Dragon Mining A Growing Nordic Gold Producer. RMG Helsinki Mining Summit October 2012

Transcription

1 Dragon Mining A Growing Nordic Gold Producer RMG Helsinki Mining Summit October 2012

2 Disclaimer The purpose of this presentation is to provide general information about Dragon Mining Limited (the "Company"). Unless otherwise stated herein, the information in this presentation is based on the Company's own information and estimates. This presentation does not constitute or form any part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any securities in the Company nor shall it or any part of it, or the fact of its distribution, form the basis of, or be relied on in connection with, any contract or commitment or investment decision relating to any securities in the Company. Any decision regarding any proposed subscription for securities in the Company must be made solely on the basis of information on the Company that is publicly available. Certain statements in the presentation are or may be forward-looking statements and represent the Company s intentions, projections, expectations or beliefs concerning, among other things, future operating results and various components thereof or the Company s future economic performance. These forward looking statements speak, and the presentation generally speaks, only at the date hereof. The projections, estimates and beliefs contained in such forward looking statements necessarily involve known and unknown risks and uncertainties which may cause the Company s actual performance and financial results in future periods to differ materially from any express or implied estimates or projections. No representation or warranty, express or implied, is made by the Company that the material contained in this presentation will be achieved or prove to be correct. Except for statutory liability which cannot be excluded, each of the Company, its officers, employees and advisers expressly disclaims any responsibility for the accuracy, fairness, sufficiency or completeness of the material contained in this presentation, or any opinions or beliefs contained in this document, and excludes all liability whatsoever (including in negligence) for any loss or damage which may be suffered by any person as a consequence of any information in this presentation or any error or omission there from. The Company is under no obligation to update or keep current the information contained in this presentation or to correct any inaccuracy or omission which may become apparent, or to furnish any person with any further information. Any opinions expressed in the presentation are subject to change without notice. All persons should seek appropriate professional advice in reviewing or considering the presentation and all other information with respect to the Company and evaluating the business, financial performance and operations of the Company. The presentation does not purport to contain all of the information that may be required to evaluate all of the factors that would be relevant in determining whether to deal in the Company's securities, including but not limited to any person's objectives, financial situation or needs. Each person should make, and will be taken to have made, its own investigation, assessment and analysis of the information in this presentation and other matters that may be relevant to it considering whether to deal in the Company's securities. This presentation is not for distribution in, nor does it constitute an offer of securities for sale Australia, Europe, Canada, Japan, or in any jurisdiction where such distribution or offer is unlawful. Neither this presentation nor a copy of the presentation can be taken or transmitted into the United States of America, its territories or possessions, or distributed, directly or indirectly, in the United States of America, it territories or possessions or to any US person as defined in Regulation S under the US Securities Act 1933, as amended (the Securities Act ). Any failure to comply with this restriction may constitute a violation of United States securities laws. The presentation and any oral statements made in connection with it are not an offer of securities for sale in the United States. The Company s shares have not and will not be registered under the Securities Act and may not be offered or sold in the United States or to or for the account or benefit of US persons (as such terms are defined in Regulation S under the Securities Act) except pursuant to an exemption from such registration. The distribution of the presentation in other jurisdictions may be restricted by law and persons into whose possession this document comes should inform themselves about and observe any such restrictions. 2

