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Verde Resources Inc. A Fresh Approach to Porphyry Exploration in South America Corporate Presentation February 2011
Transcript
Page 1: Verde Corporate presentation

Verde Resources Inc.

A Fresh Approach to Porphyry Exploration in South America

Corporate Presentation

February 2011

Page 2: Verde Corporate presentation

2Verde Resources Inc.

ForwardForwardForwardForward----Looking Statements and DisclaimersLooking Statements and DisclaimersLooking Statements and DisclaimersLooking Statements and Disclaimers

This presentation IS CONFIDENTIAL and contains certain "forward-looking statements", including but not limited to, the statements regarding the Company’s overall objectives and strategic plans, future commercial production, project targets, timetables, operating costs, capital expenditures, work programs, exploration budgets and targets, mineral reserve and resource estimates and outlook, and safety and sustainability initiatives. Forward-looking statements express, as at the date of this presentation, the Company’s plans, estimates, forecasts, projections, expectations or beliefs as to future events or results. Forward-looking statements involve a number of risks and uncertainties, many of which are beyond the Company’s control, and there can be no assurance that such statements will prove to be accurate. Therefore, actual results and future events could differ materially from those anticipated in such statements. Risks and uncertainties that could cause results of future events to differ materially from current expectations expressed or implied by the forward-looking statements include, but are not limited to, factors associated with fluctuations in the market price of precious metals, mining industry risks and hazards, uncertainty as to estimation of mineral reserves and resources, requirements of additional financing risk, risks of delays in construction, production or obtaining permits and other risks. The reader is cautioned not to place undue reliance on these forward-looking statements. The Company does not undertake to update any forward-looking statement that is contained in this presentation.

Page 3: Verde Corporate presentation

3Verde Resources Inc.

Verde Resources Presentation

Why copper - Factoids

Strategy - Existing projects - Projects coming on

Who we are - TeamProjects - Peru

- Chile- Generative

Financials - Share structure- Cash- Burn rate- Pre IPO - IPO

Use of funds - Caballerias- Potreros- Escalones Norte- Future

Delivered and Deliverables

Page 4: Verde Corporate presentation

4Verde Resources Inc.

Why are we doing this?

Global Copper Demand- US demand alone = additional 140Mt Cu/a =

35 new producing porphyry copper mines by 2025 (Singer & Menzie: GSA, Oct 2009)

- China is building 10 “New York” Cities by 2025

Copper Supply- 70% of producing mines > 20 years old- 30% of producing mines > 50 years old

Copper Price- Macquarie estimate 550,000-Mt deficit in

2011 pushing prices to $5/lb (DEC2010)

- B of A Merril Lynch mid 2012 copper priceforecast (Nov2010): $5.90/lb

Page 5: Verde Corporate presentation

5Verde Resources Inc.

Strategy

Find & Develop Porphyries:

““““Giant homogeneous money makersGiant homogeneous money makersGiant homogeneous money makersGiant homogeneous money makers””””

- Stake experienced geologists’ target concepts in Chile & Peru- Use corporate management networks to make acquisitions- Prioritize targets around known world class systems with

potential for >500Mt @ > 0.5% Cu- Ground check – consolidate land position / acquire property

explore – delineate

Page 6: Verde Corporate presentation

6Verde Resources Inc.

Experienced and Driven Board

DirectorsJohn Gray, President & CEO & Director (Based in Chile)

– Principal role raising $20M$20M$20M$20M as former CEO African Aura ResourcesAfrican Aura ResourcesAfrican Aura ResourcesAfrican Aura Resources (TSX-V:AUR)

– Founder: Basti Resources (Spanish gold) & Northern Minerals (Swedish base metals)

– 20 years exploration in Americas-Africa-Europe with Homestake/Noranda/Rayrock

John-Mark Staude, Founder & Director– Founder & CEO: Riverside ResourcesRiverside ResourcesRiverside ResourcesRiverside Resources (TSXV-RRI)

– 20 years of exploration experience with Magma Copper, BHPB, Teck, RTZ– Principal role in raising $30M$30M$30M$30M

Darren Klinck, Founder & Director– Principal role in raising $300M $300M $300M $300M for Au & Cu projects in Mexico and Australasia

– VP, Corporate & Investor Relations Oceana Gold CorpOceana Gold CorpOceana Gold CorpOceana Gold Corp (TSX-OGC)

Page 7: Verde Corporate presentation

7Verde Resources Inc.

Experienced and Driven Management

Exploration and Advisory TeamArtemio Chirre, Chief Geologist (Peru)

– 15 years regional & project specific porphyry-skarn-epithermal exploration experience (Tintaya, Las Bambas, Yanacocha & Antamina in Ancash, Tacna, Apurimac, Ica & Cajamarca)

– Project experience (Anglogold Ashanti, BHP Billiton, Buenaventura & Hochschild)

Ron Luethe, Geologist (Chile)– Based in Chile; expert on Peruvian, Chilean and Argentine copper deposits– 25 years Exploration and Senior Manager (Xstrata, BHPB, Phelps Dodge, Magma Copper)

Bill Murray, P. Eng C.Eng, Executive Chairman, Polymet Mining– 35 years experience in project evaluation and development (Anglo American, Denison Mines,

Fluor Daniel, Polymet)

Paul Troiano, CFA CPA, Investment Banking, Scarsdale Equities LLC– New York based; 7 years experience in corporate finance and asset management in the

mining exploration and development sector

Robin Longe (B.Sc UBC, Juris Doctor UofT), Corporate Lawyer, Bull, Housser & Tupper LLP

– Five years' experience in M & A's and corporate governance with a focus on the mining sector

Page 8: Verde Corporate presentation

8Verde Resources Inc.

