Capricorn Metals Ltd · ASX:CMM
Capricorn Metals — Investor Presentation (March 2018)
33 slides from Capricorn Metals's investor presentation, March 2018
Slide 1: Karlawinda Gold Project Investor Update
Karlawinda Gold Project Investor Update A compelling opportunity in the Australian gold sector March 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
Corporate Corporate Information ASX Code CMM Shares on Issue 747.9M Share Price as at 16th February 2018 $0.074 Market Cap 16th February 2018 ~$55.4M Cash as at Dec 2017 $10.3M Unlisted options 55.7M Board of Directors Heath Hellewell (BSc (Hons)) – Executive Chairman • Geologist with +23 years expe
Slide 4: Karlawinda, A Straight-Forward Mining Project With Considerable Upside
Karlawinda, A Straight-Forward Mining Project With Considerable Upside 1. Positive Feasibility Study – stand-alone gold project • Bibra Deposit - Ore Reserve 713,000oz (Aug 2017)1 – based on previous 1.1Moz Resource (Apr 2017) • Single low strip ratio open pit • Firm “base case” economics: • ~100,00
Slide 5: Capricorn Orogen - Regional Geology
Capricorn Orogen - Regional Geology Karlawinda – A new gold discovery in a premier mining district capmetals.com.au 5
Slide 6: Karlawinda, First Class WA Location
Karlawinda, First Class WA Location Premier mining jurisdiction • 60km south east of Newman in Western Australia • 1400km2 of 100% owned exploration and mining tenements • Road access via the Great Northern Hwy and Coobina Mine Road • 45 minute drive to services and logistics • Multiple flights per
Slide 7: Karlawinda, Project Geology
Karlawinda, Project Geology Unlocking the potential of a new gold camp • First-mover opportunity in emerging Archaean greenstone belt • Analogous with Plutonic Dome (+10Moz) • Long-lived structural domain, with key major structures • Proven camp-scale multi million ounce potential, partially obscure
Slide 8: Feasibility Study
Feasibility Study
Slide 9: A Compelling Opportunity in the Australian Gold Sector
A Compelling Opportunity in the Australian Gold Sector De-risked by Feasibility Study (Oct 2017) Bibra Deposit – Current Open Pit Ore Reserve (Aug 2017) Ore Reserve 21Mt @ 1.06 g/t Au for 713,000oz (Probable) • Ore Reserve conversion rate 70% at A$1500/oz • Ore Reserve based on previous 1.1M oz Reso
Slide 10: Bibra Gold Deposit
Bibra Gold Deposit Predictable mineralised system • Bibra Deposit currently defined over a 2km strike length • Drilled +800m down-dip and remains open • Broad ore zones up to 50m wide • Mineralisation best developed in large dilational shoots within a shear/fold system • Biotite, carbonate, magnetit
Slide 11: Bibra Gold Deposit
Bibra Gold Deposit Continuous shoots down plunge capmetals.com.au 11
Slide 12: Open Pit Mining
Open Pit Mining Bibra Deposit- Large tonnage, low strip ratio • Single large-scale, multi-staged open pit (1km x 1km) • Very attractive stripping ratios: • LOM - 4.7:1 • Higher value, near surface laterite and oxide ore in Stage One Strip Ratio • Thick, continuous and consistent ore zones Pit Stage
Slide 13: Open Pit Mining
Open Pit Mining Bibra Deposit- Contract/Owner Operator FS assumptions • Contract grade control Optimise material movements • RC -10m x 10m, 5m x 8m • Contract drill and blast • 5m benches, 10m benches in some areas of bulk waste • Detailed fragmentation studies to: • Optimise powder factors and blas
Slide 14: Metallurgy & Processing
Metallurgy & Processing Conventional processing, high recoveries • Conventional 3Mtpa CIP circuit • 3.7Mtpa throughput in first 2 years (oxide) • Single stage crushing • 6.5MW SAG with upgrade to SAB (SABC) with ~2.5MW ball mill after 2 years • “Trade-off” studies underway • 92.6% LOM recovery, with
Slide 15: Metallurgy & Processing Recovery Testwork
Metallurgy & Processing Recovery Testwork Grade Scoping Study FS (June 2017) Conventional Processing, High Recoveries Test Ore Type Units (g/t) Recovery (%) Recovery (%) (P80 grind size) (P80 grind size) Laterite % 1.4 - < 10 Oxide % 1.0 - 25 Gravity Transition % 1.0 - 45 Fresh % 1.1 24 45 Laterite
Slide 16: Infrastructure
Infrastructure Standard West Australian gold mine • Long-term power purchase agreement (BOO). • Current FS assumption is: • Onsite gas-fired power station • Fuelled by LNG • Integrated Waste Landform (IWL) Tailings Storage facility (TSF) • New 31km access road linking site to all weather unsealed sh
