Zamanco Minerals Limited Serenje Ferromanganese Project, Zambia Update October 2013
Disclaimer Not an Offer for Securities This document has been created by Zamanco Minerals Limited (the Company) solely for use at investor presentations to be made by the Company in 2013 and does not constitute nor does it contain an offer or invitation to buy or subscribe for securities in the Company or an inducement to make an offer or invitation with respect to those securities. By attending the meeting where this presentation is made, or by reading the presentation slides, you agree to be bound by the following limitations. Relevant Law & Relevant Persons The distribution of this document in jurisdictions outside of Australia may be restricted by law, and persons into whose possession this document comes should inform themselves about, and observe, all such restrictions. Information is a synopsis only This document only contains a synopsis of information on the Company and accordingly no reliance may be placed for any purpose whatsoever on the sufficiency or completeness of such information and to do so could potentially expose you to a significant risk of losing all of the property invested by you or incurred byyouof additional liability. The information presented in this document is subject to change without notice. Currency references Financial amounts in this document are expressed in Australian dollars, or A$. USD or US$ shall mean the lawful currency of the United States of America. Forward looking Statements This document contains forward looking statements which involve subjective judgment and analysis and are subject to significant uncertainties, risks, and contingencies, many of which are outside the control of, and are unknown to the Company. In particular, these forward looking statements are made only as of the date of this document, they assume the success of the Company s business strategies, and are subject to business, competitive and economic uncertainties and risks. No representation, warranty or assurance (express or implied) is given or made in relation to any forward looking statement by any person (including the Company). In particular, no representation, warranty or assurance (express or implied) is given in relation to any underlying assumption or that any forward looking statement will be achieved. Actual future events may vary materially from the forward looking statements and the assumptions on which the forward looking statements are based. Given these uncertainties, recipients are cautioned to not place undue reliance on such forward looking statements. Subject to any continuing obligations under applicable law or any relevant listing rules of the ASX, the Company disclaims any obligation or undertaking to disseminate any updates or revisions to any forward looking statements in this document to reflect any change in expectations in relation to any forward looking statements or any change in events, conditions or circumstances on which any such statement is based. Nothing in this document shall under any circumstances create an implication that there has been no change in the affairs of the Company since the date of this Presentation. Disclaimer Although reasonable care has been taken to ensure that the facts stated in this document are accurate and that the opinions expressed are fair and reasonable, no representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information and opinions contained in this document and no reliance should be placed on such information or opinions. None of the Company, or any of their respective members, directors, officers or employees nor any other person accepts any liability whatsoever for any loss, however arising, from any use of such information or opinions (save in respect of fraud). No reliance should be placed on the information and no representation or warranty (express or implied) is made by the Company or any of their respective directors or employees or any other person, and save in respect of fraud, no liability whatsoever is accepted by such person in relation thereto.
Zamanco s Strategic Business Plan Right People Strategic Commodities Prospective Regions Value-Adding The vision is to develop the Company into a mid-cap resources entity through the staged development of ferro-alloys projects in southern Africa.
Investment Highlights Zamanco Minerals Limited is a manganese exploration and development company focused initially on Zambia; Zamanco s strategy is to identify manganese ore supplies sufficient to support a scaleable medium carbon ferromanganese operation based in Serenje in central Zambia; Ferromanganese Smelter Study commenced January 2013 Smelter site selected and tenure granted; Smelter and beneficiation design studies 90% complete; Environmental Impact Assessment submitted; Zambia offers excellent geological potential for large high value manganese deposits; Activities are focused on estimating a resource that supports a short project payback period.
