Gold exploration in the Volta Region


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Objective Capital's Africa Resources Investment Congress 2012
Ironmongers' Hall, City of London
12 June 2012
Speaker: David Sumich, Volta Mining

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Gold exploration in the Volta Region

  1. 1. AFRICA RESOURCESINVESTMENT CONGRESS Gold exploration in the Volta Region David Sumich – Managing Director, Volta Mining IRONMONGERS’ HALL, CITY OF LONDON TUESDAY, 12 JUNE 2012
  2. 2. Emerging resources company withinterests in iron ore and gold assets in West Africa June 2012
  3. 3. DisclaimerAny forward looking statements in this Presentation have been prepared on the basis of a number of assumptions which may prove incorrect andthe current intentions, plans, expectations and beliefs about future events and are subject to risks, uncertainties and other factors, many of whichare outside Volta Mining Limited’s (“Volta Mining’s” or “the Company’s”) control. Important factors that could cause actual results to differmaterially from the assumptions or expectations expressed or implied in this Presentation include known and unknown risks. Because actualresults could differ materially to the assumptions made and Volta Mining’s current intentions, plans, expectations and beliefs about the future, youare urged to view all forward looking statements contained in this Presentation with caution. This Presentation should not be relied upon as arecommendation or forecast by Volta Mining. Nothing in this Presentation should be construed as either an offer to sell or a solicitation of an offerto buy or sell securities in any jurisdiction.This Presentation is not intended to provide the sole basis of any investment decision or other evaluation. Each recipient hereof contemplating aninvestment in the securities of Volta Mining shall make, or shall be deemed to have made, their own independent investigation of Volta Mining andrelated documentation and their own appraisals of the prospects and merits of the Company and its assets described herein.All forecasts, facts, information, estimates and other statements of opinion contained in this Presentation have been prepared solely by, or on thebasis of, information supplied to Volta Mining. While the information contained herein is believed to be true and accurate, we expressly disclaimany and all liability for representations or warranties, expressed or implied, contained herein, or in any other written or oral communicationstransmitted or made available to any prospective investor.No representation or warranty is made by Volta Mining that forecasts, projections, business goals or estimates contained herein will be achieved.This Presentation speaks as of the date hereof. Neither the delivery of the Presentation nor any sale made hereunder shall, under anycircumstances, create any implication that there has been no change in the affairs of the Company after the date hereof.Competent person’s statementThe information in this Presentation that relates to exploration results is based on information compiled by Mr Liviu Tusa, an employee of VoltaMining and a Member of the Australian Institute of Geoscientists. Mr Liviu Tusa has sufficient experience which is relevant to the style ofmineralisation and types of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined inthe 2004 edition of the “Australasian Code for Reporting of Exploration Results, Minerals Resources and Ore Reserves.” Mr Liviu Tusa consentsto the inclusion in the Presentation of the matters based on his information in the form and context in which it appears.ASX VTM | PAGE 3
  4. 4. Executive summaryVolta Mining is conducting a global roadshow to provide an updateon gold exploration results and its strategy for growth» We are an emerging gold explorer with a vision to become a mid-cap resources company with a pipeline of advanced, sustainable projects in Africa» We are a listed in the Australian Securities Exchange (ASX)» We have a portfolio of early stage gold exploration projects in Burkina Faso and interests in iron ore in Gabon» We have a highly experienced board and in- country management team in place with a track record of success in Africa» We are an attractive investment for those seeking exposure to “ground level” entry into AfricaASX VTM | PAGE 4
  5. 5. CONTENTS Section 1 Corporate vision and strategy Section 2 Gold project portfolio Section 3 Iron ore in Gabon Section 4Summary: why invest in Volta Mining?
