Building a Resource Company Factory. Brisbane Mining 2013 Resources Convention

Transcription

1 Building a Resource Company Factory Brisbane Mining 2013 Resources Convention

2 Disclaimer

3 VALUE OF SHAREHOLDING IN LISTED ASSETS post rights issue: $50.5m Market 4.3 cents $17.6 m DIVERSIFIED PORTFOLIO OF RESOURCES - gold, silver, copper, nickel, tin, iron ore, titanium, oil & gas GLOBAL PRESENCE spreading exposure to sovereign risk A diversified and undervalued asset pool

4 1. TALENTED PEOPLE Dedicated, invested staff, think laterally Help them get rich via project & corporate success Economic buy in by local communities 2. BIG PROJECTS The Recipe for Success Provincial tenement coverage of national relevance Strong commodity market gas/ gold/ iron/copper/tin A new approach - new prices, new metallurgy, new exploration models Scalability 3. KEEP GENERATING DGR is not just an investment company. We are a factory

5 g/t Au Orbis Gold projects are very high grade. DGR holds 17.8% of Orbis Nabanga (0.5g/t Au cut-off grade) Median 1 0 Gold Deposits 5 Three times the global gold resource replacement grade

6 Armour Energy - A New Regional Gas Giant (DGR 25%) Provincial tenement position 100% owned National and global relevance Gas is the most acceptable globally demanded energy source Access to infrastructure local and export markets Accomplished management Over 40 Trillion cubic feet of gas resources and gas discoveries in three wells ASX:AJQ Armour Energy permit size relative to shale gas basins in Texas holds 25% of

7 Armour a new shale oil province in the Macarthur Basin?

8 Armour Energy two new gas provinces 4 wells, 3 months, 3 discoveries in Egilabria 2 awaiting proof of concept production test

9 Arrow Energy started up like Armour Arrows Kogan gas Project in 2003!!!!!!

10 SolGold DGR 9% Cascabel: An Outstanding Gold Copper Project in Ecuador holds 9% of New mining friendly Ecuador Relatively unexplored Worlds richest copper trend Earning 85% Cascabel with $3.7m Close to power port rail roads and water 550k oz eq in Queensland Outstanding expertise Committed Board & staff Reacts well to news Imminent strong news flow Market cap circa $75m LSE (AIM:SOLG)

11 Cascabel: In The Company Of Giants Sphere size denotes contained Cu (mt) Page 11

12 Porphyry Cu-Au Target at Alpala Lies above a Magnetic Apophysis

13 Cascabel Lithocap More Extensive than Tujuh Bukit Comparable Potential Scale to the 1.9 billion tonne Tujuh Bukit Gold-Copper Project in Indonesia held by Intrepid Mines (19 billion pounds of Copper, 28 million ounces of Gold 1 ) 1. Intrepid Mines ASX Announcement - 9/10/12 Page 13

14 Surface Channel Samples & Stage 1 Drillholes Page 14

15 Outstanding Results in Drill Hole % Cu & 0.48 g/t Au) Significant Intersections from CSD Include: 0.39% Cu, 0.48 g/t Au (from 16m) 0.37% Cu, 0.38 g/t Au (from 16m) 0.65% Cu, 1.00 g/t Au (from 222m) Page 15

16 Cascabel could be a giant world class Cu Au Porphyry High Grade copper mineralisation at Cascabel

17 Steel and Scrap (Mt) Iron ore requirement (Mt) IronRidge ( DGR 45%) - Population growth and urbanisation to drive steel demand for coming decades 7.5 World urban population growth (Billion people) Chinese peak steel production and iron ore requirements The world is set to urbanise close to another 3 billion people by the middle of the century Crude Steel Production Iron Ore Requirement (RHS) Scrap Generation Urban Population China India Other Asia Africa Rest of World 2050 Urban Population Source: Rio Tinto holds 45% of Source: UN, McKinsey, Rio Tinto 17

18 IronRidge Resources Developing Large Scale, Bulk Commodity Projects Belinga Project (CMEC/Gabonese Govt) 63%Fe 2 Belinga Project (CMEC/Gabonese Govt) 63%Fe 2 2 Mining Journal, BHP looks set to bag Belinga Iron Project (Feb 10,2012) Page 10.

