Xietongmen – Emerging Copper Producer in ChinaXietongmen – Emerging Copper Producer in China...
Transcript of Xietongmen – Emerging Copper Producer in ChinaXietongmen – Emerging Copper Producer in China...
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Xietongmen – Emerging Copper Producer in China
April 2008PROJECT UPDATEApril 2008PROJECT UPDATE
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Cautionary and Forward Looking InformationThis presentation includes certain statements that may be deemed“forward-looking statements”. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. All statements in this presentation, other than statements of historical facts, that address future production, reserve potential, exploration drilling, exploitation activities and events or developments that the companies expect are “forward looking statements” within the definition of the United States Private Securities Litigation Reform Act of 1995. For more information on the risks inherent in the Company’s business, Investors should review the Company’s annual Form 20-F filing with the United States Securities Commission and its home jurisdiction filings that are available at www.sedar.com.
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(KMK-TSXV) – Shareholder Distribution
C$28.0 MWorking Capital:
14.0%6.1%5.0%9.6%
Jinchuan Group - ChinaTaseko (TKO) - CanadaInstitutionsManagement
C$ 180 MMarket Capitalization:
(April 2008)136.7 MFully Diluted Shares:129.0 MShares Outstanding:
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Xietongmen Property – Western China
• High-grade copper and gold mineralization occurring in a bulk tonnage “Open Pit”setting
• Proven and Probable Reserves 182.1 Mt @ 0.45%Cu, 0.62 g/t Au, 4.03 g/t Ag.
• Projected Annual Production of 116 million pounds of Cu and 190,000 Oz Au, 1.73 million Oz Ag.
• Excellent logistics = paved road, hydro-power, rail line, and water in the region
1 Press release January 24, 2007 audited by I. Crisholm, P.Geo.
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Project Ownership
Continental Minerals Corporation (KMK)
Operator
Highland Mining Inc.BVI
100%
100%
Wholly Foreign Owned Enterprise (WFOE)Tibet Tianyuan
Minerals Exploration Ltd
100%
Xietongmen Property
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The Jinchuan Group Strategic Partnership
Jinchuan is China’s largest nickel producer, major smelter of nickel and copper
Framework Agreement signed in Feb 2007 includes:
• Private placement equity financing in KMK for C$36M giving Jinchuan an 14% equity in KMK
– Mar 2007 @ $1.80 (20% premium over market price of $1.50)– Nov 2007 @ $2.25 (40% premium over market price of $1.65)
• Concentrate Off-take MOU
• Project Capital Finance MOU
• Training, Detailed Engineering and Technical Support MOU
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Year 2010 - Copper Refinery Capacity in China
JiangxiJiangxi--500 500 ktkt
YunnanYunnan--325 325 ktkt
DayeDaye--200 200 ktkt TonglingTongling--150 150 ktkt
JinchuanJinchuan--400 400 ktkt
Baiyin-100 kt
HuludaoHuludao--100 100 ktkt
YantaiYantai--60 60 ktkt
YulongYulongSichuanSichuan
2005 Cu Production: 2112 Kt2010 Projected Cu Production: 2960 Kt
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Excellent Infrastructure in PlaceXietongmen Project Location and Basic Infrastructure
CAPACITYTanghe Station – 4 @ 1.6MWYanghu Station – 5 @ 22.5MWQiangwang Station – 4 @ 0.8MWMahla Station – 4 @ 5MWJiangzi Old Station – 4 @ 0.25MW
The typical power line is 110KV and 35KV in Rikaze Region
600 kv underconstruction
220 kv underconstruction
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Easy Access to Xietongmen Property
Looking North from Highway
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3900 m Level Plan – Resource Block Model
Xietongmen Deposit
B
B’
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Long Section A-A’ Block Model
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Supergene Zone > 1.40% Cu Eq
Supergene
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Proposed Xietongmen Infrastructure
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Feasibility Study – Technical Aspects
Mining with very low STRIP RATIO of 1.64• Annual throughput = 40,000 tpd or 13.2 Mt/yr
• Excellent RecoveriesHypogene (89% of the deposit):• Copper 92.1%• Gold 59.7% • Silver 77.6%
Supergene (11% of the deposit) will go in production in the first year:• Copper 88.4%• Gold 65.1% • Silver 75.8%
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Xietongmen Property Boundary
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$2.25 Cu$650 Au
$1.50 Cu$500 Au
182 Mt deposit(.45% Cu, .62 g/t Au,
4.03 g/t Ag)
30.7%15.7%IRR
$520M$2.85/tonne
$520M$2.85/tonneCapital Expenditures
$876M$262 MTotal NPV @ 7.5%
$ 9.22$9.22Total Opex Costs
$35.50$26.00In situ Value
At higher Metal Prices…
