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1430 trangi johnston

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1430 trangi johnston

  1. 1. The Gold Symposium 14 November 2011 Trangie Johnston Chief Geologist
  2. 2. PRECIOUS & BASE METAL PRODUCTION COMPANY 2
  3. 3. DISCLAIMERDisclaimerThis presentation has been prepared and issued by Kimberley Metals 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 (nortaken 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. Any recipient ofthe presentation should observe any such restrictions on the distribution of this presentation and warrants to the Company that the receipt of the presentation is notunlawful. The presentation does not constitute, and should not be considered as, an offer or invitation to subscribe for or purchase any securities in the Company or asan 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 by law, noresponsibility 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 or omissions fromthis presentation whether arising out of negligence or otherwise is accepted. An investment in the shares of the Company is to be considered highly 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 it to, ordiscuss it with, any other person without the prior permission of the Company.Competent Persons StatementThe information in the Presentation that relates to Exploration Results and Mineral Resources has been compiled by Mr Stuart Mathews, MSc (Hons), who is a Memberof the Australasian Institute of Mining and Metallurgy and is a full-time employee of the Company. He has sufficient experience that is relevant to the styles ofmineralisation and types of deposit under consideration and to the activity that is being undertaking to qualify as a Competent Persons as defined in the 2004 edition ofthe Australasian Code for Reporting of Exploration Results, Minerals Resources and Ore Reserves. Mr Mathews consents to the inclusion in the Presentation of thematters 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 a Member ofthe Australian Institute of Geoscientists) in relation to the Sorby Hills, Manbarrum and Constance Range projects. Each of these persons has sufficient experience that isrelevant to the styles of mineralisation and types of deposit under consideration and to the activity that is being undertaking to qualify as Competent Persons as definedin the 2004 edition of the Australasian Code for Reporting of Exploration Results, Minerals Resources and Ore Reserves. Further, each of these persons consents to theinclusion in the Presentation of the matters based on his information in the form and context that the information appears. 3
  4. 4. SUSTAINED GROWTH STRATEGY Source: adapted from McKinsey’s “The Alchemy of Growth”.
  5. 5. Precious & Base Metal Production fromMINERAL HILL MINE AND PLANT 5
  6. 6. REFURBISHED AND UPGRADED PLANT 6
  7. 7. PARKERS HILL • 1st Stope: 37,000t @ 2.14% Cu pending this week • 2nd Stope being developed forParkers Hill Sulphide 1Q2012 Tonnes GradeCategory (thousands) Copper % Lead % Zinc % Silver g/t Gold g/t Copper (kIndicated 1,450 1.9 1.2 1.2 36 0.30 27Inferred 50 1.6 1.1 2.4 48 0.20 0Total 1,500 1.9 1.2 1.2 36 0.3 0 28
  8. 8. PEARSE OPEN CUT GOLD-SILVER MINE 400m Tonnes Grade Contained metal Category (thousands) Silver g/t Gold g/t Silver (oz) Gold (oz) Indicated 226 84 6.7 611,430 48,769 Inferred 71 67 5.7 153,803 13,085 Total 298 80 6.5 765,232 61,853 8
  9. 9. PRODUCTION SUMMARY NOW CY12 CY13 5,000t Cu 5,000t Cu 5,000t Cu Metal 1,350oz Au 21,350oz Au 31,350oz Au Content 120,000oz Ag 255,000oz Ag 255,000oz Ag Parkers Hill Parkers HillOre Source Parkers Hill Pearse Pearse ESOZ / SOZMill Capacity 250,000tpa 400,000tpa 400,000tpa
  10. 10. IN GROUND METAL VALUEPrice Assumptions• Cu: $7,000/t• Au: $1,600/oz• Ag: $30/oz• Pb: $2,000/t• Zn: $2,000/t Parkers Hill Deposits + ESOZ + SOZ Pearse 10 Resources broken down on page 32 - 34
  11. 11. ESOZESOZ Tonnes GradeCategory (thousands) Copper % Lead % Zinc Silver g/t Gold g/t Copper (kt) LeIndicated 101 1.5 0.1 0.2 7 3.7 1.5Inferred 214 2.1 0.1 0.1 8 5.1 4.5Total 315 1.9 0.1 0.1 8 4.6 6.0 11
