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CEO Presentation AGM 29 th November 2012

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Page 1: CEO Presentation - Dampier Gold · Presentation of general background: This document contains general background information about Dampier’s proposed activities current as at the

CEO Presentation

AGM 29th November 2012

Page 2: CEO Presentation - Dampier Gold · Presentation of general background: This document contains general background information about Dampier’s proposed activities current as at the

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.

Page 3: CEO Presentation - Dampier Gold · Presentation of general background: This document contains general background information about Dampier’s proposed activities current as at the

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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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Page 4: CEO Presentation - Dampier Gold · Presentation of general background: This document contains general background information about Dampier’s proposed activities current as at the
Page 5: CEO Presentation - Dampier Gold · Presentation of general background: This document contains general background information about Dampier’s proposed activities current as at the

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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

Page 6: CEO Presentation - Dampier Gold · Presentation of general background: This document contains general background information about Dampier’s proposed activities current as at the
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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

Page 8: CEO Presentation - Dampier Gold · Presentation of general background: This document contains general background information about Dampier’s proposed activities current as at the

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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)

Page 9: CEO Presentation - Dampier Gold · Presentation of general background: This document contains general background information about Dampier’s proposed activities current as at the

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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

Page 12: CEO Presentation - Dampier Gold · Presentation of general background: This document contains general background information about Dampier’s proposed activities current as at the
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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

Page 17: CEO Presentation - Dampier Gold · Presentation of general background: This document contains general background information about Dampier’s proposed activities current as at the

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

Page 18: CEO Presentation - Dampier Gold · Presentation of general background: This document contains general background information about Dampier’s proposed activities current as at the

Thankyou

Page 19: CEO Presentation - Dampier Gold · Presentation of general background: This document contains general background information about Dampier’s proposed activities current as at the

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.