Mogul Ventures Corp focuses on exploration, development and production of metals and coal in Mongolia. It has two flagship projects - the Oortsog Ovoo polymetallic project and the Ovdog Hudag-Ikh Ulaan Nuur coal project. The Oortsog Ovoo project has a historic resource of 39,000 tons of contained tin based on exploration work from the 1960s-1970s. Mogul Ventures plans to conduct further exploration work to expand upon and verify the historic resource estimates at Oortsog Ovoo. The company believes the project has significant potential for resource expansion and is one of the largest undeveloped tin deposits globally.
2. THE FOLLOWING INFORMATION may contain forward–looking statements. Forward
looking statements address future events and conditions and therefore involve
inherent risks and uncertainties. Actual results may differ materially from those
currently anticipated in such statement. Forward-looking information is subject to
known and unknown risks, uncertainties and other factors that may cause Mogul
Venture Corp’s actual results, level of activity, performance or achievements to be
materially from those expressed or implied by such forward-looking information.
Such factors include, but are not limited to: uncertainties related to the historical
resource estimates, the work expenditure commitments; the ability to raise
sufficient capital to fund future exploration or development programs; changes in
economic condition or financial markets, regulatory, political and competitive
developments; technological or operational difficulties or an inability to obtain
permits required in connection with maintaining, or advancing projects; and labour
relation matters
*All historical resource estimates quoted herein date from the 1960s and 1970s and are based on prior
data and reports obtained and prepared by previous operators and information provided by the State, using
a Russian classification system not compatible with 43-101. Insufficient data exists to compare Russian
categories to current C.I.M. categories. A qualified person has not completed sufficient work to verify the
classification of the historic mineral resources and as such they should not be considered as current
resources and they should not be relied upon. Mogul Ventures believes these historical results provide an
indication of the potential of the property and are relevant to ongoing exploration. It should also be noted
that mineral resources which are not mineral reserves do not have demonstrated economic viability as
defined by NI 43-101 guidelines.
2
www.mogulvc.com
3. COMPANY OVERVIEW
•
Mogul Ventures Corp. focuses on
exploration, development and
production of metals and coal in
Mongolia
•
Two flagship projects: Oortsog
Ovoo polymetallic project &
Ovdog Hudag-Ikh Ulaan Nuur
coal project
•
NI 43-101 compliant Inferred
Resources of 89.6 million tons of
coal established at Ovdog Hudag
Thermal Coal Deposit based on 14-drill
hole, 2,369 meters drilling program*
The Tin+polymetallic metals project has a historic
resource of 39,000 t of contained tin and a
significant upside potential.The deposit also
appears amenable to open pit mining
•
•
3
The company leverages world-class management,
technical expertise and in-depth local knowledge
to acquire, explore and develop mineral projects in
Mongolia
Capital Structure
Shares Outstanding
Warrants Outstanding
Fully Diluted
*Ovdog Hudag Coal Deposit, Mogul Ventures Corp. – NI 43-101 Report by SRK Consulting (China) Ltd., June 30, 2012
(01.01.2013)
112,499,907
554,195
113,054,102
www.mogulvc.com
4. MOGUL VENTURES TEAM
STEVEN KHAN, MBA, CFA
Executive Chairman & Director
JAMUL JADAMBA , MBA
CEO, President & Director
•
Previous 20 years of experience in all aspects of
the investment industry including executive
positions with regional and national full-service
Canadian investment brokerage houses
•
Formerly a natural resource and mining-focused
investment banker with an extensive capital
raising background, servicing worldwide
companies, especially in Mongolia
•
Focused on strategic corporate and business
development as well as resource and venture
capital financing during the last decade
•
Former Director and co-founder of the Metals
& Mining Group at Rodman & Renshaw LLC.
•
Native Mongolian with well-established
relationships with influential business and
government leaders in Mongolia
•
Extensively writes and speaks on topics of
Mongolian economy, development and politics
for organizations such as Oxford Analytica,
Institutional Investor and Business New Europe
•
•
4
Holds Director and Executive Officer roles in a
number of public and private resource
companies
Successfully completed major corporate
development initiatives both domestically and
internationally including in Japan, Korea and
China
www.mogulvc.com
5. MOGUL VENTURES TEAM
MICHAEL HAWKINS, MAusIMM
MAZEN HADDAD
Director
Director
•
Over 30 years of exploration experience in
Mongolia, PNG, Indonesia, Australia, North
America and Latin America.
