Evolution Mining Limited · ASX:EVN
Evolution Mining — Technical Presentation (September 2023)
52 slides from Evolution Mining's technical presentation, Sep 13, 2023
Slide 1: Red Lake Site Visit
RED LAKE SITE VISIT 13 and 14 September 2023
Slide 2: Forward Looking Statement
FORWARD LOOKING STATEMENT These materials prepared by Evolution Mining Limited (“Evolution” or “the Company”) include forward looking statements. Often, but not always, forward looking statements can generally be identified by the use of forward looking words such as “may”, “will”, “expect”, “intend
Slide 3: Land Acknowledgement
LAND ACKNOWLEDGEMENT “I would like to acknowledge the land where we gather today. This is Treaty No.3 territory, the traditional lands of Lac Seul First Nation and Wabauskang First Nation, our partners here at the Red Lake Operation” Note: Artwork sourced from Government of Canada 3
Slide 4: Agenda
AGENDA 1 Day 1 Mining Tour 1 - Upper Campbell – 11 level Tour 2 - Balmer/Cochenour 2 Day 2 Discovery - Core shed tour Processing - Campbell mill tour Sustainability - Tailings storage facility (TSF) and wetland tour 4
Slide 5: Site Leadership Team
SITE LEADERSHIP TEAM Daniel Alain Sarah-Lynn James Marcus John Hosfeld Russell Jewell Mouton Novlan Penhall People and Culture Geology Integrated Planning Sustainability Commercial VP Red Lake Manager Manager Manager Manager Manager1 Operations Martin Luis Vizcarra Amber David Thomas Zgrajewski Carr
Slide 6: Red Lake Overview
RED LAKE OVERVIEW Group Production Group Operating Cash Flow FY23 (ounces) FY23 Red Lake Red Lake 19% 4% 120,840koz Mine life To 2040 530,315koz $902 M Ontario, Canada – approximately 535km north-west of Location Thunder Bay Ownership 100% Group Mineral Resources Group Ore Reserves Mineralisation ty
Slide 7: Sustainability
SUSTAINABILITY TRIF1 Emissions breakdown by 18.8 asset (FY22) Red Lake 5% Mt. 9.8 Rawdon 14% Cowal 44% Ernest Henry 20% Mungari 17% Health and Safety Environment First Nation Collaboration Agreements Improved safety performance Red Lake Operations accounted for ▪ Visible leadership only 5% of Evolut
Slide 8: Community Partnerships
COMMUNITY PARTNERSHIPS Red Lake contributed over CAD$300,000 into the local and First Nation Communities in FY23 Red Lake Miners Hockey Mining Matters Youth Program Pride Celebration Red Lake Food Bank Bursary and Scholarships Red Lake Hospital Foundation Norseman Festival Evolution Recreation Centr
Slide 9: Employer of Choice
Leading to increased EMPLOYER OF productivity CHOICE ✓ Workforce restructure completed (~10% +100% headcount reduction), optimisation continues 20 ✓ Transitioned to Group performance-linked 16 remuneration structure from hourly pay 10 ✓ Improving alignment at all levels of the organisation Pre-Evolu
Slide 10: The Vision for Red Lake
THE VISION FOR RED LAKE Delivering a safe, reliable, long-life, margin focused operation A world-class, Skilled Operational Developing high-grade workforce with transformation cost culture gold system in experienced advancing to with a focus on a Tier 1 leadership increase margin and jurisdiction te
Slide 11: Red Lake Overview
RED LAKE OVERVIEW Click here to view the overview video
Slide 12: Ore Sources
Red Lake ORE SOURCES Campbell mill Stockpiles Any excess ore to mill stockpiles Cochenour shaft CYD Reid decline Balmer (#3) shaft shaft Services Red Lake only R zone Upper Sulphides Aviation HW7 Cochenour Campbell Lower 12
Slide 13: Mining – Productivity Gains
MINING – Average drill metres per shift in last two months1 PRODUCTIVITY GAINS 36 +22% ▪ Efficiency improving every day 44 ▪ Over 60% reduction in primary equipment (↓ to 39) Stopemaster Simba ▪ Increase in equipment capacity ▪ Introduction of ▪ jumbo bolting ▪ carousel production drill rigs driving
Slide 14: Mining – Productivity Gains
MINING – PRODUCTIVITY GAINS ▪ 100% improvement in daily loader rates since acquisition ▪ Replacement of old fleet ▪ Introduction of Battery Electric Vehicles (BEV) Loader rates (t/d) 800 700 600 500 400 300 +100% since 200 acquisition 100 - FY20 FY21 FY22 FY23 14
