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Investor Presentation
March 2012
Successful Exploration &
Discovery Company Underpinned
by Future Gold Production
These presentation slides (the “Slides”) do not comprise an admission document, listing particulars or a prospectus relating to Stratex International plc (“the Company”) or any subsidiary of the Company, do not constitute an offer or invitation to purchase or subscribe for any securities of the Company and should not be relied on in connection with a decision to purchase or subscribe for any such securities. The Slides and the accompanying verbal presentation do not constitute a recommendation regarding any decision to sell or purchase securities in the Company.
The Slides and the accompanying verbal presentation are confidential and the Slides are being supplied to you solely for your information and may not be reproduced or distributed to any other person or published, in whole or in part, for any purpose. No reliance may be placed for any purpose whatsoever on the information contained in the Slides and the accompanying verbal presentation or the completeness or accuracy of such information. No representation or warranty, express or implied, is given by or on behalf of the Company, Northland Capital Partners Limited or Renaissance Capital Limited or their respective shareholders, directors, officers or employees or any other person as to the accuracy or completeness of the information or opinions contained in the Slides and the accompanying verbal presentation, and no liability is accepted for any such information or opinions (including in the case of negligence, but excluding any liability for fraud). Any decision in connection with the proposed subscription for or purchase of shares in the Company must be made solely on the basis of the information contained in the Company’s Admission Document dated 22 December 2005 and any other publicly available information relating to the Company. Accordingly, neither the Company nor its directors makes any representations or warranty in respect of the contents of the Slides.
The Slides contain forward-looking statements, which relate, inter alia, to the Company’s proposed strategy, plans and objectives. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors beyond the control of the Company that could cause the actual performance or achievements of the Company to be materially different from such forward-looking statements. Accordingly, you should not rely on any forward-looking statements and the Company accepts no obligation to disseminate any updates or revisions to such forward-looking statements.
The Slides and their contents are directed only at persons who fall within the exemptions contained in Articles 19 and 49 of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (such as persons who are authorised or exempt persons within the meaning of the Financial Services and Markets Act 2000 and certain other persons having professional experience relating to investments, high net worth companies, unincorporated associations or partnerships and the trustees of high value trusts) and persons to whom distribution may otherwise lawfully be made. Any investment, investment activity or controlled activity to which the Slides relates is available only to such persons and will be engaged in only with such persons.
Persons of any other description, including those that do not have professional experience in matters relating to investments, should not rely or act upon the Slides.
The Slides should not be distributed, published, reproduced or otherwise made available in whole or in part by recipients to any other person and, in particular, should not be distributed to persons with an address in the United States of America, Australia, the Republic of South Africa, the Republic of Ireland, Japan or Canada or in any other country outside the United Kingdom where such distribution may lead to a breach of any legal or regulatory requirement. No securities commission or similar authority in Canada has in any way passed on the merits of the securities offered hereunder and any representation to the contrary is an offence. No document in relation to the Placing has been, or will be, lodged with, or registered by, The Australian Securities and Investments Commission, and no registration statement has been, or will be, filed with the Japanese Ministry of Finance in relation to the Placing or the Shares. Accordingly, subject to certain exceptions, the Shares may not, directly or indirectly, be offered or sold within Canada, Australia, Japan, South Africa or the Republic of Ireland or offered or sold to a resident of Canada, Australia, Japan, South Africa or the Republic of Ireland.
The Securities have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the “US Securities Act”) or with any securities regulatory authority of any state or other jurisdiction of the United States and may not be offered or sold within the United States or to, or for the account or benefit of, any US Person as that term is defined in Regulation S under the US Securities Act. The Company has not been registered and will not register under the United States Investment Company Act of 1940, as amended.
The Slides and their contents are confidential and should not unless otherwise agreed in writing by Northland Capital Partners Limited or Renaissance Capital Limited be copied, distributed, published or reproduced (in whole or in part) or disclosed by recipients to any other person.
Northland Capital Partners Limited and Renaissance Capital Limited, which are authorised and regulated by the Financial Services Authority, are advising the Company and no one else in relation to the proposed placing and admission of placing shares and will not be responsible to anyone other than the Company for providing the protections afforded to customers of Northland Capital Partners Limited or Renaissance Capital Limited. Any other person should seek their own independent legal, investment and tax advice as they see fit. Neither Northland Capital Partners Limited nor Renaissance Capital Limited has authorised the contents of, or any part of, the Slides and no representation or warranty, express or implied, is made by as to any of its contents.
