auc mining - exploration & mining potential in kamalenge, uganda

7/27/2019 AUC Mining - Exploration & Mining Potential in Kamalenge, Uganda

http://slidepdf.com/reader/full/auc-mining-exploration-mining-potential-in-kamalenge-uganda 1/21

1

October 2013

AUC MINING (U) Ltd

Exploration & Mining Potential inthe Kamalenge Area of Uganda



AUC UGANDA

Part of the Congo Craton wedged between producing

goldfields in the eastern DRC and northern Tanzania

Permitting processes and legal tenure clearly set out

in the law

Encouraging the development of its mineral sector

Has invested heavily with World Bank and NDF

supported airborne data surveys (SMMRP)

A number of our targets host past and current

artisanal workings

High levels of international and local interest in themineral sector

Functional infrastructure, upgrades to road andpower networks ongoing

2



3

AUC SOCIAL RESPONSIBILITY

STRIVE TO IMPROVE THE QUALITY OF LIFE OF THOSE INVOLVED IN OUR INVESTMENTSTHROUGH IDENTIFYING SUSTAINABLE DEVELOPMENT OPPORTUNITIES

WE FURTHER: PROVIDE ASSISTANCE WITH LOCAL EDUCATION

IMPROVE WATER SUPPLIES MAXIMISING LOCAL PROCUREMENT AIDING THE FIGHT AGAINST MALARIA AFFORDING VOCATIONAL STUDIES TO UNDERGRADUATES TRAINING LOCALLY EDUCATED GRADUATE GEOLOGISTS IMPROVING OUR INFRASTRUCTURE HAS AIDED LOCAL COMMUNITIES USING UGANDAN SERVICE PROVIDERS WHEREVER POSSIBLE



4

AUC COMPANY SNAPSHOT

Gold focused mining and exploration company

Setup to secure investments for the Ugandan mineral sector

Active in Uganda since 2006

One of the largest mineral investors here in recent times

US$14m of investments raised in the private equity market

A track record of mineral developments internationally and inUganda

Enhancing the knowledge database in our areas of interest

Engaged with successful and credible partners



5

AREAS OF INTEREST



6

AUC OUR FOCUS AT KAMALENGE

Regional and Detailed Exploration for GOLD andIOCG Type Deposits

Minimum of 4 magnetic lineaments defined at Kamalenge forexploration and mining.

13 hard rock Gold & IOCG areas defined at Kamalenge by Trenchingand Soils Geochemistry.

1 hard rock zone defined at Kamalenge for mining (Targets 1,2 and 3)with a preliminary resource of 45,000 tonnes at 6.2 g/t (Target 1).



AUC VALUE OF THE SMMRP WORK

7

Airborne MagneticTrends Related toCurrent Defined

Targets

The GMU License Areas areshown compared with the

magnetic anomalies defining aminimum of 4 possible zones

of mineralisation.

The aero-magnetic anomaliesvary between 8 and 16 km in

length are part of a largerstructure which is in excess of

25 km – the Lusaba Shear.

The Kamalenge Mining Licenserepresents 6 km2 within apotential area of 150 km2.

ScaleEach

quadrangleis 4 x 4 km

KamalengeMining Area

40 km

32 km



8

AUC KAMALENGE – Local Targets

ScaleEach quadrangleis 500 x 500 m2

Lugingi and

Kyasampawo Area

SOIL GEOCHEMISTRYSIGNATURES

All 13 defined Target Areas

based on the Au (Cu, As, Pd)

signature (Yellow)

and theIOCG (Cu, U, Au, Ag, LREEs -Light Rare Earths) signature

(Brown).

Targets B through to H stillhave to be investigated.

Detailed sampling and trialmining in progress on

Target 1.

5 km



AUC KAMALENGE – Exploration & Mining

9

TARGET 1

(From the North East)

