Kimberly Metals_asia Mining Congress

35
Presentation The 7 th Annual Asia Mining Congress 2011 Singapore 5 April 2011

Transcript of Kimberly Metals_asia Mining Congress

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Presentation

The 7th Annual Asia Mining Congress

2011Singapore

5 April 2011

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A Silver & Base Metal Company

On Target for Production & Development

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CAPITAL STRUCTURE

Capital Structure March 2011

Issued capital* 185.4 m

Cash Position** $20.4 m

Market Capitalisation - at 25 cents/share $46.3 m

* Includes 24.4 million shares escrowed until 25 February 2012

** Includes Sorby Hills Joint Venture cash

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KIMBERLEY ASSETS

Mineral Hill

200,000 tpa facility at Mineral Hill in full

refurbishment to 250,000 tpa capacity

offices & mine infrastructure in place

Existing mining leases

Mineral resource of copper–lead–zinc–gold–silver

Sorby Hills

Sorby Hills ML’s renewed for 21 years (Feb 2010) Extensive infrastructure adjacent to the

tenements

Large silver-lead-zinc mineral resources defined

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KIMBERLEY ASSETS

Tonnes Ag

(g/t)

Au

(g/t)

Cu

%

Pb

%

Zn

%

Contained

Ag (M oz)

Contained

Au (K oz)

Mineral Hill

Pearse 298,00 80 6.5 - - - 0.9 62

Mineral Resources(details given in attached Resources Tables)

0

Parkers Hill Oxide 1.1 M 61 - 0.6 3.3 0.4 2.1 -

Parkers Hill Sulphide 1.3 M 35 - 1.9 1.2 1.2 1.5 -

Sorby Hills

at 2.5% Pb Cut-off 16.9 M 56 - - 4.6 0.7 30 -

at 1.0% Pb Cut-off 28.4 M 43 - - 3.4 0.6 40 -

Resources Contain: 44.5 million ozs Silver, 62,000 ozs Gold.

1 million tonnes Lead

200,000 tonnes Zinc30,000 tonnes Copper

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KIMBERLEY BACKGROUND

• KBL holds large Silver and Base Metal resources strategy in place to develop these resources

plus expand copper, lead, zinc, & silver resources by drilling and acquisition

• Agreement completed with the China’s largest lead producer, Henan Yuguang Gold & Lead: - -- -

$5 million share issue at 25 cents per share for a 15% interest

• Dual Track Development of Mineral Hill existing dual flotation and CIL processing plant with refurbishment well advanced

Parker’s Hill underground copper & silver mine production from mid 2011

Permitting & subsequent development of the Pearse gold & silver project in 2011

Processing plant to dual treat sulphide copper ore from Parkers Hill & gold/silver ore from

the Pearse Open Cut

• Sorby Hills to Accelerate to Feasibility Infill resource definition drilling completed late 2010

New resource model completed & announcement pending Environmental studies have commenced & key personnel appointed

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MINERAL HILL

• Parkers Hill U/G Mine to becommissioned with development in

place

• Pearse Project – new high grade

Pearse Project

Au & Ag

 

• Low cost open cut development plan

for Pearse

• Key Management Positions

appointed:

General Manager

Mining manager

Process Superintendent

Mine Geologists

• Recruitment of all Operations

Personnel in progress

Parkers Hill

Cu, Pb, Ag, Zn

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MINERAL HILL PROCESSING PLANT

Existing process plant &

infrastructure

 

Targeting mid 2011 production

,

capability

$7.5 Mill in plant

refurbishment and

modifications commenced

Aug 2010

Offices & amenities in place

Copper concentrates from

mid-2011

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Completed

Feed Bin

100%

com leted

PROCESSING PLANT – MARCH 2011

Conveyors

Refurbishment

in progress Secondary crusher – 100%

complete

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PROCESSING PLANT – MARCH 2011

Crusher – 100% complete Interstage Screen- 95 %

complete

Mills – Structural steel –

nearing completion

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Platform for fine ore bins

50% complete

PROCESSING PLANT – MARCH 2011

Floatation – new

cells, gridmesh &

filter press - in

progress

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MINERAL HILL MINE REACTIVATION

Mid 2011 start up• Parkers Hill Mine 5 – 6 year underground operation

• Parkers Hill Production Cu/Ag and bulk Pb/Zn concentrates

Indicated Resources:

1.2 Mt @ 1.9% Cu, 1.2% Pb, 1.2% Zn & 35g/t Ag

• Pearse Deposit – EIS & Development Consent pending

Open Cut Reserves defined:

235,240t @ 6.72g/t Au & 71.7g/t Ag, 2 – 3 years operation

• High silver oxide zone at Parkers Hill potential open cutResource: 1.1 Mt @ 61g/t Ag, 3.3% Pb

Initial Production Rate (per annum):

4,000 tonnes Cu from Parkers Hill

Copper – lead – zinc capability from 2012

20,000 oz Au, 150,000 oz Ag Pearce open cut Excellent in-mine & regional exploration targets

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MINERAL HILL – PARKERS HILL MINE

