KBL Mining- Resources & Energy Symposium 2012
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KBL Mining- Resources & Energy Symposium 2012 Presentation Transcript

  • 1. RESOURCES & ENERGYSYMPOSIUM PRESENTATION ASX: KBL, KBLGA May 2012 1
  • 2. DISCLAIMERDisclaimerThis presentation has been prepared and issued by KBL Mining Limited (“the Company”). It contains general information about the Company’s activities currentas 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. Anyrecipient of the presentation should observe any such restrictions on the distribution of this presentation and warrants to the Company that the receipt of thepresentation is not unlawful. The presentation does not constitute, and should not be considered as, an offer or invitation to subscribe for or purchase anysecurities 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 arereasonable, 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 bylaw, 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 oromissions from this presentation whether arising out of negligence or otherwise is accepted. An investment in the shares of the Company is to be consideredhighly speculative.ConfidentialityThe contents of this presentation are confidential. This presentation is being provided to you on the basis that you do not reproduce, communicate or disclose itto, or discuss it with, any other person without the prior permission of the Company.Competent Persons StatementThe 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 relevantto 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 definedin the 2004 edition of the Australasian Code for Reporting of Exploration Results, Minerals Resources and Ore Reserves. Mr Mathews consents to the inclusion inthe 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 theAustralasian Institute of Mining and Metallurgy) in relation to the Mineral Hill project, and Mr Daniel Wholley (an employee of CSA Australia Pty Ltd and aMember of the Australian Institute of Geoscientists) in relation to the Sorby Hills, Manbarrum and Constance Range projects. Each of these persons hassufficient experience that is relevant to the styles of mineralisation and types of deposit under consideration and to the activity that is being undertaking toqualify as Competent Persons as defined in the 2004 edition of the Australasian Code for Reporting of Exploration Results, Minerals Resources and OreReserves. 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 theinformation appears. 2
  • 3. DIVERSIFIED ASSET BASESorby Hills (WA) Ag, Pb, Zn Commence production at 500,000tpa in 2013Status FeasibilityKBL Ownership 75%Target Mine Life 10+ yearsCurrent Resources 16.7 million tonnes(containing) 28m oz Ag 750,000t Pb 117,000t Zn Manbarrum (NT) Ag, Pb, Zn Extension to Sorby Hills mine life Constance Range (QLD) Fe Status Pre-Feasibility 1-2mtpa Direct Shipping Ore scoping study Status Scoping Study KBL Ownership earning 51% KBL Ownership 30% Current Resources 32.4 million tonnes Target Mine Life 10+ years (containing) 10m oz Ag Current Resources 296 million tonnes 410,000t Zn (containing) 157.2m t Fe 113,000t Pb *Resources for KBL are broken down by grade, tonnes and category in the Appendix 3
  • 4. SUSTAINED GROWTH STRATEGY 4
  • 5. 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 ESOZ 5
  • 6. OPERATION SUMMARY • 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 6
  • 7. UNDERGROUND DEPOSIT PLAN DECLINE FROM 100M FROM SURFACE EASTERN PIT PARKERS HILL 150M FROM SURFACE SOZ EXISTING ACCESS ESOZMINERAL HILL UNDERGROUND OBLIQUE 7
  • 8. DEPOSIT PIPELINEExploration / Feasibility Construction / Operating Concept Studies Refurbishment assets Parkers Hill ESOZ/SOZParkers Hill repeat? ESOZ SOZ U/G Deeps (CMHDD001) Underground Mt Pearse Open CutMarshall North PearseParkers Hill Cu Iron Duke Open Cut Legend: Au/Ag Cu/Au Cu/Ag/Pb Ag/Pb/Zn
