Tembo Gold - Corporate Presentation April 2012


Published on

Corporate Presenation of Tembo Gold Corp (TSX.V: TEM; Frankfurt: T23)

Published in: Business, Technology
  • Be the first to comment

  • Be the first to like this

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

Tembo Gold - Corporate Presentation April 2012

  1. 1. TSX-V: TEMInvestor Presentation April 2012
  2. 2. Forward Looking StatementThis report includes certain statements that may be deemed forward-looking. Allstatements in this release, other than statements of historical facts, that addressfuture production, reserve potential, exploration drilling, exploitation activitiesand events or developments that the company expects, are forward-lookingstatements. Although the Company believes the expectations expressed in suchforward-looking statements are based on reasonable assumptions, suchstatements are not guarantees of future performance and actual results ordevelopments may differ materially from those in the forward looking statements.Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes,availability of capital and financing, and general economic, market or businessconditions. Investors are cautioned that actual results or developments may differmaterially from those projected in the forward-looking statements.The information contained in this presentation has been prepared under thesupervision of David Scott, Pr. Sci. Nat., who is designated as a "Qualified Person"with the ability and authority to verify the authenticity and validity of the data. TSX-V: TEMApril 2012 2 www.TemboGold.com
  3. 3. Tembo at a Glance • Highly Prospective Tanzanian Gold Asset – A 123km2 contiguous area consisting of 110km2 of active licences and 13km2 under application – Located adjacent to African Barricks 20Moz Bulyanhulu Mine in the prolific Lake Victoria greenstone belt of Tanzania – Highly prospective geology, encouraging earlier exploration with promising results, artisanal mining and multiple targets identified • High Quality Management Team – CEO: David Scott, formerly of Barrick Gold’s subsidiary Kahama Mining Corporation, 32 years’ experience, 13 years in Tanzania – Chairman: Dave Anthony, former COO of African Barrick, 30 years experience, 10 years in Tanzania • Extensive Artisanal Activity – Over 2,000 artisanal miners operating in over 100 active mine shafts up to 90m in depth – Artisanal mining along a combined strike in excess of 10km along Bulyanhulu parallel northwest, northeast and east-west structures – Extracting high grade 5-50 g/t material TSX-V: TEMApril 2012 3 www.TemboGold.com
  4. 4. Capital StructureClean capital structure with limited shares outstanding and well funded Capital Structure Share Performance TSX-V Symbol TEM Share Price (as at Apr 09, 2012) $1.30 52 Week Range $1.20 - 2.29 Issued and Outstanding 40,350,838 Fully Diluted 54,723,709 Market Capitalization ~$53M Working Capital ~$13M Options and Warrants Holders Warrants 10,338,871 Founders & Management 30% Options 4,034,000 Insiders 20% TSX-V: TEMApril 2012 4 www.TemboGold.com
  5. 5. Firsthand and Extensive Experience MANAGEMENT TEAM TSX-V: TEMApril 2012 5 www.TemboGold.com
  6. 6. Directors & ManagementFormer Bulyanhulu management leading the company• David Scott – President & CEO – Former Technical Services Manager for Barrick Gold’s subsidiary Kahama Mining Corporation; responsible for all Technical Services at Bulyanhulu including on-mine exploration activities – Over 32 years of African exploration and mining experience with 13 years in Tanzania – Extensive knowledge of Tanzanian geology including direct experience at Bulyanhulu – Substantial government and industry contacts in Tanzania• Dave Anthony - Chairman – Former COO of African Barrick Gold and member of executive team that took ABG public – 10 years in Tanzania: responsible for design, construction and operation of 3 of 4 world- class Barrick operations (Bulyanhulu, Buzwagi, Tulawaka) – Government and industry network in Tanzanian mining industry – Held multiple senior positions with gold and base metal mining companies (Barrick, Cominco, Hudson Bay M&S, Royal Oak Mines, Cliffs Natural Resources) TSX-V: TEMApril 2012 6 www.TemboGold.com
