Lachlan Star Limited · ASX:LSA
Lachlan Star — Investor Presentation (November 2011)
37 slides from Lachlan Star's investor presentation, Nov 3, 2011
Slide 1: Unhedged Gold Producer, World Class Deposits, Major Exploration Potential
Unhedged Gold Producer World Class Deposits For personal use only Major Exploration Potential North American Investor Presentation – November 2011 ASX: LSA TSX: LSA www.lachlanstar.com.au
Slide 2: Disclaimer
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 direct
Slide 3: Corporate Overview
Corporate Overview Listed on ASX and TSX under stock code “LSA” For personal use only 100% interest in a major gold project (CMD Gold Mine) in a politically stable country (Chile) Unhedged gold production operating at 50,000 ounces per annum run rate Production forecast to increase to 75,000 ounces
Slide 4: Experienced Management Team
Experienced Management Team Board of Directors For personal use only Chairman Mick McMullen Geologist with over 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 min
Slide 5: Capital Structure
Capital Structure If no Canadian Post Canadian 27 Oct 11 Prospectus by Dec For personal use only Prospectus 27 2011 Shares 56.97 m 75.37 m 77.21 m Warrants 4.85 m ($1.20, 15.71 m ($1.20, 16.79 m ($1.20, +Options $1.50) $1.50) $1.50) Special Warrants (share+1/2 18.4 million NIL NIL warrant @ $1.20 st
Slide 6: CMD Quarterly Highlights – KPIs
CMD Quarterly Highlights –KPI’s 3 months ended 3 months ended % Change Item Unit 30-Sep-11 30-Jun-11 For personal use only Ore Mined dmt 671,411 544,335 23% Waste Mined dmt 2,163,339 3,553,839 -39% Total Mined dmt 2,834,750 4,098,174 -31% Waste:Ore Ratio t:t 3.22 6.53 -51% Ore grade Au g/t 0.62 0.61
Slide 7: CMD Quarterly Highlights - Costs
CMD Quarterly Highlights -Costs For personal use only Ø CMD Gold Mine gross operating profit of US$4.08 million in the September quarter before exploration expenses Ø Total costs per ore tonne reduced by 28% Ø Cash costs before non cash process inventory adjustment increased by 7% driven by: Ø Minin
Slide 8: CMD Quarterly Highlights - Mining
CMD Quarterly Highlights -Mining 800 For personal use only Reserve mined 700 600 Outside Reserve Ø 88% of the ore mined in the 500 September quarter was sourced from outside the mineral Reserve Ore (kt) 400 Ø All pits significantly 300 200 100 outperformed the mineral - Reserve estimate except for L
Slide 9: CMD Quarterly Highlights - Mining
CMD Quarterly Highlights -Mining For personal use only 700,000 0.700 600,000 0.650 Ave. Au grade (g/t) 500,000 0.600 Ore mined (t) 400,000 0.550 300,000 0.500 200,000 0.450 100,000 - 0.400 Q1 Q2 Q3 Chisperos (t) Toro (t) Tres Perlas (t) Churrumata (t) Las Loas (t) Ave. Au grade (g/t) Ø Number of act
Slide 10: CMD Quarterly Highlights - Mining
CMD Quarterly Highlights -Mining 5,000 8.00 For personal use only 4,500 7.00 4,000 6.00 Material mined (kt) 3,500 Strip ratio (W:O) 5.00 3,000 2,500 4.00 2,000 3.00 1,500 2.00 1,000 1.00 500 - - Q1 Q2 Q3 Waste (kt) Ore (kt) Waste:Ore Ratio Ø Ore tonnes increased, waste:ore ratio reduced from 9:1 in
Slide 11: CMD Quarterly Highlights - Process
CMD Quarterly Highlights - Process Recovery Curve For personal use only 80 70 60 Recovery (%) 50 Ore moved to final dump 40 Secondary leach curve, dump leach 30 20 Primary leach curve 10 dynamic heap leach 0 0 100 200 300 400 Time (days) Primary leaching Secondary leaching Ø Pad 3 b trial very succe
Slide 12: CMD Quarterly Highlights - Process
CMD Quarterly Highlights - Process Ø Dump leach and two stage crush trial commenced on low grade material For personal use only (0.15 to 0.30 g/t Au) Ø Potential for step change in gold production (increase) and waste:ore ratio (decrease) Ø Large tonnage of mineralised material in the grade range 0.
