Zimtu INSIDE Newsletter [Issue 01/2013]


Published on

Zimtu INSIDE Newsletter [Issue 01/2013]

Published in: Investor Relations
  • Be the first to comment

  • Be the first to like this

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

Zimtu INSIDE Newsletter [Issue 01/2013]

  1. 1. ISSUE 01/2013 BREAKING INSIDE INSIDE www.twitter.com/Zimtu CONNECTING OPPORTUNITY AND YOU. NEWS www.facebook.com/Zimt Zimtu Capital is very excited by www.twitter.com/Zimtu the Breaking News that has just been released by Commerce Re- sources on the achievement of the highest grade mineral con- centrate by a Rare Earth junior (Feb 20, 2013). The fundamen- tal importance of being able to produce a mineral concentrate www.facebook.com/Zim speaks directly to the expected lower processing costs and in this regard, it is thought that the Ash- ram Project could have very low, if not the lowest, operating costs out of the current developing rare earth element projects. ASHRAM RARE EARTH PROJECTCONTENT: URANIUM IS HOT AGAIN - ZIMTU IS INGUEST ARTICLE: SEIZING OPPORTUNITIES IN THE ATHABASCA BASINTANTALUM SUPPLY SQUEEZEThe number of handheld electronic de- The most recent M&A announcements regarding tons to megawatts” is running out by thevices is increasing at a phenomenal pace. Fission Energy and Uranium One have been a end of this year. The pressure for the USAll of them require tantalum capacitors. wake up call to the Uranium sector. Notably the is particularly high. As the New York basedCommerce Resources is working to provi- south-western part of the Athabasca basin has resource analyst Chris Berry has recentlyde a solution to the growing supply gap. triggered new interest from investors leading to pointed out the US is only producing 4M rocketing share prices and major financings. Zim- pounds of U3O8 domestically, but is consu- ...more on page 3 tu is seizing the opportunity by securing two equi- ming 55M. pounds per year. That should ty positions in the space: Clermont Capital (TSXv: be a concern to politicians in WashingtonINTERVIEW: XYZ.P) and Lakeland Resources (TSXv: LK). and a raging opportunity for the market.BRAND NEW: ZIMTU by Sven OlssonGOES FLUORSPAR As of today Zimtu has seized two urani-One of Zimtu‘s newest ventures is in um related opportunities in the Athabascafluorspar! Former Evolving Gold CEO basin. The first one is through the owner- TRobert Bick explains why he is excited he renaissance of the uranium sector ship of 1M shares in Clermont Capital, aabout the opportunity. was overdue. Effectively the market CPC, that has just entered a binding ag- ...more on page 4 and 5 had already been prepared to rally reement to amalgamate with the Austra- two years ago, when the Fukushima acci- lian NexGen Energy group in order to list dent smashed the sector and made explo- their flagship asset which is the RadioGUEST ARTICLE: Project located adjacent to Rio Tinto’s ration almost impossible to fund. Now thisMAJOR PROGESS IN TURKEY Roughrider Uranium Deposit and to the two year delay translates into an ever biggerIn just one year, Pasinex Resources has pressure on the industry to balance supply Fission Energy discovery. We are awareestablished itself as a serious player in and demand. According to the World Nu- that the financing is well underway andthe exploration for base metals in Turkey, clear Association 62 reactors are currently expect the transaction to complete shortly.working two flagship projects in zinc andcopper. being built and more than 400 are in the planning stage. Japan, currently respon- The second opportunity is Lakeland Resour- ...more on page 6 sible for 10% of the world consumption, ces’ negotiations to acquire a significant is about to return to nuclear power under land position within the Athabasca Basin. Besuchen Sie uns: it’s new liberal government. And last but With ownership in over 4.3M shares, Lake- not least the transfer of uranium from Rus- www.zimtu.com Visit us: www.ZIMTU.com land represents a significant equity position sia to the US under the program “mega- for Zimtu. -1- www.ZIMTU.com
  2. 2. INSIDECOMMENTARYZIMTU PERSPECTIVE2012 was a dark year for the exploration In addition, we anticipate that equityindustry. We observed investors shying holding Prima Fluorspar will shortlyaway from early-stage opportunities in complete its Reverse Takeover and listingan effort to minimize risk. This created on the TSX Venture Exchange. Primaa lack of liquidity in the markets which Fluorspar is led by Robert Bick, the formerconsequently made it extremely difficult CEO of Evolving Gold. We co-hosted thefor many companies to finance. With that Fluorspar 2012 Conference last Octobersaid, it is worthwhile noting that Zimtu was and were encouraged hearing of the growingable to complete a financing in addition to supply side deficit from the many majormany of our important equity holdings