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Disclaimer
This document has been prepared to provide prospective clients and partners with information in relation to the investment in Geotermia Andina, S.A. and may
not be used or reproduced for any other purpose. This information set forth herein (the “Information”) does not purport to be complete. No person has been
authorised to make any statement concerning the investment opportunity other than as will be set forth in this document and any statements made that are not
contained therein may not be relied upon.
We are providing the Information to you for information purposes only and without representation or warranty, express or implied, by us as to its accuracy or
completeness and without any responsibility on our part to revise or update the Information. As a condition for providing this information, we make no
representation and shall have no liability in any way arising therefrom to you or any other entity (for any loss or damage, direct or indirect, arising from the use of
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In considering any performance data contained herein, each prospective investor should bear in mind that past performance is not indicative of future results, and
there can be no assurance that the investments will achieve comparable results. In addition, there can be no assurance that unrealised investments will be
realised at the valuations shown as actual realised returns will depend on, among other factors, future operating results, the value of the assets and market
conditions at the time of disposition, any related transaction costs, and the timing and manner of sale, all of which may differ from the assumptions on which the
valuations contained herein are based. Nothing contained herein should be deemed to be a prediction or projection of future performance of future Activities
undertaken on behalf of prospective investors.
Except where otherwise indicated herein, the Information provided herein is based on matters as they exist as of the date of preparation and not as of any future
date and will not be updated or otherwise revised to reflect information that subsequently becomes available or circumstances existing or changes occurring after
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Table of Content
•  Key Features
•  Overview of Geothermal Energy
•  Overview of Geothermal Concessions
o  San Juan Province: Valle del Cura Geothermal Fields
o  Los Despoblados Project
o  Gollete & Bañitos Projects
o  Salta & Jujuy Provinces: Tuzgle -Tocomar Project
o  Salta Province: Termas Rosario de la Frontera Project
•  Team Leader
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Key Features
  Mining operations around the world are increasingly being developed in remote locations (especially, along
the Andes mountain ranges) where;
o  There is no access to the electricity grid
o  Energy intensive operations rely on fuel-fed generators, which are not only expensive but also host a
negative perception and Environmental Impact on mining activity.
  Geothermal fields in close proximity to mines are an economically feasible and environmentally friendly
solution to the energy needs of the mining industry.
  Geothermal energy is a “base load” energy and a constant source. It is extremely attractive because it is
not dependent on wind or the sun.
  Geothermal developments in close proximity to Barrick’s Pascua Lama gold mine – a large scale bi-
national project supported by the Chilean and Argentine governments.
  Geotermia Andina has;
o  Nine geothermal concessions in Argentina
o  Potential to explore further fields in Peru, Chile, Colombia and other sites in Latin America
o  A team of experienced geologists and experts in the qualification and assessment of geothermal fields
Development of geothermal fields to meet the energy requirements of remote
mining operations
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Overview of Geothermal Resource
Resource Geothermal Reservoirs
  Energy is contained in the form of heat within the
earth
o  Geothermal energy is available in abundance and in
theory, is inexhaustible
o  The geothermal gradient is where the progressive
increase in temperature is realised at increased depths; at
an average of 3 degrees Celsius per every 100 meters
  Geothermal reservoirs
o  There are areas of the earth where the geothermal
gradient is much higher and only certain locations have
the right geological conditions
o  In these locations, geothermal fluids (when in contact with
hot and permeable rocks), form hot aquifers or
geothermal reservoirs
o  Over time, the circulation of geothermal fluids gradually
seal the geothermal reservoir by the precipitation of
minerals in rocks and pores in the earth
o  In some areas, geothermal fluids reach the surface, giving
rise to geothermal manifestations (hot springs, geysers,
fumaroles)
  Production wells
o  The heat found in geothermal reservoirs can be captured
to generate electricity or to make direct use of the
geothermal heat
Heat Source
  Areas that have a high geothermal gradient are typically caused
by:
o  Presence of bodies of fluid or solidified magma in its cooling stage
near the surface
o  Particular hydrogeological conditions not related to magmatic activity
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Geothermal …a renewable energy
Environmental Impact of geothermal energy Exploration of geothermal fields
  The use of geothermal energy to produce electricity is a renewable
and clean energy source, however the production of geothermal
energy into electricity, does generate some emissions
  The average CO² emitted by various energy sources is detailed
below:
Fuel Source CO² emission grams/
kWhr
Coal 1,042
Oil 906
Natural Gas 453
Geothermal 170
  The scientific assessment of geothermal fields is a
complex and multi-disciplinary process that requires
involvement of experienced geologists / geophysicists
  Exploration stages involve the following activities:
o  Surface exploration
o  Geological study – analysis of the geological structure
o  Geochemical analysis – use of geothermometers, which
analyse the chemical signature of water collected from
surface manifestations
o  Geophysical investigations – use of magnetotelluric
technologies for imaging structures below the earth’s surface
o  Study of the permeability of the potential reservoir
o  Drilling of exploratory wells
  The end result is the measurement of the geothermal
gradient and the assessment of terrestrial heat flow to
determine where production wells will be located  The emissions for geothermal activity (above) somewhat
overestimates the geothermal emissions, as it includes CO² that
would otherwise be released naturally into the environment during the
conventional production of electricity. Albeit, the CO² impact of
geothermal energy is much lower than other energy sources.
  Aside from CO², geothermal fluids can include components such as
hydrogen sulphide (“rotten egg” smell), ammonia, methane, arsenic,
mercury, lead, zinc, boron or sulphur. These components need to be
environmentally managed; typically they are re-injected into the earth
along with the water that is directed into the re-injection wells
Re-injection wells
  In addition to production wells, there are also re-injection
wells that are drilled for the return of geothermal fluids to
the geothermal reservoir, so as to:
o  Reduce drop in pressure in the geothermal reservoir during
the exploitation of geothermal fluids
o  The ability to extract more heat AND extend the useful life of
the geothermal reservoir
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Production of Electricity
Technologies for geothermal power generation
  Dry steam power plants
o  The most cost effective technology when resource temperature is above 175 .
Steam is directly passed through a turbine to generate electricity
  Flash steam power plants
o  In this technology, geothermal fluid is flashed through a low pressure tank; the
steam is then directed to a turbine
o  This can be a single or dual stage process; the dual stage separates geothermal
fluid at two different pressure points
  Binary-cycle power plants
o  In this technology, heat from the geothermal fluid is transferred via a heat
exchanger to a secondary fluid that is vaporised and passes through a turbine.
The design of the geothermal power plant needs to be adapted to the
characteristics of the geothermal fluid that is analysed upon extraction during the
exploratory drilling stage. Adaptation to whether it is dry steam or liquid, or a
combination of both, is realised at the drill stage.
  Expectations about “Enhanced Geothermal Systems” (EGS)
o  EGS are new techniques that allow exploitation of geothermal resources that
traditionally have not been productive. EGS are designed to extract heat from
areas with low permeability and porosity
o  Massachusetts Institute of Technology, in its report “The Future of Geothermal
Energy”, estimates that EGS could provide 100 GW of new geothermal capacity
Geothermal – an under utilised resource
  Geothermal electricity is very attractive because it is base load
energy. It is not dependent on the wind or the sun
  According to the International Geothermal Association (IGA), the
installed capacity of reporting countries in 2010 was 10,715 MWe,
up 20% over 2005
o  Expected to generate 67,246 GWh in 2010
o  Only 0.5% of world’s energy generation
  Installed capacity is expected by IGA to reach 18,500 MWe in
2015
  Geothermal energy is expected to generate 4% of global electricity
generation in 2030.
