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Corporate presentation

  1. 1. CorporatePresentationOctober, 2011
  2. 2. Caution Regarding Forward Looking Statements TSX: EOMThis presentation contains “forward-looking statements” and “forward-looking information” within the meaning of applicable securitiesregulations in Canada and the United States (collectively, “forward-looking information”). The forward-looking information contained inthis presentation is made as of the date of this presentation. Except as required under applicable securities legislation, Eco Oro does notintend, and does not assume any obligation, to update this forward-looking information. Forward-looking information includes, but is notlimited to, statements with respect to planned exploration programs and estimates of the costs thereof, anticipated rates of recovery,timing and amount of future production, anticipated capital cost , currency exchange rates, future price of gold and the effects thereof,estimation of measured and indicated resources, realization of mineral resource estimates and the economic viability thereof, timing andamount of estimated capital expenditures, project infrastructure and layout, estimated project time-line, requirements for additional capitaland alternatives for project development.The forward-looking information contained in this presentation is based on certain assumptions that Eco Oro believes are reasonable,including, that the current price of and demand for gold will be sustained or will improve, the supply of gold will remain stable, Eco Oro’sdevelopment plans can be achieved, the general business and economic conditions will not change in a material adverse manner,financing will be available if and when needed on reasonable terms and Eco Oro will not experience any material accident, labourdispute, or failure of plant or equipment.However, forward-looking information involves known and unknown risks, uncertainties and other factors which may cause the actualresults, performance or achievements of Eco Oro to be materially different from any future results, performance or achievementsexpressed or implied by the forward-looking information. Such factors include, among others, risks relating to Eco Oro’s ability to obtainadequate financing for the development of the Angostura Project, conclusions of economic evaluations, changes in project parameters asplans continue to be refined, future prices of gold, mineral resources are not as estimated, unexpected variations in grade or recoveryrates, risks related to fluctuations in the currency market, risks relating to title disputes, risks relating to all Eco Oro’s properties beinglocated in Colombia, accidents, labour disputes and other risks of the mining industry, delays in the completion of development orconstruction activities, delays or failure to obtain required environmental and other governmental approvals, as well as those factors andother risks more fully described in Eco Oro’s Annual Information Form for the year ended December 31, 2010 filed on SEDAR Although Eco Oro has attempted to identify important factors that could cause actual actions, events or results to differmaterially from those described in forward-looking information, there may be other factors that cause actions, events or results not be asanticipated, estimated or intended. Readers are cautioned not to place undue reliance on forward-looking information due to the inherentuncertainty thereof. Page  2
  3. 3. Additional Cautionary Notes & Statements TSX: EOMCAUTIONARY NOTE TO U.S. READERS CONCERNING ESTIMATES OF MEASURED AND INDICATED RESOURCES.Information concerning the properties and operations of Eco Oro has been prepared in accordance with Canadian standards underapplicable Canadian securities laws, and may not be comparable to similar information for United States companies. The terms“mineral resource”, “measured mineral resource” and “indicated mineral resource” used in this presentation are Canadian mining termsas defined in accordance with NI 43-101 under guidelines set out in the Canadian Institute of Mining, Metallurgy and Petroleum (“CIM”)Standards on Mineral Resources and Mineral Reserves adopted by the CIM Council on December 11, 2005. While the terms “mineralresource”, “measured mineral resource” and “indicated mineral resource” are recognized and required by Canadian regulations, they arenot defined terms under standards of the United States Securities and Exchange Commission. Under United States standards,mineralization may not be classified as a “reserve” unless the determination has been made that the mineralization could beeconomically and legally produced or extracted a the time the reserve calculation is made. As