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ELEMENT 25 LIMITED Regulatory Filings 2011
64810_rns_2011-11-30_b8d704be-5a73-4bbe-8d09-923236a2263f.pdf
Regulatory Filings
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AGM'UPDATE'NOVEMBER'2011
- MANGANESE Large'tonnages'of'beneficiable'manganese'mineralisa8on.' ' 'Plans'in'place'to'produce'500K'–'1M't'p/a'at'>36%'Mn.''
- COPPER High'grade'mineralisa8on'intersected'in'maiden' ' 'copper'drilling'programme.'Discovery'confirmed.'
- GOLD Significant'JORC'upgrade'at'Peak'Hill'to'over'500K'ounces.
Disclaimer
This presentation contains only a brief overview of Montezuma Mining Company Ltd and its associated entities ("Montezuma") and their respective activities and operations. The contents of this presentation, including matters relating to the geology of Montezuma's projects, may rely on various assumptions and subjective interpretations which it is not possible to detail in this presentation and which have not been subject to any independent verification.
This presentation contains a number of forward-looking statements. Known and unknown risks and uncertainties, and factors outside of Montezuma's control, may cause the actual results, performance and achievements of Montezuma to differ materially from those expressed or implied in this presentation.
To the maximum extent permitted by law, Montezuma does not warrant the accuracy, currency or completeness of the information in this presentation, nor the future performance of Montezuma, and will not be responsible for any loss or damage arising from the use of the information.
The information contained in this presentation is not a substitute for detailed investigation or analysis of any particular issue. Current and potential investors and shareholders should seek independent advice before making any investment decision in regard to Montezuma or its activities.
Corporate'Snapshot'(listed'9'November'2006)
| ! | Board'of'Directors | |
|---|---|---|
| Seamus'Cornelius " (Denis'O'Meara're8red)' |
Chairman' | |
| Jus8n'Brown " |
MD' | |
| John'Ribbons " |
Director' |
! Share Price
| " | ASX'Code: | MZM' |
|---|---|---|
| " | 52'week'high:' | \$0.95' |
| " | 52'week'low:' | \$0.25' |
! Share Posi8ons
| " | Buxton'Resources'Ltd:' | 3.76M'FPO' |
|---|---|---|
| " | Auvex'Manganese'Ltd:' | 3.75M'FPO' |
| " | Exterra'Resources'Ltd:' | 2M'FPO' |
| " | Lithex'Resources'Ltd:' | 1.52M'FPO |
! Market'Data
| " | Shares'on'Issue: | 67.4M' |
|---|---|---|
| " | Share'Price:' | \$0.57' |
| " | Market'Cap:' | \$38.4M' |
| " | Cash: | ~\$9M' |
| SHARE REGISTER Top 20 Shareholders |
62.37% |
|---|---|
| TOP 5 : | |
| JP Morgan Nom Aust Ltd. | 9,86% |
| South Boulder Mines Ltd | BIDO% |
| Alpha Boxer Ltd | 599% |
| Dragon Gas Ltd | 535% |
| Duketon Consolidated Ltd | A45% |
Butcherbird'Project'
- ! Proven!manganese!and!copper! poten,al.!
- ! Excellent!infrastructure:!straddles!the! main!highway!!
- ! and!gas!pipeline.!
- ! Approx.!550km!to!Port!Headland.!
- ! Drilling!has!confirmed!large!tonnages! of!beneficiable!manganese!and!good! copper!poten,al.!
- ! Ac,ve!explora,on!and!preG produc,on!work!ongoing.!!
- ! A!poten,al!"Company!Maker".!
BUTCHERBIRD'MANGANESE'
THE BUTCHERBIRD MANGANESE AND COPPER PROJECT
Aiming to be the next large scale manganese miner in Australia
waste from Yanneri Ridg
Why Manganese?
- Critical in modern steel-making. No satisfactory substitute.
- While manganese is abundant n. globally, high-grade manganese is not.
- Global high-grade manganese sector m. is dominated by just a handful of players.
- Demand will continue to rise on P. parallel with increasing global steel production.
| treatment plant. | Road transport to Port Hedland for loading onto ships. | (Inferred Classification) | ||
|---|---|---|---|---|
| Financial outcomes of the study strongly support Good potential to improve economics further by reduction in capital requirements, increases in grade and |
||||
| future increases in manganese prices. | Diamond core showing high grade manganese bands inter-layered with clay waste | |||
• Maiden!Inferred!Resource! Es,mate!at!Yanneri!Ridge! completed.! 8% Mn 64.7 11.2 44.3 11.5 0.28 10.9 10% Mn 48.8 11.8 43.6 11.6 0.28 10.7
low strip ratios.
Q Relatively simple bene" ciation using conventional
- Significant!upside!poten,al!to! the!global!resource!with! further!drilling.! Production Capex \$m Sales Mt NPV \$m IRR 0.50 Mtpa 127 5.0 \$79M 31%
- Poten,al!for!addi,onal! discoveries.! 0.50 Mtpa 127 10.0 \$148M 33%
Exploration Target size estimates for zones drilled to date excluding Yanneri Ridge
| Prospect | Tonnage Potential | Grade Estimate |
|---|---|---|
| Richies Find | 20 to 25 Mt | 10 - 11% Mn |
| Budgie East | 3 to 5 Mt | 9 - 10% Mn |
| Budgie North | 3 to 5 Mt | 9 - 10% Mn |
| Bindi Bindi Hill | 15 to 20 Mt | 10 - 12% Mn |
| Cadgies Flats | 1 to 3 Mt | 10 - 12% Mn |
| Coodamudgi | 15 to 20 Mt | 10 - 12% Mn |
| Illgararie Ridge | 40 to 50 Mt | 9 - 11% Mn |
| Mundiwindi | 15 to 20 Mt | 11 - 13% Mn |
| TOTAL** | 112 to 148 Mt | 9 - 13% Mn |
** It should be noted that the potential quantity and grade is conceptual in nature, that there has been insu! cient exploration to de" ne a Mineral Resource, and that it is uncertain if further exploration will result in the determination of a Mineral Resource
All intersections are approximately true width
Unique'Geology'
• Geology!allows!for!low!cost!beneficia,on!to!commercial!grades.!
