ASX/Media Announcement

Transcription

1 ASX/Media Announcement 4 September 2012 DORAY TO PRESENT AT AMEC CONVENTION Doray Minerals Ltd, (ASX: DRM; Doray, or the Company) is pleased to advise that Managing Director, Mr Allan Kelly, will present an update on the Company at the AMEC Convention on Tuesday 4 September 2012 at the Burswood Convention Centre, Perth, Western Australia. Mr Kelly will outline Doray s recent major milestones including the Bankable Feasibility Study (BFS), project funding discussions and the decision to mine at its flagship property, and now 100% owned, the Andy Well Gold Project. Mr Kelly said the decision to mine confirmed the Doray Board s long-held belief that Andy Well would be WA s next high-grade gold mine. We are pleased to be presenting and exhibiting at the AMEC Convention, as we enter a new phase in the life of our Company, Mr Kelly said. Doray has consistently achieved numerous milestones since listing in early 2010 and we will continue to work tirelessly to reach our aim of bringing Andy Well into production in mid Mr Kelly is presenting at 3:55pm on Tuesday 4 September. Delegates are also invited to visit Doray s exhibition booth, number 98, where they will be able to speak to key Company representatives. For further information, please contact: -ENDS- Allan Kelly Anna Staples Managing Director Director Doray Minerals Limited AMN Corporate +61 (08) (0) info@dorayminerals.com.au anna@amncorporate.com About Doray Minerals Minerals explorer Doray Minerals Limited (ASX: DRM) listed on the ASX in February 2010 and was one of Australia's best performing IPOs in 2010 based on results from the high grade Andy Well gold project in Western Australia. The company is currently focussed on advancing Andy Well towards development and subsequent production. Doray has a strategic portfolio of gold properties within WA and South Australia, and each presents Doray with multiple discovery opportunities. About Andy Well Doray s 100%-owned Andy Well Gold Project is located approximately 45km north of Meekatharra, in Western Australia s northern Murchison region. In March 2010, Doray announced the discovery of the very high-grade Wilber Lode, a quartz gold lode within sheared basalt, adjacent to the Great Northern Highway. Since announcing a maiden high-grade JORC-compliant gold resource for the Wilber Lode in February 2011, Doray has continued to grow the resource, including achieving a 90% increase in December 2011 and a subsequent increase to the Indicated component in March 2012, which now totals 89% of the total resource. In June 2012, Doray announced the maiden high grade open pit and underground Mining Reserve for the project and indications of a second high grade quartz lode within the Judy Zone. The Company has recently completed a positive Bankable Feasibility Study for the project and has subsequently made a formal Decision to Mine. Subject to completion of project funding, the current development schedule proposes commencement of open pit mining by the end of 2012 and first gold production in mid-2013.

2 DORAY MINERALS LTD Andy Well - WA s next high grade gold mine Allan Kelly Managing Director 2012 AMEC Convention

3 Disclaimer This presentation is not a prospectus nor an offer for securities in any jurisdiction nor a securities recommendation. The information in this presentation is an overview and does not contain all information necessary for investment decisions. In making investment decisions in connection with any acquisition of securities, investors should rely on their own examination of Doray Minerals Ltd and consult their own legal, business and/or financial advisers. The information contained in this presentation has been prepared in good faith by Doray Minerals Ltd, however no representation or warranty expressed or implied is made as to the accuracy, correctness, completeness or adequacy of any statements, estimates, opinions or other information contained in this presentation. To the maximum extent permitted by law, Doray Minerals Ltd, its directors, officers, employees and agents disclaim liability for any loss or damage which may be suffered by any person through the use or reliance on anything contained in or omitted from this presentation. Certain information in this presentation refers to the intentions of Doray Minerals Ltd, but these are not intended to be forecasts, forward looking statements or statements about future matters for the purposes of the Corporations Act or any other applicable law. The occurrence of events in the future are subject to risks, uncertainties and other factors that may cause Doray Minerals Ltd s actual results, performance or achievements to differ from those referred to in this presentation. Accordingly, Doray Minerals Ltd, its directors, officers, employees and agents do not give any assurance or guarantee that the occurrence of the events referred to in the presentation will actually occur as contemplated.

4 Creating a new WA gold producer Listed Feb 2010, most successful ASX IPO of 2010 High grade Wilber Lode discovery (March 2010) 338,000 oz high grade JORC resource 248,000 oz high grade JORC mining reserve Potential for additional deposits (e.g. Judy Zone) Targeting first production in mid-2013 Low capex/low cost/high margin startup operation Mining Lease granted BFS completed Project financing in progress Ownership increased to 100% (Aug 2012) Strategic exploration portfolio in two gold provinces Experienced Board and management team with track record of discovery, development and production 2011 Gold Mining Journal Gold Explorer of the Year

5 Corporate Snapshot Capital Structure ASX Code DRM Shares in issue 81.3m Options (20c $2.56) 10.9m Share Price 0.72 Range (12 month) $0.72 $1.64 Market Capitalisation $58m Cash (June qtr) $5.2m Enterprise Value $53m Share Price Performance since 20c Substantial Shareholders Directors 18.6% Lion Selection 5.4% Ramelius Resources Ltd 7.5% Top 20 shareholders 56% Broker Research Argonaut Black Swan Shaw Bell Potter Casimir Helmsec

