exploring ireland’s rich zinc and gold potential · 2018. 12. 8. · this presentation is not an...

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Exploring Ireland’s Rich Zinc and Gold Potential February 2018

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Page 1: Exploring Ireland’s Rich Zinc and Gold Potential · 2018. 12. 8. · This presentation is not an offering document for the purposes of section 49 of the Investment Funds, Companies

Exploring Ireland’s Rich Zinc and Gold Potential

February 2018

Page 2: Exploring Ireland’s Rich Zinc and Gold Potential · 2018. 12. 8. · This presentation is not an offering document for the purposes of section 49 of the Investment Funds, Companies

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Disclaimer

This presentation does not constitute or form part of any offer for sale or solicitation of any offer to buy or subscribe for any securities inConnemara Mining Company plc nor shall it or any part of it form the basis of, or be relied on in connection with, or act as any inducement toenter into, any contract or commitment whatsoever. No reliance may be placed for any purpose whatsoever on the information or opinionscontained in this presentation or on any other document or oral statement or on the completeness, accuracy or fairness of any suchinformation and/or opinions. No undertaking, representation, warranty or other assurance, express or implied, is made or given by or onbehalf of Connemara Mining Company plc or any of their respective directors, employees or advisers, as to the accuracy or completeness ofthe information or opinions contained in this presentation, and (save in the case of fraud) no responsibility or liability is accepted by any ofthem for any such information or opinions or for any errors, omissions, misstatements, negligence or otherwise contained or referred to inthis presentation. The contents of this presentation have not been approved by an authorised person within the meaning of the FinancialServices and Markets Act 2000.

This presentation does not constitute an offer to the public as referred to in section 85 of the Financial Services and Markets Act 2000 (asamended) of the United Kingdom and accordingly has not been nor will it be approved by any competent authority in the United Kingdom.This presentation is not a prospectus within the meaning of the Prospectus (Directive 2003/71/EC) Regulations 2005 of Ireland and thereforehas not been approved by the Irish Financial Services Regulatory Authorities being the competent authority for the purposes of Directive2003/71/EC in Ireland. This presentation is not an offering document for the purposes of section 49 of the Investment Funds, Companies andMiscellaneous Provisions Act 2005 of Ireland.

This Presentation has been prepared by the Directors of Connemara Mining Company plc and is being issued solely to and directed at personswho have professional experience in matters relating to investments falling within Article 19(1)(a) of the Financial Services and Markets Act2000 (Financial Promotion) Order 2005 (as amended the "FPO") or (b) high net worth entities and other persons to whom the presentationmay otherwise lawfully be communicated, falling within Article 49(1)(a) of the FPO (all such persons together being referred to as "RelevantPersons"). In consideration of the receipt of the presentation each recipient warrants and represents that he or it is a person falling withinthat description. Delivery of this information to any other person or reproduction, in whole or in part, without the prior consent ofConnemara Mining Co plc is prohibited.

This information is being supplied to you, in whole or in part, for information purposes only and not for any other purpose. In particular, thedistribution of this document in jurisdictions other than United Kingdom or Ireland may be restricted by law and persons into whose domainthis document comes should inform themselves about, and observe, any such restrictions. Any failure to comply with these restrictions mayconstitute a violation of laws of any such other jurisdictions.

Page 3: Exploring Ireland’s Rich Zinc and Gold Potential · 2018. 12. 8. · This presentation is not an offering document for the purposes of section 49 of the Investment Funds, Companies

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Connemara Snapshot

Exposure to decade-high Zinc prices through JV projects and

licence position

Gold exploration success in an emerging gold territory

Low market cap of £3.6 m

Page 4: Exploring Ireland’s Rich Zinc and Gold Potential · 2018. 12. 8. · This presentation is not an offering document for the purposes of section 49 of the Investment Funds, Companies

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Key Points

Active Explorer focussed on Ireland

Vast local experience and proven success

Gold and Zinc in highly prospective geological settings

World class jurisdiction

Balanced mix of 100% owned and JV projects

Page 5: Exploring Ireland’s Rich Zinc and Gold Potential · 2018. 12. 8. · This presentation is not an offering document for the purposes of section 49 of the Investment Funds, Companies

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Experienced Board and Management Team

John Teeling Chairman 40 years’ resources experience including the early days of zinc mining in Ireland,He founded Connemara and, amongst others, African Diamonds, Pan Andean Resources, Minco, andKenmare Resources. Mr. Teeling holds degrees in Economics and Business from University College Dublin,an MBA from Wharton and a Doctorate in Business Administration from Harvard.

