121120 Pcp Gunung Rosa Mine q4 2012

7/28/2019 121120 Pcp Gunung Rosa Mine q4 2012

1/36

Gunung Rosa Mine Q4 2012

An Indonesian gold mine that can bereopened immediately

ASX - PCP


2/36

Important Notice and Disclaimer

Paramount Mining Corporation Limited has prepared this presentation 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.All dollar terms expressed in this presentation are in Australian dollars unless otherwise stated.

To the maximum extent permitted by law, none of Paramount Mining Corporation Limited, its directors, employees or agents,

advisers, nor any other person accepts any liability, including, without limitation, any liability arising from fault or negligence on the

part of any of them or any other person, for any loss arising from the use of this presentation or its contents or otherwise arising in

connection with it.

This presentation is not an offer, invitation, solicitation or other recommendation with respect to the subscription for, purchase or sale

of any security, and neither this presentation nor anything in it shall form the basis of any contract or commitment whatsoever. This

presentation may contain forward looking statements that are subject to risk factors associated with gold exploration, mining and

production businesses. It is believed that the expectations reflected in these statements are reasonable but they may be affected bya variety of variables and changes in underlying assumptions which could cause actual results or trends to differ materially, including

but not limited to price fluctuations, actual demand, currency fluctuations, drilling and production results, reserve estimations, loss of

market, industry competition, environmental risks, physical risks, legislative, fiscal and regulatory changes, economic and financial

market conditions in various countries and regions, political risks, project delay or advancement, approvals and cost estimates.

The information in this presentation that relates to exploration and production targets refers to targets that are conceptual in nature,

where there has been insufficient exploration to define a Mineral Resource and it is uncertain if further exploration will result in the

determination of a Mineral Resource.

Terry Holohan is a Member of the Institute of Materials, Minerals and Mining (UK) and is a Chartered Engineer with the Engineering

Council (UK) as well a full time employee of Paramount and thus acts as their internal Competent Person.

He has sufficient experience and knowledge relevant to an acquisition of this type as well as understanding the geology in the region

and the engineering requirements for the development of such a mine under consideration . This knowledge and experience qualifies

him as a Competent Person as defined in the December 2004 edition of the Australasian Code for Reporting of Exploration Results,

Mineral Resources and Ore Reserves (the JORC Code). This presentation is based upon field inspection of the Gunung Rosa

Project area, West Java, including the drill core and results during 2011/12 along with input from his associates who have worked on

the property. All of the significant information reported herein was available to Mr Holohan and was reviewed by him for this

presentation.


3/36

The Company ASX: PCP

Capitalisation (at 26 October 2012)

Share price 8c Issued shares ~318m

Unlisted options 24m

Convertibles AUD 5.15m @ 4c (~130 million shares)

Market Capitalisation ~AUD 25m

52 week high/low 8.1c/3.7c

Shareholders Share Price Graph

Top 20: 88%

Substantial shareholders

Resource Global Finance Ltd 16%

Zurily Resources 16%

J P Morgan Nominees 13%


4/36

The People - Board and Management

Mohammed (Mo) Munshi, Non-executive Chairman: Geologist with Mining Engineering background and Businessmanwith >30 years of experience in finding, funding and developing mineral resource properties. Previously with AshantiGoldfields, J CI, Normandy Mining and Ivanhoe Mines has worked extensively in Asia, Australia, Africa and SouthAmericaTerry Holohan, CEO & MD: Metallurgist and Chartered Engineer with >30 years of experience in exploring, developingand operating mineral resources with specialist experience in precious and base metals. Previously with Anglo American,

Gencor, Golden Dumps, BHP Billiton, Ivanplats and Platmin has worked extensively in Africa, Australia and Asia. Overthe last ten years he has acted as a Competent Person on the TSX, ASX, AIM, and J SE bourses.Garry Taylor, CFO & Co. Sec: A Certified Practising Accountant with >30 years of experience in financial management,risk management, corporate governance and strategy implementation in publicly-listed resource companies. Previouslywith Mitsui & Co where he managed an international trading desk on steel products and has worked extensively inAustralia and AsiaNeil Rutherford, Head of Geology: Geologist with >35 years of experience in mineral exploration, project managementand evaluation with specialist experience in base metals. A recognised industry consultant and lecturer in a range of

mineral commodities has worked extensively in Australia, Asia (including Turkey) and Africa.Over the last fifteen yearshe has acted as a Competent Person on the ASX bourse

Mufti Habriansyah, Non-executive Director: Resources and commercial lawyer with >15 years of experience innatural resources and corporate law in Indonesia. P reviously a partner with S&T (Freehills) has advised to large miningcorporations such as BHPB and PT Antam

Guy Anderson, Non-executive Director: Chemical Engineer, Chartered Accountant and Stockbroker with >30 years ofexperience in the resources industry. Previously with PWC, J ames Capel, CIBC WM and Ivanplats has worked primarilyin Europe and Africa.

