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    The REKO DIQ Project

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    Hamid Ashraf
    The document discusses the Reko Diq project in Pakistan. It describes the H4 resource which contains 94 million tonnes at 0.73% copper. It also describes the Western Porphyries inferred resource of 730 million tonnes at 0.6% copper and 0.4g/t gold. Financing such an offshore project is challenging for an Australian junior mining company. However, successfully developing the project could reward shareholders with exposure to a multi-billion tonne copper and gold resource.

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    The REKO DIQ Project

    Uploaded by

    Hamid Ashraf
    57 views32 pages
    The document discusses the Reko Diq project in Pakistan. It describes the H4 resource which contains 94 million tonnes at 0.73% copper. It also describes the Western Porphyries inferred resource of 730 million tonnes at 0.6% copper and 0.4g/t gold. Financing such an offshore project is challenging for an Australian junior mining company. However, successfully developing the project could reward shareholders with exposure to a multi-billion tonne copper and gold resource.

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    The document discusses the Reko Diq project in Pakistan. It describes the H4 resource which contains 94 million tonnes at 0.73% copper. It also describes the Western Porphyries inferred resource of 730 million tonnes at 0.6% copper and 0.4g/t gold. Financing such an offshore project is challenging for an Australian junior mining company. However, successfully developing the project could reward shareholders with exposure to a multi-billion tonne copper and gold resource.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    57 views32 pages

    The REKO DIQ Project

    Uploaded by

    Hamid Ashraf
    The document discusses the Reko Diq project in Pakistan. It describes the H4 resource which contains 94 million tonnes at 0.73% copper. It also describes the Western Porphyries inferred resource of 730 million tonnes at 0.6% copper and 0.4g/t gold. Financing such an offshore project is challenging for an Australian junior mining company. However, successfully developing the project could reward shareholders with exposure to a multi-billion tonne copper and gold resource.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 32

    The REKO DIQ project

    REKO DIQ - LANDSAT IMAGE


    THE REKO DIQ PROJECT

    Drill tested to Resource status

    Bukit Pashir
    3 1-7 drillholes each - more work
    required
    Camp New targets - not yet drill tested
    Western
    Porphyries H4 Resource
    33 Drill Holes
    North Koh I Dalil
    1 Drill Hole 1 Drill Hole Possible second supergene resource)
    Inferred Resource
    2
    730Mt @ 0.6% Cu
    and 0.4g/t Au 35
    4 Drill Holes
    at 0.5% Cu cut-off 10
    Koh I Dalil
    Sam Koh
    46 Drill Holes
    8 1 Drill Hole
    7 Drill Holes 3 Drill Holes
    7 1 Drill Hole
    27 Parrah Koh
    9 3
    0 1km 2 Drill Holes 36
    5 Drill Holes
    H4 PROJECT - LEACHED CAP

    The light-coloured material in the


    middle ground is the H4 Leached Cap
    H4 - DRILL HOLE LOCATION PLAN
    H4 - CROSS SECTION
    H4 - LONG SECTION
    H4 pre-feasibility study
     Indicated Resource: 94mt @ 0.73% Cu, cut-off 0.3% Cu
     Mining, Metallurgy, Capital and Operating Costs
     Probable Reserve: 78 mt @ 0.7% Cu, cut-off 0.3% Cu
     SX-EW bacterial heap leach operation:
    – 5-8m tonnes ore pa for 40,000 t copper metal pa
    – Strip ratio LOM - 1:1
    – Cash cost of production - 48c per pound copper
    – NPV(10) = US$73 million
    – Internal Rate of Return = 21% (ungeared)
    – Average annual after tax cashflow (ungeared) = US$30m
    – Copper price assumption: 90c per pound, LOM
     Upside: capital costs, recoveries, grade, ore extensions
    THE REKO DIQ PROJECT

    Western Drill tested to Resource status

    1-7 drillholes each - more work


    Porphyries3 required

    New targets - not yet drill tested

    Camp
    33 Drill Holes
    North Koh I Dalil
    1 Drill Hole 1 Drill Hole Possible second supergene resource)
    Inferred Resource
    2
    730Mt @ 0.6% Cu
    and 0.4g/t Au 35
    4 Drill Holes
    at 0.5% Cu cut-off 10
    Koh I Dalil
    Sam Koh
    H446(Supergene)
    Drill Holes
    8 1 Drill Hole
    7 Drill Holes 3 Drill Holes
    7 1 Drill Hole
    27 Parrah Koh
    9 3
    0 1km 2 Drill Holes 36
    5 Drill Holes
    WESTERN PORPHYRIES - plan view
    WESTERN PORPHYRIES - cross SECTION
    WESTERN PORPHYRIES
    WESTERN PORPHYRIES
    • Inferred Resource: 730 million tonnes @ 0.6%
    copper and 0.4g/t gold

