Big picture - Why invest in Bezant Resources plc
Bezant Resources plc Snapshot
Bezant is an AIM listed Company with a track record in building significant value in projects from highly cost effective work programmes.
Following our work in delineating the minable reserves at the Mankayan project in the Philippines, resulting in a significant return of cash to shareholders, we are now focused on platinum production development in Colombia. Rationale:
• Create low cost, surface production as apposed to deep shaft/high cost UG2 mining
• Potential for rapid mine start
• Create projects outside of the Bushveld to balance regional risk exposure for platinum investors (80% PGM currently from South Africa)
• Utilise the significant platinum experience of the Bezant team
Although the Philippines is the fifth most resource-rich country in the world, it is home to some of the world’s biggest under-exploited deposits of gold and copper. It also benefits from one of the most liberal mining regimes in Southeast Asia, with the Mining Act of 1995 allowing for 100 per cent of foreign-equity participation through Financial and Technical Assistance Agreements (FTAAs) with local miners.
In addition, the Filipino government has in recent years sought to promote foreign mining investment by providing various tax and non-tax incentives and has established the Mineral Development Council to assist foreign investors in expediting access to mining projects.
As a result, Filipino mining investment has steadily increased, with the Filipino Chamber of Mines estimating US$1.55 billion of mining investment in 2008 and US$2.76 billion in 2009, up from US$350 million in 2007. The Chamber, the Department of Environment and Natural Resources and the Mines and Geosciences Bureau predict the contribution of mining exports to the total export figures of the Philippines will continue to increase year-on-year over at least the next three to five years.
Value Building Track Record
Project return estimated (US$3.00/lbl, Cu copper US$1,250/oz Au):
- post-tax NPV of approximately US$739 million at a 8% discount rate
- post-tax IRR of 21%
- post-tax net cashflow of approximately US$3.7 billion
- 20 million tonnes (“Mt”) per annum, block caving operation over an estimated 28 year mine life
- Total capital investment cost of approximately US$1 billion over the duration of the project at 20 Mta and over 28 year mine life
- US$17.31 costs per ore tonne, including all royalties, taxes, capital costs, equipment ownership, operating and processing costs and administrative and technical services costs
- Team has significant experience in Platinum: Founder of Aquarius Platinum & Sylvania Platinum
- Innovative mining and recovery techniques to generate value from PGM’s
- High cost, underground Bushveld, RSA mines continue to face huge issues (workforce etc)
- Stock piles of PGM’s depleted
- AIM companies must deliver production to build shareholder value
January 2016- Bezant acquired near-surface platinum assets in Colombia following extensive due diligence
Colombian Platinum Assets
- Focusing on area with pre-existing production where low cost, modern mining techniques can be quickly implemented
- Colombia stable and pro-mining although community relations a key priority
- Option over 100% of Projects comprising of 3 granted mineral licences and 1 ‘Minero de Hecho licence application.
- Option to aquire100 per cent. Ownership of licences (FKJ-083, HCA-082 and HGE-082) covering 2,659ha and- pending the successful outcome of an existing licence application, a 70 per cent. interest in a licence covering 91ha
- Acquired from Leeward (private company) following near surface delineation work
- US$1,000,000 cash consideration paid
- 37,306,137 new ordinary shares issued
- History of dredge mining in area
- Objective to rapidly examine economic model and implement modern, efficient low-cost mining operation at FKJ-083
- Track record of mining in the area
- 200 people on a 3 x 8 hour shift system
- Over 550 kg produced from FJK-083 between 2007 and 2012
- Focus on Licence FKJ-083
- Rapidly establish resource and basic mine plan feasibility
- Mine processing test routes to be examined
- Mine plan viability and processes to be developed
- Community and environmental engagement work
- PFS level study completed ready for fast track development start
Argentina is the second largest country in South America, constituted as a federation of 23 provinces and an autonomous City, Buenos Aires. It is the eighth largest country in the world by land area and the largest among Spanish-speaking nations, although Mexico, Columbia and Spain are more populous.
Argentina is one of South America’s largest economies, with a similar high quality of life and GDP per Capita. The country has a firm foundation for future growth for its market size, the levels of foreign direct investment and percentage of high-tech exports, as a share of total manufactured goods. Argentina is a founding member of the United Nations, Mercosur and the Union of South American Nations, along with being one of the G20 major economies.
Argentina's booming mining sector attracted in the order of $2.3 billion investment during 2008, up more than 1,000 percent from 2003, according to official data available (reuters.com). Argentine mining exports totaled about $3.9 billion in 2008 and the mineral exports of the country primarily relate to precious and base metals such as copper, gold, silver and molybdenum. Some of the larger mines in the country include Barrick Gold Corporation’s Veladero gold-silver mine, AngloGold Ashanti's Cerro Vanguardia and the country's largest mine - the Bajo de la Alumbrera copper-gold operation, controlled by Xstrata Copper. Some of the major ongoing projects include Barrick's giant Pascua Lama mine and the Cerro Negro gold project in southern Argentina (the main asset of Andean Resources), which has recently been valued by Goldcorp in the order of a $3.43 billion.
The Eureka Property covers in excess of 10 thousand hectares and is located in the northwest corner of the Jujuy province in northern Argentina, adjacent to the border with Bolivia and at an altitude range of approximately 3600 to 4400 meters (above sea level). There is excellent road access to the Property from the provincial capital of San Salvador de Jujuy approximately 5 hours drive to the south, with there being easy access within the Property over a series of good quality gravel roads.
