This action might not be possible to undo. Are you sure you want to continue?
Metals Exploration has rights to 100% of the Runruno gold – molybdenum project in northern Luzon, Philippines. Flagship Runruno project contains 1.5 million ounces of gold and 25Mlb moly Feasibility Study due in April 2010 FTAA permit signed by Order of the President in October 2009 Environmental Compliance Certificate approval imminent Strong community relations resulting in several awards Runruno Project • Geological database independently verified by Mining Associates • Resource of 1.5Moz announced November 2009 • 560,000oz Measured & 290,000oz Indicated • $150M capex to build 100k oz /yr operation • 25.4 Mlb of valuable molybdenum by-product • ~93,000m drilled to date Way forward Q1 / Q3 • Substantial exploration upside over remainder of area • Bank project financing to be arranged • Potential to start construction Q4 2010
Capital Structure* Ticker Symbol: Shares in Issue: Share Price: Market Cap: Funding LSE : MTL 269.7M (295.6M F-D) 13p £35.06M / $52.79M £3.7M raised Jan 2009 £12M raised in May 2009 Significant Shareholders◊ Solomon Capital Ltd Williams de Broe Baker Steel Capital Managers Allianz Cornhill Insurance 44.10% 8.65% 6.73% 4.45%
Liquidity Approx 500,000 shares traded per day Around 40% of share capital freely traded
Share Price (Pence)
◊ Data as at 31.01.2010
* Data correct 05.03.2010
Runruno Project Location
Approx. extent of volcanic complex
Area containing current resource ~20% of total
Road – upgrade allowed along whole 30km length. Currently passable all year.
Airfield – Bagabag airfield 10 miles north of Solano
Power supply – switch yard in Bayombong will be the origin for the new 69Kv line to site, running along the new road
Access road • All weather national road access to site – 28 km • Upgrade allowed Power • Local access to national grid • Switch yard with capacity located at Bayombong • 35km dedicated line to be constructed to site • Magat hydro scheme located 35 miles north Tailing Storage • Tailing solution identified adjacent to plant • Permanent valley fill model Accommodation • Senior and professional staff housed in Solano • Rostered operators camp based • Local employees – bussed to site daily Communications • Direct access to the Philippine communication network at Solano Water supply • Process water from local river systems • Potable water treated at site • Waste water – treated at site before release
November 2009 Resource • • • • • • Total resource currently 1.5Moz gold and 25.4Mlb molybdenum Resource reinterpreted by Mining Associates Pty in Q3 2009 Based on 650 holes for 92,898m, 430 more holes than Oct 2008 (32,153m) 56.66% of resource in M&I (37.75% previously) 107% increase in Measured resource Only 43% of resource remains within Inferred category
Resource Category Measured Indicated Inferred Total
Tonnes in millions 9.1 5.0 10.4 24.5
Gold (Au) g/t 1.92 1.81 1.94 1.91 Ounces in thousands 560 290 650 1,500
Molybdenum (Mo)* ppm 650 425 335 470 Pounds in millions 13.0 4.7 7.7 25.4
JORC classification of resource Resource Extension Inferred B Inferred A Indicated • Measured Known fault Possible fault running parallel to Malilibeg Approximate pit outline W-E section through resource • • Resource remains open to the north east Priority to convert Indicated to Measured and Inferred to Indicated Possible fault running parallel to Malilibeg
Mining Estimates • Head grade approx 1.91g/t Au, 470ppm Mo • 10% dilution applied, 10% mining loss allowed • Mining lower cut off grade 0.3g/t Au • Production - 100,000oz Au and 1Mlb Mo • Life of mine strip ratio 6 : 1 or less
Mining Methods • Open cut, truck and shovel operation • Ore transported over Sulong river to crusher • Waste rock stored in pit where possible • Tailings dam site within EP boundary
Gold and Molybdenum Recovery
Ore contains free and refractory gold and molybdenite Gold circuit demonstrated by extensive testwork • Gravity recovery – min 30% of gold • Flotation to gold rich concentrate • Biox® to oxidise sulphides • Carbon in leach to recover gold to doré • Cyanide destruct and tailing neutralisation • Tailings stored in purpose constructed facility Moly circuit • Method to recover moly dissolved during the BIOX® process being developed • Work underway to confirm the application of activated carbon or ion specific resin columns to recover moly to a saleable product • Circuit will be modular to the gold circuit Testwork undertaken by Metcon, Burnie, Ammtec, Optimet, Goldfields and SGS (SA) laboratories
Integrated piloting of process underway 10 tonnes of drill sample being piloted through: • Gravity and flotation • Biox® and neutralisation • CIL to recover gold • Molybdenum recovery • Cyanide destruction, tails settling, compaction and chemistry Goldfields managing pilot plant Undertaken in SGS’ laboratory in Johannesburg Reports March 2010
Flotation pilot plant Thiobacillus ferrooxidans bacteria
FTAA and Permitting
