Docstoc
EXCLUSIVE OFFER FOR DOCSTOC USERS
Try the all-new QuickBooks Online for FREE.  No credit card required.

Inata_Site_Visit_and Analyst_Tour_Nov_22-24_2011

Document Sample
Inata_Site_Visit_and Analyst_Tour_Nov_22-24_2011 Powered By Docstoc
					Avocet Mining PLC – Analyst Visit to Inata Mine
Inata Mine – Burkina Faso November 22nd - 24th, 2011
      Disclaimer
This Presentation is for information purposes in connection with Avocet Mining PLC’s (the “Company’s”) preliminary results presentation only. While the information contained
herein has been prepared in good faith, neither the Company nor any of its shareholders, directors, officers, agents, employees, consultants or advisers give, have given or
have authority to give, any representations or warranties (express or implied) as to, or in relation to, the accuracy, reliability, completeness or suitability of the information in this
Presentation, or any revision thereof, or of any other written or oral information made or to be made available to any interested party or its advisers (all such information being
referred to as "Information") and liability therefore is expressly disclaimed.
Accordingly, neither the Company nor any of its shareholders, directors, officers, agents, employees, consultants or advisers take any responsibility for, or will accept any
liability whether direct or indirect, express or implied, contractual, tortious, statutory or otherwise, in respect of the accuracy or completeness of the Information or for any of the
opinions contained herein or for any errors, omissions or misstatements or for any loss, howsoever arising or out of or in connection with the use of this Presentation. Each
party to whom this Presentation is made available must make its own independent assessment of the Company and the Presentation after making such investigations and
taking such advice as may be deemed necessary. Any reliance placed on the Presentation is strictly at the risk of such person relying on such Presentation.
This Presentation may contain forward-looking statements regarding the Company and its subsidiaries. These statements are based on various assumptions made by the
Company. Such assumptions are subject to factors which are beyond our control and which involve known and unknown risks, uncertainties and other factors which may cause
our actual results, performance or achievements to be materially different from any future results, performances or achievements expressed or implied by the forward-looking
statements. Forward-looking statements may in some cases be identified by terminology such as “may”, “will”, “could”, “should”, “expect”, “plan”, “intend”, “anticipate”, “believe”,
“estimate”, “predict”, “potential” or “continue”, the negative of such terms or other comparable terminology. These forward looking statements are only predictions. Actual events
or results may differ materially, and a number of factors may cause our actual results to differ materially from any such statement. Such factors include among others general
market conditions, demand for our products, development in reserves and resources, unpredictable changes in regulations affecting our markets, market acceptance of
products and such other factors that may be relevant from time to time.
Although we believe that the expectations and assumptions reflected in the statements are reasonable, any person relying on such Information and Presentation are cautioned
that we cannot guarantee future results, levels of activity, performance or achievement. In preparing this Presentation and except as required by law, we do not undertake or
agree to any obligation or responsibility to provide the recipient with access to any additional information or to update this Presentation or Information or to correct any
inaccuracies in, or omission from this Presentation or to update publicly any forward-looking statements for any reason after the date of this Presentation to conform these
statements to actual results or to changes in our expectations. You are advised, however, to consult any further public disclosures made by us, such as filings made with the
Alternative Investment Market, Oslo Stock Exchange or press releases.
This Presentation does not constitute an offer or invitation to sell, or any solicitation of any offer to subscribe for or purchase any securities and nothing contained herein shall
form the basis of any contract or commitment whatsoever. Copies of this Presentation should not be distributed to any affiliates, third parties or indirect recipients in any
manner whatsoever. The distribution of this Presentation in or to persons subject to other jurisdiction may be restricted by law and persons into whose possession this
Presentation comes should inform themselves about, and observe any such restrictions. Any failure to comply with these restrictions may constitute a violation of the laws of
the relevant jurisdictions.
United Kingdom: This Presentation has not been approved by an authorised person in accordance with Section 21 of the Financial Services and Markets Act 2000 and
therefore it is being delivered for information purposes only to a very limited number of persons and companies who are persons who have professional experience in matters
relating to investments and who fall within the category of person set out in Article 19 of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the
"Order") or are high net worth companies within the meaning set out in Article 49 of the Order or are otherwise permitted to receive it. Any person who receives this
Presentation who does not fall within the category of person set out in Article 19 and Article 49 of the Order should not rely or act upon it. By accepting this Presentation, the
recipient represents and warrants that they are a person who falls within the above description of persons entitled to receive the Presentation.                              2
Avocet Mining PLC – Analyst Visit to Inata Mine
Corporate Presentation    November 22nd - 24th, 2011
Agenda of Presentations

• Executive Committee (“EXCO”) and Senior
       Management Presentations:

  1. Corporate
  2.   Exploration
  3.   West Africa – Operations and Project Development
  4.   Finance
  5.   Wrap-up

• Interactive format – Q & A / Open Discussion
                                                          4
Agenda of Tour

•   Barrage
•   Sona Village
•   Mine Tour:
     1. Inata North Pit
     2. Inata Central Pit
     3. Inata Far South
     4. Minfo
•   Heavy Duty Equipment Workshop
•   Processing Plant Tour
•   Core Shack
•   Q & A - Boardroom

                                    5
Avocet Mining PLC – Vision



               Vision Statement

  Avocet Mining is committed to becoming a leading
 West African gold mining and exploration company.




                                                     6
Avocet Mining PLC – Mission

                  Mission Statement
Avocet Mining will realise its vision, by hiring top quality people
 and implementing world-class best practices in all areas of its
 operations and facilities. Avocet’s people will be dedicated to
financial, operational and institutional excellence, and have an
  entrepreneurial approach to conducting business. Avocet’s
    business will be built on a platform of global sustainable
 development, in every key facet and area of the organisation.


                                                                      7
Avocet Mining PLC – Values

                          Value Statement
  Avocet Mining have strong core values in the areas which it believes will
  contribute to the overall success and sustainable development of the business:

  Best People Practices
  • Attracting and maintaining the best people for Avocet;
  • Fair and equitable treatment of all of Avocet’s people;
  Best Corporate Governance Practices
  • Management with strong business experience and proven integrity;
  • Corporate disclosure transparency and proper fiscal prudence and diligence;
  • Best management and reporting systems;
  • Delivering a strong return for our shareholders;
  Best Community Practices
  • Providing a meaningful contribution back into the communities we do business in;
  • Responsible health and safety policies and practices;
  • Responsible environmental policies and practices;                                  8
   Corporate Overview
Largest shareholders                            Exco
    •   Elliott        17%                            •   Brett Richards
    •   Datum          12.2%                          •   Mike Norris
    •   JP Morgan      6.5%                           •   Peter Flindell
    •   BlackRock      6.3%                           •   Richard Gray
    •   Van Eck        3.5%
                                                             AVM     GOLD   FTSE Gold Mines
Current market statistics                       330
    •   OSE & AIM – 224p
                                                310
    •   Shares o/s 199.5m, market cap US$710m
    •   Cash US$120.4m, net cash US$85.4m       290

    •   EV of US$625m                           270

Directors                                       250

    •   Russell Edey, Chairman                  230

    •   Harald Arnet                            210
    •   Mike Donoghue                           190
    •   Robert Pilkington
                                                170
    •   Barry Rourke
    •   Brett Richards, CEO
    •   Mike Norris, Finance Director
                                                                                              9
        Board of Directors and Senior Management
              R P Edey           • Appointed July 2010, Russell is the retired as Chairman of AngloGold Ashanti. Non‐exec Director of Old 
        Non-executive chairman     Mutual PLC and several companies in the Rothschild Group. Appointed Chairman September 2010.

            Harold Arnet         • Chief Executive Officer of Datum AS, Avocet's second largest shareholder. Harold previously held the 
        Non-executive Director     position of Senior VP, Corporate Finance, Norway for Svenska Handelsbanken

           M J Donoghue          • A mining engineer with over 30 years experience in mining operations and new mine developments in 
        Non-executive Director     Africa, Australia, South East Asia and Europe. 
BOARD




           R A Pilkington        • Managing Director of UBS Investment Bank and director of ASA Limited, an investment trust investing 
        Non-executive Director     principally in South African gold mining companies.

