20120802 diggers v0
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Kasbah Resources Limited is an emerging tin producer with two tin assets in Morocco. It has $28.5 million in cash and is funded to advance its flagship Achmmach tin project through a definitive feasibility study by the end of 2013. Kasbah also has exploration upside at its 100%-owned Bou El Jaj project located 15km from Achmmach. Toyota Tsusho Corporation can earn a 20% interest in Achmmach by making staged payments totaling $16 million and signing a joint venture agreement.
20120802 diggers v0
- 1. Kasbah Resources Limited An Emerging Tin Producer Diggers & Dealers Kalgoorlie – 6 August 2012
- 2. DISCLAIMER Certain oral and written statements contained or incorporated by reference in this presentation, including information as to the future financial or operating performance of the Company and its projects, constitute forward-looking statements. All statements, other than statements of historical fact, are forward-looking statements. The words “believe”, “expect”, “anticipate”, “contemplate”, “target”, “plan”, “intend”, “continue”, “budget”, “estimate”, “may”, “will”, “schedule” and similar expressions identify forward-looking statements. Forward-looking statements include, among other things, statements regarding targets, estimates and assumptions in respect of tin or other metal production and prices, operating costs and results, capital expenditures, mineral reserves and mineral resources and anticipated grades and recovery rates. Forward-looking statements are necessarily based upon a number of estimates and assumptions related to future business, economic, market, political, social and other conditions that, while considered reasonable by the Company, are inherently subject to significant uncertainties and contingencies. Many known and unknown factors could cause actual events or results to differ materially from estimated or anticipated events or results reflected in such forward-looking statements. Such factors include, but are not limited to: competition; mineral prices; ability to meet additional funding requirements; exploration, development and operating risks; uninsurable risks; uncertainties inherent in ore reserve and resource estimates; dependence on third party smelting facilities; factors associated with foreign operations and related regulatory risks; environmental regulation and liability; currency risks; effects of inflation on results of operations; factors relating to title to properties; native title and aboriginal heritage issues; dependence on key personnel; and share price volatility and also include unanticipated and unusual events, many of which are beyond the Company’s ability to control or predict. For further information, please see the Company's most recent annual financial statement, a copy of which can be obtained from the Company on request or at the Company's website: www.kasbahresources.com. The Company disclaims any intent or obligation to update any forward-looking statements, whether as a result of new information, future events or results or otherwise. All forward-looking statements made in this presentation are qualified by the foregoing cautionary statements. Investors are cautioned that forward-looking statements are not guarantees of future performance and, accordingly, not to put undue reliance on such statements. COMPETENT PERSON’S STATEMENT The information in this report is based on information compiled by Mr. Chris Bolger a Member of the Australasian Institute of Mining and Metallurgy. Mr. Bolger is a full-time employee of Kasbah Resources Limited and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr. Bolger consents to the inclusion in the report of the matters based on this information in the form and context in which it appears. The information in this report which relates to Mineral Resources is based on information compiled by Michael V. McKeown who is a Fellow of the Australasian Institute of Mining and Metallurgy. Michael McKeown is employed by Mining One Pty Ltd and he has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the “Australasian Code for Reporting Exploration Results, Mineral Resources and Ore Reserves” (JORC Code). Michael McKeown consents to the inclusion in this report of the matters based on his information in the form and context in which it appears. The information in this report that relates to Mining Inventory is based on information reviewed by Mr Bill Frazer, who is a Member of The Australasian Institute of Mining and Metallurgy. Mr Frazer is a Director and Employee of Mining One Consultants Pty Ltd. Mr Frazer has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code). Messrs Bolger, Frazer and McKeown consent to the inclusion in this report of the matters based on information provided by them and in the form and context in which it appears. 2
