Kingsgate Consolidated Limited - Brisbane Mining …brisbaneminingclub.com.au/event_archive_pdfs/2011/...Kingsgate Consolidated Limited Gavin Thomas Brisbane Mining Club July 2011

Kingsgate Consolidated LimitedKingsgate Consolidated Limited

GavinThomasGavinThomas Brisbane

Mining ClubJuly 2011

BrisbaneMining ClubJuly 2011

Growing a Premier Mid-Tier Gold Miner

in Asia/Pacific

Growing a Premier Mid-Tier Gold Miner

in Asia/Pacific

These materials include forward looking statements. Forward looking statements inherently involve subjective judgment &analysis & are subject to significant uncertainties, risks & contingencies, many of which are outside of the control of, & may beunknown to, the company.

Actual results and developments may vary materially from that expressed in these materials. The types of uncertainties whichare relevant to the company may include, but are not limited to, commodity prices, political uncertainty, changes to theregulatory framework which applies to the business of the company & general economic conditions. Given these uncertainties,readers are cautioned not to place undue reliance on such forward looking statements.

Forward looking statements in these materials speak only at the date of issue. Subject to any continuing obligations underapplicable law or any relevant stock exchange listing rules, the company undertakes any obligation to publicly update or reviseany of the forward looking statements, changes in events, conditions or circumstances on which any such statement is based.

These materials include forward looking statements. Forward looking statements inherently involve subjective judgment &analysis & are subject to significant uncertainties, risks & contingencies, many of which are outside of the control of, & may beunknown to, the company.

Actual results and developments may vary materially from that expressed in these materials. The types of uncertainties whichare relevant to the company may include, but are not limited to, commodity prices, political uncertainty, changes to theregulatory framework which applies to the business of the company & general economic conditions. Given these uncertainties,readers are cautioned not to place undue reliance on such forward looking statements.

Forward looking statements in these materials speak only at the date of issue. Subject to any continuing obligations underapplicable law or any relevant stock exchange listing rules, the company undertakes any obligation to publicly update or reviseany of the forward looking statements, changes in events, conditions or circumstances on which any such statement is based.

Forward Looking Statements:Forward Looking Statements:

Some statements in this presentation regarding estimates or future events are forward looking statements. They involve riskand uncertainties that could cause actual results to differ from estimated results. Forward looking statements include estimatesof future production, cash and total costs per ounce of production, reserve and mineralized material estimates, capital costs,and other estimates or prediction of future activities. They include statements proceeded by words such as “believe,”“estimate,” “expect,” “intend,” “will,” and similar expressions. Actual results could differ materially depending on such thingsas political events, labour relations, currency fluctuations and other general economic conditions, market prices for DominionMining Limited and/or Kingsgate Consolidated Limited products, timing of permits and other government approvals andrequirements, changes in operating conditions, lower than expected ore grades, unexpected ground and mining conditions,availability and cost of materials and equipment, and risks generally inherent in the ownership and operation of miningproperties and investment in foreign countries.

Some statements in this presentation regarding estimates or future events are forward looking statements. They involve riskand uncertainties that could cause actual results to differ from estimated results. Forward looking statements include estimatesof future production, cash and total costs per ounce of production, reserve and mineralized material estimates, capital costs,and other estimates or prediction of future activities. They include statements proceeded by words such as “believe,”“estimate,” “expect,” “intend,” “will,” and similar expressions. Actual results could differ materially depending on such thingsas political events, labour relations, currency fluctuations and other general economic conditions, market prices for DominionMining Limited and/or Kingsgate Consolidated Limited products, timing of permits and other government approvals andrequirements, changes in operating conditions, lower than expected ore grades, unexpected ground and mining conditions,availability and cost of materials and equipment, and risks generally inherent in the ownership and operation of miningproperties and investment in foreign countries.

DisclaimerDisclaimer

Why Gold and silverWhy Gold and silver��

��

�� Diversified ProductionDiversified Production

�� Resource GrowthResource Growth

��

Production GrowthProduction Growth

Strong CashflowStrong Cashflow

Premier ASX Mid-Tier Gold MinerPremier ASX Mid-Tier Gold Miner

�� Growth OpportunitiesGrowth Opportunities

1971 1975 1980 1985 1990 1995 2000 2005 2010$0

$1600

$600

$200

$400

$800

$1000

$1200

$1400

US$ Why Gold ?Why Gold ?• Flat/decreasing mine supply

• Growing physical demand

• China

• Central bank buying

• Growing investment demand

• Inflation hedge

• Currency protection

• Safe haven/asset class

• Flat/decreasing mine supply

• Growing physical demand

• China

• Central bank buying

• Growing investment demand

• Inflation hedge

• Currency protection

• Safe haven/asset class

(Source: Dr M Murenbeeld)

(Source: Bloomberg)(Source: Bloomberg)

Is This a Gold Bubble?Is This a Gold Bubble?

