Arco presentation

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ARCO RESOURCES Gold and Silver in Mexico March 2012 Corporate Presentation TSX-V: ARR

Transcript of Arco presentation

Page 1: Arco presentation

ARCO RESOURCES Gold and Silver in Mexico

March 2012 Corporate Presentation TSX-V: ARR

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TSX-V: ARR

Some statements contained in this presentation or in documents referred to in it are or maybe forward-looking statements. Actual results may differ from those expressed in such statements, depending on a variety of factors.

Any forward-looking information contained in this presentation has been prepared on the basis of a number of assumptions which may prove to be incorrect, and accordingly, actual results may vary.

Past performance of the Company cannot be relied on as a guide to future performance. This presentation does not constitute, or form part of or contain any invitation or offer to any person to underwrite, subscribe for, otherwise acquire, or dispose of any shares in Arco Resources Corporation or advise persons to do so in any jurisdiction, nor shall it, or any part of it, form the basis or be relied on in any connection with or act as a inducement to enter into any contract or commitment therefore. No reliance may be placed for any purpose whatsoever on the information or opinions contained in this document or on its completeness and no liability whatsoever is accepted for any loss howsoever arising from any use of this document or its contents otherwise in connection therewith.

Disclaimer

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• Portfolio of 6 Silver / Gold projects, 100% owned with long term

community agreements

• Joint Venture with Argentum Silver Corp. (TSX-V: ASL)

• Current 43-101 reports on Tres Hermanas, Taviche & Predilecta

• Well established historic and current gold / silver producing region

• Adjacent to a working mine owned by Gold Resource Corp.

• Established infrastructure and management team

• Successful local geological and technical teams with proactive

community relations

Highlights

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Warren McIntyre President & CEO

Simon Anderson CFO

Jeff Sheremeta VP, Corporate Secretary

Juan Lopez Country Manger

Officers & Directors

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OFFICERS

Anthony Dutton Director

John Sutherland Director

Ben Whiting Director

DIRECTORS

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February 27, 2012

Shares O/S 75.2m

Options, Warrants O/S 43.0m

Fully Diluted 123.5m

Market Cap 3.0m

3 Mo. Avg. Daily Vol. 160,310

3 Mo. High – Low

Daily Close $0.35 - $0.15

Inception March 13, 2006

TSX-V: ARR

Corporate Profile

Head Office:

Arco Resources Corporation

Suite 906, 595 Howe Street

Vancouver, BC V6C 2T5

Canada

Tel: +1 (604) 639 2866

Website: www.arcoresources.com

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Mining Friendly

• Safe and many past and present producers

• Very good infrastructure, easily accessible

• Experienced and skilled local labour force

• Historic and government data available

• Close proximity to Canada and USA

Proven Value

• Significant recent discoveries and mines

• San Jose Mine (Fortuna Silver)

• Cobre Grande (Linear Metals) - pending

• High value, low operating cost jurisdiction

• Favourable exchange with strong CAD $

Why Oaxaca?

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Arco Projects: Overview

Cuatro Venados

Tres Hermanas

Predilecta Taviche

1 2 3

Significant Mine Investment 1 Fortuna Silver 2 Gold Resource 3 Linear Metals

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• 3,710 hectares covering a silver-lead-zinc-bearing vein system that has historic underground workings along a 400 metre strikelength.

• Five levels of underground workings.

• Underground sampling shows local values >500 g/t Ag.

• The Company has taken underground channel samples including 764.5 g/t Ag, 2% Zn and 10.4% Pb across 1.5 metres.

• Grid based soil sampling has indicated the vein system continues along strike in both directions.

Arco Projects: Tres Hermanas

Tres Hermanas

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Arco Projects: Tres Hermanas

5 UG Levels – High grade Ag-Pb-Zn

Ag Soil Anomaly extends beyond historic workings

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Arco Projects: Tres Hermanas

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• 421 hectares covering silver-gold-bearing epithermal quartz vein.

