Metals Exploration Plc - Update Presentation March 2010

8/14/2019 Metals Exploration Plc - Update Presentation March 2010

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Update Presentation

March 2010



Corporate Information

Capital Structure*

Ticker Symbol: LSE : MTL Shares in Issue: 269.7M (295.6M F-D) Share Price: 13p Market Cap: £35.06M / $52.79M

Funding £3.7M raised Jan 2009£12M raised in May 2009

◊ Data as at 31.01.2010 * Data correct 05.03.2010

Liquidity

Approx 500,000 shares traded per day Around 40% of share capital freely traded

S h a r e

P r i c e

( P e

n c e )

V ol um e

Significant Shareholders◊

Solomon Capital Ltd 44.10% Williams de Broe 8.65% Baker Steel Capital Managers 6.73%

Allianz Cornhill Insurance 4.45%



Runruno Project Location

Approx. extent of volcanic complex

Area containing

current resource -~20% of total



Offsite Infrastructure

Road – upgrade allowedalong whole 30km length.Currently passable all year.

Power supply – switch yard inBayombong will be the origin for the new 69Kv line to site, runningalong the new road

Airfield – Bagabag airfield10 miles north of Solano

EP boundary



Project Infrastructure

Access road

• All weather national road access to site – 28 km

• Upgrade allowed

Power

• Local access to national grid• Switch yard with capacity located at Bayombong

• 35km dedicated line to be constructed to site

• Magat hydro scheme located 35 miles north

Tailing Storage

• Tailing solution identified adjacent to plant• Permanent valley fill model

Accommodation

• Senior and professional staff housed in Solano

• Rostered operators camp based

• Local employees – bussed to site daily

Communications

• Direct access to the Philippine communicationnetwork at Solano

Water supply

• Process water from local river systems

• Potable water treated at site• Waste water – treated at site before release



Resource Statement

ResourceCategory

Tonnesin

millions

Gold (Au) Molybdenum (Mo)*

g/tOunces in

thousands

ppmPounds in

millionsMeasured 9.1 1.92 560 650 13.0

Indicated 5.0 1.81 290 425 4.7

Inferred 10.4 1.94 650 335 7.7

Total 24.5 1.91 1,500 470 25.4

November 2009 Resource

• Total resource currently 1.5Moz gold and 25.4Mlb molybdenum

• Resource reinterpreted by Mining Associates Pty in Q3 2009• Based on 650 holes for 92,898m, 430 more holes than Oct 2008 (32,153m)

• 56.66% of resource in M&I (37.75% previously)

• 107% increase in Measured resource

• Only 43% of resource remains within Inferred category



Mining

Mining Estimates

• Head grade approx 1.91g/t Au, 470ppm Mo

• 10% dilution applied, 10% mining loss allowed

• Mining lower cut off grade 0.3g/t Au

• Production - 100,000oz Au and 1Mlb Mo

• Life of mine strip ratio 6 : 1 or less

Mining Methods

• Open cut, truck and shovel operation

• Ore transported over Sulong river to crusher

• Waste rock stored in pit where possible

• Tailings dam site within EP boundary



Pilot Plant

Integrated piloting of process underway

10 tonnes of drill sample being piloted through:

• Gravity and flotation

• Biox® and neutralisation

• CIL to recover gold

• Molybdenum recovery

• Cyanide destruction, tails settling, compaction andchemistry

Goldfields managing pilot plant

Undertaken in SGS’ laboratory in Johannesburg Reports March 2010

Thiobacillus ferrooxidans bacteria

Flotation pilot plant

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FTAA and Permitting

Outline of an FTAA:

• FTAA is a partnership between the mining company andPhilippine Government

• Designed to attract foreign investment to the country whiledeveloping the resource in a responsible manner

• Valid for 25 years once granted, and can be renewed for afurther 25 years

• Allows 100% foreign investment, which the alternativeMPSA does not, simplifying operations in the future.

• Legality of the FTAA is well established and cannot bechallenged – Supreme Court Final Judgment

• Investment of at least $50M on local infrastructure anddevelopment is required

• Any arbitration will be conducted under International Lawat the Singapore International Arbitration Centre

• Also grants other rights over the area, such as access,water use, land occupation as and use of natural materials

Progress to date:

• FTAA application process began in January 2008

• Endorsed by Secretary Atienza of the DENR to the Office of the President in March 2009

• Jonathan Beardsworth met HE President Arroyo to discuss progress in September 2009

• FTAA granted in full in October 2009• Metals Ex awarded one of only 4 FTAAs granted to date

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Community Support and Project Acceptability

The project has been endorsed by:

• Municipal Mayor Aurelio S. Salunat

• Municipal Council, Quezon, Nueva Vizcaya

• Runruno Barangay Captain & Council

• All 11 downstream Barangay Officials, Quezon, Nueva Vizcaya

• Direct endorsement from the majority of the residents of Runruno

• All Irrigators Association of Quezon, Nueva Vizcaya

Awards and Commendations:

• Mining Journal ‘Outstanding Achievement Award’ November 2007

• Special Award to Dr Ernesto Mendoza

• ‘Kablikat Skills Development Award’ – August 2008

• Presidential Mineral Industry Environment Award

• November 2008

• Mining Forest Award

• November 2008

• Community Development Initiative Award at Asia Mining Congress Sustainability Awards• March 2009

MGB Regional Director Albert Jacildo reported, during the visit of DENR Secretary Lito Atienza in October ‘07 to NuevaViscaya, that “there are no issues raised against the project”

MGB Regional Director Albert Jacildo also commended MTL for it’s outstanding community development and informationprogramme

An emotional Dr. Ernesto Mendoza and his wife

Nanette receive the “Special Award” from Michael Portillo at the Mines & Money Awards”, November 2007.

