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ZEOTECH LIMITED — AGM Information 2013
Nov 7, 2013
66115_rns_2013-11-07_e31b86a3-abae-4aed-9636-dfcff9e9575c.pdf
AGM Information
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November 8 2013
Laconia Resources Limited Annual General Meeting Presentation 2013
Focusing on the Rasuhuilca Copper-Gold-Silver Project, Peru
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Disclaimer and JORC Code Compliance Statements
Forward Looking Statements
Certain statements contained in this presentation, including information as to the future financial or operating performance of Laconia Resources Limited and its projects, are forward-looking statements. Such forward-looking statements: are necessarily based upon a number of estimates and assumptions that, whilst considered reasonable by Laconia Resources Limited, are inherently subject to significant technical, business, economic, competitive, political and social uncertainties and contingencies; involve known and unknown risks and uncertainties that could cause actual events or results to differ materially from estimated or anticipated events or results reflected in such forward-looking statements; and may include, among other things, statements regarding targets, estimates and assumptions in respect of metal production and prices, operating costs and results, capital expenditures, ore reserves and mineral resources and anticipated grades and recovery rates, and are or may be based on assumptions and estimates related to future technical, economic, market, political, social and other conditions.
Laconia Resources Limited disclaims any intent or obligation to update publicly any forward-looking statements, whether as a result of new information, future events or results or otherwise. The words “believe”, “expect”, “anticipate”, “indicate”, “contemplate”, “target”, “plan”, “intends”, “continue”, “budget”, “estimate”, “may”, “will”, “schedule” and other similar expressions identify forward-looking statements. All forward-looking statements made in this presentation are qualified by the foregoing cautionary statements. Investors are cautioned that forwardlooking statements are not guarantees of future performance and accordingly investors are cautioned not to put undue reliance on forward-looking statements due to the inherent uncertainty therein.
- JORC Code Compliance Competent Persons Statements
Rasuhuilca Project Peru
The information in this report that relates solely to the Rasuhuilca Mineral Resource is based on, and fairly represents, information and supporting documentation prepared by Mr Michael Andrew, a Competent Person who is a Member of the Australasian Institute of Mining and Metallurgy. Mr Andrew is a Principal of Optiro Pty Ltd and has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity currently being undertaken 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 Andrew consents to the inclusion in this presentation the matters based on his information in the form and context in which it appears.
The information in this announcement that relates to Exploration Results is based on, and fairly represents, information and supporting documentation prepared by Mr Vincent Algar, a Competent Person who is a Member of the Australasian Institute of Mining and Metallurgy. Mr Algar is a Non-Executive Director and consultant of Laconia Resources Limited and has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity currently being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Algar consents to the inclusion in this announcement of the matters based on his information in the form and context in which it appears.
Rasuhuilca Project, Southern Peru
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Location map and permits:
Blue Permits - 100% Laconia owned, White Permits - Option Agreement[1] for Laconia to earn up to 80% Communities are shown marked with red points and names. Highways are shown as yellow lines.
1 For details of option agreement refer ASX Release 26 March 2013
Global Copper and Peru
The Central Andes are the “Global Hot Property” for Copper Deposits, as shown by the below figure, which lists copper districts and the copper content in millions of tonnes (Mt).
(Source: Geology and Genesis of Major Copper Deposits and Districts of the World: A Tribute to Richard H. Sillitoe, p. 2)(Laconia Rasuhuilca added)
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Project summary: Copper-Gold-Silver system
‘‘An intact high sulphidation epithermal system’’[1]
o Laconia has secured the entire Volcanic System ~8,400ha o Analogue for El Indio copper gold silver system Northern Chile o High grade copper defined in underground channel sampling and diamond drilling o Defined high-grade copper drilling targets
1 Refer ASX Release 23 August 2013
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Copper porphyry potential and progress
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Technical data supports intact high sulphidation system with high copper porphyry potential[1]
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oVirtual Data room initiated following unsolicited approaches from major copper resources companies -
Two of three communities in agreement - dialogue with remaining community
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oFocus on Española 1 and Southern Vent copper Zones -
Priority copper targets defined
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Drilling permit application – (Declaracion de Impacto Ambiental)(“DIA”) progressing
1 Refer ASX Release 23 August 2013
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Historical Data Compilation and Validation
Data from previous explorers has been acquired, in the form of:
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40 diamond drill holes, > 3,000 channel samples, > 5km underground development and adits
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Appendices of mineralogy studies, resource calculations, assays and photographs
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Plans – both CAD and PDF format, plus scans of originals stored in Lima, including CSAMT
o Geophysics
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Excel spread sheets of metallurgy, assay, resource calculation and mine costing data
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DXF and MapInfo files of topography, geological models, road data, development data, geology data
o Reports on the Rasuhuilca Project geology by consultants, including a Resource Report and Feasibility Study report completed in 2007 – 2008
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Regional Alteration
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o Alteration has been characterised through mapping by Cominco and Buenaventura geologists, and through ASTER analysis. o The central alteration most proximal to epithermal mineralisation is silicification (left) or the strong Advanced Argillic alteration (below)
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Porphyry Copper Potential
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Schematic diagram of the Rasuhuilca porphyry exploration model, showing alteration and metal zonation. Examples of prospects already identified are shown .
