1.25 Moz HIGH-GRADE, SHALLOW WA GOLD PROJECT · Resolute Mining, Avion Gold Corporation and GCM....
Transcript of 1.25 Moz HIGH-GRADE, SHALLOW WA GOLD PROJECT · Resolute Mining, Avion Gold Corporation and GCM....
ASX:CAI
1.25 Moz HIGH - GRADE, SHALLOW WA GOLD PROJECTPROGRESSING TO DEVELOPMENTPRESENTATION MARCH 2019
DISCLAIMER
DISCLAIMER
This presentation does not constitute investment advice. Neither this presentation nor the information contained in it constitutes an offer, invitation, solicitation or recommendation in relation to the purchase or sale of shares in any jurisdiction. This presentation does not take into account any person's particular investment objectives, financial resources or other relevant circumstances and the opinions and recommendations in this presentation are not intended to represent recommendations of particular investments to particular persons. All securities transactions involve risks, which include (among others) the risk of adverse or unanticipated market, financial or political developments.
To the fullest extent permitted by law, Calidus Resources Limited (the Company or Calidus) does not make any representation or warranty, express or implied, as to the accuracy or completeness of any information, statements, opinions, estimates, forecasts or other representations contained in this presentation. No responsibility for any errors or omissions from this presentation arising out of negligence or otherwise is accepted.
This presentation may include forward looking statements. Forward looking statements are only predictions and are subject to risks, uncertainties and assumptions which are outside the control of Calidus. These risks, uncertainties and assumptions include commodity prices, currency fluctuations, economic and financial market conditions in various countries and regions, environmental risks and legislative, fiscal or regulatory developments, political risks, project delay or advancement, approvals and cost estimates. Actual values, results or events may be materially different to those expressed or implied in this presentation. Given these uncertainties, readers are cautioned not to place reliance on forward looking statements. Any forward looking statements in this presentation speak only at the date of issue of this presentation. Subject to any continuing obligations under applicable law and the ASX Listing Rules, Calidus does not undertake any obligation to update or revise any information or any of the forward looking statements in this presentation or any changes in events, conditions or circumstances on which any such forward looking statement is based.
COMPLIANCE STATEMENT
The information in this presentation that relates to Exploration Results and Mineral Resources released previously on the ASX.
The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcements and that, in the case of mineral resources estimates, all material assumptions and technical parameters underpinning the estimates continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcements.
Mr Daniel Saunders is principal and a full time employee of GeoServ Consulting Pty Ltd, and is a Member of the AusIMM. Mr Daniel Saunders has sufficient experience that is relevant to the style of mineralisation and types of deposit under consideration and to the activities undertaken to qualify as a Competent Person as defined in the 2012 Edition of the JORC Code.
Ms Jane Allen is a full time employee of the Company, and is a member of the AusIMM. Ms Jane Allen has sufficient experience that is relevant to the style of mineralisation and type of deposits under consideration and to the activates undertaken to qualify as a Competent Person as defined in the 2012 Edition of the JORC Code.
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PROGRESSING TOWARDS PRODUCTION
SNAPSHOT
• 1.25 Moz resource at 1.83 g/t Au including 1.1Moz at 2.37g/t
• 795,000oz of Indicated Resources (64%)
• 203% increase in resource since listing June 2017 (412,000oz)
• Fully funded Pre-feasibility Study (PFS) commenced, completion due Q3 2019
• PFS will enable rapid transition to Definitive Feasibility Study (DFS)
• Environmental monitoring well advanced, applications for permits to be submitted Q3 2019
• Significant exploration upside both adjacent to existing resources and in greenfields areas on 781 km2 tenement package being targeted in 2019
PAGE 3 CORPORATE PRESENTATION MARCH 2019
