alder presentation december 7 2012
DESCRIPTION
Alder Presentation December 7 2012TRANSCRIPT
1
TSX-V: ALR
WELL POSITIONED IN AN
EMERGING COPPER-GOLD
PORPHYRY DISTRICT
December 2012
2
This document contains forward-looking statements under Canadian securities legislation. Forward-looking statements include, but are not limited
to, statements with respect to the development potential and timetable of the Rosita project; the timing and amount of estimated future
development and exploration; costs of future activities; capital and operating expenditures; success of exploration activities; government regulation
of mining operations; and environmental risks. Generally, forward-looking statements can be identified by the use of forward-looking terminology
such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not
anticipate”, or “believes”, or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”,
“might” or “will be taken”, “occur” or “be achieved”. Forward-looking statements are based on the opinions and estimates of management as of the
date such statements are made. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may
cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied
by such forward-looking statements, including but not limited to risks related to: timing and availability of external financing on acceptable terms;
unexpected events and delays during construction, expansion and start-up; variations in ore grade and recovery rates; receipt and revocation of
government approvals; actual results of exploration and mining activities; changes in project parameters as plans continue to be refined; future
prices of metals; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes and other risks of the mining
industry. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from
those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There
can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those
anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company does not
undertake to update any forward-looking statements except in accordance with applicable securities laws.
The technical and scientific information included herein has been reviewed and approved by Joseph Arengi, M.Sc., P.Geo , President and CEO of
the Company, and a qualified person under National Instrument 43-101 of the Canadian Securities Administrators.
2
Forward Looking Statements
3 3
Investment Highlights
• Option to earn a 65% interest in the high grade copper-gold-silver Rosita
project
• Historic production of 245 million lbs Cu, 160,000 oz Au and 2.6 million oz Ag
from two pits
• Located in the prolific Mining Triangle of northeast Nicaragua
• 7 km north of Calibre Mining/B2Gold’s Primavera prospect, a significant
copper-gold porphyry discovery
• Stable, pro-mining government
• Experienced management team and Board of Directors – Extensive exploration and community relations experience in Nicaragua
• Stockpiles include a NI 43-101 compliant inferred resource of 8 million tonnes
containing 108.5 million lbs Cu, 118,500 oz Au and 2.4 million oz Ag (1.01%
Cu Eq. grade1)23
• Initial 5,500 m drill program has identified a 1.1 km long and 200 m deep Cu-
Au-Ag mineralized zone at the Santa Rita deposit
• Drill highlights include 0.57% Cu, 1.52 g/t Au and 5.93 g/t Ag over 15 m, 29.54
g/t Au over 8 m and 1.42% Cu, 0.18 g/t Au and 20.45 g/t Ag over 10 m
Past producing
Rosita Project in
Nicaragua
Well positioned in
an emerging
mining district
High grade
resource
Significant
exploration upside
Experienced
Management
1. Assumes a long term copper price of US$2.90/lb, gold price of US$1,200/oz and silver price of US$24/oz.
2. See Data in NI 43-101 Technical Report entitled “Technical Report on Mineral Resource Estimate of the Rosita Stockpiles” dated June 22, 2012 and filed on SEDAR.
3. As reported in the news release issued by Alder on May 9, 2012, the inferred resource estimate totals 7.95 mt, at an average grade of 0.62% Cu, 0.46 g/t Au and 9.2 g/t Ag
with an overall copper equivalent grade of 1.01%. The inferred mineral resource contains 108 million pounds of Cu, 118,500 ounces of Au and 2.35 million ounces of Ag.
4 4
Management and Board of Directors
Joseph Arengi | President and CEO
• 35 years of exploration and operational experience
throughout Canada, Nicaragua, South America and
Africa
• Credited with discovering 4 billion pounds of copper
and 60 million ounces of silver in Botswana
Ryan Ptolemy | CFO
• Certified General Accountant and CFA charter holder
• Currently CFO of Rodinia Lithium Inc. and Belo Sun
Mining Corp.
Josh van Deurzen | Corporate Secretary
• Corporate and securities lawyer, working as a legal
consultant to various public and private companies in
the resource-based sector
Don Dudek | Chairman
• Held various roles with junior and senior exploration and
mining companies over the past 28 years
• Currently serves as Senior VP Technical Services for
Endeavour Mining Corp. and prior to that he served as
Exploration Manager for Aur Resources Inc.
