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Now is the time to invest in Tin !
–And this is one of the most exciting opportunities
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Sable Tin Resources registered as Zaibaikalsky Gornorudniy Kompanii (“ZGK”) is a privately held company focused on developing the Sable Tin deposit (Sobolinoye) in Khabarovsk Region in the Russian Far East.
High Grade World class Deposit
91 983 tonnes of Tin;
53 661 tonnes of Copper, 6 196 tonnes of Tungsten
Average Grades: Sn 0.88%, Cu 0.53%, WO3 0.06%
Intensely explored property
Major Russian tin mining district.
529 drill holes, 230 800 meters
Well understood mineralogy and metallurgy
Extensive field documentation and reports (Archives)
1987 State commission registered reserves
1993 Feasibility study and Technical Engineering plan
Close to Infrastructure (Road, Gas, Electricity, Rail)
Full government and administrative support
Potential to benefit from special tax regimes
Government Far Eastern Fund- equity and debt facilities
Secure title Mining and exploration licence 7.3 km2;
Acquired: State public auction; Valid to 31.12.2032
Registered Resources (GKZ 1987)
Tin Copper
Category Tonne Grade Tonne Grade
C1 (Measured) 46 872 1.07% 27 100 0.62%
C2 (Indicated) 45 111 0.74% 26 500 0.46%
Introduction
Sable license area www.tinresources.com
Tin Supply
Source: www.stellarresources.com.
Global decline: top 10 producers fall 7.4% in 2015 Capacity shortage: low exploration investment Existing producers face lower grades and higher OPEX
Shift towards hard rock resources as alluvials deplete Increased regulations leading to mine suspension Pollution control in China: Closure of 45% of processing
Stretched supply chain
2014 Global refined tin production: 369,5000/t. LME Tin stocks at 1.2% of annual consumption 90% of global tin mining occurs in developing countries (70% China and Indonesia) Recycled tin contributing ~30% of supply Top 4 companies: 50% of world production. Top 10: 75%
Resources: Top 5 Countries % Ton % Ton
Compliant (CRIRSCO)
3.4 Million Non Compliant
11.7 Million
Australia 24% 794 000 China 35% 4 096 000
Brazil 16% 540 800 Russia 12% 1 350 000 Kazakhstan 14% 463 100 Australia 8% 900 000
Germany 8% 271 900 Indonesia 7% 833 000
Peru 8% 262 400 Brazil 6% 712 000 ITRI 2016 Report: Global Tin Resources and Reserves
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Forecasted growth at 2% (5-10 yrs)
Global demand: $9 billion; Long-term price ~$25,000 /t Electronics (China, Japan): ~50% global consumption
Replacing antimony and cadmium in lead acid batteries Support from new energy and lithium-ion battery applications Market supported by transition to lead free solders
Tinplate requirement stable at ~60,000 tpy since 2010 Strong Tin chemicals market - 15% total refined use Replacing nickel and chromium in stainless steel
Tin Demand
Recent Tin Prices
2014-15 fall – New Myanmar supply (50000/t) Economic slow down Fall in price greater in US dollars than other currencies Price drop accompanied by strengthening US dollar Support found at $13000 Rallied 33% on Indonesian and Chinese production cuts, and low inventories, Demand climbed 4.3% in Q1 2016 (Chinese demand 12%)
2013 14 15 16 17 18 19 20 21 22 23 24 20250
5000
10000
15000
20000
25000Tin Price Forecasts
LME StocksWorld BankWB US$ ConstantEIUBMI
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Investment Climate
Russian Far East Rule of law has replaced insecure investment climate of 1990s
Favourable regulatory and Investment regime
Direct proximity to rapidly growing Asian markets
4200 km border with China, neighbouring Japan and Korea
Linking Europe to Asia: Trans-siberian rail; Northern Sea route
Enormous natural resource base – Geologically enriched.
