Alder Presentation September 2012

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Alder Presentation September 2012

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Alder Presentation September 2012

  1. 1. TSX-V: ALR NEWEST ENTRANT IN AN EMERGING COPPER-GOLD PORPHYRY DISTRICT September 2012 1
  2. 2. Forward Looking Statements This document contains forward-looking statements under Canadian securities legislation. Forward-looking statements include, but are not limited to, statements with respect to the development potential and timetable of the Rosita project; the timing and amount of estimated future development and exploration; costs of future activities; capital and operating expenditures; success of exploration activities; government regulation of mining operations; and environmental risks. Generally, forward-looking statements can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”. Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements, including but not limited to risks related to: timing and availability of external financing on acceptable terms; unexpected events and delays during construction, expansion and start-up; variations in ore grade and recovery rates; receipt and revocation of government approvals; actual results of exploration and mining activities; changes in project parameters as plans continue to be refined; future prices of metals; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes and other risks of the mining industry. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company does not undertake to update any forward-looking statements except in accordance with applicable securities laws. The technical and scientific information included herein has been reviewed and approved by Joseph Arengi, M.Sc., P.Geo , President and CEO of the Company, and a qualified person under National Instrument 43-101 of the Canadian Securities Administrators. 2
  3. 3. Investment Highlights Past producing • Option to earn a 65% interest in the robust copper-gold-silver Rosita project Rosita Project in • Historic production of 245 million lbs Cu, 160,000 oz Au and 2.6 million oz Ag Nicaragua from two pits1 Newest entrant to • Located in the prolific Mining Triangle of northeast Nicaragua • 7 km north of Calibre Mining/B2Gold’s Primavera prospect, a significant an emerging copper-gold porphyry discovery mining district • Stable, pro-mining government • Stockpiles include a NI 43-101 compliant inferred resource of 8 million tonnes Robust resource containing 108.5 million lbs Cu, 118,500 oz Au and 2.4 million oz Ag (1.01% Cu Eq. grade)2 • Initial 5,500 m drill program has identified a 1.1 km long and 200 m deep Cu- Significant Au-Ag mineralized zone at the Santa Rita deposit exploration upside • Drill highlights include 0.57% Cu, 1.52 g/t Au and 5.93 g/t Ag over 15 m, 29.54 g/t Au over 8 m and 1.42% Cu, 0.18 g/t Au and 20.45 g/t Ag over 10 m3 Experienced • Experienced management team and Board of Directors Management – Extensive exploration and community relations experience in Nicaragua1. Based upon historical data and reports obtained and prepared by previous operators and consultants (Arengi, 2003; Hendrickson, 1995; Rivera, 1977; Rosario, 1974; Sims, 1998).2. May 9, 2012 news release. Resource grades of 0.62% Cu, 0.46 g/t Au and 9.2 g/t Ag. Copper equivalent grade assumes a long term copper price of US$2.90/lb, gold price of US$1,200/oz and silver price of US$24/oz. 33. News releases dated May 31, 2012, September 5, 2012 and September 11, 2012
