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Poly-Metal Exploration Projects in Mongolia 9.2013

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Poly-Metal Exploration Projects in Mongolia 9.2013
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Page 1: Poly-Metal Exploration Projects in Mongolia 9.2013

Poly-Metal Exploration Projects in Mongolia

9.2013

Page 2: Poly-Metal Exploration Projects in Mongolia 9.2013

Disclaimer The document which has been prepared by ACE&T Capital comprises the slides for a presentation to

potential investors concerning the Company.

This document does not constitute or form part of any offer or invitations to sell or issue, or any solicitation

of any offer to purchase or subscribe for, any shares in the Company nor shall any part of it nor the fact of

its distribution form the basis of, or be relied on in connection with, any contract or investment decision

relating thereto.

Any investment into the Company should be made solely on the basis of the personal judgment in due

course. No reliance may be placed for any purposes whatsoever on the information contained in this

document or any other material discussed at the presentation, or on its completeness, accuracy or fairness.

The information in this document or any other material discussed at the presentation is subject to

verification, completion and change.

This document and its contents are confidential and may not be reproduced, redistributed or passed on,

directly or indirectly, to any other person or published, in whole or in part, for any purpose. This document

is being distributed only to, and this presentation is being communicated only to, persons who have

experience in matters relating to professional investment. No other person should act or rely on this

document or any of its contents on this presentation for making any whatsoever investment decisions.

Page 3: Poly-Metal Exploration Projects in Mongolia 9.2013

Contents

1. Purpose

2. General Introduction

3. Corporate Overview & Management Team

4. Exploration Projects Introduction – Technical

Location of Projects

Macro/Regional Geology

Micro/Project Geology

5. Mineralization & Resources Estimation (Preliminary)

6. Future Business Plan

7. Reasons to Invest in Hunnu Global Mining Corporation

Page 4: Poly-Metal Exploration Projects in Mongolia 9.2013

Purpose

This PPT aims at introduction of Hunnu Global Mining Corporation’s (as “HGMC”) 3 poly-

metal exploration projects in Dornod Aimag, North-Eastern part of Mongolia, which is

regarded as one of the most potential resources regions of Mongolia.

HGMC plans to raise USD4 million to complete the exploration works in order to get

certain areas in Tsoonogtiin Shil and Gandan Shil under mining permits in the next 12

months, and would like to explore co-operation with potential investors who are

interested in poly-metal projects.

Page 5: Poly-Metal Exploration Projects in Mongolia 9.2013

General Introduction

HGMC owns 3 poly-metal exploration permits :

1) Bor Tolgoi (12703X) Area: 119 km²

2) Gandan Shil (12704X) Area: 224 km² Total Area: 570 km²

3) Tsoonogtiin Shil (12705X) Area: 227 km²

Located at Dornod Province, Mongolia, in the middle of the cross section between China, Russia and

Mongolia and at the center of Derbugan’s international metallogenic belt (Duoemuote mine area)

with high grade poly-metal mineralization (Ag, Au, Cu, Mo, Pb, Zn, Sb, U...).

Within the Derbugan metallogenic belt, there are the famous volcanic sedimentary basin and the

uranium mineralization domains in Dornod, covering about 2,000 km² [refer “Uranium Geology”

(p415-417)] where presence of numerous ( > 40 within 400,000km2) large-scale operating and/or

large poly-metal and uranium deposits. A few major operating ones are neigboring to us

The region is and our exploration permits are having good resources potential, mature mining

environment with facilities and proximity to transport lines to 3 major markets – China, Korea and

Japan.

