1 2011 Vander Capital Partners Copyright 2011 Vander Capital Partners. All rights reserved.
1450 peter vander
Transcript of 1450 peter vander
![Page 1: 1450 peter vander](https://reader036.fdocuments.in/reader036/viewer/2022081717/55571987d8b42a067f8b47bd/html5/thumbnails/1.jpg)
Company Update
Gold Symposium: 14 November 2011
![Page 2: 1450 peter vander](https://reader036.fdocuments.in/reader036/viewer/2022081717/55571987d8b42a067f8b47bd/html5/thumbnails/2.jpg)
2
Investment Highlights
• Financially attractive shallow underground „Starter Mine‟
– Free cash flow ~A$125M; NPV (8%) ~$81M ($A1,550/oz)
– Free cash flow ~A$185M; NPV (8%) ~$127M ($A1,800/oz)
– Recovered metal: ~250,000oz gold, 73,000oz silver
– High grade gold (7.24g/t undiluted)
– $697/oz C1 cash cost (includes 10% contingency)
• Excellent partnerships in place to progress development of Dargues Reef
– Mining, plant construction, concentrate treatment, bank debt etc
• Near-mine exploration success suggests potential to significantly improve mine-life
and project economics
– 12.6m @ 9.90g/t & 5m @ 10.6g/t (Ruby Lode), 1m @ 103g/t (Chinamans) – not in model
– RC drilling to commence this month targeting near-mine discoveries
• Considerable regional upside potential with drill-ready targets
– 700km2 of tenure in the highly endowed Lachlan Fold Belt
![Page 3: 1450 peter vander](https://reader036.fdocuments.in/reader036/viewer/2022081717/55571987d8b42a067f8b47bd/html5/thumbnails/3.jpg)
3
Corporate Snapshot
3
September 2011 CRC
Shares on Issue ~221M
Listed Options (CRCO) on Issue (20c) 34M
Unlisted Options on Issue (~50c) 16M
Share Price $0.11
Market Cap ~$24M
Cash & Deposits (September 2011) ~A$3.0M
Debt * Nil
* $1 million cash and $4 million shares payable to Moly Mines on development funding
Baker Steel 13.3% Moly Mines 6.1% Board and Management 4.6% GBF (Mining Contractor) 3.2% Other Top 40 Shareholders 24.4% Other Shareholders 48.4%
Shareholding
![Page 4: 1450 peter vander](https://reader036.fdocuments.in/reader036/viewer/2022081717/55571987d8b42a067f8b47bd/html5/thumbnails/4.jpg)
4
Majors Creek Gold Field Reviving the Golden Heritage
• 700km2, southern Lachlan Fold Belt
• Sydney ~3hrs, Canberra ~1hr
• Potential to open new gold district
• New mine development at Dargues Reef
![Page 5: 1450 peter vander](https://reader036.fdocuments.in/reader036/viewer/2022081717/55571987d8b42a067f8b47bd/html5/thumbnails/5.jpg)
5
Dargues Reef Project Location Freehold Land Owned 100% by Cortona
![Page 6: 1450 peter vander](https://reader036.fdocuments.in/reader036/viewer/2022081717/55571987d8b42a067f8b47bd/html5/thumbnails/6.jpg)
6
Dargues Reef “Made to Mine”
• Gold production from 35 metres
depth with resource defined to 480
metres – remains open
• Initial 6-year mine life at av.
