Dragon Mining Limited · HKEX:1712
Dragon Mining — Investor Presentation (May 2010)
36 slides from Dragon Mining's investor presentation, May 2010
Slide 1: Dragon Mining Limited Investor Presentation May 2010
DRAGON MINING LIMITED Investor Presentation May 2010 The information in this presentation that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr Neale Edwards BSc (Hons), a Member of the Australian Institute of Geoscientists who is full time emp
Slide 2: Disclaimer
Disclaimer The purpose of this presentation is to provide general information about Dragon Mining Limited (the "Company"). Unless otherwise stated herein, the information in this presentation is based on the Company's own information and estimates. This presentation does not constitute or form any p
Slide 3: Scandinavian Gold Producer
Scandinavian Gold Producer Svartliden Gold Mine • 40,000 ounces Vammala Production Centre • Orivesi 20,000 ounces • Jokisivu 10,000 ounces Cash & bullion (31 Mar 10) $11.8m Produce 70,000 oz in 2010
Slide 4: Corporate Overview
Corporate Overview Issued Capital • Fully Paid Ordinary Shares 737.3m • Options (exercise prices 14c – 21c) 10.2m • Convertible Notes (Feb 2011) 10.2m • Market Capitalisation (14 May 2010) A$61.0m Substantial Shareholders • Nicolas Mathys 130.4m 17.7% • Brinkley Mining, Eurogold, Allied Group 127.9m
Slide 5: Corporate Overview
Corporate Overview Directors Tapani Järvinen Peter Cordin Non-Executive Director Executive Chairman Mr Järvinen retired as President and CEO of Outotec Oy in Mr Cordin is a civil engineer with more than 35 years December 2009 and is currently a Board member of a number experience in the evaluation a
Slide 6: Svartliden Gold Mine
Svartliden Gold Mine Location Dragon’s Cash Engine
Slide 7: Svartliden Gold Mine
Svartliden Gold Mine Statistics to 31 March 2010 Project to Date YTD March 2010 Ore Processed 1,571,861 t 84,193 t Head Grade 4.79 g/t 3.73 g/t Recovery 91.05 % 92.90 % Gold Produced 220,270 oz 9,368 oz • March Quarter 2010 Cash Cost US$620 March Quarter 2010 Costs Mining • March Quarter 2010 Sellin
Slide 8: Svartliden Gold Mine
Svartliden Gold Mine Transitioning underground in 2010 Aug 08 Jan 09
Slide 9: Svartliden Gold Mine
Svartliden Gold Mine Mine Plan • 1 km underground exploration decline. • 100,000 tonne test mining.
Slide 10: Svartliden Gold Mine
Svartliden Gold Mine Increase mine life more than 5 years 1. Eastern Zone Open Cut Extension 4,600m - A$0.5m 1 2. North & Main Lode Depth Extension 10,000m - A$1.0m 2 3 3. North & Main Lode Depth Extension 4,645m - A$0.5m 4 4. Depth Extension Drilling 2,000m - A$0.2m 5 5. Depth Extension Drilling 2,
Slide 11: Svartliden Gold Mine
Svartliden Gold Mine Mine Corridor – Svartliden West
Slide 12: Svartliden Gold Mine
Svartliden Gold Mine Regional • Potential to host a number of gold deposits. • Extensive coverage by detailed airborne geophysics and regional geochemistry, identifying >30 areas of interest. • Detailed geochemistry across four high priority prospects returned very encouraging results.
Slide 13: Svartliden Gold Mine
Svartliden Gold Mine Open Pit Apr 08 Oct 09
Slide 14: Svartliden Gold Mine
Svartliden Gold Mine Tailings Dam Jan 08 Oct 09
Slide 15: Finland Location
a Finland Location SUKSETON HANHIMAA KUUSAMO- JOKISIVU KAAPELINKULMA
Slide 16: Vammala Production Centre
Vammala Production Centre Statistics to 31 March 2010 Project to Date YTD March 2010 Ore Processed 498,616 t 60,872 t Head Grade 5.79 g/t 3.82 g/t Recovery 83.01 % 82.25 % Gold Produced 77,021 oz 6,162 oz • March Quarter 2010 Cash Cost US$805 March Quarter 2010 Costs • March Quarter 2010 Selling Pri
Slide 17: Orivesi Gold Mine
Orivesi Gold Mine Increasing Mine Life 1 2 4 3
Slide 18: Orivesi Gold Mine
Orivesi Gold Mine Decline Portal Jan 10 Aug 08
Slide 19: Orivesi Gold Mine
Orivesi Gold Mine Ore Loading for Transport to Vammala Aug 07
Slide 20: Jokisivu Gold Mine
Jokisivu Gold Mine • Resource 1,831,000 tonnes @ 6.26 g/t gold (368,600 ounces). • Decline development in 2010 • Produce 10,000 ounces in 2010.
