Aurelia Metals Limited · ASX:AMI

Aurelia Metals — Investor Presentation (June 2019)

51 slides from Aurelia Metals's investor presentation, Jun 12, 2019

1. Slide 1: Building the Next Mid-Tier Gold and Base Metals Producer

   Building the Next Mid-Tier Gold and Base Metals Producer Investor Site Visit Presentation, June 2019 ASX Code: AMI

2. Slide 2: Forward looking statements

   Forward looking statements This presentation has been prepared by Aurelia Metals Limited (“AMI” or the “Company”). It should not be considered as an offer or invitation to subscribe for or purchase any securities in the Company or as an inducement to make an offer or invitation with respect to those

3. Slide 3: Corporate snapshot

   Corporate snapshot ASX code: AMI Share price (11 June 2019) $0.53 Shares on issue 867.9m Major shareholders Market capitalisation A$460m Colonial First State 6.1% Van Eck 5.7% Board and management AustralianSuper 5.2% Chairman and Acting CEO Cobb Johnstone Executive Director and Michael Menzies Acti

4. Slide 4: Investment highlights

   Investment highlights Two major processing plants Dominant position in the highly High-margin gold and base with a combined capacity of prospective Cobar Basin metals production profile approx. 1.3Mtpa Strong balance sheet: Upgrade and efficiency projects Recent drilling success A$109m cash and no d

5. Slide 5: Key assets

   Key assets Located in the highly endowed and productive Cobar Region Bourke Endeavour Zn/Pb/Ag (CBH- Toho) Australia CSA Cu (Glencore) NSW Nyngan Cobar Peak Au/Cu/Pb/Zn Mines Cobar Nymagee Cu Project Basin Hera Au/Pb/Zn Mine Wonawinta Ag Mallee Bull Cu/Pb/Zn Project (Peel/CBH) Newcastle ORANGE Parke

6. Slide 6: Core strategy

   Core strategy A mining-for-value approach 1 Optimise existing operations  Peak contract transition and Pb/Zn circuit  Mine life extension and ongoing efficiencies at Hera 2 Focus on returns  Margin over volume or commodity preference  Accelerating access to higher margin material for FY21 3 L

7. Slide 7: Building for extension and growth

   Building for extension and growth Calendar 2019 a transition period dedicated to establishing a new platform  March quarter impacted by reduced contribution from Chronos Au at Peak  FY19 guidance: approx. 115 koz gold at AISC of approx. A$1,000 per ounce  Investing in the business: Peak plant upg

8. Slide 8: A look at the year ahead: FY20

   A look at the year ahead: FY20 Investing in the business Peak Hera  Increased development rates (+80% on FY19)  Reduced gold grades countered by higher base  Pb/Zn circuit completion in March 2020 quarter; metals content allows 800ktpa milling across all mineral inventory  Reduced unit costs and

9. Slide 9: The exploration value driver

   The exploration value driver Significant recent drilling success  Enhanced financial ability and growing geological understanding of controls on mineralisation  Early stage but significant results at Federation; potential scale, polymetallic and strong grade tenor  Main Southeast down-plunge inte

10. Slide 10: Building value

    Building value 01 02 03 04 Robust operational Upgrade and Near-mine inventory Regional exploration base efficiency projects additions success  Peak: 4 year Reserve life  Peak Pb/Zn plant  Chronos Extensions,  Federation upgrade Pb/Zn  Hera: 4 year Reserve life  Dominion  Peak contract mining

11. Slide 11: Building Value in the Cobar Basin

    Regional foothold Highly strategic asset base in the polymetallic Cobar Basin with two major processing plants possessing a combined capacity of 1.3Mtpa Building Value in High margin output Established, high-value gold and base metals production profile the Cobar Basin Leveraging a strategic asset N

12. Slide 12: Peak Mines

    Peak Mines 12

13. Slide 13: Safety at work

    Safety at work Driving the focus Total Recordable Injury Frequency Rate (Rolling) and  While very low severity events, recent TRIFR Monthly Injuries trend is a key focus 35.00 4  Significant change dynamics: ownership 30.00 handover, transition to contract mining 25.00 3  Key management personnel