Parasitic load
  Parasitic load is the amount of energy produced by a geothermal plant
that is consumed during its operations (pumps, plant, etc)
  The parasitic load depends on the technology employed, typically 15%
for a dry steam plant and 25% for a binary plant
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  The Argentine government in
the late 1970s ordered studies
to explore the country’s
geothermal potential
  These studies continued in the
1980s and 90s
  Actual geothermal exploitation
has not been undertaken,
except for a small government
plant in Copahue, due to the
remoteness of sites
  Now energy intensive mines
are being developed in remote
locations, making it viable to
produce geothermal energy
  The earlier studies allow a
good understanding of the sites
which host the best geothermal
potential
Overview of Geothermal Concessions in Argentina
Tuzgle-Tocomar
  Two concessions in very
promising geothermal areas
  The area is located in North
West Argentina, close to the
frontier with Chile and
encompassing both the
provinces of Salta and Jujuy
Valle del Cura
Argentina
Brazil
Argentina
Chile
Bolivia
Uruguay
Peru
Paraguay
Rosario de la Frontera
  One concession close to the
city of Rosario de la Frontera,
in the province of Salta
  Six concessions (one in JV with provincial utility company)
  The area is located in province of San Juan, close to the frontier with Chile
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Valle del Cura Concessions
Veladero
Mine
Chile
Argentina
  Located in the Central Andes
of San Juan Province
  There are numerous hot-spring
spots and geothermal
manifestations in the area
  Preliminary exploration of the
area was carried out by
consulting firms between
1982-85
  All concessions are 100%
owned by Geotermia Andina,
except for Los Despoblados
which is a JV with a local
Provincial electricity utility who
holds 10%
  Close proximity to Barrick’s
Veladero Gold Mine (operating)
and Pascua Lama Gold Mine
(under construction)
  The road to the Valedero mine
passes through two of the
concessions
Valle del Cura
San Crispin
Siciliano V
5000 Ha
Chiolay & Casa Pintada
Siciliano IV
5000 Ha
El Gollete
Siciliano II
4842 Ha
El Gollete #2
Siciliano II - bis
287 HaLos Bañitos
Siciliano I
4959 Ha
Los Despoblados
2000 Ha
Road to
Veladero Mine
Los Despoblados
1600 Ha
Extension Area
Pascua Lama
Mine
Veladero
Mine
Chile Argentina
Road to
Veladero Mine
Los Despoblados
Cholay & Casa Pintada
San Crispin
Gollete
Los Bañitos
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Los Despoblados … a near-term site for Geothermal energy
generation
  Most interesting short-term
development opportunity
  Concession JV with EPSE, the
electricity utility owned by the
provincial government
o  90% owned by Andina
Geothermal
o  10% owned by EPSE
o  2-year exploration period (with
extensions) plus 25 year
operating concession
o  5% royalty to be paid to EPSE
  The JV partner will assist in
the commercialization of any
potential energy production
  Advanced feasibility studies
have been completed and drill
location identified for the first
slim hole
o  Production tests of first slim hole
and additional surface studies
will determine locations for two
further slim holes
  Close proximity of Veladero
Camp (4.5 kms) merits the
study of supplying direct
thermal heat to the camp site
Los Despoblados
Road to
Veladero Mine
Veladero
Mine
Pascua Lama
Mine
Chile
Argentina
Location identified
for first slim hole
after geological
studies
Area of concession 3600 Ha
Camp site
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Los Despoblados – Pre Feasibility Study
Surface exploration evaluation report
Source: Independent Consultant Report
Ready for Exploration Drilling Phase
  Independent consultant indicates overall positive evaluation:
o  “…the available data defines a promising geological, geochemical and geophysical framework for the existence of an
attractive geothermal resource at Los Despoblados.”
o  “…deep exploratory drilling is required to confirm the depth, effective temperature, extension and characteristics of the
geothermal reservoir. However, a range in the order of ten to few tens of MW’s, could be expected for this kind of
resource.”
o  “…the continuation of geothermal exploration in the area is recommended, passing to the exploration drilling phase, in
order to confirm the existence and the characteristics of the geothermal resource through multipurpose well dedicated
to temperature/gradient measurements, stratigraphy, hydrothermal alteration and permeability analysis. Initial drilling
should be planned with application of deep slim-hole technology (1000-1500m), and targeted inside the most promising
area…”
o  “the general characteristics of Los Despoblados geothermal system are common to other non-volcanic, tectonically
controlled, geothermal systems like, for example, some of those in the “Basin and Range” of western USA, where a
number of similar systems are being exploited for power generation...”
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Los Despoblados – Geothermometry
Photographs
Source: Google Earth
Source: Geotermia Andina Source: Geotermia Andina
Geochemical
measurements taken in
thermal water plus gas
being extracted from
Los Despoblados
project
Rn Instrument and He mass spectrometer
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Los Despoblados
Surface exploration measurements
Source: Independent Consultant Report
Cation Geothermometers (°C)
(water mixture)
Na/K% Na/K% Na/K%
Fournier% Truesdell% Giggenbach%
196% 162% 213%
206% 174% 222%
210% 179% 226%
208% 176% 224%
208% 177% 224%
Na%?%K%?%Ca% Na%?%K%?%Ca%
Mg%corr%
182% 116%
192% 174%
194% 174%
195% 152%
193% 145%
K/Mg%
Giggenbach%
122%
140%
136%
140%
135%
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Los Despoblados – Geophysical
Photographs
Source: Google Earth
Source: Geotermia Andina Source: Geotermia Andina
Audio Magneto Telluric Geophysical
Method (AMT)
Magneto Telluric Geophysical Method
(MT)
Source: Geotermia Andina
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Los Despoblados
Geophysical Isoresistivity Curves 1125 m
Geothermal
Targets
Location
identified for first
slim hole after
surface
exploration phase
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Los Despoblados
Geophysical Isoresistivity Curves 1625 m
Location
identified for first
slim hole after
surface
exploration phase
Geothermal
Targets
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Los Despoblados
Resistivity Slice Depth 100 to 1500 m.
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Los Despoblados
Geophysical preliminary 3D Model
Geothermal
Targets
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Veladero … a gold mine by Barrick
Veladero Energy Needs
  Veladero currently has installed capacity of approximately
32 MW
o  30 MW from diesel fuel generators
o  2 MW from one wind turbine
  The high altitude (4000 meters) has a detrimental impact
on fuel generator efficiency
  The 2 MW wind turbine had a very high price tag (aprox.
USD 4M per MW)
o  Availability is subject to wind performance
o  Investment was driven by needs to prove environmental
credentials
  Current energy generation is very expensive – we
estimate upwards of USD 320 / MWh and potentially
much higher
  Sourcing energy from an available geothermal (base
load) green energy close to the site will be very attractive
for Barrick
o  In addition, it will compliment the relationship with local
government by sourcing from local resource and supported
by the provincial utility company
  Veladero mine life is reported to be 20 years
  “We use large quantities of diesel, both to power our mining fleets and, in
some cases, to generate on-site electricity. Over the past few years we
have been sourcing more of our energy from renewables, including wind,
solar power, and biodiesel. “
  “In 2009, 17 percent….of our purchased electrical power was sourced from
renewables. We also generated renewable energy at some sites”
  “We have established an Energy Group which has been assisting our
operations in assessing energy efficiency opportunities with the goal of
implementing energy efficiency programs and alternative energy initiatives.
To provide corporate oversight of these programs and to more directly
address the issue of climate change, we developed a global climate change
program in 2007………As part of that program…carbon emissions will be
considered in all material decision-making. The evaluation of carbon
emissions will depend on the type of decision being made”
  “For new projects, an energy study will be performed and will include
optimization of project energy efficiencies, an assessment of carbon
emissions associated with potential power supply options, the climate
change-related risks, mitigation and residual risks, and the development of
a mitigation plan. This evaluation will promote consideration of energy
alternatives to mitigate economic risks and minimize Barrick’s carbon
footprint. Our goal is to provide for Barrick’s long-term competitiveness in a
carbon-constrained economy, and to mitigate impacts.”
From Barrick’s Website
Source: www.barrickresponsibility.com
Barrick Annual Report 2010
“The Veladero mine in Argentina had an outstanding year, producing more
than 1.1 million ounces at total cash costs at $256 per ounce on higher grades
and expanded throughput….”