    • Metal Contained in Inferred Resource: 4.4 million


    tonnes copper and 9 million ounces gold

    • Estimated Global Resource for Reko Diq System:


    more than Three Billion Tonnes of mineralised
    material, containing possibly 18 million tonnes
    copper metal and 35 million ounces of gold
    (based only on known mineralised porphyry
    systems)
    FINANCING OFFSHORE PROJECTS

     WHY DO IT?
     WHY IS IT SO HARD?
     SOURCES OF FINANCE
     THE ETHICAL DIMENSION
     THE REWARDS
    The kalgoorlie formula

    Share Price = f[1/(distance from


    Kalgoorlie)2]
    YILGARN
    CRATON

    Gold - in lots
    of small
    deposits

    Nickel - in lots
    of small
    deposits
     The Classic Australian Junior is a gold or
    nickel play in Western Australia
     Australian investors have made money in
    Australia - and seen it lost outside Australia
     Australia is a great mining country - local
    punters want their speculative funds spent in
    country
     For a brief period in the 90’s the ASX funded
    global exploration - that is now over.
     There is still money available for
    Australian mining exploration and
    development (Mincor raised $29m in 3
    months to buy the Miitel Nickel Mine)

     But significant capital is not available,


    from the Australian Market, for offshore
    mining development.
    “I wasn’t going to touch Mincor - I
    thought you were just going to put all
    your money into Pakistan”

    “I think you really need to make people


    realise you are not going to fund Pakistan
    out of your Miitel cashflows”

    Actual quotes: two Australian


    stockbrokers
    “You should keep Reko Diq in Mincor, add
    the copper development to your
    existing nickel production, size is so
    important these days, look to becoming
    a mid-cap international base metal
    company”
    Actual quote: London Stockbroker
    “Just get out there and drill the f…..
    thing!”
    Actual quote: Shareholder
    early reko diq financing
     Modest seed capital raising, Oct 2000 (A$1.6
    million, A$400,000 from Mincor, the rest from
    Australian, English and Pakistani investors, and
    Mincor directors)

     Spent A$700,000 turning vaguely defined copper


    zone at H4 into a Probable Reserve.

     TCC - 52 million issued shares, 24 million options,


    14 shareholders

     Next step - Offshore Listing to raise US$7 million


    FINANCING OFFSHORE PROJECTS

     WHY DO IT?
     WHY IS IT SO HARD?
     SOURCES OF FINANCE
     THE ETHICAL DIMENSION
     THE REWARDS
    Sources of capital
     World Bank (Mining Division of the
    International Finance Corporation)
     Asian Development Bank
     Japanese metal houses
     Commonwealth Development Corporation
     Major Mining Companies
     Private Equity - niche markets (Pakistani
    capital)

    Pre-feasibility = Equity
    FINANCING OFFSHORE PROJECTS

     WHY DO IT?
     WHY IS IT SO HARD?
     SOURCES OF FINANCE
     THE ETHICAL DIMENSION
     THE REWARDS
    The ethical dimension

    THE NATURAL
    ENVIRONMENT POVERTY
    ALLEVIATION
    FINANCING OFFSHORE PROJECTS

     WHY DO IT?
     WHY IS IT SO HARD?
     SOURCES OF FINANCE
     THE ETHICAL DIMENSION
     THE REWARDS
    THE REWARDS

     The Witwatersrand  The Tethyan Belt


     Broken Hill & Mount Isa  The Zambian Copper
     The Andean Copper Belt Belt

     The Sudbury Nickel District  The East and West


    African Goldfields
     The Yilgarn Craton
     The Bushveld Complex
    H4 Value Curve

    Indicated Resource
    List on AIM of LSE
    Completed Bankable
    Value Feasibility Study Risk
    Pre-Resource List on Main Board
    Seed Financing of LSE

    Discovery

    Exploration Stages - Discovery to Production


    Western porphyries Value Curve

    Western Porphyries Project

    H4 Project Value
    Total Reko Diq Value Curve
    Total Reko Diq Resource

    Western Porphyries Project

    H4 Project
    Mincor shareholders
    IF TCC SUCCESSFULLY LISTS ON AN OFFSHORE MARKET:

     Distribution of Mincor’s shares in TCC, to


    Mincor’s shareholders

     Mincor will not create a ‘pyramid’ holding


    structure

     Shareholders retain exposure through


    their TCC shares to on-going development
    of a major base metal play.

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