Update Update 2011 Se pte mbe r Inve stor Inve stor Disc laime - - PDF document

Inve stor Update Inve stor Update

Se pte mbe r 2011

Disc laime r & Compe te nt Pe r son’s State me nt

Disc laime r and forward- looking state me nts

 Ce rta in sta te me nts c o nta ine d in this pre se ntatio n, inc luding info rmatio n as to the future fina nc ial o r o pe ra ting pe rfo rma nc e o f Orio n Go ld NL a nd its pro je c ts, a re fo rwa rd-lo o king sta te me nts. Suc h fo rwa rd-lo o king sta te me nts:

• are ne c e ssarily base d upo n a numbe r o f e stimate s and assumptio ns that, while c o nside re d re aso nable by Orio n Go ld NL

, are are ne c e ssarily base d upo n a numbe r o f e stimate s and assumptio ns that, while c o nside re d re aso nable by Orio n Go ld NL , are inhe re ntly subje c t to sig nific ant te c hnic al, busine ss, e c o no mic , c o mpe titive , po litic al and so c ial unc e rtaintie s and c o nting e nc ie s;

• invo lve kno wn and unkno wn risks and unc e rtaintie s that c o uld c ause ac tual e ve nts o r re sults to diffe r mate rially fro m e stimate d
• r antic ipate d e ve nts o r re sults re fle c te d in suc h fo rward-lo o king state me nts; and
• may inc lu e am

re ing targ e ts e sti ate s and as u ptio ns in re sp c t o f me tal pro duc tio n nd

• may inc lude , amo ng o the r thing s, state me nts re g arding targ e ts, e stimate s and assumptio ns in re spe c t o f me tal pro duc tio n and

pric e s, o pe rating c o sts and re sults, c apital e xpe nditure s, mine ral re se rve s and mine ral re so urc e s and antic ipate d g rade s and re c o ve ry rate s, and are o r may be base d o n assumptio ns and e stimate s re late d to future te c hnic al, e c o no mic , marke t, po litic al, so c ial and o the r c o nditio ns.

 Orio n Go ld NL disc la ims a ny inte nt o r o blig a tio n to upda te public ly a ny fo rwa rd-lo o king sta te me nts whe the r a s a re sult o f ne w info rmatio n future e ve nts o r re sults o r o the rwise info rmatio n, future e ve nts o r re sults o r o the rwise .  T he wo rds 'be lie ve ', 'e xpe c t', 'a ntic ipate ', 'indic a te ', 'c o nte mplate ', 'ta rg e t', 'pla n', 'inte nds', 'c o ntinue ', 'budg e t', 'e stimate ', 'ma y', 'will', 'sc he dule ' a nd simila r e xpre ssio ns ide ntify fo rwa rd-lo o king sta te me nts.  All fo rwa rd-lo o king sta te me nts ma de in this pre se nta tio n a re qualifie d by the fo re g o ing c autio nary state me nts. I nve sto rs are c a utio ne d tha t fo rwa rd-lo o kin sta te me nts a re no t uarante e s o f future e rfo rma nc e a nd a c c o rdin l inve sto rs a re g g g y c a utio ne d no t to put undue re lia nc e o n fo rwa rd-lo o king sta te me nts due to the inhe re nt unc e rta inty the re in.

Compe te nt Pe r sons State me nt

 T he info rma tio n re la ting to the Mine ra l Re so urc e is ba se d o n a nd a c c urate ly re fle c ts g ra de e stima tio n a nd mo de lling unde rta ke n by Mr P. Ba ll B Sc MAusI MM fo r Orio n Go ld NL in his c a pa c ity a s Co nsulta nt Ge o lo g ist to Orio n Go ld. T he Mine ra l Re so urc e info rma tio n ha s unde rg o ne a udit by e xte rnal c o ns l l su i e in re la tio n to the style Re so urc e info rma tio n ha s unde rg o ne a udit by e xte rnal c o nsulta nts. Mr Ba ll ha s the suffic ie nt e xpe rie nc e in re la tio n to the style

• f mine ralisatio n unde r c o nside ratio n to qualify as a Co mpe te nt Pe rso n a s de fine d in 2004 e ditio n o f the “Austra lia n Co de fo r

