1. No category

Nueva Esperanza & the re-discovery of Chimberos
Chile Explore Congress
August 2015
Laguna Resources Chile Limitada
Disclaimer
Forward Looking Statements:
These materials include forward looking statements. Forward looking statements inherently involve subjective judgment
& analysis & are subject to significant uncertainties, risks & contingencies, many of which are outside of the control of, &
may be unknown to, the company.
Actual results and developments may vary materially from that expressed in these materials. The types of uncertainties
which are relevant to the company may include, but are not limited to, commodity prices, political uncertainty, changes to
the regulatory framework which applies to the business of the company & general economic conditions. Given these
uncertainties, readers are cautioned not to place undue reliance on such forward looking statements.
Forward looking statements in these materials speak only at the date of issue. Subject to any continuing obligations
under applicable law or any relevant stock exchange listing rules, the company undertakes any obligation to publicly
update or revise any of the forward looking statements, changes in events, conditions or circumstances on which any
such statement is based
Some statements in this presentation regarding estimates or future events are forward looking statements. They involve
risk and uncertainties that could cause actual results to differ from estimated results. Forward looking statements include
estimates of future production, cash and total costs per ounce of production, reserve and mineralized material estimates,
capital costs, and other estimates or prediction of future activities. They include statements proceeded by words such as
“believe,” “estimate,” “expect,” “intend,” “will,” and similar expressions. Actual results could differ materially depending on
such things as political events, labour relations, currency fluctuations and other general economic conditions, market
prices for Kingsgate Consolidated Limited products, timing of permits and other government approvals and requirements,
changes in operating conditions, lower than expected ore grades, unexpected ground and mining conditions, availability
and cost of materials and equipment, and risks generally inherent in the ownership and operation of mining properties
and investment in foreign countries.
2
Kingsgate – 210,000 oz Gold Producer
Geographic and operational diversity in the Pacific
Operating gold mines

Chatree open pit mine in Thailand, producing 130,000 oz pa

Challenger underground mine in South Australia, producing 70,000 oz pa
Advanced-development gold silver project
Chatree
 Nueva Esperanza gold-silver project in Chile
Gold Mine
Challenger
Nueva Esperanza
Gold-Silver Project
Gold Mine
3
Corporate Background

Kingsgate is an ASX-listed (KCN) gold mining company

A$150 million market capitalisation

Directors: Ross Smyth-Kirk (Chairman), Peter McAleer, Peter Alexander, Peter Warren &
Sharon Skeggs

Chief Executive Officer: Greg Foulis

Contact: Suite 801, 14 Martin Place, Sydney NSW 2000, Australia. Tel: +61 2 8256 4800

