Eastern Goldfields, Inc. · OTC:EGDD
Eastern Goldfields — Investor Presentation (April 2017)
56 slides from Eastern Goldfields's investor presentation, April 2017
Slide 1: Driving Value Through Production and Exploration
Driving Value Through Production and Exploration April 2017
Slide 2: Disclaimer
Disclaimer Competent Persons Statement • The information in this report that relates to Exploration Results and Exploration Targets is based on information compiled by Mr Michael Thomson, an employee of Eastern Goldfields Limited, who is a Member of the Australian Institute of Mining and Metallurgy.
Slide 3: Investment Highlights
Investment Highlights • Investec debt facilities totalling $25 m, $15 m drawn Corporate • Further standby facility of $15 m 1 • Advanced ongoing development program • Experienced Board and management team • On track for restart of mining and processing June Quarter 2017 • Key infrastructure already
Slide 4: Corporate Overview
Corporate Overview Capital Structure (ASX:EGS) (as at 3 April 2017) Share Price Issued Capital 493 m Options On Issue1 56.1 m Share Price $0.375 Market Capitalisation $185 m Cash in bank2 $264,000 (as at 31/12/2016) Debt $15 m Enterprise Value (A$m) ~$200 m 1 25.1 m options exercisable at 16.8 cents
Slide 5: Project Overview
Project Overview • 120 km north west of Kalgoorlie, Western Australia • 200 strike kms of prospective greenstone belt • 1,728 km2 containing multiple mining centres • Aggregation of 5 former standalone projects • Each project area hosts multiple o/p and u/g targets • 1.2 Mtpa CIL processing plant an
Slide 6: Our Vision
Our Vision • Build a safe, environmentally conscious, profitable, mining and exploration Company • Achieve a run rate of 800,000 tpa (~80,000 ozpa) by June 2017 • Increase run rate to 1,200,000 tpa (~100,000ozpa) by Dec 2017 • Improve head grade from ~3.2 gpt in 2017 whilst open pit dominant to 4.0
Slide 7: The Strategy
The Strategy • Deliver a safe, efficient, environmentally and socially responsible corporate and operating environment • Maintain low production and exploration costs through the employment of new technologies and techniques • Focus on profitability and Shareholder returns • Reinvest profits equally
Slide 8: Davyhurst Hub – Near Term Gold Production
Davyhurst Hub – Near Term Gold Production • Large existing resource base • 20.6 Mt @ 2.6 g/t for 1.75 Moz • Past production • Approximately 1.3 Moz since 1897 • Includes Siberia, Davyhurst (Golden Eagle deposit and LOI Mining Centre), Callion, Waihi, Mulline and Riverina • Mining operations expected
Slide 9: Low Grade Stockpiles and Laterites
Low Grade Stockpiles and Laterites Low Grade Stockpiles • Currently under evaluation, additions to inventory expected over next 3 months • 1.9 Mt to 2.1 Mt @ 0.6 to 0.8 g/t/Au • Includes 440 Kt @ 1.1 g/t identified as commissioning mill feed and/or future incremental feed – Sandking Low Grade Stockp
Slide 10: Low Grade Stockpiles and Laterites
Low Grade Stockpiles and Laterites Laterite Exploration Target – Additional Information Basis for the Laterite Exploration Target: The Exploration Targets were calculated using historic data that was collated by Eastern Goldfields Limited. The data consisted principally of RC drill intersections fro
Slide 11: Davyhurst Hub – Production Potential
Davyhurst Hub – Production Potential • Targeting 80,000 ounces p.a. by June 2017 • Targeting step change to +100,000 ounces p.a. by December 2017 • Based on 800,000 tpa throughput – potential to lift to +1.2 Mtpa • Strong potential to lift production profile through increased throughput rate and inc
Slide 12: Davyhurst Hub – Resource Development Program
Davyhurst Hub – Resource Development Program • Significant number of exploration opportunities within the Davyhurst hub: • Current focus on extension of existing resources • Hosts some of the largest deposits within the entire portfolio with considerable potential for the discovery of new gold depos
Slide 13: Davyhurst Hub – Plant Refurbishment
Davyhurst Hub – Plant Refurbishment • Refurbishment of the 1.2 Mtpa Davyhurst Plant nearing completion • Targeting re-commissioning in April 2017 • Highlights • Installation of a new gravity circuit including two Nelson Concentrators and an Acacia reactor • Installation of two new cone crushers • In
Slide 14: Mt Ida Project Hub - Overview
Mt Ida Project Hub - Overview • High grade, low tonnage (e.g. Andy Well, Paulsens) – 320,000 t @ 13.8 g/t for 140,000 oz • Historic production: 547,000 t @ 17.2 g/t Au for 302,000oz • Drilling to recommence May 2017 • Exploration focus now shifts to building high quality mineral resource base • Pote
Slide 15: Exploration - Regional Reconnaissance Program
Exploration - Regional Reconnaissance Program • Objectives – generate new discoveries • Systematic exploration program • Historically fractured tenure led to a disjointed approach to exploration across the project area • Method – generate regionally consistent datasets: • Detailed geological outcrop
Slide 16: Appendix
Appendix Sk ASX: EGS ws. > www.easterngoldfields.com.au e,| fields ' Limited
Slide 17: Davyhurst & Waihi Location
Davyhurst & Waihi Location 17
Slide 18: Davyhurst & Waihi Mining Centres
Davyhurst & Waihi Mining Centres • New geological models for mineralisaton being developed – focus on LOI complex & Waihi Lode System • Underground evaluation work looks to the system rather than individual lodes • LOI Complex - multiple ore sources with shared existing capital infrastructure • Waih
Slide 19: Lights Of Israel (LOI) Complex – 3D View
Lights Of Israel (LOI) Complex – 3D View Note: The potential quantity and grade of the Exploration Targets are conceptual in nature. There has been insufficient exploration to estimate a Mineral Resource, and it is uncertain if further exploration will result in the estimation of a Mineral Resource.