Page 6: Poly-Metal Exploration Projects in Mongolia 9.2013

Corporate Overview-Current

100%

Mr. Chinbat 100% Wealth LLC

12703X

QCC Mining Corp 32%

Khunnu Metal LLC 100%

Treasure LLC 12704X

Great Ord LLC 18% Imperial LLC 12705X

50%

Page 7: Poly-Metal Exploration Projects in Mongolia 9.2013

Corporate Overview-Final(In Process)

QCC Mining Corp

100%

Mr. Chinbat 50% 100% Wealth LLC 12703X

Hunnu Global Mining Corp

(BVI Company) 100% Khunnu Metal LLC 100% Treasure LLC

12704X

Imperial LLC 12705X

50%

NOTE: already applied with the Mongolian government to transfer shareholders

interest into Hunnu Global

Page 8: Poly-Metal Exploration Projects in Mongolia 9.2013

Management Team

• Owner of Erdes Mining LLC, over 20 years mining & energy operation and investment experience in Mongolia. Erdes Mining is one of the 5 principal committee members of Mongolia Mining Association, and Erdes Mining / Chinbat has been representing the Mongolia Mining Association to be the Advisory member to the Presidential Mining Committee and the Ministry of Mining & Land. Member of Mongolian Petroleum Association and currently holding one of the largest crude oil exploration permit in Mongolia.

Luvsandash Chinbat

Chairman

• Nearly 30 years of mine design, planning and engineering experiences. 7 years of overseas experience in Sweden and Canada. Former Director of ENFI Guangxi Branch and Project Director of Jinchuan Nickel & Poly-Metal Mine. Experiences in designing, building and restructuring mining projects in China, and developing cuntries.

Cai HongXia

CEO

• MBA, CMA. Experienced in finance. Quentin Tsang

CFO

• PhD in Economics. Banking and finance professional. Last 4 years specializing in mining operation and governmental dealings. Ex-Joint CEO of Olon Ovoot Gold Mine (Mongolia), advisor to Erdes Mining, Dadi Mining and Sinobo Mining.

Chudanjii Sharav

COO

• Ex-banker and corporate manager, nearly 10 years experience in mining investment and consulting including 4 years in Mongolia, former CEO of Olon Ovoot Gold Mine and GPL in Mongolia.

Edwin Chan

Page 9: Poly-Metal Exploration Projects in Mongolia 9.2013

• More than 50 years of non-ferrous metal mining research, engineering, operations and construction experience. Led and edited various China’s mining design manual and standard. Expert in North Eastern Region of Mongolia geology and mining. Chief Technical

Advisor of Daxinganling Mining Group (SOE) and Evaluator of Tsav Mine (Mongolia).

Prof. Guo Chunlin

Chief Mining Engineer

and Planner

• Former Chief Geologist of Inner Mongolia Chifeng Geological and Mineral Exploration Development Institute. Expert in Eastern Region of Mongolia and Heilongjiang geology. Experienced in Mongolian geology especially in North Eastern region. Former chief

geologist of Tsav and 2 other mines in Dornod.

Prof. Wang Zixiang

Chief Geologist

• More than 40 years experience in mining economics and evaluation. Former director of ENFI department of mining economics and evaluation. Experienced in evaluating mining

projects in Mongolia.

Prof. Li Qiaoxue

Mining Economist

• B.Sc. in Geology, Mongolian University of Science and Technology. 10 years of geological

experience in Mongolia.

Pro. Tang Jigang

Geologist

Vandandorj Zemee

Geologist

Professor, Chief Mineralogy and Petrology Expert of China

Technical Team

Page 10: Poly-Metal Exploration Projects in Mongolia 9.2013

Map1: Location of Projects

Gandan Shil 224km2 Tsoonogtiin

Shil 227km2

Bor Tolgoi 119km2

Map 1: Country Map of Mongolia & Location of 3 EP

Note: (1) About 50 km to Chinese Border with custom "KHAVIRGA“

(2)15 km to the CHOIBAISAN - MANZHOULI RAILWAY

Page 11: Poly-Metal Exploration Projects in Mongolia 9.2013

Ⅱ. Macro/Regional Geology

(a) Dergunbel – Daxinganling Poly-Metal Belt (refer to map 2,3,4,5)

(b) Surrounding Operating Poly-Metal & Uranium Mines (refer to map 6,7)

