Dacian Gold — 27th BMO Global Metals & Mining Conference 2018
23 slides from Dacian Gold's conference presentation, February 2018
Slide 1: First gold in five weeks
First gold in five weeks Rohan Williams, Executive Chairman & CEO Major new gold discovery Exploration Ramp-up to at Cameron gathering +200Koz pa at Well sets momentum as US$810/oz foundation for production next leg of gets underway growth 27th BMO Global Metals & Mining Conference, Florida – Februa
Slide 2: Important Notice & Disclaimer
Important Notice & Disclaimer • The purpose of this presentation is to provide general information about Dacian Gold Limited (“Dacian” or the “Company”). It is not recommended that any person makes any investment decision in relation to the Company based solely on this presentation. • This presentat
Slide 3: Dacian Gold – Investment Overview
Dacian Gold – Investment Overview 100%-owned Mt Morgans Gold Project, Western Australia 3.3Moz Resource including 1.2Moz initial Ore Reserve • On track for first gold production late March 2018 • A$197M development running on time and on budget • New underground and open pit mines feeding new 2.5Mtp
Slide 4: Corporate Overview
Corporate Overview Tight Capital Structure Growing market recognition in countdown to production Shares on Issue 205.8 million Options 6.9 million Performance rights 0.7 million Market Capitalisation A$600 million (at $2.90) Cash A$117 million (as at 31 December 2017) Project Facility A$150 million
Slide 5: The Timeline – Delivering Consistently On Our Objectives
The Timeline – Delivering Consistently On Our Objectives Next equity raise (A$25M) 3 years ● 2012 – A$20M IPO at 50c → later in 2015 3Moz Resource included in 2015 ● 2013-14 – Discovery of two +1Moz deposits at Westralia & Jupiter → Scoping Study 1.2Moz Reserve, A$150m senior ● 2015-16 – Resource dr
Slide 6: The Timeline – Delivering Consistently On Our Objectives
The Timeline – Delivering Consistently On Our Objectives Mt Morgans Gold Project – site cleared for 2.5Mtpa CIL treatment plant 25th May 2017 6
Slide 7: The Timeline – Delivering Consistently On Our Objectives
The Timeline – Delivering Consistently On Our Objectives → From exploration IPO to first gold: ~5 years → From DFS and financing to first gold: ~16 months → From start of construction to first gold: ~11 months New 2.5Mtpa treatment plant, now >95% complete 18th February 2018 7
Slide 8: Mt Morgans – New +200kozpa Gold Mine, On Time and Budget
Mt Morgans – New +200kozpa Gold Mine, On Time and Budget • Located in the +30Moz Laverton goldfield • Surrounded by world-class mines with six +2Moz deposits within a 25km radius • Construction of new A$197m (US$155m) gold mine now >95% complete with first gold next month: • New 2.5Mtpa CIL plant an
Slide 9: Mount Morgans – A World-Class Australian Gold Project
Mount Morgans – A World-Class Australian Gold Project Cameron Well • Confirmed as third significant discovery • Extensive oxide mineralisation – Resource drilling underway • Multiple bedrock structures discovered Jupiter Mine Area • Large open pit complex • 1.4Moz resource inventory • Initial Ore Re
Slide 10: Treatment Plant – The Heart of a new +200kozpa Gold Mine
Treatment Plant – The Heart of a new +200kozpa Gold Mine • New 2.5Mtpa CIL treatment facility now >95% complete • On time and on budget • Recruitment of all plant operational and maintenance personnel completed • First gold on schedule for late March 2018 10
Slide 11: Westralia Mine Area – A Major Underground Mining Centre
Westralia Mine Area – A Major Underground Mining Centre • Oldest discovery in +30Moz Laverton gold field and dominant historical producer at Mt Morgans (+900,000oz at 4.5g/t) • Strongly endowed, high-grade gold system • Mineral Resource has grown fourfold since Dacian’s 2012 acquisition: • 8.6Mt @ 5
Slide 12: Westralia Mine Area – Underground Mining Advancing Well
Westralia Mine Area – Underground Mining Advancing Well • Underground mining progressing well with ore intersected on six separate levels at Beresford • 1,450m of ore development complete • 80,000t of ore on mine ROM pad • Capital development 873m ahead of Feasibility Study schedule • Underground fl
