Kilogold presentation June-2012


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  • Kilogold presentation June-2012

    1. 1. June 2012Investor PresentationAlex van Hoeken (President and CEO) Progress DevelopExplore
    2. 2. Cautionary NotesThis presentation contains forward looking statements concerning future operations of Kilo Goldmines Ltd. Allforward looking statements concerning the Companys future plans and operations, including managementsassessment of the Companys project expectations or beliefs may be subject to certain assumptions, risks anduncertainties beyond the Companys control. Investors are cautioned that any such statements are not guarantees offuture performance and that actual performance and exploration and financial results may differ materially from anyestimates or projections. The particulars contained herein were obtained from sources which we believe reliable butare not guaranteed by us and may be incomplete. The opinions expressed are based upon our analysis andinterpretation and are not to be construed as a solicitation or offer to buy or sell the securities mentioned herein.This presentation is being made available on a confidential basis and by viewing this presentation, the viewer agreesthat all the information contained herein will be used by the reader solely to determine his/her interest in KiloGoldmines Ltd., and that such information shall be retained exclusively for the benefit of Kilo Goldmines Ltd. Theviewer agrees that he/she will not, without the express written consent of Kilo Goldmines Ltd., make useof, disseminate or in any way disclose any of the confidential information to any person, firm or business, except tothe extent necessary for negotiations, discussions, and consultations with personnel or authorized representatives ofthe reader for the purpose of determining such interests in Kilo Goldmines Ltd.No securities commission or other similar regulatory authority has reviewed or passed on the merits of thispresentation and any representation of the contrary is an offence. This presentation is not, and under nocircumstances is to be interpreted as, a prospectus, public information, solicitation or advertisement for the sale ortrade of securities.Qualified PersonThe “qualified person” (as such term is defined in National Instrument 43-101) for the purposes of technicalinformation in this presentation is Stanley Robinson, who is the consulting geologist of Kilo.
    3. 3. Highlights EXPLORING FOR GOLD AND IRON IN THE DEMOCRATIC REPUBLIC OF CONGO “A NEW GOLD FRONTIER”• Somituri project: - Adumbi Deposit 1.87 Moz Au @ 1.63 g/t (NI43-101 inferred resources) Kisangani Goma - open pitable, favourable metallurgy - multi pit potential within 5Km radius Kinshasa - 8 Mining Licences – 606 km2 - colonial era Au production - extensive artisanal workings - drilling, soil sampling, metallurgical testing ongoing Lubumbashi• ca. 4 000 km2 Exploration Licenses: - JV with Rio Tinto for iron at drilling stage• DRC experienced team with proven exploration successes
    4. 4. Board & Management Board David Netherway – Chairman (Non Exec) (AUS) Mining Engineer, 35 years experience Chairman of Aureus Mining, Afferro Mining, non-executive director of Gryphon Minerals, Crusader Resources and Altus Resources Alex van Hoeken – President & CEO (NL) Mining Engineer, 20 years (12 years in DRC) Fellow, UK IMMM Chartered Engineer (UK) Jim Williams – (Non Exec) (UK) Loudon Owen (Non Exec) (CAN) Jim Mustard – (Non Exec) (CAN) Geologist, Lawyer, Geologist, Founder/CEO of Arian Silver. Founder , McLean Watson Capital VP Investment Banking, Mining at PI Financial ManagementStanley Robinson – Exploration Manager (CAN) Philip Gibbs – CFO (RSA) Stuart Thomson – VP Operations (NZ)Geologist Chartered Management Accountant Chemical Engineer35 years experience incl. 17 in Africa 35 years experience 20 years experience, including goldCareer experience includes Ashanti Service history with listed companies Career experience includes AngloGoldfields Company Ltd. American, Fluor, and AMEC
    5. 5. Share Capital Institutional ShareholdersSHARE CAPITALCommon Shares 217.4 MOptions 21.4 MWarrants 49.1 MFully Diluted 87.9 MMarket Cap. C$40 M
