Grafton Resources Inc · CSE:GFT
Grafton Resources — Siberian Goldfields — Investor Presentation (October 2011)
32 slides from Grafton Resources's investor presentation, October 2011
Slide 1: Gold in Russia
“Building a significant precious metal business” Gold in Russia “On the road to production: 2013” October 2011
Slide 2: Disclaimer
Disclaimer This Information is provided to you, as a sophisticated professional investor for the sole purpose of providing preliminary background financial and other information to enable recipients to review the business activities of Siberian Goldfields Limited. This Information and any other mate
Slide 3: Siberian Goldfields Ltd (“SGL”)
Siberian Goldfields Ltd (“SGL”) Background • SGL was established as a private corporation by Dragon Group and its Russian partners to acquire gold projects in the prospective mineral regions of Eastern Siberia. Initial Acquisition • SGL holds a controlling interest in the high grade Zhelezny Kryazh
Slide 4: Siberian Goldfields Ltd – Corporate details
Siberian Goldfields Ltd Corporate details • Issued Shares ‐ Oct 2011: 101.2 million • Major Shareholders: Dragon Group Great Russian Ventures Endeavour Mining Grafton Resources • SGL owns 51% of the Russian registered company Vismut which in turn holds 100% of the mining license over ZK, valid to 20
Slide 5: Corporate Structure
Corporate Structure Siberian Goldfields Limited (BVI) Itasce Services Limited SGL has the right to 51% 49% acquire 85-100% in Emelido Limited Emelido Limited (Cyprus) 100% ZAO Vismut (Russia) 100% Zhelezny Kryazh Licence (Russia) Confidential | Siberian Goldfields Limited | October 2011 5
Slide 6: Project Location
Project Location Magadan Krasnoyarsk Novosibirsk Blagoveshchensk Irkutsk Manzhouli Vladivostok China Mongolia Confidential | Siberian Goldfields Limited | October 2011 6
Slide 7: Russian Gold Industry
Russian Gold Industry • Current gold production around 165tpa, world’s 4th Global Gold Reserves (tonnes) largest producer and ranks #3 in terms of gold 8000 7000 reserves. 6000 5000 • Two undeveloped giants – Sukhoi Log with a 4000 resource between 60‐95 million ounces, Natalka 40 3000 2000 million
Slide 8: Chita at a Glance….
Chita at a Glance…. Small Population (1.2m) Strategically Located • Huge natural resources – rich in metals, large gold, copper, iron ore, molybdenum and uranium deposits. • 90% of Russian uranium production comes from Krasnokamensk, a 2hr drive from ZK. Zhelezny Kryazh • Large Potential for further
Slide 9: Selected Mineral Developments in Chita
Selected Mineral Developments in Chita Confidential | Siberian Goldfields Limited | October 2011 9
Slide 10: Rail infrastructure in Chita
Rail infrastructure in Chita Norilsk Nickel Norilsk Nickel Norilsk Nickel Berezovskoe Novoshirokinskoye Xiyang Group Highland Gold Zhelezny Kryazh Baley Mine Norilsk Nickel Highland Gold Mongolia China Confidential | Siberian Goldfields Limited | October 2011 10
Slide 11: Regional map
Regional map Xinyang Group is developing a $500m iron ore mine with a rail link to Savkino- China – potential iron ore offtake 11
Slide 12: Zhelezny Kryazh License
Zhelezny Kryazh License • 33sq km landholding located in one of Ore Zones of ZK District Russia’s most prolific mineral districts. • Gold discovered in 1966. Since then, various sporadic exploration campaigns have been conducted, largely by State enterprises. • 520,000 oz (JORC Compliant) already ou
Slide 13: Zhelezny Kryazh Mineral Resources
Zhelezny Kryazh Mineral Resources – (Gold Only based on spring 2011 figures, JORC Compliant) Primary Ore Oxide Ores Total Ore Type/ Cut‐Off Tonnes Grade Tonnes Grade Total Gold Category High Grade Au (‘000) Au (g/t) (‘000) Au (g/t) (oz) Measured 1 g/t 132 4.87 41 7.65 30,757 Indicated 1 g/t 3,167 3.
