Castlemaine Goldfields Limited. AGM Presentation by Matthew Gill MD & CEO. April

Transcription

1 Castlemaine Goldfields Limited AGM Presentation by Matthew Gill MD & CEO April

2 Castlemaine Goldfields Ltd Disclaimer & Disclosure The presentation (in this projected form and as verbally presented) ( Presentation ) is provided on the basis that none of the Company nor its respective officers, shareholders, related bodies corporate, partners, affiliates, employees, representatives and advisers make any representation or warranty (express or implied) as to the accuracy, reliability, relevance or completeness of the material contained in the Presentation and nothing contained in the Presentation is, or may be relied upon as a promise, representation or warranty, whether as to the past or the future. The Company hereby excludes all warranties that can be excluded by law. The Presentation contains prospective financial material which is predictive in nature and may be affected by inaccurate assumptions or by known or unknown risks and uncertainties and may differ materially from results ultimately achieved. The Presentation contains forward-looking statements. All statements other than those of historical facts included in the Presentation are forward-looking statements. Where the Company expresses or implies an expectation or belief as to future events or results, such expectation or belief is expressed in good faith and believed to have a reasonable basis. However, forward-looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed, projected or implied by such forward-looking statements. Such risks include, but are not limited to, gold and other metals price volatility, currency fluctuations, increased production costs and variances in ore grade or recovery rates from those assumed in mining plans, as well as political and operational risks and governmental regulation and judicial outcomes. The Company does not undertake any obligation to release publicly any revisions to any forward-looking statement. All persons should consider seeking appropriate professional advice in reviewing the Presentation and the Company. The information in this presentation that relates to Exploration Results, Mineral Resources and Exploration Potential is based on information compiled by Mr Wessley Edgar. Mr Edgar is an employee of Castlemaine Goldfields Ltd, is a member of the Australian Institute of Mining and Metallurgy and The Society of Economic Geologists and is a Competent Person as defined in the 2004 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code). The Exploration Potential described in this Presentation is conceptual in nature, and there is insufficient information to establish whether further exploration will result in the determination of a Mineral Resource. Mr Edgar consents to the publication of this information in the form and content in which it appears. The project planning and schedule and any resources referred to in this presentation are not based on estimations of Ore Reserves or Mineral Resources made in accordance with the JORC Code for the Ballarat East goldfield and caution should be exercised in any external technical or economic evaluation. Considering the style of mineralisation, and particularly the uncertainty of gold grade continuity, Mineral Resource or Ore Reserve estimates will only be possible once mining has accessed the Lower Llanberris and Britannia gold mineralisation to gain further geological and grade information. CGT emphasises that no Ore Reserve currently exists and cannot be estimated until drilling results can be correlated with bulk tonnage mining outcomes. Page 2

3 Presentation Agenda Castlemaine Goldfields - the year that was The Ballarat Gold Project Regional exploration programmes Castlemaine Goldfield Tarnagulla Sebastian Castlemaine Goldfields the year ahead Page 3

4 Executive Summary Castlemaine Goldfields Limited ( CGT ) is an ASX listed gold explorer and near term producer with a market capitalisation of $58 million. No debt. Projects located in Central Victoria (historic gold production of 64Moz) CGT s five key assets: 1. Ballarat - historic production in excess of 12Moz, established infrastructure (total capex of >$400m), expected return to production Q3 2011, significant exploration potential with defined drilling program 2. Castlemaine - historic production 5.6Moz, first JORC Inferred Resource estimate of 686k ozs in 2008, 3 clear projects being explored, drilling resumed in Berringa - historic production 1Moz, planned drilling 2011 / 2012 high grade potential 4. Tarnagulla - historic production >700Koz, planned drilling 2011 high grade potential 5. Sebastian - historic production 187Koz, currently drilling near surface potential Clear growth path to exploit assets Board & Management team with depth and relevant experience to execute growth strategy Page 4