RelativePerformance

Time since beginning of Cycle

1000%

500%

2000%

1500%

0

Jan 1980$850

1972-1985

1999-Present

May 2011$1,572

(Source: Bloomberg)(Source: Bloomberg)

Is This a Gold Bubble? No!Is This a Gold Bubble? No!

RelativePerformance

Time since beginning of Cycle

1000%

500%

2000%

1500%

0

Jan 1980$850

1972-1985

1999-Present

May 2011$1,572

Global MarketSize

Global MarketSize

Gold: Over Talked & Under InvestedGold: Over Talked & Under Invested

• Bond Market : $91,200 Bn

• Equity Market : $41,500 Bn

• Total Gold Market : $1,100 Bn

• Bond Market : $91,200 Bn

• Equity Market : $41,500 Bn

• Total Gold Market : $1,100 Bn

Gold MarketInvestment Assets

Gold MarketInvestment Assets

• ETF’s, coins & bars ~$200 Bn

• China imported 200t of gold in Jan 11

(~50% of world production)

• ETF’s, coins & bars ~$200 Bn

• China imported 200t of gold in Jan 11

(~50% of world production)

Growing InflationFears

Growing InflationFears

• Which currency do you invest in?

• If global inflation x2 bonds may fall >10%

• Hard assets & gold the only real currency

• Which currency do you invest in?

• If global inflation x2 bonds may fall >10%

• Hard assets & gold the only real currency

Where to?Where to? • A lot of talk for 2 years about this

but no real investment – except China

• A lot of talk for 2 years about this

but no real investment – except China

Gold Price vs US Interest RatesGold Price vs US Interest Rates

-5% -4% -3% -2% -1% 0 +1%

2007 2008 2009 2010 2011

1600

600

1000

1400

1200

800

0.5

3.0

2.0

1.0

1.5

2.5

Gold priceUS 10 Year tips Yield

$/troy oz %

Russia

France

GermanyItalyUSA

China

India

IndonesiaUK

Vietnam

HongKong

TurkeyJapan

Switzerland

Retail Deposit RatesminusForecast 2011 Inflation Rates

�Gold has a strong correlation to low interest rates

�Most countries currently has negative real interest rates

� Situation unlikely to change soon

Return of the Gold Standard?Return of the Gold Standard?

Chinese Gold DemandChinese Gold Demand

Total Gold Demand

� China Outstrips western world demand for the first time in 2010

Gold Investment Demand

� China catching up fast

200

150

100

50

02001 2005 2011

250ChinaIndia

Source: GFMS

M Tonnes

700

600

500

400

300

200

100

02001 2005 2010

ChinaDeveloped West

Source: GFMS, World Gold Council

Tonnes

Global Gold Mine ProductionGlobal Gold Mine Production

(Source: USGS)(Source: USGS)

0

200

400

600

800

1,000

1,200

1,400

1,600

0

500

1,000

1,500

2,000

2,500

3,000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

GoldPrice

MineProduction

(t)

Peak Gold?Peak Gold?

Global Gold SupplyGlobal Gold Supply

1,400

Global Gold Supply1,400

-200

0

200

800

400

600

1,200

1,000

Volume (tonnes)

Mine production

Old gold scrap

Net Producer hedging

Gold priceOfficialSector sales

-200

0

200

800

400

600

1,200

1,000

Gold Price (U

S$/oz)

Source: World Gold Council, Credit Suisse estimates

2008 20112009 2010

Gold Grade DecreasingGold Grade Decreasing

Total G

old Ore Processed (Mt)

Total OP ore milledTotal UG ore milled

Dump tails milledTotal ore heap leached

Average grade

Weighted Av. H

ead Grade (g/t)

