Exploring past gold producers
- 1. AFRICA RESOURCES INVESTMENT CONGRESS Exploring past gold producers Lance Hooper – Kilo Goldmines IRONMONGERS’ HALL, CITY OF LONDON ● TUESDAY-WEDNESDAY, 14-15 JUN 2011 www.ObjectiveCapitalConferences.com
- 2. Investor Presentation June 2011 J 2011 TSX Venture: KGL Frankfurt: 02K
- 3. Disclaimer The particulars contained herein were obtained from sources which we believe reliable but are not guaranteed by us and may be incomplete. The opinions expressed are based upon our analysis and interpretation and are not to be construed as a solicitation or offer to buy our analysis and interpretation and are not to be construed as a solicitation or offer to buy or sell the securities mentioned herein. This presentation contains confidential information and by viewing this presentation, the viewer agrees that all the information contained herein will be used by the reader solely to determine his/her interest in Kilo Goldmines Ltd., and that such information shall be retained exclusively for the benefit of Kilo Goldmines Ltd. The viewer agrees that he/she will t i d l i l f th b fit f Kil G ld i Ltd Th i th t h / h ill not, without the express consent of Kilo Goldmines Ltd., make use of, disseminate or in any way disclose any of the confidential information to any person, firm or business, except to the extent necessary for negotiations, discussions, and consultations with personnel or authorized representatives of the reader for the purpose of determining such interests in Kilo Goldmines Ltd. Kil G ld i Ltd No securities commission or other similar regulatory authority has reviewed or passed on the merits of this presentation and any representation of the contrary is an offence. This presentation is not, and under no circumstances is to be interpreted as, a prospectus, public information, solicitation or advertisement for the sale or trade of securities. information solicitation or advertisement for the sale or trade of securities TSX Venture: KGL Frankfurt: 02K 3
- 4. Senior Management g Klaus Eckhof, President and CEO, Director Geologist with 20+ years experience developing mineral G l i t ith 20 i d l i i l deposits throughout Africa, South America, Asia, Australia and Russia. Founded Spinifex Gold, Lafayette Mining, and Moto (20+ M oz Au in DRC acquired by Randgold in 2009). Moto (20+ M oz Au in DRC acquired by Randgold in 2009) Peter Hooper, Executive Chairman , Director B.Sc., Mining Engineering with 40+ years experience including gold exploration and production in South Africa, Ghana, Canada, Australia, and China. Extensive global relations and Board experience; close corporate ties in 20+ countries. TSX Venture: KGL Frankfurt: 02K 4
- 5. Management and Board g Stanley Robinson A Canadian geologist, Stanley Robinson is a graduate of Sir George Williams and the University of Geologist Ottawa, with over thirty years exploration and management experience in Canada and Africa, including six years with International Gold and Ashanti Goldfields in Burkina Faso and Ghana. For Lakota Resources Inc., Mr. Robinson was responsible for organizing and managing the Company's exploration projects and joint ventures in Tanzania. In Burkina Faso Mr. Robinson delineated a resource of 1.3 million ounces of gold on the Youga project; Youga is now in commercial production. Philip Gibbs Philip Gibbs