Theta Gold Mines Ltd. · ASX:TGM
Theta Gold Mines — Investor Presentation (April 2021)
37 slides from Theta Gold Mines's investor presentation, Apr 20, 2021
Slide 1: Investor Presentation: High Growth, Low Cost Gold Developer
For personal use only INVESTOR PRESENTATION High Growth, Low Cost Gold Developer 6 Moz Gold Resource April 20, 2021
Slide 2: Disclaimer
Disclaimer For personal use only Forward looking and cautionary statements Disclaimer and Competent Persons Statement This announcement or presentation may refer to the intention of Theta Gold Mines regarding estimates or future events which DISCLAIMER could be considered forward looking statements.
Slide 3: Corporate Overview
For personal use only OVERVIEW CORPORATE
Slide 4: Company Snapshot
Company Snapshot For personal use only Theta Gold Mines Limited controls the Eastern Transvaal Gold Fields, where South Africa’s gold mining industry began almost 130 years ago. Theta’s assets includes: • over 62,000 hectares of gold mining rights which covers the majority of the Eastern Transvaal G
Slide 5: Compelling Investment Rationale
Compelling Investment Rationale For personal use only Investment Highlights More low-cost expansion +160koz pa (within 5 Multiple entry points based on >130years data years) from pre- provide optionality in the (+40 old mines and developed near-surface development strategy exploration) gold resource
Slide 6: The Team
The Team For personal use only Bill Guy – Chairman Richie Yang - Non-Executive Director Ex-Jupiter Mines Ltd (ASX: JMS) Chief Exploration Manager. (Jupiter Former Executive Director of gold resource company Bligh Resources was/is controlled by London based Pallinghurst Group, Chairman Mr. Ltd (ASX:
Slide 7: South Africa's Golden Triangle
South Africa’s “Golden Triangle” For personal use only Theta Gold - 6Moz Developer – to produce >160Koz/a [MC: AU$115M] SA host the 3rd largest gold reserves in the world (~6,000t Au) Barberton Greenstone Witwatersrand Goldfields Goldfields West Wits Mining (ASX) DRD Gold (NYSE/JSE) Pan African Reso
Slide 8: Environmental, Social & Governance (ESG)
Environmental, Social & Governance (ESG) For personal use only ESG is integral to the development strategy, based on: • Conservation of biodiversity • Holistic risk management • Responsible production practices • Zero harm approach to health and safety • Positive impact on host communities • Environ
Slide 9: UG Mines Targeted First
6 UG Mines Targeted First For personal use only 5 2 3 1 Many more mines to develop 6 4 9 Investor Presentation – April 2021 ASX: TGM | OTCQB: TGMGF
Slide 10: UG Mines Targeted First
6 UG Mines Targeted First For personal use only Solid Growth Potential Socio-Economic Impact • Develop multiple mines, reaching • Thousands direct and indirect >160koz/a within five years, from jobs the resource base of +6mil ounces • 20 000+ people positively • First three-mine operation, central i
Slide 11: A Vibrant Emerging Market with First-World Infrastructure & Law
A Vibrant Emerging Market with First-World Infrastructure & Law For personal use only South Africa - 16% of the African Continent’s GDP "The current Logistical Advantages timeframes for mining, • Largest road system network in Africa • Local commercial airports prospecting, water and • State power g
Slide 12: Project Overview
For personal use only PROJECT OVERVIEW
Slide 13: History - Then and Now
150 Year History - Then and Now For personal use only Then… Now… Vaalhoek: Productivity in perspective • High costs and low gold price at the time drove cut-off grades up (Beta pay limit was 18.7g/t , now 1g/t) • Therefore, selective mining in search of ultra-high grades created pre-development that
