kingsrose mining corporate presentation oct12

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Excep&onal grades, excep&onal costs, excep&onal growth Resources Rising Stars – October 2012

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Kingsrose Mining Corporate Presentation Oct12

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Page 1: Kingsrose Mining Corporate Presentation Oct12

Excep&onal  grades,  excep&onal  costs,  excep&onal  growth  Resources  Rising  Stars  –  October  2012  

Page 2: Kingsrose Mining Corporate Presentation Oct12

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Strategic Focus

Exceptional Location “Rim of Fire” – low sulphidation epithermal system

Way Linggo Project (85% owned) 2 mines on 4th Generation Contract of Work (CoW) Exceptional Grade

Specialist high-grade narrow vein miners – profit not ounces

Exceptional Cost Circa US$300/oz after silver credits

Exceptional Growth Second mine at Talang Santo – highly prospective

Rewarding our Shareholders Maiden Dividend paid July 2012

Page 3: Kingsrose Mining Corporate Presentation Oct12

Corporate Snapshot – Rewarding our Shareholders

ASX:KRM & OTCQX:KGRSY

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Data Source: Bloomberg

•  Ordinary Shares 289m •  Capital Appreciation

•  Listed Options 1.2m •  Over 500% share price increase (since Way Linggo purchase)

•  Share Price ~$1.20 •  Organic Growth – self funding exploration

•  Market Cap ~$345m •  Payment of 4c un-franked dividend (July 2012)

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Volume Close

Page 4: Kingsrose Mining Corporate Presentation Oct12

Year End 30 June 2012: Financial & Production Scorecard

•  Production: 37,650 ounces of gold and 432,754 ounces of silver

•  Project sales revenue: US$62.4m from the sale of 37,360 ounces of gold

•  Net profit after tax: A$17.6m

•  Cash operating cost: US$254/oz (after silver credits)

•  Cash in bank: A$30.1m (as at 30 June 2012)

•  4c un-franked dividend paid July 2012

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Page 5: Kingsrose Mining Corporate Presentation Oct12

The Way Linggo Project – “Rim of Fire”

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•  Extensive & strategic land holding located in the “Rim of Fire” on the

Trans Sumatra Fault Zone

•  World’s second most significant source

of gold deposits – Tertiary Age

Page 6: Kingsrose Mining Corporate Presentation Oct12

Way Linggo Project – Consistent Growth

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Classification Tonnes Au g/t Ag g/t Au oz Ag oz

Measured Way Linggo 339,215 14.45 174.84 157,592 1,906,804

Indicated Way Linggo 174,145 6.30 61.09 35,273 342,036

Inferred Way Linggo 14,120 12.15 86.98 5,516 39,486

Subtotal Way Linggo 527,480 11.71 135.05 198,380 2,288,326

Indicated Talang Santo 863,625 6.19 16.25 171,873 451,200

Inferred Talang Santo 797,355 4.51 17.31 115,616 443,751

Subtotal Talang Santo 1,660,980 5.39 16.77 287.489 894,951

Grand Total 2,188,460 6.91 45.28 485,869 3,183,278

Notes: 1. Resource calculation updated to include drilling and mine depletion to June 30,2012 2. For full details, including rounding details and cut off grades refer JORC Resource Statement in 2012 Annual Report

Page 7: Kingsrose Mining Corporate Presentation Oct12

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Way Linggo Mine

•  Production commenced August 2010

•  Epithermal veins continuous

•  Possible extensions to existing ore system to the south

300m

150m

1m @ 2.1 g/t Au, 3,390 g/t Ag

2.25m @ 0.7 g/t Au, 546 g/t Ag

Page 8: Kingsrose Mining Corporate Presentation Oct12

Way Sapta – Possible Extension of Way Linggo

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Page 9: Kingsrose Mining Corporate Presentation Oct12

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Talang Santo – Major Cluster of Epithermal Veining

•  The first priority target to be extensively drill tested

•  Located just 7km north of Way Linggo with a 17km all weather haul road in place

•  JORC Mineral Resource Estimate (Indicated & Inferred)

1,660,980 @ 5.39 g/t Au & 16.77g/t Ag

287,489oz Gold & 894,951oz Silver

•  Drill-out continues and system expanding along strike and at depth

•  Drilling indicates mineralisation system is of greater lateral extent than Way Linggo

Page 10: Kingsrose Mining Corporate Presentation Oct12

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Talang Santo – Major Cluster of Epithermal Veining

Page 11: Kingsrose Mining Corporate Presentation Oct12

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Talang Santo – Ore System Expanding

900m

400m

Mine winze and X-cut

Mine adit

Mine shaft

Potential position for new mine shaft – additional mining front

Page 12: Kingsrose Mining Corporate Presentation Oct12

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Talang Santo – lateral extent comparison to Way Linggo

900m

400m

Potential position for new mine shaft – additional mining front

300m

150m

Way Linggo

Page 13: Kingsrose Mining Corporate Presentation Oct12

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Talang Santo – Part of a large system

