KEFI Gold and Copper PLC · LSE:KEFI
KEFI Gold and Copper — KEFI Minerals — Technical Presentation (November 2016)
29 slides from KEFI Gold and Copper's technical presentation, November 2016
Slide 1: Site Visit Presentation - November 2016
SITE VISIT PRESENTATION ‐ NOVEMBER 2016 Gold and Copper Arabian‐Nubian Shield Pre‐eminent Local JV Partners Development ready for 1st cash flow on >100Koz Au pa increasing to >150Koz pa Drilling ready on 6km‐long base and precious metal (VMS) mineralised gossan Well‐positioned to become East‐African
Slide 2: Disclaimer
DISCLAIMER Disclaimer The information contained in this document (“Presentation”) has been prepared by KEFI Minerals plc (the “Company”). While the information contained herein has been prepared in good faith, neither the Company nor any of its shareholders, directors, officers, agents, employees or
Slide 3: Strong Platform in Prospective Arabian-Nubian Shield
STRONG PLATFORM IN PROSPECTIVE ARABIAN‐NUBIAN SHIELD (‘ANS’) Focused on gold and copper in the ANS • ANS similar geology to world‐class gold district of Western Australia • Limited modern exploration provides opportunity for discovery • KEFI is focused on cash flow and discovery in the ANS Developme
Slide 4: The Arabian Nubian Shield
ANS IS UNDEREXPLORED The Arabian Nubian Shield There are over 5,000 documented ancient workings for gold and base metals in the ANS. Saudi Arabia currently has 6 operating gold mines and 2 base‐metal mines Major deposits in the ANS: Sukari (13Moz Au) KEFI is the only foreign Mahd Adh Dahb (6Moz Au)
Slide 5: Capital Structure
CAPITAL STRUCTURE Capital (diluted for Contractor Agreements structure and Options) (fully‐diluted) KEFI has pre‐eminent local JV partners in Saudi Arabia and Ethiopia Odey Ausdrill and Lyco Board Public 25% 14% 5% 56% ARTAR KEFI Minerals plc Ethiopia Al Rashid Government 60% 40% 70‐80% 20‐30% Saudi
Slide 6: Ethiopia - A Country on the Rise
ETHIOPIA ‐ A COUNTRY ON THE RISE Ethiopia A country on the rise HQ for African Union, deemed 15 years of 7‐10% GDP growth, with to be safer a pro‐development culture, than all neighbours Africa’s fastest growing economy despite recent unrest (2015 ‐ 10.2% Real GDP growth)1 Strong interest in investm
Slide 7: Tulu Kapi Open Pit - Financially Robust
TULU KAPI OPEN PIT ‐ FINANCIALLY ROBUST Tulu Kapi A financially robust project The operation is strong financially Production and AISC At the 6 year gold price low of $1,050/oz, open pit project still generates an IRR of 15% A LOM AISC2 of $773/oz and total unit cost of $905/oz, including initia
Slide 8: Tulu Kapi - Resources and Reserves
TULU KAPI ‐ RESOURCES AND RESERVES TULU KAPI ‐ FEBRUARY 2015 MINERAL RESOURCE Mineral Resource totals 20.2Mt at 2.65g/t Au, containing 1.72 Moz Au Cut‐off Tonnes Gold Ounces JORC (2012) Resource category Reporting elevation (g/t gold) (million) (g/t) (million) Indicated Above 1400 RL 0.45 17.7 2.49
Slide 9: Tulu Kapi - Underground Mine Potential
TULU KAPI ‐ UNDERGROUND MINE POTENTIAL SUBSTANTIAL FURTHER RESOURCE POTENTIAL Gold mineralisation may extend deeper and 600 to 800m further to the north ‐ potential for 1Moz below open pit BASE CASE ‐ EXISTING RESOURCE Ore mined 320,000 tpa at 5.2g/t Life of Mine 4 years Gold production 47,600 oz p.