Re po rting o f e xplo ratio n re sults, mine ra l re so urc e s a nd o re re se rve s”. Mr Ba ll c o nse nts to the inc lusio n o f the mine ra l re so urc e info rmatio n in the fo rm and c o nte xt in whic h it appe ars.  Othe r e xplo ratio n info rmatio n in this re po rt has be e n c o mpile d and asse sse d unde r the supe rvisio n o f Dr Ja me s Ande rso n, Orio n Go ld NL ’ s Ge ne ra l Ma na g e r – E xplo ratio n fro m histo ric a l re c o rds a nd fie ld inve stig a tio n Dr Ande rso n is a me mbe r o f Orio n Go ld NL s Ge ne ra l Ma na g e r – E xplo ratio n, fro m histo ric a l re c o rds a nd fie ld inve stig a tio n. Dr Ande rso n is a me mbe r o f the AusI MM (CP) a nd ha s e xte nsive e xpe rie nc e in the ide ntific a tio n o f g o ld mine ra lisa tio n o f this style . Dr Ande rso n c o nse nts to the public re le a se o f the info rma tio n in the c o nte xt c o nta ine d within this re le a se .

Pr

• je c t L
• c ality

Intr

• duc tion



F

• c use d on Walhalla Gold Pr
• je c t - a goldfie ld with signific ant high gr

ade histor ic al pr

• duc tion of ove r

4 million ounc e s G l d t f hi t i l d it bl d t i ht f d i i th d



Ge ology and ge ome tr y of histor ic al de posits e nable d str aight for war d mining me thods



Highly pr

• spe c tive te ne me nt pac kage :



c ove r ing 75 kilome tr e s of str ike le ngth c ove r ing 75 kilome tr e s of str ike le ngth



with nume rous advanc e d drill targe ts



Str uc tur al r e vie w of Cohe n’s Re e f de posit following 6,500 me tr e diamond dr ill pr

• gr

am in 2010 pr

• vide s ne w mode l and insights into c ontr
• ls on mine r

alisation l d in 2010 pr

• vide s ne w mode l and insights into c ontr
• ls on mine r

alisation, loc ally and r e gionally



Re vie w of r e gional te ne me nt holdings highlights nume r

• us dr

ill tar ge ts



2,400 me tr e diamond dr illing pr

• gr

am c omme nc e d this we e k dr illing highly r anke d tar ge ts at Ne w Dawn, L

• ngfe llow’s and Happy Go L

uc ky



T ar ge ts de r ive d fr

• m ne w str

uc tur al mode l also to be dr ill te ste d: 

Cohe n’s – L

• mond’s



Cohe n’s – E mpre ss



Shor tfe llow’s (CMI)



Shor tfe llow s (CMI)

Walhalla Histor y



T he Cohe n’s r e e f syste m (mine d late 1800s to e ar ly 1900s) has Vic tor ia’s highe st pr

• duc tion

fr

• m a single shoot at ~1.5 million ounc e s at a

he ad gr ade ar

• und 40 Au g/ t



Afte r appr

• ximate ly 40 ye ar

s of mining many basic fe atur e s of the syste m r e maine d unknown basic fe atur e s of the syste m r e maine d unknown

• r

poor ly de fine d



2010 dr illing and inte r pr e tation has r e sulte d in br e akthr

• ugh unde r

standing of str uc tur al c ontr

• ls
• n mine r

alisation at Cohe n’s and the ne wly inte r pr e te d r e gional Cohe n’s tr e nd

T e ne me nt Holdings



Appr

• x 730 squar

e kilome tr e s



Gold pr

• duc tion in the r

e gion of Gold pr

• duc tion in the r

e gion of

• ve r

4 million ounc e s



420 histor ic wor kings - indic ate g the loc ation of mine r alisation and outline the mine r alise d ‘tr e nds’



Minimal mode r n day e xplor ation



Re c e nt se le c tive gr

• und

ac quisitions following r e gional ge ologic al and e xplor ation r e vie w

Pr ior ity E xplor ation Ar e as - Walhalla

 Ne w str

uc tur al inte r pr e tation - high pr

• spe c tivity ar

e as at Walhalla and r e gionally

 Cohe n’s str

uc tur al mode l de fine s patte r n of de fine s patte r n of mine r alisation r e gionally

