Altoro Metals Limited · ASX:ARO
Altoro Metals — Variscan Mines — Non-Deal Roadshow (November 2022)
31 slides from Altoro Metals's roadshow presentation, November 2022
Slide 1: Resourcing the energy transition revolution
Resourcing the energy transition revolution Investor Presentation November 2022
Slide 2: Disclaimer & Competent Person Statement
DISCLAIMER & COMPETENT PERSON STATEMENT This document is for information purposes only. It is not a prospectus, disclosure document or offering document under Australian law or under any other law and does not constitute an offer or invitation to apply for securities. In particular, this presentatio
Slide 3: Clear strategy to supply critical metals
CLEAR STRATEGY TO SUPPLY CRITICAL METALS | ASX:VAR 3
Slide 4: Exploring 100% owned high grade zinc projects
EXPLORING 100% OWNED HIGH GRADE ZINC PROJECTS | ASX:VAR 4
Slide 5: MVT deposits – favourable characteristics
MVT DEPOSITS – FAVOURABLE CHARACTERISTICS REOCÍN MINE: 62MT @ 8.7% Zn + 1.0% Pb Flat-lying, tabular orebodies Good lateral continuity Multiple horizons Occur in clusters / ore fields Sizeable resources Grade can be very high Comparatively simple geology Simple mineralogy Simple min
Slide 6: Spain continues to have an active mining industry
SPAIN CONTINUES TO HAVE AN ACTIVE MINING INDUSTRY | ASX:VAR Source: IGME, DW 6
Slide 7: Novales-Udias Project: Cantabria, Northern Spain
NOVALES-UDIAS PROJECT: CANTABRIA, NORTHERN SPAIN | ASX:VAR 7
Slide 8: Novales-Udias project: substantial contiguous holding
NOVALES-UDIAS PROJECT : SUBSTANTIAL CONTIGUOUS HOLDING MINING CONCESSIONS ALREADY GRANTED AT SAN JOSE MINE EXPLORATION LICENCES RENEWED OVER BUENAHORA 55.8km2 Granted Exploration Concession, initial 3yr term, extendable by 3yrs 12.5km2 Granted Mining Concessions 18yrs to run 1k m | ASX:VAR See ASX A
Slide 9: 9km Novales trend delineated + 3km sub-parallel trend
9KM NOVALES TREND DELINEATED + 3KM SUB-PARALLEL TREND | ASX:VAR See ASX Announcement 6 Apr 2021 9
Slide 10: Novales trend has good continuity on strike
NOVALES TREND HAS GOOD CONTINUITY ON STRIKE | ASX:VAR See ASX Announcements: 4 August 2021, 15 June 2021, 25 September 2020, 26 August 2020, 10 1 April 2020, 16 March 2020, 3 March 2020, 3 February 2020
Slide 11: Trends are located on the Reocín Formation
TRENDS ARE LOCATED ON THE REOCÍN FORMATION | ASX:VAR 11
Slide 12: Delivering exploration success & development progress
DELIVERING EXPLORATION SUCCESS & DEVELOPMENT PROGRESS DDH NOV113: 33.0m @ 4.1% Zn + 0.1% Pb Continued underground drilling success Follow up & Extension to Discovery on the La Caseta Trend (1): DDH NOVDD113: 33.0m @ 4.1% Zn + 0.1% Pb DDH NOVDD108: 12.0m @ 9.8% Zn + 0.7% Pb DDH NOVDDT037: 9
Slide 13: Underground drilling - continued success
UNDERGROUND DRILLING - CONTINUED SUCCESS Near-surface step out targets – Eloisa Mine Central Zone – Los Caracoles 8.0m @ 5.16% Zn 6.0m @ 5.02% Zn 6.0m @ 5.41% Zn 5.0m @ 6.00% Zn Central Zone – 168 Trend 8.0m @ 20.17% Zn 5.0m @ 24.92% Zn 9.0m @ 8.73% Zn 3.0m @ 19.20% Zn 2.8m @ 17.86
Slide 14: Underground drilling – continued success
UNDERGROUND DRILLING – CONTINUED SUCCESS | ASX:VAR See ASX Announcement 15 March & 25 August 2022 14
Slide 15: Continued underground drilling success over multiple horizons
CONTINUED UNDERGROUND DRILLING SUCCESS OVER MULTIPLE HORIZONS | ASX:VAR See ASX Announcement 25 August 2022 15
Slide 16: Seeking resources in the vicinity of the San Jose Mine
SEEKING RESOURCES IN THE VICINITY OF THE SAN JOSE MINE | ASX:VAR 16
Slide 17: Multiple new, extensive targets uncovered at Buenahora
MULTIPLE NEW, EXTENSIVE TARGETS UNCOVERED AT BUENAHORA 12 lines for 17.6 line kms Multiple new, extensive and intense chargeable bodies detected Anomalies identified are near surface (<100m depth) with potential for additional targets at depth due to the stratabound, vertically-stacked nature
