Capricorn Metals Ltd · ASX:CMM
Capricorn Metals — Investor Presentation (June 2018)
31 slides from Capricorn Metals's investor presentation, June 2018
Slide 1: Karlawinda Gold Project Investor Update
Karlawinda Gold Project Investor Update A compelling opportunity in the Australian gold sector June 2018
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: Corporate Information
Corporate Corporate Information ASX Code CMM Shares on Issue 747.9M Share Price as at 24th May 2018 $0.07 Market Cap 24th May 2018 ~$52.4M Cash as at 31st March 2018 $7.2M Unlisted options 55.7M Board of Directors Heath Hellewell (BSc (Hons)) – Executive Chairman • Geologist with +23 years experienc
Slide 4: The Opportunity at Karlawinda
The Opportunity at Karlawinda 1. Premier “low risk” mining jurisdiction with proven geological endowment • Two large scale gold mineralised systems discovered at Karlawinda to date 2. Impressive Resource/Reserve growth from active exploration programs • 1.5Moz Total Mineral Resources 1 - 130% growth
Slide 5: Karlawinda, First Class WA Location
Karlawinda, First Class WA Location Premier mining jurisdiction • 60km south east of Newman in Western Australia • 1400km2 of 100% owned exploration and mining tenements • Road access via the Great Northern Hwy • 45 minute drive to services and logistics • Multiple flights per day Perth to Newman •
Slide 6: Capricorn Orogen - Regional Geology
Capricorn Orogen - Regional Geology Karlawinda – A new gold discovery in a premier mining district • First-mover opportunity in emerging Archaean greenstone belt • Analogous with Plutonic Dome (+10Moz) • Long-lived structural domain, with key major structures • Operationally and logistically simple
Slide 7: Karlawinda Project - Geology
Karlawinda Project - Geology Unlocking the potential of a new gold camp • Proven camp-scale multi million ounce potential, partially obscured by thin 1-10m of sand cover • Limited early stage exploration outside the immediate 1.5Moz Bibra Deposit • K3 Prospect, up-plunge projection of Francopan • 26
Slide 8: Bibra Resource and Reserve Growth
Bibra Resource and Reserve Growth Drilling yielding high value results Bibra Measured & Indicated Mineral Resources - 44.8Mt @ 1.0 g/t 1,375,000oz Southern Corridor Inferred Mineral Resources – 6.2Mt @ 0.7g/t 150,000oz Total Mineral Resources – 51Mt @ 0.9g/t 1,525,000oz Easky Proved Reserves – 9.6Mt
Slide 9: Bibra Gold Deposit - 1.5Moz and Growing
Bibra Gold Deposit - 1.5Moz and Growing Predictable, structurally controlled mineralised system • Major Archaean mineralised system comprising multiple large scale ore zones • Broad (up to 50m thick) “shoots” developed as low angle mineralised zones • Multiple trends only partially drill tested • Sh
Slide 10: Bibra Gold Deposit -1.5Moz and Growing
Bibra Gold Deposit -1.5Moz and Growing Predictable, structurally controlled mineralised system • Bibra Deposit currently defined over a 2km strike length • Drilled +800m down-dip and remains open • Positive deep drilling results (April 2018) • Mineralisation best developed in large dilational shoots
Slide 11: Bibra Gold Deposit – 1.5Moz and Growing
Bibra Gold Deposit – 1.5Moz and Growing Continuous shoots down plunge capmetals.com.au 11
Slide 12: Resource Growth Target Tramore
Resource Growth Target Tramore Potential major new zone – Oxide potential capmetals.com.au 12
Slide 13: Conceptual Upside
Conceptual Upside Bibra Gold Deposit - Multi-million oz Exploration Target Geological understanding crystallising • Litho-geochemical studies provide the catalyst for recent breakthroughs in geological interpretation • Large scale geological concepts tested by government co-funded drilling • Bibra &
Slide 14: Regional Exploration Ramping-up Activities
Regional Exploration Ramping-up Activities • Bibra “Mine Sequence” targets • Regional geochemical programs have commenced capmetals.com.au 14
Slide 15: A Compelling Development Opportunity
A Compelling Development Opportunity De-risked by Feasibility Study Firm “Base Case” Feasibility (Oct 2017) Economics 3.0Mtpa plant to produce 100,000oz pa over an initial 6.5 year mine life • Project revenue of A$1,091M, pre-tax operating surplus of A$413M • AISC of A$1025/oz over LOM • NPV(8) (pre
Slide 16: Upfront Capital Cost Summary