A Chartered Management Accountant with extensive financial management experience in large g g p g CFO corporate environments in the manufacturing and retail sectors, both in North America and in Africa. Philip's multi‐disciplinary exposure includes areas of Market Research, Logistics and IT Systems implementations, providing a broad base of business acumen suited to growing businesses. Jacques Bouchard Jacques Bouchard A partner at Heenan Blaikie, Jacques Bouchard is the firm’s Director of International Business. He acts firm s Director as advisor for several governments, public corporations, multilateral development banks and major companies. Over the past few years, he has been lead counsel for many international mandates on behalf of clients from various countries. Jim Mustard Jim Mustard Jim Mustard formerly Senior Mining Analyst Vice President at Haywood Securities Inc is a Mustard, Analyst, President, Inc., Director professional geologist and registered professional engineer. With over 25 years of industry experience with major Canadian, international mining companies, and the Government of Canada, Jim’s interest focuses on the junior exploration sector to identify early stage opportunities. TSX Venture: KGL Frankfurt: 02K 5
- 6. Shareholders and Fundamentals Top 14 Institutions (~60% of all shares) * p ( ) Common Shares 164.2 M JVAR Capital, 1.2% Anson Group, 1.2% DPX Capital Inc, 1.2% Options 16.6 M Picton Mahoney , 1.5% Sequoia , 1.5% Pinetree, 2.5% Pinetree 2 5% Warrants 61.0 M Libra, 12.3% RBC, 2.7% Fully Diluted 241.8 M Insiders and Retail Market Value $29.6M RMB, 3.1% RMB 3 1% 54.9% (7 June 2011 @ $0.18/share) Sprott, 3.7% Altus Capital, 9.6% Randgold, 4.9% 4 9% Mackenzie Galena Asset Financial, 6.1% Mgmt, 7.7% * Data obtained from a variety of sources including Thomson and may not be representative of actual ownership. TSX Venture: KGL Frankfurt: 02K 6
- 7. Flanked by 2 Mega M oz Deposits y g p TSX Venture: KGL Frankfurt: 02K 7
- 8. NE DRC Exploration & Mining Activity p g y Banro (Twangiza Project) ‐ mine currently under construction; slated to begin production in Q4 2011. Randgold (Kibali Project) ‐ aims to produce first gold in mid‐2013, six months earlier than planned. Ashanti Goldfields (Mongbwalu Project) ‐ mine construction to begin mid‐2011 with production and construction to begin mid 2011 with production and operations to commence in 2013 Kilo Goldmines (Somituri Project) – initial inferred resource estimate of 2.0 MMoz Au released Q1 2011 for Adumbi Deposit; further exploration underway. Mwana Africa (Zani‐Kodo) ‐ updated M+I resource estimate of 1.3 MMoz Au released in Q3 2010; further p y exploration underway. Loncor ‐ no resource estimate to date; exploration ongoing. Rio Tinto ‐ no resource estimate to date; iron ore exploration program underway. Key targets include joint exploration program underway. Key targets include joint venture project with Kilo ERW properties (iron ore only). TSX Venture: KGL Frankfurt: 02K 8
- 9. Kilo Properties p TSX Venture: KGL Frankfurt: 02K 9
