Transcript Слайд 1 - SMW Gold

Highlights
Past producing gold project on highly prospective land within the Nubian Shield of Egypt,
host to the 14.5 M oz Sukari Mine.
Early mover advantage; only company since Centamin to have project ratified by Egyptian
government.
Raising $12 M for Phase II exploration work program.
Fawakhir License
• 100 km North of Centamin’s Sukari Mine.
• Historical U/G workings extend 400m along strike and 400m down dip (50°).
• Historical mining targeted high grade main vein.
• Ancient surface workings extend 1500m along strike.
• SMW Gold to focus on bulk tonnage, low grade open pit potential.
• No modern exploration.
Um Balad License
• 200 km North of Centamin’s Sukari Mine.
• Ancient workings on site covering an area of 12 km2.
• Bulk tonnage target.
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Operational Management
Dr. Vladimir Shashkin - Director of Geology
Dr. Shashkin has nearly 40 years of natural resources experience in the former USSR and Spain, including the position of deputy
head of the Regulatory Department at the Ministry of Natural Resources of the Russian Federation. Dr. Shashkin has been personally
involved in the discoveries of a number of gold and platinum deposits.
Dr. Oleg Morozov - Senior Geologist
Dr. Morozov has over thirty five years natural resources experience in Russia and in South America and has discovered numerous
precious metals and diamond deposits. Currently a Professor at Moscow State Mining University.
Gayas Yusupov - Chief Geologist
Thirty five years of forecast, prospecting and exploration experience predominantly with gold and silver deposits in Central Asia.
Chief geologist of several field exploration expeditions. Important discoveries of one silver and two gold deposits.
Mohammed Hadi - Director of Operations
Mr. Hadi is qualified metallurgist and mechanical engineer, Mr. Hadi has held managerial positions at a number of oil & gas, manufacturing
and service companies in the Middle East, Russia and the CIS during the past 25 years.
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Directors
William Shor - Chairman
Prior to joining Core Carbon Group as CEO, Mr. Shor was Komi Aluminum's (RUSAL GROUP) Chief Financial Officer and Chief Development
Officer and acted as the Deputy General Director of the largest greenfield mining project in Russia until its sale to a major strategic partner. Prior
he was Managing Director of European Emerging Markets at Solomon Smith Barney. He also spent time at Chase Manhattan Bank focusing on
emerging markets trade finance. Bill has a Bachelors degree from Binghamton University and an MBA from Columbia University’s Graduate School
of Business. He also has a Masters in International Affairs from Columbia University.
Aleksey Petrov – Director
General Director of Fleming Family & Partners Russia Real Estate Fund and has previously served as Managing Director of AIG Financial
Services, responsible for strategic development in Russia.
Mark Lisnyansky – Director
Managing Director of SMW Gold since 2007. Chairman of Magnesium.com and of SMW Engineering since 2001.
From 1998 to 2004, as Director of Solikamsk Magnesium Works, initiated and coordinated new production facilities - of rare earth
carbonates and of downstream magnesium alloy products; subsequently coordinated the merger with Silvinit.
From 1995 to 1998 - board member of Silvinit, and in charge of securing new sales channels and associated logistics.
In 1993, he founded one of the first stock brokerage and asset management houses in Russia.
Graduated from NJIT with BSEE.
John Litvinchuk, MBA, PMP.
John Litvinchuk is a certified PMP, with over 20 years of experience in the fields of finance, energy, healthcare, insurance and information
technology. He managed various types of multi-million dollar projects at Fortune 50 companies. Mr. Litvinchuk served as an advisor on numerous
merger and acquisition transactions, as well as facilitating restructuring and reorganization assignments for companies, creditor groups and
acquirers of distressed assets. The total project/transaction portfolio under his management and guidance exceeds $3 Billion.
Mr. Litvinchuk graduated from Yale University with BA in Economics and holds an MBA in Finance from New York University. He also holds a
Master's Certificate from George Washington University in Project Management.
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Egypt
International Law:
Foreign ownership rules and ability to
repatriate
profits
and
dividends
enshrined in law.
Infrastructure:
Eastern Desert is most developed part of
Egypt with road access and power
infrastructure.
Egypt
Low Costs:
High skilled/low cost work force,
excellent existing infrastructure, low cost
fuel.
Fiscal Friendly:
No tax for 30 years and 4% net smelter
royalty. Government 50% carried
interest.
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Geological Setting
The Arabian-Nubian Shield is
comparable with the prolific Canadian
and Australian Shields, also of
Proterozoic age.
Arabian and Nubian shields were
joined until 115Ma, when the shields
were broken up by the Red Sea
Spreading Ridge.
The shield hosts numerous significant
greenstone hosted gold deposits and
remains underexplored.
Recent discovery of Sukari by
Centamin displays the excellent
exploration potential of the Nubian
Shield.
