Corporate Presentation December 2011


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Exploring For Gold in a Gold-Rich System

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Corporate Presentation December 2011

  1. 1. Exploring For Gold in a Gold-Rich System Corporate PresentationLDM:TSXV December 2011 1
  2. 2. Forward Looking StatementsForward-looking statements relate to future events or the anticipated performance of the Company and reflectmanagement’s expectations or beliefs regarding such future events and anticipated performance. In certaincases, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected","budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "believes", or variations of such wordsand phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will betaken", "occur" or "be achieved", or the negative of these words or comparable terminology. By their verynature forward-looking statements involve known and unknown risks, uncertainties and other factors which maycause the actual performance of the Company to be materially different from any anticipated performanceexpressed or implied by the forward-looking statements.Important factors that could cause actual results to differ from these forward-looking statements include risksrelated to failure to define mineral resources, to convert estimated mineral resources to reserves, the grade andrecovery of ore which is mined varying from estimates, future prices of gold and other commodities, capital andoperating costs varying significantly from estimates, political risks arising from operating in Brazil, uncertaintiesrelating to the availability and costs and availability of financing needed in the future, changes in equitymarkets, inflation, changes in exchange rates, fluctuations in commodity prices, delays in the development ofprojects, conclusions of economic evaluations, changes in project parameters as plans continue to be refined,uninsured risks and other risks involved in the mineral exploration and development industry.Although the Company has attempted to identify important factors that could cause actual performance todiffer materially from that described in forward-looking statements, there may be other factors that cause itsperformance not to be as anticipated. There can be no assurance that forward-looking statements will proveto be accurate, as actual results and future events could differ materially from those anticipated in suchstatements. Accordingly, readers should not place undue reliance on forward-looking statements. Theseforward-looking statements are made as of the date of this presentation and the Company does not intend,and does not assume any obligation, to update these forward-looking statements.Qualified Person - Murray Paterson, P.Geo, Vice President Exploration and Development for Lago DouradoMinerals Ltd, is the Qualified Person, within the meaning of NI 43-101,who reviewed the technical data in thispresentation. 2
  3. 3. Why Lago Dourado?Clean exploration story 100% ownership of flagship Juruena project Brazil – favourable mining jurisdiction Well financed (current cash balance ~$4mln) Experienced executive teamJuruena Project – Size Potential One of the most extensive gold-in-soil anomaliesglobally (+10sq km) +0.5 Moz gold mined at surface Multiple gold zones already identifiedUpcoming catalysts 2 drill rigs turning – 15,000m Phase I campaignongoing Property largely untested 3
  4. 4. Corporate OverviewCapital Structure Shares (M) Investor SnapshotPre-Initial Public Offering (IPO) 42.2 Share Price (December 5, 2011) $0.46IPO – November 2010(1) 18.4 Market Cap (December 5, 2011) $33 MIssued to Geomin (previous owners) 1.5 Average Daily Volume (3 months) 20,000Secondary Financing – July 2011 9.2 Cash On Hand (Aug 31, 2011) $5.5 MBasic Shares Outstanding 71.3Options(2) 6.8Warrants(3) 9.0F/D Shares Outstanding 87.1 Major Shareholders Management & Directors (7%) Rosseau Asset Management (23%) Pinetree Capital (11%) Source: Stockwatch(1) Gross proceeds of $9.2mln (18.4 M shares issued at $0.50)(2) 1.55 M exercisable at $0.25 until June 2015, 1.55 M exercisable at $0.35 until September 2015, 2.0 M exercisable at $0.60 until December 2015, 0.1 M exercisable at $0.90 until April 2016, 0.2 M exercisable at $0.75 until June 2016, 1.5 M exercisable at $0.50 until November 2016(3) 2.1 M exercisable at $0.50 until July 2012, 1.3 M exercisable at $0.50 until November 2012, 1.0 M exercisable at $0.91 until April 2014, 4.6 M exercisable at $0.70 until January 2013 4
  5. 5. Brazil SummaryQuick Facts 7th largest economy in the world 12th largest gold producer in the world 4th ranked jurisdiction globally in which to invest in mining projects (Behre Dolbear 2011 report) Experienced cost effective labour Extensive infrastructure Energy independent 5th most populous country 5
