alturas minerals

Minería y exploración en Perú: situación y perspectivas

M. Cardozo Febrero 05, 2015

Jueves Minero Instituto de Ingenieros de Minas del Perú

• Metal prices • Cost and margin • Production • Exploration • Mineral discoveries • Junior financing

Content

Metal Prices

$1238 $1379 $1238 $1142 $1265

Since November 2014, oil price drops offsetting US Dollar influence

military and political concerns about Russia and Ukraine in the first half of 2014.

US economic recovery leds to US Dollar strenghtening

$16.24

$15.71

Precios del Oro y la Plata

$18.25

$17.25

Copper Spot Price

Copper Storage 60 days

6 months

1 year

5 years

Zinc Spot Price

Zinc LME

Storage 60 days

6 months

1 year

5 years

Recent and Forecast Commodity Prices

Cash Price (26-Dec-14) 2010 2011 2012 2013 2014E 2015E 2016E 2017E 2018E

Aluminum ($0.93 / lb) $0.99 $1.09 $0.92 $0.84 $0.87 $0.93 $0.98 $1.03 $1.13 Copper ($2.89 / lb) $3.43 $4.00 $3.61 $3.33 $3.13 $3.12 $3.18 $3.25 $3.28 Lead ($0.84 / lb) $0.97 $1.09 $0.94 $0.97 $0.98 $1.00 $1.01 $1.00 $0.99 Nickel ($6.93 / lb) $9.91 $10.38 $7.95 $6.81 $7.93 $8.83 $9.08 $9.18 $9.36 Zinc ($0.98 / lb) $0.98 $1.00 $0.88 $0.87 $0.98 $1.07 $1.14 $1.17 $1.16 Gold ($1196 / oz) $1,226 $1,571 $1,668 $1,411 $1,279 $1,275 $1,296 $1,275 $1,282 Palladium ($815 / oz) $528 $733 $643 $725 $825 $864 $879 $878 $919 Platinum ($1212 / oz) $1,611 $1,719 $1,549 $1,485 $1,460 $1,450 $1,509 $1,528 $1,526 Silver ($16.09 / oz) $20.24 $35.29 $31.13 $23.82 $19.91 $19.70 $20.26 $20.34 $20.24 Uranium ($36.25 / lb) $45.97 $56.32 $48.97 $40.42 $34.51 $44.39 $51.20 $59.51 $64.71

Base metal prices are LME cash prices quoted in US$ per lb. Precious metal prices are London spot prices quoted in US$ per oz.

William Matlack Scarsdale Equities LLC

Kitco, Dec 29th, 2014

Metal prices

• ¿Se terminó el ciclo de los altos precios de los metales?

• ¿Quién maneja los precios…oferta vs. demanda o percepción/especulación?

Volatile metal prices

Cost and margin

En 2013, de acuerdo con datos de la Comisión Chilena del Cobre (Cochilco), producir una libra de cobre en el país (Chile) costó US$2,50, por sobre el promedio mundial (US$2,38). Las cifras están medidas en dólares de cada año y corresponden al costo C3, que incluye costo directo de caja más depreciación más intereses y costos indirectos y deduce el crédito por venta de subproductos.

La tendencia al alza en costos en la minería chilena, no ha logrado detenerse del todo, según grafica un reciente informe internacional sobre esta industria en Latinoamérica, preparado por Scotiabank GBM. En su última estimación del cash cost C1 para el segundo trimestre –sobre costos de producción, que incluye remuneraciones, materiales, energía, servicios de terceros, gastos de refinación y ventas y créditos por subproductos–, el conjunto de mineras del país (Chile) aumentaron en 12% este indicador, pasando de US$ 1,68 la libra de cobre el tercer trimestre del año pasado, a US$ 1,88. Este nivel es mayor al que tienen en general los yacimientos de cobre en el mundo, que se estiman estarán ubicadas en US$ 1,73 la libra para el segundo trimestre. Pero deja a las operaciones nacionales (chilenas) muy lejanas al promedio en Perú, que llega a US$ 1,27, según el documento. De todos modos, Peru no ha estado exento de esta tendencia alcista. Entre los dos periodos analizados por el banco de inversión, su cash cost creció 23%, mientras a nivel mundial fue de sólo un 7%.

