gold exploration in the volta region
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Objective Capital's Africa Resources Investment Congress 2012Ironmongers' Hall, City of London12 June 2012Speaker: David Sumich, Volta MiningTRANSCRIPT
AFRICA RESOURCESINVESTMENT CONGRESS
IRONMONGERS’ HALL, CITY OF LONDON ● TUESDAY, 12 JUNE 2012
www.ObjectiveCapitalConferences.com
Gold exploration in the Volta RegionDavid Sumich – Managing Director, Volta Mining
Emerging resources company with interests in iron ore and gold assets
in West Africa
June 2012
ASX VTM | PAGE 3
DisclaimerAny forward looking statements in this Presentation have been prepared on the basis of a number of assumptions which may prove incorrect and the current intentions, plans, expectations and beliefs about future events and are subject to risks, uncertainties and other factors, many of which are outside Volta Mining Limited’s (“Volta Mining’s” or “the Company’s”) control. Important factors that could cause actual results to differ materially from the assumptions or expectations expressed or implied in this Presentation include known and unknown risks. Because actual results could differ materially to the assumptions made and Volta Mining’s current intentions, plans, expectations and beliefs about the future, you are urged to view all forward looking statements contained in this Presentation with caution. This Presentation should not be relied upon as a recommendation or forecast by Volta Mining. Nothing in this Presentation should be construed as either an offer to sell or a solicitation of an offer to buy or sell securities in any jurisdiction.
This Presentation is not intended to provide the sole basis of any investment decision or other evaluation. Each recipient hereof contemplating an investment in the securities of Volta Mining shall make, or shall be deemed to have made, their own independent investigation of Volta Mining and related documentation and their own appraisals of the prospects and merits of the Company and its assets described herein.
All forecasts, facts, information, estimates and other statements of opinion contained in this Presentation have been prepared solely by, or on the basis of, information supplied to Volta Mining. While the information contained herein is believed to be true and accurate, we expressly disclaim any and all liability for representations or warranties, expressed or implied, contained herein, or in any other written or oral communications transmitted or made available to any prospective investor.
No representation or warranty is made by Volta Mining that forecasts, projections, business goals or estimates contained herein will be achieved. This Presentation speaks as of the date hereof. Neither the delivery of the Presentation nor any sale made hereunder shall, under any circumstances, create any implication that there has been no change in the affairs of the Company after the date hereof.
Competent person’s statementThe information in this Presentation that relates to exploration results is based on information compiled by Mr Liviu Tusa, an employee of Volta Mining and a Member of the Australian Institute of Geoscientists. Mr Liviu Tusa has sufficient experience which is relevant to the style of mineralisation and types of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 edition of the “Australasian Code for Reporting of Exploration Results, Minerals Resources and Ore Reserves.” Mr Liviu Tusa consents to the inclusion in the Presentation of the matters based on his information in the form and context in which it appears.
ASX VTM | PAGE 4
Executive summary
» We are an emerging gold explorer with a vision to become a mid-cap resources company with a pipeline of advanced, sustainable projects in Africa
» We are a listed in the Australian Securities Exchange (ASX)
» We have a portfolio of early stage gold exploration projects in Burkina Faso and interests in iron ore in Gabon
» We have a highly experienced board and in- country management team in place with a track record of success in Africa
» We are an attractive investment for those seeking exposure to “ground level” entry into Africa
Volta Mining is conducting a global roadshow to provide an update on gold exploration results and its strategy for growth
CONTENTSSection 1
Corporate vision and strategy
Section 2Gold project portfolio
Section 3Iron ore in Gabon
Section 4Summary: why invest in Volta Mining?
Section 1Corporate vision and strategy
ASX VTM | PAGE 7
Corporate office:Perth, Australia
Regional office:Ouagadougou, Burkina Faso
Who is Volta Mining?
