INDUSTRIAL METALS, MINERALS
AND MINEABLE ENERGY
INVESTMENT SUMMIT 2010
LONDON CHAMBER OF COMMERCE & INDUSTRY ● WEDNESDAY, ...
TSX-V:SUR
Developing Peru’s Untapped
Uranium Resources
Objective Capital’s Mineable Energy Investment Summit
London,
Novem...
TSX-V:SUR
These materials present an overview of Southern Andes Energy’s projects in
southern Peru. Readers are cautioned ...
TSX-V:SUR
Southern Andes Energy
Discovering & Developing Peru’s Uranium Resources
Company formed in 2010 with explicit foc...
TSX-V:SUR
Our Team
Management
Nick Tintor, President & Chief Executive Officer
Geologist, with over 25 years of experience...
TSX-V:SUR
Why Uranium Today?
• Spot price for U3O8 up 26% since June 2010 to US$52.00
• Good buy-in opportunity across who...
TSX-V:SUR
Why Peru?
A stable, pro-mining jurisdiction with good infrastructure
• Peru vastly underexplored for uranium
• T...
TSX-V:SUR
Macusani Plateau
Southern Andes controls the Macusani Uranium District
Property Size (Hectares) Commodity
Macusa...
TSX-V:SUR
?
?
?
?
Bear Creek – Corani
Quenamari Caldera
Macusani West Macusani East
TSX-V:SUR
Macusani East
Significant Uranium Resources
Sayaña Central
1.85 million lbs.
Calvario I
1.48 million lbs.
Calvar...
TSX-V:SUR
Calvario I Project
Past exploration work consisted of:
• Geological reconnaissance survey of IPEN’s showing and ...
TSX-V:SUR
Calvario I Project
CALVARIO I PROJECT: DRILLING SUMMARY
Hole Easting Northing Elev Length Best Values in ppm U3O...
TSX-V:SUR
Calvario I Project
PUN07-01: 59.00 m-60.00m: 26775 ppm U3O8PUN07-01: 59.00 m-60.00m: 26775 ppm U3O8
CI07-27: 34....
TSX-V:SUR
Macusani East – Chacaconiza
Target Area
Top exploration priority for the company
• Largest radiometric targets i...
TSX-V:SUR
Chachaconiza – Widespread U Anomalies
Accocucho Sur hosts widespread
autunite uranium mineralization in
area of ...
TSX-V:SUR
Macusani East – Chacaconiza
Accocucho Sur Target
16
100 m
250 m
TSX-V:SUR
Macusani East – Chachaconiza
Accocucho Sur Target
17
TSX-V:SUR
Turpuramani Radiometric Extension
of Colibri II-III Deposit
Colibri deposit hosts
17 million lbs. U3O8
Tupuraman...
TSX-V:SUR
TSX-V:SUR
Macusani West
Focus 2011:
• Define anomalies with close spaced
mapping and surface sampling
• Include trench and...
TSX-V:SUR
Chahuaña Target Areas
• North target 600 m x 800 m
• Mineralized unit up to 30 m
thick
• Uranium disseminated
• ...
TSX-V:SUR
Ignimbrite with
abundant obsidian
UV Highlights
Disseminated Uranium
TSX-V:SUR
Preliminary Test Work
Positive Metallurgical Results
Positive results were obtained from all samples submitted t...
TSX-V:SUR
Metallurgical Tests
• Positive results were obtained from all samples
submitted to the leaching test
• U308 extr...
TSX-V:SUR
Macusani Uranium - Low Cost Production
Positive Mining Attributes
The mineralization found in the Macusani Urani...
TSX-V:SUR
Caracara Silver Spin-out in Process
Silver-lead-zinc projects in Southern Peru 100% SAE-owned
• NI 43-101 resour...
TSX-V:SUR
Caracara Silver Spin-out
27
TSX-V:SUR
Very Prospective Landholding
Recent High Grade Sampling (1)
(1) Mr. Alain Vachon, P. Geo., Company’s Qualified P...
