Vault Minerals Limited · ASX:VAU
Vault Minerals — Red 5 — Investor Presentation (October 2009)
33 slides from Vault Minerals's investor presentation, Oct 14, 2009
Slide 1: Red 5 Limited – Siana Gold Project, Philippines
For personal use only RED 5 Limited Siana Gold Project - Philippines 90% beneficial interest Colin G Jackson – Chairman Lance Govey – Exec Director Technical October 2009 RED5 Limited
Slide 2: Competent persons
Competent persons For personal use only The information in this Public Report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on, and accurately reflects, information compiled by Mr G C Edwards, Mr A L Govey and Mr W Darcey who are full-time employees of Red 5 Limited
Slide 3: Red 5 - at a glance
Red 5 - at a glance…. For personal use only RED – ASX (08 Oct): 13.0 cents Market cap: A$85.7m Issued shares: 659.2m Cash : A$22 m Enterprise value (per LOM plan ounce): US$65 Largest Shareholders: Mathews Capital 19.5% AngloGold Ashanti 10.2% R Stanley 8.0% RED5 Limited
Slide 4: Highly prospective location
Highly prospective location For personal use only 100 million ounce equivalent potential in Surigao del Norte Excellent local infrastructure Strong Community support (history of mining) Strategic land position Secure form of mining title (Mineral Production Sharing Agreement) Red 5 in Ph
Slide 5: Momentum increase…
Momentum increase… For personal use only Last nine months: Reserves doubled with underground resource upgrade Positive feasibility study delivered Environmental Compliance Certificate issued Mapawa MPSA granted – satellite resource potential Final permitting and financing in progress … bus
Slide 6: Consultants to the study…
Consultants to the study… For personal use only Resource estimation - Hellman & Schofield, Cube Consulting, Perth Geotechnical - Mining One, Melb, Peter O’Bryan & Associates, Perth Hydrology - Meyer Water & Environmental Solutions, Perth Open Pit mine design - RSG Global (Coffey Mining), Per
Slide 7: Project description…
Project description… For personal use only Life-of-mine - 10 year operating life producing 849,000 ounces at US$351 per ounce - open pit at 750,000 tpa, underground phased in at 400,000tpa Capital cost to first gold pour - US$56.5M plus US$6.0M contingency - add US$10M for working capital to sus
Slide 8: Site layout
Site layout For personal use only RED5 Limited
Slide 9: Open pit and underground design
Open pit and underground design For personal use only RED5 Limited
Slide 10: Probable Ore Reserves
Probable Ore Reserves For personal use only Stockpile Open Pit Underground Total* Tonnes (M) 0.08 3.10 1.94 5.1 Au g/t 1.33 3.42 5.82 4.3 Ag g/t 10.67 8.71 9.08 8.9 Ounces Au 3,549 341,000 363,000 708,000 Ounces Ag 28,000 870,000 566,000 1,465,000 *contains minor rounding errors 88 diamond drill h
Slide 11: Long term mine plan
Long term mine plan For personal use only Underground Stockpile Open Pit (Long term Total mine plan) Tonnes (M) 0.08 3.10 3.36 6.55 Au g/t 1.33 3.42 5.83 4.6 Ag g/t 10.67 8.71 9.12 8.9 Ounces Au 3,549 341,000 630,000 975,000 Ounces Ag 28,000 870,000 986,000 1,885,000 RED5 Limited
Slide 12: Resource still open…
Resource still open… For personal use only RED5 Limited
Slide 13: Summary production schedule
Summary production schedule For personal use only Year 1 Year 2 Year 3 Year 4 Year 5-10 Total Ore Milled (tonnes) 594,000 750,000 921,000 1,092,000 3,199,000 6,556,000 Grade (g/t) Gold 2.88 3.48 3.56 4.21 5.90 4.63 Grade (g/t) Silver 15.0 10.1 6.2 5.9 10.0 9.0 Plant Recovery 83.0 85.9 85.7 86.1 88.3
Slide 14: Project financials (pre-tax)
Project financials (pre-tax) For personal use only Base case: Gold US$800 per ounce - NPV US$ 146 million - IRR 38% Gold US$1000 per ounce - NPV US$252 million - IRR 55% Tax holiday - under negotiation RED5 Limited
Slide 15: Capital cost to first gold pour