Website: www.kingsgate.com.au
About
Kingsgate
Chatree mill at night
4
Nueva Esperanza project description
•
Operating company in Chile is Laguna
Resources Chile Limitada, fully owned
subsidiary of Kingsgate Consolidated.
--------------------------------------------------
El Salvador
Salares Norte
Diego de Almagro
Salar de
Pedernales
Chañaral
•
•
•
Esperanza gold-silver mineralised high
sulphidation epithermal system located on
NE flank of Cerro Bravos volcano
(Miocene).
Discovered in 1981 by ANCOM; Chimberos
OP mined 1998-99 and Arqueros UG 200004 by different operators.
Arqueros acquired in 2009 by LRC, with
Chimberos and remaining Esperanza in
2011, reconstituted as Nueva Esperanza
Elvira
Esperanza
La Coipa
Cerro Maricunga
Salar de
Maricunga
Copiapo
Marte
Lobo
Volcan
Minera Maricunga
Caspiche
•
FS mill (Arqueros) wrapped up in 2012
•
Environmental authorisation (RCA) in 2013
•
Water rights secured & power options
•
DFS heap leach completed in 2014
•
Resource (Jul15): 34.6 Mt @ 1.7 g/t Au
EQ60 for 1.9 Moz gold equivalent ounces
Cerro Casale
Esperanza system is located in the northern Maricunga gold
belt characterised by high sulphidation epithermal gold-silver
systems such as La Coipa, Elvira and Salares Norte
5
Teterita
The Esperanza alteration
system stands out as a
clear colour anomaly
covering about 100 km2
Chimberos
Arqueros
6
Panorama of the Esperanza Alteration System
Scale bar 1 km
Looking west
Arqueros
Chimberos
Teterita
Cerros Bravos paleovolcano
Grandote
Rosa
Chimberos
Potosi
Arqueros
Teterita
Cerro Blanco
Huantajaya
Rifle
Boulder 
Looking east
7
Exploration & Development of the Esperanza system (1981 – 2015)
•
1981-87 Discovery & exploration: By Minera Anglo American Chile as part of ANCOM Maricunga regional
program, ended with Marte gold mine development in 1987 (closed in 1992).
•
1988-2010 Period of Fragmentation: Chimberos sold to MDO in 1992, Esperanza [excl. Chimberos]
optioned to Orvana 1995-96, Arqueros leased to Minera Can Can 1999-2004, and remaining Esperanza
[excl. Arqueros] sold to MDO in 2006, followed by Arqueros to Laguna in 2009. Chimberos mined (OP) in
1998/99 by MDO, and Arqueros (UG) in 2000-2004 by Minera Can Can.
•
2011-present: Esperanza alteration system and properties restored under one ownership and re-badged
Nueva Esperanza / discovery of significant gold mineralisation at Chimberos
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
CONSOLIDATION
2004
2003
2002
2001
2000
1999
1998
1997
1996
1995
1994
1993
1992
1991
1990
PERIOD OF FRAGMENTATION
1989
1988
1987
1986
1985
1984
1983
1982
1981
DISCOVERY & EXPLORATION
Anglo American exploration
Sale of Chimberos to MDO (now Kinross)
Orvana-Hemlo exploration
Mining of Chimberos (OP)
Mining of Arqueros (UG)
Kinross explores Esperanza
Laguna acquires Arqueros
PFS on Arqueros
Kingsgate acquires Laguna
Kingsgate acquires Chimberos & Esperanza
Mill FS (Arqueros)
Heap Leach DFS
Discovery of Chimberos West gold sector
8
Exploration of Esperanza (1981-87)
•
ANCOM exploration in 1980s with MAAC as
operator, and leading roles by BTX (Bernstein
& Thompson) & RH Sillitoe
•
Traditional exploration  geochem / drilling
(RC & DDH) / tunneling into mineralisation
•
Focus on Chimberos with highest grade (silver)
•
Vila 1991 published a “measured reserve” for
Chimberos of 4.3 Mt at 320 g/t Ag and 0.14 g/t
Ag (150 g/t Ag cut-off)
Original geochemical survey that led to the identification of
12 centres of mineralisation. Map from Vila 1991.
9
Chimberos & Arqueros
1 Moz Au Eq mined

Chimberos (1998-99) open pit
- 40 Moz Ag & 31 koz Au mined (700
koz Au EQ60 @ 5.1 g/t Au EQ)

Arqueros (2000-04) underground
- 14.2 Moz Ag & 52 koz Au mined (289
koz Au EQ60 @ 7.4 g/t Au EQ)

