The Bayovar 12 Phosphate Project Northern Peru · • Initial results expected mid-late Q2 2014....

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The Bayovar 12 Phosphate Project Northern Peru The Bayovar 12 Phosphate Project Northern Peru April 2014 March 11, 2011 2 March 11, 2011 2 2 Forward Looking Statements This presentation may contain forward-looking statements including, but not limited to, comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, and other related matters. Forward- looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Focus Ventures Ltd’s projects in Peru & Colombia are at an early stage and all estimates and projections are based on limited and possibly incomplete data. More work is required before the mineralization and the projects’ economic aspects can be confidently modeled. Actual results may differ materially from those currently anticipated in this presentation. No representation or prediction is intended as to the results of future work, nor can there be any promise that the estimates and projections herein will be sustained in future work or that the project will otherwise prove to be economic. Some assay results shown in this presentation are historical in nature and the Company has not completed verification of the accuracy of these results and therefore they cannot be relied upon. Qualified Person Under the terms of NI 43-101, David Cass, B.Sc., M.Sc., P.Geo., is Focus' Qualified Person responsible for ensuring that the technical information given in this presentation is an accurate summary of the results reported by Focus. Cautionary Notes

Transcript of The Bayovar 12 Phosphate Project Northern Peru · • Initial results expected mid-late Q2 2014....

Page 1: The Bayovar 12 Phosphate Project Northern Peru · • Initial results expected mid-late Q2 2014. ... is a geologist with over 21 years' international experi ence in mineral exploration

July 2013

The Bayovar 12 Phosphate Project

Northern Peru

The Bayovar 12 Phosphate Project

Northern Peru

April 2014

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Forward Looking Statements This presentation may contain forward-looking statements including, but not limited to, comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, and other related matters. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Focus Ventures Ltd’s projects in Peru & Colombia are at an early stage and all estimates and projections are based on limited and possibly incomplete data. More work is required before the mineralization and the projects’ economic aspects can be confidently modeled. Actual results may differ materially from those currently anticipated in this presentation. No representation or prediction is intended as to the results of future work, nor can there be any promise that the estimates and projections herein will be sustained in future work or that the project will otherwise prove to be economic. Some assay results shown in this presentation are historical in nature and the Company has not completed verification of the accuracy of these results and therefore they cannot be relied upon. Qualified Person Under the terms of NI 43-101, David Cass, B.Sc., M.Sc., P.Geo., is Focus' Qualified Person responsible for ensuring that the technical information given in this presentation is an accurate summary of the results reported by Focus.

Cautionary Notes

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Focus Ventures Ltd

Resource Drilling

1st Class Logistics

The Right Address

Short Timeline

The Bayovar 12 project is a low-risk entry opportunity into a world-class phosphate district.

Bayovar 12 adjoins Vale’s Bayovar Mine & Hochschild’s Fospac project Resource drilling underway: maiden resource anticipated mid-2014

Power, road access & port available. Skilled labour force From signed deal to resource drilling in less than 6 months

A small cap company, drilling a potentially major sedimentary phosphate asset

Management Experienced team, strong local knowledge & low cost approach

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Drilling underway at Bayovar 12

Drilling at the Bayovar12 concession, March 2014

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Bayovar 12 Location

• Bayovar 12, Peru – a low-risk, low price

entry opportunity into a resource definition stage project located in a world class phosphate district

• Bayovar 12 has moved from signing of

the option agreement to resource drilling in less than 6 months.

Bayovar 12 is Focus’ Key project

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Project History

11950s

Phosphate discovered in the

Sechura basin during oil drilling

2007

JPQ acquires Bayovar 12 concession for gypsum

in Peruvian government auction

Mid 2013

JPQ and Focus begin negotiations for option

agreement covering Bayovar 12. LOI signed

Sept 2013.

Jan 2014

Definitive option agreement signed. Drill

permit application submitted.

March 2014

Drill permit granted. FCV moves straight to resource

definition drilling.

From signed option agreement to resource drilling in less than 6 months.

March 2014, Bayovar: Focus’ drill core.

