Upload
others
View
13
Download
0
Embed Size (px)
Citation preview
Kingsgate Consolidated LimitedKingsgate Consolidated Limited
GavinThomasGavinThomas Brisbane
Mining ClubJuly 2011
BrisbaneMining ClubJuly 2011
Growing a Premier Mid-Tier Gold Miner
in Asia/Pacific
Growing a Premier Mid-Tier Gold Miner
in Asia/Pacific
These materials include forward looking statements. Forward looking statements inherently involve subjective judgment &analysis & are subject to significant uncertainties, risks & contingencies, many of which are outside of the control of, & may beunknown to, the company.
Actual results and developments may vary materially from that expressed in these materials. The types of uncertainties whichare relevant to the company may include, but are not limited to, commodity prices, political uncertainty, changes to theregulatory framework which applies to the business of the company & general economic conditions. Given these uncertainties,readers are cautioned not to place undue reliance on such forward looking statements.
Forward looking statements in these materials speak only at the date of issue. Subject to any continuing obligations underapplicable law or any relevant stock exchange listing rules, the company undertakes any obligation to publicly update or reviseany of the forward looking statements, changes in events, conditions or circumstances on which any such statement is based.
These materials include forward looking statements. Forward looking statements inherently involve subjective judgment &analysis & are subject to significant uncertainties, risks & contingencies, many of which are outside of the control of, & may beunknown to, the company.
Actual results and developments may vary materially from that expressed in these materials. The types of uncertainties whichare relevant to the company may include, but are not limited to, commodity prices, political uncertainty, changes to theregulatory framework which applies to the business of the company & general economic conditions. Given these uncertainties,readers are cautioned not to place undue reliance on such forward looking statements.
Forward looking statements in these materials speak only at the date of issue. Subject to any continuing obligations underapplicable law or any relevant stock exchange listing rules, the company undertakes any obligation to publicly update or reviseany of the forward looking statements, changes in events, conditions or circumstances on which any such statement is based.
Forward Looking Statements:Forward Looking Statements:
Some statements in this presentation regarding estimates or future events are forward looking statements. They involve riskand uncertainties that could cause actual results to differ from estimated results. Forward looking statements include estimatesof future production, cash and total costs per ounce of production, reserve and mineralized material estimates, capital costs,and other estimates or prediction of future activities. They include statements proceeded by words such as “believe,”“estimate,” “expect,” “intend,” “will,” and similar expressions. Actual results could differ materially depending on such thingsas political events, labour relations, currency fluctuations and other general economic conditions, market prices for DominionMining Limited and/or Kingsgate Consolidated Limited products, timing of permits and other government approvals andrequirements, changes in operating conditions, lower than expected ore grades, unexpected ground and mining conditions,availability and cost of materials and equipment, and risks generally inherent in the ownership and operation of miningproperties and investment in foreign countries.
Some statements in this presentation regarding estimates or future events are forward looking statements. They involve riskand uncertainties that could cause actual results to differ from estimated results. Forward looking statements include estimatesof future production, cash and total costs per ounce of production, reserve and mineralized material estimates, capital costs,and other estimates or prediction of future activities. They include statements proceeded by words such as “believe,”“estimate,” “expect,” “intend,” “will,” and similar expressions. Actual results could differ materially depending on such thingsas political events, labour relations, currency fluctuations and other general economic conditions, market prices for DominionMining Limited and/or Kingsgate Consolidated Limited products, timing of permits and other government approvals andrequirements, changes in operating conditions, lower than expected ore grades, unexpected ground and mining conditions,availability and cost of materials and equipment, and risks generally inherent in the ownership and operation of miningproperties and investment in foreign countries.
DisclaimerDisclaimer
Why Gold and silverWhy Gold and silver��
��
�� Diversified ProductionDiversified Production
�� Resource GrowthResource Growth
��
Production GrowthProduction Growth
Strong CashflowStrong Cashflow
Premier ASX Mid-Tier Gold MinerPremier ASX Mid-Tier Gold Miner
�� Growth OpportunitiesGrowth Opportunities
1971 1975 1980 1985 1990 1995 2000 2005 2010$0
$1600
$600
$200
$400
$800
$1000
$1200
$1400
US$ Why Gold ?Why Gold ?• Flat/decreasing mine supply
• Growing physical demand
• China
• Central bank buying
• Growing investment demand
• Inflation hedge
• Currency protection
• Safe haven/asset class
• Flat/decreasing mine supply
• Growing physical demand
• China
• Central bank buying
• Growing investment demand
• Inflation hedge
• Currency protection
• Safe haven/asset class
(Source: Dr M Murenbeeld)
(Source: Bloomberg)(Source: Bloomberg)
Is This a Gold Bubble?Is This a Gold Bubble?
