Saracen Mineral Holdings Limited
Saracen Mineral — Doray Minerals — Diggers and Dealers 2014
30 slides from Saracen Mineral's conference presentation, Aug 6, 2014
Slide 1: Diggers and Dealers 2014 – Doray Minerals Limited
Diggers and Dealers – 2014 Allan Kelly Managing Director Doray Minerals Limited A new high-grade gold producer with substantial upside ASX:DRM
Slide 2: Disclaimer – Forward Looking Statements
Disclaimer – Forward Looking Statements This presentation is not a prospectus nor an offer for securities in any jurisdiction nor a securities recommendation. The information in this presentation is an overview and does not contain all information necessary for investment decisions. In making invest
Slide 3: This time last year…
This time last year… First gold pour from Andy Well – 5 August 2013 ASX:DRM
Slide 4: One year on…
One year on… Successful transition from explorer/developer to high-margin producer Andy Well Gold Project Met production and cost guidance in first year Production 76,785oz @ 10.8g/t Au 2014FY average Cash cost $522/oz, average AISC $1,044/oz Exploration/New Business Maiden high-grade Judy R
Slide 5: Doray Minerals Ltd - Key Advantages
Doray Minerals Ltd - Key Advantages • Andy Well Gold Project amongst highest grade and highest margin gold operations in Australia over the last 12 months • Wilber Lode underground gold mine: • Pre-mining Indicated Resource 297koz @ 17g/t* Grade • BFS underground mining inventory 262koz @ 11.4g/t* •
Slide 6: Corporate Snapshot
Corporate Snapshot ASX Code : DRM DRM.ASX XGD.ASX 245% Shares on Issue 164.7M 225% Options ($0.20 - $2.08) 9.4M 205% 12 Month Share Price $0.35 - $1.10 185% 165% Market Cap (@$0.79) $114M 145% Cash and gold (June 2014) $21.4M 125% Debt (June 2014) $13.9M 105% 85% Enterprise Value $107M Jun 13 Aug 13
Slide 7: Strengthening the Balance Sheet
Strengthening the Balance Sheet 60 Production Rapid Debt reduction Debt reduced by $41M 40 (approx. 75%) to date Low interest rate margin 20 Hedging Programme 45koz @ A$1,620/oz (to Sept 14) $millions 0 39koz @ A$1,505/oz Jun-12 Sep-12 Dec-12 Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 Jun-14 (Oct 14
Slide 8: Experienced Board/Management
Experienced Board/Management Board Peter Alexander Non-Executive Chairman – Geologist Allan Kelly Managing Director – Geologist (AMEC Prospector Award, 2014) Jay Stephenson Non Executive Director – Accountant Leigh Junk Non Executive Director - Mining Engineer Management Team Peter Bamford General M
Slide 9: Andy Well Gold Project
Andy Well Gold Project Australia’s new high-grade gold operation ASX:DRM
Slide 10: Andy Well Gold Project
Andy Well Gold Project Australia’s new high-grade gold operation Standalone, high-grade underground gold mine and processing plant 45km north of historic gold mining town of Meekatharra, Western Australia First new gold operation in the Murchison region in over 10 years • Discovery - March 2010
Slide 11: Wilber Lode Progress (at June)
Wilber Lode Progress (at 30 June) Future stage 2 pit Hanging wall drives Middle decline and x-cuts ASX:DRM
Slide 12: 2014FY Summary
2014FY Summary 2014FY Guidance Gold Mined 62,574oz Mined Grade 10.8g/t Gold Produced 76,785oz 75-80koz Head Grade 10.8g/t Gravity recovery 78% Cash Operating Cost (C1) $522/oz $480-530 All-In Sustaining Cost (AISC) $1,040/oz $970-1,050 Gold Sold 73,208oz Revenue $110.3M Average gold price received $
Slide 13: Wilber Lode Extensional Drilling
Wilber Lode Extensional Drilling ASX:DRM
Slide 14: Wilber Lode Extensional Drilling
Wilber Lode Extensional Drilling 0.9m @ 57.0g/t Au from 762.9-763.8m 160m below previous drilling ASX:DRM
Slide 15: Judy Lode Reserve
Judy Lode Reserve ee Judy South Inferred Resource Judy South Indicated Resource Judy North Inferred Resource Judy North Indicated Resource Planned Judy Underground Developement Judy South Probable Reserve 203,000 t @ 8.8g/t Au for 58,000 oz Planned Wilber Underground Developement ANDY WELL PROJECT @
