Slide 1: Karlawinda Gold Project Feasibility Study
Karlawinda Gold Project Feasibility Study A compelling opportunity in the Australian gold sector 24 October 2017
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: A Compelling Opportunity in the Australian Gold Sector
A Compelling Opportunity in the Australian Gold Sector Robust Feasibility Study……….. Open Pit Ore Reserve and Mineral Resource Estimate Bibra Deposit Ore Reserve 21Mt @ 1.06 g/t Au for 713,000oz (Probable)1 • Mineral resource estimate of 31Mt @ 1.10g/t Au for 1.1Moz (Indicated and Inferred) at $A175
Slide 4: Ongoing Post-Feasibility Study Project Optimisation
A Compelling Opportunity in the Australian Gold Sector Robust Feasibility Study……….. Ongoing Post-Feasibility Study Project Optimisation • Process plant and associated infrastructure capex savings • Formal EPC tender process underway • Material improvement on FS anticipated • Formal process to final
Slide 5: Bibra Gold System – expansion targets
A Compelling Opportunity in the Australian Gold Sector Bibra Gold System – expansion targets……….. Bibra Additional 300koz of Indicated Resources at the base of the design pit and open at depth. • 10-15% uplift in gold price or positive movement in operating costs will bring them into the production
Slide 6: Regional exploration upside
A Compelling Opportunity in the Australian Gold Sector Regional exploration upside……….. Bibra is not the only potential multi-million ounce gold system at Karlawinda Francopan and K3 (~5km from Bibra) Francopan: Mineralised system of comparable in scale to Bibra, with a demonstrated higher grade com
Slide 7: Corporate
Board Corporate Heath Hellewell (BSc (Hons)) – Executive Chairman • Geologist with +23 years experience in gold, base metals & diamonds • Co-founding Executive Director of Doray Minerals, and previous senior positions with Independence Group NL, Resolute Mining and DeBeers Australia Corporate Inform
Slide 8: Karlawinda: First Class WA Location
Karlawinda: First Class WA Location Low risk pathway to production • 100% ownership (1,419km2) • Low-risk Jurisdiction • 70km from Newman by road • Granted Mining Lease • Native Title agreement in place • Environmental baseline and detailed studies complete • Permitting framework well understood wit
Slide 9: Open Pit Mining
Open Pit Mining Bibra Deposit- large tonnage, low strip ratio • Single large-scale, multi-staged open pit • Very attractive stripping ratios: • LOM - 4.7:1 • Higher value, near surface laterite and oxide ore in Stage One Strip Ratio Pit Stage Tonnes Grade Ounces (Waste : • Thick, continuous and cons
Slide 10: Open Pit Mining
Open Pit Mining Bibra Deposit- Contract/Owner Operator FS Assumptions • Contract grade control • RC -10m x 10m, 5m x 8m • Contract drill and blast • 5m benches, 10m benches in some areas of bulk waste • Detailed fragmentation studies to: • Optimise powder factors and blast patterns • Ensure material
Slide 11: Metallurgy & Processing
Metallurgy & Processing Conventional Processing, High Recoveries • Conventional 3Mtpa CIP circuit • 3.7Mtpa throughput in first 2 years (oxide) • Single stage crushing • 6.5MW SAG with upgrade to SAB (SABC) with ~2.5MW ball mill after 2 years • Potential to increase annual throughput in primary ore
Slide 12: Metallurgy & Processing
Metallurgy & Processing High Recoveries, Conventional Processing Recovery Testwork Comminution Testwork Scoping Study FS (June 2017) Test Ore Units Scoping FS Test Ore Type Units Grade (g/t) Recovery (%) Recovery (%) SMC (A*b) Oxide 87 89 (P80 grind size) (P80 grind size) Laterite % 1.4 - < 10 Fresh
Slide 13: Metallurgy & Processing
Metallurgy & Processing Conventional Processing/High Recoveries Page 11 capmetals.com.au
Slide 14: Infrastructure
Infrastructure Standard West Australian Gold Mine • Long-term power purchase agreement (BOO). • Current FS assumption is: • Onsite gas-fired power station • Fuelled by LNG • Integrated Waste Landform (IWL) Tailings Storage facility (TSF) • New 31km access road linking site to all weather unsealed sh
Slide 15: Infrastructure
Infrastructure Page 13 capmetals.com.au
Slide 16: Capital Cost Summary
