RESOURCES & ENERGY SYMPOSIUM PRESENTATION · SYMPOSIUM PRESENTATION 1 For personal use only....
Transcript of RESOURCES & ENERGY SYMPOSIUM PRESENTATION · SYMPOSIUM PRESENTATION 1 For personal use only....
DISCLAIMER
Disclaimer
This presentation has been prepared and issued by KBL Mining Limited (“the Company”). It contains general information about the Company’s activities current
as at the date of the presentation. The information is provided in summary form and does not purport to be complete. This presentation is not to be distributed
(nor taken to have been distributed) to any persons in any jurisdictions to whom an offer or solicitation to buy shares in the Company would be unlawful. Any
recipient of the presentation should observe any such restrictions on the distribution of this presentation and warrants to the Company that the receipt of the
presentation is not unlawful. The presentation does not constitute, and should not be considered as, an offer or invitation to subscribe for or purchase any
securities in the Company or as an inducement to make an offer or invitation with respect to those securities.
This presentation contains forecasts which are based on various assumptions. While the Company has endeavoured to ensure that that these assumptions are
reasonable, the Company can not factor in future events which are not foreseeable. Therefore, it is possible that the forecasts may not be achieved.
To the maximum extent permitted by law, no representation, warranty or undertaking, express or implied, is made and, to the maximum extent permitted by
law, no responsibility or liability is accepted by the Company or any or its officers, employees, agents or consultants or any other person as to the adequacy,
accuracy, completeness or reasonableness of the information in this presentation. To the maximum extent permitted by law, no responsibility for any errors or
omissions from this presentation whether arising out of negligence or otherwise is accepted. An investment in the shares of the Company is to be considered
highly speculative.
Confidentiality
The contents of this presentation are confidential. This presentation is being provided to you on the basis that you do not reproduce, communicate or disclose it
to, or discuss it with, any other person without the prior permission of the Company.
Competent Persons Statement
The information in the Presentation that relates to Exploration Results, Mineral Resources and Reserves has been compiled by Mr Stuart Mathews, MSc (Hons),
who is a Member of the Australasian Institute of Mining and Metallurgy and is a full-time employee of the Company. He has sufficient experience that is relevant
to the styles of mineralisation and types of deposit under consideration and to the activity that is being undertaking to qualify as a Competent Persons as defined
in the 2004 edition of the Australasian Code for Reporting of Exploration Results, Minerals Resources and Ore Reserves. Mr Mathews consents to the inclusion in
the Presentation of the matters based on his information in the form and context that the information appears.
Information relating to Resource Estimates is based on prior reports prepared by Mr Colin Lutherborrow (an employee of Zilloc Pty Ltd and a Member of the
Australasian Institute of Mining and Metallurgy) in relation to the Mineral Hill project, and Mr Daniel Wholley (an employee of CSA Australia Pty Ltd and a
Member of the Australian Institute of Geoscientists) in relation to the Sorby Hills, Manbarrum and Constance Range projects. Each of these persons has
sufficient experience that is relevant to the styles of mineralisation and types of deposit under consideration and to the activity that is being undertaking to
qualify as Competent Persons as defined in the 2004 edition of the Australasian Code for Reporting of Exploration Results, Minerals Resources and Ore
Reserves. Further, each of these persons consents to the inclusion in the Presentation of the matters based on his information in the form and context that the
information appears.2
For
per
sona
l use
onl
y
Constance Range (QLD) Fe
Status Scoping Study
KBL Ownership 30%
Target Mine Life 10+ years
296 million tonnes
157.2m t Fe
1-2mtpa Direct Shipping Ore scoping study
Current Resources
(containing)
Manbarrum (NT) Ag, Pb, Zn
Status Pre-Feasibility
KBL Ownership earning 51%
32.4 million tonnes
10m oz Ag
410,000t Zn
113,000t Pb
Extension to Sorby Hills mine life
Current Resources
(containing)
Sorby Hills (WA) Ag, Pb, Zn
Status Feasibility
KBL Ownership 75%
Target Mine Life 10+ years
16.7 million tonnes
28m oz Ag
750,000t Pb
117,000t Zn
Commence production at 500,000tpa in 2013
Current Resources
(containing)
DIVERSIFIED ASSET BASE
*Resources for KBL are broken down by grade, tonnes and category in the Appendix 3
For
per
sona
l use
onl
y
MINERAL HILL• 100% KBL owned
• 5.2 Mt Resources– 61,000t Cu 220,000oz Au
– 6.1m oz Ag 83,000t Pb 50,000t Zn
• Life of Mine : 10+ years
• CAPEX– Expand mill, gold circuit, SOZ/ESOZ
refurbishment, Pearse Open Cut, Pb/Zn circuit
• Replacement Value: $150m
5
ESOZ
For
per
sona
l use
onl
y
OPERATION SUMMARY
6
• 2011-12:
• Parkers Hill Deposit
• 11,000 DMT of copper
concentrate produced since
November 2011
– 2,500t contained copper
– 800oz Au & 40,000oz Ag
• 2013:
• Pearse Open Cut
• SOZ/ESOZ Underground
For
per
sona
l use
onl
y
UNDERGROUND DEPOSIT PLAN
7
DECLINE FROM
EASTERN PIT100M FROM SURFACE
150M FROM SURFACE
SOZ
ESOZ
PARKERS HILL
EXISTING
ACCESS
MINERAL HILL UNDERGROUND OBLIQUE
For
per
sona
l use
onl
y
Parkers Hill
Open Cut
SOZ Parkers Hill
Deeps
DEPOSIT PIPELINE
Exploration / Concept
Feasibility Studies
Construction / Refurbishment
Operating assets
Parkers Hill
U/G
Pearse
Pearse
North
Iron Duke
ESOZ/SOZ
repeat?
