building the next polymetallic mine in peru · building the next polymetallic mine in peru [e]: ......

Canada: VEM | Peru: VEM | Germany: V1R | US: VNARF

Building the next polymetallic mine in Peru

[e]: [email protected]

[w]: www.venaresources.com

130 Adelaide Street West, Suite 1010

Toronto, Ontario, Canada M5H 3P5

+1 416 364 7739

Av. Jose Pardo # 601, Of. 1301

Miraflores, Lima, Peru

+511 202 4090

Regulatory DisclaimerTSX: VEM

| BVL: VEM | Frankfurt: V1R

This presentation contains certain forward-looking statements. All statements, other than statements of historical fact, included herein, including without limitation, statements regarding potential exploration results, resources and reserves, and the future plans and objectives of Vena Resources Inc. (“Vena”) are forward-looking statements that involve various risks and uncertainties.

There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements.

Important factors that could cause actual results to differ materially from Vena’s expectations are disclosed elsewhere in documents that are available to the public at www.sedar.com.

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TSX: VEM | BVL: VEM

| Frankfurt: V1R

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Vena is a Canadian mining company focused on the exploration and development of Peru’s mineral potential.

Cash flow from mining operations funds core exploration investment - leveraging an accomplished technical team.

Proven project generator model with several world class JV partnerships and expanding.

Unlocking value by spinning out a subset of projects through public listings.

Corporate Objective

Canada: TSX:VEM | Peru: BVL:VEM

Germany: V1R | USA: VNARF

Market Capitalization: $43 Million

Cash Position: $7.2 million (Sept. 30, 2011)

Basic Shares Outstanding: 123,501,658

Fully Diluted Shares: 157,741,664

Management Shareholding: 5.6%

Institutional Shareholding: 22%

Corporate Snapshot

Juan Vegarra, Chairman, CEO & Founder - Juan Vegarra is a native of Peru and continues to foster his significant base of contacts within both the Peruvian government and the mining industry. Prior to his appointment as Chairman and CEO of Vena Resources in 2003, Mr. Vegarra enjoyed a successful career as a Microsoft executive. He was the founder of the Company and manages the overall corporate strategy and direction. He holds an engineering bachelor degree from the University of Maryland as well as an MBA from the University of Washington.

Harry Burgess – Harry Burgess became a director in January 2005. He has over 20 years of experience as a mining engineer and holds degrees in both mechanical and mining engineering. He is a Vice President of Micon International Limited, mineral industry consultants and his prior operating experience includes senior positions in the copper industry of Zambia and gold mining in South Africa. In Zambia, he held management positions with both technical and production responsibility. In South Africa, he was responsible for the introduction of mechanized mining systems to the gold mines of Anglo-American Corporation in the Orange Free State. Mr. Burgess has particular experience in the monitoring to completion of mining projects for banks and financial institutions and sits on the board of several junior mining companies.

John Clarke – John Clarke has been Vice President, Business Development with CGX Energy Inc., a TSX Venture listed exploration company with licenses offshore Guyana, South America since November 2009. Prior to joining CGX, Mr. Clarke was Executive Vice President, Corporate as well as being a director and one of the original founders of Candax Energy Inc., a TSX listed E&P company. Mr. Clarke is President of Clarke Energy Consulting Inc. and has over 35 years international experience in the energy sector and a broad capital markets background, including eight years as a Vice President and Senior Oil & Gas Analyst with Deutsche Bank and Octagon Capital Corporation, where he was ranked top North American Oil & Gas Analyst in 2003 and 2004 by Forbes/Starmine. Mr. Clarke has a Bachelor of Science in Physics from Birmingham University, Birmingham, UK and a Masters in Science from Imperial College, London, UK as well as a Bachelor of Arts in English from the University of Calgary.

Miguel Grau M., LLB - Miguel Grau resides in Peru and has been instrumental in the negotiation and implementation of several internationally viable resource projects, including the Shell-Mobil Camisea Natural Gas project and the Antamina mining project. Mr. Grau was a Director of Antamina until 2005 and chairman of Minera Milpo 1999-2002, one of the largest Peruvian zinc producers. He is also a member of the board of TSX listed mining companies like Bear Creek Mining and formerly Peru Copper until sold to Chinalco, and is related in Peru to companies such as Rio TInto, Xstrata, among others.

