Gold and base metals exploration in Eritrea
- 1. AFRICA RESOURCES INVESTMENT CONGRESS Gold and base metals exploration in Eritrea Tim Williams – Chairman, Andiamo Exploration IRONMONGERS’ HALL, CITY OF LONDON TUESDAY, 12 JUNE 2012 www.ObjectiveCapitalConferences.com June 2012 Andiamo update
- 2. Andiamo Exploration Limited ELEPHANT COUNTRY Base Metals and Gold in Eritrea Haykota – April 2012 Photo: Seife Investor Update June 2012 June 2012 Andiamo update 2
- 3. Disclaimer This presentation (the “Presentation”), which has been prepared by Andiamo Exploration Limited (the “Company”), is confidential and is being provided to a limited number of recipients solely for their information and June not be copied, published, reproduced or redistributed in whole or in part to any person at any time, or used for any other purpose, without the prior written consent of the Company. The Presentation has not been independently verified and the information contained in it is subject to updating, completion, revision, verification and further amendment. The Presentation does not purport to contain all information that a prospective investor June require. This Presentation does not constitute, or form part of, any offer or invitation to sell or issue, or any solicitation of any offer to subscribe for or purchase, any securities of the Company, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, or act as any inducement to enter into, any contract or commitment whatsoever with respect to any such securities. This Presentation has not been approved by an authorised person pursuant to section 21 of the Financial Services and Markets Act 2000 (“FSMA”) and accordingly, in the United Kingdom, it is issued and only made available to, and directed at (a) persons who are investment professionals falling within the scope of Article 19 of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the “Order”); (b) high net worth entities and other persons to whom it June otherwise lawfully be communicated falling within the scope of Article 49 of the Order; and (c) any other person to whom this communication June otherwise lawfully be communicated or caused to be communicated (all such persons in (a) to (c) together being referred to as “relevant persons”). Any investment or investment activity to which the Presentation relates is available only to relevant persons or will be engaged in only with such persons, and persons who do not have professional experience in matters relating to investments, and persons of any other description, should not rely or act upon it. The communication of this Presentation to any other person in the United Kingdom other than relevant persons is unauthorised and June contravene FSMA. The information in this Presentation was obtained from various sources. No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information and opinions (whether written or oral) contained in the Presentation. The information contained in this Presentation is for the recipient’s information regarding the Company and is for discussion purposes only. Accordingly, neither the Company nor any of its shareholders, directors, officers, managers, agents, employees or advisors take any responsibility for, or will accept any liability, whether direct or indirect, express or implied, contractual, tortuous, statutory or otherwise, in respect of, the accuracy of completeness of the information herein or for any of the opinions contained herein or for any errors, omissions or misstatements or for any loss, howsoever arising, from the use of this Presentation. In furnishing this Presentation, the Company does not undertake or agree to any obligation to provide the recipient with access to any additional information or to update this Presentation or to correct any inaccuracies in, or omissions from, this Presentation. This Presentation should not be considered as the giving of investment advice by the Company or any of its shareholders, directors, officers, managers, agents, employees or advisors. In particular, any estimates or projections or opinions contained herein necessarily involve significant elements of subjective judgment, analysis and assumption and each recipient should satisfy itself in relation to such matters. No securities commission or other similar regulatory authority has reviewed or passed on the merits of this Presentation and any representation of the contrary is an offence. This Presentation is not, and under no circumstances is to be interpreted as, a prospectus (whether under section 87A of FSMA, or otherwise), public information, solicitation or advertisement for the sale or trade of securities, and has not been approved by or filed with the UK Financial Services Authority. Nothing in this disclaimer shall be effective to limit or exclude any liability which by law cannot be limited or excluded. June 2012 3 Andiamo update 3 3
