Vault Minerals Limited · ASX:VAU
Vault Minerals — Red 5 — Q4 2020 Earnings Presentation
41 slides from Vault Minerals's earnings presentation, Jan 28, 2021
Slide 1: Dec-20 Quarterly Presentation
For personal use only Dec-20 Quarterly Presentation 28 January 2021 ASX Code: RED Mark Williams, Managing Director www.red5ltd.com
Slide 2: Competent Person's Statement and Disclaimer
Competent Person’s Statement and Disclaimer For personal use only Competent Person Statements for JORC 2012 Mineral Resource and Ore Reserves The information in this presentation that relates to the Mineral Resources at the Siana open pit is extracted from the report titled Siana Gold Project – Open
Slide 3: Red 5 Limited – a standout growth opportunity
Red 5 Limited – a standout growth opportunity ✓ For personal use only Red 5 has two gold mines in one of the world’s safest and most prospective gold districts ✓ King of the Hills (KOTH) is a major Australian gold deposit ▪ Mineral Resource of 4.1Moz1 and Ore Reserve of 2.4Moz2 ✓ KOTH Final Feasibil
Slide 4: Red 5 Limited – corporate profile
Red 5 Limited – corporate profile For personal use only Our Company Vision “To be a successful multi-operational exploration and mining company, providing benefits to all stakeholders, through the consistent application of technical excellence, and responsible and sustainable industry practices.” Sh
Slide 5: ESG – enhancing governance and capability
ESG – enhancing governance and capability For personal use only Ms Andrea Sutton, Non-Executive Director, appointed Nov-20 ▪ 25+ years experience with Rio Tinto and Energy Resources of Australia (ERA) ▪ Current Board Member of Infrastructure WA, ANSTO (Australian Nuclear Science and Technology Organ
Slide 6: ESG – a company built on a strong safety culture
ESG – a company built on a strong safety culture For personal use only ▪ No LTI’s for the December 2020 Quarter ▪ Continual engagement and focus on Safety ownership to address the current TRIFR spike through EHS Leading Indicator Programs, reinforcement of vital behaviours and personal safety traini
Slide 7: FY21 Darlot transition year to satellite feed
FY21 Darlot transition year to satellite feed For personal use only ▪ Dec-Qtr production 21,534oz, AISC A$2,181/oz1 ▪ FY21 production guidance1 revised to 80,000 – 85,000oz (previously 90,000 – 98,000oz) ▪ FY21 AISC guidance $2,150 - $2,280/oz ▪ Lower than expected mining rates and grade from the Da
Slide 8: Great Western mining starting in Feb-21
Great Western mining starting in Feb-21 ▪ Updated mineral resource1 For personal use only ▪ 870kt @ 2.5g/t Au for 70koz ▪ Maiden Open Pit Ore Reserve1 ▪ 438kt @ 2.5g/t Au for 34.5koz contained gold ▪ Additional assays pending ▪ Underground Ore Reserve still to be established ▪ Deposit remains open a
Slide 9: KOTH – Australia's next major gold mine
KOTH – Australia’s next major gold mine For personal use only ✓ Final Feasibility Study highlights3: Australia’s top 10 gold deposits ▪ Initial 16-year mine life by Ore Reserve2 ▪ First production Jun-Qtr 2022 Mt g/t Moz Cadia 1480.0 0.5 22.5 ▪ First 4 years open pit and underground mining, peaking
Slide 10: KOTH geology is well understood
KOTH geology is well understood For personal use only Mar-20 Mineral Resource1 Aug-20 Ore Reserve2 91Mt @ 1.4 g/t for 64.6Mt @ 1.2 g/t for 4.1Moz Au 2.4Moz Au ▪ Ore body hosted in a substantial granodiorite-ultramafic intrusion ▪ 4km long x 2km wide ▪ Historical understanding from previous open pit
Slide 11: KOTH site activities commenced, orders placed
KOTH site activities commenced, orders placed For personal use only A$M1 Processing and infrastructure 188 Owners costs 12 Sub-total 200 Contingency 19 Sub-total 219 Mining pre-strip 7 Mill casings in USA being loaded for transport Total (Real) capital cost 226 ▪ EPC fixed-price contract awarded to
Slide 12: Camp to be ready for use in February 2021
Camp to be ready for use in February 2021 For personal use only ▪ Camp construction progressing well ▪ First stage of village to be ready for use in Feb-21 ▪ All central facility buildings have been delivered ▪ 61 single person quarters (SPQs) installed (220 rooms) ▪ 35 SPQs and 3 laundries ordered
Slide 13: Bulk earthworks for KOTH Plant commenced
Bulk earthworks for KOTH Plant commenced For personal use only ▪ MACA Interquip mobilised to site ▪ Earthworks started in December 2020 ▪ Process plant equipment orders are being progressively issued ▪ Plate for CIL Tanks have been ordered ▪ Plant design on track ▪ Phase 2 EPC Notice of Award to be
Slide 14: Delivery of SAG Mill and Gyratory Crusher
Delivery of SAG Mill and Gyratory Crusher For personal use only ▪ The 15MW SAG Mill, shell and motors have been shipped from Houston to Johannesburg for refurbishment and upgrade ▪ The variable speed drive for the SAG mill is undergoing inspection in Switzerland ▪ MACA Interquip is supplying a new M
Slide 15: 15MW SAG Mill - support much higher throughput
15MW SAG Mill - support much higher throughput For personal use only Hardest Ore Design Mid High ▪ Conventional 4Mtpa CIL plant ▪ Acquired 15MW, dual Power Draw (kW) 9,272 10,859 12,445 synchronous motor semi- autonomous grind (SAG) mill Grind Size (P80) 150 150 150 with VVVF drive Tonnes Per Hour (
Slide 16: KOTH on-track for first gold in June 2022 Quarter
KOTH on-track for first gold in June 2022 Quarter For personal use only 2020 2021 2022 SQ DQ MQ JQ SQ DQ MQ JQ SQ DQ Final Feasibility Study approval Early site works Stage 2 permits Debt financing Final Investment Decision EPC mobilisation Site construction Mill delivery Mine contractor mobilisatio
Slide 17: A large gold mine generating substantial cash flow
A large gold mine generating substantial cash flow1 For personal use only Pre-tax Unit $2,000/oz $2,250/oz $2,500/oz $2,750/oz $3,000/oz At a gold price of A$2,500/oz: Project cashflow $M 1,147 1,710 2,273 2,837 3,400 ▪ Free cashflow (after tax) of: NPV8% $M 512 806 1,101 1,395 1,689 IRR % 38.0% 51.
Slide 18: KOTH project financing is underway
KOTH project financing is underway For personal use only ▪ Low-risk brownfield project is attractive ▪ High gold price environment ▪ Strong project economics ▪ Long reserve tail ▪ Favorable mining jurisdiction ▪ Target Project Finance debt of up to $165m ▪ KOTH-allocated cash from FY20 equity raisin
Slide 19: Siana Gold Project, Philippines
Siana Gold Project, Philippines For personal use only ▪ The Siana Gold Mine, owned by Philippine affiliated company Greenstone Resources, suspended mine operations in April 2017 ▪ Maintaining mill and pit dewatering to preserve value ▪ Siana is a valuable gold mining asset1: ▪ 8 year Life-of-Mine pl
Slide 20: Red 5 transformation to a mid-tier gold producer
Red 5 transformation to a mid-tier gold producer For personal use only ▪ AISC and indicative mine reserve life of WA-based gold companies1,2 ▪ Gold companies/assets (Bubble Size = Indicative Production p.a) 2,200 Red 5 - Today The planned development of 2,000 KOTH will position RED as a leading mid-
Slide 21: Red 5 EV/Reserve relative to its peers
Red 5 EV/Reserve relative to its peers For personal use only ▪ Valuation of WA based-gold companies1 ▪ Bubble Size = Enterprise Value 2,000 Pantoro Ramelius Resources EV / Reserve (A$/oz) 1,500 Silver Lake Resources 1,000 Ora Banda Mining Gold Road Resources Dacian Gold Westgold Resources 500 Capric
Slide 22: KOTH is a unique Project in uncertain times
KOTH is a unique Project in uncertain times For personal use only Growth of the Australian gold industry ▪ Top 10 Australian gold deposit by Ore Reserve ▪ 16 year LOM, average 176kozpa in Years 1-61 ▪ Flexibility to expand Mill throughput, extend underground mine life beyond 4 years Benefits to West
Slide 23: Thank-you
For personal use only Thank-you 23 www.red5ltd.com ASX Code: RED
Slide 24: Red 5 – appendix
For personal use only 24 Red 5 – appendix
Slide 25: Strong leadership team with operating expertise
Strong leadership team with operating expertise For personal use only Red 5 has a strong and capable team, with many years of mining and development experience both at Red 5 and previously at multi-billion international development projects – the Company is well placed to deliver the KOTH developmen
Slide 26: Darlot long term – opportunities to extend LOM
Darlot long term – opportunities to extend LOM For personal use only Darlot Gold Mine 1 Cables & Mission 4 ▪ Resource 11.8Mt @ 3.4g/t Au for ▪ Combined JORC 2004 Resource of 1.5Mt @ 3.1g/t Au for 185koz2 1.3Moz ▪ Historical drilling suggests both ▪ Reserve 2.7Mt @ 2.8g/t Au for 239koz deposits remai
Slide 27: Ardea farm-in JV expands footprint
Ardea farm-in JV expands footprint to 1,923sqm ▪ Farm-in Joint Venture Agreement agreed with For personal use only ASX-listed explorer Ardea Resources Ltd (ASX: ARL)1 ▪ Right to earn up to 80% over 3 years ▪ Required to spend $1.5 million within a 2-year period to earn an initial 60% interest in the
Slide 28: KOTH 2.4Moz Ore Reserve – an increase of 64%
KOTH 2.4Moz Ore Reserve1 – an increase of 64% For personal use only Total KOTH Ore Reserves as at September 2020 Cut-off JORC 2012 Tonnes Gold Contained Deposit Mining Method (g/t) Classification (Mt) (g/t) Gold (Moz) KOTH Open pit 0.39 Probable 58.5 1.1 2.1 KOTH Underground 1.60 Probable 2.4 2.3 0.
Slide 29: KOTH satellite deposits – Resource of 308koz
KOTH satellite deposits 1 – Resource of 308koz For personal use only ▪ Maiden JORC Mineral Resources announced in May 20201: o Cerebus-Eclipse: Indicated and Inferred Resource of 2.8Mt @ 1.2g/t Au for 112,000oz o Centauri: Indicated and Inferred Resource of 1.7Mt @ 1.5g/t Au for 81,300oz ▪ Adds to t
Slide 30: KOTH 4.1Moz Mineral Resource - increase of 31%
KOTH 4.1Moz Mineral Resource1 - increase of 31% For personal use only Total Open Pit & Underground KOTH Resource as at March 2020 Cut-off Mining Tonnes Gold Contained Gold ▪ Cut-off date for inclusion of Classification drilling data and mining (g/t) Method (000t) (g/t) (000oz) depletion as at 19 Feb
Slide 31: KOTH - mineralisation open in all directions
KOTH - mineralisation open in all directions For personal use only White Walker Lemonwood South Pit Drilling bulk stope New Structural Corridor Proof of concept drilling confirms gold mineralisation extends 500m from Mineral Resource 1 Mineralised stockwork penetrates at least 70 metres into the gra
Slide 32: 16-year initial LOM – open pit and underground
16 year initial LOM – open pit and underground For personal use only ▪ Bulk open pit and underground mine ▪ Start-up benefits from existing low-grade stockpiles (1.6Mt @ 0.6g/t) and Rainbow satellite pit ▪ Minimal 3 months pre-strip required in FY22 ▪ Underground mining @ 1Mtpa for the first four ye
Slide 33: 16-year initial LOM – open pit and underground
16 year initial LOM – open pit and underground For personal use only ▪ Bulk open pit and underground mine ▪ Start-up benefits from existing low-grade stockpiles (1.6Mt @ 0.6g/t) and Rainbow satellite pit ▪ Minimal 3 months pre-strip required in FY22 ▪ Underground mining @ 1Mtpa for the first four ye
Slide 34: Mine Plan optimises material movement over LOM
Mine Plan optimises material movement over LOM For personal use only Cost of Production ($A/oz) Yrs 1-6 LOM ▪ Mining to be undertaken by mining contractors Mining 895 908 ▪ Contractors to install mining facilities Processing 273 321 ▪ Open pit fleet forecast to include 250t excavators and 140t haul
Slide 35: KOTH LOM Plan focussed on maximising value
KOTH LOM Plan focussed on maximising value ▪ Early years of LOM benefit from UG mining and For personal use only processing of high-grade ore ▪ Potential to extend UG mining beyond FY27 ▪ Low-grade ore is stockpiled and processed in the back half of the LOM Plan ▪ Lower AISC during Years 1-6 result
Slide 36: 4mtpa CIL plant with expansion capability
4mtpa CIL plant with expansion capability For personal use only ▪ Conventional 4Mtpa CIL plant Classification ▪ Designed for future expansion to 6Mtpa with minimal interruption and low CAPEX Primary Gyratory Crusher ▪ Order has been placed for SAG mill Gravity Circuit ▪ Gyratory crusher with 6Mtpa i
Slide 37: Further scope to increase production and extend LOM
Further scope to increase production and extend LOM For personal use only ▪ Future expansion in processing capacity ▪ 6Mtpa crushing circuit included in FFS design/cost ▪ Oversize 4Mtpa SAG Mill selected ▪ Design allowance for upgrade of the grinding, leaching and elution components ▪ Minimal produc
Slide 38: KOTH LOM plan gold sales profile
KOTH LOM plan gold sales profile1 For personal use only 1. Red 5 ASX Release: 15 September 2020. 38 www.red5ltd.com
Slide 39: KOTH LOM plan sensitivities
KOTH LOM plan sensitivities1 For personal use only 1. Red 5 ASX Release: 15 September 2020. 39 www.red5ltd.com
Slide 40: KOTH is in the Top gold deposits in Australia
KOTH is in the Top 20 gold deposits in Australia For personal use only Resources Reserves Mt g/t Moz Mt g/t Moz Cadia 3174.0 0.4 37.5 Cadia 1480.0 0.5 22.5 Boddington 931.1 0.6 17.4 Boddington 566.3 0.7 11.9 Golden Mile (100%) 272.6 1.4 12.0 Golden Mile (100%) 178.2 1.1 6.3 Tanami 65.5 4.3 9.1 Tanam
Slide 41: Appendix – Australian top gold deposits
Appendix – Australian top 20 gold deposits1 Resources Reserves Resources Reserves Mt g/t Moz Mt g/t Moz Mt g/t Moz Mt g/t Moz For personal use only Cadia Newcrest Sunrise Dam AngloGold Measured 32.0 0.30 0.3 Proven Measured 28.9 1.54 1.4 Proven 11.2 1.39 0.5 Indicated 3090.0 0.37 36.5 Probable 1480.