John Arbuckle, Non-executive Director: Accountant and corporate advisor with >20 years of experience in theminerals resources industry. Previously with Mount Gibson, Perilya, Rio Tinto, North Limited and Anaconda nickel hisexperience is predominantly in Australasia


5/36

The Asset - 125km from capital city Jakarta

GUNUNG ROSAPROJECT


6/36

The Asset - Gunung Rosa Mine

Purchasing 85% shares in PT CKP (72.25% attributable to PCP) containingthe Gunung Rosa asset:

Mining License (IUP) valid for 20 years from 2010

Inferred Mineral Resource of 634koz of Au over 900m of 2.5km strike down to 250m still open on all sides

10-20m vein on surface could be accessed by open pit mining

600kg bulk underground sample collected measuring 11.4gpt Au

Aeromagnetic Program and follow-up geochemistry confirmed presence of manysignificant geological targets including several parallel veins at surface

Original local shareholders will retain 15% shares represented, asCommissioner of PT CKP, by prominent captain of Indonesian Mining IndustryDr Ir Rozik Soetjipto

President and COO of PT Freeport, Indonesia

Previously State Minister of Public Works and Director General of Mines

Not positioned in any Forestry or National Parks areas


7/36

Recent Highlights

Resource extended to 634koz Au (358koz) over 900m of strike

Inferred 3Mt at 6.8 gpt Au for 634koz Au at 1.5gpt cut-off

By-products of 1Moz Ag, 59kt Zinc, 13kt Lead and 8kt Copper

Metallurgical Gold recovery presently 86%

Base Case EBITDA of ~USD 1k/ounce

AMDAL/EIA study being initiated

Exploration confirmed strike 2.5km and located several veins parallel

to main vein with exciting geochemistry values


8/36

The Asset A Brownfields Project


9/36

The Asset - Metal in the Ground

Above 900m RL at 3 gpt cut-off ~ Century

Grade at 11.73 gpt Au1 drilling supported by underground sampling

Bulk metallurgical sampling at 11.4 gpt Au in Level 1

Lower levels flooded to be drained shortly

Below 900m RL at 1.5 gpt Au cut-off ~ PCP

Grade at 5.5 gpt Au2 not supported by underground sampling

Historically Dutch and J apanese miners recovered ~20koz of gold at

>15gpt Au

Alteration mineralogy in drill holes and Aeromag indicates the

potential for a porphyry system source for precious and base metals

1 The portion of the Mineral Resource and Reserves estimated by Century is appended as Appendix I

2 The PCP Mineral Resource is appended as Appendix II


10/36

Historic Mineral Resource and Reserve1

Cut-off 3gpt Au Tonnes Au g/t Au oz Zn % Zn t Measured Resource 125,470 12.77 51,514 3.33 4,178Indicated Resource 302,878 13.59 132,336 2.99 9,056Inferred Resource 371,000 14.67 174,983 3.71 13,764Total 799,348 13.96 358,832 3.38 26,998

Cut-off 3gpt Au Tonnes Au g/t (cut) Au oz Zn % Zn t Proved Ore Reserves 142,000 11.20 51,133 3.31 4,700Probable Ore Reserves 258,000 11.52 95,557 2.88 7,430Total 400,000 11.41 146,690 3.03 12,130

Century based this on 34 intersecting drill-holes: the metal grade of this resource wassignificantly boosted by over 2,500 channel samples from the underground development

despite a top-cut at 50gpt Au.

