high grade copper in chile
TRANSCRIPT
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High Grade Copper in ChileEl Roble Copper Project Acquisition
Renewed Strategic Direction
Renewed strategy to build a diversified portfolio – near term production to complement
exploration activities, multiple geographies, and reduced risk
Comval Project
• The company’s exploration activities to date have prioritised key target zones at the Comval Project
• Encouraged by the first pass drilling results at Kapangawan, complementing the recent discoveries at
Bayag Bayag and Tagpura North skarns
• Further exploration work is required on all three targets
• Exploration work undertaken to date by Mining Group at Comval supports potential economics of
mine but difficult to fund required exploration in the current market conditions
Chilean opportunity
• Current market conditions has led to a renewed strategy
• Chilean opportunity has potential to provide near term, low CAPEX, high grade copper production
• Strategy to become self funded through discovery of economic widths of high grade near surface
copper using modern exploration techniques
• Historic surface waste dumps have additional potential for cashflow
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El Roble Key Highlights
• IOCG style copper/gold veins with up to 30% copper
• Historic mining (1800’s) with 9% copper cut off grade to 500m depth
• Multiple continuously mineralised veins 0.5m to 15m in width
• Mineralisation traceable over 6 kilometre strike length
• No modern exploration carried out
• Within one of the World’s premier IOCG provinces
• 25km from port city of Caldera
• Nearby toll treatment facilities available
• Staged payment entry
• Large contiguous concession package over favourable geology
• Drill ready targets
• Potential to identify very high grade near surface Cu ore that can be
processed at existing treatment facilities
• Medium (1-2% Cu) grade surface stockpiles available
Multiple
Mineralised
Veins
Potential for Low
CAPEX Cost
production
Proven High
Grade Copper at
Surface
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Excellent
Location
Favourable
Acquisition Terms
• Historic underground mines at Viuda, Estaca, Ecuador and Panga used copper cutoff grade of 9%
• Recently installed ore drive faces sampling averaging 4.90% Cu at Veta Gruesa and 16.25%Cu at Descobridora
• Hand sorted ore drive development ore is upgraded to plus 9% and shipped as direct SMELTER ore
• Material between 2.5% and 9% Cu is shipped as leach ore to ENAMI
• Super high grade in the oxide zone of mineralized veins, mineralogy consists predominantly of chalcocite, cuprite and covelite as secondary sulphides.
• Individual veins can be traced over 2-3 kilometers, always mineralized with variable width. Cu leached out in top 3-5m
El Roble – Very High Grade Copper
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Top- Overview of El Roble vein system
Bottom Left – high grade cuprite, covelite, chalcopyrite sample
Bottom Right – high grade atacamite, azurite, cuprite sample
El Roble – Location/Infrastructure
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Location and Infrastructure
• Coastal location, 25km from the
port of Caldera
• 90km by road to the mining city
of Copiapo
• Sealed road to within 10km of
project
• Two ENAMI toll treatment copper
plants located within 70km
Features
• World class IOCG province
• Previous surface exploration has
exposed multiple mineralized
veins
• No modern exploration or
exploration under sand cover
• Focus will be to discover repeats
of thicker sections mined
historically
• Consolidated land
holding covering over
6000 hectares of
prospective belt
• Major strike extend
covered by sand dunes
• Staged payments over 4
years for 68%
• Acquire additional 22%
post feasibility study
• Vendors final 10% free
carried until banking
El Roble Concessions
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El Roble – History of High Grade Production
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• Multiple strike extensive vein sets
• System mapped over 6km of strike at surface – additional strike extent covered by sand
• Orebodies occur as lenses along major structures
• Historic mines and piquinero workings traceable over 6km of strike
• Four major historic mine areas – vein width increasing with depth estimated 1 million T of ore mined at >9% Cu1
• Estimate of 500kt of waste dumps in the project area grading 1% to 2% Cu 1
• No modern exploration work ever conducted
1 – Stromberger, American Canyon Mining Chile Ltda internal report, 2000
Veta Gruesa vein showing leached zone at surface and high grade lens with depth - looking NE
El Roble Exploration Strategy
• Focus will be on delineating high grade tonnes.
