Vault Minerals Limited · ASX:VAU

Vault Minerals — Red 5 — Diggers & Dealers Mining Forum 2020

34 slides from Vault Minerals's conference presentation, Oct 14, 2020

  1. Slide 1: Transition to a multi-operational, mid-tier gold producer

    For personal use only Transition to a multi-operational, mid-tier gold producer ASX Code: RED 14 October 2020 www.red5ltd.com Mark Williams, Managing Director

  2. Slide 2: Competent Person's Statement and Disclaimer

    Competent Person’s Statement and Disclaimer For personal use only Competent Person Statements for JORC 2012 Mineral Resource and Ore Reserves The information in this presentation that relates to the Mineral Resources at the Siana open pit is extracted from the report titled Siana Gold Project – Open

  3. Slide 3: Red 5 Limited – a standout growth opportunity

    Red 5 Limited – a standout growth opportunity  Red 5 has two gold mines in one of the world’s safest and For personal use only most prospective gold districts  King of the Hills (KOTH) is a major Australian gold deposit  Mineral Resource of 4.1Moz1 and Ore Reserve of 2.4Moz2  KOTH Final Feasibil

  4. Slide 4: Red 5 Limited – corporate profile

    Red 5 Limited – corporate profile For personal use only Our Company Vision “To be a successful multi-operational exploration and mining company, providing benefits to all stakeholders, through the consistent application of technical excellence, and responsible and sustainable industry practices.” Sh

  5. Slide 5: Red 5 2020: two producing mines, one plant

    Red 5 2020: two producing mines, one plant For personal use only KOTH OP and UG Mine Darlot UG Mine Darlot Plant 2022 target: two mines, two plants 5 www.red5ltd.com

  6. Slide 6: Multiple opportunities to extend Darlot

    Multiple opportunities to extend Darlot For personal use only Darlot Gold Mine 1 Cables & Mission 4  Resource 10.8Mt @ 3.5g/t Au for  Combined JORC 2004 Resource of 1.5Mt @ 3.1g/t Au for 185koz2 1.2Moz  Historical drilling suggests both  Reserve 2.6Mt @ 3.3g/t Au for 275koz deposits remain open

  7. Slide 7: Australia's next major gold mine

    KOTH – Australia’s next major gold mine  For personal use only Final Feasibility Study highlights3: Australia’s top 10 gold deposits  Initial 16-year mine life by Ore Reserve2  First production Jun-Qtr 2022 Mt g/t Moz  First 4 years open pit and underground mining, Cadia 1480.0 0.5 22.5 peaking

  8. Slide 8: KOTH geology is well understood

    KOTH geology is well understood For personal use only Mar-20 Mineral Resource1 Aug-20 Ore Reserve2 91Mt @ 1.4 g/t for 64.6Mt @ 1.2 g/t for 4.1Moz Au 2.4Moz Au  Ore body hosted in a substantial granodiorite-ultramafic intrusion  4km long x 2km wide  Historical understanding from previous open pit

  9. Slide 9: 4mtpa CIL plant with expansion capability

    4mtpa CIL plant with expansion capability For personal use only  Conventional 4Mtpa CIL plant Classification  Designed for future expansion to 6Mtpa with minimal interruption and low CAPEX Primary Gyratory Crusher  Order has been placed for SAG mill Gravity Circuit  Gyratory crusher with 6Mtpa i

  10. Slide 10: 16 year initial LOM – open pit and underground

    16 year initial LOM – open pit and underground For personal use only  Bulk open pit and underground mine  Start-up benefits from existing low-grade stockpiles (1.6Mt @ 0.6g/t) and Rainbow satellite pit  Minimal 3 months pre-strip required in FY22  Underground mining @ 1Mtpa for the first four ye

  11. Slide 11: Mine Plan optimises material movement over LOM

    Mine Plan optimises material movement over LOM For personal use only Cost of Production ($A/oz) Yrs 1-6 LOM  Mining to be undertaken by mining contractors Mining 895 908  Contractors to install mining facilities Processing 273 321  Open pit fleet forecast to include 250t excavators and 140t haul