» Focus is on projects in Africa only
» Africa is an attractive prospect:– it is highly prospective and underexplored– political risk is decreasing on average– acquisition costs are lower
» Focus is on strong, well understood commodities: gold, iron ore, coal, manganese, copper
We are an Australian company» We have vast access to skills
» We operate in a well regulated capital market
» We adhere to the strictest anti-bribery and corruption laws
» Australian companies are the defacto world standard for Environment and Safety practices
Volta Mining is an emerging acquirer, explorer and developer of assets
Seeking investment from the US and Europe
ASX VTM | PAGE 8
Vision and goals
Short term goals: 0 – 6 months since listing in October 2011
To acquire large prospective and strategic landholdings in West Africa
To complete a 10,000 – 20,000m auger drilling programme by Q1 2012 on new projects
Medium term goals: 6 – 12 months since listing in October 2011
» To develop a pipeline of projects
» To commence RC drilling (Stage 1) & additional infill and regional auger drilling programmes (Stage 1) across project sites
» To further strengthen our financial position
Our vision is to become a leading mid-cap resources company with a pipeline of advanced, sustainable projects in Africa
ASX VTM | PAGE 9
Corporate snapshot
Capital structure (31 May 2012) 1
Cash at bank ~AUD3.3 mn
Total issued capital 44,550,000
Options Exercisable at AUD20 cents on or before 30 June 2014
37,100,000
Market capitalisation – undiluted
~AUD11.5 mn
Shareholding summary (20 April 2012)
Directors2 9%
Project vendors 7.2%
Seed investors 7.6%
HNW clients of Indian Ocean3 23.7%
Australian institutions 9.1%
Overseas institutions 5.6%
Australian retail 37.8%
100%
Board of directors
Mr George LazarouNon-Executive Chairman
Mr David SumichManaging Director
Dr Alain GachetNon-Executive Director
Mr David WirrpandaNon-Executive Director
1includes recent AUD2.3 million capital raise with Tranche 2 subject to EGM2includes 688,000 shares purchased on-market by MD post-IPO @ ~20 cents3Indian Ocean Capital: Lead Manager to IPOwhich closed oversubscribed in September 20114includes merged holders
Top 20 shareholders (31 May 2012)4
70.58%
Section 2Gold project portfolio
ASX VTM | PAGE 12
Regional focus: francophone West Africa
Primary focus (francophone
West Africa)
Secondary focus (francophone
West Africa)
Francophone West Africa
Equatorial Guinea
Mali
Burkina Faso
Benin
Coté d’Ivoire
Niger
Senegal
Guinea
Chad
Central African Republic
Democratic Republic of the Congo
Republic of the CongoGabon
CameroonTogo
1Southern Cross Equities, “Gold in Africa”, - 19 July 20102Ambrian, “West Africa Gold Sector” – March 2010
Volta Mining is reviewing gold, iron ore and other commodities in francophone West Africa
Why West Africa?
» It is the fastest growing gold producing region in the world1
» No.1 globally in gold resourcegrowth (1997–2005)2
» Gold production has increased by more than50% over the last 10 years2
» It plays host to numerousiron ore deposits and has the potential to become a significantiron ore producing region in the future
ASX VTM | PAGE 13
Control risks
Burkina Faso
» Security risk: Medium
Gabon
» Security risk: Low
Source: Control Risks. Risk Map 2012 (www.controlrisks.com/Riskmap/Pages/RiskMap.aspx)
ASX VTM | PAGE 14
Why gold in Burkina Faso?
» Burkina Faso is the 5th largest gold producer in Africa and one of the fastest growing1 – One gold mine operating in
20073
– Six gold mines operational by 20103
» Rapidly expanding mining sector with over 60 foreign companies exploring in Burkina Faso3
» Pro-mining government that operates under a modern, clear mining code (revised in 2003)
» Good infrastructure (grid power, water)
Country % Greenstone belt
+1 Moz Gold deposits
Ivory Coast 35 8Moz
Burkina Faso
22 12Moz
Ghana 19 110Moz
Guinea 11 12Moz
Mali 10 33Moz
Senegal 3 3Moz
TOTAL 3 +170Moz
Table: Greenstone belt exposure and Au deposits, West Africa (source: USGC Minerals Commodities)
3Mining Journal special publication, “Burkina Faso”, Nov 2011
ASX VTM | PAGE 15
Gold project portfolio, Burkina Faso
Option to acquire 100% interest in three projects in Burkina Faso*
Koro Gold Project» Three (3) permits totalling: 615.6km2
» Evidence of three (3) artisanal mining sites
» Maiden auger drilling programme complete
Ibi Palga Gold Project» Two (2) permits totalling: 492km2
» Evidence of five (5) artisanal mining sites
» Maiden auger drilling programme complete
Dangue Gold Project» One (1) permit totalling: 242.51km2
» Evidence of three (3) artisanal mining sites
» Exploration programme underway *For full commercial terms see ASX Announcement “Volta Mining acquires strategic portfolio of new projects in Burkina Faso and Mali” dated 27 January, 2012
ASX VTM | PAGE 16
Koro & Ibi Palga Gold Projects: auger results
What is the significance of the maiden auger drilling programme results?