  7. 7. Directors & ManagementExperienced mining professionals strengthen the corporate team• John Seaman – CFO – Mr. Seaman has been involved with several successful mining projects and is currently the CFO for Premier Gold Mines – Previously held the position of CFO of Wolfden and Pediment which were both bought out by majors• Robert Sedgemore – Director – Former Global Mining Specialist with IFC, a division of the World Bank – Managed and prepared scoping, feasibility studies, engineering services and project delivery support for capital projects up to $2.5B USD – Significant EPCM projects include Codelco Cu Refinery, Escondida phase 3 & 3.5, BHP Tintaya Cu Oxide, Piedras Verde Cu, CAL Energy Zinc, and the Escondida Oxide project• Pierre Julien – Director – Extensive involvement in Bulyanhulu process plant design and delivery – Former President and CEO of Norcast Castings, major international supplier of grinding technology and former President of Outotec North America, global leader in the supply of mineral processing plants, technology and services – Seasoned Executive and Founder of Lincoln Strategic and ORE+PROS Inc, mining industry service providers• Marc Cernovitch – Director – Extensive capital markets experience having held various roles for multiple jr. resource companies for the past 10 years• Colin Taylor – Director – Experienced in a wide range of managerial roles within the resource industry in both Canada and abroad TSX-V: TEMApril 2012 7 www.TemboGold.com
  8. 8. Technical & Local TeamAfrican experts The Mineral Corporation leading the exploration• Peter Haworth - Exploration Manager: 33 years experience in exploration and mine geology and in mine management, extensive drill project and greenstone gold experience in southern, east and west Africa• The Mineral Corporation (TMC), exploration contractors, a leading senior advisor, consultant and contractor – John Murphy – Director: Twenty years of professional geological experience in base and precious metal exploration and mining in Africa, including Archaean gold project generation, due diligence and exploration in Tanzania – Dr. Johan Krynauw – Senior Geological Advisor: Thirty-nine years of experience as a geologist, including base and precious metals exploration and exploration management in the Archaean terranes of Africa, with a specialisation in geochemistry – Alan Goldsmith – Senior Geological Advisor: Twenty years of professional geological experience in base and precious metal exploration in Africa, including gold exploration in Tanzania, specializing in Geographical Information System applications and exploration – Noleen Pauls – Senior Geological Advisor: Eighteen years of geological experience in mineral exploration and mining, including gold exploration management and execution in sub-Saharan Africa and South America • Local corporate administrative and governmental liaison leadership – Paul Magege - Country Manager: a founding shareholder with strong local relationships and a skilled administrator TSX-V: TEMApril 2012 8 www.TemboGold.com
  9. 9. Historic and Recent Work TEMBO GOLD PROJECT TSX-V: TEMApril 2012 9 www.TemboGold.com
  10. 10. Lake Victoria Mining CampLocated in an established mining camp with 50m ounces of gold resources P&P Indicated Inferred Total • Six modern mining operations Company Mine (Moz) (Moz) (Moz) (Moz) African Barrick African Barrick Bulyanhulu North Mara 11.0 2.8 2.9 1.8 3.3 17.3 3.7 8.4 • Significantly improved infrastructure African Barrick Buzwagi 2.9 0.6 0.2 3.7 African Barrick African Barrick Nyanzaga Golden Ridge 0.0 0.0 0.3 0.5 0.7 0.2 1.0 0.7 • Strong gold endowment African Barrick Tulawaka 0.1 0.1 0.0 0.2 AngloGold Ashanti Resolute Geita Golden Pride 4.2 0.3 4.5 2.5 2.6 11.3 0.5 3.3 • Well understood geological granite Resolute Tanzanian Royalty Nyakafuru Buckreef 0.0 0.0 0.5 1.0 0.5 1.0 1.1 2.0 greenstone terrane with parallels Total 21.4 14.7 12.7 48.8 Totals represents current resources and does not account for depeleted resources worldwide TSX-V: TEMApril 2012 10 www.TemboGold.com
  11. 11. The Tembo ProjectA significant land package with exciting underexplored potential• Large contiguous ground holding – 110km2 active licence area and 13km2 under application• Project credentials – Historic exploration database with good results – >10km of extensively continuous artisanal workings – Adjacent and along strike to African Barrick’s 20Moz Bulyanhulu mine TSX-V: TEMApril 2012 11 www.TemboGold.com
