+ All Categories
Home > Documents > ANR Presentation LK

ANR Presentation LK

Date post: 21-Apr-2015
Category:
Upload: rakesh-vyas
View: 63 times
Download: 4 times
Share this document with a friend
27
Investor Presentation December 2011 Capturing value in the Arabian Nubian Shield
Transcript
Page 1: ANR Presentation LK

Investor Presentation

December 2011 Capturing value in the Arabian Nubian Shield

Page 2: ANR Presentation LK

The content of this promotion has not been approved by an authorised person within the meaning of the Financial Services and Markets Act 2000. Reliance on this promotion for the purpose of engaging in any investment activity may expose an individual to a significant risk of losing all of the property or other assets invested. This communication is exempt from the restriction, contained in section 21 of the Financial Services and Markets Act 2000, on the communication of invitations or inducements to engage in investment activity on the grounds that it is made to a limited number of parties to whom it is lawful to distribute a financial promotion to under the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 ("the Financial Promotion Order"). In particular this promotion is being distributed only to and is directed at persons who are reasonably believed to fall within one of the following categories:- (i) have professional experience in matters relating to investments, being persons who fall within Article 19(5) of the Financial Promotion Order; or (ii) are high net worth companies or unincorporated associations falling within Article 49 of the Financial Promotion Order; or (iii) certified high net worth individuals within the meaning of Article 48 of the Financial Promotion Order, being someone who has either an annual income of at least £100,000, or net assets to the value of not less than £250,000; and has signed, within the period of 12 months ending with the day on which the communication is made, a statement in the prescribed form; or (iv) self-certified sophisticated investors within the meaning of Article 50A of the Financial Promotion Order, being someone who meets at least one of requirements set out in Article 50A and has signed, within the period of 12 months ending with the day on which the communication is made, a statement in the prescribed form; or (v) persons to whom this presentation may otherwise be lawfully communicated whether inside or outside the United Kingdom, without approval by an authorised person. Persons not falling within (i), (ii), (iii), (iv) or (v) above should not rely or act upon this presentation, and no transaction in relation to the investment mentioned in this presentation will be entered into or made available to any such person. This presentation should not be distributed to persons with an address in the United States, Canada, Australia, the Republic of Ireland or Japan or in any other country outside the United Kingdom where such distribution may lead to a breach of any law or regulatory requirement. Some statements in this presentation contain forward looking information. These statements address future events and conditions and, as such, involve inherent risk and uncertainties. Actual realised returns on unrealised investments may differ materially from the returns indicated in this presentation. The information in this presentation is believed to be correct but cannot be guaranteed. Opinions constitute our judgement as of this date and are subject to change without warning. Recipients should not treat this presentation as advice in relation to legal, taxation or investment matters and should take steps to ensure that the risks are fully and completely understood. Recipients are recommended to consult their own professional advisers in relation to any such issues. This presentation is for informational and discussion purposes only and does not constitute an offer to sell or a solicitation of an offer to purchase any security, nor may it or any part of it, nor the fact of its distribution, form the basis of, or be relied upon in connection with, any contract. Past performance is not necessarily indicative of future performance and the value of investments may fall as well as rise. The income from them may fluctuate and is not guaranteed. Investors may not recover the amount invested. The level and basis of taxation can change. The information contained in this presentation must be treated in a confidential manner and may not be reproduced, used or disclosed, in whole or in part.

Disclaimer

1

Page 3: ANR Presentation LK

Group overview

Arabian Nubian Resources Limited (ANR) is a private Guernsey-registered resources company focused on the Arabian Nubian Shield (ANS)

ANR’s strategy is to establish a strong gold and base metals (VMS) footprint within the Arabian Nubian Shield

Experienced management team with over 5 years relationship in Eritrea (early entrance) and strong contacts in the Gulf region

Currently active in Eritrea (through it’s wholly-owned subsidiary London Africa Limited which holds the Akordat Exploration Licence) and planning to expand into Sudan and the Kingdom of Saudi Arabia within the next 6 – 9 months where a number of opportunities have been identified

Same geology and types of mineral deposits within the ANS, i.e. transferable exploration knowledge from Eritrea to Sudan to the Kingdom of Saudi Arabia

Close proximity of Eritrea / Sudan / Kingdom of Saudi Arabia for servicing projects

