Orinoco Gold — Investor Presentation (July 2017)
25 slides from Orinoco Gold's investor presentation, July 2017
Slide 1: Faina Goldfields Project, Central Brazil
Investor Presentation – July 2017 Faina Goldfields Project, Central Brazil A strategic partnership to unlock one of Brazil’s last untapped greenstone belts
Slide 2: Disclaimer, Forward-Looking Statements and Competent Person's Statement
Disclaimer, Forward-Looking Statements and Competent Person’s Statement Forward-Looking Statements This presentation may include forward looking statements. Forward looking statements are only predictions and are subject to risks, uncertainties and assumptions which are outside the control of Orinoc
Slide 3: Investment Highlights
Investment Highlights ► Faina Goldfields Project, central Brazil – a highly prospective 200km2 ground position encompassing the majority of a greenstone belt which has had virtually no modern exploration ► Strategic partnership with leading global gold miner AngloGold Ashanti to unlock the value of
Slide 4: Corporate – Strengthened Board
Corporate – Strengthened Board BOARD OF DIRECTORS ASX Code OGX Brian Thomas, Chairman Shares on Issue 497.6 million Geologist/Mineral Economist with +25 years’ executive and non-executive corporate experience in listed companies, corporate stockbroking, investment banking, funds 233.1 million (Liste
Slide 5: Corporate – Strengthened Management Team
Corporate – Strengthened Management Team Management team with extensive, hands-on operational experience MANAGEMENT Craig Dawson, Chief Executive Officer Mining Engineer with 30+ years experience in the Australian and international mining industry, with a proven track record in developing and operat
Slide 6: Strategic Partnership with AngloGold Ashanti
Strategic Partnership with AngloGold Ashanti Strategic partnership with a leading global gold miner ► AGA secured ~17% stake in Orinoco via A$5.9M investment in February 2017 at A$0.07 per share ► Major global gold producer: 3.6Moz produced in 2016 ► Long-term miner in Brazil with 8 current mines in
Slide 7: Faina Greenstone Belt – A Major Opportunity in Goiás State
Faina Greenstone Belt – A Major Opportunity in Goiás State A highly prospective global gold province ► Significant gold mineralization currently being mined from greenstone belts within Goiás State ► Major mines include • AngloGold’s Crixás Mine (total resource base of 3.6Moz @ 4.3g/t Au, with past
Slide 8: Faina Goldfields Project – Exploration Potential
Faina Goldfields Project – Exploration Potential ► WMC sampling (1992-2001): • 14,727 samples from stream sediment sampling covering the entire greenstone belt • Chip sampling: 3,713 samples • Drilling: 18,182m ► Troy conducted detailed exploration from 2004 to 2007: • Soil sampling: lines every 400
Slide 9: AngloGold Exploration JV – Two-Pronged Exploration Strategy
AngloGold Exploration JV – Two-Pronged Exploration Strategy ► Greenfields exploration: Regional greenfields exploration to unlock the outstanding potential of the Faina Greenstone Belt • Opportunity for multi-million ounce Tier One gold deposits • Initial focus on Eliseo prospect: +10km long anomaly
Slide 10: Faina Greenfields Targets – Eliseo
Faina Greenfields Targets – Eliseo ► Large gold anomaly (+10km) ► Gold associated with conglomerate Eliseo packages ► Rock chip samples up to 22g/t Au ► Geochemistry anomaly coincident with geophysical anomaly Sierra ► Previous drilling* Cascavel • 33m @ 4.22g/t Au • 28m @ 3.96g/t Au ► Two additiona
Slide 11: Faina Brownfields Targets – Sertão
Faina Brownfields Targets – Sertão ► Maiden JORC 2012 Mineral Resource estimate completed June 2017 • Measured, Indicated and Inferred Resource of 223,111t @ 6.9 g/t Au for 49,268oz contained gold* ► Mineralisation remains open down-dip ► First-pass pit optimisations being undertaken to assess poten
Slide 12: Faina Brownfields Targets – Antena/Xupé
Faina Brownfields Targets – Antena/Xupé ► Shallow extensions to old pits being followed up: • 44m @ 1.48g/t Au (from 11m) including 23m @ 2.4g/t (from 16m) and 6m @ 4.48g/t (from 33m)* • located 440m down-plunge from old Xupé pits in Antena Pit eroded anticline ► Geophysics program planned as part o
Slide 13: Cascavel Gold Mine – Overview
