Download - Corporate Presentation February 2011
Exploring For Gold in a Gold-Rich System
February 2011
2 LDM-TSXV
Forward-looking statements relate to future events or the anticipated performance of the Company and reflect
management’s expectations or beliefs regarding such future events and anticipated performance. In certain
cases, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected",
"budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "believes", or variations of such words
and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be
taken", "occur" or "be achieved", or the negative of these words or comparable terminology. By their very
nature forward-looking statements involve known and unknown risks, uncertainties and other factors which may
cause the actual performance of the Company to be materially different from any anticipated performance
expressed or implied by the forward-looking statements.
Important factors that could cause actual results to differ from these forward-looking statements include risks
related to failure to define mineral resources, to convert estimated mineral resources to reserves, the grade and
recovery of ore which is mined varying from estimates, future prices of gold and other commodities, capital and
operating costs varying significantly from estimates, political risks arising from operating in Brazil, uncertainties
relating to the availability and costs and availability of financing needed in the future, changes in equity
markets, inflation, changes in exchange rates, fluctuations in commodity prices, delays in the development of
projects, conclusions of economic evaluations, changes in project parameters as plans continue to be refined,
uninsured risks and other risks involved in the mineral exploration and development industry.
Although the Company has attempted to identify important factors that could cause actual performance to
differ materially from that described in forward-looking statements, there may be other factors that cause its
performance not to be as anticipated. There can be no assurance that forward-looking statements will prove
to be accurate, as actual results and future events could differ materially from those anticipated in such
statements. Accordingly, readers should not place undue reliance on forward-looking statements. These
forward-looking statements are made as of the date of this presentation and the Company does not intend,
and does not assume any obligation, to update these forward-looking statements.
Forward Looking Statements
3 LDM-TSXV
Juruena Project
Extensive gold system
+0.5Moz gold mined at surface
Property largely untested
Drilling commenced December 2010
Mato Grosso, Brazil Favourable mining jurisdiction, extensive
infrastructure
Well Financed $9.2mln IPO completed November 2010
Experienced Executive Team
Why Lago Dourado?
4 LDM-TSXV
Ownership Breakdown Shares (M)
Shares Outstanding pre-IPO 42.2
Shares Offered under IPO(1) 18.4
Basic Shares Outstanding 60.6
Options(2) 5.1
Warrants(3) 3.4
F/D Shares Outstanding 69.1
Major Shareholders
Management & Directors (11%)
Rosseau Asset Management (23%)
Pinetree Capital
(1) Gross proceeds of $9.2mln (18.4 M shares issued at $0.50)
(2) 1.55 M exercisable at $0.25 until June 2015, 1.55 M exercisable at $0.35 until September 2015, 2.0 M exercisable at $0.50
until December 2015
(3) 2.1 M exercisable at $0.50 (exercisable until July 2012), 1.3 M exercisable at $0.50 (exercisable until November 2012)
Capital Structure
5 LDM-TSXV
Management & Board of Directors
Thomas Obradovich Chairman 20 yrs experience in developing gold, base
metal and diamond projects from grass roots
to advanced exploration
Co-founder of Aurelian, Ex-President & CEO
of Young-Davidson Mines
Forbes Gemmell President & CEO Former precious metals analyst at Raymond
James covering mid-tier gold producers
10 years experience in the investment industry
CFA charterholder
Murray Paterson
VP Exploration & Development 15 yrs experience in open pit/underground,
precious/base metal operations in a variety of geological environments (Bolivia, Australia, Africa)
Mine Geological Superintendent for
Equinox at Lumwana and Chief Mine Geologist
at the world-class Geita Gold Mine in Tanzania
Dan Noone Director VP Exploration at Guyana Goldfields
20 years experience including senior geologist
roles in PNG, Indonesia & South America
Dean MacEachern
Director Co-founded Lago Dourado
20 years precious & base metals exploration predominantly with Falconbridge (1988-2005)
Jon Douglas
Director Senior VP & CFO of Northgate since 2001,
former Director of Aurelian
Involved in A&D and operation of gold projects
in North America and Australia