  12. 12. The Bulyanhulu ConnectionBulyanhulu geological and structural extensions are dominant on Tembo property• Bulyanhulu, a 4km long, 2km deep, 2m wide high grade orebody• Bulyanhulu SML underexplored• Both areas are extensively covered and provide erratic but important soil geochemistry results• Numerous magnetic structural lineaments cross the licence boundary and are mined by artisanal miners on both properties• Tembo property has contiguous geology and structural continuity of adjacent Bulyanhulu property TSX-V: TEMApril 2012 12 www.TemboGold.com
  13. 13. Historical ExplorationExploration results suggest a highly prospective area that is under-drilled• Airborne magnetics – Defines the extent of the greenstone meta-volcanics – Demonstrates geological continuity with the area to the southeast – Suggests there are > 100km of favourable structures• Geochemistry – Soils, RAB/aircore, and pitting indicate widespread presence of gold – Numerous anomalous values returned – Extensive transported cover up to 10m thick masks geology and precludes strong cohesive anomalies TSX-V: TEMApril 2012 13 www.TemboGold.com
  14. 14. Artisanal ActivitySignificant artisanal activity further confirms gold mineralization• Over 2,000 artisanal miners operating over 100 mine shafts• More than 2,800 shafts located along Bulyanhulu parallel, east-west, and northwest structures totalling over >10km• Mining from surface to depths in excess of 70m• Milling on site, with current grades ranging from 5 to 50 g/t TSX-V: TEMApril 2012 14 www.TemboGold.com
  15. 15. Advancing The Project WORK PROGRAM TSX-V: TEMApril 2012 15 www.TemboGold.com
  16. 16. LIDAR and Recent Field Mapping2011 LIDAR Survey identifies over 10km of artisanal mining zones• LIDAR Survey and field mapping – DTM and high resolution orthophoto identifies numerous previously unrecognised areas of mining – Individual laterally continuous zones of mining extend up to 2km in strike and for a total of >10km – The zones correspond to conjugate structures reflected in the magnetics• Artisanal mining – Ore from artisanal pits consists predominantly of quartz vein and sheared metavolcanic host with abundant evidence of sulphide – Grade of up to 58g/t returned from artisanal face sampling TSX-V: TEMApril 2012 16 www.TemboGold.com
  17. 17. Target Generation and PrioritisationTargets with artisanal mining prioritised for 2012 drilling• Target Prioritisation – Magnetics – Soil and RAB geochemistry – LIDAR Survey and field mapping – Targets represent <10% of the potentially mineralised structures indicated by the magnetics• Drilling Approach – A combined RC and diamond drilling approach applied – RC will test for less well defined targets and for in-fill drilling – Diamond drilling will be used to test well known structures (extensive artisanal mining) and provide geological control TSX-V: TEMApril 2012 17 www.TemboGold.com
  18. 18. Initial 2012 Drill ResultsFirst drills results confirm significant gold grades and show additional potential TEMBO PROJECT SIGNIFICANT DRILL RESULTS - March 13, 2012• Highlights Include: Boreholes Depth from Depth to Thickness Au completed*1 (m) (m) (m)*2 (g/t)*3 – TDD0004: 3.13 g/t Au over 25.89m TDD0004 41.00 66.89 25.89 3.13 including 41.60 44.50 2.90 4.15 including 8.87 g/t Au over 3.89m; 47.50 49.00 1.50 2.22 – TDD0005: 10.76 g/t Au over 4.00m, including 60.00 60.50 62.00 61.00 2.00 0.50 12.71 36.30 including 93.3 g/t Au over 0.38m 63.00 66.89 3.89 8.78 and; including 63.50 65.00 64.00 65.23 0.50 0.23 20.10 17.20 – TRC0013: 16.10 g/t Au over 3.00m 65.74 66.30 0.56 15.80 TDD0005 152.86 158.00 5.14 8.50 and 4.01 g/t Au over 3.00m including 154.00 158.00 4.00 10.76 including 155.32 155.70 0.38 93.30 TDD0010 189.50 191.50 2.00 4.48• First Drill Holes including 190.60 191.00 0.40 8.23 257.80 258.40 0.60 1.69 – 12 drill-holes, 6 reverse circulation TDD0011 23.50 24.00 0.50 1.84 (RC) and 6 diamond drilling (DD) TRC0013 including 19.00 19.00 22.00 20.00 3.00 1.00 16.10 – Alternate 100m spacing along a 500m 20.00 21.00 21.00 22.00 1.00 1.00 strike length 85.00 91.00 6.00 2.18 103.00 106.00 3.00 4.01 – Testing multiple mineralized 248.00 250.00 2.00 2.86 structures at 50 and 100m depths TRC0005 156.00 159.00 3.00 1.80 *1 TDD = Diamond Drill and TRC = Reverse Circulation beneath artisanal workings *2 Widths represent down hole core lengths, and true widths are unknown at this time *3 No high grades cut has been applied To date 7 of 12 assay results are availbale TSX-V: TEMApril 2012 18 www.TemboGold.com