Slide 13: LSA = Low Cost Gold Exposure
LSA = Low Cost Gold Exposure EV / Resource Ounce For personal use only $350 322 $300 $250 211 $200 A$/oz 161 160 155 148 $150 127 Average $119 $100 82 72 63 54 49 $50 35 33 25 $0 Source: Company Releases. Note: Market data as of 24 Oct 2011
Slide 14: CMD Location
For personal use only CMD Location
Slide 15: CMD Operations
CMD Operations For personal use only Ø Established mine with long history in highly prospective location Ø 8Mtpa crushing, stacking & elution plant currently operating at 3.6 Mtpa (up from 1.5Mtpa in Dec 2010) –presently mine constrained Ø 100tpd ball mill and CIL circuit Ø Copper recovery circuit Ø
Slide 16: CMD Production History
CMD Production History For personal use only CMD Gold Production by year 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 2010 2011 (est.) Ø Past production peaked at 135,000 oz Ø Objective: return operation to >100,000o
Slide 17: CMD Mine Plan
CMD Mine Plan For personal use only Ø 157,000 ounces in Probable Mineral Reserves @ US$1250/ounce gold price Ø Additional 350,000 ounces of Inferred Mineral Resources within pits – recent drilling aimed at upgrading resource classification to Measured and Indicated categories Ø Focus on mining the b
Slide 18: JORC/43101 Mineral Resource Growth
JORC/43101 Mineral Resource Growth For personal use only JORC/43101 Resource Ounces 1.6 1.4 1.2 Million Ounces of Gold 1.0 0.8 0.6 0.4 0.2 - Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 Ø Targeting significant increase by the end of 2011 Ø Approximately 33,000 m of drilling to be completed in 2011 – the most
Slide 19: CMD Mineral Resources
CMD Mineral Resources For personal use only
Slide 20: CMD Exploration – Toro Deposit
CMD Exploration –Toro Deposit Ø 3 new pits commenced June Ø 23 m grading 6.05 g/t Au from For personal use only quarter 75m downhole in DDH2011-72 Ø Drilling around edge of the pits has Ø 23m grading 1.76 g/t Au (from returned outstanding broad, high 25m downhole) and 55 m grading grade intercepts f
Slide 21: CMD Exploration – Toro Deposit
CMD Exploration –Toro Deposit For personal use only
Slide 22: CMD Exploration – Toro Deposit
CMD Exploration –Toro Deposit For personal use only
Slide 23: CMD Exploration – Toro Deposit
CMD Exploration –Toro Deposit For personal use only Mineralised Mantos Cabanas Toro Socorro Floridor Chisperos
Slide 24: CMD Exploration – Mariposa Prospect
CMD Exploration –Mariposa Prospect For personal use only Ø High grade vein drilled over 400m Ø Very limited drilling at depth Ø 1.5km strike length mapped on surface Ø 7m grading 7.3 g/t Au from 1 m downhole in RCH 2908 Ø 11 m grading 6.9 g/t Au from 9m downhole in RCH 2010-43 Ø 22m grading 5.2 g/t
Slide 25: CMD Exploration – Tres Perlas Deposit
CMD Exploration –Tres Perlas Deposit Ø Tres Perlas was the main ore source for the CMD Gold Mine during For personal use only the initial phase Ø Consists of a thick (circa 100 m) Manto that is open down dip Ø Large tonnage potential down dip, with the copper mineralisation from the adjacent Teck mi
Slide 26: CMD Exploration – Tres Perlas Deposit
CMD Exploration –Tres Perlas Deposit For personal use only
