Kingsgate Consolidated Limited · ASX:KCN

Kingsgate Consolidated — Technical Presentation (February 2013)

41 slides from Kingsgate Consolidated's technical presentation, Feb 6, 2013

  1. Slide 1: Bowdens Silver Project Planning Focus Meeting

    Bowdens Pty Limited Bowdens Silver Project Planning Focus Meeting 6 February 2013 (Note: This presentation incorporates preliminary and conceptual plans and information which are to be reviewed/updated for incorporation in the Environmental Impact Statement for the Bowdens Silver Project) Planning F

  2. Slide 2: Project Overview

    Project Overview Bowdens Pty Limited • Major Components • Products / Product Transportation – An open cut pit – Silver/lead concentrate and zinc – Two waste rock emplacements concentrate transported by road from comprising a separate northern and processing plant to off-site processing southeastern

  3. Slide 3: Project Team – Proven Track Record

    Project Team – Proven Track Record Bowdens Pty Limited Duane Woodbury – Chief Financial Officer Bob Markovich – Project Director RW Corkery & Co – EIS Coordination Ausenco – Engineering Design Planning Focus Meeting 3

  4. Slide 4: EL Locations

    EL Locations Bowdens Pty Limited • The Site is located wholly within EL 5920(1) and within a minor section of EL 6354. • Other ELs held – 5920(2) • Exploration Programs – Current Exploration Drilling Program (not yet completed) Planning Focus Meeting 4

  5. Slide 5: Project Location

    Project Location Bowdens Pty Limited • Regional Location – 185km west of Sydney – 26km east of Mudgee – 17km northwest of Rylstone – 2km to 5.8km northeast from the Lue Village to closest disturbance area Planning Focus Meeting 5

  6. Slide 6: Project Location

    Project Location Bowdens Pty Limited • Local Setting – Open cut pit – 2.6km to Lue Village – Processing plant – 2.8km to Lue Village – Tailings storage facility – 3.5km to Lue Village Planning Focus Meeting 6

  7. Slide 7: Regional Geology

    Regional Geology Bowdens Pty Limited • Situated within the Lachlan Fold Belt on the western margin of the Sydney Basin • Mineralisation occurs within the Permian Rylstone Volcanics Planning Focus Meeting 7

  8. Slide 8: Prospect Scale Geology

    Prospect Scale Geology Bowdens Pty Limited • Primary mineralisation occurs in Pb/Zn sulphides with Fe/As being a secondary component. • Silver mineralisation occurs as flat lying zones sourced from steeply dipping fracture zones. • Bulk of the mineralisation occurs as a thick, surface / near surface

  9. Slide 9: Drilling Programs

    Drilling Programs Bowdens Pty Limited • Historic – Early exploration undertaken by CRA Exploration, Golden Shamrock Mineral Exploration and Silver Standard for a total of 395 holes resulting in 43 000m. • Current – Exploration Drilling Program – approved 172 holes for approximately 20 000m of drilli

  10. Slide 10: Geological Model

    Geological Model Bowdens Pty Limited • Current drilling program has increased the resource by 40 per cent • Mineralisation extends to a depth of at least 200m. • Depth of weathering 0m to 20m. • Mineralization is mainly structurally controlled. Planning Focus Meeting 10

  11. Slide 11: Indicative Site Layout

    Indicative Site Layout Bowdens Pty Limited • Site ~ 610ha • Key Components – Open cut pit ~ 86ha – Waste rock emplacements and “low grade” stockpile ~ 108ha – Processing plant and associated infrastructure area ~ 40ha – Tailings storage facility ~ 170ha – Miscellaneous Areas 25ha • Total Site Distur

  12. Slide 12: Indicative Open Cut Pit Design

    Indicative Open Cut Pit Design Bowdens Pty Limited • Key Considerations – Area ~ 86ha (including pit safety bunds) – Approximately 46Mt ore – Approximately 50Mt overburden – Approximate depth ~ 200m below surface level • Benches – Designed using standard slope design criteria • 20m vertical height •

  13. Slide 13: Overburden/Tailings Management

    Overburden/Tailings Management Bowdens Pty Limited • Overburden to be used for TSF and Processing Plant Area and selectively placed within the two out-of-pit waste rock emplacements • Overburden Characteristics – Comprises: • Potentially Acid Forming (PAF) material present • Studies are ongoing to d

  14. Slide 14: Processing Plant and Hardstand Area

    Processing Plant and Hardstand Area Bowdens Pty Limited • Area to include – All processing plant activities (including run of mine (ROM) pad) – Mining contractor’s compound – Area to also include workshop, switchyard and mine administration offices Planning Focus Meeting 14