  6. 6. Section 1Corporate vision and strategy
  7. 7. Who is Volta Mining?Volta Mining is an emerging acquirer, explorer and developer of assets» Focus is on projects in Africa only» Africa is an attractive prospect: – it is highly prospective and underexplored – political risk is decreasing on average – acquisition costs are lower» Focus is on strong, well understood commodities: gold, iron ore, coal, manganese, copper Regional office:We are an Australian company Ouagadougou, Burkina» We have vast access to skills Faso» We operate in a well regulated capital market Seeking investment from the US and» We adhere to the strictest anti-bribery and Europe corruption laws» Australian companies are the defacto world Corporate office: standard for Environment and Safety practices Perth, AustraliaASX VTM | PAGE 7
  8. 8. Vision and goals Our vision is to become a leading mid-cap resources company with a pipeline of advanced, sustainable projects in Africa Short term goals: 0 – 6 months since listing in October 2011 To complete a 10,000 – 20,000m auger drilling programme by Q1 2012 on To acquire large prospective and strategic landholdings in West Africa new projects Medium term goals: 6 – 12 months since listing in October 2011 » To develop a pipeline of projects » To commence RC drilling (Stage 1) & additional infill and regional auger drilling programmes (Stage 1) across project sites » To further strengthen our financial positionASX VTM | PAGE 8
  9. 9. Corporate snapshotCapital structure (31 May 2012) 1 Board of directorsCash at bank ~AUD3.3 mn Mr George LazarouTotal issued capital 44,550,000 Non-Executive ChairmanOptions 37,100,000Exercisable at AUD20 cents on orbefore 30 June 2014 Mr David Sumich Managing DirectorMarket capitalisation – ~AUD11.5 mnundiluted Dr Alain Gachet Shareholding summary (20 April 2012) Non-Executive Director Directors2 9% Project vendors 7.2% Mr David Wirrpanda Seed investors 7.6% Non-Executive Director HNW clients of Indian Ocean3 23.7% Australian institutions 9.1% Top 20 shareholders (31 May 2012)4 70.58% Overseas institutions 5.6% 1includes recent AUD2.3 million capital raise with Tranche Australian retail 37.8% 2 subject to EGM 2includes 688,000 shares purchased on-market by MD 100% post-IPO @ ~20 cents 3Indian Ocean Capital: Lead Manager to IPO which closed oversubscribed in September 2011ASX VTM | PAGE 9 4includes merged holders
  10. 10. Section 2Gold project portfolio
  11. 11. Regional focus: francophone West AfricaVolta Mining is reviewing gold, iron ore and other commodities infrancophone West AfricaWhy West Africa?» It is the fastest growing gold producing region in the world1» No.1 globally in gold resource growth (1997–2005)2 Niger Mali Chad» Gold production has Senegal increased by more than Burkina Faso 50% over the last 10 years2 Guinea Benin Primary focus (francophone West Africa) Coté Central African» It plays host to numerous d’Ivoire Togo Cameroon Republic Secondary focus (francophone iron ore deposits and has the West Africa) Equatorial Guinea Republic of the Francophone potential to become a significant Gabon Congo West Africa Democratic iron ore producing region in the Republic of the Congo future 1Southern Cross Equities, “Gold in Africa”, - 19 July 2010 2Ambrian, “West Africa Gold Sector” – March 2010ASX VTM | PAGE 12
  12. 12. Control risks Burkina Faso » Security risk: Medium Gabon » Security risk: Low Source: Control Risks. Risk Map 2012 ( VTM | PAGE 13
