Lachlan Star Limited · ASX:LSA
Lachlan Star — Investor Presentation (February 2011)
31 slides from Lachlan Star's investor presentation, Feb 3, 2011
Slide 1: Lachlan Star February 2011
For personal use only Feb 2011 ASX – LSA www.lachlanstar.com.au
Slide 2: Disclaimer
For personal use only This Document is not a Prospectus nor an Offer to Subscribe for Shares. Lachlan Star and its subsidiaries (“LSA”) makes no representation or warranty (express or implied) as to the accuracy , reliability or completeness of this document. LSA and its respective directors, employ
Slide 3: For personal use only
For personal use only • Owns 100% of the operating Compañía Minera Dayton (CMD) heap leach gold mine in Chile • JORC Resources of 0.94 m ounces • Additional exploration target1 range of 0.6 m ounces to 0.9 m ounces of gold • Located immediately adjacent to Teck‟s large Andacollo copper gold mine (80
Slide 4: Capital structure and enterprise value
For personal use only • Shares on issue 3.2 billion • Options on issue (2c, 2.5c, 3.5c) 77.5 million • Share price 1.5c • Market Cap $48 million • Less cash and listed shares $9 million • Enterprise Value $39 million • Enterprise Value/ total ounces2 $22/oz 2 JORC Resources plus Exploration targets
Slide 5: EV / Resource Ounce
For personal use only EV / Resource Ounce 157 $160 $140 127 $120 101 95 $100 88 85 A$/oz $80 Average $84 $60 44 37 $40 22 $20 $0 Luna (TSX) Argonaut Andean Orvana (TSX) Minefinders Beadell (ASX) LSA JORC Orosure LSA Total (TSX) American (TSX:NYSE) (ASX) (AIM:TSX-V) (ASX) (TSX) Source: Company Releas
Slide 6: Lachlan Star has
For personal use only Lachlan Star has: ▫ a 100% interest in a major gold project (CMD) in a politically stable country ▫ existing unhedged production of circa 40,000 to 50,000 ounces of gold per annum ▫ an under explored tenement position that has been shown to host major ore bodies ▫ a base from w
Slide 7: Established mine with long history in highly prospective location
For personal use only • Established mine with long history in highly prospective location • 8Mtpa crushing, stacking and elution plant currently operating at 1/3 capacity • 100tpd ball mill and CIL circuit • Circa 30,000 oz of gold in inventory on leach pads • Copper recovery circuit • Water rights
Slide 8: CMD gold production by year
For personal use only CMD Gold production by year (ozs) 140,000 120,000 100,000 80,000 60,000 40,000 20,000 0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 • Past production peaked at 135,000 oz –goal is to return operation to >100,000ozpa producer within 2 to 3 years
Slide 9: CMD Location
ee! | CMD Location \ -72E La Serena Compania Minera Dayton mum@cific ARGENTINA Ocean - -32°S = Highway — ——— Major Road Y Province of Valparaiso i ee ae Sed . —-~—— Drainage ie i a Vifia del Mar 5 * Quit “Los. Andes Valparaiso, re ice Bis PAaan 0 20 40 60 80 100km Z> fn) SANTIAGO} -—=- =
Slide 10: CMD Location
CMD Location Compania Minera Dayton % Socorro Pit Toro Pit
Slide 11: For personal use only
For personal use only • Located immediately adjacent to Teck Andacollo mine (100m from Tres Perlas) • Teck deposit hosts resources of 535 Mt grading 0.37 % Cu and 0.12 g/t Au • Limited copper exploration on CMD tenements deposit)
Slide 12: CMD Mineral Resources (Feb 2010)
For personal use only CMD Mineral Resources (Feb 2010) above 0.3 g/t Au Indicated Inferred Total Tonnes Grade Ounces Tonnes Grade Ounces Tonnes Grade Ounces Deposit (Mt) (Au) (Kozs) (Mt) (Au) (Kozs) (Mt) (Au) (Kozs) Toro/Socorro 3.3 0.8 84 8.1 0.7 188 11.4 0.7 272 Tres Perlas 15.6 0.5 252 19 0.5 333
Slide 13: Exploration target