5 Assets 5 projects with clear strategies for value creation $400m plant and development in place Near mine targeted exploration program Regional exploration program Approx 1 hour from Melbourne city Asset Historic production Strategy Next steps 1 Ballarat 12Mozs Targeted production of 50koz p.a. Recommence production Q3, 2011 Increased production profile from regional targets:- Asset Historic production Strategy Next steps 2 Castlemaine 5.6Mozs Feasibility study Confirmatory drilling Berringa 1.0Mozs Advanced exploration drilling 4 Tarnagulla 0.7Mozs Advanced exploration drilling Targeted drilling Regional and targeted and drilling 1 80km Castlemaine to Ballarat 5 Sebastian 0.2Mozs Target identification drilling Regional drilling 3 Page 5

6 Company activities during 2010 to now Highlights Ballarat Purchased the Ballarat Gold Project from Lihir Gold in May 2010 Smooth transition keeping the Mine on C&M Conducted a 15,000 metre due diligence exploration assessment Completed a positive feasibility study into the re-commencement of gold mining Awarded the mining contract and commenced underground development in March 2011, on schedule Castlemaine Goldfield South Wattle Gully (shallow) target drill tested North Quartz Hill drill tested In-fillResource drilling at the Chewton Deposit commenced Tarnagulla A 6 hole diamond drill hole program completed Sebastian A small RC program completed Page 6

7 The Ballarat Gold Project Investment Highlights Purchased the Ballarat Gold Mine and assets from Lihir Gold in May 2010 Low capital entry cost Ballarat Mine re-start de-risked Portal and declines in, processing plant built & commissioned, fully permitted to operate Realistic production profile Exploration validated Ballarat acquisition Near term production Targets clearly defined Clear growth profile Mining has begun Page 7

8 Ballarat - Overview History Assets 12Moz gold mined from alluvial and quartz vein hosted deposits since 1850 s Lihir Gold Limited (LGL) acquired tenements in 2007 and completed construction of world class gold plant and related facilities ~18km of underground development $400m plant and development including: 600ktpa processing plant Golden Point ventilation shaft Extensive surface infrastructure Mining licences and extensive exploration ground Profile Two declines at the right location to mine Focus on 4 geological compartments Nuggetty quartz reefs avg. 8.9g/t (historical) Page 8

9 Ballarat - Field Dev. & Prod. History The graphic shows the present historical development with ounces per vertical metre (OVM) as presented by LGL Plan View Sulieman line of reef First Chance line of reef Cross Section Current activities Page 9

10 Ballarat Near term production Targeted production of 50,000 oz p.a. starting Q3, 2011 Two Ore Sources Llanberris and Britannia mineralisation Volumes targeted 200,000tpa Assumptions 7.5g/t to 8.5g/t gold* Initial 2.5 year production period Anticipated cash operating cost $710 to $750/oz** Mine start Britannia 61.2 g/t 49.5 g/t g/t 13.4 g/t 8.1 g/t 87 g/t 17.7 g/t Future potential for MFZ lodes in the Victoria compartment. March 2011 quarter First gold September 2011 quarter Exploration commitment MFZ Golden Point assessment drilling complete narrow vein potential only Modeled mineralisation. First mining objective Second mining objective Near mine Britannia, Victoria, Sulieman Line The key data supporting the basis for this range are the exploration results achieved from the company s diamond drill program since May 2010, and the fact that the historical goldfield recovered grade was 8.9g/t. This grade range is conceptual in nature and there has been insufficient exploration to date to define a mineral resource and it is uncertain if further exploration will result in the determination of a mineral resource. ** cash operating cost includes costs associated with the mining and processing of material to produce gold bullion, including the site support functions associated with administration, safety, security and environment. The cost does not include head office costs, royalties, depreciation, amortisation or expenditure of a capital nature. Page 10

