red crescent resources investor presentation may 2011
TRANSCRIPT
Red Crescent Resources (TSX: RCB)Base Metals Development in TurkeyAlan M Clegg, Executive Chairman & CEO
1
This information presentation has been prepared based on information provided by Red Crescent Resources (“RCR” or "Company"). The information contained in this document has not been independently verified. No representation or warranty express or implied is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained herein. It is not the intention to provide, and you may not rely on this document as providing, a complete or comprehensive analysis of the Company's financial or trading position or prospects. The information contained herein is subject to change and readers are cautioned not to place undue reliance on forward-looking statements contained in this document. The Company is under no obligation to correct or update any such forward-looking information.
None of the Company nor any of its respective affiliates, advisors or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this document or its contents or otherwise arising in connection with the document. No person is authorized to give any information or to make any representation not contained in this document and, if given or made, should not be relied upon.
This information memorandum is strictly confidential to the recipient and may not be reproduced or redistributed to any other person, including the press or other media. This document is not an offer of securities for sale in the United States or elsewhere. Securities may not be offered or sold in the United States absent registration or an exemption from registration under the United States Securities Act 1933, as amended. The Company does not intend to register the securities or conduct a a public offering in the United States. Neither this document nor any copy of it may be taken or transmitted into or distributed, directly or indirectly, in the United States or to any U.S. persons.
Forward Looking Statements
2
Capitalize on Turkey’s metals & minerals potential
World class assets
Low cost producer
+Opportunity for asset consolidation
Red Crescent’s Vision
Why Turkey?
1. High potential for base metals
2. Historically inaccessible
3. Favorable investment climate
4. Excellent infrastructure
5. Growing economy
6. 100% doorstep market
Opportunity for modern mining3
China, Bulgaria, Russia, Iran,
Saudi Arabia, UAE
Export
Markets
April – NovemberDrilling Season
Alacer Gold, Aldridge, INMET,
Newmont Mining
Other Listed
Players
Key DepositsCopper, Zinc, Lead, Chrome,
Manganese, Iron Ore
Mining in Turkey
4
• Exploration and development of 3 base metal projects:• Hakkari Zinc• Sivas Copper• Tufanbeyli Zinc
Our Primary Focus
5
6
Our Project Locations
Geographic & Mineral Diversification
Hakkari - Zn
Sivas - Cu�
�
Tufanbeyli - Zn�
7
Initial NI 43-101 2010 - 2.5 Mt
@ 3.3% Zn
Historical Mining of 600kt @ +25% Zn (+30% Zn-equivalent – Zn/Pb/Ag)
Established potential for +50Mt @ +20% Zn equivalent (Zn/Pb/Ag)
Phase 2 program 10,000m for
10Mt @ +15% Zn equivalent
Hakkari Zinc Project
7
8
Acquired Q2 2011
Potential for +300Mt @ +1.5% Cu
Drilling program launched in Q2 2011 (15,000m)
Joint venture with Petmin
launched in Q2
Sivas Copper Project
8
9
Historical mining: 200Kt @ 23% Zn; 12,500m drilled for 3Mt NCR @ 10% Zn
Hakkari Type: MVT Zinc & lead mineralization
Target potential for 2011 drill
program +5Mt @ 10% Zn,
some Pb delineation
Mining & Concentrate
production planned for Q3/Q4
2011
Tufanbeyli Zinc Project
9
10
Competitive Advantages
• Strong reputation for delivery within Turkey’s
government and mining communities
• Key relationships with regional and local contacts
• Key operations and management based in Turkey
• Globally multi-commodity experienced management
team
• Builders of mines – not explorers!
11
• 35 years of mining experience
• Expertise in project management
• Focused on Sivas Copper Project
Doug TaylorProject Director & G M
• 25years of mining experience
• Member of Turkey’s Chamber of Geological Engineers
• Focused on Hakkari and Tufanbeyli Zinc projects
Muhannad ArarProject Director & GM
• 30 years of mining experience
• Registered Professional Mining Engineer
• Active on 60+ mining projects with value of US $8B
Alan CleggPresident & CEO
Rick GielCFO
• 25 years of financial and operational experience
• Served as CFO of NiCo Mining
Uygar SaylamProject Manager
• 8 years of mining project experience
• Specialist hydrogeologist with expertise in exploration
geology, permitting, environmental & feasibility studies
Management Team
11
12
$3.7 MNet loss
$0.9 MTotal liabilities
$4.1 MCash & equivalents
Working capital $5.9 M
Fully funded to November 2011
At December 31, 2010
Financial Highlights
13
Financial Highlights
• Budget spend* for 2011 ($ millions):
$3.0 $3.5
$2.5
Hakkari Zinc Project
Tufanbeyli Project
Sivas Copper
*Includes working capital and cashflow from operations
Recent Milestones
• 43-101 Initial Resource Estimate for Hakkari• Sivas Copper Project acquisition• Petmin equity financing arrangement • Senior management appointments• Concentrator deployment plan initiated for
Tufanbeyli and Hakkari14
15
Q243-101 Report for Tufanbeyli Project
Drilling programs start
Take-off agreement
Q3Phase 2 drilling results for Hakkari
Phase 1 Sivas target ID confirmation
Deploy mobile concentrator (cash flow)
Q4Sivas Phase 1 initial drilling results
Tufanbeyli Phase 2 initial drilling results
Hakkari Phase 2 drilling close out
Upcoming Milestones - 2011
15
16
• Geographic & mineral diversification
• Net cash flow of $5M in 2012
• License acquisition and consolidation
World class assets
Low cost producer
+
Long-term Objectives
$33 millionMarket capitalization
$0.37 - $0.9952-week range
82.6 millionShares outstanding
Dec. 31Fiscal year end
$0.40Recent share price (May 17, 2011)
RCBTicker symbol
Listing TSX
Market Data
17
• Capitalizing on Turkey’s metals potential• First mover advantage in key areas• 3 base metal projects under exploration• Development with strong potential• Opportunity for asset consolidation• Early cash flow• Lower-cost quartile producer • Potentially world-class assets
RCB’s Investment Summary
18
Appendix
20
Hakkari Zinc Project
21
Hakkari Zinc Project
22
Sivas Copper Project
23Porphyry (including Cu and polymetalic) deposits – from Yigit, 2009)
Sivas Copper Project
24
10%20%
55%
15% Institutions
Insiders
Retail
Petmin
Total shares outstanding: 91 million
Capital Structure
Volcanogenic massive sulfide oresVMS
Million tonsMT
Thousand tonsKt
SilverAg
LeadPb
ZincZn
CopperCu
MVT Mississippi Valley Type
Glossary
25
26
416 815 0700 ext. 243
[email protected] Racanelli
www.redcrescentresources.comWebsite
Alan Clegg
+90 530 662 8964
+27 82 469 8378
Questions
26