weatherly wti investor presentation

8/7/2019 Weatherly WTI Investor Presentation

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Half Year PresentationMarch 2011

Revitalised, refocused, positioned for growth


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Disclaimer

This presentation may contain forward-looking statements

that reflect Weatherlys current expectations regarding future

events, its liquidity and results of operations and its future

working capital requirements and capital raising activities.

Forward-looking statements involve risks and uncertainties.

Actual events could differ materially from those projected

herein and depend on a number of factors, including the

,

of the Company to obtain additional financing for its

operations and the market conditions affecting the availability

and terms of such financing.

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Weatherly International (WTI)

Weather ly is an in t e rna t iona l resources

c ompany focused on c opper and bu lk

minera ls in A f r ica .

Weatherlys strategy in Burkina Faso is to assistits partner, Wadi, in perfecting its rights to theTambao manganese project

Weatherl s strate in Namibia is to develo a

BURKINA FASO

Tambao(Mn)

copper mining business capable of sustaining20,000 tpa of copper at average industry cost ofproduction for the next ten years

NAMIBIA

Otjihase (Cu)

Matchless (Cu)

Tschudi (Cu)

Tsumeb West (Cu)

Tsumeb Tailings (Cu)

Berg Aukas (Pb/ Zn) 2


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Shareholder Information

Listed on Londons AIM(1) WTI

Common shares 537 million

Warrants & o tions 22 million

Market cap (undiluted) ~ 67 million(Fully diluted) ~ 70 million

Key shareholders(1)

Blackrock 16.7%

Directors & associated companies 12.2%

Namibian interests(3) 8.6%

Gartmore 2.7%

40.2%

Note 1 as at 1 March 2011

Note 2 Webster ((5.1%), Martinick (3.6%), Ezenet (3.4%))

Note 3 Bank Windhoek, GRN (6.3%), GIPF (2.3%)

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Corporate Information

Directors & Management Weatherly International plc

-

Rod Webster (Chief Executive Officer)

Alan Stephens (Non-Executive Director)

Dr Wolf Martinick (Non-Executive Director)

Max Herbert (Company Secretary)

Kevin Ellis (Chief Financial Officer)Dominic Claridge (Group Exec Project Development)

Directors & Management Weatherly Mining Namibia

Craig Thomas (MD & Chief Operating Officer)Andrew Thomson (Technical Director & Country Manager)

Cleophas Mutjavikua (Senior Non Executive Director)

Titus Haimbili (Non Executive Director)

Frans Ndoroma (Non Executive Director)

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Financial Highlights

6m to31 Dec2010

US$

Year to 30Jun 2010

US$

Income Statement Maintaining

and

developing

mines (3.2) (5.7)

Depreciation (1.6) (5.0)Profitondisposalofproperty 1.1 19.8Operating profit/loss (3.7) 9.1

BalanceSheet Cash 15.0 7.0Netassets 32.1 26.1

Period highlights: Sale of Kombat received US$3.2m Placing 4.45m (US$7m) in November 2010 US 7m Louis Dre fus loan facilit

Operational Objective: First sales revenue expected March 2011

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Namibian Assets

Weatherly Mining Namibias (WMN) assets are:

Two o eratin co er mines

Four development projects (one zinc/lead) &two exploration licences

Approx. US$140m in future tax deductions

NAMIBIA

Otjihase (Cu)

Matchless (Cu)

Tschudi (Cu)

Tsumeb West (Cu)

sume a ngs ( u)

Berg Aukas (Pb/ Zn)

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Central Operations

(Note 1)

Status LOM Reserves/Resource

Otjihase Operating 5+ yrs 3.2mt @ 1.6% Cu, 0.29g/t Au (JORC)

11mt @ 1.9% Cu, 0.24g/t Au (JORC)

Matchless Operating 5+ yrs Western shoot: 0.7mt @ 1.8% Cu (JORC)

Rivershoot: 1mt @ 2.5% (Historical-Samrec)

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Otjihase Mine Area


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Otjihase Mine Plan View

POTENTIAL REMAINING RETREAT TO SURFACE5 YR PLAN

75,000t copper 29,426t copper

,

copper

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Otjihase and Matchless

Five Year Plan (Note 1)

Resources 7.9mt 2.14% Cu 0.35g/t Au

Reserves 3.9mt 1.70% Cu 0.25 /t Au64,934t Cu

31,350oz Au

Ann. productionFive year plan

7,100t (Cu inconcentrate) 35,500t Cu 17,139oz Au

Cost of Production :

Ex Minegate N$410/t ore milled

Ex LME Cu (C1)US$3,258/t Cu

NPV (10%)US$5,500/t CuUS$35m

US$7,000/t CuUS$67m

Remaining Resources After Five Years:

Remaining retreat to surface 29,426t Cu 14,211oz Au

Potential new mine (Tigerschlucht) 75,000t Cu

Note 1 Based on Coffey Technical Review and Valuation of Otjihase & Matchless mines, March 2010

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Matchless Mine Plan View

5 YR PLAN 1NEXT 7 YRS 1

West Shoot

MWE

River ShootEast Shoot

?