Slide 20: LOI Complex Exploration Targets – Additional Info
LOI Complex Exploration Targets – Additional Info The Exploration Targets are based upon a comprehensive geological and mineralisation review conducted by Eastern Goldfields Limited. This modelling utilised a combination of exploration drilling data, underground sampling along with detailed geologic
Slide 21: LOI Complex – Drilling Highlights
LOI Complex – Drilling Highlights • Results from Lights of Israel Complex confirm gold mineralisation at Makai and Great Ophir, enhancing underground mining opportunities • LOI Complex located within 1 kilometre of the Davyhurst processing plant • Significant drilling results • 5.5 m @ 5.95 g/t Au f
Slide 22: LOI Complex - Makai Schematic Long Section
LOI Complex - Makai Schematic Long Section 22
Slide 23: Golden Eagle – Plan showing drilling highlights
Golden Eagle – Plan showing drilling highlights
Slide 24: Golden Eagle – Long Section
Golden Eagle – Long Section 24
Slide 25: Davyhurst – Waihi Complex
Davyhurst – Waihi Complex ASX Announcement 22 February 2017 25
Slide 26: Waihi Complex – Grade Contour Long Section
Waihi Complex – Grade Contour Long Section 26
Slide 27: Waihi Complex - 3D View
Eastern Waihi Complex - 3D View sera (ofits Looking Open/ fy tern North West oe Golden Pole % Reg - ly Homeward g a Bound Open/ Waihi Untested Main Lode Open/ Untested | Open/ Waihi Lodes Looking North South Untested Open/ ’ ’ — | 7 Untested \ .% + = LY , K\< | 5 2 & Open/ Golden ee ea Untested Pole
Slide 28: Davyhurst - Dexy Prospect
Davyhurst - Dexy Prospect • Encouraging drilling results returned at the Dexy Prospect: • 5.0 m @ 11.04 g/t Au from 65.0 m • 8.0 m @ 2.94 g/t Au from 35.0 m • 6.0 m @ 3.08 g/t Au from 12.0 m • 2.0 m @ 5.45 g/t Au from 20.0 m • Dexy mineralisation has been defined over a strike length of greater than
Slide 29: Walhalla Complex
Walhalla Complex • Encouraging gold results from diamond drilling. • Results confirm the presence of significant mineralisation identified by recent RC drilling. • Potential to provide near term oxide mill feed. • Significant drilling results: • 3.3 m @ 5.96 g/t Au, including 0.5 m @ 30.29 g/t Au 9.
Slide 30: Walhalla Complex
Walhalla Complex Location Setting, showing WNP in relation to the Round Dam Walhalla North Plan View – drill hole location plan 30 mineralised trend Note: Results released in ASX announcements dated 15 June 2016 & 18 July 2016
Slide 31: Callion Location
Callion Location rao Eastern Goldfields Limited 31 }-6 700 000 mn }-6 675 000 mn i 120°30°E holdings Geology Cnetic [Di caanie Crete Davyhurst 1.2 Mtpa | Processing Plant DAVYHURST HUB Lode Systems © Near term production source @ ecient production source © Other deposits/prospects Eastern Goldfields
Slide 32: Callion Mining Centre
Callion Mining Centre • Historic high grade underground producer • Recent drilling confirms underground mining potential • Significant drilling results • 7.0 m @ 11.37 g/t Au including 1.0 m @ 45.18 g/t Au • 7.0 m @ 10.68 g/t Au including 2.0 m @ 28.98 g/t Au • 7.7 m @ 9.35 g/t Au including 2.5 m @
Slide 33: Callion Plan – Drilling Highlights
Callion Plan – Drilling Highlights 33
Slide 34: Callion Long Section – Drilling Highlights
Callion Long Section – Drilling Highlights Note: The potential quantity and grade of the Exploration Target is conceptual in nature. There has been insufficient exploration to estimate a Mineral Resource, and it is uncertain if further exploration will result in the estimation of a Mineral Resource.