330,000tpa production rate
• Remarkable continuity of grade and
mineralisation
• Conventional underground mining
method – top-down long-hole open
stoping
• Paste-fill to allow full ore body
extraction
• Small, efficient mining fleet
![Page 7: 1450 peter vander](https://reader036.fdocuments.in/reader036/viewer/2022081717/55571987d8b42a067f8b47bd/html5/thumbnails/7.jpg)
7
• Key contracts are awarded, others are well advanced
• Mining Awarded (GBF)
• Process Plant Awarded (DRA Pacific)
• Milling Mill order imminent
• Power Awarded
• Box Cut Ready to award
• Access Road Ready to award
• Infrastructure Ready to award
• Tailings Storage Final design underway
• Major underground equipment procured (GBF)
• Mandate with Deutsche Bank for $37M bank financing – credit approval expected
late October 2011 at which point financing conditional only upon equity
• Concentrate agreement in place; Parkes Shire Council modification approvals in
progress – expected early 2012
• State and Federal environmental approvals in place
• Decision appealed to the NSW Land and Environment Court
• Paste plant – Consent modification expected early 2012
Dargues Reef Status of Key Milestones
![Page 8: 1450 peter vander](https://reader036.fdocuments.in/reader036/viewer/2022081717/55571987d8b42a067f8b47bd/html5/thumbnails/8.jpg)
8
Dargues Reef Life of Mine Costs (A$/oz) and Free Cashflow(A$1,800 Gold)
0
200
400
600
800
1000
1200
1400
1600
1800
2000
Revenue
Capita
l
Min
ing
Milli
ng
Offsite
CIL
Admin
/Reh
ab/R
oy.
Continge
ncy
Profit
(befo
re T
ax)
$-
$50,000,000
$100,000,000
$150,000,000
$200,000,000
$250,000,000
$300,000,000
$350,000,000
$400,000,000
$450,000,000
$500,000,000
Life of Mine Costs & Free Cashflow Ability to withstand lower GP
![Page 9: 1450 peter vander](https://reader036.fdocuments.in/reader036/viewer/2022081717/55571987d8b42a067f8b47bd/html5/thumbnails/9.jpg)
Mine Life Project vs NPV (8%) Significant upside from > production
9
$-
$50
$100
$150
$200
$250
$300
$350
6yrs Mine Life 8yrs Mine Life 10yrs Mine LifeA$ 1,250 $26,000,000 $59,000,000 $132,000,000
A$ 1,550 $82,000,000 $135,000,000 $226,000,000
A$ 1,800 $128,000,000 $198,000,000 $305,000,000
A$
Mill
ions
Mine Life Projection vs NPV (8%)
250K oz
482K oz
365K oz
![Page 10: 1450 peter vander](https://reader036.fdocuments.in/reader036/viewer/2022081717/55571987d8b42a067f8b47bd/html5/thumbnails/10.jpg)
An Analogue - Challenger Gold Mine
“Experience has demonstrated
that the high grade structures
at Challenger have excellent
continuity. However, they are
difficult to define without close
spaced information which is
most effectively gained from
underground access.” Kingsgate
Website, June „11
Breaking the Rules of Thumb!
• Underground commenced on 257,000oz R & R
• Initially ~700 OVM (when GP was A$550/oz!)
• Up to 150m vertical development per year
• Mined ~100,000oz per year for 6 years
• Current R & R >1.0Moz
10
![Page 11: 1450 peter vander](https://reader036.fdocuments.in/reader036/viewer/2022081717/55571987d8b42a067f8b47bd/html5/thumbnails/11.jpg)
11
• Significant new gold discovery ~150m
north of Dargues Reef: Ruby Lode
• 12.6m @ 9.90g/t & 5m @ 10.6g/t
• Open along strike and at depth
• Not in model - potential to add
resource ounces, near term production
and mine life
• Numerous other near mine targets to be
tested
Recent Near Mine Discovery Success
![Page 12: 1450 peter vander](https://reader036.fdocuments.in/reader036/viewer/2022081717/55571987d8b42a067f8b47bd/html5/thumbnails/12.jpg)
12
• <1km from Dargues
• Mineralisation identified for
>1km strike
• Rock chips to 6.0g/t
gold and 185g/t silver
• Soils +200ppb
• Epithermal signatures
• Potential to add resource
ounces, near term
production and mine life
• RC drilling program to
commence mid-September
Copper Ridge, 1km from Dargues
![Page 13: 1450 peter vander](https://reader036.fdocuments.in/reader036/viewer/2022081717/55571987d8b42a067f8b47bd/html5/thumbnails/13.jpg)
Excalibur, 2km from Dargues
13
• ~2km from Dargues
• Widespread mineralisation
identified at surface
• Rock chips to 8.0g/t
• Soils +200ppb
• Drill results include:
• 19m @ 5.6g/t gold
• Dargues „pyrite‟ style
• Potential to add resource
ounces, near term production
and mine life
• Drilling program being