Slide 14: Mining Method
Mining Method For personal use only Examples of narrow reef mining Modern underground mining methods & technologies to boost Theta’s underground mine economics: • Modern Safety Systems (zero harm philosophy) • Modern mining methods • Maximum grade with reduced dilution (60cm SW). • Successfully appl
Slide 15: Production Units Defined
Production Units Defined For personal use only One Production Unit: Development Drill Rig Seven Production Units: Produce 15-20 kt/m (20-30koz/a) Produce 100-140 kt/m (upgraded to feed 80kt/m to mill) (>160koz/a) Mining Fleet • 2 Dev Drill Rig ($1.6m) Human Resources • 2 Stoping LH Drill Rig ($3m) •
Slide 16: Metallurgy
Metallurgy For personal use only DMS Discards Floats Carbon Tails Floats • Plant designs based on results from metallurgical test CDM DMS Sinks Sinks Milling Carbon work. Coarse Flotation • Based on initial test work, the planned Recovery Frankfort Crush and Fines Fines Milling Carbon Factor (RF) is
Slide 17: Beta Mine Plan and Resource Potential
Beta Mine Plan and Resource Potential For personal use only 347,940 oz included in current Mine Design 587,000 oz Inferred Mineral Resource (Not included in New Mine Design) Beta Planned Mining Areas On Reef Exploration Off Reef Exploration Mine Design Mined Out Areas Indicated Mineral Resources Inf
Slide 18: Frankfort Mine Plan and Resource Potential
Frankfort Mine Plan and Resource Potential For personal use only 42,330 oz included in current Mine Design 81,000 oz Inferred Mineral Resource (Not included in New Mine Design) On Reef Exploration Off Reef Exploration Mine Design Mined Out Areas Indicated Mineral Resources Grade Tonnes Au Content Or
Slide 19: CDM Mine Plan and Resource Potential
CDM Mine Plan and Resource Potential For personal use only 28,580 oz included in current Mine Design 176,000 oz Inferred Mineral Resource (Not included in New Mine design) On Reef Exploration Grade Tonnes Au Content Ore Reserve Category g/t kt kg koz Probable 2.31 385 889 28.58 Total 2.31 385 889 28
Slide 20: TGME Underground PFS
TGME Underground PFS For personal use only First 16 % of underground Mineral Resource • Pay-back period from first gold 13 months • Pay-back period from start of mining 22 months • 419 Koz delivered to plant over Life of Mine • By third year of production, almost 70 koz / year (3 production units) •
Slide 21: Phase UG & MR83 OP Reserves
Phase 1 UG & MR83 OP Reserves For personal use only Grade Tonnes Au Content Operation g/t kt kg koz Beta 6.51 1,662 10,822 347.94 Frankfort 4.13 319 1,317 42.33 CDM 2.31 385 889 28.58 Open Pit (MR83) 2.74 2,164 4,996 160.61 Total 3.98 4,530 18,023 579.46 • OP is currently in the plan, but intention
Slide 22: Financial Projections
For personal use only FINANCIAL PROJECTIONS
Slide 23: Low Cost – High Margin
Low Cost – High Margin For personal use only $900 23 Investor Presentation – April 2021 ASX: TGM | OTCQB: TGMGF
Slide 24: Low Cost – High Margin
Low Cost – High Margin For personal use only Phase 1 UG $2,000 Cost Drivers • Near surface gold reefs Upside gold $1,750 Price potential • Pre-developed, multiple entry points (flexibility) Margin • Modern mining methods – safe, productive $1,500 • Grade Engineering - minimum dilution & maximum Gold
Slide 25: Phase UG PFS Financial Results
Phase 1 UG PFS Financial Results For personal use only • Year 7-8 capacity not utilized (exclusion of inferred resources). • With the plant capacity fully utilized beyond year 6, AISC can be maintained at US$800/oz Green: M/I UG Operations Unit Forecast 1,500 1,600 1,700 1,800 2,000 Blue: Inf NPV @
