Gold exploration in Kyrgyzstan

Transcription

1 Gold exploration in Kyrgyzstan APRELSKOE LTD June 2018

2 Disclaimer This presentation has been prepared by Aprelskoe Ltd ( the Company ) and does not constitute an offer or invitation for the sale or purchase of any securities, nor does it purport to, set out, or refer to all or any of the information an investor might require or expect in making a decision as to whether or not to deal in shares in the Company. Certain statements in this presentation may be forward looking statements. By their nature, forward looking statements involve a number of risks, uncertainties and assumptions about the Company and investments because they relate to future events and circumstances. Actual results or events may differ materially from those expressed or implied by the forward looking statements. Forward looking statements contained in this presentation regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. Except as required by applicable law or regulation, the Company (nor its respective members, directors, officers, employees, agents or representatives) does not undertake any obligation to update or revise any forward looking statements, whether as a result of new information, future events or otherwise. You should not rely on forward looking statements, which speak only as of the date of this presentation. This document does not constitute an invitation to effect any transaction with the Company nor to make use of any services provided by the Company. No reliance may be placed for any purpose whatsoever on the information contained in this document nor on assumptions made as to its completeness. No representation or warranty, express or implied, is given by Aprelskoe Ltd, any of its subsidiaries or any of its respective advisers, officers, employees or agents, as to the accuracy, fairness or completeness of the information or opinions contained in this document or expressed in the presentation and, no liability is accepted for any such information or opinions (which should not be relied upon) or for any loss howsoever arising, directly or indirectly, from any use of this document or its contents or information expressed in the presentation. The information and opinions contained in this document are provided as of the date of this document and may be subject to change without notice. 2

3 Introduction Kyrgyzstan focus gold explorer - potential for near term low cost production Highly prospective deposits in the Tien Shan Gold Belt Experienced board and local management team Accomplished partners with extensive regional experience Almazintech Seeking 3m to fund exploration drilling programme Maiden JORC inferred mineral resource of 48,300 oz Au Drilling programme to increase JORC indicated mineral resource to 300, ,000 oz at a grade of 2-3 g/t Au Target mining operation - minimum production rate of 50,000 oz Au per year Strategy for further exploration to exploit significant blue sky potential 3

4 The Board David M Faktor : Chairman David joined Stemcor Holdings Ltd as a management trainee. He has in-depth knowledge of project finance, trade finance, structured trade finance and off take agreements. He helped build Stemcor into a major player in the global steel market. When he left the group as MD in 2012 it had grown to be the largest independent steel and steel raw materials trader in the world. On leaving Stemcor David founded Veradamas Plc and Faktor Consulting and is involved in commodities trading, raw materials, mining and processing in addition to project finance and development both as a principal and as an agent. Veradamas also has interests in gold projects in Armenia and Kyrgyzstan, where David has forged important links with the Kyrgyz National Gold Company and within government ministries in Kyrgyzstan Valeri Kondratiev : CEO Valeri is a graduate of the Polytechnic Institute of Irkutsk where he studied mechanical engineering. He also holds an MBA from the Russian Presidential Academy of National Economy and Public Administration. Valeri started his career in 1978, when he joined the Yakutalmaz diamond mining company, now known as ALROSA Ltd one of the world s largest diamond producers. He worked in the diamond industry for 15 years and from 2002 he has been the CEO of Almazintech, a consulting and engineering firm, where he has principally been involved in gold and diamond mining projects. He has been engaged in mining projects in Russia, Africa, South America and Central Asia. Almazintech has had an office in Kyrgyzstan since Robert Stubbs : CFO Robert began his career at Schroders as an assistant fund manager in He was Director-Designate in the Tehran office of British Aerospace Plc and then Business Development Director at Middlesex Holdings plc, one of the first AIM companies to do business in Uzbekistan, Tajikistan and Russia. He served as CEO and Chairman of Minster Pharmaceuticals PLC and was a non-executive director of Cape Diamonds Plc, he was involved in the flotation of both companies on AIM. Ian Sands : Non-Executive Director Ian is a chartered management accountant. He began his career at Ford Motor Company before joining Coopers & Lybrand as a senior management consultant. In 1987 he joined NatWest Stockbrokers as a Finance Director before moving to NatWest Investment Services as Head of Finance in Ian became CFO of Lazard Capital Markets in 1995 after which the company s revenue grew significantly. He was a general manager at Wiltshire Friendly Society before joining ABN Amro as COO. Ian left ABN Amro to start his own accountancy and consultancy business in 2005, before working for the National Health Service in various capacities from September 2008 until January

