Kingsgate Consolidated Limited · ASX:KCN
Kingsgate Consolidated — Diggers & Dealers 2015
29 slides from Kingsgate Consolidated's conference presentation, Aug 5, 2015
Slide 1: Kingsgate Consolidated Limited – Diggers & Dealers Presentation
Kingsgate Consolidated Limited For personal use only Gold producer and developer Diggers & Dealers Presentation August 2015
Slide 2: Disclaimer
Disclaimer For personal use only 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
Slide 3: Kingsgate Today
Kingsgate Today For personal use only 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 ^ Approximate average of past 3
Slide 4: Why Kingsgate?
Why Kingsgate? For personal use only 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
Slide 5: Why South America?
Why South America? For personal use only 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
Slide 6: Chile & the Maricunga Belt
Chile & the Maricunga Belt For personal use only 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 Epither
Slide 7: Nueva Esperanza (100% KCN) – The Maricunga Belt, Chile
Nueva Esperanza (100% KCN) For personal use only The Maricunga Belt, Chile
Slide 8: Flagship project - Nueva Esperanza, Chile (100%)
Flagship project - Nueva Esperanza, Chile (100%) For personal use only 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
Slide 9: Nueva Esperanza – FY15 achievements
Nueva Esperanza – FY15 achievements For personal use only Discovery of Chimberos Gold Teterita 0.3Moz GEO* Nueva Esperanza Mineral Resources Chimberos 0.64Moz increased 21% to 34.6Mt at 1.7g/t Arqueros 0.97Moz GEO* GEO* AuEq60 for 1.9Moz gold equivalent* Identified high potential gold targets for fo
Slide 10: Chimberos – Gold Discovery
Chimberos – Gold Discovery For personal use only 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 * Mineral Resource
Slide 11: Nueva Esperanza – What we have
Nueva Esperanza – What we have For personal use only √ 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 availab
Slide 12: Nueva Esperanza – FY16 Plan
Nueva Esperanza – FY16 Plan For personal use only 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 per
Slide 13: Chatree Gold Mine, Thailand
Chatree Gold Mine, Thailand For personal use only Asian showcase gold mine, 100% Kingsgate 13
Slide 14: World class mine – Chatree, Thailand (100%)
World class mine – Chatree, Thailand (100%) For personal use only 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 Opportu
Slide 15: Chatree Underground Targets
Chatree Underground Chatree Underground Targets – A Deeps Potential For personal use only 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 For personal use only 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 Perm
Slide 17: Challenger Gold Mine, South Australia
Challenger Gold Mine, South Australia For personal use only
Slide 18: Challenger, Australia (100%)
Challenger, Australia (100%) For personal use only 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 exhaust
Slide 19: Bowdens – Size and Leverage
Bowdens – Size and Leverage For personal use only Large Mineral Resource 134Moz silver & 343k tonnes of zinc+ Significant feasibility level work completed Cyclical option value to silver and zinc Reassess the way forward + Bowdens Mineral Resources table in Appendix
Slide 20: Kingsgate – the investment opportunity
Kingsgate – the investment opportunity For personal use only 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, buil
Slide 21: Kingsgate Consolidated Limited
Kingsgate Consolidated Limited For personal use only Listed: ASX Code : KCN Shares: 224 Million Market Cap: ~A$150M www.kingsgate.com.au
Slide 22: Corporate Profile
Corporate Profile For personal use only 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 No
Slide 23: Appendix – Competent Persons Statement
Appendix For personal use only Competent Persons Statement Nueva Esperanza: 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 Metallurg
Slide 24: Nueva Esperanza
Nueva Esperanza For personal use only Nueva Esperanza Project Total Mineral Resource (0.5g/t gold equivalent cut-off) Tonnes Au Ag Au Eq60. Ounces (moz) Deposit Category (Million) (g/t) (g/t) (g/t) Au Ag Au Eq60 Ag Eq60 Measured - - - - - - - - Indicated 14.1 0.35 88 1.82 0.16 39.9 0.82 49.4 Arquero
Slide 25: Chatree
Chatree For personal use only Chatree Ore Reserves as at 30 June 2014 (>0.35g/t gold cut-off grade) Gold Silver Gold Silver Tonnes AuEq Source Category Grade Grade Contained Contained (million) (g/t) (g/t) (Moz) (Moz) (Moz) From Pits Proven 32.7 0.88 9.9 0.93 10.4 1.01 Probable 12.0 0.77 7.7 0.30 3.
Slide 26: Challenger
Challenger For personal use only Challenger Ore Reserves as at 30 June 2014 Gold Gold Tonnes Source Category Grade Contained (million) (g/t) (‘000 oz) From Mine Proven 0.06 5.63 20 Probable 0.78 5.78 140 Challenger Total Total 0.84 5.77 160 Challenger Mineral Resources as at 30 June 2014 Gold Gold T
Slide 27: Bowdens
Bowdens For personal use only Bowdens Mineral Resources as at 30 June 2013 (30g/t AgEq cut-off grade) Grade Contained Metal Category Tonnes Silver Lead Zinc AgEq g/t Silver AgEq Lead Zinc (million) g/t % % (Moz) (Moz) (kt) (kt) Measured 23.6 56.6 0.31 0.41 74.5 43.0 57 72 97 Indicated 28.4 48.0 0.27
Slide 28: Carachitas Central – Primary Gold Target
Carachitas Central – Primary Gold Target For personal use only 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. # See ASX
Slide 29: Chatree - A Social Licence to Operate
Chatree - A Social Licence to Operate . . . . For personal use only 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 wo