Kimber Resources proving resources in prolific Sierra Madre Belt
www.kimberresources.com • 604.669.2251
PRESIDENT & CEO
The completion of an updated Preliminary Economic Assessment for its Monterde project in 2011 is a significant step forward for Kimber Resources (TSX: KBR and NYSE Amex:KBX). The project, located in the prolific Sierra Madre Gold-Silver Belt of Northern Mexico, already has three gold-silver mineral deposits defined. The PEA shows the potential for low-cost gold and silver production with an after-tax IRR of 40% and a mine life of over 15 years. CEO Gordon Cummings discusses the next milestones he expects the project to achieve over the next few months.
(Note about updates: Since this interview was conducted in March 2012, Kimber has announced further high-grade drill results from its gold-silver Monterde property in the prolific Sierra Madre belt of Mexico. MTC-151 intercepted 4.2 metres of 6.2 g/t gold and 47 g/t silver while MTC-157 intercepted 4.5 metres of 4.9 g/t gold and 124 g/t silver. Go to www.kimberresources.com or the company’s profile at RIANALYTICS.com to find out more.
Resource Intelligence: How would you best describe Kimber Resources and its flagship project Monterde?
Gordon Cummings: Kimber Resources Inc is a gold-silver exploration and development company focused on Mexico. Kimber’s mission is to build shareholder value through the discovery, definition and development of gold and silver deposits in Mexico, turning them into profitable mining operations while maintaining safe work conditions, protecting the environment and building strong relationships with local communities and stakeholders.
The Monterde property is located in the heart of the prolific Sierra Madre Gold-Silver Belt of Northern Mexico and encompasses more than 29,000 hectares. The belt is one of the most active areas for precious metals exploration and development in the world. Three gold-silver mineral deposits have already been defined at Monterde. The most advanced of these, the Carmen deposit, has been extensively drilled and has undergone detailed geologic modeling.
RI: Can you sum up the milestones Kimber achieved during the last 12 months?
GC: Kimber has achieved a number of key milestones over the last 12 months. The completion of the Updated Preliminary Economic Assessment (PEA) for Monterde in 2011 represented a significant step forward for Kimber and shows the potential for low- cost gold and silver production with an after tax internal rate of return (IRR) of 40% and a mine life of over 15 years. The 2011 PEA did not include any of the 2011 drill program, which includes over 40,000 metres drilled at Carmen alone. Drilling during 2011 has led to a number of exciting discoveries at Carmen including in particular, the identification of further high-grade gold-silver mineralization at depth extending below the existing Mineral Resource.
More recently Kimber announced a new zone of mineralization identified at the north-east of Carmen, the Cocos structure. The discovery of this new structure, which contains high-grade gold-silver mineralization, further supports our view that Monterde has excellent potential to host additional high-grade structures, both near Carmen and in other areas of Monterde.
Kimber has also strengthened the Board of Directors and Management team from a production perspective – Tim Haldane, P.Eng., joined our Board in September 2011 and James Currie, P.Eng., was appointed as COO in January 2012. The extensive potential of the Monterde project coupled with our strong Board and Management team positions us for corporate growth and project advancement.
RI: How do you expect the recent appointment of Kimber’s COO James (Jim) Currie to impact the company in terms of shareholder value?
GC: This appointment demonstrates the Company’s commitment to bringing Monterde into production. Jim has a track record of success in building mines, strengthening operational teams and achieving successful production over time with multiple projects. In addition, he has specific experience in Mexico in the gold sector and has extensive experience in open-pit and underground mining. I believe that the appointment of Jim Currie as COO of Kimber has strengthened the company and is very positive for building shareholder value moving forward.
RI: What objectives does Kimber have for 2012?
GC: Kimber is working towards completion of an Updated Mineral Resource Estimate for the Carmen deposit at Monterde in the second quarter of 2012. The Company then plans to complete a pre-feasibility study at Monterde during the second half of 2012. As part of this study, numerous investigations are already underway, including metallurgy, water, power, geotechnical and environmental. In the meantime, drilling will continue during 2012 with the objective of expanding high-grade gold-silver mineral resources at Monterde.
RI: Your PEA outlines the potential for both an open-pit and underground mine. What advantages does that potential provide Kimber and its investors once production is achieved?
GC: The topography and nature of the mineralization make the combination of open pit and underground mining the best way to maximize the Net Present Value of Monterde. Open-pit mining provides early access to ore to feed the mill while the deeper (and higher grade) underground resource is being developed. Once the underground is in full operation, the open-pit ore will augment ore from the underground operation as necessary. A combination of open-pit and underground production has been carried out with great success in other projects in the Sierra Madre such as Pinos Altos (Agnico Eagle), Palmarejo (Coeur d’Alene) and Ocampo (Aurico).
RI: Where do you see Kimber over the next three to five years?
GC: We aim to do the necessary drilling and studies to bring the Monterde Project to a production decision by the end of 2013 and into production during 2015. This will provide the platform to build Kimber into a multi-mine company through mergers and acquisitions.