           B J W Rourke          • Appointed in July 2010. He served as a Partner at PricewaterhouseCoopers for 17 years, acting as advisor 
                                   and auditor for several large and medium‐sized public and private sector businesses before retiring in 
        Non-executive director     2001.

            Brett Richards       • Appointed CEO in July 2010 and brings significant experience working in Africa and developing larger 
                                   mining companies that will be invaluable in realising Avocet’s potential.  Brett is a HR and operations 
                 CEO               executive with previous experience at Katanga Mining, Kinross and Co‐Steel Inc.

              Mike Norris        • Finance Director since July 2007 having previously been CFO since February 2007. Chartered accountant 
                                   at Coopers & Lybrand before holding senior financial and operational roles at Rio Tinto PLC and Anglo 
           Finance Director        American PLC. 
                                 • Richard joined Avocet in June 2009 following the acquisition of Wega Mining. He has had a successful 
            Richard Gray
           EVP Operations
                                   career in developing mining companies, including 15 years working in South Africa for Gencor Ltd, and 10 
                                   years in West Africa for Golden Star Resources.
                                 • Peter is a geologist with over 20 years experience in gold and copper exploration, resource evaluation and 
            Peter Flindell
           EVP Exploration
                                   reserve development in South East Asia, Central Asia and North America.  He joined the Group as Chief 
                                   Geologist in May 2002 following 12 years with Newmont.
Strategic Corporate Overview

•   Exploration / Operations / Project Development
•   Financial cost review
•   Organic growth opportunities
•   In-organic growth opportunities



• The Way Forward – 2012
     • Operating Plan(s) - Life of Mine Plans – 2012 Budgeting
       and Planning – Early 2012 Guidance


                                                                 11
    Gold Mining in West Africa
                                   Senegal                                             AVM
                                                            Mali


                                                 AVM                                         Burkina Faso
                                           Guinea




                                    Sierra Leone                      Côte d’Ivoire           Ghana

                Birimian geology     Gold resources
  Country                                              Liberia
                     (km2)               (Moz)
   Ghana            45,000                110
    Mali            124,000               33
  Guinea            27,000                12
                                                                 Birimian volcanic rocks
Burkina Faso        60,000                12
                                                                 Gold deposit
Côte d'Ivoire       113,000                8
  Senegal            6,000                 3                     Birimian greenstone                        12
2011 - Strategic Highlights and Update
• South East Asset sale
     − US$197 million of total US$200 million consideration now received
•   Paid off corporate debt of US$25 million
•   Restructured gold hedge over 7 years at US$950 – 8,250 oz. / Q until June 2018
•   Announced a regular dividend policy – currently US$20 million per annum
•   Committed US$20 million exploration budget Bélahouro - per year for next three years
•   Commenced a scoping study for Inata expansion to increase capacity in stages over
    next 1 to 4 years – targeting first phase of expansion to 245,000 ounces
• Decision taken to move to the Official List of the Main Market of the London Stock
    Exchange – shares should start trading in December 2011
       • FTSE 250 Indexation review – March 2012



               Committed to vision of being a leading West African
                  gold production and exploration company                              13
2011 - Tactical Objectives Update

                         •   Reserves increased from 1.05 M oz to 1.46 M oz
 Double Inata reserves   •   Next reserve update in Q1 2012 to hit targeted reserves



    Confirm optimal      •   Scope of study expanded to consider higher level of 
  production capacity        production
   increase for Inata    •   Study results expected Q1 2012


                         •   Koulékoun resource expanded to 1.47M oz
 Understanding Guinea    •   Targeting 2M oz by year end
                         •   High level government meetings set for Q1 2012


   Conclude SE Asia      •   Further three assets disposed of.  US$197 million of 
      asset sale             US$200 million now received
                         •   Sale of final two assets for US$3 million to be completed



                                                                                    14
2011 - Operational Highlights and Challenges

• LTI Frequency Record – 5 million L.T.I. free hours worked – July 2011
• Operations – 160,000 oz. to 165,000 oz. @ US$750 – US$800 / oz.

• Inata Mineral Resources increased to 3.36 M oz.
• Inata Mineral Reserves increased to 1.46 M oz.
• Koulékoun Mineral Resources increased to 1.47 M oz.

• Rising cost environment in West Africa – fuel, labour, governments, consumables
• Geo-political pressures and challenges – governmental, social

           2012 – Being Better – Faster - Stronger
                 West African resource base at 5.4M oz. –
        more than doubled since acquisition of Wega Mining in 2009
Avocet Mining – 2012: Focused on Delivery

         Fully focused on gold mining and 
             exploration in West Africa


        Consistent gold production from 
      operational Inata mine in Burkina Faso


     Extensive exploration pipeline supporting       Focused and funded for 
             significant organic growth               growth in West Africa

Strong balance sheet underpinning exploration and 
development plans in both Burkina Faso and Guinea


 Experienced management team that can support 
      Company through next growth phase 


                                                                         16
Avocet Mining PLC – Analyst Visit to Inata Mine
Exploration Presentation November 22nd - 24th, 2011
2010/11: building a top class team



                                                 George Pybus          Errol Papin           Wai Loon Kwong
                                                EM – Burkina Faso    Chief Accountant        Snr Accountant



                           Rob Seed
                         GM - Exploration


   Peter Flindell
 EVP - Exploration                                                                            Irwan Qarana
                                                     Vacant           Moh Compaoré
                                                 Chief Geologist     AM – West Africa       Chief Geophysicist




                         John Milovanovic
                     Chief Resource Geologist

                                                 Patrick Charles        Heta Mann             Ignatius Krogh
                                                EM – Guinea/Mali    Group Drill Manager   Snr Resource Geologist
Preface: definition of budgeting periods

                           2011                                           2012
                    Oct      Nov     Dec   Jan   Feb   Mar   Apr   May   Jun    Jul   Aug   Sep   Oct   Nov   Dec

Corporate                  FY 2011                                  Financial Year 2012
                                                                                       Wet
Exploration                                Field Season 2011/12                                    FS 2012/13
                                                                                      Season
Resource Models                                                                      

Board Meetings                                                                                          



    Review FY2012 budget

                   Update of FS2011/12 budget

                                                       Review FS2012/13 budget

                                                                               Review FY2013 budget




                                                                                                                    19
2010/11: a snapshot
    2010/11 field season                               Budget                  Actual
    Expenditure1                                     $41.66 M               $32.12 M
    Geochemical Drilling1                          135,500 m                19,200 m
    Resource Definition Drilling1                  314,400 m              201,900 m
    Mineral Resources (total) 2                  5.50 Moz Au            5.40 Moz Au
    Mineral Resources (change) 2               +2.43 Moz Au           +2.33 Moz Au
    1   Oct 2010 to Sep 2011        2   Target by end of 2011     Discovery cost ~$14/oz



    2011/12 field season                               Budget             Comment
    Expenditure1                                     $40.50 M     Sustained funding
    Geochemical Drilling1                          129,100 m    Defining new targets
                                                                Continuing resource
    Resource Definition Drilling1                  200,900 m
                                                                 and reserve growth
    1   Oct 2011 to Sep 2012



                                                                                           20
2010/11: Inata Mineral Resource increase

                                  Drilling                              Holes          Metres

                                  RC holes / collars                    538             75,800
                                  DD holes / tails                      163             26,700
                                  Total (2010/11)*                      606            102,500
                                  Previous drilling                     1,474          128,400
                                  Grand Total                           2,080          230,900
                                  * Collars & tails count as one hole


                        Metric    Grade            Gold           Initial     Change
                       Tonnes    (g/t Au)        ounces          ounces
       Measured     17,672,000    1.72           979,600         354,500        176%
       Indicated    36,101,000    1.35        1,561,800          999,400        56%
       Measured +
       Indicated
                    53,772,000    1.47        2,541,400       1,353,900         88%

       Inferred     17,663,000    1.45           822,900         296,400        178%
       Total        71,435,000    1.46        3,364,300       1,650,300         104%
                                                                                                 21
2010/11: Tri-K Mineral Resource increase

                                  Drilling                              Holes           Metres

                                  RC holes / collars                    378             39,400
                                  DD holes / tails                       62             11,200
                                  Total (2010/11)*                      384             50,600
                                  Previous drilling                     231             25,900
                                  Grand Total                           615             76,500
                                  * Collars & tails count as one hole


