Qualified Person:

Transcription

1 September 15, 2014

2 Qualified Person: Jake Foronda, Vice-President of Operations of TVI Resource Development (Phils.), Inc. (TVIRD), is acting as the Qualified Person in compliance with NI reporting requirements with respect to the Agata project technical information in this presentation. Forward Looking Statements: This presentation contains forward-looking statements including management's assessments of future plans and operations, and expectations of future production, including the statements with respect to when Mindoro expects production and the direct shipping of high-iron laterite resources at the Agata project to commence. These statements are based on current expectations that involve a number of risks and uncertainties, which could cause actual results to differ materially from those anticipated. These risks include, but are not limited to, the risks associated with the mining and exploration industry (e.g. operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty with respect to results of exploration, the uncertainty of estimates and projections relating to production and the uncertainty of the availability of capital). The assumptions used in the preparation of such statements, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. The Company does not undertake to update forward-looking statements except where required to do so by law. 2

3 Mindoro has teamed with an experienced partner to develop the Agata project into a two-phase nickel operation in the Philippines, building on early revenue from direct shipping ore (DSO) and moving into processing by Agata project interests, assuming all options exercised: Mindoro: 40% (15% + 25% option) TVIRD: 60% (fund DSO into production and complete a processing feasibility study; operator of project) 3

4 1. Direct Shipping Ore (DSO) Operation Robust economics: IRR 187% & 1 yr. payback Offtake agreement signed to ship 1M wmt over 1 st yr. $2M advance on sales received by Agata JV company 1 st shipment expected within 30 days 2. Processing Operations Proven technology for an intermediate nickel product Definitive Feasibility Study near completion First intermediate nickel product targeted Limestone DSO and processing opportunities 4. Gold and Copper-Gold discovery potential 4

5 Exchange & Symbol Shares outstanding Fully diluted TSX-V:MIO FFT: OLM 297M 366M Share price $0.04 Market capitalisation Current treasury (Aug. 31, 2014) Major Shareholders Prime Holdings 25.4% TVI Pacific 14.4% $11.9M $328,000 Shares Reserved for Issue (Millions) Warrants 61.8 Options 1.9 Property Acquisitions 5.4 Loan Bonus Shares 0.1 Total 69.1 Number (Millions) Price Expiration Warrants 5.98 $0.31 Jul $0.31 Jul $0.10 Sep $0.10 Oct Options 0.20 $0.125 Jan $0.19 Mar $0.10 Jul

6 25.4% Prime Resources 68.4% (Philippines) 5% Mindoro (TSXV: MIO) 14.4% TVI Pacific 30.7% 2 (TSX:TVI) 100% MRL Nickel (Philippines) 40% 1 Agata Joint Venture 60% TVIRD (Philippines) 1 Option signed in August 2014 to acquire 25% interest from Minimax Mineral Exploration. 2 TVI Pacific s 30.7% interest held through subsidiary TVI International Marketing Limited 6

7 Non-Executive Directors: Rob Garden, QC, Director & Chairman: 38 yrs. in natural resources law Larry Nagy, Director : Geologist with 36 yrs. in mineral resource industry Cliff James, Director : CEO & President of JV partner, TVI Pacific Executive Directors & Management Penny Gould, Director & CEO: 30 yrs. in business admin, financing and marketing; variety of positions with Mindoro from , including Exec. VP, CFO and President; rejoined Mindoro in Clayton Northey, CFO & Corp. Sec.: 8 yrs. in finance and admin; 6 yrs. with Mindoro as accountant and financial controller before assuming CFO position in Edsel Abrasaldo, COO: VP of Philippine sub, MRL Nickel; major role in operations and sustainability programs, 37 yrs. in Philippine mining industry and 17 yrs. with Mindoro. 7