Patrick Cullen CEO over 20 years’ in the resources sector including experience at majors (inc.Schlumberger, AngloGold, Placer Dome, Anglo American Platinum) and in exploration with African EnergyResources (ASX), Montero Mining and Exploration (TSX-V) and Kodal Norway (UK) Ltd. He has worked in awide range of commodities and mineralization styles in both exploration and mining expansion projects,holds a BSc. University College Cork, an honours degree in Geology University of Portsmouth (1994) andMBA from the University of Southern Queensland, Australia (2008).

Jim Finn Financial Director 20 years’ experience with exploration companies and extensive experience intheir administration, responsible for listing several resource companies, including two of the firstcompanies ever listed on AIM - Pan Andean Resources and African Gold. He holds a degree inManagement and an Association of Chartered Certified Accountants (ACCA) qualification.

Gavin Berkenheger Technical Director Chartered and European Geologist, extensive knowledge of Irishand UK mineral deposits. Has spent the last 11 years exploring for gold and base metal resources inIreland and Scotland, aided in the development of the Curraghinalt gold deposit in Northern Ireland and isa Director of GreenOre Gold Plc. He holds honours degree in Geology and Petroleum Geology from theUniversity of Aberdeen.

Page 6: Exploring Ireland’s Rich Zinc and Gold Potential · 2018. 12. 8. · This presentation is not an offering document for the purposes of section 49 of the Investment Funds, Companies

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Experienced Board and Management Team

Vivian Byrne Non-executive Director Technical Director of SLR Consulting Ireland, 40 years experience of

Irish zinc and gold, former senior executive European exploration RTZ. Consultant to European and World

Bank programmes in Africa, Caribbean and the Pacific.

Danesh Varma Non-executive Director over 30 years’ experience in the mining finance industry, having

worked for Brookfield Asset Managers, Northgate Exploration Ltd, Westfield Minerals Ltd and the Dundee

Bank. Holds directorships with American Resource Corporation, Anglesey Mining Plc, Labrador Iron Mines

Holdings Limited, Minco and Xtierra.

Page 7: Exploring Ireland’s Rich Zinc and Gold Potential · 2018. 12. 8. · This presentation is not an offering document for the purposes of section 49 of the Investment Funds, Companies

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Corporate Information

Exchange: AIM

Ticker: CON

Recent Share Price: 4.15p

Market Cap: £3.6 m

Shares in Issue: 87 417 618

%Share not in public hands: 16.39%

Warrants: 20 010 000 @ 5p exp. May 2018

11 627 907 @ 3.4p exp. Aug 2019

Page 8: Exploring Ireland’s Rich Zinc and Gold Potential · 2018. 12. 8. · This presentation is not an offering document for the purposes of section 49 of the Investment Funds, Companies

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Shareholders above 3%

(updated 24th January 2018)

Page 9: Exploring Ireland’s Rich Zinc and Gold Potential · 2018. 12. 8. · This presentation is not an offering document for the purposes of section 49 of the Investment Funds, Companies

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6 month price chart

Page 10: Exploring Ireland’s Rich Zinc and Gold Potential · 2018. 12. 8. · This presentation is not an offering document for the purposes of section 49 of the Investment Funds, Companies

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6 month Price with Gold & Zinc

Page 11: Exploring Ireland’s Rich Zinc and Gold Potential · 2018. 12. 8. · This presentation is not an offering document for the purposes of section 49 of the Investment Funds, Companies

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Key projects

Inishowen

Oldcastle JV

Mine River

Stonepark JV

Page 12: Exploring Ireland’s Rich Zinc and Gold Potential · 2018. 12. 8. · This presentation is not an offering document for the purposes of section 49 of the Investment Funds, Companies

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Why Ireland?

