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Investor Presentation – December 2012
Mount Magnet South Opportunity
• Target Au production at plus 50,000ozpa in 2013 in a strong gold market
• Substantial infrastructure in place at Kirkalocka Gold Project
• Debt financier mandated for $20m debt, $3m cost overrun and hedging facilities
• Current NPV of $75 million and IRR of 81%, revisions pending
• Competitive total production (C3) costs provide a healthy margin
• Emerging gold and copper Jumbulyer Projects provide potential:
o High grade, near surface gold to process at Kirkalocka’s processing plant
11m @ 5.3 g/t Au from 3m, 20m @ 3 g/t Au from 41m
o Evolving copper story
19m @ 1.3% Cu, 0.46 g/t Au and 4.9 g/t Ag
8m @ 1.5% Cu from surface
2012 Milestones
Completed
April 2012 - Feasibility Study
April 2012 - Kirkalocka Gold Project Ore Reserve 250,000 Oz
September 2012 - Indicated & Inferred Mineral Resource 506,000 Oz
October 2012 - Mandated financier
November 2012 - High grade gold identified at Jumbulyer Project
November 2012 - Copper anomaly identified at Jumbulyer Project
Pending in Q4 2012 to Q1 2013
Detailed engineering and design
Approvals
Improved Ore Reserve and financials
Experienced Board Includes
Reg Gillard
Non-Executive Chairman
• 30 years in corporate finance, management and governance
• Non-Executive Chairman of Perseus Mining Limited - market cap has grown from A$3.5M to A$1.0B in 7 years
• Former Chairman of Moto Goldmines Limited prior to take over by Randgold Resources Limited and Anglogold Ashanti for C$546M
• Former Chairman of Mt. Edon Gold Mines Pty Ltd prior to its takeover by Camelot Resources NL and Canada’s Teck Corporation for A$200M
Mark Pitt
Non-Executive Director
• 40 years in mine management, planning, permitting, financing and feasibility studies
• Former COO/Director for Dioro Exploration prior to takeover by Avoca Resources Ltd
• Former General Manager of Operations for Saracen Mineral Holdings (ASX gold producer with 100koz production per annum)
Patrick Flint
Non-Executive Director
• 17 years in project acquisitions, joint venture negotiations and management
• Former CFO for Moto Goldmines Limited involved in the acquisition and exploration of the Moto Gold deposits in the DRC
• Instrumental in bringing Tiger Resources Ltd’s DRC copper projects to production (current mkt. cap. A$181M)
Colin Chenu
Non-Executive Director
• 24 years as a corporate and contracts lawyer
• Partner in high profile Perth litigation practice of Bennett & Co.
Susmit Shah Company Secretary
• 25 years as a chartered accountant
• Current Director of Burey Gold and Company Secretary of several ASX/TSX cos
Experienced Project Team
Name Position Experience
Graham Howard General Manager - Project 26 yrs – underground & open pit mining
including Newcrest (Telfer and Boddington)
Craig Power OHS Corporate Consultant
(Mechanical Engineer)
35 yrs - underground & open pit mining
including BHP and Sandfire Resources
Dale Harrison Engineering and Metallurgy
Manager
22 yrs – mining industry including Wave
Engineering, Newcrest and Newmont
Roselt Crosser Mining Engineer 25 yrs – mining industry including KCGM
(The Super Pit) and Newcrest
Anthony Keers Mining Engineer
15 yrs – mining industry including Sons of
Gwalia and Gemcom
Ceirin Byrne Geotechnical Engineer 12 yrs - mining industry
Marcus Hope Geology Manager 15 yrs - underground & open pit mining
including Newcrest (Telfer and Boddington)
Amy Barker Environment & Land Access
Manager
10 yrs - mining industry including Fortescue,
ALCOA and Millennium
Tenement Status
Project # Tenements Area (km2) Status
Jumbulyer 14 20 Current
17 109 Pending
Paynes Find 2 30 Current
0 0 Pending
Kirkalocka 13 699 Current
0 0 Pending
Total 46 858
Kirkalocka
Jumbulyer
Paynes Find
276,000ozs
413,000ozs
506,000ozs
122,000ozs
