Transcript Document 7488839

Sian Gold Project – Ghana
BRIEF SUMMARY
June 2009
Forward Looking Statement
Certain statements contained in the following presentation constitute forwardlooking statements. Such forward-looking statements involve a number of known
and unknown risks, uncertainties and other factors, which may cause the actual
results, performance or achievements of the company to be materially different
from actual results and achievements expressed or implied by such forward-looking
statements. Readers are cautioned not to place undue reliance on these forwardlooking statements, which speak only as of the date the statements were made and
the readers are also advised to consider such forward looking statements while
considering the risks inherent in the business of exploration.
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Major Gold Deposits in Africa
• Focused on gold in
Ghana and Tanzania – 2
stable countries
• Quality gold projects
• 400,000 oz on a fully
permitted past producer in
Ghana with a 30 year
mining lease
2nd Top Gold Producer
3rd Top Gold Producer
Largest Gold Producer
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Gold Projects, Tanzania
Tanzania: Gold & Diamonds
Lake Victoria Goldfields:
Area with over 50 million oz in gold reserves
• Itilima Project (43-101): gold and diamonds
• Lwenge/Geita Gold Project
• Kishapu
• Lalago
Other properties in Tanzania:
• Vukene
• Kilindi
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Priority Project: Sian, Ghana
Sian on Ashanti Gold Belt
• Sian contains two previous open pit
mines and a 400,000 oz resource at
2.3 g/t
• 30 km NE of Newmont’s Akyem
8.7+ million oz deposit
• Production capital costs minimized
by existing mine infrastructure
• Drill results show significant
exploration upside potential
Other Ghana Projects:
• Kwahu Praso (Ashanti Belt)
• Kaniago (Asankrangwa Belt)
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Priority Project: Sian
Presentation will focus on priority project: Sian, Ghana
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Most advanced, early term ROI
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Sian: past gold producer with a 93% gold recovery rate
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Just 30 km north of Newmont Mining’s 8.7+ million oz Akyem gold deposit on
the Ashanti Gold Belt
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Infrastructure, power, roads, water, and CIL (Carbon in Leach) plant
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30 year renewable mining lease with 17 years remaining
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Sian resource has the potential to reach over 1 million oz in the next 12 months
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Aiming for a Multimillion oz Deposit
Sian
• Sian: 50 sq km of prime ground in
elephant country
Gold resource on the Sian project:
• 400,000 oz resource
• Additional 700,000 oz in
gold potential
Only 10% drilled to date
• Dixcove Granites – part of the
geological structure
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Sian Plant
Sian Plant
Sian Open Pit
Sian Open Pit
Sian Open Pit
Priority Project: Sian
Sian Gold Project
• Completely surrounded by Newmont Mining
• In open pit gold production 2000 to 2003
• 93% gold recovery rate at 2.3 g/t
• No refractory gold
• Fully permitted
• Need to increase tonnage and bring Sian back
into production by the end of 2010
Sian Processing Plant, Ghana; April 2007
• Estimated timeframe to production: 12 months
from date of financing
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Sian Plant
Sian Plant
Sian Plant
Sian Plant
Focus on Sian
What we need to do concurrently:
1.
Prove up a minimum of 1 million oz of gold on direct extensions of the Sian
gold deposit and drill test new zones to:
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Increase indicated resource (infill drilling and drilling at depth)
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Upgrade to a measured category (definition drilling)
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Complete a scoping study and update the feasibility study (bankable)
1.
Engineering review of CIL plant to determine costs of re-commissioning
(bankable report)
2.
Airborne VTEM survey over Sian to accelerate drilling
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Goal: Gold Production
on Sian by the end of 2010
Targets and objectives
• Expected initial production: 12 months away
– Initially 2,000 tonnes / day x 300 days = 600,000 tonnes per year
– 93% gold recovery rate
– 600,000 tonnes at 2.3 g/t = 44,516 oz of gold in year 1
• Expected revenues
– Assume gold at $850 USD per oz
– Gross revenue at $850 per oz = $38 million USD
– Production cost at $350 per oz = $16 million USD
• Revenue net of costs per oz – year 1
– $22 million USD
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Technical Partnerships
• Midlands team: best in geology, best in operations
– We know Africa well
• Midlands is partnered with a strong engineering company to move the
Sian project forward
• Engineering partner knows Africa well and has
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Operational experience
Project management experience
Technical and engineering expertise
Knowledge of Ghana
Track record in bringing properties to production
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Financing Requirements For Sian
Up to $5 million USD required in the next 12 months
To achieve the following:
– At least 1 million oz
– A scoping study and a bankable updated feasibility study
– A bankable technical report on the existing CIL plant
– A VTEM air magnetic and radiometric survey to accelerate further
drilling to grow the resource
– Take Sian to a production decision
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Use of Funds: $5 million Sian
• $3 million – up to 20,000 metres of drilling
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Definition drilling: 10,000 metres
Infill drilling: 5,000 metres
Engineering and condemnation drilling: 3,000 metres
Contingency: 2,000 metres
• $500,000 – engineering metallurgical testing
• $250,000 – scoping study and update of feasibility study
• $250,000 – airborne VTEM and radiometric survey
• $200,000 – resource/reserve calculation and update
• $800,000 – working capital
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Investment Decision Points
High Risk
Decreasing Risk
Early Exploration
Exploration Drilling
Exploration Drilling
- Soil Surveys
- Resource Generation
- Geological Mapping
- Definition Drilling
- Geological data review
- Resource Categories
- Target generation
Feasibility Study
Mine Development
Other Information
Directors
Edward A. Harris (Chair)
- Vice-President and portfolio manager with McLean Budden Ltd. since 1990
- 34 years of experience in the financial services industry
Kim F. Harris, MA (Vice Chair)
- Founder of Midlands
- Over 20 years of experience in Africa, including 12 in exploration
Pierre Lalande, PGeo
- Chief Geologist for IAMGold Corp. from 1994 to 2001
- Previously with Watts, Griffis and McOuat Ltd.
R. John Carruthers
- Director of Industrial Business Development with Casebank Technologies Inc. from 1999 to 2004
- Former Manager with Deloitte & Touche until February 1999
Mark B. Keatley, MBA, MPhil, MA
- CFO of Ashanti Goldfields Ltd. from 1994 to 2000
- Senior management positions in International Finance Corporation, World Bank, Ford Motor Company, UK
Karl Schmed
- President, Global Colour Link & Associates
Noel Nedrick
- Financial Consultant
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Contact Information
Head Office
1210 Sheppard Avenue East, Suite 302
Toronto, Ontario
Canada M2K 1E3
Tel: +1 416 492 6992
Fax: +1 416 492 6993
E-mail: [email protected]
www.midlandsminerals.com
Accra, Ghana
Aviation House, Suite 203
PO Box 30679, KIA
Accra
Ghana
Tel: +233 (0) 21 772 441
[email protected]
Shinyanga, Tanzania
Sian, Ghana; April 2007
PO Box 1175
Shinyanga
Tanzania
[email protected]
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