CAPITAL RAISING PRESENTATION - Luiri Gold Limitedluirigold.com/assets/pdf/LGM Investor PPT 080312.pdf · · 2015-07-09New resource estimate by Coffey Mining Pty Ltd confirms significant

CAPITAL RAISING PRESENTATION

March 2012

NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO US PERSONS

March 2012

Confidentiality and Disclaimer

This presentation, including information contained in this disclaimer, is given to you in strict confidence. By attending the presentation, you agree that no part of this presentation or disclaimer may be disclosed, distributed or reproduced to any third party without the consent of Luiri Gold Limited (“Luiri”).

This presentation is being provided for the sole purpose of providing the recipients with background information about Luiri’s business. This presentation, including the information contained in this disclaimer, does not constitute an offer, invitation or recommendation to subscribe for or purchase any security and neither the presentation, disclaimer nor anything contained in them forms the basis of any contract or commitment. This presentation does not purport to summarise all information that an investor should consider when making an investment decision. It should be read in conjunction with Luiri’s other continuous disclosure announcements lodged with the ASX which are available at www.asx.com.au. Before making an investment decision you should consider whether it is suitable for announcements lodged with the ASX which are available at www.asx.com.au. Before making an investment decision you should consider whether it is suitable for you in light of your own investment profile and objectives and financial circumstances and the merits and risk involved.

This presentation is not a prospectus and does not form part of any offer, invitation or recommendation in respect of shares, or an offer, invitation, recommendation to sell, or a solicitation of any offer to buy, shares in Canada or the United States or to, or for the account or benefit of, any Canadian resident or “U.S. person” (as defined in Regulation S under the U.S. Securities Act of 1933 (the “US Securities Act)) (“US Person”), or in any other jurisdiction in which, or to any person to whom, such an offer would be illegal. Securities may not be offered or sold in the United States or to, or for the account or benefit of, any US Person, absent registration under the US Securities Act or an exemption from the registration requirements of the US Securities Act. The distribution of this presentation outside Australia may be restricted by law and any such restrictions should be observed. Any failure to comply with such restrictions may be a violation of applicable securities laws.

You should be aware that as an Australian company with securities listed on the ASX, the Company is required to report reserves and resources in Australia in accordance with the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (The JORC Code 2004 Edition ) (JORC Code). Mining companies in other countries may be required to report their mineral reserves and/or resources in accordance with other guidelines (for example, SEC Industry Guide 7 in the United States). You should note that while the Company's reserve and resource estimates comply with the JORC Code, they may not comply with the relevant guidelines in other countries, and do not comply with SEC Industry Guide 7, which governs disclosures of mineral reserves in registration statements and certain reports filed with the U.S. Securities and Exchange Commission. In particular, SEC Industry Guide 7 does not recognise classifications other than proven and probable reserves, and, as a result, the SEC generally does not permit mining companies to disclose their mineral resources in SEC registration statements. You should not assume that quantities reported as “resources” will be converted to reserves under the JORC Code or any other reporting regime or that the Company will

www.luirigold.com.au | ASX: LGM

NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO US PERSONS 2

should not assume that quantities reported as “resources” will be converted to reserves under the JORC Code or any other reporting regime or that the Company will be able to legally and economically extract them.

To the maximum extent permitted by law, neither Luiri nor its related corporations, directors, employees or agents, nor any other person, accepts any liability, including, without limitation, any liability arising from fault or negligence, for any loss arising from the use of this presentation or its contents or otherwise arising in connection with it.

You represent and confirm by attending and/or retaining this presentation, that you accept the above conditions.

Company Update

Resource Confirmed

� Luiri Hill Gold Project database reorganised and independently verified

� New resource estimate by Coffey Mining Pty Ltd confirms significant gold resource of 758,000 ounces at a 1.0g/t cut-off

� Large scale mining licence, LML 48 (now known as 8074-HQ-LML), reinstated after extensive

Project Development

� Large scale mining licence, LML 48 (now known as 8074-HQ-LML), reinstated after extensive negotiation process undertaken by new management

� Scoping studies initiated for development of an 8,000 oz per year fast tracked project to deliver early, cash flow positive, scalable production

Exploration� Significant potential resource additions, with trenching indicating additional Dunrobin style

mineralisation between Dunrobin, Chosa and Shadreck. Drilling indicates additional Matalastyle mineralisation at Matala West and Eclipse

Corporate� Significant progress to advance Company since new management appointed in March 2011

� Delisted from the TSXV



� Delisted from the TSXV

Capital Raising

� Luiri Gold Limited is proposing a $5.25 million placement to:

• Continue development of the Luiri Hill Gold Project (potential fast track development of an 8,000 oz per annum project)

• Carry out the 2012 exploration program (drill out known extensions of current resource and add new ounces from well-developed drill targets)

• Provide working capital

Capital Raising

Offer Structure

• 2 tranche placement of 70 million new common shares to be traded as CHESS Depository Interests (CDIs) (Placement CDIs) at $0.075 per CDI to raise $5.25 million (Offer)

Tranche 1: ~18.3m CDIs to raise approximately $1.4m under Luiri Gold’s 15% capacity