» Drilling to date (11,836m; 1,311 holes) has confirmed large areas of anomalous gold at artisanal mining sites at the Koro and Ibi Palga Gold Projects
» The results confirm the potential for the areas to host significant gold mineralization
» Follow-up RC and infill auger drilling programmes are planned for both Koro and Ibi Palga Gold Projects
» Overall, the results support Volta Mining’s objective to define at least one gold resource of 1 million ounces of gold
ASX VTM | PAGE 17
Koro & Ibi Palga Gold Projects: regional geology
ASX VTM | PAGE 18
Koro Gold Project, Burkina Faso: auger results
Arbole Sud–Titanguen artisanal mining site
» Results have confirmed the presence of surface gold anomalism with geochemical values up to 11,000ppb
» Previously defined anomalous area has the potential to be increased up to 7km based on regional auger results and geophysical information
» Geochemical auger drilling suggests that the style of mineralisation is similar to that of the Kalsaka gold mine situated in greenstone (green schist) 30km to the north
» Stage 1 RC drilling and infill auger drilling programmes are being planned to test the extension of the Arbole Sud-Titanguen artisanal mining site
ASX VTM | PAGE 19
Koro Gold Project, Burkina Faso: auger results
ASX VTM | PAGE 20
Ibi Palga Gold Project, Burkina Faso: auger results
Doussare-Kouma artisanal mining site
» Results have confirmed the presence of surface gold anomalism with geochemical values up to 1,030ppb
» Previously defined anomalous area remains open along strike based on regional auger results and geophysical information
» Geochemical auger drilling suggests that the style of mineralisation is shear zone style gold mineralisation
» Stage 1 RC drilling and infill auger drilling programmes are being planned to test the extension of the Doussare-Kouma artisanal mining site
ASX VTM | PAGE 21
Ibi Palga Gold Project, Burkina Faso: auger results
ASX VTM | PAGE 22
Next steps
Exploration plan – Stage 1
» 4,000m RC drilling across both project sites
» 20,000m auger drilling (infill and regional) across both project sites
Timeframe:
» 6 - 8 months
Funding
» Fully funded to complete both programmes
Outcomes
» Proof of concept to warrant resource drill out
ASX VTM | PAGE 23
Our value proposition: current portfolio
Have a JORC Resource
>2MozGold Explorers
Market capitalisation AUD27 – AUD60 million
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Future asp
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Volta Mining’s current portfolio of assets have the potential to be a company maker in their own right
?
There is the potential for significant upside upon the diversification of Volta Mining’s portfolio to include an iron ore asset
An increase in market capitalisation is possible following the achievement of Volta Mining’s medium term goals which include:» An increase in land
position in Burkina Faso
» The completion of RC & auger drilling programmes on new projects
Section 3Iron ore in Gabon
ASX VTM | PAGE 25
Why iron ore in Gabon?
Geology
Infrastructure
No cross-border issues
Politically stable
Actively looking to increase foreign investment in mining
2
Belinga iron ore (4BT @ +60% Fe)
ASX VTM | PAGE 26
Imminent potential iron ore acquisition
» Can leverage off the Belinga (4BT @ +60% Fe) committed infrastructure
» Management view Gabon acquisition as a better opportunity than Mayoko initially presented
» Intend to have an exploration target in the short term
ASX VTM | PAGE 27
Track record of success
Volta Mining’s management team were responsible for the acquisition and development of the Mayoko Iron Ore Project (DMC Mining) in Republic of Congo which grew from 33MT to an Exploration Target of 0.7BT – 1BT of iron ore in a three (3) year period
Mr David SumichManaging Director & Founder
Mr Mohammed MunkailahCountry Manager
Mr Liviu TusaSenior Geologist
Dr Alain GachetTechnical Consultant
2007 - 2010
Mr David SumichManaging Director & Founder
Mr Mohammed MunkailahRegional Manager, Africa
Mr Liviu TusaExploration Manager
2011 to date
Dr Alain GachetTechnical Director
ASX VTM | PAGE 28
Case study #1: DMC Mining Limited
» IPO: Market capitalization of approximately AUD5 million
ACQUIRE
ADD VALUE
MONETIZE
July 2007
» Acquired the Mayoko Iron Ore Project (Republic of Congo)
Dec 2007
» Initial JORC resource – Mayoko Iron Ore Project (33MT)
May 2008
» Initial Scoping Study completed» Employed 100+ Congolese and trained five (5)
geologists» Local community provided with water and
medical supplies
June 2008
» Rail access agreement with CFCOApril 2009
» MOU with port authority (PAPN)June 2009
» Exploration target size of 0.7-1.0 billion tonnes at Mayoko Iron Ore Project
July 2009
» Stage 2 drilling and metallurgical testwork commenced
Dec 2009
» On-market cash takeover valued company at approximately AUD50 million
March 2010
AUD5 million
AUD50 million
Mr David Sumich Founder & Managing Director (2007 – 2010)
Commodity Iron oreLocation Republic of Congo
2012: African Iron Limited (ASX: AKI), owner of Mayoko asset, under takeover for ~AUD330 million
» Stage 1 drilling commencedMay 2008
ASX VTM | PAGE 29
Prospective assets: iron ore, Gabon
Volta has already formed strong in country relationships with key government groups
Volta Mining’s David Sumich, Managing Director (l) and Mohammed Munkailah, Regional Manager-Africa (r) with Minister of Mines for the Gabonese Republic (c)
HE Ali Bongo Ondimba, President of the Gabonese Republic speaking at the Volta Mining sponsored Australia-Africa Business Council Presidential Breakfast - Perth, April 3, 2012
Section 4Summary: why invest in Volta
Mining?
ASX VTM | PAGE 31
Summary: why invest in Volta Mining?
» Management have acquired , developed and monetized world class projects and our vision for Volta Mining is to replicate and exceed past successes
» The gold assets have the potential to be a company maker in their own right
» RC programme to commence imminently with continuous flow of results to follow
» Imminent Gabon iron ore acquisition has the ability to greatly increase market capitalisation within a short period of time
Thank you