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7 Andy Well (Doray 100%) WA s next high grade gold mine 45km north of Meekatharra via major highway High grade Wilber Lode discovery Granted Mining Lease - BFS completed Project funding in progress project finance mandate signed with CBA On track for production mid-2013 Substantial exploration upside - potential for multiple deposits Flagship project of 1700km2 Murchison landholding

8 Wilber Lode Deposit Wilber Lode quartz vein resource 15.1g/t (331koz) High grade JORC mining reserve 11.7g/t (248koz) Potential for further increases with additional drilling 400, , , , , , ,000 50,000 0 Feb-10 Feb-11 Dec-11 Mar-12 Jun-12 TOTAL RESOURCES TOTAL RESERVES Reserve Proven Probable Total Tonnes Grade (g/t) Ounces Tonnes Grade (g/t) Ounces Tonnes Grade (g/t) Ounces Open Pit Stage , ,000 32, ,000 Open Pit Stage , ,000 28, ,000 Underground , , , ,000 Open Pit Low Grade , ,000 73, ,000 TOTAL ANDY WELL RESERVE , , , ,000

9 Andy Well Long Section

10 BFS Summary Key metrics Processing Total Ore tonnes Mined 717Kt Mined head grade 11.4g/t Average Mill throughput 197ktpa Metallurgical recovery 97.5% Average annualised production 74koz Total recovered ounces 256koz Initial mine life 3.7 years Financial (AUD) Capex $55M Operating cash cost (onsite C1) $/oz 1 $592 Total Cash Cost (C1 + C2) $/oz 2 $868 Gold Price Assumed ($/oz) $1600 LOM Revenue $409M LOM EBIT cash surplus (incl. royalties) $117.5M IRR 70% Project payback (@$1600/oz)* months

11 Mining/Processing Forecast 250, , ,000.0 Tonnes 100, , Jun-2013 Jun-2014 Jun-2015 Jun-2016 Jun-2017 Mined - Tonnes (OP+UG) Milled - Tonnes

12 Production Forecast , oz produced average annualised production Jun-13 Jun-14 Jun-15 Jun-16 Jun-17

13 Project Cash flow forecast 150,000, ,000,000 50,000,000 Cashflow cumulative cashflows 0 Jun-13 Jun-14 Jun-15 Jun-16 Jun-17-50,000, ,000,000

14 Andy Well Mine Life Significant upside potential for increases to initial mine life High grade/narrow vein gold deposits generally have short initial/ongoing mine life (2 years is common) Difficult and expensive to completely drill out from surface most efficiently drilled from underground (Wilber tested to 480m so far) Potential for parallel lodes evident from recent Judy drilling Company Deposit Initial reserve (koz) Initial Mine life Ounces produced (koz) NST Paulsens 45 8 months 87 SLR Mt Monger DOM/KCN Challenger years 800 RMS Wattle Dam 13 3 months 250 Doray Andy Well years -

15 Project Upside Significant near term upside Further conversions/extensions to Wilber Lode resource parallel lodes - high grade results from recent drilling at Judy Zone Cross cutting veins/structures Numerous additional targets Previous drilling shallow (<100m) and wide spaced Most significant deposits in Murchison region are underground (eg Hill 50, Great Fingall, Big Bell)

16 Project Upside minimal deep drilling

17 Development Timeline FY FY FY Quarter Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Resource updates Mining Lease grant Mining Studies Feasibility study Project Funding Contracts/Permitting Camp/Site Construction Plant construction Open Pit mining Underground Mining Production O/C U/G

18 Experienced Board Board Peter Alexander - Non-Executive Chairman 30 years experience in mineral exploration and mining in Australia and overseas. Former MD, Dominion Mining Ltd Gold Miner of the Year 3 years in succession Allan Kelly - Managing Director/CEO 20 years experience in exploration geology, geochemistry and project management in Australia and the Americas. Management experience in resources, tourism, hospitality and manufacturing sectors Formerly WMC and Avoca Resources Ltd. Heath Hellewell - Technical Director 20 years experience in mineral exploration geology and project management in Australia, Africa, Philippines and Scandinavia. Formerly Resolute and Independence Group and part of team responsible for pegging Tropicana deposit. Jay Stephenson - Non Executive Director 20 years financial experience in resources, manufacturing, wine, hotels and property sectors Leigh Junk - Non Executive Director 19 years practical experience in project evaluation, feasibility studies, production scheduling, mine design and operations throughout WA.