Page 12: Poly-Metal Exploration Projects in Mongolia 9.2013

Map 2: • Geotectonic Areal Division, Distribution of Super-large and Large Deposits and Mineralization Zonation in Western

Slope of Daxinganling in the Border of China, Russian & Mongolia; • The zone covers 2000 km2 having over 40+ confirmed and operating poly-metal resources deposits in 400,000 km2

(12704X)

(12705X)

(12703X)

Page 13: Poly-Metal Exploration Projects in Mongolia 9.2013

Map3:REGIONAL GEOLOGY Mongolia NE locates in between the active Erliandawa continent shelf and the static Xiwuerte continental shelf, it is an active faulting belt and is one of the most famous geology belt having concentration of poly-metal mineral resources and porphyry type copper/molybdenum-lead-zinc-gold-uranium. It holds the largest known uranium deposit of Mongolia.

Page 14: Poly-Metal Exploration Projects in Mongolia 9.2013

Map4:Regional Geology And Minerals The exploration permits are located at the South-eastern of the China-Mongolia Erguna Cu-Mo-Zn-Au-Ag belt, which is

a continuation of China’s Erguna porphyry Cu-Mo poly-metal belt. Tsoonogtiin Shil and Gandan Shil are on the 2 main

fault lines of the belt. Immediate neighboring our exploration permits have many operating poly-metal mines.

3 EPs

Page 15: Poly-Metal Exploration Projects in Mongolia 9.2013

AduChuluun

•  Open-­­pit •  mining S=40000sq

Tsoonogtiin Shil (12705X)

227km2

Bortolgoi (12703X)

119km2

Ulaan

Madai Dornod

Gurvanbula Tsav Poly

• EAR-­­1: 6500t

• Grade: 0.17% (U3O8) • RAR:10000t

• RAR:29000t • EAR-­­1:4000t • Grade:0.28% (U)

• XinXin • Deposit:6800万t • Zn: 2% • Pb: 1.2% • Au: 0.21g/t • Ag: 53 g/t

Gandan Shil (12704X)

224km2

Lamchuluut

Dormente

•  Deposit:4957.1万t •  Produc=on Level:4000t/d •  Grade:

Mo 0.1% MMo 51588t

Cu 0.147% MCu 72789t

•  Deposit: 1403.96万t

•  Cu 1.157%, Mo 0.03%

•  Ag 15 g/t, Au 0.3g/t

•  MCu: 16.16万t, MMo: 4414t

•  MAu 4192kg, MAg 211.03t

• Deposit:900万t • Zn: 2.5% • Pb: 4.1% • Au: 0.25g/t • Ag: 155-­­288 g/t

Map 5: Nearby Operating Mines & Deposits

Page 16: Poly-Metal Exploration Projects in Mongolia 9.2013

Ⅲ. Micro/Project Geology(1)

A. Historical Geology Works – Russians & Mongolians (refer to map 6)

B. Latest Geological Works – Done by owner (refer to 7、8、9)

Pre 2012

Purpose: To have a preliminary understanding on the macro geology of

our 3 EPs, and to find coal in Bor Tolgei

Works: ☆ Prior to 2012, the Mongolian partner had done mapping and

survey works on the 3 EPs to 1:100,000, and seismic/IP on Bor

Tolgei

☆ Map 7 – Bor Tolgei seismic – brown coal

Results: Identified a clear large ore-body of brown coal (3,000 – 4,500

kcal) in the western part of Bor Tolgei EP which can be extracted

with Open-cut mining method

Page 17: Poly-Metal Exploration Projects in Mongolia 9.2013

Map6:Russian Geology Map Gandan lies on the same basin of volcanic quaternary sediments which houses and neighbors to our EP the

famous uranium & poly-metal mines: Mardi, Dornod, Gurvenbulag, Ulaan Tsoonogtiin neighbors Tsav, Lam chuluut, Dormente, and 2 other confirmed poly-metal mines [Bor Tolgei neighbors with the famous Aduchuluun brown coal mine [2 main fault lines are running through our Gandan and Tsoonogtiin EPs