Jose Roberto Romaña Letts - Jose Roberto Romaña Letts, a native of Peru has a long history and strong ties in the mining sector of Peru. His most recent position in the mining industry was as a senior executive for Volcan, one of Peru’s largest mining companies. Mr. de Romaña has a degree in Management and Finance from St. Edward’s University in Austin, Texas and has attended numerous courses and seminars locally in Peru. Mr. de Romaña is also a director of a number of successful Peruvian companies involved in a variety of industries, including health, distribution and a manufacturer of equipment for the mining, agriculture and fishing activities.

Dr. Klaus Zeitler – Klaus Zeitler has been involved in the mining industry for over 30 years. Dr. Zeitler was a managing director of Metallgesellschaft AG, a German metals conglomerate and in 1986 founded and was a director and CEO of Metall Mining, later Inmet, a TSX listed company with assets of over $4 billion and base metal and gold mines in different parts of the world. After having been a director of Teck and Cominco for many years, Dr. Zeitler joined Teck in 1997 as Senior Vice President and had responsibilities for the exploration and development of mines in Peru, Mexico and the USA. Since his retirement in 2002 from Teck Cominco and in addition to being President, CEO and a director of Amerigo Resources Ltd., Dr. Zeitler is also Chairman and a director of Candente Copper Corp., a TSX listed company, and of Rio Alto Mining Limited, a TSX Venture Exchange listed company. He has been actively involved as a director in various junior base and precious metal companies. Dr. Zeitler is a member of the Canadian Institute of Mining and Metallurgy and the Prospectors and Developers Association. Dr. Zeitler holds a PhD in economic planning.

TSX: VEM | BVL: VEM

| Frankfurt: V1R

Board of Directors

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VENA RESOURCES

MASMA

LAGUNILLAS

JR 24

AZULCOCHA

GRANJA NUEVA

GIANDERICOMPINSAN IGNACIO

MACUSANIMUÑANI

PUKARAESQUILACHEAMANTINA

CANDELARIA SILVERGRANJA GOLD

ANDAMARCA

LAS PRINCESAS

JOIN VENTURES

AMANTINA - GOLD FIELDSAZULCOCHA -TRAFIGURAMACUSANI - CAMECOLAS PRINCESAS - FORESTER

Portfolio of AssetsTSX: VEM


Base Metals - ZincAzulcocha JV with Trafigura (70/30)Azulcocha Regional Exploration

Gold & SilverEsquilache JV with Silex Amantina JV with Gold FieldsLas Princesas JV with Forrester

Gianderi, Compin, San Ignacio, Pukara, Lagunillas, Volveremos, Andamarca & JR-24

UraniumMinergia JV with Cameco36mm Pounds U308 Resource

Spin Out CompaniesCandelaria Silver (Silver | Gold)Granja Gold (Gold | Copper)

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MASMA

JR 24

GRANJA NUEVA

GRANJA GOLD


VENA RESOURCES

AZULCOCHA

GIANDERIOMAY

SAN IGNACIO

MACUSANI

MUÑANI

AMANTINA

LAS PRINCESAS

JOINT VENTURES• AMANTINA - GOLD FIELDS• AZULCOCHA -TRAFIGURA• MACUSANI - CAMECO• LAS PRINCESAS - FORESTER

LAGUNILLAS

PUKARA

ESQUILACHE

CANDELARIA SILVER

ANDAMARCA

VOLVEREMOS

Corporate Structure – Unlocking Value via Spin Offs

Improve Vena’s, Granja’s and Candelaria’s ability to unlock the unrecognized potential and value of their respective assets, which the Board believes is not currently reflected in Vena’s share price;

Allow for a better valuation of Vena’s remaining assets and improve Vena’s ability to finance on favorable terms; and

Permit Vena’s management to dedicate more focus and resources to developing and adding value to its remaining assets.

Share resource model in Peru to minimize G&A costs for new companies and lever significant technical expertize in Vena across the three companies.

Enrique Winkelried, Peru Country Manager – Enrique Winkelried is a mining engineer with an advanced management degree. He has had over 30 years of experience in diverse aspects of mining including operations, planning, exploration, projects, mine commencement, cost control, security, environment and community relations in both underground and surface operations of polymetallic, gold, non‐metallic, iron and coal mining. Mr. Winkelried has worked for important mining and service companies in Peru such as Minera Santa Rosa, Grupo Minero Atacocha, Minera Yanacocha, Compania de Minas Buenaventura, Siemens, Zublin, Minera Bariben, Grupo Huampar, Hierro Peru and Cerro Verde.