  15. Slide 15: Processing Plant Operations

    Processing Plant Operations Bowdens Pty Limited • Nominal capacity of 4Mtpa producing 20 000t - 30 000t of product concentrate per annum • Proposed hours of operation – 24hrs/7days • Proposed operations comprising: – Crushing circuit – Grinding circuit – Flotation circuits Planning Focus Meeting 15

  16. Slide 16: Site Access

    Site Access Bowdens Pty Limited • The local area is serviced by the regional road, Lue Road and smaller feeder roads connecting Rylstone to the east and Mudgee to the west. • Limited upgrade works on local roads will be required. • Access currently to the Site from Lue Road, Rylstone Road and Pyangl

  17. Slide 17: Services

    Services Bowdens Pty Limited • Power – Predicted annual requirement ~ 150GW Hours – 132 kV power supply options and available easements under consideration • Water – Daily requirement ~ 6ML – Water supply options and pipeline easements currently being investigated. – Harvestable rights and groundwat

  18. Slide 18: Hours of Operation

    Hours of Operation Bowdens Pty Limited 7:00am – 6:00pm / 7 days (all activities) Construction 6:00pm – 7:00am / 7 days (inaudible activities) 7:00am – 10:00pm / 7 days (Restricted operations due to noise) Mining 10:00pm – 7:00am / 7 days (Operation at restricted depths to satisfy noise criteria) Pro

  19. Slide 19: Other Approved/Proposed Activities

    Other Approved/ Proposed Activities Bowdens Pty Limited • Cumulative Impacts with other operations/projects – Louee Motox Track (4.5km SSW of Site) – Local Dolomite Quarry (7km NW of Site) • Regional operations / projects – Charbon Coal Mine (30km SSE of Site) – Ulan Coal Mine (42km NNE of Site) – M

  20. Slide 20: Consultation

    Consultation Bowdens Pty Limited • Community Liaison Group (CLG) established in early 2012 - 3 meetings to date • Project website http://www.kingsgate.com.au/australia/ bowdens.htm – Activities – Exploration Activities and Documents – Proposed Operations – Newsletters – CLG Meeting Minutes Planning

  21. Slide 21: Existing Environmental Setting

    Bowdens Pty Limited Existing Environmental Setting Planning Focus Meeting 21

  22. Slide 22: Topography and Drainage

    Topography and Drainage Bowdens Pty Limited • Regional – Situated on the western flanks of the Great Dividing Range – Dominated by elevated rocky ridges (15-45°) and broad, flat alluvial valleys (<5°) – Two main creek systems within the regional catchment – Hawkins Creek and Lawsons Creek Planning F

  23. Slide 23: Topography and Drainage

    Topography and Drainage Bowdens Pty Limited • Site – Primarily influenced by three north- south trending spurs (770m AHD – 670m AHD) interspersed with small valleys (~600m) AHD resulting in a broad alluvial flat valley in the south (580m AHD). – All drainage lines within the Site (Blackmans Gully, P

  24. Slide 24: Climate

    Climate Bowdens Pty Limited • Climate data collected from Windamere Dam, Mudgee Airport and Lue Bureau of Meteorology stations • On-site weather station installed in May 2012 • Temperature – Mean max 14.3ºC – 30.5ºC – Mean min 1.3ºC – 15.7ºC • Rainfall and evaporation – Mean annual rainfall - 615mm

  25. Slide 25: Land Ownership

    Land Ownership Bowdens Pty Limited Planning Focus Meeting 25

  26. Slide 26: Land Ownership

    Land Ownership Bowdens Pty Limited • Majority of the land within the Site is owned by Kingsgate, under option to purchase or is currently in a sale negotiation process • Surrounding properties are either agricultural or rural lifestyle • Lue Village is located approximately 2km to 5.8km southwest of

  27. Slide 27: Environmental Aspects

    Environmental Aspects Bowdens Pty Limited The following environmental aspects are discussed further in the presentation – Aboriginal & European Heritage – Groundwater – Air Quality & Greenhouse Gases – Surface Water (including lead) – Noise – Aquatic Ecology – Socio-economic – Terrestrial Ecology –

  28. Slide 28: Aboriginal and European Heritage

    Aboriginal and European Heritage Bowdens Pty Limited • Managed by Landskape • 25 Aboriginal sites and 3 European sites identified from numerous surveys (2003-2012) – Conducted field surveys undertaken in accordance with DECCW 2010 Guidelines – Follow-up Aboriginal stakeholder consultation planned in

