Golconda Gold Ltd · TSXV:GG
Golconda Gold — Galane Gold — Investor Presentation (March 2012)
29 slides from Golconda Gold's investor presentation, March 2012
Slide 1: Management Presentation
Management Presentation March 2012
Slide 2: Forward Looking Statements
Forward Looking Statements Certain information set forth in this presentation contains “forward-looking statements” and “forward-looking information” under applicable securities laws. Except for statements of historical fact, certain information contained herein constitutes forward-looking statement
Slide 3: Galane Gold Summary
Galane Gold Summary Summary Trading Symbol GG:TSX-V • Owner (100%) of the Mupane gold mine in Botswana, in production since 2005 Shares O/S 45,108,000 • No hedges, no NSRs Shares O/S fully-diluted 75,048,733 • Control all prospective ground for gold on the Tati Greenstone belt in Botswana Recent Pri
Slide 4: Management Team
Management Team Philip Condon • 25 years experience in mining industry, focus on gold and base metals • Former CEO of National Mining Company of Oman, Technical Expert & Chief Executive Development Specialist for Freeport McMoran Copper & Gold Inc., Officer and Engineering Manager for Golden Shamroc
Slide 5: Board of Directors
Board of Directors Ravi Sood • Chairman of Feronia Inc., one of Africa’s oldest operating companies and largest employers Chairman (non- • Former CEO of Navina Asset Management a Toronto-based investment exec) firm • Director of several companies in the Agriculture, Mining, and Oil & Gas sectors • C
Slide 6: Botswana Overview
Botswana Overview Strong Economic Environment Stable and Simple Legal System • Ranked as best mining country in Africa1 • Corporate Tax Rate as low as 22% − Political Stability and Legal Stability • 5% Royalty on Gold Sales • Strong GDP growth • IFRS Accounting System • AA credit rating • English La
Slide 7: Galane Operations – The Mupane gold mine
Galane Operations – The Mupane gold mine Type • Conventional open-pit gold mine with mill and carbon-in- Mine Location leach processing Location • Northeastern Botswana in southern Africa • 30 km southeast of the town of Francistown (population of around 100,000) Ownership • 100% of the Mupane gold
Slide 8: Mining Optimization Opportunities
Mining Optimization Opportunities Improvement - Mining Description/Impact Ore road transport • Complete set up of road-going trucks transporting ore to mill on a contract basis Ore dilution • More precise mining of ore to minimize dilution and thereby transport and processing costs Ore cut off grade
Slide 9: Processing Optimization Opportunities
Processing Optimization Opportunities Improvement - Processing Cost Impact (US$M) Cone crusher $1.0M • Increase mill feed tonnage capacity SAG mill load increase $0.05M • Increase mill feed tonnage capacity Operating availability $0.0M • Increase mill availability ( better maintenance planning) Acti
Slide 10: Tenements
Tenements Galane Gold Ltd. Management Presentation 10
Slide 11: Simplified Geology of the Tati Greenstone Belt
Simplified Geology of the Tati Greenstone Belt Galane Gold Ltd. Management Presentation 11
Slide 12: Regional Soil Sampling Gold
Regional Soil Sampling Gold MONARCH TEKWANE MAP NORA GOLDEN EAGLE JIM’S LUCK MUPANE RAINBOW Greenstone belt outline MATOPI Licence boundary MOLOMOLO SIGNAL HILL 15 12 Galane Gold Ltd. Management Presentation
Slide 13: Tati Greenstone Belt Geology & AeroMagnetics
Tati Greenstone Belt Geology & AeroMagnetics 20 kilometres Francistown Total Field AeroMagnetics Geology Directional Filtered AeroMagnetics 13 Galane Gold Ltd. Management Presentation
Slide 14: Proximity of Key Gold Targets to Mill
Proximity of Key Gold Targets to Mill Location of existing Mupane processing and tailings facility Potential for discovery of numerous large gold deposits located within 20 km of existing processing operations 14 Galane Gold Ltd. Management Presentation
Slide 15: Exploration Programme
Exploration Programme Target Cost Description (US$M) Drill and define resource at US$1.9M • Definition and in-fill drilling on known mineralized zones to Jim’s Luck define an NI 43-101 reserve and resource • Drilling of mineralized zones along strike to add to the Resource Tau and Tholo Pit drilling
