Gold Investment Symposium 2012 - Company presentation - Mungana Mines Limited

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Gold Symposium - October 2012 ASX: MUX | SHARES ON ISSUE 160.7m | MARKET CAPITALISATION $59.5M | SHARE PRICE A$0.37 PRESENTED BY: Pat Scott

AS AT 15 OCTOBER 2012



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DISCLAIMER Competent Person’s Statement

The information in the report to which this statement is attached that relates to Exploration Results and Mineral Resources is based on information compiled by Dr Adrian McArthur, the General Manager Exploration for

Mungana Goldmines Ltd, and who is a member of the Australian Institute of Mining and Metallurgy and is a full time employee of the Company. Dr McArthur has sufficient experience 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’. Dr McArthur consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

JORC – Exploration Targets

It is common practice for a company to comment on and discuss its exploration in terms of target size and type. The information in this presentation relating to exploration targets should not be misunderstood or

misconstrued as an estimate of Mineral Resources or Ore Reserves. Hence the terms Resource(s) or Reserve(s) have not been used in this context. The potential quantity and grade is conceptual in nature, since there

has been insufficient work completed to define them beyond exploration targets and that it is uncertain if further exploration will result in the determination of a Mineral Resource.

Forward-Looking Statements

This presentation has been prepared by Mungana Goldmines Ltd. This document contains background information about Mungana Goldmines Ltd current at the date of this presentation. The presentation is in summary

form and does not purport to be all inclusive or complete. Recipients should conduct their own investigations and perform their own analysis in order to satisfy themselves as to the accuracy and completeness of the

information, statements and opinions contained in this presentation.

This presentation is for information purposes only. Neither this presentation nor the information contained in it constitutes an offer, invitation, solicitation or recommendation in relation to the purchase or sale of Mungana

Goldmines Ltd shares in any jurisdiction.

This presentation may not be distributed in any jurisdiction except in accordance with the legal requirements applicable in such jurisdiction. Recipients should inform themselves of the restrictions that apply in their own

jurisdiction. A failure to do so may result in a violation of securities laws in such jurisdiction.

This presentation does not constitute investment advice and has been prepared without taking into account the recipient's investment objectives, financial circumstances or particular needs and the opinions and

recommendations in this presentation are not intended to represent recommendations of particular investments to particular persons. Recipients should seek professional advice when deciding if an investment is

appropriate. All securities transactions involve risks, which include (among others) the risk of adverse or unanticipated market, financial or political developments.

To the fullest extent permitted by law, Mungana Goldmines Ltd, its officers, employees, agents and advisers do not make any representation or warranty, express or implied, as to the currency, accuracy, reliability or

completeness of any information, statements, opinions, estimates, forecasts or other representations contained in this presentation. No responsibility for any errors or omissions from this presentation arising out of

negligence or otherwise is accepted.

This presentation may include forward looking statements. Forward looking statements are only predictions and are subject to risks, uncertainties and assumptions which are outside the control of Mungana Goldmines

Ltd. Actual values, results or events may be materially different to those expressed or implied in this presentation. Given these uncertainties, recipients are cautioned not to place reliance on forward looking statements.

Any forward looking statements in this presentation speak only at the date of issue of this presentation. Subject to any continuing obligations under applicable law and ASX Listing Rules, Mungana Goldmines Ltd does

not undertake any obligation to update or revise any information or any of the forward looking statements in this presentation or any changes in events, conditions or circumstances on which any such forward looking

statement is based.

NOT FOR DISTRIBUTION



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COMPANY HIGHLIGHTS

• Attributable JORC compliant Resources of 3.2 million ounces of gold, 273,000 tonnes of copper and 35 million ounces of silver

• Medium term production target of approximately 100,000 ounces of gold from Tunkillia / Tarcoola Gold Project

• Target Cash costs of ~A$900/oz.

• Major Shareholders

– Mungana Pty Ltd (Kagara Ltd) 97.5m

– GHG (China) 25.1m

– Prosperity Steel (Singapore) 13.0m

– Total Shares 160.7m

• Strong cash balance A$11.5M as at end of September

• Exciting exploration pipeline

MUNGANA GOLDMINES : A significant new gold company



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DEVELOPMENT

1. The Tunkillia Gold Project (South Australia)

– Resources – 800kAu, 1.6Moz Ag

– Production Potential – 80,000 ozpa

– Tarcoola Addition Potential - 20,000 ozpa

2. The Mungana Gold Project (Queensland)

– Resources – 2.7MozAu, 273ktCu, 34Moz Ag

– Production Potential – 100,000 ozpa

EXPLORATION

• South Australia – A$4M this year

• North Queensland – on Hold

• New South Wales – seeking JV partner

ASSETS

PROJECT PIPELINE



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TUNKILLIA GOLD PROJECT

(Earning 70%)

• Controlling interest in JV with Helix

Resources

• New gold province discovered in 1996

• Resource of 803koz Au, 1.6Moz Ag

• Earning to 70% this year with A$6M

budget

• Strong probability of exploration

extensions




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SCOPING STUDY RESULTS

• Production of

492,000 ounces

over 6 years

• Low Capital of

A$114M

• Cash costs of

~A$983/oz.

• Throughput rates of

2mt per annum


• Simple staged open pit mine

• Conventional process plant

• Pre-Tax Operating Surplus of A$163m and

• IRR of 28.3% @A$1600/oz.



