March Quarterly Results Presentation, April 29th 2013

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# March Quarterly Results Presentation, April 29th 2013

Source: https://www.kingsgate.com.au/wp-content/uploads/2024/07/march2013.pdf
Published: 2013-04-29T00:00:00+00:00
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# March Quarterly Results Presentation, April 29th 2013
Kingsgate Consolidated Limited
March Quarter 2013
Disclaimer
Forward Looking Statements:
These materials include forward looking statements. Forward looking statements inherently involve subjective judgment &
analysis & are subject to significant uncertainties, risks & contingencies, many of which are outside of the control of, & may be
unknown to, the company.
Actual results and developments may vary materially from that expressed in these materials. The types of uncertainties which
are relevant to the company may include, but are not limited to, commodity prices, political uncertainty, changes to the
regulatory framework which applies to the business of the company & general economic conditions. Given these uncertainties,
readers are cautioned not to place undue reliance on such forward looking statements.
Forward looking statements in these materials speak only at the date of issue. Subject to any continuing obligations under
applicable law or any relevant stock exchange listing rules, the company undertakes any obligation to publicly update or revise
any of the forward looking statements, changes in events, conditions or circumstances on which any such statement is based.
Some statements in this presentation regarding estimates or future events are forward looking statements. They involve risk
and uncertainties that could cause actual results to differ from estimated results. Forward looking statements include estimates
of future production, cash and total costs per ounce of production, reserve and mineralized material estimates, capital costs,
and other estimates or prediction of future activities. They include statements proceeded by words such as “believe,”
“estimate,” “expect,” “intend,” “will,” and similar expressions. Actual results could differ materially depending on such things
as political events, labour relations, currency fluctuations and other general economic conditions, market prices for Dominion
Mining Limited and/or Kingsgate Consolidated Limited products, timing of permits and other government approvals and
requirements, changes in operating conditions, lower than expected ore grades, unexpected ground and mining conditions,
availability and cost of materials and equipment, and risks generally inherent in the ownership and operation of mining
properties and investment in foreign countries.
March Quarter - Key Points
• Group gold production of 47,509oz at total cash cost of
US$1,051/oz.
• Chatree in line with December quarter and Challenger is
transitioning from capital development to mining of stopes.
• Reviews of project expenditure and operating plans are
underway following the recent volatility in the gold price.
• Significant exploration results at Chatree continues to
highlight the strong resource upside.
• Column leach testing commenced on-site for the potential
heap leach option at Nueva Esperanza. Resource drilling is
underway at Chimberos.
• Director General’s Requirements for the Bowdens EIS
were received from the NSW Government.
Chatree
 1,600Kt @ 0.87g/t for 30,609oz.
Operational  Plants operating at a steady 6.4Mtpa
Performance  Recovery to improve with access to
main orebody at A and Q oxide ore.
 Total cash costs US$923/oz (incl.
US$149/oz royalty).
Total Cash Costs
 Higher maintenance costs, lower
recovery and strong Thai Baht.
 Continued high grade drilling results
Future at A and H Pits and Q Prospect.
Opportunities  Initial preparations completed for
development of high grade ore at Q .
High Grade Intercepts at A Pit
Visual representation of the total gold accumulation at
Chatree from the resource modelling (gram metres)
Challenger
 136Kt @ 4.02g/t for 16,900oz
 Low equipment availability and
Production hauling waste to surface.
 Operating bias moving back towards
mining stopes from u/g development.
 Total cash costs US$1,278/oz (incl.
US$59/oz royalty).
Total cash Costs  Costs reflect the low head grade and
low production.
 Contract negotiations being finalised
Future with preferred tenderer for new
mining contract.
Opportunities
 Mine plan being reviewed.
Nueva Esperanza
 A staged project with an initial heap
leach based on Chimberos ore with
Feasibility Study conventional leaching 3 to 4 yrs later.
 Resource upgrade drilling occurring
at Chimberos.
 Column leach testing underway in
Metallurgical laboratory and on-site.
Testwork  Results expected progressively to end
of June quarter.
 EIA process completed with final
Environmental approvals anticipated by end of
Impact Assessment current quarter.
Nueva Esperanza
Bowdens
 Feasibility study moving towards
Feasibility Study completion in July.
 Geotech and sterilisation drilling re-
commenced to support mine
Fieldwork planning and pit optimisation.
 Baseline environmental monitoring
continues.
 Focus meeting completed on-site
Environmental with NSW Government departments.
Impact Statement  Director General’s Requirements for
EIS received in line with expectations.
Outlook
• Group gold production for the June quarter will be
highest quarterly production for the year.
• Capital expenditure and operating plans under review
given the volatility in gold and silver prices.
• Subject to any initiatives from the operational asset
review, group gold production guidance for FY13
maintained at 200,000 to 220,000oz
• Heap leach column leach results at Nueva Esperanza.
Upgrade to Chimberos resource.
• Completion of Bowdens feasibility study.
Environmental Impact Statement (EIS) to be
submitted in Sept. Qtr.
Kingsgate Consolidated Limited
Shares: 152 Million Market Cap: ~A$400 Million