8 A Sept. 5, 2014, editorial from Stainless Steel News and Nickel Prices: Pre 2000: Rocks containing small percentage of laterite ore = waste Post 2000: China demand prices sky rocket $23.50/lb in mid China invents 'pig nickel using low grade ore imported from Indonesia and Philippines, easing dependence on nickel mines. Pig nickel + new mines prices drop & stockpiles grow ($6.80/lb in 2013). Jan. 2014: Indonesia bans DSO China imports more Philippine ore. Prices rise on prospects of shortage but stockpiles increase, tempering gains. Sept. 2014: Philippines proposes DSO export ban. Potential to strain world supply as China becomes dependent on mines again. Speculators drive price higher. Stay tuned. 8

9 Aug 2014: bill introduced in Philippines to ban unprocessed exports of ore (direct shipping ore, DSO ). Sept. 9: Proponents of bill suggest 7 yrs. before any ban would take effect. Mindoro s Agata DSO project will be substantially mined out well in advance. Production of intermediate nickel product targeted

10 AGATA NORTH RESOURCE Combined Limonite & Saprolite Measured & Indicated: 33.94M 1.10% Ni Inferred: 2.09M 1.04% Ni LUZON Manila AGATA SOUTH RESOURCE Combined Limonite & Saprolite Indicated: 5.04M 0.86% Ni Inferred: 0.45M 0.83% Ni Located in the Surigao region, which has hosted DSO operations since the 1980s; between 13 & 15 DSO operations since 2011 and exported 27 million wmt in PALAWAN Coral Bay Nickel 21,000 Ni tpa (Sumitomo/Nickel Asia) MINDANAO Taganito Nickel Project (Sumitomo- Nickel Asia) 10

11 High iron nickel laterite and limestone deposits 2 km from the coast. On west coast, protected from seasonal monsoons which limits shipping season on east coast. Little vegetation; few people, no one living on laterite deposit. LATERITE LIMESTONE MRL NICKEL PHILIPPINES INC. LATERITE RESOURCE 11

12 Well-Defined Laterite Profile Ferruginous (high iron low nickel grades) Limonite Zone (high iron medium nickel grades) Saprolite Zone (low iron-medium nickel grades) Phase 1 Direct Shipping Ore (DSO) Included in limonite of Agata North Resource, proven and probable: 9.7M 0.93% Ni and 48% Fe Phase 2 Nickel Processing Plant 12

13 Base Case at $22/wmt (1) (for 100% of Project ) NPV (10%) after tax (USD) $38M IRR% 187 Mine Life 10 yrs (majority mined <4 years) Opex 2 Full Capex $10-$12/wmt $11.9M Mindoro: 40% (upon exercise of 25% option) TVIRD: 60% (upon earn-in) Capex Payback 1 yr. Estimated Total Free Cash Flow for Project Yr. 1 Yr. 2 Yr. 3 Yrs (per annum) LOM Million US$ $(6.9) $10.6 $20.6 $15.0 $ $ Prices reached high of >$40/wmt in July 2014; 2 Varies year to year Above information from Sept Feasibility Study, available at and

14 Mindoro will hold 40% of Agata Mining and Processing upon exercise of option to acquire 25% from Minimax Mineral Corp. Key Option Terms: US$60,000 upon signing (paid) US$60,000 (60 days from signing: Oct. 13/14) US$250,000 (6 months after 1 st DSO shipment) US$4,000,000 (five annual installments of US$800,000 commencing 1 yr. after 1 st DSO shipment) Forgive CDN$5.5 million debt owed to Mindoro 0.5% Net Smelter Returns (1) royalty levied on 100% of processing production (does not apply to revenue from limonite DSO) (1) NSR defined as the proceeds from the sale of mineral products after deducting insurance and transportation costs from the processing plant to the purchaser of the processed product 14

15 Offtake agreement to sell 1M wmt, Sept 2014 Sept 2015 $2M advance received by JV to fund initial operating costs 1 st shipment anticipated within 30 days, subject to receipt of remaining permits Mining high iron-low nickel limonite for DSO Low iron-high nickel saprolite for potential future processing 15

16 Active Mining Benches Causeway Stockyard 1 Causeway Stockyard 2 Payong-payong village, scheduled for relocation 16

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19 Shippable stockpiles ready to be hauled to causeway stockyard Sampling Stands 19

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21 Sample preparation building under construction Samples being returned to stockpile after assaying 21