(CMHDD001)
Mt
Marshall
Legend:CuAu/AgCu/AuCu/Ag/Pb
Ag/Pb/Zn
Underground
Open Cut
ESOZ
For
per
sona
l use
onl
y
UNDERGROUND CASH COSTS
9
FURTHER REDUCTIONS
• Au/Ag bullion from Pearse
• Cost allocation between open cut / underground operations
• Pb/Zn credit
For
per
sona
l use
onl
y
Pearse development is subject to mill
expansion, re-installation of CIL circuit,
metallurgical recovery confirmation
PEARSE – Au/Ag Open Cut
Pearse Open Cut - Gold/Silver dore
Commence 1Q CY13
Life of Mine 2-2.5 years
Mining Rate 100 ktpa
Grade Au 7 g/t
Grade Ag 72 g/t
Recovery Au 90% (was 70-80%)
Recovery Ag 75% (was 50%)
Gold Production 20,000 ozpa
Silver Production 165,000 ozpa
10
For
per
sona
l use
onl
y
REGIONAL - IRON DUKE50km from Mineral Hill, a 2km long Cu/Au Strike Zone/Anomaly
Shallow Open Pit Copper Gold potential.
6km
11
For
per
sona
l use
onl
y
SORBY HILLS
SORBY HILLS
12
50km to Kununurra, 170km to Port• 75% KBL, 25% Henan Yuguang Gold
& Lead
• Largest undeveloped, near surface Ag-Pb deposit in Australia
• 16.7mt of Resources, containing– 28m oz Ag
– 750,000t Pb
– 117,000t Zn
• Life of Mine: 10+ years
• Awaiting final approvals
• Stage 1 (FY14)– 500ktpa
– Central 1km of 12km Resource
– CAPEX: $80-$100m to first ore
For
per
sona
l use
onl
y
BONAPARTE BASIN
250km mineralised syncline, KBL has a commanding position
13
For
per
sona
l use
onl
y
FOCUSED DEVELOPMENT
Sorby is Mississippi Valley Type (MVT) Ag-Pb-Zn. Shallow 12m-40m cover
14
For
per
sona
l use
onl
y
EXPERIENCED MANAGEMENT
Jim WallExecutive Chairman
B Eng (UWA)
Mr Wall has been Managing Director of Nicron Resources Limited, Executive Director of Aztec Mining Company Limited and Managing Director of Savage Resources Limited, during which time its market capitalisation on ASX increased by 40 times to over $600 million.
He is a fellow of the Australian Institute of Mining and Metallurgy and is the former Executive Chairman of CBH Resources Limited, retiring in March 2009.
He was most recently a non-executive director of Ferraus Limited, and has previously been a director of other listed companies, such as Emperor Mines Limited and BMA Gold Limited.
Steve LonerganExecutive Director/Co. Sec.
LLB (Hons), LLM.
Mr Lonergan is a commercial
lawyer based in Sydney with
more than 30 years experience
in the Australian and
international mining industry.
He has been General Counsel of
Pancontinental Mining Group, a
partner at Baker & McKenzie
Sydney, General Counsel and
Company Secretary of Savage
Resources Limited and General
Counsel and Company
Secretary of CBH Resources
Limited.
Directorships of other listed
companies in the last 3 years:
Paradigm Metals Limited and
Finders Resources Limited.
Stuart MathewsChief Operating Officer
MSc (Geology)
Mr Mathews has 23 years of geology, mining, and
project development experience both in
Australia and internationally including project
development through to production at the large
Palmarejo Silver and Gold Mine in Mexico and
the Cowal Gold Mine in NSW, Australia.