                        Metric    Grade            Gold           Initial     Change
                       Tonnes    (g/t Au)        ounces          ounces
       Measured
       Indicated    20,730,000    1.42           944,100         632,000         49%
       Measured +
       Indicated
                    20,730,000    1.42           944,100         632,000         49%

       Inferred     13,880,000    1.18           526,100           34,500       1425%
       Total        34,610,000    1.32        1,471,700          666,500        121%
                                                                                                 22
Burkina Faso


               23
    Burkina Faso: a miner’s playground
                     Avocet                                                                                 IAMGOLD
             (Bélahouro – 3.9Moz Au)                                                                  (Essakane – 6.1Moz Au)


             Cluff                                        Bélahouro                                       High River
     (Kalsaka – 0.6Moz Au)                                                                           (Taparko – 1.9Moz Au)


    High River                                                                                                     Orezone
(Bissa – 1.7Moz Au)                                                                                          (Bomboré – 3.4Moz Au)

    SEMAFO
(Mana – 6.0Moz Au)                          Ouagadougou




                                                                                                Endeavour
                                                                                            (Youga – 1.1Moz Au)

                                                                      Birimian geology

                                                                      Avocet permits
       Gryphon                     Ampella                50km        Deposit size (production + resource)
 (Banfora – 2.0Moz Au)       (Konkera – 3.1Moz Au)                                                                                   24
Bélahouro: spoiled for choice
• Inata Sub-District                 • Souma Sub-District
 -   Folded/sheared carbonaceous      -   Structurally-controlled
     shales (lithological control)        quartz lodes




                                                            5km



                                                                  25
Inata District: near mine resource growth
                                      Main geological concept:
                                      sheared folded folded folds


   Damba
                          Inata
                          North




              Pali                                   Ouzeni
                      Minfo

                                      Filio


                                                              1km   26
   Inata: as we bought it
~ 1000m
                 Sayouba
                                           Inata Plant
 Inata North




                                                              Inata Far South


                       Inata Central


   Tailings                            Inata South
    Dam                                                                         Minfo




  >2 g/t Au (2010 model)
  0.5 – 2 g/t Au (2010 model)                    Inata Mine Permit

                                                                                        ~ 500m
                                                                                                 27
   Inata: the fruits of our labour
~ 1000m


                    Sayouba

                                Inata Central




                                                Inata Far South

                                                                          Minfo East



    Inata North

                                                                  Minfo
                                  Inata South




  >2 g/t Au (2011 model)
  0.5 – 2 g/t Au (2010 model)
  0.5 – 2 g/t Au (2011 model)                                                          ~ 500m
                                                                                                28
   Inata: potential upside
~ 1000m


                     Sayouba

                                Inata Central




                                                Inata Far South

                                                                          Minfo East



    Inata North

                                                                  Minfo
                                  Inata South




  >2 g/t Au (2011 model)
  0.5 – 2 g/t Au (2011 model)
  Potential upside                                                                     ~ 500m
                                                                                                29
   Inata: mineable at $1,200 gold
~ 1000m


                     Sayouba

                                Inata Central




                                                Inata Far South

                                                                          Minfo East



    Inata North

                                                                  Minfo
                                  Inata South




  >2 g/t Au (2011 model)
  0.5 – 2 g/t Au (2011 model)
  Potential upside                                                                     ~ 500m
                                                                                                30
   Inata: mineable at $2,000 gold
~ 1000m


                     Sayouba

                                Inata Central




                                                Inata Far South

                                                                          Minfo East



    Inata North

                                                                  Minfo
                                  Inata South




  >2 g/t Au (2011 model)
  0.5 – 2 g/t Au (2011 model)
  Potential upside                                                                     ~ 500m
                                                                                                31
Inata: improving our geological knowledge




• Steeply plunging fold noses control high grade shoots   100m

 -   Explains strike discontinuous ore “pods”
 -   Longer term underground potential                           32
Bélahouro: 2011/12 field season
• Inata Sub-District                     • Souma Sub-District
 -   80,000 metres RC/DD                  -   50,000 metres RC/DD
 -   Develop targets at Pali and Damba    -   Target critical mass in
 -   Continue Mineral Resource growth         Mineral Resources




                                                                5km



                                                                      33
Bélahouro: 2010/11 drilling challenges
• Poor safety performance and rig
  maintenance
• Rigs unable to achieve contracted
  performance measures
  - Deep RC replaced by diamond holes
  - Long periods of no drilling – labour
    unrest, break down, non-drilling time
  - Rigs used for sterilisation, grade control
• Shallow RC rig used for district RAB
  -      Late in the season – focus on RC/DD

                          BUDGET                           ACTUAL*                           2011/12 BUDGET
 Drill Type
                Meters    Rate         Dollars   Meters     Rate           Dollars    Meters     Rate          Dollars
 RAB            70,000    18.48     1,293,320 
 AC                                              23,114    23.94           553,366     70,200       25       1,727,500
 RC            120,000    44.41     5,328,690    42,533    64.77         2,754,756    110,600       55       6,040,200
 DD             15,000    146.19    2,192,900    19,709    184.68        3,639,815     18,800      134       2,521,900
 Total         205,000    43.00     8,814,910    85,356    81.40         6,947,937    199,600       52      10,289,600 
 Jan-Sep 2011 period                                       * actuals exclude assays   Oct 2011 – Sep 2012
                                                                                                                          34
Bélahouro: 2011/12 exploration KPIs

• Resource definition drilling at Inata/Minfo and
 Souma
 -   Reverse circulation (RC) and diamond
     drilling (DD)
  - Targeting 12,000 m RC and 2,000 m DD
     per month
• District bedrock geochemistry drilling at Pali,
  Damba, Ouzeni, Kourfadie, Souma
  - Aircore (AC) augmented by soil auger
  - Targeting 6,000 m AC per month
• Targeting continued growth of Mineral
  Resources at Inata and Souma



                                                    35
       Burkina Faso: budget outlook
                           3.5
                Millions




                           3.0



                           2.5



                           2.0
   Budget ($)




                           1.5



                           1.0



                           0.5



                           0.0
                                 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12

                                                               Admin/Salaries   RC/DD Drilling   Exploration*   Capital

Q4 2011: $6.34M – FY2011: $20.65M
Q1-Q3 2012: $16.93M – FY2012: $23.17M                                                                                     * Exploration includes AC/RAB drilling
                                                                                                                                                                   36
Guinée


         37
Guinea: the golden Siguiri Basin
                                                Severstal
                                           (Lefa – 5.9Moz Au)
                                                                                                   Anglogold Ashanti
                                                                                                  (Siguiri – 5.6Moz Au)



                                    Cassidy                     Kolenda
                             (Kouroussa – 1.0Moz Au)                                                        Avocet
                                                                          Balandougou
                                                                                                         (Koulékoun –
                                                                                        Tri-K             1.5Moz Au)
                                                                                        Permits


                                                                           Kankan




        Conakry
                                   SEMAFO
                             (Kiniero – 0.9Moz Au)

                                 Burey Gold
                           (Mansounia – 0.8Moz Au)

        Birimian geology

        Avocet permits

 50km   Deposit size (production + resource)

                                                                                                                          38
Tri-K VTEM: concepts developing
                                           Koulékoun
                                        Anomalous gold on
                                        margin of low-high
      Koulékoun District
                                            conductor
      Anomalous gold on
      margins of discrete
         conductors




      Kodiéran-Kourounin
       Anomalous gold low
   conductivity (granite) margin
   along major magnetic linear




                 Fowaro
        Anomalous gold over low
        conductivity (granite) body
                                                               Kodiafaran
                                                        Anomalous gold over NW-
                                                        oriented linear conductors
                                                            (graphitic strata?)
              Dimbala
        Awaiting results from
      termite mound sampling.
          Major orpaillage
                                      2km
                                                                                     39
Koulékoun: how big is the district?

