HANKING GOLD
AN EMERGING LOW-COST GOLD PRODUCER IN AUSTRALIA
HANKING GOLD: A COMPANY ON THE RISE Hanking Gold Mining Pty Ltd (ACN 161 566 490) entered the Australian gold industry through its purchase of the Southern Cross Operations (”SXO”) from St Barbara Limited in April 2013. Hanking Gold has since carried out project consolidation, maintenance of the Marvel Loch Processing Plant and underground facilities, and long term mine development planning. Hanking Gold also carried out exploration reviews and recently completed a drilling program at SXO which increased the total JORC resource to 21,061,000 tons at an average grade of 3.7g/t Au for 2.5Moz of gold. Hanking Gold has been working diligently on maintaining and assessing our assets with a view to build a profitable middle tier gold mining company that is underpinned by low-cost and sustainable growth to benefit all stakeholders. The Company’s strategy to achieve this includes: • • •
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Commence open-cut mining the near surface gold resources in SXO from 2014 Utilise and optimise our existing infrastructure, facilities and people to get the best results Increase resources, reserves and production through exploration, development, and merger & acquisition activities.
MD’S MESSAGE DR. MARK YUMIN QIU Dear Reader, Hanking Gold is a Perth-based Australia-registered exploration and mining company (ACN 161 566 490). Currently, Hanking Gold and its Australian parent company, Hanking Australia Pty Ltd (ACN 154 695 593), are wholly owned subsidiaries of China Hanking Holdings Limited (“Hanking Holdings”), which is a diversified international mining company listed in the Hong Kong Stock Exchange with iron ore operations in China, iron ore and nickel mining operations in Indonesia, and gold operations in Australia. Hanking Holdings was founded by its entrepreneurial Chairlady Madam Yang more than 20 years ago. Its President and CEO, Dr Greg Pan, has since led the transformation of the original family company into the listed modern mining company with operations in three countries. The senior management team at Hanking Holdings has substantial international mining experience, including senior positions at Anglo Gold, Barrick Gold, Goldfields, Eldorado Gold and Sino Gold. Hanking Gold’s vision is to become the most profitable middle-tier public gold mining com-
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pany in Australia. As Managing Director of Hanking Gold, I lead the Australian team to create value for all shareholders by leveraging our parent company’s financial capability, the excellent resource potential, SXO infrastructure and local talents, and our senior management’s experience. My previous experience with Sino Gold and Eldorado Gold is most relevant and valuable in this effort. As the Manager of China Review; General Manager of Project Generation and Acquisitions; Head of Exploration and Business Development; General Manager of the Sino Gold (50%) – Gold Fields (50%) Joint Venture Company; and Group Executive, respectively, I played an important role in the formation of Sydney-based Sino Gold in the late 1990s, its subsequent $100 million IPO in Australia (ASX: SGX) in 2002, its second listing in Hong Kong and its $2+ billion sale to Vancouver-based Eldorado Gold (NYSX: EGO; TSX: ELD) in 2009, where I worked as Director of Geology and New Projects until I took the current position with
Hanking in 2011. As General Manager of the Sino Gold Jilin BMZ Mining Ltd, I led the team that discovered the White Mountain Gold Deposit and brought it from discovery, through feasibility and into production within 4 years. My team and I negotiated and set up the majority of the Sino Gold and Eldorado Gold (China) joint venture companies. I am proud of the roles I played in helping Australian and Canadian mining companies grow in China. I joined Hanking with a mission to build a successful mining company in Australia. Since joining Hanking in June 2011, as Hanking’s Australian representative and in the capability of non-executive director of KDL, I supported the $3 million ASX IPO of Sydney-based Kimberley Diamonds Limited (ASX: KDL; then named Goodrich Resources Limited) in 2012 and its subsequent share issues. In just two years’ time, the market capital of Kimberley Diamonds Limited has grown from $3 million to $120 million in 2014, creating significant value for shareholders. Hanking Gold started with the acquisition of the Southern Cross Gold Operations (“SXO”) from St Barbara Limited in April 2013. Coincidently, I did my PhD in Economic Geology at The University of Western Australia on gold mineralisation of the Southern Cross region nearly 20 years ago and I have since based my home in Perth. The SXO includes JORC resources of 2.5 Moz gold at average grade of 3.7 g/t in the highly prospective but under-explored South-