Stuart Mathews was previously a Vice President
at Coeur D’Alene Mines Corporation.
His prior experience includes management roles
at gold and base metals mines in Western
Australia, New South Wales, Queensland and
New Zealand.
Trangie JohnstonChief Executive Officer
BSc (Hons) (U.Newcastle), M Econ
Geol (U.Tasmania)
Mr Johnston has over 15 years
experience in the mineral
exploration and mining industry
across a wide range of deposit
types and tectonic settings from
Australia, New Zealand, Saudi
Arabia, southern Africa and
central South America.
Mr Johnston has developed a
scale-independent approach to
the analysis of structural geology
facilitating in target generation
and resource definition for a
range of deposits types including
porphyry, high/low sulphidation
epithermal, IOCG, SEDEX, VHMS,
orogenic gold (brittle to ductile
systems), uranium and rare-
element pegmatites.
Mr. Newman has over 33 years experience in
the mining and exploration industry. He has
held positions as chemist and manager of an
analytical services laboratory as well as being
involved in feasibility studies, design,
construction and commissioning of several
mining and processing operations in Australia
and Papua New Guinea.
Ed NewmanGeneral Manager, Projects
17
For
per
sona
l use
onl
y
RESOURCES SUMMARY
Project mt Fe % Cu % Pb % Zn % Ag g/t Au g/t
Mineral Hill 5.2 1.2 1.6 0.9 37 1.33
Sorby Hills 16.7 4.5 0.7 52
Manbarrum 32.4 0.4 1.3 9
Constance Range 296 53.1
Project mt Fe (mt) Cu (t) Pb (t) Zn (t) Ag (oz) Au (oz)
Mineral Hill 5.2 61,082 83,298 47,599 6,119,832 222,490
Sorby Hills 16.7 751,500 116,900 28,012,903
Manbarrum 32.4 113,400 411,480 9,615,484
Constance Range 296.0 157.2
Grade
Contained metal
19
For
per
sona
l use
onl
y
MINERAL HILL MINE RESOURCES PART 1
Pearse
Tonnes
(thousands) Silver g/t Gold g/t Silver (oz) Gold (oz)
Indicated 226 84 6.7 611,430 48,769
Inferred 71 67 5.7 153,803 13,085
Total 298 80 6.5 765,232 61,853
Parkers Hill Sulphide
Tonnes
(thousands) Copper % Lead % Zinc % Silver g/t Gold g/t Copper (kt) Lead (kt) Zinc (kt) Silver (oz) Gold (oz)
Indicated 1,450 1.9 1.2 1.2 36 0.30 27.6 17.4 17.4 1,678,268 13,986
Inferred 50 1.6 1.1 2.4 48 0.20 0.8 0.6 1.2 77,162 322
Total 1,500 1.9 1.2 1.2 36 0 28.4 18.0 18.6 1,755,429 14,307
Parkers Hill Oxide
Tonnes
(thousands) Copper % Lead % Zinc % Silver g/t Gold g/t Copper (kt) Lead (kt) Zinc (kt) Silver (oz) Gold (oz)
Indicated 900 0.7 3.7 0.4 67 0.04 5.9 33.6 3.4 1,925,957 1,157
Inferred 200 1.8 3.9 0.3 86 0.05 3.6 7.8 0.6 552,992 302
Total 1,100 0.9 3.7 0.4 70 0.05 9.5 41.4 4.0 2,478,949 1,460
ESOZ
Tonnes
(thousands) Copper % Lead % Zinc % Silver g/t Gold g/t Copper (kt) Lead (kt) Zinc (kt) Silver (oz) Gold (oz)
Indicated 101 1.5 0.1 0.2 7 3.7 1.5 0.1 0.2 22,731 12,015
Inferred 214 2.1 0.1 0.1 8 5.1 4.5 0.2 0.2 55,042 35,089
Total 315 1.9 0.1 0.1 8 4.6 6.0 0.3 0.4 77,773 47,104
CategoryContained metalGrade
CategoryGrade Contained metal
Category
CategoryGrade Contained metal
Grade Contained metal
20
For
per
sona
l use
onl
y
MINERAL HILL MINE RESOURCES PART 2
SOZ (Au Zone)
