Business Model Canvas (BMC)- A new venture concept
Verde Corporate presentation
1. A Fresh Approach to Porphyry Exploration in South America
Corporate Presentation
February 2011
Verde Resources Inc.
2. Forward-Looking Statements and Disclaimers
Forward-
This presentation IS CONFIDENTIAL and contains certain "forward-looking statements",
including but not limited to, the statements regarding the Company’s overall objectives and
strategic plans, future commercial production, project targets, timetables, operating costs,
capital expenditures, work programs, exploration budgets and targets, mineral reserve and
resource estimates and outlook, and safety and sustainability initiatives. Forward-looking
statements express, as at the date of this presentation, the Company’s plans, estimates,
forecasts, projections, expectations or beliefs as to future events or results. Forward-looking
statements involve a number of risks and uncertainties, many of which are beyond the
Company’s control, and there can be no assurance that such statements will prove to be
accurate. Therefore, actual results and future events could differ materially from those
anticipated in such statements. Risks and uncertainties that could cause results of future
events to differ materially from current expectations expressed or implied by the forward-
looking statements include, but are not limited to, factors associated with fluctuations in the
market price of precious metals, mining industry risks and hazards, uncertainty as to
estimation of mineral reserves and resources, requirements of additional financing risk, risks
of delays in construction, production or obtaining permits and other risks. The reader is
cautioned not to place undue reliance on these forward-looking statements. The Company
does not undertake to update any forward-looking statement that is contained in this
presentation.
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3. Verde Resources Presentation
Why copper - Factoids
Strategy - Existing projects
- Projects coming on
Who we are - Team
Projects - Peru
- Chile
- Generative
Financials - Share structure
- Cash
- Burn rate
- Pre IPO - IPO
Use of funds - Caballerias
- Potreros
- Escalones Norte
- Future
Delivered and Deliverables
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4. Why are we doing this?
Global Copper Demand
- US demand alone = additional 140Mt Cu/a =
35 new producing porphyry copper mines
by 2025 (Singer & Menzie: GSA, Oct 2009)
- China is building 10 “New York” Cities by
2025
Copper Supply
- 70% of producing mines > 20 years old
- 30% of producing mines > 50 years old
Copper Price
- Macquarie estimate 550,000-Mt deficit in
2011 pushing prices to $5/lb (DEC2010)
- B of A Merril Lynch mid 2012 copper price
forecast (Nov2010): $5.90/lb
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5. Strategy
Find & Develop Porphyries:
“Giant homogeneous money makers”
- Stake experienced geologists’ target concepts in Chile & Peru
- Use corporate management networks to make acquisitions
- Prioritize targets around known world class systems with
potential for >500Mt @ > 0.5% Cu
- Ground check – consolidate land position / acquire property
explore – delineate
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6. Experienced and Driven Board
Directors
John Gray, President & CEO & Director (Based in Chile)
– Principal role raising $20M as former CEO African Aura Resources (TSX-V:AUR)
– Founder: Basti Resources (Spanish gold) & Northern Minerals (Swedish base
metals)
– 20 years exploration in Americas-Africa-Europe with Homestake/Noranda/Rayrock
John-Mark Staude, Founder & Director
– Founder & CEO: Riverside Resources (TSXV-RRI)
– 20 years of exploration experience with Magma Copper, BHPB, Teck, RTZ
– Principal role in raising $30M
Darren Klinck, Founder & Director
– Principal role in raising $300M for Au & Cu projects in Mexico and Australasia
– VP, Corporate & Investor Relations Oceana Gold Corp (TSX-OGC)
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7. Experienced and Driven Management
Exploration and Advisory Team
Artemio Chirre, Chief Geologist (Peru)
– 15 years regional & project specific porphyry-skarn-epithermal exploration experience
