Forward Looking Statements. Competent Persons Statement

Transcription

1 February 2010

2 Disclaimer Forward Looking Statements This presentation includes forward looking statements that have been based on the Company s current expectations about future events. These forward looking statements are, however, subject to risks, uncertainties and assumptions that could cause actual results, performance or achievements to differ materially from the expectations expressed or implied in such forward looking statements. The Company does not make any representations and provides no warranties concerning the accuracy of such forward looking statements, and disclaims any obligation to update or revise any forward looking statements based on new information, future events or otherwise except to the extent required by applicable laws. Competent Persons Statement The information in this presentation that relates to Exploration Results is based on information compiled by Rimas Kairaitis, who is a Member of the Australasian Institute of Mining and Metallurgy. Rimas Kairaitis has sufficient experience which 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 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Kairaitis consents to the inclusion in this report of the matters based on his information in the form and context in which it appears. 2

3 Company Overview Shares on issue m Options on issue 5.925m Market Capitalisation (at 22c/share) $36 m Cash (31 Dec 2009) $11.5*m Enterprise Value $24.5 m * Does not includes$1.5m cash payable to YTC upon settlement of the joint venture agreement between MetalsX Ltd and Yunnan Tin Group China; Due March Substantial Shareholders % Ownership Yunnan Tin Group 15% Wonderful Investments 9.75% China Yunnan Tin Metals (HK) 5.95% 3 3

4 Enacting the YTC Growth Strategyt 2009 saw the execution of YTC s 2 pronged growth strategy utilising its Yunnan Tin Alliance partnership: 1. Advanced Project Acquisition as growth driver for YTC HERA 2. As Agent for Major Project Acquisition for Yunnan Tin RENISON JV Targeting further growthtransactionsin transactions in Oct 2008 June 2009 July 2009 Sept IPO Exploration Focus during asset bubble Switch to acquisition focus during market correction Hera Acquisition announced Renison JV Announcement YTC as deal agent $1.5m success fee Ongoing profit share management fee. $25m Capital Raising Complete Hera Project DFS & Development Further Yunnan Tin Alliance transaction 4

5 Hera Project History 2001 Discovery of Hera deposit by Pasminco 2003 Triako purchase Hera from Pasminco s Receivers Drilling campaign delineates top of new Cobar style system Positive Pre Feasibility Study completed on Hera deposit CBH takeover of Triako in scrip $70 million scrip bid Hera was Triako s primary asset at the time of takeover CBH significantly increased the size of the Hera resource Decline permitted 2009 YTC acquires Hera from CBH for $11m cash + royalty YTC acquires 80% interest in Nymagee JV for $1m cash 5

6 Hera Strategy Parallel ldfs & Exploration programmes Purchase DFS Production Growth Purchase Exploration Resource Expansion 6

7 Cobar Basin World ldclass Mineral Province Hera Gold Project tenure covers ~24km strike ofthe eastern Cobar Basin Eastern margin of the Cobar basin hosts a number of world class mineral systems Pb, 1.9% Zn & 18g/t Ag CSA and The Peak New Occidental mineral systems have a semi continuous mining history of >100 years. Huge exploration potential within the Hera Project tenements The Peak NewGold (Can) (1990 pre mining Resource) 8.9g/t Au, 0.9% Cu, 1.6% Endeavor Mine CBH Resources (2008 Resource) : 6.5% Zn, 3.9% Pb, 55g/t Ag, 0.2% 02%Cu CSA Mine Glencore (1995 Endowment) : 3% Cu, 0.5% Pb, 0.6% Zn, Nymagee Cu Mine 5.8% 58%Cu HERA GOLD DEPOSIT 7

8 Hera Project: Location Bourke Endeavour Mine CBH Resources Zn Pb Ag A u s t r a l i a Armidale Cobar The Peak Mine NewGold Au Cu CSA Mine Glencore Cu Tritton Straits Cu Mt Boppy Au Mine Polymetals Nymagee Cu Mine Cu Girilambone Cu Mine Straits Resources Nyngan Dubbo New South Wales Hera Project Sydney Canberra HERA Project Mineral Hill Kimberley Metals Cu Au Pb Zn 100kms Northparkes Mine YTC Office Rio Tinto Cu Au Parkes ORANGE Cadia Mine Newcrest Cu Au Cowra Bathurst Lithgow SYDNEY Newcastle

