Slide 1: Cowal Site Visit
For personal use only Cowal Site Visit 27 March 2018
Slide 2: Forward looking statement
For personal use only Forward looking statement These materials prepared by Evolution Mining Limited (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”, “expe
Slide 3: Quality asset with immense untapped potential
Quality asset with immense untapped potential For personal use only Sustainable low cost production Focused team driving impressive operating results Long mine life provides runway to capture additional upside Under explored region offers immense untapped potential 3
Slide 4: Safety performance and focus
Safety performance and focus Total Recordable Injury Frequency (TRIF) FY18 year-to-date performance For personal use only 20.0 Currently 647 days loss time incident (LTI) NSW Open Pit Metals Industry Average TRIF 20.0 (June-17) 15.0 free Total recordable injury frequency (TRIF) 10.0 currently at
Slide 5: Transcendence of safety, health and wellness culture
Transcendence of safety, health and wellness culture Project Arrive Alive For personal use only Fatigue management identified as a major operational risk Industry leading fatigue management policy and practices developed Strong emphasis on education and awareness to enable self-regulation En
Slide 6: Overview
Overview Residential workforce Approximately 40km north-east of For personal use only Location West Wyalong in New South Wales, Workforce: 345 employees and 175 contractors Australia Mining method Conventional open pit Shift roster: 7:7 Minerals Gold Mining commenced 2005 and processing 2006
Slide 7: History of Cowal
History of Cowal For personal use only 1988 2000 2002 2006 2015 2017 North Limited North Limited is Homestake Mining First gold is poured Evolution Mining Mine life is extended undertakes acquired by Rio merges with Barrick in April 2006 acquires Cowal Gold to 2032 extensive Tinto Gold Operation wit
Slide 8: Evolution achievements
Evolution achievements For personal use only EVOLUTION ACHIEVEMENTS UPSIDE OPPORTUNITIES SINCE ACQUISITION(1) GOLD PRODUCTION 633koz INCREASED THROUGHPUT NET MINE CASH FLOW A$412M FURTHER RESOURCE AND RESERVE EXPANSION MINING PERMIT EXTENDED BY 8 YEARS AT E41, E46, GALWAY/REGAL RESOURCES AND RESERVE
Slide 9: Delivering value
Delivering value Cowal acquisition For personal use only Purchase price A$707M Stamp and transaction costs A$49M Total asset cost A$756M Equity raised A$360M Debt facility A$400M 14 Total funding A$760M Performance under Evolution1 Operating cash flow A$558M 46% Capital investment A$146M Net mine ca
Slide 10: FY18 business improvement
FY18 business improvement Key Projects Business improvement cost savings ~45% better than target For personal use only Maintenance Effectiveness – planning and 10.0 9.0 execution: A$3.6M 8.0 Project Shut – shutdown service provider 7.0 contracts: A$1.5M 6.0 A$M Mining Improvements – fuel, tyre
Slide 11: Improving productivity
Improving productivity Tonnes/hour A$/t Processed For personal use only 1,000 16.00 980 15.50 15.00 960 14.50 940 14.00 920 13.50 900 13.00 12.50 880 12.00 860 11.50 840 11.00 TPOH 6MMA Unit Cost 6MMA 11
Slide 12: Cowal projects overview
Cowal projects overview Significant investment in Cowal’s future For personal use only Delivers mine life through to 2032 Further extension opportunities beyond current mine life Stage H cutback on track All pre-work complete Ramped up to full scale mining activity Cutback scheduled to
Slide 13: E42 Stage H footprint
E42 Stage H footprint For personal use only 13
Slide 14: Stage H material movement on track
Stage H material movement on track For personal use only 14
Slide 15: E42 material movement
