Korab Resources Limited · ASX:KOR
Korab Resources — Investor Presentation (July 2010)
30 slides from Korab Resources's investor presentation, Jul 2, 2010
Slide 1: Investor Briefing July 2010
INVESTOR INVESTOR BRIEFING BRIEFING July July 2010 2010 Andrej Karpinski Executive Executive Chairman Chairman www.korab.com.au ASX: KOR
Slide 2: Overview
Overview ASX code: KOR Market Cap: ~$36 M (@ $0.45) Issued capital: 78.5 M Top 20 shareholders : 56% Directors shareholding: 34% Directors: Andrej Karpinski Executive Chairman John McKenzie Non Executive Director Rodney Skeet Non Executive Director 1 www.korab.com.au ASX: KOR ASX: KOR
Slide 3: Company Profile
Company Profile Listed on ASX in August 2005 Magnesium, organic rock phosphate, gold and silver projects in Australia and Europe IPO’s of 2 gold companies with development-ready gold projects Lugansk Gold - 1Mln oz Bobrikovo gold and silver mine located in eastern Ukraine Melrose Gold Mines - 340K o
Slide 4: Why Korab?
Why Korab? Value proposition Tight register Constantly adding value for shareholders 700% share price growth over 52 weeks Korab offers low cost entry into 2 gold IPO’s Korab shareholders will receive free shares in 2 new gold floats Melrose Gold Mines – 1.266 shares for each Korab share Lugansk Gol
Slide 5: Strategy & Objectives
Strategy & Objectives Establish Korab as a low cost niche operator in sectors with strong historical growth and a continuing long term growth potential Organic phosphate rock - growing demand for organic produce, addresses concerns over water pollution and soil salinity Magnesium – growing demand fo
Slide 6: Immediate Aims
Immediate Aims Spinning-off gold operations into 2 separate ASX listed entities Melrose Gold Mines and Lugansk Gold. Spin-off benefits: Immediate value accretion to Korab shareholders Allow each project to be evaluated by investors and analysts on its own merits Fast-track development of gold mining
Slide 7: Melrose Gold Mines
Melrose Gold Mines 340K oz existing resource base on granted mining leases at Melrose Batchelor Batchelor & & Alligator Alligator Potential for near-term low cost gold production Great exploration upside at Melrose and Ballard, Wonganoo, Ashburton and Gascoyne, Batchelor and Green Alligator projects
Slide 8: Melrose Project JORC Resource
Melrose Project JORC Resource Mineral Resource at Melrose project (above 0.5 g/t Au cut-off grade) Category Tonnes Grade g/t Au Gold Ounces Measured Boundary 652,154 1.73 36,262 Indicated Boundary 2,662,763 1.73 148,506 Inferred Boundary 703,209 1.36 30,822 Bungarra 2,144,332 1.56 107,385 Stirling 4
Slide 9: Melrose Project Timeline
Melrose Project Timeline Following the spin-off Melrose will complete feasibility study on the Melrose project (completion mid 2011). This will include: Geotechnical drilling Metallurgy testing Process design and mine design Development option selection (heap leach, toll treat or reconditioned mill)
Slide 10: Lugansk (Bobrikovo) Project Location
Lugansk (Bobrikovo) Project Location Bobrikovo Project Location – Old mining region with very good infrastructure and highly skilled workforce 9 www.korab.com.au ASX: KOR ASX: KOR
Slide 11: Bobrikovo Timeline
Bobrikovo Timeline Lugansk Gold Ltd (holding company of Bobrikovo project) to be listed on ASX in an IPO raising $40-50 million Currently mining and stockpiling oxide ore (re-commenced mining in March 2010) Finalising the plant re-design to increase processing capacity All permits in hand for mining
Slide 12: Lugansk Gold
Lugansk Gold Well located project (old mining region with good infrastructure and highly skilled workforce) Resource base over 1 million ounces (JORC code) Deposit starts at surface Potential for low cost operation (~US$250/ounce) Great exploration upside below existing resource Established local te
Slide 13: Bobrikovo Resource Base
Bobrikovo Resource Base Global resource at Bobrikovo mine is over 1 million ounces (20.2 Mt at 1.55 g/t Au) This includes high grade component of 0.5 million ounces (3.7 Mt at 4.30 g/t Au) Bobrikovo deposit remains open at depth and along strike with strong potential for additional resource. Measure
Slide 14: Metallurgy Testing Completed
