Lachlan Star Limited · ASX:LSA
Lachlan Star — Investor Presentation (September 2012)
30 slides from Lachlan Star's investor presentation, Sep 7, 2012
Slide 1: Unhedged Gold Producer
5 September 2012 Unhedged Gold Producer For personal use only World Class Deposits Major Exploration Potential ASX: LSA www.lachlanstar.com.au TSX: LSA
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 For personal use only Listed on ASX and TSX under stock code “LSA” 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 For personal use only Board of Directors Chairman Mick McMullen Geologist with over 19 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: Lachlan Star Capital Structure
Lachlan Star Capital Structure For personal use only 4 Sept 2012 Shares 86.38m Warrants +Options 16.47m (avg strike price of A$1.22) Share price A$1.28 Market Cap (undiluted) US$113 million Enterprise Value (EV) US$100 million EV/ resource ounce of gold US$33/oz
Slide 6: CMD Operations
CMD Operations For personal use only Established mine with long history in highly prospective location CMD has produced in excess of 900,000 ounces of gold since 1995 8Mtpa crushing, stacking & elution plant currently operating at circa 4 to 4.5 Mtpa (up from 1.5Mtpa in Dec 2010) –presently mi
Slide 7: CMD Location
For personal use only CMD Location
Slide 8: CMD Quarterly Highlights - Costs
CMD Quarterly Highlights - Costs For personal use only $30.00 Total Cost (US$/t ore) $25.00 $20.00 $15.00 $10.00 $5.00 $0.00 Quarter ending Total costs (including waste stripping) gradually reduced in 2011 but increased in March 12 Qtr –driven by reduced tonnages in month of March and decision to
Slide 9: CMD Quarterly Highlights – Mining
CMD Quarterly Highlights – Mining For personal use only Ore Reconciliation June 2012 Quarter Against April 2012 Mineral Resource Outside Resource, 10% Inferred Resource, 15% Indicated Resource, 75% Ore reconciliation improved with 2012 mineral resources Reconciliation improving as exploration dr
Slide 10: CMD Quarterly Highlights – Mining
CMD Quarterly Highlights – Mining For personal use only 1,000,000 0.70 0.65 900,000 0.60 800,000 0.55 700,000 0.50 0.45 Ave. Au grade (g/t) 600,000 Ore mined (t) 0.40 500,000 0.35 0.30 400,000 0.25 300,000 0.20 200,000 0.15 0.10 100,000 0.05 - - Mar-11 Qrt June-11 Qrt Sept-11 Qrt Dec-11 Qrt Mar-12 Q
Slide 11: 2012 CMD Mine Plan
2012 CMD Mine Plan For personal use only Focus on mining the bulk tonnage, low waste:ore ratio Manto deposits Combination of crushed (two and three stage) and ROM dump leach material Step change in tonnages stacked to drive down unit costs Short hauls to crusher Reduced mining costs Owne
Slide 12: CMD Mineral Resources
CMD Mineral Resources For personal use only
Slide 13: CMD Mineral Resource Growth
CMD Mineral Resource Growth For personal use only Indicated and Inferred Ounces of Gold in Mineral Resources 3.5 3.0 2.5 Million Ounces 2.0 1.5 1.0 0.5 - Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 Jan-12 Feb-12 Apr-12 Inferred Ounces Indicated Ounces
Slide 14: CMD Processing
CMD Processing For personal use only Current processing is three stage crushing Dump leach and two stage crush trials highly successful on low grade material (0.15 to 0.30 g/t Au) Will underpin step change in gold production (increase) and waste:ore ratio (decrease) Final recovery of circa 5
Slide 15: CMD Looking Forward
CMD Looking Forward For personal use only Investment program to set the operation up for the future almost complete Construction of ROM leach pad Construction of new crushed leach pad (Pad 6) Maintenance program through crushing circuit to improve availability Pre stripping of pits to prov
Slide 16: CMD – Setting the Operation up for the Future