305,000ozs
365,000ozs
0
100000
200000
300000
400000
500000
600000
2010
Indicated Category
+23% increase
+20% increase
Total Mineral Resource Estimate
2011 2012 2010 2011 2012
Resource Highlights
Significant increase in the Company’s total Mineral Resource Estimate year on year
Category Tonnes (Mt) Grade (g/t Au) Gold (ounces)
Indicated 9.7 1.2 365,000
Inferred 4.1 1.1 141,000
TOTAL 13.8 1.1 506,000
April 2012 FS Financial Parameters
Gold price A$1,500
(base case)
A$1,650 (base case
+10%)
A$1,350
(base case -
10%)
A$1,600
(spot price)
Net cash flow
(before tax) $66 million $100 million $31 million $88 million
NPV $48 million $75 million $19 million $66 million
IRR 55% 81% 28% 72%
Equipment Capital + Working Capital + Pre-strip of Open Pit +Cost Overrun Facility = Total $29M
A$1,650 (base case +10%)
$100 million
$75 million
81%
April 2012 Feasibility Parameters
Parameter FS Result
Ore processed - tonnes @ g/t Au1 7M tonnes @ 1.1 g/t Au
Strip Ratio 3.5 :1 Waste:Ore ratio
Average Annual throughput – oxide / primary 2.1 Mtpa / 1.6 Mtpa
Process Recovery – oxide / primary 95% / 89%
Initial capital expenditure $21.5 million
Mining Costs $19.43/t ore
Processing Costs $12.36/t ore
Administration Costs $2.29/t ore
Life of Mine (LOM) 4.75 years
Average LOM Cash Operating Cost/Oz Au (C1)2 $1,073/Oz Au
Notes: 1 The difference between the Ore Reserve and estimated processed tonnes and grade is that it is anticipated as part of the Life of Mine (LOM) plan that low grade
material will be stockpiled. The low grade material may be processed towards the end of the LOM. 2 C1 definition includes operating and administration costs, and excludes royalties.
Implementation Schedule and Catalysts
Late Q3
•Mandate financier
Decision Gate
•Robust project economics
•Favourable gold price
Q4 Detailed Project Design
•Detailed engineering design and costing
•Finance Due Diligence
•Southern infill drilling & confirmatory testwork
•Regulatory approvals
•Ore Reserve
Decision Gate
•Early Q1
•Board decision on project approval
•Regulatory approvals
•Debt finance
•Robust project economics
•Favourable gold price
Q1/Q2 Project Execution
•Long lead items
•Core Staff Recruitment
•Project Construction
•Dovetail Jumbulyer Project
Mandated Leading Global Investment Bank
Low Capital Expenditure Requirements
Top Global Investment Bank mandated to provide:
• Loan facility up to A$20,000,000
• Cost overrun facility $A3,000,000
• AUD gold hedging facility
o Subject to standard conditions for financing including:
Due diligence
Facility documentation
Satisfactory resolution of legal claim against company
11
Major Kirkalocka Project Approvals
Low Licensing and Permitting Risk
Previously Operating Mine
• Equigold processed gold at Kirkalocka until August of 2008
Approved Licences and Permits
• Project Management Plan Treatment Plant Construction
• Vegetation Clearing Permit
• Works Approval for Uplift of Tailings Storage Facility
• Prescribed Premise Licence
Pending (submitted) Licenses and Permits
• Project Management Plan to Operate
• Mining Proposal and Mine Closure Plan
• Groundwater Abstraction License – Pit Dewatering
13
Revised Ore Reserve – Q4 2012/Q1 2013
• Geotechnical diamond drilling campaign completed in October 2012.
• Resource infill RC drilling program completed in November 2012
• New resource and design parameters to be included in revised Ore Reserve
and financials expected by Q1 2013
Current Ore Reserve
Proposed Mine Design
NORTH
SOUTH
Stage 2
Stage 4
Stage 1
Stage 3
Site Infrastructure
Waste Land Form
Tailings Storage Facility
Camp
Treatment Plant
Air strip
North
Great Northern Highway
Pit
1 km
Detailed Engineering
1
2
3
1. Secondary crusher
2. Mill de-bottlenecking
3. Tertiary crusher location
Jumbulyer Project
Background
• Emerging project with significant gold and copper potential.