TSX-V:SUR
Southern Andes Energy
A Perfectly Positioned Peruvian Uranium Play
Share structure:
As of October 20th, 2010
Sha...
TSX-V:SUR
Summary and Conclusions
 Uranium and nuclear renaissance is real
 Southern Andes Energy controls the new Macus...
TSX-V:SUR
Head Office (Toronto, Ontario, Canada)
Nick Tintor, President & CEO
Office Tel: +1-416-987-0855
Mobile Tel: +1-4...
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Defining deposits in Peru's uranium district

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Objective Capital's Industrial Metals, Minerals & Investment Summit 2010
London Chamber of Commerce and Industry
3 November 2010
Speaker: Nick Tintor, Southern Andes Energy

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Defining deposits in Peru's uranium district

  1. 1. INDUSTRIAL METALS, MINERALS AND MINEABLE ENERGY INVESTMENT SUMMIT 2010 LONDON CHAMBER OF COMMERCE & INDUSTRY ● WEDNESDAY, 30 NOV 2010 www.ObjectiveCapitalConferences.com 1 Defining deposits in Peru's uranium district Nick Tintor – CEO, Southern Andes Energy
  2. 2. TSX-V:SUR Developing Peru’s Untapped Uranium Resources Objective Capital’s Mineable Energy Investment Summit London, November 3, 2010
  3. 3. TSX-V:SUR These materials present an overview of Southern Andes Energy’s projects in southern Peru. Readers are cautioned that the projects are at an early stage and that all estimates and information contained herein are based on limited and incomplete data. Additional work is required before the mineralization and the economic potential of the projects can be confidently modeled. Statements reflected in this presentation may contain “forward-looking statements” including management’s assessments of future plans and operations including expectations of future production and capital expenditures. These statements regarding potential mineralization and resources, estimated or potential future production, potential ranking of properties and future plans and objectives of the Company, are forward-looking statements that involve various known and unknown risks, uncertainties and factors. Consequently, actual results may differ materially from those anticipated in the forward-looking statements. While the work, results, estimates and projections in the presentation may be considered indicative of the nature and quality of the work undertaken, they are not definitive. Readers are advised that undue reliance should not be placed on forward-looking statements. Cautionary Note Concerning Forward-Looking Statements 3
  4. 4. TSX-V:SUR Southern Andes Energy Discovering & Developing Peru’s Uranium Resources Company formed in 2010 with explicit focus on developing Peruvian uranium assets Largest landowner of uranium assets in Macusani Plateau Strategic equity interests • Controlling over 900 km2 of land concessions • Over 55 uraniferous anomalies identified on Southern Andes’ land concessions • 12.7% equity interest in Macusani Yellowcake Inc. • Controlling portfolio of advanced-stage silver-zinc-lead projects in Peru Objective: Invest in strategic land package and attract partners to develop assets 4