CMD – Setting the Operation up for the Future For personal use only
Slide 17: Crushing Plant Productivity
Crushing Plant Productivity CY 2012 For personal use only 1,600,000 100% 90% 1,400,000 80% 1,200,000 70% 1,000,000 60% 800,000 50% 40% 600,000 30% 400,000 20% 200,000 10% 0 0% Q1 Q2 Q3 Q4 Tonne Availability Utilization *Q3 and Q4: Forecast 17
Slide 18: Continuous Improvement Projects
Continuous Improvement Projects NaCN consumption optimization For personal use only Orica NaCN Onstream Analyzer & Addition Control System Better NaCN solution concentration control resulting in significant NaCN cost savings Still room for improvement and additional monitoring equipment being in
Slide 19: Continuous Improvement Projects
Continuous Improvement Projects Drilling & Blasting Management For personal use only • Explosives Powder Factor optimization for cost/t reduction • Ore fragmentation improvement • Larger blasting patterns • Ore dilution control • Drilling fleet efficiencies (availability & utilization) 19
Slide 20: Au Oz stacked on Leach Pad
Au Oz stacked on Leach Pad 2011-2012 For personal use only 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 H1’11 H2’11 Q1’12 Q2’12 Q3’12 Q4’12 Real Fcst *Q4: Q4’12 Au Oz to the pad will average circa 8,000 oz/month. 20
Slide 21: CMD Exploration –Chisperos and Toro
CMD Exploration –Chisperos and Toro For personal use only Chisperos Deposit Highest grade deposit- +1 g/t Au grade Recent results include 21.2m grading 3.33 g/t Au from 82m downhole DDH 2012-125, 17m grading 2.11 g/t from 12m downhole and 15m grading 1.43 g/t Au from 77m downhole in RCH 2012-8
Slide 22: CMD Exploration – Tres Perlas Deposit
CMD Exploration – Tres Perlas Deposit For personal use only Tres Perlas was the main ore source for the CMD Gold Mine during the initial phase of the mine April 2012 Tres Perlas mineral resource contains 2.46 m ounces of gold • Higher grade zones around the El Sauce area now the focus of drillin
Slide 23: CMD Exploration – Tres Perlas Deposit
CMD Exploration – Tres Perlas Deposit For personal use only
Slide 24: CMD Exploration – Tres Perlas Deposit
CMD Exploration – Tres Perlas Deposit For personal use only
Slide 25: Company Strategy
Company Strategy For personal use only Increase ore tonnages stacked onto the pad, both crushed and ROM dump leach Continue to progress mining to low waste:ore ratio pits Optimise mine fleet to drive unit rate reduction Turn to account the outstanding results of the aggressive exploration pr
Slide 26: CMD Mineral Resources
CMD Mineral Resources For personal use only 1. Reported above 0.3 g/t Au for all 2. Table contains rounding and may not sum precisely
Slide 27: Lachlan Star’s Other Assets
Lachlan Star’s Other Assets For personal use only Bushranger (100% reducing to 49%, New South Wales) Scoping Study indicates economic project – refer below for pre capital (A$98m) results Newmont Farming in to earn 51% over two years Bushranger Pit Optimisation Results Net Operating Mineral Wast
Slide 28: Lachlan Star’s Other Assets
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 Grade Cu Grade Cu Tonnes (Mt) Tonnes (Mt) (Cu %) Tonnes (Cu %) Tonnes Bushranger 24.9 0.4 94,620 27.6 0.3 91,080
Slide 29: Competent Persons Statement
Competent Persons Statement For personal use only Competent Persons Statement The information in the news release that relates to the Mineral Resources of Tres Perlas, Chisperos, Las Loas and Toro is based on information compiled by David Slater, who is a Chartered Professional Member of The Austral
Slide 30: 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 mick.mcmullen@lachlanstar.com.au info@lachlanstar.com.au www
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