3 Notations The information in this presentation that relates to exploration targets are conceptual in nature, where there has been insufficient exploration to determine the full extent of the Mineral Resource and it is uncertain if further exploration will result in the expansion of the Mineral Resource. The information on exploration targets in this presentation are based on a conceptual range of targets as follows: Kuusamo Mine Tonnage range: Grade range: Ounces: 4,750,000 tonnes to 6,100,000 tonnes 4.7 g/t gold to 5.5 g/t gold 720,000 ounces to 1,070,000 ounces Comprising : Juomasuo Tonnage range: Grade range: Ounces: 4,000,000 tonnes to 4,500,000 tonnes 4.5 g/t gold to 5.5 g/t gold 600,000 ounces to 800,000 ounces Hangaslampi Tonnage range: Grade range: Ounces: 350,000 tonnes to 600,000 tonnes 6.0 g/t gold to 6.5 g/t gold 70,000 ounces to 120,000 ounces Pohjasvaara & Others Tonnage range: Grade range: Ounces: 400,000 tonnes to 1,000,000 tonnes 3.5 g/t gold to 4.5 g/t gold 50,000 ounces to 150,000 ounces The information in this presentation that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr Neale Edwards BSc (Hons), a Fellow of the Australian Institute of Geoscientists. Mr Edwards is a full time employee of Dragon Mining Limited and has sufficient experience which is relevant to the style of mineralization and type of deposit under consideration and to the activity which he is undertaking to qualify as Competent Person as defined in the 2004 Edition of the Australasian Code of Reporting for Exploration Results, Mineral Resources and Ore Reserves. Mr Neale Edwards consents to the inclusion in this presentation of the matters based on his information in the form and context in which it appears. 3

4 Corporate Overview Issued Capital Ordinary Shares 88.8m Options ($1.00 $2.10) 2.75m Market Cap (9 Oct 2012) A$68m Largest Shareholders Eurogold 24.4% Nicolas Mathys 17.2% Phoenix Fund 5.3% Outokumpu Oy 3.8% Board of Directors Peter Cordin Kjell Larsson Peter Gunzburg Christian Russenberger Tapani Järvinen Markku Mäkelä Chairman Managing Director Non Executive Director Non Executive Director Non Executive Director Non Executive Director 4

5 Established Nordic Gold Producer Production Svartliden, Sweden and Vammala, Finland production centres 2011 actual production 54,791 ounces at C1 cash cost of US$1,014/oz 2012 forecast production of 58,000 ounces at C1 cash cost of US$998/oz Development Kuusamo Mine, Finland Game Changer Kuusamo Exploration Province, Finland Under explored gold province 966km 2 of highly prospective ground High quality, high grade resource base 5

6 Management Team Dragon Mining has a management team and Board with extensive experience in Nordic operations International, highly experienced Board, including respected Finnish Directors Swedish Managing Director with 30 years mining experience, mostly in Nordic countries 6

7 Delivery Capability Dragon Mining has successfully developed a number of projects into production in the Nordic Region Svartliden: Developed open pit and underground mine Vammala Production Centre: Acquired plant and developed two ore sources, Jokisivu and Orivesi Dragon Mining has also unlocked value in the Hahnimaa Gold Project, Northern Finland Highly prospective joint venture with Agnico Eagle. Agnico Eagle to earn 70% interest with the staged expenditure of 9 million over 6 years. 7

8 Svartliden Production Centre Northern Sweden Developed by Dragon Mining First production in ,746 ounces produced to 30 June

9 Vammala Production Centre Southern Finland Orivesi Gold Mine Jokisivu Gold Mine Vammala Production Centre acquired from Outokumpu in 2003 Total gold production since 2007 is 141,330 ounces On target to process primarily production ore in

10 Kuusamo Mine Kuusamo North 700km north east of Helsinki Serviced with daily flights from Helsinki Linked to major Finnish cities through extensive all-weather road network Kuusamo Mine Excellent infrastructure Potential local workforce 10

11 Kuusamo Mine Kuusamo North Expected production in 2018 Potential for 1 million ounces* Existing high quality, high grade Mineral Resource base of: 388, g/t gold 80% Indicated Bonanza intercepts g/t gold g/t gold g/t gold g/t gold g/t gold Cash costs for Kuusamo Mine expected to range between US$600 to US$800/oz * Refer to Slide Notations: In Summary: 4,750,000 tonnes to 6,100,000 tonnes; Grade range: 4.7 g/t gold to 5.5 g/t gold; Ounces: 720,000 ounces to 1,070,000 ounces 11

