Lachlan Star Limited · ASX:LSA
Lachlan Star — Investor Presentation (May 2011)
29 slides from Lachlan Star's investor presentation, May 5, 2011
Slide 1: Unhedged Gold Producer – Investor Presentation May 2011
Unhedged Gold Producer For personal use only World Class Deposits M j Exploration Major E l ti Potential P t ti l Investor Presentation – May 2011 ASX: LSA www.lachlanstar.com.au
Slide 2: Disclaimer
Disclaimer For personal use only This Document is not a Prospectus nor an Offer to Subscribe for Shares. Lachlan Star and its subsidiaries (“LSA”) makes no representation or warranty (express or implied) as to the accuracy , reliability or completeness of this document. LSA and its respective dire
Slide 3: Corporate Overview
Corporate Overview For personal use only 100% interest in a major gold project (CMD) in a politically stable country (Chile) Existing unhedged production of circa 45,000 ounces of gold per annum 1.4 million ounces in JORC resources Underutilised 8Mtpa plant with an estimated replacement cost of >$20
Slide 4: Experienced Management Team
Experienced Management Team For personal use only Board of Directors Chairman Mick McMullen Geologist with 18 years experience in identifying, financing, developing, and mining operations in Africa, Australia, Europe, Asia and South America. Has been an Executive Director of publicly listed mining c
Slide 5: Capital Structure - Consolidation
Capital Structure - Consolidation For personal use only Aligning Lachlan Star’s profile closer to TSX-listed peers with gold producing assets in the Americas Widening range of institutions with mandates to invest in quoted companies with < 100m shares on issue and higher share prices Increasin
Slide 6: Capital Structure
Capital Structure For personal use only Now Post Consolidation (1 for 60) Shares on Issue 3.214 billion 53.57 million Options on Issue Iss e 75 million (2c, (2c 2.5c) 2 5c) 1 25 million ($1.20, 1.25 ($1 20 $1 $1.50) 50) Share price AUD1.3c AUD78c (implied) Market Cap A$42 million A$42 million Enterp
Slide 7: March 2011 Quarterly Highlights
March 2011 Quarterly Highlights For personal use only 8,348 8 348 ounces of gold produced at a C1 cash cost of US$840/oz plus 738 ounces in inventory Installed new pad liner in January, January gold production increasing, increasing cash costs decreasing 67% of the ore mined in the March quart
Slide 8: LSA = Low Cost Gold Exposure
LSA = Low Cost Gold Exposure For personal use only EV / Resource Ounce $350 304 $300 290 $250 $200 183 177 A$/oz 156 149 $150 134 121 Average $137 107 $100 88 87 79 75 64 $50 35 27 $0 Source: Company Releases. Note: Market data as of 12 April 2011
Slide 9: CMD Operations
CMD Operations For personal use only Established mine with long history in highly prospective location 8Mtpa crushing, stacking & elution plant currently operating at 2.4 Mtpa –presently mine constrained 100tpd ball mill and CIL circuit Copper recovery circuit Water rights significantly in
Slide 10: Share Price Catalysts
Share Price Catalysts For personal use only •Resources and Reserves Q2 2011 p •Incremental expansion agglomeration circuit to CIL and •Development plan to increase production •Q2 production results Q3 2011 •Exploration results •Resource and Reserve increase •Dual Dual listing on TSX •Q3 Q pproductio
Slide 11: CMD Production History
CMD Production History For personal use only CMD Gold production by year (ozs) 140,000 120,000 100,000 80,000 60,000 40,000 20,000 0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Past production peaked at 135,000 oz Objective: return operation to >100,000ozpa >1
Slide 12: CMD Mine Plan
CMD Mine Plan For personal use only 157,000 ounces in Probable Reserves Additional Additi l 350,000 350 000 ounces off Inferred I f d Resources R within ithi pits it Potential to expand this through exploration Trend of mining majority of ore from outside the Reserve continuing –only 23% of
Slide 13: CMD Reserves
CMD Reserves For personal use only CMD Reserves May 2011 Probable Reserve Grade Ounces Deposit Tonnes (Mt) (Au) (Kozs) Las Loas 1.2 0.7 25 Toro/Socorro 2.4 0.8 61 Tres Perlas 1.0 0.8 27 Churramata 0.4 0.9 11 Chisperos 0.9 1.1 33 Total 5.8 0.8 157
