DIAMONDS Afri Can Marine Minerals Corp

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					                    « A Hidden Gem »
TSX-V:      AFA
Pink Sheet: AFCMF
    	
  	
  




An	
  advanced	
  Exploration	
  Company	
  	
  
	
  	
  	
  	
  	
  	
  developing	
  large	
  deposits	
  of	
  
       	
  	
  high-­‐gem	
  quality	
  diamonds	
  
       	
  	
  	
  	
  	
  	
  	
  off	
  the	
  Namibian	
  coast	
  

                                                                        2
       Disclaimers

Certain information presented herein constitutes "forward-looking statements,"
as identified in Afri-Can's periodic filings with Canadian Securities Regulators
that involve a number of risks and uncertainties. There can be no assurance
that such statements will prove to be accurate and actual results and future
events could differ materially from those anticipated in such statements.

Although Afri-Can has attempted to identify important factors that could cause
actual results to differ materially, there may be other factors that cause results
not to be as anticipated, estimated or intended.

Afri-Can disclaims any intention or obligation to update or revise any forward-
looking statements, whether as a result of new information, future events or
otherwise.

Accordingly, readers should not place undue reliance on forward-looking
statements.


                                                                                     3
           Country and projects Location


Marine diamonds:

-  EPL 3403
-  Block J

Copper:

-  Haib Copper




                                           4
                 Investment Summary
 Capitalizing on its vast experience and partnerships
 to develop high quality resources in Namibia
DIAMONDS:
 EPL 3403 is adjacent to Atlantic One, the largest marine diamond deposit in the world operated
by De Beers Marine. Sampling in 2011 demonstrates comparable diamonds on EPL 3403.
 Afri-Can conducted a geophysical survey on EPL 3403 in May 2012, will start a sampling
program in Q4 to delineate resources, followed by trial mining in Q1 & 2 2013; Cash Flow 2013.
 Afri-Can accesses the best known marine sampling & mining technologies through partnership
with IMDH.
COPPER:
 Significant interest and value in the Haib copper deposit, in partnership with Deep South & Teck
Corporation.
 Contained copper to AFA’s account to be 8 lbs per share.
 Interest in Haib to be vended into Newco and dividend out to AFA shareholders.
 Highly attractive base case valuation: $ 0.96* / AFA share.
 Seasoned and renowned technical Management and Board of Directors.
 Project development in a politically and economically stable Country with strong local
partnerships. Namibia is an excellent mining jurisdiction.
* RB Milestones independent valuation
                                                                                               5
                                       Overview
Diamonds:
 Afri-Can is a Canadian company, actively involved in the acquisition, exploration and
  development of major mineral properties in Namibia, with a history of offshore diamond
  discoveries.
 Afri-Can holds a 20% interest in EPL 3403 and has the Option to earn the remaining 80%.
       EPL 3403 is adjacent to Atlantic One, the largest marine diamond deposit in the world;
       Previous exploration resulted in the discovery of 3 diamond deposits with gem quality stones of the
        same average size as those of Atlantic One at 0.50 carat / stone.
 Geophysical survey just completed, to be followed by sampling and trial mining in 2012-2013,
  expect cash flow 2013;
 Afri-Can also holds a 70% interest in the Woduna Block J marine diamond concession.
Copper:
 Afri-Can and Deep South own equally a 30% interest in the Haib copper project, in partnership
  with Teck, which owns 70% and manages the exploration programs;
       Most recent historical tonnage & grades estimate (1996 Behre Dolbear) for the Haib
               630 MT @ 0.34% Cu or 4.7 Billion Lbs Cu In Situ, 0.2% Cu cut-off:
               292 MT @ 0.46% Cu or 2.9 Billion Lbs Cu In Situ, 0.3% Cu cut-off;
       Teck exploration objectives are to increase the size of the high grade section of the deposit;
       The 30% interest will be spun-off in a new listed company. AFA shareholders to receive shares in
        Newco
 Reputable and experienced Board of Directors and Management;
 Working in Namibia since 97, the corporation is well established in the Namibian community;              6
Namibia – Best Investment Jurisdiction in Africa
•  Stable democracy
•  Sparsely populated
•  Excellent infrastructures
•  Highly skilled professionals
   available localy
•  Well-administered and
   transparent mining policies
•  Established mining
   industry
•  Mining accounts for: 13% of
   GDP, 80% of exports
•  Current major mining
   companies include:             Block J
      •  Rio Tinto
      •  AngloGold Ashanti        EPL3403
      •  De Beers
      •  Areva
      •  Exxaro