14. Slide 14: Social licence to operate

    Social licence to operate Targeting a positive, sustainable local operating presence  Seeking strong community relationships  Quarterly town hall meetings and information sessions  Community Consultative Committee  Funding contributions for local community projects  Event volunteer support  Ef

15. Slide 15: A stellar acquisition

    A stellar acquisition Solid base with high margin highlights  Payback on net A$59M purchase price within 4 months  Reserves provide 4+ year life plus large Resource base delivers significant life extension potential  Strong history of replenishment (we expect to replace reserve depletion in past

16. Slide 16: Operating improvement continuing

    Operating improvement continuing  Contract mining transition in March 2019 quarter  Increasing underground development rates  Progressive throughput ramp-up with significant unlock expected from late FY20  Successful focus on reducing external water requirements Peak Mine - Monthly Ore Milled Pe

17. Slide 17: Upgrade and efficiency projects

    Upgrade and efficiency projects A year of transition – investing in the business  Ongoing focus on increasing productivity Peak 2018 Ore Reserves1 and reducing unit operating costs Peak (Pb/Zn) Tonnes NSR Au Pb Zn Ag Cu (kt) ($/t) (g/t) (%) (%) (g/t) (%)  Targeting delivery of a sustainable, long-

18. Slide 18: Pb/Zn circuit installation

    Pb/Zn circuit installation Unlocking the high-grade base metals prize  Enables treatment of high margin Pb/Zn ore at 800ktpa throughput rate  Separate concentrate streams = higher payabilities  Revised capital cost estimate of A$53M  Increased complexity  Elongated approval timeframes (now reso

19. Slide 19: Chronos Pb/Zn plant trial: April 2019

    Chronos Pb/Zn plant trial: April 2019  Existing circuit with Chronos Pb/Zn feed  10kt ore parcel processed at 39tph  Saleable Pb and Zn/bulk concentrates produced  Demonstrated capability of processing under current plant setup at lower rates 19

20. Slide 20: Contract mining transition

    Contract mining transition Driving underground efficiencies  Transition to contract UG mining with PYBAR Peak lateral development metres 600  Lift underground development rates  Reduce unit operating costs 500  Workforce changeover largely complete Transition to contract mining 400 from February

21. Slide 21: Southern mine corridor

    Southern mine corridor Perseverance/Chronos Development Peak Development 21

22. Slide 22: Recent high-margin drilling success

    Recent high-margin drilling success Delineating further high value plant feed  Improved understanding of controls  Enhanced ability to test for ‘repeat’ deposits  Upper Chronos extension (further 100m), high value Pb/Zn material  High margin Kairos (Peak Deeps) material  Potential Chronos repla

23. Slide 23: Peak: The focus ahead

    Peak: The focus ahead Delivering on the operating and revenue transition 1 Increased development rates and focus  Access to more stoping blocks = higher throughput = lower overall unit costs from late FY20 2 Prioritising access to high margin ore  Mining of residual Chronos Au  Progressive Chro

24. Slide 24: Hera Mine

    Hera Mine 24

25. Slide 25: Safety is at the core of our business

    Safety is at the core of our business Continual improvement focus  Significant improvement in Total Hera - Total Recordable Injury Frequency Rate (TRIFR) Recordable Injury Frequency Rate (TRIFR) 30 3  Facilitated by increased hazard reporting 25 over past 18 months 20 2 15 10 1 5 0 0 Number of inj

26. Slide 26: Social licence to operate

    Social licence to operate Seeking to deliver mutual benefit  Community a critical stakeholder  Positive and supportive relationship with the Nymagee community  Funding contributions to key local projects  Sealing of Whitebarrow Way (last 7kms of dirt road between Hermidale & Nymagee)  Nymagee t

27. Slide 27: Consistent performance

    Consistent performance Reliable high margin output  Established and now consistent performer Hera 2018 Ore Reserves1 Tonnes NSR Au Pb Zn Ag Cu  Operating at approx. 480ktpa Hera (kt) (A$/t) (g/t) (%) (%) (g/t) (%)  North Pod and Far West Deeps now in Reserves 1,117 256 3.05 2.84 4.36 22.7 N/A pro

