INDUSTRIAL METALS, MINERALS AND MINEABLE ENERGY INVESTMENT SUMMIT 2010 LONDON CHAMBER OF COMMERCE & INDUSTRY ● WEDNESDAY, 30 NOV 2010 www.ObjectiveCapitalConferences.com 1 Defining deposits in Peru's uranium district Nick Tintor – CEO, Southern Andes Energy
Objective Capital's Industrial Metals, Minerals & Investment Summit 2010 London Chamber of Commerce and Industry 3 November 2010 Speaker: Nick Tintor, Southern Andes Energy
Welcome message from author
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
INDUSTRIAL METALS, MINERALS AND MINEABLE ENERGYINVESTMENT SUMMIT 2010
LONDON CHAMBER OF COMMERCE & INDUSTRY ● WEDNESDAY, 30 NOV 2010
www.ObjectiveCapitalConferences.com1
Defining deposits in Peru's uranium district Nick Tintor – CEO, Southern Andes Energy
TSX-V:SUR
Developing Peru’s Untapped Uranium Resources
Objective Capital’s Mineable Energy Investment Summit London,
November 3, 2010
TSX-V:SUR
These materials present an overview of Southern Andes Energy’s projects in southern Peru. Readers are cautioned that the projects are at an early stage and that all estimates and information contained herein are based on limited and incomplete data. Additional work is required before the mineralization and the economic potential of the projects can be confidently modeled. Statements reflected in this presentation may contain “forward-looking statements” including management’s assessments of future plans and operations including expectations of future production and capital expenditures. These statements regarding potential mineralization and resources, estimated or potential future production, potential ranking of properties and future plans and objectives of the Company, are forward-looking statements that involve various known and unknown risks, uncertainties and factors. Consequently, actual results may differ materially from those anticipated in the forward-looking statements. While the work, results, estimates and projections in the presentation may be considered indicative of the nature and quality of the work undertaken, they are not definitive. Readers are advised that undue reliance should not be placed on forward-looking statements.
Southern Andes EnergyDiscovering & Developing Peru’s Uranium Resources Company formed in 2010 with explicit focus on developing Peruvian
uranium assetsLargest landowner of
uranium assets in Macusani Plateau
Strategic equity interests
• Controlling over 900 km2 of land concessions
• Over 55 uraniferous anomalies identified on Southern Andes’ land concessions• 12.7% equity interest in Macusani Yellowcake Inc.
• Controlling portfolio of advanced-stage silver-zinc-lead projects in Peru
Objective: Invest in strategic land package and attract partners to develop assets
4
TSX-V:SUR
Our TeamManagement
Nick Tintor, President & Chief Executive OfficerGeologist, with over 25 years of experience in the mining industry; has been involved with all aspects of junior mining company management, finance and project acquisition.
Hatem Kawar, Chief Financial OfficerOver 25 years of experience in technical and management aspects of industrial mineral projects in the Middle East. MBA degree (Schulich, York University, Canada).
Arnaldo T. Leon, Country Manager – PeruMr. Leon is a mining engineer with over 32 years of experience as a mining specialist in Peru. Responsible for managing Southern Andes Energy's existing property portfolio.
Alain Vachon, Exploration Manager More than 33 years of experience in exploration of which the last 13 in Peru as General Manager and consulting geologists for various junior Canadian companies.
Robert Boaz, Independent Chairman
Board of DirectorsJonathan Challis John CookLaurence Curtis
James GarcelonNick Tintor
5
TSX-V:SUR
Why Uranium Today?
• Spot price for U3O8 up 26% since June 2010 to US$52.00
• Good buy-in opportunity across whole spectrum of uranium mining plays
• Currently 441 commercial nuclear reactors are in operation in 30 countries 58 units under construction worldwide representing ~60GWE of capacity 152 units and 337 units planned and proposed respectively
Catalysts:
• Continued price volatility but expected long-term gains due to fundamental demand with supply deficit by 2013
• Producers are buying at spot
• Possible re-entry of hedge funds?
Uranium renaissance driven by strategic demand, rising prices
(Source: UXC, September 2010 presentation)
20-N
ov-0
9
16-D
ec-0
9
11-J
an-1
0
6-Feb
-10
4-M
ar-1
0
30-M
ar-1
0
25-A
pr-1
0
21-M
ay-1
0
16-J
un-1
0
12-J
ul-10
7-Aug
-10
2-Sep
-10
28-S
ep-1
040
45
50
55
Uranium Spot Price:
USD
6
TSX-V:SUR
Why Peru?A stable, pro-mining jurisdiction with good
infrastructure• Peru vastly underexplored for uranium
• The country has not previously emphasized uranium deposits, but is receptive to the development of these prospects
• Potential for open pit deposits between 5-25 million lbs in size
• Peru supporting export of uranium by 2011 – also highly probable to be 1 of 4 Latin American countries to have a nuclear reactor generating capacity
(Source: Peru Ministerio de la Produccion, Adex DataTrade, BCRP and MINEM)
Excellent government support for uranium mining
7
TSX-V:SUR
Macusani PlateauSouthern Andes controls the Macusani Uranium
District
Property Size (Hectares) Commodity
Macusani East 47,819 Uranium
Macusani West 45,900 Uranium
Macusani South 10,600 Uranium
Picotani 6,606 Uranium
Piluani & Princesa 24,000 Lead, zinc & silver
Cullquimayo 5,300 Silver, copper, nickel & gold
All properties are 100% owned by Southern Andes
LIMA
8
TSX-V:SUR
??
??
Bear Creek – Corani
Quenamari Caldera
Macusani West Macusani East
TSX-V:SUR
Macusani EastSignificant Uranium Resources
Sayaña Central 1.85 million lbs.
