Glen Jones - Intierra || Latam Ventures, Mining in Mexico PDAC2012

LATAM Ventures Roadmap to Investing

In Mexican Mining and Exploration

PDAC: Toronto March 7, 2012

Presented By: Glen Jones, Executive Director

Business Intelligence for the Mining Sector

Intierra Live is the world’s premier tool for evaluating investment opportunities in the mining sector. It provides financial information that can be merged with resources and lease data, all of which is easily searchable and exportable for detailed analysis.

• +40,000 companies • 3,700 listed companies • Global lease coverage

• 34,000 active global projects • 53,000 total global projects • 160 commodities

Intierra Live covers:

Presenter

All data in this presentation is sourced from our huge database of production results, resource estimates, Exploration drill results, Mine Feasibility study results, capital raising results, M&A statistics, property transactions, company financial results, capitalisation data, Commodity Prices,

Business Intelligence for the Mining Sector

Intierra has recently:

Purchased Raw Materials Group

Bloomsbury Minerals Economics (now BME Copper)

THE MINING INDUSTRY

IN MEXICO

Presenter

How does Mexico compare with other countries in Global exploration and Mining It is clearly in 4th position after Canada, Australia and United States This is based on number of projects

State of Play

NORTH AMERICASOUTH AMERICA

MEXICO

Exploration Adv. ExplorationPre-feas/Scoping Feasibility Study

Exploration Project Density

Mexico has the largest number of serious exploration properties per km of available ground, in all of the Americas

Presenter

When we say serious exploration we mean properties which are active and have at least a prospect or drill target defined.

Commodity

Annual Mine Revenue (US$

millions) 1.Silver 5,025

2.Gold 5,218

3.Copper 2,527

4.IronOre 1,586

5.Zinc 1,101

6.Lead 355

7.Molybdenum 328

Total 16,431

Mexico Resource GDP

Where does the mining revenue come from and from what commodities?

Distribution of Active Projects Within IntierraLive

Status No. of Projects (%) Grass Roots 38.1 Exploration 33.0 Advanced Exploration 12.5 Pre-feasibility 4.1 Feasibility 1.4 Construction 0.6 Operating 9.6 Maintenance 0.6

Presenter

There is still considerable potential within Mexico. Of the 1176 active projects from the previous slide, 71% have had very little to no drilling to date . This is a very large pipeline.

Listed companies: 277 TSX Venture: 160 TSX: 58

External Companies working In Mexico

Presenter

Is Mexico a destination for exploration? Companies listed on the Canadian exchanges believe it is. 79% of all listed companies working in Mexico are listed on Canadian Exchanges This slides show the total number of listed companies that have mining or exploration projects in Mexico. They are listed on exchanges outside of Mexico.

EXPLORATION DRILLING

Presenter

We saw that Mexico was the 4th most active country for global exploration and mining. For active drilling projects in 2011, they are in 4th position also.

Mexico 2011 Drilling Activity

Presenter

This map shows the location of the 132 active projects that released assay results to the financial markets.

Presenter

Drilling has tripled by comparison on a quarterly basis from Q3 2009 to Q4 2011

Presenter

Gold, silver, lead/zinc and copper projects have released the most assays by project. They are therefore the most sought after commodities.

RESERVES AND

RESOURCES

Major Untapped Reserves and Resources

Mexico sits at 5th place amongst other American countries in terms of in ground value of assets which are not operating, when considering only major metals.

Value of untapped Copper + Gold + Silver + Zinc + Lead at 2011 prices and varying cut-off grades

$-

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

$3,500,000

Reso

urce

Val

ue (M

US$

)

Presenter

Mexico has $890 billion dollars and is in 5th place. This is by comparing untapped resources without applying any economic factors. This is pure metal value.