19 ...and Management Team Management Mark Cossom - Development Manager (Andy Well) 14 years experience in greenfields exploration, resource development, open pit and underground mine production and management in both Australia and PNG. Formerly with Harmony Gold at South Kal and Wafi-Golpu (PNG) Grant Dyker Chief Financial Officer 18 years financial experience in the resources industry Formerly CFO for Avoca Resources Ltd/Alacer Gold Iain Garrett - Financial Controller/Company Secretary Extensive commercial and public practice experience including with ASX listed gold producers Brad Drabsch - Exploration Manager 12 years experience, mostly in green fields exploration across Australia and Mongolia, exploring a variety of commodities including Gold, Copper, Iron Ore, Tin and Rare Earth Metals with Ivanhoe Mines and Independence Group. Peter Bamford General Manager, Operations 40 years technical and corporate experience in mining and civil engineering operations in Australia and the United Kingdom including with Maiden Gold, MIM, Heron Resources and Dominion Mining, where he was responsible for the feasibility study, development and operation of the high grade Challenger gold mine in South Australia. Peter Sperring Operations Manager, Andy Well 30 years experience in technical, project management and operations management roles in Australia including 10 years with Dominion Mining as Operations Manager at the Challenger, Labouchere and Mt Morgans Gold Mines.

20 Murchison Exploration Major strategic landholding in world-class gold province Large positions on major mineralised structures Substantial exploration upside Excellent access and several treatment options High grade drilling results from: Abbotts Side Well Outcropping high grade quartz vein at Tuckanarra

21 Abbotts (80%) 30km strike of mineralised Abernethy Shear Zone Historic workings and highgrade intersections Extensive lag Au anomalism Exploration upside no systematic Au exploration since 1997 Recent aircore drilling campaigns completed with numerous high grade results Follow-up planned 30km from Andy Well

22 Side Well (80%) Significant gold mineralisation under transported cover 30km S of Andy Well Adjacent to highway 60m deep depletion zone overlaying high grade mineralisation Recent RC intersections 5.2g/t 3.3g/t 8.6g/t 13.5g/t Open along strike and at depth

23 Tuckanarra Outcropping high grade quartz veins 100% owned 100km S of Andy Well Adjacent to highway high grade quartz veins outcropping over 100 s of meters Potential for parallel lodes Numerous high grade rock chips (up to 454g/t Au) No relevant drilling

24 Summary Andy Well Gold Project WA s next high grade gold mine Wilber Lode deposit - high grade mining reserve with substantial upside Low capex-low cost-high margin startup gold operation with 3.7 year initial mine life Mining Lease granted, BFS completed project funding in progress Aim to commence mining in second half of 2012 with first production in mid 2013 Potential for additional high grade deposits (eg Judy Zone) Listing discovery development production in 3 years Strategic exploration portfolio with multiple discovery opportunities Experienced Board and Management Team

25 ASX:DRM

26 Appendices Reserve Inventory July 2012 Reserve Proven Probable Total Tonnes Grade (g/t) Ounces Tonnes Grade (g/t) Ounces Tonnes Grade (g/t) Ounces Open Pit Stage , ,000 32, ,000 Open Pit Stage , ,000 28, ,000 Underground , , , ,000 Open Pit Low Grade , ,000 73, ,000 TOTAL ANDY WELL RESERVE , , , ,000 Note: Open Pit High Grade Reserves are based on a 1.4g/t Au lower cut-off grade, with Open Pit Low Grade Reserves based on a 0.3g/t Au lower cut-off grade. Rounding errors may occur

27 Appendices Resource Inventory March 2012 Indicated Inferred Total Wilber Lode Qtz Vein Tonnes Grade (g/t) Ounces Tonnes Grade (g/t) Ounces Tonnes Grade (g/t) Ounces 540, , , , , ,000 Footwall 1 Qtz Vein , ,000 22, ,000 Footwall 2 Qtz Vein , ,000 12, ,000 Sub Total for Qtz veins 540, , , , , ,000 Oxide Shear Zone 117, , , ,000 TOTAL ANDY WELL 657, , , , , ,000 WEBBS PATCH 33, ,800 11, , ,600 TOTAL 690, , , , , ,600 Note: No lower cutoff applied to Wilber and Footwall lodes, 0.5g/t lower cutoff applied to Shear Zone. Upper cutoff applied as follows: Shear Zone - 3g/t, Footwall lodes - 10g/t, Wilber Lode - 75g/t. Rounding errors may occur.

28 Appendices COMPETENT PERSONS STATEMENT The information in this presentation that relates to Exploration Results is based on information compiled by Heath Hellewell and Allan Kelly. Mr. Hellewell and Mr. Kelly are both Directors of Doray Minerals Ltd and members of the Australian Institute of Geoscientists and have sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which they are undertaking. This qualifies Mr. Hellewell and Mr. Kelly as Competent Persons as defined in the 2004 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr. Hellewell and Mr. Kelly consent to the inclusion of information in this announcement in the form and context in which it appears. The information in this announcement that relates to Mineral Resources is based on information compiled by Mark Cossom. The information in this announcement that relates to Ore Reserves is based on information compiled by Peter Bamford. Mark Cossom and Peter Bamford are full-time employees of Doray Minerals Ltd and are a Member and Fellow of the Australasian Institute of Mining and Metallurgy respectively. Both Mark Cossom and Peter Bamford have sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration and to the activities which they are undertaking. This qualifies Mark Cossom and Peter Bamford as Competent Persons as defined in the 2004 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mark Cossom and Peter Bamford both consent to the inclusion of information in this announcement in the form and context in which it appears.