Board of Directors
•
John de Jong, CEO & President, Director
•
Robert Bryce, P.Eng.(Mining), Director
•
Vance White, Director
•
Yuhuan Ge, Director
•
Stephen de Jong, B.Comm.,Director
2
Executive Summary
• Gold exploration company active in Canada focusing on the
Lamaque Property located in Quebec; one of the world’s most
favourable mining jurisdictions
• On track towards million ounce gold resource – inferred
mineral resource of 1,365,000 tons grading 0.186 opt gold (cut)
or 0.275 opt gold (uncut) as audited and reclassified by Watts
Griffis & McOuat’s NI 43-101 Calculation
• Advanced property, over $20 million spent on exploration by
previous vendors
• Adjacent properties have produced 9.5 million ounces of gold
over a 60 year mining history with production continuing at
the neighbouring Sigma Mine
3
Flagship Property – Lamaque
• Val-d’Or is a world class jurisdiction with large multi-million
ounce producers located adjacent to the Lamaque property;
Sigma and Lamaque Mines (~ 9 million ounces).
• Shear hosted gold in classic vein style and “plugs with flats”
exist on property
• Existing NI 43-101 resource on property (253,000 ounces
cut; 375,000 ounces uncut)
4
Location Map
5
Location of Lamaque Property
• Second best jurisdiction in
the world for mining
investment. Quebec offers
the best flow-through
incentives in Canada.
• Quebec is one of the best
jurisdictions in the world
for clear and concise
environmental regulations.
6
Idealized Section of a Plug with Flats
TSXV: KLA
Sigma Pit adjacent to Integra property, 2009
TSXV: KAL
Sigma Mine Flat (underground)
~3 ounces/ton gold
TSXV: KAL
Sigma Mine Flat (underground active
heading): ~3 ounces/ton gold
TSXV: KAL
Lamaque Property Work Program Areas
11
Parallel Zones & No. 10 Vein
12
Forestel Zone
13
Sixteen Zone
14
Sigma Vein Extension
15
No. 4 Plug
• Targeting million
ounce gold deposit
• 3 to 9 g/t gold
• Open pit &
underground targets
TSXV: KLA
16
Summary of Production for Historical Lamaque Property
Tons Milled
Grade (oz
Au/ton)
Total Ounces
% of Total
Main
20,025,627
0.185
3,695,194
81.14
Not on Property
East
2,999,842
0.115
343,827
7.55
Not on Property
West
1,644,606
0.133
219,014
4.81
Not on Property
No. 2
Mine
1,634,488
0.145
237,596
5.22
Not on Property
No. 4
Plug
160,973
0.152
24,497
0.54
Situated on
Property
No. 3
Mine
152,015
0.22
33,423
0.73
Situated on
Property
No. 5
Plug
5,572
0.111
616
0.01
Situated on
Property
Totals
26,623,123
0.17
4,554,167
100.00
Zone
Comment
TSXV: KLA
Exploration Work in 2011
• Complementary drilling (10 holes) on Forestel Zone to increase
Resources (1200 meters)
• Drilling Program (6 holes) to investigate between Triangle and
Plug No.4 zones, to confirm mineralized zone intersect in RL-4
and RL-6, and investigate de Triangle Extension (1200 meters)
• 10 DDHs on Parallel Vein (3,000 meters) to investigate at depth
for Resource Calculation
• 10 DDHs on Sixteen Zone (2,500 meters) to investigate lateral
and depth extensions
• 4 DDHs on the Plug No. 5 to verify the eastern limit of the
diorite intrusion with possible vein system
• 50 DDHs to investigate the Plug No. 4, Mylamaque Mine, Vein
No. 6 and Shaft No. 3 with their intrusions and vein systems
18
Key Property - Lamaque
• Second best jurisdiction in the world for mining
investment. Quebec offers the best flow through
incentives in Canada
• The province of Quebec carries the distinction of having
one of the highest Mineral Potential in the world. Val-d’Or
is a world class jurisdiction with large multimillion ounce
producers located adjacent to the Lamaque property; Sigma
and Lamaque Mines (9.5 million ounces)
• Quebec is one of the best jurisdictions in the world for
clear and concise environmental regulations (no surprises)
• Shear hosted gold in classic vein style and “flats” noted on
property
• Existing 43-101 Resource on property (250,000 ounces cut)
TSX-V: KLA
Super Flow Through Shares in Quebec
Flow-Through Shares are a tax-advantaged investment in the Canadian natural
resource sector. Taxpayers in the highest marginal tax rate can reduce their taxable
income and receive refundable or non-refundable tax-credits depending on
their province of residency. Essentially, exploration or mining companies who
issue flow-through shares renounce the deductions that would normally be
available to the company and provide the deduction to the investor.
In order for the investor to benefit from the flow-through shares the
company must spend the flow-through dollars on exploration in Canada. This
includes most non-development stages of mining including ground sampling,
geophysics, drilling, etc. With respect to Flow Throughs versus Super Flow
Throughs: A flow through allows for a 100% deduction against all sources of
income of the investor. A super flow through allows for MORE than a 100%
deduction – in fact it can be as high as 150% (in Quebec). This is due to an
additional 15% federal exploration tax credit and (depending on the issue)
additional provincial credits and deductions
TSXV: KLA
Capital Structure
Shares Issued & Outstanding (KLA: TSX-V)
37 M
Shares Fully Diluted:
52 M
Working Capital:
$3.0 M
Market Cap:
$28 M
Stock Price:
$0.76
TSXV: KLA
21
2011 Growth Drivers
• Increase gold resource closer to million ounce
mark at Lamaque
• Make a new discoveries on the Lamaque
property
• Increase capital markets exposure
TSXV: KLA
22