Tonnages

increasin

g

Gradesdecreasing

1995 2000 2005 2010

2.4

2.2

2.0

1.8

1.2

1.0

1.6

1.4

2,000

0

1,800

1,400

1,000

1,200

1,600

200

800

400

600

0.8

Global Mine Production

Source: Company data, Credit Suisse estimates

Gold Industry Discovery ProfileGold Industry Discovery Profile

(Source: Newcrest)(Source: Newcrest)

Contained

Gold (MOz)

160

140

120

100

80

60

40

20

0

Number of

Discoveries

16

14

12

10

8

6

4

2

01997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

US$

$50

$0

$30

$10

$20

$40

1971 1975 1980 1985 1990 1995 2000 2005 2010

• Silver is a unique precious metal• High correlation to gold

• Produced primarily as a by-product

• Silver is a store of value• Physical demand has risen significantly over the

past few years

• ETF demand continues at record levels

• Silver is a versatile industrial metal• New uses are being developed

• Relied upon in advancement of developed and

emerging economies

• Silver is a unique precious metal• High correlation to gold

• Produced primarily as a by-product

• Silver is a store of value• Physical demand has risen significantly over the

past few years

• ETF demand continues at record levels

• Silver is a versatile industrial metal• New uses are being developed

• Relied upon in advancement of developed and

emerging economies

Why Silver ?Why Silver ?

(Source: Silver I Wheaton)(Source: Silver I Wheaton)

BeijingBeijing

TokyoTokyo

BangkokBangkok

AdelaideAdelaide SydneySydney

Los AngelesLos Angeles

SantiagoSantiagoBuenosAiresBuenosAires

New YorkNew York

Didipio

AtlasTampakan

GrasbergOk Tedi

Porgera

MonywaLoei

Sepon

BatuHijau

Cadia

Yanacocha

Escondida

Chuquicamata

El Teniente

Hishikari

Sado

Masbate

LihirGold Ridge

LebongPongkor

MtMuro

BauKelian

Mamut

AwakMas

GosowongToka Tindung

Kidston

Mt LeyshonCracow

PeakHill

Mt KasiEmperor

Waihi

Macraes

Bella Vista

Mulatos

Hehaughlin

Fruta del NortePierina

El Peñon

Esquel

Cerro Negro

Miwah

Pacific “Rim of Fire”Pacific “Rim of Fire”

Epithermal/Porphyry DepositsEpithermal/Porphyry Deposits

The Golden HarvestThe Golden Harvest

2010 - One Mine One Country2010 - One Mine One Country

ChatreeChatree

Kingsgate Growth StrategyKingsgate Growth Strategy

� Landmark victory by Puea Thai Party with 265 seats out of 500 seats

� Formed coalition to strengthen majority

� Led by Yingluck Shinawatra sister of former prime minister ThaksinShinawatra

�Decisive victory should lead to a more politically stable Thailand

� Thai politics confined to Bangkok

�Chatree has not lost one day of production during six changes of Government and a military coup

� Landmark victory by Puea Thai Party with 265 seats out of 500 seats

� Formed coalition to strengthen majority

� Led by Yingluck Shinawatra sister of former prime minister ThaksinShinawatra

�Decisive victory should lead to a more politically stable Thailand

� Thai politics confined to Bangkok

�Chatree has not lost one day of production during six changes of Government and a military coup

Thai Political ChangeThai Political Change

T h a i l a n d

BangkokBangkok

ChatreeChatree

Chatree – Thai Gold BeltChatree – Thai Gold Belt

Pending

Granted

NakhonsawanProvince

PhitsanulokProvince

PhichitProvince

PhetchabunProvince

NakhonsawanProvince

PhichitProvince

PhetchabunProvince

PhitsanulokProvince

ChatreeChatree

70 k

m70 k

m

T h a i l a n d

Thai Gold BeltThai Gold Belt

ChatreeChatree

BangkokBangkokWorld Class Gold

Province

World Class Gold

Province

First Mover

Advantage

First Mover

Advantage

1,300 km2 Tenement

Package

Multiple Targets

1,300 km2 Tenement

Package

Multiple Targets

1 km1 km1 km1 km1 km1 km1 km1 kmChatree - World Class DepositChatree - World Class Deposit

World Class Gold Deposits

are +5 Moz

World Class Gold Deposits

are +5 Moz

Chatree ~6Moz

to date & growing

including mined to date

Chatree ~6Moz

to date & growing

including mined to date

1.9 Moz Reserve

4.3 Moz Resource*

1.9 Moz Reserve

4.3 Moz Resource*

Section5km5km1 km1 km1 km1 km1 km1 km1 km1 km(*As at 30 June 2010)

