Download - Corporate Presentation January 04, 2012
Mogul Ventures Corp. Q1, 2012
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THE FOLLOWING INFORMATION may contain forward–looking statements. Forward
looking statements address future events and conditions and therefore involve
inherent risks and uncertainties. Actual results may differ materially from those
currently anticipated in such statement. Forward-looking information is subject to
known and unknown risks, uncertainties and other factors that may cause Mogul
Venture Corp’s actual results, level of activity, performance or achievements to be
materially from those expressed or implied by such forward-looking information.
Such factors include, but are not limited to: uncertainties related to the historical
resource estimates, the work expenditure commitments; the ability to raise
sufficient capital to fund future exploration or development programs; changes in
economic condition or financial markets, regulatory, political and competitive
developments; technological or operational difficulties or an inability to obtain
permits required in connection with maintaining, or advancing projects; and labour
relation matters *All historical resource estimates quoted herein date from the 1960s and 1970s and are based on prior
data and reports obtained and prepared by previous operators and information provided by the State, using
a Russian classification system not compatible with 43-101. Insufficient data exists to compare Russian
categories to current C.I.M. categories. A qualified person has not completed sufficient work to verify the
classification of the historic mineral resources and as such they should not be considered as current
resources and they should not be relied upon. Mogul Ventures believes these historical results provide an
indication of the potential of the property and are relevant to ongoing exploration. It should also be noted
that mineral resources which are not mineral reserves do not have demonstrated economic viability as
defined by NI 43-101 guidelines.
www.mogulvc.com
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MONGOLIA OVERVIEW
• Recognized as the home of some of the world’s largest natural resource
deposits including coal, gold and copper
• Strategic location
• Next door to the biggest consumer of commodities in the world – China
• Mining is the most important sector:
• “Contributes 30% of GDP and 70% of exports”(1)
• Favorable political environment:
• Mongolian Government focused on the long-term development of
resource-related sectors and favorable policies towards business and
foreign investments
• Stable business-friendly democracy:
• 20-year, uninterrupted history of peaceful and democratic government
• Homogenous country with minimal risk of ethnic or religious conflict
Source: (1) the Ministry of Mineral Resources & Energy of Mongolia
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MINING INDUSTRY OVERVIEW
• Mining industry Size
(% of GDP) - 30(2)
• Market Cap, including foreign
juniors $30B+(3)
• Investment Capacity (5 years)
- $25 - $30B(4)
• Known mineral occurrences
- 6,000(5)
• Mineral deposits found - 80+(6)
Mongolia is poised to become one of the fastest growing
economies in the world in the next two decades
Source:
(2) the Ministry of Mineral Resources & Energy of Mongolia
(3) Bloomberg
(4) statement made by the former Prime Minister Bayar
(5), (6) The World Bank report on “Mongolian Mining Sector: Managing the Future”
www.mogulvc.com
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MONGOLIA COAL OVERVIEW
• Viewed as Saudi Arabia
of coal
• Total Minable
resources estimate
~162 billion tons (7)
• Rapid growth potential
• Current production
~16 million tons
per year (mostly
exported to China)
• Production
expected to reach
60 - 70 million tons
by 2015(8)
Source: (7), (8) Renaissance Capital’s June 15, 2011 report on “Moncoalia”
www.mogulvc.com
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MONGOLIA COAL OVERVIEW
• High quality and highly accessible:
• Generally near surface, ideal for low cost open pit mining, dominated by
high-quality low ash, low sulfur and low phosphorous coals
• Known geology:
• 12 coal basins, 3 regions with over 200 deposits of thermal and metallurgical
grade coal
• Main coal formation ages: Carboniferous-Permian, Jurassic, Cretaceous and Tertiary
• Thick coal seams formed in all ages
www.mogulvc.com
