La Parrilla Mine, Spain - brrmedia.com
Minesite Conference 19 March 2015
Mr Michael Masterman, Chairman
AIM : WRES
www.wresources.co.uk
March 2015
Disclaimer This presenta,on was prepared by and is the property of W Resources Plc (“W Resources” or “the Company”). No reproduc,on or distribu,on this material is permiAed to companies or individuals outside of those for whom this is intended. No agents, brokers or investment banks are authorised to present this material to other par,es for the purpose of solici,ng poten,al clients or transac,ons of any kind without prior consent to do so. While the Company is not aware of any inaccuracies, no warranty or representa,on is made by the Company or their respec,ve employees and representa,ves as to the completeness or accuracy of the informa,on contained herein. The Company, JLSI and their respec,ve employees and representa,ves expressly disclaim any liability for damages, direct or consequen,al, arising out of or related to this presenta,on or omissions there from, or any other informa,on provided in wri,ng, orally or otherwise regarding this poten,al transac,on. Any party considering a transac,on with the Company agrees to look solely to its own due diligence and any representa,ons, warran,es and/or covenants set forth in a fully-‐executed, defini,ve wriAen agreement with the Company rela,ve to the transac,on. Certain maAers discussed in this presenta,on are “forward-‐looking statements”. These forward-‐looking statements can oPen but not always be iden,fied because the context of the statement will include words such as “the Company expects,” “an,cipates” or words of similar import. Similarly, statements that describe the Company’s capabili,es, future plans, objec,ves or goals are also forward-‐looking statements. Such forward looking statements are subject to significant risks and uncertain,es, including the financial performance of the Company and the viability of its technology. These risks could cause actual results to differ materially from those currently an,cipated. Although the Company believes the expecta,ons reflected in any forward-‐looking statements are based on reasonable assump,ons, the Company can give no assurance that its expecta,ons will be aAained. Poten,al investors, customers, suppliers and other readers are urged to consider this factor carefully in evalua,ng any forward-‐looking statements. Forward-‐looking statements made herein are only made as of the date of this presenta,on and the Company undertakes no obliga,on to update such forward looking statements to reflect subsequent events or circumstances. Technical informa,on in this presenta,on has been prepared and approved for inclusion by Mr Fernando de la Fuente, who is a “qualified person” in respect of the AIM Rules for Companies with over 39 years experience in the Explora,on and Mining Geology industry. Mr de la Fuente holds a B.Sc. in Geology and a MSc in Geology from the University of Granada in Spain. He is also a member of the Spanish College of Geologists (Number 49), the Spanish Society of Mineralogy, founder member of the Spanish Society of Geology, member of the Spanish Associa,on of Applied Geology to Mineral Deposits, member of the Society for Mining, Metallurgy and Explora,on, Inc., member of PDAC. Some of the technical informa,on contained in the W Resources Plc March 2015 Presenta,on was prepared and first disclosed under the JORC Code 2004. It has not been updated since to comply with the JORC Code 2012 on the basis that the informa,on has not materially changed since it was last reported. Foreign Exchange rate used in this presenta,on US$1.00 = €0.9429 as at 16 March 2015. Source: Bloomberg.com
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Building a European mining company focussed on delivering long term production of tungsten, a key strategic metal with strong market fundamentals.
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Overview Régua, Portugal -‐ Tungsten development project. JORC resource of 4.5mt @ 0.31% WO3 , at a cut-‐off of 0.10% WO3. Focussed on trial mine producLon in 2016
Tarouca, Portugal -‐ former tungsten -‐ Ln mine – advanced exploraLon progressing
Porto
Régua Tarouca
SPAIN Madrid
Lisbon
Portalegre La Parrilla
CAA / Portalegre -‐ Portugal -‐ advanced copper-‐ gold exploraLon
March 2015
PORTUGAL Seville
La Parrilla Mine, Spain -‐ Open pit
tungsten mine development -‐ JORC Inferred Resource of 47mt @ 0.09% WO3. Fast track in to producLon in 2017
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Overview Projects !
La Parrilla Mine, Spain: Largest tungsten mine in the Western World. JORC Inferred Resource of 47mt @ 0.09% WO3. Open pit tungsten mine development. Fast tracking for 2017 producLon
!
La Parrilla Tailings, Spain: run on a campaign basis to integrate into fast-‐track mine
!
Régua, Portugal: tungsten development. JORC resource of 4.46mt @ 0.31% WO3 , at a cut-‐off of 0.10% WO3. Focussed on trial mine producLon in 2016
! !