such chemical companies. As Zimtu will ownas Western Potash, Commerce Resources, 7.5 million shares of Prima Fluorspar, wePasinex Resources, Prima Fluorspar and will be following the company’s explorationMontan Capital to the tune of over 18 activities and developments closely.million dollars. Prima Fluorspar is also the first exampleIn exploration, money translates into pro- of a closer collaboration with 49 North Sven Olsson Director of Zimtu Capital Corp.gress. Western Potash produced their bank- Resources of Saskatoon. The second isable feasibility study showing exceptionally Redstar Ventures; a Capital Pool Companystrong economics for the Milestone Potash that has recently announced an acquisitionProject in Saskatchewan. Commerce Re- as its Qualifying Transaction. Thissources presented two PEAs for the Blue transaction will be Zimtu’s first involvement EVENT DATES:River Tantalum-Niobium Project and El- in the oil business in Saskatchewan. Upondor Rare Earth Element Project. Pasinex closing it is proposed that Zimtu will own Here you can findResources secured two major base me-tal projects in Turkey and Montan Capital more than 2.6 million shares. all events wherecompleted its Initial Public Offering. Withregards to our transactional business, Zim- A major turn-around is Pasinex Resources which commenced activities last year. you can meet us.tu completed eight property transactions in We are pleased with the progress thethe graphite space; adding over 10 million company has made to date: securing $2.8 March 3-6, 2013shares in various companies to the our as- million, establishment of a joint venture PDAC 2013set base. The graphite sector was one of the partnership, and the acquisition of two TORONTO, CANADArare ‘bright’ sectors in the last year. significant projects exploring for zinc and copper in Turkey. We feel that Turkey holds March 16-22, 2013No doubt share prices are depressed if not significant exploration potential. MINES & MONEY HONG KONGto say depressing, but regardless of this, HONG KONGZimtu has continued to invest and create The transition from a private to publicnew opportunities. For example, Zimtu has company if often a challenge. Zimtu holds April 5-6, 2013secured equity positions in two companies equity positions in a number of private CAMBRIDGE HOUSE CRIC 2013well positioned in the uranium sector within companies that are in various stages ofthe Athabasca Basin. seeking a public listing. It is true to say CALGARY, CANADA that our business sometimes requires a lot social media link of patience. April 19-20, 2013 INVEST STUTTGART 2013 STUTTGART, GERMANY IMPRINT: DISCLAIMER: November 1-2, 2013 EDELMETALLMESSE MÜNCHEN PUBLISHER: The views expressed here in this newsletter contain Zimtu Capital Corp. information derived from publicly available sources MÜNCHEN, GERMANY Suite 1450 - 789 West Pender St. and have not been independently verified. Vancouver, BC V6C 1H2 Canada No representation or warranty is made as to the Tel: +1 604 681 1568 accuracy, completeness or reliability of the infor- Fax: +1 604 681 8240 mation. website URL EDITOR: Any forward looking information in this newsletter Sven Olsson has been prepared on the basis of a number of as- sumptions which may prove to be incorrect. This GUEST ARTICLE: newsletter should not be relied upon as a recom- Steve Williams, CEO of Pasinex Resources Ltd. mendation or forecast by Zimtu Capital Corp. or any other company mentioned in this newsletter. LAYOUT & DESIGN: Hitman Creative Media Inc. Nothing in this newsletter should be constructed as either an offer to sell or a solicitation of an offer to buy or sell shares in any jurisdiction. Visit us: www.ZIMTU.com -2- www.ZIMTU.com
  3. 3. INSIDEGUEST ARTICLETANTALUM IS BACK ON THE AGENDACOMMERCE IS - IN A GOOD WAY - A TWO-HEADED MONSTERChris Grove, Director of Commerce Resources is found in the Dodd-Frank financial reform(TSX.V: CCE), discusses upcoming expectations bill signed into law by President Obama infor their Rare Earth and Tantalum / Niobium pro- July 2010. This Conflict Minerals languagejects. is an attempt to address the fundamental reasons causing the suffering in the Demo- cratic Republic of Congo – which has requi-T antalum is back in the news at this red the continued presence of the largest time – as one of the Three T’s that UN peacekeeping force in the world - that the current US Conflict Minerals le- of the extractive practices that has produ-gislation and subsequent SEC ruling is fo- ced a significant amount of the tantalumcused on - and it is arguably the commodity that is found on the global market.that is in the greatest supply shortfall out ofall commodities. Because of these signifi- To conclude, there is a significant tantalum Chris Grovecant factors there is upward price pressure Director of Commerce Resources shortfall from primary production, produc-on