Papua New Guinea Partnering Strategy for Resource Development

Transcription

1 Papua New Guinea PNG Mining Conference December 2012

2 PNG Resource Development Foyson has technical resources and funds committed to explore and develop resource projects in PNG, through operating companies Titan Mines & Titan Metals; Foyson has established an excellent track record of working with and assisting local communities; Foyson proposes to PARTNER with local communities and land owners to ensure all parties benefit from resource development; The Directors and Shareholders of Foyson, in return, wish to achieve: - Greater security of tenure from exploration to development; - More timely granting and renewal of tenements.

3 Foyson Resources Limited Australian Stock Exchange listed; Focus on PNG resources; PNG Explorer for >7 years; Key Targets: - Amazon Bay Iron Sands - New Britain Gold/Copper - New Ireland Gold/Copper Experienced Board and management team - project development, exploration and community relations.

4 Foyson Tenements 50% plus 50% Option 100% Titan Mines Limited Titan Metals Limited EL 1396 EL 1642 Atui ELA 1638 Legusulum EL 1628 Poi EL 1623 EL 1640 ELA 1645 Palabong EL 1637 Domara ELA 2149 ELA 1818 Mussau Island EL 1625 Golden Peak ELA 1639 Tanga Island ELA 1663 Manus Island

5 Tenement Rationalization To maximise the potential for value creation, Foyson will focus on exploration and resource development in the following tenements: - Amazon Bay Iron Sands; EL New Britain Copper/Moly; EL New Ireland Copper; ELA 1638, New Ireland Gold; ELA 1818, 1639 Foyson is assessing farm out opportunities for: - Poi; EL Domara; EL Golden Peak; EL New Britain; EL 1640

6 PNG Project Locations 140 o 142 o 144 o 146 o 148 o 150 o 152 o 154 o 156 o 2 o 2 o Lorengau Vanimo MANUS MUSSAU Kavieng SIMBERI 4 o Wewak New Ireland LEGUSULUM SOLWARA Rabaul LIHIR Namatanai TANGA 4 o 6 o FRIEDA OK TEDI Tabubil PORGERA Wabag Mt Hagen YANDERRA RAMU Chimbu Goroka Madang WAFI-GOLPU KAINANTU Yonki Wau HIDDEN VALEY Lae Kandrian New Britain Hoskins Kimbe ATUI SINIVIT PAPUA NEW GUINEA PALABONG NORTH NEW BRITAIN Bougainville Kieta 6 o 8 o Kembra 8 o TOLUKUMA Daru Port Moresby Popondetta POI WOODLARK 10 o KM GOLDEN PEAK DOMARA AMAZON BAY Alotau MISIMA 10 o 12 o 12 o 140 o 142 o 144 o 146 o 148 o 150 o 152 o 154 o 156 o

7 TVI Pacific Inc - Strategic Investment Partner Toronto Stock Exchange listed; Focus on Philippines resources; Philippines Operator / Explorer for 20 years; Operating Canatuan Gold/Copper/Zinc Mine; Developing Balabag Gold/Silver Project; Developing Agata Nickel Project; Diversifying to PNG resource projects; Strong management team - technical, environmental and community relations.

8 TVI Investment in Foyson Amazon Bay Project New Britain New Ireland Mainland

9 Amazon Bay Iron Sands Potentially very large Iron, Titanium and Vanadium sand deposit; Aim to produce high purity vanadium, titanium and iron; Iron and Titanium in solution - requires hydromet separation; Major metallurgical program planned to determine process; Resource to be assessed for suitability for Direct Ship Iron Ore; Potential to be world leader in development of iron sands projects; Strong community support established; Drilling, metallurgy, pre feasibility in CY 2013, in accordance with EL conditions; Detailed Feasibility Study CY 2014.

