Chairman of Glebe Mines Ltd., the principal fluorspar-barytes mining company in Western Europe;  Holds (or has held) advisory positions with professional institutes, national governments, international agencies and funding organizations, including the World Bank and the UN (Environment Program);  External advisor on environmental matters to several international mining companies, including Rio Tinto and New Boliden-Outokumpu. Nick Clarke – Director  Former Managing Director of Oriel resources which developed the Voskhod chromite mine, Kazakhstan.  CEO of London based Central Asia Metals Ltd which has copper, gold and molybdenum assets in Kazakhstan and Mongolia; also a non-executive director of AIM-listed Sunkar Resources plc and Obtala Resources plc.  More than 40 years experience managing operations worldwide, including Anglogold Ashanti. 5
  6. 6. MANAGEMENT Management and Specialist AdvisorsDamyan Hristov – Business Development Manager  With Rio Tinto for 15 years in various roles.  Recently Project Leader Ore Reserves and Compliance.  Previously project and business administration for Rio Tinto in Turkey, including work on the Çöpler gold deposit.Yassen Khrischev – Exploration Vice-President  Exploration geologist with +15 years experience, especially within the SE Europe porphyry region;  International multi-commodity experience over 11 years with Rio Tinto;  Most recent experience with Newmont exploration for gold in Armenia.Professor Lirim Hoxha - Country Manager Albania  Over 50 years experience in ore deposit geology in Albania; 30 years at a senior level;  Former Director Department of Ore Deposits & Metallogeny, Geological Research Institute;  Former Deputy Director of the Albanian Geological Survey;  Specialist in the interpretation of thrust tectonics applied to ore geology.Aydin Şen – Exploration Manager advanced projects  With Rio Tinto for 6 years in various roles including work in Turkey, Mali and Mozambique.  Recent exploration management experience in Turkey with 3S and Mediterranean Resources. 6
  7. 7. (Reproduced from the Geo Center 1:800 000 scale map of Western Turkey.) TURKEY: BURSA Cu-Au-Mo EXPLORATION Location Map (Geo Center 1:800 000 scale map of Western Turkey) N • Easily accessed by road from Ankara via Eskişehir or from Istanbul via fast ferry to Yalova or Mudanya. • Good infrastructure; power, water, educated and skilled labour. Mining’ Area of interest tradition’. • Upland forest area; 500- 1700m elevation. 7
  8. 8. TURKEY Karapınar and Demirtepe copper projectsBURSA AGREEMENT WITH ANATOLIA MINERALS DEVELOPMENT (NOW ALACER GOLD): Option for 65% interest Effective Date Sept. 17, 2007. Annual conditions met; cash payment and transfer of Empire shares annually. In year 5 -> $280,000 + shares to 5% of EPC (w/ above) By end of year 5-> $7.5 million in expenditures + Technical Report by end of year 6 (2013)- complete pre-feasibility study. Expenditures to date -> $4,250 000 (Oct 31 2011) _____________________Agreed with ALACER: complete by 31/12/11 for100% transfer to Empire in exchange for 19.9% ofEmpire Mining. 8
  9. 9. BURSA DISTRICT: DEMIRTEPE AND KARAPINAR COPPER Exploration and development stage title Demirtepe Karapınar 9
  10. 10. KARAPINAR Drill Site KDH-006 Forested upland area, steep sided slope, enhanced grades above main water table based on partial secondary enrichment.Granodiorite hostedporphyry into marble withpotential forundiscovered skarns inaddition. 10