For personal use only Potential Quantity Potential Grade (Mt) (g/t Au) Project lower upper lower upper Los Loas 8.2 10.9 1.06 1.10 Churramata 12.1 16.2 0.75 0.76 El Sauce 3.7 7.2 0.57 0.60 Total 24.0 34.3 0.83 0.83 • Exploration target1 of 0.6 m to 0.9 m ounces of gold • Numerous other prospects wit
Slide 14: JORC Ounces
For personal use only JORC Ounces 1.00 0.90 0.80 Million Ounces of Gold 0.70 0.60 0.50 0.40 0.30 0.20 0.10 - Dec-10 Jan-11 Feb-11
Slide 15: CMD Operation - Plant
CMD Operation - Plant LACHLAN
Slide 16: CMD Operation - Churrumata
CMD Operation — Churrumata tacnay
Slide 17: CMD Operation - Tres Perlas Pit
CMD Operation - Tres Perlas Pit
Slide 18: CMD Operation - Las Loas Pit
es —___| CMD Operation — Las Loas Lactian Pit
Slide 19: CMD Operation - Leach Pad
CMD Operation — Leach Pad
Slide 20: New leach pad liner installed
For personal use only • New leach pad liner installed on Pad 3 b • Will significantly improve leaching rates from mid 2011, brings forward cash flow in Q2 and Q3
Slide 21: Mining of Mariposa Vein
For personal use only • Mining of Mariposa Vein where it intersects the Churrumata pit • Higher grade material • Cash flow effect to be seen in Q3 and Q4
Slide 22: CMD Exploration
CMD Exploration Chisperos Socorro——_- Toro——>
Slide 23: For personal use only
For personal use only • Higher grade zones present at depth which may support underground mines •Drilling at depth very limited •Open along strike to the NW, drilling underway
Slide 24: For personal use only
For personal use only • High grade vein drilled over 400m strike length • Very limited drilling at depth •1.5 km strike length mapped on surface
Slide 25: For personal use only
For personal use only • Typical Manto style mineralisation •Attractive target due to outcropping mineralisation and potential for very low strip ratio when mined
Slide 26: Luiri Gold and Bushranger
For personal use only • Luiri Gold – ▫ 28,244581 shares and CDI‟s (25%) valued at circa $4 million ▫ Holds gold projects in Zambia (800,000 oz in resources), currently the subject of a tenement dispute with the Zambian government • Bushranger ▫ Copper exploration project in NSW ▫ Resource of 125,000
Slide 27: For personal use only
For personal use only Mick McMullen Chairman Geologist with 18 years experience in identifying, financing, developing, and mining operations in Africa, Australia, Europe, Asia and South America. Has been an executive director of publicly listed mining companies for over 13 years and been responsible
Slide 28: For personal use only
For personal use only Bob Anderson Group Company Perth based accountant with over 20 years experience in Secretary and CFO financial management of Australian companies. Gaston di Parodi General Manager CMD Chemical Engineer, with 30 years experience in start-up and operation of gold leaching facilit
Slide 29: 2011 milestones
For personal use only • Q1 2011 ▫ 2010 drill results ▫ JORC resources and reserves • Q2 2011 ▫ Underground mine development ▫ Incremental expansion to CIL circuit • Q3 2011 ▫ Development plan to increase production to circa 100,000 ozpa • Q4 2011 ▫ Dual listing on TSX
Slide 30: Competent Person statements
For personal use only The information in this report that relates to the Mineral Resources of Tres Perlas, Chisperos and Toro/Socorro is based on information compiled by David Slater, who is a Member of The Australasian Institute of Mining and Metallurgy. David Slater is employed full time by Coffey
Slide 31: For personal use only
LACHLAN Unhedged gold production STAR World class deposits Major exploration potential