Vault Minerals Limited · ASX:VAU
Vault Minerals — Red 5 — Investor Presentation (October 2021)
34 slides from Vault Minerals's investor presentation, Oct 14, 2021
Slide 1: Investor presentation
For personal use only Investor presentation Mark Williams 14 October 2021 www.red5ltd.com.au Page: 1
Slide 2: Competent Person's Statement and Disclaimer
Competent Person’s Statement and Disclaimer Competent Person Statements for JORC 2012 Mineral Resource and Ore Reserves For personal use only ● 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 – Op
Slide 3: Red 5 – A Standout Growth Opportunity
Red 5 – A Standout Growth Opportunity ✓ Red 5 has two gold mines in one of the world’s safest For personal use only and most prospective gold districts ● 2,555 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: 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 5: US$55 million divestment of Siana Gold Project
US$55 million divestment of Siana Gold Project ● The Siana Gold Project, owned by Philippine- For personal use only affiliated company Greenstone Resources, suspended mine operations in April 2017 ● Red 5 announced the completed sale of Siana on 21 September 2021 ● US$19M cash received ● 3.25% NSR r
Slide 6: King of the Hills – Australia's Next Major Gold Mine
King of the Hills – Australia’s Next Major Gold Mine For personal use only www.red5ltd.com.au Page: 6
Slide 7: Fully funded, de-risked, Top-10 gold deposit
KOTH - fully funded1, de-risked, Top-10 gold deposit ● Gold companies/assets (Bubble Size = Indicative Production p.a) Australia’s top 10 gold deposits For personal use only ● AISC and indicative mine reserve life of WA-based gold by Ore Reserve3,4 companies2,3 Mt g/t Moz Cadia 1400 0.4 20.0 1,700 S
Slide 8: Geology is well understood, open in all directions
KOTH - geology is well understood, open in all directions Jun-21 Mineral Resource1 Aug-20 Ore Reserve2 For personal use only 91Mt @ 1.4 g/t for 64.6Mt @ 1.2 g/t for 4.12Moz Au 2.4Moz Au ● Ore body in the contact zone of a substantial Granodiorite intrusion ● 4km long x 2km wide ● Historical understa
Slide 9: Construction is on schedule and within budget
KOTH – construction is on schedule and within budget A$M1 For personal use only Processing and infrastructure 188 Owners costs 12 Sub-total 200 Contingency 19 Sub-total 219 Mining pre-strip 7 Total (Real) capital cost 226 ● The majority of remaining project expenditure is through fixed-price contrac
Slide 10: Village fully operational
KOTH village fully operational For personal use only www.red5ltd.com.au Page: 10
Slide 11: Process plant installation commenced
KOTH - process plant installation commenced ● MACA Interquip is the EPC For personal use only Contractor ● SAG mill shell and motors lifted into place ● Majority of steelwork on site ● CIL tanks installed and being painted ● Gold room being erected ● Power Station foundations completed ● Erection of
Slide 12: All key long lead items now delivered to site
KOTH – all key long lead items now delivered to site ● All long-lead items are For personal use only on-track to arrive on site ahead of scheduled installation ● New Metso 6Mtpa gyratory crusher is now on site; ready for installation ● All components of the 15MW SAG mill are sourced; majority now on
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 Mill and Crusher delivery to site EPC full mobilisation Site construction and installation Commissioning Mine Contractor m
Slide 14: Strategic, low-cost mill in Eastern Goldfields
KOTH - strategic, low-cost mill in Eastern Goldfields High level of confidence in metallurgy: For personal use only ● ● Historical processing data (1989-2004) ● Metallurgical testwork (historical and FFS) ● Previous processing of KOTH ore at Darlot ● Conventional 4Mtpa CIL plant ● Gyratory crusher w
Slide 15: Mine plan optimises material movement over LoM
KOTH - mine plan optimises material movement over LoM Cost of Production ($A/oz) Yrs 1-6 LOM ● Ore Reserves, Life Of Mine Plan performed by: For personal use only Mining 895 908 ● Open Pit – SRK Consulting Processing 273 321 ● Underground – Entech G&A 39 46 Transport & treatment 1 1 ● Mine schedulin
Slide 16: Darlot's future to be a satellite ore source to KOTH
Darlot’s future to be a satellite ore source to KOTH ● KOTH Process Plant allows for a step- For personal use only change in Darlot’s cost base1 ● Darlot Mine Plan1 ● Redpath mobilized for initial 12-month mine development program ● Establish new mine areas and reduce reliance on remnant mining ● Da