March 2012 2
Disclaimer
Overview
AIM-quoted Exploration and Development company focussed on gold and base
metals in East Africa and West Africa, underpinned by a strong exploration portfolio
and two mine development projects in Turkey
Discovered to date: 2.26 Moz Au
7 Moz Ag
186 kt Cu
Major JV and equity partners include: AngloGold Ashanti, Antofagasta, Centamin,
Centerra, Teck, Thani Ashanti
JV investment to date of $13.7 M (with a further min of US$16.2 M [+/- US$20 M]
subject to earn-in)
Positive cash flow possible by mid/late-2013
3
Risk Management Strategy
Clear focus on discovering and exploiting mineral wealth
Multiple plays increase odds of success
Continuous monitoring and reviewing of investment strategies
JV partners ensure risk is shared and/or eliminated
Value created with minimal cash exposure
Growing reputation enables negotiation of increasingly better partnerships and potential
rewards
Production agreements with local companies realise value from smaller projects
Cash-flow
4
Asset Total Stratex
spend (£)
Total partner
spend (£)
Total Au (oz) Stratex retained
Au (oz)
Stratex cost per
retained oz (£)
Öksüt 509,424 2,063,273 1,047,872 523,936 (50%)
314,361 (30%)
0.97
1.62
Muratdere 631,628 - 204,300* 204,300 (100%)
61,290 (30%)
3.09
10.31
Altıntepe 850,854 333,333 593,100** 593,100 (100%)
266,895 (45%)
1.43
3.19
TOTAL 1st earn-in 1,321,336 1.50
2nd earn-in 642,546 3.10
Creating Value
5
** Resource at Altıntepe includes 3.18 Moz Ag (not included)
** Resource at Muratdere includes 186 kt Cu, 3.9 Moz Ag and 6,390 t Mo (not included)
Cost-effective discovery
6
Our Interests
* Portfolio in important West African
region recently acquired via Silvrex Ltd
+ 49.5% passive
holding in new
industrial minerals
company
Rift
Resources
+ Eight exploration
projects
+ Six exploration and
two development
projects
+ Two exploration
projects*
7
East Africa Operations
- Afar Project,
incl Megenta
Blackrock
Shehagne
Under-explored with major gold and
base metal potential
Mining-friendly regime in Ethiopia –
Corporate tax 30%; royalties 5-8%; tax
free importation; transparent code
exploration thro’ to mining;
government 5% free-carried interest
Growing mining interest – BHP Billiton,
Centamin, Nyota Minerals, Allana
Potash, MidRoc, Tigray Resources,
Ethiopian Potash Corp
Stratex first-mover advantage in
discovering new gold province in Afar
Depression of Ethiopia
30
km
250 m
?
Potential blind extensions under wadi gravels
100%-owned licence - 299 sq km over four extensive areas of low -sulphidation mineralisation
>30 km veining identified including five substantial vein systems outcropping at Black Water Zone –
Stanley, Nesbitt, Oasis, Theodore and Baker
5,000 m drill programme currently underway
8
Blackrock
Black Water Zone – aerial photograph
E BAKER
THEODORE
OASIS
NESBITT
STANLEY
60.4 g/t Au
34.6 g/t Au
?
38.3 g/t Au
9
2,552 m of 5,000 m programme drilled to date over 14
holes. Best results include:
Veins thicken significantly to the north, e.g. 5.35 m
vein in BW-DD-8 at 99.75 m depth – awaiting results
‘Blind’ quartz vein zone identified at 84 m under
gravels in BW-DD-16 – over 2,000 m of blind veins
interpreted for Black Water alone
Future drilling to test high grade outcrops on other
structures, including Baker, Oasis and Stanley
Hole Length (m) Au (g/t)
BW-DD-001 0.70 0.48
BW-DD-002 2.41 0.29
BW-DD-003 4.65 0.51
including 1.45 0.67
BW-DD-009 0.95 0.81
Black Water drilling to date
Baker
18.7 g/t Au
Oasis
Nesbitt
Stanley
60.1 g/t Au
7.8 & 5.0 g/t Au
6.1m @ 1.0 g/t Au
38.3 g/t Au
34.8 g/t Au
1.2m @ 5.7 g/t Au
BW-DD-16
250 m
First 11 licences acquired in Afar district, incl.
