Dragon Mining Limited · HKEX:1712
Dragon Mining — Non-Deal Roadshow (September 2009)
32 slides from Dragon Mining's roadshow presentation, Sep 7, 2009
Slide 1: ASX Announcement: Company Presentation
ASX ANNOUNCEMENT 07 SEPTEMBER 2009 COMPANY PRESENTATION The executives of the Company are conducting a road show to brokers and investors in the Eastern States this week. Please find attached the presentation that will be used. For and on behalf of Dragon Mining Limited Peter G Cordin Managing Direc
Slide 2: Dragon Mining Limited Investor Presentation September 2009
DRAGON MINING LIMITED Investor Presentation September 2009 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 Member of the Australian Institute of Geoscientists who is full ti
Slide 3: Disclaimer
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 p
Slide 4: Highlights
Highlights • Established Scandinavian gold producer from two production centres. • Targeting 80,000 ounces in 2009. • Looking for growth in 2010. • June 2009 quarter cash cost of $US580/oz. • Cash and Bullion $14.7m (June 2009). • Unhedged from August 2009. • Mine life extensions.
Slide 5: Improving Performance
Improving Performance Cash Cost versus Realised Gold Price Gold Production 1,000 120 900 800 100 700 80 (Gold Kozs) 600 US$/oz 500 60 400 40 300 200 20 100 0 0 2006a 2007a 2008a 2009e 2010e 2006a 2007a 2008a 2009e 2010e Realised Gold Price Cash Cost Annual Gold Production Production rising, margin i
Slide 6: Gold Resource Inventory
Gold Resource Inventory August 2009 Project Tonnes Gold (g/t) Gold (ounces) Svartliden 1,606,400 3.0 155,900 Vammala 2,939,800 6.1 578,500 Kuusamo 1,349,000 4.1 178,800 Zara JV* 1,008,000 5.8 188,000 GROUP TOTAL 6,903,200 5.0 1,101,200 * 20% interest Refer to Appendix for breakdown of resource categ
Slide 7: Corporate Overview
Corporate Overview Issued Capital • Fully Paid Ordinary Shares 737.3m • Options (exercise prices 14c – 21c) 13.4m • Convertible Notes (Feb 2011) 13.8m • Market Capitalisation (Sep 2009) $57.0m Substantial Shareholders • Nicolas Mathys 130.4m 17.65% Cash & Receivables (30 June 2009) • Cash & Bullion
Slide 8: Corporate Overview: Directors
Corporate Overview Dragon Mining Limited - Directors Andrew Daley Mr Daley was appointed as a Non‐Executive Director on 2 March 2005 and Non‐Executive Chairman on 20 March 2006. He is Non-Executive Chairman a mining engineer and worked initially for Anglo American and Rio Tinto in Africa before movi
Slide 9: Scandinavian Producer
Scandinavian Producer Svartliden Gold Mine • 40,000 ounces per annum Vammala Production Centre • Orivesi 32,000 ounces • Jokisivu 8,000 ounces • Kaapelinkulma Advanced gold project Kuusamo • Development project Hanhimaa • Exploration project Produce 80,000 oz in 2009
Slide 10: Svartliden Gold Mine
Svartliden Gold Mine Project Location • Dragon’s cash engine • 2009 June quarter cash operating margin US$325/oz
Slide 11: Svartliden Gold Mine
Svartliden Gold Mine Transitioning from open pit to underground in 2010-2011
Slide 12: Svartliden Gold Mine
Svartliden Gold Mine Statistics to 30 June 2009 Project to Date June 2009 Quarter Ore Processed 1,308,806 t 87,178 t Head Grade 5.02 g/t 4.10 g/t Recovery 90.86 % 88.80 % Gold Produced 191,774 oz 10,098 oz • June quarter cash cost US$520 1% 9% 35% Mining • June quarter selling price US$845 Crushing
Slide 13: Svartliden Gold Mine: Mine Life Extension
Svartliden Gold Mine Mine Life extension
Slide 14: Conceptual Underground Development
Svartliden Gold Mine Conceptual Underground Development • 1 km underground exploration decline. • 100,000 tonne test mining. Mineralisation Open along strike Mineralisation Open at Depth
Slide 15: Regional Exploration Permits
Svartliden Gold Mine Regional Exploration Permits • 214.1 square km of Exploration Permits within 35km of Svartliden. • 50 kilometres strike length of prospective sedimentary-volcanic sequences, similar to those that host mineralisation at Svartliden. • Identification of 30 regional prospects from d
Slide 16: Mine Corridor – Svartliden West