Outline of an FTAA: • • • • • • • • FTAA is a partnership between the mining company and Philippine Government Designed to attract foreign investment to the country while developing the resource in a responsible manner Valid for 25 years once granted, and can be renewed for a further 25 years Allows 100% foreign investment, which the alternative MPSA does not, simplifying operations in the future. Legality of the FTAA is well established and cannot be challenged – Supreme Court Final Judgment Investment of at least $50M on local infrastructure and development is required Any arbitration will be conducted under International Law at the Singapore International Arbitration Centre Also grants other rights over the area, such as access, water use, land occupation as and use of natural materials
Progress to date: • FTAA application process began in January 2008 • Endorsed by Secretary Atienza of the DENR to the Office of the President in March 2009 • Jonathan Beardsworth met HE President Arroyo to discuss progress in September 2009 • FTAA granted in full in October 2009 • Metals Ex awarded one of only 4 FTAAs granted to date
Community Support and Project Acceptability
The project has been endorsed by: • Municipal Mayor Aurelio S. Salunat • Municipal Council, Quezon, Nueva Vizcaya • Runruno Barangay Captain & Council • All 11 downstream Barangay Officials, Quezon, Nueva Vizcaya • Direct endorsement from the majority of the residents of Runruno • All Irrigators Association of Quezon, Nueva Vizcaya Awards and Commendations: • Mining Journal ‘Outstanding Achievement Award’ November 2007 An emotional Dr. Ernesto Mendoza and his wife • Special Award to Dr Ernesto Mendoza Nanette receive the “Special Award” from Michael • ‘Kablikat Skills Development Award’ – August 2008 Portillo at the Mines & Money Awards”, November 2007. • Presidential Mineral Industry Environment Award • November 2008 • Mining Forest Award • November 2008 • Community Development Initiative Award at Asia Mining Congress Sustainability Awards • March 2009
MGB Regional Director Albert Jacildo reported, during the visit of DENR Secretary Lito Atienza in October ‘07 to Nueva Viscaya, that “there are no issues raised against the project” MGB Regional Director Albert Jacildo also commended MTL for it’s outstanding community development and information programme
Education & Training • Provision of 21 teachers including school supplies and equipment • Introduction of Basic Literacy program • Run classes for 40 learners in partnership with Dept of Education Health & Nutrition • Feeding program for undernourished children • Provision of medical services and first aid training Skills Development • Welding course for 30 youths, now employed by Korean ship builder • IT scholarship program • Cosmetology and hair science • Rattan furniture making • Baking and culinary art • Basic electrician course • Meat & food processing • Lantern making using indigenous materials Infrastructure Progression • Constructed day care building & community training centre • Constructed & repaired 11 bridges in partnership with the Barangay • Provided potable water facilities and irrigation hoses to farmers Employment Generation • Provide direct employment for nearly 300 individuals • At least 106 students benefited from the summer job program
MGB assessment: “The MTL Runruno Gold Project at Barangay Runruno is a 95% socially acceptable project”
High level copper leakage zones located at top of mountain Possible continuation of mineralisation around edge of dome? Current resource area consisting of mineralised lenses dipping outward
Copper-gold porphyry target
In short, the Runruno gold deposit is remarkable in terms of its shared characteristics with other alkaline epithermal deposits, including Cripple Creek, Colorado, and its additional potential as MTL’s exploration activities continue and expand” “Significant potential for additional discoveries of mineralisation seems obvious” (Dr Eric Jensen PhD – February 2008) 15
Fault formed around edge of dome containing current deposit
Exploration Potential - Soil Geochemistry
Gold-in-soil anomalies scattered over the sampled area – similar to Cripple Creek’s historic mines Soil sampling ongoing Clear potential to expand on current resource base Only around 20% of the volcanic complex has been explored in detail
Further prospective areas yet to be explored
1.5Moz gold and 24.5Mlb moly
Three diamond holes were completed in late 2009, 700m SE of the most southerly known mineralisation The holes intersected a broad flat westerly dipping zone of alteration hosting anomalous gold and high grade molybdenum mineralisation in discrete lenses Style of mineralisation directly analogous to the Runruno deposit indicating potential of mineralised system Mineralisation closely related to a north striking fault structure running parallel 300m to 400m east of the Mallilibeg fault which is directly related to the Runruno deposit This fault structure has been traced to continue over 2,000m north of the three holes reported Further drilling to test this zone to be completed in 2010