Slide 15: Focus on Increasing Margin
Red Lake Mine Sulphides FOCUS ON INCREASING MARGIN Campbell Mill ▪ Operational flexibility - HW7 Consistent & R Zone Aviation and stable sufficient contingency operations ▪ Operational excellence - Campbell Mine reliable delivery Upper Deliver long Campbell term success through great Cultural planni
Slide 16: FY24 Guidance
FY24 GUIDANCE Production (koz) AISC to reduce by ~24% to +40% ~170 ~$2,000/oz Production to increase by ~40% 121 115 to ~170koz FY22 FY23 FY24 Guidance New mine areas drives cost and All-in Sustaining Cost ($/oz) production improvements 2,620 2,519 -24% ~2,000 Sets the foundation for stable and cons
Slide 17: Location
LOCATION Red Red Lake Lake Superior Superior Craton Craton RPGB RPGB Uchi N. Abitibi S. Abitibi S. Abitibi Wawa Wawa Location of the Red Lake Greenstone belt (modified from Robert et al., 2005) Superior Craton – similar age and mineralisation to gold deposits in the Yilgarn Craton Western Australia
Slide 18: Regional Geology
District gold endowment of ~50Moz and growing - 37Moz on Evolution ground1 REGIONAL GEOLOGY ▪ Under explored, immature, well-endowed greenstone terrane with large potential (5Moz discovery at Great Bear in 2021) Red Lake - Campbell ▪ Limited access with Cochenour freshwater lakes ~30% total surface
Slide 19: Lower Campbell (MMTP)
Mineral Resource expanded by ~50% through recent drilling and LOWER CAMPBELL (MMTP) recognition of alternate mineralisation styles1 CAMPBELL RED LAKE Upper Campbell Ls Campbell Shaft 33L >1oz/t HST to Cochenour 36L ▪ Discovered late 1980s at Lower Campbell Reid Shaft ▪ MM - Miro Mittney (Discovering
Slide 20: Case Study – Lower Campbell (MMTP) Reid Shaft Pillar
CASE STUDY – LOWER CAMPBELL (MMTP) 63% of drilling ▪ 399km drilled at MMTP prior to 2021 pre-Evolution ownership not ▪ 253km (63%) not assayed for gold (core not kept) assayed for gold ▪ Subtle mineralisation, different orebody context ▪ Significant drill program ongoing: ▪ FY22 ~12,000m drilled Rei
Slide 21: Case Study – Lower Campbell (MMTP)
A CASE STUDY – LOWER CAMPBELL (MMTP) MMTP Dec 2021 Mineral Resource MMTP Dec 2022 Mineral Resource 256koz at 4.56g/t Au1 502koz at 5.14g/t Au1 96% ounces 5656750N 5656825N 5656900N 5656930N 5656855N -1230 -1245 -1305 -1320 Legend MMTP mineralised domains Historically unsampled holes FY22 Holes -1380
Slide 22: Recent Drilling: Upper Campbell
RECENT DRILLING: UPPER CAMPBELL Upper Campbell 9 Level – “A Hangingwall” ▪ Multiple high-grade stacked lodes in 5.2(4.1)@58.6g/t hangingwall of historic “A Zone” ▪ Maiden area of gold mineralisation and growth 3.2(2.2)@24.5g/t potential informed by 24.4(17.1)@4.3g/t recent drilling results ▪ Can be
Slide 23: Processing Infrastructure
PROCESSING INFRASTRUCTURE Red Lake mill ▪ 0.35Mtpa capacity Red Lake ▪ Conventional crushing, grinding, gravity concentration, CIP ▪ Flotation/concentrate handling McKenzie ▪ Paste plant Island Campbell TSF Balmer Lake Red Lake TSF Airport Campbell mill ▪ 0.8Mtpa capacity ▪ Crushing and grinding, gr
Slide 24: Processing
PROCESSING ▪ Mill remains mine-constrained with ample capacity available ▪ Unit costs reducing by ~30% since acquisition with significant focus on controlling costs in inflationary environment FY20 Q4 FY21 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY22 Q1 FY22 Q2 FY22 Q43 FY22 Q4 FY23 Q1 FY23 Q2 FY23 Q3 FY23 Q4 To
Slide 25: Cost Drivers and Sensitivities
COST DRIVERS AND SENSITIVITIES • Employees and contract mining services account for FY23 cost drivers ~56% total costs • Contract management remains a significant Parts / Contract management focus services and consumables, • Further reduction in primary fleet and personnel 23% labour, 22% requiremen
Slide 26: Reducing Capital Intensity
REDUCING CAPITAL INTENSITY Significant reinvestment ▪ Major capital intensity reduction as re-capitalisation since acquisition of existing mining areas drops off Major capital expenditure ($M) ▪ Upper Campbell mine investment FY21-24 – FY21 FY22 FY23 FY24 Guidance 1 developing new mining front 46 15
