Golconda Gold Ltd · TSXV:GG
Golconda Gold — Galane Gold — Investor Presentation (September 2016)
25 slides from Golconda Gold's investor presentation, September 2016
Slide 1: Corporate Presentation
Corporate Presentation TSX- V:GG AN UNHEDGED, LOW RISK GOLD PRODUCER
Slide 2: Corporate Overview
Corporate Overview Low cost production growth from the recently acquired Galaxy Mine1, 2. 1 Phased, low-cost gold production expansion to over 60,000 oz Au/year at AISC below US$400/oz M&I resources of 602,696 oz Au at 3.01 g/t Au. Inferred resource of 886,199 oz Au at 3.40 g/t Au Operating improvem
Slide 3: Galane Capital Structure
Galane Capital Structure Capital Structure Ownership Breakdown Share Price (September 1, 2016) C$0.11 Basic Shares Outstanding 142,628,884 Stock Options1 12,155,000 NLE Contingency Shares2 7,375,000 Deferred Share Units 3,749,044 Warrants3 4,076,598 Fully Diluted Shares Outstanding 170,084,526 Basic
Slide 4: Galaxy and Mupane
Galaxy and Mupane TSX-V:GG AN UNHEDGED, LOW RISK GOLD PRODUCER
Slide 5: Galaxy Gold Property
Galaxy Gold Property3 Location • Barberton in Northeastern South Africa Main Offices • 74% - Acquired in November and December Ownership 2015 with a mandatory offer for remaining shares commenced Operating • Production commenced in 1884 and through to date approximately 1.3 million oz Au History min
Slide 6: Why Galaxy
Why Galaxy • Near term production asset with • Greenbelt underground project which existing mine and processing facilities is a good fit with our existing property • Cost is a fraction of replacement cost Mupane both in location and skill set • Ability to increase production in easy • Surrounded by
Slide 7: Galaxy History
Galaxy History • Jack Greaves was a prospector from the UK and discovered gold at Galaxy in 1888. • The mine was originally named Agnes Gold after his wife Jessie Agnes. • Galaxy in various forms has now existed for over 120 years and has produced over 1.3 million ounces of gold (1) The historical e
Slide 8: Galaxy Location
Galaxy Location The Barberton Pan African Mines Vantage Goldfields Greenstone belt is part of the Barberton is Pan African’s flagship Vantage annual production is Kaapvaal craton gold project, producing 115,000 oz per around 30,000 oz per year at an which also year at an average cash cost of average
Slide 9: Mining Licence Detail
Mining Licence Detail tt) 4km um To Badpiaes 55.000" Mining licence area: 5 858ha New slyped 6m x 6m adits HOT 492 JT Prospecting permit application area under negotiation with BEE au otommens 376 7 / Prospecting permit area /verbally approved by DMR F LEGEND [J] Mining ticence area [J Prospecting p
Slide 10: Mineral Resource
Mineral Resource1 1 See the Galaxy Technical Report, a copy of which is available under Galane’s profile on SEDAR at www.sedar.com . 10
Slide 11: Processing Plant
Processing Plant • Current plant can process 500 tonnes • BIOX plant was in production but will per day need to be restarted or alternative • Conventional crush, mill, flotation oxidation process acquired to improve recovery. followed by CIL plant. • Operational tailings dam • Prefeasibility study t
Slide 12: Mining Methods
Mining Methods1 • Galaxy – a massive pipe shaped body with a thickness of 35m and a strike of around 100m. Mining may be carried out using mechanised long hole stoping. • Woodbine and Giles – both narrow steeply dipping with a thickness of up to 2.4m and a strike of 900m. Mining may be carried out u
Slide 13: Mining
Mining Current Infrastructure Work to commence on a new prefeasibility study for the following • Adit access to all mineral bodies planned infrastructure amendments • Rail bound and trackless equipment • Year 4 plan to owner operate • Functional shaft to 700 m underground mining • Mining sub-contrac
Slide 14: Exploration Plan - 4,000,000 ozs Au
Exploration Plan1,2 - 4,000,000 ozs Au 1 In house drilling plan dependent upon generating sufficient free cash flows from operations to fund with no guarantees additional ounces will be discovered. 2Previous exploration has been used to outline an exploration target of 30.1 million tonnes grading 3.