Notas tomadas de artículos diversos de Mining Press de Junio 2014

Las compañías mineras de oro siguen vigilando muy de cerca el aumento de los costes de producción, más concretamente en aquellas minas que llevan años de explotación y cuyas reservas más cercanas a la superficie se van agotando. En el Informe de SNL Metals & Mining denominado “Estrategias para el Cambio de las Reservas de Oro”, se hace notar como el principal de los problemas el aumento de los costes medios de producción desde 560 dólares por onza en los 2000 hasta 2.300 dólares por onza en la actualidad. Las expectativas de crecimiento de los costes son aún mayores para 2014. El análisis se basa en una muestra de 192 minas de oro con una capacidad de producción de 50.000 onzas anuales.

De forma sistemática, la media de tres años de los costes de capital de las minas está por encima de los precios internacionales del oro. Desde 2006, los mineros se embarcaron en proyectos que en muchos casos eran faraónicos y que, al final, han tenido que abandonar por falta de rentabilidad. Al calor de la subida de los precios, las mineras diversificaron sus negocios afrontando subidas importantes en los costes de extracción. Para 2014, se espera un incremento del coste medio hasta 2.400 dólares por onza mientras que para 2015, este coste bajaría hasta los 1.900 dólares por onza. Con respecto a los costes operativos directamente relacionados con la producción, desde 2004 se han incrementado en términos reales un 190% pasando a ser de 702 dólares por onza en 2013.

• ¿Estamos manejando adecuadamente los costos?

• ¿Hay un problema de productividad?

• ¿Cut-off y ley promedio apropiados?

• ¿Capex excesivos?

Costs increasing…margins reducing

Production

-

2

4

6

8

1990 1994 1998 2002 2006 2010 2014

Gold Ounces (millions)

Copper Tons (millions)

Moving from the “gold rush” into a “copper boom”

1st PRODUCER OF GOLD IN LATIN AMERICA

AND 6th IN THE WORLD

3rd LARGEST WORLD’s PRODUCER OF COPPER

WILL SOON RECOVER ITS 2nd POSITION

WILL DRASTICALLY REDUCE DIFFERENCE WITH CHILE

0

1

2

3

4

5

2001 2003 2005 2007 2009 2011 2013 2015 2017 2019

Mill

ions

of t

ons o

f cop

per

Peruvian Gold Production by Deposit Types

-

1

2

3

4

5

6

7

8

1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020

Moz

Alluvial Gold Other IOCG SkarnPorphyry Mesothermal veins LS Epithermal HS Epithermal

6.77.3

6.6

3.7

actual forecast

Milli

on O

unce

s of

Gol

d Peruvian Gold Production by Deposit Types

-

1

2

3

4

5

6

7

8

1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020

Moz

Alluvial Gold Other IOCGSkarn Porphyry Mesothermal veinsLS Epithermal HS Epithermal

6.7 6.5

4.1

5.5

actual forecast

-

1

2

3

4

5

6

7

8

1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020

Milli

ons

Oz

Gol

d

Alluvial Gold Other Mesothermal veinsSkarn Porphyry LS EpithermalHS Epithermal

6.7

5.9

5.35.5

5.2

forecast

(Estimated in May 2012)

actual

Peruvian Gold Production by Deposit Types Peruvian Gold Production by Deposit Types

(Estimated in May 2014)

