Gold Investment Symposium 2012 - Company presentation - Mungana Mines Limited

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Pat Scott, Managing Director

Pat Scott, Managing Director

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  • 1. CLICK TO EDIT MASTER TITLE STYLE• Click to edit Master text styles – Second level • Third level – Fourth level » Fifth level Gold Symposium - October 2012 ASX: MUX | SHARES ON ISSUE 160.7m | MARKET CAPITALISATION $59.5M | SHARE PRICE A$0.37 PRESENTED BY: Pat Scott AS AT 15 OCTOBER 2012 1
  • 2. DISCLAIMERCLICK TO EDIT MASTER TITLE STYLECompetent Person’s StatementThe information in the report to which this statement is attached that relates to Exploration Results and Mineral Resources is based on information compiled by Dr Adrian McArthur, the General Manager Exploration forMungana Goldmines Ltd, and who is a member of the Australian Institute of Mining and Metallurgy and is a full time employee of the Company. Dr McArthur has sufficient experience relevant to the style ofmineralisation 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 ExplorationResults, Mineral Resources and Ore Reserves’. Dr McArthur consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.• Click to edit Master text stylesJORC – Exploration Targets – Second levelIt is common practice for a company to comment on and discuss its exploration in terms of target size and type. The information in this presentation relating to exploration targets should not be misunderstood ormisconstrued as an estimate of Mineral Resources or Ore Reserves. Hence the terms Resource(s) or Reserve(s) have not been used in this context. The potential quantity and grade is conceptual in nature, since therehas been insufficient work completed to define them beyond exploration targets and that it is uncertain if further exploration will result in the determination of a Mineral Resource. • Third levelForward-Looking Statements – Fourth levelThis presentation has been prepared by Mungana Goldmines Ltd. This document contains background information about Mungana Goldmines Ltd current at the date of this presentation. The presentation is in summaryform and does not purport to be all inclusive or complete. Recipients should conduct their own investigations and perform their own analysis in order to satisfy themselves as to the accuracy and completeness of theinformation, statements and opinions contained in this presentation.This presentation is for information purposes only.» Fifth levelthe information contained in it constitutes an offer, invitation, solicitation or recommendation in relation to the purchase or sale of Mungana Neither this presentation norGoldmines Ltd shares in any jurisdiction.This presentation may not be distributed in any jurisdiction except in accordance with the legal requirements applicable in such jurisdiction. Recipients should inform themselves of the restrictions that apply in their ownjurisdiction. A failure to do so may result in a violation of securities laws in such jurisdiction.This presentation does not constitute investment advice and has been prepared without taking into account the recipients investment objectives, financial circumstances or particular needs and the opinions andrecommendations in this presentation are not intended to represent recommendations of particular investments to particular persons. Recipients should seek professional advice when deciding if an investment isappropriate. All securities transactions involve risks, which include (among others) the risk of adverse or unanticipated market, financial or political developments.To the fullest extent permitted by law, Mungana Goldmines Ltd, its officers, employees, agents and advisers do not make any representation or warranty, express or implied, as to the currency, accuracy, reliability orcompleteness of any information, statements, opinions, estimates, forecasts or other representations contained in this presentation. No responsibility for any errors or omissions from this presentation arising out ofnegligence or otherwise is accepted.This presentation may include forward looking statements. Forward looking statements are only predictions and are