Tranche 2: ~51.7m CDIs to raise approximately $3.9m subject to shareholder approval at general meeting

• Continue development of the Luiri Hill Gold Project (potential fast track development of an 8,000

Use of Funds

oz per annum project)



Offer Price

• Fixed price of $0.075 per CDI (Offer Price)

• 14.8% discount to the last close of $0.088 (last trading day prior to the offer)

• 14.8% discount to the 5 day VWAP of $0.088; and

• 12.8% to the 10 day VWAP of $0.086

Offer Securities• Luiri fully paid common shares ranking pari pasu with existing common shares, to be traded as

CHESS Depository Interests



Syndicate• Euroz Securities Limited – Lead Manager

• Patersons Securities Limited – Co-Manager

Option Issue Proposal

• Shareholder approval sought to issue options to key Board members and executives who have worked without full cash remuneration to resolve the Company’s corporate issues and reposition the Company for growth:

12 million options exercisable at 10 cents

Expiry 30 June 2015

Vesting - 50% in 12 months/ 50% in 24 months

Indicative Timetable

Event Date

ASX trading halt Pre-open Tuesday, 6 March 2012

Commence Placement Bookbuild Tuesday, 6 March 2012

ASX announcement and recommencement of trading on the ASX Thursday, 8 March 2012

Settlement - Tranche 1 of Placement Thursday, 15 March 2012

Allotment of Tranche 1 CDIs Friday, 16 March 2012

Expected date of Extraordinary Meeting to approve the issue of Tranche 2 Monday, 16 April 2012



Settlement – Tranche 2 of Placement Tuesday, 17 April 2012

Allotment of Tranche 2 CDIs Wednesday, 18 April 2012

Note: The above timetable is indicative and subject to change without notice

• Luiri Gold Limited holds a mining licence in southern-central Zambia, focused on the historic Dunrobinand Matala gold mines, collectively the Luiri Hill Gold Project

• Luiri Gold Limited is currently implementing a work program to recommence full-scale exploration activities and development studies in Zambia

Corporate Overview

• Company strategy is to extend the project portfolio by acquiring additional “brownfields” gold projects

Shares outstanding (m) (post offer) 197.43

Options (m) (exercisable from $0.10 to $0.85)

10.10

Market Capitalisation ($m) $8.92

Key Information Top Shareholders



Market Capitalisation ($m) $8.92

Cash ($m) $1.2

Debt ($m) Nil

Board and Senior Management

Melissa Sturgess

Non Executive Chairman

• Extensive corporate resources experience throughout Africa

• Executive Chairman of Nyota Minerals Limited (ASX/AIM: NYO)

Evan Kirby

• Metallurgist with 30+ years experience

Evan Kirby

CEO

• Extensive experience in the development of a wide range of mining and minerals processing projects in Africa and Australia, as well as other parts of the world

• Non-executive director of Nyota Minerals Limited (ASX/AIM: NYO) and Bezant plc (AIM:BZT)

Mike Langoulant

Executive Director

• A chartered accountant with 20 years’ experience in corporate administration and fundraising for public companies

• Over 10 years experience with large international accounting firms, and has acted as chief financial officer, company secretary and non-executive director for a number of publicly listed companies

• Chairman of White Cliff Minerals Limited (ASX:WCN) and Finance Director of Nyota Minerals Limited (ASX/AIM: NYO)



Robert Brown

Non Executive Director

• Extensive corporate experience in the fields of venture capital, land development and bio-technology

• Deputy Chairman and a major shareholder in the listed property development company Cedar Woods Properties Ltd (ASX:CWP) and is a foundation investor in Luiri Gold

Clinton White

CEO Luiri Gold Mines

• Geologist with over 20 years production and site management experience and a corporate Member of the IMMM. Worked as General Manager for UK based fluorspar production facility including underground and open pit mines, mineral processing plant and tailings storage facilities

Luiri Hill Gold Project - Overview

Copperbelt Cu-Co

• Centered on the historical Dunrobin and MatalaMines with pre-1980 production of ~31,850oz & ~7,260oz respectively

• 125km west of Lusaka via good quality sealed roadCopperbelt Cu-Co

Broken Hill Pb-Zn

Maamba Colliery

Lumbwana Cu-Co-U

Kansanshi Cu-Au

Munali Hills Ni

road

• Infrastructure includes immediate access to power

• Abundant groundwater supplies

• Moderately undulating to near flat topography –part of the Southern Africa Plateau

• Minimal population – all rural

• Current land use consists of maize & cash



• Current land use consists of maize & cash crops, cattle & goat grazing and charcoal

Project Geology

MATALA STYLE TARGETS

• Eclipse

• Matala West

• Tanduma

DUNROBIN STYLE TARGETS

• Chosa

• Shardreck



Tenement Holdings

• 8074-HQ-LML

31.6 sq km

LML conditions require commencement of mine commencement of mine construction by end 2013

Application to expand to 124.4 sq km (awaiting Government review of permitting system)