  5. 5. TSX-V:SUR Our Team Management Nick Tintor, President & Chief Executive Officer Geologist, with over 25 years of experience in the mining industry; has been involved with all aspects of junior mining company management, finance and project acquisition. Hatem Kawar, Chief Financial Officer Over 25 years of experience in technical and management aspects of industrial mineral projects in the Middle East. MBA degree (Schulich, York University, Canada). Arnaldo T. Leon, Country Manager – Peru Mr. Leon is a mining engineer with over 32 years of experience as a mining specialist in Peru. Responsible for managing Southern Andes Energy's existing property portfolio. Alain Vachon, Exploration Manager More than 33 years of experience in exploration of which the last 13 in Peru as General Manager and consulting geologists for various junior Canadian companies. Robert Boaz, Independent Chairman Board of Directors Jonathan Challis John Cook Laurence Curtis James Garcelon Nick Tintor 5
  6. 6. TSX-V:SUR Why Uranium Today? • Spot price for U3O8 up 26% since June 2010 to US$52.00 • Good buy-in opportunity across whole spectrum of uranium mining plays • Currently 441 commercial nuclear reactors are in operation in 30 countries  58 units under construction worldwide representing ~60GWE of capacity  152 units and 337 units planned and proposed respectively Catalysts: • Continued price volatility but expected long- term gains due to fundamental demand with supply deficit by 2013 • Producers are buying at spot • Possible re-entry of hedge funds? Uranium renaissance driven by strategic demand, rising prices (Source: UXC, September 2010 presentation) 40 45 50 55 USD Uranium Spot Price: 6
  7. 7. TSX-V:SUR Why Peru? A stable, pro-mining jurisdiction with good infrastructure • Peru vastly underexplored for uranium • The country has not previously emphasized uranium deposits, but is receptive to the development of these prospects • Potential for open pit deposits between 5-25 million lbs in size • Peru supporting export of uranium by 2011 – also highly probable to be 1 of 4 Latin American countries to have a nuclear reactor generating capacity (Source: Peru Ministerio de la Produccion, Adex DataTrade, BCRP and MINEM) Excellent government support for uranium mining 7
  8. 8. TSX-V:SUR Macusani Plateau Southern Andes controls the Macusani Uranium District Property Size (Hectares) Commodity Macusani East 47,819 Uranium Macusani West 45,900 Uranium Macusani South 10,600 Uranium Picotani 6,606 Uranium Piluani & Princesa 24,000 Lead, zinc & silver Cullquimayo 5,300 Silver, copper, nickel & gold All properties are 100% owned by Southern Andes LIMA 8
  9. 9. TSX-V:SUR ? ? ? ? Bear Creek – Corani Quenamari Caldera Macusani West Macusani East
  10. 10. TSX-V:SUR Macusani East Significant Uranium Resources Sayaña Central 1.85 million lbs. Calvario I 1.48 million lbs. Calvario III 1 million lbs. Puncopata 386,000 lbs. Colibri 17 million lbs. Corachapi 6 million lbs. Kihitian 280,000 lbs. high grade structure Tantamaco 14 million lbs Chacaconiza Target Area
  11. 11. TSX-V:SUR Calvario I Project Past exploration work consisted of: • Geological reconnaissance survey of IPEN’s showing and limited trenching. • Detailed radiometric survey. • 2006-2007: 72 holes drilled - 3982.3 m. (1) Source: Frontier Pacific Mining Corporation and not compliant with NI 43-101 standards or protocols. Tonnes Grade (% U3O8) U3O8 (lbs) 2,291,000 (1) 0.029 1,480,000 11