 Impor

tant c ontr

• ls on

mine r alisation ide ntifie d at inte r se c tions of N- S r e gional tr e nds and c r

• ssc utting str

uc tur e s c r

• ssc utting str

uc tur e s

 A numbe r

• f pr

ior ity tar ge ts to te st 

Ne w Da wn



L

• ngfe llow’s



Happy Go L uc ky



Cohe n’s – L

• mond’s



Cohe n s L

• mond s



Cohe n’s – E mpr e ss



Shor tfe llow’s (CMI)

Cohe n’s Re e f - Ne w Str uc tur al Unde r standing

N S

SPL AY F AUL T L

• mond

Zone

m

Ste e ply plunging shoot at c onjunc tion f f lt

1,000 m

CROSSCUT T ING

• f faults

CROSSCUT T ING T E RMINAT ING ST RUCT URE

Cohe n’s Re e f - Ne w Str uc tur al Unde r standing

N S



Re -asse ss Cohe n’s Re e f, with ne w de taile d 3D str uc tur al mode l in

SPL AY F AUL T L

• mond

Zone

str uc tur al mode l in pr

• gr

e ss tar ge ting 

Bulk shallow re sourc e s

000 m



High grade Cohe n’s style shoots

Steeply plung ing shoot a t c onjunc tion

• f fa ults

1,



We alth of infor mation available for ne w mode lling:

CROSSCUT T ING T ERMINAT ING ST RUCT URE

g 

Histor ic al L e ve l Plans



Grade and width data r e fine data – r e fine struc tural mode l



Grade and width c ontours – de fine mine ralise d struc ture s

Cohe n’s Re e f - Ne w Str uc tur al Unde r standing

N S

 Oppor

tunitie s ar ising fr

• m ne w

str uc tur al mode l

SPL AY F AUL T L

• mond

Zone

 E

xte nsions to “Stoc kwor k mine r alisation”

000 m

mine r alisation pr e viously ide ntifie d by Nor mandy Pose idon

Steeply plung ing shoot a t c onjunc tion

• f fa ults

1,

Pose idon inte r pr e te d as par t

• f the L
• mond

Zone

CROSSCUT T ING T ERMINAT ING ST RUCT URE

 L

• mond’s Zone –

r e asse ssme nt within ne w str uc tur al str uc tur al fr ame wor k

 E

mpr e ss shoot r e mains ope n to r e mains ope n to the nor th

Cohe n’s Pr

• je c t - L
• mond’s Zone

 Pr

e vious pr

• duc tion on

Cohe n’s line of r e e f sugge sts an e xc e lle nt sugge sts an e xc e lle nt e xplor ation

• ppor

tunity with

• utstanding tar

ge ts

 Re c e nt str

uc tur al r e inte r pr e tations suppor ts a tar ge t zone suppor ts a tar ge t zone at L

• mond’s

 F

ur the r str uc tur al inte r pr e tation sugge sts tar ge ts at de pth and in ne ar by r e plic ate str uc tur e s str uc tur e s

 F

ur the r inte r pr e tation and r e mode lling g unde r way

L

• mond’s Str

uc tur e s

 Ne w str

uc tur al study shows mine r alisation pote ntially c ontr

• lle d

L

• mond Zone -

pote ntially c ontr

• lle d

by e ast dipping str uc tur e s linking fr

• m

main fault to s la

dr ill to the we st

p y faults

 Possible signific ant

r e so r c e pgr ade b r e sour c e upgr ade by dr illing to the we st

 F

ur the r inte r pr e tation F ur the r inte r pr e tation and r e mode lling unde r way

Pr ior ity E xplor ation Ar e as - Walhalla

 Ne w str

uc tur al inte r pr e tation - high pr

• spe c tivity ar

e as at Walhalla and r e gionally

 Cohe n’s str

uc tur al mode l de fine s patte r n of de fine s patte r n of mine r alisation r e gionally

