Kingsgate Consolidated Limited · ASX:KCN
Kingsgate Consolidated — Investor Presentation (February 2018)
22 slides from Kingsgate Consolidated's investor presentation, February 2018
Slide 1: Corporate Presentation February 2018
CORPORATE PRESENTATION February 2018
Slide 2: Disclaimer
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, the Company. Actual results and develo
Slide 3: Kingsgate Today
Kingsgate Today Australian ASX Listed (ASX:KCN) Market Cap ~ A$97 million1 (US$78 million) Cash ~ A$9.7 million2 (US$7.8 million) Full year results ~ A$7 million profit3 (US$5.6 million) Debt ~ A$0 1. As at 16 February 2018. 2. As reported @ 31 January 2018. Calculated @ Key Assets US$/A$ exchange r
Slide 4: Beyond 2018 and Strategy
Kingsgate is an Australian based company with a long and successful history of operating gold and silver mines, with a formerly operating mine in Thailand and an exploration and development portfolio in Chile. Strategic pivot towards South America Australian portfolio divested in 2016, focus on Chil
Slide 5: Chile & Maricunga Belt – A Great Address
Chile & Maricunga Belt – A Great Address Chile – A premier jurisdiction Favored mining investment destination Worlds largest copper producer Top 20 global gold producer7 Maricunga Belt - New discoveries Defined total gold resources of >100 Moz AuEq608 Most historical exploration completed in the sou
Slide 6: Nueva Esperanza History
Nueva Esperanza History Project History Historic bonanza silver production pre-Kingsgate Consolidation of district and resources by Kingsgate in 2011 Kingsgate project breakthroughs in 2015 Gold discovery at Chimberos Structural cost reduction in power Teterita Arqueros Chimberos Deposit History
Slide 7: Nueva Esperanza Today
Nueva Esperanza Today Feasibility Study in progress – Due H1 2018 Water off-take agreement in place Power options available Close to international all-weather highway Brownfields Exploration ongoing 45Km² of prospective alteration Grid Power Options Project Water secured 7
Slide 8: Nueva Esperanza - Three Resources Defined To-date
Nueva Esperanza - Three Resources Defined To-date North Teterita Chimberos Arqueros Camp 1 Kilometre 8
Slide 9: Nueva Esperanza - Chimberos
Nueva Esperanza - Chimberos Open pit mine 1998-99 - Kinross Gold processed at La Coipa mine High sulphidation mineralisation hosted in Palaeozoic sediments and breccia's Bonanza grades - sections of >1,000 g/t Ag 40 Moz Ag & 31 Koz Au mined (700 Koz AuEq6010 @ 5.1 g/t AuEq60) Kingsgate discovered we
Slide 10: Nueva Esperanza - Arqueros
Nueva Esperanza - Arqueros High sulphidation gold-silver mineralisation hosted in vuggy silica mantos and ledges Previously mined underground 1999-2004 (289 Koz AuEq6011 @ 7.4 g/t AuEq60) Current open pit resource: 200 Koz Au & 46 Moz Ag (7.4 Mt @ 0.36 g/t Au & 82 g/t Ag) Arqueros North Silver beari
Slide 11: Nueva Esperanza - Teterita
Nueva Esperanza - Teterita Teterita High sulphidation silver mineralisation hosted in silicified volcanics Manto style oxidised mineralisation 5.7 Mt @ 92 g/t Ag (16.8 Moz Ag) Open pit, near-surface with low strip; Geological interpretation of Teterita feeder zones yet to be discovered 11
Slide 12: Nueva Esperanza - Development Scenario
Nueva Esperanza - Development Scenario Conventional mining, processing and layout Mining from three pits: Arqueros, Teterita & Chimberos Processing Flow Sheet is conventional: Includes SAG and ball mills, agitation leach and Merrill-Crowe to produce doré Fit for purpose design (Ausenco) Environmenta
Slide 13: Pre-Feasibility Study - Key Outcomes
Pre-Feasibility Study - Key Outcomes Macro Assumptions First 5 Years Life of Mine Gold Price US$/oz 1,200 1,200 Silver Price US$/oz 19 19 Project and Operating parameters Robust economics Investment Capital (initial) US$M 206 Long life Life of Project Years 11.6 Short payback period Gold Produced Ko
Slide 14: Nueva Esperanza Exploration
Nueva Esperanza Exploration Multiple Target Styles New Concepts Evolving geological models dictating exploration strategy – Focus on dome margins Mature district – 35 years exploration – Full potential of historic data not realised Similar geology to nearby La Coipa (Kinross Gold) 14
Slide 15: Nueva Esperanza District ~45Km² Alteration
Nueva Esperanza District ~45Km² Alteration 15
Slide 16: Nueva Esperanza - Cerro Blanco West Target
Nueva Esperanza - Cerro Blanco West Target New brownfields discovery Priority drill target 2017-18 field season Validation of the innovative bedrock chemistry campaigns New zone discovered May 2017 Significant shallow resistivity anomaly open to north and south with essentially no previous drilling
Slide 17: Chile Regional Exploration
Chile Regional Exploration Greenfields Exploration Greenfields exploration program initiated 2016 Northern Maricunga belt Focused on high-level epithermal precious metal deposits similar to Nueva Esperanza Numerous concessions applied for and granted 2017-18 field season focused on generating drill
Slide 18: Nueva Esperanza - Calendar 2018 Workflow
Nueva Esperanza - Calendar 2018 Workflow Exploration, Feasibility and Permitting Continue to build multi-layers of district geology, geochemistry, alteration etc. Maintain a district scale drill program with one RC rig on a seasonal basis Feasibility Study nearing completion and expected 1H 2018 Wor
Slide 19: Kingsgate Challenges & Opportunities for 2018
Kingsgate Challenges & Opportunities for 2018 Strategic Restore value to Thai business – pursue TAFTA and PRI Review optimal corporate structure (Chile) Chile Deliver Feasibility Study and permitting outcomes Continue to unlock prospective exploration potential Assess new project opportunities 19
Slide 20: Thank You
<¥s Kingsgate Consolidated Limited THANK YOU
Slide 21: Appendix: Competent Person Statement
Competent Person Statement The information relating to Nueva Esperanza Ore Reserves is extracted from an announcement by Kingsgate titled “Nueva Esperanza, Chile – Definitive Feasibility Study Delivers Strong Results” dated 17 March 2014. The information relating to Nueva Esperanza Mineral Resources
Slide 22: Mineral Resource and Ore Reserve Statement as at 30 June 2017
Mineral Resource and Ore Reserve Statement as at 30 June 2017 Grade Contained Metal Source Category Tonnes Gold Silver AuEq AgEq Gold Silver AuEq AuEq (Million) (g/t) (g/t) (g/t) (g/t) (M oz) (M oz) (M oz) (M oz) Chatree Measured 73.2 0.69 6.20 0.74 100 1.63 14.6 1.74 237 Indicated 49.8 0.64 5.58 0.
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