Focused On Being A Burkina Faso Producer Investor Presentation December 2012 www.goldenrim.com.au
Disclaimer & Competent Person Statement This presentation has been prepared by Golden Rim Resources Limited (ABN 39 006 710 774) ( Golden Rim ) based on information available to it. No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions and conclusions contained in this presentation. To the maximum extent permitted by law, none of Golden Rim, its related bodies corporate, its or their directors, employees or agents, advisers, nor any other person accepts any liability for any loss arising from the use of or reliance on this presentation or anything contained in, omitted from or otherwise arising in connection with it, including, without limitation, any liability arising from fault or negligence on the part of Golden Rim, its related bodies corporate or its or their directors, employees or agents. The distribution of this document in jurisdictions outside Australia may be restricted by law and you should observe any such restrictions. This presentation is not an offer, invitation, solicitation or recommendation to invest in Golden Rim and neither this document nor anything in it shall form the basis of any contract or commitment. The information in this presentation does not take into account the investment objectives, financial situation and particular needs of investors and does not constitute investment, legal, tax or other advice. Before making an investment in Golden Rim an investor should consider whether such an investment is appropriate to their particular investment objectives, financial situation and particular needs and consult a financial adviser if necessary. This presentation does not purport to constitute all of the information that a potential investor may require in making an investment decision. Investments are subject to investment risk, including possible delays in repayment and loss of income or principal invested. Golden Rim does not guarantee the performance of the investment referred to in this presentation, the repayment of any capital invested or any particular rate of return. Any securities described in this presentation may not be offered or sold in the United States absent registration under the US Securities Act 1933 or exemption from registration. Neither this document nor any copy thereof may be taken or transmitted in the United States or distributed, directly or indirectly, in the United States or to any US person including (1) any US resident, (2) any partnership or corporation or other entity organised or incorporated under the laws of the United States or any state thereof, (3) any trust of which any trustee is a US person, or (4) any agency or branch of a foreign entity located in the United States. You acknowledge that circumstances may change and the contents of this presentation may become outdated as a result. Golden Rim accepts no obligation to correct or update the information or opinions in this presentation. Opinions expressed are subject to change without notice. By accepting this document, you agree to be bound by the above limitations. The information in this public report that relates to exploration results and mineral resources is based on information compiled by Mr Craig Mackay who is a member of The Australasian Institute of Mining and Metallurgy. Mr Mackay is an employee of Golden Rim Resources Ltd. Mr Mackay has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Mackay consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. Certain statements in the presentation are or maybe forward-looking statements and represent Golden Rim s intentions, projections, expectations or beliefs concerning among other things, future exploration activities. The projections, estimates and beliefs contained in such forward looking statements necessarily involve known and unknown risks, uncertainties and other factors, many of which are beyond the control of Golden Rim, and which may cause Golden Rim s actual performance in future periods to differ materially from any express or implied estimates or projections. Nothing in this presentation is a promise or representation as to the future. Statements or assumptions in this presentation as to future matters may prove to be incorrect and differences may be material. Golden Rim does not make any representation or warranty as to the accuracy of such statements or assumptions.
Key Points >3,800km 2 licence holding in Burkina Faso (4 projects) Near surface, high grade, Netiana gold discovery at Balogo 57m at 40.6 g/t gold, including 8m at 245 g/t gold 31m at 65.6 g/t gold, including 6m at 308 g/t gold Deeper diamond drilling underway Targeting a maiden JORC Resource by end of 2012 Scoping study anticipated for early 2013 Significant oxide gold intercepts from Yako 15m at 5.0 g/t gold & 12m at 5.7 g/t gold Kalsaka Mine 16km to SE Potential to be a 2 nd resource project in Burkina Faso Major untested gold-in-soil anomalies at Sebba Establishing a track record of success in West Africa Goal to be a gold producer
Corporate Snapshot (ASX:GMR) Share Price Performance Capital Structure ASX Code Share price (23 Nov. 2012) GMR A$0.095 52 week low/high A$0.095 - A$0.28 Liquidity ~600K shares/day Major shareholders Royal Group Abu Dhabi 12% Acorn Capital 8% Other Institutional Investors 17% Board & Management 8% Top 20 Shareholders 49% Number of Shareholders ~3,500 Broker Research Bell Potter Patersons Issued capital - Shares on issue 459m - Unlisted options 30m Market capitalisation (undiluted) A$44m Cash (30 Sept. 2012) A$4.3m Investments (12.5M shares ASX:RIE) A$1.0m Debt - Enterprise value A$39m
