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Exploring Ireland’s Rich Potentia July 2013

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Exploring Ireland’s Rich Potential. July 2013. Disclaimer. - PowerPoint PPT Presentation

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Page 1: Exploring Ireland’s Rich Potential

Exploring Ireland’s Rich Potential

July 2013

Page 2: Exploring Ireland’s Rich Potential

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 in Connemara Mining Co 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 to enter into, any contract or commitment whatsoever. No reliance may be placed for any purpose whatsoever on the information or opinions contained in this presentation or on any other document or oral statement or on the completeness, accuracy or fairness of any such information and/or opinions. No undertaking, representation, warranty or other assurance, express or implied, is made or given by or on behalf of Connemara Mining Co plc or any of their respective directors, employees or advisers, as to the accuracy or completeness of the information or opinions contained in this presentation, and (save in the case of fraud) no responsibility or liability is accepted by any of them for any such information or opinions or for any errors, omissions, misstatements, negligence or otherwise contained or referred to in this presentation. The contents of this presentation have not been approved by an authorised person within the meaning of the Financial Services 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 (as amended) 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 therefore has not been approved by the Irish Financial Services Regulatory Authorities being the competent authority for the purposes of Directive 2003/71/EC in Ireland. This presentation is not an offering document for the purposes of section 49 of the Investment Funds, Companies and Miscellaneous Provisions Act 2005 of Ireland.

This Presentation has been prepared by the Directors of Connemara Mining Co plc and is being issued solely to and directed at persons who have professional experience in matters relating to investments falling within Article 19(1)(a) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended the "FPO") or (b) high net worth entities and other persons to whom the presentation may otherwise lawfully be communicated, falling within Article 49(1)(a) of the FPO (all such persons together being referred to as "Relevant Persons"). In consideration of the receipt of the presentation each recipient warrants and represents that he or it is a person falling within that description. Delivery of this information to any other person or reproduction, in whole or in part, without the prior consent of Connemara 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, the distribution of this document in jurisdictions other than United Kingdom or Ireland may be restricted by law and persons into whose domain this document comes should inform themselves about, and observe, any such restrictions. Any failure to comply with these restrictions may constitute a violation of laws of any such other jurisdictions.

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Disclaimer

Page 3: Exploring Ireland’s Rich Potential

Connemara Mining is actively exploring on 24 licences in Ireland

Focus on zinc and gold Connemara has on-going Joint Ventures

with Teck (2) and Hendrick Resources

Exchanges AIM (LSE) Ticker CON Shares in Issue 35,739,711 Market Cap £1.88 m Shareprice 5.25p

Company Snapshot

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Share Price – 1 Year

Significant ShareholdersCorporate Information

James Michael Finn 11.28

John James Teeling 11.25

Statestreet Nominees Limited 9.96

Trampus Limited 6.79

Jack Teeling 4.7

Emma Teeling 3.36

Stephen Teeling 3.36

Page 4: Exploring Ireland’s Rich Potential

John Teeling Executive Chairman 40 years experience in mineral exploration. Established Connemara in 2004. Is chairman of a number of AIM resource companies

Jim Finn Director 20 years resource company experience. Holds qualifications in finance and accounting. A director of a number of resource and industrial ventures. Has led the listing procedure for ten AIM companies.

Vivian Byrne Non-Executive DirectorTechnical Director of SLR Consulting Ireland, 40 years experience of the international minerals industry, former senior executive European exploration RTZ. Consultant to European and World Bank programmes in Africa, Caribbean and the Pacific

Graham Reid Technical DirectorGraham Reid is a geologist with over 30 years experience including extensive international experience in mineral exploration and site investigation fields. Graham is a founder of B.R.G. (Geotechnics) Ltd, a junior exploration company, to whom the Company has contracted its selection of prospecting licences and its field exploration

Executive Team: Experienced and Successful

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Page 5: Exploring Ireland’s Rich Potential

Company Strategy

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Utilise our existing geological data to cost-effectively expand our

mining portfolio in Ireland

Refine our exploration to better understand our

assets and move closer to realising asset value

Utilise the management team’s considerable

network and experience to identify and realise value in

Ireland and abroad

Enter into Joint Ventures with partners to explore and develop our mining

portfolio

Shareholder Value

Page 6: Exploring Ireland’s Rich Potential

Primarily used to galvanise thin sheet metal to protect against corrosion, particularly for the construction & automotive industries

Extensive use in die casting parts for a wide variety of uses including white goods and automotive

Consumption growing at 4% pa due to increasing demand from Brazil, Russia, India, and China.

