Kingsrose Mining Ltd · ASX:KRM
Kingsrose Mining — Investor Presentation (July 2016)
24 slides from Kingsrose Mining's investor presentation, Jul 19, 2016
Slide 1: High Grade, Low Cost Turnaround Opportunity
For personal use only High Grade, Low Cost Turnaround Opportunity July 2016 | ASX: KRM
Slide 2: The Way Linggo Project – A Great Geological Setting
The Way Linggo Project – A Great Geological Setting Located on the prolifically mineralized Trans-Sumatran Fault, For personal use only a major focus of Tertiary Age Gold-Silver Deposits “Kingsrose Mining holds a Contract of Work (CoW) comprising 10,500 ha which is located at the southern end of the
Slide 3: Kingsrose Mining – An Investment Opportunity
Kingsrose Mining – An Investment Opportunity Substantial High Opportunity to expand known 1.4Mt @ 8g/t Au & 22g/t For personal use only Grade Resource Ag for 360,000oz Au and 1.012Moz Ag Resource and increase mine life via exploration from existing development at Talang Santo Strategic Review Mining
Slide 4: The Talang Santo Mine
The Talang Santo Mine Commenced production in July 2014 For personal use only Mineral Resource of 1.4Mt @ 8g/t Au & 22g/t Ag for 360,000oz of Au & 1,012,000 oz of Ag1 Opportunity to upgrade Inferred Resource of 739,000t @ 5.2 g/t Au through diamond drilling from the 5 Level 5 Level haulage s
Slide 5: The Talang Santo Mine – Significant Upside
The Talang Santo Mine – Significant Upside Current Mine Development For personal use only Multiphase epithermal vein system – open at depth and to the West Excellent potential to increase Resource at Talang Santo due to the presence of multi-phase veins and splays which have only been partially
Slide 6: 5 Level Haulage Shaft – Sinking has Recommenced
5 Level Haulage Shaft – Sinking has Recommenced Provide direct access to higher grade portions of the ore body For personal use only Provide additional hoisting capacity and flexibility Provide a platform for underground drilling to increase Resource base KEY PROJECT MILESTONES Breakthrough to
Slide 7: Established Infrastructure
Established Infrastructure 140Ktpa processing plant with Merrill Crowe circuit – historical recoveries up For personal use only to 97% Au Opportunity to expand to 200Ktpa for low capital cost Established all weather haul roads providing ease of access to priority targets throughout the Project
Slide 8: Real Scope for Organic Growth at the Project Scale
Real Scope for Organic Growth at the Project Scale Multiple epithermal targets within For personal use only the existing 10,500ha Project area Recent age dating and petrological studies indicates a young system (~350,000 years old) – amongst worlds’ youngest Little time for erosion – discovery
Slide 9: Expanding Exploration Footprint Within the Project
Expanding Exploration Footprint Within the Project For personal use only “Petrological research shows that there is abundant adularia (a key mineral formed during the deposition of bonanza zones) present with the gold mineralization… …thus far, three new exciting targets have emerged… two of which h
Slide 10: Growing Pipeline of High Priority Exploration Targets
Growing Pipeline of High Priority Exploration Targets Silica Cap discovered at Way Handa For personal use only Silica Caps represent the uppermost expression of epithermal vein systems New discovery – no previous drilling Mapping, trenching and sampling is ongoing Initial drilling campaign
Slide 11: Looking Ahead – Month Targets
Looking Ahead – 12 Month Targets Evaluate alternative water management options with a focus on reducing For personal use only the flow of water into the mine Improve pumping network reliability – establishment of a ‘fit-for-purpose’ pumping station on the 5 Level Completion of 5 Level haulage
Slide 12: Looking Ahead – Longer Term Targets