•  Becoming a major oil and
   gas exploration target.
                                                   7
                          Why diamonds ?
« For the foreseeable future, five years, it seems that the demand
for diamonds is going to exceed the supply. That is simply because
there are no new mines coming in production. »
Nicky Oppenheimer, Chairman, De Beers. (Bloomberg, January 9th, 2011)

«Diamond demand is already starting to outstrip supply, and will
continue to do so until a major new mine is found and developed.
The effect of China really is enormous, but people tend to neglect
India, which also has very strong growth. »
Bob Gannicott, Chairman, Harry Winston Corp. (Mining weekly, June 9th, 2011)

« On the long term, the outlook is extremely positive. The supply
picture is extremely constrained, whilst demand is expected to
grow strongly. »
Edward Sterck, diamond-producer equity analyst for BMO Nesbitt Burns in London.
(Globe and Mail. September 6th, 2011)



                                                                                  8
      Why diamonds ?
    Supply does not meet demand and shortage of supply is expected to
     increase further as a result of rising demand and lack of new mines.
    Rough diamond prices are projected to increase significantly driven by
     the surge in demand from China and India, which is growing at a pace of
     30% per annum.




                                                                               9
   Why diamonds ?
                 Diamonds prices from 1960 to 2010.
The 2000’s are seeing the enty of 3 major producers and the reduction of
        De Beers control to 38% of the rough diamond market.




                                                                           10
     Why Namibian marine diamonds ?
    Geologists estimate Namibia total offshore potential in excess of 2 billion carats;
    Highest gem quality content in the world at 95%;
    Highest average rough diamonds price in the word at $ 440 per carat;
     (Sources: RBC Capital Market and Kimberly process Aug 2011);
    More than 50% of the Namibian diamond production is derived from the sea.




                                                        Diamonds from EPL 3403 / May 2011   11
                                                            De Beers Marine production has been
                                                                growing at a constant pace:

                                                                                 De	
  Beers	
  Marine	
  Namibia	
  Produc5on	
  

             1	
  200	
  000	
                                                  IMDH’s	
  MV	
  Ya	
  
                                                                                 Toivo	
  mining	
  
                                                                                    vessel	
  
             1	
  000	
  000	
                                                   deployment	
  
Carats	
  




                800	
  000	
  




                600	
  000	
  




                400	
  000	
  




                200	
  000	
  




                            0	
  
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                                                                                                                                                                                                                                                                            (e)	
  
                                                                                                                            Years	
                                                                                                                                                    12
    Main Asset: EPL 3403 Marine Diamonds



Namibian marine
leases and
production figures




                                           13
        Main Asset: EPL 3403 Marine Diamonds

  EPL 3403: Afri-Can holds 20% and the acquisition of the remaining 80% will be
   completed after completion of the upcoming sampling program recently funded;
  EPL 3403 shows favourable geology and is adjacent to the largest marine diamond
   deposits in the world with a diamond resource exceeding 100 million carats. EPL 3403,
   covers 800 square kilometers and is adjacent to the famous Atlantic One deposit
   (operated by De Beers Marine), which is known to be the largest marine diamond deposit
   in the world, with a resource estimated at about 100 million carats;
  The area hosts the most valuable marine diamonds sold, average price over US $ 450
   per carat;
  The most recent sampling program has covered a 3% footprint of the concession and
   has resulted in the discovery of 3 depositional areas and one prospective area for further
   development;
  Previous sampling by Afri-Can and IMDH have recovered 117 diamonds. The 4 largest
   diamonds were of 2.69, 1.76, 1.60 and 1.30 carats. Several stones weighed over 0.50
   carats;

  At 0.50 carats, the average size is similar to those found in the adjacent concessions and
   the quality is typical to those found off the Namibian coast

                                                                                           14
    Main Asset: EPL 3403 Marine Diamonds
EPL 3403:
•  Location relative to adjacent
  concessions;
•  Black dots represent the
  depositional areas that cover 3%
  of the concession footprint;

•  Adjacent EPL’s owned by IMDH.