Slide 26: Further Production Growth
For personal use only FURTHER PRODUCTION GROWTH Investor Presentation – April 2021 ASX: TGM | OTCQB: TGMGF
Slide 27: Rietfontein Mine – Pipeline of Projects
Rietfontein Mine – Pipeline of Projects For personal use only 242,200 oz Indicated and 537,600 oz Inferred Mineral Resource Main access Historical mining – through 3 & 4 level 270kt @ 8g/t recovered adits grade Initial Mining Blocks Existing incline shaft from 3 to 7 level Inferred resource and beyo
Slide 28: Vaalhoek and Glynn's Mines Pipeline of Projects
Vaalhoek and Glynn’s Mines For personal use only Pipeline of Projects 465,900 oz Inferred Mineral Resource 1,642,000 oz Inferred Mineral Resource 28 Investor Presentation – April 2021 ASX: TGM | OTCQB: TGMGF
Slide 29: Exploration
Exploration For personal use only Beta downdip payshoot • Converting Inferred Resources • Focus on replacing planned mining depletions, by infill drilling and exploration development. • Launch near-mine exploration drilling to define new inferred resources and upgrade to Indicated/reserve status • T
Slide 30: Flexible Build-up to a >160,000oz/a Au Production Profile
Flexible build-up to a >160,000oz/a Au Production Profile For personal use only Mining Grade DMS/XRT Resource (20% upgrade (% to Mined Tons Grade discounted) mill) MCF Mill Feed tons Mill Feed gr RF Rec Grade Oz/a UG Mines 105,000 6.5 5.1 60% 85% 63,000 7.2 85% 6.1 149,266 Theta MR83 OP 15,000 2.2 1
Slide 31: Why Invest in Theta?
Why Invest in Theta? For personal use only Discovery cost less than 0.7% (US$12/oz) of current gold price Transitioning to“Producer Status” in 2022 Production costs (AISC) half current gold price A Multi-Million Ounce Goldfield News Flow 2021 • Increases in Mining Reserve (converting existing resour
Slide 32: Contact Us
For personal use only CONTACT US Mitford Mundell – CEO Africa Email: mitfordm@tgme.co.za Bill Guy – Chairman Ben Jarvis – Six Degrees Media Email: billg@thetagoldmines.com Email: ben.jarvis@sdir.com.au Richie Yang - Director Michael Porter – US Investor Relations Porter, Levay & Rose Email: richiey@
Slide 33: Appendix
For personal use only APPENDIX
Slide 34: Combined Mineral Resource Statement (~6.1Moz)
Combined Mineral Resource Statement - (~6.1Moz) For personal use only Combined Mineral Resource Resource Classification Type of Operation Tonnage Gold Grade Gold Content Mt g/t Kg koz Underground 0.091 5.37 489 15.7 Measured Open pit Tailings Total Measured 0.091 5.37 489 15.7 Underground 4.774 6.21
Slide 35: Mineral Resource Statement - Underground (~4.5Moz)
Mineral Resource Statement - Underground (~4.5Moz) For personal use only Mineral Resource Reef Grade Stope Grade Reef Width Stope width Content Reef Tonnes Stope Tonnes Au Content Mine Reef Classification g/t g/t cm cm cm.g/t Mt Mt kg koz Measured Frankfort Bevetts 7.13 5.37 73 103 520 0.069 0.091 4
Slide 36: Mineral Resource Statement – Open Pit (~1.4Moz)
Mineral Resource Statement – Open Pit (~1.4Moz) For personal use only Reef Grade Reef Width Content Reef Tonnes Au Content Mineral Resource Classification Open Pit Mine Reef g/t cm cm.g/t Mt kg koz Hermansburg Eluvial 1.79 0 0 0.505 905 29.1 DG1 Eluvial 2.24 0 0 0.640 1 432 46.0 DG2 Eluvial 0.66 0 0
Slide 37: Ore Reserve Statement
Ore Reserve Statement For personal use only Grade Tonnes Au Content Ore Reserve Classification Operation g/t kt kg koz Proved 4,24 60 254 8,16 Frankfort Total Proved 4,24 60 254 8,16 Beta 6,51 1 662 10 822 347,94 Frankfort 4,11 259 1 063 34,16 Probable CDM 2,31 385 889 28,58 Theta Project (MR 83) 2,
Theta Gold Mines — Investor Presentation (April 2021) on 6ix