Tarouca: former tungsten and Ln mine where advanced exploraLon is progressing CAA / Portalegre: Advanced copper-‐gold exploraLon
March 2015
Ticker:
AIM: WRES
Focus:
Tungsten, copper & gold -‐ producLon, development & exploraLon
Shares in issue:
2,886,437,497 Ordinary Shares
Market cap:
GBP 6.35m (@ 0.22p – 16 Mar 2015)
Experienced Directors:
Michael Masterman Byron Pirola David Garland
Significant Shareholders (as at 16 March 2015) M Masterman
21.36%
Hansource Investments Ltd
11.55 %
H Gibson
6.03 %
B Pirola
5.95 %
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W = Tungsten !
Tungsten is a rare metal that is criLcal to some key applicaLons with no saLsfactory subsLtutes due to its unique properLes
!
Worlds hardest element with the highest boiling point
!
China with 80% of global supply increasingly exerts market power
!
Resilient price trend
!
Strong demand growth
!
Constrained supply
EUROPEAN TUNGSTEN APT PRICES USD per Mtu 500
400
300
200
100 Source: Bloomberg
0 2003
March 2015
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
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Milestones to Date !
Acquired La Parrilla mine in Spain
!
Built and commenced producLon at La Parrilla tailings
!
Achieved Tungsten product quality – 60% WO3
!
Shipped over 111 tonnes to date
!
Established strong customer relaLons and credibility among customer networks
!
Built infrastructure base for fast track mine development – power, road, laboratory, water access
!
Granted Régua Trial Mining Licence
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Product Quality & Shipment !
High grade product
Current %
Target
WO3
60-‐62
On Target
Sn
6.95
On Target
As
0.30
Below Target
S
0.86
On Target
ALS Chemex Vancouver – January 2014
!
Sales to one of Europe’s largest consumers
!
Good pricing
!
Strong demand for long term off-‐take agreement, with discussions underway
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La Parrilla Mine: Tungsten (Spain)
LocaLon:
257km north of Seville
Licence Status:
Granted Mining Licence 2068
JORC Resources:
47mt @ 0.09% WO3
Metres Drilled:
29,300 metres from 149 holes
Mine Life:
30 – 40 years
Mine Capex:
US$16m / US$42m total
PORTUGAL
SPAIN Madrid
La Parrilla
Mine Economics: US$100m NPV / 45% IRR Milestones:
March 2015
Environmental approval Q415
Seville
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La Parrilla Mine: Tungsten (Spain) !
World Scale Resource: 47 million tonnes at 0.09% WO3 at a 0.04% cut-‐off grade, making it one of the largest tungsten deposits in the West.
!
2.2m tonnes pa ROM, targeLng producLon of 2,300 tonnes pa 63% WO3 (equates to revenue c US$50-‐60m pa)
!
Capex – US$42m & Opex -‐ US$123/mtu
!
Simple Coarse Grain Metallurgy
!
Focus on the high grade areas at the surface of the current pit and adjacent to the exisLng mining pit
!
ObjecLve is to fast track to producLon in 2017
!
2015 / 2016 work plan includes: • environmental approvals • infill drilling and metallurgical equipment tesLng • installaLon of electrostaLc separator sized for mine producLon • tesLng fine spirals to opLmise operaLon
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La Parrilla: Staged Approach Stage 1
Stage 2
Stage 3
Tailings In producRon
Fast Track Mine 2015
Full Mine 2017
Stage 1
Stage 2
Stage 3
ROM
0.34 mtpa
0.75 mtpa
2.2 mtpa
Product WO3
450 tpa
800 tpa
2,300 tpa
Revenue
NA *
US$12-‐16m pa
US$50-‐60m pa
Capex
US$2.8m
US$16m **
US$42m **
Opex
US$187/mtu
US$TBA
US$123/mtu
Environmental Approval
Q1 2013
H2 2015
March 2015
* During 2015 Tailings plant will be run on campaign basis ** Preliminary figures / subject to revision & strategic review
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Core Infrastructure ! 3km from main Seville / Madrid Highway ! Power grid connecLon established ! Access to quality water supply ! Short trucking distance from both AtlanLc and Mediterranean ports ! AccommodaLon, office and employee faciliLes operaLonal ! On-‐site laboratory operaLonal
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La Parrilla: Mine and Tailings
Open pit = low mining costs
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La Parrilla: Fast Track Mine Layout
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La Parrilla: Fast Track Pit Layout
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La Parrilla Tailings run on campaign basis
Pre-‐concentrate Stockpile ConcentraLon Plant Spirals Concentrate Plant Ball Mill
Concentrate Plant FlotaLon Cells ConcentraLon Plant Shaking Tables Concentrate Plant Dryer
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La Parrilla: IntegraLon of Mine and Tailings
Additional Equipment
Crushing
March 2015
Ore SorLng
Inline Pressure Jig
Existing Tailings
Expansion of ExisLng Tailings Facility
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La Parrilla: Project ExecuLon Plan for Tungsten Fast Track Mine
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La Parrilla Mine: Large Resource Growth PotenLal
IP04 Significant intersecLon 32 metres at 0.55% WO3
Large Potential Resource
Early Mining Area IP02 Significant intersecLon 18 metres at 0.97% WO3
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La Parrilla: Mine SecLon
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Régua and Tarouca: Tungsten (Portugal) !
