Xtract Resources Plc · LSE:XTR
Xtract Resources — Investor Presentation (April 2018)
21 slides from Xtract Resources's investor presentation, April 2018
Slide 1: Manica Gold Project Mozambique
Manica Gold Project Mozambique April 2018
Slide 2: An Important Disclosure
Xtract Resources PLC An Important Disclosure The information contained in this document, including any information and opinions contained or discussed in any accompanying oral presentation, question and answer session and any other materials distributed in connection with this document (the ‘Present
Slide 3: Corporate: Board of Directors
Corporate Board of Directors Colin Bird Executive Chairman Colin Bird is a chartered mining engineer with multi commodity mine management experience in Africa, Spain, Latin America and in the Middle East. He has been the prime mover in a number of public listings in the UK, Canada and South African
Slide 4: Mozambique: Good Place To Work
Mozambique Good Place To Work Favourable political and legal environment Multi-Party Democracy since 1994 Stable jurisdiction Mature mining legal regime No local ownership requirements Upgrading of National Ports and Power underway High GDP (>5%) growth rate Location of Manica Project
Slide 5: Manica Gold Project: Established Area
Manica Gold Project Established Area Situated in the Odzi-Mutare-Manica Greenstone Belt. Over 2 million oz of gold previously mined 45,9 km² concession 1,262 m oz SAMREC compliant gold resources Immediate open pit mine close to Definitive Feasibility Study Only 10% of concession drill test
Slide 6: Manica Gold Project: The Focus
Manica Gold Project The Focus 1.257moz SAMREC compliant Au Resources (678koz measured and indicated) Low cost, near-term ready-to-build production Metallurgical risk solved by fine grinding and pressure oxidation Additional nearby prospects for further exploration success, namely Guy Fawke
Slide 7: DFS – Key Financial Parameters
Manica Gold Project DFS – Key Financial Parameters Extraction Method – Conventional Open Pit Life of Mine – 7 years Total Ore Tonnes Processed – 3.3Mt (42,000 tmp) Total Ounces Produced – 215 koz (~31,000 ozpm) Recovered Grade – 2.62 g/t Gold Price – US$1,262 per oz Project Payback – 2 y
Slide 8: Manica Exploration Potential
Manica Exploration Potential Regional Exploration Potential (within current concession) Only 10% of the 4,300 ha has been drilled Mainly pre-drilling targeting has taken place along the southern and northern share zone between Dot’s Luck and Fair Bride and further East (14km) and between Guy Faw
Slide 9: Alluvial Mining: What are Alluvial deposits?
Alluvial Mining What are Alluvial deposits? Natural concentration of heavy minerals caused by the effect of gravity on moving particles Various actions known as weathering can dislodge gold from its hard rock containment Once the gold is liberated it migrates by gravity & water flow into large
Slide 10: Alluvial Mining: Mining Contractors
Alluvial Mining Mining Contractors Sino Minerals Established alluvial mining contractor appointed to mine the eastern half of the Company's alluvial interest in the Manica Concession Agreement entitles Explorator to 25% of the gold mined, which amounts to a net 19% after Mining Production Tax
Slide 11: Alluvial Mining: Sub-contracted
Alluvial Mining Sub-contracted • Alluvial mining in place with three contract groups • Production building up to planned 50 kg per month • 5 year mine life • Xtract receives monthly income based on turnover Sino Minerals Alluvial operation 10
Slide 12: Fair Bride: Overview
Fair Bride Overview Main deposit – Fair Bride Situated in the Odzi-Mutare-Manica Greenstone Belt of Mozambique 1.262moz SAMREC compliant Au Resources (782koz measured and indicated) Well drilled - a total of 229 drill holes (31,662m) has been completed on the Fair Bride deposit accounting for
Slide 13: Fair Bride: Simple Project
Fair Bride Simple Project Lower Risk – Lower Cost – Quick into production Elimination of underground technical mining risk and gold locked up in the crown pillar Instead of 4 years open pit and 8 years underground mining; expectation is 7 years of open pit mining with a 7.2 strip ratio milling 4
Slide 14: Fair Bride: Base Case
Fair Bride Base Case Gold price USD 1270/oz 480,000 of ore tonnes per annum mined 7 years of mine life Average grade 2.26 g/t mined Stripping Ratio 7.2:1 All up break even cost USD908/oz Capital USD35 million NPV at 8.5% discount USD53 million 13
Slide 15: Fair Bride: Optimised Pit Views
Fair Bride Optimised Pit Views Before Geological Overview After Initial Mine Key Parameters DFS Optimised DFS Design 14
Slide 16: Fair Bride: Insight
Fair Bride Insight The mineralised strike of the ore body is approximately 1,040m Well understood mineralization and geological model shows excellent continuity Bounded by a fault in the west and low grade mineralization in the east, open on dip Mainly pre-drilling exploration has taken plac
Slide 17: Fair Bride: Before optimised pit view
Fair Bride Before optimised pit view This is how it looks Project area extending west – Manica Project area- 5km approximately 85% of tenement from town in next river remains unexplored valley Good gravel road Processing Mining and Engineering Area of mining is Facility Site workshop and office rela
Slide 18: Fair Bride: Exploration Potential
Fair Bride Exploration Potential Drilling has targeted the below resources: Guy Fawkes (1350m strike, 120m depth) 98 drill holes for 14000m, of which 54 holes comprise the resource Bounded by a fault in the west open to the east and on dip Dots Luck (750m strike, 100m depth) Regional Exploration
Slide 19: Compelling Investment Case
Compelling Investment Case Global Gold Developing Mines Relative Strengths Simple open pit Good mining jurisdiction Alluvial Mining Income Generation whilst mine construction in progress Major exploration potential and Fair Bride depth continuity At end of first operation, paid for plant a
Slide 20: Corporate Information
Corporate Information Number of ordinary shares in issue: 350,560,684 Current share price : 2.3p AIM code: XTR Current Market Capitalisation: GBP 8.06M Xtract Resources Plc 7/8 Kendrick Mews, London, United Kingdom, SW7 3HG Tel: + 44 (0) 203 416 6471 | Fax: + 44 (0) 207 589 7806 www.xtractresources.
Slide 21: Thank you
Thank you 7/8 Kendrick Mews London, United Kingdom, SW7 2JE T: +44 (0) 20 3416 6471 F: +44 (0) 20 7589 7806 E: info@xtractresources.com www.xtractresources.com
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