Capricorn Metals Ltd · ASX:CMM
Capricorn Metals — Shareholder Meeting (November 2018)
26 slides from Capricorn Metals's shareholder meeting presentation, Nov 15, 2018
Slide 1: Karlawinda Gold Project
Karlawinda Gold Project Presented by: Peter Thompson, Chief Operating Officer AGM November 2018
Slide 2: Disclaimer & Competent Persons Statement
Disclaimer & Competent Persons Statement CAUTIONARY STATEMENT – FORWARD LOOKING STATEMENTS This announcement may contain certain “forward-looking statements” which may not have been based solely on historical facts, but rather may be based on the Company’s current expectations about future events an
Slide 3: Corporate Information
Corporate Information ASX Code CMM Shares on issue 747.9m Share price as at 14th November 2018 $0.059 Market cap as at 14th November 2018 $44.1m Cash as at 30th September 2018 $2.7m Total unlisted options 51.8m CMM Share Price (12 Months) $0.10 $0.08 $0.06 $0.04 $0.02 $0.00 Volume 10,000,000 - capme
Slide 4: Corporate
Corporate Board of Directors Debra Bakker Non-Executive Chair • Project financier with more than 25 years’ experience in the resources industry. (MAppFin., BBus. (FinAcc), Grad • Previously senior positions with Commonwealth Bank of Australia, Standard Bank London Group and Barclays Capital Dip FINS
Slide 5: The Opportunity at Karlawinda
The Opportunity at Karlawinda 1. 1,765km2 of 100% owned tenure in premier “low risk” mining jurisdiction with proven geological endowment • Two large scale gold mineralised systems discovered at Karlawinda to date 2. Impressive Resource & Reserve growth from active exploration programs • 1.5Moz Tota
Slide 6: Karlawinda, First Class WA Location
Karlawinda, First Class WA Location Premier mining jurisdiction • 60km south east of Newman in Western Australia • 1,765km2 of 100% owned exploration and mining tenements • Road access via the Great Northern Hwy • Multiple flights per day Perth to Newman • Mining engineering, suppliers, services cap
Slide 7: A Compelling Development Opportunity
A Compelling Development Opportunity De-risked by Feasibility & Optimisation Studies Feasibility Optimisation Economics (as at June 2018) (1) 3.0Mtpa plant to produce ~100,000oz pa over an initial 8.5 year mine life • Project revenue of A$1,408m, pre-tax operating surplus of A$556m • AISC of A$1,038
Slide 8: Upfront Capital Cost Summary
Upfront Capital Cost Summary October 2017 May 2018 • Formal tender process completed Feasibility Optimised Estimates Estimates • GR Engineering Services (ASX:GNG) appointed contractor under LOI Item (A$) (A$) Processing Plant (EPC) (3.7Mtpa oxide/ 3.0Mtpa • Lump sum fixed turnkey price primary ore)
Slide 9: Open Pit Mining
Open Pit Mining Bibra Deposit - Large tonnage, low strip ratio Bibra May 2018 open pit design: • Improved 4-staged design • Life of Mine strip ratio 4.8:1 • Favourable geotechnical conditions, HW overall slope ~47o, FW ~25o Mining contract tender process completed, LOI awarded to SMS Mining Services
Slide 10: Open Pit Mining
Open Pit Mining Bibra Deposit - Large tonnage, low strip ratio Optimised pit design and mining schedule significantly enhances project value • Additional mine life allows a 4-stage pit design • Feasibility scheduled “front-end” waste movements to achieve conservative rates of vertical advance, now m
Slide 11: Metallurgy & Processing
Metallurgy & Processing Conventional processing, high recoveries • Conventional 3Mtpa CIL circuit – New optimised flowsheet • 3.7Mtpa throughput during oxide/laterite processing • Single stage crushing • SAB milling - 4.8MW SAG, 4.8MW Ball • Large gravity circuit • 92.1% LOM recovery, with 45% gravi
Slide 12: Infrastructure
Infrastructure Conventional West Australian gold project • Proposed long-term power purchase agreement (BOO). • Preferred optimised solution • Onsite gas-fired power station • Fuelled by natural gas from a new lateral off the GGP • Integrated Waste Landform (IWL) Tailings Storage facility (TSF) • Ne
Slide 13: Optimised Operating Cost Estimates (as at June 2018)
Optimised Operating Cost Estimates (as at June 2018) LOM Cost / LOM Cost / Tonne Ounce Karlawinda Forecast Quarterly AISC (A$) LOM Cost (processed) (recovered) 1800 1600 Item (A$M) (A$/t) (A$/oz) 1400 1200 Mining (Owner Operator) $389.6 $14.1 $473.1 1000 800 Processing & Maintenance $299.0 $10.8 $36
