Freyja Resources Inc. (TSXV: FRA): Cyprium Mining Corporation April 2014
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Funding Discoveries Through Cash Flow Not Shareholder Dilution April 2014 A wholly-owned subsidiary of Freyja Resources TSX-V: FRA
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Cyprium Mining, as the wholly-owned subsidiary of Freyja Resources Inc., is a publicly-traded mineral exploration company which targets the acquisition and development of mining assets in Northern Mexico. Cyprium Mining’s business approach to mining calls for establishing production in the short-term and maximizing the potential of projects by funding exploration through the cash generated by production rather than equity financings, thus limiting shareholder dilution.
Transcript of Freyja Resources Inc. (TSXV: FRA): Cyprium Mining Corporation April 2014
Funding Discoveries Through Cash Flow
Not Shareholder Dilution
April 2014
A wholly-owned subsidiary of Freyja ResourcesTSX-V: FRA
Freyja Resources
Caution Regarding Forward Looking Statements
This presentation contains forward‐looking statements that are not based on historical facts, but
rather on current expectations and projections about future events and they are subject to risks and
uncertainties. All of the facts and figures in this presentation are NI 43-101 compliant, unless
indicated. These risks and uncertainties could cause actual results to differ materially from the
future results expressed or implied by the forward‐looking statements. Such risks may include,
without limitation: risks and uncertainties relating to foreign currency fluctuations; risks inherent in
mining including environmental hazards, unusual or unexpected geological formations, ground
control problems and flooding; risks associated with the estimation of mineral resources and
reserves and the geology, grade and continuity of mineral deposits; the possibility that that future
exploration, development or mining results will not be consistent with the Company’s expectations;
the potential for and effects of labor disputes or other unanticipated difficulties with or shortages of
labor or interruptions in production; actual ore mined varying from estimates of grade, tonnage,
dilution and metallurgical and other characteristics; the inherent uncertainty of production and cost
estimates and the potential for unexpected costs and expenses; and commodity price fluctuations.
Investors should note that Freyja does not have a defined NI 43-101 resource and that a
feasibility study has not been completed. There is no certainty that the proposed operation
will be economically viable.
Cautionary Statements
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Freyja ResourcesMANAGEMENT
André St-Michel, President, Chief Executive Officer and Co-Founder
o A Canadian mining engineer/geologist, residing in Chihuahua, Mexico, André has
more than 30 years of experience in the mining business with a focus on mine
development, mill operation, administration and finance. Last ten years working
Mexico.
o From 2003 to 2008, was Senior executive of Diabras Exploration, then C.O.O. and
Executive Vice-President, responsible for exploration programs and the start up of the
Bolivar copper and zinc mine. From initial start up of the mine in 2005, production
reached 450 ton/day in 2006 with annual revenues of $27 M and cash flows of $10 M.
Was responsible for the 400 worker operation in Mexico including administration,
exploration, construction, production and milling.
o Prior to 2003, President of ECU Silver Mining inc. working in US, Brazil and finally
Mexico.
o André graduated in 1980 from the Laval University Engineering School and he also
holds a master degree in Project management 1990 from University du Quebec. 3
Freyja ResourcesMANAGEMENT
Alain Lambert, Chairman of the Board and Co-Founder
o Entrepreneur with over twenty seven years experience in various industries
including technology, manufacturing and natural resources.
o Acted as advisor for several public and private companies regarding their
financing needs, mergers and acquisitions plans as well as going-public
transactions.
o Served as a director and member of the audit committee and governance
committee of several private and public companies.