 Impor

tant c ontr

• ls on

mine r alisation ide ntifie d at inte r se c tions of N- S r e gional tr e nds and c r

• ssc utting str

uc tur e s c r

• ssc utting str

uc tur e s

 A numbe r

• f pr

ior ity tar ge ts to te st 

Ne w Da wn



L

• ngfe llow’s



Happy Go L uc ky



Cohe n’s – L

• mond’s



Cohe n s L

• mond s



Cohe n’s – E mpr e ss



Shor tfe llow’s (CMI)

L

• ngfe llow’s Pr

ior ity T ar ge t

 Signific ant histor

ic high gr ade pr

• duc tion of

10,044 ounc e s at 28.4 Au g/ t

 Inte r

se c tion

B

 Inte r

se c tion be twe e n nor th south r e gional tr e nd and c r

• ss

B

str uc tur e

 Shallow

ac c e ssible

Unde rground Sampling (1)

200m @ 4.95 Au g/ t

T a rg e t Zone s

ac c e ssible pr ior ity tar ge t

75m @ 4.12 Au g/ t

T a rg e t Zone s A

(1) Ave r age d gold assays fr

• m 10kg gr

ab sample s c olle c te d at 5 me tr e inte r vals along str ike in the We ste r n and L

• we r

We ste r n tunne ls – L

• ngfe llow’s Pr
• spe c t, Walhalla by Intr

e pid (1998).

L

• ngfe llow’s Pr

ior ity T ar ge t

Histor ic al Pr

• duc tion:

Histor ic al Pr

• duc tion:

10,968 tonne s at 28.4 Au g/ t 10,044 gold ounc e s 10,968 tonne s at 28.4 Au g/ t 10,044 gold ounc e s

 High gr

ade past pr

• duc tion

 Shallow ac c e ssible pr

ior ity tar ge t

Pr ior ity E xplor ation Ar e as - Walhalla

 Ne w str

uc tur al inte r pr e tation - high pr

• spe c tivity ar

e as at Walhalla and r e gionally

 Cohe n’s str

uc tur al mode l de fine s patte r n of de fine s patte r n of mine r alisation r e gionally

 Impor

tant c ontr

• ls on

mine r alisation ide ntifie d at inte r se c tions of N- S r e gional tr e nds and c r

• ssc utting str

uc tur e s c r

• ssc utting str

uc tur e s

 A numbe r

• f pr

ior ity tar ge ts to te st 

Ne w Da wn



L

• ngfe llow’s



Happy Go L uc ky



Cohe n’s – L

• mond’s



Cohe n s L

• mond s



Cohe n’s – E mpr e ss



Shor tfe llow’s (CMI)

Happy Go L uc ky T ar ge t

INCREASING MINERALISATION AND GRADE TRENDS



Histor ic ally, 90,000 ounc e s of gold r e c ove re d



Drilling inte rse c te d pyrite - gold syste m assoc iate d with major struc ture



L arge ly une xploite d by pre vious mining



Multiple re e f syste m, ope n in most dire c tions assoc iate d with major struc ture



Ne ar

• sur

fac e position



Mine ralisation tre nds inc re asing to south we st



T arge ts ide ntifie d for follow- up drilling

Re gional E xplor ation

 Ne w str

uc tur al inte r pr e tation:  Combine d str

uc tur al unde r standing at Cohe n’s and de ve lopme nt of r e gional fr ame wor k has highlighte d ar e as in the r e gional te ne me nt pac kage inc luding Ne w Dawn - T

• ombon

Vic tor ’s Quar tz: histor ic ally 33k oz at 15.3 Au g/ t T

• ombon:

hi t i ll

inc luding Ne w Dawn - T

• ombon,

and Vic tor ’s Quar tz ar e as

 Upgr

ade s pr

• spe c tivity of r

e gional te ne me nts

histor ic a lly 61k oz at 25.6 Au g/ t

 Inc r

e ase d foc us on r e gional tar ge ts:  Walhalla / Woods Point Goldfie ld is

Walhalla / Woods Point Goldfie ld is Vic tor ia's sixth lar ge st histor ic al gold pr

