Disclaimer - Desert Gold...Disclaimer . All statements in this presentation, other than historical...
Transcript of Disclaimer - Desert Gold...Disclaimer . All statements in this presentation, other than historical...
Desert Gold 2/7/17 1
Disclaimer
All statements in this presentation, other than historical facts, that address exploration activities and mining potential are forward-looking statements. Although Desert Gold Ventures Inc. believes that the expectations expressed in such forward–looking statements are based on reasonable assumptions, such statements should not in any way be construed as guarantees of future performance. Factors that could cause developments to differ materially from those expressed include: exploration results; technical analysis; and lack of availability to the company of necessary capital to progress its projects further. The company is subject to specific risks inherent in the exploration and mining business and general economic and business conditions.
Corporate Info
Ticker TSX.V: DAU
Shares in Issue 16.9 million
Fully Diluted 30.5 million
Share Price CDN $0.27
Market Cap CDN $4.5 million
Board & Executive Officers
Sonny Janda, Director & CEO Jared Scharf, Director
Bruce Thorndycraft, Director Ayub Khan, Director
Adam Kim (CPA), CFO Dr. Luc Antoine, Director
Company Overview
4 Highly prospective advanced exploration properties located near world class mines
1 Mining feasibility study underway at Byumba gold deposit in Rwanda
2 Targeted exploration programs at world class gold prospects in Western Mali
Desert Gold is an advanced gold exploration company with assets of significant potential on the continent of Africa principally located in Mali and Rwanda. The company’s objective is to develop proven gold resources and convert them into profitable mining operations in both a socially and environmentally responsible manner.
Western Mali Locality Desert Gold holds 3 exploration permits in Western Mali 1) Farabantourou 2) Segala West 3) Djimbala. All of which are located directly on or near the Senegal Mali Fault Zone (“SMFZ”). The SMFZ is one of the most important geological formations on the continent and hosts some of the largest gold deposits and producing mines in the world. Revenues from gold production in this area in 2015 were approximately USD $1.2 billion
Farabantourou Project
Gold mineralization at Farabantourou is related to the Senegal Mali Fault Zone (“SMFZ”) structural event
Deposits in near proximity to Farabantourou on SMFZ:
Randgold;
• Loulo Mine; 11.5 Moz
• Gounkoto Mine; 5.5 Moz
Eandeavour Mining;
• Tabakoto & Segala Mines; 3.3 Moz
IAMGOLD/AngloGold Ashanti JV;
• Sadiola Mine; 9.2 Moz
• Yatela Mine; 3.5 Moz
Desert Gold is holding discussions with two large neighboring mining companies to negotiate the co-development of Farabantourou
Joint Venture Opportunities:
Farabantourou Upside Prospects within the Farabantourou Permit Barani East Deposit Surface View
• Barani East; 70,000 oz au resource can be expanded by drilling at depth and along strike extension of fault increasing strike to ~3 km • Keniegoulou; Can extend target along strike to approximately 2 km as the first 14 lines of drilling intersected significant mineralization • Dambamba; Can increase overall target strike extent to 2.5 km to the south along the interpreted fault line as it is postulated • Kousilli; The drilling in this area intersected mineralization in two of the four fence lines. If drilling is overlain by geochemistry anomalies as well as the structural interpretation from the IP resistivity work, two northeast to southwest trending targets can be postulated
Farabantourou Work Program Program Budget
Program Highlights
Farabantourou Program (US Dollars) Drilling (Diamond) $500,000 Drilling (RC) $400,000 Vehicles, Fuel, Generator $115,000 Administration, Logistics & Salaries $75,000 Geophysics & Petrophysics $70,000 Trenching $50,000 Resource & Metallurgy $45,000 Camp, Community and Environment $35,000 Geology & Geochemistry, Data collection/Validation $25,000 Total $1,315,000
Exploration Summary Plan at Farabantourou
The company designed a USD $1.3 million program to further define the known mineralized zones at Farabantourou, in particular along strike at Kousilli, Barani, Barani East and Keniegoulou.
Material program work includes: • 3,000 meters of trenching • 3,500 meters of RC drilling • 2,000 meters of diamond drilling
*includes historical works by Hyundai and TransAfrika Resources
Segala West Project
• Substantial 24 km² geochemical anomaly identified suggesting substantial mineralization below surface. • Mineralogy very similar to the Tabakoto mine adjacent to the East, the Segala mine also adjacent to the East and the Kofi mine adjacent in the North • 3 extensive artisanal mining operations (30m depth) in the South East of the anomaly and also on the Endeavour Segala mine extension in the North East of the permit.