ML 47, 43, 44 and 128 (C):
•  Concessions owned by Namdeb,
  a joint venture between the
  Namibian Government and
  De Beers, operated by De Beers
  Marine;

•  ML 47, (Atlantic One deposit)
  Production in 2011:
  990,000 carats.
   Projected Production in 2012:
   1,2 Million carats.
                                           15
     Main Asset: EPL 3403 Marine Diamonds
  4 mineralised area have been
   identified in the southern part of
   the concession, which covers
   over 23 sq. km out of a total
   area of 800 sq. km.
  Combined results:
    •  Area 1: 26 diamonds
       0.56 carat / stone

    •  Area 2: 29 diamonds
       0.49 carat / stone

    •  Area 3: 55 diamonds
       0.11 carat / stone

    •  Prospect: 2 diamonds
       0.45 carat / stone



                                            16
       Main Asset: EPL 3403 Marine Diamonds
Example of geophysical survey. Colour-enhanced side scan sonar image of the sea floor.
EPL 3427 is owned by IMDH.

                                                                   EPL 3403 Area 1




                                                                                         17
         Main Asset: EPL 3403 Marine Diamonds
       The Way Forward
    Afri-Can started a resource delineation program on May 2, 2012. The program
     combines a detailed geophysical survey at a cost of $400,000 (completed May
     2012) and sampling program budgeted at $ 1,6 million;

    The geophysical survey has been completed in May 2012 and will serve to
     prepare the sampling program to be completed during Q4 2012;

    Once the first 200,000 carats of resources are delineated, AFA plans to start a
     trial mining program. Trial mining is anticipated to be conducted during Q1 2013;

    Upon sampling completion, Afri-Can ownership in the EPL will be 100%;
    Trial mining is expected to generate enough cash flow to allow for diamond
     production to commence in 2013;

    The remaining 95% of the license will be explored and sampled;

    Further property acquisitions of nearby EPL’s add more upside potential.

                                                                                    18
           Block J: Resources in development

    Afri-Can successfully completed the first part of its resource delineation
     program by completing three geophysical surveys and three sampling
     programs;

    The program has resulted in starting to establish an Inferred Resource, on a
     small area and with a further potential in Block J;

    The estimated Inferred Diamond Resource in Feature 8 is 154,000 carats in
     1,720,000 m2 at an average grade of 0.09 carats/ m2;

    Within Feature 8 there is a 78,000 carats higher grade zone, measuring
     about 400,000 m2 with an average block grade of 0.20 carat/ m2;

    Geophysical survey data indicate that areas similar to the high grade strip in
     Feature 8 extend to the northern end of Block J for over 20 km;

    Afri-Can will revisit sampling and more detailed work once EPL 3403 starts
     generating cash flows.


                                                                                      19
      HAIB copper- Additional Namibian
                                  opportunities
  Porphyry copper with Historical Estimates drilled by Rio
   Tinto between 1972 and 1975.
   Last Historical Estimates (Behre Dolbear 1996);
         600 million tonnes @ 0.32% Cu
         300 million tonnes @ 0.46% Cu
  Multiple new exploration targets with high grade potential
   have been identified by Teck, showing strong expansion
   potential of the Haib project;
  Molybdenum is present and grades will be tested;

                                               Teck Resources Ltd. is the exploration
                                                operator and holds 70% interest in the
                                                concession. Afri-Can and Deep-South hold
                                                equally the remaining 30%;
                                               Haib hosts Historical Estimate of 4 billion lbs
                                                of copper in situ. Afri-Can’s share represent
                                                15% or 600 million lbs or 8 lbs of copper per
                                                share on a fully diluted basis.



