Tanami Gold Nl · ASX:TAM
Tanami Gold Nl — Investor Presentation (September 2012)
29 slides from Tanami Gold Nl's investor presentation, Sep 6, 2012
Slide 1: Building a 200,000oz per annum Australian gold producer
For personal use only SEPTEMBER 2012 Building a 200,000oz per annum Australian gold producer 1
Slide 2: Tanami – A Compelling Investment Opportunity
Tanami – A Compelling Investment Opportunity Proven gold province - Tier 1 mineral field (hosting +10M oz Callie deposit - Newmont) For personal use only 100% interest in +2.8M oz gold Resource(1) and two strategic gold processing facilities High grade Coyote underground gold mine with associated 35
Slide 3: Corporate
Corporate Tanami Gold NL (ASX:TAM) Share Price Performance (Last 15 Months) Ordinary Shares on Issue 261.1 million For personal use only Share Price (30 August 2012) A$0.87 Market Capitalisation A$227 million Cash and Liquid Assets (see below) A$12.8 million Debt (as at 30 August 2012) A$33.4 millio
Slide 4: Tanami Management Team
Tanami Management Team Board and management restructure in December 2011 For personal use only Clear corporate strategy and disciplined management Management team - experienced and focused on successful delivery at CTP and future growth The new team has already delivered a number of key milestones s
Slide 5: Tanami Board
Tanami Board Board focus is to provide strong oversight and direction on corporate governance and strategy For personal use only Board composition reflects the continued support provided by major shareholder – Allied Group Limited Allied Group Limited debt repayment will result in the appointment of
Slide 6: Tanami – Project Locations
Tanami – Project Locations Tanami has two key assets in the Tanami region, near the border between the Northern Territory and Western Australia For personal use only Coyote Gold Project • Commissioned in 2007 • June 2012 Quarter production of 12,181 oz at $820 /oz • Resource 2.9Mt @ 4.8g/t Au = 0.45
Slide 7: Overview – Coyote Gold Project
Overview – Coyote Gold Project Asset Overview For personal use only High-grade gold mining production asset Coyote Gold Project June 2012 quarter production rate equivalent to 50Kozpa Advanced exploration model – 3 rigs drilling 453Koz Au Resource @ 4.8g/t Au(1) Includes 227Koz Au U/G Resource
Slide 8: Kavanagh Long Section
For personal use only Kavanagh Long Section Kavanagh Lode 8
Slide 9: Overview - Central Tanami Project
Overview - Central Tanami Project Asset Overview For personal use only Central Tanami Project CTP is the Company’s advanced flagship development asset Acquired from Newmont in March 2010 for ~$22M Strong historical production track record (2.1Moz in top 100m) Advanced Definitive Feasibility Study –
Slide 10: Definitive Feasibility Study - CTP
Definitive Feasibility Study - CTP Definitive Feasibility Study (DFS) on schedule – completion April 2013 For personal use only Groundrush – outstanding deposit centerpiece of Study – 743Koz JORC Resource(1) -> targeting +1.0Moz(2) by year end and rapidly growing (exploration target of +1.0Moz compr
Slide 11: Groundrush Open Pit – ML 22934
For personal use only Groundrush Open Pit – ML 22934 Proven Production Record Historical production of 610,000oz Au between 2003 and 2005, at an average recovered grade of 4.3g/t Au Processed at the CTP processing plant, located ~40km to the south of Groundrush 11
Slide 12: Groundrush Geology
Groundrush Geology Geology Snapshot For personal use only Dolerite hosted - fractionated Large long lived alteration system Continuous main zone – 5m to 20m true width Significant grade / ounce contribution from hanging wall and foot wall lodes Southerly plunge – open in multiple directions Strong g
Slide 13: Groundrush Schematic Long Section
For personal use only Groundrush Schematic Long Section 743,000 Resource Ounces (1) Rapid Resource growth – massive growth potential Strong geological model and understanding Additional successful drilling completed outside existing Resource outlines Remains open in multiple directions Note 1 – Refe
Slide 14: Groundrush Proposed Mine Plan
For personal use only Groundrush Proposed Mine Plan Robust Mining Operation Technical Considerations High Resource to mining inventory conversion rate ~70% Metallurgy good - 95% recovery (up to 60% gravity) Open pit cut back under consideration Geotechnically sound Twin declines likely Low water inf
Slide 15: Exploration Potential historic open pits
