Sundance Resources — Silver Lake Resources — Investor Presentation (August 2014)
46 slides from Sundance Resources's investor presentation, Aug 1, 2014
Slide 1: Investor Presentation
Investor Presentation Les Davis - Managing Director ASX: SLR ABN: 38 108 779 782 www.silverlakeresources.com.au
Slide 2: Important Notice and Disclaimer
Important Notice and Disclaimer Disclaimer: Silver Lake Resources Limited (“Silver Lake” or “the Company”) has prepared this presentation based on information available to it. No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the
Slide 3: About Silver Lake Resources
About Silver Lake Resources Gold producing and exploration company based solely in Western Australia Great Southern Project: – Resources contain 1Moz of gold, 10Moz of Silver & 100kt of Copper1 Murchison Gold Operations: – placed on care & maintenance in July 2014 Mount Monger Operations - Core asse
Slide 4: Company Overview
Company Overview ASX Code: SLR Directors Ordinary Shares 503.2 million Paul Chapman Chairman Options Outstanding 2.0 million Les Davis Managing Director Market Cap: A$0.50 per share A$252 Million Luke Tonkin Director of Operations Average Daily Volume: 5.0M shares (A$2.5M) Chris Banasik Director Exp
Slide 5: Mount Monger Gold Camp - Produced 1.7Moz
Mount Monger Gold Camp - Produced 1.7Moz Mount Monger Region Produced 0.9Moz c1897 -2007 Produced 0.8Moz 2007 – 2013 Golden Mile “Fragmented for 100 years Produced 56Moz now unified under Silver Lake Res’s/Res’v 12Moz ownership” Produced 4Moz Res’s/Res’v 2Moz Produced 1.7Moz Resources & Reserves = 3
Slide 6: Mount Monger Operations - Overview
Mount Monger Operations - Overview Daisy Complex Cock-eyed Bob Wombola Dam 1.2 Mtpa Randalls Mill Slide 6
Slide 7: Mount Monger Operations - FY15 Ore Sources
Mount Monger Operations - FY15 Ore Sources Surface Stockpiles ~1.2 g/t Au Wombola Dam (2.0 - 2.5 g/t Au) Open Daisy Complex & CEB (6.5 - 7.0 g/t Au) All ore sources fed to Randalls 1.2mtpa mill Several projects undergoing evaluation with the view of displacing lower margin ounces from surface stockp
Slide 8: Lakewood Mill - Expressions of Interest
Lakewood Mill - Expressions of Interest SLR production - 2008 to 2014: Access Road – 2.9Mt @ 5.1 g/t Au = 450koz – sourced from underground & open pit mines Weigh Bridge Expressions of interest being sought: – toll treatment ROM Pad Open – divestment Crusher Key Attributes: CIL,Gravity Circuits – st
Slide 9: Mount Monger Going Forward
Mount Monger Going Forward Short term production options under evaluation: – Rumbles – Lucky Bay Medium term growth options: – develop Majestic and Imperial deposits – develop Maxwells underground mine – advance Magic deposit Exploration: – Daisy upper – West & East of Daisy Complex – Lorna Doone –
Slide 10: Daisy Complex - Core Asset
Daisy Complex - Core Asset Since Inception to July 2014: 2.6 million tonnes at 7.3 g/t Au for 600koz Christmas Flats Ventilation Shaft - 200 Rosemary Dinnie Riggio Western Make Daisy East Upper Stanley Potential - 400 Haoma Open Open Daisy Milano Exploration Haoma West Focus - 600 Current depth of m
Slide 11: Narrow Vein Selective Mining Methods
Narrow Vein Selective Mining Methods Airleg Mechanised Slide 11
Slide 12: Daisy Complex - Changing Ore Body at Depth
