Capricorn Metals Ltd · ASX:CMM
Capricorn Metals — Shareholder Meeting (November 2017)
36 slides from Capricorn Metals's shareholder meeting presentation, November 2017
Slide 1: 2017 - Annual General Meeting
2017 - Annual General Meeting A compelling opportunity in the Australian gold sector November 2017
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: Board
Board Corporate Heath Hellewell (BSc (Hons)) – Executive Chairman • Geologist with +23 years experience in gold, base metals & diamonds • Co-founding Executive Director of Doray Minerals, and previous senior positions with Independence Group NL, Resolute Mining and DeBeers Australia Corporate Inform
Slide 4: Share Price Performance
Share Price Performance capmetals.com.au 4
Slide 5: 2017 Achievements
2017 Achievements Resource Growth and Progress Towards Development Karlawinda Project April 2017 Resource upgraded (31Mt @ 1.1g/t Au for 1,114,000oz) June 2017 Metallurgical studies completed Aug 2017 Maiden Ore Reserve (21Mt @ 1.06g/t Au for 713,000oz) Oct 2017 Feasibility study completed Nov 2017
Slide 6: Resource and Reserve Growth
Resource and Reserve Growth A simple, straightforward development and growth opportunity capmetals.com.au 6
Slide 7: A Compelling Opportunity in the Australian Gold Sector
A Compelling Opportunity in the Australian Gold Sector A Straight Forward Project Premier Mining Location 60km south east of Newman in Western Australia • 1400km2 of 100% owned exploration and mining tenements • Road access via the Great Northern Highway and Coobina Mine Road • 45 minute drive to se
Slide 8: A Compelling Opportunity in the Australian Gold Sector
A Compelling Opportunity in the Australian Gold Sector De-risked by Feasibility Study Bibra Deposit - Open Pit Ore Reserve Ore Reserve 21Mt @ 1.06 g/t Au for 713,000oz (Probable)1 • Ore Reserve conversion rate 70% at A$1500/oz Firm “Base Case” Project Economics 3.0Mtpa plant to produce 100,000oz pa
Slide 9: A Compelling Opportunity in the Australian Gold Sector
A Compelling Opportunity in the Australian Gold Sector Ongoing Project Optimisation Process Plant and Infrastructure Formal EPC tender process underway • Competitive process likely to deliver Capex and Opex savings and design improvements • Guaranteed Maximum Price (GMP) Project Power Solution Ongoi
Slide 10: A Compelling Opportunity in the Australian Gold Sector
A Compelling Opportunity in the Australian Gold Sector Exploration will Continue to Deliver Immediate Project Upside Resource Growth Current post FS (November 2017) Mineral Resource of 38.3Mt @ 1.1 g/t Au for 1,326,000oz • 100% Growth in resource base since acquisition (February 2016) • 20% increase
Slide 11: A Compelling Opportunity in the Australian Gold Sector
A Compelling Opportunity in the Australian Gold Sector “First Mover” Opportunity with Proven Endowment Bibra is not the only potential multi-million ounce gold system at Karlawinda Francopan and K3 (~5km from Bibra) Francopan: Mineralised system of comparable scale to Bibra, with a demonstrated high
Slide 12: Capricorn Orogen - Regional Geology
Capricorn Orogen - Regional Geology Karlawinda – A new gold discovery in a premier mining district capmetals.com.au 12
Slide 13: Karlawinda, First Class WA Location
Karlawinda, First Class WA Location Premier Mining Jurisdiction capmetals.com.au 13
Slide 14: Karlawinda, Project Geology
Karlawinda, Project Geology • First-mover opportunity in emerging Unlocking the potential of a new gold camp Archaean greenstone province • Analogous with Plutonic Dome (+10Moz) • Proven camp-scale multi million ounce potential • Limited early stage exploration outside the immediate Bibra Deposit •
Slide 15: Feasibility Study
Feasibility Study
Slide 16: Bibra Gold Deposit
Bibra Gold Deposit Predictable mineralised system • Bibra Deposit defined over a 1.1km strike length • Drilled 800m down-dip and remains open • Broad ore zones up to 50m wide • Mineralisation best developed in large dilational shoots/fold hinges within the shear system • Biotite, carbonate, magnetit
Slide 17: Open Pit Mining
Open Pit Mining Bibra Deposit- large tonnage, low strip ratio • Single large-scale, multi-staged open pit • 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 Tonnes Grade
Slide 18: Open Pit Mining
Open Pit Mining Bibra Deposit- Contract/Owner Operator FS Assumptions • Contract grade control • 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 blast patterns • Ensure material
Slide 19: 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 • Potential to increase annual throughput in primary ore
Slide 20: Metallurgy & Processing
Metallurgy & Processing Conventional Processing, High Recoveries Recovery Testwork Comminution Testwork Scoping Study FS (June 2017) Test Ore Units Scoping FS Test Ore Type Units Grade (g/t) Recovery (%) Recovery (%) SMC (A*b) Oxide 87 89 (P80 grind size) (P80 grind size) Laterite % 1.4 - < 10 Fresh
Slide 21: Metallurgy & Processing
Metallurgy & Processing Conventional Processing/High Recoveries capmetals.com.au 21
Slide 22: 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 23: Capital Cost Summary
Capital Cost Summary A simple, straightforward development and growth opportunity Item Feasibility Study (September 2017) (A$) Processing Plant (EPC) (3.7Mtpa oxide/ 3.0Mtpa primary ore) $90.7M • EPC process underway Plant Infrastructure (EPC) (Plant buildings and workshops, $8.7M borefield) • Guara
Slide 24: Operating Cost Summary
Operating Cost Summary A simple, straightforward development and growth opportunity Item LOM Cost LOM Cost / LOM Cost / (A$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
Slide 25: 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 2Q 2018 • Preference is for traditional bank project financing • Pru
Slide 26: Timeline
Timeline A simple, straightforward development and growth opportunity capmetals.com.au 26
Slide 27: Exploration
Exploration
Slide 28: 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 230 • Francopan, wide-spaced
Slide 29: Bibra Gold System
Bibra Gold System Predictable, structurally controlled mineralised system • Large scale Archaean mineralised system comprising multiple large scale ore zones • Broad shoots developed along low angle mineralised structures • Multiple trends only partially drill tested • Shoots are continuous down plu
Slide 30: Bibra Gold Deposit
Bibra Gold Deposit Continuous shoots down plunge capmetals.com.au 30
Slide 31: Portrush Zone
Portrush Zone Near Surface Extensions • Portrush Zone • 25m @ 2.28 g/t Au from 77m • 28m @ 1.47 g/t Au from 65m • 10m @ 1.41 g/t Au from 56m and 10m @ 1.78 g/t Au from 98m • 14m @ 2.06 g/t Au from 2m capmetals.com.au 31
Slide 32: 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 33: Appendices – Reserves & Resources
Appendices – Reserves & Resources
Slide 34: 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 35: 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 36: To create superior shareholder value through the discovery
“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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