Slide 1: Merger with WCB Resources
ACN 009 148 529 T: +61 2 8249 4968 For personal use only www.kingstonresources.com.au Kingston Resources (KSN:ASX) Merger with WCB Resources (WCB:TSXv) September 2017
Slide 2: Disclaimer
Disclaimer For personal use only Forward Looking Statements Certain statements contained in this presentation, including information as to the future financial or operating performance of Kingston Resources Limited (“KSN”) and its projects, are forward looking statements. Such forward looking statem
Slide 3: KSN to merge with WCB Resources
KSN to merge with WCB Resources For personal use only • Kingston Resources to merge with WCB Resources under a Canadian Plan of Arrangement • KSN will assume management of the Misima Gold Project located in Papua New Guinea – Binding heads of agreement (HoA) signed – Completion expected within 90 da
Slide 4: KSN Value Proposition
KSN Value Proposition For personal use only • Post completion, KSN will sit at the low end of gold exploration peers on an EV/oz basis • Significant scope to increase resources driving short term shareholder value • Current market metrics suggest considerable value uplift at envisaged production rat
Slide 5: History
Misima Gold Project - History • Placer produced 3.7Moz Au at Misima For personal use only – Open Pit mined from 1989 to 2001 – Stockpiled ore treated to 2004 – Initial mine capital U$202m – Produced 3.7Moz Au and 22Moz Ag – Mill nameplate 5.5Mtpa, achieved 6.9Mtpa – LOM recoveries, gold 91.7% and si
Slide 6: Mining background
Misima Gold Project – Mining background For personal use only “Misima was a long life and low cost gold mine, driven by low strip ratio and an industry leading low cost milling operation” Misima stats from Placer Pacific Annual Reports 1989 - 2004. Reserve grade at end of 1990 1.26 g/t Au Grade mill
Slide 7: Targets
Misima Gold Project - Targets For personal use only • What we have – August 2017, NI43-101 resource of 72.7Mt at 1.0 g/t for 2.3Moz Resource Cut-off Tonnes Gold Silver Au Ag Deposit OXIDE Category g/t Au Mt g/t Au g/t Ag Moz Moz Indicated 0.37 5.0 0.7 10.8 0.1 1.8 Oxide Inferred 0.37 7.5 0.8 12.9 0.
Slide 8: Grade upside
Misima Gold Project – Grade upside For personal use only • Positive reconciliation Au Cut off g/t Material Description Treatment Location – Misima delivered 172% more gold than the 1990 reserve 0 to 0.49 Soft-Waste Waste Dump estimate and a 124% positive reserve grade reconciliation 0 to 0.69 Hard -
Slide 9: Today
Misima Gold Project - Today For personal use only Umuna Stage 6 pit * Looking SW over the rehabilitated Umuna pit * Alluvial mining of the Ginesia splay * Satellite imagery of the rehabilitated mill and pit # Source : * August 2017 site visit, # Quickbird Imagery high resolution satellite 2012 9
Slide 10: Exploration upside
Misima Gold Project – Exploration upside For personal use only • Immediate extensional upside in Umuna Deeps • Splay structures on Misima North southeast side of Umuna with evidence of high grade, shallow mineralisation • Untested strike open at Misima North • Quartz Mountain area: average hole dept
Slide 11: Exploration Upside
Misima Gold Project – Exploration Upside For personal use only Historical work shows a strong correlation between channel sampling and underlying mineralisation. This provides immediate extensional drill targets outside of the existing resource. 160m @ 1.23 g/t 64m @ 1.00 g/t Umuna North 130m @ 1.62
Slide 12: Exploration upside
Misima Gold Project – Exploration upside For personal use only Central Umuna Zone shows strong thickness and continuity to depth • Drill holes outside the Resource that need follow-up Umuna – 120m @ 1.57g/t Au from surface in GRC1234 – 60m @ 1.43g/t Au from 280m in PM1417 – 22m @ 2.14g/t Au from 172
Slide 13: Resource overview
Misima Gold Project – Resource overview For personal use only North end of Umuna section 21300N. South end of Tonowak (oblique section) Slice through optimised pit shells at US$1,000 (magenta), US$1,200 (green), US$1,400/oz (orange) (Mining One, 2015) 13
Slide 14: Future
Misima Gold Project - Future • Stage 1(pre-completion) For personal use only • JORC 2012 resource • Delineate exploration targets • Develop exploration schedules • Stage 2 (1-3 months) • Exploration approvals • Environmental Permit • Establish operational team • Stage 3 (3-9 months) • Commence phase
Slide 15: Australian Exploration
Australian Exploration For personal use only Priority on advanced projects at Bynoe and Livingstone • Bynoe (Li): RC drilling to follow up results from June 2017. Emphasis is on working towards a maiden resource • Livingstone (Au): staged exploration building upon success of recent auger drilling at
Slide 16: Bynoe (Li)
Bynoe (Li) For personal use only • Nine granted tenements, 281km2 • 2,661 soil samples collected as at July 2017 – Main focus has been EL31133 (44%) with the remainder spread across three other tenements – Waiting for results for ~800 samples • Significant lithium mineralisation intersected at Lei1
Slide 17: North Arunta (Li)
North Arunta (Li) For personal use only • Eight granted tenements located within the Barrow Creek Pegmatite Field and the Alcoota Pegmatite Region • Multiple historic workings for tin, tantalum and tungsten. Historic and current exploration has built a strong case for lithium potential in the area •
Slide 18: Livingstone Project (Au)
Livingstone Project (Au) For personal use only • KSN is earning a 75% interest in the Livingstone Gold Project, located 140km northwest of Meekatharra in Western Australia • The project holds a JORC2004 Inferred resource of 49,900oz and numerous high grade historic intersections including: – 18m @ 7
Slide 19: KSN Corporate Snapshot today
KSN Corporate Snapshot today For personal use only CAPITAL STRUCTURE KEY PERSONNEL Shares on issue 669,082,367 shares Chairman Anthony Wehby FCA, MAICD Market capitalisation (@ A$0.15 per share) A$10m Managing Director Andrew Corbett BE(Hons) MBA Cash on hand (June 30, 2017) A$3.9m Executive Directo
Slide 20: KSN proforma capital structure
KSN proforma capital structure For personal use only • Based on the proposal ratio of 4.5 KSN shares for each WCB security CAPITAL STRUCTURE KSN WCB KSN Proforma Shares on issue 669,082,360 shares 669,082,360 shares New Shares for WCB shareholders 67,244,883 shares 302,601,974 shares Estimated New S
Slide 21: Board and Management
Board and Management For personal use only Anthony Wehby – Chairman • Anthony was a founding director and former Chairman of Aurelia Metals Ltd, an ASX listing mining company, in his role oversaw the progression of the company from exploration through to production. Prior roles include Chairman of T
Slide 22: Appendix
Appendix For personal use only Additional information relevant to the Misima NI43-101 mineral resource estimate, pursuant to Listing Rule 5.10 to 5.12: • 5.12.1 The resource estimate for Misima was completed by Mr Scott Andrew McManus, an employee of Skandus Pty Ltd and a Qualified Person as defined
Slide 23: Plant Site Aerial View
Plant Site Aerial View For personal use only Plant removed and ready for rehab 2005 Operational Plant 23
Slide 24: 2nd Phase Revegetation
2nd Phase Revegetation For personal use only ~200 meters ~500 meters Cooktown Waste Rock Dump (Reveg. started ~1996, top bench finished 1999) 24
Slide 25: Misima Island
For personal use only Misima Island 25
Slide 26: PNG Resource Investment
PNG Resource Investment For personal use only 26