tantalum and the highest prices we have tion shortfalls and stockpiles and in addi-ever seen for this essential commodity. tion there is legislation that prohibits the use of conflict tantalum by any US listedTantalum is essential in the continued de- company or its suppliers.sign and manufacture of all electronics.There is no substitute for tantalum and in This leaves us now with the potential to be-fact there has been a shift towards replacing come the largest producer of the commo- Mr. Chris Grove is an experienced com-tungsten and titanium parts dity that is in the greatest munications and marketing professio-with tantalum based parts WE HAVE BUILT A supply shortfall of all com- nal with several years experience withbecause of its superiority in modities. private and public early stage growthall aspects combined with STRONG POSITION companies in the resource sector. Mr.its unequaled performance AT THIS TIME AND And our resource continues Grove is currently the Director of Cor-reliability. THIS IS BEING to grow. Following the com- porate Communications for Commerce Resources Corp. (TSXv:CCE) an explo- RECOGNIZED BY THE pletion by AMEC of the PEA ration and development company withOur involvement with tanta- WORLD’S TANTALUM for our Upper Fir deposit a particular focus on tantalum, niobiumlum goes back to the tech in November 2011, AMEC and rare metal deposits.boom in 1999/2000 when CONSUMERS. has reported a 42% incre-Dave Hodge the president ase of our resource in Julyof Commerce Resources correctly (IMHO) 2012 and there will also be a new 43-101identified the opportunity that this metal pre- compliant resource estimate delivered this MAIN OFFICE:sented and we staked the Blue River claims year that includes all of the drilling we have 1450 – 789 West Pender Streetin British Columbia. Our Upper Fir project completed since the PEA was released. Vancouveris now the largest economically viable pro- BC, V6C 1H2duction scenario for tantalum in the world. We are in a strong position at this time and tel: +1 604 681 1568 this is being recognized by the world’s tan- fax: +1 604 681 8240Let me address the issue of scarcity first. talum consumers. Following the SEC ruling www.commerceresources.comA significant number of former tantalum last August, supporting the Conflict Mine-miners have put their projects under care rals legislation found in the Dodd-Frankand maintenance in addition to the produc- bill, we have seen an increase of interesttion shortfalls of current operating mines coming from companies that clearly under- on our ability to reduce our mass by ~95%,and the depletion of stockpiles. The current stand that they need to change their pro- which simply means that we can strip awayshortfall of material is approximately 3.3 curement policy to be compliant with the a huge amount of rock before we begin theMillion pounds which represents about half current reporting requirements that apply to standard acid leaching process. This ulti-of the global market that is usually reported all US listed companies and their suppliers. mately means lower operating costsas being 6 – 7 Million pounds per annum. Clearly, there is an increased urgency for these companies to make moves now that The Ashram REE project is huge, has highThere have been no new tantalum mines would ensure that they can continue to be grades, has a distribution with enrichmentstarted in the last 5 years and there are few viable in the world of electronics. in the light, middle and heavy REE’s, butother tantalum projects of size being worked most importantly, it is hosted by the threeon at this time. If you do the math, you may Commerce Resources is - in a good way - a minerals that dominate current commercialcome to the conclusion, as we have, that two-headed monster. Therefore it would be processing in China and California, whicheven if all of the current projects come into just wrong of me to not give you an update means the entire world.production that there will be a continued on our Ashram REE project in Quebec.shortfall for the foreseeable future. This deposit, as it continues to see metal- On February 20, 2013, we announced the lurgical advances is something that every-How, or from where, has this shortfall been production of a 40% TREO concentrate one should watch. We are sure that it willfilled? The answer to this question is best which is the highest grade mineral concen- be discovered once again - this time byunderstood as being the driving force be- trate that any REE project has produced. the market and of course by potential JV-hind the Conflict Minerals legislation that This is extremely significant and follows up partners. -3- www.ZIMTU.com
