arco presentation
TRANSCRIPT
ARCO RESOURCES Gold and Silver in Mexico
March 2012 Corporate Presentation TSX-V: ARR
TSX-V: ARR
Some statements contained in this presentation or in documents referred to in it are or maybe forward-looking statements. Actual results may differ from those expressed in such statements, depending on a variety of factors.
Any forward-looking information contained in this presentation has been prepared on the basis of a number of assumptions which may prove to be incorrect, and accordingly, actual results may vary.
Past performance of the Company cannot be relied on as a guide to future performance. This presentation does not constitute, or form part of or contain any invitation or offer to any person to underwrite, subscribe for, otherwise acquire, or dispose of any shares in Arco Resources Corporation or advise persons to do so in any jurisdiction, nor shall it, or any part of it, form the basis or be relied on in any connection with or act as a inducement to enter into any contract or commitment therefore. No reliance may be placed for any purpose whatsoever on the information or opinions contained in this document or on its completeness and no liability whatsoever is accepted for any loss howsoever arising from any use of this document or its contents otherwise in connection therewith.
Disclaimer
2
TSX-V: ARR
• Portfolio of 6 Silver / Gold projects, 100% owned with long term
community agreements
• Joint Venture with Argentum Silver Corp. (TSX-V: ASL)
• Current 43-101 reports on Tres Hermanas, Taviche & Predilecta
• Well established historic and current gold / silver producing region
• Adjacent to a working mine owned by Gold Resource Corp.
• Established infrastructure and management team
• Successful local geological and technical teams with proactive
community relations
Highlights
3
TSX-V: ARR
Warren McIntyre President & CEO
Simon Anderson CFO
Jeff Sheremeta VP, Corporate Secretary
Juan Lopez Country Manger
Officers & Directors
4
OFFICERS
Anthony Dutton Director
John Sutherland Director
Ben Whiting Director
DIRECTORS
TSX-V: ARR
February 27, 2012
Shares O/S 75.2m
Options, Warrants O/S 43.0m
Fully Diluted 123.5m
Market Cap 3.0m
3 Mo. Avg. Daily Vol. 160,310
3 Mo. High – Low
Daily Close $0.35 - $0.15
Inception March 13, 2006
TSX-V: ARR
Corporate Profile
Head Office:
Arco Resources Corporation
Suite 906, 595 Howe Street
Vancouver, BC V6C 2T5
Canada
Tel: +1 (604) 639 2866
Website: www.arcoresources.com
5
TSX-V: ARR
Mining Friendly
• Safe and many past and present producers
• Very good infrastructure, easily accessible
• Experienced and skilled local labour force
• Historic and government data available
• Close proximity to Canada and USA
Proven Value
• Significant recent discoveries and mines
• San Jose Mine (Fortuna Silver)
• Cobre Grande (Linear Metals) - pending
• High value, low operating cost jurisdiction
• Favourable exchange with strong CAD $
Why Oaxaca?
6
TSX-V: ARR
Arco Projects: Overview
Cuatro Venados
Tres Hermanas
Predilecta Taviche
1 2 3
Significant Mine Investment 1 Fortuna Silver 2 Gold Resource 3 Linear Metals
7
TSX-V: ARR
• 3,710 hectares covering a silver-lead-zinc-bearing vein system that has historic underground workings along a 400 metre strikelength.
• Five levels of underground workings.
• Underground sampling shows local values >500 g/t Ag.
• The Company has taken underground channel samples including 764.5 g/t Ag, 2% Zn and 10.4% Pb across 1.5 metres.
• Grid based soil sampling has indicated the vein system continues along strike in both directions.
Arco Projects: Tres Hermanas
Tres Hermanas
8
TSX-V: ARR
Arco Projects: Tres Hermanas
5 UG Levels – High grade Ag-Pb-Zn
Ag Soil Anomaly extends beyond historic workings
9
TSX-V: ARR
Arco Projects: Tres Hermanas
10
TSX-V: ARR
• 421 hectares covering silver-gold-bearing epithermal quartz vein.
• Vein exposed over two km strikelength.
• 250 m strikelength averaging 173 g/t Ag, 1.5 g/t Au.