Slide 27: Key Takeaways
KEY TAKEAWAYS Premier gold mine in a Tier 1 jurisdiction Safe, reliable, margin delivery focus Improvements guided for FY24: AISC reducing by ~24% and Production increasing by ~40% Large mineral endowment to support future growth potential 27
Slide 28: Evolution Mining
Evolution MINING
Slide 29: Group Gold Mineral Resources at December 2022
GROUP GOLD MINERAL RESOURCES AT 31 DECEMBER 2022 ( W I T H E R N E S T H E N R Y J U N E 2 0 2 3 M I N E R A L R E S O U R C E U P D AT E ) Gold Measured Indicated Inferred Total Resource Gold Gold Gold Gold Gold Gold Gold Cut-off Tonnes Tonnes Tonnes Gold Metal CP7 Project Type Tonnes (Mt) Grade Me
Slide 30: Group Gold Ore Reserves at December 2022
GROUP GOLD ORE RESERVES AT 31 DECEMBER 2022 ( W I T H E R N E S T H E N R Y J U N E 2 0 2 3 O R E R E S E R V E U P D AT E ) Gold Proved Probable Total Reserve Competent Cut-off Tonnes Gold Grade Gold Metal Tonnes Gold Grade Gold Metal Tonnes Gold Grade Gold Metal Person8 Project Type (g/t Au) (Mt)
Slide 31: Group Resources & Reserves at December 2022
GROUP RESOURCES & RESERVES AT 31 DECEMBER 2022 ( W I T H E R N E S T H E N R Y J U N E 2 0 2 3 O R E R E S E R V E A N D M I N E R A L R E S O U R C E U P D AT E S ) Group Mineral Resource – contained copper Copper Measured Indicated Inferred Total Resource Copper CP3 Tonnes Copper Tonnes Copper Cop
Slide 32: Site Leadership
SITE LEADERSHIP John Penhall – VP Red Lake Operations John is a motivated, outcome focused professional with over 21 years of operational mine site and leadership experience delivering growth and strategic business outcomes in complex settings. John has experience across Australia and South America,
Slide 33: Site Leadership
SITE LEADERSHIP Thomas Lethbridge – General Manager Red Lake Operations Thomas is a highly experienced mining professional with a strong track record of leadership and operational management in the mining industry. With a Bachelor of Engineering (Mining) from the University of NSW, Thomas has consis
Slide 34: Timeline
TIMELINE 1949 1991 1996 2002 2006 2012 2020 Mining McEwen Four year Discovery of the Dickenson and Cochenour Evolution acquires commences restructures labour strike Deep Sulphide Campbell mines haulage drift Red Lake in the companies to begins zones merge to create completed, now Operation from 2022
Slide 35: Mobile Equipment Overview
MOBILE EQUIPMENT OVERVIEW EVN fleet Right sizing the fleet – 2 x Single Boom Sandvik DD311 Primary Production units Jumbos (8) (decommission 1 in January 24) 1 x Twin Boom Sandvik DD420-40 targeting 32 pieces 1 x Twin Boom Sandvik 6-240 3 x Twin Boom Sandvik DD321-40 (Jumbo, Scoops, Trucks) 1 x Twin
Slide 36: Mining Infrastructure
N MINING INFRASTRUCTURE Cochenour shaft Reid shaft 1,000m Service shaft to Cochenour Primary ore hoist from Lower mine Campbell and Cochenour CYD decline Red Lake Surface portal and decline in development Primary access to Upper Campbell and HG Young McKenzie Island Balmer Lake Airport High-speed tr
Slide 37: Processing Flow Sheet
PROCESSING FLOW SHEET CAMPBELL MILL RED LAKE MILL Leach BULLION Flotation Tails Leach 37
Slide 38: Red Lake Quarterly Financials
RED LAKE QUARTERLY FINANCIALS PRODUCTION AND COST SUMMARY1 Quarter Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Period Ended On Units 06/30/2020 09/30/2020 12/31/2020 03/31/2021 06/30/2021 09/30/2021 12/31/2021 03/31/2022 06/30/2022 09/30/2022 12/31/22 03/31/23 06/30
Slide 39: Red Lake Exploration Results
RED LAKE EXPLORATION RESULTS 39
Slide 40: Red Lake Competent Person Statement
RED LAKE COMPETENT PERSON STATEMENT The information in this report that relates to the Red Lake exploration results is based on work compiled by Dan Macklin who is employed on a full-time basis by Evolution Mining Limited and is a member of the Australian Institute of Geoscientists (member number 49
