Copper, Gold & Coal Projects in Kalimantan, Indonesia

Transcription

1 , Gold & Coal Projects in Kalimantan, Indonesia Corporation KLG: AIM, TSX.V December 2009

2 Disclaimer Corporation Limited "KLG" has taken all reasonable care in producing and publishing information contained in this presentation. Material in this presentation may still contain technical or other inaccuracies, omissions, or typographical errors, for which KLG assumes no responsibility. KLG does not warrant or make any representations regarding the use, validity, accuracy, completeness or reliability of any claims, statements or information in this presentation. Under no circumstances, including, but not limited to, negligence, shall KLG be liable for any direct, indirect, special, incidental, consequential, or other damages, including but not limited to, loss of programs, loss of data, loss of use of computer of other systems, or loss of profits, whether or not advised of the possibility of damage, arising from your use, or inability to use, the material on this site. The information is not a substitute for independent professional advice before making any investment decisions. Furthermore, you may not modify or reproduce in any form, electronic or otherwise, any information in this presentation, except for personal use unless you have obtained our express permission. No stock exchange has reviewed the information in this presentation and no stock exchange accepts responsibility for the adequacy or accuracy of it. This presentation contains information about adjacent properties on which we have no right to explore or mine. We advise U.S. investors that the SEC's mining guidelines generally prohibit information of this type in documents filed with the SEC. U.S. investors are cautioned that mineral deposits on adjacent properties are not indicative of mineral deposits on our properties. Forward-Looking Statements This presentation contains forward-looking statements, including but not limited to comments regarding predictions and projections. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. 2

3 Gold East Kalimantan Central Kalimantan Coal East Kalimantan 3

4 Gold East Kalimantan Central Kalimantan Coal East Kalimantan Thermal Coal Market Leading energy source 80% China s & India s power Indonesia, world s largest exporter 60% from East Kalimantan Robust demand for thermal coal Large number of undeveloped areas in East Kalimantan 4

5 Coal Division established 2007 with experienced coal manager appointed Coal Strategy Exploit extensive local knowledge and contacts Identify prospective undeveloped areas (some 80 areas reviewed) Assess potential size calorific value strip ratio accessibility, logistics to port Enter Agreement with owner: eg Option, Participation Agreement, Profit Share Upgrade/ establish resource through drilling Package data, market and negotiate sale 5

6 PT Indobara Pratama Coal PT Indobara Pratama (IBP) KLG drilling now complete 2,700 hectare site Low calorific value coal 4,900 kcal/kg Low strip ratio 4:1 Good logistics with nearby river jetty Option taken lapsed; profit share agreement Drilled 58 holes over 4600 m, established potential resource 270 MT Sale agreement reached 6

7 PT Indobara Pratama Agreement to sell Coal Daun Consulting Singapore to acquire 80% of IBP subject to $1 mill escrow, due diligence and settlement. On completion IBP to pay KLG: US$ 1.37 mill: $ 1 mill April 2010, balance following 12 months. Production royalty $ 0.40 p/t Daun to pay KLG: $4.766 mill for assistance in DD, off take & mine development: $0.5 mill after 6 weeks DD, $2.2 mill positive DD, $2.066 mill mine start-up. Production royalty $0.10 Daun is the organiser of a Coal Investment Entity targeting US$ 200 Million to acquire a portfolio of Indonesian coal mines with reserves of m/t and producing m/t pa. Completion $6 mill & $0.5 p/t royalties, production end 2010 scaling up to 10MT pa 7

8 Coal Summary Coal Sale agreement entered into on IBP; subject to completion KLG will receive upfront cash $6 mill & production royalties $0.5 p/t Continue strategy of identifying prospective undeveloped areas Create ongoing cash flow and capital receipts 8

9 Gold East Kalimantan Central Kalimantan Coal East Kalimantan Jelai epithermal gold project 12 prospects over 5,000 ha, but only Mewet drilled 126 holes drilled over 13,959 m, including 26 by Ivanhoe Drill results, including bonanza grades, confirm potential for major deposit Size/structure/grade comparable with Vera Nancy mine in Australia (2 mill ounces) 9

10 Mewet Prospect KLG Drilling Gold Hole From To Metres Au g/t Ag g/t Vein JM Mewet JM Mewet JCM Sembawang South JCM Sembawang Central JCM Sembawang Central JCM Lipan JCM Lipan JCM Mewet JCM Mewet JCM Mewet JCM Mewet JCM Sembawang South 10

