Theta Gold Mines Ltd. · ASX:TGM
Theta Gold Mines — Corporate Update (March 2017)
29 slides from Theta Gold Mines's corporate update, Mar 15, 2017
Slide 1: Company Update (ASX Announcement)
15 March 2017 Australian Securities Exchange Level 5, 20 Bridge Street SYDNEY NSW 2000 ASX ANNOUNCEMENT COMPANY UPDATE The Board of Stonewall Resources Limited (ASX: SWJ) (“Stonewall or Company”) is pleased to announce that Preliminary Feasibility Work is underway on the TGME gold project in South A
Slide 2: Following small scale production from 2012 – 2015, the Company is currently focussing on
Following small scale production from 2012 – 2015, the Company is currently focussing on the refurbishment of the existing CIL plant and Elution Circuit and to resume gold production by 2018. The Company aims to build a solid production platform from which it can expand the production profile and ex
Slide 3: Developing Rietfontein – Investor Presentation March 2017
ASX: SWJ Developing Rietfontein Investor Presentation – March 2017 1
Slide 4: Disclaimer & Competent Person Statement
Disclaimer & Competent Person Statement • This Presentation has been prepared by and issued by Stonewall Resources Limited (ASX.SWJ) (Stonewall or Company) is to assist in informing interested parties about the Company and should not be considered as an offer or invitation to subscribe for or purcha
Slide 5: Forward Looking Statement & Cautionary Statement
Forward Looking Statement & Cautionary Statement • This presentation may refer to the intention of Stonewall Resources regarding estimates or future events which could be considered forward looking statements. Forward looking statements are typically preceded by words such as “Forecast”, “Planned”,
Slide 6: TGME's Rietfontein Project Location
TGME’s Rietfontein Project Location Located in Sabie township of Mpumalanga Province: 370km east of Johannesburg directly by Road, or 30 minutes flight from Johannesburg to Nelspruit by commercial airline, then 95km north of Nelspruit by Road. Other Infrastructure: Fully Permitted to mine CI
Slide 7: SWJ - Investment Summary
SWJ - Investment Summary • Near-term Production: Fully permitted mines, 2018 production target • Large Resource Base: 3.4Moz trading at <US$10/oz • Low Cost: Rietfontein targeting lowest quartile cash costs • Low Capital: US$31m peak development funding for Rietfontein • Multi-mine upside: Beta, Vaa
Slide 8: Corporate Overview
Corporate Overview ASX code: SWJ GLOBAL REGISTRY, EXPERIENCED TEAM, LARGE & HIGH GRADE Current share price: $0.024 RESOURCES, EXISTING PLANT & FACILITIES Market Capitalisation: A$45 million Shares on Issue: ~1.9 billion SWJ: Stonewall Resources Ltd 2.3 2.1 Share Price (cps) 1.9 1.7 1.5 1.3 1.1 0.9 0
Slide 9: Rietfontein: 905koz, 11g/t Au JORC 2012
Rietfontein: 905koz, 11g/t Au JORC 2012 • JORC Resource of 2.55Mt @ 11g/t Au (905koz, Indicated and Inferred) • Fully permitted and development ready: Pending drilling program to establish reserves & funding • Part of wider Group Resources of 28Mt @ 3.7g/t Au (3.4Moz)1 • Scoping Study indicates pote
Slide 10: Rietfontein: Scoping Study Summary
Rietfontein: Scoping Study Summary Refer to ASX announcement 28 February, 2017. Production target is based on Indicated & Inferred Resources. Insufficient work to define a Mineral Reserve at this stage. Average LOM production over 7yrs is 55koz (38-68kozpa). Confirmation of reserves will be conducte
Slide 11: Rietfontein – JORC (2012) Mineral Resources
Rietfontein – JORC (2012) Mineral Resources Note: • Mineral Resources are reported at resource cut- off of 1.8g/t (230 cmg/t) • 33% of the Inferred resources is below the last known data point • Fault losses of 5% for Stope Indicated and Resource Stope Au Reef Width Stope width Stope Au Content Tonn
Slide 12: Rietfontein: Robust Preliminary Economics
Rietfontein: Robust Preliminary Economics • Pre-tax NPV of US$114m in Scoping Study • Initial 7.5yr Mine life based on 200ktpa (with plans to upgrade this towards 300ktpa) • IRR of 83% • PFS underway, complete 2H’17 • Located 41km from existing TGME processing plant • PFS to examine expansion potent
Slide 13: Rietfontein: Lowest Quartile Target
Rietfontein: Lowest Quartile Target South Africa: 2015 Grade profile South Africa: 2015 AISC estimates (US$/oz) 18 1600 16 Rietfontein scoping 1400 Rietfontein scoping 14 Gold Grade (g/t Au) AISC (US$/oz) 12 1200 10 1000 8 6 800 4 600 2 0 400 Masimong South Deep Cooke Tshepong Kloof Mponeng Barbrook
Slide 14: Rietfontein: Target High Grade first
