Emerald Resources Nl · ASX:EMR
Emerald Resources Nl — Investor Presentation (January 2020)
38 slides from Emerald Resources Nl's investor presentation, Jan 20, 2020
Slide 1: Okvau Gold Project, Cambodia
Okvau Gold Project, Cambodia ASX:EMR Emerald to Become +100,000ozpa Gold Producer Capital Raising Presentation January 2020 Not for Release to US wire services or distribution in the United States
Slide 2: Presentation Disclaimer
Presentation Disclaimer Forward Looking Statement This presentation contains certain forward looking statements. These forward-looking statements are not historical facts but rather are based on the Company’s current expectations, estimates and projections about the industry in which Emerald Resourc
Slide 3: Executive Summary
Executive Summary Equity Raising to complete funding of the Okvau Project Equity Financing Two tranche placement to raise A$75 million (Placement): Tranche 1 - unconditional placement to sophisticated and professional investors for approximately A$30.5 million of New Shares; Tranche 2 – condit
Slide 4: Offer Overview
Offer Overview Placement Overview A capital raising of A$75 million (before costs) via a two tranche placement of 1,875 million new ordinary shares (New Shares) (the Placement); Tranche 1 – unconditional placement of 762.1 million New Shares under the Company’s 25% Offer Details Placement capaci
Slide 5: Sources and Uses of Funds
Sources and Uses of Funds Fully Funded via Placement and Project Debt Facility Sources(1) A$m Uses(1) A$m Construction and development of the Okvau Gold Project: Pre-production capital 10.1 Construction of camp and processing plant 114.1 75.0 Environmental payments/bonds 3.1 Placement proceeds(2) Pr
Slide 6: Indicative Equity Raising Timetable
Indicative Equity Raising Timetable Milestone Time/Date(1) ASX Trading Halt 20 January 2020 Trading Halt lifted and Return to Trade 24 January 2020 Settlement of New Shares issued under Tranche 1 of the Placement 31 January 2020 Allotment and Trading of New Shares issued under Tranche 1 of the Place
Slide 7: Emerald a Short History
Emerald a Short History November 2016 - Merger with Renaissance Minerals Limited; May 2017 - Okvau Definitive Feasibility announced; and May 2017 - Maiden Ore Reserve of 14.3Mt @ 2.0g/t Au for 907,000oz. July 2017 - Expansion of its ground holdings in Cambodia (400km² - 1,400km²); November
Slide 8: Capital Structure
Board & Management Capital Structure Simon Lee AO, Non-Executive Chairman Previously Chairman: Equigold NL, Samantha Gold NL, and Great ASX Code EMR Victoria Gold NL; Previously Board Member of the Australian Trade Commission and Patron Share Price 4.4 cents¹ of the Western Australian Chinese Ch
Slide 9: Debt Funding Overview
Debt Funding Overview US$60M Okvau Project Facility US$60M investment committee approved Term Sheet (“Okvau Facility”) signed with Sprott Private Resource Lending II L.P. (“Sprott”) for development of the Okvau Gold Project:- Key terms of the Okvau Facility:- Facility amount – US$60 million; T
Slide 10: Cambodia Overview & Project Location
Cambodia Overview & Project Location First mover advantage in frontier terrain Attractive fiscal regime: 100% ownership; 30% corporate tax rate for mining; 25% for Emerald first 5 years. 3.0% Government Gold royalty (net)³; Full Import duty exemptions for first 3 years. 1,442km² of under
Slide 11: Cambodia Overview
Cambodia Overview Attractive Mining Jurisdiction Pro-development government, focused on economic growth and in supporting an early stage mining industry in order to diversify revenue from its cornerstone textile industry; Continues to enjoy strong economic growth, averaging 7.7% from 1995 to 201
Slide 12: Mineral Investment Agreement ("MIA")
Mineral Investment Agreement (“MIA”) Mineral Investment Agreement (“MIA”) Highlights Fully executed MIA by Minister of Mines & Energy and Minister of Economy & Finance; MIA provides clarity and stability for the Okvau Gold Project development and operations; The first of its kind for a large s
Slide 13: Okvau Project Summary