Megenta
Thani Ashanti earning-in to initial 51% through
US$3 M exploration funding over 2 years
3,000 m drill programme has confirmed Megenta
as part of new 3 km gold system –
MG-DD-12 – 3.25 m @ 4.49 g/t Au incl. 0.70
m @ 19.5 g/t
MG–DD-10 - 43.20m @ 0.67 g/t Au incl. 2.9
m @ 3.56 g/t Au
MG-DD- 09 - 44.30 m @ 0.54 g/t Au incl. 2.1
m @ 1.67 g/t Au
Follow-up drilling programme anticipated in 2012
10
Afar Project
Banded quartz vein in drill core
Cerro Vanguardia
>6.0 M oz Au
Cerro Negro*
3.1 M oz Au
Expanded to 5.1 M oz Au
Manatial Espejo
1.2 M oz Au equiv.
Mina Martha
22 M oz Ag equiv.
San Jose
1.99 M oz Au equiv.
Las Calandrias
Cerro Moro
2.4 M oz Au equiv.
(131,000 m drilled+)
Cap Oeste
Geological Setting:
Rifting – same as Afar
Bimodal rhyolites & basalts - Afar
Rhyolite domes – defined in Afar
** Goldcorp acquired Cerro Negro for C$3.6 Billion = c.$1,000/oz **
Source: Mariana Resources
11
Deseado Massif Comparison
Distance Megenta to Blackrock
Ethiopia & Djibouti
12
Additional East African Assets
ARABIAN-NUBIAN
SHIELD
Prospective for gold
and base metal
deposits
0 250 km
After Corti, 2009
AFAR
DEPRESSION
Potential for
bonanza gold
grades
Further drill-advanced project in Arabian Nubian Shield - Shehagne
Five further early-stage exploration projects
0 250 km
West Africa
13
200 km
West Africa Licences
Dalafin licence covers 636 sq km in prospective Birimian Kédougou-Kenieba gold belt
Four early-stage exploration licences over 1,985 sq km in Mauritania
Nine million-plus oz deposits discovered to date in Kédougou-Kenieba gold belt
14
6 early and mid-stage exploration
prospects – drilling programmes
anticipated at 4 projects in 2012
2 resource development projects with
first gold pour anticipated 2013
New copper exploration initiative with
Antofagasta Minerals
Turkish Operations
Hasançelebi
Ӧksüt
Altunhisar
Muratdere
Inlice
Altıntepe
15
+1Moz Gold Discovery– Öksüt, Turkey
High-sulphidation gold discovery in central
Turkey, currently being funded by a Canadian
major JV partner Centerra B.V:
50% vested interest for US$3 M
Opted to earn additional 20% for a further
US$3 M
Stratex interest of 50% free carried for
next US$3 M expenditure over next 2
years
Total resource 1,047,872 oz gold, incl.
probable heap-leachable resource of 0.56 Moz
oxide gold + 0.40 Moz sulphide gold
Scope for further resource upgrade with drilling
programme planned by Centerra in Q2 2012
* rock-chip sampling result prior to drilling (Cross-section of Ortaçam North Zone in Appendix)
289,729 oz Au
758,144 oz Au
Development Assets:
Inlice Project:
Stratex 45% interest, JV with NTF 55%, $2 M to take to feasibility
study (completed)
JORC Reserve: 59.6 Koz Au: Resource 69 Koz Au (oxide) plus
164 Koz Au (sulphide)
Production targeted 2013 – provisionally 15,000-20,000 oz per
annum
Altintepe Project:
Stratex 100%, with Bahar Mining completing feasibility for 55%
and carrying all pre–production costs
In-house JORC Resource: 491 Koz Au (oxide + transition), 101 Koz
Au (sulphide), 2.37 Moz Ag (oxide), 813 Koz Ag (sulphide)
Production provisionally targeted for 2013 – 30,000 oz per annum -
subject to feasibility
Turkish Development Assets
16
NTF – HEP dam
construction
Muratdere porphyry copper-gold-molybdenum project, 250 km west of Ankara –
186,000 t Cu + 204,296 oz Au + 3.9 Moz Ag + 6,390 t Mo + 17.6 t Re identified
Turkish investor DD for $1.7 M for 51%; + $0.5M & complete feasibility for 70%
Due-diligence to be completed April 2012
Hasançelebi gold project, 500 km SE of Ankara –
Teck funding exploration to US$2 M for 51% interest
Review of 2011 exploration data on-going
Altunhisar gold project, 260 km SE of Ankara –
Centerra funding exploration to US$1.5 M for 51% interest
Drilling anticipated 2012
Antofagasta strategic alliance to explore for copper deposits –
Antofagasta funding initial US$1 million for 16 month target-generation and exploration
programme
