Petaquilla Minerals Company | Richard Fifer


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Report about Petaquilla Minerals company and his work in Molecón (Republic of Panama).

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Petaquilla Minerals Company | Richard Fifer

  1. 1.
  2. 2. Petaquilla  Minerals  Ltd.     FORWARD  LOOKING  STATEMENTS  The   statements   contained   in   this   presentation   that   are   not   purely   historical   are   forward-­‐looking   statements.    Forward-­‐looking   statements   may   relate   to   the   success   of   any   of   the   Companys   strategic   initiatives,   the  Companys  expectations,  beliefs,  growth  and  future  prospects,  and  the  Companys  position  in  the  market  and  future  opportunities  therein.    Forward-­‐looking  statements  may  also  include,  without  limitation,  any  express  or  implied  statement  relating  to  future  events,  industry  performance,  general  business  and  economic  conditions  or  circumstances,  regulatory  and  legal  requirements,  and  other  matters,  many  of  which  are  beyond  the  control  of  the  Company.    Forward-­‐looking  statements  involve  risks  and  uncertainties,  which  could  cause  actual  results  to   differ   materially   from   those   projected.     All   forward-­‐looking   statements   included   in   this   presentation   are  based  upon  information  available  to  the  Company  as  of  the  date  hereof  and  the  Company  does  not  undertake  any   obligations   to   update   forward-­‐looking   statements   should   circumstances   or   managements   beliefs   or  opinions  change.   2
  3. 3. PROJECT  LOCATION    Republic  of  Panama   Oro del Norte Exploration Inmet Population   3.36  Million  $4.2 BillionInvestment Size     75,517  Sq.  Km.   Currency     US  Dollar   GDP  2008     $42.5  Billion  Molejon Gold Project HDI  2007     0.84              (Ranked  58th)  High    International  Business  Centre!    Fastest  Growing  Economy  and  Largest  Per  Capita          Consumer  in  Central  America!   3
  4. 4. CORPORATE  STRUCTURE   PETAQUILLA  MINERALS  LTD.  PETAQUILLA  MINERALS,  S.A.   PETAQUILLA  GOLD,  S.A.   PANAMA  DEVELOPMENT  OF   (Exploration  Programs)   (Gold  Plant  Operations)   INFRASTRUCTURE,  S.A.   (Infrastructure  Activities)   PDI   AZUERO  MINING,  S.A.   (49%  Ownership)   4
  5. 5. PETAQUILLA MINERALS (PTQ) VALUE DRIVERSCurrent Gold Producer More than 8 Months of COMMERCIAL PRODUCTION(January 8, 2010)Panama Development of Infrastructure, Ltd. Spin-Out Work in progress.Oro del Norte exploration program At present has 3 Rigs drilling on site 5
  6. 6. PTQ  FINANCIAL  UPDATE   (News  Release  August  19,  2010)  Petaquilla  Signs  a  $45MM  Prepaid  Forward  Gold  Purchase  Agreement  with  Deutsche  Bank.  The  facility  is  a  forward  contract  to  deliver  68,243  ounces  of  Au  over  a  five  year  term.   o562  ounces  per  month  the  first  8  months   o1,125  ounces  per  month  the  following  11  months   o1,503  ounces  per  month  the  following  24  months   o900  ounces  per  month  the  last  17  months     6
  7. 7. SHARE    &  FINANCIAL  STRUCTURE  As  at  August  10,  2010:   Market  Cap  $62.64M  ISSUED  AND  OUTSTANDING      125,281,951   Share  Price  Recorded  August  19,  2010,     at  $0.50  TSX  WARRANTS  OUTSTANDING            34,888,447   No.  of  Warrants   Exercise  Price  OPTIONS  OUTSTANDING              8,224,370   23,363,800   $  0.65  FULLY  DILUTED        168,394,768     2,100,042   $  0.85   9,424,605   $  1.54   BOD  &  Management  Controls  Approximately     11  %  of  the  Shares   Debt  Note  Value  &  Maturity  Date:   May  21,  20111  -­‐  $20,252,641.95   July  9,  20111  -­‐  $11,508,506.38   March  25,  20122  -­‐  $44,000,000.00     1. Callable  for  repayment  with  a  6  months  notice.   2. Callable  by  September  2010  with  the  6  months  notice.   7