Upfront Capital Cost Summary Item October 2017 May 2018 • Formal tender process completed Feasibility Estimates Estimates • GR Engineering Services (A$) (A$) preferred contractor Processing Plant (EPC) (3.7Mtpa oxide/ 3.0Mtpa $90.7M primary ore) $93.1M (fixed price) • Lump sum turnkey price Plant In
Slide 17: Open Pit Mining
Open Pit Mining Bibra Deposit- Large tonnage, low strip ratio Bibra May 2018 final open pit design Bibra May 2018 open pit compared to FS final pit design • Improved 4-stage design • LOM strip ratio 4.8:1 • Favourable geotechnical conditions, HW Formal mining tender process to commence following ove
Slide 18: Open Pit Mining
Open Pit Mining Bibra Deposit- Large tonnage, low strip ratio Bibra Open Pit: Tonnes and grade by depth Bibra Open Pit: Ounces per vertical metre 4000000 1.6 12000 3500000 1.4 Ounces per Vertical metre 10000 Ounces per vertical metre 3000000 1.2 8000 2500000 1 Tonnes Tonnes 6000 2000000 0.8 Grade 15
Slide 19: Open Pit Mining
Open Pit Mining Bibra Deposit- Large tonnage, low strip ratio Optimised pit design and mining schedule will significantly enhance project value Optimise material movements • Additional mine life allows a 4-stage pit design • Feasibility scheduled “front-end” waste movements to Additional Mine Life a
Slide 20: Metallurgy & Processing
Metallurgy & Processing Conventional processing, high recoveries • Conventional 3Mtpa CIL circuit – New optimised flowsheet • 3.7Mtpa throughput during oxide/laterite processing • Single stage crushing • SAB milling - 4.8MW SAG, 4.8MW Ball • Large gravity circuit • 92.6% LOM recovery, with 45% gravi
Slide 21: Metallurgy & Processing
Metallurgy & Processing Conventional Processing, High Recoveries Test Feasibility Comminution Testwork Ore Units Result SMC (A*b) Oxide 89 Recovery Testwork Fresh 30 Grade Scoping Study FS (June 2017) BBWI Oxide kWh/t 13.0 Test Ore Type Units (g/t) Recovery (%) Recovery (%) Fresh kWh/t 14.5 (P80 gri
Slide 22: Infrastructure
Infrastructure Standard West Australian gold mine • Long-term power purchase agreement (BOO). • Preferred optimised solution • Onsite gas-fired power station • Fuelled by natural gas from a new lateral off the GGP • Integrated Waste Landform (IWL) Tailings Storage facility (TSF) • New 40km access ro
Slide 23: Feasibility Operating Cost Estimates
Feasibility Operating Cost Estimates 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 $3.0 $0.1 $4.5 Sustaining Capital (incl. $22.8
Slide 24: 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 July 2018 • Preference is for traditional bank project financing • P
Slide 25: Premier Mining Jurisdiction
Premier Mining Jurisdiction Permitting progressing to schedule • Nyiyaparli Heritage Agreement • Mining Lease - M52/1070 • NVCP- Mine Area • 5C Water Licence (June 2018) • Detailed pump testing complete • Works Approvals and Mining Proposal (early July 2018) capmetals.com.au 25
Slide 26: Timeline
Timeline A simple, straightforward development and growth opportunity Timeline 2016 2017 2018 2019 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Scoping Study Resource Drilling Mining Lease Application Native Title Agreement Feasibility Study Optimisation Approvals Financing Construction & Comissi
Slide 27: 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) • CIL processing • Ongoing optimisati
Slide 28: Appendices – Resources & Reserves
Appendices – Resources & Reserves
Slide 29: Resource – Karlawinda Project
Resource – Karlawinda Project May 2018 upgrade BIBRA GOLD DEPOSIT JORC OPEN PIT RESOURCE ESTIMATE (as of May 2018) Capricorn Metals Limited has updated the Mineral Resource Estimate at its 100%- owned Karlawinda Gold Project in WA. The new resource has been updated to include MEASURED INDICATED INFE
Slide 30: Reserve – Bibra Deposit
Reserve – Bibra Deposit May 2018 PROVED RESERVES PROBABLE RESERVES TOTAL RESERVES Deposit Tonnes Grade Ounces Tonnes Grade Ounces Tonnes Grade Ounces ('000 t) (g/t Au) ('000 oz) ('000 t) (g/t Au) ('000 oz) ('000 t) (g/t Au) ('000 oz) Bibra pit 9,603 1.1 337 16,915 1.0 529 26,518 1.0 866 Sth Corridor
Slide 31: Capricorn Metals Ltd contact details
“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 8 9212 4600 www.capmetals.com.au ABN: 84 121 700 105