• Shallow drilling of Koulékoun
 extensions (north and south)
  - Completed, assays pending                         KEM 2
• Shallow drilling of adjacent target
  (immediately south of Koulékoun)                    Koulékoun
                                                      (KEM 1)
  - Completed, assays pending
                                         Gbinli
• Scout drilling of geochemical         (KEM 5)
  targets at KEM 2 and KEM 5
 -   Completed, assays pending                           KEM 4



• Side note on laboratories
                                              KEM 3
 -   Currently using SGS Morila
 -   Intertek setting up in Kankan
                                                                  40
Koulékoun: discrete geophysical target

• Gradient array
 -   Coincident resistivity and
     chargeability anomalies
  - Mapping sulphides in porphyry
• Building in-house geophysics team
 -   Six months payback on contracts
 -   Full time survey capacity
 -   Improved integration of all datasets




                                            41
Koulékoun: positive arsenic anomaly

• Gold in termite mounds shows broad
 scatter
  - Effected by lateritisation process
  - Too nuggetty to be reliable?
• Portable XRF analyser
 -   Innov-X Omega
 -   Arsenic produces coherent and
     discrete anomalies
 -   Extend resampling programme




                                         42
      Koulékoun: reduced stripping ratio
W                                                                                              E
                  30m @
                2.11 g/t Au                                                                           • Saprolite-hosted gold
                           37m @
                         1.44 g/t Au                                                                   mineralisation in upper 40-60
                                                                                                       metres above dolerite dyke
EOH: 90m   EOH: 100m        56m @
                          1.87 g/t Au                                                                  - Sample contamination at dolerite /
                                                                  42m @
                                                                                                         water table
                                                                                                      • Fresh rock beneath dolerite
                            35m @
                                                                1.28 g/t Au
           EOH: 117.6m    1.55 g/t Au


                     23m @
                   1.10 g/t Au
                                                                                                      • Parallel mineralised porphyries in
     EOH: 265.9m                   42m @
                                                               22m @                                   hanging wall
                                                             0.67 g/t Au
                                 1.46 g/t Au

                                                        23m @
                                        assays        1.13 g/t Au
                                        pending

               EOH: 335.3m


                                                      assays
                                                      pending

               EOH: 409.4m

                                                                     Mineralised drill intercept
                                          40m @
                                        2.44 g/t Au                  Dolerite

 50m                              assays                             Porphyry
                                  pending
                         EOH: 497.1m                                 Outline of gold mineralisation                                           43
                EOH: 561.6m
Koulékoun: aerial view
                         Coreshed




                                    44
Koulékoun: mineral resource growth




                           ~ 200m




                                     45
Koulékoun: mineral resource growth




                           ~ 200m




                                     46
Kodiéran: next resource in Tri-K

• Initial drilling to test auriferous
 chargeability anomaly                     100m

 -   Drilling to west on 100m fences
 -   Lengthy medium grade intercepts
     -   40m @ 3.69 g/t Au
 -  Parallel steeply W-dipping in
    chlorite-pyrite altered granodiorite
• Current infill and step-out drilling
 -   Directed eastward on 50m fences
 -   anticipating optimum intercepts
 -   At least four zones identified




                                                  47
Guinea: 2010/11 drilling problems

• Significant non-drilling time
  - Increased hourly charges
• High and strong water table
  - Reduced depth capacity of RC rigs
  - Limited to 100 metre deep holes
• District RAB drilling reduced
  - Manning limitations
• Fuel increases offset reduced rates

                          BUDGET                           ACTUAL*                           2011/12 BUDGET
 Drill Type
                Meters     Rate        Dollars   Meters     Rate            Dollars   Meters     Rate         Dollars
 RAB            36,000    18.48       665,160         ‐       ‐                   ‐
 AC             16,100    26.26       422,850    12,029    49.12           590,911     58,900       31      1,843,400
 RC             64,900    52.38     3,399,620    26,974    54.81         1,478,573     54,200       59      3,174,500
 DD             23,400    154.76    3,621,480    11,068    173.61        1,921,536     17,300      161      2,783,500
 Total         140,400    57.76     8,109,110    50,071    79.71         3,991,020    130,400       60      7,801,400
 Jan-Sep 2011 period                                       * actuals exclude assays   Oct 2011 – Sep 2012
                                                                                                                        48
Guinea: 2011/12 exploration KPIs

• Resource definition drilling at Koulékoun
 and Kodiéran
 -   Reverse circulation (RC) and diamond
     drilling (DD)
  - Targeting 6,000 m RC and 2,800 m DD
     per month
• District bedrock geochemistry drilling at
  Kodiafaran and new targets
  - Aircore (AC)
  - Targeting 7,000 m AC per month
• Targeting expanding Mineral Resources to
  support feasibility work



                                              49
       Guinea: budget outlook
                           2.5
                Millions




                           2.0




                           1.5
   Budget ($)




                           1.0




                           0.5




                           0.0
                                 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12

                                                               Admin/Salaries   RC/DD Drilling   Exploration*   Capital

Q4 2011: $3.15M – FY2011: $12.42M
Q1-Q3 2012: $12.86M – FY2012: $18.37M                                                                                     * Exploration includes AC/RAB drilling
                                                                                                                                                                   50
       West Africa: budget outlook
                           5.0
                Millions




                           4.5


                           4.0


                           3.5


                           3.0
   Budget ($)




                           2.5


                           2.0


                           1.5


                           1.0


                           0.5


                           0.0
                                 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12

                                                                            Burkina Faso   Guinea    Mali

Q4 2011: $9.77M – FY2011: $33.83M
Q1-Q3 2012: $30.60M – FY2012: $42.58M                                                                                                                            51
Group Pipeline: 2010



• A new gold mine
• Some exploration projects                             Inata




                                    Souma


                                            Koulékoun
                            Filio
        Damba
                  Pali   Kodiéran
  Kourfadie
              Balandougou
       Kodiafaran



                                                                52
Group Pipeline: 2011



• A bigger gold mine
• A new mine in the making                     Inata
                                                        Inata North
                                               South



                                    Souma   Koulékoun



                       Filio   Kodiéran
        Damba
                Pali
  Kourfadie
                          Balandougou

       Kodiafaran



                                                                      53
Group Pipeline: 2012



• A bigger gold mine
• Expanded operating options                              Inata    Inata North
                                                          South
• A new mine ready to be
 made                                          Souma



                                                       Koulékoun
                     Pali
         Kourfadie
                                    Kodiéran

                            Filio
                Damba


                     Balandougou

             Kodiafaran



                                                                                 54
Adding Value by Adding Ounces
  Avocet Mining PLC – Analyst Visit to Inata Mine
Operations and Project Development Presentation
                              November 22nd - 24th, 2011
The Inata Gold Mine


                      57
Chronology of Inata Project
1998 – 2004                              BHP - Resolute Ltd Joint Venture                     Metres drilled: 49,000m

  Joint venture with BHP (1998-2001)          Resolute sole operator until 2004        Resolute outlined 750,000 oz resource




2004 – 2007                                  Goldbelt Resources Ltd.                                              69,000m

                                           Acquired properties in January 2004 for      Outlined reserves and resources of
             TSX-V listed
                                            cash and shares worth US$6.5 million        0.944 Moz and 1.7 Moz respectively




2007-2009                                          Wega Mining ASA                                    No drilling at Inata
                                                                 Entered US$65 million project finance facility agreement with
Acquired Goldbelt Resources in 2007 for C$130 million in cash
                                                                                            MBL




2009 – present                                    Avocet Mining PLC                                        Step-out
drilling commenced
April 2009 announced takeover of Wega                                                  First gold pour in December 2009 and
                                              June 2009 acquisition completed
            in all-share deal                                                          commercial completion by March 2010
                                                                                                                                 58
West African Operations Management team
                           Executive Vice
                             President,
                             Operations
                            Richard Gray




       General Manager,   General Manager,         General Manager,
          Operations          Projects              Corp Affaires
        Inata Gold Mine     (West Africa)            (West Africa)
                             Bob Voisey               Saidou Ide
         Colin Belshaw


                            Finance Manager West Africa Richard Proulx

                             HR Manager West Africa Douglas Desrosiers

                                IT Manager West Africa Christo Fourie


                                                                         59
   Inata Senior Expatriate Management team


                                             General Manager,
                                             Operations – Inata
                                              Colin Belshaw




                  Mining                           Safety Gen      Security
  Processing                 Maintenance                                      Supply Manager    Technical
                 Manager                            Services      Manager
   Manager                     Manager                                          Jean-Yves       Services
                  Randy                             Manager        George
Andy Mortimore             Frans Gonsalves                                       Fournier      Alex Hagan
                 Forrest                          Terry Wilhelm   Petterson