planned
![Page 14: 1450 peter vander](https://reader036.fdocuments.in/reader036/viewer/2022081717/55571987d8b42a067f8b47bd/html5/thumbnails/14.jpg)
14
Regional Exploration
• Tenements cover 700km² of highly prospective Lachlan Fold belt tenure
• New geological model has regional application
• Several Dargues Reef „look-a-like‟ structures identified
• Additional targets based on alteration associated with large porphyritic intrusion
• Aim is to increase production and further extend mine life
![Page 15: 1450 peter vander](https://reader036.fdocuments.in/reader036/viewer/2022081717/55571987d8b42a067f8b47bd/html5/thumbnails/15.jpg)
15
Summary
• Dargues Reef - Australia‟s next new gold mine
• Initial +50,000oz pa production forecast to commence 2012
• High-grade deposit, favourable characteristics
– “Made to mine”
• Moderate cash costs, strong cash flows
• Robust „base-case‟ on which to grow
• Modular 330,000tpa treatment facility with growth optionality
• Exploration delivering success, with RC drilling to
commence mid-September
– Ruby Lode (depth extension)
– Copper Ridge (potential for new discovery)
– Excalibur (potential for new discovery)
![Page 16: 1450 peter vander](https://reader036.fdocuments.in/reader036/viewer/2022081717/55571987d8b42a067f8b47bd/html5/thumbnails/16.jpg)
16
www.cortonaresources.com.au Ph: +618 9485 0577
Fax: +618 9485 0706
16
Cortona Resources Ltd 5th Floor, 72 Kings Park Road
West Perth WA 6005
![Page 17: 1450 peter vander](https://reader036.fdocuments.in/reader036/viewer/2022081717/55571987d8b42a067f8b47bd/html5/thumbnails/17.jpg)
17
Disclaimer
Cautionary and Forward-Looking Statements
The information in this presentation is published to inform you about Cortona Resources Limited (“CRC” “Cortona” “the
Company”), and the activities of the Company and its subsidiaries.
All reasonable effort has been made to provide accurate information but CRC does not warrant or represent its accuracy and
reserves the right to make changes to it at any time without notice.
To the extent permitted by law, CRC accepts no responsibility or liability for any losses or damages of any kind arising out of
the use of any information contained in this presentation.
All forward-looking statements made in this presentation are qualified by the foregoing cautionary statements: “Investors are
cautioned that forward-looking statements are not guarantees of future performance and accordingly investors are cautioned
not to put undue reliance on forward-looking statements due to inherent uncertainty therein.”
Competent Person’s Statement
Information in this report relating to Mineral Resources has been completed by Mr. Aaron Green of Runge Ltd., who is a
member of the Australasian Institute of Mining and Metallurgy. Mr. Green 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‟ under the 2004 Edition of the Australasian Code for reporting of Exploration Results, Mineral Resources
and Ore Reserves (the JORC Code). Mr. Green consents to the inclusion of the data in the form and context in which it
appears. The contents of this report that relate to geology and historical exploration are based on information compiled by Mr
Peter van der Borgh, who is a Professional Geologist and Fellow of the Geological Society. He has sufficient experience
relevant to the style of mineralisation and types of deposit under consideration and to the activity being undertaken to qualify
as a „Competent Person‟ as defined in the 2004 Edition of the JORC Code. Mr. van der Borgh consents to the inclusion in this
report of the matters compiled by him in the form and context in which they appear.
The information in this report that relates to Majors Creek – Dargues Reef Gold Project mining section ore reserves estimates
is based on information compiled by Mr. Wayne Emslie who is a member of the Australasian Institute of Mining and Metallurgy
and has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the mining
method undertaken to qualify as a Competent Person as defined in the JORC Code (2004). Mr. Wayne Emslie is a full time
employee of Mining Plus Pty Ltd and consents to the inclusion in the report of the matters based on this information in the form
and context in which it appears.