Target prioritisation and possible licence acquisitions in 2012
Additional Turkish Assets
17
18
Turkey
Öksüt - on-going drilling to increase resource base, funded by Centerra (US$3 M to earn 70%)
Altıntepe – accelerated development (partner on site and funding to production)
Inlice – complete EIS, financing, development, production mid-2013 (45% Stratex)
Muratdere - post-due-diligence, partner to pay US$1.7 M (51 %) & complete feasibility (70 %)
Ethiopia
On-going drilling to identify bonanza zones at Blackrock
Thani Ashanti funding second-phase exploration & drill programme at Megenta to test system at depth
(US$3 M to earn 51%)
Identification and acquisition of new mineralised systems in Afar
West Africa
Focused exploration for discovery in Senegal & Mauritania
Valuation Drivers 2012
19
Focused exploration and development business
Experienced management team
Clear strategy to minimise risk and extract maximum potential
rewards
Multiple plays
Major JV partners
Local production agreements
First-mover advantage in Afar (Ethiopia/Djibouti)
Tangible success
Two gold-development projects in Turkey
Significant +1M oz Öksüt gold discovery in Turkey
New gold district discovery in Afar – incl. Blackrock
Acquisition of West African portfolio
Conclusion
Share Data AIM-Listed (STI)
19th March 2012
Shares in issue 363.15 M
Fully diluted shares 384.19 M
Share price 8.38 p
52 High 10.63 p
52 Low 6.63 p
Market cap. £29.39 M
Cash Position £1.70 M
(as at end Feb)
Key Shareholders
ANGLOGOLD ASHANTI 11.51 %
TECK RESOURCES LIMITED 9.84 %
FOREST NOMINEES 7.12 %
GRAHAM N J 6.22 %
RICHMOND CAPITAL LLP 5.00 %
DIRECTORS 6.07 %
ANTOFAGASTA 2.85 %
THANI ASHANTI 2.20 %
Nomad – Grant Thornton
Broker – Northland Capital
Co-broker – Fox-Davies Capital
20
Corporate Data
Christopher Hall has over 39 years of wide ranging experience in the mining sector. He is currently the in-house mining
adviser to Grant Thornton LLP, principally assisting the Capital Markets team with clients listed on London Stock Exchange
and the AIM market. Christopher joined Stratex in February 2008 as Non-Executive Director.
22
Christopher Hall
Non- Executive
Chairman
Thirty-seven years of experience as a professional economic geologist in exploration, mining, and applied academic posts
and has particular expertise in the genesis and exploration of gold deposits, having worked in Europe, Central Asia, North
and South America and throughout Africa.
Bob Foster
Chief Executive Officer
David has 30 years of experience in the exploration sector and has worked on and assessed exploration projects and
mines in over 50 countries including Turkey, where he worked for four and half years. He also worked as Consultant
Geologist for Minorco South America, where he subsequently became Exploration Manager for AngloGold in 1999.
David J. Hall
Executive Director
(East Africa)
A Turkish national with a career spanning 30 years dedicated to mineral exploration and mining geology throughout Turkey.
Bahri commenced his career in1980 with the government's General Directorate of Mineral Research and Exploration. More
recently he was Exploration Manager Turkey for Dardanel Madencilik, the Turkish subsidiary of major Canadian mining
company Inco Ltd before joining Stratex in 2005.
Bahri Yildiz
General Manager, Turkey
A professional economic geologist for over 50 years, Franco has worked in over 100 countries for governments,
international organizations, multinationals and as a consultant, mainly in mineral exploration, country potential assessment,
negotiations and also on natural risks and themes of international cooperation.
Franco Maranzana
General Manager,
Djibouti
Perry qualified as a Chartered Accountant in 1971, training with Spain Brothers & Co. and KPMG. During his 40-year
professional career he has worked in senior management with British Oxygen Ltd, Rank Xerox Ltd, and Intermec
International Inc. before becoming an independent consultant in 2000.
