julio proyect horeb invervalores america s.a (1)
TRANSCRIPT
Sabanilla, Atlantico - ColombiaJanuary 2012
Magnetite Mining and Processing Project
Disclosure
This presentation is intended for the use of the individual or entity to which it is addressed and may contain information that is confidential or privileged under law.
Horeb Mining ConcessionOverview
The concession owned by Invervalores America S.A is in a privileged strategic position along Colombia’s northern Caribbean coast, enabling it to serve both international markets by sea and domestic markets via the Magdalena River (principal river of Colombia). This area has exceptional access to the major port and airport of Barranquilla, excellent infrastructure of roads, utilities coverage and access to industrial facilities.
The concession is just 15 minutes from Barranquilla on the Via al Mar (Way to the Sea), Colombia's fourth most populous city and one hour drive from Cartagena. Cartagena is a world famous beach resort and designated a UNESCO World Heritage Site.
Colombia’s Caribbean coast depicted a 52% increase in arrivals of cruises in 2011 and has become an important destination for tourists from all over the world. This clearly shows the safety of the area.
Safety, Location, Potential!
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HOREB MINING CONCESSION INFORMATIONMining Registry HDL-08091-X
Concession Validity Contracted for 30 years from October 30, 2008 respectively
Concession Area HDL-08091X 26.48km2Total Area: 2.648.5Ha
UseExploration and exploitation of iron (magnetite), titanium (titanium dioxide) and other grantable minerals
Previous Investment USD 1.8 million/7 years
Reserves
The calculation of proved reserves is based on sampling analyzed by Colombian Mining Company in November 2008 and SGS Colombia in March 2005. Sediments in this terrain have a natural restoration process throughout the area.Depth
in meterArea
in SQ meterDensity ton/m3
Reserves In MT
Exploitable reserves
3 26’648.000 2.70 215’848.800 PROVE10 26´648.000 2.70 719’496.000 PROVABLE30 26´648.000 2.70 2,158’488.000 POSSIBLE
caCa
Horeb Mining Concession
Magdalena River
Port of Barranquilla
Caribbean Sea
DIMAR (Maritime Directorate) Quarantine Zone for Cargo Ships
Military Base
Ernestos Cortissoz International Airport
Barranquilla
Horeb Mining Concession Location
Long shore drift from the Mouth of the Magdalena River
Horeb LicenseReserves test at 3 meters done by CMC associates of Vector Australia with the guidance of engineers from Australian company, JORC (Joint Ore Reserves Committee)
Exploration Works Magnetic Survey Bathymetry profile Sampling/ Assays
- Preliminary Results- Elementary Analysis- Magnetic Separation and X-Ray Diffraction analysis- Scanning Electron Microscopy Analysis
Metallurgical Analysis
Magnetic Survey Performed by AngloGold Ashanti Colombia Type of survey: Aero-transported Equipment used
- Aircraft: Bell 206- Magnetometer: Geometrics G823 cesium vapor with sensibility of 0.001 nT- GPS: MID-TECH R400P- Information processing: OASIS montaj v7.0
Total length: 1850 km with 200 mts distance between flight lines of the grid
Total Cost of the Magnetic survey: USD$500,000
Magnetic Survey Design
*Surveyed and Processed by AngloGold Ashanti
Horeb Concession - Magnetic Survey Results
Barranquilla
Bathymetry
Sampling The sampling program was performed by Andrew Storrie, a
Mining Engineer with over 20 years of experience in the resource sector and Rudi Smithwick, Senior Project Geologist with over 20 years of experience in the resource sector specialized in Joint Ore Reserve Committee “JORC”.
Sediment samples were collected throughout the project area from beach scarps and over wash zones in the preliminary Feasibility Analysis phase of the project.
Seven License Areas were targeted due to the visual abundance of heavy minerals deposits noted on the beach faces of these License Areas.
A grid was established to determine the location and the number of samples to be collected. More than 250 samples were taken from the surface down to three meters depth using different methods: hand, vibracore and ponargrab.