Organic Growth - Expanding PitsOrganic Growth - Expanding Pits

Chatree Grade/Tonnage Variance Versus Gold Price*

Gold Price(US$)

Gold Grade(g/t)

Tonnes(Millions)

Contained Gold(Moz)

1050 0.98 71 2.2

1150 0.96 78 2.4

1250 0.85 100 2.7

Underground PotentialUnderground Potential

Exploration PotentialExploration Potential

CHATREENORTH

CHATREENORTH

CHATREECHATREE

PhichitProvincePhichit

Province

PhetchabunProvince

PhetchabunProvince

PhitsanulokProvince

PhitsanulokProvince

BanDongLong

BanDongLong

BanKhoDin

BanKhoDin

1 Km1 Km

�Current reserves within Chatreeand Chatree North leases

�Open to the North, East and South

� Significant near mine potential

�Current reserves within Chatreeand Chatree North leases

�Open to the North, East and South

� Significant near mine potential

What’sWhat’sNext?

Plant expansion to +2.7 MtpaPlant expansion to +2.7 Mtpa

Current Plant 2.3 Mtpa

Chatree Expansion on Schedule Chatree Expansion on Schedule

Total project capex US$125M; EPCM contract US$100M Expensed ~US$85M; Remaining ~US$45M

Tax incentives granted for production from new plant

Total project capex US$125M; EPCM contract US$100M Expensed ~US$85M; Remaining ~US$45M

Tax incentives granted for production from new plant

Chatree processing plant capacity increase from 2.3 to +5 MtpaCompletion expected in September Quarter 2011Increase production rate up to 200,000 ounces per year

Chatree processing plant capacity increase from 2.3 to +5 MtpaCompletion expected in September Quarter 2011Increase production rate up to 200,000 ounces per year

Plant expansion +2.7 MtpaPlant expansion +2.7 Mtpa

And Under BudgetAnd Under Budget

Capital Projects Under PressureCapital Projects Under Pressure

Kingsgate and Ausenco do it AgainKingsgate and Ausenco do it Again

�Chatree North expansion on schedule and under budget

�Despite

� Heaviest wet season in a generation

� Capital pressure on resource construction projects

�Relationship built up over a decade

�Chatree North expansion on schedule and under budget

�Despite

� Heaviest wet season in a generation

� Capital pressure on resource construction projects

�Relationship built up over a decade

2011 - Two Mines Two Countries2011 - Two Mines Two Countries

ChatreeChatree

Kingsgate DiversifiesKingsgate Diversifies

ChallengerChallenger

Challenger Gold MineChallenger Gold Mine

�Acquired by KCN in Feb 2011

�Underground mine in Central South Australia

�Annual production ~100koz

�Reserves ~420koz

�Resources of ~950koz

� Strong reserve increase since commencement and further reserve growth anticipated

�Acquired by KCN in Feb 2011

�Underground mine in Central South Australia

�Annual production ~100koz

�Reserves ~420koz

�Resources of ~950koz

� Strong reserve increase since commencement and further reserve growth anticipated

Turn Around StoryTurn Around Story

NE SW


800

1000

600

400

200

0

-200

RL(m)

-400

Challenger Mineralised StructuresChallenger Mineralised Structures

VentilationShaft

VentilationShaft

M 1

M 2

M 3IdentifiedStructures

OpenDownDip

OpenDownDip

OpenDownDip

OpenDownDip

Upside

800 LevelExploration Drive800 LevelExploration Drive

280 LevelExploration Drive


Long Section

1000

800

600

400

200

0

-200

RL(m)

E WChallengerChallengerVentilation

ShaftVentilation

Shaft

820 LevelArea of current drilling820 LevelArea of current drilling

1111

8888

33334444

5555

6,76,76,76,7

2222




M 1

M 2

M 3

OtherStructures

ChallengerWestSIGNIFICANT CHALLENGER WEST INTERSECTIONS

from surface and underground drilling

Hole IDInterval(m)

Gold(g/t)

Comments(g/t gold)

InterceptRL

1 08CDDH0083 1.21 251.95 surface drilling 931m

2 08CDDH0085W1 0.90 310.87 surface drilling 882m

3 09CUD0582 1.00 12.13 782m

4 10CUD0584 3.00 28.46 incl [email protected] 797m

5 10CUD0586 0.52 55.98 814m




Challenger Exploration DrillingChallenger Exploration Drilling

1000

800

600

400

200

0

-200

RL(m)