Rene Bharti | Director
• Has held roles in several public and private companies,
including experience in the mining sector which will be
important for the company's development of its projects in
Nicaragua
Dan Bruno | Director
• Over 15 years of investment experience and was
previously a Managing Director of a US based Investment
Bank and a Director, in the Investment Banking group at
GMP Securities Ltd.
Hon. Pierre Pettigrew | Director
• Former Minister of Foreign Affairs and currently Executive
Advisor, Deloitte Touche LLP
• Current board member of several public companies
Will Randall | Director
• Professional Geologist and currently President and CEO
of Rodinia Lithium Inc.
5 5
Share Capital and Share Performance
TSX Venture Symbol ALR
Share Price (Nov 12, 2012) $0.08
Share Price (52-week range) $0.06 - $0.29
Issued and Outstanding 72.8 million
Fully Diluted1 95.8 million
Cash and Marketable Securities $1.0 million
Market Capitalization (Basic) $5.8 million
Insider/Institutional Holders 8.6%
1. 7,025,000 options outstanding with a weighted average exercise
price of $0.21 and a weighted average life of 2.7 years and
15,952,019 warrants outstanding with an exercise price of $0.20
expiring on January 31, 2014.
Vo
lum
e (
millio
ns)
Pri
ce
(C
AD
) 0.00
0.50
1.00
1.50
2.00
2.50
3.00
3.50
$-
$0.05
$0.10
$0.15
$0.20
$0.25
$0.30
$0.35
$0.40
$0.45
Jan-1
1
Mar-
11
May-1
1
Jul-11
Sep-1
1
Nov-1
1
Jan-1
2
Mar-
12
May-1
2
Jul-12
Sep-1
2
Nov-1
2
Volume Price
6 6
Rosita Cu-Au-Ag Project
7 7
Project Overview
• Option agreement with Calibre Mining to earn
a 65% interest in the Rosita D concession by
making the following payments:
– Project expenditures of C$4.0 million (C$0.5
million already spent)
– Issuance of 1,000,000 shares over a four year
period (400,000 shares have been issued)
• NI 43-101 compliant inferred stockpile
resource of 108.5 million lbs Cu, 118,500 oz
Au and 2,354,300 oz Ag1,2
• Completed an initial 5,500 m drill program
centered on the past producing Santa Rita and
R-13 deposits
• Mineralization below the Santa Rita pit is open
along strike to the east, west and down dip
• Exploration upside from the Bambana prospect
located 4 km northwest of Santa Rita
– 400 m drill program completed
• Historical data suggests a significant precious
metal component to the mineralized system
1. See Data in NI 43-101 Technical Report entitled “Technical Report on Mineral Resource Estimate of the Rosita Stockpiles” dated June 22, 2012 and filed on SEDAR.
2. As reported in the news release issued by Alder on May 9, 2012, the inferred resource estimate totals 7.95 mt, at an average grade of 0.62% Cu, 0.46 g/t Au and 9.2 g/t Ag
with an overall copper equivalent grade of 1.01%. The inferred mineral resource contains 108 million pounds of Cu, 118,500 ounces of Au and 2.35 million ounces of Ag.
8
• The Rosita D concession covers 3,356 hectares in the prolific Mining Triangle of northeast Nicaragua,
275 km northeast of the capital city of Managua
• 7 km north of the Primavera prospect (Calibre Mining/B2Gold), where a significant porphyry style Au-Cu
mineralization has been discovered
Project Location
Cobre Panama
605 M tonnes Cu
Cerro Colorado
1,445 M tonnes Cu
• Rated the safest country in Central
America with a long mining history
• Modern infrastructure and easily
accessible
• Stable, supportive and
democratically elected government
supportive of foreign investment
• Supportive mining laws with an
attractive tax regime: 3% NSR, 30%
Net Profits Tax
• Three producing gold mines:
– La Libertad and El Limon Mines
(B2Gold)
– Bonanza Mine (Hemco)
Prolific, underexplored mining district with a stable, pro-mining government
9
*See data in NI43-101 Technical Report entitled
“Technical Report on the Copper-Gold-Silver
Porphyry/Skarn Project at the Rosita D Concession dated
January 5, 2012 which is filed on SEDAR.
