Gold Investment Symposium 2012 - Company presentation - Southern Cross Goldfields Limited

Gold Investment Symposium 2012 - Company presentation - Southern Cross Goldfields Limited

• 1.
  ASX Code: SXG Onthe Road to Gold Production – Gold Symposium, October 2012
• 2.
  Disclaimer and ImportantNotice • This presentation has been prepared by Southern Cross Goldfields Limited (“SXG” or the “Company”). It should not be considered as an offer or invitation to subscribe for or purchase any securities in the Company or as an inducement to make an offer or invitation with respect to those securities. No agreement to subscribe for securities in the Company will be entered into on the basis of this presentation. • You should consider all the Company’s announcements and reports lodged with the ASX before making any investment decisions. • This presentation contains forecasts and forward looking information. These are not a guarantee of future performance and involve unknown risks and uncertainties. Actual results and developments will almost certainly differ materially from those expressed or implied. SXG has not audited nor investigated the accuracy or completeness of the information, statements and opinions contained in this presentation. Accordingly, to the maximum extent permitted by applicable laws, SXG makes no representation and can give no assurance, guarantee or warranty, express or implied, as to, and take no responsibility and assume no liability for, the authenticity, validity, accuracy, suitability or completeness of, or any errors in or omission, from any information, statement or opinion contained in this presentation. • You should not act or refrain from acting based on this presentation. This presentation does not purport to be all inclusive or to contain all information which its recipients may require in order to make an informed assessment of the Company’s prospects. You should conduct your own investigation and perform your own analysis in order to satisfy yourself as to the accuracy and completeness of the information, statements and opinions contained in this presentation before making any investment decision. Page: 2
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  Our Objectives Develop along-term gold business based on the Marda and Sandstone assets within the Southern Cross Belt • Marda Project – Feasibility Study complete in May 2012 • 530koz JORC resource • Greenfields gold project • 35kozpa initial production – outstanding exploration upside • Sandstone Project – recent acquisition from Troy Resources (ASX: TRY) • 720koz JORC resource • 600ktpa gold plant and 100-person camp for Marda • Short- and long-term production optionality • $5M, 2%NSR and 43.665M options exercisable @ $0.10/share Unlock the regional gold potential of the Marda Project through focused exploration Page: 3
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  A Transformational Acquisition • Company-making Sandstone acquisition doubles gold resources, halves Marda capital cost and enhances project economics through the relocation of the Sandstone plant to Marda $51M $25M 2 Years 1 Year 530koz 1.3Moz $42M $68M 38% 80% Page: 4
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  Marda Gold Project:Production Growth Metrics • Limited capex needed for Sandstone plant for potential future Marda production increases: Plant Area Plant Sandstone Plant – relocated to Marda Marda Feasibility Study Design Crushing and Grinding 600,000 tpa 480,000tpa CIL, elution and gold room 90,000 ounces per annum 35,000 ounces per annum • Project is highly leveraged to production rate increases • Projected unit operating costs and pre-tax cashflow* with increased production rate: Annual Pre-tax Cashflow Annual Gold Production Rate Projected Unit Operating Cost (at A$1,600/oz) 35,000oz A$880/oz A$25M 50,000oz A$775/oz A$45M 100,000oz A$600/oz A$100M *Assumes current project average grade of ~2.5g/t Au and estimated 40% fixed operating costs Page: 5
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  Gold Resource BaseGrowth • SXG has grown its resource inventory substantially over the past five years through acquisition, consolidation and exploration.... Page: 6
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  Sandstone Acquisition andMarda Project Funding • Indicative terms received for debt funding of the Sandstone Gold Project acquisition • Significant portion of Marda Project capital cost to be debt- funded • Potential debt providers indicating that Marda can support debt- funding up to $25M • PCF Capital Group appointed to manage debt funding • Targeting project funding outcome in Q4 calendar year 2012 • Aiming to complete statutory approvals H1 2013 with production H2 2013 Page: 7
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  Marda Gold ProjectInvestment Summary  High Quality JORC Compliant Mineral Resource Estimate  High Quality JORC Compliant Mineral Reserve Estimate  Granted Mining Leases over Deposits  Granted Miscellaneous Licences for Infrastructure  Financially attractive Feasibility Study completed  600,000tpa plant and 100 person camp acquisition  Debt Funding – formal competitive process well advanced  Statutory Approvals – in progress Page: 8
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  Marda Regional GoldExploration • Marda Greenstone Belt: • Mafic/Ultramafic sequence • Diemal’s formation sediments • Marda complex • Internal granites • Banded Iron Formations (BIF) • SXG Tenure dominates the Belt • New targets generated in 2011 following regional review • Presents significant upside to Marda gold production base case Page: 9
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  Lancelot - New5km Long Gold Corridor • New auger drilling results of up to 3.0 g/t Au returned 400 metres north of Vector Resources’ Gwendolyn Deposit and up to 2.1 g/t Au at SXG’s Lancelot prospect • Previous RC drill results at SXG’s Lancelot prospect include 4m @ 17.36 g/t Au and 5m @ 6.13 g/t Au • Recent results reported by Vector Resources at Gwendolyn include 3m @ 42.79g/t Au, 3m @ 10.94g/t Au • Results have outlined a new 5km long prospective gold corridor between Gwendolyn and Lancelot Page: 10
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  Marda Region GoldExploration – Next Steps • Continue regional gold targeting using historic database, aeromagnetic data and auger drilling soil sampling • Follow up specific targets with RAB and/or RC drilling • Extensional auger drilling north of Lancelot is currently in progress • Infill auger drilling between Gwendolyn and Lancelot is planned • SXG holds nearly all of the prospective strike of the Evanston Shear within its regional gold package which is only 50km north of SXG’s proposed Marda gold plant Page: 11
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  Corporate Snapshot Boardof Directors Capital Structure (ASX Code: SXG) • Samantha Tough (Non-Executive Chairman) Shares on Issue 373.3M • Glenn Jardine (Managing Director) Options on Issue 46.5M • Graham Brock (Non-Executive Director) Cash ~A$4.5M • John Rowe (Non-Executive Director) Senior Management Market Cap (undiluted) ~A$20M • Richard Simmons (Exploration Manager) Corporate Shareholders • Stephen Jones (Chief Financial Officer) Mineral Resources Limited 14% Very experienced board and management team in Western Areas 5.6% project development, operations management and corporate growth Page: 12
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  SXG – CompellingInvestment Opportunity in Gold • Marda represents one of the few greenfield production and exploration opportunities in the Australian gold space. • Clear pathway to gold production following completion of Marda feasibility study in May 2012. • Recent Sandstone acquisition provides a fit for purpose 500,000tpa gold plant and 100 person camp for Marda, significantly enhances project economics and increases JORC resource base to 1.3 million ounces. • Outstanding greenfields exploration potential on 4,000km2 tenement package at Marda. • Strong news flow from exploration success, project enhancements and consolidation activities Page: 13
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  ASX Code: SXG Onthe Road to Gold Production – Additional Slides