London Presentation March Graeme Sloan. Managing Director

Transcription

1 London Presentation March 2013 Graeme Sloan Managing Director 1

2 2 Disclaimer This Document comprises an institutional presentation (the Presentation ) which has been prepared by and is the sole responsibility of Herencia Resources Plc (the Company ), a company trading on AIM, the market operated by the London Stock Exchange plc ( AIM ). The content of this promotion has not been approved by an authorised person within the meaning of the Financial Services and Markets Act Reliance on this promotion for the purpose of engaging in any investment activity may expose an individual to a significant risk of losing all of the property or other assets invested. The information in this presentation is subject to updating, completion, revision, further verification and amendment without notice. 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3 3 Herencia - Corporate AIM listed (HER) Shares in issue 1 Share price 1 52wks high 52wks low Market Capitalisation (at 1.22p) 1 November ,698,870,370 ~1.2p ~2.1p ~0.6p ~ 20.3 million Major Shareholders Include 2 Nyrstar (world s largest zinc smelting company) RB Rowan Megeve Investments (Chilean Investment Fund) C Lobo At 14 March At 15 March 2013

4 4 The Board John Moore Chairman Graeme Sloan Managing Director Michael Bohm Non-Executive Director John Russell Non-Executive Director Greg McMillan Non-Executive Director Former Australian Minister for Defence and Minister for Industry. Previous directorships include Citinational Limited and Merrill Lynch (Aust) Pty Ltd. Mining Engineer with extensive corporate and operational experience. Previously MD of ASX listed Tanami Gold and Perseverance Gold. Mining Engineer with Project Development background. Currently a Non-Executive Director of ASX/TSX listed Perseus Mining. Over 30 years experience in Investment Banking with Bain and Deutsche Bank based in London. Chairman of Henderson Far East Income Limited. Chief Operating Officer of Nyrstar (world s biggest zinc smelting Company) with significant experience in the resources industry. Based in Zurich.

5 5 Santiago Management Team John Porter Cabezon General Manager Sergio Avendaño Paguanta Study Manager Antonio Valverde Senior Geologist Dario Portilla Commercial Manager Chilean Resource Industry Professional (Chemical Engineer), with over 20 years experience in mining operations and project management in South America. A specialist in Project Management with 21 years experience in resource Projects in Chile, Argentina, Peru, Brazil and Mexico. Geologist with over 20 years experience in mining and exploration projects. Worked extensively in Chile, Argentina, Brazil and Central America. Industrial Engineer with post-graduate training in business, administration, taxation, finance and insurance. Experience in Columbia, the US and Chile. Offices Santiago: Head Office Iquique: Perth: Field Office Corporate Office

6 6 Why Chile for Herencia? Chile Produces one-third of the world s copper A mature mining economy Extensive infrastructure and skilled work-force Outstanding geology Chile consistently ranks as best-performing economy in Latin America Corruption Perceptions Index 2011 (higher number the better) Chile 7.2 Uruguay 7.0 Botswana 6.1 Puerto Rico 5.6 Rwanda 5.0 Costa Rica 4.8 Source: Transparency International Are we witnessing the next Country for resource consolidation??? Major companies (Codelco) showing interest in JV s, provides further opportunity for Herencia???

7 7 Location, location, location... Herencia s Projects: 1. Paguanta Project (HER 70) Three key targets Silver-Zinc-Lead-Gold Patricia Feasibility Study near completion Significant potential to expand Plus two (2) copper-gold target 2. Guamanga Project (HER earning 51 Copper-Gold Target (IOCG) Three targets including Paulina 3. La Serena (HER 100) Copper-Gold Target Four target areas

8 JORC Mineral Resource Patricia Mineral Resource Estimate - June 2012 Measured Resource Indicated Resource Inferred Resource Total Resource Zinc Cut-off () Million Tonnes Zn Pb Au Million Tonnes Zn Pb Au Million Tonnes Zn Pb Au Million Tonnes Zn Pb Au Moz Silver Halo Mineral Resource Estimate - December 2012 Measured Resource Indicated Resource Inferred Resource Total Resource Silver Cut-off () Million Tonnes Zn Pb Au Million Tonnes Zn Pb Au Million Tonnes Zn Pb Au Million Tonnes Zn Pb Au Moz Jun 2012 and Dec 2012 Mineral Resource Estimates - Total Silver Resource Only Measured Resource Indicated Resource Inferred Resource Total Resource Cut-off Million Tonne s Zn Pb Au Million Tonnes Zn Pb Au Million Tonnes Zn Pb Au Million Tonnes Zn Pb Au Moz Zn Total Silver Mineral Resource Estimate 15.69Moz

9 9 Paguanta Project Location

10 10 Patricia Plan View of Lodes

11 11 Patricia Plan View Mine and Infrastructure

12 Long Section - Proposed Patricia Open Pit and Underground 12

13 Cross Section - Proposed Patricia Open Pit and Underground 13

14 14 Cross Section E

15 15 Patricia Excellent Location & Topography

16 16 Patricia Excellent Location & Topography

17 Paguanta Expansion Potential 1. Patricia Deposit At depth (deepest hole approx. 250m) Parallel lodes (south and north) Along strike (mainly to the east) 2. New IP Extension Recently completed new IP program IP anomaly increasing in size at depth Geophysicist to interpret IP anomaly increasing with depth -50m depth -100m depth -200m depth -250m depth

