Theta Gold Mines Ltd. · ASX:TGM
Theta Gold Mines — Investor Presentation (May 2019)
26 slides from Theta Gold Mines's investor presentation, May 16, 2019
Slide 1: 6 Moz Resource, first mining reserve & open cut Feasibility Study Results
THETA GOLD MINES LIMITED ASX: TGM, TGMO 6 Moz Resource, first mining reserve & open cut Feasibility Study Results May 2019 ASX: TGM
Slide 2: Disclaimer and Competent Persons Statement
Disclaimer and Competent Persons Statement This announcement has been prepared by and issued by Theta Gold Mines Limited (ASX:TGM) to assist in informing interested parties about the Company and should not be considered as an offer or invitation to subscribe for or purchase any securities in the Com
Slide 3: Forward looking and cautionary statements
Forward looking and cautionary statements This announcement may refer to the intention of Theta Gold Mines regarding estimates or future events which could be considered forward looking statements. Forward looking statements are typically preceded by words such as “Forecast”, “Planned”, “Expected”,
Slide 4: Situated in South Africa controlling our own goldfield
Situated in South Africa controlling our own goldfield TGME Goldfields (owned by Theta Gold Mine’s subsidiaries, from/near TGME Gold Projects surface ‐ flat reef systems) 1873 – WWII, 1980s, 90s… South Africa • 1886 – Current. Witwatersrand (surrounds Johannesburg, currently mining up to 4km undergr
Slide 5: Mining Rights & 6Moz Resources
Mining Rights & 6Moz Resources Northern tenements 620sqkm tenements Open Cut Theta Project Southern tenements (MR83) Theta Gold Mines holds approximately 620km2 of tenements, predominantly Mining Rights Global Resource increased to 6Moz Au (44.8Mt @ 4.18g/t Au), with a 30% increase for open cut
Slide 6: Corporate Overview: technical board & supportive register
Corporate Overview: technical board & supportive register Capital structure 85% of register owned by Top 20 Ordinary shares ~381.4 million Fineway Creation Ltd (Since 2018) 17.59% Listed Options (TGMO), 2yr expiration $0.30 exercise (m) 31.4 Zenith (H.K) Holding Limited (Since 2019) 12.23% Unlisted
Slide 7: Feasibility Study Explained
Feasibility Study Explained Subject to Permitting and funding approvals 6 ASX: TGM
Slide 8: Headline numbers – Theta Project Feasibility Study
Headline numbers – Theta Project Feasibility Study Initial 2 years to recover 91,050 oz Au at rate of 45,525 oz per annum Average annual EBITDA over 5 years ~USD20 million (39% Margin) Average All‐in Sustaining Cost over 5 years USD764/oz Average LoM gold recovery/yield at 91.6% Payback period 1.2 y
Slide 9: Theta Project Feasibility Study Background
Theta Project Feasibility Study Background Open Cut Theta Project startup Feasibility Study (“FS”) (May 2019) was limited to Indicated Resources within Mining Right (“MR”) 83 – only 16.7% of OC resources The study was completed based on initial Ore Reserve within MR83 of 205.0 Koz Au (2.31Mt @ 2
Slide 10: Theta Project Feasibility: Minimal CAPEX, near-term production
Theta Project Feasibility: Minimal CAPEX, near‐term production Unlocking large 6Moz resource base: starting from open cut mining Open Cut Theta Project – startup Feasibility Study Near term open cut ramp‐up priorities Total gold recovered over 5 years 201Koz @ 40Kozpa Application for additional
Slide 11: Theta Project Feasibility Study Production Summary
Theta Project Feasibility Study Production Summary Production Summary over 5 years Total Ore Reserve Tonnes mined 2.31 Mt Total Inferred Mineral Resources mined 0.211 Kt Average Mined Grade 2.71 g/t Strip Ratio (tonnes waste: tonnes ore) 13.4 Processing rate (design rate) 500,000oz per annum LOM gol
Slide 12: Theta Project Feasibility – Capital Cost
Theta Project Feasibility – Capital Cost Total peak funding of ~USD29m (over the 10 months of construction/pre‐production) Direct plant capital of USD17m including USD8m for mechanical and USD4.4m for construction/engineering costs. New elution/gold room circuit. 11 ASX: TGM
Slide 13: Theta Project Feasibility – Cashflow
Theta Project Feasibility – Cashflow Strong free cashflow generation post construction, total USD65.7m over LoM (post tax, costs) The Company aims to increase ore reserves and obtain additional TSF to extend LoM Pay back 1.2 years as LoM EBITDA ~USD100m 12 ASX: TGM
Slide 14: Theta Project Feasibility – AISC
Theta Project Feasibility – AISC LOM AISC averaging USD764/oz Simple crush/grind and standard CIL processing with high recovery (>91%) Operating cashflow to self‐fund for multiple pit openings as year 3 and 4 higher AISC reflects maximum depth at Theta Hill and a lower initial mining grades at
Slide 15: Theta Project Feasibility – Mining
Theta Project Feasibility – Mining Modified terrace mining with partial waste‐backfill, low cost method due to relatively flat‐lying ore seams and favorable topography Geotechnical evaluation demonstrates little to no drill/blast required Simple and efficient method using bulldozers, excavator
Slide 16: More Near Term Open Cut Resources
More Near Term Open Cut Resources 15 ASX: TGM
Slide 17: More Theta Project open-cut potential
More Theta Project open‐cut potential Only 16.7% of group OC resource in mine plan to date and only 57% of current Indicated Resources Open‐cut resources have increased by 30% since 2018 to 1.3Moz, further potential defined Target to further increase the 870Koz at Theta Hill and drilling Vaalh
Slide 18: TGM Growth Trajectory: Towards 100koz+
TGM Growth Trajectory: Towards 100koz+ Other OC + high grade UG mines Additional OC resources from rest >100kozpa of MR83/341 Theta Hill + Columbia Hill ore Vaalhoek OC and (MR83 only) Rietfontein/Beta Theta Expanded, UG next focus >50kozpa South Theta + Columbia Hill Theta Project starter OC Open C
Slide 19: Investment Snapshot
Investment Snapshot First ~200 Koz Feasibility Study: o Starting point proof of concept o Positive Project Economics – Total Revenue USD253m (current ~200 Koz Ore Reserve) o All‐in Sustaining Cost USD764/ounce gold (lowest quartile RSA) o Low Capex Project – USD29m Peak Funding (Initial Mining Res
Slide 20: Thank You
Thank You Theta Gold Mines Ltd Rob Thomson Managing Director Bill Guy Chairman ASX: TGM, TGMO www.thetagoldmines.com robt@thetagoldmines.com billg@thetagoldmines.com 19 ASX: TGM
Slide 21: Appendix A New Mineral Resources
Appendix A New Mineral Resources 20 ASX: TGM
Slide 22: Resources JORC 2012 - Global
Resources JORC 2012 ‐ Global Notes: 1. Columns may not add up due to rounding. 2. Gold price used for the cut-off calculations is USD1,500/oz 3. UG Mineral Resources are reported at a cut-off of 160 cm.g/t, open pit at 0.5 g/t and 0.35 g/t, tailings and rock dumps at 0.35 g/t. 4. Fault losses of 5%
Slide 23: Resources JORC 2012 – Open Pits / Underground
Resources JORC 2012 – Open Pits / Underground Underground Open Pits 1 Refer to ASX Announcement on 16 May 2019. 22 ASX: TGM
Slide 24: Theta Project Ore Reserves (MR83 only)
Theta Project Ore Reserves (MR83 only) Mineral Resource Category in Grade Reef Tonnes Au Content Pit LoM Plan g/t kt kg oz Probable Browns Hill 3.24 564 1,826 58,699 Probable (Columbia Hill) 2.54 1,253 3,189 102,513 Probable Theta Hill 2.76 493 1,362 43,798 Total 2.76 2,310 6,377 205,010 The Ore Res
Slide 25: Total Theta Project Mineral Resources
Total Theta Project Mineral Resources Reef Reef Mineral Resource Reef Width Content Au Content Notes: Open Pit Mine Reef Grade Tonnes Classification 1. Theta Project (Theta Hill, Browns Hill and Iota) cut‐off is g/t cm cm.g/t Mt Kg koz Theta Hill & Browns Hill Shale 1.02 200 204 0.439 402 12.9 0.35
Slide 26: Theta Project Feasibility – Study inputs & derivation
Theta Project Feasibility – Study inputs & derivation Feasibility Study sections: Responsible parties The Mineral Resources Minxcon (Pty) Ltd (“Minxcon”) (Johannesburg) Probable Ore Reserve and detailed monthly mining and processing Minxcon (Johannesburg) schedule, derived from primarily Indicated M