Daisy Complex - Changing Ore Body at Depth Christmas Flats Ventilation Shaft - 200 Rosemary Dinnie Riggio Western Make East Stanley - 400 Haoma Open Open Daisy Milano Haoma West - 600 Current depth of mine development ~680 metres - 800 West Open Slide 12
Slide 13: Daisy Complex - Changing Ore Body at Depth
Daisy Complex - Changing Ore Body at Depth Haoma - Multiple Structures 3950 Level 2.5 to 3mW Mining Width Haoma Structure is no longer being mined across multiple veins at the 39 level Ore driving to date indicates a relatively consistent 2.5m to 3mW mining width 39 level and below, where amenable,
Slide 14: Daisy Complex - North Fault
Daisy Complex - North Fault Previously interpreted that the North fault was the terminating structure Drilling intersected high grade intercepts up to 470 g/t Au, open to the North, up & down dip Extensional drilling planned on associated parallel surfaces 1. Drill intercepts are historic and have b
Slide 15: >30 km of BIF Host Rock at Randalls
>30 km of BIF Host Rock at Randalls 14m at 5.6 g/t Au 2m at 55.1g/t Au 10m at 4.8 g/t Au 4m at 11.1 g/t Au 5m at 13.2 g/t Au 1m at 42.5 g/t Au 9m at 6.3g/t Au 4m at 11.5 g/t Au 5m at 7.5 g/t Au 1m at 45.4g/t Au 3m at 8.2 g/t Au 4m at 4.8 g/t Au 7m at 8.1g/t Au 5m at 5.3 g/t Au 3m at 6.6 g/t Au Signi
Slide 16: Cock-eyed Bob
Cock-eyed Bob Current Status: – current decline development accesses 2 levels – vertical depth only 125 metres from surface – ore driving in progress – small mechanised mining fleet Open Mining vs Drilling: – less expensive than drilling – provides better geological information Cock-eyed Bob Portal
Slide 17: Cock-eyed Bob - Ore Development & Stoping
Cock-eyed Bob - Ore Development & Stoping Previously Mined & Back Filled Open Pit Open Deposit located on south west limb of BIF mineralisation FY15 mined grade expected to be 5-6 g/t Au Development & stoping to date indicates variability along strike & up dip Deposit contains high, medium & low gra
Slide 18: Maxwells Deposit
Maxwells Deposit Open pit: – completed June 2014 – SLR produced 945kt at 2.7 g/t Au = 81koz – open pit produced >1,000 ounces per vertical metre Drilling below completed open pit includes1: Maxwells Open Pit - Looking South (December 2013) − 3.4 metres at 12.8 g/t Au from 150 metres − 4.6 metres at
Slide 19: Maxwells - Underground Potential
Maxwells - Underground Potential Previously Mined Open Pit Open Maxwells schematic long section showing historic drill holes and south plunging shoots Deposit located on central limb of BIF mineralisation Underground evaluation in progress 1. Drill intercepts are historic and have been preciously an
Slide 20: Majestic & Imperial
Majestic & Imperial Project now 100% Silver Lake – previously 85% Imperial Underground – recently acquired joint venture interest Majestic Deposit1: – open pit – Reserve: 645kt at 2.40 g/t Au = 50,000 ounces Open – pre-strip currently planned for Q4 FY15 Majestic Open Pit Imperial Deposit1: − high g
Slide 21: Majestic & Imperial - Upside Potential
Majestic & Imperial - Upside Potential Open Geophysics indicate potential for hangingwall mineralisation at Imperial Drill programme in Sep 2014 quarter to test Slide 21
Slide 22: Lorna Doone - Drilling In Progress
Lorna Doone - Drilling In Progress Lorna Doone Deposit: – Resource1: 1.3mt at 4.3 g/t Au for 176.6koz 2 stage exploration programme – #1: infill drilling in progress for open pit Open – #2: deeper drilling for underground Significant thick intersections2: − 3.0m at 17.5 g/t Au − 1.5m at 36.2 g/t Au