9
Managua
Puerto
Cabezas
Siuna
2.3M ozs Au production*
Rosita 108M lbs Cu, 118K ozs Au,
2.4M ozs Ag resource
Primavera B2Gold/Calibre Discovery
261.7M @ 0.78 G/T Au, 0.30% Cu
Forest Reserve
Bonanza
3.0M ozs Au
production*
Alder
Calibre
Calibre-B2Gold
Hemco
Nicaragua – An Emerging Porphyry District
Mining Triangle of Nicaragua has produced over 305 million lbs Cu and 8 million oz Au
10 10
Project History
• Concession hosts the historic open-pit Santa
Rita copper-gold-silver deposit
– Historic production of 245 million lbs Cu,
160,000 oz Au and 2.61 million oz Ag
– Reported mill recoveries of 60 – 80%
• Early mining focused on high grade ore (5.37
million tonnes of ore mined grading 2.06% Cu,
0.93 g/t Au and 15.08 g/t Ag) with 2% copper
stockpiled
• First gold recovery during the last five years of
production
• Mine closed in 1975 due to low copper prices
• Management believes that a substantial
amount of Cu-Au-Ag mineralization lies both
below and adjacent to the Santa Rita pit
1906 - 1912 Exploration and mining production
1916 – 1918 Tunnel and drilling
1950 Tunnel sampling and diamond drilling
1955 Diamond drilling
1959 – 1974 Mining
1981 – 1983 Geophysical survey, soil sampling and
diamond drilling
1996 – 1998 RC drilling, Geophysical survey and
soil sampling
2008 Trenching and rock sampling
2009 – 2010 Trenching, mapping, soil sampling
and diamond drilling
2011 - 2012 Channel sampling and RC sampling
on stockpiles
High grade deposit with substantial historical copper, gold and silver production
11 11
Project Geology, Targets and Prospects
Multiple highly prospective targets yet to be drilled
Refer to press release dated Nov 1, 2012
12
Santa Rita Stockpiles – Compliant Inferred Resource
12
STOCKPILE TONNES
(Mt)
Cu
(%)
Au
(g/t)
Ag
(g/t)
CuEq
(%)
Cu
(M lbs)
Au
(oz)
Ag
(oz)
NORTH 3.33 0.78 0.58 10.3 1.25 56.99 62,100 1,100,900
SOUTH 2.20 0.33 0.49 5.1 0.69 16.16 34,700 360,000
NE 0.55 0.50 0.22 9.6 0.75 6.06 3,800 168,300
EAST 1.88 0.71 0.30 12.0 1.03 29.33 17,900 725,100
TOTALS 7.95 0.62 0.46 9.2 1.01 108.54 118,500 2,354,300
Notes on Mineral Resource Estimation
1. See Data in NI 43-101 Technical Report entitled “Technical Report on Mineral Resource Estimate of the Rosita Stockpiles” dated June 22, 2012 and filed on SEDAR.
2. The mineral resource estimate base case is reported at a 0.15% copper equivalent cut-off grade; this cut-off incorporates consideration of mining and processing cost,
recoveries, commodity prices and selling cost.
3. The mineral resource estimate is reported on an undiluted basis.
4. The mineral resource estimate assumes a long term copper price of US$2.90/lb, a gold price of US$1,200/oz and a silver price of US$24/oz.
5. Rounding as required by NI 43-101 reporting guidelines may result in apparent summation differences between tonnes, grade and contained metal content.
6. Tonnage and grade measurements are in metric units. Contained gold and silver ounces are reported as troy ounces, contained copper pounds as imperial pounds.
7. Mineral resources that are not mineral reserves do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by
environmental, permitting, legal, title, taxation, sociopolitical, marketing, or other relevant issues.
8. The quantity and grade of reported inferred mineral resources in this estimation are uncertain in nature and there has been insufficient exploration to define these inferred
mineral resources as indicated or measured mineral resources and it is uncertain if further exploration will result in upgrading them to indicated or measured mineral
resources.
