Millennium Minerals — Investor Presentation (May 2017)
24 slides from Millennium Minerals's investor presentation, May 2017
Slide 1: Moving to the next level
Moving to the next level Why Millennium is set for substantial increases in production and mine life Investor Presentation – May 2017 / Peter Cash, Chief Executive Officer 1
Slide 2: Disclaimer
Disclaimer This presentation contains only a brief overview of Millennium Minerals Limited (“Millennium”). The contents of this presentation, including matters relating to the geology of Millennium’s projects, may rely on various assumptions and subjective interpretations which it is not possible to
Slide 3: Company Overview – Investment Summary
Company Overview – Investment Summary Expansion Studies Debt-free Australian gold Currently producing ~80- ~1.3Moz resources, underway to deliver a miner on the cusp of 85,000oz pa with strong ~185,000oz reserves plus step-change in transformational growth free cash generation extensive mineralisati
Slide 4: Corporate Overview
Corporate Overview ASX Code Cash at 31 Mar’17 MOY $27.7M Shares on Issue Debt 780.9M NIL Board ASX Index Market Cap (at 21cps) Greg Bittar Non Executive Chairman Peter Lester Non Executive Director All Ords ~$165M Tim Kennedy Non Executive Director Michael Chye Non Executive Director Key Shareholder
Slide 5: Nullagine Project – Consistent and Profitable
Nullagine Project – Consistent and Profitable ► Located 185km north of Newman in the East Pilbara ► 100%-owned landholding covering 264km2 of the highly prospective and underexplored Mosquito Creek Gold Belt ► Near-new (4 years) 2Mtpa CIL processing plant ► Five mining centres with numerous open pit
Slide 6: Nullagine Project – Gearing up for Transformational Change
Nullagine Project – Gearing up for Transformational Change ► Only significant gold processing plant within 400km radius: built and paid-for ► Proven ability to bring multiple new deposits online quickly and cost effectively ► Significant success to date in discovering incremental oxide reserves: rep
Slide 7: Fresh Ore – The Fresh Opportunity
Fresh Ore – The Fresh Opportunity December 2016 Mineral Resource estimate – Including Ounces in Fresh Ore Mineral Resource Incl. Ounces in Fresh Ore Million Tonnes (Mt) Grade (g/t Au) Thousand Ounces (Koz) Category (Koz) Measured 11.02 1.3 459.7 283 Indicated 11.37 1.3 470.1 270 Inferred 9.37 1.2 35
Slide 8: Metallurgical Testwork – The Game-Changer
Metallurgical Testwork – The Game-Changer Conceptual Flowsheet Design ► Leading consultants DRA Global appointed to assist with technical and economic assessment ► Focusing on industry standard sulphide floatation solution ► Expansion study advancing on standalone, scalable 500,000tpa bulk sulphide
Slide 9: Going Deeper at Nullagine – Fresh Ore, Fresh Opportunities
Going Deeper at Nullagine – Fresh Ore, Fresh Opportunities 9
Slide 10: Bartons – The First Significant Fresh Ore Opportunity
Bartons – The First Significant Fresh Ore Opportunity ► Exceptional recent results with numerous wide, high-grade intercepts below the existing pit: ► 16m @ 5.91g/t incl. 2m @ 31.95g/t ► 8m @ 11.56g/t incl. 3m @ 29.63g/t ► 6m @ 12.69g/t incl. 2m @ 32.42g/t ► 4m @ 18.6g/t incl. 2m @ 36.19g/t ► 8m @ 9
Slide 11: Bartons – The First Significant Fresh Ore Opportunity
Bartons – The First Significant Fresh Ore Opportunity ► First-pass optimisation shows substantial additional ounces can be mined via a cut-back ► Drill results indicate potential for head grade boost which could increase production ► Cut-back to be fast-tracked to access this fresh material ► Underg
Slide 12: Golden Gate – Another Emerging Opportunity
Golden Gate – Another Emerging Opportunity Recent testwork has confirmed that deeper fresh ► Deep drill results include 12m @ 8.96g/t, 9m @ 6.63g/t, 16.8m @ 4.09g/t ore at Golden Gate can be ► Grades and widths consistent with those required for underground operations processed using conventional su
Slide 13: Golden Gate - ABC Reef Complex
