annual general meeting presentation
DESCRIPTION
Presentation given at the Annual General Meeting of Kingsrose Mining Ltd in November 2009.TRANSCRIPT
Slide 1
Kingsrose Mining Kingsrose Mining LimitedLimited
Annual General MeetingAnnual General MeetingPerthPerth
2626thth November 2009November 2009
Slide 2
Kingsrose Mining Limited
OBJECTIVE
“Aggressively develop into a significant gold producer based on our proven in-house expertise in underground mining and exploration.”
FOCUSSED APPROACH
“Acquisition and development of production and near productionprojects evaluated as having excellent exploration upside.”
PROJECTS
Way Linggo, SumatraComet Vale Joint Venture, Kalgoorlie
Slide 3
Board and Executive Management
Mr John Morris Executive ChairmanMr Timothy Spencer Chief Financial OfficerMr Bill Phillips Non-Executive DirectorDr Mike Andrews Non-Executive Director
Mrs Jeannette Smith Joint Company Secretary Miss Tanya Ashley Joint Company Secretary
Slide 4
Corporate Summary
Ordinary Shares on Issue 219.3m (listed) (includes 64.8m escrowed)
Options 38.5m (listed)15.7m (unlisted)
Convertible Notes 11,000,000
Market Capitalisation (undiluted) A$142m (@ A$0.65/share)
Major Shareholders Icon Enterprises Ltd (19.4%)KRM (WA) Pty Ltd (9.1%)
Cash on Hand @ 31 Oct 09 A$9.5M
Slide 5
Way Linggo Project - South Sumatra, Indonesia
Slide 6
Way Linggo Project - Overview
• Construction of 140,000 tonnes per annum underground gold mine and processing facility
• Mineral rights held under 4th Generation Contract of Work
• Feasibility study completed and Government approvals for construction obtained
• Commissioning 1st Quarter 2010
• Projected 45,000 oz Au and 750,000 oz Ag annual production from 2010
Slide 7
Way Linggo Project - Project Snapshot
JORC Total Resource669,000t @ 8.44g/t Au, 129g/t Ag10.6g/t gold equiv., 227,600 Au Eq oz
MiningCommenced on 2 levels 1020mRL, 1065mRLStrongly Positive ReconciliationsApprox 7000t @ 18g/t+ Au, 150g/t Ag stockpiledExpect 15,000t ore stockpiled prior to plant start
PlantUnder construction – expected cost $US7.0m140,000 tpa conventional cyanide leachMerrill-Crowe zinc precipitation maximise silver recoveryMetallurgically simple > 90% recovery
Way Linggo Project - Holding Structure
• PT Natarang Mining (“PT NM”)– Indonesian PMA (foreign
ownership approved) company– 4th generation Contract of Work
• Natarang Offshore Pty Ltd (“NOPL”)
– Australian holding company– Owns 85% of shares of PT NM
• Bpk Herryansyah– 15% of shares of PT NM– President Director
Kingsrose Mining Limited(Australian)
100%
MM Gold Pty Ltd(Australian)
100%
Natarang Offshore Pty Ltd(Australian)
85%
PT Natarang Mining(Way Linggo Gold Project)
Slide 9
Way Linggo Project - Site Layout
Slide 10
Way Linggo Project - Mine Location
Slide 11
Way Linggo Project - North Vein Ore Bodies
3D Image of Way Linggo Area showing subsurface extent of North Vein,topography and drillhole traces
Slide 12
Way Linggo Project – Minesite Geology
Site Geology• Mineralisation as high grade
epithermal quartz veins• Low sulphidation• Host rocks dacite intrusion and
andesite volcanics
• North Vein– Near vertical, average width 4.7
metres– Resource 554,000 tonnes @
9.17 g/t Au, 143 g/t Ag (2.5 g/t Au Eq cut off)
• Other Vein Occurrences– Southern Extension– Central Vein Zone– Panca’s Vein– Harto’s Vein (New)– South Vein Zone (New)
Way Linggo - Snowden’s Resource Estimate
The Mineral Resource statement has been reviewed by Mrs. Christine Standing ofSnowden Mining Industry Consultants. Mrs. Standing is a member of TheAustralasian Institute of Mining and Metallurgy and has sufficient experience thatis relevant to the style of mineralisation and type of deposit under considerationto qualify as a Competent Person as defined in the 2004 edition of theAustralasian Code for Reporting of Exploration Results, Mineral Resources andOre Reserves. Mrs. Standing consents to the inclusion in this presentation of thematters based on the information in the form and context in which is appears.
