Kgl Resources Limited · ASX:KGL
Kgl Resources — Kentor Gold — Investor Presentation (July 2012)
36 slides from Kgl Resources's investor presentation, Jul 2, 2012
Slide 1: Kentor Gold Investor Presentation
For personal use only Kentor Gold Investor Presentation July 2012
Slide 2: Agenda
Agenda For personal use only 1. Company Overview 2. Board and Management 3. Murchison Gold Project – Australia 4. Jervois Copper Gold Project – Australia 5. Andash Gold Copper Project – Kyrgyz Republic 2
Slide 3: Company Overview
Company Overview For personal use only Kentor Gold Limited (“Kentor”) is an Australian-based gold explorer and developer with projects located in Australia (Murchison and Jervois) and the Kyrgyz Republic (Andash). Kentor expects to commence gold production in CY2012 through its Burnakura project in
Slide 4: Corporate Structure
Corporate Structure For personal use only KENTOR GOLD 80% 100% Andash Mining Company (Kyrgyz Republic) Jinka Minerals (Australia) 100% 100% 100% Andash Jervois Murchison Gold Copper Copper Silver Gold Gold Lead Zinc Kyrgyz Republic X Jervois X Murchison X 4
Slide 5: Kentor - Resources
Kentor - Resources For personal use only Grade Grade Grade Gold Copper Silver Tonnes (mt) Au g/t Cu% Ag g/t (oz) (t) (Oz) Andash Inferred 0.38 0.93 0.25 11,350 950 Jervois Inferred 11.9 1.3 25.2 150,500 9,700,000 Burnakura Inferred 10.6 1.5 516,000 Gabanintha Inferred 4.5 1.4 203,000 Andash Indicate
Slide 6: Agenda
Agenda For personal use only 1. Company Overview 2. Board and Management 3. Jervois Copper Gold Project – Australia 4. Murchison Gold Project – Australia 5. Andash Gold Copper Project – Kyrgyz Republic 6
Slide 7: Experienced Board
Experienced Board For personal use only John Barr AM, MAICD Chairman, Non-Executive (Former director Oxiana, Transurban, Acacia and Iluka Simon Milroy B.Eng (Mining) Managing Director (Formerly GM Project Development for Pan Aust, former Mining Manager Kingsgate) Hugh McKinnon B.Eng. (Mining) Execut
Slide 8: Senior Management
Senior Management For personal use only Gerard Kelly Patrick Baldock Chief Financial Officer General Manager – Murchison Gold Project Kelvin Russell General Manager Rudy Lennartz Corporate Finance Project Manager – Jervois Project Kylie Anderson Company Secretary Keith Mayes Chief Operating Officer
Slide 9: Agenda
Agenda For personal use only 1. Company Overview 2. Board and Management 3. Murchison Gold Project – Australia 4. Jervois Copper Gold Project – Australia 5. Andash Gold Copper Project – Kyrgyz Republic 9
Slide 10: Murchison Project: Overview
Murchison Project: Overview For personal use only Acquired Jinka Minerals in 2011 Near term cash flow from commencement of production at Burnakura Four stage production expansion process Existing plant and mining infrastructure Significant exploration upside 10
Slide 11: Murchison Gold Project
Murchison Gold Project For personal use only Burnakura 16,000m RC completed Gabanintha 2,000m RC completed 20 open pits and one underground mine 11
Slide 12: Federal North Pit
For personal use only Federal North Pit 12
Slide 13: Alliance Pit
For personal use only Alliance Pit 13
Slide 14: Lewis Pit
For personal use only Lewis Pit 14
Slide 15: NOA and Long Section Showing g/t * m Interval
NOA 7 and 8 Long Section Showing g/t * m Interval For personal use only 15
Slide 16: Four Stage Growth Strategy
Four Stage Growth Strategy For personal use only Stage 1 Refurbish and restart existing CIL Plant Stage 2 Add a heap leach circuit to treat low grade ore Stage 3 Expand plant to 500,000 tpa Stage 4 Flotation of copper gold ore 16
Slide 17: Mining in Reward Pit
Mining in Reward Pit For personal use only 17
Slide 18: Stage 1 - Restart CIL Plant
Stage 1 - Restart CIL Plant For personal use only Expand to 260,000 tpa Commence production in June 2012 Initial Production Rate 24,000 oz gold p.a. Capital cost $14.8m Stage 1 cash cost $1,224 / oz High grade production – 3 g/t gold 18
Slide 19: For personal use only
For personal use only 19
Slide 20: Crushing and Heap Leaching Equipment
Crushing and Heap Leaching Equipment For personal use only Note: Photographs of equipment on site at the Indee mine site 20