28. Slide 28: Efficiency gains showing

    Efficiency gains showing  480ktpa mill throughput  Targeting gold plant recovery of 93%, post cyclone upgrade  Power generated on site, with water self-sufficiency from borefields and underground workings A$/t processed Hera Mine - On-Site Unit Costs t Hera Mine Sustaining Capital Costs - process

29. Slide 29: Efficiency gains showing

    Efficiency gains showing  Throughput and gold recovery gains softening impact of head grade decline  North Pod mining set to improve base metals production relative to FY19 Koz Hera Mine Hera Mine Ounces recovered vs head grade t Base metal head grade vs production 20 7.0 7.0% 7,000 Zinc productio

30. Slide 30: Driving productivity

    Driving productivity  Contract mining (Pybar)  Bottom up long hole mining using waste as backfill, and Avoca style  Average development requirement reduced to approx. 150m/month  UG throughput capacity 480ktpa  Target 3 active stoping areas open Equipment Description Quantity Development Drill

31. Slide 31: North Pod mining commenced

    North Pod mining commenced 31

32. Slide 32: Three active mining fronts

    Three active mining fronts 32

33. Slide 33: Processing layout

    Falcon Jig and Processing layout Concentrate Cyanidation Concentrator Spinners to and Intensive Intensive Leach Filtration and Storage Leach Reactor Reactor Up to 70tph Froth Flotation (480ktpa) Merrill Crowe 400kW Primary & 280kW (Outotec) Roughers Circuit Secondary Tower Mill VSI/Closed Circuit an

34. Slide 34: Ready life extension

    Ready life extension Forecast operating life expected to increase to 2023  Strong drilling results during FY19 outside of Ore Reserve and Mining Inventory boundaries (eg Upper North Pod)  Reduced cost structure and lower development requirements  Combination is expected to drive forecast operatin

35. Slide 35: Nymagee outcomes

    Nymagee outcomes Exercising technical and financial prudence  Metallurgy focus  PFS placed on hold  Recent metallurgical results  Enhanced depositional understanding  Higher work index (ore hardness)  Re-scoping and exploration focus  Potential to revisit PFS deferral decision with future exp

36. Slide 36: Hera: The focus ahead

    Hera: The focus ahead Driving life and margin 1 Strong production and cost performance 2 Testing immediate perimeters of Hera orebody 3 Acceleration of Federation and Dominion exploration 36

37. Slide 37: Exploration

    Exploration 37

38. Slide 38: The FY20 exploration strategy

    The FY20 exploration strategy Investing judiciously in the drill bit  A$15M approved budget (vs approx. A$8M spent in FY19)  Recognition of value potential from staged investment in drilling Evidenced by success in the past year:  High grade Kairos (Peaks Deeps) discovery  Regional discoveries a

39. Slide 39: Cobar Line-of-Lode

    Cobar Line-of-Lode Targeting high margin mineralisation  World-class mining area with long history of discovery  Prospective trend extends over 10 km  Multiple high tonnage and/or high grade deposits along the full strike  Focus on discovery of new high margin Peak/Perseverance-style orebodies 

40. Slide 40: Chronos

    Chronos Significant up-dip potential  High margin Pb-Zn ores [Upper Chronos / Peak Deeps long section]  Recent drilling extends lode more than 100 metres above current resources/reserves  Very strong base metals, including:  19m at 34.1% Pb+Zn & 0.9g/t Au  15m at 35.1% Pb+Zn, 2.3g/t Au  24m at

41. Slide 41: Kairos (Peak Deeps) discovery

    Kairos (Peak Deeps) discovery The next Chronos?  Discovered early 2019  Mineralisation style similar to Chronos  Directly beneath Peak decline development  Very high grade intercepts, including:  16m at 71.6g/t Au & 8.5% Pb+Zn  14m at 42.9g/t Au & 13.4% Pb+Zn  23m at 25.9g/t Au & 33.2% Pb+Zn