Slide 10: Tulu Kapi - Open Pit + Underground Mine Base Case
TULU KAPI TULU KAPI ‐ FEBRUARY 2015 MINERAL RESOURCE OPEN PIT + UNDERGROUND MINE BASE CASE Potential underground mine provides strong upside Potential production profile (Koz Au)1 Underground Open cut Thick, high‐grade gold zones below open pit Underground mineable resource = 1.3Mt @ 5.2g/t Pr
Slide 11: Tulu Kapi - Open Cut Mining Methods
TULU KAPI ‐ OPEN CUT MINING METHODS • KEFI has improved the head grade of the mined ore from 1.8g/t to 2.1g/t Au by applying more effective mining techniques • These techniques take advantage of the strong visual control as the ore is “white” in colour (albite alteration) and waste is “green” • The
Slide 12: Tulu Kapi - Near Mine Exploration: Guji-Komto Belt
TULU KAPI ‐ NEAR MINE EXPLORATION: GUJI‐KOMTO BELT NEAR‐TERM GOLD PRODUCTION OPPORTUNITIES KEFI can quickly add to Tulu Kapi open‐pit gold production by developing: • Shallow, low cost gold resources within trucking distance of Tulu Kapi processing plant or as a stand‐alone heap leach operation • Po
Slide 13: Tulu Kapi Near Mine Exploration: VMS District
TULU KAPI NEAR MINE EXPLORATION: VMS DISTRICT NOT EXPLORED SINCE 1970’s The Tulu Kapi gold deposit and regional prospects represent a multi‐million ounce gold and high grade Cu‐Au Volcanogenic Massive Sulfide (“VMS”) district High grade Cu identified in new VMS prospect within 50km of Tulu Kapi Mini
Slide 14: Saudi Arabia: 40% JV with Al Rashid Family 'ARTAR'
SAUDI ARABIA: 40% JV WITH AL RASHID FAMILY “ARTAR” 14
Slide 15: Saudi Arabia (KEFI 40%) Executing to Realise Exploration Upside
SAUDI ARABIA (KEFI 40%) Saudi Arabia (KEFI 40%) Executing toExecuting realise exploration upside to realise exploration upside Jibal Qutman Hawiah Pipeline of Targets 99km2 EL was granted in July 2012. 95km2 EL granted in Dec 2015 Over 2,000km2 under application Delineated initial JORC Resou
Slide 16: Exploration Licences and Applications in KSA
EXPLORATION LICENCES AND APLICATIONS IN KSA 16
Slide 17: Mineral Occurrence Database
MINERAL OCCURRENCE DATABASE KEFI’s database includes the mineral occurrence data set (“MODS”) which contains the coordinates, exploration history and resource potential compiled by the BRGM and USGS, of the 5,002 main mineral occurrences in the ANS. This has allowed KEFI to rapidly field assess avai
Slide 18: Jibal Qutman - Heap Leach Project
JIBAL QUTMAN ‐ HEAP LEACH PROJECT INDICATED RESOURCE INFERRED RESOURCE May 2015 Tonnes Au (g/t) ounces Tonnes Au (g/t) ounces Mineral Resource OXIDE 8,336,176 0.86 229,165 OXIDE 2,806,468 0.64 58,164 SULPHIDE 9,706,111 0.86 269,323 SULPHIDE 7,606,335 0.72 176,392 TOTAL 18,042,287 0.86 498,488 TOTAL
Slide 19: Jibal Qutman District - Licence Applications
JIBAL QUTMAN DISTRICT ‐ LICENCE APPLICATIONS JQ District ELA 1 JQ District ELA 4 Quartz Vein style mineralisation in granites poor Quartz Vein style outcrop, sand cover mineralisation in granites 25 rock chips collected (surface samples into the dotted area) Gold grade range from 1.0g/t to 66.5g/t A
Slide 20: Hawiah: Large Undrilled VMS Gossan
