Corporate Presentation January 2011


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Exploring For Gold in a Gold-Rich System

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Corporate Presentation January 2011

  1. 1. Exploring For Gold in a Gold-Rich System January 2011
  2. 2. 2LDM-TSXV Forward-looking statements relate to future events or the anticipated performance of the Company and reflect management’s expectations or beliefs regarding such future events and anticipated performance. In certain cases, 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 words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved", or the negative of these words or comparable terminology. By their very nature forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual performance of the Company to be materially different from any anticipated performance expressed or implied by the forward-looking statements. Important factors that could cause actual results to differ from these forward-looking statements include risks related to failure to define mineral resources, to convert estimated mineral resources to reserves, the grade and recovery of ore which is mined varying from estimates, future prices of gold and other commodities, capital and operating costs varying significantly from estimates, political risks arising from operating in Brazil, uncertainties relating to the availability and costs and availability of financing needed in the future, changes in equity markets, inflation, changes in exchange rates, fluctuations in commodity prices, delays in the development of projects, 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 to differ materially from that described in forward-looking statements, there may be other factors that cause its performance not to be as anticipated. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. These forward-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. Forward Looking Statements
  3. 3. 3LDM-TSXV Juruena Project  Extensive gold system  +0.5Moz gold mined at surface  Property largely untested  Drilling commenced December 2010 Mato Grosso, Brazil  Favourable mining jurisdiction, extensive infrastructure Well Financed  $9.2mln IPO completed November 2010 Experienced Executive Team Why Lago Dourado?
  4. 4. 4LDM-TSXV Ownership Breakdown Shares (M) Shares Outstanding pre-IPO 42.2 Shares Offered under IPO(1) 18.4 Basic Shares Outstanding 60.6 Options(2) 5.1 Warrants(3) 3.4 F/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) Capital Structure
  5. 5. 5LDM-TSXV Management & Board of Directors Thomas Obradovich Chairman  20 yrs experience in developing gold, base metal and diamond projects from grass roots to advanced exploration  Co-founder of Aurelian, Ex-President & CEO of Young-Davidson Mines Forbes Gemmell President & CEO  Former precious metals analyst at Raymond James covering mid-tier gold producers  10 years experience in the investment industry  CFA charterholder Murray Paterson VP Exploration & Development  15 yrs experience in open pit/underground, precious/base metal operations in a variety of geological environments (Bolivia, Australia, Africa)  Mine Geological Superintendent for Equinox at Lumwana and Chief Mine Geologist at the world-class Geita Gold Mine in Tanzania Dan Noone Director  VP Exploration at Guyana Goldfields  20 years experience including senior geologist roles in PNG, Indonesia & South America Dean MacEachern Director  Co-founded Lago Dourado  20 years precious & base metals exploration predominantly with Falconbridge (1988-2005) Jon Douglas Director  Senior VP & CFO of Northgate since 2001, former Director of Aurelian  Involved in A&D and operation of gold projects in North America and Australia Michele McCarthy Director / Corporate Secretary  Chief Legal Officer for GMAC Residential Funding  Advisor to mutual funds and hedge funds on corporate governance, compliance & HR matters
  6. 6. 6LDM-TSXV Brazil Summary Quick 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 Survey
  7. 7. 7LDM-TSXV Juruena – Active Workings Extensive Surface Workings Jacaré pit Est. 10,000 oz Au extracted in 1 year Garimpeiros (Artisanal Miners) Property worked by garimpeiros since 1980s (>0.5Moz Au mined) Only alluvials and saprolite mined (to an average depth of ~30m)
  8. 8. 8LDM-TSXV Owned 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% interest Juruena – Background
  9. 9. 9LDM-TSXV Juruena/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 Juruena – Alta Floresta Gold Belt
  10. 10. 10LDM-TSXV Intrusion Related Deposit  Mineralization structurally controlled Multiple Styles of Mineralization  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 Juruena – Local Geology
  11. 11. 11LDM-TSXV Extensive Gold-In-Soil Anomaly Core Area Noventa Graus
  12. 12. 12 Potassic alteration reconciles with gold-in-soil anomalies Red = Potassium rich zones Green = Thorium rich zones Blue = Uranium rich zones + signs indicate existing artisanal pits (except SE Soil Anomaly) Core Area Noventa Graus Significant Potassic Alteration
  13. 13. 13LDM-TSXV Historic Drilling  91 holes (15,000m) drilled by Madison in mid-1990s  Drilling concentrated around existing garimpeiro workings  No systematic drill work over entire mineralized system Juruena – Historic Drill Holes
  14. 14. 14LDM-TSXV Juruena – Active Workings Tomate Zone Discovered April 2010
  15. 15. 15LDM-TSXV 10m Quartz sheeted veins at east end of Crentes Pit 2.7 g/t Au over 36m (oxidized) in hole J-01 underneath workings Intercepts of 10.5m @ 15g/t and 5.8m @ 52g/t starting at vertical depth of 75m recorded beneath Crentes Pit Juruena – Crentes Pit
  16. 16. 16LDM-TSXV Juruena – Community Relations
  17. 17. 17LDM-TSXV  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 Jauru – Earlier Stage Geomin Option (85,000 hectares) 20km
  18. 18. 18LDM-TSXV Exploration upside  One of the most extensive gold-in-soil anomalies in Brazil  Property largely untested  Major zone to south already discovered Upcoming catalysts  Drilling – 12,000m (60 holes) campaign commenced December 2010  Drill results – late 1Q 2011 onwards Well financed – current cash balance of ~$7.5mln Proven and experienced executive team Investment Opportunity
  19. 19. 19LDM-TSXV Geomin 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 M Talon Deal  100% interest for $1 M cash, 0.5 M shares + 0.5 M warrants Appendix A - Juruena Deal Structure Year-End Option Payments (US$) Exploration (US$) Total (US$) On Signing $150,000 Nil $150,000 July 2010 $250,000 $350,000 $600,000 July 2011 $300,000 $450,000 $750,000 July 2012 $300,000 $1,200,000 $1,500,000 July 2013 $500,000 $1,500,000 $2,000,000 Total $1,500,000 $3,500,000 $5,000,000
  20. 20. 20LDM-TSXV Head Office Contact Forbes Gemmell President & CEO 55 University Avenue
Suite 700
 Toronto Ontario M5J 2H7
 Tel: 416 368 5005
Fax: 416 703 8299
 Email: Contact