Slide 17: Capital Cost Summary
Capital Cost Summary Item Feasibility Study (September 2017) • EPC tender process underway (A$) • Guaranteed Maximum Price Processing Plant (EPC) (3.7Mtpa oxide/ 3.0Mtpa primary ore) $90.7M (GMP) contract Plant Infrastructure (EPC) (Plant buildings and workshops, $8.7M borefield) • Selection of pref
Slide 18: Operating Cost Summary
Operating Cost Summary Item LOM Cost LOM Cost / LOM Cost / (A$M) Tonne Ounce (processed) (recovered) (A$/t) (A$/oz) Mining $290.9 $13.8 $440.1 Processing & Maintenance $251.9 $12.0 $381.1 General & Admin. $54.3 $2.6 $82.2 Realisation Costs $3.0 $0.1 $4.5 Sustaining Capital (incl. $22.8 $1.1 $34.5 cl
Slide 19: 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 by June 2018 • Preference is for traditional bank project financing • P
Slide 20: Premier Mining Jurisdiction
Premier Mining Jurisdiction Permitting progressing to schedule • Nyiyaparli Heritage Agreement • Mining Lease - M52/1070 • NVCP- Mine Area • 5C Water Licence (April 2018) • Works Approvals and Mining Proposal (June 2018) capmetals.com.au 20
Slide 21: Timeline
Timeline A simple, straightforward development and growth opportunity Timeline 2016 2017 2018 2019 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Scoping Study Resource Drilling Mining Lease Application Native Title Agreement Feasibility Study Decision to Proceed Project Optimisation Approvals Fina
Slide 22: Exploration
Exploration
Slide 23: Resource and Reserve Growth
Resource and Reserve Growth A simple, straightforward development and growth opportunity capmetals.com.au 23
Slide 24: Exploration
Exploration Unlocking the potential of a new gold camp • Camp-scale multi million ounce potential • Limited early stage exploration outside the immediate Bibra Deposit • K3 Prospect, up-plunge projection of Francopan • 26m @ 1.08 g/t Au from 132m • 21m @ 1.31 g/t Au from 230m • Francopan, wide-space
Slide 25: Bibra Gold Deposit
Bibra Gold Deposit Predictable, structurally controlled mineralised system • Major Archaean mineralised system comprising multiple large scale ore zones • Broad “shoots” developed as low angle mineralised zones • Multiple trends only partially drill tested • Shoots are continuous down plunge capmeta
Slide 26: Reserve Expansion Targets
Reserve ExpansionTargets Southern Corridor Portrush Zone Resource upgrade and evaluation Near surface extensions capmetals.com.au 26
Slide 27: Resource Growth Target Tramore
Resource Growth Target Tramore Potential major new zone – Oxide potential capmetals.com.au 27
Slide 28: Conceptual Upside Bibra Gold Deposit
Conceptual Upside Bibra Gold Deposit Geological understanding crystallising • Litho-geochemical studies provide the catalyst for recent breakthroughs in geological interpretation • Large scale geological concepts to be tested by government co-funded drilling (commencing Feb 2018) capmetals.com.au 28
Slide 29: Key Investment Takeaways
Key Investment Takeaways A compelling opportunity in the Australian gold sector • Karlawinda Gold Project is an economically robust Western Australian gold development opportunity • Straight forward development pathway • Single large open pit mine (from surface) • CIP processing • Ongoing optimisati
Slide 30: Appendices – Resources & Reserves
Appendices – Resources & Reserves
Slide 31: Resource – Karlawinda Project
Resource – Karlawinda Project November 2017 upgrade Notes on the November 2017 Mineral Resource Estimate: • Discrepancy in summation may occur due to rounding. • The mineralisation has been wireframe modelled using a 0.3g/t Au assay cut- off grade. The Mineral Resource estimate has been reported abo
Slide 32: Reserve – Bibra Deposit
Reserve – Bibra Deposit August 2017 BIBRA GOLD DEPOSIT JORC (2012) ORE RESERVE ESTIMATE (as of AUGUST 2017) PROVEN PROBABLE TOTAL DATE Tonnes Grade Ounces Tonnes Grade Ounces Tonnes Grade Ounces (Mt) (g/t Au) (Moz) (Mt) (g/t Au) (Moz) (Mt) (g/t Au) (Moz) AUGUST --- --- --- 21 1.06 0.713 21 1.06 0.71
Slide 33: Capricorn Metals Ltd contact details
“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 89212 4600 www.capmetals.com.au
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