Vault Minerals Limited · ASX:VAU
Vault Minerals — Red 5 — RIU Explorers Conference 2021
43 slides from Vault Minerals's conference presentation, Feb 17, 2021
Slide 1: RIU Explorers Conference
For personal use only RIU Explorers Conference 18 February 2021 ASX Code: RED Byron Dumpleton, Chief Geologist www.red5ltd.com
Slide 2: Competent Person's Statement and Disclaimer
Competent Person’s Statement and Disclaimer For personal use only Competent Person Statements for JORC 2012 Mineral Resource and Ore Reserves The information in this presentation that relates to the Mineral Resources at the Siana open pit is extracted from the report titled Siana Gold Project – Open
Slide 3: Red 5 Limited – a standout growth opportunity
Red 5 Limited – a standout growth opportunity ✓ For personal use only Two gold mines in WA’s Eastern Goldfields - one of the world’s safest and most prospective gold districts ▪ Darlot and King of the Hills (KOTH) ▪ 2,816 sq km of granted and pending tenements ✓ KOTH is a major new Australian gold m
Slide 4: Red 5 Limited – corporate profile
Red 5 Limited – corporate profile For personal use only Our Company Vision “To be a successful multi-operational exploration and mining company, providing benefits to all stakeholders, through the consistent application of technical excellence, and responsible and sustainable industry practices.” Sh
Slide 5: 2021 - two producing mines, one plant
2021 - two producing mines, one plant For personal use only KOTH OP and UG Mine Darlot UG Mine Darlot Plant 2022 target: two mines, two plants 5 www.red5ltd.com
Slide 6: KOTH – Australia's next major gold mine
KOTH – Australia’s next major gold mine For personal use only ✓ Final Feasibility Study highlights3: Australia’s top 10 gold deposits ▪ Initial 16-year mine life by Ore Reserve2 ▪ First production Jun-Qtr 2022 Mt g/t Moz Cadia 1480.0 0.5 22.5 ▪ First 4 years open pit and underground mining, peaking
Slide 7: KOTH site activities commenced, orders placed
KOTH site activities commenced, orders placed For personal use only A$M1 Processing and infrastructure 188 Owners costs 12 Sub-total 200 Contingency 19 Sub-total 219 Mining pre-strip 7 Mill casings in USA being loaded for transport Total (Real) capital cost 226 ▪ EPC fixed-price contract awarded to
Slide 8: Camp to be ready for use in February 2021
Camp to be ready for use in February 2021 For personal use only ▪ Camp construction progressing well ▪ First stage of village to be ready for use in Feb-21 ▪ All central facility buildings have been delivered ▪ 61 single person quarters (SPQs) installed (220 rooms) ▪ 35 SPQs and 3 laundries ordered
Slide 9: Bulk earthworks for KOTH Plant commenced
Bulk earthworks for KOTH Plant commenced For personal use only ▪ MACA Interquip mobilised to site ▪ Earthworks started in December 2020 ▪ Process plant equipment orders are being progressively issued ▪ Plate for CIL Tanks have been ordered ▪ Plant design on track ▪ Phase 2 EPC Notice of Award to be
Slide 10: Delivery of SAG Mill and Gyratory Crusher
Delivery of SAG Mill and Gyratory Crusher For personal use only ▪ The 15MW SAG Mill, shell and motors have been shipped from Houston to Johannesburg for refurbishment and upgrade ▪ The variable speed drive for the SAG mill is undergoing inspection in Switzerland ▪ MACA Interquip is supplying a new M
Slide 11: KOTH on-track for first gold in June 2022 Quarter
KOTH on-track for first gold in June 2022 Quarter For personal use only 2020 2021 2022 SQ DQ MQ JQ SQ DQ MQ JQ SQ DQ Final Feasibility Study approval Early site works Stage 2 permits Debt financing Final Investment Decision EPC mobilisation Site construction Mill delivery Mine contractor mobilisatio