Cascavel Gold Mine – Overview ► Trial mine development initially commenced Q2 2015 ► Cascavel processing plant commenced production Q3 2016 – capable of 90-100ktpa ► Mine development and processing suspended Q4 2016 ► Operational reviews undertaken post-suspension by external consultants • Mining Pl
Slide 14: Cascavel Gold Mine – Operational Enhancements
Cascavel Gold Mine – Operational Enhancements ► Initial trial mining campaign provided important information on the optimal mining and processing strategy ► Implementation of extensive operational and strategic improvements underway – aimed at increasing mechanisation, reducing dilution and boosting
Slide 15: Cascavel Gold Mine – Near-Mine Exploration Opportunities
Cascavel Gold Mine – Near-Mine Exploration Opportunities ► Gold mineralization open to all sides ► New upper and lower gold mineralization identified by drilling ► Numerous historical “garimpeiro” workings identified close to Cascavel * Refer to Orinoco ASX Announcement - 21 Nov 2013 for full detail
Slide 16: Summary – Key Investment Takeaways
Summary – Key Investment Takeaways ► Faina Goldfields Project offers exceptional opportunity for large-scale gold discoveries ► Orinoco controls a greenstone belt with minimal modern exploration ► Strategic partnership with AngloGold Ashanti provides the springboard and momentum to advance explorati
Slide 17: Faina Goldfields Project, Central Brazil
Investor Presentation – July 2017 Faina Goldfields Project, Central Brazil A strategic partnership to unlock one of Brazil’s last untapped greenstone belts
Slide 18: Appendix: New Trial Mine Development (Stage 1)
Appendix: Cascavel Gold Mine – New Trial Mine Development (Stage 1) ► ~800m of development completed last year, with limited mining in Cascavel Lode – excessive dilution, poor productivity and no mining in Mestre Lode ► Additional trial mine development commenced in April 2017 to provide access to h
Slide 19: Appendix: New Mine Development (Stage 2)
Appendix: Cascavel Gold Mine – New Mine Development (Stage 2) ► When Stage 1 is successful, Orinoco will embark on a longer term mine design encompassing • Develop new Decline for truck haulage • Central Ramp Decline to establish access to the Cascavel Lode down-dip extension • Extending the Mestre
Slide 20: Appendix: New Mining Equipment
Appendix: Cascavel Gold Mine – New Mining Equipment Purchase of small scale LHD – Delivered in July From This: To This: ≈0.2 m3 bucket ≈1.5 m3 bucket 20
Slide 21: Appendix: Improved Blasting Practices
Appendix: Cascavel Gold Mine – Improved Blasting Practices ► Orinoco explosive storage licence secured ► Installation of magazines complete ► Alternative better quality explosives and accessory supplier ► Long Period (LP) equivalent detonator series purchased for development blasting ► Standardised
Slide 22: Appendix: Shaft Haulage Improvements
Appendix: Cascavel Gold Mine – Shaft Haulage Improvements ► Haulage shaft efficiency improved • Hoisting speed increased • Improved housekeeping standards implemented • Drive linking north and south sides of mine being developed to negate the need for travelling across the shaft haulage way (product
Slide 23: Appendix: Cascavel – Processing Improvements
Appendix: Cascavel – Processing Improvements Particle Size Distribution ► Both Hazen Research Inc. and Mining Plus metallurgical reports have indicated that gravity gold recoveries can be improved by delivery of smaller particle size distribution (PSD) profile to gravity circuit ► However, cost-bene
Slide 24: Appendix: Processing Plant – Preliminary Improvements
Appendix: Processing Plant – Preliminary Improvements ► Low cost capital and operational improvements to be undertaken include • Closing of primarily jaw crusher gap – Nil cost • Closing of secondary crusher gap – Nil cost • Smaller aperture panels for screen deck – ~ $A15,000 • Installation of an O
Slide 25: Appendix: Improvements – Laboratory
Appendix: Improvements – Laboratory On-Site Laboratory ► Construction completed in June 2017 ► Fit-out due for completion in July 2017 ► Will provide significantly improved and timely turnaround of assays ► Once completed, Orinoco can apply for a licence to operate (cannot apply earlier) 25