Current prices are profitable for Irish zinc producers.

Sluggish supply towards the middle of the decade with the closure of several large mines. Almost 1 million tons of supply expected to be lost to the system.

Very little exploration in the last 30 years and mines are running out.

ZincZinc in Ireland

Ireland is the most prospective country in the world for zinc

Ireland produces 25% of Western Europe’s zinc

The Boliden/Tara mine is the largest zinc mine in Europe and 6th largest in the world.

The Vedanta mine at Lisheen is in the top 12 worldwide

Over 20 international firms are exploring in Ireland

Three significant discoveries have been made in the last few years:

Teck/Connemara, at Stonepark in Limerick

Xstrata, Limerick – bought out junior partner, Minco for $19.4m in 2011

Lundin Mining, Clare – high grade results

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Page 7: Exploring Ireland’s Rich Potential

Fundamentals look good. Uncertainty stimulates demand Growing uses in jewellery and electronics Gold was mined in Ireland over 1000 years ago In 1796 a Gold Rush in Avoca with estimated 9000oz Au extracted Recently there has been a revival

— Galantas operating a small mine near Omagh, County Tyrone— Dalradian have a 2.7m oz deposit in Tyrone, can proceed with underground development

without Environmental Statement— Conroy has extensive low grade mineralisation on the border region— Significant discoveries in the Wicklow/Wexford area by 3 companies but nothing

commercial to date.

The principals of Connemara have been involved in gold exploration since the 1980’s

Gold

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Page 8: Exploring Ireland’s Rich Potential

Licence Summary

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Block Licences Resource Latest News

Limerick – Joint venture with Teck.

6 Zinc & Lead Teck review completed 3000m of drilling to end 2012.

Oldcastle – Teck committed to spending €1.35 m to earn 75%

5 Zinc & Lead Joint venture with Teck. Significant exploration programme planned for 2013. Possible drilling in Q4.

Wicklow/Wexford Block (JV with Hendrick Resources who must spend €1 m to earn 75%)

5 Gold Positive results from Airborne Geophysics & soil sampling have been detailed & extended. Follow up is being planned

Thurles 3 Zinc & Lead Licence extensions to 2014.

Newcastle West 5 Zinc & Lead Joint Venture partners sought.

Page 9: Exploring Ireland’s Rich Potential

Licence Summary

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Page 10: Exploring Ireland’s Rich Potential

Connemara has two Joint Ventures with Teck– Canada’s largest diversified resource company– Third biggest producer of zinc in the world

JV in Limerick; Teck have spent €5.7m, Connemara €1.7m. Teck control 76.2%. Connemara have the option to dilute by not subscribing

JV in Oldcastle, Teck spending €1.35 m to earn a 75% interest

Joint Venture Agreements

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Joint Venture with Hendrick Resources, a private Canadian gold company

JV exploring five licences held on Wicklow/Wexford border – 130km2. Hendrick is earning a 50% interest in the licences for €500,000, rising to 75% for €1 million

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Comprises of six connecting licences in County Limerick

23.8% owned by the Company, 76.2% owned by Teck Ireland Ltd. €7.4m spent to date

Located 5km away from the Xstrata Pallas Green zinc discovery

Three significant zones of zinc mineralisation (Appendix 1 and 2) all of which remain open:

– Stonepark (discovered 2007)– Stonepark North – High Grade (2009)– Stonepark West (2011)

Principal issue for Teck is whether there is 30m mineable tonnes at sufficient grade

Xstrata is completing a pre-feasibility study on Pallas Green. They need more ore.