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Port

Highway

25 km

Illescas Peninsula

Virrila Estuary

Sechura Depression

BAYOVAR 12 (FOCUS)

12,500 hectares

Juan Paulo Quay

Bayovar 12 Project, Northern Peru

Bayovar (Vale)

Phosphate Mine / Deposit

Piura City 70 km

Salt Flats

Lima 940 km

JPQ Port owned by Bayovar 12 owners

Piura

Lima

P E R U

* Mineable Reserves (dry density): Source: Fosfatos del Pacifico EIA Sept 2013 ** Vale 2010 Annual Report

The Bayovar District

Fosfatos del Pacifico Deposit (Feasibility)

Hochschild– Mitsubishi *130 MT @ 17.5% P205

Bayovar Mine (in Production)

Vale – Mosaic –Mitsui Reserves **295 MT @

15.9 % P2O5

• Located close to Vale’s Bayovar Mine, Hochschild’s Fosfatos del Pacifico & the Fosyeiki mine.

• Excellent logistics and infrastructure

• 40km from port owned by project owners JPQ

• Arid desert, no communities living on property

• Possible to work all year

• Project partly derisked by 5 historic holes

Vale

Americas Petrogas / IFFCO

Hochschild Group JV

Mineral Claims

Fosyeiki Mine (in Production)

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Port Facilities owned by Bayovar 12 claim holders

500 tonnes / hr Shiploader Pier 182m, for Cargo 24,000 DWT

>15,000 m2 for stockpiling

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Phosphate Deposit Resource Size Comparison

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Bayovar Mine and Fosfatos del Pacifico

Bayovar Mine Fosfatos Del Pacifico

Status In operation since 2012 Full feasibility

Reserves / Resources 239Mt @ 17.2% P2O5 130Mt @ 17.5% P2O5

Ownership Vale 40%, Mosaic 35%, Mitsui 25% Hochschild group / Mitsubishi

CAPEX est. $530M? ~$600M?

Mining Method Open pit using loaders & trucks Open pit using surface miners

Processing Washing, gravity separation & drying Washing / Flotation / Drying

Annual Production (Mt cons pa.)

3.9Mt 2.5Mt

Mining at Bayovar Proposed mining method at Fosfatos

Mosaic & Mitsui acquired 60% of Bayovar in Q1 2010 for $660M ($4.60/t)

Mitsubishi acquired 30% of Fosfatos for $45M million in Q4 2011 ($1.10 - $1.20/t)

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• Simple processing at site

• Soft, friable ore

• Washing , gravity separation using seawater

• No chemicals used

• Dried and loaded on ships for export to USA and Brazil

Vale: Mining & Processing

Vale’s Port

The Fosyeiki mine

Free digging material, Vale’s mine

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Diana Formation phosphate bed exposed in Fosyeiki open cut mine

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Phosphate

Diatomite

Close up of Phosphate, Fosyeiki open cut mine

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JPQ-04 QQ 04040

JPQ-06

JPQ-05 Q 05050

JPQ-07

QQQQ-0606006060JPQ-08 JPQ-03

T1 – 11.3 P205

T2 – 9.7 P205

T3 – 6.7 P205

T4 – 9.6 P205

T5 – 6.3 P205

T7 – 8.2 P205 T8 – 10.3 P205 T6 – 9.6 P205

Bayovar 12 12,500 hectares

•5 holes drilled in 2012 at 1.5km spacing

•Multiple phosphate units drilled in all holes from 36m depth, average grade 12 – 16% P2O5

S A L T F L A T S

S E C H U R A D E P R E S S I O N

Bayovar 12 Drilling & Trenching

Surface trenching, phosphate unit in all trenches, average around 10% P205

20 km

A A’

Section A – A’ Next slide

DRILLHOLE WITH P2O5

TRENCH WITH P2O5

DRILLHOLE NO P2O5

Former Gypsum Operations

Planned 20 yr pit outline

Aprox.pit outline 2010

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Legend Aeolian Quaternary

Diatomite Sandstone Phosphate Beds

Scale: 1:20,000

20

0

- 20

- 40

- 60

- 80

JPQ-06 JPQ-08

A A’

