NunaMinerals A/S. Update October 2008

Transcription

1 NunaMinerals A/S Update October 2008

2 Forward-looking statements The forward-looking statements contained in this presentation, including descriptions of NunaMinerals development and exploration projects, its strategy and future plans and anticipated revenues and earnings in connection therewith reflect the current views of NunaMinerals with respect to future events and are subject to certain risks, uncertainties and assumptions. Many factors could cause the actual results, performance and achievements of NunaMinerals to be materially different from any future results, performances, achievements and expectations that may be expressed or implied by such forward-looking statements. Such factors include, among others, risks related to development, exploration and mining activities, uncertainties related to the performance and outcome of NunaMinerals development and exploration projects, including risks of delays or failures, price decreases, currency exchange rate fluctuations and changes in licence terms, legislation and administrative practices as well as competitive risks and other unforeseen factors. Should one or more of these risks or uncertainties materialize, or should the underlying assumptions prove incorrect, actual results may vary materially from the forward-looking statements described in this presentation.

3 3 Management of the company Ole Christiansen, CEO Geologist (M.Sc.), Aarhus University, Denmark 20 year background in mineral exploration and mining CEO of NunaMinerals since 1999 Co-responsible for the discovery and development of the Nalunaq gold mine and the Fiskefjord olivine mine Martin Ben Shalmi, CFO MSc Econ (cand.polit), University of Copenhagen, Denmark MBA student, Henley Management Collage CFO in NunaMinerals since 2005 Parnuuna Papis, COO COO in NunaMinerals since 2008 Responsible for coordinating logistics and operations Experienced management team with extensive local knowledge and proven track record

4 4 Agenda I. Introduction II. Greenland mining and exploration environment III. Portfolio of exploration licenses IV. Expectations V. Sum-up Ole Christiansen, CEO Tel.: Mob Martin Ben Shalmi, CFO Tel.: Mob

5 5 I. Introduction Key facts about NunaMinerals Leading mineral exploration company in Greenland 39 prospects in 15 exclusive exploration licenses Primary focus on gold but also activities within nickel, tungsten and platinum Involved in the discovery and development of Nalunaq Gold Mine Headquartered in Nuuk, Greenland New domicile comprising offices, warehouse, laboratory and employee accommodation Partnerships with international majors Rio Tinto and Implats 12 full-time employees Up to 40 employees in the exploration season 1998 Founded Listing on Dansk AMP NGM in commercial mining Divestment of NGM Rio Tinto partnership Implats joint-venture Listing on OMX First mover with promising license portfolio, proven track record and blue chip partnerships

6 6 I. Introduction Ownership structure Listed on OMX Copenhagen since June 2008 From listed on the European regulated marked Dansk AMP In June 2008 new shares were offered resulting in net proceeds of DKK 94.7m Total funds 30/9-08: DKK 75.0m Capital will ensure continuation of exploration activities until at least the end of 2009 Others 25,5% Gov. of Greenland 37,1% Shareholder base comprises shareholders Free float: 25,5% M cap of DKK 235m (@ DKK 220 per share) LD 17,9% Rudersdal 19,5% Successful listing and share offer on OMX in June 2008

7 7 I. Introduction Business model Identification of potentially interesting projects Own development of projects Divestments or partnerships (ownership: 35-40% in partnerships) Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 Phase 6 Grass-root Prospecting Continuity Resource Feasibility Mining Core projects (primarily gold) Partnerships Non-core projects Partnerships In-house identification and development of projects through the first phases before entering partnerships

8 8 I. Introduction Portfolio of exploration licenses License Prospect Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 Phase 6 Grassroot Prospecting Continuity Ressource Feasibility Name Name Mineral Mining Phase Phase Phase Phase Phase Phase Core projects Ymer Ø Margeries Dal Tungsten, antimony, gold Storø Qingaaq Gold Storø Qussuk Gold-copper Giesecke Giesecke Nickel, copper Vagar Qoorormiut Gold Vagar Niaqornaarsuk Gold Vagar Kirkespirdalen Gold Vagar Lake 410 bugt Gold Ymer Ø Noa Dal Gold, arsenic, tungsten Storø Aappalaartoq Gold Maniitsoq East Maniitsoq West Nickel, copper Kitak Kitak Nickel, copper Ammassalik Ammassalik Nickel, copper Current partnership projects Fiskefjord Amikoq Platinum Hugin Rest Hugin New discoveries Other projects Isua Baseline Target Base metals Isua Tangent Showing Gold Inglefield Land Inglefield Iron Thule Thule Iron Paamiut Akuliaq Gold Vagar Lake 410 Gold Fiskefjord Fiskevandet Platinum Fiskefjord Miaggoq Platinum Fiskefjord Ulamertoq Platinum Storø Ivisaartoq Tungsten Kang East Tikiusaaq REE, Diamonds Kang East No Name Copper, gold Paamiut B Gold Vagar Nanisiaq Gold Hugin Stendalen Nickel, copper, titanium Hugin Sorte Nunataq Gold, copper Hugin Kutseq Gold Hugin Kangerluluk Gold, copper Storø Bjørneø Gold Maniitsoq East Maniitsoq East Gold Storø Sermitsiaq Gold Paamiut Nigerlikasik Nickel, copper Paamiut Nigerleq Palladium, tungsten, gold Igasoq Igasoq Gold Qapiarfik Qapiarfik Platinum, gold Well-diversified project portfolio with gold as primary focus

