ANR Presentation LK
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Transcript of ANR Presentation LK
Investor Presentation
December 2011 Capturing value in the Arabian Nubian Shield
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
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
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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%
The Management
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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
Previous use of funds
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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….
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
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
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Akordat Exploration Licence map
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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
Prospect summary and map
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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
Drill target 1: Taninay orogenic gold prospect
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Looking southwestwards towards the outcropping vein system at Taninay – artisanal workers (lower right)
Taninay orogenic gold prospect
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Looking north
Looking southeastwards
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
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Taninay soil and channel sample values
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= 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
Drill Target 2: Gerger VMS / Au-Cu prospect
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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.
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
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Early helicopter-borne VTEM results
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Gerger Discovery gossan at Gerger (above)
Malachite staining on Gerger outcrop (below)
Gerger – conductors and analyses
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Gerger – drill program
Proposed drill program at Gerger Satellite images DTM showing conductors
18
Gerger
Yakare East..an extension of Gerger prospect?
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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
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
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
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)
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
Use of proceeds – 18 months working capital
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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
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
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Appendix 1 - Group Structure
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(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