5 Management team in Kyrgyzstan Sergey Yurchenko : Managing Director Design engineer graduate of Frunze Polytechnic Institute in Bishkek. Secretary of the City Committee of the Komsomol of Frunze from 1988 to Involvement in Kyrgyz mining projects since Seconded from Almazintech. Sergey Bezberodov : Chief Geologist Krasnoyarsk Institute of Nonferrous Metals, Started his career in 1980, when he joined the Yakutalmaz diamond mining company, now known as ALROSA Ltd, where he was Deputy Director, Chief Geologist from Senior positions with Severalmaz JSC and Corporation Ural Industrial - Ural Polar. Seconded from Almazintech SRK Exploration Services: provides drilling programme supervision and management support Permanent presence of SRK Senior Geologist onsite during drilling programme Supervision and management of onsite geological team and contractors Ensuring proper implementation of Quality Assurance and Quality Control ( QAQC ) Ensuring drilling and sampling is executed in accordance with planned programme and to JORC standards Will compile new Mineral Resource Estimate ( MRE ) at end of drill programme 5

6 Location Established mining infrastructure Estimated 18 million ounces gold resource Manufacturing & Mining: 18% of GDP 6

7 Kyrgyzstan Population 5.7 million Only parliamentary democracy in Central Asia Extensive deposits of gold, uranium, rare earth metals Corporate tax rate 10% Drill rig and core samples 7

8 Geology - Tien Shan Gold Belt The Tien Shan Gold Belt, part of the wider Tethyan Metallogenic Belt, is one of the most prospective gold belts in the world. It is home to many prolific gold mines, including Muruntau in Uzbekistan, the world s number one producing gold mine with over 150 million ounces of gold reserves and Kumtor which accounted for 8% of GDP in Kyrgyzia in

9 The deposits Two contiguous licenses (615 km²) Both share same geological trend Aprelskoe field (3 km²) comprises 3 main deposit areas, all with good road access Vein-type gold mineralisation is related to regional fault-zones, zones hosted by quartz-carbonate-sulphide breccia Aprelskoe is the focus of the initial drilling exploration programme Karachokinskaya field (612 km²) has 2 main mineralisation zones 56 ore bearing areas have been identified in Karachokinskaya to date, 15 are ore bodies that have significant concentrations of gold Karachokinskaya provides substantial blue sky potential Aprelskoe deposits 9

10 The deposits cont d Aprelskoe (green rectangle) and Karachokinskaya (red polygon) exploration licence locations and mineralised fault zones (blue outlines) in local and regional context 10

11 Local geology Mineralisation, gold deposits and ore shows at the Aprelskoe and Karachokinskaya deposits 11

12 Current and projected resources Current maiden JORC compliant inferred resource of 48,300 oz CPR produced by SRK Group in 2016 C1/C2 resources estimate of 64,300 oz (2007 Teo Konditsy GKZ - Russian classification guidelines) Drilling programme to enhance resources Targeting JORC indicated resource of 500,000 oz at 2-3 g/t Au Logging and packing of core samples for transport to test laboratory 12

13 Use of proceeds Raise of 3m proceeds: to fund exploration drilling program for working capital Estimated 30m requirement to commission mine majority expected to be bank finance Mineral Resource Delineation Programme Scoping Study Feasibility Study Construction Production 13

14 Investment case Experienced board with demonstrable track record and strong local management team Maiden JORC inferred reserves of 48,300 oz Two highly prospective gold deposits Kyrgyzstan is resource rich with increasing inward investment and has a well established mining infrastructure Substantial blue sky Fundraising will enable mineral resource delineation programme Adit at Aprelskoe 14

15 Appendix 15

16 Gold deposits in the Tien Shan Gold Belt DEPOSIT ME Angren Amantaytau Chaarat Chore Daugyztau Jerooy Jilau Kochbulak Kokpatas Kumtor Kuru-Tegerek Makmal Muruntau Pakrut Shambesai Tabospin Taldybulak Levoberezhny (Taldybulak Talas) Taror Zarmitan Reserves & Resources - Gold (oz) 8,687,000 4,675,000 7,043,000 1,175,000 5,603, ,000 10,016,000 3,132, , ,000,000 4,718, ,000 6,570,959 10,082,474 Date of R&R estimate Source: SRK Consulting 16

17 Contact Robert Stubbs E: T: BISHKEK Aprelskoe AZI Shopokova Street 29/1 Bishkek Kyrgyz Republic APRELSKOE PLC Registered Office: 17 Royal Opera Arcade, London SW1Y 4UY Registered in England and Wales Company Number