Perry Ashwood
Chief Financial Officer
Management
With over 40 years of experience, John has been involved in infrastructure and mining development projects, at various
levels up to Project Director, as well as restructuring projects in Africa, Europe, the Former Soviet Union, the Middle East,
and the Indian sub-continent. Since the 1990’s he has also been Director of a number of consultancy companies and is
currently an advisor to UNCTAD.
John Cole-Baker
Executive Director
(West Africa)
2006:
IPO £1.87 M @ 5 p; (Teck founder)
Inlice discovered
£1.175 M @ 7.5 p; institutional placing
2007:
£7 M @ 9 p; institutional placing
Altintepe acquisition
2008:
Öksüt gold discovery
2009:
Centerra JV on Öksüt
Expansion into Ethiopia & first epithermal gold discovery in Afar rift valley
2010:
£1.3 M @ 3.5 p; institutional placing
JV with gold-major Thani Ashanti on ‘Afar Project’
2011:
Blackrock discovery - camp established and drilling starts
AngloGold in for £3 M @ 7.72 p at company-level – at premium
2012:
Öksüt resource exceeds 1 Moz
Key Events
23
24
Blackrock
MAJOR DISCOVERY
Outcropping
Deeper in system than Megenta
Critical boiling zone textures
5,000 metres drill programme
currently underway
Theodore structure Oasis structure Nesbitt structure
1 2 3 4 5
Individual veins over 50 m.
Silica-replaced bladed calcite
25
Low-sulphidation systems - hitting the shoots
SHOOT IS 105,000 t GRADING 27.2 g/t Au and 2,614 g/t Ag - =267,000 oz Au Eq. 151 holes for 37,562 metres
NB: BONANZA-GRADE
SHOOTS EASILY
MISSED
>900 m with no
significant values
<2 G/M <2 G/M
Extorre’s Cerro Moro Project - Zoe Discovery: projected long section
Source: http://www.extorre.com/projects/cerro_moro.php
26
Shehagne - Centamin JV
SEA vested at 60% following £350,000 expenditure
Channel chip sampling has identified large, low grade gold
target – potentially bulk-mineable
84 metres grading 1.04 g/t Au including 28 m grading 1.86 g/t Au
104 metres grading 0.77 g/t Au including 11 m grading 4.39 g/t Au
Trench
Pre-drilling projection:
Öksüt – Ortaçam North
28
Best intersection to date: ODD-55: 268.00 m @ 2.34 g/t Au
Open to North, East and at depth
NTF – HEP dam
construction
29
Near-Term Production in Turkey
Inlice Project Altıntepe Project
JORC reserve 59,600 oz Au @ 2.36 g/t N/A
JORC resource 69,324 oz Au @ 2.29 g/t in oxide;
164,000 oz Au @ 1.78 g/t in
sulphide
491,426 oz Au (oxide + transition);
101,695 oz Au (sulphide);
2.37 M oz Ag (oxide);
812,819 oz Ag (sulphide)
Stripping ratio 0.76t waste to 1t ore N/A
Cash operating
costs
US$ 412 N/A
NPV (10) US$ 6.3 M (@ US$1,100 oz Au);
US$ 14.6 M (@ US$1,400 oz Au);
N/A
After-tax IRR 37% @ US$1,100 oz Au;
48% @ US$1,200/oz Au
N/A
Targeted
production
2013 2013
Stratex interest 45% 100% (45%)
JV partner,
funding
NTF - US$ 2M feasibility study
(completed)
EIS approval awaited
Bahar Mining completing feasibility
for 55% and carrying all pre-
production costs
30
Stratex 49.5% passive holding in new industrial minerals company
Stratex licence in highly prospective potash area sold to
Rift Resources plc, as non-core business
£250k raised to explore the licence and add to portfolio
Rift Resources
Christopher Hall
Non-Executive Chairman
Bob Foster
CEO
Perry Ashwood
CFO and Company Secretary
David Hall
Executive Director (East Africa)
John Cole-Baker
Executive Director (West Africa)
Claire Bay
Corporate Geologist
31
Stratex International plc
180 Piccadilly
London
W1J 9HF
Tel: +44 (0)23 8065 1649
Fax: +44 (0)23 8062 0022
www.stratexinternational.com
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