Presentation Transcript

1. Growing Gold production in Kazakhstan

   February 2011
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3. Key executives Tim Daffern Chief Executive Officer Chartered Mining engineer, MBA 22 years international experience in underground and open pit operations Formerly COO with Angel Mining Plc and previously Director Wardell Armstrong International Joined Q4, 2010 Baurzhan Yerkeyev Executive Director Graduate from Tomsk Polytechnic Institute, Geology (Russia) Formerly project manager for State Geophysical-Geochemical Expedition Previously director of CRS, geological consultants Bill Morgan Chief Financial Officer and Company Secretary UK Chartered accountant. 30 years accountancy and financial management experience 8 years in Kazakhstan, lives in Kazakhstan Charles Zorab Corporate Development – London Consultant, former mining analyst
4. Business plan To maximise the value of the business by development and improvement of gold assets in Kazakhstan Increase Productivity and implement cost reduction programmes Result = Margin improvement Target increased annual production to over 100,000 ounces Au by 2016 CAGR = 31% pa Identifying and developing new gold based projects
5. Major shareholders and corporate information As at 31 December, 2010 Source: Datastream
6. Location The Republic of Kazakhstan East Kazakhstan Region
7. Sekisovskoye Competitive Advantage Location 40km from regional capital - Ust Kamenogorsk Good local infrastructure and transport links - on major road to Ridder mining centre Skilled workforce available locally Experienced, predominantly local management Deposit Large scale (economies of scale) Free gold (simple, low cost plant with good recovery) Not contaminating (not acid generating, no arsenic) 100% owned Result = low capital cost, mid-tier operating cost, low risk
8. Sekisovskoye resources (JORC)
9. Sekisovskoye project Production Target gold production - 2011: > 26,000 ounces 2016: > 100,000 ounces Sekisovskoye Open Pit Mine JORC reserve157,614 oz (01/01/2010) Open Pit life to Q3 2014 Produced 55,006 oz since start-up to 30 December 2010 Sekisovskoye Underground Mine JORC resource of 1,804,685 oz (01/01/2010) Existing underground infrastructure refurbished Target extraction rate of 850,000 tpa by 2016 First extraction targeted December 2011 25,000m diamond drill programme is underway for 2011; four drill holes complete
10. Sekisovskoye Sekisovskoye process plant Crushing and milling capacity 850,000 – 1,000,000 tpa Main Jaw Crusher has been problematic being replaced Q1, 2011 Cost $750,000 USD Reduce downtime, reduce costs Process Recovery Current 82% to 90% Additional cyclones to reduce grinding size have been installed in Q1 2010; cost $65,000 USD, Result = improved efficiency, lower operating costs
11. Sekisovskoye – underground project Construction works on target Production target increased from 500,000 tpa to target 850,000 tpa Production from main shaft, triple internal decline, plus service shaft; single excavation methodologies, with 100% open ‘stoping’; underground infrastructure based on flexible deployment of men and material 5 – 6 g/t Au, 6-7 g/t Ag in situ grade Expected mill feed grade at 4.2 g/t Au after dilution Cash flow sufficient for 95% of expected development costs
12. Underground project ‘ore-bodies’ North West
13. Undergound development
14. Sekisovskoye targeted gold production CAGR – 31%
15. Operational objectives Increase annual throughput to 1M tpa (compared with design capacity of 850,000 tpa) Increase process plant recovery to 90% in 2012, 95% in 2015 Focussed development of the underground mine to access high grade ore as soon as possible, increasing annual production to 100,000 oz Reduce operating costs to industry ‘mid quartile’ cost basis Look to further near-term production opportunities for gold in Kazakhstan Result = Increase EV/oz to industry average or better Increase delineation and continue expansion of the geological resource Expand gold production and earnings value
16. Use of funds 1 Plant Waste management system Capital required $4.2M Expenditure Q2 – Q4, 2011 Reduction in operating costs target : $55/oz Waste system based on making ‘waste paste’ All engineering works overseen by Golders Associates Reduced tailings impoundment construction costs Reduced water abstraction Eliminates water management on in surface dams during winter Recycle metallurgical plant reagent solution Reduce environmental costs to government Backfill from ‘paste plant; used in underground mine Paste plant underpins the target 850,000 tpa extraction
17. Use of funds 2 High Voltage Electrical Infrastructure Capital required $1.8M Expenditure Q2 – Q4, 2011 Reduction in operating costs target : $15/oz Establish dual High Voltage Electrical infrastructure to project site Currently some ten days lost during the year due to single source electrical supply Improve continuity of all project operations All engineering works overseen by Kazakhstan Electrical Authorities New electrical infrastructure required to meet statutory safety regulations for underground operations Infrastructure is designed to underpin the target 850,000 tpa extraction
18. Use of funds 3 Mineral Process Plant ‘Increase Gold Recovery’ Capital required $2.1M Expenditure Q2 – Q4, 2011 Reduction in operating costs target : $35/oz Replace system for adding dissolved oxygen to cyanide tanks Automate the system for addition of cyanide Automate the system for control of reagents Replace the smelting furnace Upgrade the laboratory
19. Use of funds 4 Expansion of Engineering workshops Capital required $0.9M Expenditure Q2 – Q4, 2011 Reduction in operating costs target : $15/oz Establish self sufficient site based engineering facilities for underground and open pit mining equipment Additional workshops, welding equipment, wash-down facility Enable currently outsourced works to be undertaken by site staff Improve continuity of all project operations Infrastructure is designed to underpin the target 850,000 tpa extraction
20. Use of funds 5 Corporate development Capital required $1.0M Expenditure Q2 – Q4, 2011 Accelerate the current programme of sourcing targets for future growth Enable use of professional advisors to progress due diligence
21. Placing Placing and Shares Net Proceeds: $10M Book Close: 10th March 2011 Use of funds: Capital OpEx Cost savings Plant Waste management system $4.2M $55/oz High Voltage Electrical Infrastructure $1.8M $15/oz Mineral process plant gold recovery $2.1M $35/oz Expansion of engineering workshops $0.9M $15/oz Corporate development $1.0M - Open offer : up to 2.5M Euro Secondary : up to $3M
22. Growth opportunities Management experience in review and development Kazakhstan Supportive environment Good local source of opportunities ‘Local’ reputation of Hambledon Good relationship with authorities Ability to get things done Attracts opportunities Criteria Kazakhstan Gold based, 0.75M oz to 5M oz,
23. Hambledon – key factors Sekisovskoye Large gold resource 1.8m oz JORC, expansion to 2.5m ounces underway Production now at 25,000 oz per year, rising to 100,000 oz in 2016 CAGR = 31% pa Advantageous location Free milling, environmentally benign Experienced, predominantly local management Good underground mining conditions

24. Contacts

    Registered office Hambledon Mining Plc Daws House33-35 Daws LaneLondonNW7 4SD Investor relations: Charles Zorab Telephone: +44 207 233 1462 e-mail: c.zorab@gmail.com