Tonnes
(thousands) Copper % Lead % Zinc % Silver g/t Gold g/t Copper (kt) Lead (kt) Zinc (kt) Silver (oz) Gold (oz)
Measured 162 0.7 0.4 0.3 9 4.1 1.1 0.7 0.5 48,111 21,198
Indicated 74 0.8 0.9 1.0 18 3.9 0.6 0.7 0.7 43,705 9,231
Inferred 165 0.9 0.5 0.5 12 4.9 1.4 0.8 0.9 63,172 26,158
Total 400 0.8 0.5 0.5 12 4.4 3.2 2.1 2.1 154,988 56,587
SOZ (Cu / Au Zone)
Tonnes
(thousands) Copper % Lead % Zinc % Silver g/t Gold g/t Copper (kt) Lead (kt) Zinc (kt) Silver (oz) Gold (oz)
Measured 479 1.4 0.6 0.4 14 1.1 6.8 2.7 2.0 216,065 17,094
Indicated 233 1.0 0.4 0.4 10 1.4 2.2 1.0 0.9 72,789 10,355
Inferred 150 1.0 0.5 0.3 11 1.5 1.6 0.7 0.5 53,497 7,018
Total 862 1.2 0.5 0.4 12 1.3 10.6 4.4 3.4 342,350 34,467
SOZ (Pb / Zn Zone)
Tonnes
(thousands) Copper % Lead % Zinc % Silver g/t Gold g/t Copper (kt) Lead (kt) Zinc (kt) Silver (oz) Gold (oz)
Measured 90 0.7 3.1 2.4 29 0.4 0.7 2.8 2.2 82,916 1,103
Indicated 389 0.4 2.5 2.7 25 0.2 1.5 9.8 10.3 311,595 2,624
Inferred 220 0.3 2.4 3.1 21 0.3 0.7 5.2 6.8 148,472 1,767
Total 699 0.4 2.6 2.8 24 0.2 2.9 17.8 19.3 542,982 5,494
Cut-off grade 2.5g/t Au
Cut-off grade 1.5% Cu Eq.*
Cut-off grade 4% Pb+Zn
CategoryGrade Contained metal
CategoryGrade Contained metal
CategoryGrade Contained metal
21
For
per
sona
l use
onl
y
MINERAL HILL MINE RESERVES
PARKERS HILL UNDERGROUND
Category Tonnes Copper % Zinc % Lead % Silver g/t Gold g/tContained
Copper (T)
Contained
Zinc (T)
Contained
Lead (T)
Contained
Silver (oz)
Contained
Gold (oz)
Probable 493,600 2.17 1.07 0.85 29.4 0.43 10,711 5,282 4,196 466,566 6,824
Category Tonnes Copper % Zinc % Lead % Silver g/t Gold g/tContained
Copper (T)
Contained
Zinc (T)
Contained
Lead (T)
Contained
Silver (oz)
Contained
Gold (oz)
Probable 343,000 1.27 1.89 1.91 49.2 0.13 4,356 6,483 6,551 542,563 1,434
Copper Reserve: Probable Reserves (@ 1% Copper Cut-off Grade)
Lead-Zinc-Low Copper Combined Zone: Probable Reserves (@ 3.5% Combined Lead-Zinc Cut-off Grade)
PEARSE PROJECT
Category Tonnes Silver g/t Gold g/t Contained Silver (oz) Contained Gold (oz)
Probable Primary 28,458 76 6.9 68,417 6,212
Oxide 18,244 14 4.4 8,102 2,546
Sub Total 46,702 52 5.9 76,519 8,758
Proven Primary 152,489 91 7.3 444,709 35,674
Oxide 36,049 16 6.5 18,519 7,523
Sub Total 188,538 77 7.2 463,228 43,198
TOTAL 235,240 72 6.9 539,746 51,956
Open Cut Reserves
22
For
per
sona
l use
onl
y
2.5% Lead cut-off Category
Tonnes Grade
(millions) Silver g/t Lead % Zinc %
Indicated 4.7 63 4.7 0.4
Inferred 12 48 4.5 0.9
Total
Indicated and Inferred16.7 52 4.5 0.7
SORBY HILLS RESOURCES
23
For
per
sona
l use
onl
y
CONSTANCE RANGE IRON ORE DEPOSIT
Tonnes Grade
Category (millions) Iron % Silica %
Phosphorus
%
Aluminium
Oxide % LOI %Within National
Park Inferred 59.59 52.7 10.58 0.02 1.64 11.28
Within Buffer Zone Inferred 131.95 53.1 10.51 0.02 2.09 11.11
Outside Buffer Zone Inferred 104.41 53.4 10.09 0.02 1.02 11.23
Total Inferred 295.96 53.1 10.38 0.02 1.63 11.19
Total (excluding
National Park) Inferred 236.37 53.2 10.33 0.02 1.62 11.16
Constance Range Iron Ore Deposit
25
For
per
sona
l use
onl
y