Slide 15: Mupane Gold Property
Mupane Gold Property Location • 30 km SE of Francistown (population Processing Plant ~100,000) in Northeastern Botswana Ownership • 100% - Acquired from IAMGOLD in August of 2011 • Production commenced in 2005 and through Operating September 30, 2014 there has been a total of History 640,606 oz. Au
Slide 16: Mupane Land Package
27. 200000 27,400000 27.600000 27.800000 i 1 n 1 % , | Galane Gold Ltd. Prospecting & Mining Licences ) . 3 3 s. 0 255 10 15 20. Fee * a ees Kilometers .g 4 Geographic Coordinate System_WGS 1984 H ZIMBABWE MONARCH PL 002/2012 No DAT t—s—si H A TEKWANE g * FRANCISTOWN — =|” PL039/2011 MATSILOJE PL 21
Slide 17: Tau Underground
Tau Underground • As part of our strategy of low-risk • Main ore body stoping commenced brownfield expansion we have in Q2 2016. pursued underground mining at the previously mined Tau open pit. A • Exploration will commence in 2017 mine plan was been completed to try and find an extension of the bas
Slide 18: Low Grade Stockpiles
Low Grade Stockpiles • 471,000 tonnes of low grade stockpile • Screening plant installed in 2014 can at an average grade of 0.85 g/t. upgrade by approximately 10% the • There is a further 1.1 million tonnes of sulphide stockpiles. sub grade at an estimated grade of 0.70 g/t. 18
Slide 19: Exploration Potential
Exploration Potential Tati Greenstone Belt — Exploration Targets | t Soil geochemistry N Au (ppb) ¢ @ 200 . 100 \% m7 1s, : bs . 25 Monarch \ @ 10 % @ 5 Map Nora *< Lady Mary Durham — St Kildon Line > RANCISTOWN . 7 > = S Tekwane Todd's Creek | Phoenix Golden Eagle “Moth “ Bee Butterfly Key & Tailin
Slide 20: Management Team
Management Team • Chairman of Feronia Inc., one of Africa’s oldest operating companies and largest employers Ravi Sood • Former CEO of Navina Asset Management, a Toronto based investment firm that was acquired by a major financial institution Chairman • Canadian • 22 years experience in accounting,
Slide 21: Management Team
Management Team • 30+ years as geologist focused on Archean gold exploration Charles Byron • Previously with Phelps Dodge, Falconbridge and Gallery Gold, where he led the team that discovered the Mupane Gold Deposit and saw it into production in 2004 Chief Geologist • B.Sc. (Hons) Geology, Soils, Ge
Slide 22: Investment Highlights
Investment Highlights Immediate Leverage Skilled & Trusted to Spot Gold Exploration Upside Management Team Unhedged gold producer Control virtually 100% of Strong operators with the Free operating cash flow the Tati Greenstone belt know-how to optimize and from current Mupane LOM Substanti
Slide 23: Cautionary Statements
Cautionary Statements Certain statements contained in this presentation constitute “forward-looking statements.” All statements other than statements of historical fact contained in this presentation, including, without limitation, those regarding Galane Gold’s results of operations, strategy, plans
Slide 24: Cautionary Statements
Cautionary Statements For more information regarding the mineral resource figures and technical information set out in this presentation, please refer to: (i) the news release dated March 18, 2013 entitled “Galane Gold Ltd. Announces a Mineral Resource Update For its Botswana Properties”; (ii) the n
Slide 25: Contact Info
Ravi Sood Chairman Ravi@GalaneGold.com Mobile: +1 647 987 7663 Contact Info Nick Brodie Chief Executive Officer Nick.Brodie@GalaneGold.com Mobile +44 7905089878 Investor Relations Investors@GalaneGold.com Mobile: +44 7905089878 TSX-V:GG AN UNHEDGED, LOW RISK GOLD PRODUCER 25