  8. 8. DIRECTORS  AND  OFFICERS  Richard  Fifer  (Director  &  Non  Executive  Chairman     David  Levy  (Director  &  Corporate  Secretary  -­‐  USA)   Panama)   -­‐ Member  of  the  Private  Placement  Group  at  Platinum  -­‐ BS  Geological  Engineering,  MA  International  Finance   Management  (NY)  LLC  -­‐ Founder  of  the  Petaquilla  Project   -­‐ Specializes  in  structuring  and  negotiating  financings  -­‐ Former  President  of  the  Panamanian  State  mining   at  all  levels  of  the  capital  structure   company,  CODEMIN   -­‐ Graduate  with  Honors  from  Sy  Syms  School  of  -­‐ Former  Governor  of  the  Province  of  Cocle,  Panama   Business  (Yeshiva  University)  Raul  Ferrer  (Director    Panama)   Joao  Manuel    President  &  CEO  (Portugal)  -­‐ Business  Financial  Advisor   -­‐ Former  COO  of  Petaquilla  Minerals  Ltd.  -­‐ Former  Financial  Investment  Director  with  Wall   -­‐ Former  CFO  of  Petaquilla  Copper  Ltd.   Street  Securities  (Panama)   -­‐ Over  20  years  management  experience  in  large  David  Kaplan  (Director    USA)   multinational  corporations  worldwide,  including  GE,  -­‐ President  of  Physical  Commodity  Merchants  LLC   ITT,  Nokia.  -­‐ Former  Portfolio  Manager  at  LIM  Advisors  LLC   Julie  van  Baarsen    CFO  (Canada)  -­‐ Former  VP  of  Gerald  Metals,  Inc.   -­‐ Charted  Accountant  -­‐ Former  Financial  Analyst/Trader  with  Glencore  Ltd.   -­‐ Bachelor  of  Business  Administration  -­‐ Graduate  of  the  Wharton  School  (University  of   -­‐ Experienced  in  both  private  and  public  company  (TSX,   Pennsylvania)   TSX  Venture,  NASDAQ)  sectors   -­‐ Former  Audit  Manager  of  Grant  Thornton  LLP   8
  9. 9. GOLD  PRODUCTION    PETAQUILLA  MINE    PERMITING  AND  PRODUCTION  UPDATE     First  pour    April  7,  2009:  As  a  result  of  testing                                                     the  gold  room  recovery  processes   July  16,  2009    The  Company  announced  it  has                             produced  approximately  9,525  ounces  of  gold  and  3,195  ounces  of  silver.   November  18,  2009    Public  Announcement  that  the  Government  of  Panama  had  approved     January  11,  2010    The  company  announces  it  has  reach  commercial  production   stage  on  January  8,  2010.   Current  Production    Since  commercial  production  commenced  on  January  8,  2010,  it   has  been  producing  gold  at  a  running  rate  of  approximately  6,000  ounces  of  gold  per   month.   9
  10. 10. FIRST  GOLD  POUR     10
  11. 11. GOLD  PRODUCTION   (Corporate  Base  Case)  Average  per  Year  (First  3  years)   Processed  Ore    Total  Ore  1,131,408  Tonnes   Average   Ore  Tonnes    Total  Au  Ounces  Recovered  100,804.3     Daily   3,099.75  Average  mine  life   Monthly   94,284.00  90.21%  Au  Recovery  2.8  g/t  Au  Average  Grade   100,000  oz.  Annual  Gold  Producer  is  Just  the  Beginning   Completion  of  2,200  TPD  CIP    Currently  in  commercial  production   Commenced  commercial  production  in  2010  establishing  est.  100,000  oz  annual  gold  production   Aggressively  explore  the  842  sq.  km  Petaquilla  Mining  Concessions   Available  expansion  of  2,200  TPD  operation  to  5,000  TPD  on  existing  foundations   Operation  in  politically  stable  Panama    a  USD  based  economy   Potential  Acquisitions  of  known  gold  deposits  in  Panama   11
