Dragon Mining Limited · HKEX:1712
Dragon Mining — Investor Presentation (March 2011)
31 slides from Dragon Mining's investor presentation, March 2011
Slide 1: Dragon Mining Limited – Investing in the Future
DRAGON MINING LIMITED Investing in the Future March 2011
Slide 2: 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 3: Scandinavian Gold Producer
Scandinavian Gold Producer Svartliden Gold Mine (80%) • 40,000 ounces • Cash cost US$625 Vammala Production Centre • 30,000 ounces • Cash cost US$750 Growing Pipeline of Opportunities • Kuusamo Gold Project Strong Financial Position (31 Dec 10) • $29.6m of liquid assets • No debt • 2.3m Chalice shar
Slide 4: Recent Highlights
Recent Highlights 2010 gross profit from operations of $35.0m Debt free from October 2010 Gold Resources exceed 1.1m ounces Production from Sweden extended into 2014 Decline development at two mines in Finland First drilling results from the Kuusamo Gold Project
Slide 5: Corporate Overview
Corporate Overview Issued Capital 6 Month Share Price Performance 2.00 1.90 Ordinary Shares 73.8m 1.80 1.70 1.60 1.50 Options ($1.40 – $2.10) 1.0m 1.40 1.30 1.20 Market Cap A$100m 1.10 1.00 Board of Directors Peter Cordin Executive Chairman Michael Naylor Finance Director Substantial Shareholders Pe
Slide 6: Scandinavia
Scandinavia Low sovereign risk Long history of mining No mining royalties Low corporate tax rate Sweden - 26.3% Finland - 26.0% Major mining, smelting and mining equipment industry
Slide 7: Svartliden Gold Mine – Location
Svartliden Gold Mine Location Production, Cashflow, Growth
Slide 8: Svartliden Gold Mine
Svartliden Gold Mine Statistics to 31 December 2010 2010 To Date Ore Processed 336,197 t 1,823,865 t Average Head Grade 4.06 g/t 4.76 g/t Average Recovery 91.40 % 90.61 % Gold Produced 40,135 oz 251,036 oz • 2010 Cash Cost US$625 • 2010 Selling Price US$1,218 • Produce 35,000 ounces in 2011
Slide 9: Svartliden – Expand Open Pit and Transition Underground in 2011
Svartliden Gold Mine Expand Open Pit and Transition Underground in 2011
Slide 10: Svartliden – Increase Mine Life
Svartliden Gold Mine Increase Mine Life
Slide 11: Svartliden – Growth Opportunities
Svartliden Gold Mine Growth Opportunities • Potential to host a number of gold deposits • Extensive coverage by detailed airborne geophysics and regional geochemistry, identifying >30 areas of interest • Detailed geochemistry across four high priority prospects returned very encouraging results • Ha
Slide 12: Southern Finland – Location
Southern Finland Location Production, Cashflow, Growth
Slide 13: Vammala Production Centre
Vammala Production Centre Statistics to 31 December 2010 2010 To Date Ore Processed 239,552 t 677,296 t Average Head Grade 4.71 g/t 5.57 g/t Average Recovery 86.87 % 84.16 % Gold Produced 31,463 oz 102,323 oz • 2010 Cash Cost US$747 • 2010 Selling Price US$1,248 • Produce 30,000 ounces in 2011
Slide 14: Orivesi Gold Mine – Extending Mine Life
Orivesi Gold Mine Extending Mine Life
Slide 15: Orivesi Gold Mine – Extending Mine Life
Orivesi Gold Mine Extending Mine Life
Slide 16: Orivesi Gold Mine – Extending Mine Life
Orivesi Gold Mine Extending Mine Life
Slide 17: Jokisivu Gold Mine – Extending Mine Life
Jokisivu Gold Mine Extending Mine Life
Slide 18: Jokisivu Gold Mine
* Jokisivu Gold Mine Dragon Mining LEGEND E21 Jokisivu Mining Lease z Outline 1 Open Pit Outline 2 © DDH Collar Results ee Received @ DDH Collar Results Pending = Decline E HU/JS-424 “ef 890M @4.52gtAu 3m @ 5.20 git Au XN 3m @ 5.42 gi Au GIL. VA HUIJS-430 3m @ 296 gt au 7 3m @ 8.04 gt Av 5.25m @ 8.6
Slide 19: Kuusamo – Next Production Centre
Kuusamo Next Production Centre • Five known gold deposits • Gold Resources of 383,500 ounces • 20,000m of drilling commenced • Environmental baseline studies commenced • Relogging of historic drill core • Preliminary mine studies underway
Slide 20: Kuusamo – Juomasuo
Kuusamo Juomasuo • Bonanza historical drill results from Juomasuo including: – 19.20m @ 179.52 g/t – 3.70m @ 426.98 g/t – 19.60m @ 63.70 g/t – 4.12m @ 265.50 g/t – 8.00m @ 48.85 g/t • First drill results indicate that mineralisation is continuing at depth. • Discovered potential parallel ore lodes.