ern Cross Greenstone Belt. There is enormous potential in our 930 sqkm tenement package. Each drill hole in our first exploration program intercepted gold mineralization. The 2.5 Moz gold resources are located in several mining license areas linked with our own haulage roads, and our 2.2Mtpa Marvel Loch Processing Plant includes 4 crushers, 3 ball mills, 3 fine ore bins, 2 Knelson concentrators, 7 leach tanks and 1 gold room. Our Processing Plant and 250+ camp and office buildings are connected to grid power and water. These assets give us excellent flexibility and optimization options in setting production levels and scheduling. We are on track to start gold production in late 2014. I am confident that Hanking Gold can deliver its mission by working with all stakeholders within a culture that focuses on safety, respect, efficiency, responsibility, and innovation with honesty and integrity. Regards,
Dr Mark Yumin Qiu
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HANKING GOLD VISION AND VALUES VISION STATEMENT Hanking Gold’s vision is to become Australia’s most profitable middle-tier public gold producer. To achieve this we enable our people to be their best within a culture that focuses on safety, efficiency, responsibility and innovation with honesty and integrity. Hanking Gold’s vision will be realised by fostering a culture that emphasises the following values: •
Safety
•
Respect for the environment, others, and ourselves
•
Fostering beneficial relationships with the communities to which we belong
•
Empowerment and personal responsibility across the entire organisation
•
Commitment to continuous development and improvement
•
Sustainable growth
•
Lawful, honesty and integrity
OUR PEOPLE OUR COMMUNITY Hanking Gold’s success and growth lies
to responsible mining. Our people are en-
with its employees, contractors and close
ergetic, motivated and take ownership of
ties to the community.
their job role.
Safety, responsibility and continual im-
The local communities we work with are
provement are core components of our
important and where possible, we encour-
workplace culture. We support our staff
age employees and families to live in com-
in their endeavours to reach their poten-
munities close to our operation. Hanking
tial and provide development and training
Gold has permanent accommodation for
opportunities.
families available at both Marvel Loch and Southern Cross. We have well-equipped
Our workforce including contractors is
accommodation and office facilities at
growing rapidly. Operations are currently
Marvel Loch, which is 4 hours travel by car
based at Marvel Loch, near Southern Cross
or train from Perth.
in Western Australia. The Company’s corporate office is in Perth.
Contact us if you are interested in a career within a dynamic and growth-focused gold
Hanking Gold seeks out achievers who share our vision and proactive approach
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company.
Hanking is a proud Diamond Sponsor of the 2014 Kimberley Diamonds Limited Charity function to support Indigenous People
PROVEN TRACK RECORD Since completing the SXO acquisition in April 2013, Hanking Gold has achieved many significant milestones along the path to commercialise its portfolio of assets. Accomplishments to date include: •
Consolidated all tenements and
2014 by a further 100,000oz Au to
other assets into Hanking Gold • •
•
Renegotiated
key
operating
•
Completed SXO mine develop-
agreements to reduce costs
ment studies with AMC, MCM
Completed exploration review of
Consulting and Entech Engineer-
the Southern Cross Greenstone
ing, with initial results indicating
Belt including the entire 930 sqkm
C1 cost under A$800/Oz and all-
tenement
in sustainable cost under A$1000/
package
with
CSA
Global
Oz. Feasibility study is underway
Identified and prioritised near
and will be completed during the
mine as well as regional explora-
2nd Q of 2014
tion targets •
a total of 2.5Moz at 3.7g/t Au •
•
Prepare and lodge necessary ap-
Drilling at Frasers South intercept-
provals in order to commence
ed near surface gold mineraliza-
gold production at SXO in 4th Q
tion in all drill holes
of 2014
Updated JORC resource in March
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The team led by Mark has a proven track record in creating value for shareholders.