  12. Slide 12: Final capital cost estimate in line with PFS

    Final capital cost estimate in line with PFS For personal use only A$M1 Processing and infrastructure 188 Owners costs 12 Sub-total 200 Contingency 19 Sub-total 219 Mining pre-strip 7 Total (Real) capital cost 226  Project to be built under an EPC contract (currently being tendered)  Over $25M con

  13. Slide 13: Pathway to production in 2022

    Pathway to production in 2022 For personal use only 2020 2021 2022 SQ DQ MQ JQ SQ DQ MQ JQ SQ DQ Final Feasibility Study approval Early site works Stage 2 permits Debt financing Financial Investment Decision EPC mobilisation Site construction Mill delivery Mine contractor mobilisation Commissioning

  14. Slide 14: A large gold mine generating substantial cash flow

    A large gold mine generating substantial cash flow1 For personal use only Pre-tax Unit $2,000/oz $2,250/oz $2,500/oz $2,750/oz $3,000/oz At a gold price of A$2,500/oz: Project cashflow $M 1,147 1,710 2,273 2,837 3,400 NPV8% $M 512 806 1,101 1,395 1,689  Free cashflow (after tax) of: IRR % 38.0% 51.

  15. Slide 15: KOTH project financing is underway

    KOTH project financing is underway For personal use only  Project Financing process has commenced with leading mining finance lenders  Target Project Finance debt of up to $165m  KOTH-allocated cash from FY20 equity raising was $105m  $10m spent to 31-Aug-20  Low-risk brownfield project is attr

  16. Slide 16: Red 5 transformation to a mid-tier gold producer

    Red 5 transformation to a mid-tier gold producer For personal use only  AISC and indicative mine reserve life of WA-based gold companies1,2  Gold companies/assets (Bubble Size = Indicative Production p.a) 1,850 Red 5 - Today The planned development of 1,750 Pantoro KOTH will position RED as a lead

  17. Slide 17: Red 5 EV/Reserve relative to its peers

    Red 5 EV/Reserve relative to its peers For personal use only  Valuation of WA based-gold companies1  Bubble Size = Enterprise Value Ramelius Resources 2,000 Silver Lake Resources Pantoro EV / Reserve (A$/oz) 1,500 1,000 Gold Road Resources Ora Banda Mining Regis Resources Dacian Gold St Barbara 50

  18. Slide 18: KOTH is a unique Project in uncertain times

    KOTH is a unique Project in uncertain times Growth of the Australian gold industry For personal use only  Top 10 Australian gold deposit by Ore Reserve  16 year LOM, average 176kozpa in Years 1-61  Flexibility to expand Mill throughput, extend underground mine life beyond 4 years Benefits to West

  19. Slide 19: Thank-you

    For personal use only Thank-you 19 www.red5ltd.com ASX Code: RED

  20. Slide 20: Red 5 – appendix

    For personal use only 20 Red 5 – appendix

  21. Slide 21: Order placed for 15MW SAG Mill

    Order placed for 15MW SAG Mill For personal use only Hardest Ore Design Mid High  15MW, dual synchronous motor Mill Power (kW) 9,272 10,859 12,445 semi-autonomous grind (SAG) mill with Grind Size (P80) 150 150 150 VVVF drive  Delivery to site is Tonnes Per Hour (tph) 500 586 671 expected in the Ju

  22. Slide 22: Further scope to increase production and extend LOM

    Further scope to increase production and extend LOM For personal use only  Future expansion in processing capacity  6Mtpa crushing circuit included in FFS design/cost  Oversize 4Mtpa SAG Mill selected  Design allowance for upgrade of the grinding, leaching and elution components  Minimal produc

  23. Slide 23: 2.4Moz Ore Reserve – an increase of 64%

    KOTH 2.4Moz Ore Reserve1 – an increase of 64% For personal use only Total KOTH Ore Reserves as at September 2020 Cut-off JORC 2012 Tonnes Gold Contained Deposit Mining Method (g/t) Classification (Mt) (g/t) Gold (Moz) KOTH Open pit 0.39 Probable 58.5 1.1 2.1 KOTH Underground 1.60 Probable 2.4 2.3 0.