  13. 13. Why gold in Burkina Faso? » Burkina Faso is the 5th largest gold Country % Greenstone +1 Moz Gold belt deposits producer in Africa and one of the Ivory Coast 35 8Moz fastest growing1 Burkina Faso 22 12Moz – One gold mine operating in Ghana 19 110Moz 20073 Guinea 11 12Moz – Six gold mines operational by 20103 Mali 10 33Moz Senegal 3 3Moz » Rapidly expanding mining sector TOTAL 3 +170Moz with over 60 foreign companies exploring in Burkina Faso3 » Pro-mining government that operates under a modern, clear mining code (revised in 2003) » Good infrastructure (grid power, water) 3Mining Journal special publication, “Burkina Faso”, Nov 2011ASX VTM | PAGE 14 Table: Greenstone belt exposure and Au deposits, West Africa (source: USGC Minerals Commodities)
  14. 14. Gold project portfolio, Burkina FasoOption to acquire 100% interest in threeprojects in Burkina Faso*Koro Gold Project» Three (3) permits totalling: 615.6km2» Evidence of three (3) artisanal mining sites» Maiden auger drilling programme completeIbi Palga Gold Project» Two (2) permits totalling: 492km2» Evidence of five (5) artisanal mining sites» Maiden auger drilling programme completeDangue Gold Project» One (1) permit totalling: 242.51km2» Evidence of three (3) artisanal mining sites» Exploration programme underway *For full commercial terms see ASX Announcement “Volta Mining acquires strategicASX VTM | PAGE 15 portfolio of new projects in Burkina Faso and Mali” dated 27 January, 2012
  15. 15. Koro & Ibi Palga Gold Projects: auger resultsWhat is the significance of the maiden auger drilling programmeresults?» Drilling to date (11,836m; 1,311 holes) has confirmed large areas of anomalous gold at artisanal mining sites at the Koro and Ibi Palga Gold Projects» The results confirm the potential for the areas to host significant gold mineralization» Follow-up RC and infill auger drilling programmes are planned for both Koro and Ibi Palga Gold Projects» Overall, the results support Volta Mining’s objective to define at least one gold resource of 1 million ounces of goldASX VTM | PAGE 16
  16. 16. Koro & Ibi Palga Gold Projects: regional geologyASX VTM | PAGE 17
  17. 17. Koro Gold Project, Burkina Faso: auger resultsArbole Sud–Titanguen artisanal mining site» Results have confirmed the presence of surface gold anomalism with geochemical values up to 11,000ppb» Previously defined anomalous area has the potential to be increased up to 7km based on regional auger results and geophysical information» Geochemical auger drilling suggests that the style of mineralisation is similar to that of the Kalsaka gold mine situated in greenstone (green schist) 30km to the north» Stage 1 RC drilling and infill auger drilling programmes are being planned to test the extension of the Arbole Sud-Titanguen artisanal mining siteASX VTM | PAGE 18
  18. 18. Koro Gold Project, Burkina Faso: auger resultsASX VTM | PAGE 19
  19. 19. Ibi Palga Gold Project, Burkina Faso: auger resultsDoussare-Kouma artisanal mining site» Results have confirmed the presence of surface gold anomalism with geochemical values up to 1,030ppb» Previously defined anomalous area remains open along strike based on regional auger results and geophysical information» Geochemical auger drilling suggests that the style of mineralisation is shear zone style gold mineralisation» Stage 1 RC drilling and infill auger drilling programmes are being planned to test the extension of the Doussare-Kouma artisanal mining siteASX VTM | PAGE 20
  20. 20. Ibi Palga Gold Project, Burkina Faso: auger resultsASX VTM | PAGE 21
  21. 21. Next stepsExploration plan – Stage 1» 4,000m RC drilling across both project sites» 20,000m auger drilling (infill and regional) across both project sitesTimeframe:» 6 - 8 monthsFunding» Fully funded to complete both programmesOutcomes» Proof of concept to warrant resource drill outASX VTM | PAGE 22