  4. 4. INSIDEINTERVIEWBRAND NEW : PRIMA FLUORSPAR CORP.WHY THE LIARD HIGH GRADE FLUORSPAR DEPOSIT CAN MAKEA DIFFERENCE IN THE MARKETPrima Fluorspar Corp. is preparing to be tra- RB: I like industrial minerals and the factding on the TSX:V by Mid-March 2013. The that fluorspar is fundamental to all oursymbol will be PF. lives. Fluorspar is the major cooling agent in our refrigerators and air conditioners. ItSven Olsson (SO): Prima is in the final sta- is essential in aluminum and steel smel-ges of their financing. What is the response ting. Consumer products like Gore-Tex® andyou have been getting from investors? Teflon® depend on fluorspar. Over 50% of new drug formulas include fluorspar. TheRobert Bick (RB): Investors are telling us key to Fluorspar is „security of supply“.that they want something different. They Chemical companies need a safe and pre- Robert Bick President & CEO of Prima Fluorspar Corp.are particularly interested in the fact that dictable supply of Fluorspar. There are nofluorspar is a critical industrial mineral that fluorspar mines in USA or Canada. Canadawill always have a market in our modern and USA are 100% dependent on exter-world. Also the fact that the fluorspar on our nal sources for fluorspar. USA is the 2ndproperty is close to surface making it likely largest consumer of fluorspar after China.that this will be an open pit. This substan- North America’s biggest companies rely on Mr. Robert Bick served as CEO andtially reduces the risk for a junior company. fluorspar. Executive Chairman of Evolving Gold Corp from 2007 to 2010. During thatSO: Obviously you have a background in SO: At the end of the day the size of the period, Evolving Gold’s market cap grewgold as CEO of Evolving Gold in the past. market plays a major role for industrial mi- from $3 million to over $100 million,What brought you to Fluorspar amongst all nerals. How big is the fluorspar market? raised $50 million in capital, made twocommodities? major gold discoveries and moved from the CNSX to the TSX Venture and sub- RB: In 2011, 6.2 million tonnes were sold sequently to the TSX big board. for a total of $2.4 billion. An interesting fact – there is no substitute or replacement PROPERTY HIGHLIGHTS for fluorspar so the market demand for flu- orspar continues to grow. Fluorspar is the MAIN OFFICE: source for fluorine – the most chemically re- 1450 – 789 West Pender Street LIARD FLUORSPAR PROPERTY active element on the planet. Because flu- Vancouver • 22,588 ha (55,000 acres) orine readily combines with other minerals, BC, V6C 1H2 • 55 mineral claims, 100%- fluorspar is the foundation for countless tel: +1 604 681 1568 owned chemicals across many applications. More fax: +1 604 681 8240 • On Alaska Highway than 50% of fluorspar is used to produce www.primafluorspar.com hydrofluoric acid, essential to oil refining HISTORIC MINERAL RESERVE* and a wide range of products. An industrial • 60 drill holes, 20 showings, mineral is very different. Fluorspar is classi- 7 major showings fied as a critical commodity in the European • Preliminary metallurgical testing Union and in the USA. It is essential for SO: Let‘s talk about the actual exploration produced 97% concentrate major chemical companies like Honeywell, target that Prima holds. Tell us about your Dupont, BASF, 3M, Bayer and aluminum fluorspar property producers like Rio Tinto Alcan. Fluorspar OPEN PIT POTENTIAL will continue to be a critical ingredient in RB: Our Liard Fluorspar Property is an ad- • Mineralization close to surface today’s world. vanced-stage exploration project, 22,588 ha (55,816 acres), located in northern RESOURCE EXPANSION POTENTIAL SO: We know that Rare Earth or Graphite British Columbia. It is situated along the • 30 km strike length are dominated by Asian producers, particu- Alaska Highway, 300 km from the railhead larly China. Where does China fit into the at Fort Nelson. Over 60 holes were previ- 2013 WORK PROGRAM fluorspar picture? ously drilled on the property with 7 major • Ground geophysics showings of fluorspar. The historic mineral • Drill Program: 80-100 holes RB: You are right, over 50% of the world’s resource* is 3.2 million tonnes averaging • 8,000 - 10,000 meters fluorspar is produced in China. Over the last 32% fluorspar. We believe this could be a years, less and less of the fluorspar mined major fluorspar deposit with as much as 20 in China is being exported. China is consu- million tonnes. Liard is a big property with ming the bulk of their fluorspar internally 30 kilometers of potential strike zone and to satisfy the ever-increasing middle class many potential drilling zones. In addition, demand for value-added products like ref- the historic drilling was shallow and did rigerators. Within the decade, China is pro- not follow the ore-bodies to depth or along jected to be a net importer of fluorspar. strike. -4- www.ZIMTU.com