Western prospect Eastern prospect

o e ssumes m n ng ra e a , pa

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Central Operations Life of Mine Plan

YEARS 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18

Karuma1

MWE1

Retreat to Surface2

River Shoot2 Development

Tigerschlucht2 FS & Development

Western Prospect2

Otijhase

Matchless

Note 1 Current 5 year plan

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Note 2 Subject to conversion of resources to reserves


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Northern Operations

Status LOM ResourcesTschudi Feasibility

Exploration

10+ yrs 43.4mt @ 0.83% Cu, 10.5 g/t Ag (JORC)

O/P to 186m 25mt @ 0.9% Cu,11g/t Ag (JORC)

Tsumeb Feasibility 16mt @ 0.7% Cu (Historical)1

Tsumeb

West

Exploration 1.0mt @ 2.1%Cu, 18g/t Ag (JORC)

13Note 1 non compliant historical resource, should not be relied upon


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Tschudi Open Pit Development

Underground portal

28 oTest pits


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Tschudi Open Pit

Resources to 180m depth (1) 25.0mt 0.9% Cu 11g/t Ag

Potential diluted reserve (2) 19.2mt 0.8% Cu 9g/t Ag

Pit to approx. 186m depth has a stripping ratio (5.7:1)

Processing Route:

Results to date support either heap leaching the transitional oresfollowed b flotation of the rimar ores or sim l flotation of bothore types. Estimated average production of 13,000tpa of copperand 280,000ozs Ag (10yr life).

Feasibility awarded to Sedgman (Perth) to be completed in 2011

Note 1 Source: Coffey Report based only on JORC compliant measured and indicated resourcesNote 2 Source: Coffey Report, based on pit shell 16 to 186m depth fully diluted with a waste to ore ratio of 5.7:1

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Tschudi Open Pit

Key attractions:

Known resource, drilled out to JORC compliance

Grade risk and variations well understood fromprevious underground campaign (2008)

Good recoveries from both heap leaching andconventional flotation based on Gold Fields 1 andIndec test work 2

existing infrastructure. Mine is only 26 road kms fromsmelter (now owned by Dundee)

nv ronmen a approva or open p gran e n

High potential for increasing resource along strike

Note 1 Recovery of copper from Tschudi Ore Deposit Goldfields Laboratories R Haegele 1995Note 2 Tschudi Copper Project - INDEC Contract BO3020 Santiago Chile July 2003 16


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Exploration Tschudi Syncline

Target areasfor 2011

TschudiML 125

EPL132A

Soil Geochemistry (ppm Cu)

Red > 1,000Orange > 540 < 1000Green > 160 < 540Blue < 160

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Tsumeb Tailings & Concentrator

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Tsumeb Tailings

Sampling from testwork has provided a wide range ofmetal values,

- .

a high of 0.83% (Mintek, 2008)- Silver, lead and zinc values are also significant

The opportunity exists to fast track a simple regrindand refloat of the tails using the idle Tsumebconcentrator

None of the previous work can be relied upon as nosystematic drilling of the dam was carried out

ea er y as comm ss one ump unecontractors to drill the dam, and Coffey to prepare aresource report as the basis for a full feasibility

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Copper Development Plan

Assets Status (US$) 2011 2012 2013

Otjihase/Matchless (1)

Production (ave) 7,100tpaCu

Opex $3,258/t Cu

Capex $6.7m

Tschudi OpenPit (2)

Production 11,000 13,000tpa Cu

Opex $3,300-4,100/t Cu (3)

Capex and timing subjectto feasibility

Tsumeb Contains 16mt @ 0.7%Cu(4)

BFS Construction Production

TailingsProject Capex and timing subject

to feasibilityFS. Production

PlantUpgrade

Note 1 Source: Coffey Technical Review and Valuation of Otjihase & Matchless mines, March 2010Note 2 Source: Coffey Report, based on pit shell 16 to 186m depth fully diluted with a waste to ore ratio of 5.7:1Note 3 Source: Coffey Mining Preliminary Pit Optimisation Results December 2009Note 4 non compliant historical resource, can not be relied upon

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Forecast Production

12000

Otjihase/Matchless

Tschudi

1

2

Annualised tonnes of copper

3

8000

10000sume a ng s

4000

6000

? ???

0

2000

2011 2012 2013 2014 2015

Note 1 - Revised production plan as at 31 December 2010 (WTI model)Note 2 - Indicative only and subject to feasibility and fundingNote 3 - Yet to be determined based on the outcome of the resource drilling and feasibility

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Exploration

Weatherly owns the regional database created byGold Fields in the 1980s and 90s

Weatherly has applied to renew exploration licence(EPL 132A) which extends west from Tsumeb to

1

Priority will be given to carry out the following:

review all Gold Fields data extension drilling to the Tschudi syncline

deep diamond drilling at Tsumeb West

Note 1 EPL 132A expired on 9/3/2008 application for renewal submitted prior to expiry

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Regional Copper Geochemical Soil Sampling Map

EPL132A

TSUMEB

TSUMEB

TSCHUDI

Red > 1,000 ppm CuOrange > 540 < 1000 ppm Cu

Green > 160 < 540 ppm CuBlue < 160 ppm Cu


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Exploration Tsumeb West

Tsumeb West Tsumeb

Tsumeb West:Potential at depth insulphides

Tsumeb:Mined to 1700m

below surface

Similar orebodymorphology &

mineralogy to

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Berg Aukas

Berg Aukas is a dormant zinc/lead mine containing1.7mt of 22% Zn/Pb and 0.6% V oxide (historical)

The intention is to divest Berg Aukas into a new AIM-

listed company called China Africa Resources (CAR)

Bureau (ECE) will own 65%, Weatherly 25% andWeatherly shareholders 10%. ECE will pay 4.8m for

its share

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Berg Aukas

A

B

A B


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In conclusion

Total copper resources of 623,645 tonnes (JORC)and 276,634 tonnes (Historical)

At Otjihase/Matchless, production steadily

increasing

will create further value for shareholders

Opportunity for near term, low cost retreatment ofsume a ngs us ng ex s ng concen ra or

Strategic alliance with large Chinese group EastChina Mineral Exploration and Development Bureau

(ECE)

Potential involvement in Tambao manganese in

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