Upload
lago-dourado-minerals-ltd
View
130
Download
4
Embed Size (px)
DESCRIPTION
Exploring For Gold in a Gold-Rich System
Citation preview
Exploring For Gold in a Gold-Rich System
June 2011
2 LDM-TSXV
Forward-looking statements relate to future events or the anticipated performance of the Company and reflect
management’s expectations or beliefs regarding such future events and anticipated performance. In certain
cases, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected",
"budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "believes", or variations of such words
and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be
taken", "occur" or "be achieved", or the negative of these words or comparable terminology. By their very
nature forward-looking statements involve known and unknown risks, uncertainties and other factors which may
cause the actual performance of the Company to be materially different from any anticipated performance
expressed or implied by the forward-looking statements.
Important factors that could cause actual results to differ from these forward-looking statements include risks
related to failure to define mineral resources, to convert estimated mineral resources to reserves, the grade and
recovery of ore which is mined varying from estimates, future prices of gold and other commodities, capital and
operating costs varying significantly from estimates, political risks arising from operating in Brazil, uncertainties
relating to the availability and costs and availability of financing needed in the future, changes in equity
markets, inflation, changes in exchange rates, fluctuations in commodity prices, delays in the development of
projects, conclusions of economic evaluations, changes in project parameters as plans continue to be refined,
uninsured risks and other risks involved in the mineral exploration and development industry.
Although the Company has attempted to identify important factors that could cause actual performance to
differ materially from that described in forward-looking statements, there may be other factors that cause its
performance not to be as anticipated. There can be no assurance that forward-looking statements will prove
to be accurate, as actual results and future events could differ materially from those anticipated in such
statements. Accordingly, readers should not place undue reliance on forward-looking statements. These
forward-looking statements are made as of the date of this presentation and the Company does not intend,
and does not assume any obligation, to update these forward-looking statements.
Qualified Person - Murray Paterson, P.Geo, Vice President Exploration and Development for Lago Dourado
Minerals Ltd, is the Qualified Person, within the meaning of NI 43-101,who reviewed the technical data in this
presentation.
Forward Looking Statements
3 LDM-TSXV
Juruena Project
Extensive gold system
+0.5Moz gold mined at surface
Property largely untested
Phase I drilling ongoing through 2011
(18,000m campaign)
Mato Grosso, Brazil Favourable mining jurisdiction, extensive
infrastructure
Well Financed $9.2mln IPO completed November 2010
Experienced Executive Team
Why Lago Dourado?
4 LDM-TSXV
Capital Structure Shares (M)
Pre-Initial Public Offering (IPO) 42.2
IPO – November 2010(1) 18.4
Issued to Geomin (previous owners) 1.5
Basic Shares Outstanding 62.1
Options(2) 5.2
Warrants(3) 4.4
F/D Shares Outstanding 71.7
Major Shareholders
Management & Directors (11%)
Rosseau Asset Management (23%)
Pinetree Capital
(1) Gross proceeds of $9.2mln (18.4 M shares issued at $0.50)
(2) 1.55 M exercisable at $0.25 until June 2015, 1.55 M exercisable at $0.35 until September 2015, 2.0 M exercisable at $0.60 until
December 2015, 0.1 M exercisable at $0.90 until April 2016
(3) 2.1 M exercisable at $0.50 until July 2012, 1.3 M exercisable at $0.50 until November 2012, 1.0 M exercisable at $0.91 until April 2014
Corporate Overview
Investor Snapshot
Share Price (May 17, 2011) $0.60
Market Cap (May 17, 2011) $37 M
52 Week Low $0.50
52 Week High $1.15
Average Daily Volume (3 months) 120,000
Cash On Hand (Feb 28, 2011) $6.8 M
5 LDM-TSXV
Brazil Summary
Quick Facts
7th largest economy in the
world
Experienced cost effective labour
Extensive infrastructure
Energy independent
12th largest gold producer in the world
5th most populous country
4th ranked jurisdiction globally in which to invest in mining projects (Behre Dolbear 2011 report)
6 LDM-TSXV
Management & Board of Directors
Thomas Obradovich Chairman 20 yrs experience in developing gold, base
metal and diamond projects from grass roots
to advanced exploration
Former Director of Aurelian, Ex-President & CEO
of Young-Davidson Mines
Forbes Gemmell President & CEO Former precious metals analyst at Raymond
James covering mid-tier gold producers
10 years experience in the investment industry
CFA charterholder
Murray Paterson
VP Exploration & Development 15 yrs experience in open pit/underground,
precious/base metal operations in a variety of geological environments (Bolivia, Australia, Africa)
