serenje ferromanganese project, zambia - zamanco …€¦ · · 2014-05-16 zamanco minerals...

www.zamancominerals.com

Zamanco Minerals Limited

Serenje Ferromanganese Project, ZambiaUpdate

October 2013


Not an Offer for SecuritiesThis document has been created by Zamanco Minerals Limited (the Company) solely for use at investor presentations to be made by the Company in 2013 and doesnot constitute nor does it contain an offer or invitation to buy or subscribe for securities in the Company or an inducement to make an offer or invitation with respect tothose securities. By attending the meeting where this presentation is made, or by reading the presentation slides, you agree to be bound by the following limitations.

Relevant Law & Relevant PersonsThe distribution of this document in jurisdictions outside of Australia may be restricted by law, and persons into whose possession this document comes should informthemselves about, and observe, all such restrictions.

Information is a synopsis onlyThis document only contains a synopsis of information on the Company and accordingly no reliance may be placed for any purpose whatsoever on the sufficiency orcompleteness of such information and to do so could potentially expose you to a significant risk of losing all of the property invested by you or incurred by you ofadditional liability. The information presented in this document is subject to change without notice.

Currency referencesFinancial amounts in this document are expressed in Australian dollars, or A$. USD or US$ shall mean the lawful currency of the United States of America.

Forward looking StatementsThis document contains ‘forward looking statements’ which involve subjective judgment and analysis and are subject to significant uncertainties, risks, andcontingencies, many of which are outside the control of, and are unknown to the Company. In particular, these forward looking statements are made only as of the dateof this document, they assume the success of the Company’s business strategies, and are subject to business, competitive and economic uncertainties and risks. Norepresentation, warranty or assurance (express or implied) is given or made in relation to any forward looking statement by any person (including the Company). Inparticular, no representation, warranty or assurance (express or implied) is given in relation to any underlying assumption or that any forward looking statement will beachieved. Actual future events may vary materially from the forward looking statements and the assumptions on which the forward looking statements are based.Given these uncertainties, recipients are cautioned to not place undue reliance on such forward looking statements. Subject to any continuing obligations underapplicable law or any relevant listing rules of the ASX, the Company disclaims any obligation or undertaking to disseminate any updates or revisions to any forwardlooking statements in this document to reflect any change in expectations in relation to any forward looking statements or any change in events, conditions orcircumstances on which any such statement is based. Nothing in this document shall under any circumstances create an implication that there has been no change inthe affairs of the Company since the date of this Presentation.

DisclaimerAlthough reasonable care has been taken to ensure that the facts stated in this document are accurate and that the opinions expressed are fair and reasonable, norepresentation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information and opinions contained in thisdocument and no reliance should be placed on such information or opinions. None of the Company, or any of their respective members, directors, officers oremployees nor any other person accepts any liability whatsoever for any loss, however arising, from any use of such information or opinions (save in respect of fraud).No reliance should be placed on the information and no representation or warranty (express or implied) is made by the Company or any of their respective directors oremployees or any other person, and save in respect of fraud, no liability whatsoever is accepted by such person in relation thereto.

Disclaimer


Zamanco’s Strategic Business Plan

StrategicCommodities

Prospective Regions

RightPeople

Value-Adding

The vision is to develop the Company into a mid-cap resources entity through the staged development of ferro-alloys projects in southern Africa.


Investment Highlights

• Zamanco Minerals Limited is a manganese exploration and development company focused initially on Zambia;

• Zamanco’s strategy is to identify manganese ore supplies sufficient to support a scaleablemedium‐carbon ferromanganese operation based in Serenje in central Zambia;

• Ferromanganese Smelter Study commenced January 2013Smelter site selected and tenure granted;Smelter and beneficiation design studies 90% complete;Environmental Impact Assessment submitted;

• Zambia offers excellent geological potential for large high value manganese deposits;

• Activities are focused on estimating a resource that supports a short project payback period.


