kentor gold
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Kentor Gold. March 2012 Investor Presentation. Focus. Andash Gold Copper Project – Kyrgyzstan Jervois Copper Gold Project – Australia Murchison Gold Project - Australia. KENTOR GOLD. Overview. KENTOR GOLD. 80%. 100%. Andash Mining Company (Kyrgyz Republic). - PowerPoint PPT PresentationTRANSCRIPT
Kentor GoldMarch 2012Investor Presentation
Focus
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1. Andash Gold Copper Project – Kyrgyzstan
2. Jervois Copper Gold Project – Australia
3. Murchison Gold Project - Australia
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Overview KENTOR GOLD
Corporate Summary
ASX Code KGL
Share price (09/03/12) A$1.46
52 week high / low A$0.70 – A$1.46
Shares on issue 106.2 million
Options on issue 2.7 million
Market capitalization A$155 million
Cash (31/12/11) A$34 million
Debt Nil
Top shareholders Percentage holding
KMP Investments 12.75%
JPMorgan Nominees 11.80%
National Nominees 5.21%
KENTOR GOLD
80% 100%
Andash Mining Company (Kyrgyz Republic)
Jinka Minerals (Australia)
100%
Andash Gold Copper
100% 100%
Murchison (Au)
Jervois (Cu, Ag, Au, Pb, Zn)
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 B.Eng. (Mining)Executive Director, Country Manager (Has worked on mining and exploration projects across Central Asia since 1996. Resides in the Kyrgyz capital of Bishkek and speaks Russian)
Andrew Daley BSc (Hons) (Mining)Director, Non-executive (Andrew has a background in corporate finance and is also on the board of Pan Aust)
John Taylor B. Eng (Chemical); MBA Director, Non Executive (John Taylor is currently the MD of Outotec Australasia)
Experienced Board BOARD & MANAGEMENT
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Kyrgyz Republic 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)
Population 5 million
KYRGYZ REPUBLIC
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Other Western companies active in the resources sector:
- Centerra
- Goldfields
- Santos
- Manas Resources
- Chaarat
Talas Valley
9.9m @ 7.9g/t Au8m @ 6 g/t Au
57m @ at 1.5g/t Au, 1.4% Cu
Andash Overview
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ANDASH PROJECT
One of the world’s lowest cost gold mines- Low Strip Open pit- Standard Flotation- High grade concentrate
Significant resource & reserve base
Excellent Exploration Potential- Further upside from Zones 2 & 3- Potential 10+ yrs mine life
Local approval imminent- Strong engagement at federal level- Government to own 20% of project
12 month construction programme- All machines commissioned
Easy topography
Low elevation
Good road access
Nearby rail
Nearby power
Nearby waterAbove: View from Andash ore body looking south
Overview (cont’d)
ANDASH PROJECT
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Gold g/t
Wide ore body, bulk mining
Outcrops
Low strip ratio 0.72:1
Conventional open pit & flotation
Base of pit follows footwall
High grade starter pit
Andash Long SectionANDASH PROJECT
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Andash Cross Section 320 m E
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ANDASH PROJECT
Andash JORC Reserve Estimate
Category Tonnage (kt) Grade MetalAu (g/t) Cu (%) Au (oz) Cu (t)
Proven* 4,050 1.06 0.45 138,205 18,275
Probable* 11,948 1.05 0.38 401,525 45,211
Total 15,999 1.05 0.40 539,730 63,486
Andash JORC Resource Estimate
Category Tonnage (kt) Grade MetalAu (g/t) Cu (%) Au (oz) Cu (t)
Measured 4,083 1.14 0.48 148,463 19,538
Indicated 15,115 1.10 0.38 530,560 57,770
Total 19,200 1.10 0.40 679,023 77,308
Inferred 380 0.93 0.25 11,350 950
Andash JORC Resource & Reserve
*Ore Reserve estimated using assumptions of US$525/oz gold and US$3,000/t copper
ANDASH PROJECT
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3 stage crush, grind, float process
- 1.6mtpa to 3.2mtpa throughput
Initial mine life 6 years
- Zone 2 and 3 potential to extend mine life to 10+ yrs
- Further upside from nearby exploration targets
Annual production of 70,000 oz Au and 7,400t Cu
Capital Cost US$96m*
Cash cost US$29/oz Au**
High grade concentrate 24.5% Cu and 72 g/t Au
- No deleterious elements
Royalties – Gold 5%, Copper 3%
Andash Project Economics (KGL 80%) ANDASH PROJECT
Project NPV (US$)Gold Price Copper Price (US$/lb)
(US$/oz) 2.25 2.75 3.25 3.75 4.25
1,000 103 130 157 185 2121,200 150 177 204 231 2581,400 197 223 251 278 3051,600 243 271 298 325 3521,800 290 317 344 372 399
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*capital cost under review, to be confirmed prior to development**after Cu credits and royalty at a long term Cu price of US$2.75/Ib
Andash Zone 2 and 3ANDASH PROJECT
Explored by adits
30 diamond drill holes
Located 1 km west of Andash Zone 1
Exploration target of 5 to 10 mt of ore @ 1 to 1.5 g/t gold*
Potential to increase Andash mine life to 10 yrs +
* The potential quantity and grade of the Exploration Target are conceptual in nature and there has been insufficient exploration to define a Mineral Resource. It is uncertain if further exploration will result in the determination of a Mineral Resource.
