Management,
Strategy & Projects
David Mendelawitz
Managing Director
ASX Code
Cleveland Mining Company Limited
CDG
August 2013
Important Information
This presentation contains certain “forward‐looking statements”. All statements, other than statements of historical fact, that address activities,
events or developments that Cleveland Mining Company Limited (“Cleveland” or the “Company”) believes, expects or anticipates will or may
occur in the future are forward‐looking statements. Forward‐looking statements are often, but not always, identified by the use of words such as
“seek”, “anticipate”, “believe”, “plan”, “estimate”, “target”, “expect”, and “intend” and statements that an event or result “may”, “will”, “can”,
“should”, “could”, or “might” occur or be achieved and other similar expressions. These forward‐looking statements reflect the current internal
projections, expectations or beliefs of Cleveland based on information currently available to Cleveland.
Forward‐looking statements are subject to a number of risks and uncertainties, including those detailed from time to time in filings made by
Cleveland with securities regulatory authorities, that may cause the actual results of Cleveland to differ materially from those discussed in the
forward‐looking statements, and even if such actual results are realised or substantially realised, there can be no assurance that they will have
the expected consequences to, or effects on Cleveland. Cleveland expressly disclaims any obligation to update or revise any such forwardlooking statements.
Cleveland Mining Company Limited
2
Investment Highlights
 Experienced team with clear strategy & significant ‘skin
in the game’
 Located in a region with a strong mining culture, large
skilled labour pool and extensive mine service
providers
 Development risk now largely removed with mine ramp
up progressing well as the Premier mine transitions into
▲ Location of Cleveland Projects
production
 Now positioned for game-changing growth through
exploration upside and/ or acquisition
 Strategy designed to mitigate variable market conditions
 Track record of “fast track” success
Cleveland Mining Company Limited
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Why Gold in Brazil?
Gold
Brazil
 Low barriers to entry
 Traditional mining country
 High potential profit margin
 Low sovereign risk
in right jurisdiction
 Easy to understand
 Easy to sell
 Constant strong demand
 Declining world in-ground
resources
Cleveland Mining Company Limited
 Acceptable royalties and taxes
 Low cost energy, labour, on-costs
Example
Cost
Brazil
Australia
Cost
Difference
Truck driver
(cost to
business)
$15,000 20,000 p.a.
150,000 –
200,000 p.a
≈1000% +
Power
Source
7c – 15c per
Kwh
(hydroelectric)
+30c (Gas)
+50c (Diesel)
50-700%
Diesel
$1.08/L
1.42/L
≈130%
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Start Small to Build Strong Foundations
 Establish strong relationship with local partner – Edificia Participações
 Low technical risk development funded by equity to minimise debt servicing
pressure
 Room to understand environment – what affects budgets and schedules – what
can and can’t be done
 Time to pull together a team
 Sort out teething issues
 Strong foundation for growth
Cleveland Mining Company Limited
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From Concept to Cash Flows in 3 Years
 Starting with no resource, no team, no permits
and minimal funds, Cleveland has:
•
Secured projects
•
Identified a resource
•
Designed and licensed the project
•
Built a team and solid understanding of Brazil
•
Established production
•
Secured a growth horizon
 Within FY13/14 Cleveland will have:
•
Stabilised production
•
Established profitability
•
Commenced expansion
Cleveland Mining Company Limited
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A Mine Built in Six Months
▲Premier Mine February 2012
▲Premier Mine June 2012
Premier Mine June 2013
Cleveland Mining Company Limited
Premier Gold Mine
Stage 1 (ongoing)
 50:50 Joint Venture with Edifica Participações
 Mining and production commenced
 40tph processing capacity
 Installed plant capability to deliver 10,000oz – 20,000oz
with current ore (1.0 – 3.0 gt) and 60% recovery.
 34,000t @ 1.79gt of crushed or containing approx. 60kg
of gold on ROM currently being processed. Achieving
>60% recovery
Stage 2 (Q4 2013 – Q1 2014)
 Introduction of higher-grade material from Premier and O
Capitão (3.0 – 10.0 gt)
 Addition of cyanide and floatation circuit to increase
recovery from 60% to 90%+
Stage 3
 Expansion of resources through further drilling and
possible acquisition of other gold projects held in
immediate region
Cleveland Mining Company Limited
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Easy Mining with Exploration Upside

Initial ‘Foundation” Inferred Resource of
1.96mt @ 1.41 g/t for 89,000 ounces defined
to underpin production start and payback of
investment

Early access to high grade mineralisation

Ore-body is outcropping and shallow dipping

Open along strike and down dip

Unit repeats below and an order of
magnitude thicker

Multi million ounce prospectivity
demonstrated through drilling, geophysics,
soil sampling and mapping
Cleveland Mining Company Limited
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O Capitão Gold Project
Resource expansion potential
 Less than 10km from Premier Mine
Dona
Maria
Dona
Maria
 Site of large artisanal mine
(5-10t Au extracted by hand)
 Two mineralised areas identified:
Lavra
1. Lavra
Lavra
2. Dona Maria
 Multiple stacked lodes identified with significant highPremier
9km
grade intercepts, Including:
Lavra
• 1.30m @ 14.29 g/t Au from 44.7m
• 2.00m @ 17.21 g/t Au from 39.0m
Dona Maria
• 11.00m @ 1.01 g/t Au from 51.00m to 62.00m
• 4.40m @ 3.55 g/t Au from 91.00m to 95.40m
 Planning for processing at Premier Mine
Cleveland Mining Company Limited
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Premier Gold Mine – The Next 18 Months
Cleveland Mining Company Limited
Period
Milestone Event
3Q2013
Resumption of mining and crushing
4Q2013
Start of mining of Premier underground
1Q2014
Commissioning of cyanide circuit
Start of mining of Lavra at O Capitão
2Q2014
Start of mining of Dona Maria at
O Capitão
3Q2014
Start of mining Premier Pit 3
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Multiple Sources of Ore
Ore Tonnes Per Quarter By Source
80000
 Current production
from ROM stockpiles
70000
60000
 Open pit mining recommencing Q4
50000
40000
30000
 Relatively low reliance
on underground
sources
20000
10000
0
Q3 2013
Q4 2013
Q1 2014
ROM Stock 1.79 gt
Premier Underground 2 -4 gt
Lavra 10 gt
Premier Tailings 1 - 1.2 gt
Cleveland Mining Company Limited
Q2 2014
Q3 2014
Q 4 2014
Metago Tailings 0.88 gt
Premier Open pit 3 - 4 gt
Dona Maria 2 -3 gt
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Premier Financial Metrics – Targets
Based on 1H2014 production targets @ 7,000 ounces per Qtr
 Tonnes processed 70,000 / qtr with average head grade 3.22 g/t
 Processing recovery at 90%
 Brazil C1 cash cost target A$400 per ounce
 Australian Head Office expense target A$125 per ounce
 Sustaining CapEx and exploration expense target A$100 per ounce
 Cleveland JV profit share 70/30 reducing to 50/50 as JV funding debt repaid by
Edifica to Cleveland
Cleveland Mining Company Limited
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Growth Potential
Gold
 Mara Rosa Gold Project
 100 km from Crixas
 Strike extension of Amarillo Gold Corps 1.2m
ounce Posse Deposit
Iron Ore
 Alliance with BC Iron
 3 Projects comprising 80 tenements
 Early stage iron ore Exploration on highly
prospective ground
 Strategically located next to developing Port
and Rail Infrastructure
Cleveland Mining Company Limited
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Company Overview and Capital Structure
Cleveland Mining Company Ltd. (ASX:CDG)
Issued and Paid Up
Number
Shares
Shares on issue
211,486,669
Options
Options ($0.20)
Options ($0.62)
3,527,000
500,000
Performance Options
($0.20 - $0.84, against significant
progress milestones)
Total Options
Major Shareholders
Mrs Sarah L. Mendelawitz
Mr Wang Zhe
BC Iron (SA) Pty Ltd.
Finook Pty Ltd
Penwerris Pty Ltd
20.93%
6.00%
4.39%
3.40%
2.56%
24,540,000
28,567,000
Share Price
$0.13
Market Cap
A$23m
1-year Range
A$0.07 – 0.95
Cash (at 30/6/13)
<A$1m
Receivables (from JV
partner – to be paid from
project profits)
~A$8.5m
Outstanding Iron Ore equity
contribution from Chinese
Steel Mill
~A$10m
Debt (at 30/6/13)
~A$1.4m
Board of Directors
Don Bailey - Non-Executive Chairman
David Mendelawitz – Managing Director
Russell Scrimshaw – Non-Executive Director
Jim Williams – Non-executive Director
Cleveland Mining Company Limited
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Contact
Phone: +61 (08) 6389 6000
Fax: +61 (08) 6389 6099.
Email: info@clevelandmining.com.au
Corporate Headquarters:
Suite 3, 254 Rokeby Road, Subiaco, Western Australia
Mailing Address:
PO Box 2089, Subiaco, Western Australia, 6904
Web: www.clevelandmining.com.au
Competent Person’s Statement
Cleveland Mining Company Limited
The information in this report that relates to Exploration Results is based on information reviewed
by David Mendelawitz, who is a Fellow of the AusIMM. Mr Mendelawitz has sufficient experience
which is relevant to the style of mineralisation and type of deposit under consideration and to the
activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of
the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves.
Mr Mendelawitz consents to the inclusion of the matters based on his information in the form and
context in which it appears. Mr Mendelawitz is employed by Cleveland Mining Company Ltd.