such, certain information contained in thispresentation concerning descriptions of mineralization and resources under Canadian standards is not comparable to similar informationmade public by United States companies subject to the reporting and disclosure requirements of the Unites States Securities andExchange Commission. Readers are cautioned not to assume that all or any part of measured or indicated resources will ever beconverted into mineral reserves.STATEMENT REGARDING TECHNICAL INFORMATIONThe technical information in this presentation is derived from Eco Oro’s news releases, technical reports and other continuousdisclosure documents filed by Eco Oro available on SEDAR at, each of which has been reviewed by one or morequalified persons, as defined by National Instrument 43-101 – Standards of Disclosure for Mineral Projects. The estimates of Eco Oro’smineral resources are subject to the qualifications and assumptions set out therein and readers are cautioned that mineral resourceswhich are not mineral reserves do not have demonstrated economic viability The technical information in this presentation is derivedfrom Eco Oro’s news releases, technical reports and other continuous disclosure documents filed by Eco Oro available on SEDAR, each of which has been reviewed by one or more qualified persons, as defined by National Instrument 43-101 –Standards of Disclosure for Mineral Projects. The estimates of Eco Oro’s mineral resources are subject to the qualifications andassumptions set out therein and readers are cautioned that mineral resources which are not mineral reserves do not have demonstratedeconomic viability.Page  3
  4. 4. Summary TSX: EOM Eco Oro is a Canadian exploration and development company focused on the Angostura gold/silver project in Colombia “First mover” status in Colombia - over 30,000 hectares of exploration concessions in emerging California district Strong balance sheet US$80.9 million cash; no debt (June, 2011) Permitting applications in respect to an open pit/heap leach project have been suspended owing to environmental concerns – awaiting definition of “Paramo” Positive Preliminary Economic Evaluation on underground project Initial underground mineable resource estimate of 2.4 million oz gold and 13.4 million oz silver. Good potential to increase Contracts awarded to four international engineering companies to perform feasibility studies for underground projectPage  4
  5. 5. Share Structure TSX: EOM Exchange TSX Symbol EOM Share price (11/08/2011) C$2.22 Shares Issued 84,227,487 Shares Fully Diluted 93,349,577 Market Capitalization(issued) CDN$186,985,021 Cash (30 June, 2011) US$80,923,840Page  5
  6. 6. Management TSX: EOM Anna Stylianides Interim President & CEO, Director and Co-Chairman (September 16, 2011) Holds law degree from University of Witwatersrand, Johannesburg. Previous positions at Investec Merchant Bank Ltd., as Director of Nasdaq publicly-traded companies and CEO of FinTec Holdings. In 2005, Ms. Stylianides joined the Surgical Spaces, Inc. Group as Director and CEO. She is also on the BOD of institutions such as Callinan Mines Ltd., Kaiser Foundation and the Fraser Institute. David Heugh Chief Operating Officer (March, 2011) Previously held a number of senior and management positions with Anglo American, including Head of Operations (Free State), Head of Mining (AngloGold SA) and Vice President Mining (Anglo Base Metals). Paul Robertson Chief Financial Officer (September, 2011) Managing Partner of Quantum Advisory Partners LLP, a professional services firm dedicated to assisting publicly listed companies with their financial reporting, taxation and regulatory requirements.Page  6
  7. 7. Location TSX: EOM Angostura Gold/Silver Project  16 years in Colombia  In excess of C$160 million invested at Angostura gold-silver project to date  Land acquisition, exploration programs and technical studiesPage  7
  8. 8. Colombia, one of the world’s most unexplored mineral regions TSX: EOM Accesible Location  Located 55 km by road from Bucaramanga, a city with population of 1.2 million  Access to site at all seasons by road or helicopter Extensive Infrastructure  Access to major power grid  Abundant water and materials available  Access to educated local work force Foundation for Growth  Colombia is one of the world’s most under explored mineral regions  GDP growth in 2010 of 4.8%Page  8
