Korab Resources Limited · ASX:KOR
Korab Resources — Investor Presentation (April 2010)
31 slides from Korab Resources's investor presentation, Apr 30, 2010
Slide 1: Investor Briefing
INVESTOR INVESTOR BRIEFING BRIEFING April April 2010 2010 Andrej Andrej Karpinski Karpinski Executive Executive Chairman Chairman www.korab.com.au ASX: KOR
Slide 2: Overview
Overview ASX code: KOR Winchester and GeolSec Market Cap: $31 M (@ $0.40) Issued capital: 78.5 M Top 20: 47% Directors: 33% Directors: Andrej Karpinski Executive Chairman John McKenzie Melrose Project Non Executive Director Rodney Skeet Non Executive Director 1 www.korab.com.au ASX: KOR ASX: KOR
Slide 3: Price History
Price History Trading ex-bonus issue (26cps) 2 www.korab.com.au ASX: KOR ASX: KOR
Slide 4: Company Profile
Company Profile Listed on ASX in August 2005 Magnesium, organic rock phosphate, gold and silver projects in Australia and Europe Demerging development-ready gold projects Bobrikovo gold and silver mine located in eastern Ukraine Melrose gold project located 70km from Leinster in WA Developing non-go
Slide 5: Why Korab?
Why Korab? Demerger 1 of gold assets into two ASX listed entities focusing on: Melrose Gold Mines – Australia Lugansk Gold – Europe, Asia, Africa Korab offers low cost entry into 2 gold IPO’s (Korab shareholders to receive free shares in two demerged entities) 1 Korab to retain low-cost long-life pr
Slide 6: Strategy & Objectives
Strategy & Objectives Key objective is to maximise shareholder returns through project development, exploration and corporate actions Establish Korab as a low cost niche operator in sectors with strong historical growth and a continuing long term growth potential Organic phosphate rock - growing dem
Slide 7: Immediate Aims
Immediate Aims Simplify corporate structure Demerge gold operations into 2 separate listed entities (allow shareholders to optimise their portfolios by providing them with tradeable equity in each project) Demerger benefits: Allow each project to be evaluated by investors and analysts on its own mer
Slide 8: Melrose Project Info.
Melrose Project Info. Granted mining leases Large existing resource base Deposit starts at shallow depth Potential for low cost operation Great exploration upside below existing resource Dedicated technical and management team with experience in open cut and underground gold mine development MELROSE
Slide 9: Melrose Project Location
Melrose Project Location 8 www.korab.com.au ASX: KOR ASX: KOR
Slide 10: Melrose Project JORC Resource
Melrose Project JORC Resource Melrose Mineral Resources (above 0.5g/t cut-off) Measured Tonnes Grade g/t Au Ounces Gold Boundary 684,000 1.36 30,000 Indicated Boundary 3,024,000 1.31 127,000 Inferred Boundary 900,000 1.56 45,000 Bungarra 2,140,000 1.56 107,000 Stirling 404,000 1.31 17,000 Total Reso
Slide 11: Melrose Project JORC Resource Update
Melrose Project JORC Resource Update New data for Boundary deposit Table 2. Boundary Deposit – RC drilling significant intercepts (local grid) HOLE NO. NORTH EAST AZI/DECL. INTERCEPT BDRC02 23250 8910 270/-60 5m at 12.34g/t Au from 145m BDRC03 23275 8925 270/-60 5m at 11.03g/t Au from 120m BDRC11 23
Slide 12: Boundary Deposit at Melrose Project
Melrose Exploration Upside Boundary Deposit at Melrose Project 11 www.korab.com.au ASX: KOR ASX: KOR
Slide 13: Project Timeline
Project Timeline Currently updating the resource statement to incorporate new drilling data (expected completion end of April 2010) Project to be spun-off into a separate company listed on ASX 1 (completion mid 2010) Pre-money valuation AU$19-AU$22 million or AU$55-AU$65 per ounce Indicative IPO iss
Slide 14: Lugansk (Bobrikovo) Project Location
Lugansk (Bobrikovo) Project Location Bobrikovo 13 www.korab.com.au ASX: KOR ASX: KOR
Slide 15: Bobrikovo Project Info.