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Volume

Share Price (A$/share)

Volume Share Price

Zamanco Minerals LimitedASX Code: ZAMFully Paid Shares on Issue: 64.55mDeferred Shares: 41.20mShare Price: $0.105Range (12 months): $0.105‐0.22Market Capitalisation: $6.77mCash @ 30/9/13: $4.07mDebt: nil

Corporate Snapshot

Directors Directors Shareholdings

Geoff Donohue Chairman Geoff Donohue 14.93%

Jacques Badenhorst Managing Director Peter Ironside 11.78%

Thomas Hill Executive Director Peter McIntyre 9.50%

Peter McIntyre Non‐Executive Director Jacques Badenhorst 1.88%

Peter Ironside Non‐Exec Director/Company Secretary Thomas Hill 1.88%


Current Project Status & Exploration Strategy

Exploration Update• Tenure secured on existing licences;• Evaluation at Nkundalila completed, 2.5km mineralised strike confirmed, initial

beneficiation test work positive;• Geological review completed, confirmation that Zambia offers possible upside for large,

high value manganese deposits;

Action: Focus on exploration and resource development to meet smelter requirements, exploring existing and new license areas.

Smelter Studies impacted by ‘critical path’ resource and mining studies• Smelter studies 90% complete;• Environmental studies submitted;• Next stage of BFS requires detailed ore metallurgy;

• Will not be fully known until resources defined and ore sources confirmed;

Action: Smelter Study and related expenditures on hold until resources and mining areasdefined.

Cash conservation in the current market environment

Action: Focus on exploration, minimize expenditures to preserve cash.Action: Identify and acquire prospective high value‐low cost manganese deposits to reduce

smelter input costs


Nkundalila• Located, near Kanona, 25 km from Pensulo smelter site;• Strike confirmed over 2.5 km;• Sampling completed, low grade horizon present (10-15%Mn);• Potential resource to be investigated;• Ore upgradeable through beneficiation (36-40%Mn), further test work required.

Chinsali • Located, near Chinsali, 360 km from Pensulo smelter site;• Exploration area recently increased to 974Km2;• Exploration potential on larger licence to be reviewed, multiple local occurrences of manganese to be

investigated.

General High Prospectivity of Zambia for Mn• Zambia produces low volumes of world-class, high grade manganese ore for export;• Zambia is a globally significant Proterozoic Metallogenic Province with significant potential for large,

high quality manganese discoveries;• Exploration using low cost, modern methods are planned to be used to evaluate existing licenses and

new opportunities, targeting size of greater than 250Kt of manganese resources;• Company will concentrate on building inventory of knowledge and high quality assets for resource

development;• Discussions underway for high grade ore supply agreeements.

Exploration Strategy – Current Projects


Project Locations ‐ Zambia


Proposed Serenje Manganese Project

• Internal Scoping Study completed for the development of a medium ferromanganese project in Zambia.

• Study indicated that a 56kt per annum medium carbon ferromanganese plant could be developed, which forms the basis of the 90% complete smelter design.

• Development of these production levels would require 127,000 tpa of manganese ore grading at 40% Mn content.

• Developments as a result of Scoping Study:‒ Advanced negotiations underway with Zesco for provision of power 45 MW;

‒ Title to land secured adjacent to Pensulo substation, near Serenje, sufficient for proposed processing plant location;

‒ EIA submission completed, awaiting approval.


Proposed Mining / Ore Purchase & BeneficiationEstimated Beneficiated ROM Requirement:

127,000 t at 40% Mn content2 paConc. trucked to Serenje

Proposed Ferromanganese Smelter

Potential Production from the Plant:

up to 56,000tMCFeMn pa

Proposed Serenje Manganese Project

Based on internal scoping studyestimates are conditional on theCompany defining and/or sourcingsufficient manganese to construct &supply the smelter/plant.


Serenje Smelter Study ‐ Status

Smelter Design – EPS contracted for design and costing ofsmelters at Serenje. 90% complete

Exploration – Focus on exploration of existing licences andidentification of new prospective areas to supply ore feed toproposed Smelter

Exploration targetsbeing finalised

Haulage Studies – Assessing Beira, Dar-es-Salaam andWalvis Bay as potential export ports.

To be done with off-take partners

Mining Studies – To be awarded. Awaiting resource andfines product details.

Following resource measurement

Power Studies – MOU with Zesco being renewed,engineering design to upgrade substation complete. In progress

Environmental & Social – Freestop contracted to manageEIA process. Public consultations completed.

