Capricorn Metals Ltd · ASX:CMM
Capricorn Metals — Investor Presentation (May 2020)
24 slides from Capricorn Metals's investor presentation, May 12, 2020
Slide 1: Investor Presentation May 2020
INVESTOR PRESENTATION MAY 2020
Slide 2: Disclaimer & Competent Persons Statement
Disclaimer & Competent Persons Statement GENERAL FORWARD LOOKING STATEMENTS The purpose of this presentation is to provide general information about Capricorn Metals Limited (“Capricorn” or the This announcement may contain certain “forward-looking statements” and comments about future events. Forwa
Slide 3: Capricorn Metals - Six Point Investment Thesis
Capricorn Metals - Six Point Investment Thesis 1. Management team – proven mine developers & wealth creators • Samantha Gold, Equigold & Regis Resources • Numerous open pit/CIL projects developed and operated • Enviable equity returns delivered – dividends & tight capital management 2. Karlawinda Go
Slide 4: Corporate Summary
Corporate Summary Capital Structure* ASX Code CMM Shares on issue 326.7 million Unlisted options/rights 20.3 million Share price $1.28 Market Cap $418 million 12 month range $0.38 – $1.46 Cash (as at 31 March 2020) $68.0 million Major Shareholders Hawkes Point Holdings 16.8% Directors and Management
Slide 5: Karlawinda Gold Project
Karlawinda Gold Project Standout WA greenfields gold development project • 2.1 Moz Total Mineral Resources1,2 • 1.2 Moz Open Pit Ore Reserve1,3 • Annual production target 105,000 - 120,000 ounces • AISC target A$1,140 – 1,190 per ounce • Project is fully funded, targeting commissioning March 2021 qu
Slide 6: Karlawinda, First Class WA Location
Karlawinda, First Class WA Location WA - Premier mining jurisdiction • 60km south east of Newman in Western Australia • Newman is a key iron ore mining town • Mining engineering, suppliers, services • Road access via the major Great Northern Hwy • Multiple flights per day Perth to Newman • Site acti
Slide 7: Development Underway
Development Underway In-house project development team • Significant experience in constructing mines in Australia, Africa & Asia Construction activities progressing • Accommodation village operational • Orders placed for all major long lead processing equipment • Mechanical and electrical plant des
Slide 8: Development Underway
Development Underway Civil earthworks for processing plant Access road construction Workshop Accommodation village Access borrow pit capmetals.com.au 8
Slide 9: Bibra Mineral Resource and Ore Reserve Growth
Bibra Mineral Resource and Ore Reserve Growth Ore reserves 1.2 million ounces Reserve and Resource Update April 2020 Ore Reserves increase by 35% to 1.2Moz • Mine life increases from 9 to 12 years • Strip ratio reduces from 4.8 to 3.6 • The >0.5g/t ore within the Reserve is 32.1Mt @1.0g/t for 1.05Mo
Slide 10: Inherent Scope for Mine Life and Reserve Extension
Inherent Scope for Mine Life and Reserve Extension Geometry & Continuity Orebody Geometry & Continuity – Resource to Reserve Conversion • Shallow vertical depths (vd): • Reserve 250m • MRE 312m • Mineralisation confirmed at 600m vd* Optionality • 937,000oz of MRE not yet in Reserve • primarily locat
Slide 11: Metallurgy & Processing
Metallurgy & Processing • Robust processing plant design completed Three stage crushing circuit and single ball mill design Designed to achieve 3.5 – 4.0Mtpa throughput rate in fresh ore Appointment of Mintrex and ECG Engineering for engineering, plant design and electrical works Power gener
Slide 12: Metallurgy & Processing
Metallurgy & Processing Conventional processing, high recoveries Excellent metallurgical testwork and results • 92.1% LOM recovery, 45% gravity recoveries in primary ore • Coarse grind size (P80 150μm oxide and 120μm primary) • Low reagent consumptions capmetals.com.au 12
Slide 13: Karlawinda (KGP) Exploration Opportunity