Slide 27: CMD Exploration – Tres Perlas Deposit
CMD Exploration –Tres Perlas Deposit For personal use only
Slide 28: CMD Exploration – Veneros Prospect
CMD Exploration –Veneros Prospect Encouraging near surface drill results For personal use only including: Ø 6 m grading 3.1 g/t Au from 22 m downhole in DTH-2011-41 Ø 8 m grading 1.2 g/t Au from 29 m downhole in DTH-2011-43 Ø 15 m grading 0.8 g/t Au from 7 m downhole in DTH-2011-53 ØTypical Manto st
Slide 29: CMD Copper Potential
CMD Copper Potential For personal use only Ø Located immediately adjacent to Teck Andacollo mine Ø Teck deposit hosts resources of 535 Mt grading 0.37 % Cu and 0.12 g/t Au Ø Teck have recently commissioned their 20Mtpa concentrator and announced a study into doubling production Ø Limited copper expl
Slide 30: CMD Copper Potential
For personal use only CMD Copper Potential
Slide 31: Company Strategy
Company Strategy Ø Increase crushed ore tonnages stacked onto the pad For personal use only Ø Investigate dump leach potential and if viable, commence dump leaching of low grade in pit material currently mined as waste Ø Continue to progress mining to low waste:ore ratio pits Ø Aggressively explore
Slide 32: CMD Mineral Reserves
CMD Mineral Reserves For personal use only CMD Mineral Reserves May 2011 Probable Reserve Grade Ounces Deposit Tonnes (Mt) (Au) (Kozs) Las Loas 1.2 0.7 25 Toro/Socorro 2.4 0.8 61 Tres Perlas 1.0 0.8 27 Churramata 0.4 0.9 11 Chisperos 0.9 1.1 33 Total 5.8 0.8 157
Slide 33: CMD Mineral Resources (August 2011)
CMD Mineral Resources For personal use only CMD Mineral Resources (August 2011) above 0.3 g/t Au Indicated Inferred Tonnes Grade Ounces Tonnes Grade Ounces Deposit (Mt) (Au) (Kozs) (Mt) (Au) (Kozs) Las Loas 2.9 0.8 73 1.5 0.8 37 El Sauce 7.1 0.7 156 Toro/Socorro 3.3 0.8 84 8.1 0.7 188 Tres Perlas 15
Slide 34: Lachlan Star's Other Assets – Bushranger
Lachlan Star’s Other Assets For personal use only Bushranger (100% reducing to 49%, New South Wales) Ø Scoping Study indicates economic project – refer below for pre capital (A$98m) results Ø Newmont Farming in to earn 51% over two years Bushranger Pit Optimisation Results Net Mineral Cu Price Cu Gr
Slide 35: Lachlan Star's Other Assets – Bushranger Mineral Resources
Lachlan Star’s Other Assets For personal use only Bushranger (100% reducing to 49%, New South Wales) Bushranger Mineral Resources (October 2011) above 0.2 % Cu Indicated Inferred Deposit Tonnes Grade Cu Tonnes Grade Cu (Mt) (Cu %) Tonnes (Mt) (Cu %) Tonnes Bushranger 24.9 0.4 94,620 27.6 0.3 91,080
Slide 36: Competent Persons Statement
Competent Persons Statement For personal use only Competent Persons Statement The information in this report that relates to the Mineral Resources of Tres Perlas, Chisperos, Las Loas, El Sauce, Churrumata and Toro/Socorro is based on information compiled by David Slater, who is a Member of The Austr
Slide 37: For Further Information
Unhedged gold production For personal use only Major World class exploration deposits potential For Further Information Lachlan Star Limited Lower Ground Floor 57 Havelock Street West Perth WA 6005 Tel: +61 8 9481 0051 Fax: +61 8 9481 0052 info@lachlanstar.com.au www.lachlanstar.com.au