A growing platform for quality West African gold projects
INVESTOR PRESENTATION | JULY 2017
A growing platform for quality West African gold projects INVESTOR - - PowerPoint PPT Presentation
A growing platform for quality West African gold projects INVESTOR PRESENTATION | JULY 2017 CAUTIONARY STATEMENT This Presentation is for information purposes in connection with African Gold Group materially, and a number of factors may cause
INVESTOR PRESENTATION | JULY 2017
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This Presentation is for information purposes in connection with African Gold Group known as “AGG” or the “Company”(s), preliminary business plan only. While the information contained herein has been prepared in good faith, neither the Company nor any of its shareholders, directors, officers, agents, employees, consultants or advisers give, have given or have authority to give, any representations or warranties (express or implied) as to, or in relation to, the accuracy, reliability, completeness or suitability of the information in this Presentation, or any revision thereof, or of any other written or oral information made or to be made available to any interested party or its advisers (all such information being referred to as "Information") and liability therefore is expressly disclaimed. Accordingly, neither the Company nor any of its shareholders, directors, officers, agents, employees, consultants or advisers, take any responsibility for, or will accept any liability whether direct or indirect, express or implied, contractual, tortious, statutory or otherwise, in respect of the accuracy or completeness of the Information or for any of the opinions contained herein or for any errors, omissions
the use of this Presentation. Each party to whom this Presentation is made available must make its own independent assessment of the Company and the Presentation after making such investigations and taking such advice as may be deemed
person relying on such Presentation. This Presentation may contain forward-looking statements regarding the Company and its subsidiaries. These statements are based on various assumptions made by the Company. Such assumptions are subject to factors which are beyond our control and which involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements to be materially different from any future results, performances or achievements expressed or implied by the forward-looking statements. Forward-looking statements may in some cases be identified by terminology such as “may”, “will”, “could”, “should”, “expect”, “plan”, “intend”, “anticipate”, “believe”, “estimate”, “predict”, “potential”
forward looking statements are only predictions. Actual events or results may differ materially, and a number of factors may cause our actual results to differ materially from any such statement. Such factors include among others general market conditions, demand for our products, development in reserves and resources, unpredictable changes in regulations affecting our markets, market acceptance of products and such other factors that may be relevant from time to time. Although we believe that the expectations and assumptions reflected in the statements are reasonable, any person relying on such Information and Presentation are cautioned that we cannot guarantee future results, levels of activity, performance or achievement. In preparing this Presentation and except as required by law, we do not undertake or agree to any obligation or responsibility to provide the recipient with access to any additional information or to update this Presentation or Information or to correct any inaccuracies in, or omission from this Presentation or to update publicly any forward-looking statements for any reason after the date of this Presentation to conform these statements to actual results or to changes in our expectations. This Presentation does not constitute an offer or invitation to sell, or any solicitation
herein shall form the basis of any contract or commitment whatsoever. Copies of this Presentation should not be distributed to any affiliates, third parties or indirect recipients in any manner whatsoever. The distribution of this Presentation in or to persons subject to other jurisdiction may be restricted by law and persons into whose possession this Presentation comes should inform themselves about, and
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Madougou Project | Burkina Faso
Current Portfolio of Projects: Kobada Gold Project | Mali
update and project financing
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New team has extensive experience and illustrated past successes in West African mine project discovery, development, financing and operation.
Prospecting, Exploration work, Drilling Assessment, PEA, BFS, Permitting Approvals, Construction, Production
Mine Development Pipeline / Value Creation Next Project Madougou Project Kobada Gold Project
The new team is uniquely positioned to identify and develop quality projects in West Africa. New Management & Board since March 2017
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Stephan Theron - CEO
development and M&A experience within the mining industry.
(Buffalo Coal), and director of True Gold Mining.
and has worked on mining projects throughout Africa.
Sékou Konate – Country Manager
activities in Mali; former experience with Golden Shamrock , SEMAFO , OREZONE, Golden Rim and African Gold Group.
Travaux Publics, Chief Division of Supply Fuel at Petrostock State Company.
Brett A. Richards - President and COO
M&A, mine development and senior level operations.
consulting firm, and formerly held senior executive roles in West Africa, including CEO of Octéa Ltd, the transition CEO of Roxgold and the CEO of Avocet Mining. He also held other senior management positions at Katanga Mining Ltd, Kinross Gold and Co-Steel Inc.
Ontario Association of Certified Engineering Technologists and (O.A.C.E.T.T. - Mechanical Engineering); a member of the Prospectors and Developers Association of Canada (P.D.A.C).
Ryan Ptolemy - CFO
public and private sectors.
sector, particularly exploration and development stage companies
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Stan Bharti, P. Eng, M. Eng. - Chairman
international financier, and seasoned entrepreneur.
markets, and operations.
Bruce Humphrey - Director
roles with both junior and senior mining companies.
Iron Mines, President and CEO of Desert Sun Mining, and Senior Vice President and COO of Goldcorp.
John Begeman - Director
engineer.
director of Yamana Gold Inc. and Aberdeen International.
and director of Valencia Ventures, COO of Zinifex Canada, VP Western Operations for Goldcorp.
Georges Cohen - Director
corporate and management experience in Cap Gemini Group. Founder of Transiciel and oversaw its integration into Cap Gemini Group. Grenada’s Ambassador to the United Nations.
Marco J. Durante - Director and Founder
Banro Resource Corp. and Lyndex Exploration; focusing on Investor Relations strategies and financing initiatives.
