Slide 1: Growth Focused Precious Metals Producer
Growth Focused Precious Metals Producer For personal use only Corporate Presentation: August 2017 ASX:AGD | TSX-V:AGLD | www.australgold.com
Slide 2: Disclaimer
Disclaimer For personal use only • This presentation contains information about Austral Gold Limited ("Austral Gold") and Austral Gold's properties that have been extracted from more comprehensive documents. The information contained in this presentation is given in summary form and is qualified in
Slide 3: Mineral Resources and Reserves: Cautionary Note
Mineral Resources and Reserves: Cautionary Note For personal use only Cautionary Note to US Investors Concerning Estimates of Mineral Reserves and Resources. This presentation has been prepared in accordance with the requirements of Canadian securities laws, which differ from the requirements of U.S
Slide 4: Key Principles
Key Principles: Establish position amongst leaders of precious metals miners, with the For personal use only highest rates of safety and stewardship of the environment. Strive for the lowest operating costs among companies of the same scale in the Americas. Be the preferred partner for companies, co
Slide 5: Property Locations: South American Focus
Property Locations: South American Focus For personal use only Guanaco/Amancaya Production Casposo Production Pingüino Development ASX:AGD | TSX-V:AGLD | www.australgold.com 5
Slide 6: Austral Gold Foundations
Austral Gold Foundations • Technical team with proven track record of success For personal use only Experienced Team • Underground, heap and agitation leach specialists • Majority controlled by preeminent Argentinean businessman • Outstanding epithermal exploration team Guanaco: Historical All-in Su
Slide 7: Strong Growth Potential
Strong Growth Potential Securing at least 3 year reserve profile: For personal use only Reserves at Operations • Casposo*: 972,000 tonnes @ 2.53 g/t Au and 231.0 g/t Ag • Guanaco+ Amancaya: 2,410 ktonnes @ 4.29 g/t Au and 118.8 g/t Ag TOTAL Owned Ounces#: 308,300 gold and 7,024,200 silver Total M&I:
Slide 8: Our History: Production vs Gold Price
Our History: Production vs Gold Price Amancaya Open For personal use only 60000 $2,000 Pit Mining Amancaya Merge with ATX Acquisition and TSX.V listing $1,750 50000 $1,500 Production (oz GEO) 40000 Gold Price (US$/oz) $1,250 30000 $1,000 Expansion towards Argentina through M&A Purchase of (ATX|GRM)
Slide 9: Near-term Expectations
Near-term Expectations 2017 Target: ~100K Au Eq For personal use only (Guanaco + Amancaya + Casposo*) Full Operation of Agitation Leach Plant Q3, 2017 Complete PFS for Amancaya + Guanaco Q3 2017 Commence Open Pit Mining at Amancaya Q2, 2017 Commence Commissioning of Agitation Leach Plant Q1 2017 * C
Slide 10: Board of Directors
Board of Directors Non-Executive Director and Chairman: He is a founding member of the law For personal use only Mr Elsztain is Chairman of all the firm Zang, Bergel & Viñes. companies that IFISA controls. Mr Mr Zang is an adviser and Member Elsztain is a member of the World of the Board of Director
Slide 11: Senior Management
Senior Management Stabro Kasaneva: CEO, Executive Director • Prior to his role as CEO he was Chief Operating Officer of the Company since September 2009 and has led the For personal use only Company from the re-start of the Guanaco mine in late 2010 . • Prior to his work with Austral Gold, Stabro se
Slide 12: Share Information
Share Information $CND $AU For personal use only Current Share Ownership Exchanges: TSX-V ASX Symbol AGLD AGD Share Price: as at 15 12.8 IFISA 5.6 August, 2017 0.175 0.175 E. Elsztain Shares Outstanding 519 m 519m Free Float Fully Diluted O/S 519 m 519 m Market Capital 88.2m 96.0m Cash ($US) Mar 31,
Slide 13: Guanaco District: Combined Operation of Guanaco and Amancaya
Guanaco District: Combined Operation of Guanaco and Amancaya For personal use only ASX:AGD | TSX-V:AGLD | www.australgold.com 13
Slide 14: Guanaco Mine: History
Guanaco Mine: History • Guanaco mine is located approximately 230km from the port city of Antofagasta, the major mining For personal use only hub for northern Chile. • It is a high sulphidation epithermal vein system of the Paleocene age, with gold mineralisation hosted in E-W structures, which have
Slide 15: Guanaco Operations
Guanaco Operations For personal use only • Company has historically mined inferred resources, which have contributed up to 95% of production to the plant historically. The company expects to continue to mine resources for 3 years. • Guanaco cash flow has financed the Argentex and Goldrock private pl
Slide 16: Guanaco Plant Construction
Guanaco Plant Construction For personal use only • New 1500 tpd agitation leach and Merrill-Crowe processing plant commenced commissioning tests in Q1 of 2017, and expected to commence full operation during Q3 2017. • Expected gold recovery: 93%. • Current recovery of 73% from the operating heap lea
Slide 17: Amancaya: New Open Pit Mine
Amancaya: New Open Pit Mine For personal use only • Open pit mining commenced in early 2017. • Project purchased from Yamana Gold in 2014, who retain a 2% NSR. • Mining on single Central Vein from surface expected to last up to 18 months, prior to commencing underground operations • Mined ore is sto
Slide 18: Amancaya and Guanaco Combined PFS: Positive Economic Results