  29. Slide 29: Air Quality and Greenhouse Gases

    Air Quality and Greenhouse Gases Bowdens Pty Limited • Managed by ENVIRON – Background Monitoring • Deposited dust (7 sites from March 2012 – mean 0.7g/m2/month) • PM10 (1 High Vol. sampler since May 2012 – mean 9µg/m3) • 1 TEOM installed May 2012 - PM10 – Further baseline monitoring planned in Lue

  30. Slide 30: Aquatic Ecology

    Aquatic Ecology Bowdens Pty Limited • Managed by Cardno Ecology Lab – 7 aquatic fauna survey sites – 7 planned stygofauna sampling sites – Planned inspection of potential GDEs – Riparian and in-stream habitats substantially degraded – Aquatic plants and fauna dominated by pollution tolerant taxa – N

  31. Slide 31: Terrestrial Ecology

    Terrestrial Ecology Bowdens Pty Limited • Flora and Fauna managed by Geoff Cunningham Natural Resource Consultants and Biodiversity Monitoring Services respectively – Flora • Three dominant vegetation types • One Endangered Ecological Community – Fauna • Four fauna habitats comprising – 22 native ma

  32. Slide 32: Soil Resources / Land Capability / Agricultural Productivity

    Soil Resources / Land Capability / Agricultural Productivity Bowdens Pty Limited • Managed by Geoff Cunningham Natural Resource Consultants – Five distinct soil landscapes occur within the Site. Detailed investigations have commenced – Stripping of all topsoil and nominated subsoils for rehabilitati

  33. Slide 33: Groundwater

    Groundwater Bowdens Pty Limited • Managed by SKM • Three aquifer systems – Alluvial/colluvial Quaternary aquifer system – Murray Darling Basin Fractured Rock Aquifer (Rylstone Volcanics) – Murray Darling Basin Porous Rock Aquifer (Sydney Basin) • 27 monitoring bores installed in October 2012 with an

  34. Slide 34: Surface Water

    Surface Water Bowdens Pty Limited • Managed by SKM – Hawkins Creek / Lawsons Creek / Blackmans Gully / Price Creek / ephemeral drainage lines – Intermittent monitoring at 15 surface water sites between late 1990s and 2004 (LW1- LW15); additional 12 sites since April 2012 (BSW16 – BSW 27) – Streamflo

  35. Slide 35: Noise

    Noise Bowdens Pty Limited • Managed by SLR Consulting – Background noise monitoring conducted at 8 locations – Background noise generally low – RBL~ 30dB(A) consistent with rural areas – Project specific noise level~35dB(A) at most residences for most assessment periods; sleep disturbance criterion~

  36. Slide 36: Socio-economic Setting

    Socio-economic Setting Bowdens Pty Limited • Managed by HillPDA • Lue Village located 2km to 5.8km from the closest disturbance area within the Site • Regionally significant town is Mudgee located 26km west of the Site • Rural location with primary industry being the dominant employer sector • Uncha

  37. Slide 37: Transportation

    Transportation Bowdens Pty Limited • Managed by GTA Consultants • Site currently accessed from Lue Road via Pyangle Road and Maloneys (Bara) Road • Permanent relocation of sections of Maloneys (Bara) Road required (relocated road to be sealed) • Preliminary road relocation engineering studies comple

  38. Slide 38: Waste Rock Characterisation

    Waste Rock Characterisation Bowdens Pty Limited • Managed By Graeme Campbell and Associates • Waste rock to be separated into overburdan and ‘low grade ore’ • Studies currently underway to Basal Pebbly Sandstone Shoalhaven Gp determine mineralised cut-off grades • Potentially Acid-Forming (PAF) sulp

  39. Slide 39: Visibility

    Visibility Bowdens Pty Limited • Specialist Consultant to be selected • Existing visual landscape consists of rocky hills and ridges and broad flat alluvial valleys - moderate scenic quality • Majority of the Site from Lue is visually protected by Bingmans Hill • Main visual exposure is from Pyangle

  40. Slide 40: Project Timeframe

    Project Timeframe Bowdens Pty Limited Key Project Milestones Forecast Date Submission of Request for DGRs to the Department of Planning 21 December 2012 and Infrastructure Department of Planning and Infrastructure issues DGRs for EIS End February 2013 Lodgement of Mining Lease Application June 2013

  41. Slide 41: Conclusion

    Conclusion Bowdens Pty Limited • The Bowdens Silver Project will: – be professionally designed to reflect the sensitivities of the local area – employ best practice to ensure any potential negative impacts are minimized and satisfy all Government guidelines and reasonable community expectations – be

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