M. Cardozo et al, 2006

M. Cardozo et al, 2012 J. Acosta et al, 2014

M. Cardozo et al, 2008

Producción de Oro en el Perú

From: Acosta et al, May 2014

Estimate by May 2014

Improbable drop, traditional mines can sustain up to 160-170 MM oz/year

Copper Mines and Projects in Peru

La Granja

El Galeno Minas Conga

Río Blanco

Toromocho

Los Chancas Las Bambas

Quechua Mina Justa

Quellaveco

Tía María

Antamina

Cerro Verde Toquepala

Cuajone

Tintaya

Zafranal

Projects

1-10 10-50

50-200 200-500

Actual and Planned Annual Production

Metric Tons of Fine Copper X 1000

Mines

Cerro Corona

Michiquillay

Actu

al/P

lann

ed A

nnua

l Pro

duct

ion

Met

ric T

ons o

f Fi

ne C

oppe

r X

1000

0

100

200

300

400

500

600 Magistral

Source: Copper in Peru: Facts and challenges, J. Acosta, A. Bustamante & Miguel Cardozo, Perumin 2013

Peruvian Copper Production 1998-2025 M

etric

Tons

of

Fine

Cop

per

(Mill

ions

)

0.0

1.0

2.0

3.0

4.0

5.0

6.0 Río Blanco Cañariaco

Michiquillay Haquira Zafranal

Los Calatos

+Cuajone

Met

ric To

ns o

f Fi

ne C

oppe

r (M

illio

ns)

actual forecast

Miocene Porphyry Belt

Eocene-Oligogocene Porphyry Belt

Paleocene-Eocene Porphyry Belt

Other type of deposits

Tía María Mina Justa Constancia

La Granja Minas Conga Los Chancas

El Galeno Magistral

Quellaveco +Cerro Verde

2.5

4.9

4.1

3.4

4.2

1.5

Toromocho Las Bambas

Quechua +Toquepala

2.2

Estimate by July 2014

Peru Copper Production and Yearly Growth Rates (actual until 2013 + forecast until 2021)

Estimate by July 2015

Gold and Silver Content of Porphyry Deposits PORPHYRY BELT PROJECT Au g/t Ag g/t Mo %

Cerro Corona 1.00Minas Conga 0.71 2.05

Galeno 0.12 2.50 0.014Michiquillay 0.05-0.10 2.00-4.00 0.01-0.02

La Granja 0.04 3.70Magistral 0.060Cañariaco 0.06 1.6La Arena 0.27 0.70 0.004

Toromocho 6.90Antamina 10.3 0.021

Las Bambas 0.08 4.74 0.018Cotabambas 0.23 2.74 0.001Antapaccay 0.13 1.51 0.010Los Chancas 0.04 0.040

Antilla 0.009Haquira 0.04 1.79 0.001

Constancia 0.05 3.60 0.011Los Calatos 0.021

Cuajone 0.03 3.10 0.020Toquepala 0.03 2.30 0.020Quellaveco 2.19 0.023Cerro Verde 1.46 0.010

Miocene N-Peru

Eocene-Oligocene Apurimac

Miocene Central Peru

Paleocene SW-Peru

Projected yearly production from pophyries/skarns of the 3 main copper

porphyry belts by 2021 ?

Gold (millions of

ounces)

Silver (millions of

ounces)

Molybdenum (thousands of

tons)

1.6 40 40 -50

% of total gold and silver by 2021 ? 30% 25% 100%

Historic Cumulative Copper Production in Peru

Metallogenic belts

5 MMT 18%

2 MMT 7%

16 MMT 57%

Antamina 4.1 MMT

Toquepala 6.7 MMT

Tintaya 2.0 MMT Miocene porphyry belt

Eocene-oligocene porphyry belt Paleocene porphyry belt

Total Production in Peru 28 MMT (100%)

Production from main porphyry belts 23 MMT (82%)

Other Cu belts: 2 MMT (7%) Other non-Cu belts: 3 MMT (11%)


Copper Resources and Reserves in the Main Porphyry Belts

in Peru

85 MMT 39%

44 MMT 20%

63 MMT 29%

Total reported resources in Peru 218 MMT (100%)