JORC 2008 compliant resource of 4.46 million tonnes at 0.31% WO3
!
2,000 metre diamond core drilling campaign to appraise lateral and depth extensions to exisLng mineralisaLon commenced November 2014
!
ObjecLve of the drilling programme is to increase this resource during H1 2015
!
Trial mining licence was granted in June 2014
!
Golder & WRES have completed a conceptual mine study
Régua Tarouca
SPAIN Madrid
Lisbon
PORTUGAL
REGUA
TAROUCA
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Régua: Tungsten (Portugal) – Tarouca Hub LocaLon:
133km east of Porto
Licence Status:
Granted experimental mining licence (2018 + 1 year opLon)
JORC Resources:
4.46mt @ 0.3%
Metres Drilled:
6,310 metres from 38 holes
Mine Life:
7 to 10 years (Golders)
Mine Capex:
US$18m
Mine Economics:
US$35m NPV / 52% IRR
Milestones:
§
Metallurgical and equipment tesLng Q2 2015
§
Complete an addiLonal 1,200m drilling in Q2 2015
§
Evaluate early mine development opLons
March 2015
!
In March 2015, bulk samples at surface returned assays of 0.33% to 1.0% WO3 from iniLal 4 tonne sample
!
Drilling results highlighted 6 zones (compared to expected 3) of tungsten bearing skarn including 10 metres at 0.6% WO3
!
The Régua deposit remains open at depth and on all sides, with significant potenLal resource growth to the north east
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CAA / Portalegre: Copper -‐ Gold Project !
Located 200km east of Lisbon, comprising two gold exploraLon licences covering 188.05km2
!
PosiLve iniLal assay results with extended reverse circulaLon drilling programme completed with a total of 1,600m at Portalegre
!
Rock surface sampling idenLfied a number of high grade copper – gold samples •
!
Gold grades included 1.385 g/t and 0.881 g/t and indicated good surface samples of copper including 0.77% and 0.43%.
900 metre diamond core drilling programme commenced in December 2014 target tesLng 5 holes located in the 9km long trend in the south-‐east
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CAA / Portalegre: 9.5km Anomaly Trenching and Drilling
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Finance
Project
Value
Status
La Parrilla Mine -‐ DefiniLon Study (NPV US$100m)
US$400k
Funded
-‐ Fast-‐track mine
US$15m
H2 2015
-‐ Metallurgical tesLng / Geological Extension
US$300k
Funded
-‐ Trial Mine
TBE
2016
-‐ CAA / Portalegre
US$200k
Funded
-‐ Sao MarLnho
US$300-‐500k
Farm-‐out
Régua (NPV US$35m) W ExploraRon
March 2015
Progress
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Why W Resources
! ! !
Two tungsten mines – excepLonal exploraLon acreage
!
Large scale exploraLon potenLal
! !