Slide 16: Judy Lode Reserve
Judy Lode Reserve Second high-grade Reserve replaces first year production Judy Lode Ore Reserve • 203,000t @ 8.8g.t Au (58,000oz) Quartz lode in basalt High conversion from updated Judy Lode Indicated Resource Access from Wilber Lode middle decline ASX:DRM
Slide 17: Suzie Zone – 3rd high-grade gold discovery
Suzie Zone – 3rd high-grade gold discovery ASX:DRM
Slide 18: Exploration
Exploration Building on our success… ASX:DRM
Slide 19: Growth Strategy
Growth Strategy Leverage off Andy Well infrastructure New standalone opportunities Northern New Andy Well Regional Murchison Opportunities Wilber Gnaweeda JV’s Horse Well JV Judy Abbotts Project deals Suzie South Aus Other Meeka East M/A targets ASX:DRM
Slide 20: Andy Well Exploration
Andy Well Exploration Potential for a significant new high-grade gold camp Near mine exploration currently provides best return on investment Numerous mineralised structures identified beneath shallow cover Lack of historical deep drilling Key targets: • Wilber Lode resource extensions • Jud
Slide 21: Andy Well – developing a prospect pipeline
Andy Well – developing a prospect pipeline Wilber • Production Judy South • Reserve/Feasibility Suzie Zone • Resource drill-out Suzie South • Advanced Exploration Wilber deeps Wendy, Suzie North, Kirsty, • Target testing Wilber hanging wall Charlotte, Felicity, Judy North • Target definition Wendy E
Slide 22: Northern Murchison
Northern Murchison Gnaweeda Gold Project Strategic land package with historic high-grade drill intercepts within trucking distance of Andy Well Turnberry – St Annes • 3m @ 23.4g/t Au (GNRC007) • 6m @ 11.9g/t Au (GNRC009) • 3m @ 12.8g/t Au (GNRC003) • 5m @ 5.9g/t Au (GNRC008) • 14m @ 6.0g/t Au (G
Slide 23: Regional – Horse Well JV
Regional Horse Well JV - the next Yandal Belt? New JV farm-in agreement with Alloy Resources Ltd (ASX:AYR) Similar geology and structural settings to multi-million ounce Yandal Belt with Nimary-Jundee and Granny Smith deposit analogues Low-risk entry to highly prospective greenfields gold proj
Slide 24: Regional – Horse Well JV
Regional Horse Well JV - the next Yandal Belt? Limited exploration history - extensive shallow cover Crack of Dawn • 11m @ 3.5g/t Au Dusk til Dawn • 30m @ 2.0g/t Au Drilling to commence in 2nd half of CY2014 Refer to ASX Announcement dated 23 May 2014 ASX:DRM
Slide 25: Summary
Summary Doray Minerals Limited is new high-grade gold producer with substantial upside Doray has successfully made the transition from explorer and developer to high-margin producer and has delivered against its first year production and cost guidance at Andy Well The Andy Well Gold Project is t
Slide 26: ARE YOU
ARE YOU ONE OF HE 22000 WORKING TY wa aw a ay ae GE tata Yee } BN? jaate: seheartotaald é | Colt i # heart of gold www Reart of gold. natu GRRG
Slide 27: Thank you
Thank you www.dorayminerals.com.au ASX:DRM
Slide 28: Appendices – Ore Reserve Inventory
Appendices Wilber Lode Ore Reserve Inventory – 30 June 2013 Reserve Proven Probable Total Grade Grade Grade Tonnes Ounces Tonnes Ounces Tonnes Ounces (g/t) (g/t) (g/t) Open Pit Stage 2 - - - 28,000 15.3 13,000 28,000 15.3 13,000 Wilber Underground - - - 600,000 11.4 220,000 600,000 11.4 220,000 HG s
Slide 29: Appendices – Mineral Resource Inventory
Appendices Wilber Lode Mineral Resource Inventory – 30 June 2013 Measured Indicated Inferred Total Grade Grade Grade Grade Tonnes g/t Ounces Tonnes g/t Ounces Tonnes g/t Ounces Tonnes g/t Ounces Wilber Lode - - - 569,000 15.4 281,000 174,000 6.7 38,000 743,000 13.3 318,000 HG stockpiles 36,000 12.0
Slide 30: Appendices – Competent Persons Statement
Appendices COMPETENT PERSONS STATEMENT The information in this announcement that relates to Exploration Results is based on information compiled by Mark Cossom. Mr Cossom is a full-time employee of Doray Minerals Ltd and is a Member of the Australasian Institute of Mining and Metallurgy (AusIMM). Mr