Dragon Mining Limited · HKEX:1712
Dragon Mining — Shareholder Meeting (May 2010)
39 slides from Dragon Mining's shareholder meeting presentation, May 25, 2010
Slide 1: Dragon Mining Limited Annual General Meeting
DRAGON MINING LIMITED Annual General Meeting g 25 May 2010 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 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 S a t de Go Svartliden Gold d Mine e • 40,000 ounces Vammala Production Centre • Orivesi 20,000 ounces • Jokisivu 10,000 ounces Cash, bullion & receivables (24 May 10) $16.0m Plus sale of interest in Zara JV • $8.0m cash • 2m Chalice shares (CHN) Produce 70,000 oz in 2010
Slide 4: Corporate Overview
Corporate p Overview I Issued d Capital C it l • Fully Paid Ordinary Shares 737.3m • Options (exercise prices 14c – 21c) 10.2m • Convertible Notes (Feb 2011) 10 2m 10.2m • Market Capitalisation (24 May 2010) A$60.0m Substantial Shareholders • Nicolas Mathys 130.4m 17.7% • E Eurogold, ld Brinkley B i
Slide 5: Corporate Overview – Directors
Corporate p Overview Directors Tapani Järvinen Peter Cordin Non-Executive Director Executive Chairman Mr Järvinen retired as President and CEO of Outotec Oy in Mr Cordin is a civil engineer with more than 35 years December 2009 and is currently a Board member of a number experience in the evaluation
Slide 6: Svartliden Gold Mine
Svartliden Gold Mine Location Dragon’s Dragon s Cash Engine
Slide 7: Svartliden Gold Mine
Svartliden Gold Mine Statistics to 31 March 2010 Project to Date YTD March 2010 Ore Processed 1,571,861 t 84,193 t A Average Head H dG Grade d 4 79 g/t 4.79 /t 3 73 g/t 3.73 /t Average Recovery 91.05 % 92.90 % Gold Produced 220,270 oz 9,368 oz • March Quarter 2010 Cash Cost US$620 March Quarter 2010
Slide 8: Svartliden Gold Mine
Svartliden Gold Mine Drill Core from Depth Extension Drilling
Slide 9: Svartliden Gold Mine
Svartliden Gold Mine Mining and Loading May 08 Aug 07
Slide 10: Svartliden Gold Mine
Svartliden Gold Mine Open Pit Apr 08 Oct 09
Slide 11: Svartliden Gold Mine
Svartliden Gold Mine Ore Feed to Ball Mill
Slide 12: Svartliden Gold Mine
Svartliden Gold Mine Tailings Dam Jan 08 Oct 09
Slide 13: Svartliden Gold Mine
Svartliden Gold Mine Rehabilitation of Waste Stockpiles
Slide 14: Svartliden Gold Mine
Svartliden Gold Mine Environmental Monitoring
Slide 15: Svartliden Gold Mine
Svartliden Gold Mine Transitioning Underground
Slide 16: Svartliden Gold Mine
Svartliden Gold Mine Increase mine life 1. Eastern Zone Open Cut Extension 1 4,600m - A$0.5m 2. North & Main Lode Depth Extension 2 10,000m - A$1.0m 3 3. North & Main Lode Depth Extension 3 4,600m - A$0.5m 4 4. Depth Extension Drilling 2 000m - A$0.2m 2,000m A$0 2m 5 5. Depth Extension Drilling 2,00
Slide 17: Svartliden Gold Mine
Svartliden Gold Mine Mine Corridor – Svartliden West
Slide 18: Svartliden Gold Mine
Svartliden Gold Mine Regional • Potential to host a number of gold deposits. • Extensive coverage by detailed airborne ib geophysics h i andd regional i l geochemistry, identifying >30 areas of interest. • Detailed geochemistry across four high priority prospects returned very encouraging results.