  4. 4. Management and Board of Directors Management Board of DirectorsJoseph Arengi | President and CEO Don Dudek | Chairman• 35 years of exploration and operational experience • Held various roles with junior and senior exploration and throughout Canada, Nicaragua, South America and mining companies over the past 28 years Africa • Currently serves as Senior VP Exploration for Avion• Credited with discovering 4 billion pounds of copper Gold Corp. and previously served as Exploration and 60 million ounces of silver in Botswana Manager for Aur Resources Inc.John Spurney | VP Exploration Rene Bharti | Director• Over 30 years of diversified technical and managerial • Has held roles in several public and private companies, experience in mineral exploration, primarily in Latin including experience in the mining sector which will be America, the Western U.S. and Asia important for the companys development of its projects• Previously held positions with Placer Dome and Bema in Nicaragua Gold Dan Bruno | DirectorRyan Ptolemy | CFO • Over 15 years of investment experience and was• Certified General Accountant and CFA charter holder previously a Managing Director of a US based Investment Bank and a Director in the Investment• Currently CFO of Rodinia Lithium Inc. and Belo Sun Banking group at GMP Securities Ltd. Mining Corp. Hon. Pierre Pettigrew | DirectorJosh van Deurzen | Corporate Secretary • Former Minister of Foreign Affairs and currently• Corporate and securities lawyer, working as a legal Executive Advisor, Deloitte Touche LLP consultant to various public and private companies in the resource-based sector • Current board member of several public companies Will Randall | Director • Professional Geologist and currently President and CEO of Rodinia Lithium Inc. 4
  5. 5. Share Capital and Share Performance Capital Structure (C$) Share Performance 3.0 $0.45TSX Venture Symbol ALR $0.40 2.5Share Price (September 13th, 2012) $0.10 $0.35 Volume (millions) 2.0 $0.30 Price (CAD)Share Price (52-week range) $0.07 - $0.29 $0.25 1.5Issued and Outstanding 72.8 million $0.20 1.0 $0.15Fully Diluted1 95.9 million $0.10 0.5Cash and Marketable Securities $1.0 million $0.05 0.0 $-Market Capitalization (Basic) $6.9 million Jan-11 Mar-11 Jul-11 May-11 Sep-11 Nov-11 Jan-12 Mar-12 Jul-12 May-12 Sep-12Insider/Institutional Holders 8.6% Volume Price (CAD)1. 7,175,000 options outstanding with a weighted average exercise price of $0.21 and a weighted average life of 2.7 years and 15,952,019 warrants outstanding with an exercise price of $0.20 expiring on January 31, 2014. 5
  6. 6. Rosita Cu-Au-Ag Project 6
  7. 7. Project Overview • Option agreement with Calibre Mining to earn a 65% interest in the Rosita D concession by making the following payments: – Project expenditures of C$4.0 million (C$0.5 million already spent) – Issuance of 1,000,000 shares over a four year period (400,000 shares have been issued) • NI 43-101 compliant inferred stockpile resource of 108.5 million lbs Cu, 118,500 oz South Stockpiles Au and 2,354,300 oz Ag1 • Completed an initial 5,500 m drill program centered on the past producing Santa Rita and R-13 deposits • Mineralization below the Santa Rita pit is open along strike to the east, west and down dip • Exploration upside from the Bambana prospect located 4 km northwest of Santa Rita North Stockpiles – 400 m drill program completed • Historical data suggests a significant precious metal component to the mineralized system1. May 9, 2012 news release. Mineral resource estimate consists of 7.95 million tonnes grading of 0.62% Cu, 0.46 g/t Au and 9.2 g/t Ag. 7