Total investment of USD$500,000 in the sampling program
Sampling ResultsOxide Analysis Sample
FeO (%) 19,39Tio2 (%) 15,52
Fe2O3(%) 40,75
Mineralogical Analysis SampleMagnetite (%) 67Ilmenite (%) 6,4
Magnetite + Ilmenite (%) 26,6
Metallurgical Analysis
Metallurgical Analysis Results
Mineral TestingAtomic absorption testing conducted by SGS on March 8, 2005 for the Horeb concession.
Results were: Fe2O3 – 81.31%
TiO2 – 8.98
Mineral Analysis
594 821 596 599SAMPLE Al2O3 K2O MnO Na2O
DESCRIPTION % % % %M-CLM-1 1,47 0,31 0,28 0,31
597 540 2855 2501SAMPLE P2O5 TOTAL Ba Ce
DESCRIPTION % % ppm PpmM-CLM-1 0,21 96,91 11,5 175,5
2859 2861 2842 2506SAMPLE Co Ga Hf Ho
DESCRIPTION ppm ppm ppm PpmM-CLM-1 10 7 84 1,2
2507 2862 2864 2511SAMPLE La Pb Rb Sm
DESCRIPTION ppm ppm ppm PpmM-CLM-1 84 <5 1,6 11,6
2870 2869 2549 2872SAMPLE Sn Tl U V
DESCRIPTION ppm ppm ppm PpmM-CLM-1 3 <0.5 7 215
2871 2531SAMPLE W ZrO2
DESCRIPTION ppm ppmM-CLM-1 <1 469038,5 5,5 105 3470
ppm ppm Ppm PpmY Yb Zn Zr
2873 2514 2874 2875
ppm10,3 2 1,2 39 0,7ppm ppm Ppm Ppm
2513Sr Ta Tb Th Tm
2867 2868 2512 2550
19,51 14 71 5
Prppm ppm Ppm Ppm ppmLu Nb Nd Ni
2508 2844 2509 2863 2510
ppm15 6,7 3,8 0,7 9,7
ppm ppm Ppm Ppm
2505Cu Dy Er Eu Gd
2860 2502 2503 2504
<14,64 <0.01 15 -1,79
Ag% % % % Ppm
SiO2 SrO TiO2 LOI592 8590 595 475 2865
%<0.01 0,77 <0.01 75 0,71
% % % %
593BaO CaO Cr2O3 Fe2O3 MgO542 588 590 586
CERTIFICATE COMMENTS : "ATTN: DANIEL SARMIENTO/JOHN FLÓREZLOREZ PROJECT : " " DATE RECEIVED : 08-OCT-2001 # of SAMPLES : 1
CLIENT: "COLMINERAL LTDA. “
“ INVERVALORES AMERICA S.A.”
A0126418 – CERTIFIED
Atomic absorption and chemical testing conducted by ALS Chemical on October 8, 2001 for the Horeb concession.
Results were: Fe2O3 – 75% TiO2 – 15%
* The mineral elements’ qualities have been determined by laboratory tests made by the international firms SGS and ALS SHEM.