Source: Barrick Annual Report 2010
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Los Despoblados
Photographs
Camp Veladero Veladero WindmillCamp Veladero
Hydrothermal Manifestations Hydrothermal Manifestations Veladero Open Pit
Source: Google Earth Source: Google EarthSource: Geotermia Andina
Source: Geotermia Andina Source: Geotermia Andina Source: Geotermia Andina
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Pascua Lama … a Gold Mine Giant, also by Barrick
Pascua Lama Energy Needs
  Pascua Lama will need 120 MW of energy
  This is a bi-national project (the site straddles the
Chile-Argentina border)
  Argentina will push for the supply of energy and for its
share from its own resources
o  Political pressure would be enhanced if energy source is a
clean energy
  Pascua Lama could receive energy from a Chilean
grid however, there are issues with the availability of
energy in Chile and the grid’s ability to supply the
required energy
  Geothermal resources in close proximity to the mine
is attractive from a political, marketing and business
perspective.
  Challenges include legislation in both Chile and
Argentina aimed at protecting glaciers
o  In Argentina this has already led to a challenge between the
mining-friendly provincial governments (where mining can
go ahead if Environmental Impact Study are approved) and
the federal government. However, Veladero operates with
its environmental impact studies approved by the
government and audited by the province
o  Developing a renewable source such as geothermal energy
associated to gold mining is very attractive policy
Barrick Annual Report 2010
  “Major progress was made in 2010 on advancing construction of the world-
class Pascua-Lama gold-silver project on the border of Chile and Argentina,
which is expected to enter production in the first half of 2013.”
  “As of February 2011, approximately 40% of the pre-production budget of
about $3.3 - $3.6 billion has been committed.”
  “Anticipated average annual production of 750,000 -800,000 ounces at
total cash costs of $20 - $50 per ounce in the first full five years illustrates
the positive impact this mega project will have on the Company’s overall
portfolio.”
  “As of February 2011, detailed engineering has been advanced to more
than 90% completion. The four kilometer long ore tunnel connecting the
mine in Chile with the processing plant in Argentina has been collared from
both sides an is expected to be completed in the second half of 2012.”
  “With 17.8 million ounces of gold reserves and 671 million ounces of silver
contained within the gold reserves, Pascua Lama is expected to contribute
very low cost ounces to Barrick over a mine life in excess of 25 years.”
  “….is on track to commence production in the first half of 2013”
  “When complete, it is expected to be one of the lowest operating cost gold
producing mines in the world.
Source: Barrick Annual Report 2010
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Valle del Cura
Neighbouring Concessions with other potential off-takers
Veladero
Mine
Pascua Lama
Mine
Chile
ArgentinaRoad to
Veladero Mine
Malbex Resources
Los Amarillos
Gold
Argentina Mining Ltd
Gold
Argentina Mining Ltd
Gold
Argentina Mining Ltd
Gold
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Valle del Cura
Structures
The geothermal system
associated with Los
Despoblados, Gollete and
Bañitos are aligned.
Thay all share the same
structural system, whereby
structures intersect mega
fault lines, giving rise to
surface hot springs.
This geothermal system
consists of an area of 30 km
long by 6 km wide.
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Valle del Cura
El Gollete Hot Spring
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El Gollete Hot Spring
Geochemical measurements (gas and water)
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El Gollete geothermal area Cation geothermometers
High entalpy with high capacity for generation of electricity
Sample%#&
Na?K%
Fournier%
(ºC)
Ca?Na%
Tonani%(ºC)
Ca?K%Tonani%
(ºC)
M1210-1
182 153 251
M1210-2
181 151 155
M1210-3
216 337 264
M1210-4
207 217 202
M1210-5
205 397 207
M1210-6
196 387 202
M1210-7
227 250 154
M1210-8
232 307 162
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Los Bañitos geothermal springs
Typical precipitation of chloride salts and boric from geothermal source
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Los Bañitos geothermal area
Upwell geothermal water with considerable bubbling CO2 gas
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Los Bañitos geothermal area Cation geothermometers
High enthalpy with high capacity for generation of electricity
Sample # Na?Li%(ºC)% Ca?Na%
Tonani%(ºC)%
Na?K%
Amorson%
(ºC)%
B1210-1 220 196 140
B1210-2 250 291 176
B1210-3 247 317 172
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Northern Concession: Tuzgle / Tocomar
Salta and Jujuy Provinces
Chile
Argentina   Preliminary geothermal
prospection was carried out in
1978-79
  First pre-feasibility studies
carried out in 1980-81 by
Ministry of Mining and Energy
  Further studies were
undertaken in 1980s and
1990s including gradient
drilling in 1989-90
  The area is well serviced by
roads
  An underutilised high voltage
transmission line (345 kV)
passes through three of the
concessions (and continues
into Chile)
  This is an area where heavy
development of Lithium mining
(energy intensive mining) is
currently underway
  Based on comparisons with
similar geothermal fields with
installed energy, we estimate
the energy potential of each
geothermal field (Tuzgle /
Tocomar) to be 50 MW each
Tuzgle - Tocomar
Volcan Tuzgle I
Volcan Tuzgle II
Falla Tocomar IV
Volcan Tuzgle III
Falla Tocomar V
Falla Tocomar VI
High voltage
transmission line
345 kV
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Northern Concessions: Tuzgle / Tocomar
Potential off-takers in close proximity
Chile
Argentina
Ady Resources
Lithium / Potash /
Boron
Orocobre Ltd
Lithium / Potash /
Boron
Lithium Americas
Lithium
Golden Minerals
Silver
Orocobre Ltd
Lithium / Potash /
Boron
High voltage
transmission line
345 kV
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Northern Concessions: Tuzgle / Tocomar
345kV high voltage transmission power line to Chilean power grid
The 345 kV transmission line is owned by InterAndes, a
subsidiary of AES Gener.
AES Gener is a publicly listed company in Chile focused on the
generation and distribution of electricity in Chile. It supplies the
“Sistema Interconnectado Cental” (SIC electricity grid) through its
direct interest in four hydroelectric plants, two coal plants and two
gas fired turbine plants.
AES Gener is also a supplier of energy to the “Sistema
Interconectado del Norte Grande” (SING electricity grid) through its
subsidiaries Norgener and TermoAndes. The first is a coal fired
power plant in the city of Tocopilla in Chile. The later, is a
combined cycle natural gas plant, located at Cobos in the province
of Salta in Argentina.
The purpose of the Termo Andes plant in Salta is to supply the
SING electricity market in Chile. It is the first facility in Argentina
oriented to the export of electrical power to neighboring countries.
The power generated from this plant, is transmitted to northern
Chile by a dedicated 345 kV transmission line which is connected
to the SING.
Transmission Line
33Please&read&important&disclaimer&at&the&end&of&the&presenta2on&&
BHP Billiton
Escondida – the world’s largest copper mine in Northern Chile
Escondida is the largest copper mine in the world. It is located 160 km southeast of Antofagasta in Chile’s Region II.
In 2011, Escondida produced 990,000 tons of copper. Production is expected to expand to 1,300,000 tons per
annum by June 2015.
Escondida is supplied power by Norgener (104 MW) and Edelnor (58 MW). It also has four emergency diesel
generators totaling 4 MW. The primary energy demand by Escondida, supports the grinding mills, slurry pumps and
the mine itself.
The mine receives electricity through two x 220kV transmission lines that is connected to the SING (Sistema
Interconectado Norte Grande) in substations Mejillones and Cruise. The high-tension power line found in lpineas,
which starts at Mejillones and ends at the mine site, is owned by Escondida. Whilst the other parallel high tension
line, is jointly owned by Escondida and the Zaldivar mine. BHP Billiton is actively looking for alternative energy
solutions to mitigate the energy deficit which exits in Chile.