Deposit Classification Tonnes Au g/t Ag g/t AuEq g/t AuEq ozMeasured 334,000 11.40 172 14.27 153,000
North Vein Indicated 93,000 7.06 118 9.03 27,000
Inferred 127,000 4.92 83 6.30 25,700
Sub-total 554,000 9.17 143 11.55 205,700 Hangingwall
Split and Central Vein
Zone
Measured - - -
Indicated 75,000 5.26 69 6.41 15,500
Inferred 40,000 4.24 46 5.01 6,400
Sub-total 115,000 4.91 61 5.93 21,900
TOTAL 669,000 8.44 129 10.59 227,600
• Resource reported in compliance with JORC Code 2004
• Gold equivalent (AuEq) assumes 1 g/t Au is equivalent to 60 g/t Ag
• Classified Mineral Resource is based on 2.5 g/t Au Eq cut-off grade
Slide 14
Way Linggo North Vein - Long Section (View To The West)
Way Linggo Project - North Vein Ore Bodies
A Ore BodyQuartz - Adularia – Clay Assemblage
1020 Level Face sampling (uncut)112 m @ 20.4 g Au/t, 304 g Ag/t Average width 4.1 m
B Ore BodyQuartz – Chlorite – Clay Assemblage
1020 Level Face sampling (uncut)90 m @ 33.5 g Au/t, 414 g Ag/t Average width 4.5 m
Slide 16
Way Linggo Project - 1020 Level Plan
Way Linggo Mine Development
Projection of :-
• 1020 m Level
• North Vein on 1020 m Level
• Incline
• Main Haulage Drive
• Alimak Raising
• Sill Drift Development
• Underground Shaft to 965 Level
Way Linggo Project - Mining
1020 Level Main Haulage PortalROM PadMine Service Area
Way Linggo Project - Mining
Bogging high grade oreExperienced Indonesian minerson staff.
3 shifts per day
Way Linggo Project - Mining
High Grade StockpileCurrently approximately 7,000 t @ 18 g Au/t, 150 g Ag/t
Alimak Raising
Slide 20
Way Linggo Project - Process Plant
400 tonnes per day design capacity
Merrill – Crowe Process
Cyanide leach and zinc precipitation of Au and Ag
Suitable high grade and particularly high Ag ores
Commissioning end-March 2010
All major components onsite
Slide 21
Way Linggo Project - Process Plant Flow Sheet
Slide 22
Way Linggo Project - Process Plant Design
Slide 23
Way Linggo Project - Tailings Dam Construction
TAILINGS STORAGE FACILITY
Engineered Earth Dam under construction
Government Permitted Design
Project Environmental Impact Statement, Env. Monitoring Plan and Env. Management Plan approved
Slide 24
Way Linggo Project - Projected Performance
Ore Stockpile by March 2010 15,000 tonnes @ 15g/t Au
Mill Throughput 140,000 tonnes p.a.
