Objective Capital's Industrial Metals, Minerals & Mineable Energy Investment Summit 2011
Ironmongers' Hall, City of London
3 November 2011
Speaker: Nick Tintor, Ferrum Americas Mining
Building the iron dragon: exploring for iron ore in Bolivia
1. INDUSTRIAL METALS, MINERALS
& MINEABLE ENERGY
INVESTMENT SUMMIT
IRONMONGERS’ HALL, CITY OF LONDON ● THURSDAY, 3 NOV 2011
www.ObjectiveCapitalConferences.com
Building the iron dragon: exploring for iron ore
in Bolivia
Nick Tintor– Ferrum Americas Mining
2. Size, Grade, Infrastructure – A World Class Combination
Objective Capital Conference – London
November 3 - 2011
3. All statements and other information contained in this document related
to Ferrum Americas Mining Inc. (“FAM”), as well as other statements
about anticipated future events or results, constitute forward-looking
statements. Forward-looking statements often, but not always, are
identified by the use of words such as “seek”, “anticipate”, “believe”,
“plan”, “estimate”, “expect”, “intend”, “forecast”, “project”, “likely”,
“potential”, “targeted” and “possible” and statements that an event or
result “may”, “will”, “would”, “should”, “could” or “might” occur or be
achieve and other similar expressions. Forward-looking statements are
subject to known and unknown business and economic risks and
uncertainties and other factors that could cause actual results of
operations to differ materially from those expressed or implied by the
forward-looking statements. Forward-looking statements are based on
estimates and opinions of management at the date the statements are
made. FAM does not undertake any obligation to update forward-looking
statements even if circumstances or management’s estimates or opinions
should change. For the reasons set forth above, investors should not place
undue reliance on forward-looking statements.
4. Laurence Curtis, Ph.D Geologist and company founder with more than 40 years experience in
Non-Executive Chairman global mineral exploration. Laurie is also the founder and a director of
Intrepid Minerals and is an analyst at Dundee Securities.
Alistair Maxwell Investment banker with more than 15 years experience. Alistair was the
Vice Chairman founder and President and CEO, of Clarus Securities for the past 8 years.
Nick Tintor, B.Sc. Geologist and company founder. Nick has been involved for the past 20
President, CEO years in project generation and financing of exploration companies. He is
and Director also a director of Cerro Resources, Southern Andes Energy Inc. and is
Managing Director of RG Mining Investments Inc.
Barry Lavin, P. Eng Mining engineer with more than 25 years experience in all facets of mine
Director project development and management. Most recently, Barry spent 18 years
with Rio Tinto where he was Head – Technical Services and was General Manager,
Iron Ore Business Development in Australia.
Stephen M. Gledhill Certified Management Accountant with over 25 years of financial control and
Chief Financial Officer reporting experience. He has acted as CFO for numerous publically-traded
small to mid-cap mineral exploration companies and is Managing Director and
CFO of RG Mining Investments Inc.
Michael Bennett Former RTZ geologist with +20 years project management experience in Bolivia
Consultant and Brazil.
Jim McNamee Bolivia-based geologist for the past 30 years with exploration experience in a variety
Project Manager of geological environments across Latin America.
5. Chinese demand drives prices
China’s urbanization policies fuel
construction growth
RTZ forecast 800 mt Fe ore
demand increase over next 8 years
Steel production forecast to soar
25% by 2015 to 750 million
tonnes in accordance with latest
Five Year Plan (1)
Appendix
(1) The Australian, May 31, 2011 quoting the China Iron and Steel Association
6. Cerro Rojo part of Fe trend
extending across from Brazil
Vale’s Urucum mine in operation
and ships product via barge
convoy down river
Jindal is developing Mutun
Suarez Bolivia area being readied
for Fe development
7. RTZ discovery in 1999 following regional Fe
recon program
Cerro Rojo identified as part of a “new iron ore
province...” (1)
RTZ program included 64 surface samples
averaging +50% Fe
Large shallow dipping scarp slope strikes for 4.5
km and up to 1.5 km in width
Target potential resources exceed 250 million
tonnes
Cerro Lejo and Cerro Chico projects host lower
grade BIF’s: 30%-40% Fe.
(1)RTZ Internal Memorandum – Iron Ore Project, Eastern Bolivia,
December 11, 1999
ValeJindal
8. Sampling of BIF suggests +50% Fe grades in hematite/magnetite
Gentle dip scarp slope suggests good open pit potential
Colluvium cover on dip slope possible enriched starter ore?
Left photo: walking up dip slope
Right photo: BIF scarp edge with dip to left
9. Strikes for more than 4.5 km
Scarp dip slope up to 1.5 km
Mapping of BIF
outcrop shows
potential for resource
growth
RTZ exploration target
of 250 mt is
conservative
Mapping suggests
+600 mt potential
Rights over Cerro
Chico and Cerro Lejos
deposits in same trend.