Santa Rita Inferred Stockpile Mineral Resource
Robust resource base at low resource discovery cost of $0.01/lb Cu1
1. Based on the inferred copper mineral resource and total exploration expenditures of $900,000
Effective Date: June 22, 2012
13 13
Santa Rita and R-13 Deposits
Potential to add additional tonnage to an already robust stockpile resource
29.54/8m
6.90/8.0,
1.76/4m
1.42Cu, 0.18Au,
20.45Ag/10m
0.87Cu, 0.81Au,
7.96Ag/10m
0.80Cu, 10.45Au,
21.83Ag/3m
0.49Cu, 1.15Au,
4.4Ag/4m
IP Anomaly
Refer to press release dated Nov 1, 2012
14 14 Note: Alder has not yet verified the historic drill results reported herein and does not intend to use this information for purposes
other than planning and prioritizing exploration targets. See News Release of May 31, 2012 and September 11, 2012
Santa Rita/R-13 Deposit Skarn Cu Mineralization
2.27Cu/ 16.7m 0.54Cu/ 24.4m
15 15 Note: Alder has not yet verified the historic drill results reported herein and does not intend to use this information for purposes
other than planning and prioritizing exploration targets. See News Release of May 31, 2012 and September 11, 2012
Santa Rita/R-13 Deposit Skarn Au/Ag Mineralization
Crosscutting New Gold Zones
16
Santa Rita Targets
Multiple Cu-Au-Ag
skarn targets, historic
resource
Santa Rita/R-13
corridor, Cu-Au-Ag
skarn
New Au discovery,
29.54 g/t Au/8m*
A
B
C
Porphyry Cu target,
strong porphyry
textures, highly
anomalous Cu, Au
D
IP Anomaly
* Refer to news release dated Sept 5, 2012
17
Santa Rita Targets
18
Bambana Targets
• Located 4 km northwest of the Santa Rita deposit
• Calibre Mining completed three drill holes that returned intercepts of up to 50 m grading
0.42% Cu, 7.00 g/t Ag and 11.5 m grading 0.51% Cu, 7.56 g/t Ag and 0.25 g/t Au
• Prospect pit returned 2.8m grading 6.28% Cu, 0.74 g/t Au, 132.75 g/t Ag
19 19
Bambana Area – T3 Prospect
• Trench returned porphyry-style mineralization that
included 12 m grading 3.32% Cu, 0.22 g/t Au and
37.55 g/t Ag
• Rock-chip sampling at two benches returned two
wide intercepts of 29 m grading 2.09% Cu, 0.19
g/t Au and 14.6 g/t Ag and 29 m grading 1.98%
Cu, 0.14 g/t Au and 14.4 g/t Ag
• 400 m drill program has successfully confirmed the
presence of shallow, high grade, oxide copper and
silver mineralization
• Untested IP chargeability anomaly with porphyry
copper potential
Close proximity to the Santa Rita pit provides future development upside
* Refer to news release dated Jun 13, 2012 and Nov 1, 2012
20 20
Bambana Area – Tipispan Prospect
• Historic drilling returned porphyry-style
mineralization that included 50 m grading 0.42%
Cu and 7.00 g/t Ag and 11.5 m grading 0.51%
Cu, 0.25 g/t Au and 10.41 g/t Ag
• Rock-chip sampling at prospect pit returned 2.8 m
grading 6.28% Cu, 0.74 g/t Au and 132.75 g/t Ag
• Trenching has returned 8.3 m grading 1.65% Cu,
0.17 g/t Au and 23.25 g/t Ag including 3 m
grading 3.85% Cu, 0.38 g/t Au and 51.43 g/t Ag
• Mineralized zone traced >200 m on surface and
100 m vertical depth
Close proximity to the Santa Rita pit provides future development upside
919
1.23 Cu, 0.36 Au,
10.63 Ag / 13.0m
920 1.74 Cu, 0.09 Au,
16.64 Ag / 18.0m
BB10-02
0.51 Cu, 0.25 Au
7.56 Ag / 11.5m
BB10-01
0.42% Cu
7.00 g/t Ag / 50.0m
T3
BB10-03
Circular Magnetic
Feature
Zopilote*
176,000 tonnes @ 0.90% Cu
(Oxide)
79,000 tonnes @ 0.97% Cu
(Sulphide)
Tipispan
* Refer to news release dated Nov 1, 2012
21 21
Bambana Prospect – T3 Zone Bench Sample
3.07% Cu, 0.14 g/t Au and 14.4 g/t Ag over 1 m