E WChallengerChallengerVentilation

ShaftVentilation

Shaft

Upside

OpenDownDip

OpenDownDip

OpenDownDip

OpenDownDip

OpenDownDip

OpenDownDip

Upside

M 1

M 2

M 3

OtherStructures

ChallengerWest

820 LevelArea of current drilling820 LevelArea of current drilling




Challenger Upside PotentialChallenger Upside Potential

Challenger Area OpportunitiesChallenger Area Opportunities

�Challenger – single point gold anomaly

�Additional structures identified for follow-up

� Long term exploration potential in mine vicinity

�Challenger – single point gold anomaly

�Additional structures identified for follow-up

� Long term exploration potential in mine vicinityChallenger

Kingsgate GrowsKingsgate Grows


ChatreeChatree

ArquerosArqueros

2013 Three Mines Three Countries2013 Three Mines Three Countries

Arqueros Project Well LocatedArqueros Project Well Located

� Significant experience in the gold and copper belts

�Acquired 70% of Laguna in Feb 2011

�Arqueros project located in the world-class Maricunga Gold-Silver Belt

�MaricungaBelt

� Host to over 70Moz gold resources

� Produced over 10Moz gold

� Currently producing ~500Kozpa

� Significant experience in the gold and copper belts

�Acquired 70% of Laguna in Feb 2011

�Arqueros project located in the world-class Maricunga Gold-Silver Belt

�MaricungaBelt

� Host to over 70Moz gold resources

� Produced over 10Moz gold

� Currently producing ~500Kozpa

San Cristobal

El Tesoro

Choquelimpie

Acquired Esperanza from KinrossAcquired Esperanza from Kinross

ArquerosArqueros Chimberos/Esperanza CampChimberos/Esperanza Camp

Chimberos PitChimberos Pit

� Considerable surface rights and mine infrastructure

� Satellite mineralisation and increased exploration potential

� Considerable surface rights and mine infrastructure

� Satellite mineralisation and increased exploration potential

� Adds ~20Moz of silver resources (~340koz gold EQ)

� Earlier plant commissioning and faster ramp-up with Teterita deposit

� Adds ~20Moz of silver resources (~340koz gold EQ)

� Earlier plant commissioning and faster ramp-up with Teterita deposit

EsperanzaEsperanza

5 Kilometres5 Kilometres

Arqueros

ChimberosTeterita

Fast Track to ProductionFast Track to Production

�1.6 Million ounces gold EQ* (95 Million ounces silver EQ)

�Average grade of 1.5g/t* gold equivalent (cut-off: 0.7 g/t g/e)

� Target production of 100,000oz pa* gold equivalent by open cut mine

�19,000m definition drilling completed

� Feasibility study commenced

�Proven management team

(* Calculated at Ag US$18/oz)

�1.6 Million ounces gold EQ* (95 Million ounces silver EQ)

�Average grade of 1.5g/t* gold equivalent (cut-off: 0.7 g/t g/e)

� Target production of 100,000oz pa* gold equivalent by open cut mine

�19,000m definition drilling completed

� Feasibility study commenced

�Proven management team

(* Calculated at Ag US$18/oz)

Kingsgate to DeliverKingsgate to Deliver


ChatreeChatree

ArquerosArqueros

Strong Production GrowthStrong Production Growth

0

100

200

300

400

500

2008 2009 2010 2011F 2012F 2013F 2014F

Gold Production Growth(in ‘000 ounces)

Chatree Challenger Arqueros (100%)

Thailand - Chatree mine and expansion

Australia - Challenger Gold Mine

Chile - Arqueros Au/Ag project (KCN 70%)

Thailand - Chatree mine and expansion

Australia - Challenger Gold Mine

Chile - Arqueros Au/Ag project (KCN 70%)

Premier Mid Tier Gold ProducerPremier Mid Tier Gold Producer

DiversifiedProductionand Growth

DiversifiedProductionand Growth

ResourceGrowthResourceGrowth

• In-pit and u/g potential at Chatree

• Prospective u/g zones at Challenger

• In-pit and u/g potential at Chatree

• Prospective u/g zones at Challenger

DiscoveryPotentialDiscoveryPotential

Thailand - Chatree near mine and SPL’s

Australia - Challenger and other projects

Chile – Arqueros and Maricunga leases

Thailand - Chatree near mine and SPL’s

Australia - Challenger and other projects

Chile – Arqueros and Maricunga leases

DividendDifferentialDividend

Differential

• Interim dividend A$0.10/share

• Paid A$1.39/share over past 8 years

• High yielding gold stock (+3%)