• Systematically delineate all vein structures through mapping, trenching and sampling to locate economic lenses – low cost
• High resolution magnetics will be a powerful tool – copper associated with iron oxides
• Drill high grade targets
• Blue sky is a larger lower grade (0.6-1.5% Cu) deposit
• Regional evidence that high grade veins lead to larger deposits – i.e. Candelaria and Manto Verde
• Structural model suggests potential for a large deposit at depth
• Due diligence sampling has demonstrated mineralisation continuity and high grade at surface:
o Samples up to 28.83% Cu from production areas and 20.46% from surface sampling on undeveloped lens.
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Sample Type East North Level Sample ID Cu % Au(ppm) Fe(%) Co(ppm) Mo(ppm)
Select, Veta Gruesa Mine 344257.98 7007016.39 936 ACPCH-000045 6.67 0.35 37.40 880 610
Select, Veta Gruesa Mine 344257.98 7007016.39 936 ACPCH-000046 4.98 0.11 31.60 710 650
Select, Veta Gruesa Mine 344257.98 7007016.39 936 ACPCH-000047 3.01 0.17 31.00 820 470
Select, Descubridora Mine 343587.00 7007908.36 917 ACPCH-000048 28.83 1.67 15.75 170 120
Select, Descubridora Mine 343587.00 7007908.36 917 ACPCH-000049 13.67 3.16 22.10 720 170
Select, Descubridora Mine 343587.00 7007908.36 917 ACPCH-000050 6.24 3.24 21.10 650 220
Underground development face chip due diligence samples
El Roble – Continuous High Grade Copper
Width Cu% Au ppm Fe % Co ppm
Mo
ppm
1.00 20.46 0.17 22.40 200 190
3.20 13.40 2.71 26.80 868 57
1.60 13.09 0.24 20.45 2 244
2.00 8.08 2.50 16.90 50 30
4.74 5.00 0.24 35.47 2011 210
1.50 4.65 1.05 3.25 470 0
2.40 5.61 1.40 32.94 328 220
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Selected channel sample results
from due diligence sampling – note
this information is selected high grade results
and may not represent any potential orebody
• Potential for multi
commodity orebodies
El Roble Near Term Production Opportunities
MINING • Potential for near term cash flow from initial
small underground start up
• Ore grade stoping panels being assessed at
Descubridora and Veta Gruesa veins
• Extract high grade oxide ore and toll treat at
nearby ENAMI plants
• Potential to extract up to 5000T per month on
existing permit conditions
WASTE DUMPS• Potential for near term heap leach operation
from processing of historical waste dumps
• Estimated 500,000T of oxide material grading
1% to 2% copper
• Preliminary metallurgical testwork and survey of
dumps planned before end of 2013
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Top-Entrance to the middle level
of the Veta Gruesa mine looking
SW
Bottom- Veta Gruesa ore drive
face
Summary – MNE Renewed Strategic Direction
Renewed strategy to build a diversified portfolio – near term production to complement exploration
activities, multiple geographies, and reduced risk
– Comval, Philippines
• Economic potential has been shown
• Multiple attractive target zones require further drilling – difficult to access required level of
capital in current market conditions
• Given potential deposit size and funding requirements, other funding strategies being
considered
– El Roble, Chile
• Potential to provide near term low CAPEX, high grade copper production
• Evidence of widespread, near surface super high grade copper plus gold and other metals
• Historical mining, no modern exploration, drill ready targets
• Nearby processing facilities
• Potential for near term cash flows
– El Roble provides potential in the future for self-funding of a larger exploration program, de-risking
company and reducing future capital raising needs
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Head Office
Suite 1 Ground Floor
83 Havelock Street
West Perth, WA 6005
W: www.mininggroup.net.au
Zeffron Reeves, Managing Director
P: +61 419 714 495
Investor Relations
Market Eye
Ronn Bechler, Managing Director
M: +61-400 009 774
Contacts
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As at 26 July
ASX Code MNE
Total Shares¹ 191,442,724
Listed 20c Options ex 1 July 2014 40,422,230
Listed 5c Options ex 30 June
201565,042,830
Unlisted Options² 7,050,000
Top 20 Shareholders (as at 26 July)
41%
Share Price $0.027
Market Cap $5.12 million
Cash on Hand @ 30 June 2013 ~$1.72 million
Notes:
1. Total shares include: 188,842,724 listed ordinary shares and 2,600,000 unlisted
ordinary shares escrowed to 17 January 2014.