9 9 I. Introduction Key figures Key figures Q Profit/loss statement Revenue Capitalised exploration costs Operating profit/loss (EBIT) (5.3) (4.3) (4.2) (0.6) Profit before tax (12.9) (3.5) Balance sheet Intangible assets Property, plant and equipment Total assets Equity profit due to sale of remaining stake in Nalunaq Gold Mine

10 10 II. Greenland mining and exploration environment Exploration and mining in Greenland One of the last under-explored frontiers in the world Booming development in exploration activities in recent years Mineral exploration expenses (DKKm) CAGR 03-07: 81% Significant international interest for mineral exploration and mining in Greenland Currently 27 exploration and mining companies operating in Greenland of which 26 are international Source: Bureau of Minerals and Petroleum Currently 70 exclusive exploration licenses granted and 16 in process Licenses granted for 10 years with extension possibilities Tax regime comprises corporate tax only (30%) with no royalties or similar Km 2 under exploration licenses CAGR 03-07: 42% Source: Bureau of Minerals and Petroleum Under-explored frontier experiencing a booming development

11 11 II. Greenland mining and exploration environment Exploration and mining in Greenland (con t) Close geological similarities with leading mining regions such as Canada, Scandinavia, Australia and South Africa Generally, mining costs will be higher compared to other more established mining areas due to more remote location but minerals are expected to be more easily accessible making Greenland a very competitive exploration environment Two mines are currently in operation and more is underway Nalunaq Gold Mine (Crew Gold Corporation) Olivine mine (Minelco) Black Angel Mine awarded an exploitation licence One new mining license currently in process (Malmbjerget, Quadra Mining Ltd) Geological similarities with leading mining countries

12 IV. Portfolio of exploration licenses Gold & Copper-gold prospects Qussuk Au-Cu Storø Au Paamiut Au Vagar Au Maniitsoq Øst Au Igasoq Au Isua Au KANG Cu-Au Hugin

13 IV. Portfolio of exploration licenses Platinum and nickel prospects Giesecke nickel Maniitsoq nickel Fiskefjord platinum Qapiarfik platinum Ammassalik nickel-platinum Stendalen nickel

14 IV. Portfolio of exploration licenses Other prospects Inglefield Land Iron Thule Iron Ymer Ø goldantimony-tungsten Ivisaartoq tungsten Kang East diamonds & REE

15 15 III. Portfolio of exploration licenses Exploration licenses - overview 15 exclusive exploration licenses with 39 identified prospects covering an area of 8,212 km 2

16 16 III. Portfolio of exploration licenses Core projects: Storø - gold The primary focus since 2005 More than 12 km of diamond drilling and 3500 surface samples Project highlights Storø sited at excellent location in central part of Nuuk Fjord Two targets: Main Zone and BD Zone Metallurgical recoveries: % Costs of bringing Storø to a decision regarding mining operation is ~DKK m Field season 2008 BD Zone extended 500 m towards south Additional metallurgical samples collected BD Zone visible at the surface, >1000m above sea level BD Zone known through drilling down to 300m above sea level Partner search initiated Minimum quantity requirements Grade range: 5-10 g/t Ideally contained gold: 3.2 Moz Ore quantity range: 10-20Mt Ideal annual production: oz Mining operation: Underground Probability factor: 8-12% Very promising gold targets - close geological similarities with Timmins Gold Camp, Canada

17 17 III. Portfolio of exploration licenses Core projects: Qussuk - gold New 20+ km gold-copper belt discovered recently Several electromagnetic targets matching known surface gold-copper mineralization Visible gold discovered in 2007 and confirmed in 2008 Swan Zone Project highlights Situated 60 km north-east of Nuuk in Nuuk Fjord Individual mineralization can be followed for up to 2 km At least five target zones identified Enlargement of licence granted in 2008 Field season 2008 Plateau Zone Drilling confirms continuity at Plateau & Swan Zones Additional analysis initiated to uncover nugget effect Minimum quantity requirements Grade range: Ore quantity range: Mining operation: 3-8 g/t 12-20Mt Open pit Ideally contained gold: Ideal annual production: Probability factor: 2.0 Moz oz 5-10% Several interesting test results covering a very large area

18 Core projects: Qussuk Plateau section

19 Core projects: Qussuk Swan section 700 m.o.h.

20 Core projects: Vagar Placer gold Nalunaq Gold Mine

21 21 III. Portfolio of exploration licenses Core projects: Vagar - gold Placer gold prospect in South Greenland Large volume of gold mineralized rock has been eroded and transported to create a large delta with a potential for alluvial gold Project highlights The license covers two sub-areas in southwest Greenland Gold-mineralized rock float contains up to 291 g/t Sediment samples contains up to 41 g/t Enlargement of license granted in 2008 Field season 2008 Georadar surveys indicated >60 Mm 3 volume Preparation of intensive field programme for 2009 Minimum quantity requirements Grade range: g/m3 Ideally contained gold: 0.8 Moz Quantity range: Mm3 Ideal annual production: oz Mining operation: Dredging or excavation Probability factor: 8-12% Placer gold prospects with short "time to cash" and limited capex requirements