Slide 23: Magic Deposit
Magic Deposit Magic Deposit: Post Mined Mirror Pit – Resource: 256,500 oz1 – potential underground mine – requires finalisation of metallurgical test work – preliminary test work 2 oz per tonne concentrate – toll treatment options being explored Open Magic Deposit Conceptual mine plan: − base case:
Slide 24: Mount Monger - Exploration Upside
Mount Monger - Exploration Upside History of camp: – only consolidated in last 7 years – previously localised exploration rather than big picture – multiple geological domains – each domain has contained economic mines Drilling (79,000 holes): − 71% less than 50 metres − clear opportunities under co
Slide 25: Mount Monger - Multiple Geological Domains
Mount Monger - Multiple Geological Domains Slide 25
Slide 26: Summary
Summary Mount Monger - Primary focus, high grade operation with exploration upside: – FY14 All in Sustaining Cash Cost = A$1,0701 oz – multiple mines in production & pipeline of enhancing projects – fed to centralised 1.2mtpa Randalls Mill Broome – FY15 guidance of 125-135koz of gold, reviewed at th
Slide 27: Presentation Appendix
Presentation Appendix ASX: SLR ABN: 38 108 779 782 www.silverlakeresources.com.au
Slide 28: Great Southern
Great Southern ASX: SLR ABN: 38 108 779 782 www.silverlakeresources.com.au
Slide 29: Great Southern - Overview
Great Southern - Overview Location 450km south east of Perth Stage Advanced exploration Broome Proterozoic & Archean litholigies (Kundip) Regional Geology Volcanic successions (Munglinup) Port Hedland Kundip Gold & Copper Projects Trilogy Polymetallic (Cu, Au, Ag, Zn, Pb) Munglinup Gold Newman 1.0Mo
Slide 30: Kundip Mining Centre
Kundip Mining Centre Kaolin Open Pit Flag Open Pit Kaolin Underground Flag Underground Harbour View Open Pit Area Ore Reserve1 Kaolin Open Pit 114,300oz @ 2.8 g/t Au Kaolin Underground 19,800oz @ 4.4 g/t Au Harbour View Open Pit 20,600oz @ 3.2 g/t Au Harbour View Underground 84,400oz @ 3.5 g/t Au Fl
Slide 31: Kaolin - Gold Deposit
Kaolin - Gold Deposit Kaolin Ore Reserve1 Open Pit 114,300oz @ 2.8 g/t Au Underground 19,800oz @ 4.4 g/t Au Specimen Stone From Kaolin 1. Refer to appendix - JORC Resource & Reserve summary 2. Drill intercepts are historic and previously announced to the ASX Slide 31
Slide 32: Flag - Gold Deposit (low Cu values)
Flag - Gold Deposit (low Cu values) Flag Ore Reserve1 Open Pit 27,000oz @ 4.0 g/t Au Underground 38,600oz @ 5.0 g/t Au 1. Refer to appendix - JORC Resource & Reserve summary 2. Drill intercepts are historic and previously announced to the ASX Slide 32
Slide 33: Harbour View - Gold & Copper Deposit
Harbour View - Gold & Copper Deposit Harbour View Ore Reserve1 Open Pit 20,600oz @ 3.2 g/t Au Underground 84,400oz @ 3.5 g/t Au Base metals circuit funded from cashflow generated from free milling gold at Kaolin & Flag 1. Refer to appendix - JORC Resource & Reserve summary 2. Drill intercepts are hi
Slide 34: Great Southern - Aerial View
Great Southern - Aerial View Silver Lake evaluating relocating company owned infrastructure to a disturbed site Previous owners plan was to build new infrastructure on an undisturbed site Slide 34
Slide 35: Great Southern - Exploration
