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2 Disclaimer This presentation contains forward-looking statements. All statements, other than statements of historical fact, that address activities,

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Presentation on theme: "2 Disclaimer This presentation contains forward-looking statements. All statements, other than statements of historical fact, that address activities,"— Presentation transcript:

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2 2 Disclaimer This presentation contains forward-looking statements. All statements, other than statements of historical fact, that address activities, events or developments that BRC DiamondCore believe, expect or anticipate will or may occur in the future (including, without limitation, statements regarding mineral resources, future diamond production, future revenue, exploration results, potential mineralization and future plans and objectives of BRC DiamondCore) are forward-looking statements. These forward-looking statements reflect the current expectations or beliefs of BRC DiamondCore based on information currently available to them. Forward-looking statements are subject to a number of risks and uncertainties that may cause the actual results of BRC DiamondCore to differ materially from those discussed in the forward-looking statements, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on such companies. Factors that could cause actual results or events to differ materially from current expectations include, among other things, failure to complete the Merger as a result of one or more of the closing conditions not being fulfilled (including failure to obtain all required approvals), the possibility that future exploration results will not be consistent with the expectations of BRC DiamondCore, changes in equity markets, changes in diamond markets, foreign currency fluctuations, political developments in the DRC or South Africa, changes to regulations affecting BRC DiamondCore's activities, uncertainties relating to the availability and costs of financing needed in the future, delays in obtaining or failure to obtain required project approvals, the uncertainties involved in interpreting exploration results and other geological data and the other risks involved in the diamond exploration and development industry. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, BRC DiamondCore disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Although BRC DiamondCore believe that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein. The TSX and the JSE do not accept responsibility for the adequacy or accuracy of this presentation.

3 3 Who we are Merged company Proven exploration, operations management Highly prospective diamond landholdings South Africa Democratic Republic of Congo (DRC) In-house capacity find develop produce TSX (primary), JSE listings

4 4 Board of directors Executives Dr Mike de WitPresident Theo BotoulasCEO Craig CampbellCFO Non-executives Simon VillageNon-executive Chairman Geoffrey FarrNon-executive Director Greg HunterNon-executive Director Arnold KondratNon-executive Director Stephen ThomsonNon-executive Director

5 5 Key management team NameResidence Mike de Wit President DRC29 years’ experience with De Beers (group exploration manager for Africa, general manager for DRC programmes) PhD, focus on the alluvial diamond distribution of western South Africa MSc, geophysics Theo Botoulas CEO South AfricaMSc, mining engineering 19 years’ mining, asset management and financial industry experience Craig Campbell CFO South AfricaCA Previous positions in both private and JSE-listed companies

6 6 Key management team, cont’d NameResidence Fabrice Matheys Snr Project Geologist – Kimberlite DRCMSc, economic geology 13 years’ exploration experience with De Beers in Botswana, Guinea and South Africa 4 years’ experience for Bugeco/BRC in DRC Edmond Thorose Snr Project Geologist – Alluvial DRCBSc (Hons) 10 years in gold and diamond exploration, Indonesia, New Guinea, Canada, DRC Danie van der Merwe Operations South AfricaNational Technical Diploma, mechanical engineering Worked previously for Trans Hex, manager, Saxendrift Operations; Koidu Holdings, manager, Koidu Kimberlite Project in Sierra Leone Nick Norman Consulting Geologist South AfricaMSc, geology Working experience with RTZ, various junior companies in Africa, South America

7 7 Business model ‘Earnings bed’ South African alluvial, kimberlite operations DRC alluvials ‘Potential explosive growth’ DRC kimberlites In-house capacity in terms of ‘technical pipeline’ find develop produce

8 8 South Africa: key assets Town Alluvials Kimberlites

9 9 Paardeberg East (kimberlite) 50 tph DMS sampling plant Bulk sampling PK1 – 70,000 t PK3 – 32,000 t PK2 – 15,000 t PK5 – 9,600 t regional bulk sampling facility Surface rights belong to BRC DiamondCore ltd

10 10 Completed sample PK1/W/R-T, 6-8/1054 Paardeberg East Systematically sampling targets 6 kimberlites (Gr 2) on property PK1 PK2 - 4 PK5 PK6 Gemcom Whittle on PK1: Initiated March 2008 PK5 presently being evaluated 20,000 – 30,000cts/pa with sampling plant

11 11 Paardeberg East, cont’d: PK1, PK3 and PK5 – 2008 sales February Sales CaratsStonesCt/stoneValue US$US$/ct PK PK April SalesCaratsStonesCt/stoneValue US$US$/ct PK PK

12 12 Silverstreams (alluvial) 530 holes drilled: 100x50m grid Infill drilling on channel area ongoing Two distinct terraces identified ± 35 Mt resource 670 tph front-end, DMS plant, X-ray and grease recovery Magnetic separators: banded ironstone removal Operating costs: $3 - 4/t Own power generation capability 2008 sales CaratsStonesCt/stoneValue US$US$/ct March May

13 13 Silverstreams (alluvial), cont’d ProjectGeologyResource Silverstreams30 m terrace & Rooikoppie ± 35 Mt Uitdraai15, 30-45m terrace ± 15 Mt Sanddrift30m terracePresently drilling MuishoekExploration in progress To drill