  12. 12. GOLD  PRODUCTION  UPDATE   (News  Release  April  27,  2010)  Gold  production  Q3  2010  Increased  by  31%  (3,274  oz)  from  Q2  2010.  Q3  Cash  Cost  Reduced  to  $637.00  per  ounce    As  a  result  of  production  increase  and  reductions  in  operating  costs,  down  33.6%  from  $960.00  per  ounce  in  Q2  2010.  Gross  Margin  from  the  sale  of  Gold  in  Q3  2010  amounted  to  $4.7  MM.  Administrative  and  other  expenses  for  the  nine  months  ended  February  2010  were  reduced  by  US$3.6MM  or  26%  to  US$10.3  MM  compared  to  US$13.9  MM  for  the  nine  months  ended  February  2009.  The  company  is  also  pleased  to  announce  that  it  has  poured  approximately  6,500  oz  of  gold  during  the  initial  four  pours  of  the  current  month  of  April  and,  as  a  result,  is  targeting  cash  costs  in  the  mid-­‐US$500.00  per  ounce  range  for  the  month.  Petaquilla  initiated  the  construction  of  an  on-­‐site  heap  leach  test  facility.  The  company  anticipates  the  heap  leach  operation  will  generate  an  additional  50,000  oz  of  gold  annually.   12
  13. 13. M olejon O pen Pit Molejon C amp Site RoadMolejon 2,200 C IP Plant 13
  14. 14. Ball Mills SecondaryWater Tanks & Tertiary Crusher ThickenerRefinery CIP Tanks Contingency Leaching Pond Tanks Power Generators D-Tox MOLEJON GOLD PLANT 14
  15. 15. GENERAL OBJECTIVES FOR 2010 Gold Production Optimization PlanProcess re-design leading to increase production throughputHeap Leaching Strategy: Completed first phase of heap leaching test pads Entering construction of heap leach pad test facility for a purpose of quantifying how much additional gold can be extracted from ore with grades in the 0.2 and 0.9 g/t Au. By the third quarter of the 2010 calendar year, the objective is to complete heap leach testing with the first phase of implementation of commercial leaching beginning in the quarter thereafter.Expand to a 5,000 TPD operation 15
  17. 17. ENVIRONMENTAL COMMITMENT Main Environmental Activities Re-vegetation, Reforestation and Ornament Preservation of the Grounds and Erosion Control Hydrology, Protection of Sources and Sedimentation Control Handling of Solid Wastes and Recycling Environmental Training ENVIRONMENTAL MANAGEMENT PLAN 20101. Quality of Air, Soils and Water2. Waste Management Plan3. Certifications (ISO 14001 & OHSAS 18001)4. Environmental Emergencies Plan5. Development of Environmental Permits for Various Projects6. Environmental Training7. Technical Assistance from Third Parties for Monitoring of Environmental Quality and ISO Standards Certification 17
  19. 19. PRIMARY EXPLORATION TARGETS New Exploration Targets with Historical Information1. Oro Del Norte Prospect Current Exploration (Oro del Norte)2. Rio Caimito Prospect3. Santa Lucia Prospect Molejon Gold Proyect4. Bellencillo Prospect5. Pifacito Prospect6. Rio Hoja Prospect 19
  20. 20. PRIMARY EXPLORATION TARGETS Oro Del Norte Prospect Rock chip anomalies Oro Del Norte (up to 287g/t Au) Prospect Stream sediment sample anomalies (up to 45.75g/t Au) Soil sample anomalies (up to 7.8g/t Au) Santa Lucia & Rio Caimito Prospects Will commence Phase I in the 2nd Quarter at the Santa Lucia and Rio Caimito Prospects Santa LuciaMOLEJON Prospect Work to include: - mapping and rock chip sampling - geochemical soil sampling 20
  21. 21. ORO DEL NORTE PROSPECT Work program Phase 1: Construction of field camp Completed Exploration environmental impact study Completed Re-sampling to verify original auger anomaly Completed5 Km2 21
  22. 22. 5 Km2
  23. 23. ORO DEL NORTE PROSPECTPhase 2:Detailed geological/structural mappingCommenced Detailed geochemical sampling (hand augerand rock-chip sampling) Commenced Geochemical trenching program Commenced Definition of Stage 1 drill targets Completed