  22. 22. Our value proposition: current portfolioVolta Mining’s current portfolio of assets have the potential to be acompany maker in their own right 500 450 Market capitalization (AUD millions; approximate at 31 Jan 2012) There is the 400 An increase in market potential for capitalisation is possible significant upside 350 following the achievement upon the of Volta Mining’s medium diversification of 300 term goals which include: Volta Mining’s » An increase in land portfolio to include 250 position in Burkina an iron ore asset Faso 200 » The completion of RC & auger drilling 150 ? programmes on new projects 100 ? 50 0 Volta Mining Canyon Boss Middle Island Mt Isa Minerals West African Golden Rim Ampella Mining Gryphon Limited Resources Resources Resources Ltd Minerals Ltd Limited Have a JORC Gold Explorers Resource Market capitalisation AUD27 – AUD60 million >2MozASX VTM | PAGE 23
  23. 23. Section 3Iron ore in Gabon
  24. 24. Why iron ore in Gabon? Geology 2 Belinga Infrastructure iron ore (4BT @ +60% Fe) No cross-border issues Politically stable Actively looking to increase foreign investment in miningASX VTM | PAGE 25
  25. 25. Imminent potential iron ore acquisition» Can leverage off the Belinga (4BT @ +60% Fe) committed infrastructure» Management view Gabon acquisition as a better opportunity than Mayoko initially presented» Intend to have an exploration target in the short termASX VTM | PAGE 26
  26. 26. Track record of success Volta Mining’s management team were responsible for the acquisition and development of the Mayoko Iron Ore Project (DMC Mining) in Republic of Congo which grew from 33MT to an Exploration Target of 0.7BT – 1BT of iron ore in a three (3) year period 2007 - 2010 2011 to date Mr David Sumich Mr David Sumich Managing Director & Managing Director & Founder Founder Dr Alain Gachet Dr Alain Gachet Technical Consultant Technical Director Mr Mohammed Munkailah Mr Mohammed Munkailah Country Manager Regional Manager, Africa Mr Liviu Tusa Mr Liviu Tusa Senior Geologist Exploration ManagerASX VTM | PAGE 27
  27. 27. Case study #1: DMC Mining Limited Mr David Sumich Founder & Managing Director (2007 – 2010) Commodity Iron ore Location Republic of Congo July 2007 » IPO: Market capitalization of approximately AUD5 AUD5 million million Dec 2007 » Acquired the Mayoko Iron Ore Project (Republic of Congo) May 2008 » Initial JORC resource – Mayoko Iron Ore Project (33MT) ACQUIRE May 2008 » Stage 1 drilling commenced June 2008 » Initial Scoping Study completed » Employed 100+ Congolese and trained five (5) geologists ADD VALUE » Local community provided with water and medical April 2009 » supplies Rail access agreement with CFCO June 2009 » MOU with port authority (PAPN) MONETIZE July 2009 » Exploration target size of 0.7-1.0 billion tonnes at Mayoko Iron Ore Project Dec 2009 » Stage 2 drilling and metallurgical testwork commenced 2012: African Iron Limited (ASX: AKI), owner of March » On-market cash takeover valued company at AUD50 Mayoko asset, under takeover for ~AUD330 2010 approximately AUD50 million million millionASX VTM | PAGE 28
  28. 28. Prospective assets: iron ore, GabonVolta has already formed strong in country relationships with keygovernment groupsHE Ali Bongo Ondimba, President of the Volta Mining’s David Sumich, Managing Director (l)Gabonese Republic speaking at the Volta Mining and Mohammed Munkailah, Regional Manager-sponsored Australia-Africa Business Council Africa (r) with Minister of Mines for the GabonesePresidential Breakfast - Perth, April 3, 2012 Republic (c)ASX VTM | PAGE 29
  29. 29. Section 4Summary: why invest in Volta Mining?
  30. 30. Summary: why invest in Volta Mining?» Management have acquired , developed and monetized world class projects and our vision for Volta Mining is to replicate and exceed past successes» The gold assets have the potential to be a company maker in their own right» RC programme to commence imminently with continuous flow of results to follow» Imminent Gabon iron ore acquisition has the ability to greatly increase market capitalisation within a short period of timeThank youASX VTM | PAGE 31
  31. 31. @VoltaMining