Priority Copper Drilling Targets
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Española 1 Prospect[1]
Historical adit intersects includes:
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24.9m at 3.88% Cu, 2.98 g/t Au and 66.63 g/t
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Ag including; 15.5m at 6.54 % Cu, 4.77 g/t Au and 103.86 g/t Ag
Significant results from the Española 1 underground sampling includes:
- 2.1m at 8.4% Cu, 6.13 g/t Au and 111.7 g/t Ag (entire width of drive)
o 2.2m at 6.8% Cu, 6.47 g/t Au and 141.8 g/t Ag from sample 42002 (entire width of drive)
- 1.1m at 9.7% Cu, 8.7 g/t Au and 152.8 g/t Ag
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1 Refer ASX Release 27 February 2013
Fortuna Prospect[1]
Highlight surface samples includes:
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o 0.8 m at 4.8 % Cu, 3.89 g/t Au and 251 g/t Ag
o 1.4 m at 1.8 % Cu, 0.67 g/t Au and 51.3 g/t Ag
Diamond drill hole results include:
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o 5.75 m at 2.0 % Cu, 0.7 g/t Au and 97.31 g/t Ag from 31.15m
o 3.1 m at 2.27 % Cu, 3.43 g/t Au and 130.56 g/t Ag from 61.6m
o 6.3 m at 0.46 % Cu, 1.84 g/t Au and 28.28 g/t Ag from 2.2 m
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o 12.6 m at 0.3 % Cu, 0.11 g/t Au and 43.93 g/t Ag from 27.9m
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1 Refer ASX Release 9 April 2013
Rasuhuilca Project – an analogue for an El Indio style deposit
o The Epithermal System resembles a copper gold silver exploration prospect along the El Indio gold belt in Chile
o The El Indio Copper-Gold-Silver deposit history[1] includes;
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23 years of production (1979 – 2002)
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Underground and open pit mine
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4.5 Moz of gold, 25Moz of silver and 472kt of Copper produced form 16.8Mt of ore
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1.2 Moz from 190 kt of ore – DSO
o Average life of mine gold grade 8.33 g/t Au
o Considered as a ‘classic’ high sulphidation epithermal gold-copper-silver vein deposit
1Refer Barrick presentation October 2008 - Spatial and Temporal Zonation at the El Indio Cu-Au-Ag Deposit, Chile
Community and Social Licence Overview
Peruvian Legislation Drilling at Rasuhuilca Project requires the approval of a category 1 Declaración de Impacto Ambiental study, which includes a social licence aspect to initiate exploration.
o Laconia requires agreements with three community groups
- Agreements with Yanama and Huacana communities signed
o Laconia in dialogue and meetings scheduled with remaining community group
o Agreement demonstrates Laconia's successful community relations strategy and engagement with community groups
o Preparation of documentation for permitting (DIA) underway
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Rasuhuilca Project - Existing Mineral Resource
Existing Inferred Mineral Resource of 360,000 t @ 1.97g/t Au and 179g/t Ag[1 ] (at a 2.5 g/t AuEQ cut-off)[2]
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Long section from East to West along the Rasuhuilca zone showing the Underground Workings and Current Mineral Resource.
1Refer ASX Release 25 January 2012
2Gold equivalent Calculation
Gold equivalent (Au Eq) calculation represents the total metal value for each metal, multiplied by the conversion factor, summed and expressed in equivalent Gold grade. These results are taken from the Rasuhuilca zone JORC Code Inferred Resource and no allowance is made for metallurgical recoveries. No definitive metallurgical test work has been conducted on the project at this stage of its development, however, it is the Company’s opinion that the elements expressed here have a reasonable potential to be recovered as evidenced in similar deposit styles in Peru. Gold Equivalent conversion factors and long term price assumptions used are as follows: Gold Equivalent Formula = Au ppm + (25/1350) x Ag ppm Price Assumptions: Au(US$1,350/oz), Ag(US$25/oz)
Rasuhuilca System with local veins, faults and alteration system
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Rasuhuilca Project- Exploration Targets[1]
| Prospect | Strike Length (metres ) |
Average Width of Mineralis ation (metres) |
Specific Gravity |
Strike Length Sampled (metres) |
Total Number of Samples |
Number of samples within Exploration Target |
Percentage of Strike Length Sampled |
Gold Grade (g/t) Minimum Maximum |
Gold Grade (g/t) Minimum Maximum |
Silver Grade (g/t) Minimum Maximum |
Silver Grade (g/t) Minimum Maximum |
Silver: Gold Ratio |
Exploration Target Tonnage Minimum Maximum |
Exploration Target Tonnage Minimum Maximum |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Condor | 100 | 20 | 2.6 | 80 | 266 | 99 | 80% | 1.11 | 1.45 | 184.5 | 244.8 | 169:1 | 59,900 | 167,400 |
| Hyallatas | 380 | 11 | 2.6 | 100 | 257 | 122 | 26% | 2.34 | 2.40 | 37.7 | 78.18 | 28:1 | 94,700 | 200,200 |
| Olga | 240 | 2 | 2.6 | 140 | 75 | 75 | 58% | 2.40 | 2.55 | 81.1 | 90.5 | 77:1 | 42,600 | 49,900 |
| Española 1 | 255 | 4 | 2.6 | 205 | 165 | 76 | 80% | 3.76 | 3.88 | 57.7 | 79.2 | 24:1 | 53,950 | 154,200 |
| Marcelita | 975 | 2 | 2.6 | 675 | 123 | 123 | 69% | 2.48 | 4.37 | 71.9 | 127 | 27:1 | 114,700 | 220,700 |
| TOTALS: | 2.40 | 3.10 | 84.9 | 122.4 | 365,850 | 792,400 |
The potential quantity and grade of the Exploration Targets is conceptual in nature. There has been insufficient exploration to estimate a Mineral Resource, and it is uncertain if further exploration will result in the estimation of a Mineral Resource.