Source: Geotermia Andina
34Please&read&important&disclaimer&at&the&end&of&the&presenta2on&&
Northern Concessions: Tuzgle / Tocomar
Photographs
Hydrothermal Manif. - Antuco 345 kV Tower at TocomarHydrothermal Manif. - Tocomar
Hydrothermal Manif. - Tuzgle Tocomar Geothermal Area Tuzgle Volcano
Source: Google Earth Source: Geotermia AndinaSource: Geotermia Andina
Source: Geotermia Andina Source: Geotermia Andina Source: Geotermia Andina
35Please&read&important&disclaimer&at&the&end&of&the&presenta2on&&
Tuzgle (Jujuy Province)
Geophysical Map / Electro-Stratigraphic Profile
36Please&read&important&disclaimer&at&the&end&of&the&presenta2on&&
Tuzgle geothermal area Cation geothermometers
High enthalpy with high capacity for generation of electricity
Na?K?Ca& Na?K&
Sample%#& Water%
temp.%
°C&
Na?Li&
Fouillac%&%
Michard&
(1981)%°C&
Ca?Na&
°C&
Fournier%&%
Truesdell&
(1973)%β=%1/3&
°C&
Fournier%&%
Truesdell&
(1973)%β=%4/3&
°C&
Amórson&
(1983)&
°C&
AC5TU503& 35.8& n.d.& n.d.& n.d.& n.d.& n.d.&
AC5TU504& 43.5& 273& 239& 214& 210& 221&
AC5TU505& 48.6& 302& 223& 217& 207& 229&
AC5TU507& 53.5& 280& 256& 206& 206& 203&
AC5TU508& 50.0& 293& 239& 211& 206& 214&
AC5TU510& 42.5& 263& 205& 193& 179& 190&
37Please&read&important&disclaimer&at&the&end&of&the&presenta2on&&
Tocomar (Salta Province)
Geophysical Map / Electro-Stratigraphic Profile
38Please&read&important&disclaimer&at&the&end&of&the&presenta2on&&
Tocomar geothermal area Cation geothermometers
High enthalpy with high capacity for generation of electricity
Na?K?Ca& Na?K&
Sample%#& Water%
temp.%
°C&
Na?Li&
Fouillac%&%
Michard&
(1981)%°C&
Ca?Na&
°C&
Fournier%&%
Truesdell&
(1973)%β=%1/3&
°C&
Fournier%&%
Truesdell&
(1973)%β=%4/3&
°C&
Amórson&
(1983)&
°C&
TO519& 56.4& 279.4& 295.0& 212.0& 223.0& 207.0&
TO520& 50.5& 279.5& 261.0& 211.0& 212.0& 210.0&
TO521& 38.3& 274.9& 318.0& 208.0& 225.0& 198.0&
TO522& 64.0& 288.9& 326.0& 204.0& 222.0& 190.0&
TO523& 60.6& 295.3& 307.0& 205.0& 219.0& 194.0&
TO524& 52.5& 284.5& 320.0& 202.0& 219.0& 188.0&
TO525& 47.0& 240.6& 338.0& 207.0& 227.0& 192.0&
R5TO530& 54.0& 298.1& 284.0& 197.0& 205.0& 184.0&
39Please&read&important&disclaimer&at&the&end&of&the&presenta2on&&
Northern Concessions: Rosario de la Frontera Project
Salta Province
  In this area, we find a group of
thermal manifestations aligned
along the eastern belt of the Sub
Andean fold system
  A medium enthalpy field, with high
geothermometer values (Na-K)
suggesting a high enthalpy
reservoir at depth
  Developed geothermal systems in
similar settings typically have
capacities in the range of a few
MW to a few tens of MW
  The city of Rosario de La Frontera
city has 30.000 residents
  Electricity is provided by two x 138
kV power lines that belong to the
Argentine interconnected power
system
  The area is well served by roads
  There is a lot of industrial activity
related to agribusiness in this area
and a high demand for the
provision of electricity
Rosario de la Frontera
40Please&read&important&disclaimer&at&the&end&of&the&presenta2on&&
Sample #
GeoTº_Na-K
GeoTº_SiO2_
Qz
Spring
Water_Tº
M1
203 130.0 89.2
M2 270 130.0 75.6
M3 220 129.0 84.3
M4 175 124.0 52.8
M5 263 127.0 76.2
M6 261 96.0 25
M7 ND ND 68
M8 ND ND 72
M9 ND ND 76
M10 ND ND 63.2
M11 ND ND 79
M12 ND ND 84
M13 ND ND 99
M14 ND ND 87
Details of hot-spring temperature and geothermometers (Celsius)
Rosario de la Frontera - Cation geothermometers
41Please&read&important&disclaimer&at&the&end&of&the&presenta2on&&
Geotermia Andina S.A.
Company Structure
Dr. Giorgio Stangalino
President and CEO
Dr. Fernando Rodríguez
Business Development
Manager
Dr. C. Gustavo Fernández
Exploration Manager
Ana Saladino
Executive Assistant
42Please&read&important&disclaimer&at&the&end&of&the&presenta2on&&
Scientific project leader for Geotermia Andina S.A.
Dr. Giorgio Stangalino – geologist, geophysicist & geothermal expert
Dr. Stangalino holds a Ph.D. in geology from Università Statale di Roma, Italy. He has taken part, at a senior level, in several Latin-
American and Italian government projects working with international organizations (United Nations, OLADE) and private investment
companies. His aggregate experience accounts for more than 20 years of geothermal project development, from all around the world and
including:
• ARGENTINA: Copahue Volcano Geothermal Project – Neuquén Province
• ARGENTINA: Domuyo Volcano Geothermal Project – Neuquén Province.
• ARGENTINA: Valle del Cura Geothermal Projects (Los Despoblados, Gollete & Bañitos) - San Juan Province; Tuzgle Geothermal Project -
Jujuy Province; Tocomar Geothermal Project – Salta Province; and Rosario de la Frontera Project, Salta Province.
• BOLIVIA: Laguna Colorada / Sol de Mañana Geothermal Project.
• CHILE: El Tatio Geothermal Project.
• COSTA RICA: Miravalles Volcano Geothermal Project.
• ECUADOR: Scientific consultant for the OLADE hired to carry out surveys in Venezuela and Colombia
• EL SALVADOR: Ahuachapan Geothermal Project.
• PHILLIPINES: Daklan Bokod (Luzon) Geothermal Project.
• GUATEMALA: Moyuta Volcano Geothermal Project.
• GUATEMALA: Zunil I y II Geothermal Project.
• GUATEMALA: Amatitlan Lake Geothermal Project.
• HONDURAS: Valle Comayagua Geothermal Project.
• IRAN: Damavand Volcano Geothermal Project.
• ITALY: Project “Progetto Finalizzato Energetica 1983-1987 Sottoprogetto Energia Geotérmica” – Consiglio Nazionale delle Ricerche(CNR)
• ITALY: Bolsena and Bracciano Lakes Geothermal Area (Region of Lazio)
• MEXICO: Los Azufres Geothermal Project – State of Michoacán.
• NICARAGUA: Momotombo Volcano Geothermal Project.
• NICARAGUA: El Triángulo (Masaya, Granada y Nandaime) Geothermal Project.
• NICARAGUA: San Jacinto – Tizate Geothermal Project.
• YEMEN: Dhamar-Rada’a Geothermal Project.
• PANAMA: Several campaigns carried out to identify potential projects.
Geotermia Andina S.A.