  19. 19. Drill Program12 Month 87,000m drill program has commenced• Diamond Drilling – Initially two drill rigs @ 600m per month, 3rd and 4th rig ordered and en route – Average down hole depth estimated 200m (maximum depth estimated 400m) depending on target success – Total 12 month plan: 27,000m• Percussion RC – Initially one drill rig @ 2,400m per month, 2nd and 3rd rig ordered and en route – Average down-hole depth 150m (maximum depth estimated 300m) – Total 12 month plan: 60,000m• Additional Information – Drilling commenced in January 2012 at Ngula – Intersections targeted at vertical depths of 50m, 100m, 150m and 200m for both drilling techniques in first phase of drilling (RC may have shallower targets of 25m) – Drill targets will extended deeper to 500m upon initial success TSX-V: TEMApril 2012 19 www.TemboGold.com
  20. 20. Ngula 1 TargetA number of sub-parallel east-west structures host quartz vein-filled shears• Two east-west striking linear artisanal Ngula 1 mining areas 300m apart• Total strike extent in excess of 2km• Shafts as deep as 70m reported• Artisanal ore grab sampling up to 25g/t• Strong correlation with magnetic lineaments and scattered Au in RAB and soils• Drilling underway on S structure, multiple geological zones intersected, results awaited• Proposed initial 73 RC (14 500m) and DD (4 800) holes. TSX-V: TEMApril 2012 20 www.TemboGold.com
  21. 21. Nyakagwe EastNyakagwe East target has two structures each mined over a 750m strike• 750m x 400m area of mining• Mining depths in excess of 30- Nyakagwe East 50m• 2008 diamond drilling intersected potentially economic gold grades• Three northwest trending sub- parallel zones are untested down dip and along strike in both directions• Continuation to the northwest indicated by results of 2007 RC holes• 2012 program of diamond drilling to test combined strike of 2,000m on two zones down to 200m; total 8,600m TSX-V: TEMApril 2012 21 www.TemboGold.com
  22. 22. Iyenze Target on Bulyanhulu TrendBuly and Iyenze have two high potential targets along Buly-related structures• Target structures under deep cover• Parallel magnetic anomalies and scattered Au in soil Buly• At Iyenze 400m x 150m artisanal mining• Buly trend artisanal mining 200m north of Iyenze• RC intersections 2004 include: RC004 1m @ 4.6 g/t Au, RC006 1m @ 1.6 g/t Au, RC009 1m @ 1.9 g/t Au, RC009 2m @ 2.7 g/t Au Iyenze• Numerous parallel magnetic lineaments• Initially RC drilling of two structures planned; total 9,600m TSX-V: TEMApril 2012 22 www.TemboGold.com
  23. 23. Additional WorkWork in anticipation of resource determination and feasibility studies• Modified Gold Deportment – Comprehensive modified gold deportment and initial metallurgical testwork will be conducted on each target as soon as sufficient intersections have been achieved• Resource Determination – Orebody modelling will be conducted as drill programs and results dictate• Other Studies – The Company will be initiating community social responsibility programs early to ensure that the presence of Tembo positively impacts the communities within which the Company operates TSX-V: TEMApril 2012 23 www.TemboGold.com
  24. 24. Work Program Schedule Work in anticipation of resource determination and feasibility studies 2012FIELD AND TECHNICAL JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DECACTIVITIESData review, interrogation,interpretation and target re-assessmentDrillling DDDrilling RCPreliminary resourcemodellingGold deportment andmetallurgical testwork TSX-V: TEM April 2012 24 www.TemboGold.com