Slide 13: Westralia Mine Area – Already Targeting the Next Leg of Growth
Westralia Mine Area – Already Targeting the Next Leg of Growth • Potential Expansion PFS: • 938Koz at a potential forecast AISC of A$795-805/oz (US$620-630/oz) • Drilling well underway to upgrade the deeper Inferred Resource (in green) to Indicated status • Drilling also underway targeting resource
Slide 14: Jupiter Mine Area – Major New Open Pit Mining Complex
Jupiter Mine Area – Major New Open Pit Mining Complex • Maiden Ore Reserve of • 14.8Mt @ 1.4g/t Au for 643Koz • Forecast AISC A$1,193/oz (US$930/oz) • Single, large 1.8km long open pit, up to 650m wide and 220m deep. Three sub-pits: • Heffernans – 323Koz mined • Doublejay – 268Koz mined First blast
Slide 15: Mine Services – A State-of-the-Art Australian Gold Mine
Mine Services – A State-of-the-Art Australian Gold Mine • Installation of high-pressure gas pipeline from Eastern Goldfields Pipeline to Mt Morgans power station completed HP Gas receiving infrastructure at power station Gas engines firing • First gas engine fired on 8 February 2018 TSF Cell 1 compl
Slide 16: Cameron Well – A Major New Gold Discovery Close to the Plant
Cameron Well – A Major New Gold Discovery Close to the Plant Aircore drilling RC drilling • Significant new discovery located just 9km north-west of the new 2.5Mtpa CIL treatment plant • Reconnaissance aircore drilling commenced in September 2016 • Extensive 6km2 oxide gold anomaly defined by 1,594
Slide 17: Cameron Well – A Major New Gold Discovery Close to the Plant
Cameron Well – A Major New Gold Discovery Close to the Plant • Initial diamond drilling last year returned spectacular intercept of: • 2.3m @ 311.3g/t Au (17CWDD0005) • Outstanding results from recent RC resource drilling of oxide mineralisation: • 7m @ 10.6g/t gold from 19m; • 4m @ 11.7g/t gold fro
Slide 18: Exploration and Growth – New Discoveries to Increase Production
Exploration and Growth – New Discoveries to Increase Production • Mt Morgans exploration potential was overlooked for several decades: • Historical focus on production rather than exploration; multiple owners with multiple assets; disjointed exploration approach / methodology • Regional geological c
Slide 19: Key Takeaways – The Right Team to Deliver
Key Takeaways – The Right Team to Deliver Rohan Williams James Howard Chris Newman Executive Chairman & CEO Project Manager Geology Manager Grant Dyker Dan Baldwin Brett Hartman Chief Financial Officer Exploration Manager Mine Manager The Dacian team has built two of the last four +150kozpa new gold
Slide 20: Key Takeaways – Share Price Catalysts in 2018
Key Takeaways – Share Price Catalysts in 2018 • First gold pour by end of March 2018 • Ramp-up of underground and open pit mine production to +200Koz pa • Achieving design throughput (2.5Mtpa) at new treatment plant • Mineral Resource and Ore Reserve upgrades end of June 2018 • Maiden Mineral Resour
Slide 21: Key Takeaways – Set for a Transformational Year in 2018
Key Takeaways – Set for a Transformational Year in 2018 NEW, LONG-LIFE AUSTRALIAN GOLD PROJECT Largest new gold mine in Australia in over six years FIRST GOLD IN FIVE WEEKS New state-of-the-art 2.5Mtpa plant, underground and open pit mines, plus mine services and personnel EXCEPTIONAL ORGANIC GROWTH
Slide 22: First gold in five weeks
First gold in five weeks Rohan Williams, Executive Chairman & CEO Major new gold discovery Exploration Ramp-up to at Cameron gathering +200koz pa at Well sets momentum as US$810/oz foundation for production next leg of gets underway growth 27th BMO Global Metals & Mining Conference, Florida – Februa
Slide 23: Appendix – Mineral Resources and Ore Reserves
Appendix – Mineral Resources and Ore Reserves Mount Morgans Gold Project Mineral Resources at 28 July 2016 COG Measured Indicated Inferred Total Mineral Resource Au/g/t Mt Au g/t Koz Au Mt Au g/t Koz Au Mt Au g/t Ko Au Mt Au g/t Koz Au King Street* 0.5 - - - - - - 0.5 0.2 33 0.5 2.0 33 Jupiter 0.5 1
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