2

Page 4: ANR Presentation LK

Company Structure

3

26.7 million share outstanding

£1.815m raised to date at 12.5p / share

Currently seeking to raise up to £10m @ 20p/share to develop the company’s assets targeting a maiden inferred resource of 1Moz Au on it’s Eritrean properties

Shareholder > 3% Number %

Management 10,300,000 38.48%

Chalice Gold Mines Limited 3,000,000 11.21%

Westward Investments Limited 2,400,000 8.97%

Passport Materials Master Fund II 2,400,000 8.97%

Richmond Capital LLP 2,000,000 7.47%

Ovid Production Corp 1,600,000 5.98%

Forest Nominees Limited 1,200,000 4.48%

London Africa (BVI) Limited 1,000,000 3.74%

Azure Trust Company Limited 1,000,000 3.74%

Page 5: ANR Presentation LK

The Management

4

Geologist BSc (Hons) MSc DIC MBA

Ex-Royal School of Mines

Co-founder of Mantle Diamonds Limited

25 years industry experience in gold, base metals and other minerals

5 year relationship in Eritrea

Extensive network to high net worth individuals and financial institutions

Co-founder of Mantle Diamonds Limited

Long history of mining in family

Group Financial Controller for Mantle Diamonds Ltd

Ex-BHP Billiton (iron ore in Australia) and ex-Oxus Gold

Exploration geologist with ~8 years post-PhD experience in Au, PGE, Ni, Cu, Co Fe and Coal

Ex-Jubilee Platinum and Erin Mineral Resources

Lester Kemp Rupert Baring Nathan Adamson Dr Richard Belcher Founding Director Founding Director Finance Director Exploration Manager

Page 6: ANR Presentation LK

Previous use of funds

5

Year 1 (2009 – 2010) - Eritrea Prospecting licence phase

Office established in Asmara

Team established with vehicles & equipment

ASTER image anomaly generation & field visit to verify targets. High hit rate (> 80%) of ASTER targets with mineralised zones on the ground

Reconnaissance sampling (including rock chip sampling and soil sampling) generating a series of possible anomalies

Completion of minimum spend required for conversion to Exploration Licence

Year 1 of 3 (2010 onwards) - Eritrea Exploration licence phase

Detailed mapping and soil sampling completed on advanced targets

Gravity survey completed at Gerger

$ 580,000 VTEM helicopter-borne survey over approximately 80% of licence area (Magnetics + Radiometrics +/- EM)

Airborne data processed by Southern Geoscience Consultants (SGC) in Perth (Australia) and multiple anomalies generated

Now ready to start drilling….

Page 7: ANR Presentation LK

Why the Arabian Nubian Shield (ANS)?

The ANS is still relatively unexplored and has the potential to host significant precious and base metal deposits

Many of the volcanic massive sulphides (VMS) deposits have gold-rich oxide covers e.g. Hassai Mine in Sudan and Bisha in Eritrea

The Arabian Nubian Shield is attracting a lot of interest by majors

6

Major gold mines in the Nubian Shield

Sukari (Egypt) 14.5Moz Au

Hassai (Sudan) 2Moz Au recovered

Bisha (Eritrea) 1Moz Au

Zara (Eritrea) * 760,000 oz Au

Major gold mines in the Arabian Shield

Mahd adh Dahd (KSA)

6Moz Au

Sukhaybarat (KSA) 700,000 oz Au

Above and below - Source: Chalice Gold Mines Ltd

* 2013

Page 8: ANR Presentation LK

Eritrea

Favourable Mining Law

10% free carried interest by the state in any mining operation + option to buy further 30% at market rate

Over 18 different resources companies active in the country

1st modern mine in production – Nevsun’s Bisha (TSX:NSU)

Expected to produce 1.14 million ounces of gold, 11.9 million ounces of silver, 821 million pounds of copper, and over one billion pounds of zinc

2nd mine due to start production in 2013 – Chalice’s Zara Gold Mine (ASX:CHN)

Increasing interest in the country by the majors

Potential for gold rich VMS deposits, orogenic gold deposits and industrial minerals e.g. potash

Great opportunities for world class low cost, high grade gold, copper and copper – zinc deposits

7

Page 9: ANR Presentation LK

Akordat Exploration Licence map

8

Bisha Mine (in production) Approximately 80km west

Zara Gold Mine (2013) Approximately 80km west

Exploration Licence covers 1169km2

3 hours by paved road from the capital (Asmara)