12 Kuusamo Exploration Province Holding of 966km² Controlling position in an exciting new gold province Core holding encompasses 30 km of primary host rock sequence Exploration pipeline of geophysical, geochemical and geological targets 12

13 Kuusamo - Summary Kuusamo is one the most prospective, under explored gold regions in Europe Potential for a million ounce* gold camp at the Kuusamo Mine, expecting first production in 2018 Close consultation with local and state agencies is underway to manage the environmental impact. Excellent potential for additional discoveries in the largely unexplored Kuusamo Exploration Province * Refer to Slide Notations: In Summary: 4,750,000 tonnes to 6,100,000 tonnes; Grade range: 4.7 g/t gold to 5.5 g/t gold; Ounces: 720,000 ounces to 1,070,000 ounces 13

14 Why Dragon Mining? Low Sovereign Risk Two established and profitable production centres Group mineral resource base of 1.1 million ounces Advancing the Kuusamo Mine towards development Excellent growth potential in the Kuusamo Exploration Province Demonstrated ability to deliver 14

15 APPENDIX RESERVE AND RESOURCE STATEMENT 15

16 Appendix Group Mineral Resources - Gold Measured Indicated Inferred Total Tonnes Gold (g/t) Ounces Tonnes Gold (g/t) Ounces Tonnes Gold (g/t) Ounces Tonnes Gold (g/t) Ounces Svartliden (31 Dec 11) 147, , , ,000 62, ,300 1,206, ,100 Vammala (See Below) 311, ,900 1,232, ,700 1,426, ,000 2,970, ,700 Kuusamo (31 Aug 12) 1,907, ,400 1,523, ,900 3,430, ,300 Group Total 459, ,700 4,136, ,100 3,011, ,200 7,607, ,144,100 Vammala Jokisivu Gold Mine: Kujankallio - 31 December 2011; Arpola - 31 December Orivesi Gold Mine: Sarvisuo 31 December 2011; Kutema above 720m level 31 December 2011; Kutema below 720m level 30 June Kaapelinkulma Gold Project: North and South 31 December

17 Appendix Kuusamo Mineral Resource 31 August 2012 Measured Indicated Inferred Total Tonnes Gold (g/t) Ounces Tonnes Gold (g/t) Ounces Tonnes Gold (g/t) Ounces Tonnes Gold (g/t) Ounces Kuusamo Mine Kuusamo North Juomasuo 1,424, , , ,000 1,955, ,600 Hangaslampi 341, ,500 62, , , ,100 Pohjasvaara 81, ,600 49, , , ,600 Total 1,846, , , ,600 2,488, ,300 Kuusamo Exploration Province Kuusamo South Meurastuksenaho 61, , , , , ,500 Sivakkaharju 50, ,500 50, ,500 Total 61, , , , , ,000 Kuusamo Total 1,907, ,400 1,523, ,900 3,430, ,300 17

18 APPENDIX KUUSAMO MINE 18

19 Kuusamo Mine Status Mineral Resources 582 holes, 70,880 metres completed High quality, high grade Mineral Resource base: 388, g/t gold 80% Indicated Excellent potential for resource growth at known deposits and through new discoveries 19

20 Kuusamo Mine Juomasuo Deposit 1,955, g/t gold (305,600 ounces) 1,900 OVM (Ounces per vertical metre) to 140 metres depth 383 diamond drill holes for 51,857 metres Bonanza intercepts: g/t gold g/t gold g/t gold g/t gold g/t gold g/t gold g/t gold Identified lodes open along strike and depth 20

21 Kuusamo Mine Hangaslampi Deposit 403, g/t gold (66,100 ounces) Majority of resource within 80 metres of surface 155 diamond core drill holes for 14, metres. Exceptional intercepts: g/t gold 5.78 g/t gold 7.00 g/t gold g/t gold g/t gold Further potential along strike and with depth 21