Mine Geological Superintendent for
Equinox at Lumwana and Chief Mine Geologist
at the world-class Geita Gold Mine in Tanzania
Dan Noone Director VP Exploration at Guyana Goldfields
20 years experience including senior geologist
roles in PNG, Indonesia & South America
Dean MacEachern
Director Co-founded Lago Dourado
20 years precious & base metals exploration predominantly with Falconbridge (1988-2005)
Jon Douglas
Director Senior VP & CFO of Northgate since 2001,
former Director of Aurelian
Involved in A&D and operation of gold projects
in North America and Australia
Michele McCarthy Director Chief Legal Officer for GMAC Residential Funding
Advisor to mutual funds and hedge funds on corporate governance, compliance & HR matters
7 LDM-TSXV
Juruena – Active Workings
Extensive Surface Workings
Jacaré pit
Est. 10,000 oz Au extracted in 1 year
Garimpeiros (Artisanal Miners) Property worked by garimpeiros since 1980s
(>0.5Moz Au mined)
Only alluvials and saprolite mined (to
an average depth of ~30m)
8 LDM-TSXV
Owned mid-1990s by Ourominas Minerals
Failed to make property payment in late 1997 (weak gold price, post-Bre-X)
Property position has been consolidated by Lago Dourado
100% ownership, ~70,000 hectares
Licences previously split between Talon & Geomin
Juruena – Background
9 LDM-TSXV
Juruena/Teles Pires Horst
Regionally extensive granite belt with multiple intrusive events
Stretches east-west for >400km, average width 30km, 7Moz produced 1979-1997
Access to the project by small airplane, dirt road and river
Juruena – Alta Floresta Gold Belt
10 LDM-TSXV
Intrusion Related Deposit
Mineralization structurally controlled
Multiple Styles of
Mineralization
High-grade veins with minor
sulphides
Sheeted quartz veins Stockworks Minor breccias Shear zones with intense fracturing Vein sets range from 1m up
to 50m wide, veins range from <1cm to 1m thick
Juruena – Local Geology
Core Area
Noventa
Graus
11 LDM-TSXV
Drilling vs Gold-In-Soil Anomalies
Core Area
Noventa Graus
Historic Drilling
91 holes (15,000m) drilled in mid-1990s
Concentrated on existing garimpeiro workings
No systematic drill work over entire mineralized system
Current Drilling
18,000m Phase I campaign ongoing through 2011
Currently 3 drill rigs turning
12 LDM-TSXV
Core Area
Noventa Graus
Geophysics
Core Area
Noventa
Graus
Reduced to the Pole Magnetic Field Radiometrics: Red = Potassium rich zones
Potassic alteration at Noventa Graus consistent with clearly delineated mag high/mag low contact zone
Core Area
13 LDM-TSXV
Juruena – Active Workings
Tomate Zone Discovered April 2010
14 LDM-TSXV
10m
Quartz sheeted veins at east end of Crentes Pit
2.7 g/t Au over 36m (oxidized) in hole J-01 underneath workings
Intercepts of 10.5m @ 15g/t and 5.8m @ 52g/t starting at vertical depth of 75m recorded beneath Crentes Pit
Juruena – Crentes Pit
15 LDM-TSXV
Shear zone
Example of intense fracturing filled with kaolinite
Juruena – Jacare Pit
Fault zone
Main source of gold the intersection of the shear zone (trending north-north-east) and the other fault zone (thin reddish zones easily visible) trending 340 degrees
16 LDM-TSXV
Juruena – On-site Infrastructure
On-site infrastructure largely complete (office, core shack, sleeping quarters, classroom, nursery,
kitchen/canteen)
17 LDM-TSXV
Juruena – Community Relations
School upgrade complete
Upgrade of local health clinic underway
Local committee formed to implement community programs
18 LDM-TSXV
2 known deposits hosted in eastern most package of volcanics and granite
Jauru belt hosts VMS type
showings and shear zone gold showings
Option agreement to acquire 70% of project
Historic Drill Intercepts for
J6-A Target
- 14.7 g/t Au over 12.0m
- 11.4 g/t Au over 11.0m
- 5.8 g/t Au over 12.1m
Jauru – Gold Exploration Project
Geomin Option (85,000 hectares)
20km
19 LDM-TSXV
Exploration upside
One of the most extensive gold-in-soil anomalies in Brazil
Property largely untested
Major zone to south (Noventa Graus) already discovered
Upcoming catalysts
Drilling – 18,000m (75 holes) campaign commenced December 2010
Three drill rigs now turning
Drill results – May 2011 onwards
Well financed – cash balance of ~$5mln
Proven and experienced executive team
Investment Opportunity
20 LDM-TSXV
Jauru
Payment schedule outlined below earns Lago a 70% interest (joint venture is established with standard dilution clauses)
Option to buyout remaining 30% for US$8 M
Juruena
Talon - 100% interest for $1 M cash, 0.5 M shares + 0.5 M warrants
Geomin – 100% interest for $1 M cash, 1.5 M shares + 1.0 M warrants
Appendix A - Deal Structures
Year-End Option
Payments (US$)
Exploration
(US$)
Total
(US$)
On Signing $150,000 Nil $150,000
August 2010 $250,000 $350,000 $600,000
August 2011 $300,000 $450,000 $750,000
August 2012 $300,000 $1,200,000 $1,500,000
August 2013 $500,000 $1,500,000 $2,000,000
Total $1,500,000 $3,500,000 $5,000,000
21 LDM-TSXV
Head Office Contact
55 University AvenueSuite 700
Toronto Ontario M5J 2H7
Tel: 416 368 5005Fax: 416 703 8299
www.lagodourado.com
Forbes Gemmell
President & CEO
Natasha Blackburn
Corporate Development
Contact