• Ranked 3rd in Europe (9th globally) in 2016 Mining Survey: Investment Attractiveness, Fraser Institute of Canada

• Mining Journal, World Risk Report 2017 - Ireland WRR Score 73/100

• Stable jurisdiction, favourable tax regime

• Good infrastructure and skilled workforce

• Existing mining industry and bulk shipping infrastructure

Page 13: Exploring Ireland’s Rich Zinc and Gold Potential · 2018. 12. 8. · This presentation is not an offering document for the purposes of section 49 of the Investment Funds, Companies

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Why Zinc?

• Tight supply fundamentals now and going forward

• Supply constraints due to mine closures and strategic cuts

• Global stockpiles dropped by 1/3 in 2017

• Critically low stock levels expected in Q2 2018

• Battery metal technology

Page 14: Exploring Ireland’s Rich Zinc and Gold Potential · 2018. 12. 8. · This presentation is not an offering document for the purposes of section 49 of the Investment Funds, Companies

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Zinc in Ireland

• 60 years’ history of major zinc mines

• Recognised globally as a leading zinc province

• Ranked 1st in the world for zinc discovered per km2

• High grade orebodies with clean metallurgy

• The big players are mining and exploring here: Boliden, Teck, Glencore, Vedanta

Page 15: Exploring Ireland’s Rich Zinc and Gold Potential · 2018. 12. 8. · This presentation is not an offering document for the purposes of section 49 of the Investment Funds, Companies

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Why Gold?

• Gold discoveries lead to multiples in returns

• Safe haven as investors seek protection against wider market volatility

• Significant growth in demand from Asia

• Worsening geopolitical stability may drive prices higher

• Resurgence in resource nationalism in many parts of the world

Page 16: Exploring Ireland’s Rich Zinc and Gold Potential · 2018. 12. 8. · This presentation is not an offering document for the purposes of section 49 of the Investment Funds, Companies

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Gold in Ireland

• Emerging gold mining territory

• In County Tyrone, Dalradian (market cap £220m) are developing a mine at Curraghinalt (1.44 Moz Reserves 5.24 Mt at 8.54 g/t gold)

• Galantas’ Omagh mine seeking to expand

• Historic exploration by majors and other

• Rich history of alluvial gold mining including 1795 gold rush in Mine River area

Page 17: Exploring Ireland’s Rich Zinc and Gold Potential · 2018. 12. 8. · This presentation is not an offering document for the purposes of section 49 of the Investment Funds, Companies

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Zinc projects

• Oldcastle JV zinc

• Stonepark JV zinc

Page 18: Exploring Ireland’s Rich Zinc and Gold Potential · 2018. 12. 8. · This presentation is not an offering document for the purposes of section 49 of the Investment Funds, Companies

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Stonepark zinc project

• Connemara holds 23.44% of the joint venture company

• Six contiguous prospecting licences in County Limerick where Connemara and Teck made a significant zinc discovery in 2007

• The average grade of the discoveries to date is in excess of 11% combined zinc/lead, 133 holes drilled by Teck between 2007 and 1012 (54,767 km)

• Adjacent to the Glencore Pallas Green project (42 Mt @ 8% Zn-Pb)

• Partner Group Eleven Resources have recently listed and earmarked C$ 1m expenditure

Page 19: Exploring Ireland’s Rich Zinc and Gold Potential · 2018. 12. 8. · This presentation is not an offering document for the purposes of section 49 of the Investment Funds, Companies

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Stonepark zinc project

Page 20: Exploring Ireland’s Rich Zinc and Gold Potential · 2018. 12. 8. · This presentation is not an offering document for the purposes of section 49 of the Investment Funds, Companies

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Oldcastle zinc project

• Joint venture with Teck who are spending €1.35m for 75%.