  • 9. UNDERGROUND CASH COSTSFURTHER REDUCTIONS• Au/Ag bullion from Pearse• Cost allocation between open cut / underground operations• Pb/Zn credit 9
  • 10. 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 Pearse development is subject to mill expansion, re-installation of CIL circuit, metallurgical recovery confirmation 10
  • 11. REGIONAL - IRON DUKE50km from Mineral Hill, a 2km long Cu/Au Strike Zone/Anomaly Shallow Open Pit Copper Gold potential. 6km 11
  • 12. SORBY HILLS• 75% KBL, 25% Henan Yuguang Gold & Lead 50km to Kununurra, 170km to Port• Largest undeveloped, near surface Ag-Pb deposit in Australia• 16.7mt of Resources, containing – 28m oz Ag – 750,000t Pb – 117,000t Zn SORBY HILLS• Life of Mine: 10+ years• Awaiting final approvals• Stage 1 (FY14) – 500ktpa – Central 1km of 12km Resource – CAPEX: $80-$100m to first ore 12
  • 13. BONAPARTE BASIN250km mineralised syncline, KBL has a commanding position 13
  • 14. FOCUSED DEVELOPMENTSorby is Mississippi Valley Type (MVT) Ag-Pb-Zn. Shallow 12m-40m cover 14
  • 15. D-E DEPOSIT SECTIONS (8291425mN) 1 km Section location 15
  • 16. EXPERIENCED MANAGEMENTJim Wall Steve Lonergan Trangie Johnston Stuart MathewsExecutive Chairman Executive Director/Co. Sec. Chief Executive Officer Chief Operating OfficerB Eng (UWA) LLB (Hons), LLM. BSc (Hons) (U.Newcastle), M Econ MSc (Geology) Geol (U.Tasmania) Mr Mathews has 23 years of geology, mining, andMr Wall has been Managing Mr Lonergan is a commercial project development experience both in Mr Johnston has over 15 years Australia and internationally including projectDirector of Nicron Resources lawyer based in Sydney withLimited, Executive Director of experience in the mineral development through to production at the largeAztec Mining Company Limited more than 30 years experience exploration and mining industry Palmarejo Silver and Gold Mine in Mexico andand Managing Director of in the Australian and across a wide range of deposit the Cowal Gold Mine in NSW, Australia.Savage Resources Limited, international mining industry. types and tectonic settings fromduring which time its market Stuart Mathews was previously a Vice Presidentcapitalisation on ASX increased Australia, New Zealand, Saudi at Coeur D’Alene Mines Corporation.by 40 times to over $600 He has been General Counsel of Arabia, southern Africa andmillion. Pancontinental Mining Group, a central South America. His prior experience includes management roles partner at Baker & McKenzie at gold and base metals mines in WesternHe is a fellow of the Australian Sydney, General Counsel and Mr Johnston has developed a Australia, New South Wales, Queensland andInstitute of Mining and scale-independent approach to New Zealand.Metallurgy and is the former Company Secretary of SavageExecutive Chairman of CBH Resources Limited and General the analysis of structural geologyResources Limited, retiring inMarch 2009. Counsel and Company facilitating in target generation Ed Newman Secretary of CBH Resources and resource definition for a General Manager, Projects Limited. range of deposits types includingHe was most recently a porphyry, high/low sulphidationnon‐executive director of Mr. Newman has over 33 years experience in epithermal, IOCG, SEDEX, VHMS, the mining and exploration industry. He hasFerraus Limited, and has Directorships of other listedpreviously been a director of orogenic gold (brittle to ductile held positions as chemist and manager of an companies in the last 3 years:other listed companies, such as systems), uranium and rare- analytical services laboratory as well as beingEmperor Mines Limited and Paradigm Metals Limited and element pegmatites. involved in feasibility studies, design,BMA Gold Limited. Finders Resources Limited. construction and commissioning of several mining and processing operations in Australia and Papua New Guinea. 16
  • 17. KBL Mining LtdRESOURCES AND RESERVES 17