HAWIAH : LARGE UNDRILLED VMS GOSSAN 2km long, 300m from surface SP anomaly “blue” >125mV • Hawiah Gossan is 6km long and 5‐40m wide • 51 Trenches excavated samples average 2‐3ppm Au ‐ never been drilled • Potential for a very large VMS Cu‐Au deposit +7 additional ELAs in the Wadi Bidah Belt which co
Slide 21: Wadi Bidah VHMS Belt: 120km Long
WADI BIDAH VHMS BELT: 120Km LONG and +30 Cu‐Au WORKINGS AND OCCURENCES Hawiah EL (red) and 7 ELAs in the Wadi Bidah VHMS Belt Same name and similar geology to the Wadi Bidah belt in Eritrea. J.Sayid Evaluated by BRGM in the ‘80s, mainly for gold in Hassai gossans to 40m depth. Wadi Bidah Very few ho
Slide 22: Other ELAs in Saudi Arabia - High Grade Gold
OTHER ELAs IN SAUDI ARABIA ‐ HIGH GRADE GOLD An example of KEFI’s +10 ELAs where high grade gold is present in ancient workings at surface. Trenching and drilling will lead to a rapid resource estimation and development 22
Slide 23: Contacts
Contacts Harry Anagnostaras‐Adams, Executive Chairman John Leach, Finance Director Cyprus ‐ Group corporate team Ethiopia ‐ Development and exploration teams Saudi Arabia ‐ Exploration team Email: info@kefi‐minerals.com Website: www.kefi‐minerals.com Luther Pendragon Ltd (Financial PR) Harry Chathli
Slide 24: Corporate Overview
CORPORATE OVERVIEW Corporate Overview Summary Summary1 • KEFI Minerals is an exploration and development company AIM code KEFI focussed on gold and copper assets, within the highly Share price ‐ 12 mth 0.26p (low)/0.66p (high) prospective Arabian‐Nubian Shield Share price (19/10/2016) 0.36p Progre
Slide 25: Tulu Kapi - Funding Plan
Tulu Kapi TULU KAPI ‐ FUNDING PLAN Funding plan Cost Overrun Overall financing Mezzanine or facility between between 150m and Equity between 10m and 15m 160m 160 32m and 42m 13 140 Credit between 81m and 91m 120 37 100 80 155 Government 86 60 investment to increase ownership 40 up to 30% 20 20 0 Pro
Slide 26: Tulu Kapi - A Low Cost and Robust Project
Initial TULU KAPI ‐ A LOW COSTOperation ‐ Tulu AND ROBUST Kapi in Ethiopia PROJECT A low cost project Initial capex / LOM production ($/oz) Cost competitive in terms of both 104 capital intensity and All‐In 108 132 Sustaining Costs, when compared 151 169 to African peers 196 217 0 50 100 150 200 250
Slide 27: Valuation of Initial Operation: Undervalued Compared to African Peers
VALUATION of INITIAL Valuation OPERATIONof Initial Operation UNDERVALUED COMPARED to AFRICAN PEERS Undervalued compared to African peers EV / Reserves Average excl. min and max. = $183/oz Average excl. min and max. = $162/oz 610 445 642 315 258 237 186 184 182 182 113 64 46 46 323 289 269 232 181 16
Slide 28: Directors of KEFI Minerals plc
Directors of KEFI Minerals plc Harry Anagnostaras‐Adams – Executive Chairman – MBA (Australian Graduate School of Business) Harry was founder or co‐founder of Citicorp Capital Investors Australia, investment company Pilatus Capital, Australian Gold Council, EMED Mining, KEFI Minerals and Cyprus‐base
Slide 29: Tulu Kapi Development Team
Tulu Kapi Development Team Wayne Nicoletto, Chief Operating Officer and Managing Director, KEFI Ethiopia – BSc Metallurgy, Grad Dip Mining (WASM) Wayne has 30 years' experience in the mining industry as a Metallurgist and a General Manager, specialising in start‐up and operation of gold mines in Afr
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