                                                                                                        60
   Inata – First phase of expansion complete.

                                                                       • Ramp up from 2.25Mtpa to 2.7Mtpa
                                                                        complete

                                                                       • 120,642 oz produced in first 9 months
                                                                       • Gravity and Elution circuits upgrade to
AVM Ownership                                                 90%
                                                                        be completed Q1 2012
                                                            Burkina
Location

Reserves (oz) 1
                                                             Faso
                                                           1,462,500
                                                                       • Site Infrastructure in place
Resources (oz) 1                                           3,925,400
                                          2010              137,732
                                                                       • Drilling program ongoing –
Production (oz)
                                          2011           160-165,000    Resource/Reserve update Q1 2012
Cash costs ($/oz)                         2011              700-750
Estimated Mine Life (years)                                     9+     • Scoping Study into further expansion
1 NI   43-101-compliant Reserves and Resources as of 30 June 2011.      options expected Q1 2012
                                                                                                                   61
 Q3 Highlights and Challenges

                                        Inata North east wall after slip


• Challenges:

   SAG Mill DC Drive failure
   Cyanide incident
   Slip in Inata North
   Preg-robbing issue
   Increasing cost pressures
       - particularly fuel and labour
   On-going industrial relations
Slip in Inata North


                      Unique identified causes:

                      •Rainfall channelled by early ramp

                      •Discontinuity planes intersecting in
                      immediate footwall of ore body

                      •Convex shape of Eastern Wall design

                      Short term Impact:

                      •Starter Pit 15m from final design depth

                      •Approx 200,000t ore left will now be
                      scheduled during mining of Interim Pit

                                                              63
 Q3 Highlights and Challenges

• Highlights:
  • 5 Million LTI Free Man-hours worked July 5, 2011
  • Commissioning of 3rd Mining Fleet completed
  • Improvements in Mining Productivity
  • Anti Malaria Campaign
  • Inauguration of Foundation
  • Improving Industrial Relations




                                            “FAB” Ambulance donation to Arbinda
Quarterly Gold Produced


                                                       Gold Poured



                         47,963 
                60,000




                                                                                                    45,000 
                                                                                      43,008 
                                             39,423 
                                   39,229 




                                                         38,547 
                50,000




                                                                            33,256 
                40,000
      Ounces




                30,000

                20,000

                10,000




                                                                                                ‐
                    ‐


                                                       Actuals     Budget
Project geology, mineralisation and ore

• Deposit hosted in Birimian greenstone belt
    o Birimian (2.1-2.2 Ga) volcano-sedimentary series
    o Gold mineralisation at Inata is commonly associated with mesothermal
      stockwork and sheeted quartz–sulphide veining
• Extensive weathering and lateritisation of the mineralisation and
 surrounding host rocks, resulting in oxide mineralisation up to 100 m
 depth
• Recoveries seen during production have corroborated pre-production
 testwork, which indicated recoveries of 90-95% Au
• The Bond work index determination showed the oxide ore to be soft to
 moderately soft (WI of 6-10.5 kWh/t), increasing to 15.0 kWh/t for
 sulphide ore



                                                                             66
        Inata orebody – broad and zone of mineralisation
     • Simple structure at deposit scale          W                 E

     • Mineralisation continuous along                Inata North
        strike and depth

Grade Code: (g/t)
Blue: 0.7-1.0
Green: 1.0 – 2.0
Red: >2.0

Surfaces:
White: Topo and June 2011 EOM
Blue: Current $1000 Pit
Red: Updated $1200 Pit Design


                                 Inata North
                                 250m Intervals




            Inata Central
            250m Intervals




                                                                        67
Resource model reconciliation

      Cumulative Reconciliation - September. 2011
                                                    Tonnes       Grade     Ounces


    M odels
                 Cut-Off Grade: 0.7 g/t
                             Resource               4,219,797      2.40    326,271     • Mined grades and
    Actual
                           Grade Control
                            Production
                                                    3,669,969
                                                    4,231,967
                                                                   2.65
                                                                   2.41
                                                                           312,297
                                                                           327,691
                                                                                        tonnage reconciling
                       Resource Vs GC Model          (549,828)     0.24     (13,974)    well with Resource
                            Percentage                   -13%       10%         -4%
  Differences,        GC Model Vs Production          561,998     (0.24)     15,394     model
  percentage                Percentage                    15%       -9%          5%
                      Resource Vs Production           12,170      0.00       1,420
                            Percentage                  0.29%     0.15%       0.44%




                                                                                                              68
Plant to mine reconciliation



• ROM pad feed
 grade and tonnage
 reconciles well
 with plant actual




                               69
  Mining equipment
• Primary mining fleet:
 −   Excavator:            2 x PC2000
 −   Excavator:            2 x PC1250
 −   Primary Loader:       2 x 988H
 −   Backup Loader:        1 x WA800
 −   Dump Trucks:          6 x HD785-7
 −   Dump Trucks:          11 x 777F
 −   Dozer:                1 x 375A
 −   Dozer:                2 x D9R
 −   Wheel Dozer:          1 x 834H
 −   Grader:               1 x GD825A
 −   Grader:               1 x 16M
 −   Water Truck:          2 x HD475-7
                                          Komatsu serviced by Bia (Belgium)
 −   Blast Hole Drill Rig: 2 x L8 Atlas
     Copco
                                          Caterpillar serviced by Burkina Equipment
 −   Grade Control Rig: 1 x L8 (RC        (JA Delmas subsidiary, France)
     attachment)
                                                                                      70
 Mining Strategy 2012
•Schedule continues to focus on high
grade Inata North Pit

•Mining rate increases by approx 30%                          Inata North
cf Q3 through improved productivity
and supplemental contractor
                                                  Inata Central
equipment
                                          Far South
•Additional owner/operator equipment
to be ordered for 2013             Minfo West
                                                Inata South
•Strip ratio of approx.10.5
                                           Minfo East
•Rom pad builds by approx. 300,000t
through year to approx. 800,000t

•Head grade to Mill approx. 2.0g/t
Plant key components

• Currently Installed 2011
 •   1 x 110 kW Primary Crusher
 •   1 x 1490 kW SAG Mill
 •   1 x 1500 kW Ball Mill
 •   1 x 1000 kW Ball Mill
 •   6 x 1980 m3 CIL Tanks
 •   1 x Gold Elution Circuit (1st)

• Planned for 2012
 •   1 x Falcon Gravity Concentrator
 •   1 x Gekko Leach Reactor
 •   1 x Gold Elution Circuit (2nd)
 •   1 x Bulk Lime Mixing Facility


                                       72
     Process flow chart
                                                                                                                                                                                                                                                                                     GMAX10 Krebs
                                                                                                                                                                                                                                                                                     Cyclones



                                       CRUSHER
                                                                                                                                                                                         Crushed Ore Stockpile                                                                                  1 Cluster of
                                        Primary Jaw                                                                                                                                                                                                                                            20 cyclones
                                          Crusher
                                           110Kw
                                       Ken Kue 48"x42'


                                                                                                                                                                                                                                      Lime Silo
                                                                                                                                                                                                                                         100t



                                                                                                                                                                  CV 02
                            CVO1


                                                                                                                                                                                                                                                                                                                                   To CIL T1
                                                                                                                                                                                                                                                               4x4.9m                     3.7x5.5m
                                                                                                                                                                                                                                                                Allis Chalmers             Vecor
                                                                                                                                                                                                                                                               Ball Mill 1000Kw          Ball Mill 1200Kw
                                                                                                                                                                                                                                                           r



                                                                                                                                                                                                                                                                                        Ball mill discharge pumps
                                                                                                                                                                                                                                                            6.2x3.4m
                                                                                                                                                                                                                                     CVO3                  SAG Mill 1500Kw
               GRAVITY                                                                                                                                                                                                                                      DC Motor

                                                                                                                                                                                                                                                                                      SAG mill discharge pumps
 Gravity Screen

                                                                                                                                                                                                                                                                                               GRINDING
                                                                                                                                                                                                            CIL
Falcon                                                                                                                                                                                                      Carbon Transfer pumps
concentrator



                    Gekko                                                         2nd Diesel Fire Rotary Kiln                1st Diesel Fire Rotary Kiln




                                                                                            270kg/h                                 270kg/h
                                             2n Carbon recovery
                                                                                       6 Burners@250Kw                         6 Burners@250Kw
                                             screen




