Metals Exploration Plc · LSE:MTL
Metals Exploration — Investor Presentation (May 2006)
42 slides from Metals Exploration's investor presentation, May 20, 2006
Slide 1: Metals Exploration plc – Exploring & Developing Mineral Resources in the Philippines
METALS EXPLORATION PLC Exploring & Developing Mineral Resources in the Philippines Prepared by: Metals Exploration plc – 20 May 2006
Slide 2: Important Notice
IMPORTANT NOTICE THIS PRESENTION HAS NOT BEEN VERIFIED THIS PRESENTATION MAY BE SUBJECT TO CHANGE WITHOUT NOTICE AND AT THE COMPANY’S DISCRETION IT IS ONLY INTENDED FOR VIEWING ONLY BY THE RECIPIENT AND MAY NOT BE DISTRIBUTED WITHOUT THE WRITTEN CONSENT OF METALS EXPLORATION PLC PLEASE READ THE FOLL
Slide 3: Disclaimer
Disclaimer IMPORTANT INFORMATION • The Proposals in this document are preliminary. • This document contains forward looking statements and is neither a prospectus nor an offer nor an invitation to apply for securities. • The information contained in this document is for background purposes only and
Slide 4: Capital Structure
Capital Structure Shares Number Market Cap¹ Ordinary Fully Paid Shares 52,049,103 £20,429,273 Warrants (exercisable at @ 3.25p) 9,300,000 Warrants (exercisable at @ 8p) 996,708 Warrants (exercisable at @ 12p) 1,300,000 Options (exercisable at @ 12p) 1,200,000 Warrants (exercisable at @ 20p) 7,571,72
Slide 5: Share Performance 2005-06
Share Performance – 2005-06 Announce Inferred Resource Runruno Announce first drill results Runruno (11 May 06) (16 Dec 05) First drillhole completed & announce Option to acquire additional 15% of Runruno (23 Nov 05) Purchase option to acquire 70% Runruno (02 Feb 05) Start Drilling Runruno Placement
Slide 6: Prepared by: Metals Exploration plc – 20 May 2006
Prepared by: Metals Exploration plc – 20 May 2006
Slide 7: Asia-Pacific Region
Asia – Pacific Region
Slide 8: Philippines Mining History
Philippines Mining History • Located on the Pacific Rim of Fire – extensively mineralised. History of gold mining predating Spanish colonisation in 16th Century. • Since 1900, history of profitable mining of Copper, Gold, Nickel, Chromium, Limestone, Coal & Gas • Exploration at significantly reduced
Slide 9: Foreign Investment
Foreign Investment Since 1968, Significant Foreign Investment in Mining has taken place only in the last ten years • Shell Philippines Exploration BV (et al JV) – $4.5B Malampaya Deep Water Gas-To- Power Project, Palawan • Sumitomo Metal Mining (et al JV) – $180M HPAL Plant – Coral Bay Nickel Lateri
Slide 10: Philippine Projects
Philippine Projects • RUNRUNO 70% MTL (up to 85%) (Au, Mo, Ag) • MASAPELID 16% MTL (Au, Cu) • PURAY 100% MTL (Cu, Zn, Au, Ag) • WORLD-WIDE 100% MTL (Cu, Au, Mo)
Slide 11: Runruno Project
Runruno Project k bese a! 'Mines Au) Cu- “he o rk t big: my t ~~ 3, ae Bios POWIDE CusAu J a ' ei 4p) RUNRUNO Au-Mo fos: , ey bas Didipio Cu-Au
Slide 12: Runruno Project
Runruno Project Exploration Permit (3,090 Ha) Runruno Resource Area Area of frame = 8km x 8km Prepared by: Metals Exploration plc – 20 May 2006
Slide 13: Runruno Project – Geology