2 Moz Au EQ remaining or discovered
subsequently @ 1.70 g/t Au EQ
Endowment, koz
Silver
Gold
Au EQ60
Chimberos OP
39,956
31
697
Arqueros UG
14,223
52
289
Chimberos West (gold)
11,860
282
480
Chimberos East (silver)
8,604
17
161
Arqueros
45,940
201
967
Teterita
16,821
-
280
xx
xx
xx
137,406
584
2,874
Historical mining
Resources (current)
On lease targeted
Total endowment, koz
10
Esperanza Alteration System
Stratigraphy: Miocene dacite pyroclastics
and domes overlying folded late Paleozoic
volcaniclastic sediments
Structure: NE trending controlling feeders
with NW and Riedel shears hosting gold
Alteration: High sulphidation with vuggy
and massive quartz, silica-argillic alteration
with alunite and jarosite.
Mineralisation styles:
1. Mantos silver at Arqueros & Teterita
2. Vein gold (various locations)
3. Hydrothermal breccia with gold and/or
silver (Chimberos)
4. Porphyry gold (Carachitas West)
Ore Mineralogy:
1. Predominantly oxidised with silver salts
(halides) in silver zones, gold &
electrum in gold zones
2. Underlying sulphide zones with gold
and enargite (unexplored)
** Silver salts (AgCl, AgBr, AgI) are all highly soluble in cyanide
*** Mining concession granted 9326 hectares (93.3 km2)
11
Arqueros Sector

High sulphidation gold-silver epithermal mineralisation hosted
in vuggy silicified Tertiary pyroclastics.

Oxidised mineralisation in mantos of vuggy quartz: silver
salts, mainly cerarygyrite (AgCl)

17.4 Mt @ 0.36 g/t Au & 82 g/t Ag (200 koz Au & 46 Moz Ag)
Arqueros North
Silver bearing mantos (horizontal)
Gold bearing structures (sub-vertical)
Arqueros South
Geological interpretation of Arqueros showing flat-lying mantos
(silver domain) and vertical mineralized structures (gold domain)
12
Teterita Sector

High sulphidation silver epithermal mineralisation hosted
in Tertiary vuggy silicified pyroclastics.

Oxidised mineralisation in mantos of vuggy and massive
quartz: silver salts, mainly cerarygyrite (AgCl)

5.7 Mt @ 92 g/t Ag (16.8 Moz Ag)

Near-surface with low strip; feeder zones yet to be
explored
13
Chimberos Sector

High sulphidation gold-silver epithermal
mineralisation hosted in Paleozoic sediments.

Oxidised mineralisation in silicified hydrothermal
breccia: silver salts, mainly cerarygyrite and
iodargyrite (AgI) in silver zone, electrum in gold zone

Bonanza grades mined with sections of 1000’s g/t Ag

11.5 Mt @ 0.81 g/t Au & 55 g/t Ag (300 koz Au &
20.5 Moz Ag) remnant ore; extension to west and at
depth
West wall of Chimberos pit showing goethite stain, assoc. with mineralisation
Maintenance workshop, canteen & accommodation
14
Exploration Model – High S epithermal system
Productive horizon @
3900-4100 metres
15
Exploration Strategy 2014 - Focus on high grade gold
7 057 000N
S
7 055 000N
Discovery zone
P4
P2
P1
7 053 000N
P3
CHIMBEROS
ECHR-29
ECHR-32
ECHD -01
ECHR-18
ECHR-28
ECHR-21
C° BANCO
ECHR-31
ECHR-33
ECHR-27
ECHR-20
ECHR-26
ECHR-23
EC HR-0 8
ECHR-17
ECHR -07
ECHR-19
ECHR-22
PIT
Limit
ECHR-25
POTOSIL
C° AA RI LLO
SANTA ROSA
RIFLE
ARQUEROS
7 051 000N
BOULDER
EBDR-01
EAQR-01
7 051 000N
HOYO NEGRO
CARACHITA
7 049 000N
CARACHITA W.
CARACHAPAMPA
Drilling Executed
7 047 000N
7 047 000N
SYMBOLOGY
Resulted in new targeting criteria
based on:
a.
Structural mapping
b.
Integrated geophysics
c.
Geochemistry
7 049 000N
•
Chimberos West discovery was
unexpected but demonstrated that
the property was capable of yielding
significant gold mineralisation in a
previously underestimated style
490000 E
7 053 000N
•
Historical drilling was erratic, focused
on exposed mineralisation, generally
shallow and often lacking structural
interpretation
488000 E
N
TETERITA
•
486000 E
484000 E
7 055 000N
Many highly prospective targets yet
to be tested, including high grade
epithermal gold intercepts
482000 E
7 057 000N
•
480000 E
7 059 000N
Objective of Spring 2014 drilling
campaign was to test highly
prospective local targets to increase
mine life and gold metal output
478000 E
7 059 000N
476000 E
Exploration Area
Nueva Esperanza
0
Exploration Targets
1
2km
1 / 20k
476000 E
478000 E
S:\1.-Pry_Nueva Esperanza\20.-Proyecto_Esperanza\Tarjets Exploracion2014\3.-Julio 2014\Nueva Esperanza_091014.dwg
480000 E
482000 E
484000 E
486000 E
Note the gaps in drilling
488000 E
490000 E
16
What we found west of Chimberos pit …
• 36m @ 8.6 g/t Au & 177 g/t Ag from 168m (ECHR25)
• 35m @ 3.4 g/t Au & 33 g/t Ag from 204m includes 6m