Slide 14: Project Financing
Project Financing Conventional debt and equity Project Financing • Combination of Debt (55-65%) and Equity (35-45%) • Debt process to be finalised and completely de-risked prior to equity • Formal process underway, debt solution imminent • Preference is for traditional bank project financing • Prude
Slide 15: Capricorn Orogen - Regional Geology
Capricorn Orogen - Regional Geology Karlawinda – A new gold discovery in a premier mining district • First-mover opportunity in emerging Archaean greenstone belt • Analogous with Plutonic Dome (+10Moz) • Long-lived structural domain, with key major structures • Operationally and logistically simple
Slide 16: Karlawinda Gold Project - Geology
Karlawinda Gold Project - Geology Unlocking the potential of a new gold camp • Proven camp-scale multi million ounce potential, partially obscured by thin 1-10m of sand cover • New interpreted greenstone area identified from soils sampling & mapping, 2018 (1) • Limited early stage exploration outsid
Slide 17: Bibra Mineral Resource and Ore Reserve Growth
Bibra Mineral Resource and Ore Reserve Growth Successful exploration yielding high value results Bibra Southern Corridor Easky Measured & Indicated Mineral Resources - 44.8Mt @ 1.0 g/t 1,375,000oz Inferred Mineral Resources – 6.2Mt @ 0.7g/t 150,000oz Total Mineral Resources – 51Mt @ 0.9g/t 1,525,000
Slide 18: Resource Growth Target Tramore
Resource Growth Target • 34m @ 1.07 g/t from 41m • 19m @ 1.63 g/t from 78m Tramore • 12m @ 2.54g/t from 129m • 19m @ 1.51g/t from 119m Potential significant new zone – Oxide potential • 20m @ 1.20g/t Au from 155m • 20m @ 1.00g/t Au from 49m • 17m @ 1.27 g/t from 59m • 14m @ 1.63g/t Au from 184m • 15
Slide 19: Bibra Gold Deposit - 1.5Moz and Growing
Bibra Gold Deposit - 1.5Moz and Growing Continuous, structurally controlled mineralised system • Major Archaean mineralised system comprising multiple large scale ore zones • Broad (up to 50m thick) “shoots” developed as low angle mineralised zones • Multiple trends only partially drill tested • Sho
Slide 20: Bibra Gold Deposit -1.5Moz and Growing
Bibra Gold Deposit -1.5Moz and Growing Predictable, structurally controlled mineralised system • Bibra Deposit currently defined over a 2km strike length • Drilled +800m down-dip and remains open • Positive deep drilling results (April 2018) • Mineralisation best developed in large dilational shoots
Slide 21: Conceptual Upside Karlawinda Gold Project - Exploration Target
Conceptual Upside Karlawinda Gold Project - Exploration Target Geological understanding crystallising • Litho-geochemical studies provide the catalyst for recent breakthroughs in geological interpretation • Large scale geological concepts tested by government co-funded drilling • Bibra & Francopan h
Slide 22: Appendices:
Appendices: • Mineral Resource • Ore Reserve • Metallurgy & Processing
Slide 23: Mineral Resource – Karlawinda Gold Project
Mineral Resource – Karlawinda Gold Project May 2018 upgrade Capricorn Metals Ltd has updated the Mineral Resource Estimate at its 100%- BIBRA GOLD DEPOSIT MINERAL RESOURCE ESTIMATE owned Karlawinda Gold Project in WA. The new resource has been updated (as of May 2018) to include a further 14,000m of
Slide 24: Ore Reserve – Bibra Deposit
Ore Reserve – Bibra Deposit May 2018 PROVED RESERVES PROBABLE RESERVES TOTAL RESERVES Deposit Tonnes Grade Ounces Tonnes Grade Ounces Tonnes Grade Ounces ('000 t) (g/t Au) ('000 oz) ('000 t) (g/t Au) ('000 oz) ('000 t) (g/t Au) ('000 oz) Bibra pit 9,603 1.1 337 16,915 1.0 529 26,518 1.0 866 Sth Corr
Slide 25: Metallurgy & Processing
Metallurgy & Processing Conventional Processing, High Recoveries Feasibility Comminution Testwork Test Ore Units Result Recovery Testwork Oxide 89 SMC (A*b) Grade Scoping Study FS (June 2017) Fresh 30 Test Ore Type Units (g/t) Recovery (%) Recovery (%) Oxide kWh/t 13.0 BBWI (P80 grind size) (P80 gri
Slide 26: To create superior shareholder value through discovery, acquisition and development
“To create superior shareholder value through the discovery, acquisition and development of mineral deposits using industry leading practice.” Capricorn Metals Ltd (ASX: CMM) Level 1, 28 Ord Street West Perth, WA enquiries@capmet.com.au +61 8 9212 4600 www.capmetals.com.au ABN: 84 121 700 105
Capricorn Metals — Shareholder Meeting (November 2018) on 6ix