Submitted to ZEMA, in approval process

Commercial Analysis– to follow above events. To be completed


Indicative Smelter General Layout

• EPS contracted to manage smelter studies;

• Design based on:

‒ 2 x 15 MVA smelters to produce HC FeMn

‒ 1 x 20 ton Converter to produce MC FeMn

• Includes sinter plant to utilise fines material.

• Design work 90% complete.

• Geotechnical site works complete.

• Site is located 1.4km from Pensulo sub‐station.

• EPS require detailed metallurgy and throughputsto complete study – will be resumed onceresources and mine plans finalised.


Power Studies

Smelter site selected based on proximity toroad and Pensulo sub‐station;

Zamanco will only need to install 1400m of33kVA line.

PENSULOSUB-STATION

SMELTERSITE


Haulage and Shipping Studies

• Three haulage & shipping options beingconsidered:

‒ Beira (Mozambique)

‒ Dar es Salaam (Tanzania)

‒ Walvis Bay (Namibia)

• Study considerations:‒ Distance

‒ Haulage options

‒ Port capacity/availability

‒ Reliability

‒ Cost

Walvis Bay

Dar esSalaam

Beira


EIA and Social Plan

• Zamanco has appointed Freestop to manage the EIA process;

• Community meetings held in Serenje to discuss plans;‒ No major issues raised

• Terms of Reference approved by Zambia Environmental Management Agency (ZEMA);

• EIA process expected to be completed Oct/Nov 2013.

First community EIA session in Serenje


Reasons for investing in Zambian projects, include:

• Known areas for manganese mineralisation, exploration upsidefor larger deposits.

• Political stability since attaining independence in 1964

• Banking, financial, legal and insurance services of aninternational standard.

• English speaking, with high literacy rate.

• Road and rail access to African ports.

Zamanco has a Certificate of Registration with theZambian Development Agency, which provides:

• 0% tax rate on dividends for 5 years from first year of declaring adividend;

• 0% tax on profits for 5 years from the first year profits is made,with only 50% profits being taxable in years 6 to 8, and 75%taxable in years 9 and 10.

• 0% import duty on raw materials, capital goods, machineryincluding trucks and specialised motor vehicles for 5 years.

Why Zambia?


Upcoming News – Next 6 months

• Focus on exploration drilling in order for resource andmining studies to catch up to remainder of smelterstudy;

• Exploration and test work planned for:

‒ Nkundalila;

‒ Chinsali;

• Ongoing expansion of tenement portfolio in line withexploration strategy.

• Continuation and investigation of alternative oresources, including small scale local miners anddiscarded fines material.


Contacts

Jacques BadenhorstManaging DirectorPh +27 82 780 8443E: [email protected]

Thomas HillExecutive DirectorPh +27 83 407 6037E: [email protected]

Geoff DonohueChairmanPh +61 8 9287 7625E: [email protected]


Appendix 1


Zamanco Capital Structure

Current shares on issue 64,550,000

Performance Shares to Vendors 1

Deferred Consideration 1 ‐ to be issued if Zamanco completes a bankable feasibility study for the production of ferromanganese from one of its Zambian projects (with a demonstrated capacity to produce at least 60,000 metric tonnes per annum for a minimum of ten (10) years), and the board of the Company approves the development of that project, on or before 10 February 2016

15,450,000

Deferred Consideration 2 ‐ to be issued if Zamanco achieves 12 months of continuous production from its high carbon ferromanganese smelter, on or before 10 February 2017

25,750,000

TOTAL 105,750,000

1 Shareholder approved acquisition consideration of Zamanco Holdings Limited. Vendors are entities associated with Jacques Badenhorst, Thomas Hill and two other South African citizens


Corporate and Social ResponsibilityZamanco benefits local communities

Zamanco Philosophy

• Engage the people of Zambia as Partners, through Joint Venture companies holding mineral rights.

• Establishment of community Trusts.

Benefits

• Zamanco holds exploration and mining rights.• Partners benefit through royalties on the extracted ores.• Self imposed royalty towards community trusts allows

investment into local co-operative community projects.

serenje ferromanganese project, zambia - zamanco …€¦ · · 2014-05-16 zamanco minerals...

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