  12. 12. TSX-V:SUR Calvario I Project CALVARIO I PROJECT: DRILLING SUMMARY Hole Easting Northing Elev Length Best Values in ppm U3O8 CAL06-04 332550 8464975 4491 6.00 5.00-11.00: 894 ppm CAL06-05 332600 8464949 4487 5.00 2.52-7.52: 404 ppm CAL07-02 332625 8464823 4485 2.00 26.00-28.00: 7122 ppm (0.71%) CAL07-04 332625 8464823 4485 6.00 28.00-34.00: 1213 ppm (0.12%) CAL07-15 332703 8464899 4468 4.85 0.15-5.00: 491 ppm CAL07-18 332799 8464843 4479 2.00:1.00 19.00-21.00: 861 ppm; 25.00-26.00: 958 ppm CAL07-21 332723 8464774 4486 3.00 33.00-36.00: 3410 ppm (0.34%) CAL07-22 332723 8464774 4486 5.00 30.00-35.00: 2087 ppm (0.21%) CAL07-27 332602 8464731 4478 3.00 34.00-37.00: 7043 ppm (0.70%) CAL07-28 332602 8464731 4478 5.00 32.00-37.00:1205 ppm CAL07-30 332451 8464735 4454 2.00 6.00-8.00: 2658 ppm (0.27%) CAL07-38 332651 8464925 4471 6.50 1.50-8.00: 484 ppm CAL07-39 332651 8464925 4471 7.00 2.00-9.00: 1608 ppm (0.16%) CAL07-40 332651 8464925 4471 7.00 2.00-9,00: 1196 ppm (0.12%) CAL07-45 332850 8464819 4473 3.00 8.00-11.00: 1173 ppm (0.12%) CAL07-48 332850 8464819 4473 10.00 3.00-13.00: 1161 ppm (0.12%) CAL07-50 332470 8464984 4472 7.00 1.00-8.00: 525 ppm CAL07-51 332470 8464984 4472 8.00 3.00-11.00: 553 ppm CAL07-52 332470 8464984 4472 5.00 11.00-16.00: 345 ppm 12
  13. 13. TSX-V:SUR Calvario I Project PUN07-01: 59.00 m-60.00m: 26775 ppm U3O8PUN07-01: 59.00 m-60.00m: 26775 ppm U3O8 CI07-27: 34.00 – 35.00 m: 18595 ppm U3O8 Layer 1: 2 m- 20 m thick Surface to 20 m in depth 13
  14. 14. TSX-V:SUR Macusani East – Chacaconiza Target Area Top exploration priority for the company • Largest radiometric targets in district located in the SW corner of the Macusani East Project • High radiometric anomalies with +40,000 cps values have been identified • Reconnaissance program in progress • Trench and channel sampling wide zones of uranium autunite mineralization on surface. Focus 2010 – 2011: • Map and sample each target • Trenching and channel samples • Define mineralization on surface • Prepare to drill in 2011 14
  15. 15. TSX-V:SUR Chachaconiza – Widespread U Anomalies Accocucho Sur hosts widespread autunite uranium mineralization in area of high radiometrics Zones of +25,000 cps radiometrics Alpi-2 Zone radiometric anomaly strikes for more than 6,000 m and is more than 40 m in width
  16. 16. TSX-V:SUR Macusani East – Chacaconiza Accocucho Sur Target 16 100 m 250 m
  17. 17. TSX-V:SUR Macusani East – Chachaconiza Accocucho Sur Target 17
  18. 18. TSX-V:SUR Turpuramani Radiometric Extension of Colibri II-III Deposit Colibri deposit hosts 17 million lbs. U3O8 Tupuramani claim has large radiometric anomaly on strike with radiometrics at Colibri
  19. 19. TSX-V:SUR
  20. 20. TSX-V:SUR Macusani West Focus 2011: • Define anomalies with close spaced mapping and surface sampling • Include trench and channel samples of zones • Develop drill targets for 2011 20 • The Macusani West project is highly prospective. • Large anomalies identified by ground radiometrics • Initial analysis shows wide spread disseminated uranium • Uranium mineralization consists of secondary minerals such coffinite, autunite, tyuyamunite and carnotite. Chahuaña Uranium Targets
  21. 21. TSX-V:SUR Chahuaña Target Areas • North target 600 m x 800 m • Mineralized unit up to 30 m thick • Uranium disseminated • New area which has never been drilled • All targets remain open
  22. 22. TSX-V:SUR Ignimbrite with abundant obsidian UV Highlights Disseminated Uranium
  23. 23. TSX-V:SUR Preliminary Test Work Positive Metallurgical Results Positive results were obtained from all samples submitted to the leaching test • U3O8 extraction; Pich sample; columns 1,2,3,4: Average 88.3%; • U3O8 extraction; Viz sample; columns 5,6,7,8: Average 99.5%; • U3O8 extraction; Cha sample; columns 9,10,11,12: 98.2%; • Total acid consumption of columns 1 to 4 ranges between 13 and 14.5 kg/t; • Total acid consumption of columns 5 to 8 ranges between 12 and 14.1 kg/t ; • Total acid consumption of columns 9 to 12 ranges between 13.8 and 16.4 kg/t. 23
