ZARUMA RESOURCES: LUZ DEL COBRE COPPER PROJECT

Transcription

1 ZARUMA RESOURCES: LUZ DEL COBRE COPPER PROJECT

2 Luz del Cobre Presentation: Table of Contents Location and Land Position Slide 1 Project Summary Slide 2 Key Economic Projections Slide 3 Geological Setting Slide 4 Open Pit Resources Slide 5 Project Lay-Out Slide 6 Production and Cash Flow Projection Slide 7 Permitting and Next Steps Slide 8 Exploration Potential close to Luz del Cobre Slide 9 Regional Copper Exploration Potential Slide 10 Contacts Slide 11 This presentation may contain or imply forward-looking statements which are typically preceded by, followed by or include the words believes, expects, anticipates, estimates, intends, plans or similar expressions. Forward-looking statements are not guarantees of future performance as they involve risks, uncertainties and assumptions, including, but not limited to securing additional funding to continue its development programs. Zaruma Resources Inc./ Minerales Libertad, SA de CV: Luz del Cobre, July 2007

3 Location and Land Position 170 km East of Hermosillo, Sonora, Mexico. 3 hours drive from Internatl.Airport. 11,200 hectares Luz del Cobre Good infrastructure 100% Owned by wholly owned subsidiary Minerales Libertad SA de CV of Zaruma Resources Inc. Zaruma Resources Inc. / Minerales Libertad, SA de CV, Luz del Cobre, July 2007 Slide 1

4 Luz del Cobre Copper Project Summary Open-pit, heap-leach, solvent extraction, electrowinning copper operation in mining i friendly Statet of Sonora, Mexico to produce 99%+ pure copper cathodes. Small scale, stand alone, robust copper project with additional exploration potential in close-by oxide copper targets to extent mine life. Independent Technical Report by M3 Engineering & Technology (Tucson) and P&E Mining Consultants (Brampton) filed in November 2006, additional test work by Zaruma during past 5 months confirmed the attractive project economics. Fully permitted Part of the San Antonio land holdings which show significant further copper exploration potential. Zaruma Resources Inc./ Minerales Libertad, SA de CV: Luz del Cobre, July 2007 Slide 2

5 Luz del Cobre: Key Economic Projections Copper Production: 6,000 to 8,000 tonnes per annum; 33,000 tonnes or 72 million pounds over life of mine of 5 years. Average annual cash flow at US$ 2.51/lbs Copper: US$ 16.5 Million. Accumulated total cash flow over life of mine: US$ 80 million. Investment: US$ 25 million. Projected production costs: US$ 0.95 per pound of copper. Net Present Value (NPV) at 10% Discount: US$47 million. Socio-economic impact: 100 direct jobs. Zaruma Resources Inc./ Minerales Libertad, SA de CV: Luz del Cobre, July 2007 Slide 3

6 Geological Setting Luz del Cobre Breccia-hosted, supergene manto-type copper mineralization in a porphyry-driven IOCG (iron-oxide-copper-gold) oxide system. Zaruma Resources Inc. / Minerales Libertad, SA de CV, Luz del Cobre July 2007 Slide 4

7 Open Pit Resources Oxide Ore Mixed Ore Proven and Probable Reserves Metric Tonnes Mined Grade %Cu Cut-Off Grade %Cu Contained Cu lbs x 10 6 Oxide Ore 1,038, Mixed Sulphide/Oxide Ore 2,414, Mixed Ore North Pit lower level 835, Total 4,287,000, (at copper price of US$ 2.51/lb) Zaruma Resources Inc./ Minerales Libertad, SA de CV: Luz de Cobre July 2007 Slide 5

8 Project Lay Out PLS: Copper Pregnant Leach Solution, SX-EW: Solvent Extraction-Electrowinning Copper Cathode Plant Zaruma Resources Inc./ Minerales Libertad, SA de CV): Luz del Cobre July 2007 Slide 6

9 Luz del Cobre Cash Flow & Production Projection Zaruma Resources Inc. / Minerales Libertad, SA de CV: Luz del Cobre July 2007 Slide 7

10 Luz del Cobre Permitting and Next Steps Major permits in place: Environmental Impact Manifest and Risk Study approved. Change of use of land permitted Agreement with land owners (Ejido)signed, notarized, approved by authorities and lease paid over life of mine Positive hydrogeological study and water rights to ground water Electricity supply offer by CFE utilities received Conclusion of financing with Glencore International AG Award of EPCM contract to build project (expected: August 2007) Expected construction time: 12 to 15 months Zaruma Resources Inc./Minerales Libertad, SA de CV: Luz del Cobre July 2007 Slide 8

11 Significant Exploration Potential close to Luz del Cobre Luz del Cobre Open Pit Trion Oxide Copper Targets Zaruma Resources Inc. / Minerales Libertad SA de CV: Luz del Cobre July 2007 Slide 10

12 Regional Copper Potential Highly prospective geological setting with features characteristic for an iron-oxide-copper-gold (IOCG) system and related mineralization. Potential to host major copper and gold deposits. Little explored major copper targets:carrizo- Sapo area. Good neighborhood: Cerro Verde Target (San Javier) Zaruma Resources Inc./ Minerales Libertad, SA de CV: Luz del Cobre July 2007 Slide 11

13 Contacts Minerales Libertad SA de CV. Avenida Campeche No 140 con Cuernavaca Col: San Benito Hermosillo, Sonora, Mexico Tel.:/ Fax Thomas Utter: President Mobile Alfredo Barraza: Gerente \ Mobile Zaruma Resources Inc Head Office 20 Toronto Street (12th Floor), Toronto ON, M5C 2B8, Canada Tel.: , Fax: thomas.utter@zaruma.com Thomas Utter: President and CEO Frank van de Water: CFO Zaruma Resources Inc. / Minerales Libertad, SA de CV, July 2007 Slide 12