11 Jelai Project prospect areas Gold Bukit Libang Bukit Cinta Salam Vein Adau Vein Nyabi Vein 11

12 Jelai Project consultants reports Gold Jelai vein system has potential to contain a world class deposit. Worsley, 1999 Mewet lode system has the potential to contain a world class deposit. Wake, 2006 Referring to KLG drilling, has enhanced the chance of delineating a major gold resource. Pollard, 2008 Target identified of 900, ,000 tonnes at 3 g/t Au & 3 g/t Ag on 250 m of Mewet s 6,000 m strike length. Gunter,

13 Jelai Project current developments Gold Strong Joint Venture interest Continuing interest shown by companies On site and detailed desk & field reviews External Direct Investment Sourcing investors to acquire minority stake in the project $2 to $3 mill for feasibility study or $10 mill to develop a small scale mine; 20,000 ounces pa 13

14 Gold East Kalimantan Central Kalimantan Coal East Kalimantan KSK Contract of Work 941 km2 Explored since 1997 including 36,000 m drilling; $16.4 mill spent 38 prospects identified including 5 major copper porphyry targets In 2007 Oxiana spent $2.5 on medium/shallow depth drilling KSK CoW 14

15 KSK CoW Drill Highlights Hole From To Meters CU (%) Au (g/t) Ag (g/t) BF 5 includes BF BF28/030 includes BK BK BK , BF Channel BF Float BF = Baroi BK = Beruang 15

16 New study confirms KSK prospectively for major porphyry Airborne magnetic data reprocessed using advanced inversion technology 3D profiles of large magnetic bodies coincident with surface geochemistry, geology & previous drilling results Confirms potential for major porphyry deposits New JV interest 16

17 KSK CoW 5 major targets Mansur Beruang Tengah Beruang Kanan Baroi Mamuring Prospect Gold Prospect North Mansur MANSUR Liang Bulau II Focus 1 Sama Tuan Nabalang Derajoi MAMURING Rinjen Liang Bulau I BAROI Dangoi Kalang FEZ Tumbang Huoi Volcano BERUANG KANAN BERUANG TENGAH Gold Zone Low Zone Beruang South 17

18 KSK CoW Magnetic perspective of prospects 18

19 KSK CoW Mansur Prospect Near surface magnetic anomaly, 800m diameter x 1,000 vertical depth, missed by previous drilling. Underlies 1km diameter / gold surface anomaly, with porphyry rocks exposed. Large quantities gold recovered from Mansur river which drains the area 19

20 KSK CoW Beruang Tengah Untested magnetic anomaly, 900m wide x 1200m long, underlies 700m wide surface copper & gold anomalies with porphyry rocks alteration exposed 20

21 KSK CoW Beruang Kanan Untested 750m wide magnetic anomaly underlies 6 x 4 km surface copper mineralisation with nearby massive base metal zones (occur peripheral to porphyry) 21

22 KSK Summary Extensively explored but previous drilling at shallow / medium depths Reprocessed aeromagnetic data has produced profiles of large magnetic bodies coincident with surface geochemistry, geology and previous drilling results Confirms potential for major porphyry deposits below areas drilled Has lead to renewed JV interest 22

23 Community Development our social license Community Development Working in advance of mining to foster good relationships & strengthen local capacity using a Hand Up approach Building local capacity to self manage village development Linking villages with local government services Link donor agency support to the needs of communities Providing technical support to improve livelihoods Programs currently operating in 24 villages 23

24 Directors and Senior Management Peter Bojtos Chairman Rahman Connelly Deputy Chairman, CEO Doris Meyer CFO Faldi Ismail Director Mansur Geiger VP Exploration Brett Gunter Technical Advisor, Jelai Gerald Cheyne Director Corporate Development Bardolf Paul Community Development Nick Cottam Corporate Relations Manager Dr Peter Pollard Technical Adviser 24

25 Share Structure AIM & TSX.V code: KLG Shares outstanding million Warrants 0 Options 5.4 million Fully diluted million Market Capitalisation at 5p is 6.07 million Kalimantan Investment Corporation Management Retail and Institutional Holders 25

26 Gold East Kalimantan Central Kalimantan Coal East Kalimantan In summary the KLG opportunity Coal IBP completion will provide cash / royalties, new projects being investigated Gold Potential for substantial resource; JV or small scale mine to develop New study confirming KSK potential attracting renewed interest 26

27 Gold East Kalimantan Central Kalimantan Coal East Kalimantan Contact Gerald Cheyne, Director Corporate Development Office +44 (0) Mobile +44 (0)