Calvario I 1.48 million lbs.
Calvario III 1 million lbs.
Puncopata 386,000 lbs.
Colibri 17 million lbs.
Corachapi 6 million lbs.
Kihitian 280,000 lbs.
high grade structure
Tantamaco 14 million lbs
Chacaconiza Target Area
TSX-V:SUR
Calvario I Project
Past exploration work consisted of:
• Geological reconnaissance survey of IPEN’s showing and limited trenching.
• Detailed radiometric survey.
• 2006-2007: 72 holes drilled - 3982.3 m.
(1) Source: Frontier Pacific Mining Corporation and not compliant with NI 43-101 standards or protocols.
Tonnes Grade (% U3O8) U3O8 (lbs)
2,291,000 (1) 0.029 1,480,000
11
TSX-V:SUR
Calvario I ProjectCALVARIO I PROJECT: DRILLING SUMMARY
Hole Easting Northing Elev Length Best Values in ppm U3O8
• Uranium mineralization consists of secondary minerals such coffinite, autunite, tyuyamunite and carnotite.
Chahuaña Uranium Targets
TSX-V:SUR
Chahuaña Target Areas
• North target 600 m x 800 m
• Mineralized unit up to 30 m thick
• Uranium disseminated
• New area which has never been drilled
• All targets remain open
TSX-V:SUR
Ignimbrite with abundant obsidian
UV Highlights Disseminated Uranium
TSX-V:SUR
Preliminary Test WorkPositive Metallurgical Results
Positive results were obtained from all samples submitted to the leaching test
• U3O8 extraction; Pich sample; columns 1,2,3,4: Average 88.3%;
• U3O8 extraction; Viz sample; columns 5,6,7,8: Average 99.5%;
• U3O8 extraction; Cha sample; columns 9,10,11,12: 98.2%;
• Total acid consumption of columns 1 to 4 ranges between 13 and 14.5 kg/t;
• Total acid consumption of columns 5 to 8 ranges between 12 and 14.1 kg/t ;
• Total acid consumption of columns 9 to 12 ranges between 13.8 and 16.4 kg/t.
23
TSX-V:SUR
Metallurgical Tests• Positive results were obtained from all
samples submitted to the leaching test • U308 extraction; Pich sample; columns
1, 2, 3, 4: Average 88.3% • U308 extraction; Viz sample; columns 5,
6, 7, 8: Average 99.5%• U308 extraction; Cha sample; columns
9, 10, 11,12: 98.2%
• Total acid consumption of columns 1 to 4 ranges between 13 and 14.5 kg/t
• Total acid consumption of columns 5 to 8 ranges between 12 and 14.1 kg/t.
• Total acid consumption of columns 9 to 12 ranges between 13.8 and 16.4 kg/t
24
TSX-V:SUR
Macusani Uranium - Low Cost Production
Positive Mining Attributes
The mineralization found in the Macusani Uranium District is characterized by significant mining attributes:
• Near-surface mineralization
• Low blast factor in friable rocks
• Possible ripping at start
• Low work index means low crushing costs
• Very low reagent consumption in preliminary metallurgical testwork
• Excellent leach recoveries due to high porosity in host rock: +90%
• Ore in grades ranging from 200 ppm to 300 ppm
District characteristics suggest low operating
costs per lb. <$25/lb
25
TSX-V:SUR
Caracara Silver Spin-out in ProcessSilver-lead-zinc projects in Southern Peru 100% SAE-
owned• NI 43-101 resources of 28 million oz Ag equivalent (1)(2)
• Two main projects: Princesa and Pilunani Princesa: Resource (1) of 4.6 million tonnes @ 90.88 g/t Ag, 1.69% Zn,
1.66% Pb
• Added key projects via vendor deal and map staking; significant regional upside
• Holdings expanded and exceed 24,000 hectares covering more than of 30 km strike
• Region has excellent road access via new InterOceanicHighway
(1) Mr. Alain Vachon, P. Geo., Company’s Qualified Person as defined by NI 43-101(2) Silver equiv. based on Ag spot price of US$18.23/oz. and Zn spot price of
US$0.827/lb and US$0.815/lb Pb, published by Kitco on July 14, 2010
26
TSX-V:SUR
Caracara Silver Spin-out
27
TSX-V:SUR
Very Prospective LandholdingRecent High Grade Sampling (1)
(1) Mr. Alain Vachon, P. Geo., Company’s Qualified Person as defined by NI 43-101
Property Sample No. Zinc Lead
Parcuyo PAR01 8.54% 11.95%
PAR02 24.07% 9.43%
Property Sample No. Silver (g/t) Zinc Lead
Princesa Princesa 854 >30% 8.52%
Princesa Project• Diatreme breccia structure
Parcuyo Project• Large diatreme breccia structure
28
TSX-V:SUR
Southern Andes EnergyA Perfectly Positioned Peruvian Uranium Play
Share structure:As of October 20th, 2010
Shares Outstanding 53,659,709
Share Price $0.20
Options Outstanding
1,481,662 Market Capitalization
$12.44 m
Warrants Outstanding
3,125,000 Cash $2 million
Fully Diluted 58,266,371
29
TSX-V:SUR
Summary and Conclusions
Uranium and nuclear renaissance is real
Southern Andes Energy controls the new Macusani Uranium District in Peru with more than 100,000 hectares
Results to date point to potential for lowest quartile production costs
Plan to drill new surface discoveries and known zones in 2011
Spinning out significant silver projects into Caracara Silver
Significant value creation in 2011 from uranium and silver
30
TSX-V:SUR
Head Office (Toronto, Ontario, Canada)Nick Tintor, President & CEOOffice Tel: +1-416-987-0855Mobile Tel: +1-416-953-4244Email: [email protected]