ceo presentation - dampier gold · presentation of general background: this document contains...
TRANSCRIPT
CEO Presentation
AGM 29th November 2012
Disclaimer
This document has been prepared by Dampier Gold Ltd (ACN 141 703 399) (Dampier or the Company). No party other than Dampier has authorised or caused the issue of this document, or takes responsibility for, or makes any statements, representations or undertakings in this document.
Presentation of general background: This document contains general background information about Dampier’s proposed activities current as at the date of this presentation (Information). It is Information in a summary form only and does not contain all the information necessary to fully evaluate any investment. Further Information on Dampier can be obtained from its website at www.dampiergold.com.
Not investment advice: The Information provided in this presentation is not intended to be relied upon as advice to investors or potential investors and has been prepared without taking into account the recipient’s investment objectives, financial circumstances or particular needs. Any investment decision should be made based solely upon appropriate due diligence and, if applicable, upon receipt and careful review of relevant offering documents. Recipients of this presentation are advised to consult their own professional advisers.
Future performance: This presentation contains certain forward-looking statements. The words 'anticipate', 'believe', 'expect', 'project', 'forecast', 'estimate', 'likely', 'intend', 'should', 'could', 'may', 'target', 'plan' and other similar expressions are intended to identify forward-looking statements. Indications of, and guidance on, future earnings and financial position and performance are also forward-looking statements. Such forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors, many of which are beyond the control of Dampier, and its officers, employees, agents and associates, that may cause actual results to differ materially from those expressed or implied in such statements. Actual results, performance or outcomes may differ materially from any projections and forward-looking statements and the assumptions on which those assumptions are based. You should not place undue reliance on forward-looking statements and neither Dampier nor any of its directors, employees, servants, advisers or agents assume any obligation to update such Information.
Risks: Dampier’s securities is subject to investment and other known and unknown risks, some of which are beyond the control of Dampier and Dampier's directors, employees, advisers or agents. Some of the risks associated with Dampier is set out in Section 11 of its Prospectus dated 9 July 2010.
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1. Includes 7.3m share placement to Columbus Minerals plus 1.2m Share Purchase Plan. Excludes 3.6m options that are out-of-the-money and 1.0m Performance Rights shares.
2. Cash holdings of A$5.2m less term deposits cash backing A$3.3m in Environmental Bonds
Source: Bloomberg as at 26 October 2012.
Key statistics Share price / volume history (A$; millions)
Major shareholders1
Name No. Shares Held % of Shares
Directors 9.4m 14.8%
Columbus Minerals 7.3m 11.4%
BlackRock 3.5m 5.5%
Barrick 3.4m 5.3%
Details Date Value
Ordinary shares on issue1 28-Nov-12 63.69m
Share price 28-Nov-12 $0.11
Market capitalisation 28-Nov-12 $7.0m
Available Cash2 28-Nov-12 $1.9m
Undiluted enterprise value $5.1m
Current 52 week high 52 week low 10 day
VWAP
Date 28-Nov-12 01-Feb-12 08-Aug-12
Share price $0.11 $0.31 $0.06 $0.130
Company Snapshot Dampier’s enterprise value of A$4.5 million represents a significant
discount to the value of its assets.
Board and Management
Name Position
Russell Skirrow Chairman
Philip Retter Non-Executive Director
Rodney Hanson Non-Executive Director
Richard Hay Chief Executive Officer
Brendan Cocks Chief Financial Officer
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Project Location Project Overview
Highly prospective tenements covering ~700km2
Over 580,000oz of gold produced
Potential for >1.0 Million ounce discoveries
Company strategy is to discover additional
ounces to support commencement of production
Pipeline of new and lightly tested targets
Total Project Mineral Resource of 5.5Mt at 3.8g/t
Au for 683,000oz of contained gold
Existing advanced projects
Framework terms in place for Ore Purchase
Agreement (OPA) with Barrick
Extensive high quality infrastructure in place
Plutonic Dome Project Overview Located in central WA
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Map of prospective trends Prospective trend
Granite Overthrust
Dolerites
Central Conglomerates
Parrot Mafic
Yowereena (Au / Cu)
Discover a +1.0 Moz
deposit which to date
has not been found in
the Plutonic – Marymia
Greenstone Belt
Highly Prospective Regional Trends Pipeline of prospects generated
The Opportunity
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Fair Maiden – compelling example of new anomalies generated Overview
Reprocessed regional
geochemical data
successfully generates
conspicuous anomalies
Integrated approach to
target generation, utilising
geochemistry, geophysics
and geology
Target pipeline prioritised
RAB drill targets ready to
go
Reprocessed Regional Geochemical Data Generates new targets
Conventional Au soil assays
normalised for laboratory batch and
regolith weathering association at the
Fair Maiden prospect (Hot colours
represent higher gold values)
Raw conventional Au soil assays at Fair
Maiden prospect (Hot colours represent
higher gold values)