  11. 11. KARAPINAR Exploration history and key points Karapınar Project Exploration History Key Results Conclusions and OutcomesDrilled in 2003 by Rio Tinto Drillhole KDH 002 intersected Rio Tinto prioritised another AnatoliaExploration. Five holes for 221m (from surface) at 0.36% Minerals (Alacer) copper project in2096m. Cu, 0.1g/t Au, 51ppm Mo and, Turkey (Tunceli) and withdrew from from 273m after a dyke, 53m at the JV agreement in 2007. No further 0.31% Cu and 152ppm Mo. drilling. Property optioned late 2007 by Mineralisation in marble-hosted Empire Mining. granodiorite porphyryEmpire drilled six holes for Indications of enhanced grades Further drilling deferred due to1908m in 2008. close to surface including 99.7m financial crisis. Empire focused on at 0.5%Cu. Mineralogy showed Albanian chromite. secondary copper minerals to be responsible for enhanced Copper focus moved to Demirtepe near-surface grades. field work. Primary grades confirmed at about 0.3% CuEmpire drilled a further Drilling led to secondary Discovery of leached potassically-seven holes in 2011 for enrichment blanket beneath altered porphyry east of previously1380m. oxide copper with 60m at drilled area. 0.9% Cu. IP survey helps confirm concept of major porphyry body partially Combined oxide and enrichment concealed by marble roof pendant. zone at 0.63%Cu over 100m. Enrichment zone is possible pointer to large tonnage, higher grade porphyry. 11
  12. 12. KARAPINAR Phase I Drill Results 2008: recognition of supergene overprint Total Depth From To Intercept Hole No. Cu (%) Mo (%) Au (g/t) (m) (m) (m) (m)KDH-006 363.00 0.00 99.70 99.70 0.50 0.0071 0.10 138.70 227.00 88.30 0.23 0.0022 0.06KDH-007 380.50 5.50 133.20 127.70 0.31 0.0133 0.11 363.00 380.50 17.50 0.49 0.0112 0.07KDH-008 323.00 0.00 224.00 224.00 0.36 0.0110 0.08Including 20.00 141.00 121.00 0.47 0.0153 0.12Including 43.00 86.00 43.00 0.72 0.0114 0.18Including 43.00 68.00 25.00 1.01 0.0118 0.21Including 202.00 218.40 16.40 0.62 0.0056 NSKDH-009 278.00 19.00 206.60 187.60 0.34 0.0110 NSIncluding 75.00 113.60 38.60 0.57 0.0190 NSIncluding 97.90 113.60 15.70 0.77 0.0333 NSKDH-010 101.00 No Significant ResultsKDH-011 155.50 0.00 155.50 155.60 0.25 0.0148 NSIncluding 60.00 84.00 24.00 0.46 0.0314 NSTOTAL 1601.00 12
  13. 13. BURSA EAST: KARAPINAR Chalcopyrite Visible in KDH-006Drill hole KDH-006. Vuggy texture in Quartz, Pyrite, Chalcopyrite veinlet. 14
  14. 14. BURSA EAST: KARAPINAR Native Copper in KDH-008Drill hole KDH-008. Native Copper in Quartz vein at 29.5m 15
  15. 15. KARAPINAR 2011 Drill results; identification of leach zone/chalcocite To Cu Mo AuHole No Total Depth (m) From (m) Intercept (m) (m) (%) (%) (g/t) KDH-012 286.20 0.00 266.30 266.30 0.30 0.014 0.09 Including (chalcocite) 24.90 29.60 4.70 1.00 0.003 0.08 KDH-018 211.50 31.60 211.50 179.60 0.48 0.014 0.10 Including (oxide+ chalcocite) 31.60 139.60 108.00 0.63 0.010 0.11 Including (chalcocite) 79.60 139.60 60.00 0.93 0.017 0.11 Including (chalcocite) 79.60 96.00 16.40 1.16 0.021 0.13 Including (chalcocite) 121.00 139.00 18.60 1.30 0.020 0.09 KDH-013 250.30 0.00 150.60 150.60 0.26 0.002 0.09 Including (chalcocite) 111.20 123.20 11.90 0.38 0.005 0.06 Including (chalcocite) 111.20 115.80 4.60 0.55 0.004 0.05 KDH-014 100.00 9.90 21.80 11.90 0.19 0.005 0.05 KDH-015 86.10 20.00 51.70 31.70 0.42 0.004 0.13 KDH-016 134.50 0.00 134.50 134.50 0.30 - 0.10 KDH-017 208.50 No significant intercept (limestone). Needs to be deepened. 16
  16. 16. KARAPINARPart of chalcocite zone in DHH-018 17
  17. 17. KARAPINAR:Soil copper reflects porphyry but not leach/chalcocite area. Zone of subdued soil copper and no outcrop interpreted as leached porphyry 18
  18. 18. KARAPINAR:Geology and drilling; expansion potential. The Pebble analogy Expansion and higher Interpreted grade potential. IP roof pendant; done to check dolomitised area. 19
  19. 19. KAPAPINAR: CHARGEABILITY AT 1000m ASL Copper in soils (>300ppm) and drill holes Interpreted roof pendant KDH-018 60m thick N chalcocite enrichment Cross Sectionzone grading at 722612E 0 250m 0.93% copper 20
  20. 20. KARAPINAR:Chargeability profile and proposed drill test for primary Cu 21