DRIVING DEVELOPMENT PROGRESSA CENTURY OF EXPERIENCE IN PRECIOUS- METAL PROJECT DEVELOPMENT
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MARK CONNELLYNON-EXECUTIVE CHAIRMAN
Over 30 years’ resource industry experience in CEO and Managing Director roles across multiple jurisdictions including Australia, West Africa, North America and Europe. Currently Non-Executive Chairman at West African Resources Ltd
KEITH COUGHLAN NON-EXECUTIVE DIRECTOR
30 years’ experience in stockbroking and funds management on ASX, AIM and TSX. Currently the MD of European Metals Holdings and recently retired as chairman of TalgaResources
ADAM MIETHKENON-EXECUTIVE DIRECTOR
Over 15 years’ experience in exploration and mine geology, funds management and corporate advisory. Previous technical and corporate roles at Rio Tinto, Snowden, Regent Pacific Group and Argonaut
BOARD
EXECUTIVE MANAGEMENT
DAVE REEVESMANAGING DIRECTOR
30 years’ mining experience in Australia, Africa and Europe. Instrumental in the progression of four mining projects through feasibility to project development
FERNANDO MOUTINHOPROJECT MANAGER30 years’ international experience with GRD Minproc, Sheffield Resources, Syrah Resources, New Century Resources
JANE ALLENGEOLOGY MANAGER30 years’ international mining experience with Anglogold Ashanti, Resolute Mining, AvionGold Corporation and GCM
PAUL BRENNANCOO
20 years’ mining experience in Australia, Africa and Europe. Most recently GM at Saracen’s Carasoue Dam operation
CORPORATE PRESENTATION MARCH 2019
CORPORATE OVERVIEW
CAPITAL STRUCTURESHARES ON ISSUE 1,419
Million
MARKET CAP(undiluted at A$0.026)
$36.9Million
CASH (as at 31 Dec 2018)
$3.9Million
LISTED INVESTMENTS $2.5Million
ENTERPRISE VALUE $30.5Million
OPTIONS(will raise $6.9m if exercised)
254Million3
PERFORMANCE SHARES
275 Million4
CAPITAL STRUCTURE AND SHAREHOLDERS
1. Using share price of $0.22 as at 25 March 20192. CAI board and management own 18 % of Keras3. 118m @ 2.5c, 50m @ 2.0c, 70m @ 3.5c and 16m @ 3.0c 4. Performance Shares vest on completion of a positive PFS5. ALK cash balance as at 31 December 2018
KEY SHAREHOLDERS KERAS RESOURCES2
(AIM:KRS) 32.3%
ALKANE RESOURCES (ASX:ALK) 10.2%
NOVO RESOURCES (TSX: NVO) 4.0%
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WELL FUNDED• Cash reserves of $3.9m• Investment in Pacton Gold (TSX: PAC) valued at $2.5m1
• 2.5c exercisable options to raise $2.2m due June 2019
STRONG CORPORATE MINING SUPPORT• Keras Resources – London listed exploration company2
• Alkane Resources – ASX listed Australian domiciled gold producer with c.$80m in cash reserves and investments5
• Novo Resources – Canadian listed, well funded Pilbara Gold explorer with nearby gold properties and JORC resources
TIGHTLY HELD SHARE REGISTER• Over 15% Tier 1 institutional ownership • Top 20 hold 70%
CORPORATE PRESENTATION MARCH 2019
LOCATED IN AREA WITH PROVEN RESOURCE POTENTIAL WARRAWOONA GOLD PROJECT
PAGE 6 CORPORATE PRESENTATION MARCH 2019
780KM 2 OF CONTIGUOUS TENURECONTROL OF PROVEN GREENSTONE BELT
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780km2 under control, application or option
• +200 historic mines located on tenements
• Very limited previous exploration focused around the Klondyke workings
• Majority of package not covered by any soil sampling or drilling
CORPORATE PRESENTATION MARCH 2019
KLONDYKE DEPOSIT
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76% INCREASE IN GLOBAL RESOURCE BASE TO 1.15 MozKlondyke (0.5g/t cut-off summary)
Cut-off Indicated Inferred Total
Au g/t Mt g/t Au Ozs Mt g/t Au Ozs Mt g/t Au Ozs
Klondyke Open Pit 0.5 12.3 1.69 670,000 5.5 1.47 260,000 17.8 1.62 930,000
Klondyke Underground 2.0 0.8 3.3 80,000 1.4 3.03 140,000 2.2 3.13 220,000
Total 13.1 1.78 750,000 6.9 1.79 400,000 20.0 1.79 1,150,000
Deposit (0.8g/t cut-off summary)
Cut-off Indicated Inferred Total
Au g/t Mt g/t Au Ozs Mt g/t Au Ozs Mt g/t Au Ozs
Klondyke Open Pit 0.8 8.4 2.19 590,000 3.1 2.16 210,000 11.4 2.19 800,000
Klondyke Underground 2.0 0.8 3.3 80,000 1.4 3.03 140,000 2.2 3.13 220,000
Total 9.1 2.21 670,000 4.5 2.44 350,000 13.6 2.23 1,020,000
CORPORATE PRESENTATION MARCH 2019
HIGH GRADE MINERALISATION REMAINS OPEN AT DEPTH
KLONDYKE DEPOSIT
PAGE 9 CORPORATE PRESENTATION MARCH 2019
UPDATED MINERAL RESOURCE
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CONTINUOUS OUTCROPPING RESOURCE OPEN IN ALL DIRECTIONS
CORPORATE PRESENTATION MARCH 2019