• Interim dividend A$0.10/share

• Paid A$1.39/share over past 8 years

• High yielding gold stock (+3%)

www.kingsgate.com.au

Kingsgate Consolidated LimitedKingsgate Consolidated Limited

Shares: 134 Million Market Cap: ~A$1.3Bn

ASX: KCN

Shares: 134 Million Market Cap: ~A$1.3Bn

ASX: KCN

www.kingsgate.com.au

The information in this presentation that relates to Challenger’s Exploration Results, Mineral Resources or Ore Reserves isbased on information compiled by Peter Bamford, Tony Poustie and Paul Androvic who are full-time employees of theCompany, members of the Australasian Institute of Mining and Metallurgy. Peter Bamford, Tony Poustie and Paul Androvichave sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration and to theactivity, which they are undertaking to qualify as Competent Persons as defined in the 2004 Edition of the ‘Australasian Codefor Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Peter Bamford, Tony Poustie and Paul Androvic,consent to the inclusion in the report of the matters based on their information in the form and context in which it appears.

The information in this presentation that relates to Challenger’s Exploration Results, Mineral Resources or Ore Reserves isbased on information compiled by Peter Bamford, Tony Poustie and Paul Androvic who are full-time employees of theCompany, members of the Australasian Institute of Mining and Metallurgy. Peter Bamford, Tony Poustie and Paul Androvichave sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration and to theactivity, which they are undertaking to qualify as Competent Persons as defined in the 2004 Edition of the ‘Australasian Codefor Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Peter Bamford, Tony Poustie and Paul Androvic,consent to the inclusion in the report of the matters based on their information in the form and context in which it appears.

Information in this presentation that relates to Kingsgate’s Exploration Results, Mineral Resource and Ore Reserve estimates,geology, drilling and mineralisation, is based on information compiled by Ron James, who is an employee of the KingsgateGroup and is a member of The Australasian Institute of Mining and Metallurgy. Ron James is a Competent Person under themeaning of the JORC Code with respect to Exploration Results, Mineral Resource and Ore Reserve estimates, geology, drillingand mineralisation being presented. He has given his consent to the Public Reporting of these statements concerningExploration Results, Mineral Resource and Ore Reserve estimates, geology, drilling and mineralisation, and is in agreementwith the contents and format of this presentation.

Information in this presentation that relates to Kingsgate’s Exploration Results, Mineral Resource and Ore Reserve estimates,geology, drilling and mineralisation, is based on information compiled by Ron James, who is an employee of the KingsgateGroup and is a member of The Australasian Institute of Mining and Metallurgy. Ron James is a Competent Person under themeaning of the JORC Code with respect to Exploration Results, Mineral Resource and Ore Reserve estimates, geology, drillingand mineralisation being presented. He has given his consent to the Public Reporting of these statements concerningExploration Results, Mineral Resource and Ore Reserve estimates, geology, drilling and mineralisation, and is in agreementwith the contents and format of this presentation.

Competent Persons Statements:Competent Persons Statements:

General Disclaimer:General Disclaimer:

The information contained in this presentation is for informational purposes only and does not constitute an offer to issue, orarrange to issue securities or other financial products. The information contained in this presentation is not investment orfinancial product advice and has been prepared without taking into account the investment objectives, financial situation orparticular needs of any person. To the maximum extent permitted by law, none of Dominion Mining Limited, KingsgateConsolidated Limited, their respective directors, employees or agents, nor any other person accepts any liability includingwithout limitation any liability arising out of fault or negligence for any loss caused from the use of the information containedin this presentation. No representation or warranty, express or implied, is given as to the accuracy, completeness orcorrectness, likelihood of achievement or reasonableness of any forecasts or other forward looking statements.