  8. 8. Project Location• The Rosita D concession covers 3,356 hectares in the prolific Mining Triangle of northeast Nicaragua, 275 km northeast of the capital city of Managua• 7 km north of the Primavera prospect (Calibre Mining/B2Gold), where a significant porphyry style Au-Cu mineralization has been discovered Project Location Mining in Nicaragua • Rated the safest country in Central America with a long mining history • Modern infrastructure and easily accessible • Stable, supportive and democratically elected government Cobre Panama supportive of foreign investment 605 M tonnes Cu • Supportive mining laws with an attractive tax regime: 3% NSR, 30% Cerro Colorado 1,445 M tonnes Cu Net Profits Tax • Three producing gold mines: – La Libertad and El Limon Mines (B2Gold) – Bonanza Mine (Hemco) Prolific, underexplored mining district with a stable, pro-mining government 8
  9. 9. Nicaragua – An Emerging Porphyry District Bonanza 3.0M ozs Au production* Puerto Cabezas Managua Forest Reserve Rosita 108M lbs Cu, 118K ozs Au, 2.4M ozs Ag resource1 Primavera B2Gold/Calibre Discovery Alder Calibre Calibre-B2Gold Siuna Hemco2.3M ozs Au production* *See data in NI43-101 Technical Report entitled “Technical Report on the Copper-Gold-Silver Porphyry/Skarn Project at the Rosita D Concession dated January 5, 2012 which is filed on SEDAR. Mining Triangle of Nicaragua has produced over 305 million lbs Cu and 8 million oz Au1. May 9, 2012 news release. Mineral resource estimate consists of 7.95 million tonnes grading of 0.62% Cu, 0.46 g/t Au and 9.2 g/t Ag. 9
  10. 10. Project History • Concession hosts the historic open-pit Santa Exploration History Rita copper-gold-silver deposit 1906 - 1912 Exploration and mining production – Historic production of 245 million lbs Cu, 1916 – 1918 Tunnel and drilling 160,000 oz Au and 2.61 million oz Ag1 1950 Tunnel sampling and diamond drilling – Reported mill recoveries of 60 – 80% 1955 Diamond drilling • Early mining focused on high grade ore (5.37 1959 – 1974 Mining million tonnes of ore mined grading 2.06% Cu, 0.93 g/t Au and 15.08 g/t Ag) with 2% copper 1981 – 1983 Geophysical survey, soil sampling and diamond drilling stockpiled in early days1 1996 – 1998 RC drilling, Geophysical survey and • First gold recovery during the last five years of soil sampling production 2008 Trenching and rock sampling • Mine closed in 1975 due to low copper prices 2009 – 2010 Trenching, mapping, soil sampling and diamond drilling • Management believes that a substantial amount of Cu-Au-Ag mineralization lies both 2011 - 2012 Channel sampling and RC sampling on stockpiles below and adjacent to the Santa Rita pit Robust deposit with substantial historical copper, gold and silver production1. Based upon historical data and reports obtained and prepared by previous operators and consultants (Arengi, 2003; Hendrickson, 1995; Rivera, 1977; Rosario, 1974; Sims, 1998). 10
  11. 11. Project Geology, Targets and Prospects Multiple highly prospective targets yet to be drilled 11
  12. 12. Santa Rita Inferred Stockpile Resource1 Santa RitaTONNES Cu Au Compliant Inferred Resource STOCKPILE Stockpiles – Ag CuEq Cu Au Ag (Mt) (%) (g/t) (g/t) (%) (M lbs) (oz) (oz) NORTH 3.33 0.78 0.58 10.3 1.25 56.99 62,100 1,100,900 SOUTH 2.20 0.33 0.49 5.1 0.69 16.16 34,700 360,000 NE 0.55 0.50 0.22 9.6 0.75 6.06 3,800 168,300 EAST 1.88 0.71 0.30 12.0 1.03 29.33 17,900 725,100 TOTALS 7.95 0.62 0.46 9.2 1.01 108.54 118,500 2,354,300 Notes on Mineral Resource Estimation 1. The mineral resource estimate base case is reported at a 0.15% copper equivalent cut-off grade; this cut-off incorporates consideration of mining and processing cost, recoveries, commodity prices and selling cost. 2. The mineral resource estimate is reported on an undiluted basis. 3. The mineral resource estimate assumes a long term copper price of US$2.90/lb, a gold price of US$1,200/oz and a silver price of US$24/oz. 4. Rounding as required by NI 43-101 reporting guidelines may result in apparent summation differences between tonnes, grade and contained metal content. 