Leading Mining Resurgence in France July 2016

Transcription

1 Leading Mining Resurgence in France July 2016 La Porte-aux-Moines Greg Jones Managing Director

2 Disclaimer and Competent Persons Statement This presentation contains forward looking statements that are subject to risk factors associated with mineral resource businesses. It is believed that the expectations reflected in these statements are reasonable but they may be affected by a variety of variables and changes in underlying assumptions which could cause actual results or trends to differ materially, including but not limited to: price fluctuations, actual demand, currency fluctuations, drilling and production results, reserve estimates, loss of market, industry competition, environmental risks, physical risks, legislative, fiscal and regulatory developments, local community obstruction, economic and financial market conditions in various countries and regions, political risks, project delay or advancement, approvals and cost estimates. Nothing in this material should be construed as the solicitation of an offer to buy or sell Variscan securities. Compliance Statement (JORC 2012) This presentation incorporates by reference the ASX announcement relating to the Porte-aux-Moines Mineral Resource estimation which was released to the market on 20 June The Announcement is available from the Company s website at or from the ASX. It contains the Competent Persons statements and the JORC Table 1 relating to the Mineral Resource estimation. The information in this presentation that relates to Exploration Results is based on information compiled by Greg Jones, BSc (Hons), who is a member of the Australasian Institute of Mining and Metallurgy. Mr Jones is a Director of Variscan Mines Ltd and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Jones consents to the inclusion in this report of the information compiled by him in the form and context in which it appears. 2

3 Company Snapshot Only ASX company focused on minerals rich, mainland France Most active explorer in the country Capital Structure Shares (million) at 30 June 519 Options (million) at 30 June 188 $ in bank at 30 June ~$2.5 million Advanced projects only Six granted tenements High grade zinc-rich deposit with genuine mine potential Deep in-country experience and expertise Applying modern techniques in underexplored First World jurisdiction Share Price Market Cap Value of Investments 1.8 cents $9.3 million ~$1.5 million 3

4 Board & Management Pat Elliott Chairman Greg Jones Managing Director Jack Testard Executive Director France Dr Michel Bonnemaison CEO Variscan Mines SAS +35 years experience in corporate management and investment with former roles at Morgan Grenfell Aust. and Natcorp Investments Active in early stage venture capital investor with emphasis on resources Geologist with +35 years of exploration &operational experience. Held senior positions in WMC, Sino Gold, CBH Credited with discovering the Blair nickel and Orion gold deposits Former senior manager of BRGM (French geological survey) Current president of French Chamber of Mines and Treasurer of the Federation of Minerals and Non Ferrous Metals French geologist with +40 years experience French geologist with 35-year working history with BRGM including Deputy Head of Mineral Resources Division Recognised expert on gold deposits in France. Non-Executive Directors Company Secretary Kwan Chee Seng Dr Foo Fat Kah Michael Moore Ivo Polovineo 4

5 Recent Progress $2.5M raised in June 2016 Secured cornerstone institutional investor Acorn Capital Three new licences granted Mineral Resource estimate at Porte-aux-Moines 2.2Mt grading 6.0% zinc, 1.3% lead, 0.8% copper, 80.6 g/t silver and 0.9 g/t gold First VTEM survey in France - 14 massive sulphide targets identified at Merléac Two VMS corridors with seven centres of mineralisation outlined at Merléac Two strong gold targets defined at St Pierre ready for drilling Very active strong news flow 5

6 Why France? Strong mineral endowment Uranium - formerly one of Europe s largest producers Gold major deposits in Salsigne and Limoges regions Tin - Abbaretz similarities to Cornwall Copper-lead-zinc numerous MVT, Sedex and VMS deposits Excellent prospectivity no significant mining or exploration for decades Well defined, workable mining laws Government committed to reactivating mining sector Excellent infrastructure and available skilled workforce Competitive cost structures e.g. power Private sector investment strongly encouraged Australia seen as a favourable partner 6

