2. DISCLAIMER
Disclaimer
This presentation has been prepared and issued by KBL Mining Limited (“the Company”). It contains general information about the Company’s activities current
as 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
(nor taken 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 of the presentation should observe any such restrictions on the distribution of this presentation and warrants to the Company that the receipt of the
presentation is not unlawful. 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 as an 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 are
reasonable, 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, no responsibility 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 from this presentation whether arising out of negligence or otherwise is accepted. An investment in the shares of the Company is to be considered
highly speculative.
Confidentiality
The 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, or discuss it with, any other person without the prior permission of the Company.
Competent Persons Statement
The information in the Presentation that relates to Exploration Results, Mineral Resources and Reserves has been compiled by Mr Stuart Mathews, MSc (Hons),
who is a Member of 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 of mineralisation 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 of the Australasian Code for Reporting of Exploration Results, Minerals Resources and Ore Reserves. Mr Mathews consents to the inclusion in
the Presentation of the matters 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 the
Australasian 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 of the Australian Institute of Geoscientists) in relation to the Sorby Hills, Manbarrum and Constance Range projects. Each of these persons has
sufficient experience that is relevant 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 defined in the 2004 edition of the Australasian Code for Reporting of Exploration Results, Minerals Resources and Ore
Reserves. Further, each of these persons consents to the inclusion in the Presentation of the matters based on his information in the form and context that the
information appears.
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3. DIVERSIFIED ASSET BASE
Sorby Hills (WA) Ag, Pb, Zn
Commence production at 500,000tpa in 2013
Status Feasibility
KBL Ownership 75%
Target Mine Life 10+ years
Current Resources 16.7 million tonnes
(containing) 28m oz Ag
750,000t Pb
117,000t Zn
Manbarrum (NT) Ag, Pb, Zn
Extension to Sorby Hills mine life Constance Range (QLD) Fe
Status Pre-Feasibility 1-2mtpa Direct Shipping Ore scoping study
Status Scoping Study
KBL Ownership earning 51%
KBL Ownership 30%
Current Resources 32.4 million tonnes
Target Mine Life 10+ years
(containing) 10m oz Ag
Current Resources 296 million tonnes
410,000t Zn
(containing) 157.2m t Fe
113,000t Pb
*Resources for KBL are broken down by grade, tonnes and category in the Appendix 3
5. MINERAL HILL
• 100% KBL owned
• 5.2 Mt Resources
– 61,000t Cu 220,000oz Au
– 6.1m oz Ag 83,000t Pb 50,000t Zn
• Life of Mine : 10+ years
• CAPEX
– Expand mill, gold circuit, SOZ/ESOZ
refurbishment, Pearse Open Cut,
Pb/Zn circuit
• Replacement Value: $150m
ESOZ
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6. OPERATION SUMMARY
• 2011-12:
• Parkers Hill Deposit
• 11,000 DMT of copper
concentrate produced since
November 2011
– 2,500t contained copper
– 800oz Au & 40,000oz Ag
• 2013:
• Pearse Open Cut
• SOZ/ESOZ Underground
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7. UNDERGROUND DEPOSIT PLAN
DECLINE FROM
100M FROM SURFACE
EASTERN PIT
PARKERS HILL
150M FROM SURFACE
SOZ
EXISTING
ACCESS
ESOZ
MINERAL HILL UNDERGROUND OBLIQUE
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8. DEPOSIT PIPELINE
Exploration / Feasibility Construction / Operating
Concept Studies Refurbishment assets
Parkers Hill
ESOZ/SOZ
Parkers Hill repeat? ESOZ SOZ U/G
Deeps (CMHDD001)
Underground
Mt Pearse Open Cut
Marshall North
Pearse
Parkers Hill Cu
Iron Duke
Open Cut Legend: Au/Ag
Cu/Au
Cu/Ag/Pb
Ag/Pb/Zn
9. UNDERGROUND CASH COSTS
FURTHER REDUCTIONS
• Au/Ag bullion from Pearse
• Cost allocation between open cut / underground operations
• Pb/Zn credit 9
10. PEARSE – Au/Ag Open Cut
Pearse Open Cut - Gold/Silver dore
Commence 1Q CY13
Life of Mine 2-2.5 years
Mining Rate 100 ktpa
Grade Au 7 g/t
Grade Ag 72 g/t
Recovery Au 90% (was 70-80%)
Recovery Ag 75% (was 50%)
Gold Production 20,000 ozpa
Silver Production 165,000 ozpa
Pearse development is subject to mill
expansion, re-installation of CIL circuit,
metallurgical recovery confirmation
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11. REGIONAL - IRON DUKE
50km from Mineral Hill, a 2km long Cu/Au Strike Zone/Anomaly
Shallow Open Pit Copper Gold potential.
