KBL Mining ASX:KBL - Investor presentation delivered at the 4th annual Resources Investment Symposium held in Broken Hill NSW Australia, 26-28 May 2014.
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3. • Successful explorer and profitable producer of base and precious metals
- substantial exposure to copper, gold, silver, lead and zinc
• Project portfolio diversified across geographical locations, commodity
and stage of development
• Commercially focused and highly experienced Board and management
team
Corporate Snapshot
Project Summary
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4. • Largest undeveloped near surface silver-
lead-zinc resource in Australia, located
50km north Kununurra, WA
• Global Resource of 16.7mt at 4.5% Pb,
0.7% Zn and 52g/t Ag containing:
– 750,000t Pb, 117,000t Zn & 28moz Ag
• KBL has 75% ownership in Sorby Hills
– Remaining 25% held by JV partner and
the largest silver and lead smelter
group in China, Henan Yuguang
• Pre-Feasibility Study successfully
completed
• Stage 1 Environmental Approvals
received April 2014
• Bankable Feasibility Study and Project
Financing to commence
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Bonaparte Basin emerging mining district
Sorby Hills
Emerging Mining District
5. • Stage 1 development - 400,000tpa open pit
mine producing 710,000oz Ag and 20,000t
Pb pa over a 10 year mine life
• Fast tracked to production with
construction and commissioning targeted
to commence in 2015
• Production anticipated 2016
• Only 27% of Sorby Hills global resources
utilised in Stage 1
• Large opportunity to develop remaining
resource base for multi-decade operation
• KBL have substantial footprint in new
emerging mining district
• Close access to Asian markets utilising port
of Wyndham
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Sorby Hills
Project Development
6. • JORC compliant resources extend over a strike
length of 10km.
• Stage 1 project development (C & DE deposits)
only accounts for 1.5km of this trend.
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Sorby Hills
Project Expansion
8. Sorby Hills Project Parameters
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Mineral Resource
Global 16.7Mt @ 5.2% Pb+Zn & 52g/t Ag (2.5% Pb cutoff)
DE Deposit 2.7Mt @ 6.3% Pb+Zn & 61g/t Ag (2.5% Pb cutoff)
C Deposit 1.5Mt @ 3.7% Pb+Zn & 21 g/t Ag (2.5% Pb cutoff)
Ore Reserves
DE Deposit 2.4Mt @ 5% Pb & 54g/t Ag (2% Pb cutoff)
C Deposit Subject to infill drilling/resource upgrade planned for 2014
Mining
Open Pit 400,000 tpa ore. Pits no deeper than 60m
Strip ratios 3.7:1 life of mine
Mine Life 10 years
Pre-strip 12m of free dig black soil plains (suitable for civil works)
Processing
Method Conventional crush, grind and flotation
Recoveries Lead: 91%, Silver: 87%
Production 37,000 DMT pa Pb-Ag concentrate
Concentrate Grade 55% Pb & 600g/t Ag
Metal 20,000t Pb & 710,000 ounces Ag pa
Capital Costs
Start Up Capital $70m
Cash Costs Pb: $0.21/lb after silver credits
Assumptions Pb: USD 2090, Ag: USD 30/oz, 1AUD=0.90USD
Transport
Mode Concentrate transported in sealed shipping containers
Route 160km sealed road from mine site to the port
Port Ship loading facility at port of Wyndham
Stage 1 Project Parameters
9. Mineral Hill
Project Overview
• 100% owned copper-gold-silver-lead-zinc
project located in the Cobar Basin, NSW
• World class mineral province, extensive
mining history, current operations and
new discoveries
• Current steady state production of
300,000 tpa of ore producing copper
concentrate with gold and silver credits
• Produced 9,691t Cu, 7,045oz Au and
236,927oz Ag, 458t Pb since commenced
operations in September 2011
• $28m plant and mine refurbishment
• Strong pipeline of exploration and
development deposits
• Large JORC compliant resource base
• Strategic asset in mining region
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10. Mineral Hill
Operations & Recent Advances
• Company re-structure & cost reduction program resulting
in substantial productivity improvement & sustained
profitability
• Record Cu-Au production in the March, June & Sept
quarters 2013 - with improved grades and recoveries
• Operations shifted from Red Terror Deposit to SOZ Lodes
during March Qtr 2014 utilising existing underground
infrastructure to access potentially +3 years underground
mine supply
• Mining via long-hole open stoping, conventional
crush/grind/flotation with concentrate sent by road and
rail to Port Botany before shipment
• 85% of employees are residential
• Recent metallurgical breakthrough with successful Pb-Ag-
Au processing trials resulting in a marketable lead
concentrate in addition to copper/gold concentrate –
open up resource base
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11. 11
Mineral Hill
Exploration Targets
• Shallow resources, open
along strike/depth
• Less than 5% of drill
holes deeper than
300m below surface
• Drill hole database:
2,700 holes for
230,000m
Historical operations 1989 to 2005 (Triako
Resources Ltd): 2.1mt @ 6.4g/t Au &
1.14% Cu for 370,000 oz Au & 20,000t Cu
12. 12
Mineral Hill
SOZ Resource & Reserve Upgrade Drilling Program
Recently completed 6,000m underground
diamond drilling program designed to infill
and expand resources in SOZ in preparation
for Resource/Reserve upgrade (June 2014)
B Lode
C Lode
D Lode
G Lode
H Lode
All lodes are open along strike and down dip
2014 Production
15. • Discovered by KBL in 2009. Shallow, open
pittable, high grade gold-silver deposit
located ~800m from the Mineral Hill
processing plant
• Pearse has all requisite approvals in place
for development
• Pearse North discovered in 2010
• Both deposits start at surface
• Underexplored structural corridor
• Style of deposits form in clusters with
multiple targets based soil geochemistry,
structural interpretations and isolated
drill hole intervals
• Reserve of 235,240t @ 6.92 g/t Au and
71.7 g/t Ag
• Requires re-installation of CIL circuit at
mill
Mineral Hill
Pearse (Au-Ag-Sb)
15Cross Section (looking north)
Long Section (looking east)
16. • Successful explorer and profitable producer of base and precious metals
- substantial exposure to copper, gold, silver, lead and zinc
• Project portfolio diversified across geographical locations, commodity
and stage of development
• Commercially focused and highly experienced Board and management
team
Corporate Snapshot
Project Summary
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