Reef 1 – Blue

Reef 2 – Green

Reef 3 – White

Reef 4 – Light Brown

Roads are in Red

Current Trenches areIn White

First Phase of the miningwill be in the Reefs

between the valley andTarget 1 hill

Exploration is continuing onTargets 1, 2, 3,

Kyasampawo Hill and theAdit

TARGET 1 Hill

and Mining Area

Kyasampawo Hilland the Adit

PIT A - Alluvials Area

Proposed Drilling program ( 1890 m) is planned

On TARGET 1 to intersect the Reefs at depths of

between 20 to 150 metres

TARGET 2

TARGET 3



AUC KAMALENGE – Further Exploration

10

TARGET 1 Hill

Drilling AreaKyasampawo Hill

and the Adit

PIT A - Alluvials Area

TARGET 1 Drilling intersects the Reefs atdepths of between 20 to 150 metres

TARGET 2

TARGET 3

TARGET 1 Proposed Drillholes andIntersections

1 24 3

Reefs

A B

A

B

200 m

Reef 1 – Blue

Reef 2 – Green

Reef 3 – White

Reef 4 – LightBrown



11

AUC KAMALENGE – Exploration Potential

Kyasampawo Hilland the Adit

TARGET 1 Hill

and Mining Area

TARGET 3

TARGET 2

LUGINGI

LUGINGI – 1km Strike

(South of Targets 1 & 2)

Mineralisation length 1km – Open both ends

Zone over 116m wide – Open to South

Average ore width 54m (0.5g/t cut-off)

Average ore grade of 3.99g/t

Resource to 25m depth = 450,000 Oz

Resource to 100m depth = 1.8Mil Oz

LUGINGI – 3km Strike

(South & West of Targets 1 & 2)

Geological mapping shows length 3km – Open both ends



12

AUC ALLUVIALS - Processing Trials

ALLUVIAL MATERIAL

5sq.km of Au bearing gravelsmapped

9,600 m3 processed at 287

mg/m3 recovered 2750 g (88 oz) of Au produced

Break-even recovery required= 660 mg/m3 (~0.4g/t)

Main challenges: Clay, Dilution,

Grade Control Enhanced processing options

under review



AUC KAMALENGE – Primary Ore Trials

HARD ROCK (Pit C and adit area – Kyasampawo Hill )

TARGET 1

Open pit and part underground operation

In situ grade 5.7 g/t Au.252 tonnes processed at a feed head grade of 2.89 g/t

300 g ( 10 oz ) of Au production

Estimated gold recovery by gravity only, 41%

13



14

AVERAGE GOLD PRICE DURING THE TRIALMINING PERIOD WAS US$1,100 PER OUNCE.

AUC HISTORIC GOLD PRICE CHART

Data Source: Kitco website – September 2013



AUC DOW:GOLD RATIOS

15

Dow (DJIA) to gold ratio from 1900 to present andprojected to 2035. Major gold producers are listed at

the point that they were founded.

Yellow shading highlights periods when gold mining andexploration were generally more vibrant than othertimes.

Extract from “The Gold Report” interview with geologist & Exploration

Insights writer Dr.Quinton Hennigh – June 2012.



16

AUC EXPLORATION TEAMS



17

AUC ALLUVIALS MINING & PROCESSING



18

AUC HARD ROCK MINING



19

AUC INFRASTRUCTURE



20

AUC MINING FLEET



21

AUC IMPORTANT INFORMATION

Disclaimer and restrictions :

This presentation contains only a brief overview of Gold Mines of Uganda Limited and its associatedentities (“GMU”) and their respective activities and operations. The contents of this presentation, may

rely on various assumptions and subjective interpretations which is not possible to detail in thispresentation and which have not been subject to any independent verification.

This presentation contains both historical and a number of forward-looking statements. Known andunknown risks and uncertainties, as well as factors outside of GMU’s control, may cause the actual results,performance and achievements of GMU to differ materially from those expressed or implied in thispresentation. GMU does not warrant the accuracy, currency or completeness of the information withrespect to forward-looking statements contained in this presentation, nor the future performance of GMU.

The information contained in this document is being supplied only to persons who fall within Article 11(3)of the Financial Services Act 1986 (Investment Advertisements) (Exemptions) Order 1996 (as amended). Norepresentation or warranty, express or implied is given to the accuracy of the information or opinionscontained in this document and no liability is accepted by GMU or any of its directors, members, officers,employees, agents or advisers for any such information or opinions.

Accordingly, this information is being supplied to you, in whole or in part, for information purposes onlyand not for any other purpose. In particular, the distribution of this document in jurisdictions other thanthe United Kingdom may be restricted by law and persons into whose possession this document comes

should inform themselves about, and observe, any such restrictions. Any failure to comply with theserestrictions may constitute a violation of laws of any such other jurisdiction.

This document and the information contained in it do not constitute a prospectus and do not form anypart of an offer of, or invitation to apply for, securities or shares. Any decision to apply for securitiesmust be made solely on the basis of information contained in the public domain.

auc mining - exploration & mining potential in kamalenge, uganda

Documents