Kingsrose Mining Kingsrose Mining Kingsrose Mining Kingsrose Mining

Limited Limited Limited Limited

Way Linggo Project Update Way Linggo Project Update
August 2010 August 2010
Kingsrose Mining Limited Kingsrose Mining Limited
OBJECTIVE OBJECTIVE
Aggressively develop into a significant gold producer based
on our proven in-house expertise in underground
mining, exploration and now gold processing.
FOCUS
C ld / il d ti ith i di t f t Commence gold / silver production, with immediate focus to
streamline our processes to optimize recoveries and $ /oz.
Way Linggo Project - South
Sumatra, Indonesia
Way Linggo Project Overview Way Linggo Project - Overview
Construction of 140,000 tonnes per annum underground gold
mine and processing facility completed without a LTI.
Commissioning commenced July 2010
Stockpiled ore on surface, 25,700t - metal value US$21 Mil.
Significant recent prospects of near surface epithermal system
with high grade float of up to 33.5 g/t gold and 200 g/t silver
Projected 45,000 oz Au and 750,000 oz Ag annual production
from 2010.
Way Linggo Project - Site Power generation Way Linggo Project - Site Power generation
statistics:
Engines 6 of
C i 6V28 Cummins 6V28
Generating
capacity 3 capacity - 3
megawatt
Total operation Total operation
power draw 1.4
mW
Power house located down at Mine Ore Pad
Way Linggo Project Process Plant Way Linggo Project - Process Plant
Relevant Information:
400 tonnes per day design 400 tonnes per day design
capacity
Merrill Crowe Process
Cyanide leach and zinc
precipitation of Au and Ag
Suitable high grade Au and
Ag ores.
Mineral amenable to rapid
leaching with high fine gold
sizing distribution. g
Way Linggo Project - Design Process Flow
Sheet
Way Linggo Project Project Snapshot Way Linggo Project - Project Snapshot
Mining
Well advanced with 25,717 tonne ,
@ 18.3 g/t Au and 214 g/t Ag
stockpiled.
On target to achieve full O ta get to ac e e u
production of 400 tonnes per-day
in early October. Planned to
coincide with commencement of
level 2 long hole stoping and level
3 ore body access.
Strongly Positive Reconciliations g y
Target of 20 25,000t ore
stockpiled achieved for plant start
up up
Way Linggo Project Project Snapshot Way Linggo Project - Project Snapshot
Plant
Construction completed p
cost $US5.5m
140,000 tpa conventional
cyanide leach with Merrill- cya de eac t e
Crowe zinc precipitation to
maximise silver recovery
Metallurgically simple > 90% Metallurgically simple > 90%
recovery,
Impressive gold particle sizing
and distribution and distribution
characteristics of the ore with
upside to plant throughput
and low cost processing. and low cost processing.
Way Linggo Project - Plant Commissioning Way Linggo Project - Plant Commissioning
Progress:
Crushing circuit fully commissioned, performance
affected by sticky clays
Milling circuit - 100% operational Milling circuit 100% operational
Leach circuit - 100% operational
CCD circuit - 100% operational
Merrill Crowe - Challenges with design and function of
clarifier.
Goldroom 100% operational
Outstanding: Outstanding:
Merrill Crowe circuit suffering low flow and requires
additional process to pre condition pregnant liquor
before presenting to leaf clarifier.
Redesign / replace leaf clarifier
Major Issues:
Merrill Crowe circuit Leaf
Management and loss prevention of microscopic high
grade gold
Merrill Crowe circuit - Leaf
clarifier
Way Linggo Project Production Challenges Way Linggo Project - Production Challenges
Understand and control fine fraction gold Understand and control fine fraction gold
Benefit to be gained by reduced portion as mill feed
Reduced run off losses to environment = higher return Reduced run-off losses to environment = higher return
High potential for reduced treatment costs
Evaluate and implement engineered solutions Evaluate and implement engineered solutions
Solutions
Cover all ore sources stockpiles, conveyors, hoppers p y pp
Build downstream silt traps
Reduce water from mining operation g p
Improve procedures of ore stockpile management
Implement wet screening process p g p
Way Linggo Project - Gold size distribution Way Linggo Project - Gold size distribution
G ld Di t ib ti
50,0 25,0
Gold Distribution
Au (g/t) Au dist (%)
30 0
40,0
15 0
20,0
(
%
)
t
)
20,0
30,0
10,0
15,0
D
i
s
t
r
i
b
u
t
i
o
n

(
G
r
a
d
e

(
g
/
t
0,0
10,0
0,0
5,0
-38 38 53 75 106 150 212 300 425 600 850 1180 2360 4000 6700 9500 38 38 53 75 106 150 212 300 425 600 850 1180 2360 4000 6700 9500
Particle Size (microns)
Medium grade ore characteristics with 54% of gold content reporting to <150 m
fraction.
Way Linggo Project - Gold size distribution Way Linggo Project - Gold size distribution
60 60
Gold Distribution
Au (g/t) Au dist (%)
40
50
40
50
%
)
20
30
20
30
D
i
s
t
r
i
b
u
t
i
o
n