5. Tonnage and grade measurements are in metric units. Contained gold and silver ounces are reported as troy ounces, contained copper pounds as imperial pounds. 6. Mineral resources that are not mineral reserves do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, sociopolitical, marketing, or other relevant issues. 7. The quantity and grade of reported inferred mineral resources in this estimation are uncertain in nature and there has been insufficient exploration to define these inferred mineral resources as indicated or measured mineral resources and it is uncertain if further exploration will result in upgrading them to indicated or measured mineral resources. Robust resource base at low resource discovery cost of $0.01/lb Cu21. NI 43-101 Technical Report on Mineral Resource Estimate of Rosita Stockpiles dated May 8, 2012 (Coffee Mining Pty Ltd) as filed on SEDAR.2. Based on the inferred copper resource and total exploration expenditures of $900,000. 12
  13. 13. Santa Rita and R-13 Deposits • 18 diamond drill holes totaling 5,500 m completed Santa Rita and R-13 Drill Plan • Wide intercept of 65 m grading 1.48 g/t Au including 8 m grading 6.9 g/t Au and 15 m grading 0.57% Cu, 1.52 g/t Au and 5.93 g/t Ag in hole D9101 • Hole D914 intercepted 8 m grading 29.54 g/t Au from 240 m, including 2 m grading 110.68 g/t Au2 – Visible gold noted locally in the drill core – Results demonstrate the presence of bonanza grade gold values along a northwest-trending gold- bearing corridor • Hole D915 returned 10 m grading 1.42% Cu, 0.18 g/t Au and 20.45 g/t Ag3 within a wider intercept approximately 120 m below the base of the Rosita pit • Drill program has been successful in identifying skarn-hosted Cu-Au-Ag mineralization along a 1.1 km long and 200 m deep corridor below and adjacent to the Santa Rita pit Potential to add additional tonnage to an already robust stockpile resource1. News release dated May 31, 20122. News release dated September 5, 2012 133. News release dated September 11, 2012
  14. 14. Santa Rita/R-13 Zone Skarn Cu Mineralization Note: Alder has not yet verified the historic drill results reported herein and does not intend to use this information for purposes other than planning and prioritizing exploration targets. See news releases of May 31, 2012 and September 11, 2012 14
  15. 15. Santa Rita/R-13 Zone Skarn Au/Ag Mineralization Higher Gold Values Note: Alder has not yet verified the historic drill results reported herein and does not intend to use this information for purposes other than planning and prioritizing exploration targets. See news releases of May 31, 2012 and September 11, 2012 15
  16. 16. Santa Rita and R-13 Drill Highlights To Thickness Cu Au Ag Hole ID Area From (m) (m) (m) (%) (g/t) (g/t) D901 Sta Rita 75 85.9 10.9 0.36 0.15 6.32 " 89 92 3 0.12 1.27 3.57 D906 R-13 213 217 4 0.49 1.15 4.40 D910 Sta Rita 50 115 65 0.20 1.48 (1.00 cut) 2.00 Including 84 92 8 <0.1 6.90 (3.03 cut) <0.1 and 100 115 15 0.57 1.52 5.93 and 106 110 4 1.46 3.22 15.25 D911 R-13 173 179 6 0.05 1.86 3.15 and 289 292 3 0.80 10.45 (10.33 cut) 21.83 including 290 291 1 0.48 30.37 (30.00 cut) 11.6 D912 Santa Rita 156 158 2 1.24 1.45 12.25 and 197 201 4 0.03 1.76 0.09 D914 Sta Rita 235 250 15 0.04 15.82 (5.62 cut) 0.23 including 240 248 8 0.04 29.54 (9.38 cut) 0.29 including 241 243 2 0.04 110.69 (30.00 cut) 0.60 D915 Santa Rita 57 63 6 0.36 0.15 3.07 and 96 149 53 0.50 0.08 6.44 including 128 138 10 1.42 0.18 20.45 and 129 133 4 1.94 0.25 30.05 D916 Santa Rita 7 12 5 0.33 0.09 1.14 D917 Santa Rita 0 55 55 0.05 0.31 0.86 including 8 14 6 0.19 1.07 3.62 and 98 105 7 0.32 0.13 4.37 and 165 169 4 0.35 0.55 2.40 D918 Santa Rita 71 85 14 0.87 0.81 7.96Excellent drill results illustrate the potential to establish a significant high grade resource Note: See news releases dated May 31, 2012, September 5, 2012 and September 11, 2012 16