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Favourable geology Overview
Successful testing of a
new identified anomaly
24.0m at 1.37g/t Au in
RAB hole at the end of a
line
Parrot Dolerite/Basalt
interpreted to continue
below sedimentary rocks
Contact between Shale
and Dolerite/Basalt is an
important structure for
hosting significant
mineralisation
Follow up RAB drill
program scheduled for
December
Fair Maiden Promising RAB intersection
Simplified geology of the Fair Maiden prospect showing recent drill intersection and potential for the Parrot Dolerite/Basalt to be present below the prospect
Dolerite/Basalt interpreted to plunge
below Fair Maiden
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Compelling new MMI anomalies Overview
Potential for large
concealed mineralised
systems
Regional Mobile Metal Ion
(MMI) program completed
Successful in identifying
new untested anomalies
Next steps include infill
MMI to tighten up broad
spaced anomalies before
drill testing
Regional MMI Highlights Discovery Potential Northern granite overthrust margin
Regional MMI sampling over part of the granite overthrust margin highlighting new anomalies (Hot
colours represent higher gold values)
New Anomalies
Granite Overthrust Margins
Trident
Granite Rocks
Greenstone Rocks
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Gold – Copper Potential Overview
36km2 of the Baumgarten
Greenstone Belt
Gold and Copper
anomalism
Boundary Fence Gold
prospect requires follow up
Multi-Element XRF soil
geochemistry sampling
program scheduled for
January
Close proximity to Sipa
Resources and Ventnor
Resources copper projects
Lodestar gold prospect lies
just to the south
Yowereena Gold and Copper potential
Aerial photo of Yowereena tenements and their proximity to Sipa Resources and Ventnor Resources copper projects
Yowereena MLA’s - Gold and Copper anomalism
Sipa – Thaduna Copper project
Boundary Fence Gold Prospect
Ventnor – Green Dragon Copper project
Lodestar Minerals Brumby Au prospect
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Advanced Projects Project pipeline with rapid development potential.
Map of Deposits Project Overview
Current Mineral Resource
totals 683,000oz ounces of
gold (5.5mt at 3.8g/t Au)
– Open Pit: 231,000oz
of gold (2.9Mt at 2.5g/t
Au)
– Underground:
452,000oz of gold
(2.7Mt at 5.3g/t Au)
K2 has high grade
underground potential,
existing decline, with short
development timeframe
Trident is the largest high
grade underground resource
with excellent development
potential
Cinnamon - potential open
pit development
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Location Overview
Barrick’s Plutonic
processing facility is
located only 42km from K2
and 35km from Trident
The 1.8Mtpa facility is
currently underutilised
OPA framework terms in
place
Haul roads in place
(>85km)
Track record of
environmental compliance
Excellent working
relationship with Barrick
Rapid Development Potential Mining leases and extensive infrastructure present
Dampier’s project tenements surrounds Barrick’s mine and underutilised processing facility
Barrick’s Plutonic Mine and Processing Facility
>85km of Haul Roads
Trident
K2
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Work Program
Work Program Dampier continues its discovery work program
Soil Sampling
Program
Regional and infill MMI soil sampling programs designed to:
Infill areas where new broad MMI anomalies have been identified
Test new areas where MMI is likely to improve definition of previous lightly tested
conventional soil geochemical anomalies
Continue the regional program of MMI in areas that are more conducive to MMI
Multi-Element XRF soil sampling on the Yowereena project
Integrate the results with existing geochemistry, geology and geophysics to generate additional
drill targets into the pipeline
RAB drilling
Phase I
Several advanced prospects are drill ready and will be the focus of the next round of
circa 3,000m RAB drill program scheduled for December
Phase II
Results from the MMI and Phase I RAB drilling will determine next steps
Investment Case
Pipeline of targets
>1.0Moz potential
Prolific greenstone belt
Highly prospective and underexplored
Several sources of ore
Will contribute to a sustainable mining plan
Robust economic grades
Existing high quality infrastructure
Underutilised processing plant available
Framework terms for OPA agreement
Thankyou
Competent Persons
The information in this report that relates to the Cinnamon, PPP, Trident, K1 and K2-K3 Mineral Resources is based on information compiled and reviewed by Mr Aaron Green who is a Member of the Australian Institute of Geoscientists and full-time employee of Runge Limited. Mr Green has sufficient experience relevant to the style of mineralisation and type of deposit under consideration, and to the activity which he has undertaken, to qualify as a Competent Person as defined in the 2004 JORC Code. Mr Green consents to the inclusion in this report of the matters based on this information in the form and context in which it appears. The information in this report that relates to Exploration Results is based on information compiled and reviewed by Mr Richard Hay, who is a Member of the Australian Institute of Geoscientists and the Chief Executive Officer of Dampier Gold. Mr Hay has sufficient experience relevant to the style of mineralisation and type of deposit under consideration, and to the activity which he has undertaken, to qualify as a Competent Person as defined in the 2004 JORC Code. Mr Hay consents to the inclusion in this report of the matters based on this information in the form and context in which it appears.