RelativePerformance
Time since beginning of Cycle
1000%
500%
2000%
1500%
0
Jan 1980$850
1972-1985
1999-Present
May 2011$1,572
(Source: Bloomberg)(Source: Bloomberg)
Is This a Gold Bubble? No!Is This a Gold Bubble? No!
RelativePerformance
Time since beginning of Cycle
1000%
500%
2000%
1500%
0
Jan 1980$850
1972-1985
1999-Present
May 2011$1,572
Global MarketSize
Global MarketSize
Gold: Over Talked & Under InvestedGold: Over Talked & Under Invested
• Bond Market : $91,200 Bn
• Equity Market : $41,500 Bn
• Total Gold Market : $1,100 Bn
• Bond Market : $91,200 Bn
• Equity Market : $41,500 Bn
• Total Gold Market : $1,100 Bn
Gold MarketInvestment Assets
Gold MarketInvestment Assets
• ETF’s, coins & bars ~$200 Bn
• China imported 200t of gold in Jan 11
(~50% of world production)
• ETF’s, coins & bars ~$200 Bn
• China imported 200t of gold in Jan 11
(~50% of world production)
Growing InflationFears
Growing InflationFears
• Which currency do you invest in?
• If global inflation x2 bonds may fall >10%
• Hard assets & gold the only real currency
• Which currency do you invest in?
• If global inflation x2 bonds may fall >10%
• Hard assets & gold the only real currency
Where to?Where to? • A lot of talk for 2 years about this
but no real investment – except China
• A lot of talk for 2 years about this
but no real investment – except China
Gold Price vs US Interest RatesGold Price vs US Interest Rates
-5% -4% -3% -2% -1% 0 +1%
2007 2008 2009 2010 2011
1600
600
1000
1400
1200
800
0.5
3.0
2.0
1.0
1.5
2.5
Gold priceUS 10 Year tips Yield
$/troy oz %
Russia
France
GermanyItalyUSA
China
India
IndonesiaUK
Vietnam
HongKong
TurkeyJapan
Switzerland
Retail Deposit RatesminusForecast 2011 Inflation Rates
�Gold has a strong correlation to low interest rates
�Most countries currently has negative real interest rates
� Situation unlikely to change soon
Return of the Gold Standard?Return of the Gold Standard?
Chinese Gold DemandChinese Gold Demand
Total Gold Demand
� China Outstrips western world demand for the first time in 2010
Gold Investment Demand
� China catching up fast
200
150
100
50
02001 2005 2011
250ChinaIndia
Source: GFMS
M Tonnes
700
600
500
400
300
200
100
02001 2005 2010
ChinaDeveloped West
Source: GFMS, World Gold Council
Tonnes
Global Gold Mine ProductionGlobal Gold Mine Production
(Source: USGS)(Source: USGS)
0
200
400
600
800
1,000
1,200
1,400
1,600
0
500
1,000
1,500
2,000
2,500
3,000
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
GoldPrice
MineProduction
(t)
Peak Gold?Peak Gold?
Global Gold SupplyGlobal Gold Supply
1,400
Global Gold Supply1,400
-200
0
200
800
400
600
1,200
1,000
Volume (tonnes)
Mine production
Old gold scrap
Net Producer hedging
Gold priceOfficialSector sales
-200
0
200
800
400
600
1,200
1,000
Gold Price (U
S$/oz)
Source: World Gold Council, Credit Suisse estimates
2008 20112009 2010
Gold Grade DecreasingGold Grade Decreasing
Total G
old Ore Processed (Mt)
Total OP ore milledTotal UG ore milled
Dump tails milledTotal ore heap leached
Average grade
Weighted Av. H
ead Grade (g/t)
Tonnages
increasin
g
Gradesdecreasing
1995 2000 2005 2010
2.4
2.2
2.0
1.8
1.2
1.0
1.6
1.4
2,000
0
1,800
1,400
1,000
1,200
1,600
200
800
400
600
0.8
Global Mine Production
Source: Company data, Credit Suisse estimates
Gold Industry Discovery ProfileGold Industry Discovery Profile
(Source: Newcrest)(Source: Newcrest)
Contained
Gold (MOz)
160
140
120
100
80
60
40
20
0
Number of
Discoveries
16
14
12
10
8
6
4
2
01997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
US$
$50
$0
$30
$10
$20
$40
1971 1975 1980 1985 1990 1995 2000 2005 2010
• Silver is a unique precious metal• High correlation to gold
• Produced primarily as a by-product
• Silver is a store of value• Physical demand has risen significantly over the
past few years
• ETF demand continues at record levels
• Silver is a versatile industrial metal• New uses are being developed
• Relied upon in advancement of developed and
emerging economies
• Silver is a unique precious metal• High correlation to gold
• Produced primarily as a by-product
• Silver is a store of value• Physical demand has risen significantly over the
past few years
• ETF demand continues at record levels
• Silver is a versatile industrial metal• New uses are being developed
• Relied upon in advancement of developed and
emerging economies
Why Silver ?Why Silver ?