Looking Ahead – Longer Term Targets For personal use only Establish mining fronts on multiple production levels to maximise production and leverage off existing hoisting, haulage and processing capacity Increase Resource base at Talang Santo through systematic drilling program Discover additio
Slide 13: Technical Review of Mining
Technical Review of Mining Following the retirement of Bill Phillips on 22 June 2016, the Board initiated a For personal use only comprehensive review of mining operations to address ongoing operational challenges and engaged the following consultants: Mining Plus International consulting firm spe
Slide 14: Water Management Plan
Water Management Plan For personal use only Water inflows have impacted mining productivity to date. Significant improvements have been made over the past year through: Establishment of 3, multistage pumping stations on the 4 Level horizon pumping direct to surface – equipment reliability has rema
Slide 15: Planned Improvements to Water Management
Planned Improvements to Water Management Hydrological Study – independent water management experts CDM Smith have For personal use only commenced a multi-faceted water management review incorporating: A detailed study to update the Talang Santo hydrological model The development of alternate wat
Slide 16: FY 2016 Production
FY 2016 Production SEPTEMBER DECEMBER MARCH JUNE For personal use only 2015 2015 2016 2016 UNITS QUARTER QUARTER QUARTER QUARTER FY 2016 MINE PRODUCTION ORE MINED t 13,162 21,341 17,571 13,807 65,882 MINED GRADE (GOLD) g/t 10.2 9.4 8.5 8.8 9.2 MINED GRADE (SILVER) g/t 26 24 17 18 21 ORE PROCESSED TO
Slide 17: Cost Base Highly Leveraged to Production Output
Cost Base Highly Leveraged to Production Output For personal use only 17
Slide 18: The Way Linggo Project – Key Drivers
The Way Linggo Project – Key Drivers For personal use only High Grade Gold producer Targeting low costs Substantial opportunity to capitalise on Talang Santo’s high grade Resource of 1.4Mt @ 8 g/t Au & 22 g/t Ag for 360,000oz Au and 1.012Moz of Ag Extensive organic growth potential through e
Slide 19: Disclaimer & Competent Persons Statement
Disclaimer & Competent Persons Statement The information contained in this Presentation has been prepared by Kingsrose Mining Limited (“Kingsrose” or the “Company”). This Presentation does not constitute an offer or invitation to any person to subscribe for or apply for any securities in the Company
Slide 20: Appendix | Corporate Overview
Appendix 1 | Corporate Overview Key Statistics (ASX:KRM) Directors & Management For personal use only Shares on issue 359m John Morris Executive Chairman Options on issue 11.3m Doug Kirwin Non Exec Director Share Price $0.15 Andrew Spinks Non Exec Director Market Cap $54m Matthew Smith CFO Cash & Bu
Slide 21: Appendix | Deferral of Debt Repayments
Appendix 2 | Deferral of Debt Repayments For personal use only The Company’s lenders have reached an in-principle agreement to defer debt repayments until July 2017 Revision subject to formal documentation and ASX waiver pursuant to Listing Rule 10.1 Revised terms as follows: Lender Loan Balan
Slide 22: Appendix | Community, Safety & the Environment
Appendix 3 | Community, Safety & the Environment Occupational Health & Safety For personal use only Continued focus on improving safety practices Environmental Awareness Small footprint underground mines – minimise surface disturbance Rehabilitation and reforestation program Natural resource
Slide 23: Appendix | Way Linggo Project Mineral Resource Statement
Appendix 4 | Way Linggo Project Mineral Resource Statement As at 30 June 2015 For personal use only Classification Tonnes(Kt) Gold (Au) g/t Au ounces Silver (Ag) g/t Ag ounces (Koz) (Koz) Talang Santo Measured 197 10.8 68 25 155 Indicated 468 11.1 167 22 326 Inferred 739 5.2 124 22 531 Subtotal 1,40
Slide 24: Contact Details
Contact Details For personal use only Kingsrose Mining Limited + 61 8 9486 1149 info@kingsrosemining.com.au www.kingsrosemining.com.au 24