o A results-driven businessman and accomplished endurance athlete, Mr. Lambert
is also the Chairman of the Board of Team Novo Nordisk, the world’s first all-
diabetic professional cycling. Team Novo Nordisk is a partnership between
Copenhagen, Denmark based pharmaceutical company Novo Nordisk and
Atlanta based sports organization Team Type 1 to represent the Changing
Diabetes platform and to show the world what can be achieved when you take
ownership of diabetes. 4
Freyja ResourcesMINING IN NORTHERN MEXICO
o Freyja Resources’ business approach to mining calls for establishing
production in the short-term and maximizing the potential of projects by
funding extensive exploration through cash generated by production not
equity financings, thus limiting shareholder dilution
o Freyja Resources focuses on projects that have the following
characteristics:
o Located in Northern Mexico
o High exploration potential
o Short-term open pit production potential
o Precious or base metal
o Located alongside well-maintained roads 5
Freyja ResourcesOUR BUSINESS MODEL
o Freyja Resources will use the cash flow generated by production to:
o Ensure sufficient operating working capital at all times
o Make investments to increase production
o Fund continuous exploration campaigns
o Generate and acquire new projects
o Freyja Resources intends to participate in the business of processing
copper cement concentrate in Northern Mexico
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Freyja ResourcesCORPORATE AND SHARE SRTUCTURE
o Freyja Resources’ Mexican operations are carried out under the
corporate name Cyprium Mining. Cyprium is the Latin word for
copper. Freyja Resources will change it name to Cyprium Mining
Corp at its AGM scheduled for May 21, 2014
o Number of shares outstanding: 32.9 million
o Management: 5.2 million or 15.8%
o Institutions: 7.0 million or 21.3%
o Public: 20.7 million or 62.9%
o Fully diluted: 40 million 7
Cyprium MiningFLAGSHIP PROJECT AND MAIN ASSETS
o Our main project is to bring back into production the Las Cristinas copper
and silver mine located in Chihuahua State in northeastern Mexico
o The company also owns certain processing assets at a plant located near
the town of Coyame, Mexico
o Both the mine and the plant are located at about 200 km northeast from
Chihuahua City where the company’s President and CEO lives
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Mineralized structure
Freyja ResourcesOVERVIEW AND HIGHLIGHTS
o Exploration target: a 7 km by 300 meter wide mineralized corridor
with copper and silver showings. Focusing initially on a 1.4 km key
area at the south end of the property
o Strategy: hybrid exploration – generate cash from production to fund
exploration. Focus on low CAPEX to production
o Short term production target: a 550 meter section of the 1.4 km key
initial area to the south end of the property. Working to establish 1-2
million tons of oxide copper at or above surface
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Freyja ResourcesOVERVIEW AND HIGHLIGHTS
o The plan:
o Initiate in 2014 a 600 ton per day open pit, heap leach operation
from the oxide and mix copper to generate positive cash flow and
attack the 7km target with extensive drilling
o Make plans for sulphides/silver production in the northern end of
the initial production area
o Sampling highlights:
o Surface: 30 m wide sampling average of 1.697% Cu, including a
6 meter high grade section of 2.454% Cu
o Underground: continuous trench sampling of 2.938% Cu & 105g/t
Ag over 9m
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Cyprium MiningSHORT TERM MILESTONES
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o Assay results of over 380 samples
o Announced in February and March – more to come
o Obtain permit to drill the mineralized zone and initiate 3,000 meter
drilling program
o Permit obtained in March
o Start drilling in April
o Drilling results
o April to June 2014
o Obtain production permit and initiate oxide copper, heap leach
production
o Late summer 2014
o Sell of copper concentrate
o Prior to the end of 2014
Cyprium MiningPROJECT LOCATION
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Why Northern Mexico?