• duc ing r

e gion with ove r 400 known r e e f and alluvial gold de posits de posits

 Ave r

age gr ade 25 Au g/ t c ompar e d to Vic tor ian state ave r age 15 Au g/ t

 Pr

• duc tion in the r

e gion of ove r 4

 Pr

• duc tion in the r

e gion of ove r 4 million ounc e s of gold

Re gional Histor ic al Pr

• duc tion

 Major

+ 50koz gold pr

• duc e r

s

• n c e ntr

al Cohe n’s L ine

 7 of 9 + 50k oz pr

• duc e r

s 7 of 9 50k oz pr

• duc e r

s

• n this tr

e nd

 Gold pr

• duc tion fr
• m

mine s on this tr e nd totals 4 million ounc e s

 Pr

• duc tion c le ar

ly de fine s the

Vic tor ’s Quar tz

most pr

• spe c tive tr

e nd – te nur e is c ontr

• lle d by Or

ion Gold

Ne w Dawn - T

• ombon

 Cluste r

s of de posits ar e assoc iate d with c r

• ss str

uc tur e s

Cohe n’s L ine

 Support for

ne w tar ge ts at Ne w Dawn - T

• ombon and Vic tor

’s Quar tz

Cohen’s Reef WALHALLA

Re gional E xplor ation

 Ne w str

uc tur al inte r pr e tation:  Combine d str

uc tur al unde r standing at Cohe n’s and de ve lopme nt of r e gional fr ame wor k has highlighte d ar e as in the r e gional te ne me nt pac kage inc luding Ne w Dawn – T

• ombon

inc luding Ne w Dawn T

• ombon

and Vic tor ’s Quar tz ar e as

 Upgr

ade s pr

• spe c tivity of r

e gional te ne me nts

 Inc r

e ase d foc us on r e gional tar ge ts:  Walhalla / Woods Point Goldfie ld is

Walhalla / Woods Point Goldfie ld is Vic tor ia's sixth lar ge st histor ic al gold pr

• duc ing r

e gion with ove r 400 known r e e f and alluvial gold de posits de posits

 Ave r

age gr ade 25 Au g/ t c ompar e d to Vic tor ian state ave r age 15 Au g/ t

 Pr

• duc tion in the r

e gion of ove r 4

 Pr

• duc tion in the r

e gion of ove r 4 million ounc e s of gold

Ne w Dawn – T

• ombon (ORN 85% )

 L

• c ate d on the r

e c e ntly r e inte r pr e te d Cohe n’s tr e nd

 Histor

ic wor kings ar e inte r pr e te d to be situate d in the same str atigr aphy in the same str atigr aphy and str uc tur al se tting as the main Cohe n’s Re e f

 Ar

e a has be e n subje c t to ve r y little mode r n e xplor ation and almost no dr illing.

Sub paralle l re e fs and inte rc onne c ting

no dr illing.

 Dr

ill hole s planne d ar e de signe d to te st : 

th ti

and inte rc onne c ting struc ture s



a c ross the prospe c tive stra tig ra phy a nd te st for a se r ie s of par alle l r e e fs



for pote ntially southe rly pl nging inte rse c tion plunging inte rse c tion lode s (‘shoots’) 3D Se c tional Vie w of Re e fs and Dr ill Hole s

T ubal Cain – E ur e ka De posits

• Be lt of dyke - hoste d

ladde r r e e f style de posits de posits

• Histor

ic al pr

• duc tion:
• T

ubal Cain 30,000

• unc e s of gold at 1
• unc e s of gold at 1
• unc e pe r

tonne

• E

ure ka 3,000 ounc e s

• f gold

t 16 A g/ t

• f gold at 16 Au g/ t
• Re sour

c e s pr e viously

• utline d at T

ubal Cain and E ur e ka

T ubal Cain

 Comple te d e valuation of

de ve lopme nt options base d on a r e vie w of the r e sour c e s and mining e c onomic s at T ubal mining e c onomic s at T ubal Cain.

 P t nti l

l m nt r r a supp a y sour c e should othe r gold r e sour c e s unde r pin futur e mining ope r ations within the l Company’s Walhalla Gold Pr

• je c t.

