Westgold Resources Ltd · ASX:WGX
Westgold Resources — Denver Gold Group Forum September 2018
28 slides from Westgold Resources's conference presentation, Sep 25, 2018
Slide 1: Denver Gold Group September 2018
For personal use only Denver Gold Group September 2018
Slide 2: Disclaimer
DISCLAIMER For personal use only JORC COMPLIANCE STATEMENT Competent Persons Statements The information in this report that relates to Exploration Results and Mineral Resources and Ore Reserves is based on information compiled Mr Jake Russell B.Sc. (Hons) MAIG, Mr Paul Hucker B. Eng (Hons) MAIMM, an
Slide 3: A Golden Opportunity!
A GOLDEN OPPORTUNITY! For personal use only Westgold has over the previous 5 years built an enviable holding of Australian gold assets with 4 processing plants (mining hubs) in Western Australia’s most prolific goldfields. The Westgold group has a total gold resource estimate of circa 12 million oun
Slide 4: Corporate Directory
Corporate Directory For personal use only Corporate structure (ASX:WGX) Board Issued Shares 363.1 million Non-executive Chairman Peter J. Newton Options A$ 1.30 Managing Director Peter G. Cook Share Price (13 Sep 2018) A$ 1.32 Director of Operations Steve Norregaard Market Cap ~A$ 480m (US$ 350m) No
Slide 5: Four Gold Mining Centres Purely West Australian
FOUR GOLD MINING CENTRES PURELY WEST AUSTRALIAN For personal use only Fortnum Gold Project 1 million tpa 60-75,000 oz per annum Meekatharra Gold Operations 1.6 – 1.8 million tpa 120 – 140,000 oz per annum Cue Gold Operations 1.2 – 1.4 million tpa 90-110,000oz per annum Higginsville Gold Operations 1
Slide 6: Production Forecast & Growth
PRODUCTION FORECAST & GROWTH For personal use only FY 2017/18 FY 2018/19 FY 2019/20 (actual) (fcst) (fcst) >350,000oz 300 - 320,000oz 253,210oz Big Bell Mine Starts (adds 100,000oz pa) AISC AISC AISC (Fcst) A$1463/oz A$1300 -1350/oz A$1250 - 1300/oz US$ 1,050/oz US$ 940 - 975/oz US$ 900 - 940/oz WES
Slide 7: Fortnum Gold Project - 75,000ozpa Steady State
FORTNUM GOLD PROJECT (FGP) 60 - 75,000ozpa STEADY STATE For personal use only Fortnum Gold Project 1 million tpa 60-75,000 oz per annum Meekatharra Gold Operations 1.6 – 1.8 million tpa 120 – 140,000 oz per annum Cue Gold Operations 1.2 – 1.4 million tpa 90-110,000oz per annum Higginsville Gold Oper
Slide 8: Fortnum Gold Project - 70,000oz pa Steady State
FORTNUM GOLD PROJECT (FGP) – 60 - 70,000oz PA STEADY STATE For personal use only • 1 Million tpa CIP Plant • Plant refurbished at a cost of $20 million , total pre- production costs of ~ $30m. • Re-start plan on LG stocks to be replaced by open pit ores then higher grade underground ore from the Sta
Slide 9: Fortnum Gold Project - Starlight Underground Mine
FORTNUM GOLD PROJECT (FGP) – STARLIGHT UNDERGROUND MINE For personal use only 5 open pits to be mined as cut-backs. 7 WESTGOLD RESOURCES LIMITED
Slide 10: The Murchison Region: A Big Aggregation Play
THE MURCHISON REGION A BIG AGGREGATION PLAY For personal use only Meekatharra Gold Operations (MGO) Multiple feed sources (underground and open pit mines) to a centralised ore processing hubs. Cue Gold Operations (CGO) Note: Historic Production shown WESTGOLD RESOURCES LIMITED 8
Slide 11: The Murchison Region: A Big Aggregation Play
THE MURCHISON REGION A BIG AGGREGATION PLAY For personal use only Meekatharra Gold Operations (MGO) Cue Gold Operations (CGO) Note: Historic Production shown WESTGOLD RESOURCES LIMITED 8
Slide 12: Meekatharra Gold Operations - 140,000oz pa Steady State
MEEKATHARRA GOLD OPERATIONS (MGO) - 120 - 140,000oz PA STEADY STATE For personal use only Fortnum Gold Project 1 million tpa 60-75,000 oz per annum Meekatharra Gold Operations 1.6 – 1.8 million tpa 120 – 140,000 oz per annum Cue Gold Operations 1.2 – 1.4 million tpa 90-110,000oz per annum Higginsvil
Slide 13: Meekatharra Gold Operations - 140,000oz pa Steady State
MEEKATHARRA GOLD OPERATIONS (MGO) 120 - 140,000oz PA STEADY STATE For personal use only Note: Historic Production shown WESTGOLD RESOURCES LIMITED 10
Slide 14: Meekatharra Gold Operations
MEEKATHARRA GOLD OPERATIONS (MGO) For personal use only A 10 YEAR DEVELOPMENT PLAN Paddy’s Flat Mine A 1.6 – 1.8 million tonnes per annum CIP Plant 112,430 oz produced in 2017/2018FY C1 A$1260/oz (US$910/oz), AISC A$1,492/oz (US$1,075) Five (5) underground mines progressively developed: • Paddy’s Fl
Slide 15: Paddy's Flat - the main underground mine
MEEKATHARRA GOLD OPERATIONS (MGO) Paddy’s Flat – the main underground mine For personal use only A mine producing at 600,000 tpa at 4+ g/t on remnants and BIF ores. Gets under the main old workings (Fenian’s) by end 2019. Fenians Mine produced 684,000oz at 16.5 g/t to depth of 420m VD. New drilling
Slide 16: South Emu & Triton - supplementary underground mines
MEEKATHARRA GOLD OPERATIONS (MGO) South Emu & Triton – supplementary underground mines For personal use only Another high grade feed source for MGO. Mine started and will produce first ore in December quarter. Supplemented by u/ground mining at Jack Ryan mine currently being mined just to the north.