Experienced Board & Management Team Rick Crabb, Chairman Over 30 years experience in the resource sector with a background in legal and management; Current Chairman at Paladin Energy, Ashburton Minerals and Otto Energy. Councillor of WA Division of Australia Institute of Company Directors. Craig Mackay, Managing Director Geologist with over 23 yrs experience; previous positions with major resource companies, including Shell, Acacia Resources, AngloGold. Gilbert Rodgers, Executive Director Chartered Accountant and involved in the mining industry for more than 27 years; previously a director for a number ASX listed companies. Glenister Lamont, Non Executive Director Mining Engineer; previously General Manager of Ashton Mining and Executive Director at UBS AG. Peter Olubas, Exploration Manager Geologist with 22 years in exploration and mining. Previously worked for a number of major mining companies and has experience in SE Asia, PNG, Australia and Africa. Michel Bal, West African Operations Manager Geochemist; >30 yrs in the mining industry in West Africa. Involvement in gold, base metals, iron ore, semi-precious and precious stones, industrial minerals and tar-sand projects. Richard Zongo, Country Manager Burkina Faso Geologist; 23 years of West African experience including 15 years at senior level with publicly listed Canadian and Australian exploration companies in Burkina Faso, Mali, Niger and Ghana. 50 permanent staff in West Africa (including 10 experienced geologists) Nadir Al Hammadi, Non Executive Director Director of PAL Technology Services, a member of the Royal Group conglomerate and GMR major shareholder. Hayley Butcher, Company Secretary Chartered Secretary and governance professional. Experience with a number of ASX listed companies
West Africa and Burkina Faso West Africa More than fifty >1 million ounce gold deposits Fastest growing gold producing region in the world Burkina Faso 1 th 5 of prospective greenstone belt Established mining framework 6 new mines in past 5 years Gold production grew by 41% in 2011 Now the 4 th largest gold producer in Africa Country earned US$258 million in 2011 from the gold sector
Burkina Faso Projects
Balogo Project (Burkina Faso) Netiana Gold Discovery Near surface under 2m of soil cover No artisanal miners Multiple, high grade gold quartz vein lodes Oxide intercepts include: 57m at 40.6 g/t gold, incl. 8m at 245 g/t gold 31m at 65.6 g/t gold, incl. 6m at 308 g/t gold 22m at 13.6 g/t gold, incl. 2m at 91.5 g/t gold Fresh intercepts include: 13m at 111 g/t gold, incl. 4m at 343 g/t gold 12m at 20.5 g/t gold, incl. 3m at 77.8 g/t gold 7m at 22.8 g/t gold, incl. 2m at 72.3 g/t gold Average weighted grade is 15 g/t gold (uncut) Lodes strike for 400m (open) Continuity & geometry of the lodes confirmed to 85m depth Potential for significant depth extensions
Plan of the Netiana Lodes at Balogo
Netiana Lodes: Drill Section 10,025N
Proposed Work for Netiana Potential for low capex/low cost /high margin open pit operation on a resource at Netiana Deeper diamond drilling underway o o o 19 holes (3,100m HQ diamond, 1,400m RC recollars) Diamond drilling to test 85m 200m Some infill & twin diamond holes Metallurgical test work underway Targeting maiden JORC resource estimate by end 2012 Scoping study anticipated for early 2013 Considerable scope for further discoveries in the vicinity of Netiana Gravity survey completed 3D IP survey planned for January 2013 20,000m auger drilling planned for December 2012
Exploration Potential at Balogo High grade gold quartz vein mineralisation Potential for additional high grade gold deposits Focus on discrete magnetic anomalies Past soil sampling ineffective IOCG-style gold and copper mineralisation 11m at 2.2 g/t gold, 2.7% copper, incl. 3m at 5.8 g/t gold, 8.2% copper 24m at 1.4 g/t gold, 0.9% copper (EOH) Current drilling over 2.3km Magnetic anomaly extends for >5km
Yako Project (Burkina Faso) Strategic location o o o Riverstone Resources (3.4Moz Karma Project) to west Cluff Gold (0.6Moz Sega Project) to east Cluff Gold s 0.8 Moz Kalsaka Mine located 16km SE 6 major artisanal mining sites Multiple oxide gold-mineralised zones intersected over 1.4km Better intercepts include: 15m at 5.0 g/t gold 12m at 5.7 g/t gold 19m at 4.1 g/t gold New targets outlined in structural study Proposed Work Program 40,000m of auger drilling underway RC drilling of target areas (March 2013)
Sebba Project (Burkina Faso) 1,928km 2 area 3 major regional shear zones (over 140km) Active artisanal gold workings Visible gold in quartz veining Extensive gold-in-soil anomalies with assays up to 14.5 g/t gold High grade rock chips up to 184 g/t gold Significant RAB intercepts up to 8m at 2.43 g/t gold Proposed Work Program 5,000m of RC drilling scheduled for January 2013
Divestments Mali Golden Rim s 2 gold projects (Sepola and Faraba) are being divested Include an Inferred Resource of 181,000 ounces at 1.5 g/t gold Site visits late November Final offers due in mid-december 2012 Sweden Golden Rim s Abu Dhabi alliance company, Royal Falcon Mining LLC is divesting its interest in the Falun and Bersbo gold-base metal projects
Continuous News Flow November 2012 Preliminary Netiana metallurgy First Phase 3 Netiana diamond drilling results Balogo gravity survey Commencement of 40,000m auger drilling at Yako December 2012 Phase 3 Netiana diamond drilling results Maiden JORC resource for Netiana Commencement of 20,000m auger drilling at Balogo Yako auger drilling results Divestment of Mali assets January 2013 Commencement of Scoping Study at Netiana* Commencement of 5,000m RC drilling at Sebba Balogo & Yako auger drilling results 3D IP survey at Balogo *This work is dependent on the size and grade of the JORC resource and the results of the metallurgical testwork End Q1/2013 Commencement of Feasibility Study at Netiana* Upgraded JORC resource for Netiana* Sebba drilling results Commencement of RC drilling at Yako *Dependent on the success of earlier work
Investment Highlights Current deep drilling is seeking to establish Netiana as Golden Rim s first mining project Maiden JORC resource for Netiana is expected by end of 2012 Conceptual work suggests Netiana has the potential to support a low capex/low cost/high margin operation from a compact, high grade, open pit Scoping Study is anticipated to commence in early 2013 Further exploration around Netiana has the potential to identify satellite high grade gold deposits Golden Rim s other projects in Burkina Faso are highly prospective and further discoveries are anticipated