Slide 21: Kuusamo – Juomasuo
Kuusamo Juomasuo • Bonanza historical drill results from Juomasuo including: – 19.20m @ 179.52 g/t – 3.70m @ 426.98 g/t – 19.60m @ 63.70 g/t – 4.12m @ 265.50 g/t – 8.00m @ 48.85 g/t • First drill results indicate that mineralisation is continuing at depth. • Discovered potential parallell ore lodes.
Slide 22: Kuusamo – Juomasuo
Kuusamo Juomasuo • Bonanza historical drill results from Juomasuo including: – 19.20m @ 179.52 g/t – 3.70m @ 426.98 g/t – 19.60m @ 63.70 g/t – 4.12m @ 265.50 g/t – 8.00m @ 48.85 g/t • First drill results indicate that mineralisation is continuing at depth. • Discovered potential parallell ore lodes.
Slide 23: Kuusamo – Juomasuo
Kuusamo Juomasuo • Bonanza historical drill results from Juomasuo including: – 19.20m @ 179.52 g/t – 3.70m @ 426.98 g/t – 19.60m @ 63.70 g/t – 4.12m @ 265.50 g/t – 8.00m @ 48.85 g/t • First drill results indicate that mineralisation is continuing at depth. • Discovered potential parallell ore lodes.
Slide 24: Kuusamo – Hangaslampi
Kuusamo Hangaslampi • Gold Resource of 55,700 ounces • Moderately dipping • 105 historic drill holes yielded signifcant intercepts including: – 23.50m @ 13.25 g/t – 26.95m @ 5.78 g/t – 19.20m @ 7.00 g/t – 21.05m @ 13.70 g/t – 13.00 @ 20.41 g/t • Open along strike and down plunge • Drilling to test s
Slide 25: Kuusamo – Hangaslampi
Kuusamo Hangaslampi • Gold Resource of 55,700 ounces • Moderately dipping • 105 historic drill holes yielded signifcant intercepts including: – 23.50m @ 13.25 g/t – 26.95m @ 5.78 g/t – 19.20m @ 7.00 g/t – 21.05m @ 13.70 g/t – 13.00 @ 20.41 g/t • Open along strike and down plunge • Drilling to test s
Slide 26: Kuusamo – Regional
Kuusamo Regional • Near contiguous tenement holding of 196km2 • Primary target is the Juomasuo area, which hosts three gold deposits. • Number of drill ready targets including: – Untested geophysical anomolies – Gold in trenches – Drill intercepts not followed up • Southern area hosts two known gold
Slide 27: Production Project Pipeline
Production Project Pipeline Moving to a 150,000 Ounce Gold Producer! 2011 2012 2013 2014 Svartliden 35,000 35,000 35,000 40,000 Orivesi 20,000 25,000 30,000 30,000 Jokisivu 10,000 15,000 15,000 15,000 Kaapelinkulma 10,000 10,000 Kuusamo 60,000 TOTAL 70,00065,000 75,000 115,000 140,000 TOTAL 75,000 9
Slide 28: Peer Comparison – EV per Resource Ounce
USD/oz 100 200 300 400 500 600 700 0 ATV NGF LGM NXG CJO DRA NAV NYO ALD SBM RSG RMS SAR AZM SLR Further Value NMG CHN IAU Average PRU CQT ADU FML UML RRL IGR KCN AQG NCM TRY ALK Peer Comparison – EV per Resource Ounce CRB AMX GRY MML
Slide 29: Further Value – Peer Comparison EV per Production Ounce
Further Value Peer Comparison – EV per Production Ounce
Slide 30: Investment Opportunity
Investment Opportunity Two established and highly profitable production centres 1.1 million ounces of resources and expanding reserves Outstanding advanced exploration project Strong cash balance to aggressively grow assets Moving to >100,000 ounce gold producer Cheap compared to peers
Slide 31: Appendices – Gold Resource Inventory
Appendices Gold Resource Inventory (31 Dec 10) Gold Classification Tonnes Ounces (g/t) Svartliden Gold Mine, Sweden Measured 209,900 4.0 26,700 Indicated 967,200 3.6 113,200 Inferred 152,000 3.8 18,600 Total 1,330,100 3.7 158,200 Vammala Production Centre, Finland Measured 193,600 6.5 40,200 Indicat