Abacus Mining & Exploration Corp. · TSXV:AME
Abacus Mining & Exploration — Investor Presentation (September 2010)
37 slides from Abacus Mining & Exploration's investor presentation, September 2010
Slide 1: Uniquely positioned for growth
Uniquely positioned for growth September 2010 Abacus Mining and Exploration Corporation | TSXV:AME | www.amemining.com 1
Slide 2: Forward Looking Information
Forward Looking Information This presentation includes certain statements that may be deemed "forward looking statements". All statements in this release, other than statements of historical facts, that address events or developments that Abacus Mining and Exploration Corporation (the "Company") exp
Slide 3: Who we are
Who we are Abacus is an exploration and mine development company focused on the identification, acquisition, development and operation of high quality base and precious metals projects. Abacus Mining and Exploration Corporation | TSXV:AME | www.amemining.com 3
Slide 4: Capital Structure
Capital Structure Share Price CDN $0.20 Common Shares 171.3 M Options 10.1 M Warrants (C$0.30) 19.5 M FD Shares 200.9 M FD Market Cap $40 M Long Term Debt nil Working Capital CDN $4.5 M Major shareholders: Teck 8.00% KGHM 8.75% Management 10-15% Abacus Mining and Exploration Corporation | TSXV:AME |
Slide 5: Board of Directors
Board of Directors • Tom McKeever – Executive Chairman, Director Over 40 years experience in senior management in the mining and metal trading industry with such companies as AMAX Inc., MG plc. Tom was Chairman of Sempra Metals until his retirement in 2006. • James D. Excell – President & CEO, Direc
Slide 6: The Development Team
The Development Team • Jim Excell – President & CEO • Andrew Pooler – Executive V.P. and Chief Operating Officer Over 25 years experience in mining operations and development including 6 years with Pan American Silver as Senior V.P. Mine Operations (in charge of 6 mines world wide) prior to joining
Slide 7: Ajax Project Highlights
Ajax Project Highlights Rapidly transitioning from a junior exploration company to a mid‐tier producer and beyond • Large disseminated copper and gold deposit 503 mt containing 2.9 billion lbs copper and 2.6 million ozs gold • 60,000 tpd mill feed producing approximately 110 million lbs of copper an
Slide 8: Afton - Ajax Location Map
Afton - Ajax Location Map Mining friendly province • 3.5 hours from Vancouver British Columbia • 5 kms from Kamloops • Water • Low cost power • Immediate freeway, rail Prince George and port access Williams Lake • Airport • Experienced work force Abacus Mining and Exploration Corporation | TSXV:AME
Slide 9: Past Production in the Afton Camp
9 Past Production in the Afton Camp Initial production from the Afton Pit (Teck Cominco) from 1978 – 1987 • 30 million Tonnes grading 1% Copper, 0.6 g/t gold Production from the Ajax Deposits (Teck Cominco) from 1989 – 1997 • 14 million Tonnes grading 0.46% Copper, 0.34 g/t gold Abacus Mining and Ex
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Slide 11: Afton-Ajax Project Overview
Afton-Ajax Project Overview Excellent Infrastructure Water line Railway • Acquired initial land package Power line from Teck‐Cominco in 2002 Mill shop and buildings • Total land package of over Tailings 8,000 hectares Pond • 3 past producing areas Haul • Completed more than Road 170,000 metres of di
Slide 12: Ajax Development
12 Ajax Development • First mineral inventory on Ajax West completed in 2007 Ajax Ajax East East • Earn‐in agreement completed with New Gold Inc. October 2009 Ajax West • 86,000 metres of drilling Ajax West completed showed mineral continuity between Ajax West and Ajax East • Completed Ajax 43‐101 c
Slide 13: Abacus Mining and Exploration Corporation | TSXV:AME | www.amemining.com
Abacus Mining and Exploration Corporation | TSXV:AME | www.amemining.com 13
Slide 14: Abacus Mining and Exploration Corporation | TSXV:AME | www.amemining.com
Abacus Mining and Exploration Corporation | TSXV:AME | www.amemining.com 14
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Slide 16: Typical Sections of Ajax East and West
Typical Sections of Ajax East and West N Ajax East Perspective Ajax West Abacus Mining and Exploration Corporation | TSXV:AME | www.amemining.com 16
Slide 17: Ajax East Cross-Section
Ajax East Cross-Section CuEq (%) Topo NSR1 L-G NSR4 L-G Phase 2 Model Abacus Mining and Exploration Corporation | TSXV:AME | www.amemining.com 17
Slide 18: Near term value drivers: Afton-Ajax East Expansion Potential
Near term value drivers Afton‐Ajax East Expansion Potential Leemac Fault 08‐13 371m @ 0.32% Cu, 0.25 g/t Au Incl. 192m @ 0.44% Cu, 0.33 g/t Au Ajax East Proposed drill area Ajax West East extension Abacus Mining and Exploration Corporation | TSXV:AME | www.amemining.com 18
Slide 19: Near term value drivers: Additional Future Potential
Near term value drivers Additional Future Potential DM and Rainbow Zones • Within 3 to 5 km of the proposed processing facilities • Excellent potential to expand both zones Zone Cutoff % Tonnes Copper Gold Copper Gold Copper Mt (%) (g/t) (lbs) (oz) DM 0.20 44.3 0.29 0.143 283.2 M 203,000 Rainbow 0.1