Metallurgy Testing Completed Metallurgy testing shows very good recoveries of gold Hydrocyclone extraction; yield 72-79% Gravitational extraction; yield 62%, Hydrometallurgy with autoclave leaching; yield 97-98% Gravitational concentrate; yield 46-81% (average 60%) tail cyanidation; yield 90%. Total
Slide 15: Bobrikovo Resource Base
Bobrikovo Resource Base Measured resource at Bobrikovo (corresponds to oxide zone) Topography surface 40 m 300 m Oxide mineralisation - resource exposed at surface with no pre-strip required 14 www.korab.com.au ASX: KOR ASX: KOR
Slide 16: Bobrikovo mineralisation - open pit
Bobrikovo mineralisation - open pit High grade rock up to 200 g/t Au (widths up-to 5 m) surrounded by low grade 1g/t Au rock 15 www.korab.com.au ASX: KOR ASX: KOR
Slide 17: Bobrikovo 1st Stage Mine Design
Bobrikovo 1st Stage Mine Design Oxide Mineralisation (Low Strip Ratio) Oxide Zone Open Pit Plan - very good waste-to-ore ratio 16 www.korab.com.au ASX: KOR ASX: KOR
Slide 18: Bobrikovo 1st Stage Mine Design
Bobrikovo 1st Stage Mine Design oxide mineralisation contour Oxide Zone Pit Side View – very good waste-to-ore ratio 17 www.korab.com.au ASX: KOR ASX: KOR
Slide 19: Bobrikovo 1st Stage Mine Design
Bobrikovo 1st Stage Mine Design Simple truck and shovel mining method - low cost operation 18 www.korab.com.au ASX: KOR ASX: KOR
Slide 20: Bobrikovo Plant Design
Bobrikovo Plant Design Gravity Circuit Processing Plant (low CAPEX and low cost operation) 19 www.korab.com.au ASX: KOR ASX: KOR
Slide 21: After spin-offs of Melrose and Lugansk
After spin-offs of Melrose and Lugansk Develop GeolSec phosphate rock deposit as a supplier of organic and direct application phosphate fertiliser Develop Winchester magnesium deposit as a supplier of magnesium oxide building products (1st stage) Develop Winchester magnesium deposit as a supplier of
Slide 22: GeolSec and Winchester Location
GeolSec and Winchester Location GeolSec Winchester Winchester Location of projects 21 www.korab.com.au ASX: KOR ASX: KOR
Slide 23: GeolSec Operations
GeolSec Operations Access to a large local market = low transportation costs Location 65 km from port of Darwin = easy low-cost access to Asia, India and the rest of Australia Resilient market with 17% annual growth in USA during recession of 2008/2009 Strong environmental credentials of the product
Slide 24: Geolsec Phosphate Timeline
Geolsec Phosphate Timeline Granted mining lease 2010 - permitting, contracting, procurement, production and sales 1 Negotiating off-take agreements 2nd half of 2010 –Initial sales targets 15,000 to 20,000 tpa Potential for 1st year profit of $5 million (pre-tax) 2 Potential for 2nd year profit of $9
Slide 25: Winchester Magnesium Project
Winchester Magnesium Project Located 65 km from Darwin, all infrastructure on site, Best logistics in Australia, access to rail, port, highway Close proximity to Asian markets Low operating cost potential Large resource base sufficient for 50 year mine life: Indicated Resource of 12.2Mt @ 43.1% Magn
Slide 26: Winchester Development – MgO
Winchester Development – MgO Production of MgO and MgO based products for: High rise buildings - internal and external cladding Prefabricated commercial and residential buildings Bushfire-proof and cyclone-proof housing Structural walls, ceiling, wall and floor panels Extruded and moulded products i
Slide 27: Winchester MgO and Mg Timeline
Winchester MgO and Mg Timeline Simple, low cost and low CAPEX calcining process Test mining completed Mine design completed Mg BFS completed Process design for Mg production completed Finalising modifications to equipment specifications for MgO production Rotary calcining kiln Permitting process par
Slide 28: Winchester Deposit
Winchester Deposit Shallow, easy to mine magnesite deposit 27 www.korab.com.au ASX: KOR ASX: KOR
Slide 29: Contacts
Contacts Andrej K. Karpinski, Executive Chairman, Perth office: +618 9474 6166 Address: Korab Resources Ltd, Korab House Level 2, 100 Mill Point Road South Perth WA 6151 E-mail: akk@korab.com.au 28 www.korab.com.au ASX: KOR ASX: KOR
Slide 30: Important Information
Important Information This presentation has been prepared by Korab Resources Limited (“Korab” or the “Company”). It should not be considered as an offer or invitation to subscribe for or purchase any securities in the Company or as an inducement to make an offer or invitation with respect to those s