Big Picture – A Deep Dive Examination of Metminco Limited
Metminco Limited Snapshot
At Metminco Limited we are committed to developing the Company into a world class exploration and mining company with a dedication to, and respect for, the environment, a strong commitment to safety for all our employees, promoting sustainable development of those communities within which we operate, exercise labour practices that respect the culture and diversity of our employees, and the commitment to act with utmost integrity, honesty and in good faith.
Metminco holds an interest in a portfolio of gold, copper and other base metal projects that are located within well-constrained metallogenic belts associated with the Andean Cordillera in Colombia, Peru and Chile.
In Colombia, the Company is completing a feasibility study on its 100% owned Miraflores gold project where the Company plans to produce 50,000 ounces of gold per annum for an initial mine life of 9 years. The Company’s Colombian assets include the Dosquebradas, Tesorito and Chuscal targets located near the Miraflores Project, which present significant upside potential.
Figure 1: Location of the Quinchia Gold Portfolio and surrounding operating mines.
In June 2016, Metminco completed the purchase of Miraflores Compania Minera SAS, a Colombian company, from RMB Resources Australia Pty Ltd. Miraflores Compania Minera owns 100% of the Quinchia Gold Portfolio which includes the Mirafores Gold Project.
The Miraflores Project has Measured and Indicated Mineral Resources of 9.27mt at 2.82g/t Au and 2.77g/t Ag (840,000 oz Au and 825,000 oz Ag) and Inferred Resources of 0.5mt at 2.36g/t Au and 3.64g/t Ag at a cut-off grade of 1.20 g/t Au. The resources are based on 25,884 meters of drilling in 73 diamond drill holes and 236 meters of underground channel samples. This includes 3,624m in 10 holes carried out by AngloGold Ashanti and B2Gold in 2006-2007. These resources have been reported in accordance with JORC Code (2012 Edition).
The Dosquebradas deposit has Inferred Mineral Resources of 0.98m oz Au at a 0.20g/t Au cut-off.
Drilling at the Tesorito Project has identified a mineralised porphyry system with gold, silver, copper and molybdenum present in drilling.
In Chile, the Company maintains its Mollacas, Loica and Vallecillo projects on a care and maintenance basis. The Mollacas and Vallecillo (gold-zinc) projects have mineral resources classified in accordance with the JORC Code (2004 Edition).
Figure 3: Location of Metminco's projects in Chile.
In July 2012, the Company announced an updated mineral resource estimate for the Mollacas Project of 15.5 million tonnes at a Cu grade of 0.51% (using a 0.2% Cu cut-off grade), which is amenable to leaching (Copper Leach Project). The total contained leachable copper is 79,111 tonnes, of which 61,650 tonnes is soluble. Following the conclusion of additional metallurgical testwork, as well as revised operating and capital cost estimates, the Company updated a prior Scoping Study (completed by SRK Consulting [Chile] S.A. in 2008) in March 2014, the results of which support robust economics for the project as an open pit, heap leach, solvent extraction - electrowinning operation. Given these encouraging results, it was disappointing that in late March 2014, the IV Region Court of Appeal overturned a 2011 judgement by the First Court of Ovalle which had granted the Company the right to mine the Mollacas deposit. The Company is continuing to assess avenues for the development of the project.
The in-fill drill program completed at the Vallecillo Project (La Colorada deposit) in 2012 has, in conjunction with the prior drilling results, formed the basis of the current geological model for the La Colorada deposit. In reviewing the geological model, and the associated style of mineralisation, it became clear that further refinement of the model was required, which necessitated the sampling of previously un-sampled zones, and additional geological analysis of the drill core. In October 2012 SRK Consulting (Chile) S.A. completed a further mineral resource estimate comprising 8.86 million tonnes at a Au grade of 0.80g/t, Ag grade of 9.94g/t, Zn grade of 1.01%, Cu grade of 0.07% and Pb grade of 0.32% (using a 0.2g/t Au cut-off). A Preliminary Economic Assessment of the project in 2013 indicated that additional mineral resources need to be identified to develop an economically viable mining operation.