1 Refer ASX Release 4 February 2013
Social Awareness and Participation
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Meetings and participation with the communities
Social Responsibility
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Call to Informative Workshops
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•[Divestment of Lennon’s Find Project]
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During the June 2013 quarter Laconia received a non-refundable deposit of $100,000 cash from Musketeer Minerals Pty Ltd (“MKM”) pursuant to the six month exclusive option agreement executed in June 2013 for MKM to acquire the Lennons Find Project. In addition to receiving the deposit, within 7 days of MKM or the Shell company listing on the ASX or MKM or the Shell company completing a capital raising of $2 million (by way of equity, debt or combination):
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Laconia will be issued a 10% equity stake (fully paid ordinary shares) in either MKM or the Shell Company (at Laconia’s election).
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Laconia will receive $400,000 cash from either MKM or the Shell Company; and
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LCR may nominate a Board member to be appointed as a Non-Executive Director on MKM’s Board or on the Board of the Shell Company (at Laconia’s election).
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The transaction is subject to all regulatory approvals including any necessary shareholder approvals.
1Refer ASX Release 20 June 2013
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Corporate Overview
Capital Structure
| Laconia Resources | Shares on Issue |
|---|---|
| Number | |
| Shares on Issue 366.3m Listed Options Unlisted Options 186.8m 20.5m |
|
| Cash (as at 30 Sept 2013) $0.69m |
|
| Total Market Capitalisation (undiluted)at 0.9c $3.3m |
Top 5 Shareholders
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Shareholder Shares (%)
Josephine Patoir 4.57
Slade Technologies Pty Ltd 4.09
Perizia Investments Pty Ltd 3.83
Gold Mines of Peru Ltd 3.66
Ian Stuart 3.62
Top 20 hold 42.5%
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As at 1 November 2013
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Laconia Board and Management
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Matthew Howison, Non Executive Chairman LLB, LLM, MBA
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formerly NM Rothschild & Sons (Australia) Ltd, Turnbull & Partners, Goldman Sachs Australia and Salomon Smith Barney.
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oinvolved in advising on mergers and acquisitions and capital raising transactions for major Australian and international corporations.oexpertise in the metals and mining, energy, renewable energy, media and technology industries. -
Ian Stuart, Managing Director B.Sc (Hons), F.Fin, MAICD
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formerly a Stockbroker with Macquarie Private Wealth.
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oexperience in both finance industry and mining. -
extensive experience with capital raisings within the junior resource sector.
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experienced Senior Geologist throughout Australia and Africa, exploring for both gold and base metals.
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Dr. Saliba Sassine, Non Executive Director
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experience and expertise at Chairman and CEO level in a number of listed and privately held companies.
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Managing Director or BlueMount Capital (WA) Pty Ltd, a member company of an international corporate capital group, and is Chairman
- of S&A Capital Pty Ltd, a commodities mercantile group.
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has also worked as a Senior Ministerial and Government Adviser in Australia and represented the Western Australian Government on a
number of state and national advisory boards and committees.
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Vincent Algar, Non Executive Director
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experienced Geologist with over 20 years’ experience in both underground and open cut mining operations.
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founding Managing Director of Shaw River Resources until 2012.
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has extensive experience in management of public listed companies, specifically capital raisings for exploration project generation and acquisition.
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Nick Shakesby, Chief Operating Officer - Peru Operations
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highly experienced in international business establishment, developments and operations in exploration, mining and civil construction industries in Latin America, Asia and West Africa.
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General Management, Legal Representation and Chief Operations Officer of grass roots and established multiple business units worldwide.
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experience in finance, fund raising and investor relations
Head Office – Australia
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Ian Stuart, Managing Director
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Vincent Algar, Director and Consultant Geologist
Technical Office - South America
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Nick Shakesby, Chief Operating Officer
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Greta Castillo, General Manager
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Gemma Lee, Senior Exploration Geologist