Slide 17: Long mine life generating substantial cash flow
KOTH – long mine life generating substantial cash flow1 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: For personal use only Project cashflow $M 1,147 1,710 2,273 2,837 3,400 NPV8% $M 512 806 1,101 1,395 1,689 ● Free cashflow (after tax) of: IRR % 38.0%
Slide 18: A standout value opportunity in the Australian gold sector
A standout value opportunity in the Australian gold sector ● Red 5 EV/Reserve relative For personal use only to its peers ● Valuation of WA based-gold 1,200 companies1 ● Bubble Size = Enterprise Ramelius EV / Reserve (A$/oz) 900 Silver Lake Value Capricorn ● The planned development Bellevue of KOTH
Slide 19: Thank You
For personal use only THANK YOU Level 2, 35 Ventnor Avenue, West Perth, Western Australia 6005 Australia (61-8) 9322 4455 (61-8) 9481 5950 www.red5ltd.com.au Page: 19
Slide 20: Appendix
For personal use only Appendix www.red5ltd.com.au Page: 20
Slide 21: Transformation of Red 5
KOTH is a unique project in these uncertain times Transformation of Red 5 For personal use only 2017 Red 5 purchased Darlot and KOTH in WA 2022 Ready to emerge as Australia’s next mid-tier gold producer KOTH benefits to Western Australian economy ● Construction cost of $226 million ● 450 constructio
Slide 22: Project now fully financed through to operations
KOTH now fully financed through to operations A$175M Syndicated Facility Agreement comprising: For personal use only Facility Amount ● A$160M Senior Secured Project Loan Facility; and and Syndicate ● ● A$15M Cost Overrun and Working Capital Facility. Banks ● Syndicate Banks – Macquarie (50%), BNP Pa
Slide 23: Leadership team with strong development expertise
Leadership team with strong development expertise 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 development For personal use
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 Gold Contained Gold Classification Tonnes (000t) (g/t) Method (g/t) (000oz) Indicated 0.4-1.0 OP+UG 69,600 1.4 3,030 Inferred 0.4-1.0 OP+UG 21,100 1.6 1,090 Total 0.4-1.0 OP
Slide 25: 2.4Moz Ore Reserve
KOTH – 2.4Moz Ore Reserve1 Total KOTH Ore Reserves as at September 2020 For personal use only Cut-off JORC 2012 Tonnes Gold Contained Gold Deposit Mining Method (g/t) Classification (Mt) (g/t) (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 Proof of concept drilling confirmed gold mineralisation 500m down plunge from current UG designs 1 Mineralised stockwork penetrates at least 70m into the granodiorite from the granodiorite-ultramafic contact 1. Red 5 ASX Release: 18
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 www.red5ltd.com.au Page: 27
Slide 28: Scope to increase production and extend LOM
KOTH – scope to increase production and extend LOM ● Mintrex have confirmed SAG Mill will produce >4.7Mtpa as built For personal use only ● Red 5 believes the mill has potential to process much more ● 6Mtpa crushing circuit installed ● Oversized SAG Mill being installed ● Design allowance for upgrad
Slide 29: Exploration – numerous targets
KOTH exploration – numerous targets ● Integrated datasets have identified priority targets along For personal use only 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 ● Early years of LOM benefit from UG mining and For personal use only 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 Conventional 4Mtpa CIL For personal use only ● Hardest Ore Design Mid High plant Power Draw (kW) 9,272 10,859 12,445 ● Acquired 15MW, dual synchronous motor semi- Grind Size (P80) 150 150 150 autonomous grind (SAG) mill with VVVF drive Tonnes Per Hour
Slide 32: Darlot exploration & future ore sources
Darlot exploration & future ore sources Darlot Gold Mine 1 Cables & Mission 4 For personal use only ● Resource 13.1Mt @ 3.4g/t Au for 1.4Moz ● Combined JORC 2004 Resource of 1.5Mt ● Reserve 2.5Mt @ 2.6g/t Au for 203koz @ 3.1g/t Au for 185koz2 ● Historical drilling suggests both deposits ● 71,000m UG
Slide 33: Top Gold Deposits in Australia
Top 20 Gold Deposits in Australia Resources Reserves For personal use only 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 Mt g/t Moz Mt g/t Moz Mt g/t Moz Mt g/t Moz Mt g/t Moz Mt g/t Moz Cadia Newcrest St Ives Goldfields Sunrise Dam AngloGold For personal use only Measured 32.0 0.30 0.3 Proven Measured 5.1 2.49 0.4 Proven 4.7 2.1