Virrey del Pino 1540
Buenos Aires, Argentina
+54 11 4785 9608
!"#$"%&'(
)*+'*(,-(-
Giorgio Stangalino gstangalino@geotermiaandina.com
CEO & President
Ana Saladino anasaladino@geotermiaandina.com
Executive Assistant
Fernando Rodriguez frodriguez@geotermiaandina.com
Business Development Manager

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Energy to mining activity in remote location

  • 2. 2Please&read&important&disclaimer&at&the&end&of&the&presenta2on&& Disclaimer This document has been prepared to provide prospective clients and partners with information in relation to the investment in Geotermia Andina, S.A. and may not be used or reproduced for any other purpose. This information set forth herein (the “Information”) does not purport to be complete. No person has been authorised to make any statement concerning the investment opportunity other than as will be set forth in this document and any statements made that are not contained therein may not be relied upon. We are providing the Information to you for information purposes only and without representation or warranty, express or implied, by us as to its accuracy or completeness and without any responsibility on our part to revise or update the Information. As a condition for providing this information, we make no representation and shall have no liability in any way arising therefrom to you or any other entity (for any loss or damage, direct or indirect, arising from the use of this Information). This document is confidential and is intended solely for the information of the person to whom it has been delivered. It may not be reproduced or transmitted, in whole or in part, to third parties except as agreed in writing by us. In addition, you agree that, promptly upon our request, all copies of the information furnished to you will be promptly returned to us and you agree that all intellectual property rights subsisting in the Information provided do not belong to you. In considering any performance data contained herein, each prospective investor should bear in mind that past performance is not indicative of future results, and there can be no assurance that the investments will achieve comparable results. In addition, there can be no assurance that unrealised investments will be realised at the valuations shown as actual realised returns will depend on, among other factors, future operating results, the value of the assets and market conditions at the time of disposition, any related transaction costs, and the timing and manner of sale, all of which may differ from the assumptions on which the valuations contained herein are based. Nothing contained herein should be deemed to be a prediction or projection of future performance of future Activities undertaken on behalf of prospective investors. Except where otherwise indicated herein, the Information provided herein is based on matters as they exist as of the date of preparation and not as of any future date and will not be updated or otherwise revised to reflect information that subsequently becomes available or circumstances existing or changes occurring after the date hereof. Certain information contained in this presentation constitutes “forward-looking statements” which can be identified by the use of forward-looking terminology such as “may”, “will”, “should”, “except”, “anticipate”, “target”, “project”, “estimate”, “intend”, “continue” or “believe” or the negatives thereof or other variations thereon or comparable terminology. Due to various risks and uncertainties, actual events or results or the actual performance of future Activities undertaken on behalf of prospective investors may differ materially from those reflected or contemplated in such forward-looking statements. Nothing contained herein should be construed as legal, investment, accounting or tax advice. Each prospective investor should consult its own attorney, business or investment advised, accounting adviser and tax adviser as to legal, business, accounting, tax and related matters concerning the information contained herein. Prospective investors, clients or partners should make their own analysis and decisions of the information contained herein, independently and without reliance on the Information or on us and based upon such investigation, analysis and evaluations, as they deem appropriate.
  • 3. 3Please&read&important&disclaimer&at&the&end&of&the&presenta2on&& Table of Content •  Key Features •  Overview of Geothermal Energy •  Overview of Geothermal Concessions o  San Juan Province: Valle del Cura Geothermal Fields o  Los Despoblados Project o  Gollete & Bañitos Projects o  Salta & Jujuy Provinces: Tuzgle -Tocomar Project o  Salta Province: Termas Rosario de la Frontera Project •  Team Leader
  • 4. 4Please&read&important&disclaimer&at&the&end&of&the&presenta2on&& Key Features   Mining operations around the world are increasingly being developed in remote locations (especially, along the Andes mountain ranges) where; o  There is no access to the electricity grid o  Energy intensive operations rely on fuel-fed generators, which are not only expensive but also host a negative perception and Environmental Impact on mining activity.   Geothermal fields in close proximity to mines are an economically feasible and environmentally friendly solution to the energy needs of the mining industry.   Geothermal energy is a “base load” energy and a constant source. It is extremely attractive because it is not dependent on wind or the sun.   Geothermal developments in close proximity to Barrick’s Pascua Lama gold mine – a large scale bi- national project supported by the Chilean and Argentine governments.   Geotermia Andina has; o  Nine geothermal concessions in Argentina o  Potential to explore further fields in Peru, Chile, Colombia and other sites in Latin America o  A team of experienced geologists and experts in the qualification and assessment of geothermal fields Development of geothermal fields to meet the energy requirements of remote mining operations
  • 5. 5Please&read&important&disclaimer&at&the&end&of&the&presenta2on&& Overview of Geothermal Resource Resource Geothermal Reservoirs   Energy is contained in the form of heat within the earth o  Geothermal energy is available in abundance and in theory, is inexhaustible o  The geothermal gradient is where the progressive increase in temperature is realised at increased depths; at an average of 3 degrees Celsius per every 100 meters   Geothermal reservoirs o  There are areas of the earth where the geothermal gradient is much higher and only certain locations have the right geological conditions o  In these locations, geothermal fluids (when in contact with hot and permeable rocks), form hot aquifers or geothermal reservoirs o  Over time, the circulation of geothermal fluids gradually seal the geothermal reservoir by the precipitation of minerals in rocks and pores in the earth o  In some areas, geothermal fluids reach the surface, giving rise to geothermal manifestations (hot springs, geysers, fumaroles)   Production wells o  The heat found in geothermal reservoirs can be captured to generate electricity or to make direct use of the geothermal heat Heat Source   Areas that have a high geothermal gradient are typically caused by: o  Presence of bodies of fluid or solidified magma in its cooling stage near the surface o  Particular hydrogeological conditions not related to magmatic activity
  • 6. 6Please&read&important&disclaimer&at&the&end&of&the&presenta2on&& Geothermal …a renewable energy Environmental Impact of geothermal energy Exploration of geothermal fields   The use of geothermal energy to produce electricity is a renewable and clean energy source, however the production of geothermal energy into electricity, does generate some emissions   The average CO² emitted by various energy sources is detailed below: Fuel Source CO² emission grams/ kWhr Coal 1,042 Oil 906 Natural Gas 453 Geothermal 170   The scientific assessment of geothermal fields is a complex and multi-disciplinary process that requires involvement of experienced geologists / geophysicists   Exploration stages involve the following activities: o  Surface exploration o  Geological study – analysis of the geological structure o  Geochemical analysis – use of geothermometers, which analyse the chemical signature of water collected from surface manifestations o  Geophysical investigations – use of magnetotelluric technologies for imaging structures below the earth’s surface o  Study of the permeability of the potential reservoir o  Drilling of exploratory wells   The end result is the measurement of the geothermal gradient and the assessment of terrestrial heat flow to determine where production wells will be located  The emissions for geothermal activity (above) somewhat overestimates the geothermal emissions, as it includes CO² that would otherwise be released naturally into the environment during the conventional production of electricity. Albeit, the CO² impact of geothermal energy is much lower than other energy sources.   Aside from CO², geothermal fluids can include components such as hydrogen sulphide (“rotten egg” smell), ammonia, methane, arsenic, mercury, lead, zinc, boron or sulphur. These components need to be environmentally managed; typically they are re-injected into the earth along with the water that is directed into the re-injection wells Re-injection wells   In addition to production wells, there are also re-injection wells that are drilled for the return of geothermal fluids to the geothermal reservoir, so as to: o  Reduce drop in pressure in the geothermal reservoir during the exploitation of geothermal fluids o  The ability to extract more heat AND extend the useful life of the geothermal reservoir