Major rivers cross cut the licence area

Exploration camps established in Akordat and Himbol

Nevsun’s Bisha Mine is 80 km away

Chalice’s Zara gold mine project is to the northeast

Thani Anglo Ashanti has a licence contiguous with our western licence boundary

10 km

Page 10: ANR Presentation LK

Prospect summary and map

9

Simplified Geological Map

Prospect name: Metals: Stage: Mineral deposit type

Taninay4 Au Drill ready Orogenic Au

Gerger3 Au + Cu Drill ready Au - Cu Skarn or VMS

Kofot3 Au + Cu Near term drill project Disseminated Cu - Au

Huruf1 Au + Ag Near term drill project Orogenic Au

Naddet1 Au + Ag Near term drill project Orogenic Au

Yakare East3 Au + Cu + Zn + Pb Early stage VMS

Melih Cu + Au Early stage VMS

Ber Noray1 Au Early stage Orogenic Au

Tablet4 Au Early stage Orogenic Au

Adinjera2 Au Early stage Orogenic Au

Engerne2 Au Early stage Orogenic Au

Garsay Kettin2 Au Early stage Orogenic Au

1 Hawagu Au district 2 Engerne Au district 3 Himbol base metal trend 4 Tanenay Au trend

Page 11: ANR Presentation LK

Drill target 1: Taninay orogenic gold prospect

10

Looking southwestwards towards the outcropping vein system at Taninay – artisanal workers (lower right)

Page 12: ANR Presentation LK

Taninay orogenic gold prospect

11

Looking north

Looking southeastwards

Page 13: ANR Presentation LK

Taninay summary

Outcropping quartz vein system striking NNW for >2 km and up to 40m wide in places

Numerous grab samples collected including one at 223 g/t Au

Considerable historic artisanal workings

Geological & structural mapping completed at 1:2,000 scale completed

Soil sampling completed on a 200m x 200m grid completed

Channel sampling completed over ~60% vein completed

Drill targets generated

3000m scout drilling scheduled to start late-November

2 holes per drill pad to test grade and depth continuity

If early results are encouraging, drilling will continue

12

Page 14: ANR Presentation LK

Taninay soil and channel sample values

13

= drill pad & drill direction

= priority zone ranging from ( ) high to ( ) low based on preliminary rock chip and channel sampling

2km strike of the vein will be tested by preliminary ~3000m scout drilling

maximum drill depth 150m depth - HQ Core

Drilling scheduled to start late November / early December

If initial drilling results are encouraging, drilling will continue with the aim of building up an initial maiden inferred resource

Gold in soils (ppb) map

Page 15: ANR Presentation LK

Drill Target 2: Gerger VMS / Au-Cu prospect

14

Gerger

….Overview of Kofot Cu-Au-Fe prospect in Eritrea (west side of ridge) looking south to Gerger, with the Yakare river to the west.

Page 16: ANR Presentation LK

Results at Gerger

Gerger exploration history

Outcropping gossan identified

23 Grab samples collected – highest reported was 4% Cu + 4.5 g/t Au

Mapping followed at 1:2,000 scale

Soil sampling (425 samples) on a 200m x 200m grid completed

Coincident copper and gold in soils anomaly

Ground gravity survey subsequently completed on a 200m x 200m grid

Gravity anomaly >0.5Mgal over 1.5km coincident with soils anomaly

VTEM anomalies generated correlating with the above anomalies and thereby de-risking prospect ready for drilling

These coincident anomalies are typical of other VMS deposits e.g. Hassai and Bisha

Drill targets generated – drilling late Q4 2011 or early Q1 2012 Man portable rig in country

Water supply work and infrastructure for drilling underway

15

Page 17: ANR Presentation LK

Early helicopter-borne VTEM results

16

Gerger Discovery gossan at Gerger (above)

Malachite staining on Gerger outcrop (below)

Page 18: ANR Presentation LK

Gerger – conductors and analyses

17

Page 19: ANR Presentation LK

Gerger – drill program

Proposed drill program at Gerger Satellite images DTM showing conductors

18

Gerger

Page 20: ANR Presentation LK

Yakare East..an extension of Gerger prospect?