42. Slide 42: Hera-Nymagee region

    Hera-Nymagee region Upside potential from targeted exploration  Highly prospective, under-explored corridor  Dominant land-holding  Strong pipeline of exploration targets within 15km of Hera  Recent near mine and regional exploration success  Federation  Dominion  Main Southeast  Athena  La

43. Slide 43: Federation discovery

    Federation discovery Accelerating evaluation work  Very recently discovered (April 2019)  10km south-southwest of Hera  Multiple high grade intercepts include:  5m at 22.6% Pb+Zn & 3.1g/t Au  6m at 21.1% Pb+Zn & 0.3g/t Au  6m at 16.9% Pb+Zn & 0.6g/t Au  New massive & semi-massive intercept at

44. Slide 44: Dominion discovery

    Dominion discovery Oxide and sulphide potential  Discovered September 2018  Gold-bearing gossan at surface  Significant oxide mineralisation:  97m at 1.0% Cu, 2.4% Pb+Zn  54m at 0.9% Cu, 0.9% Pb+Zn  Copper sulphides recently intercepted:  5m at 2.8% Cu & 8g/t Ag  5m at 2.2% Cu & 5g/t Ag  Re

45. Slide 45: Hera North Pod

    Hera North Pod Extending Hera’s mine life  High grade Pb-Zn-Au-Ag mineralisation  Highest tonnage ore source at Hera  2018/19 drilling extends lode up-dip, including:  7m at 45.1% Pb+Zn, 229g/t Ag & 1.4g/t Au  6.4m at 43.6% Pb+Zn, 263g/t Ag & 0.3g/t Au  14m at 18.3% Pb+Zn, 188g/t Ag & 0.8g/t A

46. Slide 46: Main Southeast Deeps discovery

    Main Southeast Deeps discovery Near mine potential  Very recent discovery (May 2019)  Directly along trend south of Hera  Initial drilling returns strong sulphide mineralisation:  23m at 7.5% Pb+Zn, incl. 8m at 14.5% Pb+Zn  Open up-dip, down-dip and to the south  Close to existing underground

47. Slide 47: Athena prospect

    Athena prospect Shallow gold potential?  2.5 km southeast of Hera Mine  On existing Hera Mining Lease ML1686  Significant gold-in-soil anomalism  Reconnaissance RC drilling completed May 2019  Gold mineralisation intercepted in northern area:  6m at 1.7g/t Au from 86m  1m at 6.5g/t Au from 98

48. Slide 48: Appendix

    ” er Appendix - -«

49. Slide 49: 2018 Mineral Resources estimates

    2018 Mineral Resources estimates1 Tonnes NSR Au Pb Zn Ag Cu Hera Resource Estimate (kt) (A$/t) (g/t) (%) (%) (g/t) (%) Measured 1007 248 2.6 2.7 4.2 20 N/A Indicated 951 228 2.7 2.1 3.2 17 N/A Inferred 558 239 1.7 3.5 4.7 51 N/A Total 2,516 238 2.44 2.65 3.93 25.7 N/A * Based on a $120/t NSR Cutoff

50. Slide 50: 2018 Ore Reserves estimates

    2018 Ore Reserves estimates1 Tonnes NSR Au Pb Zn Ag Cu Hera Reserve Estimate (kt) (A$/t) (g/t) (%) (%) (g/t) (%) Total 1,117 256 3.05 2.84 4.36 22.7 N/A Peak (Au/Cu/Pb) Reserve Estimate Tonnes NSR Au Pb Zn Ag Cu (kt) (A$/t) (g/t) (%) (%) (g/t) (%) Proven 290 185 1.67 0.1 N/A 1.67 1.77 Probable 1,753

51. Slide 51: Competent Person(s) Statements

    Competent Person(s) Statements Peak Mines Resource and Ore Reserve Estimates The resource estimates have been prepared by Chris Powell, BSc, MAuslMM, who is a full time employee of Aurelia Metals Limited. The Ore Reserves were compiled by Jim Simpson, BE Min Eng, MAusIMM, who CEO of Aurelia Metals.

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