  9. 9. Social Responsibility TSX: EOM Sustainable Social Responsibility SSR Model:  Founded on 3 pillars, Core Business, Support Business and the Foundation. All provide employment opportunities and freedom of movement between them.  Model seeks to provide human and capital capacity within the area of operations.  Support Business refers to essential but secondary services that are often outsourced to small business concerns in the area of operations.  Primary mandate of Foundation is to provide education, Village children in an art camp training, formation and capacitation to Core and Support Business.  In addition, the Foundation provides support to local communities and regional security in the area of operations.Page  9
  10. 10. Environment TSX: EOM Environmental Stewardship  Ongoing efforts to assess and develop best practice in environmental management.  Environmental stewardship through:  Investment in regional environmental restoration initiatives.  Nursery propagation of native flora species.  Hydrological management.  Preservation and conservation of Páramo ecosystem.  Restoration of lost habitats with species association.  Protection and rehabilitation of slopes through re- Frailejones cultivated in GSL nursery vegetation.  Solid waste management.  Industrial sewage treatment.Page  10
  11. 11. Chronology – recent past TSX: EOM Eco Oro announces positive scoping study for Angostura Eco Oro announces Eco Oro announces underground project election of new information meeting (NI 43-101) and Board of Directors on Angostura open change of Officers and pit project was held Directors in Bucaramanga Feb. Mar. Apr. May June 2011 2011 2011 2011 2011 Second public hearing held but terminated early Eco Oro announces after public disorder. cancellation of AIM listing Company withdraws request for environmental license and announces potential of alternative underground project Opposition to Angostura’s open-pit project and the designated location of project facilities inareas termed as Paramo drew criticism from residents of Bucaramanga as well as regional and national governmentPage  11
  12. 12. Chronology – going forward TSX: EOM Annual reports - Financial - Social Responsibility Angostura NI43-101Eco Oro announces - Safety & Occupational UG Pre-Feasibilityaward of engineering Healthcontracts for UG - Environmentproject feasibilitystudies - Resources & Reserves Aug Q4 Q1 Q2 Q3 Q4 2011 2011 2012 2012 2012 2012 Angostura NI43-101 UG Q1 financial report Angostura NI43-101 PEA update UG Feasibility Investor & Analyst Mongora NI43-101 PEA visit to mine sitePage  12
  13. 13. Going forward TSX: EOMPage  13
  14. 14. Motivation for UG project TSX: EOM  No requirement for Angostura & Paez leach pads.  No requirement for large open pit.  No requirement for large waste dump at Móngora.  No plant infrastructure in Páramo.  Much reduced rock movement (<2% of open pit).  Much reduced impact on environment, no intervention in Páramo, reduced water consumption, reduced impact on water table and reduced risk of water contamination.  Much reduced plant and infrastructure and hence much reduced capital investment.  Reduction in land acquisition.  Reduction in explosives, reagents and chemicals consumption.  Reduction in movement of personnel and supplies to and from mine site, thereby reducing transport risk.Page  14
  15. 15. Characteristics of UG project TSX: EOM  Targets high grade oxides, transitional ores and sulfides.  Potential for waste and tailings placement (backfill) in mine workings.  Smaller waste dump and tailings dam footprint on surface.  Smaller plant and infrastructure footprint on surface.  Because of smaller volumes, potential for overhead cable transport of ores to plant and remote plant location.  Potential for local grinding and transport of pulp in pipeline to remote treatment plant location.  Potential to increase mineable resources (high grade targets outside of stope boundaries, mineralization open at depth and to south, incremental cost approach for lower grade resources).  The underground project may neutralize prospect of ever returning to an open pit project because the high grade resources will be exhausted making an open pit uneconomic.  Total gold and silver production is less and the rate of production lower than would be the case in an open pit project. Nonetheless, the underground project would remain a large scale operation.Page  15
  16. 16. Angostura UG project TSX: EOM Mineable resources @ 3.0 g/t Au cut-off grade Ore (t) Au (g/t) Au Oz Ag (g/t) Cu (%) INDICATED + INFERRED Oxides 616,324 5.75 113,859 19 0.026 Transition 2,291,293 5.68 418,133 22 0.043 Sulfides 10,519,881 5.46 1,846,692 17 0.087 TOTAL 13,427,498 5.51 2,378,690 18 0.077Page  16