(Source: Silver I Wheaton)(Source: Silver I Wheaton)
BeijingBeijing
TokyoTokyo
BangkokBangkok
AdelaideAdelaide SydneySydney
Los AngelesLos Angeles
SantiagoSantiagoBuenosAiresBuenosAires
New YorkNew York
Didipio
AtlasTampakan
GrasbergOk Tedi
Porgera
MonywaLoei
Sepon
BatuHijau
Cadia
Yanacocha
Escondida
Chuquicamata
El Teniente
Hishikari
Sado
Masbate
LihirGold Ridge
LebongPongkor
MtMuro
BauKelian
Mamut
AwakMas
GosowongToka Tindung
Kidston
Mt LeyshonCracow
PeakHill
Mt KasiEmperor
Waihi
Macraes
Bella Vista
Mulatos
Hehaughlin
Fruta del NortePierina
El Peñon
Esquel
Cerro Negro
Miwah
Pacific “Rim of Fire”Pacific “Rim of Fire”
Epithermal/Porphyry DepositsEpithermal/Porphyry Deposits
The Golden HarvestThe Golden Harvest
2010 - One Mine One Country2010 - One Mine One Country
ChatreeChatree
Kingsgate Growth StrategyKingsgate Growth Strategy
� Landmark victory by Puea Thai Party with 265 seats out of 500 seats
� Formed coalition to strengthen majority
� Led by Yingluck Shinawatra sister of former prime minister ThaksinShinawatra
�Decisive victory should lead to a more politically stable Thailand
� Thai politics confined to Bangkok
�Chatree has not lost one day of production during six changes of Government and a military coup
� Landmark victory by Puea Thai Party with 265 seats out of 500 seats
� Formed coalition to strengthen majority
� Led by Yingluck Shinawatra sister of former prime minister ThaksinShinawatra
�Decisive victory should lead to a more politically stable Thailand
� Thai politics confined to Bangkok
�Chatree has not lost one day of production during six changes of Government and a military coup
Thai Political ChangeThai Political Change
T h a i l a n d
BangkokBangkok
ChatreeChatree
Chatree – Thai Gold BeltChatree – Thai Gold Belt
Pending
Granted
NakhonsawanProvince
PhitsanulokProvince
PhichitProvince
PhetchabunProvince
NakhonsawanProvince
PhichitProvince
PhetchabunProvince
PhitsanulokProvince
ChatreeChatree
70 k
m70 k
m
T h a i l a n d
Thai Gold BeltThai Gold Belt
ChatreeChatree
BangkokBangkokWorld Class Gold
Province
World Class Gold
Province
First Mover
Advantage
First Mover
Advantage
1,300 km2 Tenement
Package
Multiple Targets
1,300 km2 Tenement
Package
Multiple Targets
1 km1 km1 km1 km1 km1 km1 km1 kmChatree - World Class DepositChatree - World Class Deposit
World Class Gold Deposits
are +5 Moz
World Class Gold Deposits
are +5 Moz
Chatree ~6Moz
to date & growing
including mined to date
Chatree ~6Moz
to date & growing
including mined to date
1.9 Moz Reserve
4.3 Moz Resource*
1.9 Moz Reserve
4.3 Moz Resource*
Section5km5km1 km1 km1 km1 km1 km1 km1 km1 km(*As at 30 June 2010)
Organic Growth - Expanding PitsOrganic Growth - Expanding Pits
Chatree Grade/Tonnage Variance Versus Gold Price*
Gold Price(US$)
Gold Grade(g/t)
Tonnes(Millions)
Contained Gold(Moz)
1050 0.98 71 2.2
1150 0.96 78 2.4
1250 0.85 100 2.7
Underground PotentialUnderground Potential
Exploration PotentialExploration Potential
CHATREENORTH
CHATREENORTH
CHATREECHATREE
PhichitProvincePhichit
Province
PhetchabunProvince
PhetchabunProvince
PhitsanulokProvince
PhitsanulokProvince
BanDongLong
BanDongLong
BanKhoDin
BanKhoDin
1 Km1 Km
�Current reserves within Chatreeand Chatree North leases
�Open to the North, East and South
� Significant near mine potential
�Current reserves within Chatreeand Chatree North leases
�Open to the North, East and South
� Significant near mine potential
What’sWhat’sNext?