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28 The first NHP cake at 52% to 54% nickel grade produced during the Agata Pilot Plant test at Intertek Minerals Philippines 28

29 Well-Defined Laterite Profile Ferruginous (high iron low nickel grades) Limonite Zone (high iron medium nickel grades) Saprolite Zone (low iron-medium nickel grades) Phase 1 DSO removes the overburden, giving access to saprolite feed for the Phase 2 processing plant Phase 2 Processing Plant Mixed hydroxide product with 40% Ni produced from TVIRD Pilot Plant. Feasibility Study near completion 29

30 Key Elements: 1) Ore body location 2) LGU supportive 3) Near power grid 4) Abundant water 5) Limestone for lime Proposed Nickel Processing Plant Ni Laterite Ore body Port/Causeway 1 Km Limestone MRL NICKEL PHILIPPINES INC. 30

31 TVIRD may earn 60% in processing project by producing Definitive Feasibility Study; expected prior to year end. Tank leach technology is proven and operating in China 1 st nickel production from TVIRD pilot plant announced on March 17, Targeting capex of US$100M and opex of <US$4/lb. Annual metal production target: 7000 tpa Ni metal equivalent as mixed hydroxide product First mixed hydroxide product targeted 2017 Mine life: +20 yrs 31

32 Saprolite 92% 99.5 % Saprolite 0.5 % Limonite Milling Secondary Leach Feed Low Pressure Autoclave (99.5% Saprolite, 0.5% Limonite) +1mm = 53% Feed Grades Ni Fe Mg 35% of total feed (low Fe, high Mg) Primary Leach >1.3% 16-20% <13% Scrubbing Screening Secondary Leach >1.2% <12% 18-20% SULPHURIC ACID Primary Leach Residue -1mm = 47% Limonite 8% 83% Saprolite 17% Limonite 65% of total feed (lhigh Fe, low Mg) Primary Leach Feed Agitated Atmospheric Tanks (87.9% Saprolite, 12.1% Limonite) 32

33 NICKEL PRECIPITATION Nickel Product 6,700 to 7,500 tpa Nickel (contained in Mixed Hydroxide Product of 40% Ni) Sec Leach Residue PLS Overflow COUNTER CURRENT DECANTATION Barren Solution METALS REMOVAL Brine Disposal (approximately 1.97M m 3 per year) Underflow RESIDUE NEUTRALISATION & FILTRATION Leached Ore Disposal (approximately 490,000 tpa solids) 33

34 BENCH SCALE TEST APPARATUS ATMOSPHERIC TANK LEACH LOW PRESSURE AUTOCLAVE 1-2 L Batch Tests Conditions Primary Secondary Residence Time 5hrs 2hrs Temperature 95 C 150 C PILOT SCALE TEST APPARATUS 30 L/hr Continuous Tests Pressure atm 5bar %Ni Extraction Acid Consumption After Leaching 94 % 650 kg acid/t ore 49 t acid /t Ni ATMOSPHERIC TANK LEACH LOW PRESSURE AUTOCLAVE 34

35 Pilot Plant Metallurgist Vito Andrada demonstrates production of NHP from a filter press at the Agata Nickel Project pilot plant at Intertek Minerals Philippines. 35

36 Lawigan LIMESTONE Near-term potential for DSO Medium-term potential for lime processing On coast and existing laterite DSO infrastructure N GOLD AND COPPER-GOLD PROSPECTS Assmicor Gold and Copper-Gold? 0 2 km American Tunnels Gold and Copper-Gold Mindanao Sea SR Metal s DSO Operation Mindoro MPSA boundary Mindoro tenement application SR Metal MPSA Corplex APSA Limestone Nickel laterite mineralization Porphyry copper-gold target Road Mine working 36

37 1. Direct Shipping Ore Operation Simple, quick and generating near-term cash flow 2. Processing Operations Proven technology operating in China Definitive Feasibility Study near completion Construction targeted 2016 & production in Limestone DSO and processing opportunities 4. Gold and copper-gold discovery potential 37

38 Mindoro team being awarded Presidential Award for top junior exploration company in the Philippines for its social and environmental programs 38

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