                                                                                                  20
                       Teck’s Results
    Results summary from the 13 diamond drillholes totaling 7,126 m.:
        •     64 metres at a grade of 0.54% Cu,
        •     45 metres at a grade of 0.53% Cu;
        •     132 metres at a grade of 0.40% Cu - 0.023% Mo;
        •     234 metres at a grade 0.37% Cu.
    Copper-moly intersected below the main body:
    Many EDM (early dark micaceous) veins identified with high grade Cu (over 0.50%) near surface and
     below the main body;
    7 newly identified copper alteration visible on surface;
                               133 DDH; Approx 100 x 100m grid; 1 x 1km
                                    630 Million Tonnes @ 0.34% Cu
                                    292 Million Tonnes @ 0.46% Cu
                                                                   RTZ Drilling covered only
                                                                     10% of the footprint




                                       License Bo
                                                    undary

 Source: Teck Resources Ltd.                                                                         21
        Haib copper - the way forward
  Teck Cominco Namibia Limited, a wholly owned subsidiary of Teck
   Resources Limited holds 70% of the project. The remaining 30%
   participating interest is divided equally between Deep-South Mining (PTY)
   Ltd and Afri-Can;
  Afri-Can will exchange its interest in the property for 50% of the common
   shares of Deep-South. Thereafter, Deep-South will seek a listing for its
   common shares on a Canadian Exchange and after that Deep South will
   seek a secondary listing on the Namibian Stock Exchange;
  Upon Deep-South listing, Afri-Can will transfer partially or totally its common
   shares of Deep-South to Afri-Can’s common shareholders through a share
   dividend payment;
  The listing is planned for Q4 2012;
  As part of the listing process, an Independent Valuation Report was
   prepared:
  Discounted sales comparable for similar minerals properties transacted in
   the open market gives a range of value (Market Values) for AFA’s interest in
   the Haib between:
    •  1.3 X to 1.7 X AFA current market Capitalization….
                                                                                     22
                 Investment Summary
 Capitalizing on its vast experience and partnerships
 to develop high quality resources in Namibia
DIAMONDS:
 EPL 3403 is adjacent to Atlantic One, the largest marine diamond deposit in the world operated
by De Beers Marine. Sampling in 2011 demonstrate comparable diamonds on EPL 3403.
 Afri-Can conducted a geophysical survey on EPL 3430 in May 2012, will start a sampling
program in Q4 to delineate resources, followed by trial mining in Q1 2013; Cash Flow 2013.
 Afri-Can accesses the best known marine sampling & mining technologies through partnership
with IMDH;
COPPER:
 Significant interest and value in the Haib copper deposit, in partnership with Deep South & Teck
Corporation.
 Contained copper to AFA’s account to be 8 lbs per share.
 Interest in Haib to be vended into Newco and dividended back to AFA shareholders.
 Highly attractive base case valuation: $ 0.96* / AFA share.
 Seasoned and renowned technical Management and Board of Directors;
 Project development in a politically and economically stable Country with strong local
partnerships. Namibia is an excellent mining jurisdiction.
* RB Milestones independent valuators
                                                                                               23
                                                Corporate information as of August 22, 2012


Year high:                $ 0.24
Year low:                 $ 0.10
Daily average volume:   250,000
Shares outstanding:         82 M
Fully diluted:            106 M
Market Cap:               $ 19 M
Cash in hand:             $ 2M
Debt:                        NIL


Share structure:
-  Insiders:                20%
-  Institutions:            30%




 Directors & Management
 Michael J H Brown: Chairman
 Pierre Léveillé: President & CEO
 Bernard J. Tourillon: Executive Vice-President & CFO
 Howard Messias
 Michael Nicolai
 Richard Foster: Resource Development Manager
                                                                                              24
                   Corporate information
Head office and Corporate office:    Auditors – Canada:
1801 Mc Gill College Avenue, Suite   Raymond Chabot Grant Thornton,
1325 Montreal, QC Canada, H3A 2N4    Montreal
Tel: (514) 846-2133
Fax: (514) 372-0066                  Auditors - Namibia:
                                     Swart Grant Angula, Windhoek, Namibia
E-mail: info@afri-can.com
Web site: www.afri-can.com           Bankers - Canada:
                                     HSBC (Canada)
Corporate office - Namibia:
P.O. Box 22978                       Bankers - Namibia:
Windhoek, Namibia                    Fist National Bank Namibia
Tel: + 264-(0)-61- 306-113           Windhoek, Namibia
Fax: + 264-(0)-61- 306-114
                                     Trading symbol:
Legal counsel - Canada:              Canada: TSX Venture: AFA
Lavery de Billy, Montreal, Quebec    USA: Pink Sheet: AFCMF