subject to risks, uncertainties and assumptions which are outside the control of Mungana GoldminesLtd. Actual values, results or events may be materially different to those expressed or implied in this presentation. Given these uncertainties, recipients are cautioned not to place reliance on forward looking statements.Any forward looking statements in this presentation speak only at the date of issue of this presentation. Subject to any continuing obligations under applicable law and ASX Listing Rules, Mungana Goldmines Ltd doesnot undertake any obligation to update or revise any information or any of the forward looking statements in this presentation or any changes in events, conditions or circumstances on which any such forward lookingstatement is based.NOT FOR DISTRIBUTION 2 2
  • 3. COMPANY HIGHLIGHTSCLICK TO EDIT MASTER TITLE STYLE• Attributable JORC compliant Resources of 3.2 million ounces of gold, 273,000 tonnes of copper• and 35 million ounces text styles Click to edit Master of silver• – Second level Medium term production target of approximately 100,000 ounces of gold from Tunkillia / Tarcoola Gold Project • Third level• Target Cash costs of ~A$900/oz. – Fourth level• Major Shareholders » Fifth level – Mungana Pty Ltd (Kagara Ltd) 97.5m – GHG (China) 25.1m – Prosperity Steel (Singapore) 13.0m – Total Shares 160.7m• Strong cash balance A$11.5M as at end of September• Exciting exploration pipelineMUNGANA GOLDMINES : A significant new gold company 3 3
  • 4. PROJECT PIPELINECLICK TO EDIT MASTER TITLE STYLEDEVELOPMENT1. The Tunkillia Gold Project text styles• Click to edit Master (South Australia) – Second level 1.6Moz Ag – Resources – 800kAu, – Production Potential – 80,000 ozpa • Third level – Tarcoola Addition Potential - 20,000 ozpa – Fourth level » Fifth level2. The Mungana Gold Project (Queensland) – Resources – 2.7MozAu, 273ktCu, 34Moz Ag – Production Potential – 100,000 ozpaEXPLORATION• South Australia – A$4M this year• North Queensland – on Hold• New South Wales – seeking JV partnerASSETS 4 4
  • 5. TUNKILLIAEDIT MASTER TITLE STYLECLICK TO GOLD PROJECT(Earning 70%)• Click to edit Master text styles• Controlling interest in JV with Helix – Second level Resources • Third level• New gold province discovered in 1996 – Fourth level• Resource of 803koz Au, 1.6Moz Ag » Fifth level• Earning to 70% this year with A$6M budget• Strong probability of exploration extensionsTUNKILLIA GOLD PROJECT 5 5
  • 6. SCOPING STUDY RESULTSCLICK TO EDIT MASTER TITLE STYLE• Production of • Simple staged open pit mine• 492,000 ounces Click to edit Master text styles over 6 years • Conventional process plant – Second level • Pre-Tax Operating Surplus of A$163m and• Low Capital of A$114M Third level • • IRR of 28.3% @A$1600/oz.• Cash costs of Fourth level – ~A$983/oz. » Fifth level• Throughput rates of 2mt per annumTUNKILLIA GOLD PROJECT 6 6
  • 7. TUNKILLIA PROPOSED SITE LAYOUTCLICK TO EDIT MASTER TITLE STYLE• Click to edit Master text styles – Second level • Third level – Fourth level » Fifth level 7 7
  • 8. TARCOOLA GOLD PROJECT STYLE CLICK TO EDIT MASTER TITLE (MUX 100%) • Click to edit Master text styles – Second level• Purchased July 2012 • Third level• 60km north west of Tunkillia• Historic productionFourth level – of 77,000 Ounces at 37.5g/t Au» Fifth level• Potential to contribute additional 20,000 ounces per annum of production through proposed Tunkillia plant 8 8
  • 9. TARCOOLA GOLD PROJECT CLICK TO EDIT MASTER TITLE STYLE• Perseverance Deposit • Click to edit Master text styles• Initial high grade open pit potential. Historic level – Second intersections Third level • include: • 34.3m @ 26.2 g/t Au level – Fourth • 21m @ 62.2 g/t AuFifth level »• Initial Drilling currently underway• JORC Resource in December quarter 2012 9 9
  • 10. MUNGANA PROJECT (100% MUX)CLICK TO EDIT MASTER TITLE STYLE• Red Dome Open Pit• Click to edit Master text styles produced 1Moz Au, 4.3Moz – Second level Ag, 35kt Cu from 1985 -1997 • Third level• Resource of – Fourth level 2.7Moz Au, 273kt Cu, 34Moz Ag Fifth level »• Red Dome and Mungana - 3km apart• Both on Granted Mining LeasesMUNGANA GOLD PROJECT 10 10