  24. 24. TSX-V:SUR Metallurgical Tests • Positive results were obtained from all samples submitted to the leaching test • U308 extraction; Pich sample; columns 1, 2, 3, 4: Average 88.3% • U308 extraction; Viz sample; columns 5, 6, 7, 8: Average 99.5% • U308 extraction; Cha sample; columns 9, 10, 11,12: 98.2% • Total acid consumption of columns 1 to 4 ranges between 13 and 14.5 kg/t • Total acid consumption of columns 5 to 8 ranges between 12 and 14.1 kg/t. • Total acid consumption of columns 9 to 12 ranges between 13.8 and 16.4 kg/t 24
  25. 25. TSX-V:SUR Macusani Uranium - Low Cost Production Positive Mining Attributes The mineralization found in the Macusani Uranium District is characterized by significant mining attributes: • Near-surface mineralization • Low blast factor in friable rocks • Possible ripping at start • Low work index means low crushing costs • Very low reagent consumption in preliminary metallurgical testwork • Excellent leach recoveries due to high porosity in host rock: +90% • Ore in grades ranging from 200 ppm to 300 ppm District characteristics suggest low operating costs per lb. <$25/lb 25
  26. 26. TSX-V:SUR Caracara Silver Spin-out in Process Silver-lead-zinc projects in Southern Peru 100% SAE-owned • NI 43-101 resources of 28 million oz Ag equivalent (1)(2) • Two main projects: Princesa and Pilunani  Princesa: Resource (1) of 4.6 million tonnes @ 90.88 g/t Ag, 1.69% Zn, 1.66% Pb • Added key projects via vendor deal and map staking; significant regional upside • Holdings expanded and exceed 24,000 hectares covering more than of 30 km strike • Region has excellent road access via new InterOceanicHighway (1) Mr. Alain Vachon, P. Geo., Company’s Qualified Person as defined by NI 43-101 (2) Silver equiv. based on Ag spot price of US$18.23/oz. and Zn spot price of US$0.827/lb and US$0.815/lb Pb, published by Kitco on July 14, 2010 26
  27. 27. TSX-V:SUR Caracara Silver Spin-out 27
  28. 28. TSX-V:SUR Very Prospective Landholding Recent High Grade Sampling (1) (1) Mr. Alain Vachon, P. Geo., Company’s Qualified Person as defined by NI 43-101 Property Sample No. Zinc Lead Parcuyo PAR01 8.54% 11.95% PAR02 24.07% 9.43% Property Sample No. Silver (g/t) Zinc Lead Princesa Princesa 854 >30% 8.52% Princesa Project • Diatreme breccia structure Parcuyo Project • Large diatreme breccia structure 28
  29. 29. TSX-V:SUR Southern Andes Energy A Perfectly Positioned Peruvian Uranium Play Share structure: As of October 20th, 2010 Shares Outstanding 53,659,709 Share Price $0.20 Options Outstanding 1,481,662 Market Capitalization $12.44 m Warrants Outstanding 3,125,000 Cash $2 million Fully Diluted 58,266,371 29
  30. 30. TSX-V:SUR Summary and Conclusions  Uranium and nuclear renaissance is real  Southern Andes Energy controls the new Macusani Uranium District in Peru with more than 100,000 hectares  Results to date point to potential for lowest quartile production costs  Plan to drill new surface discoveries and known zones in 2011  Spinning out significant silver projects into Caracara Silver  Significant value creation in 2011 from uranium and silver 30
  31. 31. TSX-V:SUR Head Office (Toronto, Ontario, Canada) Nick Tintor, President & CEO Office Tel: +1-416-987-0855 Mobile Tel: +1-416-953-4244 Email: ntintor@southernandes.ca Investor Relations (Toronto, Ontario, Canada) Garreth Elston, Investor Relations Office Tel: +1-647-438-2193 Mobile Tel: +1-647-290-7992 Email: garreth@thecapitallab.com Contact 31
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