Kingsgate Consolidated Limited · ASX:KCN
Kingsgate Consolidated — Denver Gold Forum 2011
32 slides from Kingsgate Consolidated's conference presentation, September 2011
Slide 1: Growing a Premier Mid-Tier Gold Miner in Asia/Pacific
Kingsgate Consolidated Limited Growing a Premier Mid-Tier Gold Miner in Asia/Pacific Denver Gold Forum September 2011
Slide 2: Disclaimer
Disclaimer Forward Looking Statements: 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,
Slide 3: A Year of Transition
A Year of Transition • Second gold mine – Challenger in Sth Aust. • Added advanced Ag/Au project in Chile (KCN acquired 70% of Laguna Resources) • Chatree expansion to +5Mtpa on time for completion in Sept 11 and ~5% under budget • Enhanced Arqueros by adding Esperanza and Chimberos leases - Feasibi
Slide 4: Precious Metals in the Pacific Rim
Precious Metals in the Pacific Rim 2010 - One Mine One Country Chatree
Slide 5: Precious Metals in the Pacific Rim
Precious Metals in the Pacific Rim 2011 – Two Mines and Two Advanced Projects Chatree Nueva Esperanza Challenger Bowdens
Slide 6: Challenger Gold Mine
Challenger Gold Mine Acquired by Kingsgate in Feb 2011 Challenger
Slide 7: Challenger Gold Mine
Challenger Gold Mine Turn Around Story Underground gold mine in remote South Australia . Production rate ~100koz pa to grow to ~120Kozpa over next 12 - 18mths Third quartile costs expected to improve in 2012 Strong reserve growth anticipated. Current reserves ~420koz expected to increase substantial
Slide 8: Challenger Mineralised Structures
Challenger Mineralised Structures NE SW Ventilation Shaft Challenger RL(m) 1000 M1 800 Level M2 Exploration Drive 800 M3 Identified 600 Structures 400 280 Level Exploration Drive 200 Open Upside Down 0 Dip -200 Open -400 Down Dip Long Section
Slide 9: Challenger Upside Potential
Challenger Upside Potential E W Ventilation Shaft Challenger Challenger West RL(m) Other Structures 1000 820 Level Area of current drilling M1 800 M2 800 Level Upside M3 Exploration Drive 600 400 280 Level Exploration Drive 200 Open Open Down Down Dip 0 Dip Open -200 Down Upside Oblique Section Dip
Slide 10: Kingsgate Growth Project
Kingsgate Growth Project Bowdens Silver project In NSW Bowdens
Slide 11: Bowdens – “Buying Back the Farm”
Bowdens – “Buying Back the Farm” • Silver resource of 97Moz Ag (130Moz AgEq) with strong upside potential (NI 43-101) • In-ground value of ~$5B, equal to +3Moz gold • Purchased from Silver Standard for $75M equals $0.77/Ag Resource oz ($0.58/Ag Eq Resource oz) • Proceeding immediately to BFS, signif
Slide 12: Bowdens Overview
Bowdens Overview • Epithermal silver deposit with lead and zinc by- products • Located 25km E of Mudgee, some 240km NW of Sydney • Established infrastructure and mining workforce • Large, continuous, near surface deposit hosted in a volcanic sequence of breccia and tuff (Rylstone Volcanics)
Slide 13: Exploration Upside
Exploration Upside 1 kilometre 10,750mN • 43,000m of drilling • Most holes less than 100 metres deep 10,500mN • Minor drilling on neighbouring freehold 10,250mN properties • Obvious targets for drilling program 10,000mN 9,750mN 14,750mE 15,000mE 15,250mE 15,500mE
Slide 14: Resource Potential at depth
Resource Potential at depth • Current pit shell reflects the current base of drilling • Significant resource potential at depth • High grade starter pit
Slide 15: Nueva Esperanza
Nueva Esperanza Advanced silver/gold project in Chile Nueva Esperanza
Slide 16: Project Well Located
Project Well Located Choquelimpie Acquired 70% of Laguna in Feb 11 El Tesoro Kingsgate has substantial experience San Cristobal in the Chilean gold and copper belts Project located in the world-class Maricunga Gold-Silver Belt Maricunga Belt Host to over 70Moz gold resources Produced over 10Moz gold
Slide 17: Esperanza Enhances Arqueros
Esperanza Enhances Arqueros Chimberos Pit Purchased Esperanza and Chimberos leases in July 11 Esperanza Considerable surface rights Adds ~20Moz of silver Teterita and mine infrastructure resources (~340koz gold EQ) Chimberos Satellite mineralisation and Earlier plant commissioning increased explorat
Slide 18: Fast Track to Production