  • 7. 7Please&read&important&disclaimer&at&the&end&of&the&presenta2on&& Production of Electricity Technologies for geothermal power generation   Dry steam power plants o  The most cost effective technology when resource temperature is above 175 . Steam is directly passed through a turbine to generate electricity   Flash steam power plants o  In this technology, geothermal fluid is flashed through a low pressure tank; the steam is then directed to a turbine o  This can be a single or dual stage process; the dual stage separates geothermal fluid at two different pressure points   Binary-cycle power plants o  In this technology, heat from the geothermal fluid is transferred via a heat exchanger to a secondary fluid that is vaporised and passes through a turbine. The design of the geothermal power plant needs to be adapted to the characteristics of the geothermal fluid that is analysed upon extraction during the exploratory drilling stage. Adaptation to whether it is dry steam or liquid, or a combination of both, is realised at the drill stage.   Expectations about “Enhanced Geothermal Systems” (EGS) o  EGS are new techniques that allow exploitation of geothermal resources that traditionally have not been productive. EGS are designed to extract heat from areas with low permeability and porosity o  Massachusetts Institute of Technology, in its report “The Future of Geothermal Energy”, estimates that EGS could provide 100 GW of new geothermal capacity Geothermal – an under utilised resource   Geothermal electricity is very attractive because it is base load energy. It is not dependent on the wind or the sun   According to the International Geothermal Association (IGA), the installed capacity of reporting countries in 2010 was 10,715 MWe, up 20% over 2005 o  Expected to generate 67,246 GWh in 2010 o  Only 0.5% of world’s energy generation   Installed capacity is expected by IGA to reach 18,500 MWe in 2015   Geothermal energy is expected to generate 4% of global electricity generation in 2030. Parasitic load   Parasitic load is the amount of energy produced by a geothermal plant that is consumed during its operations (pumps, plant, etc)   The parasitic load depends on the technology employed, typically 15% for a dry steam plant and 25% for a binary plant
  • 8. 8Please&read&important&disclaimer&at&the&end&of&the&presenta2on&&   The Argentine government in the late 1970s ordered studies to explore the country’s geothermal potential   These studies continued in the 1980s and 90s   Actual geothermal exploitation has not been undertaken, except for a small government plant in Copahue, due to the remoteness of sites   Now energy intensive mines are being developed in remote locations, making it viable to produce geothermal energy   The earlier studies allow a good understanding of the sites which host the best geothermal potential Overview of Geothermal Concessions in Argentina Tuzgle-Tocomar   Two concessions in very promising geothermal areas   The area is located in North West Argentina, close to the frontier with Chile and encompassing both the provinces of Salta and Jujuy Valle del Cura Argentina Brazil Argentina Chile Bolivia Uruguay Peru Paraguay Rosario de la Frontera   One concession close to the city of Rosario de la Frontera, in the province of Salta   Six concessions (one in JV with provincial utility company)   The area is located in province of San Juan, close to the frontier with Chile
  • 9. 9Please&read&important&disclaimer&at&the&end&of&the&presenta2on&& Valle del Cura Concessions Veladero Mine Chile Argentina   Located in the Central Andes of San Juan Province   There are numerous hot-spring spots and geothermal manifestations in the area   Preliminary exploration of the area was carried out by consulting firms between 1982-85   All concessions are 100% owned by Geotermia Andina, except for Los Despoblados which is a JV with a local Provincial electricity utility who holds 10%   Close proximity to Barrick’s Veladero Gold Mine (operating) and Pascua Lama Gold Mine (under construction)   The road to the Valedero mine passes through two of the concessions Valle del Cura San Crispin Siciliano V 5000 Ha Chiolay & Casa Pintada Siciliano IV 5000 Ha El Gollete Siciliano II 4842 Ha El Gollete #2 Siciliano II - bis 287 HaLos Bañitos Siciliano I 4959 Ha Los Despoblados 2000 Ha Road to Veladero Mine Los Despoblados 1600 Ha Extension Area Pascua Lama Mine Veladero Mine Chile Argentina Road to Veladero Mine Los Despoblados Cholay & Casa Pintada San Crispin Gollete Los Bañitos
  • 10. 10Please&read&important&disclaimer&at&the&end&of&the&presenta2on&& Los Despoblados … a near-term site for Geothermal energy generation   Most interesting short-term development opportunity   Concession JV with EPSE, the electricity utility owned by the provincial government o  90% owned by Andina Geothermal o  10% owned by EPSE o  2-year exploration period (with extensions) plus 25 year operating concession o  5% royalty to be paid to EPSE   The JV partner will assist in the commercialization of any potential energy production   Advanced feasibility studies have been completed and drill location identified for the first slim hole o  Production tests of first slim hole and additional surface studies will determine locations for two further slim holes   Close proximity of Veladero Camp (4.5 kms) merits the study of supplying direct thermal heat to the camp site Los Despoblados Road to Veladero Mine Veladero Mine Pascua Lama Mine Chile Argentina Location identified for first slim hole after geological studies Area of concession 3600 Ha Camp site
  • 11. 11Please&read&important&disclaimer&at&the&end&of&the&presenta2on&& Los Despoblados – Pre Feasibility Study Surface exploration evaluation report Source: Independent Consultant Report Ready for Exploration Drilling Phase   Independent consultant indicates overall positive evaluation: o  “…the available data defines a promising geological, geochemical and geophysical framework for the existence of an attractive geothermal resource at Los Despoblados.” o  “…deep exploratory drilling is required to confirm the depth, effective temperature, extension and characteristics of the geothermal reservoir. However, a range in the order of ten to few tens of MW’s, could be expected for this kind of resource.” o  “…the continuation of geothermal exploration in the area is recommended, passing to the exploration drilling phase, in order to confirm the existence and the characteristics of the geothermal resource through multipurpose well dedicated to temperature/gradient measurements, stratigraphy, hydrothermal alteration and permeability analysis. Initial drilling should be planned with application of deep slim-hole technology (1000-1500m), and targeted inside the most promising area…” o  “the general characteristics of Los Despoblados geothermal system are common to other non-volcanic, tectonically controlled, geothermal systems like, for example, some of those in the “Basin and Range” of western USA, where a number of similar systems are being exploited for power generation...”
  • 12. 12Please&read&important&disclaimer&at&the&end&of&the&presenta2on&& Los Despoblados – Geothermometry Photographs Source: Google Earth Source: Geotermia Andina Source: Geotermia Andina Geochemical measurements taken in thermal water plus gas being extracted from Los Despoblados project Rn Instrument and He mass spectrometer
  • 13. 13Please&read&important&disclaimer&at&the&end&of&the&presenta2on&& Los Despoblados Surface exploration measurements Source: Independent Consultant Report Cation Geothermometers (°C) (water mixture) Na/K% Na/K% Na/K% Fournier% Truesdell% Giggenbach% 196% 162% 213% 206% 174% 222% 210% 179% 226% 208% 176% 224% 208% 177% 224% Na%?%K%?%Ca% Na%?%K%?%Ca% Mg%corr% 182% 116% 192% 174% 194% 174% 195% 152% 193% 145% K/Mg% Giggenbach% 122% 140% 136% 140% 135%