Corporate Snapshot Zamanco Minerals Limited ASX Code: ZAM Fully Paid Shares on Issue: 64.55m Deferred Shares: 41.20m Share Price: $0.105 Range (12 months): $0.105 0.22 Market Capitalisation: $6.77m Cash @ 30/9/13: $4.07m Share Price (A$/share) $0.25 $0.20 $0.15 $0.10 $0.05 1,000,000 900,000 800,000 700,000 600,000 500,000 400,000 300,000 200,000 100,000 Volume Debt: $0.00 0 Oct 12 Nov 12 Dec 12 Jan 13 Feb 13 Mar 13 Apr 13 May 13 Jun 13 Jul 13 Aug 13 Sep 13 Oct 13 nil Volume Share Price Directors Directors Shareholdings Geoff Donohue Chairman Geoff Donohue 14.93% Jacques Badenhorst Managing Director Peter Ironside 11.78% Thomas Hill Executive Director Peter McIntyre 9.50% Peter McIntyre Non Executive Director Jacques Badenhorst 1.88% Peter Ironside Non Exec Director/Company Secretary Thomas Hill 1.88%
Current Project Status & Exploration Strategy Exploration Update Tenure secured on existing licences; Evaluation at Nkundalila completed, 2.5km mineralised strike confirmed, initial beneficiation test work positive; Geological review completed, confirmation that Zambia offers possible upside for large, high value manganese deposits; Action: Focus on exploration and resource development to meet smelter requirements, exploring existing and new license areas. Smelter Studies impacted by critical path resource and mining studies Smelter studies 90% complete; Environmental studies submitted; Next stage of BFS requires detailed ore metallurgy; Will not be fully known until resources defined and ore sources confirmed; Action: Smelter Study and related expenditures on hold until resources and mining areas defined. Cash conservation in the current market environment Action: Focus on exploration, minimize expenditures to preserve cash. Action: Identify and acquire prospective high value low cost manganese deposits to reduce smelter input costs
Exploration Strategy Current Projects Nkundalila Located, near Kanona, 25 km from Pensulo smelter site; Strike confirmed over 2.5 km; Sampling completed, low grade horizon present (10-15%Mn); Potential resource to be investigated; Ore upgradeable through beneficiation (36-40%Mn), further test work required. Chinsali Located, near Chinsali, 360 km from Pensulo smelter site; Exploration area recently increased to 974Km 2 ; Exploration potential on larger licence to be reviewed, multiple local occurrences of manganese to be investigated. General High Prospectivity of Zambia for Mn Zambia produces low volumes of world-class, high grade manganese ore for export; Zambia is a globally significant Proterozoic Metallogenic Province with significant potential for large, high quality manganese discoveries; Exploration using low cost, modern methods are planned to be used to evaluate existing licenses and new opportunities, targeting size of greater than 250Kt of manganese resources; Company will concentrate on building inventory of knowledge and high quality assets for resource development; Discussions underway for high grade ore supply agreeements.
Project Locations Zambia
Proposed Serenje Manganese Project Internal Scoping Study completed for the development of a medium ferromanganese project in Zambia. Study indicated that a 56kt per annum medium carbon ferromanganese plant could be developed, which forms the basis of the 90% complete smelter design. Development of these production levels would require 127,000 tpa of manganese ore grading at 40% Mn content. Developments as a result of Scoping Study: Advanced negotiations underway with Zesco for provision of power 45 MW; Title to land secured adjacent to Pensulo substation, near Serenje, sufficient for proposed processing plant location; EIA submission completed, awaiting approval.
Proposed Serenje Manganese Project Proposed Ferromanganese Smelter Potential Production from the Plant: up to 56,000t MCFeMn pa Proposed Mining / Ore Purchase & Beneficiation Estimated Beneficiated ROM Requirement: 127,000 t at 40% Mn content 2 pa Conc. trucked to Serenje Based on internal scoping study estimates are conditional on the Company defining and/or sourcing sufficient manganese to construct & supply the smelter/plant.