    6. 6. Why explore in the DRC?new mining regulation (2002) - catalyst forsignificant investment by junior and majorminers (Freeport McMoran, Vale, AngloAmerican…)world class gold mines discovered sincevast untapped resource potential - limited2004 by Banro (in production), AngloGoldexploration since 1960 independenceAshanti, Moto Goldmines/Randgoldfrom Belgiuminfrastructure development and economicreconstruction ongoing
    7. 7. Regional Geological Setting - Africa Anglo Gold Ashanti Geita 18 MOz African Barrick North Mara 8 MOzDRC Greenstone Belts Bulyanhulu 15 MOzapparent extension of the Tulawaka 1 MOzTanzania Greenstone Belts Buswagi 5 MOz Resolute Golden Pride 6 MOz
    8. 8. Regional Geological Setting - AfricaDRC Discoveries in thelast 10 years Adumbi Deposit Anglo Gold Ashanti Mongbwalu ca. 3 MOz RandGold/AGA Kibali ca. 30 MOz Mwana Africa Zani Kodo ca. 2 MOz Kilo Gold Adumbi ca. 2 MOz
    9. 9. Location and access • road access from - Kisangani (300 km) - Kampala (800 km) • project support office in Beni • scheduled flights from - Entebbe - Kisangani Project Area - Goma Somituri & Rio Tinto JVair strip at Nia Nia Nia Nia(50 km from Adumbi office) 100 Km
    10. 10. Flagship ProjectsRio Tinto Iron JV Adumbi DepositSomituri Project
    11. 11. Somituri Project• 8 Mining Licences – valid until 2039 • >300 k oz historic commercial Au production• 606 km² total in the Ngayu Archean • Au host: shear zones within Banded Greenstone Belt Iron Formation and meta-tuffaceous/ sedimentary rocks Adumbi Deposit
    12. 12. Somituri Project – Ownership & FundingOwnership Share HoldingTitle held by KGL Somituri Sprl• 71.25% - Kilo Goldmines• 5% - DRC State (free carry)• 23.75% - Property Vendors (free carry through BFS)Upon BFS completion:up to 95% ownership by Kilo possiblesubject to 2.5% State NSR & 1%Vendor NSRRandgold buy back:10% of the project for $5Mif measured resources >2 M Oz
    13. 13. Adumbi Gold Deposit Highlights• Adumbi Gold Deposit + 1.87 million ounces gold @ 1.63 g/t (NI43-101 compliant inferred resource estimate)• part of gold bearing structure in excess of 5km• recently upgraded resources - higher grade structurally more robust than 2011 model• significant historical mining activity
    14. 14. Adumbi Gold Deposit Highlights• Resource model delineated with ca 10 000 m diamond drilling• • Adumbi length : open along million ounces gold 1.2 km strike Gold Deposit + 1.87 strike both ends• @ 1.63 g/t as NI43-101 compliant resource confirmed down to 350 m vertical; open at depth• estimate up to 130 vertical metres oxide ore • part of gold bearing structure in excess of 5km• gold occurs in three parallel zones hosted in BIF • recently Upgraded Resources - more robust structural model with a higher grade • significant historical mining activity
    15. 15. Adumbi Interpreted Vertical Cross Section March 2012 Model major changes from 2011 model: • from one to three distinct mineralised zones • resource reduced from 46 to 35 Mt • oxide increased from 13 to 30% • grade increase: • 0.5 g/t cutoff: 1.87 Moz @ 1.63 g/t • 1.0 g/t cutoff: 1.63 Moz @ 2.04 g/t
    16. 16. Adumbi Deposit Intersections Other drill Intersections include 34.80m @ 3.04 g/t Au 46.80m @ 2.69 g/t Au 21.20m @ 8.03 g/t Au 31.30m @ 3.51 g/t Au 64.45m @ 2.89 g/t Au 21.00m @ 5.02 g/t Au 34.30m @ 3.86 g/t Au 30.10m @ 5.79 g/t Au
    17. 17. Adumbi Weathering Profile Oxide Zone Adumbi deposit with weathering profile Up to 94 % gold recovery in oxide (gravity concentration and cyanide leach)Main gold deposit body hosted in BIF Contains 30% of total resource 350 m 1200 m Oxidation planeSulphide Zoneup to 96 % gold recovery in sulphide(gravity concentration and cyanide leach)
    18. 18. Adumbi Metallurgical Results Gravity Concentration followed by Cyanide Leach Cyanide Leach Cyanide Leach of Gravity Concentrate Gravity Concentrate Tails Gold and Silver Recovery Total Recovered Gold & Silver Recovery Gold (%)Composite Au Ag Au Ag Au AgSample (%) (%) (%) (%) (%) (%)Oxide 1 46.1 33.4 85.6 96.9 92.2 80.6 75.9Oxide 2 33.7 18.1 91.4 95.2 94.3 86.8 63.8Oxide 3 & 4 32.8 14.0 88.4 98.3 92.2 90.0 81.3Sulphide 1 5.6 3.5 39.5 48.8 42.9 38.2 59.6Sulphide 2 35.0 25.8 88.5 99.0 92.5 93.8 99.6Sulphide 3 36.6 11.5 94.1 65.5 96.2 87.3 99.6
    19. 19. Canal Prospect• extensive artisanal workings• strikes over 1.0 km• splayed off Adumbi ?• mineralization occurs in BIF• drill values include: 11.45m @ 3.33 g/t Au 12.6 m @7 .71 g/t Au• untested 400 m gap between Canal and Adumbi drill results