Michele McCarthy Director / Corporate Secretary Chief Legal Officer for GMAC Residential Funding
Advisor to mutual funds and hedge funds on corporate governance, compliance & HR matters
6 LDM-TSXV
Brazil Summary
Quick Facts
9th largest economy in the
world
Experienced cost effective labour
Extensive infrastructure (roads,
power, towns & services)
12th largest gold producer in the world
5th most populous country
Fraser Institute – ranked 3rd in South America based on 2009/10 Mining Survey
7 LDM-TSXV
Juruena – Active Workings
Extensive Surface Workings
Jacaré pit
Est. 10,000 oz Au extracted in 1 year
Garimpeiros (Artisanal Miners) Property worked by garimpeiros since 1980s
(>0.5Moz Au mined)
Only alluvials and saprolite mined (to
an average depth of ~30m)
8 LDM-TSXV
Owned mid-1990s by Madison
Failed to make property payment in late 1997 (weak gold price, post-Bre-X)
Property position has been consolidated by Lago Dourado
Geomin claims – option agreement to earn 70% interest
Talon claims – acquired 100% interest
Juruena – Background
9 LDM-TSXV
Juruena/Teles Pires Horst
Regionally extensive granite belt with multiple intrusive events
Stretches east-west for >400km, average width 30km, 7Moz produced 1979-1997
Access to the project by small airplane, dirt road and river
Juruena – Alta Floresta Gold Belt
10 LDM-TSXV
Intrusion Related Deposit
Mineralization structurally controlled
Multiple Styles of
Mineralization
High-grade veins with minor
sulphides
Sheeted quartz veins Stockworks Minor breccias Shear zones with intense fracturing Vein sets range from 1m up
to 50m wide, veins range from <1cm to 1m thick
Juruena – Local Geology
11 LDM-TSXV
Extensive Gold-In-Soil Anomaly
Core Area
Noventa Graus
12 LDM-TSXV
Potassic alteration reconciles with gold-in-soil anomalies
Red = Potassium rich zones
Green = Thorium rich zones
Blue = Uranium rich zones
+ signs indicate existing artisanal pits (except SE Soil Anomaly)
Core Area
Noventa Graus
Significant Potassic Alteration
13 LDM-TSXV
Majority of mineralized zones are located on the contact zones of the magnetic
bodies
Red = Magnetic bodies as blocks
Yellow = Magnetic lows
+ signs indicate existing artisanal pits (except SE Soil Anomaly)
Core Area
Noventa Graus
Magnetic Blocks
Core Area
Noventa Graus
14 LDM-TSXV
Historic Drilling
91 holes (15,000m) drilled by
Madison in mid-1990s
Drilling concentrated around existing garimpeiro workings
No systematic drill work
over entire mineralized system
Juruena – Historic Drill Holes
15 LDM-TSXV
Juruena – Active Workings
Tomate Zone Discovered April 2010
16 LDM-TSXV
10m
Quartz sheeted veins at east end of Crentes Pit
2.7 g/t Au over 36m (oxidized) in hole J-01 underneath workings
Intercepts of 10.5m @ 15g/t and 5.8m @ 52g/t starting at vertical depth of 75m recorded beneath Crentes Pit
Juruena – Crentes Pit
17 LDM-TSXV
Shear zone
Example of intense fracturing filled with kaolinite
Juruena – Jacare Pit
Fault zone
Reportedly most of the gold came from the intersection of the shear zone (trending north-north-east) and the other fault zone (thin reddish zones easily visible) trending 340 degrees
18 LDM-TSXV
Juruena – Community Relations
19 LDM-TSXV
2 known deposits hosted in eastern most package of volcanics and granite
Jauru belt hosts VMS type
showings and shear zone gold showings
Option agreement to acquire 70% of project (same terms as Juruena project)
Historic Drill Intercepts for
J6-A Target
14.7 g/t Au over 12.0m
5.8 g/t Au over 12.1m
Jauru – Earlier Stage
Geomin Option (85,000 hectares)
20km
20 LDM-TSXV
Exploration upside
One of the most extensive gold-in-soil anomalies in Brazil
Property largely untested
Major zone to south (Noventa Graus) already discovered
Upcoming catalysts
Drilling – 12,000m (60 holes) campaign commenced December 2010
Second rig to be added March/April 2010
Drill results – late 1Q 2011 onwards
Well financed – current cash balance of ~$7mln
Proven and experienced executive team
Investment Opportunity
21 LDM-TSXV
Geomin Deal
Payment schedule outlined below earns Lago a 70% interest
(joint venture is established with standard dilution clauses)
Option to buyout remaining 30% for US$8 M
Talon Deal
100% interest for $1 M cash, 0.5 M shares + 0.5 M warrants
Appendix A - Juruena Deal Structure
Year-End Option
Payments (US$)
Exploration
(US$)
Total
(US$)
On Signing $150,000 Nil $150,000
July 2010 $250,000 $350,000 $600,000
July 2011 $300,000 $450,000 $750,000
July 2012 $300,000 $1,200,000 $1,500,000
July 2013 $500,000 $1,500,000 $2,000,000
Total $1,500,000 $3,500,000 $5,000,000
22 LDM-TSXV
Head Office Contact
Forbes Gemmell
President & CEO
55 University AvenueSuite 700
Toronto Ontario M5J 2H7
Tel: 416 368 5005Fax: 416 703 8299
Email: [email protected]
www.lagodourado.ca
Contact