Slide 21: Jokisivu Gold Mine
Ka Jokisivu Gold Mine Dragon Mining = \ \ \ \ 6 779 500 mN a / mere So 2.426.500 427 000 mN ! ral 2.425 500 mN 2.426 000 mN | |
Slide 22: Jokisivu Gold Mine
Jokisivu Gold Mine 1. Area between Arpola and Kujankallio 1 3,000m - A$0.4m 2. Kujankallio 250-500m 8,000m - A$0.4m 3. Arpola 200-500m 3 5,000m - A$0.6m 2 Targeting > 200,000 oz • Open pit mining commenced in 2009 at Kujankallio. • Establish > 5 year mine life.
Slide 23: Kaapelinkulma Gold Project
Kaapelinkulma Gold Project • Resource of 161,000t at 6.2 g/t - 31,900 oz. • Down plunge and along strike potential. • Production in 2012. • Underground potential. • 4,200m of drilling commenced.
Slide 24: Kaapelinkulma Gold Project
*». Kaapelinkulma Gold Project Dragon Mining 6 791 050 mN 6 791 250 mN 6 791 450 mN Kaapelinkulma Open Pit om VK/KKU-58 4.55m @ 13.80 git Au 50m / VKIKKU-65 VKIKKU-58 9.95m @ 46.28 git Au Lerooren 4.00m @ 5.19 git Au 1.150m 1 1 Kaapelinkulma b200m Resources Indicated - 78,000t @ 8.4 g/t Au Inferred
Slide 25: Kuusamo
Kuusamo The Next Production Centre • Established resources of 178,800 ounces. • Open at depth. • Warrants an agressive exploration program over 3 years to significantly increase resources. • Potential to be next production centre.
Slide 26: Hanhimaa
Hanhimaa • Holding encompasses 20 kilometres strike of the Hanhimaa Shear Zone. • Gold potential identified in the early 2000’s. • Discovery of three gold prospects - Kiimalaki, Kellolaki, Kiimakuusikko. • Significant number of untested gold anomalies. • Local and worldwide analogies.
Slide 27: Finland Exploration
Finland Exploration Dec 07 Jun 08
Slide 28: Production Project Pipeline
Production Project Pipeline
Slide 29: Gold Price and Exchange Rates
Gold Price and Exchange Rates Margins Increasing GOLD PRICE - ROLLING 12 MONTHS 1600 10,000 • Revenue in USD. 1400 9,000 • Costs in SEK & EUR. AU 1200 8,000 • Weakening EU currencies. USD, AUD, EUR USD SE USD AUD SEK 1000 7,000 • Lower cash costs and EUR higher margins. SEK 800 6,000 EUR • Significa
Slide 30: Fiscal Regime in Scandinavia
Fiscal Regime in Scandinavia • No mining royalties. • Sweden corporate tax rate is 26.3%. • Finland corporate tax rate is 26.0%. • Gross tax losses available - $44m (31 Dec 09).
Slide 31: Underground miners comparison – EV to Resource oz
Underground miners comparison – EV to Resource oz Junior Underground Miners EV/Resource oz 450 Dragon has excellent 400 leverage to rising gold price 350 300 250 A$/oz 200 150 100 50 - Medusa Bendigo Dominon Avoca Silver Lake Focus Beaconsfield Dragon Apex
Slide 32: Cash & Total Margin Comparisons
Cash & Total Margin Comparisons Junior Underground Miners Cash Margin & Total Cost Margin/oz 1,200 Dragon’s cash and total 1,000 cash margins competitive with Peers 800 600 A$/oz 400 200 - Medusa Silver Lake Avoca Dragon Dominon Beaconsfield Focus Bendigo Apex -200 -400 Cash Margin Total Margin Cale
Slide 33: DRA – 40 Percent Interest
DRA – 40 Percent Interest • Consolidation of all mineral rights under one entity. • Substantial inventories of chromium, iron and nickel for the development and production of refined stainless alloys. • Access to proposed rail line to service Oakajee Industrial Estate and proposed deep water port.
Slide 34: DRA – 20 Percent Free Carried Interest Zara Project - Eritrea
DRA – 20 Percent Free Carried Interest Zara Project - Eritrea • Koka Deposit – Indicated Resources of 5 Mt at 5.8 g/t gold for 944,000 ounces. • Scoping Study – 110,000 ounces per year at US$424 an ounce. • Feasibility Study completed in July 10. • Call option granted to Chalice (30 Jun 10) • $8m ca
Slide 35: Overview
Overview • Svartliden, Sweden and Vammala, Finland Production Centres. • Immediate potential to add to mine reserves. • Excellent exploration potential – near mine & regional. • Margins increasing. • Positioned for Growth.
Slide 36: Appendices Gold Resource Inventory
Appendices Gold Resource Inventory as at 31 December 2009 Project Tonnes Gold (g/t) Gold (ounces) SVARTLIDEN Measured 471,000 3.3 50,400 Indicated 976,000 3.8 120,400 Inferred 87,000 5.1 14,400 Total 1,534,000 3.8 185,200 VAMMALA Measured 206,000 7.2 47,900 Indicated 1,490,600 5.7 270,600 Inferred 1