World class gold project enhanced by: • • • • • • • Proven management FTAA permit in place Independently verified resource Strong potential to expand resource Valuable moly by-product Outstanding community relations and local support Excellent infrastructure
Currently trading at ~$35/oz
Chief Executive Officer
Former investment banker focused solely on the mining and metals sector with Standard Bank, and previously with Warrior International. Was head of the London office of Standard Bank’s Mining and Metals team with additional responsibility for Moscow and Shanghai. Over 35 years experience in the base and precious metals mining industry. Between 1997 and 2007 he was managing Director of Highlands Pacific, a company listed on the Australian Stock Exchange with operations in Papua New Guinea. He has experience of a wide range of management, operational, mine development and feasibility study roles. He successfully completed the feasibility studies on the Ramu, Frieda River and Kainantu projects, and subsequently oversaw the development, financing, construction and commissioning of the Kainantu gold mine. He is a Member of the Australasian Institute of Mining and Metallurgy and the Australian Institute of Geoscientists. Jonathan has forty years experience in banking including the position of CEO with Standard Chartered Merchant Bank Asia. Most recently at Standard Bank Plc he was responsible for the Bank`s activities in Europe, the Middle East and Central Asia. Jonathan had significant exposure to the Standard Bank`s mining finance, precious metals trading and hedging activities. He is also chairman of the remuneration committee and a member of the audit committee. Tim joined the Board as a Non-Executive Director following the January placing to Solomon Capital. Mr. Dean is a Director of Solomon Capital Limited, an Associate of the Institute of Chartered Accountants in England and Wales and has a Masters Degree in Engineering Science from Oxford University.
Executive Chairman & Project Director
Non Executive Director
Non Executive Director
Craig is a qualified engineer with over 15 years experience in the mining industry. He has spent much of his career working in South East Asian emerging markets. Most recently he worked as a consultant with Ausenco Ltd. Craig is responsible for the design and control of the infrastructure for the project. Zaldy is a senior geologist with more than 25 years experience in the mining and exploration industry in the Asia Pacific region (Philippines, Indonesia, Mongolia) and with vast experience in epithermal gold and porphyry copper style mineralization. Ernesto is a specialist in Community Relations with over 35 years experience in the mining industry in the Philippines. He was a key player in securing agreements with the indigenous tribes in one of the only two FTAAs signed to date; and was responsible for the approval of the first ECC under President Arroyo’s Administration. He was a senior executive with various Australian companies including WMC, Lafayette, and before that with Atlas Mining at its copper mines in Toledo City. In 2007 he was the recipient of the Special Award at the Mining Journal’s Outstanding Achievements Awards for his exceptional service to the community of Runruno in the aftermath of Typhoon Paeng. Damien has 27 years experience in mining, heavy civil construction, mineral & oil exploration and power generation. Experience in operational mines holding management positions on projects from green field through to production. Last position was manager of mining fleets for Australian Contract Mining operations in SE Asia on a project from bid process to full operation. Also has 16 years experience in Asia, including PNG, Singapore, Malaysia, and Cambodia and the past 11 years in the Philippines. Chevy is a qualified accountant and has been working in the exploration/drilling business since 1997, and before that 5 years with US subsidiary company Fritz Philippines Inc., a freight forwarding company, and 4 years with Fiesta Motor Philippines. Chevy has also worked in liaison with offshore consulting accountant firms in Sweden, Malaysia and Australia. She fills the roles of Company Secretary and Treasurer in the Philippine subsidiary companies Querry has 20 years experience in mineral exploration and mine geology, and was recently involved in bankable feasibility studies of Masbate Gold Project, and more recently in the Petaquilla Copper Project, Panama Central America as Supervising Geologist. He also worked for 3½ years on Mt Muro Gold Mine, Central Kalimantan, Indonesia. He has extensive experience ranging from grass root to advance development stages of exploration through to mining, including assisting in mine feasibility studies, mineral resource estimations, and underground grade control monitoring.
Finance & Administration
This action might not be possible to undo. Are you sure you want to continue?
We've moved you to where you read on your other device.
Get the full title to continue reading from where you left off, or restart the preview.