Southern Arc Minerals Inc. Class A · TSXV:SA.H
Southern Arc Minerals Inc. Class A — Shareholder Meeting (December 2014)
22 slides from Southern Arc Minerals Inc. Class A's shareholder meeting presentation, Dec 5, 2014
Slide 1: Annual General Meeting Shareholder Update
December 5, 2014 Annual General Meeting Shareholder Update TSX-V: SA SouthernArcMinerals.com OTCQX: SOACF
Slide 2: Cautionary Notes
Cautionary Notes Forward-looking Statements Some of the statements contained in this presentation are forward-looking statements, such as estimates and statements that describe future plans, objectives or goals, including words to the effect that Southern Arc Minerals Inc. implies a stated condition
Slide 3: Southern Arc Share Structure
Southern Arc Share Structure Shares Options Fully Diluted 109,214,510 5,685,000 114,899,510 • Directors, management and insiders control ~20% • 52-week trading range $0.03 – $0.095 • Average trading volume (Q3-2014): ~90,000 shares/day • Working capital: ~$1.5 million (November 28, 2014) • No debt 3
Slide 4: Achievements During 2014
Achievements During 2014 Indonesia • West Lombok Project – Reduced costs while searching for a funding or farm-in partner – Executed Memorandum of Agreement with Indonesian company to advance the project with artisanal mining venture • East Elang Project – Retained no-cost joint venture with Vale –
Slide 5: Taliwang Project
Taliwang Project • Sold to private Indonesian group for US$1.75 million plus 5% net smelter royalty payable to Southern Arc – US$1 million received in cash – US$750,000 to be paid from 40% of gross gold sales revenue – Purchaser can buy back 3% of the NSR for US$3 million • Indonesian group successf
Slide 6: Taliwang Project
Taliwang Project Preliminary ore stockpile at Balat processing plant Selective grade control 6
Slide 7: Taliwang Project
Taliwang Project Manual unloading of ore material next to hopper Manual unloading of ore material next to water treatment plant 7
Slide 8: Taliwang Project
Taliwang Project Ball mill – 3.0m x 1.2m 200 mesh (75 micron) output Thickener tank and four leach tanks 8
Slide 9: West Lombok Project
West Lombok Project West Lombok Property Inferred Mineral Resource Estimate Effective Date June 29, 2013 Grade Contained Metal Prospect Tonnage Gold Silver Copper Gold Silver Copper (tonnes) (g/t) (g/t) (%) (oz) (oz) (lb) Epithermal Style Raja 3,898,000 2.63 14.0 - 329,700 1,821,000 - Bising 6,908,0
Slide 10: West Lombok Project – 2014
West Lombok Project – 2014 • Actively sought funding or farm-in partner with a number of objectives: – Secure the property to maintain ability to explore and develop both the epithermal gold and porphyry copper-gold deposits (IUP expiring in January 2016) – Advance this promising property toward pro
Slide 11: Advancing West Lombok in 2015
Advancing West Lombok in 2015 • PT GSE will fund completion of the EIS and FS studies and conversion of IUP • PT GSE will fund and develop “artisanal” scale mining using a similar model to that successfully undertaken at Taliwang • PT GSE will assume the majority of costs associated with West Lombok
Slide 12: East Elang Project
East Elang Project Southern Arc / Vale Joint Venture Agreement • Adjacent to Newmont’s Elang deposit (25 M oz Au/16 B lb Cu) 1 • Structure and alteration suggest that Elang mineralized trend may continue onto Southern Arc’s East Elang property • Vale still very supportive and funding holding costs,
Slide 13: Investment in Eagle Hill Exploration
Investment in Eagle Hill Exploration Investment • Eagle Hill owns the high-grade Windfall Lake Gold Project in Quebec, Canada • Gold grades put Windfall Lake in top 10% worldwide of resource-stage gold projects • March 2014 resource estimate1 for Windfall Lake (completed by SRK Canada): – Indicated
Slide 14: Achievements Since August 2013
Achievements Since August 2013 Expanded and upgraded the deposit • Completed 28,232 m fall 2013 drill program, confirming potential to expand the deposit • Updated mineral resource estimate, increased indicated resource by 38% 1 • Completed 3,200 m winter 2014 drill program, expanding Zone 27 • Comp
Slide 15: Windfall Lake Compared to Canadian Gold Projects with Similar Geology
Windfall Lake Compared to Canadian Gold Projects with Similar Geology 10 Windfall Lake gold grades place it in the 9 Rubicon Minerals top 10% (by grade) of resource definition gold projects worldwide 8 Eagle Hill Exploration 7 Integra Gold Sabina Gold & Silver Gold Grade (g/t) 6 San Gold Auriga Gold
Slide 16: Windfall Lake Property Boundary 12,400 Hectares
Windfall Lake Property Boundary 12,400 Hectares Some of the claims have residual NSRs. See NSRs on Windfall Lake Property in Appendix. 16
Slide 17: Metallurgy Shows 95.7% Gold Recovery
Metallurgy Shows 95.7% Gold Recovery • Dominant pyrite sulphide system • Gold found around grains of pyrite, in the cracks of pyrite, or as free grains • Preliminary metallurgical tests show 95.7%* gold recovery using simple gravity, flotation circuit, and cyanidation of flotation concentrate 10% In
Slide 18: Conclusions
Conclusions Taliwang • Project advanced to production by new owner • Final purchase payment and NSR commencing in 2015 West Lombok • Memorandum of Agreement signed with key partner deliverables: – Approval of EIS and FS for small-scale mining venture and 20-year exploitation IUP – Artisanal miner pr
Slide 19: Appendix
Southern Arc MINERALS INC
Slide 20: Windfall Lake Gold Project Resource Estimate
Windfall Lake Gold Project Resource Estimate By SRK Consulting (Canada), effective date March 3, 2014 Resource Grade Gold Tonnes Category (g/t) (ounces) Indicated 2,375,000 9.75 744,000 Inferred 3,084,000 7.37 731,000 1. Estimate includes drilling data up to December 20, 2013. 2. Technical report fi
Slide 21: Vale Joint Venture Agreement
Vale Joint Venture Agreement Vale International S.A. Option & Joint Venture Agreement Southern Arc and Vale are exploring the East Elang project (adjacent to Newmont’s Elang deposit) under an option and joint venture agreement whereby Vale can earn a 75% interest (Southern Arc retaining 25%) by fund
Slide 22: Contact Us
Contact Us Canadian Office Rhylin Bailie Vice President Communications & Investor Relations NA Toll-free: 1-888-676-5241 Tel: 604-676-5241 [email protected] Indonesian Office Mike Andrews President & Chief Operating Officer 62-21-7988-8612 SouthernArcMinerals.com TSX-V: SA, OTCQX: SOACF 2
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