Slide 12: KOTH geology is well understood
KOTH geology is well understood For personal use only Mar-20 Mineral Resource1 Aug-20 Ore Reserve2 91Mt @ 1.4 g/t for 64.6Mt @ 1.2 g/t for 4.1Moz Au 2.4Moz Au ▪ Extensive stockwork development along ultramafic granodiorite contact ▪ 4km long x 2km wide ▪ Red 5 knowledge of the resource from mining u
Slide 13: KOTH - mineralisation open in all directions
KOTH - mineralisation open in all directions For personal use only White Walker Lemonwood South Pit Drilling bulk stope New Structural Corridor Mineralised stockwork penetrates at least 70 metres into the granodiorite from the granodiorite- ultramafic contact Proof of concept drilling confirms gold
Slide 14: KOTH - Satellite pits delivering supplementary feed
KOTH - Satellite pits delivering supplementary feed For personal use only ▪ KOTH mine plan includes three satellite open pits at Rainbow, Cerebus-Eclipse and Centauri ▪ JORC Probable Ore Reserves1: o Rainbow: 1.9Mt @ 0.9g/t Au for 53,000oz o Cerebus-Eclipse: 1.5Mt @ 1.0g/t Au for 48,000oz o Centauri
Slide 15: KOTH exploration – numerous targets
KOTH exploration – numerous targets ▪ Integrated datasets have identified priority targets For personal use only along the Tarmoola and Ursus Fault corridors ▪ Tarmoola Fault Corridor ▪ Poorly tested outside of the mine area ▪ Bulk of historical AC/RAB drilling ineffective (failed to reach top of fr
Slide 16: Darlot exploration: targeting 5-10 year mine life
For personal use only Darlot exploration: targeting 5-10 year mine life 16
Slide 17: Darlot long term – opportunities to extend LOM
Darlot long term – opportunities to extend LOM For personal use only Darlot Gold Mine1 Cables & Mission4 ▪ Resource 11.8Mt @ 3.4g/t Au for ▪ Combined JORC 2004 Resource of 1.5Mt @ 3.1g/t Au for 185koz2 1.3Moz ▪ Historical drilling suggests both ▪ Reserve 2.7Mt @ 2.8g/t Au for 239koz deposits remain
Slide 18: Great Western - mining commenced Feb-21
Great Western - mining commenced Feb-21 ▪ Updated mineral resource1 For personal use only ▪ 870kt @ 2.5g/t Au for 70koz ▪ Maiden Open Pit Ore Reserve1 ▪ 438kt @ 2.5g/t Au for 34.5koz contained gold ▪ Underground Ore Reserve still to be established ▪ Deposit open at depth ▪ Mining has started in Febr
Slide 19: Cable & Mission
Cable & Mission For personal use only ▪ ~10km north of Darlot along strike on the Taranaki Shear ▪ Within the Yandal Greenstone Belt Taranaki Shear ▪ Promising initial intersections from Mission Corridor include1: ▪ 5.0m @ 0.87g/t from 25m – 20MIRC0017 ▪ 16.0m @ 1.88g/t from 41m – 20MIRC0017 ▪ 11.0m
Slide 20: Dingo Ridge – Ockerburry
Dingo Ridge – Ockerburry For personal use only ▪ ~20km NW of Darlot along the northern section of the Ockerburry Shear Zone ▪ Characterised by a large, coherent 4km long x 500m wide NNE- trending gold anomaly previously identified from historical drilling ▪ Mineralisation open at depth, with the sou
Slide 21: KOTH is a unique Project in uncertain times
KOTH is a unique Project in uncertain times For personal use only Growth of the Australian gold industry ▪ Top 10 Australian gold deposit by Ore Reserve ▪ 16 year LOM, average 176kozpa in Years 1-61 ▪ Flexibility to expand Mill throughput, extend underground mine life beyond 4 years Benefits to West
Slide 22: Thank-you
For personal use only Thank-you 22 www.red5ltd.com ASX Code: RED
Slide 23: Red 5 – appendix
For personal use only 23 Red 5 – appendix
Slide 24: Red 5 transformation to a mid-tier gold producer
Red 5 transformation to a mid-tier gold producer For personal use only ▪ AISC and indicative mine reserve life of WA-based gold companies1,2 ▪ Gold companies/assets (Bubble Size = Indicative Production p.a) 2,200 Red 5 - Today The planned development of 2,000 KOTH will position RED as a leading mid-