  • 11. BFS STAGE 1 HIGHLIGHTS CLICK TO EDIT MASTER TITLE STYLE • Production of approximately • Click to edit Master 10,000t of 100,000oz of gold, text styles –copper and level of silver per Second 1.5Moz annum Third level • achievable – Fourth level • Mine life of at least 10 years » Fifth level • Cash costs of A$883/oz.* • Throughput rates of 4mt per annum • Total Production, ~1moz Au, 100kt Cu, 15moz Ag* Cash Costs are Net of by-product (copper and silver) creditsMetal Price assumptions; Copper US$8500/t and Silver Price of US$35/oz.Exchange Rate assumptions; A$1.00/$US. MUNGANA GOLD PROJECT 11 11
  • 12. EXPLORATION MASTER TITLE CLICK TO EDIT – TUNKILLIA STYLE• Potential for • additional edit Master text styles Click to resources within Second level – trucking distance• ofThird level proposed plant – Fourth level• Well defined structural and » Fifth level geochemical targets ready for drilling• A$4M budgeted this FY TUNKILLIA GOLD PROJECT 12 12
  • 13. EXPLORATION - TARCOOLACLICK TO EDIT MASTER TITLE STYLE• Click to edit Master text styles – Second level • Third level – Fourth level » Fifth level 13 13
  • 14. EXPLORATIONMASTER TITLE STYLECLICK TO EDIT NEW SOUTH WALES• Key position targeting under-• Click to edit Master text styles explored extensions to Australia’s – Second level major porphyry cooper-gold province. Third level• Targets•located at similar structural – Fourth level and stratigraphic position to known » Fifth level mineral centres, under cover.• Seeking JV PartnerMUNGANA GOLD PROJECT 14 14
  • 15. STRONG EDIT MASTER TITLE STYLECLICK TOIN-HOUSE EXPERTISEProject Development Exploration• Scott – Managing Director stylesPat Click to edit Master text Adrian McArthur – GM Exploration• Built Second levelmultiple gold – and operated • Senior roles at major companies including; WMC, St Barbara, Lion Ore mines • Third level – Bounty Gold Mine level – Fourth – Tanami Gold Mine » Fifth level – Beaconsfield Gold MineTom Cooney – GM Project Development• Senior roles at major companies including; KCGM, MIM, ThiessIn-house expertise in areas ofEngineering, Geology and MetallurgyDELIVERY 15 15
  • 16. CLICK TO EDIT MASTER TITLE STYLE• Click to edit Master text styles – Second level • Third level – Fourth levelTHANK YOU » Fifth levelAPPENDICES TO FOLLOW 16
  • 17. RESOURCE INVENTORYCLICK TO EDIT MASTER TITLE STYLETable 1 – Mungana Goldmines Ltd Resource (100% Mungana Gold Project And 55% Tunkillia Gold Project)•CategoryClick to edit Tonnes M Master text g/t Gold styles Silver g/t Copper % Gold kozs Silver kozs Copper kT Measured 42.3 0.82 11.3 0.29 1,115 15,410 121 Indicated – Second53.4 level 0.65 7.0 0.17 1,120 11,133 91 Inferred 43.9 0.65 5.9 0.14 917 8,332 62 Total • Third level 139.6 0.70 8.0 0.20 3,151 34,875 273 – Fourth level Table 2 – Mungana Gold Project Resource (100%) Category M Tonnes » Fifth g/t Gold level Silver g/t Copper % Gold Kozs Silver kozs Copper kT Measured 41.0 0.79 11.61 0.30 1,041 15,300 121Indicated 49.8 0.58 7.01 0.18 923 10,691 91Inferred 40.2 0.58 5.95 0.15 746 7,972 62Total 131.0 0.64 8.04 0.21 2,709 33,963 273Table 3 - Tunkillia Gold Project Resource (100%)Category M Tonnes Gold g/t Silver g/t Gold Kozs Silver kozsMeasured 2.3 1.8 7.4 134 200Indicated 6.5 1.7 5.5 359 803Inferred 6.7 1.4 5.2 310 655TOTAL 15.6 1.6 5.5 803 1,658APPENDICES 17 17
  • 18. FACT TO EDITCLICK SHEET MASTER TITLE STYLEBoard Members Senior ManagementJoe Treacy Chairman Pat Scott Managing Director and CEO• Click to edit Master text stylesPat ScottMark McConnell Managing Director and CEO Executive Director Tom Cooney Adrian McArthur GM Projects GM ExplorationRoss Hutton Non-Executive Director Ben-Louis Ludik CFO – Second levelJohn Fitzgerald Non-Executive Director Jeremy Robinson GM Business DevelopmentBruce Rathie Non-Executive Director AuditorsJustin Jian Yi Wu • Third level Non-Executive Director Ernst & Young LawyersJeremy Robinson – Fourth level SecretaryRegistered & Principal Office Company Hopgood Ganim Share RegistryMungana Goldmines LtdLevel 12, 500 Queen St » Fifth level Link Market ServicesBrisbane, QLD, 4000AustraliaTelephone: +61 7 3835 0800Facsimile: +61 7 3832 5045Email: info@mungana.com.auWebsite www.munganagoldmines.com.auStock Exchange ListingsAustralian Stock Exchange MUXAPPENDICES 18 18