1 / 23

3 February 2005

SYDNEY MINING CLUB. 3 February 2005. DISCLAIMER. The information contained in this presentation has been prepared using the information available to Sino Gold Limited (Sino Gold) at the time of preparation of the presentation.

cody
Télécharger la présentation

3 February 2005

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. SYDNEY MINING CLUB 3 February 2005

  2. DISCLAIMER The information contained in this presentation has been prepared using the information available to Sino Gold Limited (Sino Gold) at the time of preparation of the presentation. External or other factors may have impacted on the business of Sino Gold and the content of this presentation since its preparation. In addition, all relevant information about Sino Gold may not be included in this presentation. Accordingly, you should not rely on the content of this presentation in relation to any further action including investment in Sino Gold. For further information about Sino Gold, you can obtain a copy of all recent ASX announcements made by Sino Gold at www.sinogold.com.au. Any person considering an investment in Sino Gold is advised to obtain independent financial advice prior to making an investment decision.

  3. 2005 - year of the rooster The roosters • 1933, 45, 57, 69, 81 or 93 • Outstanding performers – shine when centre of attention What to expect • nonsensical plans with simple things made complicated • overconfidence and disappointments • hard-line politics The best strategy • do not fuss • keep your eyes open and mouth shut • stick to practical and proven paths • check all facts and figures • avoid speculative ventures

  4. China’s Major Gold Deposits China - the case for consolidation Sino Gold plans to rule the roost

  5. The world’s 4th largest gold producer … • Fractured, small scale operations • Average production approximately 16,000oz pa • No comprehensive development plan • Mining by explorers with orebodies mined to provide cashflow • Hand-to-mouth existences • Little attention to safety and environment • No exploration expenditure • Few lasting community benefits • Little modern exploration carried out • Geological prospectivity is high • Country structural issues are the main inhibitor to development • Ranked 10th (top quartile) on Fraser Institute 2003 survey

  6. Ideally, what is required … • Projects to be fully funded • Overall development plans to be implemented • Modern and efficient processes to be used • Systematic extraction of deposits through planned and coordinated operations • Safety and environmental standards to improve • Ongoing exploration expenditure to occur • Profitable operations to deliver social benefits Government slogan “Scientific development”

  7. Other industries are receiving investment Foreign Direct Investment Largest recipient of FDI globally

  8. Global Exploration Expenditure The mining industry is missing out Less than 1% of FDI into mining

  9. Chinese Government policy and direction • Combine economic growth with social progress • Promote coordinated, balanced development • Aim to eliminate regional disparities – “Go West” • Eliminate waste of resources • Minimise environmental damage • Sustain economic development MLR 2004 White Paper supports consolidation and foreign investment

  10. What will emerge? • Similar to Australia in 1970/80s – largest operation (1974) Tennant Creek 171,000oz p.a • 4-5 growth oriented, well capitalised groups • 2-3 may well be Chinese • Sino Gold will be there • unique platform • 10 years experience in China • world class asset being developed • intermediate scale gold production • strong operating cash flow

  11. JINFENG is no turkey

  12. Jinfeng Hatching a big one 37 Global Development Assets > 3.5m oz 

  13. Jinfeng Hatching a big one 19 deposits not held by majors and a number are not being developed due to social, environmental or economic issues 

  14. Telfer Jinfeng Hatching a big one 2 development deposits >3.5M ozs not held by majors in Australiasia Jinfeng is one of them 

  15. Jinfeng project overview • Will be China’s second largest gold mine • Equity of 82% in project • Phase 1 gold production in mid-2006 • 1.2 million tpa, approx. 180,000oz pa • Ore Reserves of 2.1Moz – 88% conversion ratio • ~1Moz in open cut; 1.1Moz from underground Aug grade 5gpt • Mineral Resources of 3.5Moz upgrade of ~1.1Moz Inferred expected • Likelihood of more at depth • refractory ore type, using Biox® process, ~85% recovery • 12 year mine life • capital cost approx. US$70M • operating costs approx. US$183/oz • US$40 million project loan facility finalised – Stand Bank & HVB Jinfeng has entered the development & construction phase

  16. Jinfeng phase 2 expansion study • Scoping study completed by Ausenco • U/G development brought forward to startyear 2 (end of commissioning year) • Plant upgrade from 1.2Mtpa to 1.8Mtpa atcost of US$14 million (±30%) • No increase in operating costs per tonne • Gold production of approx 300,000oz pa from open pit and underground Will be China’s largest gold mine

  17. Jinfeng project timetable • All Development Permits complete • Relocation of Affected Families complete • Access Road Upgrading commenced • Evaluate Site Earthworks Tenders commenced • Start Construction Q1 05 • Complete Detailed Design Q2 05 • First Gold Pour mid-06 • Ramp-up to Design Capacity end-06

  18. Jinfeng is a world-class deposit • Geometry controlledby structural framework • Single mineralisationevent with high grade continuity and low nugget effect • F3 fault is dominant ore domain • Largest domains at F2-F3 fault intersection • F3 splays (eg F20) aresecondary mineralised structures • Open at depth 700m below surface, plunging to ESE • Over 50,000m of diamond drilling completed • Deposit defined over 750m strike length and to 700m depth • Average true thickness of 11m but is up to 30m thick • Contained gold ranges between 5,000 and 7,000oz per vertical metre in the well-defined central part of the deposit

  19. Jinfeng’s “Deep-East” extension • Deep potential shown by strong intensity and widening anomalous arsenic values (shown by green lines) • Broad arsenic zone outlines fluid flow and structurally controlled Au (in red lines) • Drill rig being mobilised

  20. Soil Geochemistry Aero-Magnetics with Geological Interpretation Trenching Samples Jinfeng’s near-mine opportunities • Series of “near-mine” targets within the structural corridor • High-grade trench values indicate immediate drill targets • Series of “near-mine” targets within the structural corridor • High-grade trench values indicate immediate drill targets • Targets => anomalous geochemistry (up to 1.2gpt Au), rock chips and some IP • Strongly anomalous gold soil geochemistry on dome contact to be investigated • 442km2 ground contracted in JV’s • Geological mapping, geochemical sampling and ground geophysics is focused on near-mine prospects • Extensive regional database being built • US$2M exploration program underway Exploration focus on supporting decisionto proceed with Phase 2

  21. Sino Gold’s pipeline strategy Operation  JCL(86%) Development JINFENG(82%)  Exploration WHITE MOUNTAIN SE GUIZHOUSHANDONGCHINA REVIEW 

  22. Sino Gold in summary • Unique country franchise • 1st mover advantage • World class Jinfeng deposit • Currently 3.5Moz and potential for much more • Jinfeng • Phase 1 to generate approx US$25-30M p.a operating cash flow • Phase 2 to generate approx US$45-50M p.a operating cash flow • Portfolio of exciting assets • able to continue growth SINO GOLD - the only substantial foreign producer in the world’s 4th largest gold producing country

  23. Finally, Sino Gold’s advice about China … Never Never Never Give Up! Winston Churchill

More Related