  5. 5. INSIDEINTERVIEW CONTINUEDSO: Has any metallurgical work been donein the past?RB: The historic metallurgical testing at ourLiard Property provided a concentrate above97%* purity which qualifies as acid gradefluorspar and is sold at the highest prices.Today’s metallurgical processes are subs-tantially advanced since this original workwas done.SO: How close to the surface does the flu-orspar appear?RB: When I visited the Liard property lastSeptember, I took the photo (at right). Thepurple fluorspar in this picture says betterthan anything else how close the fluorsparis to surface. We anticipate an eventual CFI with a market cap of approximately $35 consider Prima?mine to be open pit. million. They have a 50/50 joint venture with the French Chemical company Arke- RB: I will give you seven reasons:SO: The other key for success in the indus- ma on their St Lawrence Fluorspar Project. 1. The world needs fluorspar for a widetrial minerals game is infrastructure. How They anticipate producing fluorspar in late range of uses.does Liard do on in that regard? 2014. 2. China is projected to be a net importer of fluorspar within the decade.RB: The property is right on the Alaska SO: Please describe Prima’s relationship 3. There are no producing fluorspar minesHighway which is the major transportation with Zimtu Capital. in Canada or United States.route in Northern British Columbia. The 4. Our Liard fluorspar property has sig-topography is only moderately hilly which RB: Zimtu initially invited me to form a nificant tonnage and high grade. Theallows easy access for drills and equipment. company to acquire the Liard Property historic resource* is 3.2 million ton- which Zimtu owned. Zimtu holds over 20% nes* with an average grade of 32%SO: Which exploration activities do you of the Prima shares of the company and fluorspar.have planned for this season? have a vested interest in Prima’s success. 5. The Liard property has 30 km of strike Prima does a lot of co-marketing with Zimtu zone providing an opportunity to grea-RB: We will be doing a geophysics (gravity) which reduces our costs and gives us wide tly increase the resource.survey and a drill program. We would like to exposure to the market. It is also helpful to 6. The historic metallurgical testing pro-drill as many as 80-100 holes. The holes us that Zimtu has a lot of experience with vided a concentrate above 97%* puritywill be shallow (75-120 meters). critical industrial minerals and metals like qualifying as acid grade and is sold at tantalum, graphite and fluorspar. Zimtu is a the highest prices.SO: Are there other fluorspar companies on perfect fit for us. 7. We have a strong relationship with Zim-the TSX-V? tu Capital which provides us with co-RB: The other company is Canada Fluorspar SO: In summary, what are the primary marketing opportunities to make sureInc. trading on the TSX:V under the symbol reasons you think investors should that Prima is in front of the market. *Historical Data: Prima Fluorspar Corp (Prima) has not undertaken an independent verification to classify the Production China Demand Is Straining Global Supply. historic resource estimate quoted from a Mineral Po- tential Compilation Report for the BC Department of Consumption Economic Development, written by Wright Engineers Li- mited and H.N. Halvorson Consultants Ltd., in January 3 000 000 1993 2011 17, 1975 as a current mineral resource. Neither has Prima independently verified the results of the previous 2 500 000 ...Now though, it consumes almost exploration work. Therefore, the historical mineral re- For decades, China has produced all of the fluorspar it produces - and source should not be relied upon, but the issuer believes 2 000 000 roughly half of the world’s fluorspar... its reserves are running out. Fluorspar is not recyclable. the information to be relevant and reasonably reliable. An unknown quantity of the 3.2 million tonnes are on 1 500 000 New fluorspar must mineral claims outside of the current Liard Fluorspar be mined. Property. However, based on the information available, 1 000 000 the majority of the estimate is based on the deposits 500 000 located on Prima’s Liard Fluorspar Property. The key assumptions, parameters and methods of the resource 0 estimate are unknown at this time. New deposit defi- nition drilling is needed to develop a current resource Eu a Ru e S. sia M rica M ia o ia Ja A O n s Eu a Ru e S. sia M rica M ia Ru o ia A O a s er er in p in p di pa ic ic US US l ss l ss go go ro ro s s Ch Ch ex ex In th th Af Af estimate on the property. Ru on on Its clear that new sources of fluorspar must be developed to replace diminishing Chinese exports. Prima believes that these historical mineral resources provide a conceptual indication of the potential of the property and are relevant to ongoing exploration. Future Applications -5- Fluorspar products are added to the electrolyte of prototype lithium-ion batteries, improving their: www.ZIMTU.com