Amancaya and Guanaco Combined PFS: Positive Economic Results For personal use only • RPA prepared an independent Technical Report on both the Guanaco Mine and Amancaya Project operating as a combined operation HIGHLIGHTS* – After-Tax Net Present Value (NPV): $US73.1m at a 5.0% discount rate – Mine l
Slide 19: Infill drilling: Central Vein expansion of high grade mineralisation
Infill drilling: Central Vein- expansion of high grade mineralisation For personal use only ? • Significant new high grade shoot 500 m strike length and ~100 m vertical extent from surface • New high grade intersect potentially the top of a new southerly dipping shoot. ASX:AGD | TSX-V:AGLD | www.aus
Slide 20: Combined Reserve and Resources
Combined Reserve and Resources For personal use only Reserves, as of 31 December 2016 Tonnage Grades (g/t) Contained Metal Ounces (oz) Area Category (kt) Au Ag AuEq Au Ag AuEq Proven& Combined All Probable 1,437.7 5.48 42.9 6.05 253,000 1,980,000 280,000 Refer to Slide 21 for notes on the estimates
Slide 21: Reserves and Resources
Reserves and Resources • As of Dec 31 2016 (Guanaco and Amancaya Gold Project, Region II, Chile, Technical Report, For personal use only June 16, 2017) Guanaco had the following Reserve: Category Area Tonnage Grades (g/t) Contained Metal Ounces (oz) (t) Au Ag AuEq Au Ag AuEq Total Proven All 189,613
Slide 22: Reserves and Resources: Amancaya
Reserves and Resources: Amancaya For personal use only Reserves: as of Dec 31, 2016 Tonnage Grades (g/t) Contained Metal Ounces (oz) Area Category (kt) Au Ag AuEq Au Ag AuEq Underground Proven & Probable 693.5 6.48 42.5 7.05 144,396 946,681 157,081 Open Pit Probable 254.6 7.56 119.5 9.16 61,887 978,
Slide 23: Amancaya: Emerging Vein Field
Amancaya: Emerging Vein Field For personal use only • Grab samples from float quartz vein sampling have identified linear features with anomalous gold geochemistry. Preliminary geophysical linear anomalies in general coincide with the float trains observed in the colluival covered areas, and are see
Slide 24: Amancaya Exploration: New Vein Discovery
Amancaya Exploration: New Vein Discovery For personal use only • Results from first 44 trenches sampled have returned encouraging results. • A new 2.8 km long vein (Nueva Vein) sampled with anomalous to high grade gold intersections in trenching. • 2.5 metres at 9.70 g/t gold highest trenching inter
Slide 25: Casposo Underground Silver and Gold Mine
Casposo Underground Silver and Gold Mine For personal use only • Troy Resources commenced open pit mining at Casposo in 2010, with processing by way of milling, agitation cyanide leaching and a Merrill-Crowe circuit to first produce doré in November 2010. • Austral is Operator, with 70% ownership, a
Slide 26: Casposo Resource and Reserve Estimate
Casposo Resource and Reserve Estimate • As of June 30th 2016 the resource and reserve estimate is: For personal use only Tonnes (000) Grades (g/t) Contained Metal (000 oz) Ag Au Ag Au Proven 115,000 170 1.76 630 6.5 Probable 857,000 240 2.63 6,602 72.5 Total Reserves 972,000 231 2.53 7,232 79.0 CIM
Slide 27: Casposo LOM Plan
Casposo LOM Plan – Pre-Tax NPV of $53 million, After-Tax NPV $37 million Average gold production of For personal use only 21,000 ounces of gold and 1.7 million ounces of silver per year; – All-In Sustaining Cost of $1,038/oz gold equivalent. – Metallurgical recovery based on operating data averaging
Slide 28: Casposo Underground Resource
Casposo Underground Resource • The existing resource has considerable reserves utilizing a narrower minimum mining width For personal use only (2m), with many areas already having development in place. • There is significant potential for expansion of resource through brownfield resource drilling in
Slide 29: Future Growth
Future Growth • Potential Increase of free cash flow through operational growth; • Exploration Growth; For personal use only • Amancaya + satellite deposits: Exploration began in 2016 • Casposo: Exploration planned for 2017 • Guanaco brownfield: Commence exploration in late 2017 • Advance pipeline p
Slide 30: Pingüino, Santa Cruz, Argentina
Pingüino, Santa Cruz, Argentina For personal use only • The Silver-Zinc-Gold-Lead-Indium Pingüino project is an advanced stage development project in Santa Cruz, Argentina • In the last 15 years 6 mines have been constructed in Santa Cruz, making it one of the most prolific precious metal provinces
Slide 31: Pingüino: Silver-Gold-Lead-Zinc Project
Pingüino: Silver-Gold-Lead-Zinc Project For personal use only ASX:AGD | TSX-V:AGLD | www.australgold.com 31
Slide 32: Catalysts
Catalysts For personal use only Upcoming News and Developments Full Commissioning of leach agitation plant at Guanaco Greenfield exploration at Amancaya M&A activities ASX:AGD | TSX-V:AGLD | www.australgold.com 32
Slide 33: Summary
Summary For personal use only Austral Gold represents a compelling story: Experienced Technical team with proven epithermal track record (El Peñon, Guanaco, Pingüino, Amancaya, Casposo) able to leverage underground vein experience Owners and operators of low cost mines in Chile and Argentina wit
Slide 34: Thank You
Thank You For personal use only Mike Brown, VP Corp. Dev. mike.brown@australgold.com www.australgold.com ASX:AGD | TSX-V:AGLD | www.australgold.com 34