Slide 14: CMD Resources
CMD Resources For personal use only CMD Mineral Resources (April 2010) above 0.3 g/t Au Indicated Inferred Total Tonnes Grade Ounces Tonnes Grade Ounces Tonnes Grade Ounces Deposit (Mt) (Au) (Kozs) (Mt) (Au) (Kozs) (Mt) (Au) (Kozs) Las Loas 2.9 0.8 73 1.5 0.8 37 4.4 0.8 110 El Sauce 7.1 0.7 156 7.1
Slide 15: Exploration Targets at CMD
Exploration Targets at CMD11 For personal use only Potential Quantity Potential Grade (Mt) (g/t Au) Project lower upper lower upper Churramata 20 2.0 30 3.0 0 70 0.70 0 75 0.75 Tres Perlas 5.0 9.0 0.60 0.67 Veneros 2.5 5.0 0.70 0.80 Toro 20 2.0 50 5.0 0 70 0.70 0 75 0.75 Chisperos 0.2 0.5 0.70 0.90
Slide 16: JORC Resource Growth
JORC Resource Growth For personal use only JORC Resource Ounces 1.6 1.4 1.2 old n Ounces of Go 1.0 0.8 06 0.6 Million 0.4 0.2 - Dec-10 Jan-11 Feb-11 Mar-11 Apr-11
Slide 17: CMD Resources
For personal use only CMD Resources
Slide 18: CMD Location
For personal use only CMD Location
Slide 19: CMD Copper Potential
CMD Copper Potential For personal use only Located immediately adjacent to Teck Andacollo mine Teck deposit hosts resources of 535 Mt grading 0.37 % Cu and 0 12 g/t 0.12 /t Au A Teck have recently commissioned their 20Mtpa concentrator and announced a study into doubling production Limited c
Slide 20: CMD Copper Potential – Teck and CMD
CMD Copper Potential For personal use only Teck and CMD Claim Boundary Oxide Copper in Teck Pit
Slide 21: CMD Copper Potential – Oxide copper in pit wall
CMD Copper Potential For personal use only Oxide copper in CMD pit wall
Slide 22: CMD Operation
CMD Operation For personal use only Plant Churrumata Pit Churramata Pit Leach Pad Tres Perlas Pit Las Loas Pit
Slide 23: CMD Operational Improvements
CMD Operational Improvements For personal use only New leach pad liner installed on Pad Mining of Mariposa Vein where it 3b intersects the Churramata pit Significantly improving leaching rates Higher grade material Improvements of leaching rates brings Cash flow effect to be seen in Q2 and f
Slide 24: CMD Operational Improvements
CMD Operational Improvements For personal use only New pit developed at Toro deposit Purchased and hired additional drill and blast capacity Fourth ore source D+B has been the mine bottleneck Will enable production rates to be Will enable higher total movement increased rates
Slide 25: CMD Operational Improvements
CMD Operational Improvements For personal use only Crushing Rate and Crushing+Leaching+G+A g g Cost pd) /t ushing Rate (tp ng+G+A Cost/ 8,000 $14.00 7,000 $12.00 6,000 $10.00 5,000 $8.00 $8 00 shing +Leachin Average Daily Cru 4,000 $6.00 3,000 $4.00 2,000 1,000 $2.00 Crus - $- Oct-10 Nov-10 Dec-10 J
Slide 26: CMD Exploration
CMD Exploration For personal use only Mariposa Prospect Veneros Prospect Typical Manto style mineralisation High grade vein drilled over 400m Attractive target due to: Very limited drilling at depth 1.outcropping mineralisation 2.potential for very low strip ratio 1.5km strike length mapped on
Slide 27: Lachlan Star's Other Assets
Lachlan Star’s Other Assets For personal use only Bushranger (100%, New South Wales) Resource of 185,000 tonnes contained copper Scoping Study indicates economic project – refer below for pre capital (A$98m) results Strategic review ongoing Bushranger Pit Optimisation Results Net Mineral Cu Pr
Slide 28: Share Price Catalysts
Share Price Catalysts For personal use only •Resources and Reserves Q2 2011 p •Incremental expansion agglomeration circuit to CIL and •Development plan to increase production •Q2 production results Q3 2011 •Exploration results •Resource and Reserve increase •Dual Dual listing on TSX •Q3 Q pproductio
Slide 29: For Further Information
Unhedged gold For personal use only production Major World class exploration deposits p potential For Further Information Lachlan Star Limited Lower Ground Floor 57 Havelock Street West Perth WA 6005 Tel: +61 8 9481 0051 Fax: +61 8 9481 0052 info@lachlanstar.com.au www.lachlanstar.com.au