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Agm presentation july 11 2011
- 1. ALDRIDGE MINERALS AGM-V www.aldridgeminerals.ca
- 2. DISCLAIMER Certain statements containedin this presentation regarding the company and its activities constitute forward-looking statements . All statements that are not historical facts, including without limitation statements regarding future estimates, plans, objectives, assumptions or expectations of future performance are forward-looking statements . We caution you that such forward-looking statements involve known and unknown risks and uncertainties that could cause actual results and future events to differ materially from those anticipated in such statements. Such risks and uncertainties include fluctuations in metal prices, unpredictable results of exploration, uncertainties inherent in the estimation of mineral resources and reserves, fluctuations in the costs of goods and services, problems associated with exploration and mining operations, changes in legal, social or political conditions in the jurisdictions where the company operates, lack of appropriate funding and other risk factors. There can be no assurance that such forward-looking statements will prove to be accurate. Potential investors should conduct their own investigation as to the suitability of investing in securities of the company. Martin S. Oczlon, PhD Geo, is the qualified person for the company as required by NI 43-101 (Canadian Securities Administrators). The company undertakes no obligation to update any forward-looking statements . We seek Safe Harbour. 2
- 3. Directors & Management JacobWilloughby — President & director. Joined board Feb 2010 & became president April 28th 2010 Jean-Pierre Colin — Chairman. Director since Oct 2010, also a director of Premier Gold Dr. Martin Oczlon — CEO & director. Founder & largest individual shareholder Jim O’Neill — CFO. Joined Aldridge June 2011 Daniella Dimitrov — Director & legal advisor. Joined board Oct 2010 Barry Hildred — Director. Joined board April 2010 John F. Cook — Director. Mining Engineer and former Chairman of Premier Gold and Wolfden Resources Ed Guimaraes — Director. Joined board May 2011. Served as Executive VP & CFO at Aur Resources prior to it being acquired by Teck Resources 3
- 4. Market Highlights (asat July 11, 2011) Symbol Canada TSX-V: AGM Frankfurt: AIW Shares outstanding 37.1 million Directors & Insiders about 15 % Shares fully diluted 51.7 million (4.119 m options @ avg. strike of $1.43, 10.535 m warrants @ avg. strike of $1.72) 52 week high / low C$ 2.25 / $0.52 Recent price C$ 0.97 Market cap C$34.1 million Cash C$ 10.0 million Top institutional RBIM, Colonial First State, US Global, Libra, Excalibur, Sprott, shareholders JVAR and Creststreet 4
- 5. Yenipazar - LocationMap AGM – Yenipazar Au-Ag-Cu-Pb-Zn Project 5
- 6. Turkey: A GreatPlace for Mining Politically stable, pro-mining, non-bureaucratic Excellent infrastructure roads, electricity, water, railways New, modern and western oriented mining code (2004) Low tax rate, tax incentives in our area, VAT re-payments • 0.5-1 % effective royalty, 20 % corporate tax One of the world s last under explored mineral-rich regions Recent large discoveries include: • EGO-T: Kisladag (254 Mt @ 0.95 g/t Au – 7.8 M oz Au = $10.7 B ) • ANO-T: Cöpler (90 Mt @ 1.87 g/t Au – 5.4 M oz Au = $7.4 B) • ENK-ASX: Caldag (33 Mt @ 1.3 % Ni – 946 M lbs Ni = $9.8 B excluding Cobalt value) • AGM-V: Yenipazar (+25 Mt @ 1.1 g/t Au, 33.8 g/t Ag +Zn+Pb+Cu = $4.3 B) 6
- 7. Yenipazar Open PitResources Million Au Ag Cu Pb Zn Tonnes g/t g/t % % % Ind. 24.28 1.09 33.8 0.31 1.16 1.52 Inf. 0.22 0.49 22.7 0.30 0.71 1.16 Contained metal: 854,400 oz of Au, 26.6m oz of Ag, 819m lbs of Zn, 624m lbs of Pb and 167m lbs of Cu. In-ground metal value at current prices: Approximately US$4.3 billion. NI 43-101-compliant resource estimate based on 370 drill holes in an optimized open pit shell (Feb 2011) 7