Budgeted grade for first 18 months 12 g Au/t
Plant Commissioning Starts end-March 2010
Mill recovery rate 90%
Mill availability rate 92%
Steady‐state annualised production 45,000 oz Au per annum750,000oz Ag per annum
Slide 25
Way Linggo Project - Key Financial Estimates
CARRYING VALUE up to June 30, 2009) USD 13m
PLANNED EXPENDITUREJuly 2009 to March 2010
Plant & Equipment USD 7mMine Development USD 4m
TOTAL SUNK COST TO PRODUCTION USD 24m
PRODUCTION COSTS (revised 24Nov09)Direct mining costs USD 134/ozDirect processing costs USD 129/ozDore transport/refining costs USD 21/ozOverheads USD 32/oz
Sub‐total USD 316/ozLess silver credits (USD17.25/oz Ag) (USD 216/oz)Add Royalties (govt, other) USD 50/oz
PROJECTED CASH COST PER Oz AU USD 150/oz
Way Linggo Project – Trans Sumatra Fault Zone
Highly prospective geological setting
Structural setting related to Trans Sumatra Fault Zone (TSFZ)
Major dextral strike slip regime –Dilational jogs–Pull apart basins
Significant mines and projects related to TSFZ
‐ Martabe 5.9Moz‐ Pongkor 3.6Moz‐ Lebong Tandai 1.4Moz.‐ Lebong Donok 1.3Moz.
Way Linggo - Prospective Structural Setting
Way Linggo Project
Exploration Potential
Prospect Locations• Way Linggo• Semung Kecil
• Minesite Exploration• Brown Fields Exploration• Regional Potential
Way Linggo Project – Ore Body Extensions
North Vein Orebodies Plunge to North approximately 40 degreesOre shoots structurally controlled, Open at depth and down plunge
Way Linggo Project – Mine Site Exploration Targets
Based on Structural Geological assessment by Dr Steve GarwinNumerous near mine exploration targets
Way Linggo Project – Brown Field Exploration Targets
Way Linggo Minesite and Semung Kecil Prospect Geology
Way Linggo Project - Brown Field Exploration Targets
Way Linggo and Semung Kecil part of major structurally controlled hydrothermal cell
Way Linggo Project – Exploration Targets
Zone of subdued magentic relief indicates extent of major hydrothermal cell extending to north of known prospects
Way Linggo Project - Exploration Drilling
Underground diamond drillingOre body delineationParallel Veins
Diamond drilling from surface2 rigs on site
Slide 35
Way Linggo Project
REGIONAL EXPLORATION
Airborne Geophysics
Helicopter Magnetics and Radiometrics
Slide 36
Way Linggo Project
REGIONAL EXPLORATION
Airbourne Geophysics
Sophisticated processing by Fathom Geophysics
Slide 37
Way Linggo Project
REGIONAL EXPLORATION
Airborne Geophysics
Helicopter Magnetics and Radiometrics
Interpretation being integrated with Structural Geology byDr Steve Garwin
Slide 38
Way Linggo Project
REGIONAL EXPLORATION
Airborne Geophysics
Helicopter Magnetics and Radiometrics
Satellite imagery
Prominent NW, N and NE Linears
22 Target areas for follow up
Lineament intersection zones
Dacite Intrusions
Broad magnetic subdued areas hydrothermal alteration systems
Slide 39
Way Linggo Project
REGIONAL EXPLORATION
Drainage Geochemistry
Gold BLEG Anomalies
Bulk Leach Extractable Gold
Slide 40
Way Linggo Project
REGIONAL EXPLORATION
Drainage Geochemistry
Gold Stream Sediment Anomalies
- 80# Size Fraction
Slide 41
Way Linggo Project – Exploration Potential
Highly Prospective TerranePacific Rim of FireSunda-Banda Volcanic ArcTrans Sumatra Fault Zone dextral strike slip regime
Epithermal Gold MineralisationHigh grade gold and silverMulti million ounce deposits mined or in production in same terrain
Martabe 5.9MozPongkor 3.6MozLebong Tandai 1.4Moz.Lebong Donok 1.3Moz.