  • 14. 14Please&read&important&disclaimer&at&the&end&of&the&presenta2on&& Los Despoblados – Geophysical Photographs Source: Google Earth Source: Geotermia Andina Source: Geotermia Andina Audio Magneto Telluric Geophysical Method (AMT) Magneto Telluric Geophysical Method (MT) Source: Geotermia Andina
  • 15. 15Please&read&important&disclaimer&at&the&end&of&the&presenta2on&& Los Despoblados Geophysical Isoresistivity Curves 1125 m Geothermal Targets Location identified for first slim hole after surface exploration phase
  • 16. 16Please&read&important&disclaimer&at&the&end&of&the&presenta2on&& Los Despoblados Geophysical Isoresistivity Curves 1625 m Location identified for first slim hole after surface exploration phase Geothermal Targets
  • 19. 19Please&read&important&disclaimer&at&the&end&of&the&presenta2on&& Veladero … a gold mine by Barrick Veladero Energy Needs   Veladero currently has installed capacity of approximately 32 MW o  30 MW from diesel fuel generators o  2 MW from one wind turbine   The high altitude (4000 meters) has a detrimental impact on fuel generator efficiency   The 2 MW wind turbine had a very high price tag (aprox. USD 4M per MW) o  Availability is subject to wind performance o  Investment was driven by needs to prove environmental credentials   Current energy generation is very expensive – we estimate upwards of USD 320 / MWh and potentially much higher   Sourcing energy from an available geothermal (base load) green energy close to the site will be very attractive for Barrick o  In addition, it will compliment the relationship with local government by sourcing from local resource and supported by the provincial utility company   Veladero mine life is reported to be 20 years   “We use large quantities of diesel, both to power our mining fleets and, in some cases, to generate on-site electricity. Over the past few years we have been sourcing more of our energy from renewables, including wind, solar power, and biodiesel. “   “In 2009, 17 percent….of our purchased electrical power was sourced from renewables. We also generated renewable energy at some sites”   “We have established an Energy Group which has been assisting our operations in assessing energy efficiency opportunities with the goal of implementing energy efficiency programs and alternative energy initiatives. To provide corporate oversight of these programs and to more directly address the issue of climate change, we developed a global climate change program in 2007………As part of that program…carbon emissions will be considered in all material decision-making. The evaluation of carbon emissions will depend on the type of decision being made”   “For new projects, an energy study will be performed and will include optimization of project energy efficiencies, an assessment of carbon emissions associated with potential power supply options, the climate change-related risks, mitigation and residual risks, and the development of a mitigation plan. This evaluation will promote consideration of energy alternatives to mitigate economic risks and minimize Barrick’s carbon footprint. Our goal is to provide for Barrick’s long-term competitiveness in a carbon-constrained economy, and to mitigate impacts.” From Barrick’s Website Source: www.barrickresponsibility.com Barrick Annual Report 2010 “The Veladero mine in Argentina had an outstanding year, producing more than 1.1 million ounces at total cash costs at $256 per ounce on higher grades and expanded throughput….” Source: Barrick Annual Report 2010
  • 20. 20Please&read&important&disclaimer&at&the&end&of&the&presenta2on&& Los Despoblados Photographs Camp Veladero Veladero WindmillCamp Veladero Hydrothermal Manifestations Hydrothermal Manifestations Veladero Open Pit Source: Google Earth Source: Google EarthSource: Geotermia Andina Source: Geotermia Andina Source: Geotermia Andina Source: Geotermia Andina
  • 21. 21Please&read&important&disclaimer&at&the&end&of&the&presenta2on&& Pascua Lama … a Gold Mine Giant, also by Barrick Pascua Lama Energy Needs   Pascua Lama will need 120 MW of energy   This is a bi-national project (the site straddles the Chile-Argentina border)   Argentina will push for the supply of energy and for its share from its own resources o  Political pressure would be enhanced if energy source is a clean energy   Pascua Lama could receive energy from a Chilean grid however, there are issues with the availability of energy in Chile and the grid’s ability to supply the required energy   Geothermal resources in close proximity to the mine is attractive from a political, marketing and business perspective.   Challenges include legislation in both Chile and Argentina aimed at protecting glaciers o  In Argentina this has already led to a challenge between the mining-friendly provincial governments (where mining can go ahead if Environmental Impact Study are approved) and the federal government. However, Veladero operates with its environmental impact studies approved by the government and audited by the province o  Developing a renewable source such as geothermal energy associated to gold mining is very attractive policy Barrick Annual Report 2010   “Major progress was made in 2010 on advancing construction of the world- class Pascua-Lama gold-silver project on the border of Chile and Argentina, which is expected to enter production in the first half of 2013.”   “As of February 2011, approximately 40% of the pre-production budget of about $3.3 - $3.6 billion has been committed.”   “Anticipated average annual production of 750,000 -800,000 ounces at total cash costs of $20 - $50 per ounce in the first full five years illustrates the positive impact this mega project will have on the Company’s overall portfolio.”   “As of February 2011, detailed engineering has been advanced to more than 90% completion. The four kilometer long ore tunnel connecting the mine in Chile with the processing plant in Argentina has been collared from both sides an is expected to be completed in the second half of 2012.”   “With 17.8 million ounces of gold reserves and 671 million ounces of silver contained within the gold reserves, Pascua Lama is expected to contribute very low cost ounces to Barrick over a mine life in excess of 25 years.”   “….is on track to commence production in the first half of 2013”   “When complete, it is expected to be one of the lowest operating cost gold producing mines in the world. Source: Barrick Annual Report 2010
  • 22. 22Please&read&important&disclaimer&at&the&end&of&the&presenta2on&& Valle del Cura Neighbouring Concessions with other potential off-takers Veladero Mine Pascua Lama Mine Chile ArgentinaRoad to Veladero Mine Malbex Resources Los Amarillos Gold Argentina Mining Ltd Gold Argentina Mining Ltd Gold Argentina Mining Ltd Gold
  • 23. 23Please&read&important&disclaimer&at&the&end&of&the&presenta2on&& Valle del Cura Structures The geothermal system associated with Los Despoblados, Gollete and Bañitos are aligned. Thay all share the same structural system, whereby structures intersect mega fault lines, giving rise to surface hot springs. This geothermal system consists of an area of 30 km long by 6 km wide.
  • 26. 26Please&read&important&disclaimer&at&the&end&of&the&presenta2on&& El Gollete geothermal area Cation geothermometers High entalpy with high capacity for generation of electricity Sample%#& Na?K% Fournier% (ºC) Ca?Na% Tonani%(ºC) Ca?K%Tonani% (ºC) M1210-1 182 153 251 M1210-2 181 151 155 M1210-3 216 337 264 M1210-4 207 217 202 M1210-5 205 397 207 M1210-6 196 387 202 M1210-7 227 250 154 M1210-8 232 307 162
  • 27. 27Please&read&important&disclaimer&at&the&end&of&the&presenta2on&& Los Bañitos geothermal springs Typical precipitation of chloride salts and boric from geothermal source
  • 28. 28Please&read&important&disclaimer&at&the&end&of&the&presenta2on&& Los Bañitos geothermal area Upwell geothermal water with considerable bubbling CO2 gas
  • 29. 29Please&read&important&disclaimer&at&the&end&of&the&presenta2on&& Los Bañitos geothermal area Cation geothermometers High enthalpy with high capacity for generation of electricity Sample # Na?Li%(ºC)% Ca?Na% Tonani%(ºC)% Na?K% Amorson% (ºC)% B1210-1 220 196 140 B1210-2 250 291 176 B1210-3 247 317 172
  • 30. 30Please&read&important&disclaimer&at&the&end&of&the&presenta2on&& Northern Concession: Tuzgle / Tocomar Salta and Jujuy Provinces Chile Argentina   Preliminary geothermal prospection was carried out in 1978-79   First pre-feasibility studies carried out in 1980-81 by Ministry of Mining and Energy   Further studies were undertaken in 1980s and 1990s including gradient drilling in 1989-90   The area is well serviced by roads   An underutilised high voltage transmission line (345 kV) passes through three of the concessions (and continues into Chile)   This is an area where heavy development of Lithium mining (energy intensive mining) is currently underway   Based on comparisons with similar geothermal fields with installed energy, we estimate the energy potential of each geothermal field (Tuzgle / Tocomar) to be 50 MW each Tuzgle - Tocomar Volcan Tuzgle I Volcan Tuzgle II Falla Tocomar IV Volcan Tuzgle III Falla Tocomar V Falla Tocomar VI High voltage transmission line 345 kV