- 4. Andiamo – a Private Company exploring in Eritrea • Highly experienced management, in Eritrea over 17 years • Raised over US$8 million in 2010/2011 • 723 square km land position with demonstrated potential for both: – copper/gold Volcanogenic Massive Sulphide (VMS) – gold in shear zone systems • Andiamo discovered the Yacob Dewar VMS in early 2011 - 55km SW of Nevsun’s newly commissioned Bisha VMS Mine. • Yacob Dewar hosts a gold bearing oxide cap. • Extensive airborne and ground geophysics; geochemistry; mapping – 1st phase diamond drilling 4,000m – very encouraging results – 2nd phase Reverse Circulation 4,000m -to test oxide gold cap at Yacob Dewar – 3rd phase diamond drill program 4,000m - to test deeper copper/gold sulphides and reconnaissance drilling for gold shear zones. Assays expected during June 2012. June 2012 4 Andiamo update
- 5. Andiamo Management William Fisher P.Geo Chairman, non-executive Successful exploration executive with 30 years experience. Chairman of GoldQuest Mining Corporation. Previously Chairman of Aurelian Resources, acquired in 2008 by Kinross Gold for $1.2 billion. Previously CEO of Globe Star Mining (which built a mine in the Dominican Republic) and Vice- President Exploration of Boliden (a major base metal mining company). Dr Tim Williams CEO Mining Geologist with a strong financial background. Thirty years previous experience in the mining industry in both major mining companies including De Beers, JCI and Gencor, and in juniors including Golden Star and MDN Inc. Previous mining finance background in James Capel, Lehman Brothers and Ernst & Young. Operated in Eritrea since 1995 Dr Seife Berhe Country Manager: Resident in Eritrea Geologist, extensive knowledge of Eritrean geology and its mineral deposits. Author of several substantial references on Eritrean crustal evolution. Specialist in remote sensing applications for identification of economic mineralisation. Founder and manager of Global Resources, an environmental consultancy in Asmara, Eritrea. Mark Parker Non-executive Director Successful and experienced mining exploration geologist and executive: the founder and previously Managing Director of African Eagle, an AIM-listed company that has made a major base metal discovery in Tanzania, East Africa and has several exploration and development projects in Africa. Dr Stephen Francavilla Chief Financial Officer Chartered Accountant, with background in corporate finance and conduct of financial transactions. Experience of taking companies to IPO both in Canada and in the UK. PhD in Geology. June 2012 5 Andiamo update
- 6. Andiamo – History of a Private Company • Formed February 2008 • Granted Haykota Exploration Licence in Eritrea July 2009 • Initially supported entirely by two founders, Tim Williams and Seife Berhe • Raised c. $4million July 2010 at $0.50 • Raised c. $3.5million July 2011 at $1.00 • Approximately 25 million shares currently in issue (fully diluted basis) • Cash in treasury c.$1.0million • Fully compliant with historic spending commitments • Audit of 3-year Annual Financial Statements mid 2012 • NI 43-101 compliant reporting as standard June 2012 6 Andiamo update
- 7. Eritrea Mineral Licences and Applications (March 2012) HAYKOTA Exploration Licence June 2012 7 Andiamo update • E X P L O R AT I O N LT D •
- 8. Haykota Exploration Licence – Eritrea • 723 square kilometres granted July 2009 • First renewal due July 2012 – drop 25% • Second renewal due July 2013 – drop further 25% • Subsequent annual renewals so long as satisfactory work continues • Exclusive right to apply for Mining Licence(s) in the residual area • Minimum annual expenditures (already exceeded) • State retains 10% free carry • State June purchase further 30% participating interest on agreed terms • Capital gain is taxed as income, plus 4% transfer tax • Royalties: gold up to 5%, base metals up to 3.5% • Income Tax 38% June 2012 8 Andiamo update