- 8. Accomplishments in 2010 RaisedC$5m in a private placement attracting the first institutional investors in Aldridge (Jan - $1.00 unit with full warrant for two years at $1.50) Restructured the board and management – 5 Directors out, 5 Directors in – all new directors based in Toronto and have significant knowledge and experience in Canadian capital markets Revised our earn-in agreement with Anatolia on Yenipazar Gained analyst coverage from Mackie Research and Clarus Securities, both with target prices nearly 2x our current share price Completed infill drilling and collected metallurgical samples Completed 43-101 complitant PEA in December (commenced in mid July) Relocated our corporate offices to Toronto from Vancouver Hired IR groups Ascend Communication and Profinnotiv for NA and Europe respectively 8
- 9. Yenipazar Key Parametres Largeland package — 100 km2 property that has seen very limited exploration, level and low-relief, open terrain used predominantly for farming Local support — Near-by village with pro-mining work force and strong community support. Local unskilled labour rate is US$20/day – farmers earn less than that. AGM has been working in the area since 2004. Agreement with Anatolia — to earn 100 % interest. Anatolia Minerals retains 6 % net proceeds interest (revenue minus operational cost) until a total revenue of US$165m, and 10% beyond that amount Commitment — Aldridge must deliver a feasibility to Anatolia. The agreement remains valid without time limit, as long as Aldridge works diligently towards completing feasibility study. 9
- 10. Project Details Open pitproject — volcanogenic massive sulphide (VMS) Zn-Pb-Cu-Au- Ag deposit. Robust economics as demonstrated by our PEA. Solid Resource Base — +24 Mt within an optimized open pit shell. This puts Yenipazar in the 90th percentile of all known VMS deposits as far as size Great Infrastructure — paved road next to the deposit, as well as access to water. Power and rail within approximately 20 km Unique characteristic — Large ore mineral grains due to metamorphism – potentially more cost-efficient separation from host rock than usual VMS-deposits Deposit dimensions — roughly flat lying body should allow for flexible mine sequencing to optimize early payback - 1700 m long, up to 300 m wide, 30-190 m deep, on average about 25-30 m thick. Still open, especially to the north of the deposit 10
- 11. Typical VMS MiningCamps (Source: Geological Survey of Canada) 11
- 12. Scoping Study Highlights BaseCase NPV US$209m & IRR of 23.2 at 7% discount rate • At 10% discount rate, NPV US$151m or $4.07per basic share, $2.93 a share fully diluted. (Exercising all options and warrants brings in C $23.5m) • Base cases uses 3-year trailing average metal prices and 4.5:1 strip including pre-strip and capex of US$198m for a 12 year mine life assuming 5,700 tpd mill (2m tpa). • Average payable production of 23,700 oz Au, 1.1m oz Ag, 10m lbs Cu, 37m lbs Pb, 37m lbs Zn from diluted average grades of 1.02 g/t Au, 31.6 g/t Ag, 0.29% Cu, 1.1% Pb, 1.4% Zn • Zn conc grades 55%, Pb conc grades 55% & 1025 g/t Ag, Cu conc grades 23% with 20 g/t gold & 337 g/t Ag • Project payback in 3.9 years. LOM average NSR US$57.27/t, LOM average total operating cost $29.65/t. • At current metal prices NPV over US$554m and IRR of over 51.51% 12
- 13. Revenue by payablemetal production 13
- 14. Scoping Study Lowlights Basecase used results of ONE locked cycle flotation test • Recoveries: Zn 59%, Pb 78%, Cu 77% - well below average for Zn – need to be improved – Proper floatation study to be completed soon (60 – 90 days) • Recoveries: Au 37%, Ag 57% - both should be improved. Have three separate solutions to improve these. • A doubling of gold recoveries would double the base case NPV (i.e. US $302m at 10% or $8.14 / basic share) • A 10% increase in recoveries of each of the 5 metals would result in a 52% increase in our base case NPV. • Assumed smelter payability of Au and Ag in the Cu conc were only 90% and 80%; should get 95% for both • Assumed payability of Ag in the Pb conc was only 85%; should get 90% - 95% 14
- 15. Targeted Metallurgical Recoveries& Production 15