  21. 21. KAPAPINAR: CHARGEABILITY AT 1000m ASL Proposed drill holes; Phase 1 (black), Phase 2 (red) Interpreted roof pendant KDH-018 60m thick N chalcocite Cross Section enrichment 0 250m 722612Ezone grading at 0.93% copperRed stippling indicates potassic alteration 23
  22. 22. KARAPINAR Anticipated technical milestones and costs Work Planned Milestones Cost ($)Complete reinterpretation work • Exercise Alacer option 1 400 000 • End 2011Drill 13 holes for 2660m • Extend copper resource 1 200 000 based on vectors;Initial process test work increased primary and extended secondaryEnvironmental baseline study copper potential • Process tests show goodOption to drill a further 3200m recovery characteristics (+1 500 000 based on more • EBS shows no drilling) environmental or community issues to date (mid-2012)Order of Magnitude study Decision to proceed to Estimated $5-6M feasibility study April 2013 24
  23. 23. DEMIRTEPE Drill site DHT-003aWollastonite-garnet and copper-gold-silver-molybdenum skarn 25
  24. 24. DEMIRTEPE Exploration History 1 (2004-2008) Demirtepe Project Exploration History Key Results Conclusions and OutcomesIdentified in 2004 by Rio Initial reconnaissance work Rio Tinto awaited award ofTinto/Anatolia JV as it lay showed a wollastonite skarn title.within Area of Interest. containing copper and gold mineralisation.September 2006 acquired by No work done by Rio Tinto after No follow-up by Rio Tinto,Anatolia on behalf of the JV the licence was acquired. who drilled three RC holesat state licence auction. on a nearby licence before withdrawing from the JV and Turkey in 2007. Property optioned late 2007 by Empire Mining. Soil geochemistry, rock Soil and rock geochemistry Work initially deferred in sampling and confirm copper-gold-molybdenum 2008 due to financial crisis. geophysics carried out soil anomaly over a 1000 by Empire focused on Albanian by Empire. Drilling 1500m area with Cu ranging from chromite until 2010. commenced in 124 to 12050ppm and Au from November 2007. 10ppb to 1.24g/t. Rocks from 0.28-1.06% Cu and higher values Field work within the bornite-wollastonite recommenced in 2010. skarn. 26
  25. 25. DEMIRTEPE Exploration history 2 (2009-Present) Demirtepe Project Exploration History Key Results Conclusions and Outcomes Initial drilling commenced Discovery hole DHT-001 Definition of Main Zone, which is cut November 2010 and intersected 47.35m at 2.02% Cu, by a low angle detachment fault at its completed in July 2011. 0.96g/t Au and 21.64g/t Ag base. Search commences for 36 holes drilled for including 8m at 9.1% Cu, 4.68g/t extensions to the southwest, based 8433m. Au and 95.3g/t Ag. on drillhole observations. Baseline EBS Further drilling gives Mineralisation is driven by as-yet commenced mid-2011. wollastonite-hosted copper and unidentified porphyry intrusion. gold continuity over 350m of strike and in corridor 100m Important and strategically-located across and to a depth of 150m, wollastonite deposit outlined termed the Main Zone. 21 of 27 (Hellingwerf report). holes in Main Zone are mineralisedNewly-identified Southwest Field work to the southwest reveals Southwest zone displays epithermalExtension a continuous Cu-Au anomaly characteristics and is believed to be currently about 1.8 km long and up closer to the porphyry body, which to 800 metres wide open to the does not appear to be exposed southwest; with elevated copper according to field mapping. levels in soils broadly coincident with elevated gold. Rock sampling results include 4.68% Cu, 5.58 g/t Au and 59.3 g/t Ag from wollastonite bearing boulders and 3.2% Cu in garnet skarn boulders 27
  26. 26. DEMIRTEPEWollastonite at outcrop 28
  27. 27. DEMIRTEPE WOLLASTONITE-GARNETA strategically-located source. A divestment opportunity. 29
  28. 28. DEMIRTEPE Initial Soil Geochemistry – CopperNorth Zone 500m Main Zone 30
  29. 29. DEMIRTEPE Soil Geochemistry - GoldNorth Zone 500m Main Zone 31