(
%
G
r
a
d
e

(
g
/
t
)
0
10
0
10
-38 38 53 75 106 150 212 300 425 600 850
Particle Size (microns)
High grade ore characteristics with 41% of gold content reporting to <150 m
fraction.
Way Linggo Project - Engineered Solutions Way Linggo Project Engineered Solutions
Proposed Double
deck screen
40% of gold reporting
directly to leach tanks
Wet scrubber addition for crushing / milling circuit
Way Linggo Project - Adjusted Process Flow
Sheet Merrill Crowe
Pre clarifier added to remove Pre clarifier added to remove
micro fine clays/scale
Additional clarifier pre conditioning hopper required to achieve Merrill
Crowe design flow
Way Linggo Project TSF Construction Way Linggo Project - TSF Construction
TAILINGS STORAGE TAILINGS STORAGE
FACILITY
Engineered Earth Dam in Engineered Earth Dam in
final stage of completion.
Storage capacity 525,000 t
Government Permitted
Design built to compliance.
Project Environmental
Impact Statement, Env.
Monitoring Plan and Env.
Management Plan to
schedule and compliance.
Way Linggo Project Project Performance Way Linggo Project - Project Performance
Ore Stock Pile By March 2010 25,000 Tonnes @ 18,3 g/t Au
Mill Throughput 140,000 Tonnes p.a Mill Throughput 140,000 Tonnes p.a
Budgeted Grade For 18 Months 12 g Au/t
Pl t I P d ti A t 2010 Plant In Production August 2010
Mill Recovery Rate 90%
Mill Availability 92%
Steady State Annualised Production 45,000 oz Au per Annum
750 000 A A 750,000 oz Au per Annum
25,717 tonnes @ 18.3 g/t Au and 214 g/t Ag*
* This ore has been extracted as part of development mining and comes from the previously reported JORC
compliant measured and indicated resource.
Way Linggo Project CAPEX Way Linggo Project CAPEX
Asset acquired with capitalised Exploration & Evaluation of USD13m
Capital Expenditure To Date: Capital Expenditure To Date:
Process Plant (including power station) U$D 6m
Other Plant & Equipment U$D 3m
Mine Development Mar09 to Aug10 U$D 3m Mine Development Mar09 to Aug10 U$D 3m
Total Capitalised Expenditure spent by KRM U$D 12m
Upcoming Capital Expenditure to June 2011: Upcoming Capital Expenditure to June 2011:
Plant & Equipment (approx 25% under finance) U$D 2.4m*
Exploration U$D 4.9m
Way Linggo Project Operating Costs Way Linggo Project Operating Costs
Once in Steady State Production Operating Costs
Mining (including development) U$D152/oz
P i U$D125/ Processing U$D125/oz
Dore transport/refining costs U$D 23/oz
Overheads U$D 39/oz
Sub total U$D 316/oz Sub-total U$D 316/oz
Less silver credits (USD18/toz Ag) (U$D 216/oz)
Add Royalties (govt other) U$D 25/oz Add Royalties (govt, other) U$D 25/oz
Cash cost per gold ounce U$D 147/oz
Operating cash margin per ounce U$D 1 003/toz* Operating cash margin per ounce U$D 1,003/toz
* (based on U$D1,150 / oz Au)
General Disclaimer
This presentation has been prepared by Kingsrose Mining Limited (Kingsrose or the Company). It should not be considered as
an offer or invitation or inducement to subscribe for or the purchase of any securities in the Company. This presentation contains
forecasts and forward looking statements Such forecasts projections and information are not a guarantee of future forecasts and forward looking statements. Such forecasts, projections and information are not a guarantee of future
performance, involve unknown risks and uncertainties. Actual results and developments may differ materially from those
expressed or implied. Kingsrose has not audited or investigated the accuracy or completeness of the information, statements and
opinions contained in this presentation. Accordingly, to the maximum extent permitted by applicable laws, Kingsrosemakes no
representation and can give no assurance, guarantee or warranty, express or implied, as to, and takes no responsibility and
assume no liability for, the authenticity, validity, accuracy, suitability or completeness of, or any errors in or omission, from any
information statement or opinion contained in this presentation This overview of Kingsrose does not purport to be all inclusive information, statement or opinion contained in this presentation. This overview of Kingsrose does not purport to be all inclusive
or to contain all information which its recipients may require in order to make an informed assessment of the Companys
prospects. You should conduct your own investigation and perform your own analysis in order to satisfy yourself as to the
accuracy and completeness of the information, statements and opinions contained in this presentation before making any
investment decision.
Competent Person Statement
The information in this presentation report that relates to exploration results, mineral resources and ore reserves is based on
i f i il d b D Mi h l A d B S (h ) Ph D h i F ll f h A l i I i f Mi i d information compiled by Dr Michael Andrews B.Sc.(hons) Ph.D., who is a Fellow of the Australasian Institute of Mining and
Metallurgy, and a Director of Kingsrose Mining Ltd. Dr Andrews has sufficient experience which is relevant to the styles of
mineralization and types of deposits and to the activity which he is undertaking to qualify as a Competent Person as defined in the
2004 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code). Dr
Andrews consents to the inclusion in this report of the matters based on this information in the form and context in which it
appears.