9 Hera Project Resource History Type Tonnes (M) Gold (Au g/t) Copper (Cu %) Lead (Pb%) Zinc (Zn%) Silver (Ag g/t) Indicated Inferred Far West TOTAL Triako/AMC Consultants Main Lens & 1530 Lens only Goldfocused JORCResourceResource 510,000 # contained Au Eq ounces using 2.5g/t Au Eq cut off Werners MAIN LENS Tonnes Gold (Au Copper Lead Zinc Silver (Ag Type (M) g/t) (Cu %) (Pb%) (Zn%) g/t) Indicated Western Pb East Inferred TOTAL CBH Resources Ltd Ld mineralised lenses Base metal focused JORC Resource Based on a 7.5% Zn Eq cut off Hays YTC Resource Update March 2010 Plan view of mineralised lenses # Refer Appendix 3 Gold Equivalent 9

10 Hera Mining Evaluation Pre DFS: Base Case YTC s BaseCase mining scenario, using Main Lens, gives a Mining Inventory of1.14mt* 14Mt* Model assumes ore is trucked to CBH s Endeavor plant (approximately 75% capacity available) Tonnes Gold Copper Lead Zinc Silver (M) (Au g/t) /) (Cu %) (Pb%) (Zn%) (Ag g/t) /) Base Case Financial Model MtlSl Metal Sales (LOM) A$415m Operating Surplus (LOM) A$202m Avg Oz Au Eq per vertical metre 2,040 Mine life 7 years Purchase Costs ($11m) Estimated Royalty (LOM) ($8m) Cash cost (C1) per Oz Au Eq (LOM avg) A$360 NPV A$90m IRR 94% Ore mined & processed 1.1 Mt Expected Annual Metal Production Au bullion & concentrate 39,000oz Ag concentrate 77,000oz Zn 6,700t Pb 3,800t Cu 330t Expected sale products Gold Dore Gravity Gold Pb Ag Au con 55% Pb, 49g/t Au, 176g/t Ag Zn con 52% Zn Cu Ag Au con 20% Cu, 137g/t Au, 176g/t Ag * Block Model Calculation of Mining Inventory Grade estimated using separate metal domains for gold and base metals Block Model value estimation uses a 90 g/t Au top cut Expected metal prices, process recovery and metal payability estimated to generate an A$/tonne value for each ore block A$170/tonne cut off applied to produce a Mineral Inventory 85% Mine Recovery & 15% Mining Dilution applies to produce a Diluted Mining Inventory Triako s 2005 PFS Au grades re applied to Block Model Metal price assumptions: Au = US$800/oz, Cu = US$4,000/t, Pb = US$1,300/t, Zn = US$1,300/t, Ag = US$12.5/oz 10

11 2005 PFS vs 2010 DFS PFS Triako 2005 DFS YTC Gold A$575/oz 7 10 Gold A$1,200/oz Zn A$1,585/tonne Zn A$2,200/tonne Pb A$848/tonne Pb A$2,200/tonne Process Toll Treatment Process On Site likely Result NPV: $7m IRR 17% Result NPV:?? IRR:?? 11

12 Hera DFS GR Engineering Services appointed as lead Consultant to the DFS Resource Infill/Extension Drilling completed mid Feb Stage 1 Metallurgy Complete DF HeraProject Manager GRES Lead Consultant Geology & Resources YTC Mining Optiro with GRES input Metallurgy Leo Consulting, Metcon & Gekko Systems Process Plant & Infrastructure GRES Plant Civils, Hydrology & TSF Coffey QA/QC Audit Infill Drilling New Geological Interpretation New Resource Calculation & Ore Deposit Model External Audit Mining Geotechnical Assessment Final Mine Design Met Testwork Flow sheet optimisation Flow Sheet Design Process Plant, Services & Infrastructure Plant & Infrastructure Geotechnical TSF Site Drainage ARD Final Project Design 12

13 Hera DFS Indicative Flow Sheet Ore 2 Stage Crush VSI Crush Target P80 600um Screen Bulk Concentrate Sales Or Bulk Concentrate Conc 25% Flash Float Bulk Float Gravity1 Re Grind P80 45um Option to Leach Bulk Conc for Au Gravity2 Cu Float Pb Float Electro win Leach Concentrate Sales Zn Float Tails 75% Tailings Storage Facility gold doré 13