Serenje Smelter Study Status Exploration Focus on exploration of existing licences and identification of new prospective areas to supply ore feed to proposed Smelter Environmental & Social Freestop contracted to manage EIA process. Public consultations completed. Power Studies MOU with Zesco being renewed, engineering design to upgrade substation complete. Exploration targets being finalised Submitted to ZEMA, in approval process In progress Mining Studies To be awarded. Awaiting resource and fines product details. Following resource measurement Haulage Studies Assessing Beira, Dar-es-Salaam and Walvis Bay as potential export ports. To be done with offtake partners Smelter Design EPS contracted for design and costing of smelters at Serenje. 90% complete Commercial Analysis to follow above events. To be completed
Indicative Smelter General Layout EPS contracted to manage smelter studies; Design based on: 2 x 15 MVA smelters to produce HC FeMn 1 x 20 ton Converter to produce MC FeMn Includes sinter plant to utilise fines material. Design work 90% complete. Geotechnical site works complete. Site is located 1.4km from Pensulo sub station. EPS require detailed metallurgy and throughputs to complete study will be resumed once resources and mine plans finalised.
Power Studies SMELTER SITE PENSULO SUB-STATION Smelter site selected based on proximity to road and Pensulo sub station; Zamanco will only need to install 1400m of 33kVA line.
Haulage and Shipping Studies Three haulage & shipping options being considered: Walvis Bay Dar es Salaam Beira Beira (Mozambique) Dar es Salaam (Tanzania) Walvis Bay (Namibia) Study considerations: Distance Haulage options Port capacity/availability Reliability Cost
EIA and Social Plan Zamanco has appointed Freestop to manage the EIA process; Community meetings held in Serenje to discuss plans; No major issues raised Terms of Reference approved by Zambia Environmental Management Agency (ZEMA); EIA process expected to be completed Oct/Nov 2013. First community EIA session in Serenje
Why Zambia? Reasons for investing in Zambian projects, include: Known areas for manganese mineralisation, exploration upside for larger deposits. Political stability since attaining independence in 1964 Banking, financial, legal and insurance services of an international standard. English speaking, with high literacy rate. Road and rail access to African ports. Zamanco has a Certificate of Registration with the Zambian Development Agency, which provides: 0% tax rate on dividends for 5 years from first year of declaring a dividend; 0% tax on profits for 5 years from the first year profits is made, with only 50% profits being taxable in years 6 to 8, and 75% taxable in years 9 and 10. 0% import duty on raw materials, capital goods, machinery including trucks and specialised motor vehicles for 5 years.
Upcoming News Next 6 months Focus on exploration drilling in order for resource and mining studies to catch up to remainder of smelter study; Exploration and test work planned for: Nkundalila; Chinsali; Ongoing expansion of tenement portfolio in line with exploration strategy. Continuation and investigation of alternative ore sources, including small scale local miners and discarded fines material.
Contacts Jacques Badenhorst Managing Director Ph +27 82 780 8443 E: jbadenhorst@zamancominerals.com Thomas Hill Executive Director Ph +27 83 407 6037 E: thill@zamancominerals.com Geoff Donohue Chairman Ph +61 8 9287 7625 E: gdonohue@zamancominerals.com
Appendix 1
Zamanco Capital Structure Current shares on issue 64,550,000 Performance Shares to Vendors 1 Deferred Consideration 1 to be issued if Zamanco completes a bankable feasibility study for the production of ferromanganese from one of its Zambian projects (with a demonstrated capacity to produce at least 60,000 metric tonnes per annum for a minimum of ten (10) years), and the board of the Company approves the development of that project, on or before 10 February 2016 Deferred Consideration 2 to be issued if Zamanco achieves 12 months of continuous production from its high carbon ferromanganese smelter, on or before 10 February 2017 15,450,000 25,750,000 TOTAL 105,750,000 1 Shareholder approved acquisition consideration of Zamanco Holdings Limited. Vendors are entities associated with Jacques Badenhorst, Thomas Hill and two other South African citizens
Corporate and Social Responsibility Zamanco benefits local communities Zamanco Philosophy Engage the people of Zambia as Partners, through Joint Venture companies holding mineral rights. Establishment of community Trusts. Benefits Zamanco holds exploration and mining rights. Partners benefit through royalties on the extracted ores. Self imposed royalty towards community trusts allows investment into local co-operative community projects.