  • 18. RESOURCES SUMMARY GradeProject mt Fe % Cu % Pb % Zn % Ag g/t Au g/tMineral Hill 5.2 1.2 1.6 0.9 37 1.33Sorby Hills 16.7 4.5 0.7 52Manbarrum 32.4 0.4 1.3 9Constance Range 296 53.1 Contained metalProject mt Fe (mt) Cu (t) Pb (t) Zn (t) Ag (oz) Au (oz)Mineral Hill 5.2 61,082 83,298 47,599 6,119,832 222,490Sorby Hills 16.7 751,500 116,900 28,012,903Manbarrum 32.4 113,400 411,480 9,615,484Constance Range 296.0 157.2 18
  • 19. MINERAL HILL MINE RESOURCES PART 1Pearse Tonnes Grade Contained metalCategory (thousands) Silver g/t Gold g/t Silver (oz) Gold (oz)Indicated 226 84 6.7 611,430 48,769Inferred 71 67 5.7 153,803 13,085Total 298 80 6.5 765,232 61,853Parkers Hill Sulphide Tonnes Grade Contained metalCategory (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 13,986Inferred 50 1.6 1.1 2.4 48 0.20 0.8 0.6 1.2 77,162 322Total 1,500 1.9 1.2 1.2 36 0 28.4 18.0 18.6 1,755,429 14,307Parkers Hill Oxide Tonnes Grade Contained metalCategory (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 1,157Inferred 200 1.8 3.9 0.3 86 0.05 3.6 7.8 0.6 552,992 302Total 1,100 0.9 3.7 0.4 70 0.05 9.5 41.4 4.0 2,478,949 1,460ESOZ Tonnes Grade Contained metalCategory (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 12,015Inferred 214 2.1 0.1 0.1 8 5.1 4.5 0.2 0.2 55,042 35,089Total 315 1.9 0.1 0.1 8 4.6 6.0 0.3 0.4 77,773 47,104 19
  • 20. MINERAL HILL MINE RESOURCES PART 2SOZ (Au Zone) Cut-off grade 2.5g/t Au Tonnes Grade Contained metalCategory (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 21,198Indicated 74 0.8 0.9 1.0 18 3.9 0.6 0.7 0.7 43,705 9,231Inferred 165 0.9 0.5 0.5 12 4.9 1.4 0.8 0.9 63,172 26,158Total 400 0.8 0.5 0.5 12 4.4 3.2 2.1 2.1 154,988 56,587SOZ (Cu / Au Zone) Cut-off grade 1.5% Cu Eq.* Tonnes Grade Contained metalCategory (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 17,094Indicated 233 1.0 0.4 0.4 10 1.4 2.2 1.0 0.9 72,789 10,355Inferred 150 1.0 0.5 0.3 11 1.5 1.6 0.7 0.5 53,497 7,018Total 862 1.2 0.5 0.4 12 1.3 10.6 4.4 3.4 342,350 34,467SOZ (Pb / Zn Zone) Cut-off grade 4% Pb+Zn Tonnes Grade Contained metalCategory (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 1,103Indicated 389 0.4 2.5 2.7 25 0.2 1.5 9.8 10.3 311,595 2,624Inferred 220 0.3 2.4 3.1 21 0.3 0.7 5.2 6.8 148,472 1,767Total 699 0.4 2.6 2.8 24 0.2 2.9 17.8 19.3 542,982 5,494 20
  • 21. MINERAL HILL MINE RESERVES PARKERS HILL UNDERGROUNDCopper Reserve: Probable Reserves (@ 1% Copper Cut-off Grade) Contained Contained Contained Contained ContainedCategory Tonnes Copper % Zinc % Lead % Silver g/t Gold g/t Copper (T) Zinc (T) Lead (T) Silver (oz) Gold (oz)Probable 493,600 2.17 1.07 0.85 29.4 0.43 10,711 5,282 4,196 466,566 6,824Lead-Zinc-Low Copper Combined Zone: Probable Reserves (@ 3.5% Combined Lead-Zinc Cut-off Grade) Contained Contained Contained Contained ContainedCategory Tonnes Copper % Zinc % Lead % Silver g/t Gold g/t Copper (T) Zinc (T) Lead (T) Silver (oz) 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 PEARSE PROJECTOpen Cut Reserves 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 2,546Sub Total 46,702 52 5.9 76,519 8,758Proven Primary 152,489 91 7.3 444,709 35,674 Oxide 36,049 16 6.5 18,519 7,523Sub Total 188,538 77 7.2 463,228 43,198TOTAL 235,240 72 6.9 539,746 51,956 21
  • 22. SORBY HILLS RESOURCES Tonnes Grade2.5% Lead cut-off Category (millions) Silver g/t Lead % Zinc % Indicated 4.7 63 4.7 0.4 Inferred 12 48 4.5 0.9 Total 16.7 52 4.5 0.7 Indicated and Inferred 22
  • 23. MANBARRUM RESOURCESSandy Creek Primary ZoneDjibitgan Oxide Zone 23 23
  • 24. CONSTANCE RANGE IRON ORE DEPOSITConstance Range Iron Ore Deposit Tonnes Grade Phosphorus Aluminium Category (millions) Iron % Silica % % Oxide % LOI %Within NationalPark Inferred 59.59 52.7 10.58 0.02 1.64 11.28Within Buffer Zone Inferred 131.95 53.1 10.51 0.02 2.09 11.11Outside Buffer Zone Inferred 104.41 53.4 10.09 0.02 1.02 11.23Total Inferred 295.96 53.1 10.38 0.02 1.63 11.19Total (excludingNational Park) Inferred 236.37 53.2 10.33 0.02 1.62 11.16 24
  • 25. Contact Us (02) 9927 2006www.kblmining.com.au 25