• 14948-HQ-LML Large Scale Mining Licence Application

245.7 sq km



245.7 sq km

Conditions linked to 8074-HQ-LML

Awaiting Government review of permitting system before licence can be issued

Recent Exploration Success

• All assay results from the 34 RC holes drilled in 2010 and the 28 trenches undertaken in 2011 have been received

• Trenching at Tanduma and RC holes at Matala West and Eclipse has identified additional West and Eclipse has identified additional Matala style mineralisation

These results indicate the potential for very significant additions to the existing Matala resource

• Trenching at Chosa and Shadreck has identified shallow high-grade gold values similar to Dunrobin

In both cases, mineralisation is open on-



In both cases, mineralisation is open on-strike towards and away from Dunrobin

Project Development

• Luiri has adopted a two-pronged approach to project development:

Luiri Hill Gold Project

Fast Track Development

• Fast tracked development of an 8,000 oz per annum project

• The project objective is to provide sufficient positive cash flow to finance an ongoing exploration and full development study program

Luiri Hill Gold Project

Exploration Targeting 1 million ounces of Gold

• Exploration to grow the resource beyond 1 million ounces

• A resource of this size would support a world class mining and processing operation of 80,000 – 100,000 ounces of gold per annum



development study program

• The project would be designed to be up gradable to achieve a minimum production of 80,000 oz per annum

• Satisfy Zambian stakeholders desire for early project development

ounces of gold per annum

Potential Fast Track to Production

� Scoping level studies have been initiated for development of a 10,000 tons per month mining and processing operation:

Production would be ~8,000 oz per annum at a head grade of ~2.5g/t

Metallurgical plant engineering and cost study awarded to Consulment Metals Pty Ltd of Johannesburg in December 2011. Consulment has appropriate experience in the design and fast‐track construction of modular plants for gold recovery

Mining (underground and open pit) study awarded to Coffey Mining (Johannesburg) – deliverables include estimates of available tonnage, grades and mining costs at both Matala and Dunrobin

Financial modeling awarded to Feza Pty Ltd (Feza) of Johannesburg. Feza is experienced in the development of realistic financial models for fast track project development



� Results from the study are expected during Q2 2012

� All permitting required to commence development is already in place

Project Development – 2012 Objectives and Activities

Objectives

• Increase Resource Base to 1Moz+

Drill out known extensions of current resource

Add new ounces from well-developed drill targets

• Update Environmental Study, and complete Feasibility Studies in 2012

• Decision on Project Development (Fast Track or Large-Scale) during 2012

Activities

• Undertake high resolution airborne geophysical survey

• Continue trenching & geological mapping to improve understanding of target areas



• Continue trenching & geological mapping to improve understanding of target areas

• Upgrade GIS database to include all available aerial and ground data

• Refine targets and prioritise on prospectivity basis

• Execute focussed drilling campaign

• Identify and evaluate project development alternatives

2012 Exploration Program

Phase 1

1Q 2012 2Q 2012 3Q 2012 4Q 2012

• Airborne Survey

• Trenching and geological mapping

Phase 2

• Exploration on individual targets

• Infill resource RC + DD drilling



drilling

Phase 3

• Detailed feasibility study to evaluate development alternatives

Summary

� New resource estimate by Coffey Mining Pty Ltd confirms significant gold resource of 758,000 ounces at a 1.0g/t cut-off

� Luiri Gold Limited is pursuing a two pronged approach to project development:

1. Fast tracked development of an 8,000 ounces per annum project to deliver early, positive cash flows from scalable production

In parallel with

2. Exploration to grow the resource beyond 1 million ounces, to support a world class mining and processing operation of 80,000 – 100,000 ounces per annum

� The proposed Placement of $5.25 million will allow the company to:

• Continue development of the Luiri Hill Gold Project (potential fast track development of



• Continue development of the Luiri Hill Gold Project (potential fast track development of an 8,000 oz per annum project)



Appendix: Resources and Reserves

Matala Deposit

Lower Cut‐‐‐‐OffGrade

(g/t Au)

Tonnes (000’s)

Average Grade(g/t Au)

Ounces (000’s)

Indicated 1.0 3,204 2.7 278

Inferred 1.0 4,525 2.0 290

Dunrobin Deposit


(g/t Au)

Tonnes (000’s)


Ounces (000’s)

Indicated 1.0 1,851 2.3 134

Inferred 1.0 1,011 1.7 56

Matala and Dunrobin Deposits Combined


(g/t Au)

Tonnes (000’s)


Ounces (000’s)



‐‐‐‐

(g/t Au)(000’s) (g/t Au) (000’s)

Indicated 1.0 5,055 2.5 412

Inferred 1.0 5,536 1.9 346

Competent PersonThe information in this report that relates to Mineral Resources is based on information compiled by Mr Brian Wolfe, B.Sc Hons (Geol), MAIG an

employee of Coffey Mining Limited. Mr Wolfe has sufficient experience that is relevant to the style of mineralization 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 Wolfe consents to the inclusion in the report of the matters based on this information in the form and context in which it appears.

Documents

CAPITAL RAISING PRESENTATION - Luiri Gold Limitedluirigold.com/assets/pdf/LGM Investor PPT 080312.pdf · · 2015-07-09New resource estimate by Coffey Mining Pty Ltd confirms significant