Bobrikovo Project Info. Well located project (old mining region) Experienced, highly trained local workforce Resource base over 1 million ounces (JORC code) Deposit starts at surface Potential for low cost operation (~US$250/ounce) Great exploration upside below existing resource Dedicated local tec
Slide 16: Bobrikovo Resource Base
Bobrikovo Resource Base Global resource at Bobrikovo mine is over 1 million ounces (20.2 Mt at 1.55 g/t Au) This includes high grade component of 0.5 million ounces (3.7 Mt at 4.30 g/t Au) Bobrikovo deposit remains open at depth and along strike with strong potential for additional resource. Measure
Slide 17: Metallurgy Testing Completed
Metallurgy Testing Completed Metallurgy testing shows very good recoveries of gold Hydrocyclone extraction; yield 72-79% Gravitational extraction; yield 62%, hydrometallurgy with autoclave leaching; yield 97-98% Gravitational concentrate; yield 46-81% (average 60%) tail cyanidation; yield 90%. Total
Slide 18: Bobrikovo Resource Base
Bobrikovo Resource Base Measured resource at Bobrikovo (corresponds to oxide zone) Topography surface 40 m 300 m 17 www.korab.com.au ASX: KOR ASX: KOR
Slide 19: Bobrikovo Timeline
Bobrikovo Timeline Lugansk Gold Ltd (holding company of Bobrikovo project) to be listed on ASX in an IPO raising $40-50 million 1 (completion mid 2010) Pre-money valuation range US$26-US$34 million or US$35-US$45 per ounce Indicative IPO issue price 26-34 cents per share Currently mining and stockpi
Slide 20: Bobrikovo 1st Stage Mine Design
Bobrikovo 1st Stage Mine Design 19 www.korab.com.au ASX: KOR ASX: KOR
Slide 21: Bobrikovo Pit Design (Oxide Zone)
Bobrikovo Pit Design (Oxide Zone) 20 www.korab.com.au ASX: KOR ASX: KOR
Slide 22: Bobrikovo Plant Design (current)
Bobrikovo Plant Design (current) 21 www.korab.com.au ASX: KOR ASX: KOR
Slide 23: Winchester and GeolSec Location
Winchester and GeolSec Location GeolSec Winchester 22 www.korab.com.au ASX: KOR ASX: KOR
Slide 24: Winchester Development – MgO
Winchester Development – MgO Production of MgO and MgO based products Prefabricated commercial and residential buildings Bushfire-proof and cyclone-proof housing Remote area housing Internal and external cladding Structural walls Ceiling, wall and floor panels Extruded and moulded products 23 www.ko
Slide 25: Winchester Magnesium Project
Winchester Magnesium Project Located 65 km from Darwin, all infrastructure on site, Best logistics in Australia, access to rail, port, highway Close proximity to Asian markets Low operating cost potential Large resource base sufficient for 50 year mine life: Indicated Resource of 12.2Mt @ 43.1% Magn
Slide 26: Winchester Timeline
Winchester Timeline BFS completed Test mining completed Mine design completed Process design for Mg production completed Finalising modifications to equipment specifications for MgO production Permitting process partly completed 25 www.korab.com.au ASX: KOR ASX: KOR
Slide 27: Winchester Project Site
Winchester Project Site 26 www.korab.com.au ASX: KOR ASX: KOR
Slide 28: GeolSec Project Info.
GeolSec Project Info. Located 65 km from Darwin port All basic infrastructure (rail, highways, water, power) located near site Excellent local market in northern Australia Easy access to Asia and India Resilient recession-proof market: 17% market growth in USA during 2008/2009 year Strong environmen
Slide 29: Geolsec Timeline
Geolsec Timeline Granted mining lease 1st half of 2010 - permitting, contracting, procurement 2nd half of 2010 – start production and sales 1 Initial sales targets 15,000 to 20,000 tpa Potential for 1st year profit of $5 million (pre-tax) 2 Potential for 2nd year profit of $9 million (pre-tax) 2 1 S
Slide 30: Contacts
Contacts Investor relations - Andrej K. Karpinski, Executive Chairman Tel: (08) 9474 6166 Fax: (08) 9474 6266 Korab Resources Ltd, Korab House Level 2, 100 Mill Point Road South Perth WA 6151 29 www.korab.com.au ASX: KOR ASX: KOR
Slide 31: Important Information
Important Information This presentation has been prepared by Korab Resources Limited (“Korab” or the “Company”). It should not be considered as an offer or invitation to subscribe for or purchase any securities in the Company or as an inducement to make an offer or invitation with respect to those s