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COMPANY OVERVIEW
• Mogul Ventures Corp. focuses
on exploration, development
and production of thermal
and coking coal in Mongolia
• The company leverages
world-class management,
technical expertise and in-
depth local knowledge to
acquire, explore and develop
coal projects in Mongolia
• The company plans to monetize its coal assets through conventional open-pit mining
as well as the application of new technologies for underground coal gasification
• The company is co-founded by Mongolians and enjoys broad support and recognition
in the country
www.mogulvc.com
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MOGUL VENTURES TEAM
STEVEN KHAN, MBA, CFA Executive Chairman & Director
• 20 years experience in all aspects of the
investment industry including executive positions
with regional and national full-service Canadian
investment brokerage houses
• Focused on strategic corporate and business
development as well as resource and venture
capital financing during the last seven years
• Holds Director and Executive Officer roles in a
number of public and private resource companies
• Successfully completed major corporate
development initiatives both domestically and
internationally including in Japan, Korea and China
JOHN CARLESSO CEO & Director
• The founder of Cervello Capital Inc., a private
merchant bank based in Toronto; has over 16
years of international business experience
• Chairman of Oremex Silver Inc., an exploration
and development company focused on silver
assets in Mexico including the 50 million oz open
pit Tejamen deposit
• Co-founder of Explorator Resources Inc., a
mining exploration company developing the El
Espino-Venus copper-gold project in Illapel, Chile
• Has extensive experience in the junior mining
sector – held the position of Vice President,
Corporate Development at Desert Sun Mining
Corp, a company acquired by Yamana Gold Inc
www.mogulvc.com
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MOGUL VENTURES TEAM
JAMUL JADAMBA President & Director
• Natural resource and mining-focused investment
banker with an extensive capital raising
background, servicing worldwide companies,
especially in Mongolia
• Former Director and co-founder of the Metals
& Mining Group at Rodman & Renshaw LLC.
• Native Mongolian with well-established
relationships with influential business and
government leaders in Mongolia
• Extensively writes and speaks on topics of
Mongolian economy, development and politics
for organizations such as Oxford Analytica,
Institutional Investor and Business New Europe
DAVID A. TERRY, Ph.D., P.Geo. Senior Geologist
• Over 20 years of business experience in the
natural resource sector, focused primarily on
exploration of precious and base metal deposits in
North and South America.
• Director of and advisor to several publicly-listed
mineral exploration companies
• Specializes in public company management,
strategic planning, finance, advanced project
evaluation, identification and acquisition of
opportunities, and design and implementation of
effective and cost-efficient exploration programs
• Held positions with a number of senior mining
companies including Boliden Limited, Westmin
Resources Limited, Hemlo Gold Mines Inc.,
Cominco Limited and Gold Fields Mining
Corporation
www.mogulvc.com
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REGIONAL COAL DEMAND
• Mongolia’s southern neighbor, China, is the world’s leading consumer of coal
with annual demand of 2 billion tons
• China’s coal demand is expected to increase - planned power plant
construction in China is heavily concentrated in the northeast
• Domestic coal demand will increase significantly as Mongolia plans to
exponentially increase its own power infrastructure
• Coals of Northern China tend to be of a lower calorific value as compared
to those from the South and middle Gobi basins of Mongolia. China has a
shortage of coking coal
• The Chinese Government is focusing on fixed asset investments inland into
Central and Western provinces where Australian and Indonesian coals are
not competitive
www.mogulvc.com
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BLACK HILLS PROJECT LOCATION
Black Hills (Khar Tolgoi)
Source: Mongolian Railroad
Policy, Eurasia Capital
• 34,267 hectare mineral concession
• Includes the Ovdog Hudag and Ikh Ulaan-Nuur thermal coal deposits
• 90 km from main railway at Choir, 70 km from railway Spur
• 35 Kwatt power line on the property