Connemara will not participate in the 2013 budget so will own 23.5% by end of 2013

Teck focus moved to north Irish midlands

Limerick Area: Teck JV: Zinc/Lead on Stonepark/Monaster

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The Stonepark Discovery

Key:

Page 12: Exploring Ireland’s Rich Potential

2012 Limerick Status

1212

Untested area in Limerick Syncline – depth to target >1500m.

Large hydrothermal breccia system (6x14km) with multiple zones of Zinc and Lead mineralization

Hydrothermal breccias and 35% Zn+Pb over 2.0 m, remains open to the northwest – still largely untested

Deep hole failed to reach top of target horizon

Page 13: Exploring Ireland’s Rich Potential

Oldcastle Block – Joint Venture with Teck: Zinc/Lead

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Page 14: Exploring Ireland’s Rich Potential

Geologically and structurally analogous to the setting of the >100 Mt Navan deposit just 30 km to the east

Offers the prospect of large tonnage – like Tara

Consists of 5 licences covering 130 sq kms An 11 hole drilling programme carried out

by Connemara in 2008 proved up extensive low grade Zn/Pb mineralisation related to significant NE-SW striking mineralising faults at Drumlerry

Teck has completed a seismic and virtual drilling programme with targets currently being evaluated

Drilling could to commence by Q4 2013 Teck must spend €1.35 m to earn a 75%

interest.

Oldcastle Block – Target Area

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Target Area

Oldcastle Block

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Oldcastle Block – Reflection Seismics

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Seismics Reflection Lines 2013

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Five prospective licences obtained in this area which has a long gold history

Recent high grade discoveries by IMC on adjacent ground

Extensive database from previous exploration held by Connemara and others

Gold has previously been discovered at Tombreen and Knocknalour with grades of up to 18.6g/t

An airborne magnetics survey has revealed a number of hotspots

Recent soil sampling producing positive results

Detailed target follow-up to possibly to include deep overburden sampling/trenching/detailed IP

No cost to Connemara as Hendrick is spending €1m to earn a 75% interest

Wicklow/Wexford: JV Hendrick Resources: Gold

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Mine River Block

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Wicklow/Wexford: Magnetics & DTM

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Digital Terrain Model – Airborne 2012Total Field Magnetics– Airborne 2012

Knocknalour

Tombreen

Caim

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Wicklow/Wexford: Highlights

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Mineralised Highlights Title Zone Description

CMCaim Mine

Pb, Ag

Mined intermittently from 1815 to 1846. Mined an estimated

2245 tons Pb + associated Ag. Minor Au in recent drilling

KRKnocknalour

Au

Geochem, trenching, Drilling - 7 Holes. Best Results:

2554-1 (18.89g/t Au over 0.3m), 2554-2 (19.9g/t Au over 0.4m)

TNTombreen

Au

Geochem, trenching, Drilling - 6 Holes. Best Results:

TBD-1 (11.65g/t Au over 0.4m), 2558-3 (18.4g/t Au over 0.5m)

MRMine River

Au

Geochem, trenching, Drilling - 3 Holes. Best Results:

2552/2 (0.28g/t Au over 1.75m)

BYBoley

Au

Geochem Prospecting/Drilling - 1 Hole. Best Results:

Float Qtz 8g/t Au. 12-2551-4 (354g/t Au over 1.5m)

PLPrimrose Hill

Au

Geochem Pionjar - Best Results:

Float 4.8g/t Au, DOB 127ppb Au

KHKilrush

Au

Bedrock Gold- Best Results:

4 g/t Au in qtz veined chloritic schist

KMKilloughrum

Au

Geochem Float - Best Results:

Float phyllite 500ppb Au

BWBallinstraw

Au

Geochem Stream/soil - Best Results:

950ppb Au in Stream pan concentrate, 17ppb in DOB

GHGibbet Hill

AuSoil at over 480ppb Au

Page 19: Exploring Ireland’s Rich Potential

Wicklow/Wexford: Tombreen & Knocknalour

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Tombreen Detail Knocknalour Detail

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Wicklow/Wexford: Tombreen & Knocknalour

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Best Trench Results Knocknalour Detail

Page 21: Exploring Ireland’s Rich Potential

Wicklow/Wexford: Tombreen & Knocknalour

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Tombreen Trench 1

Knocknalour Trench 1

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Licences were chosen for their proximity to the Lisheen Zinc Mine

– (22.79Mt, 12.04% zinc / 2.05% lead) And the Galmoy Mine

– (9.9Mt, 12.8% zinc / 1.3% lead). Similar host lithologies to both

mines, interesting regional structural trends and relatively sparsely explored nature

Target blocks were chosen from available geological/geochemical and geophysical databases

4 drill holes completed for a total of 1200m (Red dots)

No mineralisation encountered but positive structural indicators

Licence extension obtained

Thurles Block: Zinc

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Target Blocks

Thurles Block

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Teck returned this 10 licence block to Connemara in Q4 2012

Located approx. 20km southeast of Stonepark area

14 drill holes completed totalling 3228 metres (Red stars)

Intercepts from on-trend mineralisation include:

– 5.3m grading 9.6% Zn, 2.1 %Pb– 4.5m grading 12.3% Zn, 1.6% Pb

Connemara has identified 5 high potential areas on the block

5 Eastern licences surrendered in April

Newcastle West Block: Zinc/Lead

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Newcastle West Block

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Newcastle West Block: Sole Venture: Target Areas

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Newcastle West Block: Sole Venture: TargetsArea AOn the northern side of a major ENE trending linear that extends from the Kilmeedy inlier and stops against NW-SE trending gravity ridge – a possible fault offset. Much of this zone is untested by recent geochemical soil sampling, so this could also be extended. There are relatively high Zn soil values in the northern part of this area.Area BThis area is on the eastern side of NW-SE trending gravity linear, with a weaker ENE linear to the south. High Pb soil values in the area.Area CThis is an area of elevated Zn soil values and lies to the east of a NW-SE trending gravity linear.Area DThis area lies to the east of a NW-SE trending gravity and topographical linear. There is minor brecciation in the target testing drillholes on PL1943 to the west, which would be worth lithogeochemical sampling.Area EA weak NW-SE trending magnetic linear to the west of this area, with high magnetic intrusives to the east frame this area. This is also on a NNW trending high gravity ridge and with generally high Pb*Zn values.Area FThis area lies on the northern edge of a ENE trending gravity high, and generally high Cu/Pb/Zn soil values.

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Appendices

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Appendix 1: Stonepark Intersections

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Hole ID From (m) To (m) Thickness (m) zinc (%) lead (%)TC-2638-103 264.15 268 3.85 5.35 1.38

Including:

TC-2638-103 264.15 265.35 1.2 12.41 4.66TC-2638-100 276 289 13 0.14 0.04TC-2638-099 244.8 252 7.2 6.37 2.17

Including:

TC-2638-099 244.8 247.47 2.67 10.88 4.03TC-2638-095 248.8 250.8 2 11.62 0.49TC-2638-091 381.2 383.6 2.4 4.47 0.21TC-2638-0863 382.5 385 2.5 4.16 4.37

TC-2638-074 220 228.65 8.65 7.72 2.19 Including:

TC-2638-074 224.45 227.3 2.85 17.41 3.98TC-2638-064 273 276.1 3.1 1.92 0.56TC-2638-071 260.3 262 1.7 3.01 0.09TC-2638-064 290 288 2 1.09 0.01TC-2638-60 292.7 315.15 22.45 1.24 0.07

Including: 310.85 312.25 1.4 8.05 0.17

TC-2638-055 195 199.9 4.9 10.57 3.05 Including: 196.75 199.5 2.75 16.47 5.26

TC-2638-053 209.4 216.25 6.85 10.47 3.68 Including:

TC-2638-053 212.8 215.55 2.75 19.76 6.99

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Appendix 1: Stonepark Intersections – continued

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Hole ID From (m) To (m) Thickness (m) zinc (%) lead (%)TC-2638-051 221.4 228.95 7.55 4.88 1.49

Including: TC-2638-051 224.05 225.05 1 21.9 7.26 TC-2638-045 209.1 216.55 7.45 19.24 8.52

Including: TC-2638-045 211.85 216.1 4.25 26.64 12.3TC-2638-038 251.4 253.2 1.8 5.65 0.91TC-2638-036 202.7 208.05 5.35 13.22 3.18TC-2638-032 207.6 215.4 7.8 5.18 2.68

Including: TC-2638-032 214.05 215.4 1.35 10.4 2.16TC-3638-026 216.05 223.35 7.2 13.07 2.23TC-2638-017 327.45 328.45 0.95 27.69 12TC-2638-016 348.25 361.9 13.65 2.23 0.12

Including: TC-2638-016 349.05 350.5 1.45 4.35 0.24TC-2638-016 354.2 357.5 3.3 4.29 0.14TC-2638-016 360.9 361.9 1 4.92 0.01TC-2638-008 550.1 557.45 6.5 5.02 1.17

Including: TC-2638-008 556.2 557.45 1.1 16.19 3.07TC-2638-007 394.85 410.2 14.9 3.25 0.33

Including: TC-2638-007 394.85 397.7 2.8 12.18 0.75TC-2638-006 460.7 461.15 0.45 2.26 1.54TC-2638-004 372.75 374.05 1.3 6.85 0.3TC-2638-004 376.1 380.1 4 11.62 3.46

Including: TC-2638-004 378.95 380.1 1.15 28.61 4.17

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Appendix 2: Stonepark Discovery History – 2007

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TC-2638-004 – 4m @ 11.62% Zn & 3.46% Pb from 376.1m

10Mt @ 12% Zn+Pb

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Appendix 2: Stonepark Discovery History – 2008

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TC-2638-007 – 14.9m @ 3.25% Zn & 0.33% Pb from 394.85mIncl. 2.8m @ 12.18% Zn & 0.75% PbTC-2638-008 – 6.5m @ 5.02% Zn & 1.17% Zn from 550.1m

TC-2638-012 – 0.95m @ 2.37% Zn & 4.73% Pb from 203.15m

14Mt @ 12% Zn+Pb

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Appendix 2: Stonepark Discovery History – 2009

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17Mt @ 10.2% Zn+PbTC-2638-026 – 7.2m @ 13.07% Zn & 2.23% Pb from 216.05mTC-2638-032 – 7.8m @ 5.18% Zn & 2.68% Zn from 207.6m

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Appendix 2: Stonepark Discovery History – 2010

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24Mt @ 9.2% Zn+PbTC-2638-036 – 5.35m @ 13.22% Zn & 3.18% Pb from 202.7mTC-2638-045 – 7.45m @ 19.24% Zn & 8.52% Zn from 209.1m

TC-2638-053 – 6.85m @ 10.47% Zn & 3.68% Pb from 209.4m

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Appendix 2: Stonepark Discovery History – 2011

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19Mt @ 10.3% Zn+Pb

?TC-2638-074– 8.45m @ 7.72% Zn & 2.19% Pb from 220m

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TC-2927-009– 0.62m @ 7.01% Zn & 0.82% Pb from 246.5m

TC-2927-008– 1m @ 1.49% Zn from 468m

TC-2927-004– 0.59m @ 1.39% Zn From 401.16m

TC-2638-099– 7.2m @ 6.37% Zn % 2.17% Pb from 244.8m

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Appendix 2: 2011/2012 Stonepark Status

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Untested area in Limerick Syncline – depth to target ~1000m

Large hydrothermal breccia system (6x14km) with multiple zones of Zinc and Lead mineralization

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Contact Details

WWW.CONNEMARAMINING.COM

[email protected]

T: +353 1 833 2833

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