Slide 14: 2010/11 Exploration Program
2010/11 Exploration Program • The results of winter exploration in 2010/11 have so far increased the resources at the Severnaya and Zones 2&3 by approximately 230,000 oz in the C1 and C2 Categories. • Internal analysis indicates that additional oz will be delineated on completion of the current summ
Slide 15: Southern Ore Zones of the ZK district
Southern Ore Zones of the ZK district 15
Slide 16: Panoramic View Illustrating Potential Additional Ore Zones
Panoramic View Illustrating Potential Additional Ore Zones in the immediate vicinity of current ZK resources Confidential | Siberian Goldfields Limited | September 2011 16
Slide 17: Zhelezny Kryazh License continued…
Zhelezny Kryazh License continued… Severnaya Area 2011 trench sampling: high grade linear zones identified in Zone 3 Severnaya Area Zones 2&3 e.g. grades of up to 188g/t Confidential | Siberian Goldfields Limited | October 2011 17
Slide 18: Zhelezny Kryazh Iron Ore
Zhelezny Kryazh Iron Ore • 60.6 million tonnes of C₁ and C₂ categories Iron Ore estimated as of 1960’s. • Iron Ore grades vary from 49‐ 56%. • Only 20% of the Iron Ore bodies fall in the contours of the gold ore bodies. • Potential wider iron resources within license. • Dragon GeoResource digitized
Slide 19: Zhelezny Kryazh Photos
Zhelezny Kryazh Photos Geological Camp Laboratory Laboratory Core Logging Drill Cores Drill Core Storage Camp Site High Grade Magnetite 19
Slide 20: Zhelezny Kryazh Photos
Zhelezny Kryazh Photos Core Drilling Trenching at ZK Drilling team Confidential | Siberian Goldfields Limited | October 2011 20
Slide 21: Scoping Study: 700,000 tonnes of annual ore production
Scoping Study: 700,000 tonnes of annual ore production • Over 520,000 oz JORC compliant gold resource already well documented and verified. • Supports an initial 70,000 oz annual open pit gold production, with around 300,000 tonnes of high grade (62% Fe) iron ore concentrate as a by‐product. • Full
Slide 22: Proposed Project Flow Sheet
Proposed Project Flow Sheet 22
Slide 23: Proposed ore processing
Proposed ore processing • Process is essentially a combination of standard gold and iron ore processing methods. • Standard crushing and milling will be followed by gravity gold removal. • A flotation circuit is planned to separate the gold ore from iron ore. • A cyanide leach and carbon adsorbtion
Slide 24: Bismuth market
Bismuth market World Refinery Production and Reserves (tonnes) Properties Country Production Production % of World Reserves • One of the lowest melting points 2009 2010 Production among metals. Bolivia 50 150 2% 10,000 Canada 50 100 1% 5,500 • Expands on freezing. China Kazakhstan 6,000 150 5,100 14
Slide 25: Dragon Group
Dragon Group • Dragon is a privately owned group of companies with interests in international mining finance and management and has offices in London and Moscow. • Dragon has successfully developed and listed a number of significant mining companies on the AIM market in London and the TSX in Toronto
Slide 26: Technical Management
Technical Management Vadim Karasik – General Director and Project manager Vadim Karasik is the General Director and (together with Dragon) the co‐founder of Dragon Georesource LLC, a Moscow‐based private company with interests in mining finance and project management in Russia. Prior to this Mr Kara
Slide 27: Technical Advisors: Maelgwyn Mineral Services
Technical Advisors: Maelgwyn Mineral Services Stephen Flatman – Metallurgical engineer Stephen Flatman has a BSc in Mineral Technology from the Royal School of Mines, Imperial College London and has over 30 years of experience in mineral processing. He has spent 24 years in a variety of metallurgica
Slide 28: Corporate Management
Corporate Management Tony Williams Tony Williams is the founder and Chairman of the Dragon Group, a privately owned group of companies with interests in international mining finance and project management. Prior to founding the Dragon Group in 1995, Mr Williams spent nine years in investment banking
Slide 29: Project Timeline
Project Timeline Task Name Q2/11 Q3/11 Q4/11 Q1/12 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Resource Model Update Registration of New Reserves Metallurgical Testwork Design and Permit Documents Submission and Approval BFS Document Detailed Design and Project Management Construction Mining Zon
Slide 30: Investment Case
Investment Case • Strong demand for gold amid concerns over global structural imbalances, inflationary concerns and currency devaluations Strong market fundamentals • Continued growth in iron ore market has seen prices hit in excess of $170 per tonne, Iron ore is currently trading around $150/t • Fi
Slide 31: Contact Details
Contact Details Dragon Group/Siberian Goldfields 22 Grosvenor Square London W1K 5LF Tel +44 (0)20 7529 7500 Info@siberiangoldfields.com Moscow office: BC Millennium House 12 Trubnaya street 6th floor, office “K” Moscow 107045, Russia Tel +7 495 775 7307 Chita office: Office 310, building 1 91 Anokhi
Slide 32: Sitting on a gold mine
Sitting on a gold mine Left to right: Andrey Brel, Chief Geologist, Anatoly Kondratyukin – Director, Tony Williams – Director, Vadim Karasik – Director, Nikolai Buldakov - Principal Geologist Confidential | Siberian Goldfields Limited | September 2011 32
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