1 For more information see Companys ASX announcement of 08 September 2011


11/36

Combined Century and Paramount Resource

Conservative mining cuts have been used with 0.5m dilution either side for competent rockand 1m either side for less-competent rock as well as a minimum mining width of 2m:further engineering studies will determine the optimal mining parameters

Cut-off Tonnes Augpt

Auoz

Agoz

Znt

Pbt

Cut

1.5gpt Au 2,992,710 6.8 633,900 1,045,220 59,488 13,020 8,230


12/36

The Asset Progress on Metallurgical Test-work

The preliminary saleable product metallurgical recoveries on bulk sample as

determined by Rob Burger of SGS Perth are:

Gold ~86% - from preliminary sighter tests

82% of the gold recovered by CIL;

Further 4% of the gold recovered in the base metal concentrates

Base Metals and Silver into Concentrates

~96% of the Zinc

~87% of the Lead

~92% of the Copper

~94% of the Silver

Now focussing on optimising these recoveries, including alternative unitoperations, however expect Indonesian-standard CIL/flotation circuit for this typeof ore


13/36

The Asset - The 2012 Development Plan

Complete metallurgical optimisation test-work, to improve on present

Gold recoveries of 86% (target >90%), and alter plant design

accordingly

Pre-Development Engineering:

Initiate AMDAL

Investigate open-pit options on surface veins of 10-20m thick

Revise Base Case engineering study scope

Purchase both surface rights (63ha) and long lead items

Drain the mine fully and resample drives

Enter into refining agreement with Indonesian entities to treat products

from late 2014


14/36

The Asset - Plant hasadequate space forexpansion

Cap PaluPortal


15/36

The Asset 2013 Mine Development

Re-open sub-level adits to drain mine tostart refurbishment of development

drives and shafts

Start open pit mining if feasible

Start cut and fill underground panel

development with hand-held drills,

focusing on the high grade material

initially

Start stoping when development

advanced a la Way Linggo!


16/36

Start mining in Q2 2013

Within ~20 months (Q3 2014) mine at a rate of 30-35koz of Au per annum(>100ktpa run-of-mine) from existing development drives;

expected cash-cost of 900m RL)

First metal pour Q4 2014 (~18 months plant construction)

Expand mining during 2015 increase production to 40-50koz per annum during 2015-16

Post 2016 expand into optimal size as identified by Exploration

The Asset Base Case without Open Pit Acceleration


17/36

Key:1 - AGM approve purchase of WL 2 - KRM buys WL 3 - Mine development starts/Plant ordered 4 -Forestry Permit Received 5 - 15k tons of ROM (8 months of mining) 6 - Plant commissioning starts 7 - firstgold poured (17mths from plant ordered) 8 - Producing at 20koz Au per annum rate (20 months of mining) 9 -Producing at 40koz Au per annum rate (24 months of mining - plateaud)

1 2 3 4 5 6 7

Paramount

8 9

The Asset Position on the Enterprise Value Curve


18/36

The Asset - Target Posit ion on Cost Curve

Gunung Rosa - Should be in First Quartile!


19/36

The Company Juniors best leverage on gold price

Kingsrose1

(Way Linggo)Medusa1

(Co-O)PCP

(G Rosa)

Total Au Resources (koz) 486 3,119 634

Total Au Reserves (koz) - 568 1472

Enterprise Value (AUD mill ion) 290 1,070 30

EV/Resource oz (AUD/oz)(Attributable)

701 343 65*

1 Annual Reports of J une 2012

2 Original Reserve ex Century in Appendix III

* Significant further upside available when considering the recentlyidentif ied mineralisation


20/36

Use of Proceeds estimate for Pre-Development of AU$ 3 million:

Geology and Mine Survey AU$ 1 million

Met Work, Mine Design, Engineering Study and Amdal AU$ 1 million

G&A (including Land Acquisition applications) AU$ 1 million

Total AU$ 3 mil lion*

*of which AU$1.5 million raised on 19 October 2012 through an issue at 7 cents per share

The Company Equity Raising Q4 2012


21/36

Contacts

Mo Munshi

+86 139 1017 5192 (M)[email protected]

Terry Holohan Garry Taylor

+65 9230 7751 (M) +65 9665 5840 (M)

[email protected] [email protected]

Operations Office Corporate Office

6 Temasek Boulevard 100 Parry St

25-03 Suntec Tower 4 Perth, WA

Singapore, 038986 Australia, 6000

+65 6884 9423 (O) +61 8 9328 5600 (O)

Website Information

www.paramountmining.com [email protected]
mailto:[email protected]:[email protected]:[email protected]://www.paramountmining.com/mailto:[email protected]:[email protected]://www.paramountmining.com/mailto:[email protected]:[email protected]:[email protected]