19

Initial field visit has identified strong broad hematization of the rocks with a possible gossan or magnetite exhalative

Further field visit / sampling will follow

Strongest VTEM conductor from the airborne survey. Modelling by SGC of the VTEM data underway

Largest (most extensive) VTEM anomaly generated

Alteration zone

2.5km

VTEM targets

= VTEM targets – for ground checking

Gerger

Page 21: ANR Presentation LK

Near Term Drill target: Huruf gold prospect

Exploration summary

The Huruf target is in a zone of regional structural flexure and intersection

Unlike the NE hosted cross veins, most of the NNW vein systems are anomalous in gold

All alluvial gold workings are from streams that drain from the VTEM-anomalous NNW structure

Frequency of gold anomaly and gold grade increases towards Huruf target. 3 out of the 4 rock chip samples collected are anomalous in gold.

Most proximal rock chip sample taken is described as ‘quartz vein with abundant vugs and hematite with dense thick ribbons after sulphides. It has up to 9.7g/t Au with a repeat 11.77 g/t Au, 9.9g/t Ag, 3.49% Fe

20

Page 22: ANR Presentation LK

Near Term Drill target: Naddet gold prospect

Exploration summary

South of Melih targets

Limited sampling along the Qtz vein

Large VTEM anomaly

Sulphides found in hand specimen.

Coincides with lithological boundary

Boundary of granite and volcanic unit

Grab sample of 10g/t Au

>2km strike length

21

Page 23: ANR Presentation LK

Sudan…within 6 - 9 months

Large footprint within the ANS

Great potential for gold-rich VMS systems e.g. Hassai and orogenic gold systems

Many licences have already been granted (mainly to locals) + a few foreign companies e.g. Managem (Morocco), Toro Gold (Guernsey) and others

Some licences due to be dropped due to inactivity on the licence – opportunity for direct licence application

Opportunity for JV’s with local Sudanese licence holders

State ownership between 20 – 27%

7% royalty

Currently in discussions with 3 separate groups as well as assessing the potential for a direct licence application

Hassai Mine visit (above and below)

Page 24: ANR Presentation LK

Kingdom of Saudi Arabia…within 6 – 9 months

Arabian Shield Area: 575,000km2

1,000 ancient gold and copper deposits

5,000 historic occurrences, many not yet subject to systematic exploration

Very low historical exploration expenditures

High potential for world class precious and base metal deposits

Dominated by Ma’aden.

Recent entrance by Barrick which acquired Equinox (which in turn had acquired Citadel Resources for $1.2BN)

In discussions with a potential Saudi partner who has 3 exploration licences

23

Source: Ma’aden

Page 25: ANR Presentation LK

Use of proceeds – 18 months working capital

24

ERITREA regional exploration

USD 1,000,000

ERITREA ~ 20,000m drilling

USD 6,000,000

SUDAN VTEM & Drilling USD 3,500,000

KINGDOM OF SAUDI ARABIA

VTEM & Drilling USD 3,500,000

Purchase of Chalice's shareholding

USD 1,000,000

Administration, legals and overheads USD 1,000,000

ERITREA - regional exploration USD 1,000,000

ERITREA - 20,000m drilling USD 6,000,000

SUDAN - VTEM & Drilling USD 3,500,000

KINGDOM OF SAUDI ARABIA - VTEM & Drilling USD 3,500,000

Purchase of Chalice's shares USD 1,000,000

Administration, legals and overheads USD 1,000,000

Total = USD 16,000,000

Page 26: ANR Presentation LK

London Office Suite 1A, Princes House 38 Jermyn Street London SW1Y 6DN Tel: +44 (0)20 7025 7042 Fax: +44 (0)20 7287 8028 E-mail: [email protected]

Eritrea Office London Africa (Eritrea) Ltd Rm. 403, SA. Building, Warsai St Asmara, ERITREA PO BOX 1145

Tel: +291(1) 11 11 65

Contact Details

25

Page 27: ANR Presentation LK

Appendix 1 - Group Structure

26

(Guernsey)

BVI Company BVI Company

Sudanese local company Saudi Local company

Own licences (100%) in Sudan or

partially through a JV with a local

partner/s who have their won licenses

Own licences (100%) in Saudi Arabia or

partially through a JV with a local

partner/s who have their own licences

London Africa (UK)

Exploration licence in

Eritrea

ERITREA SUDAN SAUDI ARABIA

100%

100% 100%

100%

Present structure

Proposed new structure


Recommended