The information contained in this presentation is for informational purposes only and does not constitute an offer to issue, orarrange to issue securities or other financial products. The information contained in this presentation is not investment orfinancial product advice and has been prepared without taking into account the investment objectives, financial situation orparticular needs of any person. To the maximum extent permitted by law, none of Dominion Mining Limited, KingsgateConsolidated Limited, their respective directors, employees or agents, nor any other person accepts any liability includingwithout limitation any liability arising out of fault or negligence for any loss caused from the use of the information containedin this presentation. No representation or warranty, express or implied, is given as to the accuracy, completeness orcorrectness, likelihood of achievement or reasonableness of any forecasts or other forward looking statements.

AppendixAppendix

ChatreeChatree

2.190.1412.10.795.6Stockpiles

(million ounces)(million ounces)(g/t)(g/t)(millions)

Chatree Ore Reserves as at 30 June 2010 (>0.4g/t gold cut-off grade)

18.63

5.02

11.42

Silver Contained

1.93

0.59

1.20

Gold Contained

9.4

8.4

9.5

Silver Grade

0.9761.7TotalChatree Total

0.9818.7Probable

1.0037.4ProvedFrom Pits

Gold GradeTonnesCategorySource

2.190.1412.10.795.6Stockpiles


Chatree Ore Reserves as at 30 June 2010 (>0.4g/t gold cut-off grade)

18.63

5.02

11.42

Silver Contained

1.93

0.59

1.20

Gold Contained

9.4

8.4

9.5

Silver Grade


0.9818.7Probable

1.0037.4ProvedFrom Pits


2.190.1412.10.795.6Stockpiles


Chatree Mineral Resources Inclusive of Ore Reserves as at 30 June 2010 (>0.3g/t gold cut-off grade)

36.97

4.86

11.07

18.85

Silver Contained

4.32

0.72

1.39

2.07

Gold Contained

6.6

4.8

6.1

7.4

Silver Grade


0.7131.4Inferred

0.7656.7Indicated

0.8179.8MeasuredFrom Pits


2.190.1412.10.795.6Stockpiles


Chatree Mineral Resources Inclusive of Ore Reserves as at 30 June 2010 (>0.3g/t gold cut-off grade)

36.97

4.86

11.07

18.85

Silver Contained

4.32

0.72

1.39

2.07

Gold Contained

6.6

4.8

6.1

7.4

Silver Grade


0.7131.4Inferred

0.7656.7Indicated

0.8179.8MeasuredFrom Pits


Information in this presentation re lates to E xp loration Results, Minera l Res ourc e and Ore Reserve est imates based on information compiled by the following Competent P ersons: Ron James , Fiona Davids on, G uy Davies and S uphanit S uphananthi who are employees of the Kings gate Group and members of The Australasian Institu te of Mining and Metallu rgy and Rob Sp iers who is an employee of Hellman & Schof ie ld Pty Ltd and member of The Aus tralian Institute of Geoscientists. These peop le qua lify as C ompetent Persons as defined in the Australasian Code for Reporting of E xploration Resu lts, Mineral Resources and Ore Reserves (the JORC Code, 2004 edition) and poss ess relevant experienc e in relation to the mineralisation be ing reported here in as Explorat ion Results, Mineral Res ources and Ore Res erves. Each Competent P erson has consented to the Public Reporting of these statements and the inclusion of the material in the form and context in whic h it appears.

Competent Persons Statement:

Information in this presentation re lates to E xp loration Results, Minera l Res ourc e and Ore Reserve est imates based on information compiled by the following Competent P ersons: Ron James , Fiona Davids on, G uy Davies and S uphanit S uphananthi who are employees of the Kings gate Group and members of The Australasian Institu te of Mining and Metallu rgy and Rob Sp iers who is an employee of Hellman & Schof ie ld Pty Ltd and member of The Aus tralian Institute of Geoscientists. These peop le qua lify as C ompetent Persons as defined in the Australasian Code for Reporting of E xploration Resu lts, Mineral Resources and Ore Reserves (the JORC Code, 2004 edition) and poss ess relevant experienc e in relation to the mineralisation be ing reported here in as Explorat ion Results, Mineral Res ources and Ore Res erves. Each Competent P erson has consented to the Public Reporting of these statements and the inclusion of the material in the form and context in whic h it appears.