Karlawinda (KGP) Exploration Opportunity Gold in the Pilbara - Iron Ore Country?? Background to the Opportunity • Gold occurrences in WA most commonly associated with Archean (3.8-2.8Ga) age rocks • KGP occurs in the small (>100km wide) Sylvania Dome which is part of the much larger Pilbara Craton (
Slide 14: Unlocking the potential of a new gold camp at KGP
Unlocking the potential of a new gold camp at KGP Time to look up from working on the first mine (Bibra) What do we know about KGP? • CMM owns 2,042km2 of exploration & mining tenure at KGP (>100km E-W) • Tenure hosts significant greenstone belt endowed with economic gold mineralisation (Bibra > 2.1
Slide 15: Once a mill is turning the district potential becomes real
Once a mill is turning the district potential becomes real Exploration Strategy 1. Drill out resources • Extend and convert resources to mine plan • 2019 drill campaign underpinned April 2020 reserve upgrade • Hiatus for now, next drilling on resource will be once ops running 2. Near mine (<15km) dr
Slide 16: Near mine exploration potential
Near mine exploration potential 8 Targets within 15km of Processing Plant Site Near mine is where we have most data • Historical data review in Dec19Q • 8 high-quality targets identified from existing geological, geophysical and geochemical datasets • We know strong geochem & geophysics signature at
Slide 17: Regional Opportunity – we haven’t scratched the surface
Regional Opportunity – we haven’t scratched the surface • Extensive regional tenement package with limited geological information • Large regional tenure holdings (>2,000km2) • Early exploration - geochemical soil sampling, aeromagnetics, geophysics & regolith mapping • Geochem soil sampling startin
Slide 18: Regional Opportunity – we haven’t scratched the surface
Regional Opportunity – we haven’t scratched the surface Mundiwindi is Case in Point Newly discovered Mundiwindi greenstone • 120 km2 area of greenstone located <12km east of Bibra • Only identified in 2018, from soil sampling, mapping • Magnetic and geochemical survey of the greenstone identified ar
Slide 19: Building a long life, high margin, WA focused gold company
Building a long life, high margin, WA focused gold company Karlawinda the platform to grow a substantial gold company Gold Companies/Assets2,3,4 (Bubble Size = Indicative Production p.a.)1 1,800 1,700 Evolution Mining AISC Margin (based on A$2,600/oz) 1,600 Duketon Tropicana (100%) Ramelius 1,500 1,
Slide 20: Valuation gap to Australian Mid-tier Producers
Valuation gap to Australian Mid-tier Producers Close the valuation gap through project delivery Gold Companies (Bubble Size = Enterprise Value) 1,600 Silver Lake 1,400 Ramelius EV/Reserve (A$/oz) 1,200 1,000 Evolution Northern Star Gold Road 800 Saracen 600 Regis 400 Dacian Westgold Perseus St Barba
Slide 21: Capricorn Metals Ltd (ASX: CMM)
Capricorn Metals Ltd (ASX: CMM) A compelling opportunity in the Australian gold sector • Management team – proven mine developers & wealth creators • Karlawinda Gold Project is a long life, high margin, low technical risk project • Development is fully funded and underway • Western Australia – argua
Slide 22: Mineral Resource – Karlawinda Gold Project
Mineral Resource – Karlawinda Gold Project April 2020 Indicated Inferred Total Mineral Resources Gold Gold Gold Gold Gold Gold Tonnes Tonnes Tonnes Deposit Type Cut-Off Grade Metal Grade Metal Grade Metal (Mt) (Mt) (Mt) (g/t) (koz) (g/t) (koz) (g/t) (koz) Bibra Open Pit 0.3 < 51.5 0.8 1,374 10.8 0.7
Slide 23: Ore Reserve – Bibra Deposit
Ore Reserve – Bibra Deposit April 2020 Proved Probable Total Ore Reserve Gold Gold Gold Gold Gold Gold Tonnes Tonnes Tonnes Deposit Type Cut-Off Grade Metal Grade Metal Grade Metal (Mt) (Mt) (Mt) (g/t) (koz) (g/t) (koz) (g/t) (koz) Bibra Open Pit 0.3 < - - - 39.0 0.9 1,090 39.0 0.9 1,090 Southern Co
Slide 24: Capricorn Metals Ltd (ASX: CMM)
Capricorn Metals Ltd (ASX: CMM) Level 1, 28 Ord Street West Perth, WA enquiries@capmet.com.au +61 8 9212 4600 www.capmetals.com.au ABN: 84 121 700 105