The tenements are situated within the Argentinean portion of the regionally extensive Bolivian-Argentinean Tertiary Belt (Puna-Altiplano high-plateau) and there are essentially two major metallogenic associations present. The Ordovician basement is often mineralised with gold-bearing quartz veins and, when eroded can develop placer deposits in alluvial settings. The Miocene fluvial auriferous conglomerates also show an extensive copper mineralisation, probably related to hydrothermal waters during the Miocene volcanism. These type of mineralisations are known to host Red Bed copper deposits, being of a type similar to that of the most famous Corocoro copper deposit in southwest Bolivia (Chapman 2007).
The property hosts an historical mine known as the “Eureka Mine”, which had been exploited by the Jesuits since the 17th century, with an artificial dam having been constructed for washing the gold extracted from the Mine. Further industrial-style exploitation of the gold started circa 1885 (Novarese 1893), along with further exploitation in the “La Perdida” (now called “El Torno”) and the “San Francisco” Mines. The most recent copper extraction began circa 1949 and then continued in sporadic form to 1975 (Coira et al 2002). The latest explorations in the area (1980 – 2001), were carried out by Mantos Blancos, Paramount Ventures and Finances and then also more recently, by Minera Penoles and Codelco.
The Company has a specific interest in 11 exploration licences covering tenements within the Eureka Property discussed above.
To date, previous exploration has indicated a non-compliant resource estimate from Penoles in the order of 62 million tonnes grading at approximately 1% for copper (62,000 tonnes of copper) and exploration from Mantos Blancos, an estimate of 600,000 tonnes grading approximately 2.7 g/t. of gold (52,000 ounces of gold).
Following the receipt of the US$7 million funds from Gold Fields (see Mankayan Project), the Company was in a strong position in January 2012 to renegotiate an accelerated acquisition of 100 per cent. of the Eureka project, achieving a saving of US$1.3 million versus the original staggered acquisition price. Accordingly, the Company is now the sole owner and operator and has total discretion over all exploration expenditure on the project. On 15 August 2011, the Company announced that it had completed Phase I of its initial exploration programme in relation to the evaluation of historical data and the generation of a geographic information system (GIS) database. This included the identification of encouraging geophysical responses with zones of high electrical chargeability and resistivity, which shall provide additional targets for the Company’s planned ongoing exploration programme. Work is currently progressing on an environmental base line study, along with the preparation of statutory Environmental & Social Impact Assessments and Hydrogeological Reports, which when completed will be submitted to the Provincial authorities, prior to receiving permits to enable the commencement of Phase II of our exploration programme during the latter part of 2012.
Edward Nealon, Non-Executive Chairman
Mr Nealon is a geologist with more than 40 years’ experience in the mining and exploration industry. After graduating in 1974, he commenced his career in South Africa with Anglo American Corporation, before moving to Australia in 1980 where he spent two years in exploration with Rio Tinto. He founded his own consulting company in 1983 and has practiced in most of the world’s major mining centres. Mr Nealon was responsible for Aquarius Platinum Limited’s introduction into the platinum industry and served on its board for a number of years. He holds a Master’s degree in Sedimentary Geology from the University of Reading and is a member of the Australian Institute of Mining and Metallurgy. He has successfully developed and transacted natural resource projects across the globe and has spent significant time working in the Philippines, where Bezant's primary asset is located.
Dr. Bernard Olivier, Executive Director
Dr Olivier received his PhD in Economic Geology from the University of Stellenbosch, South Africa in 2006. He has been working as a geologist since 1998 and has worked throughout various African and Asian countries, among them Tanzania, South Africa, Zambia, Burundi, Malawi, Namibia, Cambodia, Lao PDR, Australia and the Philippines. He has worked on various exploration and development projects as well as active mining operations on a variety of commodities including, gold, gemstones, uranium, diamonds, PGE’s, base metals and coal. He is an Executive Director of Richland Resources Limited.
Laurence Read, Executive Director
Laurence has spent the last 12 years advising natural resources companies, funds and advisers on strategic development and global investor relations. He has experience working with off-take groups, producers, resource developers, service providers and explorers across a diverse range of minerals. Laurence was previously a founding director of the natural resources team at Threadneedle Communications Ltd (currently Newgate Threadneedle) and a founding director of Conduit PR. He is currently the Chief Executive Officer of Mowbrai Limited, a company which acts as a strategic partner to companies across the commodities sector.
Dr. Evan Kirby, Non-Executive Director
Dr Kirby is a metallurgist with over 30 years of international involvement. At the end of 1975, he moved to South Africa and worked for Impala Platinum, Rand Mines and then Rustenburg Platinum Mines. In 1992, he moved to Australia to work for Minproc Engineers and then Bechtel Corporation from 1997 until 2002. After leaving Bechtel, he established his own consulting company to continue with his ongoing mining project involvement. Evan’s personal “hands on” experience covers the financial, technical, engineering and environmental issues associated with a wide range of mining and processing projects. He is a Non-Executive Director of Ferrum Crescent Ltd (ASX:FCR).
Ronnie Siapno, Non-Executive Director
Mining Engineer holding a Bachelor of Science Degree in Mining Engineering and he is a lifetime member of the Philippine Society of Mining Engineers. Ronnie is the President of Crescent Mining and Development Corporation and also a Director of Bezant Holdings Incorporation in the Philippines.
Bezant Resources Plc
Level 1, South Mill Centre
9 Bowman Street
+61 8 9368 1566
+61 8 9368 5554
4 Thomas More Square
London E1W 1YW
York Place Company Secretaries Limited
White Rose House
28a York Place
34 Beckenham Road
Strand Hanson Limited
26 Mount Row
Broker to the Company:
Beaufort Securities Ltd
131 Finsbury Pavement
London EC2A 1NT
Joelson Wilson LLP
30 Portland Place
UHY Hacker Young LLP
4 Thomas More Square
Bankers to the Company:
National Australia Bank
100 St Georges Terrace
National Westminster Bank Plc
66 High Street