Fast Track to Production 1.8 Million ounces gold EQ* (80 Million ounces silver EQ) Average grade of ~2.0g/t* gold equivalent (cut-off: 0.5 g/t g/e) Feasibility study in Q1 2012 Construction 2012/13 Annual output of 100,000 –120,000oz* gold equivalent by open cut mine Proven management team (* Calcul
Slide 19: Chatree Gold Mine in Thailand
Chatree Gold Mine in Thailand Asian showcase gold mine Chatree
Slide 20: Thai Political Change
Thai Political Change Landmark victory by Puea Thai Party with 265 seats out of 500 seats Formed coalition to strengthen majority Chatree Led by Yingluck Shinawatra sister of Thailand former prime minister Thaksin Bangkok Shinawatra Decisive victory should lead to a more politically stable Thailand
Slide 21: Chatree – Thai Gold Belt
Chatree – Thai Gold Belt Chatree Thailand World Class Gold Bangkok Province Thai Gold Belt Phitsanulok Province First Mover Advantage Granted Phetchabun Province 70 km Chatree Phichit 1,300 km2 Tenement Province Package Pending Multiple Targets Nakhonsawan Province
Slide 22: Chatree - World Class Deposit
Chatree - World Class Deposit Chatree ~6Moz to date & growing (including mined to date) Large low grade and Section5 km low cost gold deposit 1.9 Moz Reserve 4.3 Moz Resource* (*As at 30 June 2010) 1 km
Slide 23: Chatree Expansion on Time
Chatree Expansion on Time Chatree processing plant capacity increase from 2.3 to +5 Mtpa Completion scheduled for end September 2011 Increase production rate up to 200,000 ounces per year Current Plant 2.3 Mtpa Plant Plantexpansion expansionto+2.7 +2.7Mtpa Mtpa Total project capex US$125M Tax incent
Slide 24: Chatree Expansion Under Budget
Chatree Expansion Under Budget Chatree North expansion on time and ~5% under US$100M EPCM budget Despite Heaviest wet season in a generation Capital pressure on resource construction projects Established partnership in Asian development built up over a decade with Ausenco
Slide 25: Kingsgate to Deliver
Kingsgate to Deliver Strong Production Growth 600 500 Gold Production Growth (in ‘000 ounces AuEq) 400 300 Chatree 200 100 0 2008 2009 2010 2011 2012F 2013F 2014F Chatree Challenger Arqueros (100%) Bowdens Nueva Esperanza Challenger Bowdens
Slide 26: Growing Mid-Tier Precious Metals Miner
Growing Mid-Tier Precious Metals Miner Diversified Production Growth Resource Growth Development Project Pipeline Generating Strong Cashflow Dividend Differential
Slide 27: Kingsgate Consolidated Limited
Kingsgate Consolidated Limited Shares: 134 Million Market Cap: ~A$1.3Bn ASX: KCN www.kingsgate.com.au
Slide 28: Appendix – General Disclaimer
Appendix General Disclaimer: The information contained in this presentation is for informational purposes only and does not constitute an offer to issue, or arrange to issue securities or other financial products. The information contained in this presentation is not investment or financial product
Slide 29: Chatree
Chatree Chatree Ore Reserves as at 30 June 2010 (>0.4g/t gold cut-off grade) Gold Silver Gold Silver Tonnes Source Category Grade Grade Contained Contained (millions) (g/t) (g/t) (Moz) (Moz) From Pits Proved 37.4 1.00 9.5 1.20 11.42 Probable 18.7 0.98 8.4 0.59 5.02 Stockpiles 5.60 0.79 12.1 0.14 2.1
Slide 30: Challenger
Challenger Challenger Ore Reserves as at 30 June 2010 Gold Gold Tonnes Source Category Grade Contained (‘000) (g/t) (‘000 oz) From Mine Proved 318 5.8 59 Probable 1,834 6.0 352 Stockpiles 157 2.1 9 Challenger Total Total 2.310 5.7 420 Challenger Mineral Resources as at 30 June 2010 Gold Silver Tonne
Slide 31: Arqueros
Arqueros Tonnes & INDICATED INFERRED TOTAL grade @ 0.5 g/t Mt Au g/t Ag g/t AuE Mt Au g/t Ag g/t AuEQ Mt Au g/t Ag g/t AuEQ Koz AuEQ AuEQ Q Arqueros 16.0 0.32 81 2.12 4.0 0.3 50 1.4 20.0 0.32 75 1.98 1,272 Chimberos 3.7 0.2 85 2.1 3.7 0.2 85 2.1 248 Teterita 4.8 - 85 1.9 4.8 - 85 1.9 293 Combined 16
Slide 32: Bowdens
Bowdens • Bowdens has existing NI 43-101 resource • Measured, Indicated & Inferred = 97Moz Ag (40 g/t Ag equivalent cut-off) • M, I & I = 130Moz AgEq (40 g/t Ag equiv cut-off) • JORC-compliant resource expected in next 2 months Class Cut-off Tonnes Grade Ag Eq cut (AgEq g/t) (t) Ag g/t Pb % Zn % AgE