Page 18: Poly-Metal Exploration Projects in Mongolia 9.2013
Page 19: Poly-Metal Exploration Projects in Mongolia 9.2013

Ⅲ. Micro/Project Geology(2) From 2012 April

Stage1: Exploration Work (April – December 2012)

Purpose: to identify potential uranium & poly-metal areas

Works:

I. Mapping and Surveying, Trenching and Sampling, Geochemistry & IP –

13 lines covering 12.1 km, and Gamma

Map 8 – Gandan – Gamma / Geochemistry – uranium

Results:

I. Mapping and Survey done for the whole Gandan (1:50,000); seismic

45km ; Tsoonogtiin (1:50,000)

II. identified a continuous uranium ore-body in the western part of Gandan

having an inferred resources of 4147 tons;

III. identified 2 anomalies of poly-metal by geochemistry in Gandan

IV. Rock chips in trenches and IP in Tsoonogtiin indicated potential poly-

metals of Au, Cu, Mo, Zn, Pb in north and central part.

Page 20: Poly-Metal Exploration Projects in Mongolia 9.2013

Gamma

Surveyed

27km2

Gamma

surveyed::18km2

图 8(1): Gamma & Geochemistry Surveyed Area - Gandan

Geochemical Z1 Au-Ag-Mo-Sb-Cu-Zn-Pb Poly-metal :9km2

Geochemical Z2 Mo-Pb-As-Sb-Cu-Zn Poly-metal :11km2

Page 21: Poly-Metal Exploration Projects in Mongolia 9.2013

图 8(2): Radio-active Areas

Page 22: Poly-Metal Exploration Projects in Mongolia 9.2013
Page 23: Poly-Metal Exploration Projects in Mongolia 9.2013

Ⅲ. Micro/Project Geology(3) Stage2: Exploration Work (April till now)

Purpose: To further investigate the poly-metal in Tsoonogtiin Shil and Gandan

Works:

I. Mapping and Survey (1:10,000 / 1:5,000) -95 km2 for Tsoonogtiin / 45 km2 for

Gandan; geophysics (magnetic survey, Dipole-dipole) and geo-chemistry in 3 anomaly

areas totaling 18.5 km2 in Tsoonogtiin.

II. Map 9 - geophysics, geochemistry, trenching, rock chip assaying - anomalies combined

results

III. Map 10 – potential iron ore & poly-metal ore-body from geophysics and geochemistry,

rock chip assaying

Results:

I. confirmed U in Gandan and the potential to increase the resources

II. 3 anomaly areas of poly-metal identified; one is a silica based poly-metal; one is an

iron ore & poly-metal and one is a poly-metal of cu/mo

III. The iron ore & poly-metal anomaly has a high grade iron out-cropping and its IP

anomaly dipped down to over 500m; the geology company opines that it is a large

iron-ore / poly-metal ore-body;

IV. the silica based poly-metal anomaly strengthens towards and in south, which has great

potential to have a large porphyry poly-metal deposit.

Stage3: Drilling (work-in-progress)

Purpose: to confirm the iron-ore and poly-metal resources by drilling

Works: initially 1000m+10%(refer to Map11)

Page 24: Poly-Metal Exploration Projects in Mongolia 9.2013
Page 25: Poly-Metal Exploration Projects in Mongolia 9.2013

Map 11:Drilling (work-in-progress)

Page 26: Poly-Metal Exploration Projects in Mongolia 9.2013

Mineralization & Resources Estimation (Preliminary)1

According to the Russian and Mongolia geology reports and recent geological

works done by the owner:

Gandan Shil:

I. Russian estimated the resources in the EP from 10,000 – 28,000 tons

II. 2012 geological works confirmed that in 1.45km2 area of western part of

the EP, with depth up to 70 m, there are inferred resources of 8.294

million tons ores @ 0.05%, amounting 4147 tons of U

III. The potential for U may be increased if further exploration works to cover

a larger areas and a deeper depth, as the neighboring mines of Mardi,

Dornod, Gurvanbulag and even Ulaan found U down to 400 meters.