    20. 20. Vatican, Monde Arabe, Kitenge NW Prospects• extensive artisanal workings• Au veins hosted in sheared metatuffaceous rocks• strike lengths vary from 0.5 km to > 2 km• numerous untested geochemical anomalies on all prospects
    21. 21. Kitenge & Manzako Prospect• mined from surface and underground in the 1940’s - produced ~ 80 000 oz Au• strike northwest – southeast for over 2 km each• Au hosted in quartz veins within sheared silicified tuffaceous metasedimentary rocks• soil geochem survey carried out at 80m x 20mKitenge Drill assay results include6.00m @ 2.46 g/t Au 5.30m @ 2.15 g/t Au14.05m @ 1.35 g/t Au 3.30m @ 6.71 g/t AuManzako drill assay results include 2Km4.70m @ 9.37 g/t Au 6.50m @ 7.76 g/t Au11.20m @ 4.96 g/t Au 3.90m @ 4.63 g/t Au
    22. 22. Adumbi Permit OverviewMulti pit, single plant potentialwithin small radius 5 km Radius
    23. 23. Adumbi Permit Geophysics (Flown April 2012) . New Targets from airborne survey: • multiple anomalies (isolated & linear) • 2 km of BIF directly W of Adumbi • 6 km linear magnetic feature parallel to Kitenge and Canal5 km Radius
    24. 24. Upside comparisonSomituri – a project with significant upsidesimilarities with Geita, Tanzania (20 Moz Au) • gold hosted in BIF • intrusives • same mineralization strike – 310° • significant artisanal mining • multiple pits / prospects
    25. 25. ERW Project• artisanal activity on outcropping quartz veins• veins extend over a strike length of several hundred meters• will be investigated in near future
    26. 26. Rio Tinto JVPROPERTY OWNERSHIP & TERMS• Exploration Licences held 100% by KWR Iron Sprl• Kilo owns 75% of KWR Iron Sprl• Rio Tinto to earn up to 78.75%pending : - staged exploration expenditure before 2020, plus - staged payments to KWR partners• Rio Tinto JV only for iron• gold rights retained by Kilo Goldmines• December 2011 : RT purchased 15%in KWR from minority partner ; - adjusted KWR shareholding is  75% Kilo Goldmines,  15% Rio Tinto,  10% Suez Holdings
    27. 27. Rio Tinto JV OBJECTIVES • delineation of large bulk tonnage of direct shipping high grade iron ore • high quality low phosphorous, low silica haematite ore grading + 64% iron • exploration currently focused on a 10 km² target on Asongo Mountain • drilling in progress on Asongo MountainDrill intersectionsinclude:
    28. 28. Hajigak Iron Project - Afghanistan Block A - prefered bidder Non compliant 450 M tonnes @ 62% Fe ---------------------------------------------------Blocks B,C,D awarded toIndian steel consortium(non compliant 1.4 B Kabultonnes resource) KGL proposal incl. 25 km rail spur to link with proposed (Chinese financed) rail linesProject held in Kilo Ironwhere Kilo Gold holds a 20% interest
    29. 29. Infrastructure Currently 2 drill rigs operating On the Somituri project Established exploration camp and facilitiesOnsite sample preparation lab
    30. 30. Exploration Plans – Somituri Permits (other than Adumbi)Focus on Somituri (Regional):• generate new drill targets on all 8 of the Exploitation Licences by soil sampling, mapping and trenching
    31. 31. Exploration Plans - Adumbi Permit Exploration objective: • multi pit global resource to feed central pit I.87 Moz @ 1.63 g/t Au within 5 km radius Action plan: • expand on the Adumbi Gold Deposit resources by drilling along strike, to depth and infilling • evaluate the exploration prospects (Kitenge, Manzako, etc) through trenching, soil sampling, and drilling and define a gold resource3.75 m@ 3.05 g/t • carry out petrographic and additional2.70 m@ 2.66 g/t 4.70 m@ 9.37 g/t Au 3.90 m@ 4.63 g/t Au metallurgical testing • commence environmental base-line study12.00 m@ 0.99 g/t12.60 m@ 7.71 g/t11.45 m@ 3.33 g/t 6.50 m@ 7.76 g/t Au 6.20 m@ 3.70 g/t 1.20 m@ 5.49 g/t Au 2.40 m@ 6.63 g/t Au 1.60 m@ 5.83 g/t Au 6.00 m@ 2.40 g/t 3.30 m@ 6.71 g/t 11.20 m@ 4.96 g/t Au Soil Sampling Soil Sampling 5.30 m@ 2.15 g/t Au 14.05 m@ 1.35 g/t Au Incl 6.85 m @ 2.25 g/t Au 5.30 m@ 2.15 g/t Au
    32. 32. Contact Us Web site: Email: Phone: +1-416-360-3415Corporate Office: Exploration Office:141 Adelaide Street West Boulevard NyamwisiSuite 1200 Nr 27 BoikeneToronto Beni, Nord-KivuOntario, Canada République Démocratique duM5H 3L5 Congo
    33. 33. June 2012Investor PresentationAlex van Hoeken (President and CEO) Progress DevelopExplore