10 Amazon Bay Processing CHINA HONG KONG BATANGAS PHILIPPINES PNG AMAZON BAY Australia

11 New Britain Gold/Copper Follow up of exploration from 1970 s; Geophysical and diamond drilling program completed CY 2012; Confirmed major copper porphyry target; 102 metres of 0.13% copper and 57ppm molybdenum; Assessment of CY 2012 program to determine follow up drilling for CY 2013; Strong community support established.

12 New Ireland Gold/Copper Follow up of exploration from 1970 s; Major copper porphyry targets on 2 ELAs on New Ireland; Major epithermal gold targets on 2 ELAs on Massau and Tanga Islands; MAC approvals received on all 4 ELAs;

13 Partnering Approach Foyson proposes to PARTNER with local communities and landowners, under the guidance of the local Provincial Governments; Our proposal includes: - Cash commitment per tenement per renewal spent on providing educational and medical supplies; - Negotiated share of project Dividends from any mine development; - Vocational training, as appropriate, to meet the requirements of the project exploration and development, with prioritized access to employment; - Opportunity for land owner groups to invest in all phases of project, including exploration, development, operations, services; on reasonable commercial terms; - Commitment to post mining agri-development, as basis for long term sustainable business.

14 Current Land Owner Assistance Activities Infant Vaccination Programs; Purchasing and delivering of pharmaceutical drugs; Transporting medical officers to remote locations; Water purification programs; Water analysis of drinking water through PNG Water Board; Distribution of HIV Education and Awareness Material; Distribution of mosquito nets; Production of National HIV Education DVD s; Installation of Condom Vending Machines; Grille prevention and eradication programs.

15 Current Land Owner Assistance Activities

16 For personal use only Educa*on Current Education Activities PNG Mining Conference December 2012 Strategy for Creating Shareholder Value May 2012

17 Our Partner - TVI Pacific AWARDED PHILIPPINES BEST OF THE BEST ENVIRONMENT AND SAFETY Multiple, prestigious awards during the 2012 Presidential Mineral Industry Environmental Awards: - Winner Presidential Mineral Industry Environment Award Platinum - Winner Safest Surface Mining operation - Winner Safest Mineral Processing Concentrator Category Past awards include: - Titanium Award for Excellence in Environmental Management (2011, 2010) - Safest Mining Operation (2011) - Safest Surface Mining Operation (2011) - Safest Mineral Processing, Concentrator Category (2011, 2010) - Mining Forest Awards, Metallic Category (2010) - Health and Safety Award (2010)

18 TVI - Leader in Sustainable Community Development Phase 1: Four Quadrants of Community Development - Infrastructure: Built or improved 85 kilometres of roads, including 4 bridges and a spillway; water and electrical systems - Health & Sanitation: Clinic, Health Care for wide area, all impact communities - Responsive Education: Built 6 schools 2500 students; Teachers, equipment, scholarships; Successful high school and college grads - Sustainable Livelihood: Training & Apprenticeship, Microfinance Phase 2: Transition to Enterprise Development - Financed Fishing Vessels for Community fishing business - Supported Women s Sardine Canning Cooperative - Farms & Nurseries: training and employment - Company planning Agro-forestry partnership with community for post-mine period

19 TVI - Leader in Environmental Management Biodiversity 50% of mining area remains in original habitat condition Tailings Management Four tailings storage facilities constructed with three undergoing reclamation Watershed Management More than 30 locations subject to daily, weekly and quarterly water quality monitoring Reclamation and Rehabilitation More than 300,000 trees have been planted since 2004 covering 144 hectares Monitoring Programs Monitoring by third-party professionals completed on weekly, quarterly and annual basis Research Programs Onsite research and studies for passive wetland acid mine treatment using indigenous plants

20 For personal use only PNG Mining Conference December 2012 Strategy for Creating Shareholder Value May 2012

21 Summary Foyson proposes to PARTNER with local communities and land owners, Provincial & national Governments, by providing project participation, to ensure all parties benefit from resource development; The Directors and Shareholders of Foyson, in return, wish to achieve: - Greater security of tenure from exploration to development; - More timely granting and renewal of tenements.