Loading…

Flash Player 9 (or above) is needed to view presentations.
We have detected that you do not have it on your computer. To install it, go here.

Like this presentation? Why not share!

Defining deposits in Peru's uranium district

on

  • 1,193 views

Objective Capital's Industrial Metals, Minerals & Investment Summit 2010

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

Statistics

Views

Total Views
1,193
Views on SlideShare
1,128
Embed Views
65

Actions

Likes
0
Downloads
8
Comments
0

2 Embeds 65

http://www.objectivecapitalconferences.com 63
http://localhost 2

Accessibility

Upload Details

Uploaded via as Microsoft PowerPoint

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

    Defining deposits in Peru's uranium district Defining deposits in Peru's uranium district Presentation Transcript

    • Defining deposits in Peru's uranium district Nick Tintor – CEO , Southern Andes Energy
    • Developing Peru’s Untapped Uranium Resources Objective Capital’s Mineable Energy Investment Summit London, November 3, 2010
      • 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
    • Southern Andes Energy
      • Company formed in 2010 with explicit focus on developing Peruvian uranium assets
      Discovering & Developing Peru’s Uranium Resources
      • Controlling over 900 km 2 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 Largest landowner of uranium assets in Macusani Plateau Strategic equity interests
    • Our Team
      • 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.
      Management Robert Boaz, Independent Chairman Board of Directors Jonathan Challis John Cook Laurence Curtis James Garcelon Nick Tintor
    • 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)
    • 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
    • Macusani Plateau Southern Andes controls the Macusani Uranium District All properties are 100% owned by Southern Andes LIMA 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
    • ? ? ? ? Quenamari Caldera Bear Creek – Corani Macusani West Macusani East
    • Macusani East Significant Uranium Resources Chacaconiza Target Area 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
    • 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 (% U 3 O 8 ) U 3 O 8 (lbs) 2,291,000 (1) 0.029 1,480,000
    • Calvario I Project CALVARIO I PROJECT: DRILLING SUMMARY Hole Easting Northing Elev Length Best Values in ppm U 3 O 8 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
    • Calvario I Project PUN07-01: 59.00 m-60.00m: 26775 ppm U 3 O 8 PUN07-01: 59.00 m-60.00m: 26775 ppm U 3 O 8 CI07-27: 34.00 – 35.00 m: 18595 ppm U 3 O 8 Layer 1: 2 m- 20 m thick Surface to 20 m in depth
    • 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
    • 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
    • Macusani East – Chacaconiza Accocucho Sur Target 100 m 250 m
    • Macusani East – Chachaconiza Accocucho Sur Target
    • Turpuramani Radiometric Extension of Colibri II-III Deposit Colibri deposit hosts 17 million lbs. U 3 O 8 Tupuramani claim has large radiometric anomaly on strike with radiometrics at Colibri
    •  
    • 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
      • 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.
      Chahua ñ a Uranium Targets
    • 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
    • Ignimbrite with abundant obsidian UV Highlights Disseminated Uranium
    • Preliminary Test Work Positive Metallurgical Results
      • Positive results were obtained from all samples submitted to the leaching test
      • U 3 O 8 extraction; Pich sample; columns 1,2,3,4: Average 88.3%;
      • U 3 O 8 extraction; Viz sample; columns 5,6,7,8: Average 99.5%;
      • U 3 O 8 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.
    • Metallurgical Tests
      • Positive results were obtained from all samples submitted to the leaching test
      • U 3 0 8 extraction; Pich sample; columns 1, 2, 3, 4: Average 88.3%
      • U 3 0 8 extraction; Viz sample; columns 5, 6, 7, 8: Average 99.5%
      • U 3 0 8 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
    • 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
    • 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
      • Mr. Alain Vachon, P. Geo., Company’s Qualified Person as defined by NI 43-101
      • 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
    • Caracara Silver Spin-out
    • Very Prospective Landholding Recent High Grade Sampling (1)
      • Mr. Alain Vachon, P. Geo., Company’s Qualified Person as defined by NI 43-101
      • Princesa Project
      • Diatreme breccia structure
      • Parcuyo Project
      • Large diatreme breccia structure
      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%
    • Southern Andes Energy A Perfectly Positioned Peruvian Uranium Play Share structure: As of October 20 th , 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
    • 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
      • Head Office (Toronto, Ontario, Canada)
      • Nick Tintor, President & CEO
      • Office Tel: +1-416-987-0855
      • Mobile Tel: +1-416-953-4244
      • Email: [email_address]
      • Investor Relations (Toronto, Ontario, Canada)
      • Garreth Elston, Investor Relations
      • Office Tel: +1-647-438-2193
      • Mobile Tel: +1-647-290-7992
      • Email: [email_address]
      Contact