FCR Investor presentation held on the 4th of November 2016
On the 4th of November, Ferrum Crescent Ltd held a presentation at The Village Hotel, Walsall, Birmingham. They have kindly provided the presentation pack for us to publish to allow other shareholders the opportunity to see what was discussed.
A copy of the presentation can be viewed by following this link.
We also took the time to speak with Justin Tooth and Merlin Marr Johnson in a podcast earlier in the week.
Following on with this is a summary below from one of the members who attended the presentation and what they took away from attending the event.
Summary of the Ferrum Crescent Ltd Presentation given to investors on the 4th of November.
During the visit to the mine share holders compiled a comprehensive report, this was handed out based on the visit to the Toral area. By listening to the people in relation to the project and against previous media reports the following statements and information are thoughts of investors in Ferrum Crescent.
On the visit it was highlighted that Toral has steep sheet like deposits which are good for mining and could make very high value concentrates and easy to process. Lundin in 2006 didn’t go deep enough during their exploration and stopped at the first of the three possible sheets. This is why Ferrum Crescent need to define the geological model with further drilling on these veins which outcrop at the surface and which were seen whilst sampling the surface. Zinc also shows up well in soil samples in the area.
Merlin thinks circa 10 Million tons of Zn/Pb combined at 10% Zinc and 3% Lead, with 50g/ton of silver in situ as way of lowering the operational expenditure. This would tie in with the now closed Rubiales mine just up the valley, run by Teck Cominco for over 15 years, plus 0.5m tons from the much smaller Antonina mine, just across the valley.
Lundin said Toral has very similar mineralisation to Rubiales, but more silver in place at Toral was a positive. This was opinion only and needs to be drilled out to prove the thesis.
So potentially 10MT of Zinc = 2.2Bn pounds of Zinc combined, equivalent of 93p per share at current commodity prices. The commodity price is still recovering and is still far below average costs across the past two cycles.
Drill rigs are available locally together with skilled labour and both local and national Government are keen for new mining projects to proceed in the region.
The Lago project
More Rural location but on the same geological system as Toral, Rubiales and Antonina mines.
Potential for a 3 million ton Synclinal deposit so easier to work on currently. Just two large fields at the bottom of a dip, with Quartzite boundaries outcropping either side. Further smaller synclinal deposit also present either side of an anticlinal ridge, but also within the licence area. Would be worked via an open cast mine. Locals either side are willing to sell access to the deposit. Good infrastructure near by. To date very little testing has been done on site.
Toral/Lago look viable against the previous NI 43-101 Report, subject to further drilling and upgrades JORC defined resource statements should provide the true potential.
Merlin speaks fluent Spanish and Portuguese and knows the region and area intimately.
Spanish mining Engineers and Geologists highly competent and keen to progress the projects and are familiar with the areas and structures.
Excellent infrastructure nearby and a proven mining area.
Toral/Lago combined deposit may be up to 13MT Zn/Pb value circa 103p per share fully diluted for ‘metal in the ground’ at todays commodity price.
A similar company case study:
Beowulf an AIM listed Iron Ore exploration company in Sweden which has no mining licence has a current Market cap of £25m.
Nevada Zinc a comparable asset in USA, slightly more advanced also has a Market cap of £25m.
Supply curve dynamics in favour of supporting long term commodity price rises as well as the need for the product, Silver also offers potential to increase profitability.
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