14 14 Investment in South Africa Treatment plantsComment Silverstream670 tph front50 tph DMSX-ray/greaseMagnetic separator Facility to double Paardeberg50 tph front50 tph DMSX-ray/greaseCrushing unit Kwango20 tph front5 tph DMS X-rayIn construction Bulk sampling/trial miningStatus Paardeberg 170,000 tonsPre-feasibilityCompleted Paardeberg 2, 3 & 556,600 tonsBulk samplingIn progress Silverstream782,710 tons±35 Mt resourceIn progress Drilling Uitdraai650 holes±15 Mt resourceTrial mining Q2 08 De Kalk368 holes±14 Mt resourceTrial mining Q2 08 SanddriftCommenced May 08

15 15 Global production = 4.5bct 57% from Africa – 2.6 bct DRC US$29.2b South Africa US$58.3b Botswana US$43.7b Angola US$17.2b Nambia US$35.4b World’s top five producers CountryCarats (m) DRC 991 Australia 720 Russia 684 South Africa 614 Botswana 485

16 16 DRC: key assets

17 17 Work completed: DRC GeophysicsCoverage Airborne mag11 surveys62,000 ln km10,500 km² Detailed AM93 blocks3,000 ln km149 km² Airborne EM8 blocks3,300 ln km297 km² Sampling Recce stream2 228 samples mm fractions sorted29,200 km² Follow up679 samples mm fractions sorted Other Drilling226 holes4,468 metresKwango Allu Pitting1,248 holes9,440 metresKwango Allu Gravel resource± 12 Mt25% detailed coverageKwango Allu

18 18 Progress in DRC 47,700 km² ,200 km²18,500 km² Landholding Land coverage Alluvial 8 terraces explored: ±12Mt 15 terraces to be outlined Kimberlite Defined 61 targets Ground holding 11,000 km² relinquished

19 19 Covered by sampling Covered by sampling & AM Geophysics Kisangani Kinshasa

20 20 Kwango (alluvial) 4 km Diggings

21 21 Kwango (alluvial) 8 targets: Resource ± 12Mt 15 targets: detailed exploration continues Sampling plant 90% complete Targets 1 st stage drilling & pitting Detailed drilling & pitting Licence areaTerrace surface area km² ,398150

22 22 Kimberlite exploration Prospecting sampling: fast and inexpensive Airborne surveys focused only on positive samples First drilling: relatively quick and conclusive & upto modelled grade Big mines can be developed quickly Kimberlite mines are sustainable: revenue per tonne and life of mine DRC has never seen modern exploration programs Major mineFrom discovery to production Orapa3 years Bultfontein1 year Mir2 years Mwadui2 years Mbuji Maye4 years

23 23 Kimberlite evaluation and estimated costs 1. Define targets Stream sampling Am flying US$ 1000/ss US$ 15/line km 2. Prioritise targets Mineral chemistry Detailed Geophysics for size estimate US$ 12/grain US$ 1000/block 3. Identify targets 1 core holeUS$ /hole 4. Identify targets Micro Diamond analysisUS$ 100/kg 5. 1 st Macro grade estimate100 tonnesUS$ 2000/t 6. 2,000 carats4, ,000 tonnesUS$ /t

24 24 Kinshasa Lubumbashi ANGOLA ZAMBIA Central Kasai Shear Zone Central AfricaRegionalShieldCraton Mines0012 Diamond Bearing 0517 Kimberlites % Diamondiferous 0%2%24% (10%) DRC Southern AfricaRegionalCraton Mines029 Diamond Bearing093 Kimberlites % Diamondiferous 0%9.7% (2%) 24 Tshikapa Δ

25 25 Tshikapa cluster 2km

26 26 Tshikapa (kimberlite) Complete recce stream sampling, aero-magnetic coverage 49 magnetic and grain anomalies identified Next phases drilling of targets assessment of alluvial potential

27 27 Project pipeline ExplorationDrill phaseTrial mining/evaluationProduction Alluvial Silverstreams Uitdraai De Kalk Muishoek Sanddrift Kwango River Kimberlite Paardeberg Lubao Tshikapa Candore Skeyfontein Sanddrift

28 28 Project timeline Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4 Paardeberg PK1 Conceptual Feasibility & mining Tshikapa DrillingEvaluationDrillingBulk samplingPre-feasibility Kwango Plant constructionBulk samplingTrial mining Silverstreams Trial miningMining De Kalk Uitdraai Bulk sampling Conceptual Mining Kimberlite Alluvial

29 29 Rough supply/demand Rough price to rise by ± 40% by 2012 BMO 2008 “We believe the rough diamond market is in the early stages of one of its longest periods of prospectivity ever” BMO 2008

30 30 South Africa: production profile

31 31 Diamond production: carats pa ‘Earnings bed’ ‘Potential explosive growth’: Tshikapa cluster Paardeberg PK Kwango River Sanddrift Uitdraai De Kalk Silverstreans

32 32 Diamond sales to date Carats sold $ per carat average $ sales Paardeberg EastFeb 08 3,362.32$200.11$672,824 March 08 1,323.26$231.37$266,033 SilverstreamsFeb $1,446$995,150 March $1,476$484,044 Totals 5,701.60$431.11$2,418,051

33 33 Paardeberg East diamonds

34 34 Siverstreams diamonds

35 35 Why invest? ‘Best of all worlds’ business model earnings bed near term production, cash flow explosive growth Best diamond addresses South Africa, DRC Strong board, management find, build, produce TSX, JSE listings access to international capital markets

36 Gavin Lamont 36


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