Slide 17: CGO - Cue Gold Operations - 110,000oz pa Steady State
CGO – CUE GOLD OPERATIONS 90 - 110,000oz PA STEADY STATE For personal use only Fortnum Gold Project 1 million tpa 60-75,000 oz per annum Meekatharra Gold Operations 1.6 – 1.8 million tpa 120 – 140,000 oz per annum Cue Gold Operations 1.2 – 1.4 million tpa 90-110,000oz per annum Higginsville Gold Ope
Slide 18: CGO - Cue Gold Operations - 110,000oz pa Steady State
CGO – CUE GOLD OPERATIONS 90 - 110,000oz PA STEADY STATE For personal use only • Re-commissioned in April 2018 • Commissioning quarter produced ~ 9,000oz’s • Current Blended Feedstock: Comet U/g 20-25,000t/month @ ~ 4g/t Day Dawn Open Pits Low Grade & Tailings • Output ramping to75,000oz this year •
Slide 19: CGO - The Big Bell Mine
CGO – THE BIG BELL MINE For personal use only A sub-level cave mine being re-established. Expected steady state production of >1.0mtpa and 100,000oz pa. Dewatering and rehabilitation significantly progressed. New development to commence by year end. 12-month stoping build to 1mtpa output RESOURCE MI
Slide 20: CGO - Great Fingall & Golden Crown Mines
CGO – GREAT FINGALL & GOLDEN CROWN MINES Cream on the top !! For personal use only Prolific high grade producers Open Pit Mining started Underground development and 2 levels to validate remnants planned. Then hold until Big Bell hits full production. Can go to MGO or CGO plant. Likely output 20,000t
Slide 21: Higginsville Gold Operations (HGO)
HIGGINSVILLE GOLD OPERATIONS (HGO) For personal use only Fortnum Gold Project 1 million tpa 60-75,000 oz per annum Meekatharra Gold Operations 1.6 – 1.8 million tpa 120 – 140,000 oz per annum Cue Gold Operations 1.2 – 1.4 million tpa 90-110,000oz per annum Higginsville Gold Operations 1.3 million tp
Slide 22: Higginsville Gold Operations (HGO) - 65,000 oz pa
HIGGINSVILLE GOLD OPERATIONS (HGO) 50 – 65,000 OZ PA For personal use only Current status • Bulk low-grade long-life open pits – Mt Henry Group. • Production of 55,958 oz in FY 2017/2018. • Cash Cost of A$1,398/oz (US$ 1010/oz at AUD 0.72) • AISC of $1,565/oz. (US$1,130/oz at AUD 0.72) Additional Or
Slide 23: Other Assets (Non-core but valuable and may be divested)
OTHER ASSETS (NON-CORE BUT VALUABLE AND MAY BE DIVESTED) For personal use only • Rover Project (NT) o High-grade Virgin IOCG deposit at Rover 1. o Virgin Pb-Zn-Ag discovery at Explorer 108. o Curiosity virgin discovery (11.7m @ 3.73%Pb, 4.86%Zn, 1.02g/t Au, 33g/t Ag) – (refer ASX:MLX 22/12/14). o Do
Slide 24: Australian Contract Mining (ACM)
Australian Contract Mining (ACM) For personal use only • Acquired during the year in an unplanned and reactive move to protect Westgold from adverse reaction to ACM’s fiscal failure. • ACM own major underground mining, raise drilling and underground diamond drill fleets and operates all Westgold und
Slide 25: Peer Comparatives: Enterprise Value Metrics
PEER COMPARATIVES ENTERPRISE VALUE METRICS For personal use only Total Mining Total Mineral Resource Newcrest Mining Reserves Newcrest Mining 61.4 116.3 Evolution Mining 225.7 Evolution Mining 445 Northern Star Resources 186.9 Northern Star Resources 741.3 Regis Resources 213.2 Regis Resources 475.4
Slide 26: Total Gold Inventory by JORC Category & Project
TOTAL GOLD INVENTORY BY JORC CATEGORY & PROJECT For personal use only For full details please refer to the announcement ”Annual Update – Mineral Resource & Ore Reserve as at 30 June 2017” released by Westgold Resources Limited (ASX:WGX) on 6 September 2017. WESTGOLD RESOURCES LIMITED 21
Slide 27: Disclaimer
DISCLAIMER For personal use only JORC COMPLIANCE STATEMENT Competent Persons Statements The information in this report that relates to Exploration Results and Mineral Resources and Ore Reserves is based on information compiled Mr Jake Russell B.Sc. (Hons) MAIG, Mr Paul Hucker B. Eng (Hons) MAIMM, an
Slide 28: Thanks for listening!
For personal use only Thanks for listening ! Level 9, 197 St Georges Tce Perth WA 6000 08 9462 3400 www.westgold.com.au
Westgold Resources — Denver Gold Group Forum September 2018 on 6ix