Austral Gold Limited · ASX:AGD
Austral Gold — Investor Presentation (November 2011)
37 slides from Austral Gold's investor presentation, Nov 30, 2011
Slide 1: An Emerging South American Gold Producer
For personal use only An Emerging South American Gold Producer ASX: AGD www.australgold.com.au November 2011
Slide 2: AGD "The Company"
AGD “THE COMPANY” For personal use only AGD Chile Argentina 85.55% Guanaco Guanaco Aminsa 8 de Julio Mine Exploration (San Juan) (Santa Cruz) -2-
Slide 3: Strong Financial Support
STRONG FINANCIAL SUPPORT For personal use only IFIS also has investment interests in the following Companies Agribusiness Argentina MKT CAP (FD): U$656 Million ISIN: US2264061068 (NASDAQ: CRESY, BASE:CRES) (and associates) 85.55% Real Estate MKT CAP: U$586 Million ISIN: US4500472042 (NYSE: IRS; BASE
Slide 4: Argentinean Indexes
ARGENTINEAN INDEXES Arg. GDP growth (YoY % chg.) For personal use only 8.00% 3.00% Source: Estudio Broda -2.00% -7.00% -12.00% 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 MERVAL Index 900 800 700 600 500 400 300 200 100 - 1997 1998 1999 2000 2001 -4-
Slide 5: Argentinean Indexes
ARGENTINEAN INDEXES Arg. Consumption Downturn Arg. current account as a % of GDP For personal use only (decrease in shopping center sales) 0% 5.00 -5% Source: Estudio Broda 3.00 -10% 1.00 -15% -20% -1.00 -25% -3.00 -30% -35% -5.00 -40% 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001
Slide 6: Central Banks' Gold Reserves
CENTRAL BANKS’ GOLD RESERVES Central Bank Gold Holdings Top 10 Central Banks’ For personal use only (% of Total Foreign Reserves of each Central Bank) Gold Holdings 80.0% 75.5% 72.6% (% of Tones Held by Central Banks) 71.0% 70.0% 60.0% 50.0% Others US 23% 27% 40.0% 35.0% 30.0% Netherlands 2% 20.0% 9
Slide 7: Gold vs. U.S. Monetary Base
GOLD vs. U.S. MONETARY BASE For personal use only “Fair Value” for Gold vs. U.S. Monetary Base U.S. Gold Reserve as % of Monetary Base Sources: Federal Reserve, IMF -7-
Slide 8: Buying Gold
For personal use only BUYING GOLD -8-
Slide 9: AGD Investment Highlights
AGD INVESTMENT HIGHLIGHTS For personal use only 100% Ownership of Guanaco Gold Mine, Chile Short Term Budget Production: 40k GEO 2012e Mid Term Target production: 100k GEO 2014e Long Term Target: Quality intermediate size producer Strong Technical and Management Team (ex Meridian Gold/ El Peñon Gold
Slide 10: AGD Growth Strategy
AGD GROWTH STRATEGY For personal use only Strong South Team America Focus Build on Strengths Quality South American Intermediate Size Producer - 10 -
Slide 11: South America Focus
SOUTH AMERICA FOCUS For personal use only Chile – Most stable investment regime in South America – Paleocene belt underexplored for gold and silver Argentina – Tremendous virgin exploration opportunities in the Patagonia – Established mining law - 11 -
Slide 12: Strong and Experienced Team
STRONG AND EXPERIENCED TEAM For personal use only Eduardo Elsztain (Chairman) – High level government and business contacts in Argentina – AGD essentially private Wayne Hubert (Director) – CEO, Andean Resources – VP, Meridian Gold Inc. Stabro Kasaneva (COO) plus entire team that successfully started
Slide 13: Build on Strengths
BUILD ON STRENGTHS For personal use only Grow Organically Through Exploration – Most experience with Au/Ag exploration in the Chilean Paleocene Belt with a junior – Significant exploration experience in the Patagonia with Andean Resources, Cerro Negro project Guanaco Expansion – Expand existing prod
Slide 14: Chile: Country Overview
CHILE: COUNTRY OVERVIEW For personal use only Chile: A Mining Country & Competitive Advantages 4th Best Country for Mining Investment (2009/2010 Fraser Institute Ranking) Producing over 1/3 of Global Copper output and a large number of other minerals (Gold, Silver, Zinc, among others) Political, Eco
Slide 15: Guanaco Mine Strategic Location
GUANACO MINE STRATEGIC LOCATION For personal use only Paleocene-Eocene Belt, Northern Chile Caracoles San Cristóbal Antofagasta El Peñón El Soldado Cachinal de la Sierra GUANACO Taltal Vaquillas Amancaya LEGEND Sierra Overa Sierra Juncal Gold Deposits Silver Deposits Paleocene-Eocene Belt - 15 -
Slide 16: Guanaco Gold Mine History
GUANACO GOLD MINE HISTORY For personal use only 1886 to mid 1980s - Guanaco is believed to have produced about 1 million ounces of gold 1993 to 1997 - Amax Gold produced 0.5 million Gold ounces 2003 - AGD acquired Guanaco Sept 2009 - AGD proceeds with the BFS, construction of a decline and plant ref
Slide 17: Guanaco Gold Mine
GUANACO GOLD MINE For personal use only - 17 -
Slide 18: Guanaco Mine Mineral Inventory
GUANACO MINE MINERAL INVENTORY TOTAL RESOURCES* For personal use only RESOURCES Au Measured (Me) Indicated (Ind) Total (Me+Ind) Inferred (Inf) Ton Grade Ounces Ton Grade Ounces Ton Grade Ounces Ton Grade Ounces (kt) (g/t) Au (kt) (g/t) Au (kt) (g/t) Au kt) (g/t) Au Underground ( > 1.0 g/t Au) 1,264