Resources from porphyry belts 192 MMT (88%)

Other Cu belts: 11 MMT (5%) Other non-Cu belts: 15 MMT (7%)

Metallogenic belts Miocene porphyry belt

Eocene-oligocene porphyry belt Paleocene porphyry belt


• Gold production decreasing. Extracted resources are not being replace. Very few significant discoveries lately

• Silver will increase production levels if copper porphyries are developed • Zinc and lead will continue increasing moderately. New projects

required to accelerate development • Porphyry copper producers contribute significantly to Au, Ag and Mo

production • Copper potential is one of the largest in the world • Copper developments are being delayed due to social and political

issues • Uncertainty increasing, can we really get up to 5 million tonnes of Cu

production in the next 8-10 years? • Chile taking advantage: Long-term view and policy, sustained technical

and commercial/market research • Peru + Chile could produce 57% (>13 tons) of world’s copper

Mineral Production

Peru and Chile Copper Production to 2021 (actual + forecast)

Peru + Chile 13m

57%


Exploration

© SNL Metals Economics Group, 2012

Worldwide Exploration vs. Relative Metals Price


Worldwide Exploration Budgets by Target (as percent of annual total)


Worldwide Base Metals Exploration by Target (as percent of annual total)


Worldwide Exploration by Stage (as percent of annual total) Own projection

(dashed lines) Not quantitative, rough tendencies

Exploration expenditures: World by Commodity : 1975-2013 Major increase in

spend on Bulk Minerals

Percentage of total spend Other - Bulk 1% 100%

Coal Iron Ore 80%

Other – Non Bulk 60%

40% Gold continues to be the main

target 20%

0% 1975 1980 1985 1990 1995 2000 2005 2010

Sources: MinEx Consulting estimates © September 2014, based on data from ABS, NRCan, MLR (China), OECD and SNL MEG

MinEx Consulting

Strategic advice on mineral economics & exploration 5

11%

14%

Diamonds 12% 2%

Base Metals 4% (Cu, Ni, Zn, Pb)

24%

Gold 33%

Inversión en exploración a nivel mundial

Exploration expenditures: by Region : 1975-2013

World China spends more on exploration than any other country in

the World Percentage of total spend

100% 2% 7%

17% 2%

15%

80%

60% 6%

22% 40%

6%

11% 20%

12% 0% Can+USA+Aust

market share has halved in the last 2

decades

1975 1980 1985 1990 1995 2000 2005 2010

Sources: MinEx Consulting estimates © September 2014, based on data from ABS, NRCan, MLR (China), OECD and SNL MEG

Note: Includes spend on Bulk Minerals “Rest of World” refers to, Mongolia, Middle East and South West Asia (including India and Pakistan)

MinEx Consulting


Rest of World FSU + E Europe China Western Europe Africa Pacific / SE Asia Latin America USA Canada Australia

120

293 257 357

570

720

588 591

757

1,025

683

559

0

200

400

600

800

1,000

1,200

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

6

6 5 3

5 6

6 5 4

6

7 7

4.9% 7.7% 4.9% 4.5% 5.0% 5.0% 7.0% 4.9% 4.2% 4.8% 4.5% 4.9%

Peru

Exploration Investment

Worldwide

% of Worldwide Investment

Peru WW Ranking

Investment US$ Million

2,440 3,790

5,290

7,930

11,330

14,474

8,400

12,100

18,158

21,500

15,200

11,400

-

5,000

10,000

15,000

20,000

25,000

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Investment US$ Million

Annual Exploration Budgets by Target 2010 2011 2012 2013 2014Copper 211.7 316.2 351.5 303.7 252.4Gold 196.8 238.2 445.3 205.5 147.3Other 87.3 115.7 146.1 115.5 109.2Zinc-Lead 95.3 87.1 82.4 58.2 50Total 591.1 757.2 1,025.30 682.9 558.9

