Kgl Resources Limited · ASX:KGL

Kgl Resources — Investor Presentation (February 2014)

25 slides from Kgl Resources's investor presentation, Feb 28, 2014

  1. Slide 1: Investor Presentation, 28 February 2014

    For personal use only 28 February 2014 28 February, 2014 1

  2. Slide 2: Agenda

    Agenda For personal use only  KGL Resources Corporate Overview  Jervois Copper Project  Current Mineral Resources  2013-14 Drilling Programme  Pre-Feasibility Study  Copper Market Outlook 2

  3. Slide 3: KGL Resources Ltd

    KGL Resources Ltd For personal use only  ASX listed (KGL.AU) emerging copper producer  Focus on the Jervois copper project  High grade copper (1.25% Cu) project  Current mineral resource 170,000 t Cu and 11 Moz Ag  Located in the Northern Territory with access to existing infrastructure  Stron

  4. Slide 4: Board of Directors

    Board of Directors For personal use only Andrew Daley – Non Executive Chairman Mining Engineering, Mining Project Finance, Investor Relations Simon Milroy – Managing Director Mining Engineering, Project Development, Feasibility Studies, Environmental & Social Impact Studies Christopher Bain – Non Ex

  5. Slide 5: Jervois (KGL 100%)

    Jervois (KGL 100%) For personal use only  Located 350 km north east of Alice Springs on the Plenty Highway  250 km away from the Alice Springs to Darwin Port rail link 5

  6. Slide 6: Jervois Project Setting

    Jervois Project Setting For personal use only  Series of stratabound copper- gold deposits  31.4 km2 exploration licence  6.5 km2 granted mineral leases  12 km prospective strike length  Hosted by Bonya Schist in the Eastern Arunta  Outcropping high grade copper mineralisation 6

  7. Slide 7: Early Mining History

    Early Mining History For personal use only  Discovered in 1929  Small scale copper carbonate mining in 1950’s  Plenty River Pb-Ag mining in early 1980’s 7

  8. Slide 8: JORC Mineral Resources

    JORC Mineral Resources For personal use only M.Tonnes Cu % Cu t Ag g/t Ag moz M.Tonnes Au g/t Au oz Measured Indicated 7.9 1.28 101,200 23 5.80 Inferred 5.8 1.19 69,000 29 5.38 12.7 0.17 69,000 Total 13.5 1.30 170,300 25.5 11.18 Next Resource Upgrade in May 2014 The JORC resource was prepared under

  9. Slide 9: 2013-2014 Drilling Programme

    2013‐2014 Drilling Programme For personal use only  20,000m drilling commenced September 2013  Combination of resource extension and exploration  2 multi-purpose rigs able to drill both diamond and RC 9

  10. Slide 10: 2013-14 Drilling

    2013‐14 Drilling For personal use only 112,000 t Cu Resource Extension Drilling (DD & RC) • Reward • Marshall 7,000 t Cu • Green Parrot • Bellbird North • Bellbird 2,000 t Cu Exploration Drilling (RC) • Morley • Sykes • Cox’s Find • Rockface • Chubko 50,000 t Cu 10

  11. Slide 11: Reward Long Section

    Reward Long Section For personal use only 1km strike length 11

  12. Slide 12: High Grade Silver – Lead – Zinc

    High Grade Silver – Lead ‐ Zinc For personal use only Hole 48 18m @732 g/t Silver, 19.63% Lead, 3.77% Zinc Hole 45 8m @ 153 g/t Silver, 23.46% Lead, 1.49% Zinc Hole KJCD048 and KJC045 - This information was first reported 9 December 2013 and 3 February 2014 under 2012 JORC Code. 12

  13. Slide 13: New Discovery east of Reward

    New Discovery east of Reward For personal use only New mineralised zone discovered to the east of Reward 13