* Refer to news release dated Jun 13, 2012 and Nov 1, 2012
22 22
Ground Magnetic Survey – 108 km
A number of prospective anomalies warrant follow-up exploration work
23 23
Geophysics Compilation
A number of prospective anomalies warrant follow-up exploration work
IP Targets
24
Milestone Q1 2013 Q2 2013 Q3 2013 Q4 2013
Diamond Drilling – Santa Rita (7,500 m)
Diamond Drilling – Bambana (2,500 m)
Metallurgical Testing
Resource Estimate – Santa Rita
Scoping Study
General Exploration
Exploration and Development Timeline
25 25
Reasons to Invest
Past producing project
with significant economic
potential
• Previously a high grade, open-
pit mine with historic
production of 245 million lbs
Cu, 160,000 oz Au and 2.61
million oz Ag
• Potential for project with
excellent economics at current
copper price levels
Robust resource base with
exploration upside
• Stockpiles include a NI 43-101
compliant inferred resource of
8 million tonnes containing
108.5 million lbs Cu, 118,500
oz Au and 2.4 million oz Ag
(1.01% Cu Eq. grade1)23
• Excellent drill results illustrate
the potential to establish a
significant high grade resource
Well positioned in a stable
and emerging mining
district
• Located in the prolific Mining
Triangle of northeast
Nicaragua, host to several
significant copper and gold
porphyry deposits
• Stable, pro-mining government
with supportive mining laws
and an attractive mining tax
regime
1. Assumes a long term copper price of US$2.90/lb, gold price of US$1,200/oz and silver price of US$24/oz.
2. See Data in NI 43-101 Technical Report entitled “Technical Report on Mineral Resource Estimate of the Rosita Stockpiles” dated June 22, 2012 and filed on SEDAR.
3. As reported in the news release issued by Alder on May 9, 2012, the inferred resource estimate totals 7.95 mt, at an average grade of 0.62% Cu, 0.46 g/t Au and 9.2 g/t Ag
with an overall copper equivalent grade of 1.01%. The inferred mineral resource contains 108 million pounds of Cu, 118,500 ounces of Au and 2.35 million ounces of Ag.
26
TSX-V: ALR
65 Queen Street West, Suite 800
Toronto, ON, M5H 2M5
Follow us:
Joseph Arengi
President and CEO
(416) 309-4296
Don Dudek
Chairman
(416) 861-2261
Michael McAllister
Manager, IR
(416) 309-2134
27 27
Hole ID Area
To Thickness Cu Au Ag
From (m) (m) (m) (%) (g/t) (g/t)
D901 Sta Rita 75 85.9 10.9 0.36 0.15 6.32
" 89 92 3 0.12 1.27 3.57
D906 R-13 213 217 4 0.49 1.15 4.40
D910 Sta Rita 50 115 65 0.20 1.48 (1.00 cut) 2.00
Including 84 92 8 <0.1 6.90 (3.03 cut) <0.1
and 100 115 15 0.57 1.52 5.93
and 106 110 4 1.46 3.22 15.25
D911 R-13 173 179 6 0.05 1.86 3.15
and 262 292 30 0.31 1.10 5.78
including 289 292 3 0.80 10.45 (10.33 cut) 21.83
including 290 291 1 0.48 30.37 (30.00 cut) 11.6
D912 Santa Rita 156 158 2 1.24 1.45 12.25
and 197 201 4 0.03 1.76 0.09
D914 Sta Rita 235 250 15 0.04 15.82 (5.62 cut) 0.23
including 240 248 8 0.04 29.54 (9.38 cut) 0.29
including 241 243 2 0.04 110.69 (30.00 cut) 0.60
D915 Santa Rita 57 63 6 0.36 0.15 3.07
and 96 149 53 0.50 0.08 6.44
including 128 138 10 1.42 0.18 20.45
and 129 133 4 1.94 0.25 30.05
D916 Santa Rita 7 12 5 0.33 0.09 1.14
D917 Santa Rita 0 55 55 0.05 0.31 0.86
including 8 14 6 0.19 1.07 3.62
and 98 105 7 0.32 0.13 4.37
and 165 169 4 0.35 0.55 2.40
D918 Santa Rita 71 85 14 0.87 0.81 7.96
Santa Rita and R-13 Drill Highlights
Excellent drill results illustrate the potential to establish a significant high grade resource
Refer to press release dated May 31, 2011; Nov 1, 2012