Kgl Resources Limited · ASX:KGL
Kgl Resources — Kentor Gold — Investor Presentation (July 2010)
27 slides from Kgl Resources's investor presentation, Jul 19, 2010
Slide 1: Kentor Gold Investor Presentation July 2010
For personal use only Kentor Gold Investor Presentation July 2010
Slide 2: Contents
Contents For personal use only 1. Company Overview 3 2. Kyrgyz Republic 5 3. Andash Project 9 4. Board and Management 22 5. Reasons to Invest 24 6. Key Contacts 25 2
Slide 3: Overview
1. COMPANY OVERVIEW Overview For personal use only ASX-listed company focused on gold and copper projects in Kyrgyz Republic Core asset: the Andash gold-copper project – Part of the world class Tien Shan gold belt – JORC resource (Measured and Indicated): 19.2Mt @ 1.1g/t Au for 0.68Moz Au, 0.4%
Slide 4: Overview (cont'd)
1. COMPANY OVERVIEW Overview (cont’d) For personal use only Current strategy – Bring Andash Zone 1 into production. – Aggressive drilling programme on exploration prospects – Increase mine life via resource/reserve expansion – Obtain JORC resource classification on Zones 2 and 3 Corporate overvi
Slide 5: Central Asia
2. KYRGYZ REPUBLIC Central Asia For personal use only Kentor planning to own the second major minerals development in the country Kentor’s long in-country presence likely to materialise future acquisitive opportunities 5
Slide 6: Kyrgyz Republic
2. KYRGYZ REPUBLIC Kyrgyz Republic For personal use only Country well connected by rail Direct rail access to markets in Kazakhstan, China, Russia and Europe Long history of gold mining (Kumtor production 500,000oz per annum) Other Western companies active in the resources sector include Gol
Slide 7: Political Situation in Kyrgyz Republic
2. KYRGYZ REPUBLIC Political Situation in Kyrgyz Republic For personal use only April 2010 Revolution - overthrow of corrupt government Interim government appointed Rosa Otunbaeva appointed as interim President June 2010 ethnic violence in south of country between Uzbek and Kyrgyz 27th Jun
Slide 8: Tien Shan Gold Belt
2. KYRGYZ REPUBLIC Tien Shan Gold Belt For personal use only Talas Valley 8
Slide 9: Overview
3. ANDASH PROJECT Overview For personal use only Kentor ownership increased to 90% Advanced gold-copper project JORC Resource and Reserve Feasibility study complete Mining licence issued Mining equipment purchased Detailed engineering commenced Recruitment commenced Targeting produ
Slide 10: Overview (cont'd)
3. ANDASH PROJECT Overview (cont’d) For personal use only Easy topography Good road access Nearby power Nearby water Nearby rail Above: View from Andash orebody looking south 10
Slide 11: Project Funding
3. ANDASH PROJECT Project Funding For personal use only In advanced discussions with international banks re project debt Targeting 50% debt and 50% equity Expect to mandate a bank to provide debt in current quarter 11
Slide 12: Development Timetable
3. ANDASH PROJECT Development Timetable For personal use only Quarter Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar 2009 2009 2010 2010 2010 2010 2011 2011 2011 2011 2012 Due Diligence sds Acquisition Funding df Update & Optimise DFS Project Finance Construction Commissioning 12
Slide 13: Feasibility Study Results March 2010
3. ANDASH PROJECT Feasibility Study Results March 2010 For personal use only 1.5mtpa to 3mtpa throughput Simple and conventional open pit and flotation plant 3 stage crush, grind, float process Average annual production: – 70,000 oz Au and 7,400t Cu – High grade concentrate 24.5% Cu and 72 g
Slide 14: Project Improvements post the DFS