• 15km southwest of the town of Mount Magnet
• Under explored tenements largely held by individual prospectors
• Target small volume high grade, near surface feed to dovetail with KGP
Exploration strategy
Desktop research identified substantial historical information not previously
utilised in target generation
Systematic mapping and sampling identified a series of drill targets as the
basis of the successful November 2012 Stage 1 drill campaign.
Jumbulyer Drill Program 2012
NORTH
• Stage 1 November drilling targeted
mineralisation potential at Daveys, Foothills
and Pantomine Prospects
• Daveys program:
o 11m @ 5.3 g/t Au from 3m
o 19m @ 1.4 g/t Au from 9m, including;
• 6m @ 3.4 g/t Au from 12m
o 12m @ 1.8 g/t Au from surface, including;
• 3m @2.5 g/t Au from surface and
• 4m @ 2.8 g/t Au from 7m
• Foothills program:
o 20m @ 3 g/t Au from 41m
o 10m @ 1.1 g/t Au from 12m
Daveys Prospect
NORTH
Foothills Prospect
16m@6.67 g/t Au including
2m@28.7 g/t Au 10m@3.38 g/t Au
7m@2.44 g/t Au
Copper Potential in Foothills Prospect
• No previous Cu exploration
• Field mapping and sampling define
650m x 500m copper anomaly
within the Foothills Prospect
• Resampling and analysis of
historical drill hole yields:
o From surface 8m @ 1.5% Cu
(above a 0.1% Cu cut-off)
o Including 4m @ 2.8 % Cu
(above a 0.5% Cu Cut-off)
• November 2012 RC drill hole
returned:
o 19m @ 1.3% Cu (above a 0.1%
Cu cut-off), 0.46 g/t Au and 4.9
g/t Ag
Capital Structure
22
Ordinary shares on issue 493,020,816
Listed Options
Excercisable at $0.07 expiring 31 August 2014 42,479,275
Unlisted Options
Exercisable at $0.06 expiring 31 December 2012 1,500,000
Exercisable at $0.09 expiring 31 October 2013 6,000,000
Exercisable at $0.05 expiring 31 August 2014 10,000,000
Performance Shares 19,899,998
Convertible Notes
$1.0M convertible at $0.10 10,000,000
$0.5M convertible at $0.045 11,111,111
Fully Diluted Shares 594,011,200
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
4,000,000
4,500,000
0
0.01
0.02
0.03
0.04
0.05
0.06
0.07
0.08
0.09
0.1
Nov-11 Feb-12 May-12 Aug-12 Nov-12
Vo
lum
e
Sh
are
Pri
ce
(A
$)
Disclaimer and Forward Looking Statements
23
This presentation has been prepared by Mount Magnet South NL (“MMS” or the “Company”). This document contains background information about MMS
current at the date of this presentation. The presentation is in summary form and does not purport to be all inclusive or complete. Recipients should
conduct their own investigations and perform their own analysis in order to satisfy themselves as to the accuracy and completeness of the information,
statements and opinions contained in this presentation.
This presentation is for information purposes only. Neither this presentation nor the information contained in it constitutes an offer, invitation, solicitation or
recommendation in relation to the purchase or sale of shares in any jurisdiction.
This presentation may not be distributed in any jurisdiction except in accordance with the legal requirements applicable in such jurisdiction. Recipients
should inform themselves of the restrictions that apply in their own jurisdiction. A failure to do so may result in a violation of securities laws in such
jurisdiction.
This presentation does not constitutes investment advice and has been prepared without taking into account the recipient’s investment objectives,
financial circumstances or particular needs and the opinions and recommendations in this presentation are not intended to represent recommendations of
particular investments to particular persons. Recipients should seek professional advice when deciding if an investment is appropriate. All securities
transactions involve risks, which include (among others) the risk of adverse or unanticipated market, financial or political developments.
To the fullest extent permitted by law, MMS, its officers, employees, agents and advisers do not make any representation or warranty, express or implied,
as to the currency, accuracy, reliability or completeness of any information, statements, opinions, estimates, forecasts or other representations contained
in this presentation. No responsibility for any errors or omissions from this presentation arising out of negligence or otherwise is accepted.