Walhalla – A Stage d E xplor ation Appr

• ac h



Pr

• gr

e ss:

• Str

uc tur al r e vie w of Cohe n’s Re e f de posit following 6,500 me tr e diamond dr ill pr

• gr

am in 2010 pr

• vide s ne w mode l and

insights into c ontrols on mine ralisation, loc ally and r e gionally

• Ne wly inte rpre te d re gional Cohe n’s tre nd

give s he ighte ne d impor tanc e to r e gional drill ta rg e ts

• Major

ne w tar ge t zone s ide ntifie d at Ne w Dawn – T

• ombon, Cohe n’s, L
• ngfe llow’s

and Happy Go L uc ky for follow- up dr ill te sting in 2011 g

• Comme nc e d 2,400 me tr

e diamond dr illing pr

• gr

am at Ne w Dawn, L

• ng fe llow’s and Happy Go L

uc ky g ppy y

Drilling rig at Walhalla

Walhalla – A Stage d E xplor ation Appr

• ac h



Shor t T e r m E xplor ation Aims: 

Dr ill te st a numbe r

• f nor

th – south mine r alise d tr e nds at inte r se c tions with mine r alise d tr e nds at inte r se c tions with major c r

• ssc utting str

uc tur e s



T e st r e gional dr ill tar ge ts in pr

• spe c tive ar

e as pr

• spe c tive ar

e as



Re - asse ss Cohe n’s Re e f, with ne w de taile d 3D str uc tur al mode l in de taile d 3D str uc tur al mode l in pr

• gr

e ss, tar ge ting: 

Bulk shallow r e sour c e s



High gr ade Cohe n’s styl shoots



High gr ade Cohe n s style shoots



Aims: 

Ste ad r

• wth via disc ove r

y g y



E stablish solid r e sour c e base



F e asibility studie s le ading to y g pr

• duc tion

Drilling rig at Walhalla

Cor por ate

Capital Str uc tur e

765 million fully paid or dinar y shar e s

Boar d:

• De nis Wadde ll (E

xe c utive Chair man)

765 million fully paid or dinar y shar e s 85 million options e xe r c isable $0.01 15 million options e xe r c isable at $0.02

• Gr

ae me Sloan (Non- E xe c utive Dir e c tor )

• Sandy Halle r

(Non- E xe c utive Dir e c tor )

2 million options e xe r c isable at $0.04 $6 million c onve r tible note s matur ing August 2013 (1)

E xe c utive s:

• Mar

tin Bouwme e ste r (Ge ne r al Manage r

• Cor

por ate )

1.75 billion fully paid ordinary share s on a fully dilute d basis (2) Share pric e $0.016 (3)

• Dr

Jame s Ande r son (Ge ne r al Manage r

• E

xplor ation)

• Chr

is Robe r ts (Consulting Ge ologist)

• Se an Cahoon (Chie f F

inanc ial Offic e r ) Shar e holde r Infor mation Numbe r

• f

Shar e s % of T

• tal

Shar e s

(1) T

he numb e r o f share s that will be issue d upo n c o nve rsio n o f c o nve rtible no te s ma y vary de pe nding upo n the issue pric e o f any c a pital raising s o f the Co mpa ny be fo re maturity. Sho uld the Co mpa ny issue sha re s fo r a pric e o f le ss tha n 1 c e nt pe r sha re be fo re maturity, the no te s c a n be c o nve rte d at the lo we st pric e share s are issue d at up until maturity. I f the Co m a n do e s no t issue Sha re s at le ss tha n

• Se an Cahoon (Chie f F

inanc ial Offic e r )

Substantial Share holde r:

Silja I nve stme nt L td 204 millio n 27%

44 illi 58%

p y p y 1 c e nt b e fo re maturity, the c o nve rsio n pric e will be 1 c e nt pe r share . F

• r furthe r

de tail re fe r to De c e mb e r 2010 I nte rim F inanc ial Re po rt.

(2) Base d o n a c o nve rsio n pric e o f 1 c e nt pe r share . (3) Share pric e at 29 Aug ust 2011.

T

• p 20:

440 million 58%

Cash on hand July 2011 – $1.2 million

Que stions Que stions