  6. 6. INSIDEGUEST ARTICLEA JUMPSTART IN TURKEYPASINEX RESOURCES SECURESASSETS AND JV-PARTNER What a year it was for Pasinex Resources. One year ago this month (March 2012) Pasinex Resources was formed. In that one year span the company has gone from the early challenges of formation to acquiring two major base metal prospects performed exploration and drilled the Cu / Ag project called Golcuk. CNSX:PSE by Steve Williams L ast February Pasinex came into opportunity between the two parties. Akme- being. The company was formed af- tal have three mines in Turkey (a chromite ter taking over management of Triple mine in Adana and a joint venture with a Dragon Resources, rebranding it and refo- gold mine and a base metal mine in Tur- cusing it to base and precious metal explo- key) and so bring local where with all to the ration in Turkey. Since then the company joint venture. An agreement was struck with Steven Williams raised over $2.8 million CAD through priva- Akmetal in July 2012 covering what would President and CEO, Director te placements at 10 cents / share. The ma- be the Horzum regional zinc opportunity in nagement team is lead by Steve Williams as Adana www.pasinex.com province. President and CEO. and key team members are Clinton Smyth, VP- Exploration and Ba- Golcuk Cu / Ag project in Sivas was acquired ris Yildirm, Manager in Turkey. by Pasinex from Eurasian Minerals. Eurasi- an (either directly or indirectly) had carried Pasinex holds 21 mineral property licen- out quite a bit of valuable work that provi- ses throughout Turkey really making up five ded a basis for Pasinex to go forward. The distinct projects. Our two key projects are first task for Pasinex was to assimilate all Mr. Williams graduated with a Bachelor Golcuk Cu / Ag project, in Sivas province, this information and digitize historic drilling of Applied Science (Extractive Metallur- Turkey and the Horzum AS company zinc and various maps. With this and our own gy) from the Western Australian School projects in Adana province Turkey. Golcuk project geological mapping we were able to of Mines and an MBA from Tulane Uni- was acquired as a 100% option from Eura- determine where we wanted to start drilling. versity. He has worked in the mining in- dustry since 1976 in mining operations sian Minerals Limited in September 2012. By December 2012 we began drilling two in Australia and Canada – including a Cu The 8 properties that Pasinex acquired in holes into Golcuk. The first of these holes / Pb / Zn operation in NSW, Australia, a the Horzum district Adana were acquired was reported in January 2013 and inclu- Au mine in Queensland, Australia and a through staking and auction process mostly ded a 10 meter intercept of 2.97% Cu, 37 Pb / Zn mine in New Brunswick, Canada. around the middle of 2012. In addition, g/t Ag. This was a great start for Pasinex at He worked 20 years with SGS Lakefield Pasinex acquired properties in the provin- Golcuk. Pasinex plans to do a much larger Research in Canada and Chile in both ces of Afyon (a Cu prospect), Bursa (a Cu drilling campaign on the Golcuk property in metallurgical project management and prospect) and Artvin (prospective for poly- 2013. business management. His technical ex- perience covered base metals, precious metallic type deposits). metals and selected specialty metals and The Horzum regional zinc project was pie- minerals such as graphite and barite. Mr A key objective for Pasinex was to build a ced together throughout 2012. By the end Williams’ business management roles for strong technical team in Turkey. This pro- of 2012 the Joint venture mineral property SGS included building a global metal- cess was led by Baris Yildirim and resulted holding in this area totaled about 16,000 lurgical network of laboratories in Chile, in a team of 9 people being put together in hectares. Each property was then systema- Mexico, UK and Russia. Finally, Mr Wil- Turkey. The team consists of 1 Senior Geo- tically explored. The exploration consisted liams became Managing Director for SGS logist and 6 Geologists plus 2 support staff. of mapping, rock and stream sediment Canada, a company with about 1300 employees. He has authored many tech- The team is based in Horzum and Golcuk sampling and then geochem soil sampling nical papers and in 2004 he became a with three people based out of Ankara. This either on ridge and spurs or using area grid CIM Distinguished Lecturer and in 2008 team works very closely with Clinton Smyth sampling. In total about 5000 samples a CIM Fellow, for his work specialising in our VP – Exploration and has been a key were taken on the Horzum regional proper- geometallurgy. factor in Pasinex advancing rapidly in their ties in 2012. By the end of the year this Mr Williams has a strong background field exploration during 2012. program had resulted in coming up with of both technical and management skills two new and significant zinc / lead geochem that serves well for leadership of a ju- Pasinex Resources want to build mines anomalies on properties called Akkaya and nior mining and exploration team. His strengths are in vision, stragegy and in Turkey. Given this, Pasinex recognized, Pasali (both of these have been reported to team building. right from the outset, that they needed a the market). The Akkaya and Pasali geo- strong strategic, Turkish partner. We met chem “finds” are sufficiently encouraging Akmetal AS, a Turkish mining company to mean that in 2013 Pasinex intends that and immediately recognized the synergistic both of these targets will be drilled. -6- www.ZIMTU.com