Slide 18: Sizeable, high-grade JORC Exploration Target delivered
SIZEABLE, HIGH-GRADE JORC EXPLORATION TARGET DELIVERED Range Tonnage (Mt) Zinc (%) Lead (%) Lower 16.5 6.3 1.1 Estimate Upper 34.0 9.1 1.8 Estimate The potential quantity and grade of the Exploration Target is conceptual in nature. There has been insufficient exploration to estimate a Mineral Resour
Slide 19: Surface drilling over Buenahora license area nearly complete
SURFACE DRILLING OVER BUENAHORA LICENSE AREA NEARLY COMPLETE | ASX:VAR 19
Slide 20: Targets also tested by U/G drilling & channel sampling
TARGETS ALSO TESTED BY U/G DRILLING & CHANNEL SAMPLING | ASX:VAR 20
Slide 21: Workplan to deliver strategy & valuation catalysts
WORKPLAN TO DELIVER STRATEGY & VALUATION CATALYSTS Work-streams Objectives & Outputs Aug 22 Sept 22 Oct 22 Nov 22 Dec 22 Report Assay Results Infill San Jose Mine Mineralisation Discovery Phase 2 Surface Drilling Potential Buenahora Exploration Licence Discovery Phase 1 Underground Drilling Potentia
Slide 22: San Jose Mine – local infrastructure is in place
SAN JOSE MINE – LOCAL INFRASTRUCTURE IS IN PLACE ROAD ACCESS OFFICE CORE SHACK ELECTRIC GRID CONNECTION WORKSHOP MINE ENTRANCE ROAD ACCESS Potential water supply from small river <100m from mine site Water treatment site <100m from mine site | ASX:VAR 22
Slide 23: San Jose Mine – brownfield asset advantageous to production
SAN JOSE MINE – BROWNFIELD ASSET ADVANTAGEOUS TO PRODUCTION Greenfield mining developments Brownfield mining developments Large Mineral Resource required to Smaller Mineral Resource required as justify high CAPEX and support CAPEX is lower and high-grade economic returns deposit OFFICE High CAPEX as
Slide 24: Zinc - base metals' price indices
ZINC - BASE METALS' PRICE INDICES Index (Mar-21 = 100) 270 Zinc 220 Copper Lead Nickel Aluminium 170 120 70 Mar-21 Apr-21 May-21 Jun-21 Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21 Jan-22 Feb-22 Mar-22 Apr-22 May-22 Jun-22 Jul-22 Aug-22 Sep-22 Oct-22 Nov-22 | ASX:VAR Source: Business Insider.com; The C
Slide 25: Price environment offers 2x-4x upside to historical operations
PRICE ENVIRONMENT OFFERS 2x-4x UPSIDE TO HISTORICAL OPERATIONS SAN JOSE CLOSED REOCÍN CLOSED | ASX:VAR Source: Trading Economics 25
Slide 26: Zinc – key role in energy transition & move to net-zero
ZINC – KEY ROLE IN ENERGY TRANSITION & MOVE TO NET-ZERO Growing Demand for Zinc Zinc’s role in Renewable Energy Production Variscan has been “Zinc usage from solar energy sector accepted as a member expected to double by 2040” of the EBA250 | ASX:VAR Source: Wood Mackenzie, CRU, IRENA, Visual Capita
Slide 27: Zinc – key role in energy transition & move to net-zero
ZINC – KEY ROLE IN ENERGY TRANSITION & MOVE TO NET-ZERO Critical materials for transition to low carbon Forecast wind & solar investment expenditure economy | ASX:VAR Source: McKinsey; Schroders 27
Slide 28: Zinc – price performance drivers & events
ZINC – PRICE PERFORMANCE DRIVERS & EVENTS | ASX:VAR Source: S&P Global Market Intelligence; 28
Slide 29: Zinc inventories – LME, SHFE zinc stocks approach exhaustion
ZINC INVENTORIES – LME, SHFE ZINC STOCKS APPROACH EXHAUSTION | ASX:VAR Source: S&P Global Market Intelligence; 29
Slide 30: Variscan Mines Limited (ASX:VAR) contact
Variscan Mines Limited (ASX:VAR) Stewart Dickson Managing Director & CEO +44 7799694195 +61 8 93169100 [email protected] Investor Relations The Capital Network Julia Maguire +61 2 8999 3699 [email protected] | ASX:VAR 30 www.variscan.com.au
Slide 31: Appendix 1 – Sources of Data for JORC Exploration Target Comparisons
Appendix 1 – Sources of Data for JORC Exploration Target Comparisons Company Project References Rumble https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02436675- Earaheedy Resources 6A1056335?access_token=83ff96335c2d45a094df02a206a39ff4 Ironbark Citronen https://cdn-a