Investor Update - June 2012

Transcription

1 DORAY MINERALS LTD Investor Update - June 2012 Developing WA s next high grade gold mine Allan Kelly Managing Director ASX:DRM

2 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. 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.

3 Creating a new WA gold producer Listed Feb 2010, most successful ASX IPO of 2010 Andy Well - High grade Wilber Lode discovery 338,000 oz high grade JORC resource 235,000 oz high grade JORC reserve Potential for further increases/additional deposits Targeting production from Andy Well in mid-2013 Potential low capex/low cost/high margin operation Mining Lease granted BFS/project financing in progress Strategic landholdings 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

4 Corporate Snapshot Capital Structure ASX Code DRM Shares 81.2m Options (20c $2.56) 11.5m Share Price 0.90 Range (12 month) $0.61 $1.64 Market Capitalisation $73m Cash (Mar qtr) $9m Enterprise Value $64m Share Price Performance since listing Substantial Shareholders Directors 18.6% Lion Selection 5.4% Ramelius Resources Ltd 7.0% Top 20 shareholders 56% Broker Research Argonaut Black Swan Shaw Bell Potter Casimir Helmsec

5 Experienced Board/Management Board Peter Alexander - Non-Executive Chairman 30 years experience in mineral exploration and mining in Australia and overseas. Former MD, Dominion Mining Ltd Allan Kelly - Managing Director/CEO 20 years experience in mineral exploration in Australia and the Americas. Formerly WMC and Avoca. 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. Jay Stephenson - Non Executive Director 20 years financial experience in resources, manufacturing, wine, hotels and property sectors Leigh Junk - Non Executive Director 19 years experience in project evaluation, feasibility studies, production scheduling and mine design throughout WA. Management Mark Cossom - Development Manager (Andy Well) Grant Dyker Chief Financial Officer Iain Garrett - Financial Controller/Company Secretary Brad Drabsch - Exploration Manager Peter Bamford General Manager, Operations Peter Sperring Operations Manager, Andy Well

6 Andy Well Andy Well Gold Project (Doray 80%) 45km north of Meekatharra via major highway Northern end of Meekatharra Greenstone Belt High grade Wilber Lode deposit High gravity/total gold recoveries Granted Mining Lease BFS/project funding in progress On track for production mid-2013 Potential for multiple deposits Substantial exploration upside

7 Wilber Lode Deposit High grade JORC mining reserve High grade open pits and U/G 12.8g/t (235koz) Wilber Lode quartz vein resource 15.1g/t (331koz) 400, , , , , , ,000 50,000 TOTAL RESOURCES TOTAL RESERVES Potential for further increases with additional drilling 0 Reserves Proven Probable Total Tonnes Grade (g/t) Tonnes Grade (g/t) Tonnes Grade (g/t) Doray 80% Open Pit Stage , ,000 32, ,000 12,000 Open Pit Stage , ,000 31, ,000 11,200 Underground , , , , ,800 Open Pit Low Grade , ,000 73, ,000 1,600 TOTAL , , , , ,600

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9 Key Parameters Wilber Scoping Study Small open pit plus mechanised narrow vein underground mine 150,000tpa Gravity/CIL plant Accommodation village in Meekatharra Mill throughput Mined head grade 150ktpa 12.3g/t Metallurgical recovery 96.5% Average annual production Mine life 55-60koz years Capex $55M Operating cash cost $ /oz LOM pre-tax cash surplus $135M NPV (AUD$1600 gold, 8% discount rate) $106M IRR 79%

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

11 Andy Well Significant upside potential Previous drilling shallow (<100m) and wide spaced Numerous additional targets Potential for: extensions to Wilber Lode parallel lodes Cross cutting veins/structures High grade results from recent drilling at Judy Zone

12 Andy Well - Judy Judy Zone High grade quartz vein parallel to Wilber lode Recent results : 18.7g/t (EOH) 21g/t 30.5g/t 98g/t 300g/t 33.8g/t Open at depth and along strike Potential to add ounces quickly

13 Murchison 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 Webbs Patch

14 Tuckanarra (Doray 100%)

15 Aims Andy Well June/July 2012 Bankable Feasibility Study Secure project financing Decision to proceed Andy Well /13 FY Open Pit mining Construct processing plant Commence underground mining Ongoing Exploration Andy Well Murchison regional South Australia

16 Doray will be a near-term high-margin gold producer and self-funded explorer Andy Well Gold Project (Doray 80%) High-grade Wilber Lode deposit High grade maiden mining reserve with substantial upside Low capex/low cost/high margin gold operation Mining Lease granted Summary Development studies well advanced Aim to have first production in mid 2013 Listing discovery development production in 3 years Potential for additional high grade deposits (eg Judy Zone) Strategic land position with multiple discovery opportunities Experienced Board and Management Team

17 ASX:DRM

18 Appendices Reserve Inventory June 2012 Reserves Proven Probable Total Tonnes Grade (g/t) Tonnes Grade (g/t) Tonnes Grade (g/t) Doray 80% Open Pit Stage , ,000 32, ,000 12,000 Open Pit Stage , ,000 31, ,000 11,200 Underground , , , , ,800 Open Pit Low Grade , ,000 73, ,000 1,600 TOTAL , , , , ,600 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

19 Appendices Resource Inventory March 2012 Wilber Lode Qtz Vein Tonnes Indicated Inferred Total Grade (g/t) Tonnes Grade (g/t) Tonnes Grade (g/t) Doray attrib. 540, , , , , , ,700 Footwall 1 Qtz Vein , ,000 22, ,000 2,100 Footwall 2 Qtz Vein , ,000 12, ,000 1,000 Sub Total for Qtz veins 540, , , , , , ,800 Oxide Shear Zone 117, , , ,000 2,300 TOTAL ANDY WELL 657, , , , , , ,100 WEBBS PATCH 33, ,800 11, , ,600 6,600 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.

20 Abbotts (80%) 30km strike of mineralised Abernethy Shear Zone Numerous historic workings and prospects Extensive lag Au anomalism Numerous historic high-grade intersections Exploration upside no systematic Au exploration since 1997 Recent aircore drilling campaigns completed with numerous high grade results Infill drilling in progress

21 Murchison Strategic land position amongst large deposits Excellent access and infrastructure Limited effective modern exploration Several highly prospective prospects Lake Webbs Patch Black Tank Well Magnet North

22 Nuckulla Hill 100km strike of mineralised Yarlbrinda Shear Zone 100% owned Adjacent to Tunkillia (0.8Moz Au, 1.6Moz Ag) No systematic gold exploration since 1997 Widespread untested calcrete anomalism Significant historic drill intersections Detailed airmags completed numerous structural targets PACE funding announced