Plant expansion to +2.7 MtpaPlant expansion to +2.7 Mtpa
Current Plant 2.3 Mtpa
Chatree Expansion on Schedule Chatree Expansion on Schedule
Total project capex US$125M; EPCM contract US$100M Expensed ~US$85M; Remaining ~US$45M
Tax incentives granted for production from new plant
Total project capex US$125M; EPCM contract US$100M Expensed ~US$85M; Remaining ~US$45M
Tax incentives granted for production from new plant
Chatree processing plant capacity increase from 2.3 to +5 MtpaCompletion expected in September Quarter 2011Increase production rate up to 200,000 ounces per year
Chatree processing plant capacity increase from 2.3 to +5 MtpaCompletion expected in September Quarter 2011Increase production rate up to 200,000 ounces per year
Plant expansion +2.7 MtpaPlant expansion +2.7 Mtpa
And Under BudgetAnd Under Budget
Capital Projects Under PressureCapital Projects Under Pressure
Kingsgate and Ausenco do it AgainKingsgate and Ausenco do it Again
�Chatree North expansion on schedule and under budget
�Despite
� Heaviest wet season in a generation
� Capital pressure on resource construction projects
�Relationship built up over a decade
�Chatree North expansion on schedule and under budget
�Despite
� Heaviest wet season in a generation
� Capital pressure on resource construction projects
�Relationship built up over a decade
2011 - Two Mines Two Countries2011 - Two Mines Two Countries
ChatreeChatree
Kingsgate DiversifiesKingsgate Diversifies
ChallengerChallenger
Challenger Gold MineChallenger Gold Mine
�Acquired by KCN in Feb 2011
�Underground mine in Central South Australia
�Annual production ~100koz
�Reserves ~420koz
�Resources of ~950koz
� Strong reserve increase since commencement and further reserve growth anticipated
�Acquired by KCN in Feb 2011
�Underground mine in Central South Australia
�Annual production ~100koz
�Reserves ~420koz
�Resources of ~950koz
� Strong reserve increase since commencement and further reserve growth anticipated
Turn Around StoryTurn Around Story
NE SW
ChallengerChallenger
800
1000
600
400
200
0
-200
RL(m)
-400
Challenger Mineralised StructuresChallenger Mineralised Structures
VentilationShaft
VentilationShaft
M 1
M 2
M 3IdentifiedStructures
OpenDownDip
OpenDownDip
OpenDownDip
OpenDownDip
Upside
800 LevelExploration Drive800 LevelExploration Drive
280 LevelExploration Drive
280 LevelExploration Drive
Long Section
1000
800
600
400
200
0
-200
RL(m)
E WChallengerChallengerVentilation
ShaftVentilation
Shaft
820 LevelArea of current drilling820 LevelArea of current drilling
1111
8888
33334444
5555
6,76,76,76,7
2222
800 LevelExploration Drive800 LevelExploration Drive
280 LevelExploration Drive
280 LevelExploration Drive
M 1
M 2
M 3
OtherStructures
ChallengerWestSIGNIFICANT CHALLENGER WEST INTERSECTIONS
from surface and underground drilling
Hole IDInterval(m)
Gold(g/t)
Comments(g/t gold)
InterceptRL
1 08CDDH0083 1.21 251.95 surface drilling 931m
2 08CDDH0085W1 0.90 310.87 surface drilling 882m
3 09CUD0582 1.00 12.13 782m
4 10CUD0584 3.00 28.46 incl [email protected] 797m
5 10CUD0586 0.52 55.98 814m
6 11CUD0782 1.00 8.14 incl [email protected] 845m
7 11CUD0782 0.89 32.84 incl [email protected] 847m
8 11CUD0783 2.16 109.83 incl [email protected] 826m
Challenger Exploration DrillingChallenger Exploration Drilling
1000
800
600
400
200
0
-200
RL(m)
E WChallengerChallengerVentilation
ShaftVentilation
Shaft
Upside
OpenDownDip
OpenDownDip
OpenDownDip
OpenDownDip
OpenDownDip
OpenDownDip
Upside
M 1
M 2
M 3
OtherStructures
ChallengerWest
820 LevelArea of current drilling820 LevelArea of current drilling
280 LevelExploration Drive
280 LevelExploration Drive
800 LevelExploration Drive800 LevelExploration Drive
Challenger Upside PotentialChallenger Upside Potential
Challenger Area OpportunitiesChallenger Area Opportunities
�Challenger – single point gold anomaly
�Additional structures identified for follow-up
� Long term exploration potential in mine vicinity
�Challenger – single point gold anomaly
�Additional structures identified for follow-up
� Long term exploration potential in mine vicinityChallenger
Kingsgate GrowsKingsgate Grows
ChallengerChallenger
ChatreeChatree
ArquerosArqueros
2013 Three Mines Three Countries2013 Three Mines Three Countries
Arqueros Project Well LocatedArqueros Project Well Located