• Vein exposed over two km strikelength.

• 250 m strikelength averaging 173 g/t Ag, 1.5 g/t Au.

• Historic (Spanish and recent ) underground production with 500 m underground strikelength.

• Excellent access, approx 1.5 hours drive from city of Oaxaca.

• Gold Resource Corp. and Fortuna Silver investing in significant mine development in the Taviche district.

Arco Projects: Taviche

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Taviche

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Arco Projects: Taviche

Headframe from old mine

Mining prior to 1998 over 20,000 tonnes

with average grade over 180 g /t Ag Quartz vein identified over 2 km & up to 5 m in width

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Arco Projects: Taviche

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1 Km

Quartz Vein

Taviche Property Map

Longitudinal Section of Underground

250m strikelength average width 1.4 m average grade

173 g/t Ag, 1.5 g/t Au (267 g/t Ag Eq)

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Taviche – Long Section

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Taviche – Long Section

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Arco Projects: Taviche – Drill Results Hole 1

Hole BDT From To WIDTH Ag Au Ag eq m m m g/ton g/ton g/ton

2 61.10 69.0 7.90 191 1.27 267.20 Inc. 66.00 68.00 2.00 375 1.75 480.00 3 58.00 60.00 2.0 88.20 0.59 123.60 4 80.70 82.40 1.7 172.50 0.61 209.10 5 74.00 76.00 2.0 90.85 0.37 113.05 6 50.20 51.10 0.9 113.00 0.75 158.00 7 85.20 88.30 3.10 279.03 0.924 334.47 Inc. 87.35 88.30 0.95 450.00 1.63 547.80 8 89.20 93.00 3.70 306.31 1.02 367.51 Inc. 92.30 93.00 0.70 583.00 2.59 738.40

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• 3,181 hectares located 68 km SSE of

Oaxaca City.

• Multiple mesothermal gold-bearing

quartz veins.

• High gold values, previously worked

property close to infrastructure and

transportation.

• Previous sampling indicated 143 g / t

Au over 0.45 m.

• Underground sampling average 19.26

g/t Au along 95 m with average

width of 0.57m.

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Arco Projects – Predilecta

Predilecta

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Arco Projects: Prediclecta

Predilecta Mine

La Cruz Mine

Predilecta Property High Grade Au

95 m strikelength averaging 19.26 g/t Au

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Arco Projects – Predilecta

Predilecta Adit with Arco’s Country Manager Juan Lopez, Property vendor

and prospector Don Miguel Cormick, President Warren McIntyre and

General Manger Tito Jimenez. The rock had grades of over 145 gpt Au.

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• 3,631 hectares covering 5 kilometre strike length

of a gold-bearing mesothermal quartz vein.

• Historic mining took place in the northern and

southern parts of the vein. The vein is generally one

metre wide with grades up to 12.6 g/t gold but

appear to average 4-8 g/t gold.

• Vein untested below water table.

• Little prospecting and sampling has been done on

the vein between the underground workings.

Arco Projects: Cuatro Venados

Cuatro Venados

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Arco Projects: Cuatro Venados

Mine

Mine

Mine

1km

Zavaleta Mine average historic grade 8 g/t Au, 100 g/t Ag

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Arco Projects: Cuatro Venados

Warren McIntyre, Paul Cowley, Juan Lopez,

discussing rock samples at adit entrance

Warren McIntyre with Jeff Sheremeta and

Geological consultant Dale Schultz at the

entrance to the Zavaleta mine

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• Optimize value through JVs and/or sales

• Prove up prospective properties through drilling

and sampling

• Encourage local community involvement via

solid community relations

• Cost containment through risk mitigation and

economy of scale. Shared offices and

exploration teams.

Increased Value

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Muchas Gracias!

Historic & Current Mining District

Excellent grades and access

Drill Ready Projects

Community support

Solid Exploration team

Arco Resources Corp.

Suite 906 - 595 Howe St.

Vancouver, BC, V6C 2T5

604 - 639 - 2866

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