Porphyry Copper & Skarn, South Peru

Skarn

CopperPorphyry

Porphyry

2.5 Km

Los ChancasAntillaTrapicheCaballeriasCaballeriasCaballeriasCaballerias

355Mt @ 0.62% Cu,154 Mt @ 0.47% Cu, [email protected]% Cu (Early stage)(Early stage)(Early stage)(Early stage)

Grupo MexicoPanoroBuenaventuraVerde ResourcesVerde ResourcesVerde ResourcesVerde Resources

Caballerias project

- Option to acquire 100% of high grade porphyry + skarn

- Deal: US$500,000 plus US$1.5M payment; 2% NSR

- Targetting >US$10bn Cu metal

- Open in all directions

- Skarn grabs @ >10% Cu & 0.44g/t Au

- Porphyry grabs up to 0.5% Cu

- Supportive local community

- Last mined in ‘80s & drilled in ’90s

- Good access and infrastructure

Other projects in the Yauri-Andahuaylas belt

Page 9: Verde Corporate presentation

9Verde Resources Inc.

Caballerias Porphyry (looking NW)

Exposed Copper PorphyryExposed Copper PorphyryExposed Copper PorphyryExposed Copper Porphyry

Target under coverTarget under coverTarget under coverTarget under cover

Page 10: Verde Corporate presentation

10Verde Resources Inc.

Caballerias Skarn looking SW

Skarn

Limestone

Porphyry

Drill hereDrill hereDrill hereDrill here

Page 11: Verde Corporate presentation

11Verde Resources Inc.

Caballerias Skarn looking NE

Drill hereDrill hereDrill hereDrill here

Page 12: Verde Corporate presentation

12Verde Resources Inc.

Porphyry Gold, Maricunga, Chile

Potrero project

- Option to earn 70% through US$6M workplan

- On trend with multiple producing mines

- Best RC drilled grades from 3 holes:

- 126m @ 0.44g/t Au

- 4m @ 0.40g/t Au

- 12m @ 0.51g/t Au

- Best outcrop grab sample: 7g/t Au

Work Plan

$6,000,000Total:Total:Total:Total:

70%$2,000,000Year ending 31 March, 2015

65%$2,000,000Year ending 31 March, 2014

60%$1,000,000Year ending 31 March, 2013

51%$1,000,000By 31 March, 2012

Interest EarnedInterest EarnedInterest EarnedInterest EarnedExploration ExpenditureExploration ExpenditureExploration ExpenditureExploration ExpenditureDue DatesDue DatesDue DatesDue Dates

Page 13: Verde Corporate presentation

13Verde Resources Inc.

Porphyry Copper, Central Chile

Escalones Norte Project

- Option to earn 70%:

$1M expenditure → 51%

+ $1.5M expend → 70%- Same district as world class El Teniente

Mine

- Abundant Cu oxides at surface

- Surface grab samples grade

0.29-1.0% Cu

0.12-0.15g/t Au

- Drilling at Escalones has proven a resource and Norte is undrilled

Page 14: Verde Corporate presentation

14Verde Resources Inc.

Porphyry Copper Generative, Peru

Artemio Chirre

- Chief Geologist (Peru) & Shareholder

- 15 years local porphyry and skarn experience

- Minimal budget generating high value targets

- Prospecting 2 main belts

- Projects accessible by drivable tracks

- Projects near to Pacific coast

Coastal BatholithPorphyry Belt

Yauri–Andahuaylas Batholith:Skarn & Pophyry Belt

Page 15: Verde Corporate presentation

15Verde Resources Inc.

Porphyry Copper Generative, Chile

Carolina project

- Exposed porphyry copper

- Supergene malachite identified

- Exceptional option terms

Strategic staking

- Next to El Abra (166,000t/y Cu cathode)

- 40km2 staked

- Potential for 100+Mt @ 1+% Cu

Page 16: Verde Corporate presentation

16Verde Resources Inc.

Delivered and Deliverables

August – November 2010• Seed financing rounds completed

• Peruvian & Chilean subsidiaries established

• Advisory Board elected and invested

• CEO moved to Chile

• Peruvian Chief Geo signed

• IPO lead counsel appointed

• Peruvian and Chilean porphyry deals signed

December 2010 – January 2011

• Pre-IPO financing for sophisticated investors

• Initiate 43-101 field work on lead projects

• Target IPO for Q2 2011 Hire senior Chilean technical staff

• Build out corporate team (CFO & Chairman)

Peruvian and Chilean porphyry belts

Page 17: Verde Corporate presentation

Verde Resources Inc.

A Fresh Approach to Porphyry Exploration in South America

Contact us:

John Gray, President & [email protected]+56 (9) 9577 5307 (Chile)

John-Mark Staude, Director Darren Klinck, [email protected] [email protected]+1 604 338 7742 (Canada) +61 420 981 119 (Australia)

www.verdecopper.com


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