14 Hera Project Development Timeline Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec10 Jan Feb Mar Apr May Definitive Feasibility Study Mine Development Exploration Permitting PRODUCTION Time line depends on Board decision to commence decline ahead of DFS delivery Key DFS Decisions: Start Box Cut & Decline ahead of DFS Completion Process Decision: Toll Treat vs On Site 14

15 Hera DFS Resource Drilling Existing drill hole Infill Drill hole: completed Infill Drill hole: planned Section 2850N HRD012 Assays Pending HRD011 Assays Pending Main Lens outline HRD g/t Au, 0.9% Pb & 1.62% Zn (Main Lens) HRD % Cu, 0.56g/t Au & 33g/t Ag (New Copper Lens) CNYDD017: 70g/t Au, 8.5% Pb, 11.1% Zn, 38g/t Ag HRD g/t Au, 0.35% Pb & 0.48% Zn (Main Lens) HRD009W1 6.2g/t Au, 23g/t Ag, 2.8% Pb & 4.3% Zn (Main Lens) HRD014 Assays pending HRD020 In Progress North 100m Main Lens $170 /tonne shell outline HRD013 Assays Pending HRD004 Assays Pending Potential Northerly Plunge extension on Main Lens Hera Gold Project Main Lens Long Section looking west Grid: GDA Zone 55 Scale as Shown

16 Hera Project: Conceptual ldevelopment Conceptual Hera Mine Development 16

17 Hera Project: Potential ti western Cu Au zone Resource Drilling intersects unexpected Cu Au mineralisation on western margin 3DVi View of Hera Main Lens and potential western Copper Gold Lens Looking NE 17

18 Hera DFS Permitting Part 5 Approvals (for Exploration Decline) )in Place: Map showing development permitted under existing Part 5 (Exploration Decline) approval. 18

19 Hera Exploration Strike Potential Hera Gold Project tenure covers ~24km strike of the eastern Cobar Basin Hera deposit has no surface expression Drill Holes beneath the Nymagee Cu Mine include; VNY1A: 8% Cu (u/g) Drilling at Nymagee indicates a southerly plunge open at depth. The use of the gravity technique is key to further blind discoveries. Nymagee Cu Mine Hera Gold Deposit Prospective Corridor N 5km 19

20 Hera Exploration Hera North Existing drilling shows Hera mineralisation continues 200m to the North MAIN LENS NORTH Northern Most Hole: CNYDD g/t Au, 82g/t Ag, 6.5% Pb, 2.1% Zn from 333m Exploration holes testing beneath and along open strike to the North as part of current programme MAIN LENS SOUTH 1530 LENS FAR WEST LENS 100m 20

21 Gravity a proven technique in defining Cobar Basin deposits Block 1 Gravity Results have defined the new Zeus target: Encouraging first drill results Follow up Zeus holes planned Hera Exploration Gravity First 2 Zeus holes 1.2% Zn, 0.1% Cu and 0.57% Pb Follow up holes planned 2121

22 Hera Exploration Gravity Hera Zeus Gravity Inversion Models 3D image of Block 1 Gravity Results Block 1 Gravity modelling has defined a Hera Style gravity anomaly for high priority drill testing 222

23 9,900mRL TNY g/t Au 0.78% Cu, 4.0% Pb, 6.1% Zn, 44g/t Ag Hera Exploration Far West Lens TNY051 NSR TNY g/t Au 1.4% Pb, 2.5% Zn, 12.5g/t Ag 9,850mRL CNYDD018A 5.06g/t Au 4.4% Pb, 7.3% Zn, 22g/t Ag North 50m 9,800mRL CNYDD g/t Au 5.8% Pb, 3.6% Zn, 53.5g/t Ag TNY061 NSR HRD g/t Au, 1% Cu, 1.8% Pb & 0.95% Zn 6 9,750mRL Map Area 1 HRD001W1 1.2g/t Au, 0.21% Cu, 2.4% Pb & 0.51% Zn TNY074AW 15.2g/t Au 7.5% Pb, 12.5% Zn, 42g/t Ag RL 9,700mRL 1 Target Drill Hole pierce point Existing Drill Hole with intersection HRD010W2 In Progress 5 3,450mN 4 3 3,400mN 9,650mRL 3,350mN HRD010W2 Assays Pending 23