Independent Scoping Study
- Scoping Study positive based $\mathcal{L}_{\mathcal{A}}$ on production of 0.5 Mt to 1 Mt per annum.
- Projected $NPV_{10}$ (10% discount $\mathcal{L}_{\mathcal{A}}$ rate) of up to AUD\$376M with IRR of up to 59%.
- Feasibility Study has $\mathcal{L}_{\mathcal{A}}$ commenced.
| Production | Capex \$m |
Sales 岫 |
NPV \$m |
惠 ٠ |
|---|---|---|---|---|
| 10 Year Mine Life | ||||
| 0.50 Mips | 127 | -34 | STOM | 37% |
| 1.0 Mipa | 163 | 10.0 | \$241M | 59% |
| 20 Year Mine Life | ||||
| 0.50 Mips | 127 | 10.0 | STARM | 33% |
| 1.0 Mtpa | 163 | $-20.0$ | S376M | 59% |
Some Key Assumptions
- Long term manganese price of USD \$5.40/dmtu. $\overline{\phantom{a}}$
- Long term exchange rate of \$0.80 USD/AUD.
- CAPEX incl. all direct and indirect costs of building the mine and start-up operations. In
- Transport of product 580km by road to Port Hedland. $\overline{\phantom{a}}$
Strategy'Going'Forward'
- ! Complete!environmental!studies!and!mining! approvals.!
- ! Confirm!metallurgical!studies!and!process!flow!sheet! for!beneficia,on.!
- ! Complete!Feasibility!Study.!
- ! Fast!track!to!produc,on!and!cashflow.!
- ! Resource!es,mates!in!progress!for!other!deposits.!
- ! Con,nue!to!drill!out!regional!targets!to!test!further! upside.!
BUTCHERBIRD'COPPER'
All intersections are downhole width
Latest'Drilling'Results
BBRC0168: 83m @ 0.43% Cu from 118m (including 3m @ 4.15% Cu)
BBRC0153: 61m @ 1.96% Cu from 113m (including 6m @ 6.08% Cu) *hole ends in mineralisation
BBRC0172: 3m @ 3.42% Cu from 91m
BBRC0174: 3m @ 3.66% Cu from 63m
BBRC0175: 2m @ 4.74% Cu from 102m
BBRC0154: 16m @ 0.72% Cu from 178m (including 1m @ 3.1% Cu)
All intersections are downhole width
Geology'(early'days!)
- ! Primary!ore!mineral!is!chalcocite.!Subordinate! tetrahedrite!and!chalcopyrite.!
- ! Aqua!Regia!assays!display!near!total!dissolu,on! –!indicates'the'ore'may'be'leachable.!Detailed! metallurgical!work!required!to!inves,gate!this.!
- ! High!grade!copper!mineralisa,on!appears!to!be! hosted!in!microGveinlets!throughout!the!host! dolerite!unit.!!
- ! Best!mineralisa,on!may!!occur!in!secondary! crossGcunng!structures!to!the!main! Butcherbird!Shear!Zone.!
- ! Results!so!far!suggest!both!grade!and!size! poten,al.!
- ! More!drilling!required!!
PEAK'HILL'GOLD'MINE'
Peak Hill Gold Mine
Over 500K JORC Resource ounces in a goldfield that has produced over 900K ounces
- Project includes the historic Peak Hill gold mine in a >1M ounce ٠ gold system
- Numerous targets requiring follow up drilling to expand the п existing resource base
- Good future production potential
- Copper potential along strike from Sandfire Resources De Grussa copper mine
Global Mineral Resource Estimated for the Peak Hill Project
| Classification | Tonnes (t) | Au (gh) |
Ounces (Oz) |
|---|---|---|---|
| INDICATED | 9,270,000 | 1.46 | 436,000 |
| INFERRED | 2,255,000 | 7.72 | 125,000 |
| TOTAL | 11,525,000 | 1,81 | 561,216 |
MONTEZUMA
MINING COMPANY LTD
Summary
- JORC Resource at Yanneri Ridge as the focus for first production.
- Favourable infrastructure, location and geology underpin competitive estimated operating costs of approximately AUD\$3.76/dmtu.
- Positive Scoping Study with Feasibility Study underway.
- Very large global manganese tonnage potential with Resource estimates in progress for multiple additional deposits.
- Exciting new copper sulphide discovery.
- High quality gold project at Peak Hill.
- Multiple potential "Company Makers".
- Strong track record of exploration and corporate success.
Contact'Details'
! Please!direct!queries!to:!
Jus8n'Brown!(Managing!Director)! Mobile: +61!438!745!675! Email: [email protected]
! Website:!hCp://www.montezumamining.com.au
Competent Persons Statement
Note: The information in this presentation that relates to Exploration T. Results, and Mineral Resources is based on information compiled by Mr Justin Brown who is a full-time employee of the Company and is a member of the Australasian Institute of Mining and Metallurgy. Justin Brown 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'. Justin Brown consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.