Gem Diamonds Limited · LSE:GEMD
Gem Diamonds — Botswana Resource Conference 2010
16 slides from Gem Diamonds's conference presentation, June 2010
Slide 1: Gope - A Unique Diamond Deposit
Gope 25 - A Unique Diamond Deposit Botswana Resource Conference June 2010 1
Slide 2: Agenda
AGENDA 1. 1 Background information on Gope 2. A brief history of Gope 3. SEIA process and update 4. Resource update p 5. Alternative means to develop the deposit being investigated 6. Closing comments 2
Slide 3: Background information – Location
1. Background information – Location • CKGR comprises 54 000km2 • Gope retention licence area 45km2 • This equates to 0.08% of the surface area of CKGR • Gope is located 40 km West of Eastern boundary 3
Slide 4: Gope Site as at June 2010
Gope Site as at June 2010 1. Background Information – Location Abandoned Airstrip Old Shaft Plug Pl Current Pioneer Camp 4
Slide 5: Background information – License history
1. Background information – License history Prospecting permit ((Pre Gem Diamonds)) – Permit number 3/92 issued in 1992 and expired 1999 (allowed to lapse) – Permit number 108/94 issued in 1994 and expired 2001 Retention licence (Pre Gem Diamonds) – Initial retention licence issued 2001 – Second
Slide 6: A brief exploration history – pre Gem Diamonds
2. A brief exploration history – pre Gem Diamonds 1979 Heli-borne survey undertaken 1980 Aeromagnetic survey complete Falconbridge 1981 Gope 25 discovered 1982 Initial drilling of Gope 1983 Falconbridge l b d JV with h De Beers 1985 Incorporation of Gope Exploration Company 1988 Exploration shaft dr
Slide 7: A brief history – Gem Diamonds
2. A brief history – Gem Diamonds • May 2007 – Gem Diamonds acquires Gope • June 2007 – Update to ’98 98 feasibility study & SEIA are initiated • July 2007 – MLA submitted • October 2007 – retention licence suspension is lifted • Februaryy 2008 – update p of ’98 feasibilityy report p compiled p • Ma
Slide 8: SEIA update – Process overview
3. Social & Environmental Impact Assessment (SEIA) update – Process overview • Marsh appointed pp Mayy 07 • Communications strategy Nov 07 • Authorities engagement Dec 07/Jan 08 • Public participation meetings (1) Jan 08 • Scoping report approval April 08 • SEIA submission June 08 – No Fatal Flaws –
Slide 9: Follow up communications with the communities
3. Follow up communications with the communities • Overwhelming community support • Feedback sessions held in • Gope • New Xade • Kaudwane • Lephepe p p Gope Residents 9
Slide 10: Mineral Resource Update - Geology
4. Mineral Resource Update - Geology Scope • Updated d db by C. Palmer l (Gem) • 8 New holes • All De Beers data • New Grade modeling • New Diamond Prices • AG Milling g upside p Results Crater Crater • Model similar volume • Removal of the ledge TKB TKB HK HK • Removal of some outliers • Clean up o
Slide 11: Mineral Resource Update – Diamond Price
4. Mineral Resource Update – Diamond Price Process • Diamonds Di d acidised idi d • Revalued by WWW May 2010 Results • Higher unmodelled value from August g 08 ($167/ct ( from $153/ct) Table 18 : Base, High and Low Average Price Models • Similar modelled value (+5 only) (($162/ct from $161/ct)) Samp
Slide 12: Mineral Resource Update – resource statement (Venmyn)
4. Mineral Resource Update – resource statement (Venmyn) In-situ Volume Density Grade Price % of % of Rock type Tonnage Carats $/ton value (m3) (t/m3) (cpht) (USD/ct) tons value ($mil) VKSE 9,427,653 2.50 23,599,000 30.63 7,229,500 166 50.85 1,200 22% 36% VKMAIN 15,178,007 2.47 37,512,000 20.08 7,53
Slide 13: Gope Open Pit vs Underground Integrated Approach
5. Gope Open Pit vs Underground Integrated Approach possible alternatives • Open Pit – Large capex c$500m Benefits of approach • Given current market • Security of tenure, apply for ML • Given risk profile of Gope • De-risks open pit through green fields • Proves up p AG millingg - liberation • Need
Slide 14: UGINT Concept
5. UGINT Concept • Underground mine • 150tph plant – mimic OP plant • UG access via • vertical shaft or • decline • UG mine • via sublevel open stope • or other • UG mine 2 blocks 5 mil tons each • Once mined UG mine for 3 years • Understanding on diamonds price (c600 000cts) • Have better understan
Slide 15: Closing comments
6. Closing comments • Gope unique • 80m of sand overburden • Inside a game reserve • Remoteness (power, access, water & camp) • Gope challenges • Its uniqueness • Current global project environment • Gope team well received by all in Botswana • Government departments • Local authorities • Local comm
Slide 16: Contact details
www.gemdiamonds.com contact details Haile Mphusu +267 318 2796 hmphusu@gemdiamonds.com 16