- 10. KGL Somituri Project j 8 Permis d’Exploitation (PE’s) 9694 Covers ~606 km sq. of the Ngayu 9692 Archaean Greenstone Belt Includes colonial era gold producers; Adumbi Kitenge Adumbi, Kitenge, Manzako & Maipunjie mines (PE 138 137 9691) Isiro ADUMBI & AREA OVERVIEW 140 9691 HISTORIC GOLD (ounces) Production: 291,000 Resources (Adumbi): 930,000 Past Gold Producer Bagbaie Adumbi 0 1 2 3 4 km 9695 Manzako 9693 Kitenge NiaNia Imbo River Ref: Royal Museum for Central Africa Tervuren, Belgium (2007) Maipinji Bugeco Intl (1988) Kilo has not verified the historical data, or re-calculated the historical resources. re calculated resources The data is non NI43-101 compliant TSX Venture: KGL Frankfurt: 02K 10
- 11. KGL Somituri – Adumbi Deposit Drill Holes & Section Lines Drill Results D ill R l • 2.60 g/t Au over 136.80m (1 Feb 2011) • 2.38 g/t Au over 89.45m (5 Jan 2011) • 2.07 g/t Au over 58.8m (7 Dec 2010) • 5.01 g/t Au over 21.0m (23 Nov 2010) • 3 33 g/t Au over 11 45m (21 Oct 2010) 3.33 g/t Au over 11.45m (21 Oct 2010) • 2.01 g/t Au over 83.70m (19 Oct 2010) TSX Venture: KGL Frankfurt: 02K 11
- 12. KGL Somituri – Adumbi Deposit Simplified Vertical Cross Section p TSX Venture: KGL Frankfurt: 02K 12
- 13. KGL Somituri – Adumbi Deposit Resource Estimate Graded Mineral Resource Estimates (Inferred) Cut off Tonnes above Grade above Tonnage above Million ounces Au (g/t Au) cut off cut off (g/t Au) cut off above cut off 0.50 46 307 259 1.37 80% 2.03 1.00 1 00 27 337 071 1.80 1 80 47% 1.58 1 58 Estimated strike length of 1.2 km that appears to be 2010 Somituri Exploration hosted within a regional lineament in excess of 5 km h t d ithi i l li ti f5k • 9,746 m diamond drilling length along which artisanal gold mining activity occurs • 734 m trenching • 592 m adit sampling The deposit remains open at depth p p p • 1,233 soil samples 1 233 soil samples Open‐pittable, starts at surface, favourable/simple CIL metallurgy (30% oxide, potential heap leach) 13
- 14. Adumbi Hill (Looking from SE to NW) Historic Workings (1927 to 1959)
- 16. KGL Somituri 2011 Exploration Plan p TSX Venture: KGL Frankfurt: 02K 16
- 17. KGL Somituri 2011 Exploration Plan p Strike Length Width Target Area Target g (km) (km) (Square km) (Square km) Adumbi North Prospect 0.5 0.50 0.25 Adumbi Gold Deposit – 2.03 Moz* p 1.2 0.20 0.24 Canal Prospect 1.5 0.10 0.15 Libreville – Monde Arabe Prospect 3.0 0.75 2.25 Vatican Prospect 1.0 0.75 0.75 Kitenge Prospect 1.2 0.80 0.96 Manzako prospect 2.5 0.50 1.25 Total 5.85 TSX Venture: KGL Frankfurt: 02K 17
- 18. KGL Somituri Kitenge and Manako Prospects g p MANZAKO PROSPECT • Strike length: +2.0km • 1015 m drilled in 2010 • Recent results: 9.92 g/t Au over 5.00m (Jan 2011) 9 92 / A 5 00 (J 2011) 9.37 g/t Au over 4.70m (Oct 2011) KITENGE PROSPECT • Strike length: +2.0km • 1711m drilled in 2010 • Recent results: l 21.4 g/t Au over 0.95m & 1.89 g/t Au over 8.15m (Jan 2011) TSX Venture: KGL Frankfurt: 02K 18
- 19. KGL ERW Rio Tinto JV for Iron Ore Rio Tinto Cash Title Title Min. Work Payments Ownership Expenditure Rio ‐> Kilo Phase 1 Phase 1 51% Rio 51% Rio $15.75 M $ $7.25 M $ (2009 – 2013) 49% Kilo Phase 2 75% Rio $50 M $50 M $10 M $10 M (2014 – 2018) 25% Kilo ‐ ‐ Kilo has the option Phase 3 to convert its’ equity for cash (2019 +) (2019 +) plus an NSR Kilo / Rio JV Properties (KGL ERW) Rio Tinto to manage and conduct all iron‐ore exploration activities. TSX Venture: KGL Frankfurt: 02K 19
- 20. Iron Ore JV – Early Indications y Rio has identified a 10km2 surface outcrop Direct shipping ore; +64%, low phosphorus h % l h h Two rigs operational Q3, 2011; drill pad locations have already been scoped Exploration to date: $7.6M 2011 Exploration budget: $4.5M 20
