Slide 1: Manica Gold Project Mozambique
Manica Gold Project Mozambique March 2017
Slide 2: An Important Disclosure
Xtract Resources PLC An Important Disclosure The information contained in this document, including any information and opinions contained or discussed in any accompanying oral presentation, question and answer session and any other materials distributed in connection with this document (the ‘Present
Slide 3: Manica Gold Project - Mozambique: Why?
Manica Gold Project - Mozambique Why? Stable African Economy Upgrading of infrastructure underway Mature mining legislation, industry and culture GDP >5% - high growth rate Purchase from Auroch concluded Definitive Feasibility Study Completed Economically viable project Low cost and
Slide 4: Mozambique: Good Place To Work
Mozambique Good Place To Work Favourable political and legal environment Multi-Party Democracy since 1994 Stable Southern African jurisdiction Mature mining legislative regime No local ownership requirements Upgrading of National Ports and Power and other infrastructure underway High G
Slide 5: Manica Gold Project: Established Area
Manica Gold Project Established Area Situated in the Odzi-Mutare-Manica Greenstone Belt. Over 2 million oz of gold previously mined 43,6 km² concession 1,262 m oz SAMREC compliant gold resources Only 10% of concession drill tested Definitive Feasibility Study of open pit mine completed 4
Slide 6: DFS – Key Financial Parameters
Manica Gold Project DFS – Key Financial Parameters Extraction Method – Conventional Open Pit Life of Mine – 7 years Total Ore Tonnes Processed – 3.3Mt (42 ktmp) Total Ounces Produced – 215 koz (~31 kozpm) Recovered Grade – 2.62 g/t Gold Price – US$1,262 per oz Project Payback – 2 years
Slide 7: The Focus
Manica Gold Project The Focus 1.262 moz SAMREC compliant Au Resources (782koz measured and indicated) Low cost, near-term ready-to-build production Metallurgical risk solved by fine grinding and pressure oxidation Additional nearby prospects for further exploration success, namely Guy Fawk
Slide 8: Fair Bride Overview
Fair Bride Overview Main deposit – Fair Bride Situated in the Odzi-Mutare-Manica Greenstone Belt of Mozambique 1.262moz SAMREC compliant Au Resources (782koz measured and indicated) Well drilled - a total of 229 drill holes (31,662m) has been completed on the Fair Bride deposit accounting for
Slide 9: Fair Bride: Simple Project
Fair Bride Simple Project Lower Risk – Lower Cost – Quick into production Elimination of underground technical mining risk and gold locked up in the crown pillar Instead of 4 years open pit and 8 years underground mining; expectation is 7 years of open pit mining with a 7.2 strip ratio milling 4
Slide 10: Fair Bride: Solving Metal Recovery
Fair Bride Solving Metal Recovery Three types of ore: Oxide; Transitional; and Sulphide Several test campaigns completed by SGS, Maelgwyn, Oxide Zone: standard CIL will result in final recoveries achievable of 95% Sulphide Zone: Floatation followed by ultra-fine grinding (-14µm) and oxid
Slide 11: Process Flow Design
Fair Bride Process Flow Design Tertiary Cone Crusher middlings Secondary Cone Crushers o/s Vibrating Milling & Screen Classification Mill Feed u/s Stockpile Transitional & Sulphides Oxides Jaw Float TSF Crusher o/s Float Tail Thickener UFG u/s Grizzly Thickener Tails Thickener RoM Pad UFG CIL RoM Re
Slide 12: Fair Bride Base Case
Fair Bride Base Case Gold price USD 1262/oz 480,000 of ore tonnes per annum mined 7 years of mine life Average grade 2.72 g/t mined Stripping Ratio 7.2:1 All up break even cost(C3) USD862/oz Capital USD43.68 million NPV at 8.5% discount USD42 million 11
Slide 13: Optimised Pit Views
Fair Bride Optimised Pit Views Before Geological Overview After Initial Mine Key Parameters DFS Optimised DFS Design 12
Slide 14: Fair Bride Insight
Fair Bride Insight The mineralised strike of the ore body is approximately 1,040m Well understood mineralization and geological model shows excellent continuity Bounded by a fault in the west and low grade mineralization in the east, open on dip Mainly pre-drilling exploration has taken plac
Slide 15: Before optimised pit view
Fair Bride Before optimised pit view This is how it looks Project area extending west – approximately Manica Project area- 5km from 85% of tenement remains unexplored town in next river valley Good gravel road Processing Facility Mining and Engineering Area of mining is relatively Site workshop and
Slide 16: Manica Potential: Other Projects
Manica Potential Other Projects Drilling has targeted the below resources: Dots Luck (750m strike, 100m depth) 43 drill holes for 5000m, of which 38 holes comprise the resource Bounded by faults on the west and east, but open on dip (off-set of the Northern shear zone) Guy Fawkes (1350m strike,
Slide 17: Manica Exploration Potential
Manica Exploration Potential Regional Exploration Potential (within current concession) Only 10% of the 4,300 ha has been drilled Mainly pre-drilling targeting has taken place along the southern and northern share zone between Dot’s Luck and Fair Bride and further East (14km) and between Guy Faw
Slide 18: Exploration Potential: Top Ten
Manica Exploration Potential Regional Exploration Potential Top Ten Manica Gold Project Exploration Target** Tonnes (Kt) Au (g/t) Contained Au (oz) 250 – 360,000 – 1,500 2.0 – 4.0 1,795,000 **The potential quantity and grade of the Exploration Target is conceptual in nature, and there has so far bee
Slide 19: Compelling Investment Case
Compelling Investment Case Global Gold Developing Mines Relative Strengths Simple open pit – low initial cost and lead time Alluvial Mining Income Generation whilst mine construction in progress Good mining jurisdiction Major exploration potential and Fair Bride depth continuity At end of
Slide 20: Thank you
Thank you 4th Floor, 2 Cromwell Place, South Kensington London, United Kingdom, SW7 2JE T: +44 (0) 20 3416 6471 F: +44 (0) 20 7589 7806 E: info@xtractresources.com www.xtractresources.com