Kingsgate Consolidated Limited · ASX:KCN
Kingsgate Consolidated — Diggers & Dealers 2015
25 slides from Kingsgate Consolidated's conference presentation, August 2015
Slide 1: Kingsgate Consolidated Limited
Kingsgate Consolidated Limited Gold producer and developer Diggers & Dealers Presentation August 2015
Slide 2: Disclaimer
Disclaimer Forward Looking Statements: These materials include forward looking statements. Forward looking statements inherently involve subjective judgment & analysis & are subject to significant uncertainties, risks & contingencies, many of which are outside of the control of, & may be unknown to,
Slide 3: Kingsgate Today
Kingsgate Today ASX Listed : Market Cap ~A$150 million Portfolio: Chatree Gold Mine (Thailand) ~130,000ozpa Nueva Esperanza (Chile) - 1.9Moz GEO resource Challenger Gold Mine – nearing end of life but options Bowdens - silver and zinc leverage
Slide 4: Why Kingsgate?
Why Kingsgate? A renewal and re-focus New CEO Back to basics approach Our success and focus is epithermal gold in the Pacific Rim We are in big mineralised systems World class mine – Chatree in Thailand Flagship project – Nueva Esperanza in Chile The plan is to grow from these two beachheads Core ca
Slide 5: Why South America?
Why South America? Highly prospective Produces more gold than Australia Hosts bonanza gold mines Delivered new world class gold/silver discoveries in last 10 to 15 years High value – bonanza epithermal deposits Chile - El Penon, 452Koz GEO* in 2014 Argentina - Cerro Negro, 425 to 475Koz GEO* in 2015
Slide 6: Chile & the Maricunga Belt
Chile & the Maricunga Belt Chile Solares Norte 3.7Moz Favoured mining investment destination, Ranked 13 in Fraser Institute survey Worlds largest copper producer Nueva Esperanza 1.9Moz Ranked 14 in global gold production Maricunga Belt Defined total resources of ~100Moz Epithermal gold styles in the
Slide 7: Nueva Esperanza (100% KCN)
Nueva Esperanza (100% KCN) The Maricunga Belt, Chile
Slide 8: Flagship project - Nueva Esperanza, Chile (100%)
Flagship project - Nueva Esperanza, Chile (100%) History Historic bonanza silver production Consolidation of tenements and resources in 2011 Extensive feasibility work completed 2012-14 Several process routes considered Breakthroughs Gold discovery at Chimberos Lower capex/opex environment Structura
Slide 9: Nueva Esperanza – FY15 achievements
Nueva Esperanza – FY15 achievements Discovery of Chimberos Gold Teterita 0.3Moz GEO Mineral Resources increased 21% to 34.6Mt at 1.7g/t AuEq60 for Arqueros 0.97Moz GEO Chimberos 0.64Moz GEO 1.9Moz gold equivalent Identified high potential gold targets for follow-up. Nueva Esperanza Total Resources G
Slide 10: Chimberos – Gold Discovery
Chimberos – Gold Discovery Chimberos Silver Gold: 20koz Silver: 8.6Moz GEO: 160koz Chimberos Historical Gold: 310koz Silver: 40Moz Chimberos Total GEO: 700koz Gold: 300koz Chimberos Gold Silver: 20.5Moz Gold: 280koz GEO: 640koz Silver: 11.9Moz GEO: 480koz
Slide 11: Nueva Esperanza – What we have
Nueva Esperanza – What we have √ 100% ownership √ Favourable mining investment jurisdiction √ Skills to explore, build, operate √ Inventory of 1.9Moz GEO √ Significant feasibility level work completed √ Initial permitting in place √ Water rights secured √ Power options available √ Identified gold po
Slide 12: Nueva Esperanza – FY16 Plan
Nueva Esperanza – FY16 Plan We are updating economics with an Optimisation study : Design parameters around 2 Mtpa milling and agitated leach; Indicative capital and operating cost estimates; Updated Ore Reserves; and, Relevant information to modify existing permits. Submit permit amendments Explore
Slide 13: Chatree Gold Mine, Thailand
Chatree Gold Mine, Thailand Asian showcase gold mine, 100% Kingsgate
Slide 14: World class mine – Chatree, Thailand (100%)
World class mine – Chatree, Thailand (100%) Proven track record Discovered, developed, expanded Chatree Highly efficient mining of low grade epithermal gold Thailand Produced over 1.6Moz gold Bangkok Outstanding safety and environmental record Thai Gold Belt Exploration Opportunities Underground pot
Slide 15: Chatree Underground Potential
Chatree Underground Chatree Underground Targets – A Deeps Potential Sediment Host A Central Ae1 Ae2 Ae3 Ae4 Ae5 Drilling Targets Chatree Underground Targets – C Deeps C-South – 127,000oz Gold Production >3.0g/t Au Drilling Target Drilling Target
Slide 16: Thailand - Expectation of change
Thailand - Expectation of change Opportunity – exploration option value First mover advantage Highly prospective areas near mine and greenfields opportunities under application New policies – longstanding impediments being removed Moratorium on granting licences since 2008 Permitting for industry is
Slide 17: Challenger Gold Mine, South Australia
Challenger Gold Mine, South Australia
Slide 18: Challenger, Australia (100%)
Challenger, Australia (100%) One million ounce production history Tenacity and good exploration has delivered Delivered on costs in the past 2 years Unit cost reductions greater than 30% A cash contributor in FY15 Nearing the end of current reserve life Current reserves exhausted in Mar Qtr 2016 Sig
Slide 19: Bowdens – Size and Leverage
Bowdens – Size and Leverage Large Mineral Resource 134Moz silver & 255k tonnes of zinc Significant feasibility level work completed Cyclical option value to silver and zinc Reassess the way forward
Slide 20: Kingsgate – the investment opportunity
Kingsgate – the investment opportunity Flagship Project in Nueva Esperanza – 1.9Moz GEO De-risk, add value and advance towards development World Class Mine at Chatree +6.0Moz gold mineralised system (produced and in-situ) Core Capabilities In-house Explore, develop, build and operate Manage
Slide 21: Kingsgate Consolidated Limited
Kingsgate Consolidated Limited Listed: ASX Code : KCN Shares: 224 Million Market Cap: ~A$150M www.kingsgate.com.au
Slide 22: Corporate Profile
Corporate Profile Market Summary Board of Directors ASX Code: KCN Ross Smyth-Kirk Chairman Peter Alexander Non-Exec Director Shares on Issue: 223.6 million Peter McAleer Non-Exec Director Market Cap: A$150 million Sharon Skeggs Non-Exec Director (@ A$0.67/share) Peter Warren Non-Exec Director Substa
Slide 23: Appendix
Appendix Competent Persons Statement: The information in this report that relates to exploration results and data quality is based on and fairly represents information compiled by Mr Ron James who is a member of the Australasian Institute of Mining and Metallurgy and a full time employee of Kingsgat
Slide 24: Carachitas Central – Primary Gold Target
Carachitas Central – Primary Gold Target Follow-up 10m at 2.5g/t gold from 19m at 4,100mRL in hole ESCON-06. Intense silica alteration (SI4) in ESCON-06 is similar to Chimberos Gold and extends for +30m. Prospective target footprint Limited drilling in prospect area.
Slide 25: Chatree - A Social Licence to Operate
Chatree - A Social Licence to Operate . . . . Asia’s Showcase Gold Mine Safety focussed gold mine – 10 years no safety incidents Zero Environmental Incidents ISO Standards on all activities Only mining company granted Social Accountability SA8000 High quality, skilled stable workforce Training focus