Metminco's other Chilean project, namely the Loica Project, is regarded as an early stage exploration project, where limited exploration work has served to identify anomalous occurrences of copper and molybdenum, that have yet to be assessed by follow-up geophysical and drilling programs.
Board of Directors
BSc, ARSM, MBA
Kevin was appointed to the Board on 23 March 2018. He has over 30 years' experience in the minerals and finance industries, including as Managing Director of Leviathan Resources, a Victorian gold mining company. Over the last 8 years Kevin was Managing Director of Rey Resources, an Australian energy exploration company. He has prior experience as a geologist with the Anglo American Group in Africa and North America and as a stockbroking analyst and investment banker with CS First Boston and Merrill Lynch in Australia and USA.
Dr Roger Higgins
BE, MSc, and PhD
Roger was appointed to the Board on 8 October 2013. He has over 40 years of mining industry experience, which has included environmental, strategy, project development and operational roles. He commenced working in the industry as an engineering hydrologist working on pit flooding and tailings disposal issues. Subsequent experience included responsibility for projects and operations in arid Australia and the deserts of northern Chile, as well as in eastern and western Canada.
BEng. MBA, Fellow AICD, Fellow AusIMM
Glenister joined the Board on 28 May 2018. He is a professional non-executive director, who has been Chair of several ASX listed resource companies as well as a director of other listed companies, government, not-for-profit and investment entities. Encompassing a 40-year executive career, Glenister has been CEO of a listed gold explorer, General Manager for two ASX 200 companies and Executive Director at UBS Australia. This gives him significant depth of finance, business and management experience, both domestically and internationally.
Exploration Manager - South America
B.Sc Geology (Hons); M.Sc.
Colin has over 40 years’ experience in exploration and mine geology in Africa, Middle East, South America and Australia, including 5 years in Chile (1992 to 1997) as a Managing Geologist. He has held senior geological and managerial positions, including General Manager South America for North Limited, Project Manager North Parkes Project for North Limited and Chief Geologist Ashanti Goldfields, Ghana. Colin is widely experienced in base and precious metal geology, particularly in copper and gold. His experience covers major deposits, various treatment processes and ranges from initial exploration through feasibility studies to operating mines.
Joint Company Secretary
Appointed as joint Company Secretary on 26 April 2018, Geoffrey is the Principal in Palliser Group which specialises in corporate secretariat and governance, financial management services and resource evaluations. His qualifications include a Bachelor’s Degree in Economics (Monash University) and an MBA, (Queen’s University, Canada) and an Advanced Diploma Spanish Language, Don Quijote Language School, Spain.
He is also a Fellow of the Australian Institute of Company Directors (FAICD), Member of the Governance Institute of Australia (MGIA) (Grad Diploma Advanced Corporate Governance) and Members of the Association of Independent Petroleum Negotiators (AIPN) and Society of Petroleum Engineers.
He has extensive board and executive commercial experience in energy and resource exploitation in Australia, Asia and the Americas as well as in the infrastructure and technology industry sectors. Geoffrey has experience in corporate governance, energy project evaluation and financial analysis, business strategy, technology commercialisation, M&A and contract negotiations.
Geoffrey is currently the Honorary Consul for the Republic of Colombia and was previously the Victorian Vice-President of the Spanish Chamber of Commerce. He speaks Spanish and is a frequent visitor to both Colombia and Spain. Also he is an Honorary Justice of the Peace (HJP).
Chief Financial Officer/ Joint Company Secretary
CPA, FGIA, GAICD
Appointed as Company Secretary/Chief Financial Officer on 28 May 2018, Andrew is a qualified accountant, experienced company secretary and governance advisor. He is a member of the Australian Certified Practising Accountants, Fellow of the Governance Institute of Australia (formerly Chartered Secretaries Australia) and a Graduate of the Australian Institute of Company Directors. Mr. Metcalfe provides CFO and company secretarial services and advises on corporate governance matters for a number of ASX listed, public and private companies and not for profit organisations. Mr. Metcalfe also manages the regulatory functions of these companies.