Capital Cost Summary A simple, straightforward development and growth opportunity Item Feasibility Study (September 2017) 3.7Mtpa Oxide/ 3.0Mtpa Primary Processing Plant (EPC) $90.7M Plant Infrastructure (EPC) (Plant buildings and workshops, borefield) $8.7M Other Infrastructure (TSF, accommodation
Slide 17: Operating Cost Summary
Operating Cost Summary A simple, straightforward development and growth opportunity Item LOM Cost LOM Cost / LOM Cost / (A$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
Slide 18: Timeline
Timeline A simple, straightforward development and growth opportunity Page 16 capmetals.com.au
Slide 19: Resource and Reserve Growth
Resource and Reserve Growth A simple, straightforward development and growth opportunity Resource / Reserve Growth 1.2 1 Millions of Ounces 0.8 0.6 0.4 0.2 0 Acquisition July 2016 April 2017 August 2018 Resources Inferred Resources Indicated Reserves Probable Page 17 capmetals.com.au
Slide 20: Capricorn Orogen - Regional Geology
Capricorn Orogen - Regional Geology Karlawinda – A new gold discovery in a premier mining district Page 18 capmetals.com.au
Slide 21: Bibra Gold Deposit
Bibra Gold Deposit Predictable shear-hosted mineralised system • Bibra Deposit defined over a 1.1km strike length • Drilled 800m down-dip and remains open • Broad ore zones up to 50m wide • Mineralisation best developed in large “dilational” shoots/fold hinges within the shear system • Biotite, carb
Slide 22: Bibra Gold System
Bibra Gold System Predictable, structurally controlled mineralised system • Large scale Archaean mineralised system comprising multiple large scale ore zones • Broad shoots developed along low angle mineralised structures • Multiple trends only partially drill tested • Shoots are continuous down plu
Slide 23: Bibra Gold Deposit
Bibra Gold Deposit Continuous shoots down plunge Page 21 capmetals.com.au
Slide 24: Bibra Gold Deposit
Bibra Gold Deposit Continuous shoots down plunge Page 22 capmetals.com.au
Slide 25: Portrush Zone
Portrush Zone Near Surface Extensions Page 23 capmetals.com.au
Slide 26: Exploration
Exploration • First-mover opportunity in emerging Archaean Unlocking the potential of a new gold camp greenstone province • Analogous with Plutonic Dome (10.6Moz) • Camp-scale multi million ounce potential • Limited early stage exploration outside the immediate Bibra Deposit • K3 Prospect, up-plunge
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 development opportunity • Straight forward development pathway • Single large open pit mine (from surface) • CIL processing • Ongoing optimisation •
Slide 28: Appendices– Resources and Reserves
Appendices– Resources and Reserves Page 26 capmetals.com.au
Slide 29: Resource – Karlawinda Project
Resource – Karlawinda Project April 2017 upgrade KARLAWINDA GOLD PROJECT JORC (2012) OPEN PIT RESOURCE ESTIMATE (as of April 2017) MEASURED INDICATED INFERRED TOTAL DATE Grade Ounces Grade Ounces Grade Ounces Grade Ounces Tonnes (Mt) Tonnes (Mt) Tonnes (Mt) Tonnes (Mt) (g/t Au) (Moz) (g/t Au) (Moz)
Slide 30: Resource – Karlawinda Project
Resource – Karlawinda Project April 2017 upgrade April 2017 - Indicated & Inferred Resource Laterite Domain 1.54 million tonnes @ 1.4g/t for 68,000oz Oxide & Transitional Domain 7.5 million tonnes @ 1.0g/t for 238,000oz Primary Domain 22.3 million tonnes @ 1.1g/t for 808,000oz Page 28 capmetals.com.
Slide 31: Resource – Karlawinda Project
Resource – Karlawinda Project April 2017 upgrade • Drill spacing 25 x 25m and 25m x 50m • 889 Reverse Circulation drill holes: 119,857m • 84 Diamond drill holes: 12,211m (~10%) including • 41 metallurgical diamond holes:4,174m • 5 geotechnical diamond holes: 1,115m • CMM spend to date ~$20M Page 29
Slide 32: Reserve – Bibra Deposit
Reserve – Bibra Deposit August 2017 BIBRA GOLD DEPOSIT JORC (2012) ORE RESERVE ESTIMATE (as of AUGUST 2017) PROVEN PROBABLE TOTAL DATE Tonnes Grade Ounces Tonnes Grade Ounces Tonnes Grade Ounces (Mt) (g/t Au) (Moz) (Mt) (g/t Au) (Moz) (Mt) (g/t Au) (Moz) AUGUST --- --- --- 21 1.06 0.713 21 1.06 0.71
Slide 33: Capricorn Metals Ltd (ASX: CMM)
Capricorn Metals Ltd (ASX: CMM) Level 1, 28 Ord Street West Perth, WA enquiries@capmet.com.au +61 89212 4600 www.capmetals.com.au