- 9. Haykota License on southern extension of the Bisha VMS belt and the newly identified Shambotei gold trend The Haykota area targets : * VMS with gold caps * lode gold Good Infrastructure: * Water * People * Sealed road * Communications November 2011 9 June 2012 9
- 10. Geophysics and interpretation programs have led to numerous targets being identified Magnetics VTEM June 2012 10 • E X P L O R AT I O N LT D •
- 11. Haykota Target areas (March 2012) Gash River Tar Road. Asmara → November 2011 Andiamo update 11
- 12. Haykota Licence – multiple targets (June 2012) Target Type Stage Yakob Dewar Oxide gold 2 Aircore discovery holes. Diamond core drilled – 32 holes 58 reverse circulation holes complete, assays arriving Yakob Dewar Sulphides Disseminated sulphides located with core drilling: 4 x 250m deep core drillholes underway Ber Gebay Oxide & Sulphide Gossan assayed: source not yet located IP program to identify conducting and chargeable mineralisation Adi Meriray Sulphides Outcrop gossan. Disseminated sulphides exposed in road cut. 8 diamond core holes complete - waiting assays Shekeret/Berkele Oxide gold Strong geochemical gold anomaly 6 diamond core holes completed – waiting assays Shambotei/Jawkerai Shear hosted gold Extensive artisan activity 6 diamond core holes complete – waiting assays Hoba VMS Coincident geophysical anomalies and gossans. Core holes being sited - road to be built into the area Carbonate Hills Skarn Marbles invaded by quartz veining Geophysical anomalies Mostly VMS North East and South of licence area. Field confirmation required June 2012 12 Andiamo update
- 13. Target: Yacob Dewar • VMS target • Gold bearing oxide cap • Extensive disseminated sulphides • Gold and copper values in oxide cap • 2010 2 short aircore holes • 2011 32 diamond drill holes • 2012 58 reverse circulation holes • 2012 3 diamond drill holes to 250m – to test deeper potential sulphides – Expect assays in June 2012 • 2012 Continuing ground geophysics (IP and mag) • 2012/3? Infill and step-out R/C programs suggested June 2012 13 Andiamo update
- 15. Yakob Dewar aircore and 1st diamond core drilling highlights Hole Depth Intersection Au Ag Cu From (m) (g/t) (g/t) (%) (m) HYR-1 1.0 14.0 3.5 5 - HYR-2 6.0 5.0 2.8 20 - YDD-001 11.0 10.0 5.7 - - YDD-002 5.0 16.2 5.0 33 - YDD-005 0.4 18.4 3.4 5 - YDD-008 45.0 2.9 5.4 12 - YDD-014 37.5 5.0 4.0 19 - YDD-018 218.5 2.5 0.2 48 1.3 YDD-019 117.0 3.0 1.4 61 2.7 YDD-022 17.5 13.0 - - 1.8 June 2012 15 Andiamo update
- 16. Reverse Circulation drilling at Yakob Dewar 2012 Reverse Circulation holes angled at 50 degrees to the East November 2011 Andiamo update
- 17. Yakob Dewar Reverse Circulation drilling highlights E&OE Hole Depth From Width Au Cu (m) (m) (g/t) (%) YDRC-04 53 6 1.10 0.51 YDRC-05 56 11 3.05 - YDRC-06 10 29 2.01 - YDRC-07 59 4 - 1.14 YDRC-08 12 2 - 1.86 YDRC-09 49 31 - 0.62 YDRC-10 20 20 0.51 - YDRC-15 6 35 - 0.59 YDRC-17 22 25 1.57 - YDRC-18 21 16 - 0.58 YDRC-23 6 12 - 0.52 YDRC-24 9 3 - 0.54 YDRC-25 19 3 - 0.59 YDRC-32 39 6 1.16 - YDRC-33 6 25 7.32 - YDRC-45 23 52 0.86 - June 2012 17 Andiamo update
- 18. Yacob Dewar Reverse Circulation drilling (June 2012) Note: these are preliminary calculations June 2012 Andiamo update 18
- 19. Botryoidal malachite/chrysocolla (?) from Yakob Dewar 2012 June 2012 Andiamo update 19 • E X P L O R AT I O N LT D •
- 20. Induced Polarisation (IP) targets sulphides for drilling 20 June 2012 • E X P L O R AT I O N LT D •
- 21. Target: Adi Mereray • VMS target • NE of Yakob Dewar about 5kms • Extensive disseminated sulphides • Gold and copper values in gossan • 2009 Ground gravity survey • 2010 Airborne geophysics • 2011 Geology mapping found gossan • 2012 8 diamond drill holes complete – to test disseminate and deeper potential sulphides – expect assays in June 2012 • 2012 Continuing ground geophysics (IP and mag) June 2012 21 Andiamo update
- 22. Adi Meriray: diamond drilling now being logged VTEM anomaly Completed drillholes Gravity anomaly Surface contours June 2012 22 Andiamo update 22