� Significant experience in the gold and copper belts
�Acquired 70% of Laguna in Feb 2011
�Arqueros project located in the world-class Maricunga Gold-Silver Belt
�MaricungaBelt
� Host to over 70Moz gold resources
� Produced over 10Moz gold
� Currently producing ~500Kozpa
� Significant experience in the gold and copper belts
�Acquired 70% of Laguna in Feb 2011
�Arqueros project located in the world-class Maricunga Gold-Silver Belt
�MaricungaBelt
� Host to over 70Moz gold resources
� Produced over 10Moz gold
� Currently producing ~500Kozpa
San Cristobal
El Tesoro
Choquelimpie
Acquired Esperanza from KinrossAcquired Esperanza from Kinross
ArquerosArqueros Chimberos/Esperanza CampChimberos/Esperanza Camp
Chimberos PitChimberos Pit
� Considerable surface rights and mine infrastructure
� Satellite mineralisation and increased exploration potential
� Considerable surface rights and mine infrastructure
� Satellite mineralisation and increased exploration potential
� Adds ~20Moz of silver resources (~340koz gold EQ)
� Earlier plant commissioning and faster ramp-up with Teterita deposit
� Adds ~20Moz of silver resources (~340koz gold EQ)
� Earlier plant commissioning and faster ramp-up with Teterita deposit
EsperanzaEsperanza
5 Kilometres5 Kilometres
Arqueros
ChimberosTeterita
Fast Track to ProductionFast Track to Production
�1.6 Million ounces gold EQ* (95 Million ounces silver EQ)
�Average grade of 1.5g/t* gold equivalent (cut-off: 0.7 g/t g/e)
� Target production of 100,000oz pa* gold equivalent by open cut mine
�19,000m definition drilling completed
� Feasibility study commenced
�Proven management team
(* Calculated at Ag US$18/oz)
�1.6 Million ounces gold EQ* (95 Million ounces silver EQ)
�Average grade of 1.5g/t* gold equivalent (cut-off: 0.7 g/t g/e)
� Target production of 100,000oz pa* gold equivalent by open cut mine
�19,000m definition drilling completed
� Feasibility study commenced
�Proven management team
(* Calculated at Ag US$18/oz)
Kingsgate to DeliverKingsgate to Deliver
ChallengerChallenger
ChatreeChatree
ArquerosArqueros
Strong Production GrowthStrong Production Growth
0
100
200
300
400
500
2008 2009 2010 2011F 2012F 2013F 2014F
Gold Production Growth(in ‘000 ounces)
Chatree Challenger Arqueros (100%)
Thailand - Chatree mine and expansion
Australia - Challenger Gold Mine
Chile - Arqueros Au/Ag project (KCN 70%)
Thailand - Chatree mine and expansion
Australia - Challenger Gold Mine
Chile - Arqueros Au/Ag project (KCN 70%)
Premier Mid Tier Gold ProducerPremier Mid Tier Gold Producer
DiversifiedProductionand Growth
DiversifiedProductionand Growth
ResourceGrowthResourceGrowth
• In-pit and u/g potential at Chatree
• Prospective u/g zones at Challenger
• In-pit and u/g potential at Chatree
• Prospective u/g zones at Challenger
DiscoveryPotentialDiscoveryPotential
Thailand - Chatree near mine and SPL’s
Australia - Challenger and other projects
Chile – Arqueros and Maricunga leases
Thailand - Chatree near mine and SPL’s
Australia - Challenger and other projects
Chile – Arqueros and Maricunga leases
DividendDifferentialDividend
Differential
• Interim dividend A$0.10/share
• Paid A$1.39/share over past 8 years
• High yielding gold stock (+3%)
• Interim dividend A$0.10/share
• Paid A$1.39/share over past 8 years
• High yielding gold stock (+3%)
www.kingsgate.com.au
Kingsgate Consolidated LimitedKingsgate Consolidated Limited
Shares: 134 Million Market Cap: ~A$1.3Bn
ASX: KCN
Shares: 134 Million Market Cap: ~A$1.3Bn
ASX: KCN
www.kingsgate.com.au
The information in this presentation that relates to Challenger’s Exploration Results, Mineral Resources or Ore Reserves isbased on information compiled by Peter Bamford, Tony Poustie and Paul Androvic who are full-time employees of theCompany, members of the Australasian Institute of Mining and Metallurgy. Peter Bamford, Tony Poustie and Paul Androvichave sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration and to theactivity, which they are undertaking to qualify as Competent Persons as defined in the 2004 Edition of the ‘Australasian Codefor Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Peter Bamford, Tony Poustie and Paul Androvic,consent to the inclusion in the report of the matters based on their information in the form and context in which it appears.