Slide 35: Callion Long Section – Pit Enlargement
Callion Long Section – Pit Enlargement Note: The potential quantity and grade of the Exploration Target is conceptual in nature. There has been insufficient exploration to estimate a Mineral Resource, and it is uncertain if further exploration will result in the estimation of a Mineral Resource. Ref
Slide 36: Callion Exploration Target - Additional Info
Callion Exploration Target - Additional Info Basis for the Callion Exploration Target: The Exploration Targets were calculated using historic data that was collated by Eastern Goldfields Limited. The data consisted principally of channel sample assays and ore thicknesses and RC and diamond drill int
Slide 37: Riverina & Mulline Location
Riverina & Mulline Location • Shear hosted vein sets in Basalts and Porphyries, past production approx. 290,000 ozs • Lady Gladys largest historical producer in the field; comprises multiple vein sets • Company has identified similar prospectivity at Peach Tree, Lady Jane North • Multiple geochemica
Slide 38: Riverina - Location and Drilling Highlights
Riverina - Location and Drilling Highlights ASX Announcement;: 25 January 2017
Slide 39: Riverina Complex – 3D View
Eastern . . _ : field Riverina Complex — 3D View MAM Limited Fa Se Approximate past UG production aes ee Te 99.5 Kt @ 15.8 g/t Au for 50.5 Koz “3 0m@3.80git] —-~ S25 ws ote Se Current resource > Foe - la0m@760 ~~{ 2585 Kt @ 2.5 g/t Au for 205 Koz i nm Se L —— at ‘ ; es | i es wt aS Hes Sn [RVRC16093
Slide 40: Siberia Location
Siberia Location miniau Eastern Goldfields Limited 40 1-6 700 000 mv }-6 675.000 mn F 6 650 000 mv [290.990 me T 120°30" E Kilometres T 42049 E— — 50km l DAVYHURST HUB Lode Systems © Near term production source @ Wrociur torm production source O Other deposits/prospects Eastern Goldfields tenement h
Slide 41: Siberia Mining Centre
Siberia Mining Centre • Sulphidic shears within Basalt, past production ~174 Koz’s • Sand King and Missouri deposits major producers in district • Pit mapping has defined mineralisation controls within open cuts and regional setting • Exploration for similar settings along 15 km strike of Siberia Tr
Slide 42: Siberia Complex – 3D View
Siberia Complex – 3D View ASX Announcement 23 November 2016 42
Slide 43: Sand King - Drilling Highlights
Sand King - Drilling Highlights 43
Slide 44: Sand King – Cross Section 303 900 mE
Sand King – Cross Section 303 900 mE 44
Slide 45: Sand King – Cross Section 304 035 mE
Sand King – Cross Section 304 035 mE 45
Slide 46: Missouri - Drilling Highlights
Missouri - Drilling Highlights Note: Results released in ASX announcement dated 12 December 2016
Slide 47: Missouri – Long Section 6 655 040 mN
Missouri – Long Section 6 655 040 mN Note: Results released in ASX announcements dated 22 September 2016. 47
Slide 48: Missouri – Cross Section 303 075 mE
Missouri – Cross Section 303 075 mE 48
Slide 49: Siberia Complex – Sand King to Black Rabbit
Siberia Complex – Sand King to Black Rabbit Note: Drill results previously released to ASX in “Updated Corporate Presentation“ on 29 August 2014. 49
Slide 50: Mt Ida Mining Centre
Mt Ida Mining Centre • Gabbro and Basalt shear hosted systems • Past production ~300,000 ozs • High grade existing resource: 320 kt @ 13.8 g/t for 140 Koz • Multiple advanced gold targets present in high grade system • Potential for stand alone operation • Feasibility study commencing in May 2017, m
Slide 51: Mt Ida Complex
Mt Ida Complex ASX Announcement: 31 August 2016 51
Slide 52: Mt Ida Complex
Mt Ida Complex Note: Refer to ASX announcement dated 28 January 2016 for further information. 52
Slide 53: Mt Ida – Bombay Prospect
Mt Ida – Bombay Prospect • 7 kilometres north-west of the Mt Ida Mine • Drilling confirmed Mt Ida Mine style mineralisation at the Bombay • Results highlight the potential to delineate further high grade mineralisation • 4.0 m @ 4.95 g/t Au from 6.7 m; including 1.0 m @ 12.58 g/t Au • 1.8 m @ 3.52 g
Slide 54: Mt Ida – Bombay Prospect
Mt Ida – Bombay Prospect Plan View – drill hole location plan Bombay Cross section 6783450mN Note: Results released in ASX announcement dated 29 July 2016 54
Slide 55: Mineral Resources Table
Mineral Resources Table MEASURED INDICATED INFERRED TOTAL MATERIAL PROJECT ('000t) (g/t Au) ('000t) (g/t Au) ('000t) (g/t Au) ('000t) (g/t Au) ('000oz.) GOLDEN EAGLE 0 0.0 345 2.5 311 2.6 656 2.5 54 LIGHTS OF ISRAEL UNDERGROUND 0 0.0 74 4.3 180 4.2 254 4.2 35 MAKAI SHOOT 0 0.0 1,985 2.0 153 1.7 2,13
Slide 56: Michael Fotios
Michael Fotios Executive Chairman Eastern Goldfields Limited Ph: +61 8 6241 1866
Eastern Goldfields — Investor Presentation (April 2017) on 6ix