3. ANDASH PROJECT Project Improvements post the DFS For personal use only Increased gold recovery by 3.5% Increased the concentrate grade from 22% Cu to 24.5% Cu Deferred the regrind mill to stage 2 Recently acquired larger ball mill than planned in the Definitive Feasibility Study (DFS) – h
Slide 15: Capital Cost
3. ANDASH PROJECT Capital Cost For personal use only Brand new equipment to provide more Phase 1 Description reliable and efficient performance (1.5mtpa) Process Plant US$61.5m Expected to support significant mine life increases upon resource upgrades Mining – direct and indirect US$1.2m Tailing
Slide 16: Project Economics (KGL 90%)
3. ANDASH PROJECT Project Economics (KGL 90%) For personal use only Cost component Phase 1 Phase 2 (US$/t) (1.5mtpa) (3mtpa) Cash cost US$29/oz Au Mining 3.46 3.46 (after Cu credits and royalty) Processing 8.62 7.09 G&A 3.38 1.69 Initial mine life 6 years Total 15.46 12.24 Base Case NPV US$130
Slide 17: Andash JORC Resource & Reserve
3. ANDASH PROJECT Andash JORC Resource & Reserve For personal use only Andash JORC Resource Estimate Grade Metal Category Type Tonnage (kt) Au (g/t) Cu (%) Au (oz) Cu (t) Oxide 923 0.88 0.50 26,114 4,638 Measured Sulphide 3,160 1.21 0.47 122,932 14,900 Oxide 810 0.85 0.43 22,136 3,510 Indicated Sulp
Slide 18: Andash Licence Area
3. ANDASH PROJECT Andash Licence Area For personal use only 9.9m @ 7.9g/t Au 8m @ 6 g/t Au 57m @ at 1.5g/t Au, 1.4% Cu 18
Slide 19: Open Pit and Ore Body
3. ANDASH PROJECT Open Pit and Ore Body For personal use only Wide ore body, bulk mining Outcrops Low strip ratio 0.72:1 Gold Grade (g/t) 19
Slide 20: Andash Long Section through Block Model
3. ANDASH PROJECT Andash Long Section through Block Model For personal use only Low strip ratio Base of pit follows footwall High grade starter pit 20
Slide 21: Commissioning of Mining Equipment
3. ANDASH PROJECT Commissioning of Mining Equipment For personal use only Komatsu Moscow maintenance contract All machines commissioned New oils and filters No major defects found 21
Slide 22: Experienced Board
4. BOARD & MANAGEMENT Experienced Board For personal use only John Barr AM, MAICD Chairman, Non-Executive (Former director Oxiana, Transurban, Acacia and Iluka) Simon Milroy B.Eng (Mining) Managing Director (Formerly GM Project Development for Pan Aust, former Mining Manager Kingsgate) Hugh McKinnon
Slide 23: Management Team
4. BOARD & MANAGEMENT Management Team For personal use only Guy Cordingley General Manager Operations B. Eng. Mineral Engineering Copper gold flotation in Vietnam, Ghana, Indonesia, Turkey, Bulgaria and Spain Gerard Kelly Chief Financial Officer Accountant Ex Group Financial Controller Rio Tinto Kel
Slide 24: Reasons to Invest
5. REASONS TO INVEST Reasons to Invest For personal use only Advanced gold-copper project High grade concentrate highly sought after Near-term development (Definitive Feasibility Study complete) Very low cash costs (net cash cost of US$29/oz after copper credits) 12 years operational exper
Slide 25: For more information contact
6. KEY CONTACTS For more information contact For personal use only Simon Milroy on +61 7 31213206 or visit www.kentorgold.com ASX Code: KGL Level 36, Riparian Plaza, 71 Eagle St Brisbane, QLD, Australia 4000 Fax: +61 7 3121 3030 Forward-Looking Statements: Competent Persons Statement: This presentat
Slide 26: Schematic Flow Sheet
APPENDIX A – ANDASH PROJECT Schematic Flow Sheet For personal use only 26
Slide 27: Andash Cross Section
APPENDIX A – ANDASH PROJECT Andash Cross Section 320 m E For personal use only 27