Corporate Presentation December 2010

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Exploring For Gold in a Gold-rich System

Exploring For Gold in a Gold-rich System

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  • 1. Exploring For Gold in a Gold-Rich System December 2010
  • 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.LDM-TSXV 2
  • 3. Why Lago Dourado?Juruena Project Extensive gold system +0.5Moz gold mined at surface Property largely untested Drilling commenced December 2010Mato Grosso, Brazil Favourable mining jurisdiction, extensive infrastructureWell Financed $9.2mln IPO completed November 2010Experienced Executive TeamLDM-TSXV 3
  • 4. Capital StructureOwnership Breakdown Shares (M)Shares Outstanding pre-IPO 42.2Shares Offered under IPO(1) 18.4Basic Shares Outstanding 60.6Options(2) 5.1Warrants(3) 3.4F/D Shares Outstanding 69.1 Major Shareholders Management & Directors (11%) Rosseau Asset Management (23%) Pinetree Capital (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 $0.50 until December 2015 (3) 2.1 M exercisable at $0.50 (exercisable until July 2012), 1.3 M exercisable at $0.50 (exercisable until November 2012)LDM-TSXV 4
  • 5. Management & Board of DirectorsThomas Obradovich Dan NooneChairman Director 20 yrs experience in developing gold, base  VP Exploration at Guyana Goldfields metal and diamond projects from grass roots  20 years experience including senior geologist to advanced exploration roles in PNG, Indonesia & South America Co-founder of Aurelian, Ex-President & CEO of Young-Davidson Mines Dean MacEachern DirectorForbes Gemmell  Co-founded Lago DouradoPresident & CEO  20 years precious & base metals exploration predominantly with Falconbridge (1988-2005) Former precious metals analyst at Raymond James covering mid-tier gold producers 10 years experience in the investment industry Jon Douglas CFA charterholder Director  Senior VP & CFO of Northgate since 2001, former Director of AureliaMurray Paterson  Involved in A&D and operation of gold projectsVP Exploration & Development in North America and Australia 15 yrs experience in open pit/underground, precious/base metal operations in a variety of geological environments (Bolivia, Australia, Africa) Michele McCarthy Mine Geological Superintendent for Director / Corporate Secretary Equinox at Lumwana and Chief Mine Geologist  Chief Legal Officer for GMAC Residential Funding at the world-class Geita Gold Mine in Tanzania  Advisor to mutual funds and hedge funds on corporate governance, compliance & HR mattersLDM-TSXV 5
  • 6. Brazil SummaryQuick Facts 9th largest economy in the world Experienced cost effective labour Extensive infrastructure (roads, power, towns & services) 12th largest gold producer in the world 5th most populous country Fraser Institute – ranked 3rd in South America based on 2009/10 Mining SurveyLDM-TSXV 6
  • 7. Juruena – Active Workings Extensive Surface Workings Garimpeiros (Illegal Miners) Jacaré pit Property worked by garimpeiros Est. 10,000 oz Au since 1980s extracted in 1 year (>0.5Moz Au mined) Only alluvials and saprolite mined (to an average depth of ~30m)LDM-TSXV 7
  • 8. Juruena – BackgroundOwned mid-1990s by Madison Failed to make property payment in late 1997 (weak gold price, post-Bre-X)Property position has been consolidated by Lago Dourado Geomin claims – option agreement to earn 70% interest Talon claims – acquired 100% interestLDM-TSXV 8
  • 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, 6.5Moz produced 1979-1997 Access to the project by small airplane, dirt road and riverLDM-TSXV 9
  • 10. Juruena – Local GeologyIntrusion Related Deposit Mineralization structurally controlledMultiple Styles ofMineralization High-grade veins with minor sulphides Sheeted quartz veins Stockworks Minor breccias Shear zones with intense fracturing Vein sets range from 1m up to 50m wide, veins range from <1cm to 1m thick LDM-TSXV 10
  • 11. Extensive Gold-In-Soil AnomalyLDM-TSXV 11
  • 12. Juruena – Historic Drill HolesDrill Hole Locations 91 holes (15,000m) drilled by Madison in mid-1990s Drilling concentrated around existing garimpeiro workings No systematic drill work over entire mineralized systemLDM-TSXV 12
  • 13. Juruena – Active WorkingsTomate Zone Discovered April 2010LDM-TSXV 13
  • 14. Juruena – Crentes Pit Quartz sheeted veins at east end of Crentes Pit 10m 2.7 g/t Au over 36m (oxidized) in hole J-01 underneath workingsIntercepts of 10.5m @ 15g/t and 5.8m @52g/t starting at vertical depth of 75mrecorded beneath Crentes Pit LDM-TSXV 14
  • 15. Juruena – Community RelationsLDM-TSXV 15
  • 16. Jauru – Earlier Stage 2 known deposits hosted in eastern most package of volcanics and granite Jauru belt hosts VMS type showings and shear zone gold showings Option agreement to acquire 70% of project (same terms as Juruena project) Historic Drill Intercepts for J6-A Target 14.7 g/t Au over 12.0m 5.8 g/t Au over 12.1m 20km Geomin Option (85,000 hectares)LDM-TSXV 16
  • 17. Investment OpportunityExploration upside One of the most extensive gold-in-soil anomalies in Brazil Property largely untested Major zone to south already discoveredUpcoming catalysts Airborne magnetics & radiometrics – early 2011 Drilling – 12,000m (60 holes) campaign commenced December 2010 Drill results – late 1Q 2011 onwardsWell financed – current cash balance of ~$7.5mlnProven and experienced executive teamLDM-TSXV 17
  • 18. Appendix A - Juruena Deal StructureGeomin Deal 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 $150,000July 2010 $250,000 $350,000 $600,000July 2011 $300,000 $450,000 $750,000July 2012 $300,000 $1,200,000 $1,500,000July 2013 $500,000 $1,500,000 $2,000,000Total $1,500,000 $3,500,000 $5,000,000 Talon Deal  100% interest for $1 M cash, 0.5 M shares + 0.5 M warrantsLDM-TSXV 18
  • 19. ContactHead Office ContactForbes GemmellPresident & CEO55 University Avenue
Suite 700
Toronto Ontario M5J 2H7
Tel: 416 368 5005
Fax: 416 703 8299
Email: fgemmell@lagodourado.netLDM-TSXV 19