6km
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12. SORBY HILLS
• 75% KBL, 25% Henan Yuguang Gold
& Lead 50km to Kununurra, 170km to Port
• Largest undeveloped, near surface
Ag-Pb deposit in Australia
• 16.7mt of Resources, containing
– 28m oz Ag
– 750,000t Pb
– 117,000t Zn SORBY HILLS
• Life of Mine: 10+ years
• Awaiting final approvals
• Stage 1 (FY14)
– 500ktpa
– Central 1km of 12km Resource
– CAPEX: $80-$100m to first ore
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16. EXPERIENCED MANAGEMENT
Jim Wall Steve Lonergan Trangie Johnston Stuart Mathews
Executive Chairman Executive Director/Co. Sec. Chief Executive Officer Chief Operating Officer
B Eng (UWA) LLB (Hons), LLM. BSc (Hons) (U.Newcastle), M Econ MSc (Geology)
Geol (U.Tasmania) Mr Mathews has 23 years of geology, mining, and
Mr Wall has been Managing Mr Lonergan is a commercial project development experience both in
Mr Johnston has over 15 years Australia and internationally including project
Director of Nicron Resources lawyer based in Sydney with
Limited, Executive Director of experience in the mineral development through to production at the large
Aztec Mining Company Limited more than 30 years experience exploration and mining industry Palmarejo Silver and Gold Mine in Mexico and
and Managing Director of in the Australian and across a wide range of deposit the Cowal Gold Mine in NSW, Australia.
Savage Resources Limited, international mining industry. types and tectonic settings from
during which time its market Stuart Mathews was previously a Vice President
capitalisation on ASX increased Australia, New Zealand, Saudi at Coeur D’Alene Mines Corporation.
by 40 times to over $600 He has been General Counsel of Arabia, southern Africa and
million. Pancontinental Mining Group, a central South America. His prior experience includes management roles
partner at Baker & McKenzie at gold and base metals mines in Western
He is a fellow of the Australian Sydney, General Counsel and Mr Johnston has developed a Australia, New South Wales, Queensland and
Institute of Mining and scale-independent approach to
New Zealand.
Metallurgy and is the former Company Secretary of Savage
Executive Chairman of CBH Resources Limited and General the analysis of structural geology
Resources Limited, retiring in
March 2009.
Counsel and Company facilitating in target generation Ed Newman
Secretary of CBH Resources and resource definition for a General Manager, Projects
Limited. range of deposits types including
He was most recently a porphyry, high/low sulphidation
non‐executive director of Mr. Newman has over 33 years experience in
epithermal, IOCG, SEDEX, VHMS, the mining and exploration industry. He has
Ferraus Limited, and has Directorships of other listed
previously been a director of orogenic gold (brittle to ductile held positions as chemist and manager of an
companies in the last 3 years:
other listed companies, such as systems), uranium and rare- analytical services laboratory as well as being
Emperor Mines Limited and Paradigm Metals Limited and
element pegmatites. involved in feasibility studies, design,
BMA Gold Limited. Finders Resources Limited. construction and commissioning of several
mining and processing operations in Australia
and Papua New Guinea.
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