SOUTHERN CROSS OPERATIONS SXO OVERVIEW Hanking Gold’s flagship asset is its 100% owned Southern Cross Gold Operations (SXO) which is centred on the town of Southern Cross, 360km east of Perth, Western Australia. SXO was purchased from St Barbara Limited in April 2013. The SXO Project includes: •
930 sqkm tenement package covering 120 km strike length of the highly endowed (>10Moz) but under-explored Southern Cross Greenstone Belt.
•
JORC compliant resources of 2.5Moz of gold at an average grade of 3.7 g/t in existing mining license areas
•
Haulage roads, grid power and water in place
•
The 2.2Mtpa Processing Plant at Marvel Loch and associated infrastructure including TSF
•
250+ man camp, houses, administration buildings and workshops
•
Existing access to railway, highway and airport from Perth and Kalgoorlie
The SXO tenement package has excellent potential for the discovery of significant additional resources and the subsequent delineation of additional reserves. A mid 2010 SBM study indicated total potential to be +5 million Oz in near mine exploration.
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CSA Global identified distinctive greenfield exploration targets in 2014. An initial drilling program by Hanking Gold delineated 100,000 oz Au JORC Resource near the surface at Frasers South. The 2.5 Moz gold resources are located in several gold deposits in mining license areas. The 2.2 Mtpa Processing Plant comprises 4 crushers, 3 ball mills, 3 fine ore bins, 2 Knelson concentrators and 7 leach tanks. These provide excellent flexibility in production scheduling and processing capability. Extensive studies carried out by Hanking Gold and external consultants have led to the identification of multiple deposits that support viable and high-margin mining operations. Hanking Gold is currently working towards entering into production in 2014.
MOVING FORWARD Hanking Gold plans to start gold production at SXO in late 2014 and rapidly become a middle tier public Australian gold producer capable of delivering high profits and growth in a manner that is safe, innovative and beneficial to all stakeholders. The company has a clear path forward to achieve its goals for 2014 and beyond. Hanking Gold’s path to production begins with open pit mining operations at the Transvaal Deposit, which can be mined at a total operating cost under $800 per ounce with low capital investment. There is an existing open pit and other infrastructure at Transvaal which ensures Hanking Gold’s proposed operations can be start-
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ed quickly and with minimal impact on the environment.
Contractors will deliver the mining and haulage services and the operation will
Using $1000 in pit optimization, the initial
generate opportunities for the local com-
studies indicate cash cost of under $800
munities and beyond.
per ounce and all-in-sustaining cost under $1000 per ounce. Feasibility is due to com-
Hanking Gold has a clear path forward be-
plete in the 2nd Q of 2014.
yond mining Transvaal. It has completed studies and started the planning and ap-
Hanking Gold’s vision extends beyond
proval process for other deposits in the
SXO. Moving forward, the prioritised drill
SXO which will ensure a continuous and
ready targets in SXO will be systematically
sustainable profitable operation.
drilled. The Company is also assessing other projects for acquisition and/or joint-
Hanking Gold has all of the necessary key
venture. Hanking is on track to become a
infrastructure in place, including the Mar-
profitable middle tier public gold produc-
vel Loch processing facility which will be
er in the near future.
utilised to reduce capital expenditure and operating costs.
Hanking Gold Mining Pty Ltd Hanking Australia Pty Ltd Level 29, 77 St. George Tce Perth, WA 6000 Australia Phone +61 8 6210 8900 www.hanking.com.au Mark Yumin Qiu Managing Director qiuym@hanking.com.au +61 8 6210 8900
Adam McKay Commercial and Land Manager Adam.mckay@hanking.com.au +61 8 6210 8999