Runruno Project – Geology Runruno Volcanic Complex Geology Prepared by: Metals Exploration plc – 20 May 2006
Slide 14: Flow Dome Complexes
Flow Dome Complexes Runruno Flow Dome Complex Nueva Cripple Creek Flow Dome Complex Vizcaya, Philippines Colorado, USA (~23Moz Au production – 330,000 oz/annum) (note: diameter of both flow dome complexes is similar ~ 4km ) Prepared by: Metals Exploration plc – 20 May 2006
Slide 15: Runruno Project – Alteration
Runruno Project – Alteration Runruno Volcanic Complex Alteration Prepared by: Metals Exploration plc – 20 May 2006
Slide 16: Runruno Project
Runruno Project • Drilling commenced November 2005 • 25 diamond drillholes completed up to 20 May 2006 (~4,200m) • JORC Inferred Mineral Resource • 23 Mt @ 2.3 g/t Au & 0.07% Mo Area of frame = 2.1km x 2.8km Prepared by: Metals Exploration plc – 20 May 2006
Slide 17: Runruno Project
Runruno Project Tayab small scale mining area Field Camp Barangay Runruno Panoramic View – Runruno deposit – looking southeast
Slide 18: Runruno – Exploration History
Runruno – Exploration History • A large, shallow-dipping (~20°), Gold + Molybdenum + Silver deposit hosted in volcanic flows and tuffs; • Largely explored during the 1970’s (Fil-Am) – a total of approximately 78 drill holes (~8,700m) and 3 exploration adits and drives (~800m) – limited additional dr
Slide 19: Runruno – Resource Definition
Runruno – Resource Definition Geologists reviewing rehabilitation of drill site (MXD1) In the background, drill sites MXD5 and MXD2 line up with MXD1
Slide 20: Runruno Deposit – 3D model
Runruno Deposit – 3D model Metals Ex drillholes (Prefixed MXD) denoted by red numbers Yellow lines = drillholes with pending assay results Black lines = drillholes with assay results Oblique view of Runruno resource area showiing topographic relief and underlying mineralisation modelled in 3D Prepar
Slide 21: Runruno Deposit – 3D model
Runruno Deposit – 3D model Drillhole (MXD series) N Gold–Molybdenum Satellite Image resource outcropping in creeks 3D Deposit Model Plan View Runruno Deposit Gold–Molybdenum resource Area underlying the surface 0 0.5km This is a 3D graphic image that rotates, demonstrating topographic relief and the
Slide 22: Runruno - Outcrop
Runruno - Outcrop ls n ne tu r’s i ne m cal e s al l Sm Shallow dipping (~20º), Au+Mo+Ag mineralised hangingwall zone exposed at Malilibeg Creek, southern part of the deposit. Rock-chip sampling across this zone returned results ranging between 5.5 – 8.5 g/t Au & 0.14 – 0.29% Mo Prepared by: Metals
Slide 23: Runruno – Metallurgy
Runruno – Metallurgy Preliminary metallurgical test-work on drill-core carried out by Placer in 2000-2001 indicates: • ~ 45% of gold particle size >150 micron » anticipate high initial gold recovery using a conventional gravity circuit • ~ 80% gold recovered using conventional cyanide bottle roll an
Slide 24: Runruno – Small Scale Miners
Runruno – Small Scale Miners Rod Mills Sluice Boxes Tayab Area – Small Scale Miners’ processing plants – rod mills & sluice boxes Gold recovered by gravity method only – no chemicals used!