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TUNKILLIA PROPOSED SITE LAYOUT



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TARCOOLA GOLD PROJECT

(MUX 100%)

• Purchased July 2012

• 60km north west of Tunkillia

• Historic production of 77,000

Ounces at 37.5g/t Au

• Potential to contribute

additional 20,000 ounces per

annum of production through

proposed Tunkillia plant



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TARCOOLA GOLD PROJECT

• Perseverance Deposit

• Initial high grade open pit

potential. Historic

intersections include:

• 34.3m @ 26.2 g/t Au

• 21m @ 62.2 g/t Au

• Initial Drilling currently

underway

• JORC Resource in

December quarter 2012



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MUNGANA PROJECT (100% MUX)

• Red Dome Open Pit

produced 1Moz Au, 4.3Moz

Ag, 35kt Cu from 1985 -1997

• Resource of 2.7Moz Au,

273kt Cu, 34Moz Ag

• Red Dome and Mungana -

3km apart

• Both on Granted Mining

Leases

MUNGANA GOLD PROJECT



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BFS STAGE 1 HIGHLIGHTS

• Production of approximately

100,000oz of gold, 10,000t of

copper and 1.5Moz of silver per

annum achievable

• Mine life of at least 10 years

• Cash costs of A$883/oz.*

• Throughput rates of 4mt per annum

• Total Production, ~1moz Au, 100kt

Cu, 15moz Ag


* Cash Costs are Net of by-product (copper and silver) credits Metal Price assumptions; Copper US$8500/t and Silver Price of US$35/oz. Exchange Rate assumptions; A$1.00/$US .



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EXPLORATION – TUNKILLIA

• Potential for

additional resources

within trucking

distance of proposed

plant

• Well defined

structural and

geochemical targets

ready for drilling

• A$4M budgeted this

FY




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EXPLORATION - TARCOOLA



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EXPLORATION

NEW SOUTH WALES

• Key position targeting under-

explored extensions to Australia’s

major porphyry cooper-gold province.

• Targets located at similar structural

and stratigraphic position to known

mineral centres, under cover.

• Seeking JV Partner




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STRONG IN-HOUSE EXPERTISE

Project Development

Pat Scott – Managing Director

• Built and operated multiple gold

mines

– Bounty Gold Mine

– Tanami Gold Mine

– Beaconsfield Gold Mine

Tom Cooney – GM Project Development

• Senior roles at major companies

including; KCGM, MIM, Thiess

In-house expertise in areas of

Engineering, Geology and Metallurgy

DELIVERY

Exploration

Adrian McArthur – GM Exploration

• Senior roles at major companies

including; WMC, St Barbara, Lion Ore



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THANK YOU

APPENDICES TO FOLLOW



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RESOURCE INVENTORY

APPENDICES

Table 1 – Mungana Goldmines Ltd Resource (100% Mungana Gold Project And 55% Tunkillia Gold Project)

Category M Tonnes Gold g/t Silver g/t Copper % Gold kozs Silver kozs Copper kT

Measured 42.3 0.82 11.3 0.29 1,115 15,410 121

Indicated 53.4 0.65 7.0 0.17 1,120 11,133 91

Inferred 43.9 0.65 5.9 0.14 917 8,332 62

Total 139.6 0.70 8.0 0.20 3,151 34,875 273

Table 2 – Mungana Gold Project Resource (100%)

Category M Tonnes Gold g/t Silver g/t Copper % Gold Kozs Silver kozs Copper kT

Measured 41.0 0.79 11.61 0.30 1,041 15,300 121

Indicated 49.8 0.58 7.01 0.18 923 10,691 91

Inferred 40.2 0.58 5.95 0.15 746 7,972 62

Total 131.0 0.64 8.04 0.21 2,709 33,963 273

Table 3 - Tunkillia Gold Project Resource (100%)

Category M Tonnes Gold g/t Silver g/t Gold Kozs Silver kozs

Measured 2.3 1.8 7.4 134 200

Indicated 6.5 1.7 5.5 359 803

Inferred 6.7 1.4 5.2 310 655

TOTAL 15.6 1.6 5.5 803 1,658



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FACT SHEET

APPENDICES

Board Members

Joe Treacy Chairman

Pat Scott Managing Director and CEO

Mark McConnell Executive Director

Ross Hutton Non-Executive Director

John Fitzgerald Non-Executive Director

Bruce Rathie Non-Executive Director

Justin Jian Yi Wu Non-Executive Director

Jeremy Robinson Company Secretary

Registered & Principal Office

Mungana Goldmines Ltd

Level 12, 500 Queen St

Brisbane, QLD, 4000

Australia

Telephone: +61 7 3835 0800

Facsimile: +61 7 3832 5045

Email: [email protected]

Website www.munganagoldmines.com.au

Stock Exchange Listings

Australian Stock Exchange MUX

Senior Management

Pat Scott Managing Director and CEO

Tom Cooney GM Projects

Adrian McArthur GM Exploration

Ben-Louis Ludik CFO

Jeremy Robinson GM Business Development

Auditors

Ernst & Young

Lawyers

Hopgood Ganim

Share Registry

Link Market Services

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Gold Investment Symposium 2012 - Company presentation - Mungana Mines Limited

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