- 23. Adi Meriray – disseminated and massive sulphides Oxidised disseminated sulphides Adi Meriray road cut for drill pads November 2011 23 Andiamo update
- 24. Adi Meriray sulphides In Eritrea the VMS deposits are believed to be about 750-800 million years old Adi Meriray Drill core June 2012 Andiamo update 24 24
- 25. Adi Meriray 8 core holes completed – assays pending June 2012 Andiamo update 25
- 26. November 2011 Andiamo update 26
- 27. Target: Mount Hoba • VMS target • 2009 Ground gravity survey • 2010 Airborne geophysics • 2011 Geology mapping found several gossans • 2012 8 diamond drill holes planned – to test disseminate and deeper potential sulphides • 2012 Access road construction, and build drill pads Ground geophysics, Stream sediment and outcrop sampling Diamond core drilling later in 2012 June 2012 Andiamo update 27
- 28. Mount Hoba from Adi Meriray drilling Feb 2012 Mount Hoba November Andiamo update 28 2011
- 29. Integrated geophysics approach at Mt Hoba Gossan +/- 900m Gravity anomaly Proposed drillholes VTEM anomaly June 2012 Andiamo update 29
- 30. Target: Shekeret and Berkele • VMS and gold target • Local artisans producing gold • Large exhalative outcrop • Significant values from outcrop sampling • 2010 Airborne geophysics • 2011 Geology mapping found exhalative horizon • 2012 6 diamond drill holes complete – to test extent of surface mineralisation – expect assays in June 2012 • 2012 Continuing ground geophysics (IP and mag) June 2012 Andiamo update 30
- 31. Berkele/Shekeret Geochemistry: Surface Sampling: Geology Mapping • 6 Diamond core holes completed January 2012 • Core logging and splitting • Assays expected June 2012 November 2011 31 Andiamo update 31
- 32. Gold targets at Berkele and Shekeret June 2012 Andiamo update 32
- 33. Drilling at Shekeret January 2012 June 2012 Andiamo update 33
- 34. Target: Shambotei/Jawkerei • Lode and disseminated gold target • Extensive artisanal workings, both in valley and quartz veins • Gold values in outcrop sampling • 2010 Airborne geophysics • 2012 Access across Gash River built Roads constructed and drill pads built 6 diamond drill holes complete at Shambotei • to test for vein hosted and disseminated gold values • expect assays in June 2012 Ground geophysics (IP and mag) Geology mapping June 2012 34 Andiamo update
- 35. GOLD Gold at Shambotei In Eritrea These shear hosted gold deposits are believed to be about 500 million years old Shambotei artisan valley workings November 2011 Andiamo update 35
- 36. Andiamo’s goldPrivate Company Andiamo – exploration program • Extensive artisanal workings producing gold led Andiamo to systematically begin the gold Quartz vein exploration program in mid 2011 workings Valley • Surface sampling up to 15.5 g/t workings gold •Sampling and airborne geophysics suggest large scale anomalies and structures over a 20 kms long belt; associated with artisanal workings November 2011 36 Andiamo update 36
- 37. Shambotei/Jawkerei alteration zone; and marbles Carbonates Jawkerei Radiometric alteration Shambotei signature June 2012 Andiamo update
- 38. Shambotei carbonates with quartz veining June 2012 Andiamo update 38
- 39. Jawkerei valley artisan workings
- 40. November 2011 Andiamo update 40
- 41. Work Program Snapshot (June 2012) – Geophysics • Ongoing interpretation integrating airborne and ground geophysics, • Further ground gravity surveys. • IP and ground magnetic teams operational – Geochemistry • Soil sampling • Stream Sediment sampling • Surface sampling – Mapping • Hoba anomalies and gossans being prepared for drilling • Target exhalites in NE to be mapped in detail over several kms • Detailed gold mapping program – Drilling • 58 R/C holes for 4,400 m completed at Yakob Dewar for oxide mineralisation • 870m core drilling at Yakob Dewar and Z1A • Shekeret and Berkele drilled with 6 diamond core holes • Adi Meriray VMS – 6 diamond core holes completed • Shambotei Gold – roads built and 6 diamond core holes completed • Multiple further targets already identified June 2012 Andiamo update 41 41
- 42. • E X P L O R AT I O N LT D • Wax Chandlers Hall 6 Gresham Street London EC2V 7AD Tel: +44 20 7600 1888 Tim@andiamoexploration.com Stephen@andiamoexploration.com June 2012