7 7 Minerals Rich Europe

8 8 Project Portfolio

9 Project Portfolio Project Area Commodity Significant High grades Pre-JORC (km 2 ) old mines in exploration Resource Merléac 411 Zn, Pb, Cu, Ag, Au Silfiac 173 Zn, Pb, Ag, Ge Tennie 205 Zn, Pb, Cu, Au Beaulieu 278 Sn, W Loc Envel 336 W, Cu St Pierre 386 Au Applications 42 W, Cu, Au 166 W High Quality Advanced Assets 9

10 Merléac 411km 2 over massive sulphide (VMS) region Advanced, high grade, Zn-Pb-Cu-Ag-Au deposit: Porte-aux-Moines (PAM) Seven VMS prospects in two corridors over strike length of 22km 10

11 Porte-aux-Moines Extensive work by BRGM from 1975 to ,843m surface core drilling 2,830m underground core drilling 2km underground development Value of work completed to date >A$10M 11

12 12 Porte-aux-Moines

13 Porte-aux-Moines Mineral Resource 2.2Mt grading 6.0% zinc, 1.3% lead, 0.8% copper, 80.6g/t silver and 0.9g/t gold Open along strike 1.1Mt at higher grades in Main Zone thickened lens Averages 16.3m thick Drilling planned to commence in September quarter 13

14 PAM Mineral Resource High grade, high $ value Top grade quartile against other zinc-rich deposits Similar to other Australian mines such as Hera and Jaguar Tonnage expansion to move towards feasibility studies Targeting 3.5Mt 14 Grade is King Source Terra Studio The zinc equivalent is based on Zn (US$1,800 per tonne), Pb (US$1,800 per tonne), Cu (US$5,600 per tonne), Ag (US$15 per ounce) and Au (US$1,150 per ounce). The zinc equivalent calculation represents the total metal value for each metal, multiplied by a price based conversion factor and estimated metal recoveries (Zn 90%, Pb 85%, Cu 80%, Ag 60%, Au 70%), summed and expressed in equivalent zinc percent per tonne. The zinc equivalent calculation is intended as an indicative value only.

15 Regional Exploration Two trends over 22km Seven confirmed VMS prospects Numerous VTEM anomalies requiring follow up Typical VMS cluster? Former drilling returned ore grade intersections Les Essarts: % zinc, 3.0% lead, 0.2% copper from 80 metres in LSS2, and % zinc, 2.7% lead and 0.3% copper from 66 metres in LSS3 15 Outstanding Regional Potential

16 Zinc Price and Supply Unsustainable zinc price to maintain production levels Significant recent mine closures creating global supply shortage Glencore: -500Kt Nyrstar: -50Kt MMG: Century -500Kt Vendanta: Lisheen -160Kt Falling warehouse stocks Decreasing smelter charges Supply deficit forecast Goldman Sachs (May 16) - Zinc has by far the most bullish supply-side dynamic Source Terra Studio 16 Strong price outlook

17 St Pierre Gold Project Covers France s third largest goldfield Produced 334,000oz Au to 1952 Average production grade: 12g/t Au Max depth of 170m over a strike length of 1.6km Old drilling - shallow, thick, un-mined gold zones 17

18 18 St Pierre Exploration

19 19 St Pierre Exploration

20 Variscan Highlights First Mover advantage in France project selection with little competition Six granted tenements Advanced, high grade zinc-rich deposit PAM genuine mine potential Demonstrated exploration upside at PAM and regionally Strong zinc upside supply shortfall and price increase forecast High quality gold targets at St Pierre Excellent prospects ready for drilling in other licences NEXT STEPS IN COMING MONTHS Drill PAM zinc deposit Drill St Pierre key gold prospects Work up zinc prospects at Merléac for drilling to expand resource Additional licence applications in progress one licence to be granted shortly? 20 Unique resource investment

21 QUESTIONS? VARISCAN MINES LIMITED ABN: Level 1, 80 Chandos Street, St Leonards NSW 2065 Postal: PO Box 956, Crows Nest NSW 1585 Telephone: Facsimile: info@variscan.com.au Website: ASX Code: VAR 21