Gold zone of substance, previously unknown at
Esperanza, with high grade intercepts eg. 170 m @ 4
g/t Au (ECHR-25 … “discovery hole”)
Immediate reinterpretation of previous gold intercepts
in progress, armed with Chimberos West model

Gold-rich hydrothermal breccia, a new variant of
historical Chimberos bonanza (silver) mineralisation

Delivered an additional 250koz Au & 5.1 Moz Ag
straight to project inventory

Has changed the focus of the Nueva Esperanza
project towards gold targets & agitation leaching
Coarse gold panned from ECHR-25
•
•
•
•
@ 15.4 g/t Au & 52 g/t Ag (ECHR19)
20m @ 5.2 g/t Au & 84 g/t Ag (ECHR42) from 118m
15m @ 7.1 g/t Au & 103 g/t Ag (ECHR50) from 150m
48m @ 7.7 g/t Au & 94 g/t Ag (ECHR47) from 142m
100m @ 2 g/t Au & 152 g/t Ag (ECHR55) from 92m
ECHR-25
152.00
153.00
154.00
155.00
156.00
157.00
158.00
159.00
160.00
161.00
162.00
163.00
164.00
153.00
154.00
155.00
156.00
157.00
158.00
159.00
160.00
161.00
162.00
163.00
164.00
165.00
165.00
166.00
167.00
168.00
169.00
170.00
171.00
172.00
173.00
174.00
175.00
176.00
177.00
178.00
179.00
180.00
181.00
182.00
183.00
184.00
185.00
186.00
187.00
166.00
167.00
168.00
169.00
170.00
171.00
172.00
173.00
174.00
175.00
176.00
177.00
178.00
179.00
180.00
181.00
182.00
183.00
184.00
185.00
186.00
187.00
188.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
13.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
23.00
1.05
1.60
3.93
2.44
1.93
1.58
1.26
1.29
1.60
2.41
1.96
2.13
1.40
1.89
4.99
1.57
0.85
58.30
2.55
8.62
17.95
9.60
7.25
6.86
5.58
6.55
20.00
9.16
5.06
6.92
30.20
6.69
6.33
13.60
14.60
10.00
3.68
11.17
158
123
148
162
112
86
106
115
103
87
78
62
64
108
143
57
34
81
57
121
150
140
207
178
99
123
202
173
149
145
297
148
192
141
255
206
120
149
3.68
3.65
6.40
5.14
3.79
3.01
3.03
3.20
3.32
3.86
3.26
3.16
2.47
3.69
7.37
2.52
1.41
59.65
3.50
10.64
20.45
11.93
10.70
9.83
7.23
8.60
23.37
12.04
7.54
9.34
35.15
9.16
9.53
15.95
18.85
13.43
5.68
13.65
17
Discovery of Chimberos West

Started with sterilisation drilling from the Chimberos pit to
close off historical mineralisation

Significant gold intercepts prompted immediate
reassessment of geology and drilling priorities: 17,200
metres of drilling in 74 holes.