2. Total unlisted options includes: 1,500,000 Options Exercisable at $0.20 each on or
before 1 July 2014; 400,000 Options Exercisable at $0.55 each on or before 28
February 2014; 300,000 Options Exercisable at $0.60 each on or before 1 April 2015
; 50,000 Options Exercisable at $0.60 each on or before 14 May 2015; 500,000
Options Exercisable at $0.45 each on or before 15 July 2014; 3,750,000 Options
Exercisable at $0.20 each on or before 1 July 2015; 250,000 Options Exercisable at
$0.20 each on or before 13 Nov 2014; 300,00 Options Exercisable at $0.25 each on
or before 13 Nov 2015.
• Listed July 2011
• Acquired Comval from Cadan (TSX) in Jan 2012
� Comval Copper Gold Project has a number of
prospective target zones
� New opportunity in Chile as part of our renewed
strategic direction
Appendix – company overview
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Appendix – Mining Group Board
Board
Winton Willesee, Non-Executive Chairman
• Highly experienced director
• Strategy, company development, corporate
finance, company administration and
governance experience
• Currently Chairman and/or director of a
number of ASX listed companies
Zeffron Reeves, Managing Director
• Over 15 years’ mining and management
experience, from grass roots exploration
to underground mining
• Extensive technical, corporate and commercial
experience in Australia and offshore
Cobb Johnstone, Non-Executive Director
• Mining engineer with over 30 years’ experience
in copper, gold and metalliferous mining,
including both large open cut and underground
operations
• Previously General Manager at some of
Australia's largest mines, including KCGM,
Olympic Dam and Northparkes
• Successfully constructed and operated mines in
Zambia, China, Canada, Argentina and Australia
Robert Butchart, Non-Executive Director
• President & CEO of Cadan Resources with
extensive Philippines experience
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This presentation has been prepared for the consideration of interested parties in the equity funding of Mining Group Limited (MNE) and does not carry any right of publication or disclosure to any other party. This presentation is incomplete
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The information in this presentation is based upon information provided by the management of MNE as well as publicly available information and reflects prevailing conditions and our views as of this date, all of which are accordingly subject
to change. In preparing this presentation, we have relied upon and assumed, without independent verification, the accuracy and completeness of any information made available from the management of MNE and public sources.
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Whilst the information presented and views expressed in this presentation and the oral briefing have been prepared in good faith, MNE accept no responsibility or liability to any party in connection with such information or views.
Competent person’s statement
The information in this report that relates to Exploration Results is based on information compiled by Mr Zeffron Reeves (B App Sc (Hons) (Applied Geology) MBA, MAIG), a member of the Australian Institute of Geoscientists and is an
employee of the Company. Mr Reeves has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in
the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Reeves consents to the inclusion in this report of the matters based on this information in the form and context in which
it appears.
Exploration Target
It is common practice for a Company to comment on and discuss its exploration in terms of target size and type. The term "Exploration Target" should not be misunderstood or misconstrued as an estimate of Mineral Resources and Reserves
as defined by the JORC Code (2004), and therefore the terms have not been used in this context. Exploration Targets are conceptual in nature, and it is uncertain if further exploration or feasibility study will result in the determination of a
Mineral Resource or Mining Reserve.
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• are necessarily based upon a number of estimates and assumptions that, while considered reasonable by MNE, are inherently subject to significant technical, business, economic, competitive, political and social uncertainties and
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