Source: Mongolian railroad Policy, Eurasia Capital
www.mogulvc.com
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OVDOG HUDAG COAL DEPOSIT
• Ovdog Hudag coal deposit historical resources, based on Russian drilling from the 1960s and 1970s, using a Russian Classification system
• Estimated a C1 resource of 135 Mt and a C2 resource of 66.2 Mt for a total of 201.2 Mt*1
• Ovdog Hudag deposit comprises 5 shallowly-dipping coal seams ranging from 1m to 71m thick and defined by 85 historical drill holes
• Average Gross Calorific value of 6,295.5 kcal/kg
• Average Moisture content – 8.6%
• Average Ash – 17.5%
• Average Volatile Matter – 37.07%
• Expected Strip Ratio is low
• 2,370m, 14 hole diamond drilling program recently completed to form basis for 43-101 Resource Estimate and Technical Report being completed by SRK Consulting
*See Page 2 Note 1 SRK Consulting External Technical memo, May 28, 2011; Technical Report on the Coal Resources of
the Ovdog Hudag Coal Deposit Dundgovi Province, Mongolia” prepared by Flore Tungalag
Photo: Drill Rig, 2011
www.mogulvc.com
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IKH ULAAN-NUUR COAL DEPOSIT
• Located 6km northeast of Ovdog
Hudag Deposit
• Ikh Ulaan-Nuur historical coal
resources (C2)*1 were estimated at
88.4 Mt
• Drilling program planned to establish
and confirm resource potential and
coal characteristics
• Potential for Ovdog Hudag and Ikh
Ulaan-Nuur to be linked by drilling in
between
• Property has potential for presence
of other commodities (Cu, Fe)
*See Page 2 Note 1 SRK Consulting External Technical memo, May 28, 2011; Technical Report on the Coal Resources
of the Ovdog Hudag Coal Deposit Dundgovi Province, Mongolia” prepared by Flore Tungalag
Photo: Magnetite enriched with base metals
www.mogulvc.com
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GOALS AND OBJECTIVES
• Complete initial 43-101 compliant Resource Estimate on the Ovdog Hudag deposit at the flagship Black Hills (Khar Tolgoi) project
• Carry out additional drilling and surface exploration to maximize Black Hills’ full potential including:
• Infill and expansion drilling to expand resources and upgrade resource category
• Step-out drilling towards Ikh Ulaan-Nuur to evaluate seam continuity
• Evaluation of potential for other valuable commodities on the property
• Commence an economic evaluation of the Black Hills project
• Develop Black Hills towards production
• Seek strategic partners for funding expansion, off-take, development of a power plant, and application of new technologies for monetizing deep-in-ground stranded coal
• Acquire additional coal projects focusing on coking coal and thermal coal in proximity to near-term infrastructure development
Photo: Core being bagged from Drill 2, 2011
www.mogulvc.com
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Q1 2011 Q2 2011 Q3 2011 Q4 2011 2012
TRANSACTION Completed due diligence, property review, Title Opinion
Completed private financing, closed TS LLC purchase, RTO agreement with TSX listed CPC
Complete audit and prepare info Circ
Complete public RTO, close Pubco. funding
Public listing
EXPLORATION Complete initial independent historical review of coal occurrences
Complete drill program to confirm coal characteristics and historical work
Complete 43-101 report
Implement 43-101 recommended program
ACQUISITION Completed acquisition of TS coal project
Review other potential coal acquisitions
DEVELOPMENT Confirmation drilling of Black Hills
Confirm resource and expand drilling
Confirm resource and expand drilling
TIMELINE
www.mogulvc.com
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SUMMARY HIGHLIGHTS
• One of the few exploration and mining companies operating in Mongolia that has
significant local ownership. It has extensive local expertise and execution capabilities
• The company has unique access to a proprietary pipeline of acquisitions
• China continues to utilize thermal coal as a viable energy source
• Black Hills (Khar Tolgoi) project is a substantial thermal coal project close to
infrastructure with significant expansion potential
• The company and its principals have a broad network of strategic partners,
professional service providers, and capital sources to build long-term successful
projects and create significant shareholder value
www.mogulvc.com
Contact Information
+1 416.309.4326 | [email protected]
8 King St. E., Suite 107, Toronto, Ontario
M5C 1B5, Canada