11 Lower Llanberris and Britannia Resolved 5 mineralisation shapes Tonnages in line with due diligence expectations Highest grade intersections in Tiger South and Mako shapes Drilling results used for mine planning and decision to access Page 11

12 Ballarat Proposed Mine Development Existing development Proposed development Future potential Victoria Compartment Lower Llanberris Britannia (in-fill drilling required) 2.5km of decline and 850 metres of access waste development Aiming to intersect first ore in Q Page 12

13 Ballarat Future Growth Near mine exploration targets Exploration Targets totalling approx. 8g/t Au for 200,000 oz Au identified* Sulieman Line Focus on northern compartments (geological and mining conditions are favourable) Significant growth potential Sulieman Line Upholes. Open to the north. Intersections include: 119.5g/t & 162.8g/t, 13.8g/t, 61.4g/t Sulieman Line Basking Fault Zone close proximity to existing development, intersections include: 53.8g/t, 7.3g/t, 26.6g/t, 69.3g/t, 9.2g/t, 7.1g/t, 65.5g/t Victoria compartment * The Exploration Targets described in this Presentation are conceptual in nature, and there is insufficient information to establish whether further exploration will result in the determination of a Mineral Resource. Page 13

14 Increased production profile - Castlemaine History Produced 5.6Moz gold (substantially from alluvial sources) Wattle Gully gold mine within CGT licence area (produced over 12g/t head grade) Chewton Resource estimate June 2008 Independent scoping of Chewton completed June 2009 Assets Chewton Deposit (JORC Inferred Resource of 574koz of gold) Wattle Gully (JORC Inferred Resource of 112koz of gold) 2 Strategy Resource confirmation drilling Advance feasibility study Convert Resource to mill feed for Ballarat 80 kms Page 14

15 Increased production profile Castlemaine Wattle Gully & Chewton Chewton Deposit now drilling Cappers Page 15

16 Increased production profile - Tarnagulla Regional testing in Historical production Page 16

17 Increased production profile - Sebastian x2 shallow RC holes x2 shallow RC holes 1.9 kms Page 17

18 Berringa Project 25kms to Ballarat Mill Historical production (1898 to 1917) 292,000oz from 1,080,000 tonnes (8.4g/t)* Birthday Tunnel Alluvial gold discovered in Kangaroo Gully in 1856 Kangaroo William Fancy Small scale quartz mining between 1865 to 1898 Large scale quartz mining beginning in 1898 and lasting until 1917 (WW1) Small revival lasting from 1937 to 1952 South Birthday Freehold Underground exploration at the Berringa Mine in the 1970 s and 1980 s with limited work done * = Recovered

19 Increased production profile - Berringa Historical Production stated Page 19

20 Summary Clear path to value creation GOLD PRODUCTION (2011) Ballarat: Mine & commission Mine Exploration: +$3m spend Regional Exploration: +$4m spend at Castlemaine / Chewton, Berringa and Tarnagulla GROW 2012 to 2013 Produce: Steady State targeting 50,000 oz pa Ballarat Targets: Victoria, Golden Point, Sulieman Line Ballarat South Regional Targets: Chewton, Berringa and Tarnagulla EXPAND - BEYOND Produce: Targeting 75 to 100,000 oz pa Multiple Ballarat sources Multiple regional ore sources World class infrastructure (>$400m spent) Add new production sources at Ballarat Targeted regional exploration program Page 20

21 Conclusion ASX listed gold explorer and near term producer with a market capitalisation of $58 million Low capital entry cost. No debt. Strong asset base Ballarat near term production Regional growth profile from 4 significant goldfields Significant infrastructure (over $400m previously spent) already in place and plant commissioned (de-risked) Clear growth path to exploit assets Defined path to production (expected Q3, 2011) Strategically reviewed and prioritised exploration program developed from 48 separate project targets Board & Management team with depth and relevant experience to execute growth strategy Page 21

22 ASX: CGT Thank you Page 22 Ballarat Gold Plant with Gold Room at end of rainbow