Golden Gate - ABC Reef Complex ► Three high grade ore bodies all leveraging shared infrastructure ► Offers significant cost benefit ► Fresh ore at Golden Gate can be processed using standard flotation techniques. ► Entech has commenced preliminary assessment of underground mining economics ► In-fill
Slide 14: Oxide Exploration – Remains a Key Priority
Oxide Exploration – Remains a Key Priority ► Oxide exploration has been highly successful and will continue to remain a key focus ► Drilling to grow inventory and mine life continues to deliver thick, high-grade intersections across multiple prospects ► Exploration budget recently increased from $15
Slide 15: Exploration project pipeline
Exploration project pipeline STAGE PROJECTS All Nations, Roscoes, S4 Grade control Gambols Hill, Golden Eagle, Otways Optimised reserve Barton, Billjim South, Bow Resource Definition: Bells, Crossing, Hut, Majuba S3 Indicated resources/ reserves Hill, Round Hill, Shearers, Condor Northwest, Strike a
Slide 16: Camel Creek Mining Centre – Little Wonder Deposit
Camel Creek Mining Centre – Little Wonder Deposit ► Located ~25km north-east of the Processing Plant ► Mining from a series of small, shallow open pits completed first half of 2016 ► Drilling program completed targeting high-grade mineralised structures – results include: ► 8m @ 101.42g/t Au from 21
Slide 17: Camel Creek Mining Centre – Roscoes Reward Deposit
Camel Creek Mining Centre – Roscoes Reward Deposit ► Drilling completed to test for parallel mineralised structures between Little Wonder and Roscoe’s Reward ► Also to test for strike extensions to the known mineralisation at Roscoes Reward ► Results include: ► 4m @ 11.66g/t Au from 44m ► 15m @ 2.02
Slide 18: Five-Mile Creek Mining Centre – Majuba Hill
Five-Mile Creek Mining Centre – Majuba Hill ► Initial maiden Mineral Resource of 31.5 koz Au and an initial Ore Reserve of 15.7 koz Au from drilling completed in 2016 ► Follow-up drilling to test for parallel structures and extensions completed late in 2016. High grade results include: ► 9m @ 8.15g/
Slide 19: Golden Gate Mining Centre – Condor high-grade extension
Golden Gate Mining Centre – Condor high-grade extension ► Drilling along strike from the Condor deposit has defined a high grade extension to known mineralisation ► Results include: ► 6m @ 8.45g/t Au ► 19m @ 3.14g/t Au ► 10m @ 6.56g/t Au ► 5m @ 10.92g/t ► 3m @ 14.97g/t Au ► Drill planning is underwa
Slide 20: Millennium – Key Investment Takeaways
Millennium – Key Investment Takeaways Nullagine Gold Project generating consistent production and cash-flows Strong outlook for FY 2017: 80,000-85,000oz at AISC of A$1190/oz-A$1220/oz Strong balance sheet maximises free cash-flow and minimises risk – no debt Outstanding growth potential through oxid
Slide 21: Moving to the next level
Moving to the next level Why Millennium is set for substantial increases in production and mine life Investor Presentation – May 2017 / Peter Cash, Chief Executive Officer 21
Slide 22: Competent Person’s Statements and JORC Code
Competent Person’s Statements and JORC Code Mineral Resources and Ore Reserves On 15 February 2017, the Company announced an updated Mineral Resources and Ore Reserves statement reported in accordance with the JORC Code 2012, which included the below: December 2016 Mineral Resource estimate by resou
Slide 23: Nullagine Gold Project – Mineral Resource Statement (31 December 2016)
Nullagine Gold Project – Mineral Resource Statement (31 December 2016) Nullagine Gold Project - Mineral Resource Statement Measured Indicated Inferred Total Remaining Deposit Million Million Million Million Grade g/t Au Grade g/t Au Grade g/t Au Grade g/t Au Au Ounces Tonnes Tonnes Tonnes Tonnes Aga
Slide 24: Nullagine Gold Project – Ore Reserve Statement (31 December 2016)
Nullagine Gold Project – Ore Reserve Statement (31 December 2016) Proved Probable Total COG2 Prospect Au (g/t) Ore (kt) Au (g/t) Ore (kt) Au (g/t) Ore (kt) Au (g/t) Ounces Shearers > 0.58 36.4 1.8 4.4 2.9 40.8 1.9 2,500 Otways > 0.55 14.5 1.1 - 0.0 14.5 1.1 500 Little Wonder > 0.63 255.4 1.7 47.1 1.
Millennium Minerals — Investor Presentation (May 2017) on 6ix