o Favorable geology for our
business model
o At surface or near surface
projects
o Several old mines
available
o Easy access
o Management team, including
President & CEO
o Dozens of years of
experience in Northern
Mexico
o Full time residents
o Modern mining jurisdiction
Cyprium MiningCOYAME PROCESSING PLANT
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Concentrators, tanks and filters to be moved to mine site
Buildings, land and other
infrastructure ideal for
future plant growth
Cyprium Mining
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Mineralized
Corridor
300 m wide and 7 Km long
LAS CRISTINAS PROJECT MAP
North Mount
North Mount
Southern
Extension
Northern
Extension
Cyprium MiningLAS CRISTINAS KEY AREAS
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Mineralized
Corridor
300 m wide and 7 Km long
North Mount South Mount
Northern Extension Southern Extension
1.4 KM zone to the south of the property
550 meters initial production area
Cyprium Mining
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o Mining at surface
o Visual evidence of mineralization
o Low CAPEX
o Old workings
o Quick start-up of production
o Easy underground access
o Low mining costs
KEY CHARACTERISTICS OF LAS CRISTINAS
South Mount facing south
South Mount facing north
Cyprium MiningHYBRID APPROACH AT LAS CRISTINAS
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Initial focus
o Focus on open pit mine start up and initial
cash flow (heap leaching process)
o Focus on initial one to two million ton of
oxide and mix of oxide/sulfide material
containing 1% to 4% Cu and 10 g/t to 60
g/t silver
o Proposed operation of an initial 600 tpd
(240,000 tpy) to generate initial cash flow
o Expecting five years of production from
initial production area
o Estimated cost: $2 millionInitial production area
Initial production area
1 million ton from
500 meters extension
Cyprium MiningLAS CRISTINAS – RECENT SAMPLING RESULTS
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o The recent sampling program took place in the 1.4 km key area to the
south of the property and consisted of:
o Over 333 channel samples
o Ranging from 3 kg to 5 kg per sample
o With a length varying from 0.8 to 1.2 meter per channel sample
o Additionally, the government Service Geologico de Mexico (SGM) took 54
samples underground the North and South Mounts
o From a total of 387 samples, 216 are localized in the main mineralized
zones presented in the company’s February 13, 2014 press release.
o Others samples are located outside these zones in order to define a
larger mineralized corridor with a potential for the discovery of new
mineralized zones
Cyprium Mining
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Mineralized
Corridor
300 m wide and 7 Km long
SOUTH MOUNT SAMPLING RESULTS
Cyprium MiningSOUTH MOUNT SAMPLING RESULTS
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Mineralized
Corridor
300 m wide and 7 Km long
64 SAMPLES, AVERAGE
1.697 % Cu and 10 g/t Ag
Cyprium MiningSOUTH MOUNT SAMPLING RESULTS
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Mineralized
Corridor
300 m wide and 7 Km long
41 SAMPLES, AVERAGE
2.454 % Cu and 11 g/t Ag
30 meters
Cyprium MiningSOUTH MOUNT SAMPLING RESULTS
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Mineralized
Corridor
300 m wide and 7 Km long
13 SAMPLES, AVERAGE
5.089 % Cu and 20 g/t Ag
6 meters
Cyprium Mining
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SOUTH MOUNT SAMPLING RESULTS
9 meters contiguous
channel
at 2.938 % Cu and
105 g/t Ag
Cyprium MiningNORTH MOUNT SAMPLING RESULTS
24North Mount Underground
9 meters contiguous channel at 2.938 % Cu and 105 g/t Ag
Cyprium MiningLAS CRISTINAS – RECENT SAMPLING RESULTS
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Zone Location # of samples Avg Ag (g/t) Avg Cu (%)
South Mount Surface 64 10 1.697
South Mount Surface (1) 41 11 2.454
South Mount Underground 77 6 0.706
North Mount Surface 9 4.5 1.001
North Mount Underground 37 29 1.160
Southern Extension Surface 16 12 1.034
Northern Extension Surface 13 8 0.474
(1) Only includes the results of the 41 samples (out of the total of 64 ) that were taken within the 30 meter of estimated true width of the mineralized section.
Cyprium MiningLAS CRISTINAS – RECENT SAMPLING RESULTS
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Zone Location # of samplesHighest Cu
(%)Highest Ag (g/t)
South Mount Surface 64 17.950 157
South Mount Underground 77 5.464 133
North Mount Surface 9 4.000 23
North Mount Underground 37 12.150 429
Southern Extension Surface 16 5.400 47
Northern Extension Surface 13 1.065 32.7
Freyja ResourcesCONTACT
André St-Michel, President and CEO
2807 Boul. Ortiz mena, suite 22
Chihuahua, Chih., Mexico
Tel: + 52 1 614 239 9481
Alain Lambert, Chairman
1200 Mc Gill College Avenue, suite 1240
Montreal, Quebec, H3B 4J8
Tel: 514 219 7988
Ronald KeenanTel: 514 915 3836
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