Cerros Chico and Lejos
host lower grading
BIFs ranging 30%-40%
10. Cerro Rojo grades rank high on global
scale
Resource increase will push Cerro up
rank
Combination of grade, size potential
and logistic advantages suggests a world
class project
11. Located near Puerto Suarez, Bolivia by Brazil
Project is 8 km from rail line
55 km by rail to port
Excellent road access to site
Excellent local infrastructure including gas
power lines
Rail crossing near project site Gas line parallels rail line
12. Barge convoys provide shipping solution to Panamax load out at Rosario, Argentina
Ample land available for major storage and loading infrastructure
13. Major river artery to Atlantic
Ocean
Project is 55 km from river
Low cost barge convoys
attractive for bulk transport of
Fe
Convoys up to 50,000 t capacity
Vale’s Corumba uses barge
convoys to transport Fe to
Rosario
14. A rich and diverse mining history and economy
Government supports private mining as this sector
encompasses thousands of small private mining
entities – crucial to Bolivia’s economy
Santa Cruz province is pro-business
Foreign companies include:
Sumitomo
British Gas – BG Group
Jindal Steel
TOTAL Energy
Gazprom
Opportunity to develop a world class iron ore project
complemented by superb logistics
15. Sumitomo-San Cristobal
Orvana – Don Mario
US$1.3 billion capex
600,000 tonnes conc/year
Production October 2007
Major tax generator in
Bolivia
US$21 million capex
1,900 tpd operation
Production started July,
2003
Coeur – San Bartolome
US$238 million
capex
Production June 2008
Pan American –San Vincente
US$72 million capex
Production March 2009
16. Dr. Rolando Kempff is a Governor and Director of
the Banco National de Bolivia
Owns and manages Terrasur – one of Bolivia’s
largest real estate companies.
Dr. Oscar Kempff is Bolivia’s most respected
geologist credited with numerous discoveries such
Don Mario
Parque Nacional Noel Kempff Mercado, is named in
honour of the late Bolivian biologist and
conservationist, Professor Noel Kempff
The Kempff family have deep roots in Bolivia
and are key partners in the development of Cerro
Rojo
Dr. Oscar KempffDr. Rolando Kempff
17. Kempff family are partners and vendors
Cash: US$10.5 million over three years (1)
On IPO, issue $1 million in shares
First anniversary of IPO, $1.5 million in shares
Bonus payments capped at $10 million (2)
(1) Three year option period begins on receipt of all operating and environmental permits
(2) Bonus based on $0.02 per tonne on next 100 mt grading +50% Fe above threshold of 150 mt.
On next 100 mt, bonus paid is $0.03 per tonne.
All bonuses owing are only payable on receipt of positive bankable feasibility study and arrangement of project financing.
18. Complete 4,000 m phased drill program. Outline and confirm deposit footprint
150 kg of surface sample in lab for first phase beneficiation test work
Complete additional beneficiation work to determine final product and process
52% Fe is “marginal” DSO. Determine process to upgrade to +58%-63%
Complete initial resource estimate by 4th quarter 2012
19. $0.11
$0.16 $0.18 $0.19
$0.25
$0.31 $0.32
$0.42
$0.52
$0.70
$0.99
$1.14
$1.39
$1.90
Mean
US$0.61/t Fe
Source: Thomson One, Metals Economics Group, SEDAR, and Company Reports
Ferrum Americas valuation assumed based on current RTO LOI with RAP and assumes a $10M financing. Resources are potential resources based on historic exploration (270Mt @ 52% Fe)
20. Ferrum Americas is currently a private Ontario corporation and is finalizing an RTO transaction with a
company listed on the TSXV.
On the close of the RTO transaction and a contemporaneous minimum financing of $3 million at
$0.50 per share, the capital structure of Ferrum Americas is estimated as follows:
Pre-financing Post Financing
Shares % Shares (1) %
Ferrum Shareholders & Option holders 24,952,500 91 24,952,500 74.9
RAP Shareholders, Option holders and
Warrant holders
2,348,300 9 2,348,300 7.1
Financing - - 6,000,000 18.0
Total 27,300,800 100 33,300,800 100
Post Market Capitalization: $16.65 million
21. Cerro Rojo project has potential for +600 mt grading +50% Fe
Cerro Rojo has an infrastructure advantage over far more remote projects in the world.
Proximity to the Hidrovia - Latin America's Mississippi River system – an attractive
shipping option for bulk commodities.
Located in Santa Cruz province, the pro-business centre of Bolivia.
Kempff family are our partners. Key advantage in governmental relations
Strategic plan – advance Cerro Rojo in 2012 and build our Fe asset base in the Americas
Ferrum’s small capitalization provides opportunity for significant growth as projects are
advanced
22. For additional Information please contact:
Nick Tintor
Ferrum Americas Mining Inc.
120 Adelaide Street West -Suite 2400
Toronto, Ontario – M5H 1T1
Telephone: 416 987 0855
Email: ntintor@rgmi.ca