Slide 16: Low Risk Resource Expansion – Tau and Tholo Pits
Low Risk Resource Expansion – Tau and Tholo Pits • Recent drilling results at the previously mined Tau pit include a 53m intersection averaging 4.55 g/t Au including: – 24 m at 6.57 g/t Au – 15 m at 5.86 g/t Au • Potential for underground mines at Tau, Golden Eagle, and other locations 16 Galane Gol
Slide 17: Low Risk Resource Expansion - Jim's Luck
Low Risk Resource Expansion - Jim’s Luck The Jim’s Luck Project constitutes a ½ million oz exploration target In excess of 7 km of strike of prospective ironstone lithologies - 830 meters has been drill tested - Known low grade mineralization exists over the balance (6km+) Production could com
Slide 18: Jim's Luck – 7km Of Strike
Jim’s Luck – 7km Of Strike Galane Gold Ltd. Management Presentation 18
Slide 19: Jim's Luck – Detail Drilling
Jim’s Luck – Detail Drilling Galane Gold Ltd. Management Presentation 19
Slide 20: Additional Growth Opportunities
Additional Growth Opportunities Monarch Mine (Under Application for Prospecting Licence) Largest historic Gold producer (240,000 oz @ 6+g/t) and mined to 200m below surface Approximately 500,000 tonnes of fines dump at 1.4g/t Au (preliminary estimate) Examine the potential below 200m where lim
Slide 21: Additional Growth Opportunities
Additional Growth Opportunities MapNora (Shashe Mine) Historical operation impeded by the refractory nature of the ore. The Phelps Dodge attempt in late 1980’s to early 1990’s failed due to metallurgical complexities High grade shoots (>10g/t) are continuous down plunge allowing for a Resource o
Slide 22: Additional Growth Opportunities
Additional Growth Opportunities Matopi : • Virgin discovery by Gallery Gold in 1997 as a coincident Gold and Arsenic in soil geochemistry anomaly • Preliminary trenching and drilling show a large but low grade and discrete Ultramafic unit with uniform mineralization e.g. 35m @ 0.85g/t (including 4m
Slide 23: Exploration Plan
Exploration Plan 23 Galane Gold Ltd. Management Presentation
Slide 24: Milestones
Milestones 2011 Complete Review of Org Structure and skills requirements Implement Organisational Restructuring Complete Exploration Plan Carryout Initial Mine Plan Review Identify impediments to performance above plan 2012 Complete Acquisition of Northern Lights Exploration Resolution
Slide 25: Capital Structure
Capital Structure • Share issuance for Northern Lights Acquisition driven by reaching pre-defined compliant measured category resources ounces from the acquired properties • Share issuance to Galane management driven by reaching production and cash-flow targets within 3 years of the public listing N
Slide 26: Capital Structure
Capital Structure # % Common Shares IAMGold Corporation 21,875,000 48.5% Sprott Asset Management 5,875,000 13.0% Other Institutions 5,687,500 12.6% Retail Investors 4,374,000 16.6% BOD and Management 4,195,000 9.3% Total Shares O/S (Basic) 45,108,000 100% Dilutive Securities incl options, warrants,
Slide 27: Investment Highlights
Investment Highlights Immediate Leverage Experienced Operating Exploration Upside to Spot Gold Management • Unhedged gold producer • Control all prospective ground on • Strong operators with the ability • Free cash flow from existing 2016 the Tati Greenstone belt to optimize and expand the mine plan
Slide 28: The Galane Gold logo was designed by an employee in a company-wide contest
The Galane Gold logo was designed by an employee in a company-wide contest. The blue and black bars in the official colours of Botswana represent the hands of Batswana protecting the country’s resources for the betterment of the country and its people. 28 Galane Gold Ltd. Management Presentation
Slide 29: Contacts
Contacts Philip Condon Chief Executive Officer Philip@GalaneGold.com Mobile: +267 72 338 331 Ravi Sood Chairman (non-executive) Ravi@GalaneGold.com Mobile: +1 647 987 7663 Investor Relations IR@GalaneGold.com Phone: +1 416 907 2027 29 Galane Gold Ltd. Management Presentation