Strong tungsten price fundamentals
La Parrilla targeLng first mine producLon 2016 Régua advancing well and targeLng first mine producLon in 2017
Financing discussions advancing at asset level (less diluLon)
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Appendices
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Overall W JORC Resources & Reserves La Parrilla Tungsten Mine Mt Inferred
46.92
WO3 Contained (%) WO3 (mtu) 0.09
3.99 M
La Parrilla Tailings Reserves Sn Contained % Sn (t)
0.009
4270
Indicated
Mt
WO3 (%)
Contained WO3 (mtu)
1.0
0.12
0.12M
Source: SRK 2008 WO3 – tungsten tri-‐oxide
Source: Golder Associates Pty Ltd – 18 June 2013
Régua Tungsten Deposit Mt
WO3 (%)
Contained WO3 (mtu)
Indicated
2.14
0.367
0.785M
Inferred
2.32
0.253
0.587M
Total
4.46
0.308
1.37M
Source: Golder Associates Pty Ltd – 4 October 2012
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News flow 2014
Jan / Feb
• Successful commissioning of Pre-‐ConcentraLon Plant at La Parrilla • La Parrilla Final Concentrate Grades Exceed ExpectaLons • ConstrucLon of the ConcentraLon Plant at La Parrilla is completed
Mar / Apr
• 1,500 metres of core drilling commenced at Tarouca Project in Portugal • First producLon from La Parrilla Tailings Plant • Encouraging Copper and Gold Values in CAA / Portalegre Rock Samples
Jun / Jul
• Trial Mining Licence Awarded at Régua Tungsten Deposit in Portugal • ProducLon Ramp-‐up at La Parrilla Tailings -‐ IniLal ProducLon Exceeds Grade specificaLons • Tarouca Drilling Update: Intersects High Tungsten Grades
Aug / Sep
• First Tungsten Shipment Cash Proceeds • Tarouca Drilling Programme CompleLon -‐ 3.29m @ 1.13% WO3 from 54.55m • Strong Trenching ExploraLon Results at CAA / Portalegre
Oct / Dec
• Régua Development Campaign Commences – 2,000 metres • CAA / Portalegre Drilling Campaign Commences – 900 metres • Director Appointment – David Garland joins WRES Board
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W Board Michael Masterman Chairman
Mr Masterman has an excepLonal track record in establishing and financing new resources companies. He recently completed the US$1.15bn sale of a 31% interest in the Fortescue Metals Group’s majority-‐owned FMG Iron Bridge iron ore company to Formosa PlasLcs Group. Following 9 years at McKinsey, and 8 years as an ExecuLve Director of Anaconda Nickel, he has been a founding shareholder at Fortescue Metals Group, Po Valley Energy and Atacama Metals.
Byron Pirola
Director of Port Jackson Partners Limited, a Sydney based strategy management consulLng firm. Prior to joining Port Jackson Partners in 1992, Byron spent six years with McKinsey & Company working out of the Sydney, New York and London Offices and across the Asian Region. He has extensive experience in advising CEOs and boards of both large public and small developing companies across a wide range of industries and geographies. Byron is a Non-‐ExecuLve Director of Po Valley Energy Limited.
David Garland
David is the former General Counsel, Secretary and Chief Compliance Officer of Dominion Petroleum Limited (an oil and gas exploraLon company then listed on the LSE). Before joining Dominion, he had pracLced as a barrister for 18 years from Brick Court Chambers, a leading commercial barristers’ chambers in London. David was a founder, and is currently General Counsel and a director, of Atacama Metals Holdings Limited, a private Hong Kong registered copper exploraLon company, with mining concessions and interests, in the Atacama Desert in Chile.
Non-‐Execu,ve Director
Non-‐Execu,ve Director
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W Management Team Fernando de La Fuente Antonio Galzia
Aaron Szumilak
CelesRno Parejo
General Manager
Mining Engineer
Metallurgist & Process Engineer
Government Rela,ons / Mining
Geologist with over than 39 years experience in the ExploraLon and Mining Geology industry in Europe, Africa and North America and LaLn America. He was the Regional Manager for Anglo American CorporaLon of South Africa in West Africa and has also worked for Rio Algom and Phelps Dodge. Fernando is a ‘qualified technical person’ in respect of the AIM Rules for Companies.
Mining Engineer from the University of Porto and has over 30 years’ experience in the extracLon of minerals through blasLng. Previously, General Manager at Mina do Moinho, part of Pirites Alentejanas, Director at Sandvick Portuguese OperaLons & Chairman of Monte Adriano Agregados SA. Currently, he is a Adjunct Professor for the Geotechnical Engineering InsLtute in Porto.
Mechanical and process engineer with 10 years’ experience in mineral processing and resource development. He carries field experience in operaLonal and technical services roles presenLng a broad range of process skillsAaron has worked for Fortescue Metals Group, Syncrude and Composites InnovaLon Centre.
Mining Engineer with over 30 years’ experience in the technical direcLon of mining projects in the Extremadura Region, and internaLonally. He is also an adviser to Avante, the regional government-‐ funding agency for the Gesminesa mining projects, to the Security commivee for the Extremadura Mining Department and to the General Manager for the Environment in Mining restoraLon projects.
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