  25. 25. Investment Summary • HIGHLY PROSPECTIVE GOLD ASSET: Located adjacent to African Barricks 20Moz Bulyanhulu Mine in the prolific Lake Victoria Greenstone belt, the 123km2 property has highly prospective geology, encouraging earlier exploration with promising results, and multiple targets identified • HIGH QUALITY MANAGEMENT TEAM: CEO: David Scott, formerly of Barrick Gold’s subsidiary Kahama Mining Corporation, 32 years experience, 13 years in Tanzania; Chairman: Dave Anthony, former COO of African Barrick, 30 years experience, 10 years in Tanzania • EXTENSIVE ARTISANAL ACTIVITY: Over 2,000 artisanal workers, mining from over 100 mine shafts some to depths in excess of 70m along a >10km strike, extracting high grade 5 to 50 g/t material • SIGNIFICANT INITIAL DRILL RESULTS: Best intercepts include TDD0004: 3.13 g/t Au over 25.89m including 8.87 g/t Au over 3.89m; TDD0005: 10.76 g/t Au over 4.00m, including 93.3 g/t Au over 0.38m and; TRC0013: 16.10 g/t Au over 3.00m and 4.01 g/t Au over 3.00m. • SEVERAL NEAR TERM CATALYSTS: Expedited work program with significant mapping and an 87,000m drill program underway • CLEAN CAPITAL STRUCTURE AND WELL-FUNDED: Only ~40Mshares outstanding (~55M f.d.) and ~$13M in cash TSX-V: TEMApril 2012 25 www.TemboGold.com
  26. 26. Additional Info APPENDIX TSX-V: TEMApril 2012 26 www.TemboGold.com
  27. 27. Artisanal Mining FacesArtisanal mining of well developed quartz veins TSX-V: TEMApril 2012 27 www.TemboGold.com
  28. 28. Historical WorkHistoric work provides the impetus for fast track development of exploration TSX-V: TEMApril 2012 28 www.TemboGold.com
  29. 29. Bulyanhulu GeologyMineralized reefs along steeply dipping northwest striking structure• A 20 million ounce narrow-vein shear hosted gold deposit with silver and copper mineralisation• Shear zone situated within a narrow argillite unit at a contact within a volcanic sequence• Sulphide mineralization primarily pyrite and chalcopyrite in smokey quartz veins and sheared argillite• Volcanic sequence consists of mafic to intermediate meta-volcanic flows overlain by felsic pyroclastic ash tuffs• The zone strikes approximately 310 degrees and dips steeply to the northeast TSX-V: TEMApril 2012 29 www.TemboGold.com
  30. 30. Bulyanhulu Long SectionA high grade narrow vein 20Moz deposit >4km long and >2km deep TSX-V: TEMApril 2012 30 www.TemboGold.com
  31. 31. Relevance to Tembo GoldBulyanhulu structures and geology extend onto Tembo Gold project• Bulyanhulu licence not exhaustively explored• The Bulyanhulu orebody did not present a strong soil geochemistry anomaly• The entire licence is essentially covered by 5-15m of largely transported cover with no outcrop• Artisanal found the orebody by chance and had favourable access to depth at Bulyanhulu• The entire Bulyanhulu geological package, including the Reef 1 structure, and potentially 20-30 parallel structures, continue to the north and west onto Tembo TSX-V: TEMApril 2012 31 www.TemboGold.com
  32. 32. Technical & Local TeamThe Mineral Corporation hands-on team has a wealth of experience• Dr. Johan Krynauw – Senior Geological Advisor – Thirty-nine years of experience as a geologist, including base and precious metals exploration and exploration management in the Archaean terranes of Africa, with a specialisation in geochemistry.• Alan Goldsmith – Senior Geological Advisor – Twenty years of professional geological experience in base and precious metal exploration in Africa, including gold exploration in Tanzania, specializing in Geographical Information System applications and exploration.• Noleen Pauls – Senior Geological Advisor – Eighteen years of geological experience in mineral exploration and mining, including gold exploration management and execution in sub-Saharan Africa and South America.• Alan Olivato – Senior Technical Advisor – Thirty-six years of experience exploration and mining, including twenty-six years of field exploration experience in sub-Saharan Africa including Archaean gold in East and Southern Africa.• Will Braithwaite – Senior Technical Advisor – Twenty-eight years of experience in exploration in sub-Saharan Africa, South America and Australia, including gold exploration in East and West Africa.• Girma Alemu – Geologist – Nine years of experience in African base and precious metal exploration including exploration and mining expertise in Archaean gold in East Africa.• Andisani Makhado – Geologist – Three years of multi-commodity field experience in exploration including the management and execution of drilling campaigns.• Darren Portela – Geologist – Three years of multi-commodity field experience in exploration including the management and execution of drilling campaigns. TSX-V: TEMApril 2012 32 www.TemboGold.com