Source: Exploration Alliance
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Exploration in the Nubian Shield
Over 100 gold occurrences recognized
in the Eastern Desert of Egypt.
215,400 ounces of gold was produced
from the region between 1902 and
1958. El Sid (within the Fawakhir
license) is believed to have been the
largest producer in this period. Gold
occurs within vein hosted deposits and
in shear zones/contacts at the
boundaries of intrusions emplaced into
metavolcanic rocks.
Map of the Nubian Shield in Egypt, with SMW Gold’s project
location, Sukari deposit and known gold occurrences (yellow points).
Source: Exploration Alliance
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Exploration Projects
The Company holds two exploration licenses in eastern Egypt, Um
Balad and Fawakhir, for a total of 1291 km2.
Fawakhir
The Fawakhir deposits display similar geology and mineralization
to that observed at Centamin’s 14.5 Moz Sukari deposit, located
100 km south of Fawakhir.
Historical U/G workings extend 1500m along strike and to 400m
depth.
Further exploration along strike and down dip is warranted.
Um Balad
Um Balad contains over 2000 ancient workings over an area of 12
km2.
SMW Gold intends to explore and define near-surface, bulk
tonnage deposits through continuing exploration and definition
drilling. Potential along strike and down dip has not been
adequately tested to date.
Source: Behre Dolbear Technical Report; October 2010
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Fawakhir License
3 past producing gold mines over 15 km in strike within 641 km2 license
Direct access from paved road, 90 km from the coast
EL SID MINE
FAWAKHIR MINE
ATTALA MINE
Largest historic mine on
site.
Produced 50kT @ 37 g/t
gold (~60,000 oz)
between 1910 and 1912.
Quartz – sulphide vein
hosted in granite.
Sheeted quartz vein zone
hosted in granite.
11 quartz-sulphide veins
at granite-serpentine
contact.
(Behre Dolbear, Oct 2010)
Strikes NE over 275 m.
Historic adit extends 100
meters into mountain
side.
Vein width varies from 0.2
m to 1 m wide, averaging
0.35 m wide.
Historic surface workings
on quartz veins in granite
over an area of approx.
300 m by 200 m.
Mineralization comprises
quartz veins at the
contact between intrusive
and country rocks.
Limited underground
Development.
Over 4,000m of historic
undergrad development.
Produced 100,000 oz gold
at an average grade of
27.9 g/t between 1940
and 1957. (Behre Dolbear, Oct
EL SID SOUTH
PROSPECT
Only one channel sample
taken by previous workers.
Low grade bulk tonnage
target.
2010)
Veins strike ENE – WSW
over 1,500 meters and dip
shallowly SE.
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Fawakhir Projects
Veins cross cut the contact between granite
and metavolcanics.
Channel sampling of surface exposures at El
Sid displays anomalous gold mineralisation
over widths of up to 20 metres.
Excellent exploration potential at El Sid
South where numerous sub-parallel veins
occur over a surface area of 300m x 200m.
Only one channel sample at El Sid South and
no underground workings. Potential for bulk
target with low strip ratio.
Source: SMW Gold
Granite (pink) intruding metavolcanic and metasedimentary units within
the Fawakhir License. Past producing mines re located on a NNW structure
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El Sid Mine
1940’s head frame and
primary crusher
1940’s Leaching plant
and waste dump
Historic surface
workings
Source: SMW Gold
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El Sid Channel Sampling
Channel ID
Interval (m)
Gold (g/t)
B14
18.33
0.97
B23
24.11
1.34
B32
14.00
1.36
B40
14.49
0.90
B45
20.24
0.88
B60
27.00
1.26
B60
16.50
1.35
Select assay results.
Intervals calculated as weighted average
over apparent width.
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Um Balad License
3 ancient gold mines and 6 ancient copper mines within 650 km2 license
40 km from the coast, accessed by dirt track from paved highway
EL URF/UM MONQUL
GOLD-COPPER PROSPECT
UM BALAD PROSPECT
• 2000 surficial workings over 10 km2.
• Quartz veins up to 0.5 metres wide.
• Multiple sets of shear hosted quartz veins
crosscutting felsic intrusives, emplaced into
volcaniclastic rocks.
• Previously worked for gold over 300 metre
strike length.
• Main area of interest located at the intrusive
contact.
• 12km2 alteration zone with eight copper
anomalies from sampling program. Anomalous
molybdenum, including 124, 110, and 159 ppm
Mo. (Behre Dolbear, Oct 2010)
• Exploration camp and sample prep lab built
on site ready for continued use.
• 295 tonnes of tailings were reprocessed in
1936 and yielded 183 ounces of gold
(equivalent to 19.32 g/t gold) (Behre Dolbear, Oct
2010)
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Um Balad: El Urf Target
El Urf is the priority target given the extent of historic workings.
