Dragon Mining Limited · HKEX:1712
Dragon Mining — Investor Presentation (October 2010)
30 slides from Dragon Mining's investor presentation, October 2010
Slide 1: Dragon Mining Limited – Positioned For Growth
DRAGON MINING LIMITED Positioned For Growth Investor Presentation October 2010
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 Company's s own information and estimates. estimates This presentation does not cons
Slide 3: Scandinavian Gold Producer
Scandinavian Gold Producer Svartliden Gold Mine (80%) • 40,000 ounces • Cash cost US$550 Vammala Production Centre • 30,000 ounces • Cash cost US$650 Growing Pipeline of Opportunities • Kuusamo uusa o Go Goldd Project oject Strong Financial Position (30 Sep 10) • $$28.3m of liquid q assets • No debt
Slide 4: Corporate Overview
Corporate p Overview Issued Capital 6 Month Share Price 0.2 • Ordinary Shares 737.8m • Options (14c – 21c) 10.2m 0.15 • Market Cap A$122m AUD Substantial Shareholders 0.1 • Nicolas Mathys 17.7% • Eurogold 17.3% 0.05 Apr‐10 May‐10 Jun‐10 Jul‐10 Aug‐10 Sep‐10 Oct‐10 Date Australian Securities Exchange
Slide 5: Corporate Overview – Directors
Corporate p Overview Directors Peter Cordin Tapani Järvinen Executive Chairman Non-Executive Director Mr Cordin is a civil engineer with more than 35 years Mr Järvinen retired is currently a Board member of a number of experience in the evaluation, development and operation of Finnish companies incl
Slide 6: Svartliden Gold Mine – Location
Svartliden Gold Mine Location Production, Cashflow, Growth
Slide 7: Svartliden Gold Mine – Statistics to September 2010
Svartliden Gold Mine Statistics to 30 September 2010 Project to Date YTD September 2010 Ore Processed 1,741,356 t 253,688 t A Average Head H dG Grade d 4 80 g/t 4.80 /t 4 34 g/t 4.34 /t Average Recovery 90.67 % 91.84 % Gold Produced 243,436 oz 32,533 oz • September YTD 2010 Cash Cost US$544 • Septem
Slide 8: Svartliden Gold Mine – Mining and Loading
Svartliden Gold Mine Mining and Loading May 08 Aug 07
Slide 9: Svartliden Gold Mine – Open Pit
Svartliden Gold Mine Open Pit Apr 08 Oct 09
Slide 10: Svartliden Gold Mine – Tailings Dam
Svartliden Gold Mine Tailings Dam Jan 08 Oct 09
Slide 11: Svartliden Gold Mine – Transitioning Underground in 2011
Svartliden Gold Mine Transitioning Underground in 2011 Aug 08 Jan 09
Slide 12: Svartliden Gold Mine – Transitioning Underground in 2011
Svartliden Gold Mine Transitioning Underground in 2011
Slide 13: Svartliden Gold Mine – Increase Mine Life
Svartliden Gold Mine Increase Mine Life Aggressive drilling program for additional 250,000 oz
Slide 14: Svartliden Gold Mine – 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
Slide 15: Southern Finland – Location
Southern Finland Location Production, Cashflow, Growth
Slide 16: Vammala Production Centre
Vammala Production Centre Statistics to 30 September 2010 Project to Date YTD September 2010 Ore Processed 619,832 t 182,088 t A Average Head H dG Grade d 5 72 g/t 5.72 /t 4 90 g/t 4.90 /t Average Recovery 83.42 % 83.90 % Gold Produced 94,984 oz 24,125 oz • September YTD 2010 Cash Cost US$676 • Sept
Slide 17: Orivesi Gold Mine – Extending Mine Life
Orivesi Gold Mine Extending Mine Life
Slide 18: Jokisivu Gold Mine – Extending Mine Life
Jokisivu Gold Mine Extending Mine Life
Slide 19: Jokisivu Gold Mine – Mining
Ka Jokisivu Gold Mine Mining La LEGEND © Squirrel! Reservation Area CI Jokisivu Mining Lease Outline © Open Pit Outline e@ 2009 Diamond Core Drill Hole @ 2010 Diamond Circulation Drill Hole 3m @ 5.20 g/t Au / 2 1.3m @ 5.42 git Au HU/JS-RC82 3m @ 2.36 git Au / “SN 3.0m @ 2.65 git Au TEM per-erceyn HU
Slide 20: Orivesi Gold Mine – Ore Loading for Transport to Vammala
Orivesi Gold Mine Ore Loading for Transport to Vammala Aug 07
Slide 21: Jokisivu Gold Mine – Decline Portal Commenced
Jokisivu Gold Mine Decline Portal Commenced
Slide 22: Vammala Production Centre – Crushing Circuit
Vammala Production Centre Crushing Circuit
Slide 23: Kaapelinkulma Gold Project
Kaapelinkulma p Gold Project j Production Growth • New resource imminent from 4,200m of infill drilling • Permitting progressing • Production in 2012.
Slide 24: Kuusamo – Next Production Centre
Kuusamo Next Production Centre • Bonanza historical drill results from Juomasuo including: – 19.20m @ 179.52 g/t – 3 70m @ 426 3.70m 426.98 98 g/t – 19.60m @ 63.70 g/t – 4.12m @ 265.50 g/t – 8.00m @ 48.85 g/t • Resources of 178,800 ounces • 3 year aggressive exploration program to significantly incr
Slide 25: Kuusamo – Drill Section
Beoe Drill Hole On Section Drill Hole Off Section Proposed Drill Holes. Gold Mineralised Zone 9,800 mN 9,800 mE 250 mRL 8.30m @ 2.76 git Au 4.12m @ 265.5 git Au 2.20m @ 11.10 g/t Au 6.60m @ 11.33 git Au 7.20m @ 3.46 g/t Au XN 9.83m @ 5.84 g/t Au 7.03m @ 24.17 g/t Au | 150 met 19.2m @ 179.52 g/t Au 2
Slide 26: Production Project Pipeline
Production Project j Pipeline p
Slide 27: Scandinavia
Scandinavia • Supportive Fiscal Regime No mining royalties Low corporate tax rate – Sweden – 26.3% – Finland – 26.0% • Currently no tax on repatriation of funds to Australia • Low country risk
Slide 28: DRA – 40 Percent Interest
DRA – 40 Percent Interest • Substantial JORC compliant resource of chromium, iron and nickel • Located in emerging Mid West Region of WA near established infrastructure • Scoping Study concluded “the Project is feasible, has attractive returns and is viable under a number of different d development
Slide 29: Investment Opportunity
Investment Opportunity pp y Two established and highly profitable production centres 1 million ounces of resources and drilling to expand reserves Growing 125,000 ounce gold producer 2013 Cheap compared to peers on resource/ounce valuation Excellent near mine & regional g exploration p p p
Slide 30: Appendices – Gold Resource Inventory
Appendices Gold Resource Inventory (31 Aug 10) Project j Tonnes Gold (g (g/t)) Gold ((ounces)) SVARTLIDEN Measured 288,000 4.1 38,100 Indicated 917,000 3.8 110,800 Inferred 152,000 3.8 18,600 Total 1,357,000 3.8 167,500 VAMMALA Measured 206,000 7.2 47,900 Indicated 1,302,600 5.4 227,800 Inferred 1,6