Stratos Mining Plc

Brief Overview:

• Multi-million-ounce gold potential
• Multi-billion-pound copper potential 
• Kandoo and Superfield tenements/licenses cover over 27,000 hectares in Philippines 
• Summary Report and recommendations completed (access report in Feed section) 
• Raising £1.5 million at a pre money valuation of £4.5 million to secure Exploration Mining Application and to conduct exploration to obtain first Competent Persons Report 

Location and summary of licenses

Stratos Mining Plc via its subsidiary Stratos Mining Inc. (jointly or severally “The Company” or “Stratos Mining”), has a 60% interest in rights in relation to Exploration Permit Applications (“EXPAs”) over the Kandooo and Superfields tenement areas consisting of two contiguous licenses with a total land area of 27,071 hectares that are located in the municipalities of Lianga, Marihatag, Province of San Agustin, and San Miguel of the Province of Surigao del Sur, Caraga Region (XIII), respectively. The Kandooo tenement covers 17,014 hectares whereas the Superfields tenement has an area of 10,056 hectares. The combined land of the two concessions are among the largest mining concession areas in the Philippines. 

Investment case

Stratos Mining is an early-stage exploration company where preliminary geological work has indicated the presence of gold and copper mineralisation. The long-term fundamentals of copper and gold are both favourable; the price of gold has remained above $1900 per ounce providing favourable economics for gold miners and the demand /supply fundamentals of copper indicate a long-term supply shortage. 

Results of preliminary geological work

Stratos Mining undertook a systematic pit sampling program on a coarse 600m x 600m grid along the southern portion of the Kandooo tenement in order to assess the potential of alluvial gold mineralization. This initial program consisted of 36 test pits, averaging 2.5m in depth before bedrock was reached. The sampling campaign also included an industry-compliant quality assurance – quality control protocol which comprised of one duplicate and one blank sample, included in the sampling stream, for every batch of 20 samples submitted to the assay laboratory. 

Extract from Geological report prepared on the basis of the preliminary geological work (access report in Feed section)

“It is evident from the preliminary exploration results achieved to date that the Kandooo tenement certainly has the potential to host a multi-million-ounce gold deposit(s). Although we have assessed the potential of the alluvial material in this discussion, one must not neglect the potential of the in-situ host rock deposit(s). 

Through continued exploration, including the mapping of the silica float occurrences and the strikes and frequency of stringers/veinlets, a source will be located. This source will invariably host very high gold grades within a limestone host – possibly towards the center of the Kandooo tenement. 

The report continues: 

The author is of the opinion that the combined tenements possibly host nearly 5 million gold ounces contained within both the alluvials and hardrock (as a byproduct from a porphyry Cu deposit). Furthermore, given the Cu grades received to date, a porphyry deposit hosting close to 2 billion pounds of contained copper is highly likely.” 

Geologist’s estimated valuation 

The Geologists preliminary report, dated 1 March 2014 using industry averages to value the inferred gold and copper in the ground provides preliminary estimates of: 

• gold inferred value of $72 million; 
• copper inferred value of $32.13 million; 
• additional gold inferred value as a result of mining copper of $9.37 million. 

This provides an in the ground estimated inferred valuation, after the proposed geological work plan is completed, of $113.5 million. The Company intends to update this preliminary report after the intended exploration works have been completed and to seek to produce a Competent Person’s Report. 

This estimate must be read in the context of all the information provided including (but not limited to) the qualifications in the Geologist’s report and in the Risk Factors set out.