More Related Content
Viewers also liked
Viewers also liked (14)
Similar to Investor presentation - Creating Value Through Exploration, Acquisitions and Discovery
Similar to Investor presentation - Creating Value Through Exploration, Acquisitions and Discovery (20)
Investor presentation - Creating Value Through Exploration, Acquisitions and Discovery
- 1. TSX.V: LRA “Creating Value Through Exploration, Acquisitions and Discovery” Investor Presentation October 2012 Creating Value Through Discovery in South America 1
- 2. TSX.V: LRA Forward Looking Statements Except for statements of historical fact rela3ng to the Company, certain informa3on contained herein cons3tutes forward-‐looking statements. Forward-‐looking statements are frequently characterized by words such as “plan”, “expect”, “project”, “intend”, “believe”, “an3cipate” and other similar words, or statements that certain events or condi3ons “may” or “will” occur. Forward-‐looking statements are based on the opinions and es3mates of management on the date the statements are made, and are subject to a variety of risks and uncertain3es and other factors that could cause actual events or results to differ materially from those projected in the forward-‐looking statements. There can be no assurance that such forward-‐looking statements will prove to be accurate, as actual results and future events could differ materially from those an3cipated in such statements. Accordingly, readers should not place undue reliance on such statements. The Company does not undertake to update any forward-‐looking statements that are incorporated by reference herein, except in accordance with applicable securi3es laws. For a descrip3on of material factors that could cause the Company’s actual results to differ materially from the forward-‐looking statements, please review the Company’s Prospectus, Annual Informa3on Form, and MD&A filed on www.sedar.com. The Qualified Person (QP) for projects in China and Peru is Andre Gauthier. The Qualified Person (QP) for projects in Brazil is Mike Bennell 1
- 3. TSX.V: LRA Company Snapshot Management & Directors • TSX Venture Exchange lis3ng in Canada since 2005. Miles Thompson, Chairman Opera3ons in Brazil, Peru, Chile and Colombia. Andre Gauthier, President • Interna3onally recognized Management and Explora3on Michael Bennell, VP Explora3on Team with a long-‐standing presence in South America. Chris MacIntyre, VP Corporate • Growing por]olio of explora3on projects with 19 David Miles, CFO partnerships poten3ally delivering over $80m in cash Kim Casswell, Corp Secretary payments and third-‐party funded explora3on. Noel Diaz, GM Peru Helio Ikeda, Manager Brazil • Well-‐funded with $6m in treasury and only 31m shares outstanding. Independent Directors Michael Winn Byron King Share Capital Price Shares % Total Fully Diluted Cash Adrian Calvert Shares Outstanding $1.35 30,499,687 83% 6,570,000 Chris Jones Warrants $1.85 4,683,175 11% 7,553,800 Op3ons $1.04 2,436,875 6% 2,542,350 Fully Diluted Shares 37,019,697 100% 16,666,150 3
- 4. TSX.V: LRA Prospect Generator Business Model Prospects – our business is acquiring mineral prospects and performing enough work on them to define targets and akract outside capital to fund on-‐going explora3on and development work Alliances – we conduct high-‐risk genera3ve work for specific commodi3es in specific regions, funded by partners, with any targets acquired then go into Joint Ventures Joint Ventures – we retain risk-‐free minority interests in the prospects we generate ourselves and through Alliances, shares in partner companies and/or royal3es in our projects, remaining exposed to the outstanding returns possible when a substan3al discovery is made Risk – this low-‐risk approach makes Lara a more sustainable business with limited downside risk; no individual project failure can kill the Company, while a discovery on any one of them could generate substan3al capital returns. 4
- 5. TSX.V: LRA Multi-Commodity Project Portfolio 5
- 6. TSX.V: LRA Option and Joint Venture Agreements Lara Residual Payment ExploraEon Shares Partner Project Commodity Country % US$m US$m m Years Aguia Resources Sergipe Potash Brazil 25% 0.10 1.50 10.0 2 Codelco Liberdade Copper Brazil 25% 3.00 4 Avanco Resources Conceicao Nickel, PGE Brazil 25% 1.50 3 Avenue Resources North Brazil Tin Brazil 25% 2.50 4 Focus Graphite Caninde Graphite Brazil 40% 7.00 0.50 5 Redzone Resources Lara + Tingo Este Copper Peru 45% 0.85 Network Explora3on Picha Copper, Silver Peru 25%+PFS 1.20 8.00 3.00 3 Malbex Resources Grace Gold Peru 25%+FS 1.70 11.50 6 Halston Explora3on Condoroma Copper Peru 25%+FS 1.80 10.50 6 Halston Explora3on Coporaque Copper Peru 25%+FS 1.65 10.00 6 Alta Resources Atenea Gold Peru 25%+FS 1.50 6.75 7 Totals 7.95 62.25 • 5 new agreements completed in H1-‐2012 despite the very challenging market condi3ons 6