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$218 million$106 millionOP Cash Flow
($156 million)($156 million)OPEX
$374 million$262 millionGross Revenue
US$2.25 CuUS$650 Au
US$1.50 CuUS$500 Au13.2 Mt/year
Yearly basis Future P/E Valuation =
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Xietongmen Proposed Project Timeline
Socioeconomic
Production
Permit Approval
Drilling
Chinese Feasibility Study
Feasibility Study
Design/Engineering
Construction + Freight
Mining License
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
EIA
Completed ProjectedNote:
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Permits Approved to Date
In ProcessProject Approval Report
In ProcessMining Licence
Dec 2007Water Conservation Report
Jun 2007Water Use Permit
Nov 2007Land Acqusition Pre-Approval Report
In ProcessLand Reclamation Report
Dec 2007Environmental Impact Assessment approval from SEPA
Nov 2007Mineral Resources Development & Utilization Plan approval from MLR
Sept 2007Project Pre-Approval from NDRC
Apr 2007Mine Area Scoping (MAS) equivalent to the Mining Area Permit
Apr 2007Water Resources Report
Sept 2006Seismic Assessment
Sept 2006Geological Resource Report
Date ApprovedReport / Permit
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KMK’s Work for Community Sustainability
• Agricultural training for villagers at Tibet Agriculture College
• Greenhouses to grow market vegetables
• Construction training
• KMK providing machinery to fix and rebuild irrigation channels and roads
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KMK Community Liaison & Consultation Program
5 member Community Relations team works closely with local villagers to provide information and to establish trust. Villagers accept the team as a part of their lives.
Regular Community Coordination meetings held to exchange views with village reps on all aspects of the exploration program.
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DAVID COPELAND, P. ENG - President, CEO and Director• 30 years experience in advancing mineral projects through feasibility,
permitting, engineering design phases and initial development• Projects include the original feasibility and permitting on the South
Kemess mine; pre-feasibility and permitting on the Hollister development project, Nevada; feasibility and permitting of the Burnstone gold project, South Africa; and senior advisor on the Gibraltar mine acquisition and restart team
WANG ZHI, Co-Chairman• 20 years of government and commercial experience in Tibet Autonomous
Region• Extensive networks in Tibet and China
DICKSON HALL, Vice President, Business Development• 30 years of commercial and government experience between China and
Canada
MARK REBAGLIATI, P.ENG and Q.P.• Porphyry expert and Mining Man of the Year for Canada
Continental Minerals Corporation - Management
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Appendices
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OFFICERSRon Thiessen, Co - ChairmanZhi Wang, Co - ChairmanDave Copeland, President and CEOMarchand Snyman, CFODickson Hall, VP Business DevelopmentDIRECTORSRene CarrierRene CarrierDave CopelandScott CousensRobert DickinsonGordon FretwellXiaojun MaGerald PannetonRonald ThiessenJie (Jack) YangFuyu WangZhi WangATTORNEYSLang Michener, Barristers and Solicitors1500 – 1055 West Georgia StreetVancouver, British ColumbiaCanada V6E 4N7AUDITORSKPMG LLPBox 10426, 777 Dunsmuir StreetVancouver, British ColumbiaCanada V7Y 1K3
TRANSFER AGENTComputershare Investor Services Inc.3rd Floor, 510 Burrard StreetVancouver, British ColumbiaCanada V6C 3B9
BANKCanadian Imperial Bank of Commerce 400 Burrard StreetVancouver, British ColumbiaCanada V6C 3B9
LISTEDTSX Venture Exchange: KMKOTCBB: KMKCF
CORPORATE ADDRESS AND INVESTOR SERVICES1020 – 800 West Pender StreetVancouver, British ColumbiaCanada V6C 2V6Telephone (604) 684-6365Facsimile (604) 684-8092Toll-free 1-800-667-2114e-mail [email protected] www.hdgold.com
Corporate Information
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0.084.040.620.45182.1Total Proven & Probable
0.092.790.450.399.4Probable
0.084.220.660.43152.3Proven
Hypogene
0.042.050.200.442.0Probable
0.033.350.420.6517.5Proven
Supergene
0.0142.990.490.200.9Proven
Oxide
Zn (%)Ag (g/t)Au (g/t)Cu (%)Tonnes(millions)Category
Proven & Probable Reserves – May 2007at a 0.15% copper cut-off
Proven & Probable Reserves
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ProjectPermit
Mining LicenseApplication
MineralResources
ReportApproval
Mineral ResourcesDevelopment
andUtilization PlanFinal Approval
(MOLAR)
EnvironmentalImpact
Assessment Report
Final Approval
Chinese CompliantFeasibility
StudyBankable
Feasibility Study
IFC SEIAFinal Report
(Draft receivedDec ‘07)
Financing Project Development
Mining LicenseApprovalProject Application
Permitting Process
Completed To be completedNote:
Project Pre-Approval(NDRC)
3Q 2
007
4Q 2
007
2008