Cu, Pb, Ag, Zn Mine

• Underground project fully permitted

PARKERS HILL

EAST PIT

• High grade primary copper resource with

3 levels of underground development

• 5 – 6 years production

Mine production from mid-2011

• Open pit oxide resource

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PARKERS HILL DEPOSIT

400 mRL    1   2   0   0

   m   E

   1   7   0   0

   m   E

   1   6   0   0

   m   E

   1   5   0   0

   m   E

   1   4   0   0

   m   E

   1   3   0   0

   m   E

Oxide Resource

Sulphide Resource

Drill holes

Existing

Underground

Development

Existing

Open Cut

300 mRL

100 mRL

200 mRL

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PARKERS HILL MINE 195 LEVEL

PARKERS HILL 195 level

Existing Development and distribution

of High Grade Resource

195 Access

High grade

levelDevelopment

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• Regulatory Approval granted 9th January2008

• Approved Mine Operations Plan

PARKERS HILL - DEVELOPMENT

• 250,000 tonnes per annum mining rate

• Decline access and three development

levels established

• Underground contractor selected andmobilised to site – December 2010

(Pybar, Orange NSW)

• Operating scope completed

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PARKERS HILL - DEVELOPMENT

• Underground pumping for dewatering of deeper development commenced to

access additional resources

• – 

established December 2010

• Underground refurbishment

commenced 6th December 2010

 – Installation of ground support (rockboltingand meshing) – to be completed April 2011

 – Decline road works and drainage completed

 – Stope development and ore production –

Initial Plan completed

 – Jumbo mobilised to site 21st February

 – Ore development from mid-April 2011

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PEARSE PIT & HAUL ROAD LAYOUT

Existing Mining Lease

Gold and Silver Reserve:

235,000 tonnes @ 6.92 gt Au & 71.7 gt Ag

Mine infrastructure

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Drill hole

PEARSE PIT LAYOUT & LONG SECTION

NorthSouth Surface

   1   0   0   m   E

   3   0   0   m   E

   2   0   0   m   E

 

Collar

Drill hole

Trace

Oxide

Resources

Primary

Resources

OxideResource

Primary

Resource

Proposed

Open Cut

Mine Plan – Open Cut Long Section

300 mRL

200 mRL

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SORBY HILLS LEAD-SILVER PROJECT

• 50 kms North of Kununurra, WA

• Adjacent to established

infrastructure

• Accessible port facilities at

Wyndham

• Largest undeveloped

Ag-Pb resource in Australia atopen cut depth

• Definitive Feasibility targeted for

end 2012 completion

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LOCATION & OVERVIEW

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SORBY HILLS LEAD-SILVER PROJECT

Mineralised Ore Pods over 8km strike length• Mining Leases renewed for 21 years February 2010

• Indicative project scope

 

Production rate of up to 1 million tonnes per annum Mine life >10 years

Soft Ore (work index 9.7)

• Feasibility Commenced August 2010

Infill drilling to establish mining reserves

Hydro-geological studies commenced Environmental studies commenced

Key project personnel appointments pending

HYG&L Joint Venture Partner

Funding $5 million feasibility study for 25% JV interest

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Overview – All Mineralised Pods with Resources

A-Pod

B-Pod

Inferred Resource:

16.9 Mill Tonnes @ 4.6% Pb, 0.7% Zn, 56 gt Ag

AlphaBeta

I-PodE-F Pods

D-Pod

C-Pod

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2010 DRILLING PROGRAM

Program Target

• Near surface open cut mine opportunity (up to 70m depth)

• C D and I Pods tar eted 

• 8305m completed in 96 drillholes

• I & C Pods - program confirmed continuity of mineralisation and resources

D Pod mineralisation extended 70m North towards E Pod

• Resource upgrade pending

• Scoping study targeting shallow high grade open cut mineralisation commenced

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C POD – SORBY HILLS

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D POD – SORBY HILLS

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I POD – SORBY HILLS

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MANBARRUM

Manbarrum Zn-Pb-Ag Project

   –

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GEOLOGICAL SETTING

• Regional carbonate formation of theBonaponte Basin hosts extensive

Mississippi Valley Type (MVT) Pb-Zn-Ag

mineralisation

Geology of the region surrounding Sandy Creek

• Sorby Hills on West limb of syncline fold,

Manbarrum on East limb

• Basin margin structures and cross faults

control higher grade mineralisation

• Majority of mineralisation strataformwith low angle dips.

• Alluvial cover 5m to 30m thick

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Emerging Base Metal

District

2000 km2 land holding

in WA and NTLandandi

Zn-Pb-Ag

Prospect

MANBARRUM PROJECT –TNG TENEMENTS

Manbarrum Project –3 Exploration Licences

total 530km2

2 Authorisations total

34km2

Tenure is good standing

Sorby Hills

Pb-Zn

Deposit

Sandy Creek

Zn-Pb-Ag

Deposit

Djibitgun

Zn-Ag

Deposit

Browns

Zn-Pb-Ag

Prospect

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SANDY CREEK DEPOSIT

JORC Inferred/Indicated

• Current resource Stratabound

only – Excludes central pipe

• New drilling confirmed grades

in pipe zone

• Metallurgical work positive

• Shallow deposit – open cut

• No major environmental issues

• High groundwater flow likely

to restrict open cut depth

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SUMMARY KIMBERLEY METALS LIMITED

• A silver and base metals Company poised for production

• Cash Flow from Mineral Hill mid 2011

• Feasibility at Sorby Hills – commenced

• Quality and Value Assets