ASX: KCN
www.kingsgate.com.au
Appendix
General Disclaimer:
The information contained in this presentation is for informational purposes only and does not constitute an offer to issue, or arrange to issue
securities or other financial products. The information contained in this presentation is not investment or financial product advice and has been
prepared without taking into account the investment objectives, financial situation or particular needs of any person. To the maximum extent
permitted by law, none of Dominion Mining Limited, Kingsgate Consolidated Limited, their respective directors, employees or agents, nor any
other person accepts any liability including without limitation any liability arising out of fault or negligence for any loss caused from the use of the
information contained in this presentation. No representation or warranty, express or implied, is given as to the accuracy, completeness or
correctness, likelihood of achievement or reasonableness of any forecasts or other forward looking statements.
Competent Persons Statements:
In this report, information concerning Thailand operations relates to Exploration Results, Mineral Resources and Ore Reserve estimates is based on
information compiled by the following Competent Persons: Ron James, Brendan Bradley and Suphanit Suphananthi who are employees of the
Kingsgate Group. All except Brendan Bradley are members of The Australasian Institute of Mining and Metallurgy; Brendan Bradley is a member
of the Australian Institute of Geoscientists. These people qualify as Competent Persons as defined in the Australasian code for Reporting of
Exploration Results, Mineral Resources and Ore Reserves (the JORC Code, 2004 edition) and possess relevant experience in relation to the
mineralisation of being reported herein as Exploration Results, Mineral resources and Ore reserves. Each Competent Person has consented to the
Public reporting of these statements and the inclusion of the material in the form and context in which it appears.
In this report, the information concerning Challenger operations that relates to Exploration Results, Mineral Resources and Ore Reserves estimates
is based on information compiled by Paul Androvic, Tim Benfield and Andrew Giles who are full-time employees of the Kingsgate Group. Paul
Androvic and Tim Benfield are members of The Australasian Institute of Mining and Metallurgy and Andrew Giles is a member of the Australian
Institute of Geoscientists. These persons have sufficient experience that is relevant to the mineralisation and type of deposit under consideration and
to the activity that they are undertaking to qualify as Competent Persons as defined in the 2004 Edition of the ‘Australasian Code for Reporting of
Exploration Results, Mineral Resources and Ore Reserves’. Paul Androvic, Tim Benfield and Andrew Giles consent to the inclusion in the report of
the matters based on their information in the form in which it appears.
The information in this report that relates to Bowdens and Nueva Esperanza Mineral Resource estimation is based on work completed by Jonathon
Abbott who is a full-time employee of MPR Geological Consultants and a member of the Australian Institute of Geoscientists and Mr Ron James. Mr
Abbott and Mr James have sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the
activity that he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of
Exploration Results, Mineral Resources and Ore Reserves’. Mr Abbott and Mr James consent to the inclusion in the report of the matters based on
his information in the form and context in which it appears.
www.kingsgate.com.au
Chatree
Chatree Ore Reserves as at 30 June 2012 (>0.3g/t gold cut-off grade)
Gold Silver Gold Silver
Grade Tonnes Grade Contained Contained AuEq
Source Category
(millions) (g/t) (g/t) (Moz) (Moz) (Moz)
From Pits Proven 46.2 0.79 7.9 1.17 11.7 1.30
Probable 16.7 0.72 5.9 0.39 3.2 0.42
Stockpiles 8.4 0.63 10.7 0.17 2.9 0.2
Chatree Total Total 71.3 0.75 7.8 1.73 17.8 1.92
Chatree Mineral Resources as at 30 June 2012 (>0.3g/t gold cut-off grade)
Gold Tonnes Silver Gold Silver AuEq
Source Category Grade Grade Contained Contained
(millions) (g/t) (g/t) (Moz) (Moz) (Moz)
From Pits Measured 86.9 0.74 7.0 2.07 19.6 2.28
Indicated 50.7 0.67 4.8 1.09 7.8 1.18
Inferred 31.2 0.65 4.3 0.65 4.3 0.70
Chatree Total Total 168.8 0.70 5.8 3.81 31.7 4.16
Competent Persons Statement. Information in this presentation relates to Exploration Results, Mineral Resource and Ore Reserve estimates based on information compiled by the following Competent Persons: Ron James,
Brendan Bradley and Suphanit Suphananthi who are employees of the Kingsgate Group and members of The Australasian Institute of Mining and Metallurgy and Rob Spiers who is an employee of Hellman & Schofield Pty
Ltd and along with Brendan Bradley are members of The Australian Institute of Geoscientists. These people qualify as Competent Persons as defined in the Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves (the JORC Code, 2004 edition) and possess relevant experience in relation to the mineralisation being reported herein as Exploration Results, Mineral Resources and Ore Reserves. Each Competent
Person has consented to the Public Reporting of these statements and the inclusion of the material in the form and context in which it appears.
Challenger
Challenger Ore Reserves as at 30 June 2012
Tonnes Gold Gold
Source Category Grade Contained
(million) (g/t) (‘000 oz)
From Mine Proven 0.64 4.32 90
Probable 2.61 6.61 550
Challenger Total Total 3.25 6.16 640
Challenger Mineral Resources as at 30 June 2012
Tonnes Gold Gold
Source Category Grade Contained
(million) (g/t) (‘000 oz)
From Mine Measured 1.15 3.56 130
Indicated 2.55 7.80 640
Inferred 1.31 7.46 310
Challenger Total Total 5.01 6.74 1,090
Competent Persons Statement. The information in this presentation that relates to

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