- 21. Investment Rationale 2.0 Million oz Au at 1.4g/t Au (0.5g/t Au cut‐off) initial inferred mineral resource estimate for the Adumbi Deposit, Somituri Project resource estimate for the Adumbi Deposit Somituri Project Adumbi Deposit starts at surface of a hill 130m above base level (i.e. open pittable; very low stripping ratio) and has favourable/simple CIL open‐pittable; very low stripping ratio) and has favourable/simple CIL metallurgy (30% oxide, potential heap leach) Experienced management team with a history of success in Africa & DRC Strategic partnership with Rio Tinto for iron ore assets Established camp with good infrastructure Blue sky potential TSX Venture: KGL Frankfurt: 02K 21
- 22. Next Steps p Increase number of drills turning from 2 to 4; 20,000 additional metres of drilling and an additional 2M oz Au (inferred) additional 2M oz Au (inferred) Drilling targets include: • Adumbi Deposit – expand resource estimate by p p y drilling along strike and at depth; turn inferred resources to measured (2 drills) • Further drilling on nearby Kitenge and Manzako prospects; and drill Vatican and Adumbi North • Initial drilling on PE 9692 (NW Somituri) Additional metallurgical test work is in progress Addi i l ll i l ki i and petrographic studies are planned Mapping, trenching, soil sample of other Somituri PE's to determine new potential drill targets 22
- 23. Contact Information Web site: www.kilogoldmines.com Email: info@kilogoldmines.com Phone: +1‐416‐867‐ +1‐416‐867‐8094 Head Office: 141 Adelaide Street West Suite 1200 Toronto, Ontario M5H 3L5 TSX Venture: KGL Frankfurt: 02K 23
- 24. Appendix 1 Gold Comparables TSX Venture: KGL Frankfurt: 02K 24
- 25. Public Trading Comparables g p Reserves and Resources Au Moz (Total + Historic) 16.0 14.0 DRC Peers 12.0 10.0 8.0 6.0 4.0 2.0 0.0 TSX Venture: KGL Frankfurt: 02K 25
- 26. Public Trading Comparables g p Enterprise Value ($US millions) 800 700 DRC Peers 600 500 400 300 200 100 0 TSX Venture: KGL Frankfurt: 02K 26
- 27. Capital Raised to Date p LONCOR KILO 25‐Sep‐09 $ 2,250,000 $ 0.75 01‐Feb‐06 $ 477,884 $ 0.10 18‐Feb‐10 $ 10,208,125 $ 1.25 01‐Nov‐06 $ 1,005,884 $ 0.30 18‐Feb‐10 $ 5,000,000 $ 5 000 000 $ 1.25 $ 1 25 NEM Mar‐07 $ 3,009,000 $ 3 009 000 $ 0.60 $ 0 60 16‐Dec‐10 $ 3,900,000 $ 1.95 Mar‐08 $ 3,150,000 $ 1.50 01‐Feb‐11 $ 19,975,000 $ 2.35 24‐Sep‐09 $ 10,015,500 $ 0.45 01‐Feb‐11 $ 3,995,000 $ 2.35 NEM 05‐Aug‐10 $ 1,037,060 $ 0.20 25‐Aug‐10 $ 300,000 $ 0.20 $ 45,328,125 $ 45,328,125 07‐Oct‐10 $ 3,662,940 $ 0.20 08‐Nov‐10 $ 4,748,000 $ 0.20 12‐May‐11 $ 10,000,000 $ 0.20 $ 37,406,268 TSX Venture: KGL Frankfurt: 02K 27
- 28. Appendix 2 Social Responsibility TSX Venture: KGL Frankfurt: 02K 28
- 29. KGL Foundation KGL Foundation The main objectives of the Foundation are to help the communities j p around the KGL exploration sites improve their lives: • by building the capacity of these communities by building the capacity of these communities to identify their needs and establish priorities; • by collaborating with stakeholders and interest groups to design, monitor, and evaluate groups to design monitor and evaluate programs and strategies; and, • by partnering with local, national, and international organizations already in the area. 29
- 32. Appendix 3 Project Photos – Dec. 2010 TSX Venture: KGL Frankfurt: 02K 32