                                                                                                                                                  1st Carbon recovery
  Tilting furnace                                                                                                                                 screen                                                        6 CIL Tanls
                                                                                                                                                                                                                 6x1983m 3          MPSP 700 interstage
                                                                                                                                                                                                                                    @710m3/hr @45% Solis

                                                                                                                                                                                                                                                                                                    Carbon Collection
                                                                          2ND ELUTION                                                                                                                   1ST ELUTION
 BULLION
                                               4t                                                                                                           4t                                                                                                                                      TAILINGS
                                               Acid                4t Elution Column                                                                        Acid
                                               Wash                                                             Eluate water tank                           Wash               4t Elution Column
                    4xElectrowinning
                          cells                column                                                                                                       column                                                            Eluate water tank

                                                                                         Heat exchanger                                                                                             Heat exchanger
ELECTROWINNING
                                                                                                                                                                                                                                                                                  Tailings Hopper
  & GOLDROOM
                                                                                       Boiler                                                                                                      Boiler                                                                                       Krebs pumps
                                                                  barren carbon                                                                                barren carbon
                                                                                                                                                                                                                                                                                                                    Tailings Dam

                                                                                                                                                                                                                                                                                                         Tailings Dam




                                                                                                                                                                                                                                                                                                                                           73
Processing Strategies 2012

• Further refine and develop ROM pad blending program
• Develop combined carbon and gold model of ore blocks defined by grade
 control drilling
• Develop plant operating strategies to effectively process ore with varying
 carbonaceous content
• Maintain plant throughput at 340 tonnes per hour.
• Utilize 2nd elution circuit to effectively control in circuit inventory and
 maximize carbon activity
• Maximize recovery of gold to gravity/ILR circuit to reduce effective leach
 feed grades
• Optimize use of consumables / reagents
• Determine the optimum form of oxygen enrichment. Peroxide or Oxygen or
 both ?
                                                                                74
Health, safety, environment and training
• Implementation of formal HSE policies,
  procedures and inspections, using international
  mining standards
• Conduct regulatory reporting in areas of health,
  safety and environmental management
• Established on-site waste management
  program, and local waste management project
  in the community
• Established formal monitoring and control
  programs for water, air and soil discharges
• On-site reforestation and restoration of
  disturbed areas
• Significant operations training conducted to date
  of national employees, due to minimal education
  levels and lack of historical mining experience     75
 Community relations
• Significant investment in projects that
  have directly benefited the local
  communities including:
    o Development of new village and farming
      assistance
    o Roads
    o Improvement of medical centres
    o Water supply
• Emphasis with regards to local
  recruitment & developing local business
  opportunities (e.g. recycling committees)
• Inata Foundation: future focus of funding
  of community related projects
• Key sustainable development projects
  include livestock improvement,
  agriculture, agronomy and micro-             76
  enterprising
  Continuous Improvement Program




                                                                                             Water Treatment Plant




Water treatment plants effective for New Camp, Process, Mining, Phse, Works shops on 
September 14th 
Water treatment plants for Sona Camp and Old Camps should be commissioned by December 
15th.  Consumption will be close to NIL.

UTS company used from January to mid August for Site Transport.  There services were 
terminated effective September 01st
New Company CSTR‐SA started to provide transport from Ouaga to Site.   SMB buses used for 
Site transport.
  Continuous Improvement Program




                                                             TAC 1000 CN Control Unit




•Phase 1 : Automation of monitoring and addition –Complete
•Phase 2: Reduction of Target Concentration from 400ppm –
Scheduled November
Continuous Improvement Program




           •Multi-faceted approach implemented in 2011
           •Figures compare well with other mines
Gomde Barrage – Significant asset


                                              Rainfall
                                       2010       2011
                                       590mm      440mm




         2010                       2011
Progress in Pictures 1




                                   Clinic Extension   Fuel Farm & HD Workshop
 Stockpile cover




                                                         Powerhouse
       Digital SAG Mill DC Drive
Progress in Pictures 2




                   Storage Buildings and
                   Fibre Optic cabling
 Stores Building                           Heavy Duty Workshop

                       Plant Workshop
   Progress in Pictures 3




                                   (Very) Light Vehicle         All Terrain Crane
Exploration Offices & Core yard




                                  Fire Hydrant System
                                                          High Capacity Air Compressors
        Service Truck
Progress in Pictures 4




Sewage Treatment Plant                              Bar
                         New Camp and Social Area

 Industrial Laundry




                                                      Gym
Progress in Pictures 5




                           FAB Donation to Arbinda

  Filio Solar Bore Hole                                         Before

                                                       Filio Clinic and Maternity unit

                                                                  After




 “New” Inata Hand Pump
                          Filio School Refurbishment
Achievements and Opportunities


 Skilled management team with diverse worldwide mining experiences

 Safety culture

 Completed construction

 De-bottlenecking and commissioning

 Mining on schedule

 Implemented AccPac financial software

 Motivated national team

 Effective community relations

 Gomde barrage water storage
 Potential to outperform resource model and extend mine life via resource
   development
 Potential to expand plant capacity
 Potential for heap leaching of sub-grade ore
                                                                             86
2012 Outlook – Tactical Issues

• Further continuous operations improvement
    Reduction in labour costs – opportunities are there, but timing critical
    Completion of Plant improvements
    Fuel cooling Project
    Reduced reliance on hired equipment/contractors
• Improve camp accommodation and develop airstrip
• Use Gomde to ease community pressures and as argument against water
 tax
• More efficient business systems from BPR and IT improvements
• Improved cost control and reporting
• Improved in-house capacity for Reserve estimation etc
• Aim to reach 9 Million LTI free manhours by December 2012
2012 Outlook – Strategic Issues

• Continue exploration and expansion of Resource/Reserve base

• Further expand production as quickly as practical, in an effort to utilise
 excellent infrastructure and improve the cost structure


• Continue to execute on operating plan




         2012 – Being Better – Faster - Stronger
Sunrise at Inata   Sunset at Inata
Avocet Mining PLC – Analyst Visit to Inata Mine
Finance Presentation      November 22nd - 24th, 2011
      Quarterly cash cost per ounce
850                     Q2 v Q1 cash costs (US$/oz)                                       850                     Q3 v Q2 cash costs (US$/oz)

800                                                                                       800

750                                                                                       750

700                                                                                       700

650                                                                                       650

600                                                                                       600

550                                                                                       550

500                                                                                       500
      533     43       28      6         20      35       -12      24       -1      677         677     1        16      25        68      18       19       -5       10        830

      Q1    Tonnes    Grade Recovery    GIC     Mining Mill costs Admin   Royalty   Q2          Q2    Tonnes    Grade Recovery     GIC    Mining Mill costs Admin   Royalty     Q3
            treated                    change   costs                                                 treated                    change   costs




              • Increases in cash cost in Q2 and Q3 principally due to lower production
              • Gold in circuit increased by approximately 3,100 oz in Q3, compared with
                   decreases of 1,900 oz in Q1 and 400 oz in Q2
              • Exchange differences did not have a significant impact on quarter on quarter
                   costs



                                                                                                                                                                           91
Mining cash costs
            Total mining costs in US$m                                        Cost per tonne mined (US$)
            (Q3 percentage in brackets)
                                                                                        US$1.78
                                                                      1.80 
     9.0                        US$8.5m
                                                                      1.60 
                      US$7.9m
     8.0                                  Other (6%)
                                                                      1.40 
     7.0                                                                      US$1.23             US$1.25
            US$6.5m
                                          Equipment rental (3%)       1.20 
     6.0 
                                          Expat labour (5%)           1.00 
     5.0 
                                          National labour (12%)       0.80 
     4.0 
     3.0                                  Explosives (19%)            0.60 

     2.0                                  Maintenance (22%)           0.40 

     1.0                                                              0.20 
                                          Fuel (33%)
      ‐                                                                 ‐
              Q1       Q2        Q3                                             Q1        Q2        Q3
                                                              Tonnes mined:   5.3mt     4.4mt      6.8mt

