Theta Gold Mines Ltd. · ASX:TGM
Theta Gold Mines — Non-Deal Roadshow (January 2019)
38 slides from Theta Gold Mines's roadshow presentation, Jan 21, 2019
Slide 1: A Sustainable Gold Miner in the Making
For personal use only A Sustainable Gold Miner in the Making Presentation London Roadshow January 2019 Bill Guy - Chairman ASX: TGM
Slide 2: Disclaimer and Competent Persons Statement
Disclaimer and Competent Persons Statement For personal use only • This Presentation has been prepared by and issued by Theta Gold Mines Limited (ASX:TGM) (Theta or the Company) is to assist in informing interested parties about the Company and should not be considered as an offer or invitation to s
Slide 3: Corporate
For personal use only Corporate 2
Slide 4: Corporate Overview
Corporate Overview Corporate For personal use only Capital structure 85% of register owned by Top 20 Ordinary shares ~334 million Fineway Creation Ltd (Since 2018) 19.92% Listed Options (TGMO), 2yr expiration $0.30 exercise (m) 31.4 Tasman Funds Management (related to Director, Since 2015) 9.80% Unl
Slide 5: Experienced Team
Experienced Team Corporate For personal use only Theta Gold Mines has new directors and shareholders that are dedicated to bring the company to production Key Personnel Position Expertise and Role Bill Guy Chairman Mr Guy is a professional Mining executive and geologist with over 25 years’ experienc
Slide 6: Investment Overview
Investment Overview Corporate For personal use only • As an ASX junior explorer , Theta Gold Mines has one of the largest JORC 2012 resources. • Gold 5.75 Moz discovered so far with 2 Moz increase from the 2018 exploration program. • 620 km2 of ground holding across the East Transvaal Gold field (4
Slide 7: The Big Three: TGME In The Making
The Big Three: TGME In The Making Corporate For personal use only • 1886 – Current. Witwatersrand (surrounds Johannesburg, currently mining up to 4km underground) TGME Gold Projects • 1881 – Current. Barberton Goldfield (450km East of Johannesburg, Greenstone belt, currently mining up to 2km undergr
Slide 8: 2018 Delivery - JORC Resource now 5.8Moz
2018 Delivery ‐ Corporate For personal use only JORC Resource now 5.8Moz, up 57% in 1 year Resource Growth • Resource growth of 57% in the 6 last twelve months (+2.0Moz) JORC Resource (Moz 5 • Effective cost of US$15/oz to 4 prove up Indicated Resources Au) 3 • Open‐cut Resources of 7.44Mt @ 2 June'
Slide 9: 2019 - A Strong Year for Growth
2019 – A Strong Year for Growth Corporate For personal use only Gold Investment and New direction and 2019 Growing Value South Africa development strategies • New shallow discoveries via • Build shallow open cut resources systematic exploration • Gold Price expect to be strong • Mining Reserve ounce
Slide 10: Starter Mine #1: Theta Hill Open Cut
For personal use only Starter Mine #1: Theta Hill Open Cut 9
Slide 11: Starter #1 Historical Mine production
Starter #1 Historical Mine production For personal use only One of the 40+ open‐cut targets generated from historical mining/exploration data currently being digitised from paper records for the first time in history. 10
Slide 12: Theta Hill Resource
Theta Hill Resource Theta Hill Open Cut For personal use only Diluted Diluted Diluted Resource Open Pit Au Content % Reef grade Width Tonnes Classification Mine Resource g/t cm Mt Kg K Oz Theta Hill Upper Theta 1.13 100 0.185 210 6.7 1% Indicated Theta Hill Lower Theta 4.26 100 0.587 2 500 80.4 13%
Slide 13: First Open Cut - Theta Hill Positive Scoping Study
First Open Cut – Theta Hill Open Cut For personal use only Positive Scoping Study • Mill feed of 3.6Mt @ 4.77g/t Au (553koz contained, 509koz recovered) • LOM of 7.6 years, 67kozpa average @ AISC US$569/oz1 • Peak Capital of US$16m, including US$11m for CIL plant refurbishment • Post‐Tax/Royalty NPV
Slide 14: High Grade Open-cut Plan
High Grade Open‐cut Plan Theta Hill Open Cut For personal use only • Theta Hill to provide early mill feed for the refurbished Metallurgical plant DG4 • Low cost and high margin is the desired Theta North outcome from feasibility work planned over 2018/early 2019. • Board and Management focused on r
Slide 15: Theta Hill Cross section
Theta Hill Cross section Theta Hill Open Cut For personal use only Theta Hill drill statistics to date • No. of Boreholes 297 • Total Metres 13,021 m • Avg hole depth 44 m • Nominal drill spacing 45 m • No. of assays including QAQC 14,323 14
Slide 16: Concept Mine Planning
Concept Mine Planning Theta Hill Open Cut For personal use only • Low cost stripping of overburden • Minimal drill and blast predicted due to very broken ground cost effective & lesser environmental impact • In‐pit emplacement of waste during ‘bench‐style’ contour mining • Relatively flat‐lying go
Slide 17: Surface Miners
Surface Miners Theta Hill Open Cut For personal use only • Simple Mining high productivity up to 4,300 t/hr (Low Operating Cost) • Selective Mining ‐ Reduced dilution maximised ore recovery, reduced gold losses • Less energy costs ‐ eliminate primary crushing and drill and blast operations • Less ha
Slide 18: Soft Rock Mining
Soft Rock Mining Theta Hill Open Cut For personal use only • Flexibility: Greater selectivity, improved productivity and reduced dilution. Can work in steep terrain with variable contours Comparison of costs from different rock‐types (courtesy Wirtgen/Minxcon). 17