Chris Davie, President Candelaria Silver – Chris Davie is a mining engineer and metallurgist with over 40 years experience. His background includes management of projects, investment funds and companies. He has experience in finance, mergers, acquisitions and IPOs in junior companies and has managed a number of junior resource companies including Queenstake Resources and its predecessor companies, Virgin Metals and Quia Resources.

Andres Tinajero, CMA, MBA, Vice President and Chief Financial Officer ‐Mr. Tinajero has over 15 years of business experience, having supported a broad range of industries, including mining, not for profit, manufacturing and retail; establishing a strong accounting and business skill set, transitioning into the public sector serving in leadership roles for small and medium sized companies in extractive industries. During this same period, he has served as CFO of a number of start‐ups and medium sized Public companies across Canada. Currently he serves as Director for Lakeside Minerals. He holds degrees in Business Administration and an MBA, and is also a Member of the Canadian Institute of Certified Management Accountants, and currently enrolled in the Director's Program through the University of Toronto.

David Bent, VP Explorations – David Bent has over 30 years of mining experience and extensive knowledge of exploration for base metals, precious metals and uranium in over a dozen countries. Prior to joining Vena Resources, Mr. Bent was Vice President of Exploration for UNOR Inc. where he was responsible for the uranium exploration program in the Arctic. Mr. Bent worked for many years with Noranda where he held numerous senior positions. He also held senior positions with Newmont Mining and Normany Mining in Peru. Mr. Bent earned his B.Sc. in Geology from Acadia University. He is a member of the Association of Professional Geoscientists.

Silvia Dedios, Manager Corporate Development – Silvia Dedios has over 20 years of finance, administration and business experience. Prior to joining Vena Resources, Mrs. Dedios was a senior manager in companies related to the mining, production and commerce industries in Peru. Mrs. Dedios Holds an MBA in business administration and advanced degrees in Finance.

Matthew Husson; Corporate Secretary ‐ Mr. Husson is a lawyer practicing corporate and securities law with a focus on the mining industry. He is currently an associate at Irwin Lowy LLP and a member of the Law Society of Upper Canada. He has experience representing mining issuers in public offerings, private placements, mergers and acquisitions, stock exchange listings and he provides advice relating to continuous disclosure and other regulatory compliance obligations. Mr. Husson obtained a Bachelor of Laws from the University of Alberta and an Honours Bachelor of Arts (Political Science) from McMaster University.

TSX: VEM | BVL: VEM

| Frankfurt: V1R

Management Team

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Azulcocha Regional Project

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Exploration & Development

Mining Operations• Azulcocha Mine (Zn) 2,041 hectares• JV with Trafigura (70/30 > 49/51)

Azulcocha Regional Exploration• Zincocha (Ag-Zn-Cu-Au) 3,663 hectares

- 9,000 metres - diamond drillingcompleted

• Chaucha (Ag-Zn-Cu-Au) - 4,525 hectares

• Canipaca (Ag-Zn-Cu-Au) – 10,100 hectares

Corporate OfficesToronto, Canada

Administrative OfficesLima, Perú

Mina AzulcochaConcepción, Perú

Projects•Zincocha•Chaucha•Canipaca

Main AssetsTSX: VEM


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(6.0)

(5.0)

(4.0)

(3.0)

(2.0)

(1.0)

0.0

1.0

2.0

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

10.011.012.013.014.015.016.017.018.0

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Consumption (Mt) Production (Mt)

(442) Kt

(716) Kt

(1,310) Kt

(1,720) Kt(1,884) Kt

2013 2014 2015 2016 2017

Supply Deficit on the HorizonSignificant Production Coming Offline

Brunswick

Perseverance

Snow/Trout Lake

El Mochito

Lisheen

Kassandra

Angas

Mt. Garnet Century

Duck Pond

Golden Grove Myra Falls

Mae Sod

El Toqui

Mahr Tunnel

Raura

Pomoranzy

Cannington

Guemassa

CayeliMajor Mine Closures

ZINC MARKET ENVIRONMENT Zinc is well‐positioned to outperform over the next three to five years

Continued growth in demand, scheduled closure of several globally significant zinc operations, and a lack of investment in new projects capable of filling the widening supply gap

Supply deficit expected in 2014 → will apply significant upwards pressure on zinc prices Zinc industry will need to develop 7 Mt by 2020 and 14 Mt by 2025 to meet expected demand

