corporate presentation - kestrelgold.com€¦ · corporate presentation may 2012 . disclaimer this...

Corporate Presentation May 2012

Disclaimer

This presentation contains forward looking statements. All statements, other than statements of historical fact, included herein,

including without limitation, statements regarding potential mineralisation and reserves, exploration results and future plans and

objectives of Kestrel Gold Inc, are forward-looking statements that involve various risks and uncertainties. There can be no

assurance that such statements will prove to be accurate and actual results and future events could differ materially from those

anticipated in such statements. Important factors that could cause actual results to differ materially from Kestrel Gold’s

expectations are disclosed under the heading "Risk Factors" and elsewhere in Kestrel’s documents filed from time-to-time with

the TSX Venture and other regulatory authorities.

None of the material contained in this document is intended or constitutes a solicitation or an offering of securities by Kestrel

Gold Inc or any of its affiliated companies or partnerships in any jurisdiction. The information on this presentation is not intended

to modify, qualify, supplement or amend information disclosed under corporate and securities legislation of any jurisdiction

applicable to Kestrel Gold. And Kestrel Gold makes no commitment and disclaims any duty to update those documents and

materials, except as required by law.

Total resources include all categories unless otherwise stated.

All currency are in Canadian $ unless otherwise stated.

Overview

Shares Outstanding 32,052,687

Options 2,825,000

Warrants 4,550,680

Fully Diluted 39,428,367

Share Price (Jan 6, 2012)

C$0.43

Market Capitalization (Fully Diluted) C$13.8 million

Cash (as of June 30, 2011) C$2.4 million

TSXV:KGC (as of 6 January 2012)

Overview

Kestrel Gold Inc. is a gold exploration company with options to acquire principal assets in Argentina and the Yukon

Four Key Options:

• King Solomon Dome Project in Yukon, Canada

• Huachi Project in San Juan, Argentina

• Antofalla Project in Catamarca, Argentina

• Condoryacu Project in Catamarca, Argentina

King Solomon Dome Project - Yukon

Located in the Yukon Tintina Gold Belt


King Solomon Dome Properties

• On ridges interpreted to be a potential source of the estimated 20 million ounce gold rich placer deposits of the Klondike

• Structurally controlled fracture-faulted veins within Tanana Terrane Strata comprising schists

• All properties exhibit high grade gold mineralisation with values up to 51.2 g/t Au


King Solomon Dome 2011 Exploration

• 2011 exploration activities have advanced all four properties

• Particularly encouraging, are soil and rock geochemical results confirming the presence of the largest gold anomaly in the Klondike


KSD Soil Geochemistry

• Large and significant gold geochemical anomaly defined (1.6km x 1km)

• Soil values up to 4 g/t Au (4000ppb)

• Corresponding strong silver, arsenic, lead anomalies in and around the main gold zones


KSD Rock Geochemistry

• Kestrels 2011 Trenching program returned 23 rocks samples greater than 2 g/t Au (up to 17.1 g/t Au)

• Strike length of gold bearing quartz vein system over 1.7 km long (at least 0.4 km wide)

• New >2 g/t Au zone found in the Dominion Creek headwaters giving possible offset strike length of 2.6 km

• Several values greater than 50 g/t Ag

• Previous bulk sample grades of up to 3.99 g/t Au (2276 kg sample) have been recorded in the past

Crosscutting quartz vein (Trench 7-C)

That yielded up to 9.4 g/t Au


KSD Large IP Anomaly widening with depth (pink color)


KSD Geophysics

• Kestrels 2011 IP Geophysical survey identified a large IP anomaly over a distance of 1.2 km

• The main IP Chargeabilty anomaly is open to the north and south and to depth and is on trend with the structurally controlled NW mineralized zone

• A series of similar readings are observed in the deeper readings adjacent to this large chargeable unit and possibly suggests a large mineralized body may widen at depth


KSD large IP Anomaly and coincident large Gold Soil anomaly


KSD Magnetics Looking NE


• Orogenic Gold Deposits can be very large > 150 Tonnes; 5M oz Au

• Giant Sukhoi Log Deposit (Lena Province Russia) has 30 M oz Au with an average grade of 2.0 g/t Au

• In the Klondike a very large amount of placer gold production (20 M oz Au) is derived from as little as 400km2 Klondike basement schist implying a spectacular concentration of orogenic gold in the Klondike area yet to be discovered!

• Klondike orogenic gold also has strong analogies with orogenic gold in the Cariboo Gold Belt where approximately 2.5 to 3 M oz of Placer derived gold has been recorded and approximately 1.2 M oz of gold has been produced from quartz bearing veins and wall rock

• Unlike the Cariboo Gold, the source of the Klondike Gold has to date never been found. Significantly, the King Solomon Dome, a central and prominent topographic high surrounded on all sides by rich placer gold streams, has never been diamond drilled!

Orogenic Gold Deposits – The next big find?


• Placer gold first discovered in 1866 at the height of the NZ West Coast gold rush with recorded recoveries totalling 8 M oz Au (Klondike placer recovery estimated at 20 M oz Au with only 12,000 oz Au mined from hard rock since the 1896 discovery)

• Gold bearing quartz lodes containing high grade mineralization were discovered in the Reefton Area in 1870. Production from the Blackwater mine to 1951 was around 2 Moz Au (several g/t Au grade)

• Macrae and Frasers Inferred Resource grades are between 0.7 – 3.7 g/t Au (similar to previous exploration pit bulk sample grades at KSD)

New Zealand Orogenic Gold Deposits


Deep system (Mesozonal) for Rich Klondike Gold Source at KSD?


• Cross fractures and possibly regional thrusts have concentrated precious metals

• This part of the Klondike Schist assemblage is more mafic and favourably reactive to hydrothermal gold bearing fluids

• Orogenic gold deposits of this type often extend deep (>800 m) and the structural orientation is very conducive to this

• Gold mineralization is open in all directions

Geological Model


Dominion Soil Geochemistry

• 2011 Soil sampling program discovers new 400m long gold anomaly

• 5.45 g/t and 2.38 g/t rock samples within anomalous soil region


Gold Run Soil Geochemistry

• 2011 Soil sampling program significantly increases anomalous gold area

• New zones discovered including an anomaly west of Doran NW


Gold Run Rock and Soil Geochemistry (Doron Zone)

• New soil anomalies found

• Previous rock sampling of trenches includes assays of 2.42 g/t Au over 18.2 m including 9.06 g/t Au over 1.8 m

• Trenching and diamond drilling planned for 2012


Gulf Soil and Rock Geochemistry

• Four (of 11) rock samples return greater than 1 g/t Au in 2011

• Gold anomalies over 1200m

Huachi Project - Argentina

Location of the world’s 25 largest gold porphyry giant deposits (and location of Huachi)

Huachi


Huachi near major porphyry and epithermal deposits including the world class giants


Mining in San Juan Province

• Located in the Andean Precordillera mountains of San Juan Province , Argentina

• 540 ha. of mining claims with average elevation of 3,500m

• San Juan Province is ‘mining friendly’ with the recent start up mines of Pascua-Lama, Veladero and Gualcamayo

• A unique telescoped system hosting both Cu porphyry and Au epithermal style mineralization and alteration


Mineralization and Geology

• Mineralized zones are peripheral to granodiorite (East Peak Stock)

• Higher grades of gold mineralization are structurally controlled and are related to hydrothermal breccia zones

• Cu/Mo (porphyry) mineralization spatially related to Canyon and Oro stocks to the south

• Basement host rocks, mainly gabbros, with western volcanic sequence thrust faulted over


Surface Mineralized Zones of Au, Ag

• 276 rock samples (mainly Cardero) return >0.5 g/t Au and >50 g/t Ag distributed over an area over 3.5 kilometers by 2.5 kilometers

• A further 57 rock chips collected by Kestrel in the Spring of 2011 at the Sentazon Zone average 1.06 g/t Au and 16.3 g/t Ag over 1.29m


Widespread high grade Gold with associated high grade Silver Mineralization

500 m 500 m

5.0 to 20.0

2.5 to 5.0

Au g/t

1.0 to 2.5

0.5 to 1.0

50 to 200

10 to 50

Ag g/t

5 to 10


Widespread surface Copper with associated Molybdenum Mineralization

500 m 500 m

0.25% to 2.0%

0.10% to 0.25%

Cu%

0.015% to 0.07% 0.005% to 0.015%

Mo%


Copper Mineralization from Previous Drilling

• Exploration work done by Cardero between 2005-2009 was focused on porphyry copper targets

• 10 holes drilled by Cardero (2552m)

• Includes: 353m at 0.35% Cu and 88m at 0.27 g/t Au (DDH 07HU-02)


Diamond Drilling - Copper

• Kestrels holes 11-HU-16, 18 and 19 also end in increasing copper mineralization

• Carderos holes were focused on the porphyry copper potential west of the Huachi valley but one hole (07HU-08) drilled east intersects a near vertical gold bearing structure

Gold Mineralization from Previous Drilling

• Sentazon structure intersected at 360m below workings in hole 07HU-08

• 24 m of 0.95 g/t Au in siliceous breccia with sphalerite, galena and chalcopyrite

• Hole 07HU-08 intersected 16m of mineralization of 1.28g/t Au which included 6m of 2.33g/t Au


Huachi: A Gold bearing mineralized system with Depth

• The true depth of the mineralized system remains untested



The “Towers” at Sentazon Gold, Silver, fault structure of the Sentazon Zone

Sentazon previously thought to be the main gold mineralizing structure

2011 Drilling by Kestrel however shows that the Sentazon is not the only case of high grade gold bearing structure at Huachi which indicates more may yet be found


Revised Exploration Model

• New Sanjuanina fault structure showing the best gold grades to date

• Road access now opens up exploration into the important Agua Dulce area to the south east where several samples at surface are above 5 g/t Au


2011 Diamond Drilling - Gold

• Drilling in 2011 intersected significant gold mineralization over a large portion of Huachi

• Kestrel drills the best gold mineralized zone to date at Huachi 11-HU-20 includes 150m of 0.40 g/t Au which includes 36m of 1.02 g/t Au on new Sanjuanina Structure

• 11-HU-18 intersects 70m of 0.80 g/t Au near surface largely within the oxidized cap (upper 80 meters)

70m at 0.80 g/t Au

36m at 1.02 g/t Au

20m at 0.66 g/t Au

8m at 0.88 g/t Au

3.0m at 65.0 g/t Au

5.0 at 0.84 g/t Au

20m at 1.33 g/t Au

Huachi: A Gold – Copper Mineralized system with near surface lateral extent


Widespread surface gold and copper mineralization (high grade Au, Ag, Cu sampled in areas around red line) with no cover and potentially excellent stripping ratios. Roads as seen in photograph – directly leading to the main mineralized zones.


Surface Road Cut Mineralized Zones

• Recent sampling in late 2011 from a new drill access road has returned even more high grade surface values of gold

• 13m of 1.61 g/t Au

• 6m of 0.64 g/t Au

• 14m of 2.35 g/t Au

• (including 7m of 4.4 g/t Au)


Geological Model

• Potential for Huachi to be a significant open pit bulk tonnage gold and silver epithermal deposit and a significant gold copper porphyry deposit at depth

• Model suggests concentrations of higher grade precious metal bearing feeders at depth related to intrusions and corresponding structures

• Road development planned to extend down to Huachi Valley to facilitate drilling deeper porphyry gold and copper zones

Gold bearing (up to 12.93 g/t Au) shear zone at North Ridge Road Cut Zone

Native Gold (centre) 15 microns in size


Corbett’s Model in relation to Huachi • Huachi is in the high sulphidation portion of

model

• Lithological controls at Huachi are chemically favorable mafic gabbroic hosts and dioritic intrusions

• Structural Controls include high grade gold Sentazon and Sanjuanina faults

• Near vertical siliceous breccias near fault contacts are gold bearing with grade increasing with depth (with increased copper grades and associated sulphides)

• Highest copper grades at depth are associated with multiple phase granitic stocks (Oro Rico and Canyon Stocks) Cu/Au ratio then increases with increasing depth


Cerro Casale (a conceptual exploration target model for Huachi)

• Cerro Casale N. Chile – large tonnage – low grade (Barrick/Kinross)

• 5.8 M oz Au at 0.60 g/t Au, 0.25% Cu in (sulphides – P & P Reserves Kinross Dec 2011)

•

• 17.8 M oz Au at 0.51 g/t Au (P & P Reserves Barrick Dec 2011 )

• Gold-copper-silver mineralization is strongly related to the presence of diorite, granodiorite, breccia units and the intensity of quartz stockwork veining and potassic alteration (and the same is true at Huachi)

• Multiple phase emplaced primary gold copper porphyry (as at Huachi)

• Alteration zonations very similar to Huachi (propylitic/phyllic/k-spar/secondary biotite/argillic)

• Approximately 120,000 m of exploratory holes drilled between 1983 – 2008 at Cerro Casale (6500 m total has been drilled at Huachi)


Further Proposed Work Programs

• Airborne ZTEM geophysical survey to better understand the morphology and extent of the porphyry system to depth

• Further diamond drilling of Sentazon and Sanjuanina structures to delineate high grade gold and silver mineralization

• Larger diamond drilling program targeting the main gold-copper porphyry system with deeper holes

• Further sampling and mapping of ‘new zones’ property wide with the ongoing expansion of road development


Conclusions

• Huachi is an early stage exploration project with the potential to be a world class gold-copper deposit such as Cerro Casale (250km to the north)

• The widespread extent of Au, Cu, Ag mineralization and associated alteration from surface sampling and just 19 diamond drill holes suggests the exploration target model is sizeable to depth (>1000m) for a large bulk tonnage deposit

• Infrastructure and location (moderate elevations), potential for excellent stripping ratios and positioning in mining friendly jurisdiction with 100% ownership agreement, give Huachi distinct advantages in moving forward to an advanced level

Antofalla Project - Argentina

Location

• Located in the Andean Precordilleran Puna district of Catamarca Province

• 8,760 ha. of mining claims

• Multi stage stratovolcanic, low sulphide structurally controlled mineralization

• Historical mining activity for gold, silver and lead the 17th and 18th centuries


Mineralization

• Widespread hydrothermal alteration in permeable silicified sandstones and conglomerates with disseminated and fracture filled mineralization

• Historical values of up to 1300g/t Ag, 1.7g/t Au, 4.0% Pb,

• Widespread visible gossans throughout property over several kilometres


Mineralization and Geology


Geological Model

• Indications from previous exploration that silver mineralization is both widespread and near surface in permeable Tertiary sediments

• This suggests Antafalla has the potential to be a considerably large, low sulphide, bulk tonnage silver /gold deposit

• Silicification several metres (lower grades) into wall rock and higher grades of Ag, Au, Pb, Zn concentrating along fractures

Condoryacu Project - Argentina

Location

• Condoryacu consists of 400 hectares located in the Puna region of NW Argentina

• Good road access exists to the property

• Significantly Condoryacu is located adjacent to the Diablillos project of Silver Standard

• Both are high sulphidation epithermal Au-Ag-Cu systems

• Diablillos has indicated resources of 640,000 ounces gold and 77.1 million ounces of Silver


Condoryacu – Diablillos Map

• Condoryacu is just 2km south of The Oculto Zone part of Diablillos

• Structural features controlling the distribution of Au, Ag, Cu, Pb and Zn are believed to be related

• The map shows interpreted faults on both properties

• The main mineralized zone consists of strongly silicified and brecciaed granodiorite


Main Showing : Southern Outcrop – very high grade gold and silver


Hydrothermal (Chalcedonic) Breccia – grab sample taken of 31 g/t Au (Kestrel 2011)


Excellent potential to increase the exploration target grade and tonnage

• The conceptual modeling illustrates the fault bounded nature of high grade gold, silver and copper mineralization

• IP Geophysical anomalies on the property require warrant further investigation

• Further exploration and re-interpretation of the mineralizing structures is warranted

• Mineralization is open at depth and good potential for further fault bounded high grade blocks to exist

• Metallurgical testing is being conducted by Kestrel

Corporate Exploration Strategy

2012/Q1 2012/Q2 2012/Q3 2012/Q4

•

Hu

ach

i K

ing

Solo

mo

n

Road building , trench sampling, mapping

Phase 2 Drill Program

Mapping and sampling specific areas

An

tofa

lla

Expl. Target calculation

Metallurical testing, environmental assessment, plant layout and machine acquisition

Airborne remote sensing survey

Phase 1 Drill Program (KSD)

Trenching/mapping – 4 properties

Deep Geophysical Survey

Co

nd

or-

ya

cu

Class 3 Permitting

Deep Geophysical Survey (KSD)

Concluding points

Kestrels 7 quality properties

• ALL feature high grade at surface precious metal mineralization

• ALL have little to no overburden

• ALL are situated in mining friendly jurisdictions

• ALL have excellent infrastructure

• ALL are optioned to be 100% Kestrel owned by Kestrel

Board and Management

Kevin Nephin, CEO & Director

• 25 years of experience in the investment industry

• Previously director and officer of Parklane Mines and Minerals and Micrologix Biotech Inc.

Stuart Peterson, CA, CFO & Director

• Chartered Accountant since 1982 and currently operates PROACT Chartered Accountants

• Previously served as CFO of Indicator Minerals Inc. and Foundation Resources Inc.

Timothy J. Termuende, Director, Qualified Person

• 30 years of experience in the mineral exploration industry as a geologist

• Co-founder, President & CEO of Eagle Plains Resources and Copper Canyon Resources

Marc Stachiw, Director

• VP of Alberta Wind Energy Corporation

• Previously served as Director of Business Development at Plutonic Power Corp.

Michael J. Perkins, Corporate Secretary

• Partner at Borden Ladner Gervais LLP since 2002

• Acted as corporate secretary and director of more than 20 publicly listed companies

William Taylor, V.P. Exploration

• Broad range of mineral exploration and geotechnical experience since 1983

Kestrel Gold Inc. Contact: Kevin Nephin [email protected] Ph: 604-824-6056 Head Office 218-1217 Centre St., NW Calgary, AB T2E 2R8 IR Contact: Macam Investor Relations Cameron MacDonald [email protected] Ph: 403 452-6600

mailto:[email protected]

mailto:[email protected]

corporate presentation - kestrelgold.com€¦ · corporate presentation may 2012 . disclaimer this...

Documents