Slide 41: Red Lake Drill Hole Information Summary
RED LAKE DRILL HOLE INFORMATION SUMMARY Easting Hole Northing Elevation Dip Azimuth From Interval ETW Au Hole ID Hole Type NAD83 Length NAD83 (m) (m) NAD83 NAD83 (m) (m) (m) (g/t) (m) (m) D091128 DDH 5656543.0 448035.3 -10.5 65.0 -22 32 34.00 4.43 3.54 2.91 D091128 DDH 5656543.0 448035.3 -10.5 65.0
Slide 42: Section 1 Sampling Techniques and Data
SECTION 1 SAMPLING TECHNIQUES AND DATA Red Lake Section 1 Sampling Techniques and Data Criteria Explanation Commentary • Nature and quality of sampling (e.g. cut channels, random chips, or specific • Sampling of gold mineralisation at Red Lake Operation is undertaken using diamond core Sampling spec
Slide 43: Section 1 Sampling Techniques and Data
SECTION 1 SAMPLING TECHNIQUES AND DATA Red Lake Section 1 Sampling Techniques and Data Criteria Explanation Commentary • Whether core and chip samples have been geologically and geotechnically logged to • All logging is both qualitative and quantitative in nature recording features such as overburde
Slide 44: Section 1 Sampling Techniques and Data
SECTION 1 SAMPLING TECHNIQUES AND DATA Red Lake Section 1 Sampling Techniques and Data Criteria Explanation Commentary • Measures taken to ensure sample representation include the collection of field duplicates during Sub- diamond core sampling drilling at the geologist’s discretion and within the o
Slide 45: Section 1 Sampling Techniques and Data
SECTION 1 SAMPLING TECHNIQUES AND DATA Red Lake Section 1 Sampling Techniques and Data Criteria Explanation Commentary • The verification of significant intersections by either independent or alternative company • Independent internal or external verification of significant intercepts is not routine
Slide 46: Section 1 Sampling Techniques and Data
SECTION 1 SAMPLING TECHNIQUES AND DATA Red Lake Section 1 Sampling Techniques and Data Criteria Explanation Commentary • Whether the orientation of sampling achieves unbiased sampling of possible • Mineralized zones in the Red Lake-Campbell deposit are distinguished first by spatial Orientation stru
Slide 47: Section 2 Reporting of Exploration Results
SECTION 2 REPORTING OF EXPLORATION RESULTS Red Lake Section 2 Sampling Techniques and Data Criteria Explanation Commentary • Type, reference name/number, location and ownership including agreements or • Drilling at A-Hangingwall zone was undertaken on the following mining claims: Cochenour & Mineral
Slide 48: Section 2 Reporting of Exploration Results
SECTION 2 REPORTING OF EXPLORATION RESULTS Red Lake Section 2 Sampling Techniques and Data Criteria Explanation Commentary • Deposit type, geological setting and style of mineralisation. • The mineralization within the Red Lake Operations can be classified as an Archean greenstone Geology belt-hoste
Slide 49: Section 2 Reporting of Exploration Results
SECTION 2 REPORTING OF EXPLORATION RESULTS Red Lake Section 2 Sampling Techniques and Data Criteria Explanation Commentary • A summary of all information material to the understanding of the exploration • Refer to the drill hole information table in the Appendix of this presentation. Drill hole resu
Slide 50: Section 2 Reporting of Exploration Results
SECTION 2 REPORTING OF EXPLORATION RESULTS Red Lake Section 2 Sampling Techniques and Data Criteria Explanation Commentary • Appropriate maps and sections (with scales) and tabulations of intercepts should Diagrams be included for any significant discovery being reported. These should include, but n
Slide 51: Section 2 Reporting of Exploration Results
SECTION 2 REPORTING OF EXPLORATION RESULTS Red Lake Section 2 Sampling Techniques and Data Criteria Explanation Commentary • Where comprehensive reporting of all Exploration Results is not practicable, • All Exploration and Resource Definition results from 9 level A Hangingwall zone drilling have Ba
Slide 52: Evolution Mining
Evolution MINING
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