Supply deficit


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Azulcocha Financial Drivers

NI 43-101 for tailings and underground resource published

$17.7 million being invested with Trafigura to build scalable mill installation and mine preparation

BO Consulting – Scoping Study NPV of US$14.7mm IRR = 31.2%, Payback = 4 years OPEX at 500 tpd = US$55.27/mt OPEX at 1000 tpd = US$42.65/mt

Key Assumptions Price of Zinc = $1.00 per pound Hurdle Rate = 8%

16Canada: VEM | Peru: VEM | Germany: V1R | US: VNARF 11

Azulcocha NI 43-101 Resources - September 2011

0

500

1'000

1'500

2'000

2'500

3'000

2008 2010 2011TM

. (00

0)

Reserves(Proven+Probable)Resources(Measured+Indicated)Resources (Inferred)

Canada: VEM | Peru: VEM | Germany: V1R | US: VNARF 12

Azulcocha Mine – JV with Trafigura

Tailings Pond Processing Mill Electrical Substation Camp Site

Level 00

Level - 40

New Tailings Pond 8 TM


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» NEAR MINE EXPLORATION TARGETS

OPEN PIT

Vein 02

Manto 01

Manto 02

AZULCOCHA MINEFault Extension2 DDH (680m)

AZULCOCHA EASTCovered Zn/Mn

Targets AdditionalTrenching

Collapsearea

0 500mESCALA GRAFICA

Drilling and drifting to increase resources in 2012 Four drill ready targets on mine property: Possible fault off-set of W end of ore body Azulcocha East mineralized trenches Vein 02 / Mantos in hanging wall of mine Fierromina high grade Zinc structure

MANTO TARGETSAZULCOCHA SOUTH

10 DDH (1345m)

MANTO TARGETSAZULCOCHA SOUTH

10 DDH (1345m)


Azulcocha Near Mine Exploration

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Zincocha Project• 30 known showings to west of mine

property:• Maria Fe – large tonnage potential Zn

skarn• Valeria – Zn skarn with high grade Ag• Recuperada – High grade Ag vein

structure

Chaucha Project• 4,525 hectares within Cercapuquio –

Chuquipita mineralized corridor• Extensive ASTER Zinc anomaly• Mapping, sampling and geophysics to

delineate drill targets• Possible drill testing of priority targets in

2012

Canipaca Project• 10,100 hectares on trend with Cercapuquio

and Mario mines• Several ASTER Zinc anomalies• Reconnaissance mapping, geochemical

sampling to define targets for detailed surveys

Azulcocha Regional Exploration

Mario Proj. CercapuquioMine

CHAUCHA Project

CANIPACAProject

AZULCOCHAMine

Gitennes

Zincocha AzulcochaChauchaCanipaca

LEGEND

ZINCOCHA Project

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Precious Metals Assets

Gianderi

Gianderi – Gold Project in Northern Peru


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SECCION GEOLOGICADE SONDAJESPROPUESTOS


Uranium Assets

Our Partner – Cameco Corporation

Cameco has the option to invest $10 million over four years to earn a 50% interest in MINERGIA S.A.C.

Cameco can increase its ownership to 60% by completing a feasibility study and to 70% by initiating mine development

Future investment in uranium in Peru –including acquisition of additional uranium interests by either party – will be made through MINERGIA S.A.C.

Vena is the operator of the joint venture company in Peru

World’s second largest uranium producer with 20% market share

Average sales - 31.8 million pounds U308per annum

Estimated $90 million exploration expenditure in 2010

Uranium Potential in Peru

Joint Venture - Minergia SAC

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Uranium in Peru: The Macusani Region

• Property - 4,900 hectares

• Uranium in ignimbrites

• 14,534 metres of DDHscompleted during 2006-2008

• 12,316 metres of DDHscompleted during 2009-2010

• 2012 work plans being developed

• NI 43-101 resource estimate for Tantamaco, Isivilla, Nuevo Corani and Tuturumani zones filed on SEDAR.

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TSX: VEM | BVL: VEM

| Frankfurt: V1R

Resource Summary ‐ U308Measured 5,691,588 lbIndicated 12,525,199 lbInferred 17,422,031 lb

Awards for Social Responsibility and Environmental Leadership


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Azulcocha Mine now in production!


building the next polymetallic mine in peru · building the next polymetallic mine in peru [e]: ......

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