MULTIPLE HIGH GRADE SATELLITE TARGETS, WITHIN 10KM OF KLONDYKEREGIONAL UPSIDE – LARGELY UNTESTED
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Deposit Cut-off Indicated Inferred Total
Au g/t Mt g/t Au Ozs Mt g/t Au Ozs Mt g/t Au OzsCopenhagen 0.5 0.2 5.27 36,000 0.1 1.84 3,000 0.3 4.65 39,000Coronation 0.5 - - - 0.5 2.19 34,000 0.5 2.19 34,000
Fieldings Gully 0.5 0.2 1.65 9,000 0.3 1.62 16,000 0.5 1.63 24,000
Total 0.4 3.70 45,000 0.9 1.96 53,000 1.3 2.53 98,000
CORPORATE PRESENTATION MARCH 2019
RAPID PROGRESSION OF PFS, SCHEDULED FOR Q3 2019 COMPLETION
METALLURGICAL TESTWORK• High gold recoveries (96.7% leach
recoveries), conventional processing methods & variability testing underway
ENVIRONMENTAL• All fieldwork to be complete in
April, submit permit applications in Q3 2019
HYDROLOGICAL• Initial water monitoring bores drilled
& hydrological model completed –production bores to be drilled in 2019
HERITAGE• Heritage clearance work completed
over area of disturbance
TAILINGS• Thickening testwork and geotechnical
testing complete, further confirmatory work planned, initial designs & locations finalised
PRE- FEASIBILITY STUDY INPUTS
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GEOTECHNICAL• All geotechnical drilling and analysis
complete
CORPORATE PRESENTATION MARCH 2019
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WELL SERVICED BY EXISTING INFRASTRUCTURE
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ASSISTS WITH RAPID COST EFFECTIVE DEVELOPMENT
MINING REGISTRAR LOCATED IN TOWN
SEALED AIRSTRIPIN MARBLE BAR
2 HOURS DRIVE FROM PORT HEDLAND ON SEALED ROAD (AUSTRALIA’S LARGEST PORT)
LOCATED 20KM SOUTH EAST OF MARBLE BAR
• All weather, council maintained road from Marble Bar to leases
• Access to trucked LNG from NW Shelf
• 100 rooms available in town
• All weather airstrip
CORPORATE PRESENTATION MARCH 2019
PARALLEL WORKSTREAMS TO PROVIDE CONSISTENT NEWSFLOWDEVELOPMENT TIMELINEEXPLORATION TIMELINE
PAGE 14 CORPORATE PRESENTATION MARCH 2019
Yandal, EAR
Karlawinda, CMM
Bombora, BRBWarrawoona (0.5 g/t
Au cut-off grade)
Leonora, KIN
Warrawoona (0.8g/t Au cut-off grade)
Katanning, AUC
1.0
1.2
1.4
1.6
1.8
2.0
2.2
2.4
2.6
1,000 1,050 1,100 1,150 1,200 1,250 1,300 1,350 1,400 1,450 1,500
Reso
urce
Gra
de (g
/t A
u)
Mineral Resource Ounces (koz)
ONE OF FEW HIGH GRADE INDEPENDENT DEVELOPMENT PROJECTSAUSTRALIAN OPEN PIT DEVELOPERS
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UNDEVELOPED OPEN-PIT WA PROJECTS (>1Moz Au)1,2
Scarcity of independent ASX open pit gold developers with Resource bases over 1Moz Au1. Data as at 26 March 20182. CAI includes underground resource of 220koz @ 3.13g/t
* Bubble size represents Enterprise Value
CORPORATE PRESENTATION MARCH 2019
168
8981
67
4942
2618
0
25
50
75
100
125
150
175
200
BGL VAN EAR BRB CMM GMD CAI KIN
EV/R
esou
rce
(A$/
oz)
VALUE GROWTH ASSOCIATED WITH DEVELOPMENTNEAR-TERM DEVELOPMENT
1. Data as at 25 March 20192. Calidus EV doesn’t account for listed investments of c.$2.9m
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UNDERVALUED COMPARED TO DEVELOPMENT PEERS1
Completed Feasibility Study
Prior to Feasibility Study
Average = $77/oz
BGL VAN EAR BRB CMM GMD CAI KIN
Key Project Bellevue Trident Yandal Bombora Karlawinda Ulysses Warrawoona Leonora
Stage Resource Development
Resource Development Feasibility PFS Commenced Financing Feasibility PFS Commenced Resource
Development
Mkt Cap (A$m) 271 72 118 79 56 37 37 25
EV (A$m) 257 74 113 73 55 32 332 18
Resource (koz) 1,530 825 1,405 1,084 1,114 760 1,248 1,023
Grade (g/t) 11.8 3.1 2.1 1.4 1.1 3.3 1.8 1.4
Mine Type Underground Underground Open-pit Open-pit Open-pit UndergroundOpen-pit &
Underground Potential
Open-pit
CORPORATE PRESENTATION MARCH 2019
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• Critical mass for a standalone development achieved
• High grade open pit outcropping resource
• Excellent metallurgy
• Experienced mine development team
• Fully funded through to Pre-feasibility Study completion
•Located in close proximity to high quality infrastructure and operating mines
•Greenfields exploration has significant potential for new discoveries given lack of modern or systematic exploration
•Uniquely positioned as one of few remaining high grade open-pit gold development companies on the ASX
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WEST AUSTRALIAN 1.25Moz HIGH - GRADE, SHALLOW GOLD DEVELOPER
REASONS TO INVEST
CORPORATE PRESENTATION MARCH 2019