Capital cost to first gold pour For personal use only Capital Item US$m* Mining Open Cut - Dewatering 2.5 - Equipment & pre-strip 17.3 Total Mining Open Cut 19.8 Process Plant 35.0 Infrastructure 4.3 Misc Capital 3.4 Total 62.5 * including contingency RED5 Limited
Slide 16: Operating cost breakdown
Operating cost breakdown For personal use only LOM Mining 28.34 Processing 12.64 Administration 4.03 Excise Tax 2.53 Total Cost (US$/tonne) 47.54 Total Cash Cost (US$/ounce) 351 RED5 Limited
Slide 17: Gold recovery
Gold recovery For personal use only Gravity and CIL leach: open pit - 85 % recovery, 1.2 kg/t cyanide usage underground - low zinc - 88 %, 2.2 kg/t CN - high zinc - 84 %, 2.4 kg/t CN Gravity, zinc flotation, conc. and tail leach: underground high zinc – 83.4 %, 2.45 kg/t CN RED5 Limited
Slide 18: Underground mining method
Underground mining method For personal use only Underhand cut and fill (top down) Road header in ore (more productive in soft ground than conventional drill and blast) - additional benefit less explosive on site Drill and blast for hard material Paste fill ground support - cement available l
Slide 19: Underground design parameters
Underground design parameters For personal use only Access via a 5m by 5m - 1:7 decline in porphyry and basalt units Portal located 90 metres above final pit floor 50 tonne trucks Level spacing 40m (ramps 20m up 20m down) RED5 Limited
Slide 20: Benefits of underhand cut and fill
Benefits of underhand cut and fill For personal use only Safe workplace for entry style mining High mining recoveries Low dilution Independent of rock break technique RED5 Limited
Slide 21: Mine method illustration
Mine method illustration For personal use only RED5 Limited
Slide 22: Strong community support…
Strong community support… For personal use only Clean water project RED5 Limited
Slide 23: ...through health assistance
...through health assistance For personal use only RED5 Limited
Slide 24: … education programmes
… education programmes For personal use only RED5 Limited
Slide 25: … welfare
… welfare For personal use only RED5 Limited
Slide 26: …and agricultural assistance
…and agricultural assistance For personal use only RED5 Limited
Slide 27: Requirements to operate…
Requirements to operate… For personal use only Environmental Compliance Certificate granted In progress: Declaration of Feasibility review by MGB SDMP (Social Development Management Plan) - submitted to new multi partite Mine Rehabilitation Fund Committee for approval EPEP (Environmental Pro
Slide 28: Implementation
Implementation For personal use only Permitting and finance 4Q 2009 Plant construction commences Feb 2010 Open pit commences Mar 2010 First gold production Mar 2011 Underground portal commences 2Q 2013 Underground ore production 4Q 2013 RED5 Limited
Slide 29: Opportunities
Opportunities For personal use only Further Siana underground extensions - 3 metres at 31.6 g/t, 5 metres at 25.4 g/t not in resource data base Zinc concentrate production from underground mining phase - bi-product credit potential … and Mapawa MPSA satellite ore 3 - 4 Mt potential near surface
Slide 30: Mapawa MPSA
Mapawa MPSA For personal use only Important milestone achieved with approval and registration of MPSA 280-2009-XIII Located 30 km north of Siana 1,482 hectares, highly prospective for gold and potentially, base metals Strengthened regional gold exploration portfolio Gold intersected in his
Slide 31: LSY prospect
LSY prospect For personal use only RED5 Limited
Slide 32: Summary
Summary For personal use only Technically and economically viable project 10 year operating life delivering 850,000 recovered ounces of low cost production Upside with Mapawa licence grant Community acceptance and environmentally benign Knowledgeable supportive shareholder base Financing
Slide 33: Contact details
Contact details For personal use only Level 2, 35 Ventnor Avenue West Perth, Western Australia 6005 PO Box 1911 West Perth, WA 6872 Ph: + 61 8 9322 4455 Fax: + 61 8 9481 5950 Web Site: www.red5limited.com Email: info@red5limited.com RED5 Limited