- 3. Presentation Rule # 1 We don’t pay attention ….. to boring things 33
- 4. Clear strategy 2 tin assets Team 6 Competitive Advantages $ 28.5 M cash Funding options Strategic partner 4
- 5. KASBAH – Corporate Snapshot Top 20 Shareholders Shareholders Who Need Tin IFC (World Bank) 15.8 % Transamine (trader) 3.3 % African Lion 15.1 % Traxys (trader) 3.3 % Mgmt. & Directors 3.1 % Thaisarco (smelter) 2.0 % Balance top 20 23.8 % ASX : KAS Capital Structure Cash Shares on Issue 396 M Options on Issue 11.5 M $28.5M Market Cap (@20cps) 79.1 M 5
- 6. KASBAH – Our Team Mike Spratt Wayne Bramwell Rod Marston Rob Weinberg Ian McCubbing Gary Davison Non - executive Managing Non - executive Non - executive Non - executive Non - executive Chairman Director Director Director Director Director Mike Kitney Chris Bolger Trevor O’Connor Chief Operating GM Exploration & CFO & Company Officer Resource Dev Secretary 6
- 7. TIN – 4 Reasons To Be A Bull “ We believe that the LME price will recover and continue to forecast that it will move back above US$25,000 / t next year. ” BNP Paribas 27 July 2012 Tin majors struggling Production declining Cost of production increasing Few new, sustainable projects in development 7
- 8. LME TIN Price – 4th peak approaching? US$/t Production 40,000 costs increasing 35,000 30,000 Mine grades 25,000 reducing 20,000 Reducing impact 15,000 of artisanal mining 10,000 Input cost inflation 5,000 Historic 0 under-investment 1900 1920 1940 1960 1980 2000 2012 2016 8
- 9. ACHMMACH – A Strategic Tin Asset ■ New, sustainable tin sources are rare ■ Achmmach is largest undeveloped hard rock tin project in the world ■ Current Inferred and Indicated resources total 14.6 Mt @ 0.9% Sn for 135,000 tonnes contained ■ Growth - Meknes and Sidi Addi Trends ■ DFS initiated 9
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- 11. El Hammam Fluorite Mine Kasbah Exploration Base Achmmach Project 15km Bou El Jaj Project A virgin tin field 11
- 12. ACHMMACH – 2 parallel tin systems Sidi Addi Trend 14.6 Mt @ 0.9% Sn Meknes for 135,000 t Trend 12 12
- 13. ACHMMACH – Meknes Trend Wireframes East West 13
- 14. ACHMMACH – Major uplift in contained tin 200 180 160 140 181 120 153 100 135 80 60 82 89 92 40 48 54 58 20 (HR) (HR) 0 (HR) (HR) SRZ (Tails) KAS (Tails) Tin CSD (HR) VMS (HR) (HR) Resource/Reserve MLX (kt) Minsur KAS MLX * Source - Company Presentations and ASX releases Minsur 14
- 15. ACHMMACH – PFS Mine Design ( Mar 12 Resource Model ) 600m vertical depth West ≈ 1.6km of strike East 15
- 16. Achmmach – A New Generation Tin Mine PFS Parameter Units PFS Value Mining inventory A Mt 6.626 Mined ore tin grade % Sn 0.93 Average mill throughput Mtpa 1.0 Initial Mine Life Years 6.6 Tin Recovery % 74 Average tin in concentrate production tpa 6,880 A – mining inventory includes inferred and indicated mineral resources that have had mining dilution and recovery factors applied creating an inventory of potential stope and development tonnes. DFS targets ■ Increased mine life ■ Optimised surface layout and mine plan ■ Optimised flowsheet and metallurgy 16
- 17. Exploration Upside – Bou El Jaj & Sidi Addi Bou El Jaj (BLJ) 15km from Achmmach Low cost acquisition - 100% Kasbah Extensive HG tin outcrop Sidi Addi Trend Parallel system to Meknes Trend 2km of strike 17
- 18. Oh what a feeling ! - Toyota Tsusho JV Toyota Tsusho Corporation (TTC) trades ≈ 8% of global tin market. TTC can earn 20% interest in Achmmach by making 4 staged payments and signing a JV agreement Kasbah has received T0 + T1 + T2 = $16,000,000 T3 due 90 days post completion of DFS Development funding opportunity through JOGMEC 18
- 19. KASBAH – The Value Proposition 2 tin assets $28.5M in cash Toyota Tsusho as strategic partner for Achmmach Development funding options through strategic partner, existing shareholders and IFC (World Bank) Organic exploration upside Team with tin pedigree 19
- 20. KASBAH – Milestones Ahead Bou El Jaj Q3 2012 - drilling commences Achmmach Q4 2012 - Bulk met work starts KASBAH Q1 2013 – Resource upgrade stay tuned Q1 2013 – Engineering starts Q4 2013 – DFS complete 20
- 21. www.kasbahresources.com Keep Calm and ASX Carry On KAS Talk Tin with Kasbah @ Booth 100 21