  7. 7. INSIDENEWSONE SINGLE SUCCESS STORY HAS THE POTENTIAL TO CHANGE ZIMTU‘S ENTIRE VALUATIONWE HOLD BIG POSITIONS WITH LEVERAGEA lot of value that is contained within Zimtu Capital is often not talked about as we tend to focus on our coreholdings such as Western Potash, Commerce Resources, Pasinex Resources and Lakeland Resources. Some ofour other equity holdings include: (TSXV: ADD) (TSXV: NRT) (TSXV: MO.P) (TSXV: PP) SHARES OUTSTANDING: 43.3 M SHARES OUTSTANDING: 24.1 M SHARES OUTSTANDING: 8.0 M SHARES OUTSTANDING: 39.9 M CURRENT PRICE: C$0.16 CURRENT PRICE: C$0.09 CURRENT PRICE: C$0.25 CURRENT PRICE: C$0.08 ZIMTU SHARE POSITION: 1,235,556 ZIMTU SHARE POSITION: 2,103,000 ZIMTU SHARE POSITION: 1,070,000 ZIMTU SHARE POSITION: 4,396,000 Arctic Star recently announced that it had Big North recently acquired three past pro- Montan Capital recently completed its IPO as In June 2012, Pacific Potash announced the staked 10,000 hectares of mineral claims ducing graphite mines located in Sonora a new Capital Pool Company. The company acquisition of Western Potash’s Brazilian in the Northwest Territories, Canada. The Mexico. The mines are located in the San Jose currently has 8 million shares outstanding potash assets. The land package comprises property, known as the Redemption Diamond de Moradillas region of Mexico where graphite (5 million of which are held in escrow) and several claim parcels that extend from the Property, is located approximately 40 kilome- has been produced for more than 145 years. C$925,000 cash. Management includes Ryan Amazon River to the centre of the Amazonas tres southwest of the Ekati Mine. The property Big North has raised close to C$ 1 million in Fletcher, Director of Zimtu Capital Corp., Basin, in the same area where Potassio do is adjacent to the Credit Lake Property which December to fund the restarting of the Nuevo Michel Robert former Senior Vice President Brasil, Petrobras, and Vale, among others, Arctic acquired from Kennecott in 2004 and San Pedro Project. for Pan American Silver and Vice President are exploring for potash deposits. There has actively explored until 2011. When the new of Exploration for Quinto Mining which was been a large amount of capital and investor ground opened for staking, Arctic hurried to sold to Consolidated Thompson Iron Mines interest in the Amazonas Basin area and acquire it as diamond indicator trains inden- for approximately C$150 million, Ian Graham, Brazil recently. Mr. Dean Pekeski was also tified at Credit Lake pointed to a potential former Chief Geologist with the Project Gene- subsequently appointed to Pacific’s Board of source at the staked property. The property ration group of Rio Tinto and Alfredo Ferrero, a Directors. Mr. Pekeski is currently Executive was previously tied up by Peregrine Diamonds former Minister of Foreign Trade and Tourism Vice President for Western Potash. Ltd. Arctic plans to drill the diamond target in Peru. With the strong treasury the company in spring 2013. is reviewing potential Qualifying Transactions in the Metal and Mining space. (TSXV: DLT) SHARES OUTSTANDING: 191.1 M CURRENT PRICE: C$0.10 ZIMTU SHARE POSITION: 1,000,000 On February 15th 2013 the TSX Venture Ex- change accepted the Qualifying Transaction of Delta Gold Corp., formerly ADR Capital. In December 2012, ADR Capital announced it‘s IRON TANK intent to to combine with Delta Gold Inc. Delta RESOURCES holds 100% of the Imperial Gold Project loca- (TSXV: XYZ.P) ted in southern California which it acquired (TSXV: CRE) SHARES OUTSTANDING: 15.8 M from Goldcorp. The property host a dissemi- SHARES OUTSTANDING: 110.7 M CURRENT PRICE: HALTED nated, open-pit-minable, heap-leachable (TSXV: TNK) CURRENT PRICE: C$0.22 ZIMTU SHARE POSITION: 1,000,000 gold deposit. The project host an Indicated SHARES OUTSTANDING: 17.3 M ZIMTU SHARE POSITION: 1,500,000 Resource of 50.4 million tonnes at 0.49 g/t CURRENT PRICE: C$0.07 Clermont Capital recently announced that it Au for 879,000 oz Au and a total Inferred ZIMTU SHARE POSITION: 1,000,000 Critical Elements has been working with had entered into a LOI for the acquisition of Resource of 84.1 million tonnes at 0.43 g/t end-users and potential strategic partners NexGen Energy Ltd. for its Qualifying