Some Notes on Kentor Gold from the Gold Symposium

The Gold Symposium was a great event and is well worth going to. I will certainly be there next year. Obviously one of the highlights for me was being able to meet Simon Milroy the Managing Director and CEO of Kentor Gold. He comes across as an extremely knowledgeable, calm and focused individual who has a clear direction for the company. Put simply, I think we have an excellent management team.

I made a few notes on Kentor Gold which I have summarised below. Please do not take these as the direct words or thoughts of KGL or any of their management team. There is always the chance I misinterpreted their comments. The usually disclaimers also apply.

Andash:

·         The government has assumed their 20% share of the project.

·         Once the government had their 20% share they asked KGL why the project was taking so long and KGL explained the situation. The government now wants to see the project up and running as soon as possible.

·         If we get approval it should be prior to Christmas with construction starting early in the New Year. In my opinion I believe the Andash approval may only be weeks away.

·         At $2.75/pound copper the cash costs at Andash are $29/oz of Gold. If you factor in current prices (for copper) the cash costs are negative. I.e. think of it like mining all the gold for free.

·         The local town has a population of 4,000 people and is 4km from the Andash project. The sentiment in town has completely changed and the people now want it to proceed.

·         Only five wealthy land owners ever opposed the project (for their own personal reasons, not because of the environment or anything else). That opposition appears futile now that the government is involved in my opinion.

·         All the engineering planning is completed; we just need to start construction.

Atkash:

For those of you who are not aware Atkash is a “satellite” mine a short distance away from Andash. By itself it is too small/uneconomical to mine. KGL had the option to acquire the project but with the previous uncertainty surrounding Andash they chose not to. Atkash has the potential to increase the NPV of the Andash project if it can be incorporated at a later date.

·         KGL chose not to exercise the option on Atkash as it would have cost them $8 million to do so and without Andash it is essentially worthless.

·         Once approval is granted for Andash, KGL will re-examine Atkash and are confident of getting it.

·         A Russian Co recently offered the land owners $14m odd for Atkash, but reneged on the deal. KGL now appears to be in the “box seat” to pick this project up again.

Jinka Minerals – General Information:

·         Jinka Minerals was never purchased to take the focus off Andash. KGL’s strategy has always been to acquire > develop > operate and as such they were always on the lookout for additional projects.

·         Jinka Minerals was about to go to an IPO but KGL was there at the right time and jumped in beforehand.

Burnakura:

·         The feasibility is delayed because they are looking at the underground operations which will ultimately be more profitable.

·         Although the feasibility is delayed this does not affect the timeline to production. Production is still scheduled to commence in June 2012

Geothermal Project

·         After "ditching" geothermal projects in Central Asia the company undertook a review of other opportunities throughout the South Pacific.

·         They could receive confirmation of the licence any day now. All the company had to do to secure the licence was to such a landholder’s claim which they have done.

·         Once the project is granted one hole needs to be drilled to take the project from inferred to indicated resource status. It is then good to go (so to speak).

·         Kentor will then spin the company out into a new co. They are not sure if KGL will retain shares in the company themselves or provide the shares to current holders (of KGL).

·         Strategy will obviously be to maximise shareholder returns (all extra cream IMO).

Gabanthia/Jervois:

·         Not much was said other than that the deeper they drill at Jervois the better the results get.

·         The preference is still to truck ore from Gabanthia to Burnakura for processing.