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Valor Resources Ltd: THE INVESTMENT CASE
INVESTMENT OVERVIEW

Valor Resources advancing polymetallic project in Peru as positive news flow continues

Completion of pre-feasibility study and project costing and economics expected in the third quarter of calendar year 2019.
project area
INVESTMENT OVERVIEW: VAL The Big Picture
Scoping study highlighted a shallow, open-pit, high-grade resource with a low strip ratio.

Valor Resources Ltd (ASX:VAL) has had significant news flow during financial year 2018, driven primarily by the excellent exploration results from its Berenguela Copper-Silver-Manganese Project in Peru.

The company completed 9570 metres of drilling in 66 holes, which yielded exceptional results across the project, including silver grades as high as 5,235 g/t along with copper grades as high as 5.73% over two metres.

Drilling during FY 2018 produced two updates to the project’s JORC resource, the first in October 2017 and the latest resource estimate in January 2018.

In January, the company revealed an 80% increase in total resources, 37% increase in total contained copper and 37% increase in total contained silver.

READ: Valor Resources' measured resource adds confidence to copper silver project

It is worth noting that about 78% of the project’s JORC resources are in measured and indicated categories.

Valor further strengthened its leadership team and board during the year with the appointment of Dr Nicholas Lindsay as a non-executive director.

Dr Lindsay is a geologist with a strong foundation in metallurgy and metallurgical process with over 30 years of experience in the global mining industry and has a long association with South America.

He has been instrumental in shaping the company’s technical program over the past 8 months and has since taken on the responsibility to act as Valor’s technical director in an executive capacity.

In early calendar year 2018, Valor engaged Salva Mining Consultants to complete an updated scoping study on the project, based on the successes in the exploration program, as well as the significant upgrade in the JORC resource estimate.

Importantly, the results of the scoping study were excellent and encouraged the company to proceed to a prefeasibility study (PFS) for the project

READ: Valor Resources moving to the next stage in Peru after positive scoping study results

The scoping study highlighted a shallow, open-pit, high-grade resource with a low strip ratio.

There are three principal work streams to be undertaken in the short term to progress the PFS to completion.

READ: Valor Resources outlines pathway for pre-feasibility study completion

Firstly, process de-risking which will involve scaling up the treatment process to a mini-pilot plant, which will be done independently.

Secondly, process design and infrastructure which will be supported by metallurgical test work.

Thirdly, mine planning which will be supported by geotechnical and rock mechanics studies for pit design and production scheduling, eventually to generate an ore reserve estimate.

While the Berenguela Central deposit is the focus of the PFS, Valor intends to progress its valuable exploration targets which include Corona, Corona West and Berenguela Deeps.

The 2018 drilling program has been redesigned so that the core focus is on the PFS but around 1,000 metres will still be drilled to provide core samples for test work.

READ: Valor Resources raises $3 million from high-quality investors

In August 2018, the company raised $3 million from sophisticated investors in a capital raising led by CPS Capital Group Pty Ltd.

The capital raising was at 1 cent a share, with a 1.5 cent option that expires at the end of 2021 attaching to each share.

If all of the options are exercised, Valor will receive an additional $4.5 million.

Valor expects to complete the drill program and geotechnical study within calendar year 2018.

Metallurgical test work remains on-going and compliments the process design phase.

The pre-feasibility study is expected to be complete in the September quarter 2019.

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