The information in this presentation that relates to Challenger’s Exploration Results, Mineral Resources or Ore Reserves isbased on information compiled by Peter Bamford, Tony Poustie and Paul Androvic who are full-time employees of theCompany, members of the Australasian Institute of Mining and Metallurgy. Peter Bamford, Tony Poustie and Paul Androvichave sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration and to theactivity, which they are undertaking to qualify as Competent Persons as defined in the 2004 Edition of the ‘Australasian Codefor Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Peter Bamford, Tony Poustie and Paul Androvic,consent to the inclusion in the report of the matters based on their information in the form and context in which it appears.
Information in this presentation that relates to Kingsgate’s Exploration Results, Mineral Resource and Ore Reserve estimates,geology, drilling and mineralisation, is based on information compiled by Ron James, who is an employee of the KingsgateGroup and is a member of The Australasian Institute of Mining and Metallurgy. Ron James is a Competent Person under themeaning of the JORC Code with respect to Exploration Results, Mineral Resource and Ore Reserve estimates, geology, drillingand mineralisation being presented. He has given his consent to the Public Reporting of these statements concerningExploration Results, Mineral Resource and Ore Reserve estimates, geology, drilling and mineralisation, and is in agreementwith the contents and format of this presentation.
Information in this presentation that relates to Kingsgate’s Exploration Results, Mineral Resource and Ore Reserve estimates,geology, drilling and mineralisation, is based on information compiled by Ron James, who is an employee of the KingsgateGroup and is a member of The Australasian Institute of Mining and Metallurgy. Ron James is a Competent Person under themeaning of the JORC Code with respect to Exploration Results, Mineral Resource and Ore Reserve estimates, geology, drillingand mineralisation being presented. He has given his consent to the Public Reporting of these statements concerningExploration Results, Mineral Resource and Ore Reserve estimates, geology, drilling and mineralisation, and is in agreementwith the contents and format of this presentation.
Competent Persons Statements:Competent Persons Statements:
General Disclaimer:General Disclaimer:
The information contained in this presentation is for informational purposes only and does not constitute an offer to issue, orarrange to issue securities or other financial products. The information contained in this presentation is not investment orfinancial product advice and has been prepared without taking into account the investment objectives, financial situation orparticular needs of any person. To the maximum extent permitted by law, none of Dominion Mining Limited, KingsgateConsolidated Limited, their respective directors, employees or agents, nor any other person accepts any liability includingwithout limitation any liability arising out of fault or negligence for any loss caused from the use of the information containedin this presentation. No representation or warranty, express or implied, is given as to the accuracy, completeness orcorrectness, likelihood of achievement or reasonableness of any forecasts or other forward looking statements.
The information contained in this presentation is for informational purposes only and does not constitute an offer to issue, orarrange to issue securities or other financial products. The information contained in this presentation is not investment orfinancial product advice and has been prepared without taking into account the investment objectives, financial situation orparticular needs of any person. To the maximum extent permitted by law, none of Dominion Mining Limited, KingsgateConsolidated Limited, their respective directors, employees or agents, nor any other person accepts any liability includingwithout limitation any liability arising out of fault or negligence for any loss caused from the use of the information containedin this presentation. No representation or warranty, express or implied, is given as to the accuracy, completeness orcorrectness, likelihood of achievement or reasonableness of any forecasts or other forward looking statements.