  17. 17. Strategies to reconfigure project TSX: EOM  Engage government and local authorities on project reconfiguration and definition of Páramo.  Implement Sustainable Social Responsibility (SSR) strategy.  Aggressively pursue drilling programme to increase underground resources and improve classification.  Complete feasibility study for UG project.  Develop human and capital capacity in the area of operations for construction and operating phases of project.  Maintain investors and analysts properly and timeously informed of project progress.  Provide flexibility in project configuration for consolidation of mineral resource assets including the satellite deposits of Móngora, La Plata and Armenia.  Provide flexibility in project configuration for consolidation of mineral resource assets owned by others in the area of operations.Page  17
  18. 18. Mineral concessions TSX: EOM ECO ORO CALVISTA GALWAY VENTANA •Over 30,050 hectares of exploration con- cessions, less than 10% of which has been evaluated •3,538 hectares of surface rights •16 new mining title applications in 5 departments in Colombia (80,000 hectares)Page  18
  19. 19. Exploration drilling & tunneling TSX: EOM Over 300,000 metres Over 3,000 metres of drilling of underground developmentPage  19
  20. 20. Upside – Armenia, Mongora, La Plata TSX: EOM ECO ORO CALVISTA GALWAY VENTANAPage  20
  22. 22. High Grade Veins3D View – Looking to NE TSX: EOMPage  22
  23. 23. High Grade VeinsVertical Section 1,130,900 E TSX: EOMPage  23
  24. 24. Metallurgy TSX: EOM Test results for high gold grade sulphides Process Au Recovery Conditions Recovery on cleaner concentrate - MassFlotation Range from 85% to 90% Pull* between 10-14%. Pilot plant testedCyanidation of flotation Tails Range from 39% to 65% Extra 4-9% overall recoveryFlotation Concentrate Selling Au grade Clean concentrate (As < 1800 ppm, no Hg),Option between 40-50 gpt Cu content in concentrate of around 1.0% Best conditions to be optimized. MoreRoasting Range from 89% to 93% testing planned. Batch and pilot plant conducted usingBio-oxidation Range from 92% to 96% BIOX® technology. Results for early testing. Optimal conditionsPressure oxidation (POX) Range from 95% to 97% still to be defined. Ore amenable to POX. * Mass Pull: The % of material in which gold recovered is concentrate.Page  24
  25. 25. Investment Case TSX: EOM  In spite of current permitting difficulties, a significant opportunity exists to develop a robust underground project at Angostura.  The advantages of an underground project compared to the open pit options include:  Reduced environmental footprint  Lower capital cost  More easily financed  Shorter lead time to production  Access to higher grade material  Significant blue sky potential in terms of expansion of current resources and new target areas (Armenia, Mongora, La Plata).  A healthy resource remains in place with potential to increase through further drilling and exploration programmes. To date only 10% of 30,050 hectares have been explored.  A good address: the company is operating in a highly prospective region.  Strong balance sheet US$80.9 million cash; no debt (June, 2011).Page  25
  26. 26. Thank you!October, 2011TSX:EOM
  27. 27. TSX: EOM Upside explorationPage  27
  28. 28. Drilling Up to June 2011 TSX: EOMPage  28
  29. 29. High grade exploration Angostura TSX: EOMPage  29
  30. 30. High grade veins TSX: EOM Oxidation Drilling Programme Limit Objective Reduce infill drilling spacing PFS Pit to: Shell Existing Drill  Improve categorization of Holes resources  Obtain better definition of high grade veins (continuity and extension) Programmed Drill Holes  Estimate parameter definition for high grade veins mineral resource model High Grade Vein 200 m Page  30
  31. 31. Angostura TSX: EOM  18,740 metres of core drilled, testing higher grade mineralized structures at depth and along strike (2010-11)  Significant intercepts confirm presence of mineralization along strike and down dip in northern limit of Angostura  Geochemical sampling: - Stream sediment sampling - Soil sampling - Rock sampling  Determination of geochemical anomalies  Drilling of geochemical targetsPage  31
  32. 32. Mongora TSX: EOMPage  32
  33. 33. La Plata TSX: EOMPage  33
  34. 34. La Plata exploration TSX: EOM  5 kilometres southwest from Angostura. Elevation of up to 2,500 m.a.s.l.  Mineralization of gold, silver, copper, lead and zinc, a part of the mineralizing system parallel to La Baja creek; also hosts mineralization of Angostura and La Mascota.  Occurs in sheeted faulted veins striking to northeast and east-west, steeply dipping to north and south.  System of fracturing controls the distribution of the alteration and mineralization.  7,162.35 metres of core drilling have been completed since 2010. Future drilling program will be focused in defining the mineralization extension.Page  34
  35. 35. Regional exploration TSX: EOM  In addition to the California District, Eco Oro is conducting regional exploration for new gold targets in the departments of Tolima, Caldas, Norte de Santander and SantanderPage  35