Competitive Advantage Lower Cost Basis - This project operating in inland waters has many advantages: the charge could be made directly to
ships at sea, without using ground transportation over long distances or ports, since the operating area is adjacent to the quarantine zone in the Port of Barranquilla - Lower costs compared to inland concessions as extraction, production, transportation and cargo can
all be done in the sea Quality- Quality of minerals allows for a higher quality of iron and steel in comparison to using scrap metal for processing Lower Shipping Costs - Shipping from Port of Barranquilla is more price competitive with respect to the following markets:
China: via Panama Canal, closer than Brazil and AfricaJapan: via Panama Canal, closer than Brazil and AfricaS. Korea: via Panama Canal, closer than Brazil and AfricaUS: via Gulf of Mexico, closer than Brazil, Africa and AustraliaGermany: via Atlantic, closer than Australia and South Africa
Mineral Replenishment- Given the off-shore location of the minerals, as they are extracted from the seabed, the natural
currents from the Gulf of Mexico heading towards the Colombian coastline will replenish some of these
extracted minerals. A control plan will be utilized to ensure optimization of mineral content in extraction zones
Concession Highlights Location- Perfect to serve international/national markets- Safe place (next to major city, tourist sites, international airport, main port and military
base) - all within a 45 minute drive- Simple logistics
- Ability to extract, process and load cargo in the open sea next to the mine- Concession is adjacent to the Dimar quarantine zone for cargo ships and the beach is just 7
miles from quarantine zone - Access to all public services- Concession next to the mouth of the Magdalena River
- Rich in minerals - Fast restoration process of extracted heavy minerals with all elements
Mine Characteristics- Iron mining by sedimentation – natural restoration process- Prove reserves of 215’848.800 MT of heavy minerals- Iron dioxide of high quality- Granulometry of 150-300 micras- 52% magnetite without any process Buyers- Long list of buyers ready to buy production of magnetite and future iron ore production- Clients willing to issue Irrevocable Corporate Purchase Orders (ICPO) once mine starts
production - High interest shown by buyers from China, Korea, USA and Germany
Short Term Work PlanExploitation of the Black Sands
Divided in four stages: 1. Permit process of the environmental license Update and adjust the Environmental Management
Plan (EMP), to obtain the environmental license from the Ministry. The project has received approval from the Maritime Directorate (DIMAR), an entity that has jurisdiction and control over maritime areas.
Update and adjust the mining Works and Infrastructure Program (WIP). In order to start the mine’s operation immediately, the only requirement its to announce INGEOMINAS (The Colombian Institute of Geology and Mining) that the operational phase of the concession contract begins, by the processing of the legal terms of reference.
*The average time to obtain the environmental license is 60 days.
2. Assembly and mining - (Simultaneously with the previous stage)
Assess and hire the mining operation. Our company has maintained contacts with international companies specialized in dredging, which we suggested as carriers for outsourcing, these are the Dutch companies:
Royal Boskalis Westminster N.V (www.boskalis.com)
Van Oord (www.vanoord.com) DOWNER EDI MINING www.mineraltechnologies.com.au
Royal Boskalis Westminster N.V
Short Term Work Plan3. Development of infrastructure Identify and acquire land to build silos
and future plant (approx. 60 hectares). Licensing of construction and operation.
Manage the adjustment of Land Management Plan (LMP).
Development of basic civil works.
4. Sales of black sands Sales of heavy minerals with all its
elements containing high quality magnetite with a concentration between 58% and 62% of iron ore (No separation of different minerals).
Short Term Projections0 - 6
months
7-12 month
12 -24 month
Environmental permit, hire international dredging company,
develop infrastructure
Drag, process and sell 50,000 tons/month of heavy minerals with
magnetite of 58% to 62% concentration of iron ore
Drag, process and sell 100,000 tons/month of heavy minerals with
magnetite of 58% to 62% concentration of iron ore
Future Plans1. Construction of plant to enable the separation of the
different elements from the black sands and produce iron ore with a concentration of 65% to 70%. Expected to be constructed in a 24 month period.
The projected production during the first two years is 300,000 tons/month of Fe (65% to 70%) and 20,000 tons/month of TiO2 (90% to 96%); the third year the production is increased to 500,000 tons/month of Fe and 35,000 of TiO2 and in the sixth year reach 1'000.000 tons/month of Fe and 70,000 tons/month of TiO2. In addition to other elements in the sand like zirconium, monazite and gold.
Fe with 65% to 70% concentration is around USD$180/ton
TiO2 with 90% to 96% concentration is around USD$500/ton.
2.Optional - Construction of steel mill for processing iron ore and steel production using a small modular steel electric arc furnace (start production in 6 months).
The price of processed iron is more than 4 times that of the bulk
Produce iron of first merger of 97% to 98% purity and steels with different characteristics. As a byproduct of this process, titanium slag with purity of 90% or more is obtained, which is marketed crushed and ground, at high prices.
*For the design, manufacture, assembly and operation of the mill, Invervalores has contacted Downer EDI Mining, (Australia), Eriez (Mexico) and Eral (Spain) because of their extensive international experience, particularly in environmental management.
Thank you