  24. 24. 5 Km2
  25. 25. ORO DEL NORTE PROSPECTPhase 3: Complete 5000m HQ3 Diamond DrillingProgram Stage 1 Ongoing detailed geological/structural mapping within the Oro del Norte Mineralized Corridor Ongoing geochemical sampling
  26. 26. 27
  27. 27. SPIN-OUT OF PANAMA DEVELOPMENT OF INFRASTRUCTURE LTD. Approved  by  Board  of  Directors    intends  to  distribute  to  its  shareholders  one  (1)  share  of    for  each  four  (4)  shares  of  PTQ  held  on  the  record  date  for  the  distribution.  Distribution  of  PDI  will  be  effected  by  way  of  a  Plan  of  Arrangement  or  some  other  tax-­‐efficient  mechanism.    Transaction  is  subject  to  all  requisite  shareholder  and  regulatory  approvals.   28
  28. 28. Management teamRichard FiferNon Executive Chairman of theBoard Richard Fifer Joao C. Manuel Antonio Renom Former president and CEO of Mr. Manuel is the current CEO of A former Green Beret, Mr. Renom Petaquilla Minerals Ltd. Mr Fifer has Petaquilla Minerals. Former CFO & has extensive experience in both PEJoao C. Manuel been involved in the Petaquilla Deputy CEO of the Inapa Group Mr. and M&A where has been involvedPresident and CEO- Petaquilla Mining District since its inception. Manuel has over 20 years in major transactions in theMinerals Ltd. Mr. Fifer has a wide management management experience in large renewable energy, Power & Utilities experience in global companies such multinational corporations worldwide, and Infrastructure sectors. Mr. as Texaco and Landmark and has including PWC, GE, ITT and Nokia. Renom has an MBA (with honors) atAntonio Renom been also Advisor of National Mr. Manuel has a Bsc in Economics IE Business School and a MBT in Security to the President of Panama at ISCEF of Lisboa and a Msc. In Finance at UC Berkeley.General Manager- PDI and Governor of Cocle. Mngt at Boston University.COO - PDIJose Luis DieguezHead of Business DevelopmentJames CobbettHead of Mining Services Jose Luis Dieguez James S. Cobbett Jose G. Carrizo Being previously a Business A former CEMEX manager Mr. Jose has over 7 years of experience Associate at Coram Clairfield Cobbet has a wide experience in the in the energy sector and has workedJose G. Carrizo Partners (Spain) Mr. Dieguez has mining sector and has being at Cummins, Inc. in Indiana, USA.Head of Energy been involved in several national involved in the development of Mr. Carrizo graduated with honors and cross-border M&A transactions. Panama Mining sector since 1997. A from the University of Texas at Jose Luis is an Engineer in Telecom. fellow graduate in Mining Engineer Austin as a BS in Mechanical and Master in Corp Fin & Law from at the University of Engineering. He also has a MBA ESADE.Heis a diplomat (with Nottingham,james has a Msc. in from the Kelley School at Indiana honors) inBAat UC Berkeley. Engineering Univ. of University. Louisville. 29  
  29. 29. What is PDI? Panama Development of Infrastructures (PDI) is the result of Petaquilla Minerals (PTQ.TX) experience in the development of the Panama Mining district at Cerro Petaquilla. PDI has acquired a wide experience in the mining infrastructure services after being responsible for the construction and development of Gold mine plant as well as all the civil infrastructure development associated with the project (aka. Roads, hospitals, energy transmission, etc). After a restructuration and addition of world class professionals, PDI is ready and focused in achieve a fully develop portfolio of projects in the Mining Services, Energy and Construction sectors. main goal is to be the key player in the currently booming demand of Mining & Infrastructure Services in Panama as well as in the Caribbean region