Page 14: Kingsrose Mining Corporate Presentation Oct12

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Way Linggo Processing Plant

•  Free milling ore (non-refractory)

•  140,000tpa conventional plant

•  Crushing > milling > leach > merrill-crowe > smelting > gold & silver dore

•  Gold and silver refined at refinery in Java, Indonesia

•  SAG mill installed mid-2011 to de-bottleneck materials handling issues

•  Grinding capacity in place to expand processing to 200,000tpa

Page 15: Kingsrose Mining Corporate Presentation Oct12

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Immense Exploration Upside

•  100sqkm 4th Generation Contract of

Work

•  17 defined epithermal zones/targets

•  Epithermal veins exist and/or

outcrop

•  Strong gold and associated metal

anomalism exists

•  Intense epithermal clay alteration

•  Drilling a number of priority targets –

with encouraging results

Page 16: Kingsrose Mining Corporate Presentation Oct12

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Kingsrose – Achieving and Performing

•  Our Achievements

•  In 3 years – acquired, permitted, designed, developed and delivered production from the Way Linggo mine

•  Emerged as one of the lowest cost gold miners in the world

•  Developed the project with a socially responsible, technically appropriate and regionally acceptable method

•  Fulfilled a strategy to become locally managed

•  Made a second major discovery with more to come

Page 17: Kingsrose Mining Corporate Presentation Oct12

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Disclaimer General Disclaimer

•  This presentation has been prepared by Kingsrose Mining Limited (“Kingsrose” or the “Company”). It should not be

considered as an offer or invitation or inducement to subscribe for or the purchase of any securities in the Company. This presentation contains forecasts 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 in this presentation. Accordingly, to the maximum extent permitted by applicable laws, Kingsrose makes no representation and can give no assurance, guarantee or warranty, express or implied, as to, and takes no responsibility and assume no liability for, the authenticity, validity, accuracy, suitability or completeness of, or any errors in or omission, from any information, statement or opinion contained in this presentation. This overview of Kingsrose does not purport to be all inclusive or to contain all information which its recipients may require in order to make an informed assessment of the Company’s prospects. You should conduct your own investigation and perform your own analysis in order to satisfy yourself as to the accuracy and completeness of the information, statements and opinions contained in this presentation before making any investment decision.

Competent Person Statement

•  The information in this report that relates to exploration results, mineral resources and ore reserves is based on information compiled by Mr. Peter G. Cook, BSc Applied Geol, MSc (Min Econ), who is a Member of the Australasian Institute of Mining and Metallurgy, and a consultant to Kingsrose Mining Limited. Mr. Cook has sufficient experience which is relevant to the styles of mineralisation and types of deposits and to the activity 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 (“JORC Code”). Mr. Cook consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.

Page 18: Kingsrose Mining Corporate Presentation Oct12

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Board of Directors – Highly Experienced & Successful

John Morris Chairman

Mr. Morris has over 36 years experience in exploration, project development and management of public listed resource companies. He has held prior directorships in a number of gold and base metals public companies in Australia and overseas including Forsayth NL, Uruguay Mineral Exploration Plc and Amerisur Resources Plc (formerly Chaco Resources Plc/Gold Mines of Sardinia Plc)

Chris Start Managing Director

Mr. Start graduated from RMIT as a Metallurgical Engineer with honors in 1988 and has over 23 years of experience in the mining industry. He has worked as a metallurgist, in management positions and as a consultant at a number of mine sites including Kidston, Murrin Murrin, Granny Smith and Boddington. Mr. Start also has international experience working as the Processing Manager at Mt Muro gold and silver mine in Indonesia and as the General Manager at the Musselwhite gold mine in Canada. In addition to his extensive operations experience, Mr Start also has a Master of Science Degree in Mineral Economics.

Tim Spencer Finance Director

Mr Spencer is an economist and qualified accountant with over 16 years experience in various accounting, treasury and finance roles, which included periods with gold companies and a gold refining and trading enterprise. He has particular expertise in precious metals markets and in hedging strategies.

Andrew Spinks Director

Mr Spinks holds a B.App.Sc (Geology) a Grad Dip (Mining) and is a member of AUSIMM. He has a wealth of technical, managerial and corporate experience gained over 24 years within the mining industry in both Australia and overseas. Previously, Andrew has held a number of key geological, operations and managerial roles including positions with Whim Creek, Dominion Mining, Plutonic Resources, Australian Gold Fields, and Crescent Gold Limited. Andrew is currently a director of ASX Listed Kibaran Resources Limited.

Bill Phillips Director

Mr. Phillips has over 30 years experience in mining contracting and mine management, much of which has been gained in Western Australia. He is highly regarded as a leading specialist in underground narrow vein mining. He has managed or been instrumental in the successful development of 16 mines either in the role of contractor or as owner/shareholder. Mr. Phillips most recent role was overseeing development, mining and production at Medusa Mining Limited’s Co-O gold mine in the southern Philippines. He is now focused solely on the Way Linggo gold/silver mine located in Sumatra.