19 IronRidge Resources Tchibanga High Grade Iron Potential, <70km to Port Mayumba Port BRGM / Sysmin Fe-occurrence Known (National Park) Infrastructure underway Road to Tchibanga scheduled to be completed Q Bridge to Mayumba Port scheduled to be completed Q Mont Pele >40km strike potential Hematite Schists Preliminary Interpretation Recently acquired Falcon Gravity Data, cost saving of $900k Based on new data, additional 1400km 2 application. 100% Gravity coverage. Strong magnetic & Gravity response, similar to Milingui Current sampling and mapping further confirms a correlation of the characteristic signatures provided by magnetics, gravity and topography data. Preliminary Field Work Confirmation of BIF and hematite Grades up to 62% Fe Established relationship with key local stakeholders Location Strike Length (km) Width (m) Depth (m) Specific Gravity Fe% Exploration Target (Mt) Contained Fe (Mt) Mont Pele

20 IronRidge Tchibanga New Application and Falcon Gravity Data Coverage (100%) A Known Mineralisation (National Park) B C IRONRIDGE GBON NEW APPLICATION: 1,400km 2 Huge downstrike potential in identical geological setting IRONRIDGE GABON TCHIBANGA PERMIT 1,990km 2 Mont Pele

21 Tchibanga Identical Gravity & Magnetic Signatures Minlingui <70km NW along strike from Tchibanga MILINGUI TCHIBANGA 5km 12km Strong coincident response of Mag+Grav over known mineralisation at Milingui (Loukoula Grp) Note the scale IRR permit covers >40km of prospective strike, soon to be 85km Downstrike at Tchibanga, Mag+Grav maps the Fe-bearing Loukoula Grp with great accuracy Segmented gravity response suggests ridge-perpendicular faulting, permitting fluid access to greater depth

22 IronRidge - Key Results from Tchibanga Reconnaissance 60.62% Fe 55.44% Fe 48.86% Fe 49.49% Fe

23 AusNiCo s (DGR 14%) Flagship Taronga Tin Project World class asset 57,200 tonnes of contained tin 26,400 tonnes of contained copper 4.4Moz contained silver Regional exploration extremely prospective Simple metallurgy compared to other projects Located close to existing infrastructure Development program targeting tin production by 2017 ASX: ANW holds 14% of

24 The deposit occupies a large hill and the low strip ratio will reduce mining costs Overall Life of Mine Strip ratio of 2.0:1 Proposed open cut to a depth of 150m to 200m (but with mineralisation to 450m)

25 Taronga is well placed with a PFS previously completed Newmont led JV completed a pre-feasibility study in 1982 Over five years the JV spent over $7.4M ($21M 2012 terms) Completed over 33,000m drilling (including over 73% diamond) and 3 adits for bulk samples Comprehensive metallurgical test work, including 3 pilot plant programs Complete engineering design & costing Northern Zone 650m Strike Payback 550m Strike Hillside Wireframes and drill hole locations prepared from Newmont JV PFS data

26 Taronga a recent review of plant CAPEX & OPEX confirms economics Independent re-costing of plant CAPEX & OPEX Predicted operating cash flow of $13.08/tonne over 12 to 13 year LOM No inclusion of potential metal by-product credits, increased LOM or increased tin recovery Refer ASX announcement 27/3/13 for more details

27 Taronga - Simple mineralogy allows for conventional processing Coarse cassiterite (up to 3mm) which is substantially liberated at 1.5mm Cassiterite associated with sulphides and quartz within vein stock work Example of coarse cassiterite and higher grade intercept (DG367) 0.48%Cu, 20g/t Ag

28 In addition there is increased Grade potential at Depth Limited drilling at depth, what was done indicates grade at depth (up to 1.67%Sn over 1 m)

29 Contacts Nick Mather CEO Greg Runge General Manager Karl Schlobohm Company Secretary ASX:DGR