Chalice Mining Limited · ASX:CHN
Chalice Mining — Chalice Gold Mines — Mine Africa Conference London 2011
30 slides from Chalice Mining's conference presentation, Dec 5, 2011
Slide 1: ASX cover letter: Corporate Presentation
For personal use only 5 December 2011 Australian Securities Exchange Limited Exchange Plaza 2 The Esplanade Perth WA 6000 Dear Sirs Corporate Presentation The attached presentation will be presented in its entirety at the Mine Africa Conference in London today, and an abbreviated version will be pre
Slide 2: Developing a High Grade Gold Mine in Eritrea
For personal use only Developing a High Grade Gold Mine in Eritrea C Corporate P Presentation i December 2011 TSX: CXN ASX: CHN 1
Slide 3: Disclaimer and Competent Persons Statement
Disclaimer and Competent Persons Statement For personal use only This presentation does not include all available Information on Chalice Gold Mines Limited and should not be used in isolation as a guide to investing in the Company. Any potential investor should also refer to Chalice Gold Mines Limit
Slide 4: Chalice Summary
Chalice Summary ASX: CHN; TSX: CXN For personal use only Mine Development and Exploration in Eritrea High‐grade, g g , low cost ggold development p project p j (Koka)*: ( ) Open pittable 760,000 oz Probable Reserve @ 5.1g/t Au Forecast gold production of 104,000 oz p.a. over 7 years for Koka alo
Slide 5: Corporate Snapshot
Corporate Snapshot ASX: CHN; TSX: CXN For personal use only Capital Structure Share Price Movement Share price A$0.30 Shares on issue 250 million Market capitalisation ~A$75 A$75 million Options on issue 7 million Debt ‐ Cash ~A$6 A$6.7 7 million Board & Senior Management Substantial Shareholders Ti
Slide 6: Peer Comparisons
Peer Comparisons For personal use only 6 Reserve Grade Reservve Grade (g//t) 5 4 3 2 1 0 Centamin Perseus Cluff Banro Adamus Avocet Teranga Noble Semafo Chalice 900 800 Value oz) eserve (C$/o 700 600 500 400 EV / Re 300 200 100 ‐ Chalice Banro Centamin Adamus Perseus Teranga Cluff Noble Avocet SEMAF
Slide 7: NPV vs Market Cap
NPV vs Market Cap For personal use only 300 1.2 Cash balance 250 1 NPV at 8% $AUD per sshare $AUD milllions) Market Caap 200 0.8 150 0.6 M 100 ($ 04 0.4 Current share price 50 0.2 0 0 $1,600 $1,800 $2,000 Gold Price ($US) Cash balance: Approximately US$ 9 million + US$ 32 million ENAMCO payment (due
Slide 8: The Arabian Nubian Shield
The Arabian Nubian Shield For personal use only Centamin Barrick Sukari Jabal Sayid 15 year 10 year 500 koz k pa AuA 61 kt pa Cu La Mancha Chalice Hassai Zara Nevsun Sunridge Bisha 6 year Asmara 7 year 156 koz pa + VMS 104 koz pa Au 5 year >10 year Cu Zn Ag Au Au, Ag, Cu, Zn Long mining history (>
Slide 9: Current Ground Position
Current Ground Position For personal use only 1372 sq km 8
Slide 10: Koka Gold Deposit
For personal use only Koka Gold Deposit 9
Slide 11: Koka Feasibility – Key Metrics
Koka Feasibility – Key Metrics For personal use only Gold price base case US$900 O milled Ore ill d 4 6 Mt 4.6 Grade 5.10g/t Au Strip ratio 10.4:1 Gold recovery 96.30% Life of mine 7 years Mill throughput 700,000tpa Average annual gold production 104,000 oz Total gold produced 730,000 oz Capex US$12
Slide 12: Koka Gold Mines – Development Strategy
Koka Gold Mines – Development Strategy For personal use only Q4/2013 production target based on original feasibility Process and schedule optimisation Plant Site Dump pA through EPC contract strategy and Dump B ROM Pad contractor solutions (not gold‐ Open plated....’fit for purpose’) Pit EPC C
Slide 13: Koka – Feasibility Study Cost Profile
Koka – Feasibility Study Cost Profile For personal use only Operating Cost Estimates Average mining costs (incl. pre‐strip) $/t $ mined 2.01 Processing cost $/t milled 24.78 General and administration $/t milled 7 36 7.36 Refining charges $/t milled 0.63 12
Slide 14: Koka – Feasibility Study Production Profile
Koka – Feasibility Study Production Profile For personal use only 160 900 Enamco (40%) 140 800 120 700 600 CHN (60%) Production 100 ('000 oz's) 500 80 400 Cash Costs 60 P 300 40 200 20 osts 100 oz) Cash co (US$/o ‐ ‐ 2014 2015 2016 2017 2018 2019 2020 2021 Financial years ended 30 June 2.2 years pay
Slide 15: Koka generates significant cash for Chalice
Koka generates significant cash for Chalice For personal use only 2014 2015 2016 2017 2018 2019 2020 2021 Total US$’m US$’m US$’m US$’m US$’m US$’m US$’m US$’m US$’m Revenue 38 139 120 101 90 76 76 76 716 Cash Costs (19) (23) (22) (22) (23) (17) (16) (8) (150) Royalties y ((2)) ((6)) ((6)) ((5)) ((5
Slide 16: Koka Gold Mine – Financing Strategy
Koka Gold Mine – Financing Strategy For personal use only Seeking a majority debt financing solution Aim is to limit equity component of financing Multiple interested financiers identified Chalice share of overall development costs ~US$100 million Net proceeds from ENAMCO sale may be contr
Slide 17: Koka Development Schedule
Koka Development Schedule For personal use only Permitting, engineering, construction contracts and financing Construction Production d C l d Year Calendar Y 2011 2012 2013 2014 EPC Financing Construction Completion of Shareholders Mining > 100,000 oz production Contract (April) Ramp up construction
Slide 18: Eritrean Exploration Portfolio
Eritrean Exploration Portfolio For personal use only Strategic Location Properties p straddle deepp crustal‐scale regional g structure – gold ‘fairway’ Multiple high‐grade gold targets Koka South Debre Tsaeda Konate–Alidar K t Alid Zara North prospects Potential high tonnage, tonnage
Slide 19: Koka-Konate Corridor – 2011 Drilling
Koka‐Konate Corridor – 2011 Drilling For personal use only 18
Slide 20: Koka South – Long Section
Koka South – Long Section For personal use only Narrow high grade system Drill‐indicated strike length of 250m and open to south and at depth Drill results include: 1m @168g/t Au 5m @86.2g/t Au 4m @29.6g/t Au 8 @ 7.36g/t 8m 7 36 / Au A Diamond drilling ongoing until the end of 2011 *
Slide 21: Debre Konate – a new style of mineralisation?
Debre Konate – a new style of mineralisation? For personal use only Located 3km south of Koka within Koka‐Konate corridor Coincident soil gold & lead anomalies, artisanal workings and IP resistivity target g Multiple narrow mineralised veins intersected within broad alteration envelope Poten
Slide 22: Zara Tenements – Other Targets
Zara Tenements – Other Targets For personal use only Zara North Prospects Koka Konate‐‐Fah Konate Fah‐‐Alidar Debre Tsaeda Prospect – Soil Gold Geochemistry Debre Tsaeda Soil Gold Geochemistry on Analytic Signal Aeromagnetics 21
Slide 23: Mogoraib North Exploration Licence
Mogoraib North Exploration Licence For personal use only Located ~10 km north of Nevsun’s Bisha VHMS P j with Project i h similar i il geological l i l setting i VTEM survey completed mid 2011 ~3825 line kilometres kil Numerous bedrock conductor targets identified – possible ibl VHMS Follow‐
Slide 24: Summary
Summary For personal use only Low cost, high grade gold developer Production planned for late 2013 Strategy to organically grow attributable production to >100,000 oz per year Aggressive exploration program underway 23
Slide 25: Analyst Coverage
Analyst Coverage For personal use only Australia Europe Bell Potter Ambrian A b i Partners P Limited Li i d Trent Allen Adam Kiley E: tcallen@bellpotter.com.au T: +612 9231 0880 E: adam.kiley@ambrian.com T: +44 20 7634 4777 Paterson Securities Limited Simon Tonkin E: STonkin@psl.com.au T: +618 9225
Slide 26: Forward Looking Statements
Forward Looking Statements For personal use only This document may contain forward‐looking information within the meaning of Canadian securities legislation and forward‐looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 (collectively, forward‐
Slide 27: Corporate Contact Details
Corporate Contact Details For personal use only Tim Goyder Dr Douglas Jones Joanne Jobin Executive Chairman Managing Director Investor Relations – North America M: +61 418 942 908 M: 61 438 872 090 M: +1 647 964 0292 tgoyder@chalicegold.com djones@chalicegold.com jjobin@chalicegold.com Chalice Gold
Slide 28: Appendix 1: Eritrea Mining Act
Appendix 1: Eritrea Mining Act For personal use only Prospecting licence One year, not renewable & not transferrable Royalties Maximum size 100km2 5% for precious metals and 3.5% for other metallic Licence fee (US)$33.33 minerals Annual rental (US)$3.33/km2 Government Participation Exploration licen
Slide 29: Appendix 2: Joint Ownership Agreements with ENAMCO
Appendix 2: Joint Ownership Agreements with ENAMCO For personal use only Signed g Julyy 27,, 2011. Chalice first in country to conclude partnership agreement with ENAMCO (as required by Mining Act). Represents a “green light” for financing & construction of the Koka G ld Project, Gold P j t subj
Slide 30: Appendix 3: Eritrea Quick Facts
Appendix 3: Eritrea Quick Facts For personal use only Independent since 1993 Politics: transitional single party Republic Capital: Asmara Area: 121,144 square kilometers Population: ~5.9 Million Culture: 45% Islamic, 45% Coptic Christian, 10% Other Languages: Tigrinya, Arabic, Tigre, A
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