18 18 Scratching the Surface at Paguanta

19 19 19 Excellent Metallurgical Recoveries Two concentrate streams produced zinc concentrate (with some silver); and silver-lead concentrate Recoveries Zinc recovery in excess of 80 Silver recovery in excess of 90 as follows 72 to the silver-lead concentrate 20 to the zinc concentrate Lead recovery of 80 Silver ingots not an asset of the company Concentrate Grade Zinc concentrate in excess of 52 zinc Silver-lead concentrate grade ranging from 2,000 to 18,000 silver and 55 lead

20 20 Paguanta Feasibility Study Receipt of 'Draft' Study report from Golder 31 March 2013 Management review of the draft Golder report April 2013 Completion of Final Golder report (including technical appendices) April 2013 Feasibility Study Findings announced to the market May 2013 Lodgement of Mine Permit Application 2H2013 Funding and Concentrate Off-take negotiations 2H2013 Ongoing Engineering/Infrastructure/Supply/Design Works 2H2013 to 1H2014 Permitting Approval 2H2014 JV & Board Approval for Mine Development (Investment decision) 2H2014 TARGET Commence Mine Construction Mine Production and Concentrate Export 2H2014 1H2015 Note:- The above timetable is provisional & subject to Board/JV approvals, receipt of appropriate permit conditions & achievement of key project milestones (see RNS 19 March 2013).

21 21 What s next. Herencia s main focus, remains the Paguanta Project, but what s next? Next Tier Assets La Rosa Porphyry-Copper. Guamanga Herencia (earning 51)- IOCG target. La Serena (HER 100) IOCG target. Plus project development

22 22 La Rosa Porphyry Copper Target Large Alteration Zone Strong Chargeability Anomaly IKONOS satellite image and alteration Limit of intense argillic alteration with strong limonite staining Geophysics IP Chargeability - 200m RL Limit of intense argillic alteration with strong limonite staining Limit of phyllic alteration and quartz veining at surface Limit of phyllic alteration and quartz veining at surface Chargeability anomaly beneath alteration centre may indicate sulphide alteration Source Herencia Collated Data

23 23 Guamanga Prospect Figure:- Copper (RM Ltda, 2011) rock chip surface geochemistry. Figure:- Gold (RM Ltda, 2011) rock chip surface geochemistry. Gold (Au) correlates positively with the copper, as observed in IOCG deposits type. Molybdenum (Mo) reflects anomalous values with a maximum 22 ppm

24 Guamanga Prospect Stock-work development with abundant Oxide-Cu and Limonite Historic Bolaco mine (Cu-Au-Fe) located adjacent to the Guamanga tenements with widths on average +4 m and extending over 1 Km 24 20kms north of Guamanga is the Manto Verde mine, one of biggest Cu IOCG deposits in Chile Abundant Fe Ox (Limonite) and primary magnetite and hematite, evidence of a typical IOCG mineralized system. Cu mineralization associated with FeOx as breccia and stock-work Cu-Au-Fe veins mineralization (+4m wide extending over 1km) Cu, Au, Co Mo anomalies at surface and at depth

25 25 La Serena Prospect 100 Herencia owned Herencia controls of an extensive exploration licence package. Porphyry-copper target with other styles on mineralisation Located 50 km from La Serena and 400km NW of Santiago (approx. 50km to the coast). Excellent access via national highway and gravel road Low cost to explore and develop Low altitude and coastal terrain Close to infrastructure

26 26 La Serna Geology and Potential Located in the La Serena porphyry copper belt (part of the main Chilean porphyry copper belt). The package is highly prospective for leached cap, blanket style chalcocite copper mineralisation. First pass geological mapping and geochemical sampling on seven leached cap targets with a further six remaining for evaluation. Up to 1.2 Copper and 2.5 gold from surface sampling program. Three styles of mineralisation recognised Primary copper mineralisation Secondary exotic copper mineralisation Gold mineralisation (up to 2.5 Au in rock chip)

27 La Serna Prospect Rajo Area (Tonalites) Rajo Progressively altered Tonalite intrusion Puquios lookalike plus copper mineralisation 27 Figure:- Depicting La Serena Rajo Area Leached Caps

28 28 La Serna Prospect Zorrita A and B (Leached Caps) Zorrita A 1km x 1Km anomaly Intense alteration Small scale mining and smelting from Fault 500m east Zorrita B 1km x 1km anomaly Intense alteration Local Copper Oxides a surface

29 29 Wrapping up... Herencia offers a multi-commodity opportunity in a stable and geologically prospective region Paguanta Project Combination of Open Pit and Underground Feasibility Study draft due March 2013 Excellent metallurgical recoveries and high concentrate grades Significant expansion potential: All lodes open along strike and down dip New lodes identified Very large IP anomaly yet to be tested [3 key targets] Zinc prices are forecast to be strong for (supply constraints) Open pit Shallow high silver grades provide early cashflow potential and funding options Excellent 2nd tier potential projects at La Rosa, Guamanga and La Serena plus Project development opportunities

30 30 Herencia Resources, Creating Value Burgos 80 Of.1202, Las Condes, Santiago Chile +56 (2) Suite 7, 6 Richardson Street, West Perth 6005 PO Box 1904, West Perth 6872 Australia Phone: +61 (0) One America Square Crosswall, London, EC3N 2SG United Kingdom Phone: +44 (0)