Annual Exploration Budgets by Stage 2010 2011 2012 2013 2014Grassroots 214.9 216.8 237.1 234.7 188.4Late Stage & Feasibility 263.2 411.2 567.8 285.4 186Minesite 113 129.2 220.4 162.8 184.5Total 591.1 757.2 1,025.30 682.9 558.9

Annual Exploration Budgets by Company Type 2010 2011 2012 2013 2014Major 226.3 399.3 628.1 303.7 370.7Intermediate 130.7 83.9 105.3 205.5 55.6Junior 234.1 274 291.9 173.7 132.6Total 591.1 757.2 1,025.30 682.9 558.9

Annual Exploration Budgets by Target 2010 2011 2012 2013 2014Copper 35.8% 53.5% 59.5% 51.4% 42.7%Gold 33.3% 40.3% 75.3% 34.8% 24.9%Other 14.8% 19.6% 24.7% 19.5% 18.5%Zinc-Lead 16.1% 14.7% 13.9% 9.8% 8.5%Total 591.1 757.2 1,025.30 682.9 558.9

Annual Exploration Budgets by Stage 2010 2011 2012 2013 2014Grassroots 36.4% 36.7% 40.1% 39.7% 31.9%Late Stage & Feasibility 44.5% 69.6% 96.1% 48.3% 31.5%Minesite 19.1% 21.9% 37.3% 27.5% 31.2%Total 591.1 757.2 1,025.30 682.9 558.9

Annual Exploration Budgets by Company Type 2010 2011 2012 2013 2014Major 38.3% 67.6% 106.3% 51.4% 62.7%Intermediate 22.1% 14.2% 17.8% 34.8% 9.4%Junior 39.6% 46.4% 49.4% 29.4% 22.4%Total 591.1 757.2 1,025.30 682.9 558.9

Inversión en exploración en el Perú

Isac Burstein, Top Mining Junior, Nov 2004, Basado en cifras de SNL Metals Economics Group

Peru enjoys a very dynamic exploration community and efficient mining cadastre

Mineral Discoveries

Number of significant discoveries Non-Bulk discoveries World: 1975-2013

made Number of Discoveries

150

100

50

0 1975 1980 1985 1990 1995 2000 2005 2010 2015

Note: Excludes satellite deposits within existing Camps. Also excludes Bulk Mineral discoveries. Giant >6 Moz Au, >125 kt U3O8, >1 Mt Ni, >5 Mt Cu equiv Major >1 Moz Au, >25 kt U3O8, > 100 kt Ni, >1 Mt Cu equiv Moderate >0.1 Moz Au, >5 kt U3O8, >10 kt Ni, >0.1 Mt Cu-equiv Source: MinEx Consulting © September 2014

MinEx Consulting


Moderate Discoveries Major Discoveries Giant Discoveries

Number of significant discoveries made Non-Bulk discoveries World: 1975-2013

Number of Discoveries On average 60-70

150 made each year in

Need to adjust for the fact that it takes time to report a discovery and 100

drill it out

50

0 1975 1980 1985 1990 1995 2000 2005 2010 2015

Note: Excludes satellite deposits within existing Camps. Also excludes Bulk Mineral discoveries. Source: MinEx Consulting © September 2014

MinEx Consulting


discoveries are the World

Estimated Unreported Discoveries Moderate Discoveries Major Discoveries Giant Discoveries

Number of discoveries made by Commodity Moderate+Major+Giant discoveries in the World: 1975-2013

Number of Discoveries

150 288 130 701

1366

12% 5%

28% 55%

100 2485 100%

50

Over half of the discoveries were

GOLD 0 1975 1980 1985 1990 1995 2000 2005 2010 2015

Note: Excludes satellite deposits within existing Camps. Also excludes Bulk Mineral discoveries. Source: MinEx Consulting © September 2014

MinEx Consulting


Estimated Other Uranium Base Metals Gold

Number of discoveries made by Company Type Moderate+Major+Giant discoveries in the Western World: 1975-2013

Number of Discoveries 150

100

50

0 1975 1980 1985 1990 1995 2000 2005 2010 2015

Note: Figures are adjusted for shared discoveries Western World only. Excludes discoveries made in FSU, Eastern Europe and China Excludes satellite deposits within existing Camps. Also excludes Bulk Mineral discoveries.

