mogul ventures corp. presentation
TRANSCRIPT
Mogul Ventures Corp. Q2, 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. 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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COMPANY OVERVIEW
www.mogulvc.com
*Ovdog Hudag Coal Deposit, Mogul Ventures Corp., 43-101 Report by SRK Consulting (China) Ltd., December 31, 2011
Capital Structure
Shares Outstanding (Aug.31.11)
111,391,517
Pre-IPO Financing (Apr. 2011)
$7,604,363 @
$0.25/share
• The company plans to monetize its coal assets
through conventional open-pit mining as well as
exploring the application of new technologies for
underground coal gasification
• The company leverages world-class management,
technical expertise and in-depth local knowledge
to acquire, explore and develop coal projects in
Mongolia
• Mogul Ventures Corp. focuses on
exploration, development and
production of thermal and coking coal
in Mongolia
• Initial NI 43-101 compliant
Inferred Resources of 89.6
million tons of coal established in
Ovdog Hudag Thermal Coal Deposit
based on 14-drill hole, 2,369 meters
drilling program*
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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; 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
• 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 Technical Advisor
• 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, 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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MONGOLIA OVERVIEW
• Strategic location
• Next door to the biggest consumer of commodities in the world – China
• Chinese government plans to cap domestic coal output within 3.9Bt by 2016 and is
encouraging companies to explore for coal in Mongolia and other regions(1)
• China’s thermal coal imports could increase to 1Bt in 2030 from 175Mt in 2011,
according to research consultants Wood Mackenzie(2)
• 2012 annualized GDP growth ~15%(3)
• Mining is the most important sector
• “Contributes 30% of GDP and 70% of exports”(4)
• 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
• Homogenous country with minimal risk of ethnic or religious conflict
www.mogulvc.com
(1) Pope & Company Morning Notes March 23, 2012, Vol.13, Issue 17; pg.3
(2) Pope & Company Morning Notes March 14, 2012, Vol.13, Issue 10; pg.3
(3) http://www.tradingeconomics.com/mongolia/gdp-growth-annual
(4) the Ministry of Mineral Resources & Energy of Mongolia
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MONGOLIA: MINING INDUSTRY OVERVIEW
• Mining industry size: 30% of GDP (1)
• Market Cap of publicly traded
companies with assets in Mongolia,
including non-Mongolian junior mining
companies: $30B+(2)
• Investment Capacity of Mongolia’s
mining industry (5 years): $25 - $30B(3)
• 6,000 known mineral occurrences(4)
• 80+mineral deposits found recognized
as economic by the Mineral Resources
Authority of Mongolia(5)
• 2011 coal production: 30 Mt(6)
Mongolia is poised to become one of the fastest growing
economies in the world in the next two decades
(1) the Ministry of Mineral Resources & Energy of Mongolia
(2) Bloomberg
(3) How much capex the country can absorb given known development projects. Statement made by the former Prime Minister Bayar
(4 - 5) The World Bank report on “Mongolian Mining Sector: Managing the Future”
(6) National Statistics Bureau
www.mogulvc.com
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MONGOLIA COAL OVERVIEW
• Viewed as Saudi Arabia of
coal
• Total Minable
resources estimate
~162 billion tons (1)
• Rapid growth potential
• Current production in
excess of 20 million
tons per year (mostly
exported to China)
• Production expected
to reach 60 - 70
million tons by 2015(2)
(1 - 2) Renaissance Capital, “Moncoalia”, June 15, 2011
www.mogulvc.com
Mongolia is recognized as the home of some of the world’s
largest natural resource deposits including coal, gold and
copper
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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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REGIONAL COAL DEMAND
• China, Mongolia’s southern neighbor, 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
www.mogulvc.com
• Mining License covers area of 34,054.69 hectares
• Comprises of the Ovdog Hudag and Ikh Ulaan-Nuur coal deposits
• 100 km southwest from Choir railway station
• 35 Kwatt power line on the property
• Easily accessible all year around
Planned Railways in Mongolia
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OVDOG HUDAG COAL DEPOSIT
• In 2011, a 14 hole, ~2,370 m core drilling program on 1,000 m
centers confirmed the historical work on the deposit, resulting
in an initial NI 43-101 Resource Estimate by SRK Consulting
• NI 41-101 Report summary results:
• Estimated Inferred Resources of 89.6 Mt (1)
• 8 coal seams recognized – 4 fully mineable, 2 partially
mineable
• Classed as High Vol Bituminous A Thermal Coal
• Average Gross Calorific value – 5,636 to 6,431 kcal/kg (daf)*