  14. Slide 14: IP Survey Results

    IP Survey Results For personal use only EM Survey currently in progress Coincident IP anomaly at Marshall & Reward Mineralisation IP Chargeability 30mV/V IP Chargeability 20mV/V Strong IP anomaly at Morley to be tested IP anomaly extends south of Marshall 14

  15. Slide 15: Reward North

    Reward North For personal use only  2011 KGL drilling REWARD  72m @ 3.3% Cu, 51.2 g/t Ag, 1.16 g/t Au  2012 KGL drilling  8.0m @ 4.8% Cu, 62.1g/t Ag, 0.35g/t Au  9.05m @ 4.9% Cu, 66.2g/t Ag, 1.22g/t Au Hole RJ204W1 and RJ204 This information was prepared and first disclosed under the JORC Code

  16. Slide 16: Pre-Feasibility Study

    Pre‐Feasibility Study For personal use only  PFS to evaluate a conventional crush, grind and float treatment plant  Distance to Plenty highway 15 km  Gas pipeline along the highway  12 MW dual fuel (diesel / natural gas) fired power station Sep 13 - Apr 2014 May 2014 June 2014 Mar 14 Phase 1 Ass

  17. Slide 17: Flowchart

    Flowchart For personal use only  Conventional flotation, followed by de-watering and filtration  Target production 20,000 to 25,000 tpa of copper in concentrate  27% copper concentrate with gold and silver by-product credits  Possibility to produce a magnetite concentrate from the flotation tail

  18. Slide 18: Copper Oxide Heap Leach

    Copper Oxide Heap Leach For personal use only PFS to examine options for heap leaching copper oxide 18

  19. Slide 19: Copper Market

    Copper Market For personal use only 800,000 $3.80 LME Copper Price and Stocks  Decreasing metal inventories 600,000 $3.60  Stable US$ copper prices 400,000 $3.40  Strong Chinese copper 200,000 Stocks (t) $3.20 imports Price (A$/lb) 0 Price (US$/lb) $3.00  2014 expected market surplus estimated a

  20. Slide 20: Supply – Demand Outlook

    Supply – Demand Outlook For personal use only  Into the Possible Projects Global Copper Mine Production Potential (‘000 t contained copper)  Current downturn means project delays Source: CRU 20

  21. Slide 21: Quality of Potential New Supply

    Quality of Potential New Supply For personal use only Riskier Regions Greater Depth  Increasing country and infrastructure risks  Increasing deposit depth High Disruptions Declining grades  Decreasing ore grades Jervois resource grade 1.25% Cu  Translate into higher operating and capital costs S

  22. Slide 22: Evolution of Opex and Capex

    Evolution of Opex and Capex For personal use only $2.20 $2.00 C1 Costs Evolution for Selected Copper Producers $1.80  Increasing $1.60 operating costs $1.40 US$/lb $1.20 $1.00 Codelco  Strong increase in $0.80 Freeport $0.60 GlencoreXstrata capital intensity OZ Minerals $0.40 PanAust $0.20 Evoluti

  23. Slide 23: Summary

    Summary For personal use only  High grade Cu-Ag project with mineral resource of 13.5 Mt @ 1.3% Cu, 25.8 g/t Ag and 69,000 oz Au  Fully funded programs  20,000 metre drill plan underway, favourable drilling rates  Positive economics, PFS underway  Strong news flow 23

  24. Slide 24: For more information contact

    For more information contact For personal use only Simon Milroy on +61 7 3071 9003 or info@kglresources.com or visit www.kglresources.com ASX code: KGL Level 7, 167 Eagle Street Brisbane, QLD, 4000 AUSTRALIA Forward-Looking Statements: This presentation includes certain “Forward-Looking Statements”.

  25. Slide 25: Competent Person Statements

    For personal use only Competent Person Statements: The data in this report that relates to Mineral Resource Estimates for Jervois is based on information evaluated by Mr Simon Tear who is a Member of The Australasian Institute of Mining and Metallurgy (MAusIMM) and who has sufficient experience rele

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