Svartliden Gold Mine Mine Corridor – Svartliden West • Svartliden West area incorporates the immediate westerly strike extensions of Svartliden host sequence. • Results returned low level gold anomalism, defining distinct geochemical trends up to 1,000 metres along strike. • Trenching and bedrock dr
Slide 17: Finland
Finland TEPASTO SVARTLIDEN SWEDEN STOCKHOLM FINLAND SUKSETON HANHIMAA KUUSAMO ORIVESI VAMMALA JOKISIVU KAAPELINKULMA RITAKALLIO
Slide 18: Southern Finland: Mines and Advanced Projects
Southern Finland Mines and Advanced Projects
Slide 19: Finnish Operations
Finnish Operations Orivesi Gold Mine Vammala Production Centre • Central processing hub
Slide 20: Orivesi Gold Mine
Orivesi Gold Mine Statistics to 30 June 2009 Project to Date June 2009 Quarter Ore Processed 344,396 t 52,911 t Head Grade 6.34 g/t 6.60 g/t Recovery 83.80 % 84.10 % Gold Produced 58,801 oz 9,437oz 3% • June quarter cash cost US$648 21% Mining • June quarter selling price US$912 Transport Milling 54
Slide 21: Orivesi Gold Mine Reserves and Resources
Orivesi Gold Mine Reserves Probable – 123,300 t @ 7.6 g/t Au 31,100 ounces Resources (Inclusive of Reserves) Measured 79,500 t @ 6.9 g/t Au Indicated 180,000 t @ 6.0 g/t Au Inferred 54,600 t @ 7.2 g/t Au Total 314,100 t @ 6.4 g/t Au 64,900 ounces Kutema Deeps Resources Indicated 310,400 t @ 5.1 g/t
Slide 22: Jokisivu Gold Mine
Jokisivu Gold Mine • Resource of 1,567,000t at 6.46 g/t - 324,000 oz. • Dragon Mining’s third operating mine. • Decline development to follow open cut. • Excellent exploration potential. • Produce 8,000 ounces in 2009
Slide 23: Jokisivu Underground Potential
Jokisivu Gold Mine Underground Potential • Resource to 440 metres • Mineralisation to 525 metres
Slide 24: Production Project Pipeline
Production Project Pipeline 2009 2010 2011 2012 Svartliden 40,000 40,000 40,000 40,000 Orivesi 32,000 30,000 30,000 30,000 Jokisivu 8,000 10,000 20,000 30,000 TOTAL 80,000 80,000 90,000 100,000 █ Reserves (oz) Other Development Projects • Kaapelinkulma █ Resources (oz) • Kuusamo
Slide 25: Peer Comparison A$/oz
Peer Comparison Junior Underground Miners EV/Resource oz 400 350 300 250 A$/oz 200 150 100 50 - Avoca Dominon Medusa Beaconsfield Intrepid Silver Lake Apex Dragon Dioro Source: Martin Pyle Consulting, 2009 Company presentations.
Slide 26: Peer Comparison: Cash Margin and Total Margin
Peer Comparison Junior Underground Miners Cash Margin & Total Cost Margin/oz 1,000 900 800 700 600 A$/oz 500 400 300 200 100 - Medusa Avoca Intrepid Dominon Dragon Silver Lake Beaconsfield Dioro Apex Cash Margin Total Margin Source: Martin Pyle Consulting, 2009 Company presentations.
Slide 27: Overview
Overview • Svartliden and Vammala production centres • Strong potential to increase near mine reserves • Jokisivu mine commenced • Large resource inventory • Excellent exploration potential • Unhedged gold producer
Slide 28: Appendices: Gold Resource Inventory
Appendices Gold Resource Inventory as at 1 August 2009 Project Tonnes Gold (g/t) Gold (ounces) SVARTLIDEN Measured 171,700 3.3 18,500 Indicated 1,154,700 2.9 108,100 Inferred 280,000 3.3 29,300 Total 1,606,400 3.0 155,900 VAMMALA Measured 167,500 6.7 36,000 Indicated 1,296,700 5.7 238,900 Inferred 1
Slide 29: Kaapelinkulma Gold Project
Kaapelinkulma Gold Project • Resource of 161,000t at 6.2 g/t - 32,000 oz • Significant intercepts: 9.95m at 46.28 g/t gold from 67.10m 4.55 m at 13.80g/t gold from 13.80m
Slide 30: Hanhimaa
Hanhimaa • Gold mineralisation within strongly altered shear zone. • Aggressive exploration program included regional geochem sampling, trench sampling and diamond drilling. • The Kiimakuusikko area located approximately four kilometres south of the Kiimalaki-Kellolaki prospects and is the third sig
Slide 31: Hanhimaa: Geological Results
Hanhimaa Geological Results
Slide 32: Eritrea: Zara Joint Venture
Eritrea Zara Joint Venture – DRA 20 percent interest • 944,000 ounces (5.04 million tonnes at 5.8 g/t gold) indicated and inferred resource. • Chalice Gold to advance the project and complete Feasibility Study.