The Segala West permit is surrounded by several large mines including Randgold’s Loulo-Gounkoto mine complex to the West which has a mineral resource of >14 Moz au and had mining revenues of USD $724 million in 2015. Adjacent to the East of Segala West are Endeavour Mining’s Tabakoto and Segala mines with a combined mineral resource of nearly 3 Moz au and had mining revenues of USD $174 million in 2015. Endeavour also own and are actively developing the Kofi and Kefola prospects to the north and south respectively.
At Segala West
Segala West; Baroya and Segala Pits
*Segala pit artisanal mine site
Segala West Mineralization and Artisanal Mining Activities
• 3 large artisanal mining sites on strike with Endeavour’s Segala and Tabakoto mines
• Baroya Artisnal Site: mining over 400m on quartz veins north of Baroya village. Abandoned workings to the south suggests a further 600m of mineralization on the same zone
• Baroya South: extensive alluvial/elluvial diggings over a 4km east/west-trending area
• Artisanal mining exploit the surface mineralization across permit boundaries between Desert Gold and Endeavour Mining
• Nevsun intersected 76.60 g/t Au over 3.80m below the artisanal mines on the Segala mine extension
• Selected drill intersections at Segala West include 1m @ 21.8g/t Au, 1m @ 7.7g/t Au, 2m @ 7.4g/t Au, 4m @ 5.5g/t Au, 7m @ 2.0g/t Au
• Au assay results from rock samples collected from the artisanal mines average 14 g/t and 6 g/t from the Baroya and Segala operations, respectively
*Assay results of selected grab samples collected from artisanal mining operations
Segala West Program
Segala West Program Budget (US Dollars) Core drilling 2100@160 335,000
RC drilling 2000@100 200,000
Operational overheads 190,000
Geochem - lab 6500@23 150,000
Field geologists 110,000
Trenching 5x400m 100,000
Ground geophysics - mag 30,000
Total $1,114,000
Exploration Summary Plan at Segala West Program Budget
Program Highlights Previous exploration at Segala West focused on the northern sector of the permit. The company now intends to focus its exploration in the southern area of the permit. The 2 primary areas of interest are known as the “Baroya area” where 2 extensive artisanal mining operations exist and the Segala area where artisanal miners are exploiting mineralized systems that are an extension of Endeavour’s Segala mine.
Material program work includes: • 2,000 meters of trenching • 2,000 meters of RC drilling • 2,100 meters of diamond drilling
Djimbala Project
Exploration potential: Situated within the Yanfolila Gold Belt
• Favourable host rocks
• Fundamental structures
• Artisanal mining within the permit confirms Au presence
50km north of Kodieran and Kalana Mines
• Kodieran 2.56 Moz Au
• Kalana 1.25 Moz Au
10km southeast of Hummingbird Resources Komana Project
• Komana resource to date 0.75 Moz Au
• Hummingbird Resource target: 2 Moz Au
Surrounded by a number of early stage projects under exploration by Hummingbird Resources
First phase of soil sampling delivers positive results with soil anomalies coinciding with favourable structure
Djimbala Exploration Results
Progress to date:
• Reconnaissance mapping completed • 5 large areas of artisanal mining identified • Mining quartz veins in highly altered
sandstone shale on north-south trend • Soil sampling over the first of 4 prioritized
areas completed
Regional Geology Gold Soil Geochemical Sample Results
Rwanda Locality Desert Gold’s Byumba property is located in the northern half of the Great Lakes sub-province of Africa, one of the world’s
principal Precambrian orogenic-metallogenic provinces. Like Banro’s gold operations in the DRC, the Byumba gold deposit lies within the Kibaran Metallogenic Province. Banro’s deposits form the north-northeast/south-southwest striking Twangiza Namoya Gold Belt. Deposits in this belt include Twangiza/Kamituga with a 6.9Moz au resource, Lugushwa 2.7Moz au resource and Namoya with a 1.7Moz au resource. The Byumba deposit lies 200km north east of Twangiza along the same trend and like Twangiza, gold mineralization is associated with a fold structure.