  17. 17. Santa Rita Targets A A Multiple Cu-Au-Ag skarn targets, historic resource C B Santa Rita/R-13 corridor, Cu-Au-Ag skarn D C B New Au discovery, 29.54 g/t Au over 8m1 D Porphyry Cu target, strong porphyry textures, highly anomalous Cu, Au1. See news release dated September 5, 2012 17
  18. 18. Bambana Prospect• Located 4 km northwest of the Santa Rita zone Bambana Drill Holes• Calibre Mining completed three drill holes that returned intercepts of up to 48 m grading 0.43% Cu and 11.5 m grading 0.51% Cu and 0.25 g/t Au• March 2012: a 175 m long trench returned porphyry-style mineralization that included 12 m grading 3.32% Cu, 0.22 g/t Au and 37.55 g/t Ag1• June 2012: rock-chip sampling at two benches returned two wide intercepts of 29 m grading 2.09% Cu, 0.19 g/t Au and 14.6 g/t Ag and 29 m grading 1.98% Cu, 0.14 g/t Au and 14.4 g/t Ag• 400 m drill program has successfully confirmed the presence of shallow, high grade, oxide copper and silver mineralization that remains open in all directions, as well as porphyry copper potential that remains largely untested• Plans to complete additional trenching, mapping, geochemical surveys and prospecting to further define the extent of the mineralization Close proximity to the Santa Rita pit provides future development upside1. News release dated March 1, 20122. News release dated June 13, 2012 18
  19. 19. Bambana Prospect – T3 Zone Bench Sample 3.07% Cu, 0.14 g/t Au and 14.4 g/t Ag over 1 m11. News release dated June 13, 2012 19
  20. 20. Ground Magnetic Survey – 108 km A number of prospective anomalies warrant follow-up exploration work 20
  21. 21. IP Geophysical Survey – 79 km IP Targets A number of prospective anomalies warrant follow-up exploration work 21
  22. 22. Geophysics Compilation A number of prospective anomalies warrant follow-up exploration work 22
  23. 23. Exploration and Development TimelineMilestone Q4 2012 Q1 2013 Q2 2013 Q3 2013Diamond Drilling – Santa Rita (7,500 m)Diamond Drilling – Bambana (2,500 m)Metallurgical TestingResource Estimate – Santa RitaScoping StudyGeneral Exploration Ongoing 23
  24. 24. Reasons to Invest Past producing project Newest entrant to a stable Robust resource base with with significant economic and emerging mining exploration upside potential district • Previously a robust, open-pit • Located in the prolific Mining • Stockpiles include a NI 43-101 mine with historic production of Triangle of northeast compliant inferred resource of 245 million lbs Cu, 160,000 oz Nicaragua, host to several 8 million tonnes containing Au and 2.61 million oz Ag1 significant copper and gold 108.5 million lbs Cu, 118,500 • Potential for project with porphyry deposits oz Au and 2.4 million oz Ag excellent economics at current • Stable, pro-mining government (1.01% Cu Eq. grade)2 copper price levels with supportive mining laws • Excellent drill results illustrate and an attractive mining tax the potential to establish a regime significant high grade resource1. Based upon historical data and reports obtained and prepared by previous operators and consultants (Arengi, 2003; Hendrickson, 1995; Rivera, 1977; Rosario, 1974; Sims, 1998).2. May 9, 2012 news release. Resource grades of 0.62% Cu, 0.46 g/t Au and 9.2 g/t Ag. Copper equivalent grade assumes a long term copper price of US$2.90/lb, gold price of 24 US$1,200/oz and silver price of US$24/oz.
  25. 25. TSX-V: ALR Contact Information 65 Queen Street West, Suite 800 Toronto, ON, M5H 2M5 info@alderresources.ca Joseph Arengi Don Dudek President and CEO Chairman (416) 309-4296 (416) 861-2261 jarengi@alderresources.ca 25

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