Rietfontein: Target High Grade first • Mining ceased around 1945 • Narrow granite-hosted shear zone (unusual for SA) • Normal shrinkage stoping (with fill) • Dual (north-south) adit entrance may enhance production levels 12
Slide 15: Rietfontein – Exploration Target
Rietfontein – Exploration Target Rietfontein Grade Model with the Identified Exploration Targets Identified Note: The tonnages and content presented in the table represent a high level of uncertainty as to their existence and do not represent Mineral Resources. It may not be assumed that the Explora
Slide 16: Stonewall Revitalisation Strategy
Stonewall Revitalisation Strategy JORC (2012) Resource of 905koz @ Rietfontein 11.1g/t (25.7% Indicated) from Funding Underway Rietfontein JORC (2004) Resources of >0.7Moz, PMR, Beta and Exploration targets* Aiming for production in 1-2 years Dukes, Browns Hill, Ponieskrantz, JORC (2004) Resources o
Slide 17: Beta Mine: Another treasure chest
Beta Mine: Another treasure chest • JORC resource of 6.8Mt @ 3.3g/t for 709koz (indicated/inferred) • Indicated 0.6Mt @ 4.9g/t Au (92koz) • Updated JORC Resource & Scoping Study pending in coming weeks • Focus on higher grade areas initially >6g/t Au & PMR material • PFS work on mine scheduling, dri
Slide 18: Stonewall Strategy: 2-3 Mines in 2-3 Years
Stonewall Strategy: 2-3 Mines in 2-3 Years 1. Drilling & Publication of Reserves for Rietfontein & Beta 2. Complete PFS studies into Rietfontein & Beta/PMR 3. Drilling at Vaalhoek, Beta & others 4. Commence refurbishment of TGME processing plant 5. Mine dewatering and development at Beta with view t
Slide 19: Centralised Treatment Plant & Infrastructure
Centralised Treatment Plant & Infrastructure 17
Slide 20: Valuation Upside
Valuation Upside • Risked valuation A$112m: Detailed project assessment by MineInvest with a current, risk-adjusted valuation of US$85m • 120-130kozpa: Report assessed the costs and likelihood of >100kozpa in coming years through Rietfontein/Beta and PMR material (chart, below) • Valuation A$0.056/s
Slide 21: Production – the Historical tip of the iceberg
Historical Production – the tip of the iceberg Northern & Central (Pilgrims Rest) • 1872 - 1972 : ≈ 4.27 Moz • 2005 - 2014 : ≈ 0.23 Moz Southern (Sabie) • 1872 – 1972 : ≈ 2.15 Moz “Proven past production of 7 Moz - Entire district now controlled by Stonewall” 19
Slide 22: Thank You
SWJ Thank You www.stonewallresources.com.au Rob Thomson Managing Director - SWJ Mobile: +61 409 843 963 info@stonewallresources.com 20
Slide 23: Group Resources: 3.4Moz and growing
Group Resources: 3.4Moz and growing Tonnage Gold Grade Gold Content Mineral Resource Type of Operation Category Mt g/t kg koz UG* 0.17 4.77 811 26.1 Measured Surface 0.151 1.59 240 7.7 Tailings 2.294 0.77 1,770 56.9 Total Measured 2.615 1.08 2,821 90.7 UG* 2.379 6.01 14297 459.6 Indicated Surface 3.
Slide 24: Building Up the Technical and Development Team
Building Up the Technical and Development Team Key Personnel Position Expertise and Role Robert Thomson Managing Director Stonewall 35+ years Mining Engineer & Director. Development/Operations as CEO/Exec Resources Director/Project Manager in 8 gold and base metal projects progressed through - Austr
Slide 25: Approvals Process
Approvals Process Mine Description Date Status Expected Required Timeframe Rietfontein Hard Rock Mining Right Jun 18 Complete Environmental approval Jun 18 Complete Water User Licence Jun 18 Complete Social and labour plan Jun 18 Complete Mine Works Programme Jun 18 Complete Ore Transport to TGME
Slide 26: Approvals in Place
Approvals in Place Mine Description Date Status Timeframe Required PMR Mining Beta Mining Right Jan 18 Complete Environmental approval Jan 18 Complete Water User Licence Jan 18 Complete Social and labour plan Jan 18 Complete Addendum to include PMR mining Jan 18 Mar 17 into mine works programme Or
Slide 27: What is PMR?
What is PMR? • Historically, ore was hand-mined and sorted to produce high grade ore for processing with grades typically > 10g/t, leaving the residual fine material behind (known as Pre Mined Residue) , i.e. effectively creating extensive gold mineralised underground stockpiles. • This pre-mined re
Slide 28: Appendix: The Gold One & Sibanye Success Story
Appendix: The Gold One & Sibanye Success Story • Gold One (ASX: GDO) Created from BMA Gold (RTO) in 2009 & Alfalease • Developed the successful Modder East Mine (12Mt @ 4g/t reserves, 120kozpa, US$400-450/oz cash cost in 2010/11) • Gold One takeover for A$0.55/share announced by Chinese (BCX Gold) i
Slide 29: Geology – Gold Mineralisation
Geology –Gold Mineralisation 27