  6. 6. Management & Board of DirectorsThomas Obradovich Dan NooneChairman Director 20 yrs experience in developing mineral projects  VP Exploration at Guyana Goldfields from grass roots to advanced exploration  20 years experience including senior geologist Former Director of Aurelian, Ex-President & CEO roles in PNG, Indonesia & South America of Young-Davidson Mines Dean MacEachernForbes Gemmell DirectorPresident & CEO  Co-founded Lago Dourado Former precious metals analyst at Raymond  20 years precious & base metals exploration James covering mid-tier gold producers predominantly with Falconbridge (1988-2005) 10 years experience in the investment industry Jon Douglas CFA charterholder DirectorMurray Paterson  Senior VP & CFO of Northgate since 2001VP Exploration & Development  Involved in A&D and operation of gold projects 15 yrs experience in precious/base metal operations in North America and Australia in a variety of geological environments Mine Geological Superintendent for Michele McCarthy Equinox at Lumwana and Chief Mine Geologist Director at the world-class Geita Gold Mine in Tanzania  Chief Legal Officer for GMAC Residential Funding  Advisor to mutual funds and hedge funds onDr. David Groves corporate governance, compliance & HR mattersTechnical Advisor Frederico Marques Former Professor of Economic Geology at UWA Co-authored over 500 geological publications – Director received 11 medals for his research  Foreign legal consultant at Heenan Blaikie LLP  10 years in-house legal experience with Vale, Brasil Telecom and Odebrecht 6
  7. 7. Juruena – Active Workings Extensive Surface Workings Garimpeiros (Artisanal Jacaré pit Miners) Est. 10,000 oz Au  Property worked by garimpeiros since extracted in 1 year 1980s (>0.5Moz Au mined)  Only alluvials and saprolite mined (to an average depth of ~30m) 7
  8. 8. Juruena – BackgroundOwned mid-1990s by Ourominas Minerals Failed to make property payment in late 1997 (weak gold price, post-Bre-X)Property position has been consolidated by Lago Dourado 100% ownership, ~70,000 hectares Licences previously split between Talon & Geomin 8
  9. 9. Juruena – Alta Floresta Gold BeltJuruena/Teles Pires Horst Regionally extensive granite belt with multiple intrusive events Stretches east-west for >400km, average width 30km, 7Moz produced 1979-1997 Access to the project by small airplane, dirt road and river 9
  10. 10. Juruena – Local GeologyPorphyry to High-Sulfidation Mineral SystemDifferent styles of mineralization within Crentes different host environments Querosene Indicative of multiple mineralizing pulses Jacare’s Field Resulting in multiple gold zones overseveral hundred metres to kilometres in strike Noventa Graus 10
  11. 11. Drilling vs Gold-In-Soil Anomalies Historic Drilling  91 holes (15,000m) drilled in mid-1990s  Concentrated on existing garimpeiro workings  No systematic drill work over entire mineralized system Current Drilling  ~ 10,000m completed of 15,000m Phase I campaign  Currently 2 drill rigs turning  Multiple target areas: A. Crentes B. Querosene C. Jacare’s Field D. Uiliam E. Arrastro SE F. Chico Carabina G. Noventa Graus 11
  12. 12. Potential Geological Model? 12
  13. 13. Upcoming TargetsUiliam Pit JRND046 - Massive sulfide mineralization on edge of a dyke Ocelli or globules Mineralized sheeted veins in volcanic rock containing Hole JRND046 underneath pit intercepted sulfide sulfide,veins & ocelli/globules over ~200m interval (assays carbonateare pending) and a white feldspar (413m) JRND046 - Sulfide veinlets (291m) 13
  14. 14. Upcoming TargetsArrastro SE Circular S & Fe zone (500m x500m) within Cu-Au rich zone(2km x 1km) Silica cap & brecciationpresent Zoning consistent with thepresence of a Cu-Au bearingporphyritic intrusion (porphyry))Chico Carabina Junction of three major faults,two are well mineralized Strong linear trend of high soilanomaly 200m long bedrock working 14
  15. 15. Juruena – On-site Infrastructure On-site infrastructure largely complete (office, core shack, sleeping quarters, classroom, nursery, kitchen/canteen) 15
  16. 16. Juruena – Community Relations School & local health clinic upgrade complete Upgrade of telecommunications underway Local committee formed to implement community programs 16
  17. 17. Jauru – Gold Exploration Project Jauru belt hosts gold-rich VMS & high-grade orogenic gold deposits Drilling commenced December 2011 (1,200m program) Option agreement to acquire 70% of project Historic Drill Intercepts for J6-A Target - 14.7 g/t Au over 12.0m - 11.4 g/t Au over 11.0m - 5.8 g/t Au over 12.1m 20km Geomin Option (85,000 hectares) 17
  18. 18. Jauru – Geology & Magnetics  J6A target – 2km long gold-in-soil anomaly along structural corridor  J7 target – 4km long gold-in-soil anomaly along geological contact J7 zone J6A J7 J6B J6A 18
  19. 19. Exploration Outlook Strategy focused on discovery of a multi- million ounce gold deposit at the Juruena Project 15,000m Phase I drill program ongoing - designed to test most prospective targets and gain a better understanding of the geological model Multiple gold zones already identified over the massive gold footprint- property remains largely untested Well funded to complete remainder of drill program 19
  20. 20. Appendix A - Deal StructuresJuruena Talon - 100% interest for $1 M cash, 0.5 M shares + 0.5 M warrants Geomin – 100% interest for $1 M cash, 1.5 M shares + 1.0 M warrantsJauru Payment schedule outlined below earns Lago a 70% interest (joint venture is established with standard dilution clauses) Option to buyout remaining 30% for US$8 MYear-End Option Exploration Total Payments (US$) (US$) (US$)On Signing $150,000 Nil $150,000August 2010 $250,000 $350,000 $600,000August 2011 $300,000 $450,000 $750,000August 2012 $300,000 $1,200,000 $1,500,000August 2013 $500,000 $1,500,000 $2,000,000Total $1,500,000 $3,500,000 $5,000,000 20
  21. 21. FOR MORE INFORMATION, PLEASE CONTACT:Forbes Gemmell, President & CEONatasha Blackburn, Corporate Development55 University Avenue Suite 700, Toronto ON M5J 2H7Tel: 416 368 5005 TF: 1 855 368 5005 Fax: 416 703 8299 E: