Aurelia Metals Limited · ASX:AMI
Aurelia Metals — Diggers & Dealers 2014
34 slides from Aurelia Metals's conference presentation, Aug 5, 2014
Slide 1: Fully Funded Development - August 2014
For personal use only FULLY FUNDED DEVELOPMENT HIGH-GRADE GOLD-LEAD-ZINC PRODUCTION COMMENCING THIS QUARTER EXCEPTIONAL EXPLORATION UPSIDE AUGUST 2014 G O L D | L E A D | Z I N C | S I LV E R | C O P P ER 1
Slide 2: Disclaimer
DISCLAIMER • This presentation has been prepared by Aurelia Metals Limited (“AMI” or the “Company”). It should not be considered as an offer or For personal use only invitation to subscribe for or purchase any securities in the Company or as an inducement to make an offer or invitation with respect
Slide 3: Compliance Statement - Listing Rules 5.16-5.18
COMPLIANCE STATEMENT LISTING RULES 5.16-5.18 This investor presentation contains forecast rates for the production of gold, lead and zinc from the Hera Project. For personal use only These production targets were developed under a Definitive Feasibility Study (‘DFS’) as announced to the ASX on the 1
Slide 4: Hera and Nymagee Projects
HERA AND NYMAGEE PROJECTS FULLY FUNDED HIGH-GRADE DEVELOPMENT WITH MAJOR EXPLORATION UPSIDE For personal use only STAGE 1: HERA DEPOSIT (AMI-100%) – DEVELOPMENT COMPLETING • Near term, high grade gold-lead-zinc-silver production • First production this quarter • Average annual production exceeds 50k
Slide 5: Cobar Superbasin Deposits
COBAR SUPERBASIN DEPOSITS SCHEMATIC For personal use only COBAR BASIN DEPOSITS – HIGH GRADE + LONG LIFE COBAR SUPERBASIN METAL INVENTORY 6.4Moz Au, 200Moz Ag, 2.2Mt Cu, 4Mt Zn, 3Mt Pb Australia NSW 5
Slide 6: Corporate Snapshot
CORPORATE SNAPSHOT $0.45 1.6 Share Price Volume (millions shares) For personal use only CAPITAL STRUCTURE Volume AMI Share Price $0.40 1.4 Shares on issue (ASX:AMI) 328.3 million $0.35 1.2 Options & Performance Rights 5.6 million $0.30 1.0 Market Capitalisation (at 37cps) $121 million $0.25 0.8 Est.
Slide 7: Development - Infrastructure Established
HERA DEVELOPMENT - INFRASTRUCTURE ESTABLISHED For personal use only Hera Village 7
Slide 8: Development - Boxcut and Portal
HERA DEVELOPMENT - BOXCUT AND PORTAL For personal use only Hera Boxcut and Portal 8
Slide 9: Development - Underground Ahead of Schedule
HERA DEVELOPMENT - UNDERGROUND AHEAD OF SCHEDULE For personal use only Hera Underground 9
Slide 10: Development - Mill Commissioning Underway
HERA DEVELOPMENT - MILL COMMISSIONING UNDERWAY For personal use only Hera Mill – July 2014 10
Slide 11: Development - Mill Commissioning Underway
HERA DEVELOPMENT - MILL COMMISSIONING UNDERWAY For personal use only Hera Mill – July 2014 11
Slide 12: Development - Process Facility
HERA DEVELOPMENT PROCESS FACILITY CONCENTRATE LEACH TANKS GRINDING AND GRAVITY MODULE For personal use only 34% GOLD RECOVERY (TOTAL 94%) 60% GRAVITY GOLD RECOVERY 47% SILVER RECOVERY TERTIARY CRUSHING FLOTATION CIRCUIT 56% LEAD + ZINC BULK CONCENTRATE PRIMARY AND SECONDARY 91% LEAD RECOVERY CRUSHIN
Slide 13: Mine Development
HERA MINE DEVELOPMENT • Decline commenced January 2013. Underground advance to ~4365m (at 28th July 2014) For personal use only • Development is ahead of schedule, allowing re-optimised mine scheduling which brings forward higher grade production, leading to greater financial and operational flexibi
Slide 14: Key Metrics - Stage 1 Hera Development
HERA DEVELOPMENT For personal use only KEY METRICS – STAGE 1 HERA DEVELOPMENT Resources 2.44Mt @ 4.1g/t Au, 2.8% Pb, 3.8% Zn and 16.7g/t Ag Reserves 1.8Mt @ 3.6g/t Au, 2.5% Pb, 3.5% Zn and 15g/t Ag Initial Mine Life 7.3 years Project Revenue (Stage 1 Only) >$510 million Estimated Average Annual Prod
Slide 15: Stope Delineation Drilling
HERA DEVELOPMENT STOPE DELINEATION DRILLING For personal use only HRUD055 2m @175g/t Au, 15% Pb+Zn HRUD003 8m @6.9g/t Au, 1% Pb+Zn HRUD023 4.2m @0.6g/t Au, 17% Pb+Zn HRUD059 HRUD005 4.3m @15.6g/t Au, 19.3% Pb+Zn 7m @7.4g/t Au, 14% Pb+Zn HRUD046 11m @16.6g/t Au, 24% Pb+Zn HRUD070 HRUD033 3.1m @19g/t
Slide 16: Gold-Lead-Zinc Deposit Exploration Potential
HERA GOLD-LEAD-ZINC DEPOSIT EXPLORATION POTENTIAL For personal use only 3.9m @ 10.8g/t Au, 11.8% Pb+Zn 3.1m @ 80.9g/t Au, 2.7% Pb+Zn 2m @13.64g/t Au, 3.3% Pb+Zn 4.2m @ 17g/t Au, 2.8% Pb+Zn 12m @ 6.7g/t Au, 4.7% Pb+Zn 11m @ 6.15g/t Au, 3.7% Pb+Zn 8m @ 1.2g/t Au, 15.7% Pb+Zn 7.0m @ 9.3g/t Au, 13g/t Ag
Slide 17: Hera vs Peak Scale Comparison
HERA GOLD-LEAD-ZINC DEPOSIT EXPLORATION POTENTIAL PEAK GOLD MINES COBAR HERA DEPOSIT For personal use only SCHEMATIC LONG SECTION SCHEMATIC LONG SECTION Hera: 2.44Mt @ 4.1g/t Au, 6.6% Pb+Zn Western Lead Zinc 0.9Mt @ 6.8g/t Au, 2% Pb+Zn 500m Peak (pre-mining) 5.2Mt @ 9.1g/t Au, 0.8% Cu POTENTIAL? 100
Slide 18: Exploration - Hera North Lens
HERA EXPLORATION HERA NORTH LENS • High grade For personal use only intersections outside of Drill Holes outside the 4.0m @ 163g/t Ag, 13.6% Pb+Zn Hera Resource the Hera Resource HRD058 No Significant Results NSR • Intersection of intense Strong Mineralisation 11m @ 107g/t Ag, 20% Pb+Zn massive lead
Slide 19: Exploration - Hera North Lens
HERA EXPLORATION HERA NORTH LENS For personal use only HRD059W1 19
Slide 20: Prospectivity - Hera-Nymagee Corridor
PROSPECTIVITY HERA-NYMAGEE CORRIDOR For personal use only • Hera-Nymagee corridor remains highly prospective • The Hera & Nymagee deposits are both marked by prominent gravity highs • Numerous gravity targets now defined by detailed ground gravity along 20km of strike • Potential for Hera-Nymagee co
Slide 21: Nymagee Copper Deposit
NYMAGEE COPPER DEPOSIT 3D ISOMETRIC • Historical production ~ 420,000t @ 5.8% Cu For personal use only • AMI discovered high grade copper in Oct 2010 • Maiden JORC Nymagee Resource in Dec 2011 • 8.1Mt @ 1.2% Cu, 0.3% Pb, 0.7% Zn and 9g/t Ag • Open to the north and at depth • Represents an analogue t
Slide 22: Nymagee Copper Deposit vs CSA
NYMAGEE COPPER DEPOSIT vs CSA SCHEMATIC CROSS SECTION COMPARISON - LOOKING NORTH For personal use only SHALLOW MAIN SHAFT COPPER ZONE • Nymagee evolving as Pb-Zn-Ag Lens (off section) the upper part of a MAIN LENS ‘CSA’ style Cobar -200m -200m MAIN LENS MASSIVE SULPHIDE deposit >2.5% Cu Low-Grade Cu
Slide 23: Nymagee vs CSA - Open to North and at Depth
NYMAGEE COPPER DEPOSIT vs CSA OPEN TO NORTH AND AT DEPTH – NYMAGEE LONG SECTION For personal use only • Deep drilling at Nymagee confirms continuity of copper mineralisation >700m • Nymagee North mineralisation increasing intensity with depth • Multiple untested DHEM conductor targets at depth 23
Slide 24: Hera-Nymagee Summary
HERA-NYMAGEE SUMMARY FULLY FUNDED HIGH-GRADE DEVELOPMENT WITH EXPLORATION UPSIDE For personal use only • Hera Project set to deliver: • >$510 million in revenue in Stage 1 (Hera) • Operating Costs of ~A$395/ounce Au* after Pb-Zn credits • Initial Mine Life of 7.3 years • Hera will establish AMI as t
Slide 25: Growth - Building a Mid-Tier Mining Company
For personal use only GROWTH Aurelia Metals Limited ASX:AMI 2 Corporation Place ORANGE NSW 2800 T: +61 2 6363 5200 E: office@aureliametals.com www.aureliametals.com BUILDING A MID-TIER MINING COMPANY 25
Slide 26: Appendix 1: Resources and Reserves
APPENDIX 1: RESOURCES AND RESERVES For personal use only MINERAL RESOURCE ESTIMATE- HERA DEPOSIT - JUNE 2011 NSR Cu Pb Zn Au Eq Contained Au Category Tonnes (A$) Au g/t Ag g/t % % % (g/t) Ozs Eq Indicated 2,113,000 243 4.2 17.0 0.2 2.8 3.9 9.2 Inferred 330,000 207 3.5 14 0.1 2.3 3.3 7.5 Total 2,444,
Slide 27: Appendix 2: Gold Equivalent Calculations - Hera DFS & Reserve
APPENDIX 2: GOLD EQUIVALENT CALCULATIONS – HERA DFS & HERA RESERVE For personal use only This presentation makes references to the Hera Ore Reserve, DFS outputs and metal equivalents. It is the Company's opinion that all the elements included in the metal equivalents calculation have a reasonable po
Slide 28: Appendix 3: Gold Equivalent Calculations - Hera Resource
APPENDIX 3: GOLD EQUIVALENT CALCULATIONS – HERA RESOURCE For personal use only This presentation makes a number of references to metal equivalents. These metal equivalent values refer to those included with Hera Resource Estimate released to the ASX on 2nd June 2011. It is the Company's opinion that
Slide 29: Appendix 4: Board of Directors
APPENDIX 4: BOARD OF DIRECTORS For personal use only Partner of PricewaterhouseCoopers Australia (Coopers & Lybrand) for 19 years specialising in the provision of Anthony Wehby corporate finance advice. Anthony is based in Sydney and maintains a consulting practice providing advice on Non-Executive
Slide 30: Appendix 5: Hera Development DFS - September 2011
APPENDIX 5: HERA DEVELOPMENT DFS – SEPTEMBER 2011 For personal use only HERA DFS 3D view of Hera Mine Design showing mine capital development, final Diluted Reserve (tonnes) 1,875,918 stope design and CRF fill. Diluted Reserve Grade g/t Au (on gold equivalent basis) 7g/t Au Eq. Net Smelter Retur
Slide 31: Appendix 6: Aurelia Senior Management
APPENDIX 6: AURELIA SENIOR MANAGEMENT BUILDING AN EXPERIENCED OPERATIONS TEAM For personal use only Dean Fredericksen – Chief Operations Officer (COO) Dean has been closely involved on the assessment and Feasibility of the Hera and Nymagee Projects since 2009 and joined Aurelia as COO in March 2011.
Slide 32: Appendix 7: Cobar Superbasin Deposits
APPENDIX 7: COBAR SUPERBASIN DEPOSITS For personal use only Pb-Zn-Ag rich COOLER HOTTER Cu rich 32
Slide 33: Appendix 8: Glencore Funding Structure
APPENDIX 8: GLENCORE FUNDING STRUCTURE For personal use only Facility A Limit: A$20 million Converting Note Facility Conversion: Convertible at AMI’s option at $0.251 Interest Rate: 3M AUD BBSW + 4% Use of Funds: Hera Development, Nymagee feasibility study and development, working capital Maturity D
Slide 34: Appendix 9: Competent Persons Statements
APPENDIX 9: COMPETENT PERSONS STATEMENTS Competent Persons Statement – Exploration Results For personal use only The information in this report that relates to Exploration Results is based on information compiled by Rimas Kairaitis, who is a Member of the Australasian Institute of Mining and Metallu