Page 27: Poly-Metal Exploration Projects in Mongolia 9.2013

Mineralization & Resources Estimation (Preliminary)2

Bor Tolgei:

I. Field trips found brown out-cropping

II. Seismic and IP works identified that a large brown coal ore-body mixed

with extensive coal shale in the western part of the EP

III. The coal type is similar to the large Aduchuluun brown coal field in the

south;

IV. Apart from the brown coal and coal shale, the top white clay layer of the

brown coal has in big demand from China, which has a market price of

RMB800 per tons, which the company is testing and studying on it

V. The NE part of the EP is neighboring the famous poly-metal Tsav mine of

the similar geology, and has potential for Pb and Zn.

Page 28: Poly-Metal Exploration Projects in Mongolia 9.2013

Mineralization & Resources Estimation (Preliminary)3

Tsoonogtiin Shil:

I. Geological works identified 4 main anomaly targets, out of which 3 are

along the big fault line contact zones inside the EP;

II. Northern target is a Au/Cu/Mo target with rock sample from trenches of

showing Au grade 0.5% - 4.25%;

III. Central East – Iron Ore Poly-metal target has high grade magnetic iron-

ore @ 35% out-cropping, the ore-body has an estimated size of 30+m

(wide) x 1,000 m (long) x 500 m (deep), which is quite sizeable and

potential

IV. Central Western silica target - strong anomaly for poly-metal of Au-Ag-

Cu-Mo-Pb-Zn-As, the anomaly zone has a size of 200+ m width x 1,000+

m x 500+ m

Page 29: Poly-Metal Exploration Projects in Mongolia 9.2013

Mineralization & Resources Estimation (Preliminary)4

Conclusion:

I. Gandan Shil has confirmed U resources, and according to the

geological information should have potential for open-cut resources of

10,000 – 25,000 tons as suggested by the old Russian information

II. Bor Tolgei has confirmed having potential open-cut brown coal

resources, and a very preliminary estimation between 100 – 200

mtons; yet the focus should be on the coal shale and the white top

clay which have much higher market price and can be mined more

profitably;

III. Tsoonogtiin Shil has confirmed iron-ore resources and potential for

poly-metal. After drilling, the shape of the ore-bodies, the estimated

resources will be known.

Page 30: Poly-Metal Exploration Projects in Mongolia 9.2013

Future Business Plan--Planned Geological Works(1)

HGMC has 3 EPs, and the focus will be on following priority:

1. Tsoonogtiin Shil – iron-ore & poly-metal (Au-Cu-Mo-Pb-Zn)

>> 2013 End September – Mid November

Target 1 – silica zone : to carry out 3 drill holes to verify the

mineral resources and the ore-body

Target 2 – iron-ore & poly-metal zone : to carry out 2-3 holes to

verify iron-ore and other mineral resources and the ore-body

>> 2014 April – November

Plans to add a few more drill holes in the iron-ore & poly-metal

zone (Target 2) in order to get the resources to a small measured

and indicated reserves and a big portion in inferred resources

Plans to obtain a mining permit for a certain area with the

completion of a Prefeasibility Study

Plans to continue further detailed exploration works on the Target

1, 3 and 5 with an objective to find out the poly-metal ore-bodies

and resources

Page 31: Poly-Metal Exploration Projects in Mongolia 9.2013

Gandan Shil – Uranium & poly-metal

>> 2014 April – November

Plans to carry out drillings in the 1.45 km2 site to confirm the uranium

resources into measured, indicated and inferred reserves and

resources status, and at the same time to carry out IP and GAMMA to

find more Uranium anomalies and resources

Plans to transfer the 1.45 km2 site from EP into Mining Permit with the

completion of a Prefeasibility Study

Bor Tolgei – brown coal & Pb & Zn

>> 2014 April – November

Plans to drill a few drill holes for a small area to confirm the brown

coal resources into indicated and inferred reserves and resources

status, and to apply the transfer of the small area from EP to Mining

Permit with the completion of a Pre-feasibility study.