• Historic (Spanish and recent ) underground production with 500 m underground strikelength.
• Excellent access, approx 1.5 hours drive from city of Oaxaca.
• Gold Resource Corp. and Fortuna Silver investing in significant mine development in the Taviche district.
Arco Projects: Taviche
11
Taviche
TSX-V: ARR
Arco Projects: Taviche
Headframe from old mine
Mining prior to 1998 over 20,000 tonnes
with average grade over 180 g /t Ag Quartz vein identified over 2 km & up to 5 m in width
12
TSX-V: ARR
Arco Projects: Taviche
13
1 Km
Quartz Vein
Taviche Property Map
Longitudinal Section of Underground
250m strikelength average width 1.4 m average grade
173 g/t Ag, 1.5 g/t Au (267 g/t Ag Eq)
TSX-V: ARR
Taviche – Long Section
14
TSX-V: ARR 15
Taviche – Long Section
TSX-V: ARR
Arco Projects: Taviche – Drill Results Hole 1
Hole BDT From To WIDTH Ag Au Ag eq m m m g/ton g/ton g/ton
2 61.10 69.0 7.90 191 1.27 267.20 Inc. 66.00 68.00 2.00 375 1.75 480.00 3 58.00 60.00 2.0 88.20 0.59 123.60 4 80.70 82.40 1.7 172.50 0.61 209.10 5 74.00 76.00 2.0 90.85 0.37 113.05 6 50.20 51.10 0.9 113.00 0.75 158.00 7 85.20 88.30 3.10 279.03 0.924 334.47 Inc. 87.35 88.30 0.95 450.00 1.63 547.80 8 89.20 93.00 3.70 306.31 1.02 367.51 Inc. 92.30 93.00 0.70 583.00 2.59 738.40
16
TSX-V: ARR
• 3,181 hectares located 68 km SSE of
Oaxaca City.
• Multiple mesothermal gold-bearing
quartz veins.
• High gold values, previously worked
property close to infrastructure and
transportation.
• Previous sampling indicated 143 g / t
Au over 0.45 m.
• Underground sampling average 19.26
g/t Au along 95 m with average
width of 0.57m.
17
Arco Projects – Predilecta
Predilecta
TSX-V: ARR
Arco Projects: Prediclecta
Predilecta Mine
La Cruz Mine
Predilecta Property High Grade Au
95 m strikelength averaging 19.26 g/t Au
18
TSX-V: ARR
Arco Projects – Predilecta
Predilecta Adit with Arco’s Country Manager Juan Lopez, Property vendor
and prospector Don Miguel Cormick, President Warren McIntyre and
General Manger Tito Jimenez. The rock had grades of over 145 gpt Au.
19
TSX-V: ARR
• 3,631 hectares covering 5 kilometre strike length
of a gold-bearing mesothermal quartz vein.
• Historic mining took place in the northern and
southern parts of the vein. The vein is generally one
metre wide with grades up to 12.6 g/t gold but
appear to average 4-8 g/t gold.
• Vein untested below water table.
• Little prospecting and sampling has been done on
the vein between the underground workings.
Arco Projects: Cuatro Venados
Cuatro Venados
20
TSX-V: ARR
Arco Projects: Cuatro Venados
Mine
Mine
Mine
1km
Zavaleta Mine average historic grade 8 g/t Au, 100 g/t Ag
21
TSX-V: ARR
Arco Projects: Cuatro Venados
Warren McIntyre, Paul Cowley, Juan Lopez,
discussing rock samples at adit entrance
Warren McIntyre with Jeff Sheremeta and
Geological consultant Dale Schultz at the
entrance to the Zavaleta mine
22
TSX-V: ARR
• Optimize value through JVs and/or sales
• Prove up prospective properties through drilling
and sampling
• Encourage local community involvement via
solid community relations
• Cost containment through risk mitigation and
economy of scale. Shared offices and
exploration teams.
Increased Value
23
TSX-V: ARR
Muchas Gracias!
Historic & Current Mining District
Excellent grades and access
Drill Ready Projects
Community support
Solid Exploration team
Arco Resources Corp.
Suite 906 - 595 Howe St.
Vancouver, BC, V6C 2T5
604 - 639 - 2866
24