- 7. TSX.V: LRA 3 Strategic Alliances Lara Residual Payment ExploraEon US Partner Commodity Countries % US$m $m/Year Years Antofagasta Copper Brazil 30% 3 0.6 3 Kiwanda Phosphate Peru, Chile, Colombia 30% 0.5 3 Kiwanda Coal Peru, Colombia 30% 0.6 3 Totals 3.00 1.7 • 3 Strategic Alliances completed in 2012 • Provide annual funding for genera3ve work, with projects developed then going into joint ventures where the partner will fund explora3on and development to earn a 70% interest • Low-‐risk way for Lara to leverage its experience and database to acquire new joint venture project interests 7
- 8. TSX.V: LRA Listed Interests and Royalty Agreements Partner Project Commodity Country Lara Interest Cash US$m Royalty Shares m Ver3cal Mineração Curionopolis Iron Brazil Royalty 0.80 0.75-‐1.50/t Horizonte Minerals Vila Oito Nickel Brazil Shares 8.5 Avenue Resources Sao Lourenco Tin Brazil Royalty 1.00 1.0% 3.0 Hochschild Lampa Gold Peru Royalty 2.0% CJL Capital Chocos Zinc-‐Lead Peru Royalty 0.45 2.0% Totals 2.25 • Most joint venture agreements result in a royalty interest if Lara elects not to fund its minority interest • Market currently puts high value on royal3es and Lara intends to grow this part of its por]olio in the coming years • The Ver3cal iron project is now permiked to begin small-‐scale produc3on and, subject comple3on of project finance, could be the first royalty to start paying out 8
- 9. TSX.V: LRA Six Drill Programs Already in 2012 • 2011 • 2012 – Lara (Cu, Mo) – Lara (Cu, Mo) -‐ done – Curionópolis (Cu, Au) – Curionópolis (Cu, Au) -‐ done – Curionópolis (Fe) – Curionópolis (Fe) -‐ done – Liberdade (Cu) – São Lourenço (Sn) -‐ done – Canabrava (VMS) – Conceição (Ni) – drilling – Vila Oito (Ni) – Liberdade (Cu) -‐ drilling • 5 out of 6 drill programs in 2011 were successful in intercep3ng significant mineraliza3on. The 4 programs completed so far in 2012 have all been similarly successful. 9
- 10. TSX.V: LRA Brazil Exploration Highlights • Codelco follow-‐up drilling at Liberdade copper. • Curionopolis high-‐grade copper target, >1% Cu breccias. • High-‐grade 3n veins intercepted at São Lourenço. • Potash JV with Aguia Resources • Growing pipeline of iron, copper and graphite prospects. • New copper Alliance with Antofagasta • 14 projects, 7 funded by JV 10
- 11. TSX.V: LRA Peru Exploration Highlights • Drilling substan3ally expanded footprint of the Lara Cu porphyry. • World class epithermal district outlined at Sami. • Grace and Corina gold targets drill-‐ ready. • Condoroma, Coporaque and Picha copper targets drill ready • 18 projects, 11 funded by partners 11
- 12. TSX.V: LRA Sami (Peru) – District-Scale Epithermal System • 20 high sulphida3on epithermal gold and porphyry style copper-‐gold targets inden3fied. • The large area of prospec3ve altera3on is indica3ve of district poten3al. • Pitusaja zone of strong silica altera3on with gold values. Similar outcrops nearby suggest mineraliza3on extends under cover for several kilometres. 12
- 13. TSX.V: LRA Liberdade (Brazil) – IOCG Discovery • Carajas -‐ Iron-‐oxide-‐ copper-‐gold district with several opera3ng mines. • Ar3sanal workings expose altera3on and copper mineraliza3on. • Codelco drillhole FTCD-‐01 intercepted 66m at 0.5% Cu from surface and 37m at 0.52% Cu from 139.5 metres down hole. • Follow-‐up drilling program on-‐going. 13
- 14. TSX.V: LRA Lara Copper (Peru) – Mid-Size Cu-Mo Porphyry • Drilling has materially expanded the mineraliza3on to 2km by 0.5km. • Low al3tude, close to infrastructure and the coast. • Purchase by Minsur of a 70% interest in the nearby Marcona -‐ Mina Justa deposit for $505 million establishes valua3on target benchmark 14
- 15. TSX.V: LRA Vertical Iron (Brazil) - Royalty Project • Iron forma3ons extend for over 10km within the property. • Pilot mining license and permivng in place for small-‐ scale produc3on. • Infill drilling, resource calcula3ons, mining planning and permivng being finalized for a full Mining License. • Ver3cal working on project finance currently. No defined 3meline at present, but expect ~$2m/year in royal3es to Lara once in produc3on. 15
- 16. TSX.V: LRA Curionopolis (Brazil) - High-Grade Copper • Carajas – IOCG district with several opera3ng mines. • Ar3sanal workings expose high-‐ grade copper veins. • Recent drill holes include: 53.8m at 9.59% Cu & 29.05m at 4.56% Cu 16
- 17. TSX.V: LRA De-Risking Exploration • People -‐ management has depth (10 geologists), is highly experienced technically, commercially and locally. Insiders are significant shareholders. • Poli3cs – ac3ve in mul3ple jurisdic3ons – Brazil, Peru, Chile and Colombia. • Finance – $6m treasury sufficient for 2013-‐14. The company expects addi3onal cash from por]olio sales, share sales and royal3es going forward. • Paper – approximately 31m shares outstanding and 37m fully diluted. • Partnerships – over $70m of explora3on to be poten3ally paid for by joint ventures and alliances with companies from Canada, UK, Australia and South America. • Commodi3es – diversified por]olio including Au, Ag, Sn, Cu, Ni, Fe, Zn, Pb, K, P and C (graphite) exposure. • Por]olio -‐ includes a number of significant discoveries and projects maturing towards resource defini3on and mining. • Payback – large diverse por]olio gives mul3ple chances of the kind of explora3on success that generates outstanding returns to shareholders, while the partnerships funding limits the downside risk.