Future Business Plan--Planned Geological Works(2)

Page 32: Poly-Metal Exploration Projects in Mongolia 9.2013

Future Business Plan--Fund Raising Work

The owner plans to raise funds to complete the 2014 geological

works and will commence discussions with potential investors.

After obtaining the mining permits, the owner can either talk

with major PRC state-owned mining corporations for co-

operation or to raise further funds from the capital market to

develop the mines.

Page 33: Poly-Metal Exploration Projects in Mongolia 9.2013

Future Business Plan -- Budgeting Iitems Tsoontiin Gandan Bor Tolgei

Target USD Target USD Target USD

Trenching 1000m³ 50,000 1000m³ 50,000 1000m³ 50,000

Mapping & Survey 1:5,000 - Target 4 target3 50,000 1:5,000 - 1.5 km2 50,000 1:5,000 - 5 km2 50,000

Sampling 200Kg 100,000 100kg 50,000 100kg 50,000

Core Drilling Target 2 - 3000m 300,000 1.4km2 - 4000m 400,000 5 km2 - 1,000m 100,000

15 holes 20 holes 10 holes

Target 1 - 1,000m 100,000

Target 3 - 1,000m 100,000

Assaying 100,000 75,000 25,000

Mobilization costs 100,000 50,000 50,000

Prefesibility Stdy 50,000 50,000 50,000

Mining Permit Application 50,000 50,000 50,000

Sub-Total 1,000,000 775,000 425,000 2,200,000

Corporate Expenses USD50,000 / month 600,000

ITR Report 100,000 100,000

Page 34: Poly-Metal Exploration Projects in Mongolia 9.2013

Investment & Return   pursuant to the new exploration program, the funding of USD 4 million is able to obtain: (1) a mining permit within 1.45 km2 in Gandan Shil; (2) a mining permit in Target 2 of Tsoonogtiin Shil, and detailed exploration in Target 1, 3 and 5, (3) a mining permit of a few m2 in Bor Tolgei   the mining assets may be suitable to be considered for IPO in early 2014 Resources, Geology & Mining  confirmed huge potential poly-metal in the project areas  Gandan Shil: Au, Ag, Cu, Mo, Zn, Pb, Sb, U (4,147 tons @ 334)  Bor Tolgoi: Brown Coal, Pb, Zn  Tsoonogtiin Shil: Fe, Au, Cu, Mo, Pb, Zn  project areas have all infrastructures (water, power, railway, roads) for mining  poly-metals U, Au, Ag, Pb, Zn, Cu & Mo are precious metals with high market value  expected future mining in Gandan Shil & Tsoonogtiin Shil will be open-pit Competent management & operation team  experience in mining operation in Mongolia  professional geology, mining and processing managers  supported by first-class geological mining and processing strategic partners  strong political and social connections in Mongolia

Risks

 natural disaster risk: not high as this project is located outside frequent

earthquake belt and the project is not at environment difficult site

 operation risk: controllable as management team members are

experienced in mining and have strong local connections and

knowledge

 country risk (“Mongolian” risk): not high in this project

 non-strategic mine

 Mongolians own majority

 total private investment and without gov’t involvement

 official gov’t approvals to transfer ownership off-shore for funding

raising and IPO

 strong local political network and social connections

Conclusion-Reason to Invest

Page 35: Poly-Metal Exploration Projects in Mongolia 9.2013

Beijing Branch:

Suite 510,Tower3,Beijing Henderson Center, No.18 Jian Guo Men Nei

Avenue,Dongcheng District,Beijing

Tel: +86 6518 7757, 6518 7756

Fax: +86 6518 7756

Mongolia Branch:

New Century Plaza, room 501, Chinggis avenue-15, 1-st khoroo, Sukhbaatar

district, Ulaanbaatar, Mongolia

Tel: 99114733, 99118893

Fax: 322954


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