Okvau Project Summary | Robust & Compelling Economics Economical Robust Project Project DFS Economics of US$1,450/oz Gold JORC Ore Reserve of 14.3Mt @ 2.0g/t Au for (100% Ownership) 907,000oz (strip ratio 5.8:1); Development Capital Costs1 US$91M 2.0Mtpa plant to produce 106,000oz pa (84% net Mi
Slide 14: Low All-in Sustaining Costs | High Margin
Low All-in Sustaining Costs | High Margin Mine Site Layout Operating Cost Summary Life of Mine On-Site Mining US$344/oz On-Site Processing US$261/oz On-Site G&A US$48/oz Transport and Refining US$5/oz C1 costs US$658/oz Royalties1 US$65/oz Sustaining Capital & Closure Costs US$31/oz AISC US$754/oz 1
Slide 15: Okvau JORC Reserve
Okvau JORC Reserve | 2.0g/t Au for 907,000 ounces gold 650 metres of strike by 600 metres width of the JORC Resource (0.7g/t gold cut-off) 1 mineralised vein system; Resource Tonnage Grade Au Gold Classification (Mt) (g/t) (Koz) Drill spacing of 25m x 25m in the top 120m; Indicated 15.11 2.08 1,
Slide 16: Okvau Grade Control Simulation
Okvau Grade Control Simulation Infill Grade Control simulation drilling programme 368 holes for 10,100m; 10m x 10m infill pattern to an average vertical depth of 25m; Results confirm continuity, grade and tonnage estimate of resource model; Best results of:- 4m @ 22.93g/t gold from 18m (GC
Slide 17: Okvau Resource Growth
Okvau Resource Growth | Southern Depth extensions Some of the highest grade intersections sit beneath open pit floor including:- 17m @ 4.5g/t from 320m (DD11OKV091); 10m @ 9.6g/t from 411m (DD12OKV108); 11m @ 8.4g/t from 399m (DD11OKV091); 6m @ 9.7g/t from 520m (DD16OKV373). Cross-section
Slide 18: Okvau Potential Structural Feeder Zone
Okvau Potential Structural Feeder Zone Selected Okvau feeder zone intersections:- 15m @ 11.92g/t from 143m (RC19OKV390)²,³⊗; 8m @ 19.98g/t from 172m (RC19OKV397)²,³⊗; 16.9m @ 10.87g/t from 78m (DD16MET003)¹⊗; 9m @ 13.23g/t from 47m (DD11OKV073)¹⊗. 32m @ 2.75g/t from 59m (DD11OKV086)¹; 7m
Slide 19: Regional Potential
Regional Potential Dominant land position of ~1,400km² covering a north-west trending zone of granitoid intrusions; Multiple Gold occurrences with direct associations with intrusions with pathfinder multi-elements (bismuth, arsenic, tellurium). Koan Nheak (Earning 80%) Phnom Khtong 50km (Earning
Slide 20: Mekong Minerals Snoul Project
Mekong Minerals Snoul Project 3km, x 1.5km gold in soil anomaly (at Limited historical drilling >10ppb Au); returned best results of :- 4m @ 11.94g/t gold from 4m (SNRC002); Peak value auger 16m @ 2.93g/t gold form 4m sampling 22.3ppm Au; (SNRC009); 12m @ 1.01g/t gold from 12m (SNRC010); Peak
Slide 21: Mekong Minerals Phnom Khtong Project
Mekong Minerals Phnom Khtong Project Western anomaly 1.3km x 0.4km (at >30ppb Au); and Central anomaly 1km x 0.4km (at >10ppb Au); Peak value auger sampling 7.27 ppm Au; Peak value rock chip 38.3g/t Au; Geological setting similar to Okvau with mineralisation coincidental with Diorite intru
Slide 22: Angkor JV Koan Nheak Project
Angkor JV Koan Nheak Project Two gold in soil anomalies discoveries; Northern anomaly 0.7km x 0.3km (at >10ppb Au); Southern anomaly 1.4km x 0.4km (at >10ppb Au); Peak value EMR rock chip 9.94g/t Au; Geological setting similar to Okvau on the southern extremity of a Diorite intrusion; Em
Slide 23: Okvau | Commenced Construction of Permanent Access Road
Okvau | Commenced Construction of Permanent Access Road Okvau Access Road materially complete which includes 35 tonne concrete Prek Te river bridge construction substantial completion of upgrades to the existing materially complete. 50km of dirt roads and current finalisation of the construction
Slide 24: Okvau – Resettlement
Okvau – Resettlement 62 local families successfully relocated from the project area; Process governed by a committee of relevant stakeholders, conducted in a manner consistent with the IFC guidelines and approved Resettlement Action Plan; Existing housing dismantled and removed; Provisions m
Slide 25: Okvau – Grid Power, Fencing & Ranger Hut
Okvau – Grid Power, Fencing & Ranger Hut Tower Footings on Okvau PDA. Okvau PDA Fencing Complete. Aerial View Powerline Towers & Ranger Hut provided and Corridor nearing completion, and will be built by Emerald. available well ahead of site requirements. ASX: EMR | www.emeraldresources.com.a