Source: MinEx Consulting © September 2014

MinEx Consulting


Estimated Unknown Other State Owned Co Prospectors Junior Companies Moderate Producers Major Companies

Percentage of discoveries made by Company Type Moderate+Major+Giant discoveries in the Western World: 1975-2013

Number of Discoveries

100% Junior Companies now

account for 50-60% of all discoveries in the

Western World 80%

60%

40%

20%

0% 1975 1980 1985 1990 1995 2000 2005 2010 2015

Note: Figures are adjusted for shared discoveries Western World only. Excludes discoveries made in the FSU, Eastern Europe and China Excludes satellite deposits within existing Camps. Also excludes Bulk Mineral discoveries.


MinEx Consulting


Other State Owned Co Prospectors Junior Companies Moderate Producers Major Companies

Until recently discovery rate moved in-line with exploration expenditures

Non-Bulk exploration spend and discoveries World: 1975-2013 Huge increase in spend, but no corresponding Number 2013 US$ Billion

$30 150

ation

100 $20 Number of Discovery performance has been affected by

higher input costs (labour, drilling and

admin). 50 $10

Is partly offset by shift to Brownfield Exploration

(but this delivers smaller- sized discoveries) 0 $0

1975 1980 1985 1990 1995 2000 2005 2010 2015

Note: Based on Moderate, Major and Giant discoveries. Excludes satellite deposits within existing Camps. Source: MinEx Consulting © September 2014 Also excludes Bulk Mineral discoveries and expenditures.

MinEx Consulting


increase in the number of discoveries Explor

Spend

Discoveri

es

Est

Average Cost per discovery (2013 US$m)

GOLD UnUniitt didiscscoovvereryy

ccoosststs Weighted Average for ~$150m hahavvee dodoubublleded iinn thethe

2000-2009 = $77m Weighted Average for llasastt dedeccadeade

1980-89 = $44m

Estimated

IfIf yyoourur eexplxploorraatiotionn ~$180m bubudgdgeett iiss $5$5mm thenthen

BASE METALS thethe ooddddss ooff mmakiakingng aa ((mmoodedesst)t) didiscscoovvereryy

Weighted Average for Weighted Average for 2000-2009 = $64m iinn aa ggiivvenen yyeaearr araree

1980-89 = $23m llessess thanthan 11 iinn 3030

Estimated Exploration is a high-

activity

Discovery costs are rising Unit cost per for a moderate-sized Gold or Base Metal discovery in the World


Note: Discoveries are for deposits >0.1 Moz Au or >0.1 Mt Cu-eq Data from 2005 onwards have been adjusted for unreported deposits

MinEx Consulting


Significant Saskatchewan (Uranium)

discoveries in the World: 2004-2013

Carparthian Belt Alaska/Yukon Northern

Ontario China & Far East Russia

SW USA/ Mexico

West Africa Central Africa Latin America

Base Au Metal U O Australia Other 3 8

Giant Major

Moderate Ten current “Hot Spots”

N = 605 605 deposits found in the last

decade Note: Excludes Bulk Mineral discoveries. Note: “Moderate” >100koz Au, >10kt Ni, >100Kt Cu equiv, 250kt Zn+Pb, >5kt U3O8

“Major” >1Moz Au, >100kt Ni, >1Mt Cu equiv, 2.5Mt Zn+Pb, >25kt U3O8 “Giant” >6Moz Au, >1Mt Ni, >5Mt Cu equiv, 12Mt Zn+Pb, >125kt U3O8 Source: MinEx Consulting © September 2014