Slide 19: Finland
\ 7. Bs Finland aa D , ale’ - Mining @ : _ wy iM | Hi. : : Sa 7 Location o\\ Bee a | SUKSETON HANHIMAA KUUSAMO Vammala Production Centre J orivesi + VAMMALA JOKISIVU Le KAAPELINKULMA
Slide 20: Vammala Production Centre
Vammala Production Centre Statistics to 31 March 2010 Project to Date YTD March 2010 Ore Processed 498,616 t 60,872 t A Average Head H dG Grade d 5 79 g/t 5.79 /t 3 82 g/t 3.82 /t Average Recovery 83.01 % 82.25 % Gold Produced 77,021 oz 6,162 oz • March Quarter 2010 Cash Cost US$805 March Quarter 20
Slide 21: Orivesi Gold Mine
Orivesi Gold Mine Extending Mine Life
Slide 22: Jokisivu Gold Mine
Jokisivu Gold Mine • Small open pit mine • Transitioning underground • Produce 10,000 ounces in 2010.
Slide 23: Jokisivu Gold Mine
Jokisivu Gold Mine Increase mine life 1. Area between Arpola and Kujankallio 3,000m - A$0.4m 1 2. Kujankallio 250-500m 8,000m - A$0.4m 3 Arpola 200-500m 3. 5,000m - A$0.6m 3 2
Slide 24: Kaapelinkulma Gold Project
Kaapelinkulma p Gold Project j • Complete 4,200m of infill drilling. • Permitting underway. • Production in 2012 2012.
Slide 25: Kaapelinkulma Gold Project
Kaapelinkulma p Gold Project j
Slide 26: Orivesi Gold Mine
Orivesi Gold Mine Decline Portal Jan 10 Aug 08
Slide 27: Orivesi Gold Mine
Orivesi Gold Mine Ore Loading for Transport to Vammala Aug 07
Slide 28: Jokisivu Gold Mine
Jokisivu Gold Mine Blast Hole Drill Rig
Slide 29: Jokisivu Gold Mine
Jokisivu Gold Mine Ore Loading
Slide 30: Jokisivu Gold Mine
Jokisivu Gold Mine Grade Control Drilling
Slide 31: Vammala Production Centre
Vammala Production Centre Crushing Circuit
Slide 32: Finland Exploration
Finland Exploration Dec 07 Jun 08
Slide 33: Production Project Pipeline
Production Project j Pipeline p
Slide 34: Gold Price and Exchange Rates
Gold Price and Exchange g Rates Margins Increasing GOLD PRICE - ROLLING 12 MONTHS 1600 10,000 • Gold Sales in USD. • Costs in SEK & EUR. EUR 1400 9 000 9,000 AU • Weakening European 1200 8,000 currencies lead to USD, AUD, EUR SE USD lower cash costs and USD SEK 1000 7,000 AUD higher margins. EUR SEK
Slide 35: Scandinavian Fiscal Regime
Scandinavian Fiscal Regime g • No mining royalties. • Low corporate tax rate • Sweden - 26.3%. 26 3% • Finland - 26.0%. • Significant gross tax losses available • Currentlyy no tax on repatriation p of funds to Australia
Slide 36: DRA – 40 Percent Interest
DRA – 40 Percent Interest • Consolidation of all mineral rights. • Substantial inventories of chromium, chromium iron and nickel for the production of refined stainless alloys. • Access to proposed rail line to service Oakajee Industrial Estate and proposed deep water port.
Slide 37: DRA – 20 Percent Free Carried Interest Zara Project - Eritrea
DRA – 20 Percent Free Carried Interest Zara Project - Eritrea • Koka Deposit – Indicated Resources of 5 Mt at 5.8 g/t gold for 944,000 ounces. • Scoping St Study d – 110,000 110 000 o ounces nces per year ear at US$424 an ounce. • Feasibility Study completed in July 10. • Call option granted to Chal
Slide 38: Overview
Overview • Established Production Centres - Svartliden, Sweden and Vammala Finland Vammala, Finland. • Drilling to expand mine reserves. • Further excellent exploration potential – near mine & regional. • Increasing margins. • Strong cash balance.
Slide 39: Appendices – Gold Resource Inventory
Appendices Gold Resource Inventory (31 Dec 09) Project Tonnes Gold (g/t) Gold (ounces) SVARTLIDEN Measured 471,000 3.3 50,400 Indicated 976,000 3.8 120,400 Inferred 87,000 5.1 14,400 Total 1,534,000 3.8 185,200 VAMMALA Measured 206,000 , 7.2 47,900 , Indicated 1,490,600 5.7 270,600 Inferred 1,506,00