Slide 26: Okvau – Grade Control Drilling Commenced
Okvau – Grade Control Drilling Commenced 5m x 5m RC grade control drilling commenced with Contract awarded for the provision of ongoing UDR650 rig. grade control drilling. ASX: EMR | www.emeraldresources.com.au 26
Slide 27: Summary
Summary Experienced, well credentialed Board and senior management, well equipped to develop Okvau and other gold projects; Emerald developing a single pit, 2.0g/t, 907,000 ounce gold reserve at US$754/ounce (AISC); Resource open with strong potential to expand and convert additional reserves;
Slide 28: Addendum to Presentation
Addendum to Presentation ASX: EMR | www.emeraldresources.com.au 28
Slide 29: Metallurgy & Processing
Metallurgy & Processing | Extensive test work completed Conventional Flotation & Leaching Coarse primary grind (>106µm) and sulphide flotation Low mass pull (8%), high grade concentrate Fine regrind of concentrate only (no oxidation) Leaching (flotation tails and concentrate) & Elution Gold recoveri
Slide 30: Okvau Project Summary | Total Operating Cost Summary
Okvau Project Summary | Total Operating Cost Summary US$1,450 Gold price assumption. Operating Costs LOM USD/t USD/oz USD (processed) (recovered) Mining 262M 18.37 344 Processing & Maintenance 199M 13.93 261 General & Administration 37M 2.58 48 Refining 3M 0.25 5 Sub Total 501M 35.13 658 Sustaining
Slide 31: Environmental & Social Values
Environmental & Social Values The Okvau project is to have a (net) positive impact on near-mine environmental and social values via:- Target strict compliance with corporate governance, international guidelines (IFC PS’s) and Cambodian law; The introduction of “Environmental Bonding” concept to
Slide 32: Appendix – Key Risks
Appendix – Key Risks 1. Company Specific Risks Tenure risk The ability of the Company to carry out successful exploration and mining activities will depend on the ability to maintain or obtain tenure to mining titles. On 10 July 2018 the Company announced the grant of an Industrial Mining Licence (M
Slide 33: Appendix – Key Risks
Appendix – Key Risks 1. Company Specific Risks - continued Funding risk The Company’s ability to effectively implement its business and operations plans in the future, to take advantage of opportunities for acquisitions, joint ventures or other business opportunities and to meet any unanticipated li
Slide 34: Appendix – Key Risks
Appendix – Key Risks 1. Company Specific Risks - continued Operating risks In common with other enterprises in the minerals and mining industry, Emerald’s mineral exploration, development and related mining activities, including the delivery of supplies and consumables and the transportation of prod
Slide 35: Appendix – General Risk
Appendix – Key Risks 2. General Risk Economic conditions Adverse changes in economic conditions, such as interest rates, exchange rates, inflation, government policy, international economic conditions and employment rates amongst others are outside Emerald’s control and have the potential to have an
Slide 36: Appendix – International Offer Restrictions
Appendix – International Offer Restrictions International Offer Restrictions This presentation is not an offer, invitation, solicitation, advice or recommendation with respect to the subscription for, purchase or sale of, new ordinary shares (“New Shares”) or any other security, and neither this pre
Slide 37: Appendix – International Offer Restrictions
Appendix – International Offer Restrictions United Kingdom Neither this document nor any other document relating to the offer has been delivered for approval to the Financial Conduct Authority in the United Kingdom and no prospectus (within the meaning of section 85 of the Financial Services and Mar
Slide 38: Appendix – International Offer Restrictions
Appendix – International Offer Restrictions Canada (continued) Statutory rights of action for damages and rescission Securities legislation in certain of the Provinces may provide purchasers with, in addition to any other rights they may have at law, rights of rescission or to damages, or both, when
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