Transfer agent:                      Shares outstanding:          83,277,864
Computershare, Montreal, Quebec
London, U.K.                         SEC 12g3-2(b) exemption: file no. 82-3329



                                                                                 25
      Appendix: The Team

    Pierre Léveillé, President & CEO: Over 24 years of experience in the International
     financial sector. Has financed and promoted exploration projects in Namibia since
     1996;

    Peter Looijen: IMDH Marine contractor Managing Director: Over the last 15 years,
     he has designed and operated the best known marine sampling and mining
     technology. During 6 years, they chartered to De Beers Marine, the Mv Ya Toivo,
     considered to be the most efficient mining vessel in the industry;

    Richard “Dick” Foster, Chief Geologist: worked for De Beers Marine for 32 years,
     where he was instrumental in the discovery, off the coast of Namibia, of the largest
     marine diamond deposit ever delineated: the “Atlantic One” deposit;

    Bernard Tourillon, Executive VP & CFO: Involved in Namibian project for over 16
     years, he is a specialist of project Management in that part of the world.




                                                                                            26
     Appendix: Marine Mining Conceptual Economics
Example of a Namibian marine project production model based on data gathered by the mining
vessel Mv Ya Toivo during 6 years of contract mining in Namibian waters

•  Current average Namibian diamond value: US$ 440 per ct (Kimberley process/ RBC Capital Markets)
   vs. US$ 321 per ct in 2010 (Bloomberg 2010);
•  Diamond values are forecast to increase year over year, as demand continue to surpass supply;

•  Diamonds mined in the vicinity of Atlantic One and EPL 3403 are currently sold over US$ 450 per carat;

•  Afri-Can business model is based upon chartering a mining vessel from IMDH;

•  The Historical Vessel mining capacity is 242,000 ct per year, while EPL 3403 geological model indicate
   a potential annual production of about 220,000 carats.
•  Chartering a vessel eliminates the Capital Requirement needed to start of production. The capital costs
   are covered by the daily charter cost estimated at about US$ 125,000 per day;
•  Therefore Afri-Can model presently forecasts:
      •  Diamond value:                                                                       US$ 440 per carat
      •  Diamond royalties and marketing cost:                                                US$ 27 per carat
      •  Direct contracted mining cost:                                                       US$ 230 per carat
      •  Operating profit (EBITDA)        (1):                                                US$ 183 per carat
•  Mining 200,000 ct would take 9 months,
   Monthly Breakdown: Revenues US$ 9.7 M, operating profit(1) US$ 4.1 M.
   Potential revenues US$ 88 M, and potential operating profit(1) of about US$ 36,6 M.
Statements of potential quantity are conceptual in nature. A mineral resource as not been defined yet and it is uncertain that
   further exploration will result in the target being delineated as a mineral resource or reserve.
   (1) EBITDA: Earning before interest, taxes, depreciation and amortization.

                                                                                                                                 27
Appendix: Marine sampling technology
The vessel chartered for the sampling program:
     The Explorer ”Full digital positioning II”;

     Length 104.85 meters and gross tonnage of 6,757 tonnes;

     5 sq. metre sampling drill system with DMS treatment plant 20 tph;

     Sampling down to a water depth of 250 m and through 12 m of overburden /
       30 samples per day;




                                                                                 28
  Appendix

  Marine
 sampling
technology
The 170 tonnes
 5 m² sampler
 on the deck of
“The Explorer”.

  May 2009.




                  29
       Marine sampling technology




Cutting teeth inside the face of the sampler                  A concrete test block, showing the effect of
                                                                        the cutting teeth




                                                                                                             30

     The sample processing plant               The glove box used for sorting the diamonds from the samples
    Appendix: Marine Mining Technology
Mv Ya Toivo:
  Length: 150 metres, gross tonnage: 9,111 tons, Dynamic positioning;
  Treatment plant: 150 tph (could easily increase to 200 tph);
  Most efficient seabed crawler system.




                                                                         31

				
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