Potential Investment support for Sobolinoye through TADs
Territories of Accelerated Development (TAD) National Priority for development 15 trillion ruble ($230 bln) fund in place. Mechanisms for infrastructure creation established in 2015 Budgetary funds financing the construction of TAD infrastructure Limits on inspections Environmental expertise of infrastructure facilities – 45 days Obtaining permits for capital construction – Maximum 40 days
Free Customs zone system for TAD residents Duty- and tax-free import, storage, use of goods inside TAD No requirement for permits to employ foreigners
Tax concessions for TAD Residents Reduced Mineral Extraction Tax Rate of 0 – 0.8 for 10 years 7.6% Social Security (& Pension) Payment Profit Tax 5% for 5 years after first profit, 12% for years 6-10
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Location
Coordinates Miao Chan Foothills (Sikhote Alin geanticlinal System) 50°55’N 136°30’E Intersecting of Sikhote Alin - Mongol-Okhotsk tectonic systems Eastern part of the Khingan-Okhotsky Volcanic Belt
Solnechny District, Khabarovsk Region, Russian Far East 50 kms from Solnechny — a tin mining town 85 kms from Komsomolsk on Amur - major industrial centre
Property access 35 km unpaved road from national road system. 10 kms from high voltage transmission station 20 kms from high pressure natural gas station 25 kms from Baikal-Amur railway system
Property Description Slightly dissected foothills (Rel. Elevation 50-150m) Intersected by the Shaman River (sub-tributary of Amur) Covered by young birch woods
Climate Warm, rainy summers (Max temperature: July +35°C) Cold, dry winters. (Min recorded temperature: Jan -43°C) Average annual precipitation — 633 mm
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Site Geology
Morphology
Quartz-tourmaline impregnated vein bodies Near-vertical and easy gradient (60-48°) Exception: Leningradskaya and part of Nezhdannaya zones
Upper Host rocks: Cretaceous sedimentary Lower Host rocks: Jurassic terrigenous hosted volcanics
Mineralisation
Same mineral assemblages within deposit zones quartz-tourmaline, quartz-cassiterite, quartz-sulphide, and
supergene Concentrated in lower structural floor – Jurassic sand and shale
Minerals
Cassiterite, chalcopyrite, arsenopyrite Wolframite, pyrite, cellular-pyrite 85-90% of tin in cassiterite, mainly quartz associated Oxidized ores account for 9.4%
Associated minerals distributed among concentrates:
- Tin: tungsten concentrates. - Copper: lead, zinc, bismuth, silver
Average Tin extraction – 63% (Soviet technology 1987) www.tinresources.com
Site Geology
Komsomolsk Tin District 35 occurrences - 500 mineralised zones (1000 km2) 13 fields of which 9 are economical
Deposit - geological structure
Similar to other deposits in the district Complex Jurassic-Lower Cretaceous flysch sedimentation and late cretaceous marine sedimentation and volcanogenic units. Extrusions of acidic and intermediate composition intrude units. Represented by quartz dioritic porphyries
Widely developed tectonic structures Practically all are mineralized Industrial mineralization controlled by NW and NS structures
Ore bodies / zones Similar material composition Six large and medium scale ore bodies were identified 83% of mineralisation in three zones - Sobolinaya, Leningradskaya and Nezhdannaya
Numerous small ore bodies Mineralisation related to cassiterite- silicate ore units of cassiterite-tourmaline mineral type
Mineralisation along strike and dip, ranges from tens to several hundreds of meters Thickness: 0.2 – 18.0m; average: 4.4m
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Exploration
Discovery 1964 on the basis of 1:5000 – 1:10000 Mapping Areal, prospecting and geophysical surveying Presence of commercial concentrations of tin at surface
Preliminary exploration 1972-1977 Detailed exploration 1977-1987
Drilling
529 wells Depth: 50 - 700 m 230 800 m Grid: C1 20x20; C2 40x40 Core Recovery 60-70%. No remaining core
Sampling
8100 trench samples 24 Bulk samples 12 technological laboratory samples Core sampling 39046
Petrographic research
2400 samples, 30 bulk samples, 146 mineralogical technological; 343 mono-mineralogical
Intense geophysical surveys
Gamma ray logging: position and size of contacts of quartz-tourmaline zones in context of exploratory wells X-ray radiometric to determine Sn content SP, IP. Electrical Correlation in 75x2 wells
Directional surveying and 245 calliper surveys) Hydrogeology: 250 exploratory wells; Stream studies
Old trenching at Sobolinoye www.tinresources.com
Contact
Philip Andrews Advisor Pridolian Ltd Natural Resources M&A Advisory Email: [email protected] Skype: philip_andrews.ru Tel: +353 1 254 2212 Mob:+353 83 141 1304 Mob:+7 926 947 1211 www.pridolian.com
Musa Palankoev Director Sable Tin Resources - ZGK 44 Bol. Nikitskaya st. Moscow 121069 Email: [email protected] Tel:+7 495 502 9289 www.tinresources.com
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