Chief Operating Officer
B.Sc. Hons, Macquarie Univ. Australia
Nick has had a successful career and made discoveries with BHP Exploration, Horizonte Minerals and AngloGold Ashanti. In 2013 he led the AngloGold Colombian team that discovered and then delivered the resource model and Scoping Study for the “blind”, Nuevo Chaquiro Cu/Au deposit. This world class deposit starts 250m below the surface and contains 8Blbs of copper and 5.6Mozs Au with significant Ag & Mo credits (*). The discovery of the high grade zone in 2014 was the result of developing and deploying an integrated exploration dataset together with the knowledge and experience of the team.
Nick’s technical expertise in exploration and experience in Colombia, combined with a drive to make discoveries, make him a valuable asset to the management team where he will lead the Company’s exploration activities, in particular the advancement of the portfolio of gold assets in the Quinchia district.
* P. Noriega, Oct, 2017: Indicated Resource of 111Mt @ 1.08% Cu & 0.62g/t Au and Inferred Resource of 500Mt @ 0.53% Cu & 0.23g/t Au. The Nuevo Chaquiro deposit is located 50km north of Quinchia.
Top 20 Shareholders
As at 17 May 2018:
|Significant Shareholders||No. of Shares||Holding (%)|
|Lanstead Capital LP||71,768,608||8.51%|
|Mr Nevres Crljenkovic||40,000,000||4.74%|
|Total Shareholding Metminco||843,814,388||
|Rank||Top 20 Shareholder (beneficial interest)||No. of Shares||Holding (%)|
|1.||BNP Paribas Nominees Pty Ltd||65,959,658||7.82%|
|2.||Computershare Clearing Pty Ltd||44,651,262||5.29%|
|3.||Mr Nevres Crljenkovic||28,800,000||3.41%|
|4.||Osiris Capital Investments Pty Ltd||25,000,000||2.96%|
|4.||Ocean View WA Pty Ltd||25,000,000||2.96%|
|5.||Mr Mark John Bahen & Mrs Margaret Patricia||23,728,146||2.81%|
|6.||Perishing Australia Nominees Pty Ltd||20,852,783||2.47%|
|7.||Troca Enterprises Pty Ltd||20,000,000||2.37%|
|8.||Cittcorp Nominees Pty Ltd||17,504,925||2.07%|
|9.||BT Portfolio Services Limited||15,102,625||1.79%|
|10.||Mr Sufian Ahmad||15,003,281||1.78%|
|11.||Flue Holdings Pty Ltd||15,000,000||1.78%|
|12.||Sanperez Pty Ltd||13,337,500||1.58%|
|13.||JP Morgan Nominees Australia Limited||12,894,440||1.53%|
|14.||MGL Corp Pty Ltd||12,724,815||1.51%|
|15.||Ashgrove W Pty Ltd||12,702,000||1.51%|
|16.||HSBC Custody Nominees (Australia) Limited||12,666,935||1.50%|
|17.||Locope Pty Ltd||12,000,000||1.42%|
|18.||Crljenkovic Super Fund Pty Ltd||11,250,000||1.33%|
|19.||Jayart Funds Management||10,000,000||1.19%|
|19.||Zerrin Investments Pty Ltd||10,000,000||1.19%|
|19.||Dixtru Pty Limited||10,000,000||1.19%|
|20.||Jojo Enterprises Pty Ltd||9,567,421||1.13%|
The Top 20 shareholder analysis is subject to the accuracy of information provided by nominee shareholders under section s672B of the Corporation Act.
C/- Accosec & Associates
Suite 3, Level 2, 470 Collins Street
Ph: +61 (3) 9867 7199
Fax: +61 (3) 9867 8587
Email: [email protected]
Miraflores Compania Minera S.A.S
Carrera 36 No 2 Sur 60 Int 1301
Ph: +57 4 3121196 or +57 4 3121325