AppendixAppendix
ChatreeChatree
2.190.1412.10.795.6Stockpiles
(million ounces)(million ounces)(g/t)(g/t)(millions)
Chatree Ore Reserves as at 30 June 2010 (>0.4g/t gold cut-off grade)
18.63
5.02
11.42
Silver Contained
1.93
0.59
1.20
Gold Contained
9.4
8.4
9.5
Silver Grade
0.9761.7TotalChatree Total
0.9818.7Probable
1.0037.4ProvedFrom Pits
Gold GradeTonnesCategorySource
2.190.1412.10.795.6Stockpiles
(million ounces)(million ounces)(g/t)(g/t)(millions)
Chatree Ore Reserves as at 30 June 2010 (>0.4g/t gold cut-off grade)
18.63
5.02
11.42
Silver Contained
1.93
0.59
1.20
Gold Contained
9.4
8.4
9.5
Silver Grade
0.9761.7TotalChatree Total
0.9818.7Probable
1.0037.4ProvedFrom Pits
Gold GradeTonnesCategorySource
2.190.1412.10.795.6Stockpiles
(million ounces)(million ounces)(g/t)(g/t)(millions)
Chatree Mineral Resources Inclusive of Ore Reserves as at 30 June 2010 (>0.3g/t gold cut-off grade)
36.97
4.86
11.07
18.85
Silver Contained
4.32
0.72
1.39
2.07
Gold Contained
6.6
4.8
6.1
7.4
Silver Grade
0.77173.5TotalChatree Total
0.7131.4Inferred
0.7656.7Indicated
0.8179.8MeasuredFrom Pits
Gold GradeTonnesCategorySource
2.190.1412.10.795.6Stockpiles
(million ounces)(million ounces)(g/t)(g/t)(millions)
Chatree Mineral Resources Inclusive of Ore Reserves as at 30 June 2010 (>0.3g/t gold cut-off grade)
36.97
4.86
11.07
18.85
Silver Contained
4.32
0.72
1.39
2.07
Gold Contained
6.6
4.8
6.1
7.4
Silver Grade
0.77173.5TotalChatree Total
0.7131.4Inferred
0.7656.7Indicated
0.8179.8MeasuredFrom Pits
Gold GradeTonnesCategorySource
Information in this presentation re lates to E xp loration Results, Minera l Res ourc e and Ore Reserve est imates based on information compiled by the following Competent P ersons: Ron James , Fiona Davids on, G uy Davies and S uphanit S uphananthi who are employees of the Kings gate Group and members of The Australasian Institu te of Mining and Metallu rgy and Rob Sp iers who is an employee of Hellman & Schof ie ld Pty Ltd and member of The Aus tralian Institute of Geoscientists. These peop le qua lify as C ompetent Persons as defined in the Australasian Code for Reporting of E xploration Resu lts, Mineral Resources and Ore Reserves (the JORC Code, 2004 edition) and poss ess relevant experienc e in relation to the mineralisation be ing reported here in as Explorat ion Results, Mineral Res ources and Ore Res erves. Each Competent P erson has consented to the Public Reporting of these statements and the inclusion of the material in the form and context in whic h it appears.
Competent Persons Statement:
Information in this presentation re lates to E xp loration Results, Minera l Res ourc e and Ore Reserve est imates based on information compiled by the following Competent P ersons: Ron James , Fiona Davids on, G uy Davies and S uphanit S uphananthi who are employees of the Kings gate Group and members of The Australasian Institu te of Mining and Metallu rgy and Rob Sp iers who is an employee of Hellman & Schof ie ld Pty Ltd and member of The Aus tralian Institute of Geoscientists. These peop le qua lify as C ompetent Persons as defined in the Australasian Code for Reporting of E xploration Resu lts, Mineral Resources and Ore Reserves (the JORC Code, 2004 edition) and poss ess relevant experienc e in relation to the mineralisation be ing reported here in as Explorat ion Results, Mineral Res ources and Ore Res erves. Each Competent P erson has consented to the Public Reporting of these statements and the inclusion of the material in the form and context in whic h it appears.
Competent Persons Statement:
ChallengerChallenger
92.1157Stockpiles
(thousand ounces)(g/t)(thousands)
Challenger Ore Reserves as at 30 June 2010
420
352
59
Gold Contained
5.72,310TotalChallenger Total
6.01,834Probable
5.8318ProvedFrom Mine
Gold GradeTonnesCategorySource
92.1157Stockpiles
(thousand ounces)(g/t)(thousands)
Challenger Ore Reserves as at 30 June 2010
420
352
59
Gold Contained
5.72,310TotalChallenger Total
6.01,834Probable
5.8318ProvedFrom Mine
Gold GradeTonnesCategorySource
81.8157Stockpiles
(thousand ounces)(g/t)(thousands)
Challenger Mineral Resources as at 30 June 2010
950
418
460
63
Gold Contained
6.84,371TotalChallenger Total
7.81,672Inferred
6.42,232Indicated
6.3310MeasuredFrom Mine
Gold GradeTonnesCategorySource
81.8157Stockpiles
(thousand ounces)(g/t)(thousands)
Challenger Mineral Resources as at 30 June 2010
950
418
460
63
Gold Contained
6.84,371TotalChallenger Total
7.81,672Inferred
6.42,232Indicated
6.3310MeasuredFrom Mine
Gold GradeTonnesCategorySource
The in format ion in this presentat ion that re lates to Exp loration Results, Mineral Resources or Ore Reserves is based on information compiled by Peter Bamford, Tony Poustie and Paul Androvic who are full-time employees of the Company, members of the Austra lasian Institute o f Mining and Metallurgy. Peter Bamford, Tony Poustie and Paul Androvic have suff icient experience, which is relevant to the style of minera lis ation and type of deposit under consideration and to the act ivity, which they are undertaking to qualif y as Competent Persons as defined in the 2004 Edition of the ‘Australasian C ode for Reporting of Exp loration Results, Mineral Resources and O re Reserves’. Peter Bamford, Tony Poustie and Paul Androvic , cons ent to the inclusion in the report of the matters based on their information in the form and c ontext in which it appears.