•
Formerly CEO and President of East Asia
Minerals Corporation. During his tenure at East
Asia, Michael and his team discovered multimillion ounce gold deposits in Indonesia as well
as closed an unprecedented Mongolian uranium
transaction
•
5
Michael has a proven track record for discovery
of high-grade deposits and has been directly
involved in the greenfield exploration, discovery
and development (pre-feasibility and feasibility
studies) of several million ounces of gold in the
Asia-Pacific region.
A seasoned investor and financial professional,
Mazen is currently a Director of Argex
Titanium Inc, a publicly listed exploration
company that is entering into the
development stage for its flagship project.
•
Formerly President of Township Capital Inc.
from 2005 until 2010.
•
Previous to that, he was Chairman of SGI
Properties Canada Fund L.P., a private real
estate investment trust (REIT) focused on
residential real estate in Montréal as well as
Vice-President of SGI Capital Corp., a private
investment company.
•
Mazen received a B.A. degree in economics
from Emory University of Atlanta, Georgia.
Previous to that, he was the Mongolia Manager
for AngloGold Ashanti.
•
•
www.mogulvc.com
6. MOGUL VENTURES TEAM
DAVID A.TERRY, Ph.D., P.Geo.
Senior Technical Advisor
•
•
Director of and advisor to several publicly-listed mineral exploration companies
•
Specializes in public company management, strategic planning, finance, advanced project evaluation,
identification and acquisition of opportunities, design and implementation of effective and cost-efficient
exploration programs
•
6
Over 20 years of business experience in the natural resource sector, focused primarily on exploration of
precious and base metal deposits in North and South America.
Held positions with a number of senior mining companies including Boliden Limited, Westmin Resources
Limited, Hemlo Gold Mines Inc., Cominco Limited and Gold Fields Mining Corporation
www.mogulvc.com
7. MONGOLIA OVERVIEW
•
•
Strategic location
• Next door to the biggest consumer of commodities in the world – China
•
Mining is the most important sector:
• “Contributes 30% of GDP and 70% of exports”(1)
•
Favorable political environment:
• Mongolian Government focused on the long-term development of resource-related
sectors and favorable policies towards business and foreign investments
•
Stable business-friendly democracy:
• 20+ year history of uninterrupted peaceful and democratic government
•
7
Recognized as the home of some of the world’s largest natural resource deposits
including coal, gold and copper
Homogenous country with minimal risk of ethnic or religious conflict
Source: (1) the Ministry of Mineral Resources & Energy of Mongolia
www.mogulvc.com
8. MONGOLIA: MINING INDUSTRY OVERVIEW
Mongolia is poised to become one of the fastest growing
economies in the world in the next two decades
•
•
Market Cap of publicly traded
companies with assets in Mongolia,
including non-Mongolian junior mining
companies: $30B+(3)
•
Investment Capacity of Mongolia’s
mining industry (5 years): $25 - $30B(4)
•
6,000 known mineral occurrences(5)
•
8
Mining industry size: 30% of GDP(2)
80+mineral deposits found recognized
as economic by the Mineral Resources
Authority of Mongolia(6)
Sources:
(2) the Ministry of Mineral Resources & Energy of Mongolia
(3) Bloomberg
(4) How much capex the country can absorb given known development projects. Statement made by the former Prime Minister Bayar
(5), (6) The World Bank report on “Mongolian Mining Sector: Managing the Future”
(7) National Statistics Bureau
www.mogulvc.com
9. TIN MARKET OVERVIEW
According to LME, Tin (Sn) is the only industrial metal with ongoing
physical supply deficits for 2013
•
•
9
As growth in electronics manufacturing shifted from the West to the East, Asia has emerged
as the leading consumer of Tin
Not surprisingly, China is both its biggest producer and consumer
www.mogulvc.com
10. TIN USAGE
•
Over 50% of Tin is used as a solder.