JPQ-04 Gypsum deposit

3 km

Schematic Profile Bayovar 12 (western area)

Exploration Target* 100-150 MT grading 12% – 16% P2O5

*The potential quantity and grade is conceptual in nature, and there has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in the target being delineated as a mineral resource. Calculation based on 6 phosphate beds averaging 0.75m, S.G. 1.7, area 14km2

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Focus’ Exploration Program

• Surface outcrop on the concession is limited to non-existent, so Focus’ work to date consists of

-logging 5 historic holes, -visiting nearby P2O5 projects - -laying out a new drill grid in the southwest of Bayovar 12. -completion of first phase DD program on an 800m by 800m grid.

• Drill spacing may permit completion of an Inferred Resource estimation from first 20 holes

• Initial results expected mid-late Q2 2014. First pass target size: 100-150MT target* @ 12 - 16% P2O5

*Exploration Target : The potential quantity and grade is conceptual in nature, and there has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in the target being delineated as a mineral resource. Calculations based on 6 phosphate beds each averaging 0.75m thickness, S.G. 1.7 x area

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Drill Plan

Historic hole

Current program

2nd phase infill holes

Gypsum Mine

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• Coarse irregular pale pellets • Finer grained spherical black

pellets forming matrix • Fossil Fragments

Phosphate in Focus’ drill core

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Estimated Timelines

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Estimated Budget to end 2014

Cash option payments

Logistics, permits, G&A

Completion of drilling, assays, met testing and resource calculations

$750k

Potential cash from warrants* $4.7M

$2.0-2.3M

$500k

Est’ budget to end 2014 ~$3.6M

*Includes 3 million 26.5c warrants issued in April 2014 financing

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Objectives Next 12 Months

Deliver A Resource

Strategic Partner

Option Milestones

Research Coverage

Pre-Feas Engineering

Finance & complete req’d cash payments ($3.75m) by Feb 2015

Deliver 1st resource mid-2014, upgrade to M&I resource by end 2014

Secure investment or offtake from a strategic partner

Initiation of research analyst coverage from one or more institutions

Pre-feas engineering underway by end 2014 / early 2015

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Share Structure & Price History

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Phosphorous: a key ingredient in fertilizer and an essential nutrient for plant life Phosphate is naturally occurring, found mainly in sedimentary and igneous deposits >40% of world food production uses fertilizer Major consumers of fertilizer: China, India, Brazil Major phosphate producers are Morocco, China and the US

World Phosphate Rock Reserves

Contact Us

David Cass, President & Director Ralph Rushton, Business Development & Director

Suite 650-200 Burrard Street Vancouver, BC

Canada V6C 3L6

Phone : 604 688 5288 [email protected]

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Appendices

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Board & Senior Management

www.focusventuresltd.com Phone : 604 688 5288

David Cass President & Director

Simon Ridgway Chairman & CEO

Ralph Rushton V.P. Corporate Development & Director

Mr. Cass is a geologist with over 21 years' international experience in mineral exploration and mining for precious and base metals, spent with major mining company Anglo American plc. He held positions of increasing responsibility in Turkey, Iran, Eastern Europe and the America's, including 4 years as Senior Geologist in Peru, and 6 years as Exploration Manager for North America. Since 2006, Mr. Cass has worked for junior exploration companies exploring in Canada, Mexico, Central America and Peru. He has a Masters of Science degree in Mineral Exploration and Mining Geology from the University of Leicester, UK (1990). He is a practicing member (P.Geo) of the Association of Professional Engineers and Geoscientists of British Columbia.

Ralph has a B.Sc. in geology from Portsmouth University in the UK, a Master's degree in economic geology from the University of Alberta, and a Certificate in Business Communications from Simon Fraser University. Much of his 20 years' experience in mining and exploration was gained working as a geologist for the Anglo American group in Southern Africa, the Middle East and Eastern Europe. Ralph has been working with the Gold Group of companies for the past 10 years.

Mr. Ridgway is a successful prospector and mining financier, gaining his initial experience with grass roots mineral exploration. Starting out as a prospector in the Yukon Territory in the 70's, Simon and the teams under his guidance have discovered gold deposits in Honduras, Guatemala and Nicaragua and silver deposits in Mexico. Simon is a founder and the Chairman of Fortuna Silver Mines, and Founder and CEO of Cordoba Minerals, Medgold Resources and Focus Ventures.