Slide 20: Project Economics Overview and Timeline
Project Economics Overview and Timeline Afton‐Ajax Project Abacus Mining and Exploration Corporation | TSXV:AME | www.amemining.com 20
Slide 21: Project Consultants
Project Consultants • AMEC • Block model • Peer review mining costs and mine plans • In‐pit crushing and conveying, waste crushing and stacking • Wardrop Engineering ‐ Primary QP • Mechanical and Civil • Infrastructure • Plant operating costs • BGC Engineering • Geotechnical pit slope stability • Gr
Slide 22: Preliminary Economic Assessment
Preliminary Economic Assessment Total tonnes mined (000’s tonnes) 1,344,670 Ore tonnes (000’s tonnes) 502,206 Waste tonnes (000’s tonnes) 842,464 Strip ratio 1.67:1 Mine life 23 years Copper grade (%) 0.268 Gold grade (gpt) 0.171 Copper Eq. grade (%)* 0.362 Contained copper (000’s lbs) 2,968,036 Con
Slide 23: Capital Cost Estimate
Capital Cost Estimate (All figures in US$ millions) Direct Works Initial Capital Sustaining Site Civil $17 Mining $49 $204 Primary Crushing $20 Crushed Ore Stockpile $12 Concentrator $169 Tailings $37 $109 Site Services and Utilities $6 Ancillary Buildings $17 Plant Mobile Fleet $4 Off Site Infrastr
Slide 24: Operational cost estimates
Operational cost estimates Cost Per Pound of Copper Gold Price $700 $800 $900 $1000 ($/ounce) Cash cost ($/pound of $1.17 $1.08 $0.99 $0.90 Copper) Abacus Mining and Exploration Corporation | TSXV:AME | www.amemining.com 24
Slide 25: Metal price sensitivities
Metal price sensitivities 1,500.0 1,300.0 1,100.0 NPV (8%) Millions 900.0 700.0 500.0 300.0 100.0 2.00 2.10 2.20 2.30 2.40 2.50 2.60 2.70 2.80 2.90 3.00 Copper Prices - $/lb Abacus Mining and Exploration Corporation | TSXV:AME | www.amemining.com 25
Slide 26: Post-PEA Improvements
Post-PEA Improvements • Drilled 38 holes in the east extension • In-pit crushing and conveying, waste crushing/stacking • High pressure role crushers replaced SAG mill • Thickened/paste tailings deposition Abacus Mining and Exploration Corporation | TSXV:AME | www.amemining.com 26
Slide 27: General Plant Process Layout
General Plant Process Layout 27
Slide 28: Updated General site layout
Updated General site layout Abacus Mining and Exploration Corporation | TSXV:AME | www.amemining.com 28
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Slide 30: Abacus KGHM Joint Venture
Abacus KGHM Joint Venture Afton‐Ajax Project Formation of a Joint Venture to fast track the development of a mine at the Afton‐Ajax Camp by combining Abacus’ interests in the camp with the financial backing and operational expertise of a leading global copper and precious metals producer Abacus Mini
Slide 31: Investment Agreement
Investment Agreement Highlights Immediate C$4.5 million private placement into Abacus by KGHM, to fully fund Abacus’ corporate costs through BFS and mine construction Capital funding commitment by KGHM of US$37 million for 51% of the JV – $30 million to fully fund and fast track the Project thro
Slide 32: About KGHM
About KGHM KGHM is the ninth largest producer of copper in the world – Annual copper production of over 500,000 tonnes (~3% of global production) – 3rd largest silver producer, 1,100 tonnes per annum (~7% of global production) A fully integrated producer of high quality copper – Cathodes, wire r
Slide 33: Significant Benefits for Abacus Shareholders
Significant Benefits for Abacus Shareholders Partnership with a major global copper producer – Industry leading technical and operational experience – Significant financial resources Fully funded to BFS and provisions for the entire Project’s capex – Significant reduction of Project risk – Elimi
Slide 34: Investment Agreement
Investment Agreement Overview C$4.5 million Private Placement into Abacus by KGHM closed 15 million shares of Abacus at a price of C$0.30 per share (8.75%) US$37 million cash payment to the Joint Venture for 51% Initial Investment Completion of the Bankable Feasibility Study (BFS) Explorat
Slide 35: Value to Abacus Shareholders
Value to Abacus Shareholders 20% production of Afton‐Ajax Mine (significant and definitive long term cash flow) Exploration/development opportunities in Afton Camp (near term value creator) Participation with KGHM in other projects elsewhere (near term value creator) As to the 20% interest in
Slide 36: Taking Abacus to a New Level
Taking Abacus to a New Level Transformational Joint Venture Accelerating the Afton‐Ajax Project •Strategic partnership with one of the •Fully funded, “full speed” feasibility study largest global copper companies of the Afton‐Ajax project •Uniquely positions Abacus amongst the •Project financing for
Slide 37: TSXV:AME
TSXV:AME Donna Yoshimatsu Director of Investor Relations Phone:(604) 682‐0301 (416) 722‐2456 Email: [email protected] Abacus Mining and Exploration Corporation | TSXV:AME | www.amemining.com 37
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