Slide 19: Reduced Capital Plant
Reduced Capital Plant Theta Hill Open Cut For personal use only Refurbishment Plans in progress • Preliminary cost estimate of US$11m for refurbishment and upgrade to a 480Ktpa plant (last operated in 2015) • New crushing and Milling circuits, additional CIL circuit tanks, refurbishment of elution a
Slide 20: Plant Layout
Plant Layout Theta Hill Open Cut For personal use only Planned layout of upgraded facilities. Existing facilities last running in 2015. Plant photos as at May 2018. 19
Slide 21: Growing Open Cut Resources
For personal use only Growing Open Cut Resources 20
Slide 22: Many Targets
Many Targets Growing Open For personal use only Cut Resources One of the 40+ open‐cut targets generated from historical mining/exploration data currently being digitised from paper records for the first time in history. 21
Slide 23: More Open-Cut Drilling Targets
More Open‐Cut Drilling Targets Growing Open For personal use only Cut Resources Vaalhoek Mine Frankfort Mine CDM Columbia Hill Pilgrims Rest Theta Hill Chi Mine Beta Mine Desire Mine TGME Plant Browns Hill 2 km 22
Slide 24: Columbia Hill strong drill results
2018 Delivery – Growing Open For personal use only Columbia Hill strong drill results Cut Resources November 2018 Drill Results BHID From To Width Au g/t Au Comments Au Content Back calc in situ Iota m m m Cm.g/t Reef g/t over 25cm RCBI12B 43.00 59.00 16.00 3.27 Bevetts 5,233 13.08 Incl 48.00 58.00
Slide 25: More: Vaalhoek Open-cut
Growing Open More: Vaalhoek Open‐cut For personal use only Cut Resources • Potential second high grade open‐cut mine • Resource of 0.62Mt @ 16.9g/t (335koz), 82% inferred1 • Drilling planned for 2019 to upgrade to primarily Indicated Resources and plan for Reserves (JORC, 2012). • Located within 20k
Slide 26: Shallow Underground Development pipeline
For personal use only Shallow Underground Development pipeline 25
Slide 27: Rietfontein Mine
Rietfontein Mine Shallow Underground For personal use only Development pipeline • JORC Resource of 2.88Mt @ 8.42g/t Au for 780Koz (31% Indicated, 69% Inferred) • Dewatering to enable underground access and refurbishment for drilling & metallurgical sampling Open along strike • Approximately 350ML de
Slide 28: Rietfontein Mine 2019 Forward Planning
Rietfontein Mine Shallow Underground For personal use only Development pipeline 2019 Forward Planning: • Planned access to Level 4 established through dewatering and refurbishment of underground decline access • Bulk sampling for metallurgical testwork • Establishment of drill cuddies to facilitate
Slide 29: Other Underground Opportunities
Other Underground Shallow Underground For personal use only Opportunities Development pipeline Mineral Resources for Select Underground Opportunities • Numerous additional underground Resource Mining Mine Au Content Grade Tonnes opportunities identified Classification UG Mine Reef Au g/t Mt Kg koz F
Slide 30: Investment Summary
For personal use only Investment Summary 29
Slide 31: Why Theta Gold Mines
Why Theta Gold Mines Investment Summary For personal use only • Exceptional Resources • High grades and recoveries expected from shallow gold reefs • Existing Mining Rights and Permitted Plant • Permitting of open pit in progress • Low CAPEX – Strong Scoping Study economics • Community supportive an
Slide 32: Building Value
Building Value Investment Summary For personal use only Feasibility & Reserves drilling Aim to be valued based on future Evaluate & Drill for Theta Hill develop production indicated/Inferred Open‐cut earnings Resources other (67kozpa1 supported by a nearby high initial plan) High grade targets grade
Slide 33: Appendices
For personal use only Appendices 32
Slide 34: Resources JORC 2012 - Underground Operations
Resources JORC 2012 For personal use only Mineral Res ources for the Stonewall Underground Operations as at Septem ber 2018 Reef Reef Stope Reef Stope Resource Stope Grade Content Au Content Mine Reef Grade Width width Tonnes Tonnes Classification g/t g/t cm cm cmgt Mt Mt Kg koz Meas ured Frankfort
Slide 35: Resources JORC 2012 - Open Pit Operations
Resources JORC 2012 For personal use only Mineral Res ources for the Stonewall Open Pit Operations as at Septem ber 2018 Reef Reef Resource Reef Width Content Au Content Open Pit Mine Reef Grade Tonnes Classification g/t cm cmgt Mt Kg koz Herm ans burg Elluvial 1.79 0 0 0.505 905 29.1 DG1 Elluvial 1
Slide 36: Resources JORC 2012 - Tailings Dams
Resources JORC 2012 For personal use only Mineral Res ources for the Stonewall Tailings Dam s as at Septem ber 2018 Resource Surface Operation Reef Tonnage Gold Grade Gold Content Notes: Classification Mt g/t Kg koz 1. Underground cutoff is 160cm.g/t, open pit Glynn’s Lydenburg Tailings 1.211 0.80 9
Slide 37: South Africa: Emergence of Established Market
SOUTH AFRICA For personal use only Emergence of Established Market • South Africa has produced more gold than any other country • It is estimated over 2 Billion ounces have been produced from South African goldfields • The mining industry employs over 500,000 people and contributes around 10% of GDP
Slide 38: Thank you
For personal use only Thank you Rob Thomson Bill Guy Managing Director Chairman Mobile: +61 409 843 963 Phone: +61 9460 2021 www.thetagoldmines.com robt@thetagoldmines.com billg@thetagoldmines.com 37