Slide 25: Community Development
Community Development Runruno Community – Information Dissemination Program The Company has developed a harmonious working relationship with the local communities
Slide 26: Runruno – Resources
Runruno – Resources Previous resource estimate (1980) 13.4Mt @ 1.4 g/t Au (~0.6Moz contained gold) August 2005: Exploration proposed to define resource up to ~60 Mt @ 2.5g/t Au; 0.05% Mo (+Ag) May 2006: Interim JORC – Inferred Resource Estimate of 23 Mt @ 2.3g/t Au; 0.07% Mo Contained metal = 1.7 Mo
Slide 27: Development Budget: 2006-08
Development Budget: 2006-08 EXPENDITURE 2006-07 2007-08 Comm unity Community Admin Develop't Develop't Resource Feasibility Admin Definition Studies Exploration Exploration Resource Feasibility Definition Studies Resource Definition → Resource Definition → Resource/Reserve Definition Scoping Studies
Slide 28: Molybdenum – Consumption
Molybdenum – Consumption Tool & High Speed Steels Low Alloy 10% Foundry Steels Steels 30% 10% 20% Chemical & Mo Metal 30% Stainless Steels & Super Alloys Prepared by: Metals Exploration plc – 20 May 2006
Slide 29: Philippine Projects
Philippine Projects • RUNRUNO (Au, Mo, Ag) • MASAPELID (Au, Cu) • PURAY (Cu, Zn, Au, Ag) • WORLD-WIDE (Cu, Au, Mo)
Slide 30: Masapelid Project
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Slide 31: Masapelid – Exploration History
Masapelid – Exploration History • Granted MPSA (1,480 Ha) • Historically mined during Spanish times • 1930s – Layong & No 6 Veins produced ~20,670t @ 15g/t gold to 90 metres depth • Soil sampling during the early 1990s highlighted several anomalous gold in soil zones • During 1991-94, MGB drilled on
Slide 32: Masapelid Island
Masapelid Island Masapelid Island – eastern coastline near Layong Prominent alteration zone, low relief and sparse vegetation
Slide 33: Masapelid – Pre-War Mining
Masapelid – Pre-War Mining Remains of the ruins of the foundations of the pre-WWII processing mill. Ore processed from the Layong and No 6 Veins (1933 – 1940)
Slide 34: Masapelid – Mineralisation
Masapelid – Mineralisation Rock sample from Layong Vein area showing cockade textured quartz veining. 24g/t Au 154g/t Ag 7.86% Pb 6.81% Zn 0.55% Cu Prepared by: Metals Exploration plc – 20 May 2006
Slide 35: Philippine Projects
Philippine Projects • RUNRUNO (Au, Mo, Ag) • MASAPELID (Au, Cu) • PURAY (Cu, Zn, Au, Ag) • WORLD-WIDE (Cu, Au, Mo)
Slide 36: Puray Project
Corregidor island ; s Santa Rosa’ )
Slide 37: Puray – VMS Deposit
Puray – VMS Deposit • Exploration Permit Application (1,590 Ha) lodged at MGB in July 2005 and is currently being processed • Mineralisation is of “Kuroko”- style Polymetallic VMS • Volcanic-associated Massive Sulphide (VMS) deposits – constitutes one of the world’s significant sources of copper, zi
Slide 38: Puray – Exploration History
Puray – Exploration History • Previously explored and mined since the 1930s, albeit limited up until 1970 • 1970s –geophysics, trenching, tunneling, underground mining, and limited drilling were carried out (data not available) • 1970s – 700 tonnes of bornite (copper sulphide) ore was mined from Tun
Slide 39: Puray – VMS mineralisation
Puray – VMS mineralisation Stratabound “Kuroko”- style VMS mineralisation outcrop dipping moderately to the east (into the hillside on the right)
Slide 40: Puray - Outcrop
Puray - Outcrop MTL geologist Rizaldy Palomaria & consulting geologist Brian Lueck pictured inspecting outcrop of sulphide-rich bedded sediments
Slide 41: Puray – Massive Sulphide
Puray – Massive Sulphide Rock sample obtained from creek draining the outcropping sulphide mineralisation (previous photo). Samples contains abundant sphalerite (zinc sulphide): 8% Cu 3% Zn
Slide 42: Management Team
Management Team Steven M Smith (47) Chartered Accountant (B Com) ACA ATII. Executive Chairman Experienced Public Company Director. Extensive experience in Corporate Secretary corporate management, finance and taxation in the UK. Chief Financial Officer Gary R Powell (48) Geologist (BAppSc-Geology) M
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