Recent Resource Estimates

Most Recent Highlights:

Levon Res.: Cordero; 1.1 Moz Au, 450 Moz Ag; 2011

GoldGroup/Dyna: San Jose de Gracia; 1.1 Moz Au, 2 M oz Ag; 2011

GoldGroup: Caballo Blanco; 0.994 Moz au, 4 Moz Ag; 2012

Silvercrest: La Joya; 51 Moz Ag; 2012

Silver Standard: Penasco Quemado; 9.6 Moz Ag; 2012

Past two years: 4.2 M oz. Au & 600 M oz. Ag

Presenter

To put these figures into perspective, over the past 2 years, new resource estimates in Mexico total 4.2 Moz of Au and 600 Moz of Ag. Major finds include: As above

In 2010 Mexico was top silver producer Mexico: 124.4 M oz. Peru: 113.2 M oz.

Presenter

Mexico finally beat out Peru in 2010 for the top producer of silver in the world.

FINANCIAL

Current Status Capital

Expenditures Required

Expect Annual Sales Revenues

Pre-Feas/Scoping $7,588,620,000 $5,845,460,000

Feasibility Study $1,331,660,000 $921,160,000

Construction $1,171,520,000 $800,200,000

Newly Operating (after 2007) $1,944,990,000 $3,946,620,000

Grand Total (including new

mines) $12,036,790,000 $11,513,440,000

Mexico Capital Expenditure Pipeline

Projects currently under evaluation or construction would cost $10 billion

Current CAPEX Requirements

Row Labels CAPEX Required Annual Revenues

Gold $4,737,810,000 $3,504,370,000

Copper $2,413,850,000 $1,982,530,000

Silver $1,642,100,000 $1,245,870,000

Molybdenum $663,200,000 $225,130,000

Gold/Silver $460,570,000 $480,440,000

Copper/Gold $330,510,000 $193,720,000

Zinc/Lead/Silver $55,080,000 $67,740,000

Grand Total $10,303,120,000 $7,699,820,000

Projects currently under evaluation or construction would cost $10 billion

Presenter

There is 4.7 billion dollars worth of capital investment planned but not necessarily approved for mining of primarily gold ores. The one major new gold mine currently under construction is the 75 koz pa Noche Buena mine at a cost of $63 M. The planned production capacities of these mines would generate over 3 billion dollars of revenue a year at current gold prices taking the countries gold production revenue up to 8 billion a year. 2 major copper mines under construction, El Boleo and Luz del Cobre will add a combined $610M annual revenue at a cost of $1 billion.

New Mine Capital Intensity

Locations of projects requiring capital investment

RAISING CAPITAL THROUGH THE

EQUITY MARKET

Use of proceeds 2011 Funds

Asset Acquisitions $24,883,000

Capital Expenditure $51,200,000

Development of Reserves $367,200,000

Exploration (Drilling) $133,400,000

Total Capital Raisings $576,600,000

Mexico Fundraising

Use of proceeds 2011 Funds

Gold/Silver $224,400,000

Copper $156,800,000

Copper/Gold $83,200,000

Gold $57,200,000

Base Metals (Pb/Ag/Zn) $48,300,000

Industrials (Borate/Lithium) $7,000,000

Total Capital Raisings $576,600,000

Mexico Fundraising

Projects Benefiting from Capital Raisings: 2010 & 2011

Exploration Funding Development Funding CAPEX Funding

Presenter

This map plots out those assets which are benefiting from the money raised over the last 2 years.

Intierra/SGM Partnership

¾ Intierra partners with Geological Survey Department (SGM)

¾ Promote local mining opportunities to the rest of the world

¾ Mexican concession/claim data now accessed through Intierra Live

¾ Allows companies opportunity to purchase digital data

Data in Intierra Atlas

Presenter

These screen shots show the concession data in Mexico overlain with Intierra data This will have significant value for our clients. It will benefit companies looking for opportunities.

Thank You

For more information:

www.intierra.com

Or

[email protected]

Thank You

http://www.intierra.com/

Glen Jones - Intierra || Latam Ventures, Mining in Mexico PDAC2012

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Transcript of Glen Jones - Intierra || Latam Ventures, Mining in Mexico PDAC2012