Competent Persons Statement:
The in format ion in this presentat ion that re lates to Exp loration Results, Mineral Resources or Ore Reserves is based on information compiled by Peter Bamford, Tony Poustie and Paul Androvic who are full-time employees of the Company, members of the Austra lasian Institute o f Mining and Metallurgy. Peter Bamford, Tony Poustie and Paul Androvic have suff icient experience, which is relevant to the style of minera lis ation and type of deposit under consideration and to the act ivity, which they are undertaking to qualif y as Competent Persons as defined in the 2004 Edition of the ‘Australasian C ode for Reporting of Exp loration Results, Mineral Resources and O re Reserves’. Peter Bamford, Tony Poustie and Paul Androvic , cons ent to the inclusion in the report of the matters based on their information in the form and c ontext in which it appears.
Competent Persons Statement:
JORCJORCJORCJORC Sep.2010Sep.2010Sep.2010Sep.2010 MillionMillionMillionMillion Grades, g/tGrades, g/tGrades, g/tGrades, g/t Ounces, thousandsOunces, thousandsOunces, thousandsOunces, thousands
CategoryCategoryCategoryCategory Tonnes Gold Silver AuEQ60 Gold Silver AuEQ60
CutCutCutCut----off grade 0.5 g/t Au EQ60off grade 0.5 g/t Au EQ60off grade 0.5 g/t Au EQ60off grade 0.5 g/t Au EQ60
IndicatedIndicatedIndicatedIndicated 7.0 0.35 83 1.73 78 18,596 387
InferredInferredInferredInferred 24.6 0.32 47 1.11 253 37,506 870
TotalTotalTotalTotal 31.6 0.33 55 1.24 332 56,103 1,258
CutCutCutCut----off grade 0.7 g/t Au EQ60off grade 0.7 g/t Au EQ60off grade 0.7 g/t Au EQ60off grade 0.7 g/t Au EQ60
IndicatedIndicatedIndicatedIndicated 5.9 0.38 93 1.93 72 17,751 369
InferredInferredInferredInferred 16.9 0.38 57 1.33 208 31,075 715
TotalTotalTotalTotal 22.9 0.38 66 1.49 280 48,826 1,094
CutCutCutCut----off grade 1.0 g/t Au EQ60off grade 1.0 g/t Au EQ60off grade 1.0 g/t Au EQ60off grade 1.0 g/t Au EQ60
IndicatedIndicatedIndicatedIndicated 4.7 0.43 108 2.22 65 16,219 335
InferredInferredInferredInferred 8.8 0.50 78 1.80 142 22,058 509
TotalTotalTotalTotal 13.5 0.48 88 1.95 206 38,278 844
Gold equiv alence based on price equiv alence ratio of 60: AuEQ60 = Au + Ag/60
ArquerosArqueros
CompetentCompetentCompetentCompetent PersonPersonPersonPerson StatementStatementStatementStatement::::Dr Nicholas Lindsay is a Member of the Australian Institute of Mining and Metallurgy and 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 ‘Australian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Dr Lindsay is the
Managing Director of Laguna Resources NL and consents to the inclusion in this release of the matters based on his information and information presented to him in the form and context in which it appears
The Mineral Resource at Arqueros has been estimated by Mr P Ball (Director of DataGeo Geological Consultants) from information provided by Laguna Resources NL and its agents. Mr Ball is a member of theAustralian Institute of Mining and Metallurgy and has sufficient experience relevant to the style of mineralisation under consideration to qualify as a competent person as defined in the 2004 edition of the
“Australian Code of Reporting of exploration results, mineral resources and ore reserves”. Mr Ball consents to the inclusion of the mineral resource estimate in the form and context in which it appears based on the
information presented to him.