E42 material movement Capital investment profile for waste stripping over next four years For personal use only FY18: A$40 – 45M, FY19: A$70 – 75M, FY20: A$85 – 90M, FY21: A$35 – 40M Remaining Life of Mine E42 material movement: Year Capital Operating Ore (FY) Waste Waste Mined (Mt) (Mt) (Mt)
Slide 16: Float tails leach project
Float tails leach project Gold extraction from the flotation tailings is expected to improve recoveries by 4 – 6% on primary ore For personal use only Capital investment of A$35.0 – A$40.0 million to be spent over FY18 and FY19 Commissioning on track for December 2018 half year Provides flow
Slide 17: Plant expansion feasibility study
Plant expansion feasibility study Feasibility study on track for completion in December 2018 half year and will assess flowsheet options up For personal use only to 9.8Mtpa Targeting a drop in processing unit costs of 10 – 15% Enables oxide co-treatment and reduces ore rehandling Included in
Slide 18: Integrated waste landform
Integrated waste landform Proposed tailings solution to support For personal use only plant expansion options up to 9.8Mtpa Footprint contained within existing Mining Lease boundary Key enabler of future mine development and expansion Significantly reduced costs over LOM Proposed layout of I
Slide 19: Permitting
Permitting Mod 12 – previous permit For personal use only Operations to 31 December 2024 with plant throughput at 7.5Mtpa Mod 13 – current permit Operations extended to 2032 Underpins current LOM (including Stage H) Mod 14 – to be submitted by 31 March 2018 (decision expected within 12 months)
Slide 20: Environment
Environment Cowal operates under strict Environmental Assessment (EA) Celebrating 10 years of Lake Cowal For personal use only Conservation Centre guidelines providing detailed measures to mitigate potential (LCCC) environmental impact Measures include: ISO14001 certified ICMI certified An
Slide 21: Social responsibility
Social responsibility 2017 Community Spend 2017 Cowal awards For personal use only Cowal’s positive relationship with its local community Mining Operation of the Year 2017 stakeholder groups is being continually developed and NSW Mineral Council’s Safety Excellence Award 2017 maintained throug
Slide 22: Untapped potential
For personal use only Untapped potential 22
Slide 23: Exploration backdrop
Exploration backdrop ▪ World class copper-gold geologic setting For personal use only ▪ Large, underexplored land holding – ~1,100km2 ▪ In need of a modern exploration approach ▪ Multiple target styles: ▪ Polymetallic epithermal vein deposits (eg Cowal) ▪ Porphyry copper-gold deposits (alkalic and c
Slide 24: Near mine resources
Near mine resources For personal use only Current CGO Resource outlines and E42 E46 – 280k oz’s MR AUD 1800 optimum pit shells • Reserves • Mineral Resource • Past Production • Total Endowment E42 Reserves 2.2Moz Resource 3.1Moz Past Production 2.7Moz Total E42 Endowment >6Moz E46 East UG E41W 250k
Slide 25: Key focus areas for near mine growth
Key focus areas for near mine growth ▪ E41 East and West (1km south of E42) For personal use only ▪ Combination of oxide and sulphide epithermal gold mineralisation ▪ Neither deposit closed-off ▪ GRE46 – 1.6km long mineralised corridor ▪ Separated from E42 by the Glenfiddich Fault ▪ Mineral resource
Slide 26: Recent results motivated a targeting rethink
Recent results motivated a targeting rethink E41 West For personal use only 139m grading 1.17g/t Au from 269m (E41D2802)1 21m grading 2.19g/t Au from 349m and 88m grading 0.72g/t Au from 448m (E41D2804)2 31m grading 1.10g/t Au from 298m (E41D2803)2 12.0m grading 0.3% Cu and 0.24 g/t Au fro