- 16. Price / NetAsset Value 0.0X 0.2X 0.4X 0.6X 0.8X 1.0X 1.2X 1.4X Royal Nickel Duluth Aldridge Curis Hana Noront Producer Candente PolyMet Chieftain Developer Developer Average Relative Valuation Baja Amerigo Average Iberian Augusta Mercator Capstone Quadra FNX Taseko General Moly Far West HudBay PRICE / NET ASSET VALUE Nevada Copper Inmet Breakwater Thompson Creek Mirabela AGM consensus NAV $5.05, P/NAV = 0.24 Anvil Producer Average Comparable Base Metals Companies Lundin Katanga Teck Copper Mountain Consolidated Thompson First Quantum Source: Net asset values based on research analyst consensus estimates; closing prices per Bloomberg as at May 12, 2011, WWCM presentation 2011 Equinox
- 17. Aldridge – SmallestMarket Cap to Contained Metal Value * Cu $4.32, Pb $1.20, Zn $1.04, Ag $35.75, Au $1549, C$/US$ 0.968 as of July 11th 2011 17
- 18. Goals for 2011 Improvethe recoveries of our metals Discover new VMS bodies on our property surrounding Yenipazar Hire on additional staff with experience overseeing polymetallic feasibility studies Continue to add analyst research coverage Significantly raise our profile among retail investors Graduate to a TSX listing for the company (Initiated already) Evaluate potential M & A opportunities and properties in Turkey 18
- 19. Yenipazar Property &Drill Hole Sites 19
- 20. High-grade Intersections Hole-No Interval (m) Thick-ness Au g/t Ag g/t Cu % Pb % Zn % YP-149 92 126 34 m 5.78 93.4 1.11 2.72 3.90 YP-151 58 70 12 m 3.62 52.0 1.03 0.52 2.76 YP-151 74 100 26 m 6.35 52.5 1.62 1.18 2.79 YP-156 42 90 48 m 3.93 16.7 1.09 0.30 0.30 YP-156* 110 150 22 m* 0.46 26.9 0.15 0.81 1.39 YP-264 52 100 48 m 4.72 66.2 0.96 4.22 7.65 YP-282 82 114 32 m 2.93 82.1 0.97 3.10 4.84 *Cumulative thickness of 4 levels in 110-150 m interval 20
- 21. Recent Yenipazar DrillingNews Pairs of RC and duplicated diamond holes, 5 m apart. * YPD-1 includes 112-114 m (61 g/t Au), 122-124 m (20.15 g/t Au), 124-126 m (12.5 g /t Au). Capped at 10 g/t Au, the average grade for the diamond drilled interval of 62-130 meters is 2.05 g/t Au. 21
- 22. Yenipazar Mineralization Large mineral grains at Yenipazar allow for gravitational pre-enrichment 22
- 23. Favourable Terrain Shallow topography is ideal for open pit construction 23
- 24. Yenipazar Site Visit– May 2011 24
- 25. Future Milestones forAldridge Commence feasibility study at Yenipazar – Announced June 23, requires 12 to 18 months. Complete the floatation study to improve recoveries and determine which smelters or off-takers to target with our concentrates – Report in July Complete drilling and conduct extensive geophysics at Yenipazar to upgrade resources and to discover new deposits – Results expected mid August Drill our PNG exploration discovery – Results expected mid September Graduate to the TSX and complete an AIF – Targeting October 25
- 26. Aldridge PNG –The Kili Teke Discovery Recognized significant mineralization potential in one of the most prospective areas of PNG between Porgera and Ok Tedi. Acquired a 338 sq. km license awarded in Feb 2009. Received 3 requests from majors to JV the property before any results published. Identified two highly interesting mag anomalies similar to Porgera. AGM completed a 4 week mapping and sampling campaign that outlined a Cu-Au system within a 10 km alteration footprint, then followed up with further sampling. Discovered a very large Cu-Au porphyry & skarn system named Kili Teke. The sampling results here were far above our expectations with two rock samples grading between 23% - 35% Cu with an average of 60 g/t Au and 238 g/t Ag; 13 samples grading from 1.0% - 12.9% Cu with an average of 0.44 g/t Au and 3.8 g/t Ag; 28 samples grading from 0.3% - 1.0% Cu with an average of 0.39 g/t Au and 3.8 g/t Ag. Also had one sample grade 9.1% zinc. 26
- 27. Aldridge PNG LicenseArea ALDRIDGE MINERALS INC Exploration License_2009-2-18 Base image source: PNG Mineral Resources Authority, Info-DVD distributed on PDAC 2009-3, Toronto 27
- 28. Au in SoilSamples at Kili Teke 28
- 29. Cu in SoilSamples at Kili Teke 29
- 30. Cu in SoilSamples at Kili Teke with Ok Tedi Pit Overlain for Scale 30
- 31. Timeline– Advancing Ahead Fiscal 2011 Fiscal 2012 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Feasibility Study Flotation Study Yenipazar Exploration (Infill and Bulk Sample) Pilot Plant Metallurgical Studies PNG Geophysics PNG Drilling 31