Core/chip logging, geophysics (magnetics) and structural
geology were critical in positioning drill holes

Resulted in 20% increase in gold equivalent resource

Open at depth with drilling intercepts and IP/resistivity
identifying gold & copper sulphide zone underlying the
high grade oxide mineralisation
Sep 2014
18
Chimberos West drilling
Grandote Fault
Core logging
Interpretation
19
Chimberos Gold Discovery
Chimberos Silver
Gold: 20koz
Silver: 8.6Moz
AuEQ60: 160koz
Chimberos Historical
Gold: 310koz
Silver: 40Moz
Chimberos Total
AuEQ60: 700koz
Gold: 300koz
Chimberos Gold
Silver: 20.5Moz
Gold: 280koz
AuEQ60*: 640koz
Silver: 11.9Moz
AuEQ60*: 480koz
20
Section SW-100
Model: Structurally controlled replacement of Paleozoic
conglomerates by massive silica/hydrothermal breccia, and
gold mineralisation
21
Nueva Esperanza Mineral Resource (JORC) – July 2015
Deposit
Arqueros
Teterita
Chimberos
Silver
Chimberos
Gold
Total
Category
Tonnes
Grade
Contained Metal
Million
Gold
g/t
Silver
g/t
Gold EQ60
g/t
Gold
‘000 oz
Silver
million oz
Gold EQ60
‘000 oz
Silver EQ60
million oz
Measured
-
-
-
-
-
-
-
-
Indicated
14.1
0.35
88
1.82
160
39.9
824
49.4
Inferred
3.3
0.4
57
1.35
40
6.0
143
8.6
Subtotal
17.4
0.36
82
1.73
200
45.9
967
58.0
Measured
1.5
-
101
1.69
-
4.9
82
4.90
Indicated
3.5
-
92
1.54
-
10.4
174
10.4
Inferred
0.7
-
71
1.19
-
1.6
27
1.6
Subtotal
5.7
-
92
1.54
-
16.8
282
16.9
Measured
-
-
-
-
-
-
-
-
Indicated
3.0
0.16
76
1.43
15
7.3
138
8.3
Inferred
0.6
0.10
66
1.20
2
1.3
23
1.4
Subtotal
3.6
0.15
74
1.39
17
8.6
161
9.6
Measured
-
-
-
-
-
-
-
-
Indicated
6.2
1.17
51
2.02
233
10.2
403
24.2
Inferred
1.7
0.90
31
1.42
49
1.7
77
4.6
Subtotal
7.9
1.11
47
1.89
282
11.9
480
28.8
Measured
1.5
-
101
1.69
-
4.9
82
4.9
Indicated
26.8
0.47
79
1.78
410
67.7
1,537
92.2
Inferred
6.3
0.50
52
1.34
94
10.6
271
16.2
Total
34.6
0.45
75
1.70
503
83.2
1,890
113.4
Cut-off grade 0.5 g/t Au EQ60
22
What Next ?
Discovery of significant gold
mineralisation at Chimberos West has
resulted in a change of project strategy,
and re-opened the project to further new
gold discoveries.

Significance of the discovery:

Provided a critical level of gold ounces
to gold inventory

Resulted in a new exploration model to
be applied to remainder of property

Reassessment of known centres of
gold mineralisation  new gold targets

Showed the value of traditional
geological prospecting tools when
competently applied

Showed an under appreciation of
bonanza gold in this silver dominant
system 30 years after initial exploration

Re-focus on northern Maricunga for higher
grade high sulphidation epithermal systems
23
KINGSGATE CONSOLIDATED LIMITED
www.kingsgate.com.au
24