• In Q2, higher fuel prices were offset by lower tonnes mined
• Q3 driven by higher usage & prices for fuel/explosives, & full quarter impact of national salary rise
• Fluctuations expected in maintenance which are not directly correlated with mining activity in
  period - focus on oil analysis & condition monitoring to optimise maintenance costs
• Future costs expected in range of US$1.25/t mined to US$1.50/t, dependent on maintenance
                                                                                                            92
Processing cash costs
             Total processing costs in US$m                                       Cost per tonne processed 
              (Q3 percentage in brackets)                                                   (US$)
     11.0                                                                 18                            US$17.13
              US$9.8m             US$10.0m
     10.0               US$9.4m               Other (4%)                                     US$16.01
                                                                          16      US$15.27
      9.0                                     Laboratory costs (3%)
                                                                          14 
      8.0                                     Other reagents (3%)
      7.0                                                                 12 
                                              National labour (4%)
      6.0                                     Grinding media (4%)         10 
      5.0                                     Expat labour (5%)            8 
      4.0 
                                              Lime (11%)                   6 
      3.0 
                                              Cyanide (15%)                4 
      2.0 
                                              Maintenance (17%)
      1.0                                                                  2 
                                              Fuel (33%)
       ‐                                                                   ‐
                Q1       Q2         Q3                                              Q1         Q2         Q3
                                                              Tonnes processed:    645kt      586kt      585kt



• In Q2, higher fuel prices were more than offset by lower tonnes processed
• Increase in Q3 driven by fuel prices, partly compensated by lower maintenance
• Savings expected in 2012 from cyanide and lime usage reduction

                                                                                                                   93
Administration cash costs
                        Total administration costs US$m
                          (Q3 percentage in brackets)
                7.0 
                                  US$6.2m                 Other (20%)
                                              US$6.1m
                6.0 
                       US$5.3m                            Equipment Rental (2%)
                5.0 
                                                          Insurance (7%)
                4.0                                       Contractors/consultants (10%)

                3.0                                       Expat labour (11%)

                                                          Canteen costs (15%)
                2.0 
                                                          Maintenance (16%)
                1.0 
                                                          National labour (18%)
                 ‐
                         Q1         Q2          Q3




• Other costs include communications, freight and customs taxes, license
 costs, office costs, travel & accommodation and other administrative
 expenses incurred at site and in Ouagadougou office

                                                                                          94
2011 year to date capex

                                                                          • Gomde barrage includes new
                                                Gomde barrage &
                                                                           spillway labyrinth
                                                                          • Plant enhancements represent
                                                  other, 16%
                  Tailings facility,
                        18%
                                                                           expenditure aimed at supporting
                                                                           sustainable mill production at
      Buildings/                                                           340 tph
 infrastructure, 13%                                          Plant
                                                          enhancements,
                                                              19%
                                                                          • Third mining fleet completed
                                                                           commissioning during Q3

                          Third mining Fleet,
                                                                          • Buildings/infrastructure include
                                 33%                                       stockpile cover
                                                                          • Tailings facility represents
                                                                           second lift

                       Total Q1 to Q3 2011
                            US$40.6m
                                                                                                               95
    African cash cost progression – Q1 to Q3
         1,600

         1,500

         1,400

         1,300

         1,200

         1,100

         1,000
                                                                                    Inata Q3                                                   Q3 2011
          900
US$/oz                                                                                2011
                                                                                                                                               Q2 2011
          800
                                                                                                                                               Q1 2011
          700
                                                                      Inata Q2
          600                                                           2011

          500                             Inata Q1
                                            2011
          400

          300

          200
                 0   200,000   400,000   600,000     800,000      1,000,000      1,200,000     1,400,000   1,600,000   1,800,000   2,000,000

                                               Cumulative production (oz production per quarter)

     • Costs for mines in sub-Sahara Africa, plus Sukari, except where data unavailable
     • Inata Q4 cost forecast at US$775 to US$825                                                                                                  96
    African cash costs – Q3 2011
         1,800
                                 Yatela
         1,600

         1,400
                                    Sabodala           Bogoso/Prestea
         1,200
                    Tabokoto/ Segala
                                                                    Siguiri
                                          Bonikro      Iduapriem
                   Samira Hill
         1,000                                 Wassa            Luolo
                                                                                    Obuasi

                 Kiniero                              Tasiast
                           Hassai                                Morilla          Sadiola
          800      Tulawaka      Syama       Inata    N. Mara                  Chirano
US$/oz
                                 Youga
                                                     Mana                        Tongon
          600              Ity
                                   SAGP                     Damang
                                                                                                                       Geita
                                                                                                                                 Tarkwa
                                          Golden
                                                                              Buzwagi        Essakane
                                           Pride
          400                                          Sukari
                                                                   Bulyanhulu
                                               Guonkoto

          200                                                                                           Bisha



            0
                   0                   30,000                   60,000                    90,000            120,000   150,000   180,000
                                                                              Q3 production ounces



     • Costs for mines in sub-Sahara Africa, plus Sukari, except where data unavailable
                                                                                                                                          97
Avocet Mining PLC – Analyst Visit to Inata Mine
Corporate Wrap-Up         November 22nd - 24th, 2011
Strategic Corporate Overview

• Exploration / Operations / Project Development
• Financial cost review
• Organic growth opportunities and project development
• In-organic growth opportunities


• The Way Forward – 2012
   • Operating Plan(s) - Life of Mine Plans – 2012 Budgeting
     and Planning – Early 2012 Guidance


                                                               99
Organic Growth Opportunities

• Organic Development – Burkina Faso (annual production)

   • Inata Expansion from 165,000 oz. to up to 245,000 oz.
                 •   Inata Resource Development
   • Inata Expansion to up to 330,000 oz.
                 •   Damba / Pali / Filio / Ouzeni / Kourafadie
   • Souma Construction / Transportation – adding up to
     120,000 oz.
                 •   Proving Resource to +1M oz and Reserves to 1M oz.


• Significant Potential for Resource and Reserve
  Growth and Development                                             100
Organic Growth Opportunities

• Organic Development – Guinea                 (annual production)
   •   Koulékoun development from 180,000 oz. to 250,000 oz – Phase 1
                     • Current Infill Program
   •   Further Koulékoun development - unknown
                     • Future Drilling Program(s)
   •   Further Tri-K development - unknown
                   •   Future Scout Drilling and Infill Drilling Programs
                   •   Kodieran / Kodiafaran still to be drilled – 2 years away
                       from study
   •   Further Guinea development - unknown
                   •   Future Scout Drilling and Infill Drilling
                   •   Balandougou 2 years away from study

• Significant District Potential
                                                                            101
Guinea – New Mining Code
• On 9 September 2011, the Republic of Guinea formally adopted a new
 mining code:
 − Ownership structure of the country increased to a potential of 35% - no
   clarity on valuation metrics for determining buy-in price or capital
   participation – to be negotiated
 − Increase in royalties by 1% (social royalty)
 − Transactions (any transaction related to the change of ownership of the
   property) needs to be approved by the government, and they have the
   right to deny transfer of the title of any license to a prospective buyer,
   and can re-assign / reclaim ownership
 − Constraints on maximum expatriate workforce
 − Minimum national workforce – with a GM / DG Guinean National in 5
   years of construction
 − Minimum capital spend of US$1B on mining concessions, with strict
   compliance to feasibility study standards
                                                                            102
In-Organic Growth Opportunities

• West-Africa focused
• Key Criteria:
 • Producing assets / Cash-flow positive
 • Wish List:
   •   Simple assets
   •   Open pitable (preferentially first in sequence of LOM)
   •   No metallurgical issues / non-refractory ore
   •   Geo-political diversity to Burkina Faso and Guinea
   •   Willing management / Board to transact
   •   Under-developed / under-capitalised (AVM value-add)
   •   Exploration upside                                       103
West Africa – the producing gold mines