Mr. Szotlender holds a degree in international relations and is fluent in several languages. He has successfully directed Latin American affairs for numerous private and public companies over the past 20 years, specializing in developing new business opportunities and establishing relations within the investment community. He was President of Mena Resources Inc. until it was purchased by Rusoro Mining Ltd., of which he was also President. In addition to being a Director of Radius Gold Inc., Mr. Szotlender is a Director of Endeavour Silver Corp. and Fortuna Silver Mines Inc. He also consults to other public companies and to several private exploration companies.

Mario Szotlender Director

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Phosphate

Phosphate, used as fertilizer, is the irreplaceable engine powering modern agriculture.

Bloomberg BusinessWeek Magazine

P2O5 90% of all phosphate rock is used to make fertilizers.

10% is used in livestock feed, pesticides, detergents, water treatment chemicals and food additives.

40% of modern agricultural yield can be directly linked to the use of phosphate fertilisers

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Latin America: Crop-Rich, Phosphate Poor

* The Hague Centre for Strategic Studies

Produces 11% of the world’s food

Consumes >12% of global phosphate

Produces <2% of global phosphate

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Bayovar 12 Deal Terms

Focus has the right to acquire a 70% interest in JPQ, the titleholder of the Bayovar 12 concession, by:

– spending up to $15-million in exploration and drilling, including $1-million within 12 months of receipt of its exploration permit from the Peruvian authorities,

– completing a positive prefeasibility study by the 4th anniversary;

– and paying JPQ $4-million (U.S.) cash staged instalments;

$50,000 on signing of the LOI (paid); $200,000 on signing of the formal option agreement (paid); $750,000 six months after receiving the exploration permits (due August 2014);$3-million on the first anniversary of receiving the permits (due February 2014). $1 million per year for every additional year until the completion of the prefeasibility study

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Bayovar Stratigraphy

Bayovar 12 Holes JPQ 4 – 8

Upper Diatomite Wider but lower grade

Phosphate Beds

Lower Diatomite Well sorted, high grade

phosphate beds

Surface Bayovar 12

• Phosphate hosted in a sequence of Diatomites*

• Highest grades found in the Diana Ore Zone in the Lower Diatomite Series

• At least 7 individual phosphate beds within the 35m – 40m thick Diana Ore Zone

• Units vary from 0.3m - to 2m wide

• Average width of beds approx 0.7m

* Diatomite is a naturally occurring soft siliceous sedimentary rock composed of the shells of diatoms (hard shelled algae) and used in filters and mild abrasives

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Hole From To Sampled Interval

% P2O5

JPQ N 04 58.85 59.5 0.65 11.26 JPQ N 04 68.2 68.79 0.59 13.67 JPQ N 04 74.3 75.4 1.1 7.53 JPQ N 04 78.7 79.7 1.0 15.32 JPQ N 04 86.48 86.8 0.32 12.01 JPQ N 04 92.4 92.9 0.5 13.17 JPQ N 04 96.9 97.32 0.42 18.07 JPQ N 04 97.68 98.85 1.17 13.2

JPQ N 05 55.2 55.58 0.38 15.42

JPQ N 05 64.34 64.7 0.36 12.98 JPQ N 05 66.7 67.07 0.37 20.75 JPQ N 05 68.4 68.68 0.28 12.65 JPQ N 05 70.75 71.32 0.57 10.24 JPQ N 05 74.0 74.7 0.7 18.10 JPQ N 05 82.7 83.45 0.75 14.96 JPQ N 05 89.02 89.42 0.40 10.62 JPQ N 05 93.47 94.08 0.61 14.05 JPQ N 05 94.92 96.01 1.09 19.35

JPQ-04 78.7m – 79.7m –15.32 % P205

JPQ-05 74.0m – 74.7m –18.1 % P205

Bayovar 12 mineralization in historic drill hole

Mineralized widths are likely minimums: sampling was limited to visually-estimated hi grade zones