92.1157Stockpiles

(thousand ounces)(g/t)(thousands)

Challenger Ore Reserves as at 30 June 2010

420

352

59

Gold Contained

5.72,310TotalChallenger Total

6.01,834Probable

5.8318ProvedFrom Mine


92.1157Stockpiles


Challenger Ore Reserves as at 30 June 2010

420

352

59

Gold Contained


6.01,834Probable

5.8318ProvedFrom Mine


81.8157Stockpiles


Challenger Mineral Resources as at 30 June 2010

950

418

460

63

Gold Contained


7.81,672Inferred

6.42,232Indicated

6.3310MeasuredFrom Mine


81.8157Stockpiles


Challenger Mineral Resources as at 30 June 2010

950

418

460

63

Gold Contained


7.81,672Inferred

6.42,232Indicated

6.3310MeasuredFrom Mine


The in format ion in this presentat ion that re lates to Exp loration Results, Mineral Resources or Ore Reserves is based on information compiled by Peter Bamford, Tony Poustie and Paul Androvic who are full-time employees of the Company, members of the Austra lasian Institute o f Mining and Metallurgy. Peter Bamford, Tony Poustie and Paul Androvic have suff icient experience, which is relevant to the style of minera lis ation and type of deposit under consideration and to the act ivity, which they are undertaking to qualif y as Competent Persons as defined in the 2004 Edition of the ‘Australasian C ode for Reporting of Exp loration Results, Mineral Resources and O re Reserves’. Peter Bamford, Tony Poustie and Paul Androvic , cons ent to the inclusion in the report of the matters based on their information in the form and c ontext in which it appears.


The in format ion in this presentat ion that re lates to Exp loration Results, Mineral Resources or Ore Reserves is based on information compiled by Peter Bamford, Tony Poustie and Paul Androvic who are full-time employees of the Company, members of the Austra lasian Institute o f Mining and Metallurgy. Peter Bamford, Tony Poustie and Paul Androvic have suff icient experience, which is relevant to the style of minera lis ation and type of deposit under consideration and to the act ivity, which they are undertaking to qualif y as Competent Persons as defined in the 2004 Edition of the ‘Australasian C ode for Reporting of Exp loration Results, Mineral Resources and O re Reserves’. Peter Bamford, Tony Poustie and Paul Androvic , cons ent to the inclusion in the report of the matters based on their information in the form and c ontext in which it appears.


JORCJORCJORCJORC Sep.2010Sep.2010Sep.2010Sep.2010 MillionMillionMillionMillion Grades, g/tGrades, g/tGrades, g/tGrades, g/t Ounces, thousandsOunces, thousandsOunces, thousandsOunces, thousands

CategoryCategoryCategoryCategory Tonnes Gold Silver AuEQ60 Gold Silver AuEQ60

CutCutCutCut----off grade 0.5 g/t Au EQ60off grade 0.5 g/t Au EQ60off grade 0.5 g/t Au EQ60off grade 0.5 g/t Au EQ60

IndicatedIndicatedIndicatedIndicated 7.0 0.35 83 1.73 78 18,596 387

InferredInferredInferredInferred 24.6 0.32 47 1.11 253 37,506 870

TotalTotalTotalTotal 31.6 0.33 55 1.24 332 56,103 1,258




TotalTotalTotalTotal 22.9 0.38 66 1.49 280 48,826 1,094




TotalTotalTotalTotal 13.5 0.48 88 1.95 206 38,278 844

Gold equiv alence based on price equiv alence ratio of 60: AuEQ60 = Au + Ag/60

ArquerosArqueros

CompetentCompetentCompetentCompetent PersonPersonPersonPerson StatementStatementStatementStatement::::Dr Nicholas Lindsay is a Member of the Australian Institute of Mining and Metallurgy and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the

activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Dr Lindsay is the

Managing Director of Laguna Resources NL and consents to the inclusion in this release of the matters based on his information and information presented to him in the form and context in which it appears

The Mineral Resource at Arqueros has been estimated by Mr P Ball (Director of DataGeo Geological Consultants) from information provided by Laguna Resources NL and its agents. Mr Ball is a member of theAustralian Institute of Mining and Metallurgy and has sufficient experience relevant to the style of mineralisation under consideration to qualify as a competent person as defined in the 2004 edition of the

“Australian Code of Reporting of exploration results, mineral resources and ore reserves”. Mr Ball consents to the inclusion of the mineral resource estimate in the form and context in which it appears based on the

information presented to him.

Documents

Kingsgate Consolidated Limited - Brisbane Mining …brisbaneminingclub.com.au/event_archive_pdfs/2011/...Kingsgate Consolidated Limited Gavin Thomas Brisbane Mining Club July 2011