22 Target oversigt Target A Target B Target C Target D

23 Target C Target C delta: VG reporteret fra delta m 2 x < 20 ppb Au >100 ppb Au x x x x x Target C Estimeret +13 mill. m 3 i delta 5 m overjord of marine, fluviale og glaciale aflejringer Store stenblokke Vand fra havet og floden Max. dybde 35 m under overfladen Marine, fluviale og glaciale aflejringer Grundfjeld Delta forsæt

24 Target C Target C delta: VG reporteret fra delta m2 x< 20 ppb Au x >100 ppb Au x x Target C Estimeret +13 mill. m3 i delta 5 m overjord of marine, fluviale og glaciale aflejringer Store stenblokke Vand fra havet og floden Max. dybde 35 m under overfladen x x x Marine, fluviale og glaciale aflejringer Delta forsæt Grundfjeld

25 25 III. Portfolio of exploration licenses Core projects: Nickel prospects Ammassalik/Kitak: Several nickel mineralization's within strike length of 10+ km Giesecke: Nickel-anomaly matches electromagnetic conductors Maniitsoq: High grade nickel-copper-platinum showings along crustal scale primitive dykes Project highlights Micro-bulk samples at Ammassalik/Kitak: 1.5% nickel, 0.5% copper Helicopter-borne magnetic and electromagnetic survey at Giesecke indicates conductors of up to 2 km lengths Historical tests at Maniitsoq: +6,0% nickel Field season 2008 Prospecting in Maniitsoq Marketing of nickel projects Minimum quantity requirements Ammassalik/Kitak Giesecke Maniitsoq Grade range 1-2% nickel 1-2% nickel 1.5-3% Ore quantity range Mt Mt 5-10 Mt Minimum contained nickel 300,000 ton 200,000 ton 150,000 ton Minimum annual production 15,000 ton 10,000 ton 7,500 ton Probability factor 1-10% 1-10% 1-10% Mining operation Underground Underground Underground Proven geological similarities with nickel-rich regions in Canada

26 26 III. Portfolio of exploration licenses Core projects: Ymer Ø - tungsten Identified and accelerated via Data Mining Inferred resource for part of the Margeries Dal area Promising antimony-tungsten-gold mineralization, Noa Dal area Project highlights Noa Dal Margeries Dal Ymer Ø is a large mountainous island located north of the Arctic Circle in East Greenland Field season 2008 Hyperspectral data indicates additional mineralization SkyTEM surveys in September 2008 Preparation of intensive field programme for 2009 Minimum quantity requirements Margeries Dal Noa Dal Grade range ~3% WO % WO3 Ore quantity range 350,000 ton Mt Minimum contained tungsten 10,500 ton WO3 150,000 ton WO3 Minimum annual production 1,250 ton WO3 9,000 ton WO3 Probability factor 5-10% 1-10% Mining Open pit Open pit Very interesting tungsten prospects with potential large-scale operation in Noa Dal

27 Partner projects: Amikoq - platinum Partner Impala Platinum Holdings Ltd (Implats) Jan Field season 2008: The platinum bearing Octopus Reef discovered C. 1 c. 0.4 g/t platinum + palladium Open at both ends Platinum/Palladium ratio: >5:1 Implats excited about the discovery 2009: Continued surface saw sampling of Octopus Reef Continued prospecting for new platinum mineralization Drilling?

28 28 III. Portfolio of exploration licenses Development in other projects and activities Application for exclusive concession south of Thule Air Base (Iron) New exclusive concessions awarded in July 2008 Qapiarfik (platinum and gold) Igasoq (gold) Enlargement of existing concessions awarded Storø (gold & copper) Maniitsoq (nickel) Vagar (gold) New exclusive concessions and enlargement of existing ones

29 29 IV. Expectations Objectives and expectations Long term exploration focus Accelerate development of core projects Continued development of non-core projects Add licenses to portfolio Main activities in remaining part of 2008 Completion of field season Analyses and results from field season ready between November 2008 and April 2009 Initiate discussions with potential partners for Storø Financial guidance for 2008 as per 30/9 Operating loss of DKK 34m before financial items and capitalisation of exploration costs Operating loss of DKK 3m before financial items and after capitalisation of exploration costs Upgraded expectations to guidance after 3Q2008

30 30 V. Sum-up Investment highlights Global mineral trends Greenland Increasing demand for precious and base metals Depressed supply due to insufficient exploration Geological similarities with leading mining countries Under-explored frontier Mineral exploration opportunity in Greenland Strongly positioned company Attractive license portfolio Strong partnerships with leading mining companies Access to modern facilities with laboratory and geochemical database placed locally Competent management and geologist team with proven track record and strong local knowledge Strong company, strong operational surroundings, strong investment opportunity!