Slide 21: Agenda
Agenda For personal use only 1. Company Overview 2. Board and Management 3. Murchison Gold Project – Australia 4. Jervois Copper Gold Project – Australia 5. Andash Gold Copper Project – Kyrgyz Republic 21
Slide 22: Jervois Project: Overview
Jervois Project: Overview For personal use only Copper and base metal project located in Chalcopyrite in drill core from Hole RJ 205 508m – 509m down hole Northern Territory Significant resource with major exploration upside Aggressive drilling program delivering positive results Initial met
Slide 23: Jervois Copper Project
Jervois Copper Project For personal use only 100% Interest Granted Mining License Land Holding 38 km2 12km of prospective strike Outcropping Copper Ore 23
Slide 24: Reward Ore Body Long Section
Reward Ore Body Long Section For personal use only Inferred Copper Resource of 11.9 Mt @ 1.3% Cu and 25.2 g/t Ag 150,500t of contained copper and 9.7 m oz contained silver 24
Slide 25: Exploration Results
Exploration Results For personal use only 2012 Exploration Results 60m @1.3 % Cu, 113.3 g/t Ag JMET 11 33.8m @ 1.79% Cu, 28.5 g/t Ag RJ201 53.5m @ 1.08% Cu, 24.9 g/t Ag RJ202 16.3m @ 1.87% Cu, 55.3 g/t Ag JMET3 10.3m @ 2.1% Cu, 13.3 g/t Ag JMET4 12m @ 3.72% Cu, 40.7 g/t Ag RJ206 4.2m @
Slide 26: Agenda
Agenda For personal use only 1. Company Overview 2. Board and Management 3. Murchison Gold Project – Australia 4. Jervois Copper Gold Project – Australia 5. Andash Gold Copper Project – Kyrgyz Republic 26
Slide 27: Andash: Project Overview
Andash: Project Overview For personal use only Advanced gold-copper project Development ready status awaiting final approval Significant resource & reserve base Potential for further regional consolidation Developing one of the world’s lowest cost gold mines 27
Slide 28: Andash Project
Andash Project For personal use only Feasibility study complete (Mar 2010)1 9.9m @ 7.9g/t Au Independent Environmental Review to 8m @ 6 g/t Au go ahead – Project to proceed once review completed and agreement reached with local community One of the world’s lowest cost gold mines – Low Strip Op
Slide 29: Tien Shan Gold Belt, Talas Valley
Tien Shan Gold Belt For personal use only Talas Valley 29
Slide 30: Andash Project
Andash Project For personal use only 1.6mtpa to 3.2mtpa throughput Simple and conventional open pit and flotation plant 3 stage crush, grind, float process Average annual production: – 70,000 oz Au and 7,400t Cu – High grade concentrate 24.5% Cu and 72 g/t Au No deleterious elements Init
Slide 31: Open Pit and Ore Body
Open Pit and Ore Body For personal use only Wide ore body, bulk mining Outcrops Low strip ratio 0.72:1 Gold Grade (g/t) 31
Slide 32: Andash Long Section through Block Model
Andash Long Section through Block Model For personal use only Low strip ratio Base of pit follows footwall High grade starter pit Gold g/t 32
Slide 33: Project Economics (KGL 80%)
Project Economics (KGL 80%) For personal use only Cost component Phase 1 Phase 2 Cash cost US$29/oz Au (US$/t) (1.5mtpa) (3mtpa) (after Cu credits and royalty) Mining 3.46 3.46 Capital Cost US$96m (1) Processing 8.62 7.09 G&A 3.38 1.69 Base Case NPV US$130m Total 15.46 12.24 – US$1,000/oz Au &
Slide 34: Investment Highlights
Investment Highlights For personal use only Advanced projects with first gold production expected mid-2012 De-risked portfolio with addition of Australian assets Strong exploration upside on all assets Andash project provides further upside: – High grade concentrate highly sought after – Nea
Slide 35: Disclaimer
Disclaimer For personal use only Competent Persons Statements The information in this report that relates to mineral resource estimation for Gabanintha and Burnakura is based on work completed by Mr Jonathon Abbott is a member of the Australasian Institute of Mining and Metallurgy. Mr Abbott has s
Slide 36: For more information contact
For more information contact For personal use only Simon Milroy on +61 7 3071 9003 or visit www.kentorgold.com ASX Code: KGL Level 9, 40 Creek Street, Brisbane, QLD, AUSTRALIA 4000 Fax: +61 7 3071 9008 Forward-Looking Statements: This presentation includes certain “Forward-Looking Statements”. All s