  24. Slide 24: 4.1Moz Mineral Resource - increase of 31%

    KOTH 4.1Moz Mineral Resource1 - increase of 31% For personal use only Total Open Pit & Underground KOTH Resource as at March 2020 Cut-off Mining Tonnes Gold Contained Gold  Cut-off date for inclusion of Classification drilling data and mining (g/t) Method (000t) (g/t) (000oz) depletion as at 19 Feb

  25. Slide 25: Strong leadership team with operating expertise

    Strong leadership team with operating expertise For personal use only Red 5 has a strong and capable team, with many years of mining and development experience both at Red 5 and previously at multi-billion international development projects – the Company is well placed to deliver the KOTH developmen

  26. Slide 26: KOTH site early works preparation

    KOTH site early works preparation For personal use only Mar-20 Sep-20 Mineral FFS & Resource Jun-20 Reserve Dec-20 Mar-20 Long lead items/detailed design Early construction Equity Placement Project financing process Stage 1 Permitting Stage 2 Permitting Second-hand 240- bed camp purchased in June 20

  27. Slide 27: Siana Gold Project, Philippines

    Siana Gold Project, Philippines For personal use only  The Siana Gold Mine, owned by Philippine affiliated company Greenstone Resources, suspended mine operations in April 2017  Maintaining mill and pit dewatering to preserve value  Greenstone Resources is now evaluating its preferred plan and op

  28. Slide 28: KOTH 16 year initial LOM – open pit and underground

    16 year initial LOM – open pit and underground For personal use only  Bulk open pit and underground mine  Start-up benefits from existing low-grade stockpiles (1.6Mt @ 0.6g/t) and Rainbow satellite pit  Minimal 3 months pre-strip required in FY22  Underground mining @ 1Mtpa for the first four ye

  29. Slide 29: LOM Plan focussed on maximising value

    KOTH LOM Plan focussed on maximising value  Early years of LOM benefit from UG mining and For personal use only processing of high-grade ore  Potential to extend UG mining beyond FY27  Low-grade ore is stockpiled and processed in the back half of the LOM Plan  Lower AISC during Years 1-6 result

  30. Slide 30: KOTH satellite deposits – Resource of 308koz

    KOTH satellite deposits 1 – Resource of 308koz For personal use only  Maiden JORC Mineral Resources announced in May 20201: o Cerebus-Eclipse: Indicated and Inferred Resource of 2.8Mt @ 1.2g/t Au for 112,000oz o Centauri: Indicated and Inferred Resource of 1.7Mt @ 1.5g/t Au for 81,300oz  Adds to t

  31. Slide 31: LOM plan gold sales profile

    KOTH LOM plan gold sales profile1 For personal use only 1. Red 5 ASX Release: 15 September 2020. 31 www.red5ltd.com

  32. Slide 32: LOM plan sensitivities

    KOTH LOM plan sensitivities1 For personal use only 1. Red 5 ASX Release: 15 September 2020. 32 www.red5ltd.com

  33. Slide 33: KOTH is in the Top gold deposits in Australia

    KOTH is in the Top 20 gold deposits in Australia For personal use only Resources Reserves Mt g/t Moz Mt g/t Moz Cadia 3174.0 0.4 37.5 Cadia 1480.0 0.5 22.5 Boddington 931.1 0.6 17.4 Boddington 566.3 0.7 11.9 Golden Mile (100%) 272.6 1.4 12.0 Golden Mile (100%) 178.2 1.1 6.3 Tanami 65.5 4.3 9.1 Tanam

  34. Slide 34: Appendix – Australian top gold deposits

    Appendix – Australian top 20 gold deposits1 Resources Reserves Resources Reserves Mt g/t Moz Mt g/t Moz Mt g/t Moz Mt g/t Moz Cadia Newcrest For personal use only Sunrise Dam AngloGold Measured 32.0 0.30 0.3 Proven Measured 28.9 1.54 1.4 Proven 11.2 1.39 0.5 Indicated 3090.0 0.37 36.5 Probable 1480.

Red 5 — Diggers & Dealers Mining Forum 2020 on 6ix