3. Corporate Snapshot
Share price (at Oct 28, 2011) ₮4900
Share price (USD at Oct 28, 2011) US$3.52
Shares outstanding 19.06 m
Market capitalization US$67.05m
Cash (at Dec 31, 2010) US$0.18
Debt (at Dec 31, 2010) US$3.40
Enterprise value US$70.27
56.5% 10.0%33.3% 0.2%
Capitalization 3-month share price performance
Key shareholders
BEU HoldingsKhanate
Resources
Holdings
Other
shareholders
4. CURRENT LICENSES AND OPERATIONS
The company holds 6 mining licenses. The
most important is the Delgerkhaan fluorspar
deposit estimated at 9.6 million tons.
Although fluorspar production ceased in 2008,
the company is in the process of restarting the
mine.
The company operates a small coal mine which
produces coal for the local heating plant.
5. DELGERKHAAN DEPOSIT
The deposit lies 400km east of UlaanbaatarThe deposit lies 400km east of Ulaanbaatar
Rail spur at Baganuur is 270 km away
•200km by paved road
•70 km by high grade gravel road
•Alternatively the rail spur at Bor-under is 260km away by dirt road
Rail spur at Baganuur is 270 km away
•200km by paved road
•70 km by high grade gravel road
•Alternatively the rail spur at Bor-under is 260km away by dirt road
At over 9 million tons the Delgerkhaan deposit is the largest deposit measured
with a 43-101 complaint resource in Mongolia.
At over 9 million tons the Delgerkhaan deposit is the largest deposit measured
with a 43-101 complaint resource in Mongolia.
An on-site flotation plant would allow utilization of lower grade ore to produce
acidspar and also significantly decrease transportation costs
An on-site flotation plant would allow utilization of lower grade ore to produce
acidspar and also significantly decrease transportation costs
6. END USES OF FLUORSPAR
Metspar- most common application is use as a flux
in steelmaking.
Use as a flux is declining and mainly used in old soviet
steel mills.
Acidspar- generally over 97%
HF used to produce Hyrdofluoric Acid and other
Used to make Aluminum Fluorite which is used in
aluminum production
Many other applications including teflon, welding rods,
etc.
9. CHINESE FLUORSPAR PRODUCTION
China has dominated worldwide production for the last few decades
In 2010 China imposed an export quota on fluorspar in an effort to
protect its declining reserves. This lead to a major spike in prices
Chinese production continues to decline. Through the first six
months of 2012, Chinese exports are down 30 percent compared to
that same period last year
Consolidation- The government has announced that over 2000
companies will be reduced or merged down to 20 approved
companies. This will be accompanied by a crackdown on illegal
mining and the revocation of many licenses.
Recent reports indicate that imports of Mongolian raw materials are
on the rise to use as feed for existing Chinese beneficiation plants
and that China could become a net importer of fluorspar in the near
future.
10. MONGOLIAN FLUORSPAR PRODUCTION
Production of approximately 400,000 tons per
year with the bulk being unprocessed metspar
Dominated by JV between Mongolian and
Russian government known as “Monros”
Large potential for future growth will be
determined by
Discovery of new deposits
Reopening of old mines
Capital for beneficiation plant infrastructure
Transportation logistics
11. FIREBIRD’S INVOLVEMENT
In 2011, Firebird bought out majority
shareholder Petrovis and took control of the
company
Firebird installed new directors and began
holding regular board meetings
Management has been upgraded with CFO in
place and a mine manager with over 20 years
underground mining experience scheduled to
come on board by the end of the year.
12. RESTRUCTURING ACTIONS
A complete legal due diligence has been
carried out and action has been taken to rectify
all previous legal issues
BEU engaged Ernst & Young to carry out an
international audit for the last two years of
financial statements and is working to become
IFRS compliant.
A successful drill program has been carried out
to verify the deposit at Delgerkhaan
13. DRILL PROGRAM - PREVIOUS DATA
Russians drilled 439 holes from 1970 through
1990.
A total of 88,196.7m during that time
Most of the Russian drill data is complete
although core recovery was only 74%
New drill program drilled a total of 1729.6m
The deepest hole drilled reached 543 meters
14. BERKH UUL DRILLING MAP
• Blue points 2011
Micromine drilling
• Red points Russian
drilling
Red lines- fluorite
veins
Green lines - basalt
dykes
Blue lines- faults
15. RECENT DRILLING
7 recent holes where drilled in the license area.
6 Micromine twin holes.
Drill program was designed by Micromine to
ascertain whether the Russian data is accurate
enough to create a 43-101 report.
1 exploration hole was also drilled.
17. DRILLING DATES
Hole IDHole IDHole IDHole ID Date startDate startDate startDate start Date EndDate EndDate EndDate End
C-239twn 17/09/11 23/09/11
C-157twn 24/09/11 27/09/11
C-193twn 2/10/11 9/10/11
C-193twn continued 13/10/11 20/10/11
C-260twn 10/10/11 13/10/11
C-217twn 20/10/11 22/10/11
C-219twn 22/10/11 30/10/11
BRHDD001 30/10/11 5/11/11
18. 43-101 REPORT
Micromine, an Australian company has recently
completed the report.
Report shows a total resource of 9.6 million
tons
6.6 million of this is indicated resource and
3 million is inferred
The average grade is 33.7%
20. FUTURE PLAN
Currently the company is comparing bids for a
prefeasibility study
After the prefeasibility study is complete, we will
decide if additional drilling is needed
Next the company will carry out a feasibility study
Finally the mine itself will be rebuilt
It is envisioned that concurrent with the current
mine being rebuilt we will build an onsite
processing plant and possibly sink a new shaft.