  30. 30. PDI Mining services district New mining legislation to attract significant foreign investment. sector: Petaquilla Mining District has the potential to position Panama as Latin next major mining region. Current players: Toronto Stock Exchange listed PTQ, Inmet Mining Corporation, Bellhaven Copper & Gold, Inc., Tech Resources Limited and Tiomin Resources Inc. Growth drivers: International mining companies, eager to take advantage of record commodity prices. Continued global tightness of supply. Growing demand from the rapidly industrializing Chinese economy, Petaquilla Concession: 3rd largest copper deposit in the world. Located approximately 120 km west of Panama City, in the Colon province. Over the next 5 years, this remote and underexploited district will undergo a period of rapid, large-scale mining development that is creating unprecedented demand for regional infrastructure. PDI advantage: Positioned as the earliest entrant in emerging mining services sector with the successful construction and commissioning of mine.
  31. 31. PDI Business activities Mining Services Construction Energy PDI provides a wide range of Mining PDI has been responsible in the PDI is gradually entering in the Services from Exploration & construction of roads, hospitals, development, construction and Development to Operational phases. schools, transmission lines, a mining operation of renewable energy Amongst other services, PDI offers: processing plant and other facilities projects in Central America. Major earth movements related with mining operations. Due to the growing demand for Aggregate Mining & Sales energy in the area PDI its leveraging Heavy Equipment Fleet Management PDI is progressively entering into Mining and Blasting strategic agreements with major on its experience to fully develop a Mine & Civil Construction foreign companies in the Caribbean portfolio of renewable energy MW. Environmental Programs Campsite Services & Logistics area to became the local key player in goal is to became an integrated Drilling and topography programs the region. local company in generation, Permits and certification programs management PDI is in negotiations to start transportation and distribution of producing construction materials as energy for industrial partners in the well as aggregates. region.
  32. 32. PDI Future Strategy  MT      ST    LT   Strategic   Spin  off   partnerships   Capital  raising   IPO   Commercial   Selected   agreements   M&A   acquisitions     Biddings  proceses  
  33. 33. Promoting a Sustainable 34  
  34. 34. COMMUNITY PROGRAMSMain Social Programs Carried OutCommunitarian OrganizationHealthEducationHealthy Food (Warm Meals)SportsChild SponsorshipProduction Modules 35
  35. 35. PTQ 2010 KEY PRIORITIESDevelop existing resources at the Molejon Gold Project into expanding currentreserves from 535,000 oz at 1.0 g/t Au cutoff to approximately 1.2 million oz at 0.3g/t Au cutoffExpand production from an average of 2,200 TPD to 5,000 TPDAccumulate cash and take advantage of market opportunities for gold reserveexpansion through acquisitions 36
  36. 36. PTQ VALUE DRIVERS FOR SHAREHOLDERSPanama Development of Infrastructure Ltd. (PQI) Spin-OutCommercial Production Approved by Panamanian Government!Annual production estimated to be 100,000 ounces of goldPTQ will aggressively explore and drill the many known targets on the worldclass Petaquilla Mining ConcessionPhase 1 of 2,200 TPD now complete with possible expansion to 5,000 TPDfrom existing foundations already engineeredOperation in USD based and politically stable Panama 37
  37. 37. 410 - 475 West Georgia StreetVancouver, B.C. Canada V6B 4M9Telephone: +(604) 694-0021Facsimile: +(604) 694-0063Toll Free: (1)(877) 694-0021Website: www.petaquilla.comEmail: