Vault Minerals Limited · ASX:VAU
Vault Minerals — Red 5 — Diggers & Dealers Mining Forum 2021
34 slides from Vault Minerals's conference presentation, Aug 2, 2021
Slide 1: Diggers & Dealers Presentation
For personal use only Diggers & Dealers Presentation Mark Williams, Managing Director ASX Code: RED 2 August 2021 www.red5ltd.com
Slide 2: Competent Person's Statement and Disclaimer
Competent Person’s Statement and Disclaimer For personal use only Competent Person Statements for JORC 2012 Mineral Resource and Ore Reserves The information in this presentation that relates to the Mineral Resources at the Siana open pit is extracted from the report titled Siana Gold Project – Open
Slide 3: Red 5 – A standout growth opportunity
Red 5 – A standout growth opportunity ✓ For personal use only Red 5 has two gold mines in one of the world’s safest and most prospective gold districts ▪ 2,816 sq km of granted and pending tenements ✓ King of the Hills (KOTH) is a major Australian gold deposit – Top 10-largest Ore Reserves in Austra
Slide 4: Fully funded, de-risked, Top-10 gold deposit
KOTH - fully funded1, de-risked, Top-10 gold deposit For personal use only ▪ Gold companies/assets (Bubble Size = Indicative Production p.a) Australia’s top 10 gold deposits by Ore Reserve3,4 ▪ AISC and indicative mine reserve life of WA-based gold companies2,3 Mt g/t Moz 1,700 Cadia 1400.0 0.4 20.0
Slide 5: Red 5 Limited – Corporate profile
Red 5 Limited – Corporate profile For personal use only Our Company Vision “To be a successful multi-operational exploration and mining company, providing benefits to all stakeholders, through the consistent application of technical excellence, and responsible and sustainable industry practices.” Sh
Slide 6: King of the Hills – Australia's Next Major Gold Mine
For personal use only King of the Hills – Australia’s Next Major Gold Mine 6
Slide 7: Geology is well understood, open in all directions
KOTH - geology is well understood, open in all directions For personal use only Jun-21 Mineral Resource1 Aug-20 Ore Reserve2 91Mt @ 1.4 g/t for 64.6Mt @ 1.2 g/t for 4.12Moz Au 2.4Moz Au ▪ Ore body in the contact zone of a substantial Granodiorite intrusion ▪ 4km long x 2km wide ▪ Historical understa
Slide 8: Strategic, low-cost mill in Eastern Goldfields
KOTH - strategic, low-cost mill in Eastern Goldfields For personal use only ▪ High level of confidence in metallurgy: Classification ▪ Historical processing data (1989-2004) ▪ Metallurgical testwork (historical and FFS) Primary Gyratory Crusher ▪ Processing KOTH ore at Darlot Gravity Circuit ▪ Conve
Slide 9: Site activities underway, equipment being delivered
KOTH - site activities underway, equipment being delivered For personal use only A$M1 Processing and infrastructure 188 Owners costs 12 Sub-total 200 Contingency 19 Sub-total 219 Mining pre-strip 7 Installation of CIL tanks Total (Real) capital cost 226 ▪ The majority of remaining project expenditur
Slide 10: Village is fully operational
KOTH - village is fully operational For personal use only 10 www.red5ltd.com
Slide 11: Process plant steel erection commenced
KOTH - process plant steel erection commenced For personal use only ▪ MACA Interquip is the EPC Contractor ▪ Plant design complete ▪ All platework and steelwork packages awarded – all fabricated in WA ▪ 77% of steelwork (by mass) delivered to site ▪ CIL tanks being installed ▪ Mill foundations compl
Slide 12: Delivery of long lead items to site
KOTH - delivery of long lead items to site For personal use only ▪ All long-lead items are on- track to arrive on site ahead of scheduled installation ▪ All components of the 15MW SAG mill are completed; majority now on site ▪ The mill shell will arrive in Perth in August ▪ New Metso gyratory crushe
Slide 13: First gold on-track for June 2022 quarter
KOTH - first gold on-track for June 2022 quarter For personal use only 2021 2022 MQ JQ SQ DQ MQ JQ SQ DQ Debt financing Construction and mine permits Bulk earthworks and Village EPC full mobilisation Mill and Crusher delivery to site Site construction Mine Contractor mobilisation Commissioning Produ
Slide 14: Mine plan optimises material movement over LoM
KOTH - mine plan optimises material movement over LoM For personal use only Cost of Production ($A/oz) Yrs 1-6 LOM ▪ Ore Reserves, Life Of Mine Plan performed by: Mining 895 908 ▪ Open Pit – SRK Consulting ▪ Underground – Entech Processing 273 321 ▪ Mine scheduling being undertaken by Orelogy G&A 39
Slide 15: Long mine life generating substantial cash flow
KOTH – long mine life generating substantial cash flow1 For personal use only Pre-tax Unit $2,000/oz $2,250/oz $2,500/oz $2,750/oz $3,000/oz At a gold price of A$2,500/oz: Project cashflow $M 1,147 1,710 2,273 2,837 3,400 NPV8% $M 512 806 1,101 1,395 1,689 ▪ Free cashflow (after tax) of: IRR % 38.0%
Slide 16: US$55 million divestment of Siana Gold Project
US$55 million divestment of Siana Gold Project For personal use only ▪ The Siana Gold Project, owned by Philippine- affiliated company Greenstone Resources, suspended mine operations in April 2017 ▪ Red 5 announced a Binding Agreement for the sale of Siana on 29 July 20211 ▪ US$19M cash payable on c
Slide 17: Darlot's future to be a satellite ore source to KOTH
Darlot’s future to be a satellite ore source to KOTH For personal use only ▪ KOTH Process Plant allows for a step-change in Darlot’s cost base1 ▪ Mintrex Plant Capacity Study confirmed KOTH process plant capacity of 4.7Mtpa as built ▪ Darlot Mine Plan1 ▪ Redpath to undertake initial 12-month mine de
Slide 18: A standout value opportunity in the Australian gold sector
A standout value opportunity in the Australian gold sector For personal use only Red 5 EV/Reserve relative to its peers 1,200 Ramelius ▪ Valuation of WA based- gold companies1 Silver Lake EV / Reserve (A$/oz) ▪ Bubble Size = Enterprise 900 Bellevue Value Capricorn Gold Road The planned development o
Slide 19: KOTH is a unique project in these uncertain times
KOTH is a unique project in these uncertain times Growth of the Australian gold industry For personal use only ▪ Top 10 Australian gold mine by Ore Reserve ▪ 16 year LOM, average 176kozpa in Years 1-6 ▪ Flexibility to expand Mill throughput, extend underground mine life beyond 4 years Benefits to We
Slide 20: Thank you
For personal use only Thank you 20 www.red5ltd.com ASX Code: RED
Slide 21: Appendix
For personal use only 21 Appendix
Slide 22: Now fully financed through to operations
KOTH now fully financed through to operations For personal use only Facility Amount and ▪ A$175M Syndicated Facility Agreement comprising: ▪ A$160M Senior Secured Project Loan Facility; and Syndicate Banks ▪ A$15M Cost Overrun and Working Capital Facility. ▪ Syndicate Banks – Macquarie (50%), BNP Pa
Slide 23: Leadership team with strong development expertise
Leadership team with strong development expertise For personal use only Red 5 has a strong and capable team, with many years of mining and development experience both at Red 5 and previously at multi-billion international development projects – the Company is well placed to deliver the KOTH developm
Slide 24: 4.1Moz Mineral Resource
KOTH - 4.1Moz Mineral Resource1 For personal use only Total Open Pit & Underground KOTH Resource as at Jun 2021 Cut-off Mining Tonnes Gold Contained Gold ▪ Cut-off date for inclusion of Classification drilling data and mining (g/t) Method (000t) (g/t) (000oz) depletion as at 19 February Indicated 0.