MinEx Consulting


Junior Financing

Cash Reserves and Expenditures have dropped dramatically MEDIAN Australian Junior Exploration Company : 1998-June 2014

During a downturn, “in-field” exploration &

development expenditures are cut the

most

2013 A$ Million pa

Cash Reserves

Cash Reserves are at an

all-time low Exploration & Development

Admin costs tend

to be “fixed”

Administration

Net Other

Note: Survey based on a sample of 125 junior exploration companies listed on the ASX between 1998-2014 “Net Other” includes production and other costs less interest income, mine revenue, Government Assistance and R&D tax credits

Quarterly spend data has been multiplied by 4x to produce an annualised spend rate

Source: MinEx Consulting © September 2014 based on Quarterly Reports to the ASX

MinEx Consulting


The lack of cash is of main concern to those junior companies with low market caps

Compnaies can always raise cash by issuing new shares ….. but that’s Cash Reserves (A$ Million) difficult if the market cap

is low

There are some companies where Mkt Cap < Cash !!

Market Cap (A$ Million) as at 14 Sept 2014 Note: Cash reserves (as at March-June 2014) for 1980 publicly listed Junior Explorers.

Excludes companies with annual revenues >A$1m. Based on ExRate of A$1.00 = C$1.00 = US$0.90


MinEx Consulting


Junior Explorers with very small market-caps are at most risk of failing

Cumulative Number 100%

Other Exchanges TSX/TSE ASX

80%

60% Mkt Cap ASX TSX Other

40% Depending on the

20%

0% $0 $2 $4 $6 $8 $10 $12 $14 $16 $18 $20

Market Cap (A$ Million) as at 14 Sept 2014

Note: Based on an analysis for 1980 publicly listed Junior Explorers - 1258 on the TSE/TSX, 589 on the ASX and 133 on other exchanges (such as the CSE, NYSE, AIM, NEC, NZE,OTC and NEC and Pink Sheets). Based on ExRate of A$1.00 = C$1.00 = US$0.90


MinEx Consulting


Other Exchange

Mkt <A$0 .5m 1% 12% 20%

jurisdiction 5-30% of Juniors are at risk of

<A$1m 5% 26% 30% <$A$2m 17% 42% 48%

going under

Mining & Exploration Challenges

• Urgently adopt a long-term approach to the mining industry • Mining will still be for several decades a solid base for the economic

development of the country • Guarantee the implementation of future copper producers in Peru • Increase investment in mineral exploration to expand reserves and resources

and discovery of new deposits. • Promoting mineral exploration is essential to increase both metal production

and long-term resources • Ensure that initial exploration projects can become mining operations • Both financial and technical incentives are required • Excessive social-environmental barriers have to be removed to allow the

development of a modern, competitive, responsible and sustainable mining industry

• Despite of the effort of the government and the MINEM to reduce unnecessary environmental bureaucracy, other environmental instances have not changed their anti-mining attitude

• Companies, INGEMMET and academia urgently need to joint efforts for a sound scientific and technical development of the mining industry

• Technical improvements are needed to promote exploration: – INGEMMET offers 1:100,000 and 1:50,000 scale regional maps covering the

whole of the country and most of the territory is also covered by drainage geochemical sampling.

– Regional geophysical surveys (magnetic and radiometric) are insufficient. – As exploration matures, the need to improve, innovate and implement new

geophysical exploration methods will increase. – Radiometric age data is extensive, but still needs to be expanded. – Isotopic studies useful to distinguish most productive mineralized systems and

to identify mineralization sources are still very limited. – Studies of magmatic arcs related to mineralized systems are insufficient.

Mining & Exploration Challenges

alturas minerals

Investor Relations

per metal

quoted in us

pas chile cost us

us dollar strenghtening

promedio mundial us

volatile metal

precious metal

base metal