22 Kuusamo Mine Pohjasvaara Deposit 130, g/t gold (16,600 ounces) 44 diamond core drill holes for 4, metres. Encouraging intercepts: 8.37 g/t gold 5.09 g/t gold 7.12 g/t gold g/t gold g/t gold Further potential along strike and with depth 22

23 Metallurgy Kuusamo Mine Status Development Preliminary metallurgical test work has demonstrated material is amenable to conventional comminution followed by flotation and gravity processes with good gold recoveries A preliminary flow sheet has been developed that will support capital and operating cost estimates for the processing of the material Mining Preliminary optimisation studies indicate that each of the deposits is amenable to open pit mining Environmental Environment Impact Assessment advancing, baseline studies completed Finalisation pending results from metallurgical test work 23

24 APPENDIX KUUSAMO EXPLORATION PROVINCE 24

25 Kuusamo Exploration Province Location 700km north east of Helsinki Serviced with daily flights from Helsinki Linked to major Finnish cities through extensive all-weather road network Excellent infrastructure Potential local workforce 25

26 Kuusamo Exploration Province Kuusamo North Exploration focus since November holes, 42, metres completed Kuusamo Mine Detailed VTEM and magnetic heli-borne geophysical survey completed Excellent potential for resource growth at known deposits Highly prospective for new discoveries 26

27 Kuusamo Exploration Province Kuusamo South Mineral Resource base of 78, g/t gold from two deposits Series of early stage targets that have yielded strong intercepts from limited historic drilling Detailed VTEM and magnetic heli-borne geophysical survey completed Excellent potential for new discoveries Up to 29.5 g/t Au g/t Au g/t Au 6.00 g/t Au 3.30 g/t Au 27

28 Kuusamo Exploration Province Kuusamo Northwest & Kuusamo West Reservation Areas, granted and applications Covers portion of the northerly extensions of the Kuusamo Schist Belt Under-explored terrain Ongoing review of historic databases identifying pathfinders for gold and cobalt mineralisation 28

29 APPENDIX CORPORATE AND ADDITIONAL INFORMATION 29

30 Dragon Delivery Capability Dragon Mining has successfully developed a number of projects into production in the Nordic Region Svartliden: Developed open pit and underground mine Vammala Production Centre : Acquired plant and developed two ore sources, Jokisivu and Orivesi Dragon Mining also unlocked value in the Hahnimaa Gold Project, Northern Finland Highly prospective joint venture with Agnico Eagle. Agnico Eagle to earn 70% interest with the staged expenditure of 9 million over 6 years. 30

31 Management Team Dragon has a management team and Board with extensive experience in Nordic operations International, highly experienced Board, including respected Finnish Directors Swedish Managing Director with 30 years mining experience, mostly in Nordic countries 31

32 Funding Dragon Mining is listed on the ASX (DRA) Existing production centres at Vammala and Svartliden will provide cashflows for at least the next 5 years Longer term, potential for revenue stream from the Hahnimaa Joint Venture 32

33 Operating in Nordic Regions Low sovereign risk Long history of mining No mining royalties Low corporate tax rate (Sweden % Finland %) Major mining, smelting and mining equipment industry Finland rated best country for mining investment - ResourceStocks 2011 World Risk Survey 33

34 Corporate Overview Issued Capital Ordinary Shares 88.8m Options ($1.00 $2.10) 2.75m Market Cap (9 Oct 2012) A$68m Largest Shareholders Eurogold 24.4% Nicolas Mathys 17.2% Phoenix Fund 5.3% Outokumpu Oy 3.8% Board of Directors Peter Cordin Kjell Larsson Peter Gunzburg Christian Russenberger Tapani Järvinen Markku Mäkelä Chairman Managing Director Non Executive Director Non Executive Director Non Executive Director Non Executive Director 34