Great Southern - Exploration Kundip Mining Centre: – numerous targets – numerous high grade results with no follow up drilling – mining centre contains gold only and gold & copper deposits – Current mineralised envelope is 3 km wide & 3 km long Limited Meaningful or Systematic Exploration: – 2,740 h
Slide 36: Murchison Gold & Base Metals
Murchison Gold & Base Metals ASX: SLR ABN: 38 108 779 782 www.silverlakeresources.com.au
Slide 37: Murchison - Overview
Murchison - Overview Located 600 km north of Perth Large project area: − Tuckabianna, Comet & Moyagee − 65 km strike on multiple shear zones Historic production: – 560,000 oz Resources & Reserves1: – Resource: 21.0 million tonnes at 2.8 g/t gold for 1.9Moz Tuckabianna Pits x 6 Comet Pits x 5 Lena Pi
Slide 38: Murchison Gold Operations - Background
Murchison Gold Operations - Background Significant decline in gold price April 2014 - underground development deferred 62.0koz produced from 7 open pit mines Operation is uneconomic at prevailing gold price and requires higher grade ore from underground mines to blend with lower grade open pit ore 4
Slide 39: 1.2 mtpa Mill & Infrastructure
1.2 mtpa Mill & Infrastructure Commissioning Slide 39
Slide 40: Hollandaire PFS
Hollandaire PFS Open pit ore reserve1 (2 year project): – 13,500 Cu tonnes – 13,800 Au oz – 145,500 Ag oz Stage 1 - mining of gold zone Stage 2 - mining of upper zone Capex: (± ± 30%) – Base metals circuit A$25.0M – Clearing & grubbing A$ 5.1M – Rehabilitation A$ 0.8M – Contingency A$ 4.5M – Total A
Slide 41: Hollandaire - Next Steps
Hollandaire - Next Steps Design: Stage 1 & Stage 2 Open Pit – finalise process design Further evaluation on upside potential: – underground at Hollandaire lower zone Hollandaire West Lower Zone – underground at Hollandaire West – resource to reserve conversion Conceptual Underground Design Explorati
Slide 42: JORC 2004 Resources & Reserves
JORC 2004 Resources & Reserves As at June 2013 ASX: SLR ABN: 38 108 779 782 www.silverlakeresources.com.au
Slide 43: JORC Gold Resources
JORC Gold Resources As at June 2013 Measured Resources Indicated Resources Inferred Resources Total Resources Ore Grade Total Ore Grade Total Ore Grade Total Ore Grade Total Deposit t g/t Au Oz Au t g/t Au Oz Au t g/t Au Oz Au t g/t Au Oz Au ‘000s ‘000s ‘000s ‘000s ‘000s ‘000s ‘000s ‘000s Mount Mong
Slide 44: JORC Gold Ore Reserves
JORC Gold Ore Reserves As at June 2013 Proved Reserves Probable Reserves Total Reserves As at June 2013 Proved Reserves Probable Reserves Total Reserves Ore Grade Total Ore Grade Total Ore Grade Total Ore Grade T otal Ore Grade Total Ore Grade T otal Deposit t g/t Au Oz Au t g/t Au Oz Au t g/t Au Oz
Slide 45: JORC Base Metal Resources
JORC Base Metal Resources As at June 2013 Measured Resources Indicated Resources Inferred Resources Total Resources Ore Ore Ore Ore tonnes Grade Increment Total Unit tonnes Grade Increment Total Unit tonnes Grade Increment Total Unit tonnes Grade Increment Total Unit ‘000s ‘000s ‘000s ‘000s ‘000s ‘0
Slide 46: JORC Base Metal Reserves
JORC Base Metal Reserves As at June 2013 Proved Reserves Probable Reserves Total Reserves Ore Ore Ore tonnes Grade Increment Total Unit tonnes Grade Increment Total Unit tonnes Grade Increment Total Unit ‘000s ‘000s ‘000s ‘000s ‘000s ‘000s Kundip Project Silver - - g/t Ag - oz 2,810.0 2.7 g/t Ag 243
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