24 Hera Upside Exploration at Depth The Hera Deposit represents an exploration analogue to CSA and other Cobar Deposits Major depth potential CSA Cu endowment (1995) : 3% Cu Longitudinal Section through main Cobar deposits from the west, A steep northerly plunge is evident in most ore bodies. Mineralisation extends well below 900m depth HERA Cross Section Looking North CSA Cross Section Looking North 24

25 Hera Upside Nymagee Joint tventure Long section of Nymagee Copper Mine (source CBH ) Nymagee copper mine operated between with recorded production of 422,000 tonnes grading 5.8% Cu Mined to 250m below surface potential exists below the historical mine Limited modern exploration has identified a southern plunging copper shoot which h appears open down plunge Untested gravity anomaly to the north Only 5km from the Hera deposit YTC 80% interest 25

26 Summary Hera Project set to join the resurgence in NSW gold production Hera is a high grade gold and base metal deposit proven mining district Strong initial Resource drilling and DFS metallurgy results Rapid mine development (approximately 18 months) Initial Base Case mine life of 7 years Low capital cost development YTC s development model focuses on the Main Lens only Further 9lenses within the Hera Project offer potential for expansion Tremendous exploration upside in Cobar style system Exploration in parallel with mine feasibility and development NSW Gold Production ( ) 26

27 Appendix 1 YTC Board Dr Wenxiang Gao Non Executive Chairman Anthony Wehby Vice Chairman Rimas Kairaitis Chief Executive Officer Christine Ng Non Executive Director Dr Guoqing Zhang Non Executive Director Richard Hill Non Executive Director Robin Chambers Non Executive Director Stephen Woodham Non Executive Director Over 20 years experience as a senior mining engineer in China. Dr Gao is the General Manager of Yunnan Tin Group, the world s largest tin producer. Partner of PricewaterhouseCoopers Australia (Coopers & Lybrand) for 19 years specialising in the provision of corporate finance advice. di Anthony is a consultant with ihtandem Corporate, based din Sydney. Sd Geologist with over 14 years experience in minerals exploration and resource development in gold, base metals and industrial metals. Mr Kairaitis has a strong record of exploration success in NSW. Christine is an Executive Director of China Yunnan Tin Minerals Group Co. Ltd (listed on Hong Kong Stock Exchange). A materials scientist who has completed his PhD in Materials Science from China Central South University. Dr Zhang is an expert in metals and metal alloys. Over 15 years experience in the resources industry as both a solicitor for Clayton Utz and a geologist and commercial manager for mining companies in range of mineral commodities worldwide. A lawyer with over 30 years experience in the resources sector. He is the Senior Partner of Chambers & Company, an international law firm based in Melbourne, and Special Counsel China for its affiliate, the New York law firm of Chadbourne & Parke (Beijing, China). Over 15 years experience in the mining and exploration industry, specialising in field logistics and support and land access in rural and remote environments. 27

28 Appendix 2 Acquisition Terms Key Acquisition Terms for Hera Project Payment of A$1 million non refundable deposit Further payment of A$10 million subject to FIRB and shareholder approvals 5% gold royalty on gravity gold doré production from the Hera deposit payable to CBH Resources Ltd, capped at 250,000 ounces gold Option to integrate Hera ore processing into CBH s Endeavor processing plant 28

29 Appendix 3 Gold ldequivalent 2005: Triako/AMC Consultants Main Lens & 1530 lens only. Using 2.5g/t Au Eq cut off Gold Equivalent Resource: 8.8g/t Au Eq Assumed metal values for Au Equivalent calculations Au US$/oz 800 Cu US$/tonne 4,000 Pb US$/tonne 1,300 Zn US$/tonne 1,300 Ag US$/oz 12.5 USD/AUD 0.7 Assumed metal recoveries for Au Equivalent calculation. Metallurgical recoveries based on 2005 Triako Metallurgy Studies: Recoveries Gold gravity 50% Recoveries Gold Pb Conc. 26% Recoveries Gold Cu Conc. 16% Recoveries Silver Pb Conc. 60% Recoveries Cu Conc. 19% Recoveries Zn 80% Recoveries Pb 85% Recoveries Cu 80% It is the company's opinion that all the elements included in the metal equivalents calculation have a reasonable potential to be recovered. Au Equivalent calculation formula = (Metal price x metal grade) (gold price per oz 31) 29