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Community Relations

Education & Training• Provision of 21 teachers including school supplies and equipment• Introduction of Basic Literacy program• Run classes for 40 learners in partnership with Dept of Education

Health & Nutrition

• Feeding program for undernourished children• Provision of medical services and first aid training

Skills Development• Welding course for 30 youths, now employed by Korean ship builder • IT scholarship program• Cosmetology and hair science• Rattan furniture making• Baking and culinary art• Basic electrician course• Meat & food processing• Lantern making using indigenous materials

Infrastructure Progression• Constructed day care building & community training centre

• Constructed & repaired 11 bridges in partnership with the Barangay• Provided potable water facilities and irrigation hoses to farmers

Employment Generation• Provide direct employment for nearly 300 individuals• At least 106 students benefited from the summer job program

MGB assessment: “The MTL Runruno Gold Project at Barangay Runruno is a 95% socially acceptable project”

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Geological Model

In short, the Runruno gold deposit is remarkable in terms of its shared characteristics with other alkaline epithermal deposits, including Cripple Creek, Colorado, and its additional potential as MTL’s exploration activities continue and expand”

“Significant potential for additional discoveries of mineralisation seems obvious”

(Dr Eric Jensen PhD – February 2008)

Copper-goldporphyry target

Possible continuation of mineralisation aroundedge of dome?

High level copper leakage zoneslocated at top of mountain

Current resource areaconsisting of mineralisedlenses dipping outward

Fault formed around edge of

dome containing current deposit

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Exploration Potential - Soil Geochemistry

Gold-in-soil anomaliesscattered over thesampled area – similar to Cripple Creek’shistoric mines

Soil sampling ongoing

Clear potential toexpand on currentresource base

Only around 20% of thevolcanic complex hasbeen explored in detail

1.5Moz gold and24.5Mlb moly

Further prospectiveareas yet to beexplored

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Step-out drilling

Three diamond holes were completed in late 2009, 700m SE of the mostsoutherly known mineralisation

The holes intersected a broad flat westerly dipping zone of alteration hostinganomalous gold and high grade molybdenum mineralisation in discrete lenses

Style of mineralisation directly analogous to the Runruno deposit indicatingpotential of mineralised system

Mineralisation closely related to a north striking fault structure running parallel300m to 400m east of the Mallilibeg fault which is directly related to the Runrunodeposit

This fault structure has been traced to continue over 2,000m north of the threeholes reported

Further drilling to test this zone to be completed in 2010

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Summary

World class gold project enhanced by:

• Proven management

• FTAA permit in place• Independently verified resource

• Strong potential to expand resource

• Valuable moly by-product

• Outstanding community relations and local support

• Excellent infrastructure

Currently trading at ~$35/oz

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Appendices

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Board

Jonathan BeardsworthChief Executive Officer

Former investment banker focused solely on the mining and metals sector with Standard Bank, and previouslywith Warrior International. Was head of the London office of Standard Bank’s Mining and Metals team withadditional responsibility for Moscow and Shanghai.

Ian Holzberger

Executive Chairman &Project Director

Over 35 years experience in the base and precious metals mining industry. Between 1997 and 2007 he was

managing Director of Highlands Pacific, a company listed on the Australian Stock Exchange with operations inPapua New Guinea. He has experience of a wide range of management, operational, mine development andfeasibility study roles. He successfully completed the feasibility studies on the Ramu, Frieda River and Kainantuprojects, and subsequently oversaw the development, financing, construction and commissioning of the Kainantugold mine. He is a Member of the Australasian Institute of Mining and Metallurgy and the Australian Institute of Geoscientists.

Jonathan Pearson

Non Executive Director

Jonathan has forty years experience in banking including the position of CEO with Standard Chartered Merchant

Bank Asia. Most recently at Standard Bank Plc he was responsible for the Bank`s activities in Europe, the MiddleEast and Central Asia. Jonathan had significant exposure to the Standard Bank`s mining finance, precious metalstrading and hedging activities. He is also chairman of the remuneration committee and a member of the auditcommittee.

Tim Dean

Non Executive Director

Tim joined the Board as a Non-Executive Director following the January placing to Solomon Capital. Mr. Dean is aDirector of Solomon Capital Limited, an Associate of the Institute of Chartered Accountants in England and Walesand has a Masters Degree in Engineering Science from Oxford University.

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Metals Exploration Plc - Update Presentation March 2010

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