Slide 27: Regional setting
Regional setting ▪ Macquarie Arc volcanic belts (in green) For personal use only ▪ Emplaced 480 to 430 million years ago ▪ Main copper-gold event 440 million years ago (e.g., Cadia and North Parkes) PEAK HILL NORTHPARKES ▪ Cowal equivalent in age to Cadia and North Parkes CADIA DISTRICT ▪ Arc dismem
Slide 28: Porphyry-epithermal geologic environment
Porphyry-epithermal geologic environment For personal use only Peak Hill / Gidginbung Cowal Cadia North Parkes Marsden (pre-amputation) This diagram is extracted from “Proceedings of Exploration 17: Sixth Decennial International Conference on Mineral Exploration” edited by V. Tschirhart and M.D. Tho
Slide 29: Cowal mineral system
Cowal mineral system For personal use only 29
Slide 30: Near-mine to regional exploration outlook
Near-mine to regional exploration outlook ▪ E41 Magnetic For personal use only ▪ Delineate full extent of mineralisation at West Image and East deposits Gold Corridor ▪ Lake drilling necessary to fully assess E41 North East Cowal ▪ Drill test adjacent porphyry potential ▪ GRE46 Central ▪ Continue co
Slide 31: Tenements under-explored at depth
Tenements under-explored at depth For personal use only All drilling >100m drilling >200m drilling ▪ Extensive drilling of tenements by various owners since the 1980s but limited drilling at depth 31
Slide 32: Near mine resource development – Marsden
Near mine resource development – Marsden Provides additional long term optionality For personal use only Acquired from Newcrest in August 2016 Current Pre-feasibility Study Core across key sections re-logged Re-estimation of Resource model Key considerations Ore processing Detailed d
Slide 33: Target pipeline
Target pipeline For personal use only North Cowal E42 Lodes South Cowal GRE46 (Au) Central Cowal (Au, E39 Cu) E41 Extensions Central Cowal Marsden (Cu-Au) E38 (Au, Cu) E46Nth E40 Eastern Cowal E46 West (Au) E42 E43 GRE 46 Corridor LogJam Extensions Caloola E41 E and E41 Decoy MillyMilly W Pits (Au)
Slide 34: Unleashing the potential at Cowal
Unleashing the potential at Cowal For personal use only Sustainable low cost production Strong operating performance Long mine life Untapped potential 34
Slide 35: Appendix
For personal use only Appendix
Slide 36: Cowal December 2016 MROR
Cowal December 2016 MROR Cowal Gold Mine Ore Reserves - December 2016 For personal use only Proved Probable Total Ore Reserve Cut-off (g/t Tonnes Grade Cont Metal Tonnes Grade Cont Metal Tonnes Grade Cont Metal Au) (Mt) Au (g/t) Au (koz) (Mt) Au (g/t) Au (koz) (Mt) Au (g/t) Au (koz) E42 Oxide 0.40 0
Slide 37: Cowal Ore Reserve growth
Cowal Ore Reserve growth Cowal Ore Reserve Changes For personal use only December 2014 to December 2016 4,000 3,500 87 29 326 494 Reserve ounces (koz) 3,000 309 69 900 2,500 231 2,000 471 1,500 3,200 2,848 1,000 1,555 500 0 2014 Reserve Stockpiles Stage G Stage H Depletion December Additions Model C
Slide 38: Process equipment
Process equipment Power supplied by AGL For personal use only Crushing Primary crushing: Metso 54-75 Superior MK-II gyratory crusher Grinding FFE 36’ x 20.5’ SAG mill, FFE 22’ x 36.5’ ball mill Forged steel 125mm balls (SAG), 80mm balls (ball mill) Screening Schenck Vibrating screens
Slide 39: Mining fleet
Mining fleet ▪ Haulage/mine trucks ▪ Shovels/excavators/loaders For personal use only − 16 x Cat 789C Dump Trucks − 1 x Liebherr 9400 Excavator − 5 x Cat 785 Dump Trucks − 1 x Liebherr 994B Excavator ▪ Drilling equipment − 1 x Hitachi EX3600 Excavator − 1 x Hitachi EX1200 Excavator − 3 x Atlas Copco
Slide 40: Evolution Mining
For personal use only Evolution Mining ASX Code: EVN www.evolutionmining.com.au