• Seismic exploration and 4 holes drilled (2760m) with encouraging results

• The geology is similar to Tara Mines 20 km away

• The targets are at 400m to 800 m depth support for the model has been gained from the recent high grade deep discovery at Tara.

• Tara Deep resource is located 2 km from the Tara Mine South West Extension, at depths ranging from 1.2 to 1.9 km

Page 21: Exploring Ireland’s Rich Zinc and Gold Potential · 2018. 12. 8. · This presentation is not an offering document for the purposes of section 49 of the Investment Funds, Companies

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Oldcastle zinc project

Page 22: Exploring Ireland’s Rich Zinc and Gold Potential · 2018. 12. 8. · This presentation is not an offering document for the purposes of section 49 of the Investment Funds, Companies

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Gold projects

Inishowen

Mine River

Page 23: Exploring Ireland’s Rich Zinc and Gold Potential · 2018. 12. 8. · This presentation is not an offering document for the purposes of section 49 of the Investment Funds, Companies

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Inishowen gold project

Page 24: Exploring Ireland’s Rich Zinc and Gold Potential · 2018. 12. 8. · This presentation is not an offering document for the purposes of section 49 of the Investment Funds, Companies

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Inishowen gold project

• Successive exploration campaigns have identified a series of parallel gold bearing veins in a small area at the Meeneragh target

• 12 holes (over 1100 m) and include 3.05m grading at 5.8g/t gold, 4.82 m at 5.48g/t and 14.25g/t gold over 0.5m in narrow veins

• Large licence area, regional scale structures and many areas yet to be tested

• Connemara first to drill for gold in the area

• Discovery holes hosted in Dalradian rocks, 60km from Curraghinalt

Page 25: Exploring Ireland’s Rich Zinc and Gold Potential · 2018. 12. 8. · This presentation is not an offering document for the purposes of section 49 of the Investment Funds, Companies

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Inishowen gold project

Page 26: Exploring Ireland’s Rich Zinc and Gold Potential · 2018. 12. 8. · This presentation is not an offering document for the purposes of section 49 of the Investment Funds, Companies

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Mine River gold project

• 15 km target trend across 7 contiguous licences in counties Wexford and Wicklow

• Significant increase in target following acquisition of former JV partner

• 15 km geophysics (2014) trend correlates with historic data

• December 2017 drilling confirmed exciting grades at Tombreen (16.1 g/t gold over 2 metres)

• Much wider zone of mineralisation than previously known - 8m grading 4.53 g/t gold

Page 27: Exploring Ireland’s Rich Zinc and Gold Potential · 2018. 12. 8. · This presentation is not an offering document for the purposes of section 49 of the Investment Funds, Companies

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Mine River gold project

Page 28: Exploring Ireland’s Rich Zinc and Gold Potential · 2018. 12. 8. · This presentation is not an offering document for the purposes of section 49 of the Investment Funds, Companies

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Mine River gold project

Page 29: Exploring Ireland’s Rich Zinc and Gold Potential · 2018. 12. 8. · This presentation is not an offering document for the purposes of section 49 of the Investment Funds, Companies

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Mine River gold project

• Highly prospective area with abundant mineralised float samples with gold results up to 52.18g/t having been found in the Tombreen and Knocknalour area

• Connemara holds an extensive gold database of historic rock and soil assays, surface geophysics and drill data

• December 2017 prospect at Gibbet Hill recovered samples grading from 0.5 g/t gold to 5 g/t gold supporting a southern extension

• Historic drilling at Knocknalour intersected mineralisation hosted by a coherent

stratigraphic unit –down dip and strike is open

• Drill-ready targets and plan to drill in March 2018

Page 30: Exploring Ireland’s Rich Zinc and Gold Potential · 2018. 12. 8. · This presentation is not an offering document for the purposes of section 49 of the Investment Funds, Companies

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Summary

Decade-high Zinc prices

Gold exploration success in an emerging gold territory

Low market cap of £3.6m

Tightly held and set for rapid growth