Slide 25: Red 5 EV/Reserve relative to its peers
Red 5 EV/Reserve relative to its peers For personal use only ▪ Valuation of WA based-gold companies1 ▪ Bubble Size = Enterprise Value 2,000 Pantoro Ramelius Resources EV / Reserve (A$/oz) 1,500 Silver Lake Resources 1,000 Ora Banda Mining Gold Road Resources Dacian Gold Westgold Resources 500 Capric
Slide 26: Strong leadership team with operating expertise
Strong leadership team with operating expertise For personal use only Red 5 has a strong and capable team, with many years of mining and development experience both at Red 5 and previously at multi-billion international development projects – the Company is well placed to deliver the KOTH developmen
Slide 27: ESG – enhancing governance and capability
ESG – enhancing governance and capability For personal use only Ms Andrea Sutton, Non-Executive Director, appointed Nov-20 ▪ 25+ years experience with Rio Tinto and Energy Resources of Australia (ERA) ▪ Current Board Member of Infrastructure WA, ANSTO (Australian Nuclear Science and Technology Organ
Slide 28: ESG – a company built on a strong safety culture
ESG – a company built on a strong safety culture For personal use only ▪ No LTI’s for the December 2020 Quarter ▪ Continual engagement and focus on Safety ownership to address the current TRIFR spike through EHS Leading Indicator Programs, reinforcement of vital behaviours and personal safety traini
Slide 29: FY21 Darlot transition year to satellite feed
FY21 Darlot transition year to satellite feed For personal use only ▪ Dec-Qtr production 21,534oz, AISC A$2,181/oz1 ▪ FY21 production guidance1 of 80,000 – 85,000oz ▪ FY21 AISC guidance $2,150 - $2,280/oz ▪ Lower than expected mining rates and grade from the Darlot Underground, predominantly associa
Slide 30: KOTH 2.4Moz Ore Reserve
KOTH 2.4Moz Ore Reserve1 For personal use only Total KOTH Ore Reserves as at September 2020 Cut-off JORC 2012 Tonnes Gold Contained Deposit Mining Method (g/t) Classification (Mt) (g/t) Gold (Moz) KOTH Open pit 0.39 Probable 58.5 1.1 2.1 KOTH Underground 1.60 Probable 2.4 2.3 0.2 Rainbow Open pit 0.
Slide 31: KOTH 4.1Moz Mineral Resource
KOTH 4.1Moz Mineral Resource1 For personal use only Total Open Pit & Underground KOTH Resource as at March 2020 Cut-off Mining Tonnes Gold Contained Gold ▪ Cut-off date for inclusion of Classification drilling data and mining (g/t) Method (000t) (g/t) (000oz) depletion as at 19 February Indicated 0.
Slide 32: 15MW SAG Mill - support much higher throughput
15MW SAG Mill - support much higher throughput For personal use only Hardest Ore Design Mid High ▪ Conventional 4Mtpa CIL plant ▪ Acquired 15MW, dual Power Draw (kW) 9,272 10,859 12,445 synchronous motor semi- autonomous grind (SAG) mill Grind Size (P80) 150 150 150 with VVVF drive Tonnes Per Hour (
Slide 33: Initial LOM – open pit and underground
16 year initial LOM – open pit and underground For personal use only ▪ Bulk open pit and underground mine ▪ Start-up benefits from existing low-grade stockpiles (1.6Mt @ 0.6g/t) and Rainbow satellite pit ▪ Minimal 3 months pre-strip required in FY22 ▪ Underground mining @ 1Mtpa for the first four ye
Slide 34: A large gold mine generating substantial cash flow
A large gold mine generating substantial cash flow1 For personal use only Pre-tax Unit $2,000/oz $2,250/oz $2,500/oz $2,750/oz $3,000/oz At a gold price of A$2,500/oz: Project cashflow $M 1,147 1,710 2,273 2,837 3,400 ▪ Free cashflow (after tax) of: NPV8% $M 512 806 1,101 1,395 1,689 IRR % 38.0% 51.