(Tintaya, Las Bambas, Yanacocha & Antamina in Ancash, Tacna, Apurimac, Ica & Cajamarca)
– Project experience (Anglogold Ashanti, BHP Billiton, Buenaventura & Hochschild)
Ron Luethe, Geologist (Chile)
– Based in Chile; expert on Peruvian, Chilean and Argentine copper deposits
– 25 years Exploration and Senior Manager (Xstrata, BHPB, Phelps Dodge, Magma Copper)
Bill Murray, P. Eng C.Eng, Executive Chairman, Polymet Mining
– 35 years experience in project evaluation and development (Anglo American, Denison Mines,
Fluor Daniel, Polymet)
Paul Troiano, CFA CPA, Investment Banking, Scarsdale Equities LLC
– New York based; 7 years experience in corporate finance and asset management in the
mining exploration and development sector
Robin Longe (B.Sc UBC, Juris Doctor UofT), Corporate Lawyer, Bull, Housser &
Tupper LLP
– Five years' experience in M & A's and corporate governance with a focus on the mining sector
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8. Porphyry Copper & Skarn, South Peru
Caballerias project
- Option to acquire 100% of high grade porphyry + skarn
- Deal: US$500,000 plus US$1.5M payment; 2% NSR
- Targetting >US$10bn Cu metal
- Open in all directions
- Skarn grabs @ >10% Cu & 0.44g/t Au
- Porphyry grabs up to 0.5% Cu
Skarn
- Supportive local community
- Last mined in ‘80s & drilled in ’90s Porphyry
- Good access and infrastructure
Other projects in the Yauri-Andahuaylas belt
Copper
Porphyry
Los Chancas 355Mt @ 0.62% Cu, Grupo Mexico
Antilla 154 Mt @ 0.47% Cu, Panoro
Trapiche 552Mt@0.46% Cu Buenaventura 2.5 Km
Caballerias (Early stage) Verde Resources
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12. Porphyry Gold, Maricunga, Chile
Potrero project
- Option to earn 70% through US$6M workplan
- On trend with multiple producing mines
- Best RC drilled grades from 3 holes:
- 126m @ 0.44g/t Au
- 4m @ 0.40g/t Au
- 12m @ 0.51g/t Au
- Best outcrop grab sample: 7g/t Au
Work Plan
Due Dates Exploration Expenditure Interest Earned
By 31 March, 2012 $1,000,000 51%
Year ending 31 March, 2013 $1,000,000 60%
Year ending 31 March, 2014 $2,000,000 65%
Year ending 31 March, 2015 $2,000,000 70%
Total: $6,000,000
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13. Porphyry Copper, Central Chile
Escalones Norte Project
- Option to earn 70%:
$1M expenditure → 51%
+ $1.5M expend → 70%
- Same district as world class El Teniente
Mine
- Abundant Cu oxides at surface
- Surface grab samples grade
0.29-1.0% Cu
0.12-0.15g/t Au
- Drilling at Escalones has proven a
resource and Norte is undrilled
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14. Porphyry Copper Generative, Peru
Artemio Chirre
- Chief Geologist (Peru) & Shareholder
- 15 years local porphyry and skarn experience
- Minimal budget generating high value targets
- Prospecting 2 main belts
- Projects accessible by drivable tracks
- Projects near to Pacific coast
Yauri–Andahuaylas Batholith:
Skarn & Pophyry Belt
Coastal Batholith
Porphyry Belt
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15. Porphyry Copper Generative, Chile
Carolina project Strategic staking
- Exposed porphyry copper - Next to El Abra (166,000t/y Cu cathode)
- Supergene malachite identified - 40km2 staked
- Exceptional option terms - Potential for 100+Mt @ 1+% Cu
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16. Delivered and Deliverables
August – November 2010
• Seed financing rounds completed
• Peruvian & Chilean subsidiaries established
• Advisory Board elected and invested
• CEO moved to Chile
• Peruvian Chief Geo signed
• IPO lead counsel appointed
• Peruvian and Chilean porphyry deals signed
December 2010 – January 2011
• Pre-IPO financing for sophisticated investors
• Initiate 43-101 field work on lead projects
• Target IPO for Q2 2011 Hire senior Chilean
technical staff
• Build out corporate team (CFO & Chairman)
Peruvian and Chilean porphyry belts
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17. A Fresh Approach to Porphyry Exploration in South America
Contact us:
John Gray, President & CEO
j.gray@verdecopper.com
+56 (9) 9577 5307 (Chile)
John-Mark Staude, Director Darren Klinck, Director
johnmark@verdecopper.com darren@verdecopper.com
+1 604 338 7742 (Canada) +61 420 981 119 (Australia)
www.verdecopper.com
Verde Resources Inc.