- 32. ALDRIDGE MINERALS AGM-V www.aldridgeminerals.ca
- 33. Directors & Management JacobWilloughby, President & Director Jacob is a geologist with a Masters in Business Administration from the University of Windsor and became president of Aldridge in April 2010. He joined the board in February 2010. He was previously a partner and mining analyst at Paradigm Capital in Toronto, a highly ranked investment firm with a specialization in mining finance, where he worked for five years until choosing to leave in March 2009. He is also a director of Foxpoint Capital Corp. Dr. Martin Oczlon, CEO & Director Dr Oczlon spent seven years during the 1990 s with BHP as senior exploration geologist in SW Asia and SE Europe. He drilled the discovery holes for the Reqo Diq Cu-Au porphyries in Pakistan, now with 21 Mt Cu + 37 Moz Au. From 1999-2002, he developed a private exploration company with a large project in Romania and sold it at a 200% profit. Aldridge Director since 2003, responsible for project acquisition, exploration and development 33
- 34. Directors & Management Jean-PierreColin, Chairman Mr. Colin began his career as an investment banker in 1980. Formally the Director & Head of Corporate Finance at Octagon Capital Corp, he is currently providing corporate strategy consulting services to CEO's of public companies. Previous to his position at Octagon Capital, Mr. Colin was an investment banker with Desjardins Securities Inc., Executive VP of Deacon Capital, and Senior VP of Richardson Greenshields. He is also a director of Premier Gold. He is a Member of the Bar of the Province of Quebec and holds a Master of Business Administration from the University of Western Ontario Daniella Dimitrov, Director Ms. Dimitrov has over 16 years of broad commercial and operational experience in senior executive roles with major companies. She has held principal roles in mergers, acquisitions, financings, corporate finance and joint ventures. Ms. Dimitrov s former positions include Senior VP, Strategic Initiatives of Raymond James Ltd., COO of Dundee Securities and Dundee Private Investors, General Counsel for the Dundee group of companies and counsel at a national law firm. She is also a director and vice chair of Baffinland Iron Mines. 34
- 35. Directors & Management JohnF. Cook, Director Mr. Cook is a mining engineer with 45+ years of experience including development of open-pit & underground mines, exploration, operations, management, & feasibility studies. He was most recently President & CEO of San Anton Resource Corp. & is currently a director of Strategic Resources Inc., MBMI Resources Inc., Southern Andes Energy Inc. & Cerro Resources Inc.. He was Chairman of Wolfden Resources Inc. until its purchase by Zinifex Ltd in June 2007, and was Chairman of Premier Gold Mines Limited until 2010. Mr. Cook is a graduate of Sheffield University in mining engineering. Ed Guimaraes, Director Ed is a CA who held progressive management positions with Aur Resources between 1995 and 2007, ultimately serving as Executive Vice-President, Finance and Chief Financial Officer of Aur until December 2007. Aur was acquired by Teck Resources Limited in a takeover valued at $4.1 billion in August 2007. Mr. Guimaraes hasworked as a consultant in the resources industry since that time and is currently a director of Nuinsco Resources Limited. Mr. Guimaraes holds a Bachelor of Arts in Administrative and Commercial Studies from the University of Western Ontario. 35
- 36. Directors & Management BarryHildred, Director Barry founded The Equicom Group in 1995 and remained its President until October of 2009. In 2007, Equicom was acquired by the TSX Group. Mr. Hildred also serves on the Board of the Children's Aid Foundation and is a past member of the Ontario Securities Commissions' Continuous Disclosure Advisory Committee. Jim O’Neill, CFO Mr. O'Neill, a Chartered Accountant with over 25 years of industry experience, brings a depth of knowledge from various international mining, project management and distribution companies. 36