22/36

Appendix


23/36

The People Commissioners and Directors of PT CKP

Mohammed (Mo) MunshiChairman Commissioner Mufti Habriansyah

President Director

Terry Holohan

Director

Dr Ir Rozik Soetjipto

Commissioner

COO/Director, PT Freeport Indonesia

Donny Padmanagara

Commissioner

Ir Prianda Raspati

DirectorJasir Karwita

Commissioner

Police General (Ret)

Ir Koswara Sasmitapura

Commissioner

Head of Resources, PT Antam (Ret)


24/36

The Asset on Indonesian Sunda-Banda Volcanic Arc

GUNUNG

ROSA


25/36

The Asset Schematic Model of the Magmatic Arc

Gunung Rosa position- Mesothermal!


26/36

Outcrop of intrusive breccia in

porphyritic intrusive

Pebble dyke cutting porphyritic intrusive. The

pebble dyke and hydrothermal breccias precedethe mineralisation event

Hydrothermal breccia in massive porphyritic

diorite typical host to mineralised veins

Narrow mineralised quartz-sphalerite-pyrite

veins cutting altered hydrothermally altered

breccia in massive porphyritic diorite

The Asset Host Intrusive Rocks and Breccias


27/36

Banded quartz-sphalerite-pyrite-clay vein Massive quartz-chalcopyrite-pyrite vein

High grade sphalerite-galena-chalcopyrite-pyrite

vein intersection - generally with high Au-grades

Multiple events are shown by distinct

colour changes to sphalerite

sphal

gn

py-cpy

The Asset Sulphide Vein Ores


28/36

The Asset Century Block Model for 198/358koz Auabove 900m RL


29/36

The Asset PCP Resource of 436koz Au from 900m RL


30/36

The Asset Isopacs show High Grade Areas


31/36

Blue Sky - The Future

The Aeromagnetic program of

April 2012:

6 major target centres discovered

within the IUP under soil cover

Supports the interpretation that thecluster of veins are part of a

porphyry related mesothermal

system

Could indicate the potential for

discovery of a Au-Cu porphyry

system at depth


32/36

Blue Sky 8 Outcrop Veins Sampled within Target 2

Vein 3: Leugok Haji 600meast several collapsed

adits along the vein

Structure 6: Nagrak1.2km east floats and

outcrops

Qtz-Py-Cpy-Sphal-Gnwith associated clay

alteration

Highly oxidised, gossanoushydrothermal Breccia


33/36

Blue Sky - Geochemistry

Cluster of parallel veins showingsignificant anomalous values of

gold, silver and base metals

Ground magnetics program being

undertaken east-west to cross vein

strike

Target 2 area incorporating main

vein clusters east of Gunung Rosa

Vein to be soil sampled at 100m x

50m spaced intervals

Blue Sky Ground


34/36

RTP Ground Magnetics over maintarget areas - 100 m line spacingshowing veins and old workings.

Test area of 25m detail at Cap Paluillustrated below showing drill holemagnetic response in relation toground survey. Target 2 area to bedetailed at 25 m line spacing.

Blue Sky GroundMagnetics


35/36

RTP Ground Magneticimage draped overtopography showing maintarget veins and oldworkings - 100 m linespacing.

Test area of 25m detail atCap Palu Mine site shown

Blue Sky GroundMagnetics


36/36

Historic Gold Price & Project History

Paramount open discussions with PT CKP

Key:1 PT Antam drill 4 holes 2 PT Antam form J V with PT CKP 3 Century Metals contracted as Technical Partner andspend USD10m; drill 60 holes, develop 2 x vertical shafts, 1 x decline and 2.5km of drives, positive engineering study, receiveMining License 4 PT Antam publish internal positive DFS work stops due to lack of finance 5 Delta Gold and ChaseManhattan contracted as Technical Partner Snowden Group carries out positive Technical Review 6 BreX scandal andAsian Financial Crisis 7 PT Antam cede their Shares to PT CKP 8 Paramount open discussions with PT CKP

1 2 3 4 5 6 7 8

Date post:	03-Apr-2018
Category:	Documents
Upload:	donnyps
View:	224 times
Download:	4 times

121120 Pcp Gunung Rosa Mine q4 2012

Documents