Slide 19: Guanaco Estimated GEO Production
GUANACO ESTIMATED GEO PRODUCTION For personal use only 2011e 2012e 2013e 2014e Old Heap Leaching Q1 Open Pit Q1 Underground Q4 Total GEO Production 15k 40k 75k 100k Operational and Environmental Permits and Water Rights in Hand Friendly Mining Region with Qualified Manpower in the Area - 19 -
Slide 20: AGD Properties in Paleocene Belt
AGD PROPERTIES IN PALEOCENT BELT 42,631 Ha Mine Property For personal use only Escondida Cerro Islote Salvadora Veta Blanca Guanaco Orebody Location Cerro Quillota Fortuna Llano Guanaquito Herradura - 20 -
Slide 21: 2011 Drilled Targets (Gold and Silver)
2011 DRILLED TARGETS (Gold and Silver) For personal use only Llano Guanaquito GUANACO 1 Herradura 3 4 2 Herradura Eureka-Palermo C°Guanaquito Guanaco Minex - 21 -
Slide 22: New Structure: Cerro Guanaquito
NEW STRUCTURE: CERRO GUANAQUITO For personal use only Longitudinal Section for Cerro Guanaquito Vein * * RC-983, intersected 8m along the hole with true width of 4.8m 10.03 g/t gold; 58.33 g/t silver and 1.7% copper - 22 -
Slide 23: Main High Gold Vein: Cachinalito
MAIN HIGH GOLD VEIN: CACHINALITO For personal use only Cachinalito Oeste Cachinalito Central Cachinalito Extension CACHINALITO DECLINE Longitudinal Section for Cachinalito Vein RC-378 RC-549 RC-610 4.77m/17.0 g/t Au 6.36m/17.2 g/t Au 0.53m/162 g/t Au - 23 -
Slide 24: Guanaco Copper Porphyry Potential
GUANACO COPPER PORPHYRY POTENTIAL For personal use only Guanaco lies directly on trend with some of the largest copper and gold deposits in the world GUANACO - 24 -
Slide 25: Argentina: Country Overview
ARGENTINA: COUNTRY OVERVIEW For personal use only Argentina: Turning into a Mining Country Wide Net of Local Contacts Big Exploration Potential Compared to Chile and Peru Competitive Prices and Operating Costs No Mandatory Government Participation Mining-Friendly Federal Government (The President of
Slide 26: Argentina Exploration Potential
ARGENTINA EXPLORATION POTENTIAL For personal use only AGD has a large property position in Santa Cruz Province, Argentina - 26 -
Slide 27: De Julio – Santa Cruz Province
8 DE JULIO – SANTA CRUZ PROVINCE For personal use only Located in the friendly mining Province of Santa Cruz Area totals almost 85,000 Ha in the attractive Deseado Massif unit. Low sulphidation Gold Vein System hosted in rocks of the Chon Aike formation The sector represents the most favorable place
Slide 28: De Julio – Geological Map
8 DE JULIO – GEOLOGICAL MAP For personal use only Barroso Grande - 28 -
Slide 29: Barroso Grande Geology
BARROSO GRANDE GEOLOGY For personal use only Barroso Grande Magnetic Response Barroso Grande Vein System - 29 -
Slide 30: De Julio – Sampling Assays
8 DE JULIO – SAMPLING ASSAYS For personal use only 0.283 1.218 0.157 0.548 - 30 -
Slide 31: AGD Short Term Objectives
AGD SHORT TERM OBJECTIVES For personal use only Increase Gold Inventory through Exploration Increase Market Valuation to More Accurately Reflect the Value of Our Assets Increase Share Liquidity on ASX and Initiate TSX Listing Improve Company’s Balance Sheet Obtain Equity Analyst Coverage Seek Merger
Slide 32: In Summary
IN SUMMARY For personal use only The right Team is now in place with a track record of success in South America Existing production and exploration assets in Chile and Argentina have upside potential We have a plan in place to improve liquidity and capital structure – This is Our Priority Backing fr
Slide 33: In Summary
IN SUMMARY For personal use only AGD represents an attractive investment today because: 1) Proven Technical Team 2) Owner and Operator of Valuable Gold Mine in Chile with Significant Exploration Upside 3) Exceptional Growth Potential in Chile and Argentina 4) Strong Local Supporters will Promote Cor
Slide 34: AGD Board of Directors
AGD BOARD OF DIRECTORS Eduardo Elsztain, Chairman For personal use only – Chairman of Cresud (Nasdaq: CRESY), IRSA (NYSE: IRS) and Banco Hipotecario (BASE: BHIP) – Chairman of the Governing Board of the World Jewish Congress and Member of the World Economic Forum – Board Member of BrasilAgro (BOVESP
Slide 35: Contacts
CONTACTS For personal use only STABRO KASANEVA – DIRECTOR & COO SKasaneva@australgold.com.au 14 de Febrero 1822 , Office # 8 Antofagasta – Chile Tel +(56 55) 440 306 Fax + (56 55) 440 305 BEN JARVIS – DIRECTOR BJarvis@australgold.com.au Tel +(61 2) 9230 0661 Fax +(61 2) 9380 7972 Terrace Tower Suite
Slide 36: Disclaimer
DISCLAIMER For personal use only This presentation (Presentation) has been prepared by Austral Gold Limited (“AGD”) based on information available to it from them and third party sources. This Presentation does not purport to contain all the information that a prospective investor may require in con
Slide 37: For personal use only
For personal use only ASX: AGD www.australgold.com.au