• *3,776 to 4,952 kcal/kg on a dry basis; daf = dry ash free
basis
• Average Volatile Matter – 29.9 to 37.9%
• Average Fixed Carbon – 32.3 to 39.5%
• Average Ash – 22 to 33% - washing will reduce
• Average Sulphur - 4.94%; removal of abundant visible pyrite
by washing expected to reduce S levels significantly
• SRK recommended program: infill and expansion drilling
program, process test work, mine design and Preliminary
Economic Assessment
(1) Ovdog Hudag Coal Deposit, Mogul Ventures Corp., 43-101 Report by SRK Consulting (China) Ltd., December 31, 2011
www.mogulvc.com
Drill rig, 2011
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OVDOG HUDAG & IKH ULAAN-NUUR DEPOSITS
• Ovdog Hudag coal deposit historical resources, based on Russian drilling from the ‘60s and ‘70s, using a Russian Classification system and based on >85 drill holes:
• 1968: C1+C2 resources totalling 201.2 Mt*1
• 1970: B+C1+C2 resources totalling 168.2 Mt*1
• Ikh Ulaan-Nuur coal deposit is located 7km NNE of Ovdog Hudag and was defined by Russian drilling in the ‘60s and ‘70s
• 1970: A+B+C1+C2 resources totalling 86.4 Mt*1
• Excellent potential for additional coal resources to be delineated in the undrilled area between Ovdog Hudag and Ikh Ulaan-Nuur
• Re-drilling of Ikh Ulaan-Nuur will add to NI 43-101 resources
• Open pit accessible coal resources with expected low strip ratio
*See Page 2 Note 1 Ovdog Hudag Coal Deposit, Mogul Ventures Corp., 43-101 Report by SRK Consulting (China) Ltd., December 31, 2011
www.mogulvc.com
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BLACK HILLS: KEY ADVANTAGES
• Strategic location close to existing rail line (parallel line planned) providing
ready access to Chinese markets
• Open pit accessible thermal coal resources with expected low strip
ratio
• NI 43-101 compliant Inferred Resource of 89.6 Mt from 2,370m of drilling in
14 holes at Ovdog Hudag deposit
• Excellent potential to significantly expand the projects’ coal resources
through:
• Infill and step-out drilling at Ovdog Hudag deposit where substantially larger
historical resources were delineated by Russian work in the 1960s and 1970s
through more detailed drilling
• Ovdog Hudag Coal Deposit remains open to the north
• Drilling of the Ikh Ulaan Nuur deposit 7km NNE of Ovdog Hudag (86.4 Mt*1)
• Testing the undrilled area between the two known deposits
• Property has potential for presence of other commodities (Cu, Fe)
1 Ovdog Hudag Coal Deposit, Mogul Ventures Corp., 43-101 Report by SRK Consulting (China) Ltd., December 31, 2011
www.mogulvc.com
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GOALS AND OBJECTIVES
• 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 between Ovdog Hudag and Ikh Ulaan-
Nuur to delineate additional resources
• Re-drill Ikh Ulaan-Nuur
• Commence detailed development studies including:
environmental baseline, processing, mine design
• Evaluation of potential for other valuable commodities
on the property (Fe, Cu)
• Conduct an economic evaluation
• Develop Black Hills towards production
• Seek strategic partners for funding expansion, off-take,
potential development of a mine-mouth 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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TIMELINE
www.mogulvc.com
H1 2011 H2 2011 Q1 2012 Q2 2012
TRANSACTION
Completed due diligence, property review, Title Opinion, private financing, closed TS LLC purchase, RTO agreement with TSX listed CPC
Complete audit and prepare info Circ. Received approvals and signed an order for issuance of the mining license
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
Completed NI 43-101 report Implement NI 43-101 recommended program
ACQUISITION
Completed acquisition of TS coal project
Review other potential coal acquisitions
DEVELOPMENT
Confirmation drilling of Black Hills
Converted Exploration license to Mining License
Confirm resource and expand drilling
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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
• Black Hills (Khar Tolgoi) project is a substantial thermal coal project close to infrastructure with significant expansion potential
• NI 43-101 Inferred Resources of 89.6 Mt (1)
• 10% drilling area generated 50% of historic resource
• Excellent potential to significantly expand the projects’ coal resources through infill and step-out drilling at Ovdog Hudag deposit where substantially larger historical resources were delineated by Russian work in the 1960s and 1970s through more detailed drilling
• Phase II drill program planned to commence April 2012
• China continues to utilize thermal coal as a viable energy source
• The company has unique access to a proprietary pipeline of acquisitions
• 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
(1) Ovdog Hudag Coal Deposit, Mogul Ventures Corp., 43-101 Report by SRK Consulting (China) Ltd., December 31, 2011
Contact Information
+1 416.309.4326 | [email protected]
Bay Adelaide Centre
Suite 1200 – 333 Bay St.
Toronto, Ontario
M5H 2R2, Canada
www.mogulvc.com