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Jervois Copper Project JERVOIS PROJECT (AUSTRALIA)
100% Interest
Granted Mining License
Land Holding 38 km2
12km of prospective strike
Outcropping Copper Ore
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Inferred Copper Resource of 11.9 Mt @ 1.3% Cu and 25.2 g/t Ag
- 150,500t of contained copper and 9.7 m oz contained silver
Additional Exploration Potential of 5.0 – 10.0Mt @ 0.75-1.25% Cu and 10-25g/t Ag
- 50,000 to 100,000 tonnes Cu and 3 to 5Mozs Ag
Gold frequently present in mineralisation but original drilling not tested for gold
- potential for significant gold resource
Reward Ore body Long Section
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JERVOIS PROJECT (AUSTRALIA)
Bellbird ore body Long Section
15Green circles are drill hole pierce points
JERVOIS PROJECT (AUSTRALIA)
Murchison Gold Project Consists of the Burnakura and Gabanintha sites
700,000 ounce Inferred Resource @ 1.5g/t
- 20,000m RC drill programme underway to infill and increase resource
Plan to commence production in June 2012
MURCHISON GOLD PROJECT (AUSTRALIA)
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Existing Infrastructure MURCHISON GOLD PROJECT (AUSTRALIA)
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Lewis Pit
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5m @ 102.2 g/t 17m @ 9.6 g/t
MURCHISON GOLD PROJECT (AUSTRALIA)
4 Stage Growth Strategy
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1. Refurbish and restart existing CIL Plant
2. Add a heap leach circuit to treat low grade ore
3. Expand plant to 500,000 tpa
4. Flotation of copper gold ore
MURCHISON GOLD PROJECT (AUSTRALIA)
Stage 1 Restart CIL Plant
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Expand to 260,000 tpa
High grade production – 3 g/t gold
Commence production in June 2012
Initial Production Rate 24,000 oz gold p.a.
Capital cost $14.8m
Stage 1 cash cost $1,224 / oz
MURCHISON GOLD PROJECT (AUSTRALIA)
Crushing and Heap Leaching Equipment
21Note: Photographs of equipment on site at the Indee mine site
MURCHISON GOLD PROJECT (AUSTRALIA)
Tonnes (mt)
Grade Au g/t
Grade Cu%
Grade Ag g/t
Gold (oz)
Copper (t)
Silver (Oz)
Andash Inferred 0.38 0.93 0.25 11,350 950
Jervois Inferred 11.9 1.3 25.2 150,500 9,700,000
Burnakura Inferred 10.6 1.5 516,000
Gabanintha Inferred 4.5 1.4 203,000
Andash Indicated 15.12 1.0 0.38 532,643 57,770
Andash Measured 4.08 1.04 0.48 149,046 19,538
Total Resources 46.58 1,412,039 228,758 9,700,000
Kentor Group Resources
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Conclusion Near term gold production
Active exploration programmes at all Australian sites
Strong news flow
Strong cash position
Pipeline of projects
Increasing resources
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Forward-Looking Statements:This presentation includes certain “Forward-Looking Statements”. All statements, other than statements of historical fact, included herein, including without limitation, statements regarding forecast cash flows and potential mineralisation, resources and reserves, exploration results and future expansion plans and development objectives of Kentor Gold Limited are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements.
Simon Milroy on +61 7 31213206or visit www.kentorgold.com
For more information contact KEY CONTACTS
ASX Code: KGL Level 9, 40 Creek Street, Brisbane, QLD, AUSTRALIA 4000
Fax: +61 7 3121 3030
Competent Persons Statements The information in this report that relates to mineral resource estimation for Gabanintha and Burnakura is based on work completed by Mr Jonathon
Abbott is a member of the Australasian Institute of Mining and Metallurgy. Mr Abbott has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Abbott consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
The data in this report that relates to Mineral Resource Estimates for Jervois is based on information evaluated by Mr Simon Tear who is a Member of The Australasian Institute of Mining and Metallurgy (MAusIMM) and who has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the “JORC Code”). Mr Tear is a full-time employee of Hellman & Schofield Pty Ltd and he consents to the inclusion in the report of the Mineral Resource in the form and context in which they appear.
The Resource estimates for Andash in this report are based on information compiled by Dr. Phil Newall, who is a Chartered Engineer and Fellow of the Institute of Materials Minerals and Mining and a full time employee of Wardell Armstrong International. Dr. Newall has sufficient experience which is relevant to the style of the mineralisation and the type of deposit under consideration and to the activity to which he is undertaking, to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Dr. Newall has consented to the inclusion of this information in the form and context in which it appears in this report.
We advise in accordance with Australian Stock Exchange Limited Listing Rules 5(10) and 5(13) that the exploration results for Burnakura and Gabanintha are based on information compiled by Mr Nigel Cranley of Plutonic Geological Services who is a corporate member of the Australian Institute of Mining and Metallurgy. Mr Cranley is not a full time employee of Jinka Minerals Limited and has consented in writing to the inclusion in the presentation of matter based on the information so compiled by him in the form and context in which it appears.
The exploration data in this report relating to the Jervois project is based on information compiled by Rudy Lennartz, who is a member of the Australian Institute of Mining and Metallurgy and a full time employee of Jinka Minerals Ltd. Mr. Lennartz has sufficient experience which is relevant to the style of the mineralisation and the type of deposit under consideration and to the activity to which he is undertaking, to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr. Lennartz has consented to the inclusion of this information in the form and context in which it appears in this report.
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