Emergence of lead-free solders has
boosted demand
•
Tinplate’s share (tin coated steel, such as
in cans and containers) has come down
significantly
•
There is an increasing trend of tin usage
for various chemical and industrial
applications such as:
•
Stabilizer for PVC plastics
•
Lithium-ion batteries
•
Cutting-edge technologies such as
carbon nanotubes and graphene
•
Solar cells, acid batteries and electric
car batteries
•
10
Tin Usage
Various chemical catalysts
Source: ITRI
www.mogulvc.com
11. TIN PRODUCTION
Top Ten Producers in 2012
Ranking Company
Production, tonnes % change
1 Yunnan Tin (China)
69,760
24.20%
2 Malaysia Smelting Corporation
37,792
-6.10%
3 PT Timah (Indonesia)
29,600
-22.40%
4 Minsur (Peru)
25,399
-15.90%
5 Thaisarco (Thailand)
22,847
-4.30%
6 Yunnan Chengfeng (China)
16,600
7.60%
7 Guangxi China Tin (China)
14,034
-9.60%
8 Metallo Chimique (Belgium)
11,350
13.40%
9 EM Vinto (Bolivia)
10,800
-1.50%
7,000
-18.60%
10 Gejiu Zi-Li (China)
•
•
•
•
•
11
Most of Tin production is from underground mines. Estimated cash costs for a typical
underground mine with 1% grade is ~$20,000/t1
10% of world mine production comes from the San Rafael underground mine in Peru (owned by
Minsur) which is slated to run out of ore within 4 years2. Small and artisanal mines, which account
for ~100ktpa of global mine supply, are being closed as well
Open pit production is in a small minority, but has advantage as estimated cash costs at 1% grade
are under $10,000/t1
7 out of 10 top producers have experienced production volume declines in 20123
Indonesia, which supplies 40% of globally mined tin, has tightened regulations resulting in a 90%
reduction in exports 4
Source: (1) Greenfields Research (2) Minsur (3, 4) ITRI
www.mogulvc.com
12. TIN SECONDARY SUPPLY
Secondary Recycled Tin Production
•
•
Not surprisingly, China again is the
biggest recycler
•
12
Including alloys, more than 30% of
world tin consumption is from
recycled tin
Tin recycling is likely peaking or has
peaked
Source: ITRI
www.mogulvc.com
13. TIN MARKET
Actual and Inflation-Adjusted Prices
Historic and Forecasted Demand
•
•
13
In early 2011, Tin prices hit a high of over $32,000/t
For new mine supplies to materialize, prices are likely to hold or stay above current levels of
about $23,000/t
Source: ITRI
www.mogulvc.com
14. LARGEST UNDEVELOPED TIN DEPOSITS
350,000
250,000
1.0
200,000
0.8
150,000
0.6
100,000
0.4
0.2
Open Pit
14
UG
Tailings
Dredge
Source: SNL Metals Economics Group, Company websites, Mogul Ventures Corp.
Placer
www.mogulvc.com
Jeannie River
Blue Tier
Oortsog Ovoo
Narsiin Khundlen
Oropesa
Mount Pleasant
Mount Garnet
Tongkah
Heemskirk
Rentails
Kokhshetau
Mount Lindsay
Achmmach
Catavi Tailings
Pravourmiiskoye
Xitian
0
Grade (%)
1.2
50,000
Contained Sn (mt)
300,000
15. PUBLIC COMPARABLES
Company
Kasbah Resources
Consolidated Tin Mines
Project
Kasbah
Gillian
Pinnacles - Wafer
Pinncales - Hartog
Deadmans Gully
Windermere
Jeannie River
Location
Main Mineral
Mogul Ventures
Venture Minerals
Heemskirk
Oortsog Ovoo
Mt. Lindsay
Grade
Tin
Australia
Tin
Australia
Mongolia
Australia
Tin
Tin
Tin/Tungsten
135,000 t1
23,409
5,540
1,085
1,967
11,566
13,440
0.90%
0.78%
0.41%
0.51%
0.49%
0.55%
0.60%
57,007
Morocco
TOTAL 2
Stellar Resources
Resources
Mkt Cap
Proposed
Economic
(10/23/13) Mining Method Interest
0.64%
48,000 t
3
39,200 t
4
38,000 t
6
$61M
100%
$14M
1.10%
UG
Open Pit
100%
$12M
UG
100%
0.65%
5
N/A
Open Pit
100%
0.30%
6
$56M
Open Pit
100%
1 JORC compliant resources: Inferred 93,000 t, Indicated 42,000 t
2 JORC compliant resource, included Indicated and Inferred
3 JORC compliant resource, included Indicated and Inferred
4 Historic resource based on 41 drill holes and 207 trenches. Does not include credits for other metals present such as Cu, Pb, Zn, Ag, Au, Bi, Ca and Fe
5 Grade doesn't account for other metals credit
6 JORC compliant resource, only credits Sn, Sn-equivalent resource would be 103,000 at average grade of 0.70%
•
•
15
Mogul’s Oortsog Ovoo is one of the top tin exploration projects in the world
Oortsog Ovoo has one of the best grades among known potential open pit mines, further
improved by likely credits for accompanying metals
Source: Company websites
www.mogulvc.com
16. OORTSOG OVOO DEPOSIT
•
Cassiterite (Sn) skarn system with Zn-Pb-CuFe-W-Ag-In
•
Twenty four ore bodies have been identified
and studied to varying extents
•
Historic exploration focused on Sn provided
following results:
•
•
~6.7 Mt @ an average grade of 0.65% Sn,
with no credits for other metals present
•
The deposit was proposed to be mined via
5 open pits to a maximum depth of 150m,
with average stripping ratio of 4:1
•
16
Historic Resources totalling 39,237 t Sn
Metal reported*, making Oortsog Ovoo
an overall top 20 deposit in the
world1
Low Sulphide Sn-dominant (0.25 to 1.13%
Sn) and High Sulphide Zn-Pb-Cu-Fe-Ag-In
zones delineated
The historical drilling had very low core
recovery rates (60%-65%) due to the low
quality of Soviet drills. With the use of
modern drilling equipment, Mogul has
accomplished a higher core recovery rate
which may result in higher detected metal
grades when assayed
*Historical resources - see note on Page 2 of Presentation (1) Based on resource size ranking by ITRI
17. OORTSOG OVOO DEPOSIT
•
•
41 holes were drilled on the three zones
depicted
•
A significant trenching program of 207
trenches was also conducted
•
Rock chip samples taken by Mogul also had
high grades of copper ranging as high as
1.5%, 3% and over 6%
•
A total of eight mineralized zones have
been identified, three of which have had a
significant amount of exploration work
•
17
A significant historical body of exploration
work exists on Oortsog Ovoo
There is excellent potential for expanding
resources through exploring the zones
that have not been explored yet as well as
areas in between zones
18. GROUND MAGNETICS PROGRAM
North Zone
0.5km
Magnetic
Intrusive?
Middle Zone
•
Central Zone
Eastern Zone
1km
1km
•
18 •
The Vertical Gradient image above shows a
strong linear dipole anomaly is associated with
the three main segments which comprise the
Northern Zone, which has been delineated to
date by trenching and drilling over 1.2km of
strike length.
South-Eastern
Zone
The Company contracted a detailed ground magnetic survey in June, 2013 covering a 3.5km
by 4km area.
The RTP results (above) shows a significant number of magnetic anomalies were detected;
many anomalies correlate with known zones while some require follow-up.
19. 2013 CONFIRMATION PROGRAM
•
•
•
•
•
19
Mogul conducted a 1,500 meter confirmation drill program in
October of 2013
The program focused only on the Eastern zone and a segment
of the Northern zone of the system. These areas had the most
detailed historical exploration with the resulting potential for
rapid resource confirmation/delineation and near-term
development
The program’s main objectives were:
•
Parallel drill (twin) select historic holes to confirm and
correlate accuracy of historic work
•
Drill vertical and horizontal step out holes to delineate
mineralized zones in detail
•
Conduct modern assays based on a +90% core recovery
rates, which were achieved. This may result in an upside in
tin grades as compared to the historically reported
resource average of 0.65% Sn
•
Improve the overall geological understanding of the
deposits
Subsequent to this program, we believe that either the
Northern or Eastern zone can be targeted for rapid
exploration and development
Results of this program are still pending and will be reported
once received and interpreted
Photo: Drill rigs at the Eastern Zone of Oortsog Ovoo, magnetite core from drilling
20. GOALS AND OBJECTIVES
•
•
•
•
•
•
20
Ongoing exploration program is confirming and significantly improving on
the historical body of knowledge about Oortsog Ovoo
The project has a significant potential for resource expansion as historic
work was performed only on outcropping zones and only shallow drilling
and trenching were performed
At a total strike length of 5km for visible mineralized zones and magnetic
anomalies identified through the geophysical program, the project has
strong potential for discovery of resources well in excess of historic
resource estimates
The next stage of exploration at the Oortsog Ovoo polymetallic project
will include:
•
Ground and airborne geophysical surveys
•
Additional detailed surface sampling and mapping
•
10,000 m drill program
•
Resource modelling and engineering work
•
Bulk sampling and metallurgical testing
•
Develop a PFS or BFS based on the most advanced mineralized zones
Expand exploration with the aim of making Oortsog Ovoo a 100 kt+ tin
deposit with additional credits for other metals
Move the historically well explored Northern and Eastern zones in to
development and production within 12 to 18 months
Photo: Mogul staff and geologists at Oortsog Ovoo skarn, 2012
www.mogulvc.com