  12. 12. SOZSOZ (Au Zone) Cut-off grade 4g/t Au Tonnes GradeCategory (thousands) Copper % Lead % Zinc Silver g/t Gold g/tMeasured 162 0.7 0.4 0.3 9 4.1Indicated 74 0.8 0.9 1.0 18 3.9Inferred 165 0.9 0.5 0.5 12 4.9Total 400 0.8 0.5 0.5 12 4.4SOZ (Cu / Au Zone) Cut-off grade 1.5% Cu Eq.* Tonnes GradeCategory (thousands) Copper % Lead % Zinc Silver g/t Gold g/tMeasured 479 1.4 0.6 0.4 14 1.1Indicated 233 1.0 0.4 0.4 10 1.4Inferred 150 1.0 0.5 0.3 11 1.5Total 862 1.2 0.5 0.4 12 1.3SOZ (Pb / Zn Zone) Cut-off grade 4% Pb+Zn Tonnes GradeCategory (thousands) Copper % Lead % Zinc Silver g/t Gold g/tMeasured 90 0.7 3.1 2.4 29 0.4Indicated 389 0.4 2.5 2.7 25 0.2Inferred 220 0.3 2.4 3.1 21 0.3Total 699 0.4 2.6 2.8 24 0.2 12
  13. 13. PRIORITISED EXLORATION TARGETS1. Red Terror 3 – Re-discovered high grade Cu/Au trend – Accessible from existing development – High priority drill targets: • UEOZ01: 7.6m @ 1.4% Cu & 8.8g/t Au • UEOZ03: 12.8m @ 4% Cu & 2.7g/t Au2. Parkers Hill to SOZ – Newly defined Cu-Au-Ag-Pb-Zn structural corridor – Potential to discover Parkers Hill/SOZ styles 1 – – Accessible from existing development 400m long target zone 43. Mt Marshall – Potential pit cut-back at Eastern Pit into oxide Cu/Au trend 2 – Drill targets defined4. CMHDD001 – Single isolated drill hole – Results: 5m @ 3.5g/t Au, 3.4% Cu – Potential new SOZ-type Au/Cu ore zone 13
  14. 14. IRON DUKE (Au-Cu)• Significant Au/Cu mineralisation Section Cu/Au mineralised zone strike > 500m - High 25m priority drill target Coincident Au-Cu 6m @ 3.8% Cu, soil geochemical Mineralised Envelope 0.6g/t Au anomaly Cu/Au mineralisation11m @ 2.5% Cu, over 2km strike length 3.8g/t Au – target for shallowIncl. 4m @ 3.5% high grade ore Open at Depth Cu, 8.3g/t Au 5.5m @ 1.7% Cu, 0.4g/t Au 14
  15. 15. NEW MINING REGION - BONAPARTE BASINSORBY HILLS & MANBARRUM 15
  16. 16. BONAPARTE BASIN• Mississippi Valley Type (MVT) Ag-Pb-Zn mineralisation • 140km strike • Open Cut Depths with 5 – 30m of alluvial cover • Sorby Hills on West limb of syncline, Manbarrum on East limb 16
  17. 17. SORBY HILLS SILVER-LEAD PROJECT • 50 km north of Kimberley regional centre, Kununurra • Adjacent to modern infrastructure • 130km by road to port facilities at SORBY HILLS Wyndham • 13 mineralised deposits over 8km strike • 17.7mt undeveloped Ag-Pb Resource at open cut depth • Discovered by Aquitaine in 1971 • 75:25 JV with China’s largest lead/silver smelter – Henan Yuguang Gold & Lead 17
  18. 18. STRATEGIC DEVELOPMENT PLAN Stage One: Shallow (<70m) open cut mining project based on C-D-E Stage 1 Deposits @ 500,000tpa  Lower capital cost development option with reduced operational and regulatory risk Stage two expansion based on F & I Deposits, Alpha & Beta Deposits & • Stage 1: 450-600ktpa ore underground options @ 1.2mtpa • 3.5Mt @ 60g/t Ag, 4% Pb, 0.36% Zn (2% Pb cut-off) Target Environmental Approvals – • 5:1 strip ratio late 2012 • 90T Truck access • > 10 year mine life Target First Mining Operations – • Stage 2: 1.2mtpa mid-late 2013 18
  19. 19. WORK IN PROGRESS Complete Pre-feasibility Study to establish project parameters  Key project personnel on-site  6,000m of infill resource drilling of E- Deposit & resource extension of D- Deposit complete  Hydrogeological and environmental fieldwork complete and community consultation underway  Beijing General Research Institute of Mining & Metallurgy (BGRIMM) undertaking plant design and costing 19
  20. 20. High Grade 1425 intersections in D-E deposit D-Deposit – SORBY HILLS15m @ 12.7% Pb & 114g/t Ag 9m @ 11.6% Pb & 161g/t Ag Incl. Incl. 5m @ 31.3% Pb & 268g/t Ag 3m @ 29.5% Pb & 430g/t Ag 20
  21. 21. Kimberley Metals LtdRESOURCES AND RESERVES 21
  22. 22. KIMBERLEY METALS RESOURCES Summary of Resource Tables on slides 32 to 37 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 17.7 4.4 0.7 53Manbarrum 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 61,081 83,297 47,598 6,119,727,567 222,490Sorby Hills 17.7 778,800 123,900 30,261,290,323Manbarrum 32.4 113,400 411,480 9,615,483,871Constance Range 296.0 157.2 22
  23. 23. 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 0.30 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
  24. 24. MINERAL HILL MINE RESOURCES PART 2SOZ (Au Zone) Cut-off grade 4g/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
  25. 25. 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 25
  26. 26. SORBY HILLS RESOURCESTotal Resources Tonnes GradeCut-off Category (millions) Silver g/t Lead % Zinc %2.5% Lead Inferred/Indicated 17.7 53 4.4 0.71.0% Lead Inferred 28.4 43 3.4 0.6 26
  27. 27. MANBARRUM RESOURCESSandy Creek Primary ZoneDjibitgan Oxide Zone 27
  28. 28. 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 28

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