                                         104
Peer group metrics
Company                                Presence                  Market cap.    Cash        Debt    Production Value per      Cash costs  Reserves    Resources (incl. reserves)   Valuation per resource 
                     (Production)            (Exploration)                (USD, millions)            2012 (e) prod. ounce (last 12 months) (Moz)     M&I                Inferred       ounce (M&I&I)
Randgold             Mali, C.Ivoire          DRC, Senegal         9,170.5       352.3         ‐       725,000    12,649           662      14.67     19.02                6.59              358
IAMGOLD Corp.        Ghana, Burkina, +more Senegal                7,161.2       621.4       18.0      972,000    7,367            621       14.57    19.01                6.83              277
African Barrick      Tanzania                                     3,473.4       455.1         ‐       691,000    5,027            633      16.75     22.03                3.70              135
SEMAFO               Burkina, Guinea, Niger                       1,932.0       224.8       14.8      288,000    6,708            525        2.48    5.16                 3.04              236
Perseus              Ghana                   C.Ivoire             1,327.3        89.0         ‐           ‐         ‐              ‐         3.47    5.47                 1.87              181
High River Gold      Burkina, Russia         Burkina              1,093.1       154.0        1.7      339,000    3,225            660        3.45    5.06                 0.65              192
Nevsun               Eritrea                                       924.9         50.1         ‐       255,000    3,627             ‐         0.97    1.61                 0.25              497
Avion Gold           Mali                    Burkina               859.4         38.6         ‐       120,000    7,162            536        0.73    1.21                 2.24              249
Resolute             Mali, Tanzania, Aus     Mali                  778.1         18.2       113.7     304,000    2,559            714        4.20    6.90                 2.15              86
Banro Corporation    DRC                     DRC                   757.0         68.0         ‐       120,000    6,308             ‐       10.60     16.10                10.78             28
Avocet Mining        Burkina                 Guinea, Mali          754.8        110.0       41.0      149,000    5,066            558        1.32    3.29                 1.34              163
Golden Star          Ghana                   Burkina               529.1        151.7       117.0     298,000    1,775           1,050       4.34    7.20                 2.12              57
Endeavour & Adamus   Burkina, Ghana          CI, Liberia, Mali     524.7        187.2       56.1      176,000    2,981           c.655       2.16    3.48                 1.09              115
Teranga              Senegal                                       487.9         93.8       65.9      180,000    2,710            730        1.36    2.03                 0.70              179
Gryphon              ‐                       Burkina, Mauritania   452.7         22.8         ‐           ‐         ‐              ‐           ‐       ‐                  2.00              226
Keegan               ‐                       Ghana                 412.9         25.0         ‐           ‐         ‐              ‐           ‐     3.28                 1.40              88
Ampella Resources    ‐                       Burkina               322.0         47.4         ‐           ‐         ‐              ‐           ‐       ‐                  2.22              145
La Mancha            Sudan, C.Ivoire, Aus                          303.3         60.0         ‐       142,000    2,136            606        0.77    1.83                 1.25              242
Noble Minerals       Ghana                   ‐                     303.3         22.0        2.7          ‐         ‐              ‐           ‐     1.07                 0.71              170
Orezone              ‐                       Burkina               272.5         62.5         ‐           ‐         ‐              ‐           ‐     2.33                 2.20              60
PMI Gold             ‐                       Ghana                 210.7         5.2          ‐           ‐         ‐              ‐           ‐     0.16                 1.05              174
Cluff Gold           Burkina, C.Ivoire       Sierra Leone          183.0         8.1         6.0       82,000    2,231             ‐         0.22    2.01                 0.24              82
Aureus Mining        ‐                       Liberia               131.1         48.3         ‐           ‐         ‐              ‐           ‐     0.75                 0.76              87
Oromin               ‐                       Senegal               122.5         24.0         ‐           ‐         ‐              ‐           ‐     2.82                 0.37              39
Volta                ‐                       Burkina               121.9         34.4         ‐           ‐         ‐              ‐           ‐     1.54                 1.63              38
Hummingbird          ‐                       Liberia               115.7         35.0         ‐           ‐         ‐              ‐           ‐     0.55                 0.26              143
Azumah               ‐                       Ghana                 114.0         27.1         ‐           ‐         ‐              ‐           ‐     0.65                 0.46              103
Riverstone           ‐                       Burkina                62.5         7.2          ‐           ‐         ‐              ‐           ‐       ‐                  1.14              55
Merrex               ‐                       Mali                   50.8         1.2          ‐           ‐         ‐              ‐           ‐     0.31                 0.07              134
Signature Metals     Ghana                   ‐                      38.6         5.1          ‐           ‐         ‐              ‐           ‐     0.48                 0.55              38
Axmin                ‐                       CAR, Senegal           25.0         7.8          ‐           ‐         ‐              ‐         1.28    2.14                 1.10               8
Cassidy Gold         ‐                       Guinea                 6.6          0.1          ‐           ‐         ‐              ‐           ‐     0.58                 0.31               7



 • Data as of 23/10/11
                                                                                                                                                                                             105
Current Market Dynamics




        Inata production continues to deliver consistently   106
Market volatility to continue




        Positive outlook for gold price reflected in corporate strategy 
                                                                           107
Gold Price Outlook




                     108
Share Price Performance in the Industry




                                          109
Multiple Compressions




                        110
Realignment of the Sector




                            111
Strategic Corporate Overview

• Exploration / Operations / Project Development

• The Way Forward – 2012
   • Operating Plan(s) - Life of Mine Plans – 2012 Budgeting
     and Planning – Early 2012 Guidance




                                                               112
Group Pipeline – 2010



• A new gold mine
• Some exploration projects                             Inata




                                    Souma


                                            Koulékoun
                            Filio
        Damba
                  Pali   Kodiéran
  Kourfadie
              Balandougou
       Kodiafaran



                                                                113
Group Pipeline – 2011



• A bigger gold mine
• A new mine in the making                     Inata
                                                        Inata North
                                               South



                                    Souma   Koulékoun



                       Filio   Kodiéran
        Damba
                Pali
  Kourfadie
                          Balandougou

       Kodiafaran



                                                                      114
Group Pipeline – 2012



• A bigger gold mine
• Expanded operating options                              Inata    Inata North
                                                          South
• A new mine ready to be
 made                                          Souma



                                                       Koulékoun
                     Pali
         Kourfadie
                                    Kodiéran

                            Filio
                Damba


                     Balandougou

             Kodiafaran



                                                                                 115
 Production Profile




Potential to deliver 500,000 oz. of production from existing assets in medium term
Avocet Mining PLC – A leading West African gold mining and exploration company
 Burkina Faso Reserves and Resources – 30 June 2011

  INATA & BELAHOURO                                   Gross                                     Net attributable

                                     Tonnes        Grade (g/t)  Contained oz. Tonnes (Mt)         Grade (g/t)  Contained oz.
Mineral Reserves
‐Proven                            9,054,000          1.99          578,800        8,148,000          1.99          520,900
‐Probable                          5,262,000          2.22          376,300        4,736,000          2.22          338,600
‐ Reserves subtotal                14,316,000         2.08          955,100       12,884,000          2.07          859,500
Mineral Resources*
‐Measured                          17,672,000         1.72          979,600        15,905,000         1.72          881,600
‐Indicated                         36,425,000         1.35         1,577,300       32,814,000         1.35         1,421,100
‐Measured + Indicated              54,097,000         1.47         2,556,900       48,719,000         1.47         2,302,700
‐Inferred                          28,039,000         1.52         1,368,500       26,272,000         1.52         1,286,200
Resources subtotal                 82,136,000         1.49         3,925,400      74,991,000          1.49         3,588,900

 * Mineral Resources include Reserves
 (Reserves were calculated at a 0.7 g/t Au cut‐off and a stock pile is developed for all low grade ore (0.5 – 0.7 g/t Au) that 
 will be processed towards the end of the mine’s life.)
 Note: the above figures are rounded up/down where appropriate.

                                                                                                                           118
Guinea Reserves and Resources – 30 April 2011


   TRI-K (KOULEKOUN)
                                        Gross                              Net attributable (100%)


                          Tonnes      Grade (g/t)   Contained oz.    Tonnes      Grade (g/t)   Contained oz.
  Mineral Reserves

  Proven
  Probable
  Reserves subtotal



  Mineral Resources*
  Measured
  Indicated              20,730,000      1.42         944,100       20,730,000      1.42         944,100
  Measured + Indicated   20,730,000      1.42         944,100       20,730,000      1.42         944,100
  Inferred               13,880,000      1.18         526,600       13,880,000      1.18         526,600
  Resources subtotal     34,610,000      1.32        1,470,700      34,610,000      1.32        1,470,700




                                                                                                               119
GOLD PRICE BY ANALYST




                        120

				
DOCUMENT INFO
Shared By:
Categories:
Tags:
Stats:
views:20
posted:12/19/2011
language:English
pages:120