Certain statements made during or in connection with this presentation contain or comprise certain forward-looking statements regarding MMS’s Mineral
Resources and Reserves, exploration operations, project development operations, production rates, life of mine, projected cash flow, capital expenditure,
operating costs and other economic performance and financial condition as well as general market outlook. Although MMS believes that the expectations
reflected in such forward-looking statements are reasonable, such expectations are only predictions and are subject to inherent risks and uncertainties
which could cause actual values, results, performance or achievements to differ materially from those expressed, implied or projected in any forward
looking statements and no assurance can be given that such expectations will prove to have been correct. Accordingly, results could differ materially from
those set out in the forward-looking statements as a result of, among other factors, changes in economic and market conditions, delays or changes in
project development, success of business and operating initiatives, changes in the regulatory environment and other government actions, fluctuations in
metals prices and exchange rates and business and operational risk management. Except for statutory liability which cannot be excluded, each of MMS,
its officers, employees and advisors expressly disclaim any responsibility for the accuracy or completeness of the material contained in this statement and
excludes all liability whatsoever (including in negligence) for any loss or damage which may be suffered by any person as a consequence of any
information in this statement or any error or omission. MMS undertakes no obligation to update publicly or release any revisions to these forward-looking
statements to reflect events or circumstances after today’s date or to reflect the occurrence of unanticipated events other than required by the
Corporations Act and ASX Listing Rules. Accordingly, you should not place undue reliance on any forward-looking statements.
Competent Persons statement
The optimisation, mine design and Ore Reseve reporting was completed by Anthony Keers (CP)
MAusIMM and Roselt Croeser MAusIMM, who are directors of Auralia Mining Consultants. Anthony
Keers and Roselt Croeser have sufficient experience that is relevant to the style of mineralisation, type
of deposit under consideration and to the activity being undertaken to qualify as Competent Persons
as defined in the 2004 edition of the Australasian Code for Reporting of Exploration, Results, Mineral
Resource and Ore Reserves (JORC, 2004). Anthony Keers and Roselt Croeser consent to the
inclusion in this report of the matters based on the information in the form and context that the
information appears.
The information including Ore Reserve database compilation, project parameters and costs were
completed under the overall supervision and direction of Graham Howard MAusIMM, who is a full time
employee of Mount Magnet South NL. Graham Howard has sufficient experience that is relevant to the
style of mineralisation, type of deposit under consideration and to the activity being undertaken to
qualify as a Competent Person as defined in the 2004 edition of the Australasian Code for Reporting
of Exploration, Results, Mineral Resource and Ore Reserves (JORC, 2004). Graham Howard
consents to the inclusion in this report of the matters based on the information in the form and context
in which it appears.
Rounding, conforming to the JORC Code, may cause some computation discrepancies.
Competent Persons statement
• Competent Persons Statement Mineral Resource
• The estimation, depletion and reporting was completed by Lynn Olssen MAusIMM (CP) who is a full-time employee of Snowden Mining Industry Consultants. Lynn Olssen has sufficient experience that is relevant to the style of mineralisation, type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2004 edition of the Australasian Code for Reporting of Exploration, Results, Mineral Resource and Ore Reserves (JORC, 2004). Lynn Olssen consents to the inclusion in this report of the matters based on the information in the form and context that the information appears.
• The information including database compilation, geological interpretation and mineralisation wireframing were completed under the overall supervision and direction of Graham Howard, MAusIMM, who is a full time employee of Mount Magnet South NL. Graham Howard has sufficient experience that is relevant to the style of mineralisation, type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2004 edition of the Australasian Code for Reporting of Exploration, Results, Mineral Resource and Ore Reserves (JORC, 2004). Graham Howard consents to the inclusion in this report of the matters based on the information in the form and context in which it appears.
• Rounding, conforming to the JORC Code, may cause some computation discrepancies.
Competent Persons statement
• Competent Person’s Statements – Exploration Results
• The information in this report that relates to exploration results is based on information compiled by Graham Howard, MAusIMM, who is a full time employee of Mount Magnet South NL. Graham Howard has sufficient experience that is relevant to the style of mineralisation, type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2004 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resource and Ore Reserves (JORC, 2004). Graham Howard consents to the inclusion in this report of the matters based on the information in the form and context in which it appears.
Existing Kirkalocka Infrastructure
Crushing circuit
3.6 MW power house
Existing Kirkalocka Infrastructure
1.4 MW SAG mill
Leach tanks
Existing Kirkalocka Infrastructure
110 room camp
1800 meter airstrip and tailings
storage facility
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