For personal use only Exploration Potential 43 historic open pits Historic production of >2Moz Average depth of pits ~100m Majority drilled to less than 150m 64km of contiguous mining and exploration licences covering the main mineralised trend Ongoing intensive near-mine and regional exploration pr
Slide 16: Central Tanami Schematic Long Section
For personal use only Central Tanami Schematic Long Section MBS – metres below surface 16
Slide 17: Central Tanami Exploration Potential
Central Tanami Exploration Potential Over 100kms of highly prospective “trend” to test (to date mostly For personal use only shallow <50m drilling) All Traditional Owner agreements in place 5 Year Plan CTP into production Ramp up to +160Koz pa +20 Year Potential Discover world class ore- bodies Grow
Slide 18: Strong Project Development Pipeline
For personal use only Strong Project Development Pipeline 18
Slide 19: Targeted Production
Targeted Production Production and Upside For personal use only Groundrush – start up 120,000 ounces pa – twin decline potential to deliver +160,000 ounces pa Opportunity to increase production through multiple open pits Groundrush and Coyote – targeting combined production of 200,000 ounces pa by 2
Slide 20: Forward Planning and Objectives
Forward Planning and Objectives Operational targets For personal use only Milestone Sept 2012 Dec 2012 Mar 2013 June 2013 Sept 2013 Dec 2013 Mar 2014 June 2014 Sept 2014 Dec 2014 Coyote Gold Project Ongoing Production, Mine and Regional Exploration CTP Feasibility Study Plant Refurbishment and Devel
Slide 21: Comparable Trading Multiples
Comparable Trading Multiples The chart below demonstrates the current trading positions(1) of Tanami’s closest ASX peers (ie. those in ramp-up phase that are producing at similar levels) For personal use only Producers with ramp-up assets WA developers $300 $250 EV/Resources (A$/oz) $200 $150 Averag
Slide 22: Investment Highlights
Investment Highlights Combined Coyote Gold Project and CTP operations expected to result in production of ~200,000 For personal use only 1 ounces pa by 2015, creating a significant Australian gold production company. Significant upside potential via multiple high priority exploration targets within
Slide 23: Questions
For personal use only SEPTEMBER 2012 QUESTIONS Building a 200,000oz per annum Australian gold producer 23
Slide 24: Tanami Gold Mineral Resources as of June 2012
Tanami Gold Mineral Resources as of June 2012 Resource Category For personal use only Project Measured Indicated Inferred Total Tonnes Grade Ounces Tonnes Grade Ounces Tonnes Grade Ounces Tonnes Grade Ounces Coyote 486,000 2.9 45,000 1,073,000 5.7 197,000 1,378,000 4.7 210,000 2,937,000 4.8 453,000
Slide 25: Central Tanami Project Mineral Resources by tenement
Central Tanami Project Mineral Resources by tenement as of June 2012 Resource Category Mineral Lease Measured Indicated Inferred Total For personal use only Tonnes Grade Ounces Tonnes Grade Ounces Tonnes Grade Ounces Tonnes Grade Ounces MLS153 1,051,000 2.2 73,000 3,046,000 2.2 217,000 849,000 2.7 7
Slide 26: Coyote Gold Project Mineral Resources by tenement
Coyote Gold Project Mineral Resources by tenement as of June 2012 Resource Category For personal use only Deposit Measured Indicated Inferred Total Tonnes Grade Ounces Tonnes Grade Ounces Tonnes Grade Ounces Tonnes Grade Ounces Coyote 29,000 21.5 20,000 332,000 10.9 116,000 314,000 8.9 90,000 675,00
Slide 27: Disclaimer and Competent Person’s Statement
Disclaimer and Competent Person’s Statement Disclaimer and Forward-Looking Statements For personal use only • Certain statements contained in this presentation, including information as to the future financial or operating performance of Tanami Gold NL and its projects, are forward-looking statement
Slide 28: Coyote Conceptual Exploration Model
Coyote Conceptual Exploration Model Note: this is a hand-drawn perspective sketch EAST designed to show essential relationships. There is CENTRAL some minor, unimportant, shape distortion. For personal use only WEST Coordinates show approximate scale and location only. Western extent mine workings J
Slide 29: Coyote Conceptual Exploration Model
For personal use only Coyote Conceptual Exploration Model ACTIVE MINE AREA GONZALES CYDD82 with 7m @ 3.9g/t Au MUTTLEY CYDD47 with 3m @ 8.8 g/t Au CYDD178 with • 0.3m @ 21g/t Au • 1.8m @ 4.7g/t Au • 4.4m @ 4.4g/t Au CONCEPTUAL TARGET AREA Arsenic Current lodes 29 Exploration Upside
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