Analagous Geologic ModelsGosowong/Kencana, Halmahera, ( 5M oz)Frutta Del Norte, Equador, ( 13.6M oz)Hishikari, Japan ( 5+M oz, 1996)Vera Nancy, Queensland ( 2.9M oz)
Slide 42
Epithermal Gold - Gosowong Mineralisation
Similar mineral assemblages to Way Linggo A and B ore bodies
A Orebody Quartz-Adularia-ClayB Orebody Quartz-Calcite-Chlorite
(From Dan Wood and Gosowong Discovery Team presentation, Newcrest Mining)
Slide 43
Epithermal Gold - Gosowong Long Section
Gosowong and Kencana Ore Bodies showing regional plunge(After Newcrest Mining)
Way Linggo - Structural Setting
Pull Apart Basins and Dilational Jogs within Trans Sumatra Fault Zone
Way Linggo Comparison Setting - Pull apart Basin Margin
Frutta Del Norte, EquadorResource 58,900,000 t @ 7.2 g Au/t (13.6 M oz Au Eq)(After Aurelian Resources)
Epithermal Gold – Hishikari Long Section
Note scale and distribution of high grade ore shoots(After Faure et al 2002)
Slide 47
Epithermal Gold – Vera Nancy Long Section
Original Pajingo Original Pajingo -- 370,000 oz Au @ 8 370,000 oz Au @ 8 –– 9 g Au/t9 g Au/tVera Nancy Vera Nancy -- 2,900,000 oz Au @ 13.5 g Au/t2,900,000 oz Au @ 13.5 g Au/t
Current extent of drilled resource at Way Linggo overlaidCurrent extent of drilled resource at Way Linggo overlaid
Slide 48
Way Linggo Project – Exploration Potential
Highly Prospective TerrainPacific Rim of FireSunda-Banda Volcanic ArcTrans Sumatra Fault Zone dextral strike slip regime
Epithermal Gold MineralisationHigh grade gold and silverMulti million ounce deposits mined or in production in same terrain
Martabe 5.9MozPongkor 3.6MozLebong Tandai 1.4Moz.Lebong Donok 1.3Moz.
Analagous Geologic ModelsGosowong/Kencana, Halmahera, ( 5M oz)Frutta Del Norte, Equador, ( 13.6M oz)Hishikari, Japan ( 5+M oz, 1996)Vera Nancy, Queensland ( 2.9M oz)
Slide 49
General Disclaimer
This presentation has been prepared by Kingsrose Mining Limited (“Kingsrose” or the “Company”). It should not be considered asan offer or invitation or inducement to subscribe for or the purchase of any securities in the Company. This presentation containsforecasts and forward looking statements. Such forecasts, projections and information are not a guarantee of future performance,involve unknown risks and uncertainties. Actual results and developments may differ materially from those expressed or implied.Kingsrose has not audited or investigated the accuracy or completeness of the information, statements and opinions contained inthis presentation. Accordingly, to the maximum extent permitted by applicable laws, Kingsrosemakes no representation and cangive no assurance, guarantee or warranty, express or implied, as to, and takes no responsibility and assume no liability for, theauthenticity, validity, accuracy, suitability or completeness of, or any errors in or omission, from any information, statement oropinion contained in this presentation. This overview of Kingsrose does not purport to be all inclusive or to contain all informationwhich its recipients may require in order to make an informed assessment of the Company’s prospects. You should conduct yourown investigation and perform your own analysis in order to satisfy yourself as to the accuracy and completeness of theinformation, statements and opinionscontained in this presentation before making any investmentdecision.
Competent Person Statement
The information in this presentation report that relates to exploration results, mineral resources and ore reserves is based oninformation compiled by Dr Michael Andrews B.Sc.(hons) Ph.D., who is a Fellow of the Australasian Institute of Mining andMetallurgy, and a Director of Kingsrose Mining Ltd. Dr Andrews has sufficient experience which is relevant to the styles ofmineralization and types of deposits and to the activity which he is undertaking to qualify as a Competent Person as defined in the2004 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (“JORC Code”). DrAndrews consents to the inclusion in this report of the matters based on this information in the form and context in which itappears.