Byumba Deposit
• In 2007 soil sampling identified a 3.5km long northeast trending gold anomaly on the Rubaya prospect of the Byumba Project
• A diamond drilling program comprising 33 drill holes for
5,183m was carried out between July 2008 and August 2009 • The results from this drilling program were modeled and a N.I
43-101 inferred resource was declared (Table 1) • In 2011 a second drill campaign was conducted to increase the
resource by drilling along strike and down dip. A total of 3,286m were drilled in 14 holes along the northwestern extension and down dip of the declared resource
• 2011 drilling was successful in confirming the continuation of
mineralization over some 400m strike to the northwest and down dip of the existing resource
Exploration History
Table 1 Byumba Resource Inferred Mineral Resource Estimate (January 2010 )
Weathering Zone Tonnage (Kt) Au (g/t) Bulk Density Au Ounces
Oxide 701 1.22 2.35 27,000 Transition 2,606 1.38 2.55 115,000 Fresh 2,245 1.69 2.75 122,000 Total 5,551 1.48 2.61 265,000
Byumba Project Permitting
• In June of 2016, the Company submitted an application for mining to the Rwandan Ministry of Mines along with a plan of operation for the exploitation of the gold deposit at Byumba
• The Company expects to receive approval from the
Ministry of Mines for its plan of operation and application for a large scale commercial mining license. The mining license has a term of 25 years and covers a 400 hectare block with no limitations on tonnage and production of gold. The license also allows for expansion of the area over time
• Currently the Company is in discussions with Ngali
Holdings, the Rwandan state owned investment holding company (http://ngali.com). The Company is negotiating the heads of terms of a funding arrangement between the two parties to finance the development and construction of the proposed mining operation at Byumba
• The Company is actively applying for other
prospective gold exploration properties in the area of interest surrounding the Byumba deposit
Byumba Mining license Border
Byumba Gold Deposit
Byumba Plan of Operations 1. Initiate UG Mine with a 250 m Adit, driven
horizontally into the mountain. 2. Construct Coarse Ore Storage, Crushing Plant,
and Fine Ore Storage bins. 3. Construct Deslime & Wet Rolls circuit. 4. Construct Gravity Spirals circuit. 5. Construct Gravity Tables circuit. 6. Construct Refinery & Lab. 7. Construction Carbon circuit. 8. Construct Leach Thickeners. 9. Construct Tails Trmt circuit. 10. Construct Tails Ponds off-site. 11. UG Mining at 150 tpd from Adit #1. 12. Initiate Adit #2 250m N of #1. 13. Install Vent Raise betw Adit #1&2. 14. Expand mining rate to 300 tpd. 15. Explore for deeper ore beneath Adit #1 and
Adit #2. 16. Initiate Adit #3 250m S of #1. 17. Install Vent Raise betw Adit #1&3. 18. Maintain operations at 300 tpd with 3 crews
working 5 days per week.
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Financing & Use of Proceeds
Investment amount CDN $1 million
Unit price CDN $0.25
Warrant exercise price CDN $0.30
Warrant term 5 years
Dilution factor (new equity) 19.13%
Desert Gold is seeking an equity investment of CDN $1 million by way of private placement in the common stock of the company. Proceeds from the funding will be used to advance certain projects in the company’s portfolio as per the use of proceeds schedule below. The company will issue up to 4 million units at a price of CDN $0.25 per unit with each unit consisting of 1 common share and 1 common share purchase warrant of the company. Each warrant will entitle the holder to purchase 1 common share of the company at an exercise price of CDN $0.30 for a period of up to 5 years.
Terms of Financing Summary of Offering
Use of Proceeds Schedule – Financing Q4 2016 Byumba (Rwanda) phase 1 adit construction $300,000
Working capital (9 months) $200,000
Segala West (Mali) exploration phase 1 - trenching & mag $125,000
Accrued payables $100,000
IR & marketing $100,000
Byumba (Rwanda) mine plan detailed engineering $100,000
Farabantourou (Mali) mining plan & permitting $75,000
Total $1,000,000
Investment Highlights • Farabantourou can develop into a world class gold deposit and represents an excellent
take-over target for neighboring major producers such as AngloAshanti and Randgold • Segala West sits on the doorstep of 2 prolific mining operations. Exploration and
artisanal mining at Segala West clearly indicates that mineralization from neighboring mines extends onto Desert Gold’s property. A targeted drill program will prove the existence of these mineralized trends at depth and will be a catalyst in formalizing discussions with Randgold and Endeavour Mining
• Djimbala is surrounded by Hummingbird Resources’ Komana play targeting 2 Moz au.
Opportunity for JV with Hummingbird Resources is a strong possibility given positive outcome of initial exploration program and presence of significant artisanal mining
• Byumba project, now fully licensed and permitted, shows robust economics and the
potential to generate great returns for investors. • Negotiating MOU with Rwandan state owned investment holding company Ngali
Holdings to secure project funding for Byumba mine operation