342 samples submitted for fire assay, returned maximum results of 2.2 g/t gold
and 1.1 % copper. Systematic trenching program is required to define priority
areas within the six prospects – Western, Central, Breccia, Southern and Eastern.
Source: SMW Gold
Source: SMW Gold
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El Urf Exploration Target
Historic workings at Western El Urf. Note
sheeted, sub parallel, shallowly dipping vein
zones.
Stock work zone in volcanics between historic
workings in wider veins.
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Exploration Strategy
From small scale, high grade to bulk tonnage, low grade.
All historic mines and workings targeted quartz veins
greater than 30 cm wide.
Veins are inferred to form high grade centers to
wider, low grade auriferous alteration and stock
work vein zones.
Further exploration is aimed at defining openpitable resources for bulk tonnage, low grade
deposits with high grade centers.
Surface mapping and systematic channel sampling
proposed to define priority drill targets.
Sheeted quartz vein lets and potassic alteration from
waste dump, El Sid.
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Concession Agreement Profit Sharing Agreement
Preferential tax treatment.
SMW GOLD LTD
(Cyprus Co)
Exemptions on income tax, withholding tax
and tariffs on extraction, production,
export and transportation of minerals, as
well as importing equipment.
50/50 production sharing after expense
recovery.
50% of
Operating
Surplus
NSR of 4% to Government.
100 %
Mineral leases:
Um Balad / El Fawakhir
First phase of exploration completed.
4% royalty on total
production to Government
License ratified into law by Parliament.
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50% of
Operating
Surplus to
EMRA
Use of Proceeds
US$ 5m expenditure per license over 24 months.
• US$5m performance bond per license required by Egyptian government to guarantee
exploration expenditures for 24 months.
• Channel sampling and 1:1000 scale mapping of priority targets.
• License-wide geophysical surveys to include IP and magnetics, with follow-up infill surveys.
• High resolution satellite imagery interpretation.
• Compilation of all historic data into GIS database.
• Diamond drilling of priority targets identified from channel sampling (80m spaced fence lines).
• Follow-up infill drilling of priority targets.
• Metallurgical test work and microscope gold studies.
• Continued 1:5000 scale mapping and channel sampling of new targets defined from work
program.
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Comparison to Centamin
El Sid has geological similarities to Sukari project.
Centamin (CEE:TO) currently has a market cap of over $2 Billion.
Centamin is currently producing 165,000 oz per annum, and targeting 500,000 oz per annum within
3 years.
Measured
Indicated
Total
Measured + Indicated
Inferred
Cut-off
Tonnes
Grade
Tonnes
Grade
Tonnes
Grade
Gold
Tonnes
Grade
Gold
(g/t Au)
(Mt)
(g/t Au)
(Mt)
(g/t Au)
(Mt)
(g/t Au)
(Moz)
(Mt)
(g/t Au)
(Moz)
0.5
84.01
1.42
151.72
1.47
235.73
1.45
10.99
68.9
1.6
3.5
0.7
61.23
1.72
112.85
1.77
174.08
1.75
9.81
50.1
2.0
3.2
1.0
40.54
2.17
75.95
2.22
116.49
2.20
8.26
33.8
2.5
2.7
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Centamin Share Price vs Resource Growth
Source: Salman Partners
Note: Prior to 2007, the share price is based on the ASX October close exchanged at the AUD/CAD rate of the same day.
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Competitive Advantages
Concession areas are located in Egypt’s most
developed eastern part.
Concession areas contain some of the premier
ancient mining sites with outstanding potential
under contemporary mining technology.
Extensive country knowledge supported by a
network of well-placed contacts.
Map of waste piles of ancient and modern mining
at El Sid Mine Deposit.
Good relationships with high-ranking officials
and experienced operational management
team.
Geological similarities to Centamin’s recently
commissioned Sukari mine.
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Contact Information
Tel.: 1-973-628-8800
Fax: 1-201-313-9496
E-mail: [email protected]
Auditor: PricewaterhouseCoopers LLP
Legal Counsel: McMillan LLP
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Historical Reference
On the photograph below is the map of one of the world’s most ancient mining regions Wadi
Hammamat, which is located on the territory of SMW Gold’s El Fawakhir concession area.
Wadi Hammamat region is shown on a papyrus map dating back to the times of Ramses II. This
map was discovered between 1814 and 1821 by agents of Bernardino Drovetti, the French
Consul General in Egypt. The map came from a tomb in the ancient village of Deir El-Medina,
near the modern-day city of Luxor (ancient Thebes). This village housed the workers responsible
for excavating and decorating the royal tombs of the Egyptian New Kingdom (1539-1075 BC) in
the nearby Valley of Kings and Valley of Queens.
‐ With collaboration from James A. Harrell, Professor of Geology,
Department of Environmental Sciences, The University of Toledo
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