Slide 25: 2.4Moz Ore Reserve
KOTH - 2.4Moz Ore Reserve1 For personal use only Total KOTH Ore Reserves as at September 2020 Cut-off JORC 2012 Tonnes Gold Contained Deposit Mining Method (g/t) Classification (Mt) (g/t) Gold (Moz) KOTH Open pit 0.39 Probable 58.5 1.1 2.1 KOTH Underground 1.60 Probable 2.4 2.3 0.2 Rainbow Open pit
Slide 26: Mineralisation open in all directions
KOTH - mineralisation open in all directions For personal use only White Walker Lemonwood South Pit Drilling bulk stope New Structural Corridor Proof of concept drilling confirmed gold mineralisation 500m down plunge from current UG designs 1 Mineralised stockwork penetrates at least 70m into the gr
Slide 27: Satellite Deposits – Mineral Resource of 308koz
KOTH - Satellite Deposits1 – Mineral Resource of 308koz For personal use only 1. Red 5 ASX Release: 6 May 2020 2. Red 5 ASX Release: 1 May 2019 27 www.red5ltd.com
Slide 28: Scope to increase production and extend LoM
KOTH - scope to increase production and extend LoM For personal use only ▪ Future expansion in processing capacity ▪ 6Mtpa crushing circuit installed ▪ Oversized 4Mtpa SAG Mill selected ▪ Design allowance for upgrade of the grinding, leaching and elution components ▪ Minimal interruption to future p
Slide 29: Exploration – numerous targets
KOTH exploration – numerous targets ▪ Integrated datasets have identified priority targets For personal use only along the Tarmoola and Ursus Fault corridors ▪ Tarmoola Fault Corridor ▪ Poorly tested outside of the mine area ▪ Bulk of historical AC/RAB drilling ineffective (failed to reach top of fr
Slide 30: Mine plan focussed on maximising value
KOTH - mine plan focussed on maximising value For personal use only ▪ Early years of LOM benefit from UG mining and processing of high-grade ore ▪ Potential to extend UG mining beyond FY27 ▪ Low-grade ore is stockpiled and processed in the back half of the LOM Plan ▪ Lower AISC during Years 1-6 resu
Slide 31: 15MW SAG mill supports higher throughput
KOTH - 15MW SAG mill supports higher throughput For personal use only Hardest Ore Design Mid High ▪ Conventional 4Mtpa CIL plant ▪ Acquired 15MW, dual Power Draw (kW) 9,272 10,859 12,445 synchronous motor semi- autonomous grind (SAG) mill Grind Size (P80) 150 150 150 with VVVF drive Tonnes Per Hour
Slide 32: Darlot exploration & future ore sources
Darlot exploration & future ore sources For personal use only Darlot Gold Mine 1 Cables & Mission 4 ▪ Resource 11.8Mt @ 3.4g/t Au for ▪ Combined JORC 2004 Resource of 1.5Mt @ 3.1g/t Au for 185koz2 1.3Moz ▪ Historical drilling suggests both ▪ Reserve 2.7Mt @ 2.8g/t Au for 239koz deposits remain open
Slide 33: Top Gold Deposit in Australia
Top 20 Gold Deposit in Australia For personal use only Resources Reserves Mt g/t Moz Mt g/t Moz Cadia 3184.0 0.4 36.1 Cadia 1400.0 0.4 20.0 Boddington 836.2 0.6 16.2 Boddington 566.3 0.7 11.9 Golden Mile (100%) 272.6 1.4 12.0 Golden Mile - KCGM 178.2 1.1 6.3 Tanami 76.9 4.1 10.1 Tanami 36.2 5.0 5.9
Slide 34: Australian Top Gold Deposits
Australian Top 20 Gold Deposits1 Resources Reserves Resources Reserves Resources Reserves For personal use only Mt g/t Moz Mt g/t Moz Mt g/t Moz Mt g/t Moz Mt g/t Moz Mt g/t Moz Sunrise Dam AngloGold Cadia Newcrest St Ives Goldfields Measured 27.3 1.62 1.4 Proven 11.1 1.52 0.5 Measured 32.0 0.30 0.3