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« A Hidden Gem »

« 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. Disclaimers.

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« A Hidden Gem »

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

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

  3. 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.

  4. Country and projects Location • Namibia: • The best investment • jurisdiction in Africa • Marine diamonds: • EPL 3403 • Block J • Copper: • Haib Copper

  5. 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 will start its 2nd sampling program in Q4 to delineate resources, followed by trial mining in 2013; potential Cash Flow in 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. • CORPORATE: • 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

  6. Overview • Diamonds: • Afri-Can is a Canadian company, actively involved in the acquisition, exploration anddevelopment of major mineral properties in Namibia, with a history of offshore diamonddiscoveries. • 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 with the discovery of a new feature covering 18 square kilometres. • Resource delineation sampling program in November 2012 will be followed by trial mining in 2013, potential cash flow in 2013; • 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.

  7. 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: • Rio Tinto • AngloGold Ashanti • De Beers • Areva • Exxaro • Becoming a major oil and gas exploration target. Block J EPL3403 7

  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 entry of 3 major and 3 mid-size 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. Diamond from EPL 3403 / May 2011

  11. Main Asset: EPL 3403 Marine Diamonds Namibian marine leases and production figures

  12. 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. The most recent geophysical survey discovered a new feature covering 18 square kilometres; • 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

  13. 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.

  14. 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 diamonds0.56 carat / stone • Area 2: 29 diamonds0.49 carat / stone • Area 3: 55 diamonds0.11 carat / stone • Prospect: 2 diamonds0.45 carat / stone

  15. Main Asset: EPL 3403 Marine Diamonds The Way Forward: • Afri-Can started a resource delineation program in May 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 enable the discovery of new targets and has served to prepare the sampling program to start in November 2012; • Upon sampling completion, Afri-Can ownership in the EPL will be 100%; • Once the first 200,000 carats of resources are delineated, AFA plans to start a trial mining program. Trial mining is anticipated to start in 2013; • The remaining 95% of the license will be explored and sampled; • Further property acquisitions of nearby EPL’s add more upside potential.

  16. 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 /30samples per day;

  17. Appendix Marine sampling technology The 170 tonnes 5 m² sampler on the deck of “The Explorer”. May 2009.

  18. 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.

  19. 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 2013; • 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….

  20. Corporate information as of November 22, 2012 • Year high: $ 0.24 • Year low: $ 0.10 • Daily average volume: 200,000 • Shares outstanding: 83 M • Fully diluted: 106 M • Market Cap: $ 19 M • Cash in hand: $ 2 M • 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

  21. 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 will start its 2nd sampling program in Q4 to delineate resources, followed by trial mining in 2013; potential Cash Flow in 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. • CORPORATE: • 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

  22. For the complete presentation please visit: WWW.AFRI-CAN.COM

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