Slide 35: Mine Plan optimises material movement over LOM
Mine Plan optimises material movement over LOM For personal use only Cost of Production ($A/oz) Yrs 1-6 LOM ▪ Mining to be undertaken by mining contractors Mining 895 908 ▪ Contractors to install mining facilities Processing 273 321 ▪ Open pit fleet forecast to include 250t excavators and 140t haul
Slide 36: KOTH LOM Plan focussed on maximising value
KOTH LOM Plan focussed on maximising value ▪ Early years of LOM benefit from UG mining and For personal use only processing of high-grade ore ▪ Potential to extend UG mining beyond FY27 ▪ Low-grade ore is stockpiled and processed in the back half of the LOM Plan ▪ Lower AISC during Years 1-6 result
Slide 37: 4mtpa CIL plant with expansion capability
4mtpa CIL plant with expansion capability For personal use only ▪ Conventional 4Mtpa CIL plant Classification ▪ Designed for future expansion to 6Mtpa with minimal interruption and low CAPEX Primary Gyratory Crusher ▪ Order has been placed for SAG mill Gravity Circuit ▪ Gyratory crusher with 6Mtpa i
Slide 38: Further scope to increase production and extend LOM
Further scope to increase production and extend LOM For personal use only ▪ Future expansion in processing capacity ▪ 6Mtpa crushing circuit included in FFS design/cost ▪ Oversize 4Mtpa SAG Mill selected ▪ Design allowance for upgrade of the grinding, leaching and elution components ▪ Minimal produc
Slide 39: KOTH LOM plan gold sales profile
KOTH LOM plan gold sales profile1 For personal use only 1. Red 5 ASX Release: 15 September 2020. 39 www.red5ltd.com
Slide 40: KOTH LOM plan sensitivities
KOTH LOM plan sensitivities1 For personal use only 1. Red 5 ASX Release: 15 September 2020. 40 www.red5ltd.com
Slide 41: Siana Gold Project, Philippines
Siana Gold Project, Philippines For personal use only ▪ The Siana Gold Mine, owned by Philippine affiliated company Greenstone Resources, suspended mine operations in April 2017 ▪ Maintaining mill and pit dewatering to preserve value ▪ Siana is a valuable gold mining asset1: ▪ 8 year Life-of-Mine pl
Slide 42: KOTH is in the Top gold deposits in Australia
KOTH is in the Top 20 gold deposits in Australia For personal use only Resources Reserves Mt g/t Moz Mt g/t Moz Cadia 3174.0 0.4 37.5 Cadia 1480.0 0.5 22.5 Boddington 931.1 0.6 17.4 Boddington 566.3 0.7 11.9 Golden Mile (100%) 272.6 1.4 12.0 Golden Mile (100%) 178.2 1.1 6.3 Tanami 65.5 4.3 9.1 Tanam
Slide 43: Appendix – Australian top gold deposits
Appendix – Australian top 20 gold deposits1 Resources Reserves Resources Reserves Mt g/t Moz Mt g/t Moz Mt g/t Moz Mt g/t Moz For personal use only Cadia Newcrest Sunrise Dam AngloGold Measured 32.0 0.30 0.3 Proven Measured 28.9 1.54 1.4 Proven 11.2 1.39 0.5 Indicated 3090.0 0.37 36.5 Probable 1480.