  30. 30. DEMIRTEPEOld mine workings. Inset sample of wollastonite and bornite 32
  31. 31. DEMIRTEPE Identified mineralised zones, drilling and copper in spoils DTH-001 DTH-002 47.35m @ 2.02% Cu 21m@3.05% and 0.96g/t Au Zn DTH-034 18.40m @ 2.26% Cu and 1.27g/t Au DTH-00734.6m @ 1.79% Cu and 0.75g/t Au DTH-018 23.6m @ 1.37% Cu and 0.56g/t Au DTH-012 15.1m @ 0.22% Mo 33
  32. 32. DEMIRTEPEType 1a/b) (best qualities) wollastonite in brown Demirtepe Main Zone Surface Projection of Wollastonite with Sulphide Mineralisation Copper (green) / Gold (red) Demirtepe Main Zone (and possibly N Zone) is detached by a basement fault. N 0 100m 34
  33. 33. DEMIRTEPE MAIN ZONELongitudinal section with Type 1a/1b) wollastonite and Cu/Au Average depth of basement fault 35
  34. 34. DEMIRTEPE Mineralisation styles. Mainly bornite and wollastoniteDTH-005 at 48.6m: 7.1% Cu, 2.49g/t Au, 105g/t Ag DTH-007 at 68.6m bornite, quartz- pyrite with 6.78g/t Au: epithermal overprint? DTH-005 at 107.4m: 6.6%Cu, 1.84g/t Au, 66g/t Ag Typical wollastonite-bornite mineralisation 36
  35. 35. DEMIRTEPEOld workings reflect mineralised zonesWorkings on SW Extension (left) below thecrest of the hill 1.2km from Main Zone.Considered to be the ‘hottest’ identified spotso far with epithermal mineralisation.Main Zone (below) close to drillholes 1 and 3. 37
  36. 36. Demirtepe Targets Northern Zone, Zn Anomaly Main Zone, Cu/Au Anomaly Southwest Zone, newly identified area under prospecting
  37. 37. DEMIRTEPE:Newly-discovered SW Extension copper in soil 39
  38. 38. Demirtepe SW Zone Mineralisation EPC: TSX-V Empire Mining Corporation 307 - 475 Howe Street Vancouver, BC V6C 2B3 CANADA www.empireminingcorp.com
  39. 39. DEMIRTEPE SW EXTENSION Old workings, copper bearing quartz float in silicaShattered and recrystallised limestone created by hydrothermal processes 41
  40. 40. DEMIRTEPE: SW Extension with IP linesMineralisation inprevious pictures 42
  41. 41. DEMIRTEPE Work plan and milestones against direct costs Planned work, milestones and cost estimates Work planned Plan Milestones Anticipated cost (US$) Update and audit database Create initial resource estimate for internal use, for Main Zone. prior to obtaining a NI43-101 compliant resource $550 000* Continue sampling the SW estimate. Completion; mid-end October 2011. Extension. Complete NI43-101 initial estimate, November 2011. IP/resistivity survey. Determine extension potential. Design drilling Convert licence 78161 to programme for Late November 2011. Operational status. Decide on options for carving out wollastonite and garnet. Exercise Alacer option (project share including $775 000 due diligence) Drilling; 6 holes for 1800 Extend the secondary copper mineralisation; $862 000** metres. Option (brackets) for determine vectors for higher grade primary (Optional follow-up in additional deep porphyry copper (gold and molybdenum). Completion, mid- event of deep porphyry holes: 4 holes for 2500 March (depending on start date and snow mineralisation: metres. conditions – alternatively, a start will have to be $625 000) made in April 2012). Update NI43-101 compliant resource estimate. Identified upside for 1Mt Initial process test work on contained Cu. main ore types. Process tests show good recovery $40 000 Environmental base line characteristics. study EBS and social feedback positive. Decision to $200 000 proceed to Order of Magnitude study. Mid 2012.Order of Magnitude study Decision to proceed to feasibility April 2013 OoM costs to be determined, but likely to be $5-6M*Assumes Alacer management on-cost to end December 2011 and includes already-committed costs for Q4.**Assumes salaries and overheads for 6 months of 2012. No contingency. 43
  42. 42. Empire Mining Corporation 307 - 475 Howe Street Vancouver, BC V6C 2B3 CANADAdavid@empireminingcorp.comwww.EmpireMiningCorp.com