  • 31. 31Please&read&important&disclaimer&at&the&end&of&the&presenta2on&& Northern Concessions: Tuzgle / Tocomar Potential off-takers in close proximity Chile Argentina Ady Resources Lithium / Potash / Boron Orocobre Ltd Lithium / Potash / Boron Lithium Americas Lithium Golden Minerals Silver Orocobre Ltd Lithium / Potash / Boron High voltage transmission line 345 kV
  • 32. 32Please&read&important&disclaimer&at&the&end&of&the&presenta2on&& Northern Concessions: Tuzgle / Tocomar 345kV high voltage transmission power line to Chilean power grid The 345 kV transmission line is owned by InterAndes, a subsidiary of AES Gener. AES Gener is a publicly listed company in Chile focused on the generation and distribution of electricity in Chile. It supplies the “Sistema Interconnectado Cental” (SIC electricity grid) through its direct interest in four hydroelectric plants, two coal plants and two gas fired turbine plants. AES Gener is also a supplier of energy to the “Sistema Interconectado del Norte Grande” (SING electricity grid) through its subsidiaries Norgener and TermoAndes. The first is a coal fired power plant in the city of Tocopilla in Chile. The later, is a combined cycle natural gas plant, located at Cobos in the province of Salta in Argentina. The purpose of the Termo Andes plant in Salta is to supply the SING electricity market in Chile. It is the first facility in Argentina oriented to the export of electrical power to neighboring countries. The power generated from this plant, is transmitted to northern Chile by a dedicated 345 kV transmission line which is connected to the SING. Transmission Line
  • 33. 33Please&read&important&disclaimer&at&the&end&of&the&presenta2on&& BHP Billiton Escondida – the world’s largest copper mine in Northern Chile Escondida is the largest copper mine in the world. It is located 160 km southeast of Antofagasta in Chile’s Region II. In 2011, Escondida produced 990,000 tons of copper. Production is expected to expand to 1,300,000 tons per annum by June 2015. Escondida is supplied power by Norgener (104 MW) and Edelnor (58 MW). It also has four emergency diesel generators totaling 4 MW. The primary energy demand by Escondida, supports the grinding mills, slurry pumps and the mine itself. The mine receives electricity through two x 220kV transmission lines that is connected to the SING (Sistema Interconectado Norte Grande) in substations Mejillones and Cruise. The high-tension power line found in lpineas, which starts at Mejillones and ends at the mine site, is owned by Escondida. Whilst the other parallel high tension line, is jointly owned by Escondida and the Zaldivar mine. BHP Billiton is actively looking for alternative energy solutions to mitigate the energy deficit which exits in Chile. Source: Geotermia Andina
  • 34. 34Please&read&important&disclaimer&at&the&end&of&the&presenta2on&& Northern Concessions: Tuzgle / Tocomar Photographs Hydrothermal Manif. - Antuco 345 kV Tower at TocomarHydrothermal Manif. - Tocomar Hydrothermal Manif. - Tuzgle Tocomar Geothermal Area Tuzgle Volcano Source: Google Earth Source: Geotermia AndinaSource: Geotermia Andina Source: Geotermia Andina Source: Geotermia Andina Source: Geotermia Andina
  • 36. 36Please&read&important&disclaimer&at&the&end&of&the&presenta2on&& Tuzgle geothermal area Cation geothermometers High enthalpy with high capacity for generation of electricity Na?K?Ca& Na?K& Sample%#& Water% temp.% °C& Na?Li& Fouillac%&% Michard& (1981)%°C& Ca?Na& °C& Fournier%&% Truesdell& (1973)%β=%1/3& °C& Fournier%&% Truesdell& (1973)%β=%4/3& °C& Amórson& (1983)& °C& AC5TU503& 35.8& n.d.& n.d.& n.d.& n.d.& n.d.& AC5TU504& 43.5& 273& 239& 214& 210& 221& AC5TU505& 48.6& 302& 223& 217& 207& 229& AC5TU507& 53.5& 280& 256& 206& 206& 203& AC5TU508& 50.0& 293& 239& 211& 206& 214& AC5TU510& 42.5& 263& 205& 193& 179& 190&
  • 38. 38Please&read&important&disclaimer&at&the&end&of&the&presenta2on&& Tocomar geothermal area Cation geothermometers High enthalpy with high capacity for generation of electricity Na?K?Ca& Na?K& Sample%#& Water% temp.% °C& Na?Li& Fouillac%&% Michard& (1981)%°C& Ca?Na& °C& Fournier%&% Truesdell& (1973)%β=%1/3& °C& Fournier%&% Truesdell& (1973)%β=%4/3& °C& Amórson& (1983)& °C& TO519& 56.4& 279.4& 295.0& 212.0& 223.0& 207.0& TO520& 50.5& 279.5& 261.0& 211.0& 212.0& 210.0& TO521& 38.3& 274.9& 318.0& 208.0& 225.0& 198.0& TO522& 64.0& 288.9& 326.0& 204.0& 222.0& 190.0& TO523& 60.6& 295.3& 307.0& 205.0& 219.0& 194.0& TO524& 52.5& 284.5& 320.0& 202.0& 219.0& 188.0& TO525& 47.0& 240.6& 338.0& 207.0& 227.0& 192.0& R5TO530& 54.0& 298.1& 284.0& 197.0& 205.0& 184.0&
  • 39. 39Please&read&important&disclaimer&at&the&end&of&the&presenta2on&& Northern Concessions: Rosario de la Frontera Project Salta Province   In this area, we find a group of thermal manifestations aligned along the eastern belt of the Sub Andean fold system   A medium enthalpy field, with high geothermometer values (Na-K) suggesting a high enthalpy reservoir at depth   Developed geothermal systems in similar settings typically have capacities in the range of a few MW to a few tens of MW   The city of Rosario de La Frontera city has 30.000 residents   Electricity is provided by two x 138 kV power lines that belong to the Argentine interconnected power system   The area is well served by roads   There is a lot of industrial activity related to agribusiness in this area and a high demand for the provision of electricity Rosario de la Frontera
  • 40. 40Please&read&important&disclaimer&at&the&end&of&the&presenta2on&& Sample # GeoTº_Na-K GeoTº_SiO2_ Qz Spring Water_Tº M1 203 130.0 89.2 M2 270 130.0 75.6 M3 220 129.0 84.3 M4 175 124.0 52.8 M5 263 127.0 76.2 M6 261 96.0 25 M7 ND ND 68 M8 ND ND 72 M9 ND ND 76 M10 ND ND 63.2 M11 ND ND 79 M12 ND ND 84 M13 ND ND 99 M14 ND ND 87 Details of hot-spring temperature and geothermometers (Celsius) Rosario de la Frontera - Cation geothermometers
  • 41. 41Please&read&important&disclaimer&at&the&end&of&the&presenta2on&& Geotermia Andina S.A. Company Structure Dr. Giorgio Stangalino President and CEO Dr. Fernando Rodríguez Business Development Manager Dr. C. Gustavo Fernández Exploration Manager Ana Saladino Executive Assistant
  • 42. 42Please&read&important&disclaimer&at&the&end&of&the&presenta2on&& Scientific project leader for Geotermia Andina S.A. Dr. Giorgio Stangalino – geologist, geophysicist & geothermal expert Dr. Stangalino holds a Ph.D. in geology from Università Statale di Roma, Italy. He has taken part, at a senior level, in several Latin- American and Italian government projects working with international organizations (United Nations, OLADE) and private investment companies. His aggregate experience accounts for more than 20 years of geothermal project development, from all around the world and including: • ARGENTINA: Copahue Volcano Geothermal Project – Neuquén Province • ARGENTINA: Domuyo Volcano Geothermal Project – Neuquén Province. • ARGENTINA: Valle del Cura Geothermal Projects (Los Despoblados, Gollete & Bañitos) - San Juan Province; Tuzgle Geothermal Project - Jujuy Province; Tocomar Geothermal Project – Salta Province; and Rosario de la Frontera Project, Salta Province. • BOLIVIA: Laguna Colorada / Sol de Mañana Geothermal Project. • CHILE: El Tatio Geothermal Project. • COSTA RICA: Miravalles Volcano Geothermal Project. • ECUADOR: Scientific consultant for the OLADE hired to carry out surveys in Venezuela and Colombia • EL SALVADOR: Ahuachapan Geothermal Project. • PHILLIPINES: Daklan Bokod (Luzon) Geothermal Project. • GUATEMALA: Moyuta Volcano Geothermal Project. • GUATEMALA: Zunil I y II Geothermal Project. • GUATEMALA: Amatitlan Lake Geothermal Project. • HONDURAS: Valle Comayagua Geothermal Project. • IRAN: Damavand Volcano Geothermal Project. • ITALY: Project “Progetto Finalizzato Energetica 1983-1987 Sottoprogetto Energia Geotérmica” – Consiglio Nazionale delle Ricerche(CNR) • ITALY: Bolsena and Bracciano Lakes Geothermal Area (Region of Lazio) • MEXICO: Los Azufres Geothermal Project – State of Michoacán. • NICARAGUA: Momotombo Volcano Geothermal Project. • NICARAGUA: El Triángulo (Masaya, Granada y Nandaime) Geothermal Project. • NICARAGUA: San Jacinto – Tizate Geothermal Project. • YEMEN: Dhamar-Rada’a Geothermal Project. • PANAMA: Several campaigns carried out to identify potential projects.
  • 43. Geotermia Andina S.A. Virrey del Pino 1540 Buenos Aires, Argentina +54 11 4785 9608 !"#$"%&'( )*+'*(,-(- Giorgio Stangalino gstangalino@geotermiaandina.com CEO & President Ana Saladino anasaladino@geotermiaandina.com Executive Assistant Fernando Rodriguez frodriguez@geotermiaandina.com Business Development Manager