Tran- Au for 1,251,000 oz Au. A PEA has been com- Iron Tank was listed on the TSX-V in March, to discuss the sale of lithium carbonate and saction. NexGen aims to become the premi- pleted which projects a proposed operation 2012. The new company is a cooperative tantalite concentrate from its flagship Rose er uranium explorer in the Athabasca Basin with 119,000 oz Au per year over a 10-year project between the Preakness Group (http:// Lithium-Tantalum Project in Quebec. In 2011, in Saskatchewan, Canada. The company’s mine life. Life-of-mine cash costs and total preaknessgroup.com/) and Zimtu Capital. Critical Elements announced the results of a flagship asset is the Radio Project located costs are projected to average $599 (U.S.) per Preakness and Zimtu are currently reviewing PEA for the project. The after tax IRR for the adjacent to Rio Tinto’s Roughrider Uranium oz and $965 (U.S.) per oz respectively. At a advanced mineral property assets for the Rose Project is estimated at 25% , with a NPV Deposit. Rio Tinto acquired Roughrider from $1,300-(U.S.)-per-oz Au price, the after-tax company. of C$279 million at an 8% discount rate. The Hathor Exploration in a takeover bid valued NPV discounted at 5 per cent is estimated payback period is estimated at 4.1 years. The at approximately C$642 million in 2012. Nex- at $136.3-million (U.S.), the internal rate of economic analysis is based on a mine life of gen also acquired 10 Canadian projects from return at 19.4% and the payback at 4.4 years. 17 years, estimated capital costs of C$268.6 Mega Uranium in the Athabasca and Thelon Delta‘s management team has a reputation million and operating costs of C$67.65/tonne basins. Nexgen is in the process of closing a for excellence and high standards in explora- of ore milled. $6.6 million financing and will drill several of tion, mine development and operations, and the projects in 2013. are recognized leaders in the area of corpo- rate social responsibility. -7- www.ZIMTU.com
  8. 8. INSIDEZIMTU NEWS ZIMTU UPDATE TSX.V: ZC . FSE: ZCT1 . WKN: A0RDR9 SHORT FACTS: Shares Outstanding: ~11.2 M Shares Fully Diluted: 12.6 M 52 Week High: 1.49 CAD 52 Week Low: 0.37 CAD Market Cap.: ~5.0 M CAD Cash & Securities: ~8.7 M CAD PORTFOLIO ANALYSIS: Top 5 Positions: 41.21% Western Potash (TSX: WPX) 14.27% Pasinex Res. Corp. (CNSX: PSE) 12.96% Commerce Resources (TSX.V: CCE) 5.98% Critical Elements Corp. 4.01% Jack‘s Fork Corp. (private) 3.99% NAV of Top 5: ~3.6M CAD Total Positions: >50 *As of February 25, 2013COMING TO TRADE SOON? REDSTAR CAPITAL VENTURESREDSTAR CAPITAL VENTURES DISCOVERY HARBOUR CORP. JACKS FORK CORP. MOGUL VENTURES CORP.TSXV: RSM PRIVATE PRIVATE PRIVATEZIMTU WILL HOLD 2.6M ZIMTU HOLDS 2M ZIMTU HOLDS 2.1M ZIMTU HOLDS 1MRed Star will enter into a farm- Discovery Harbour, led by Ian Gra- Jack‘s Fork is led by Don Taylor a Mogul is focusing on acquisition,in agreement with Allstar Energy ham, formerly Chief Geologist with geologist with 30+ years experi- exploration and development ofLtd., a wholly owned subsidiary of Rio Tinto, has earned-in 51% in- ence in the mining and explora- coal projects in Mongolia. The Com-49 North. The 3 well program for terest (49% Northern Shield: TSX- tion business. The properties in pany is developing its 100% ownedthe transaction will be based on V:NRN) in the Wabassi project a Virginia were identified Don‘s team flagship asset, the Black Hills ther-the 100 for 60 deal metrics, loca- layered intrusion with potential when working for BHP Minerals in mal coal project located in Midd-ted on the Riverside Property (the Cu-Ni mineralization (drill indica- the 1990‘s. Jack‘s Fork has since le Gobi near Choir city. Extensive“Property”), a 31,360-acre land ted, 2008 and 2011). The Wabassi continued to focus on base metal exploration and engineering workpackage located in the west central project features a land position co- targets generated during the BHP was carried out on Black Hills inarea of Saskatchewan. Allstar has a vering 35,136 ha. This district size efforts, but have also expanded the the 1960s and 1970s by Russian100% interest in the Property and land holding with multiple volcano- program to include a high quality interests and in 2011, Mogul com-as operator will conduct all drilling, genic massive sulphide discoveries gold target that resembles the Hai- pleted an initial drill program resul-servicing, completion and administ- has the potential to be the first new le Mine Property, currently under ting in a new NI 43-101 compliantration of farm-in wells.It is intended volcanogenic massive sulfide dis- permitting by Romarco Minerals in Inferred Resource estimate totallingthat the transaction, when comple- trict discovered in over 20 years. South Carolina. 89.6 million tonnes for the Ovdogted, will constitute the qualifiying Hudag coal deposit.transaction. -8- www.ZIMTU.com