Declan Franzmann, FAuaIMM - Director
Stephan Theron - Director
development and M&A experience within the mining industry. He has structured numerous mining focused investments and has worked on mining projects throughout Africa
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10 YR. SHARE PRICE (HIGH: $1.90; LOW: $0.04) MAJOR SHAREHOLDERS
* As at last reported quarter, Q4 ending December 31, 2016
New Board & Management
Forbes and Manhattan Companies 18.60% Georges Cohen 10.80% Sentry Investments 4.50% Marco Durante 2.60% Michael Nikiforuk 2.30%
Trading Symbol (TSX.V) AGG Shares Outstanding 392,770,333 Options* 16,300,000 Warrants* 143,681,817 Share Price (06/30/17) $0.06 52 Week Range $0.04 - $0.12
397,000 Market Cap. $19.6 M Cash (as at June 2017) ~$4.0 M Debt Nil
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The Kobada and Madougou projects are located within the prolific “Birimian Greenstone Belt”.
Kobada Madougou
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Randgold Resources 800-850koz.pa. Resolute Mining 175koz.pa. Endeavour Mining 175koz.pa. (800K oz pa. from 5 mines in West Africa) IAMGOLD 75koz.pa. (450K oz.pa. from 3 mines in West Africa) AngloGold Ashanti 75koz.pa.
MALI
Bamako
producer in Africa, after South Africa (1st) and Ghana (2nd)
(#1 source of GDP in country)
Kobada
NIGER COTE D’IVOIRE BURKINA FASO SENEGAL ALGERIA MAURITIANA
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“Decret No 2015‐0528/PM‐RM”
exploration permit which was the amalgamation of several permits under
“Arrete No 2012‐2338/MCMI‐SG”
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Production Expected to Increase
Strong Economics
Low Operating Costs
Low CAPEX
Notes: Key economic assumptions for the Feasibility Study were; $1,200 Au/oz; 35% corporate tax rate; 3% royalty; 90% AGG ownership, 10% Malian Gov.; USD1=XAF612 exchange rate; 5% discount rate.
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Mining Method & Production
Open pit mining; 50koz/year Au; throughput of 1.6Mt per annum; 3.3 LOM strip ratio Contract mined, 40t haul trucks, wheel loaders and excavators
1.26 g/t Au (1.4 g/t Au first 2 years)
Mining Costs
Mining: $2.35/tonne Processing: $6.55/tonne processed G&A: $3.54/tonne processed
Material
Soft, free dig. 94% saprolite ore present to 120m below surface (~56% of mineral resource is oxide)
Metallurgy
Highly amenable to gravity separation
Topography & Climate
Flat topography, rolling laterite plains Dry tropic climate
Power Needs
Low power requirements, electricity will be generated via diesel generators
Water Needs
Tailings facility will hold excess water from wet season. River adjacent to site if makeup water is required.
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$1,000/oz Au $1,100/oz Au $1,200/oz Au $1,300/oz Au $1,400/oz Au
Post-Tax Cash Flow (US$)
$68M $95M $121M $148M $174M
Post-Tax NPV, 5% (US$)
$45M $66M $86M $106M $126M
Post-Tax IRR
28% 36% 43% 49% 55%
Payback Period
3.4 years 2.8 years 2.6 years 2.4 years 2.3 years
Note: Undiscounted cash flow, NPV5%, IRR and payback period are all calculated on the Project’s free cash flow after taxation at each stated gold price.
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Drill & Blast (Laterite)
Free Dig (Saprolite)
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Accommodation Camp ROM Pad Process Facility North/Central Pits Waste Dumps Tailings Storage Facility
General Arrangement of the Process Facility:
Processing Method: Gravity concentration and intensive leaching
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Pre-production Sustaining Processing Plant $35.8M $2.2M Tailings Storage $3.3M $9.6M Infrastructure $2.9M
$3.0M
Closure
Contingency $4.5M
$36.8M Process, Plant & Eqmt. $22.4M Waste Stripping $21.0M Tailings $12.9M Plant Construction $5.8M Closure Costs $4.0M EP & Project Mgmt $3.1M Access Infrastructure $2.9M Plant Commissioning $2.0M Plant Transport & Ship $1.6M Camp & Accommodations $1.4M Earthworks, Civil & Fencing $1.3M Miscellaneous $3.4M Contingency $4.5M $86.3M
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AVK Avnel Gold Mining DNA Dalradian Res. HUM Hummingbird Res. ORE Orezone Gold WAF West African Res. BSX Belo Sun Mining CNL Continental Gold GOR Gold Road Res. LUG Lundin Gold LYD Lydian International NCA NewCastle Gold SBB Sabina Gold & Silver VIT Victoria Gold
Bubbles size represents total MI&I resources
*Data obtained from available public information, as at May 30, 2017
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Tonnage (Mt) Grade (g/t Au) Contained Gold (kozs)
Measured (0.3 g/t cut-off) 11.0 1.1 380 Indicated (0.3 g/t cut-off) 24.4 1.1 835 Total M&I 35.4 1.1 1,215 Inferred (0.3 g/t cut-off) 32.8 1.0 1,024
Tonnage (Mt) Grade (g/t Au) Contained Gold (kozs)
Proven (0.53 g/t cut-off) 5.7 1.22 225 Probable (0.53 g/t cut-off) 7.0 1.27 286 Total P&P 12.7 1.25 511
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Significant mineral growth opportunities
Current resources (4 km strike) only cover 33% of total mineral strike length identified on the property
irregular, high-angle quartz veins with disseminated sulphides Exploration Targets
Improve Resource Confidence Along Strike
@0.90 g/t to the immediate North and South
years of low waste stripping requirements At Depth
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Company Drill Holes Metres Diamond RC Air Core BRGM (1988) La Source (1996) Cominor (2002-04) IAMGold (2009) AGG (2005-12) AGG (2015) 7 50 132 2 904 13 913 4,825 10,113 200 108,886 1,398 913
26,901 1,398
8,377
1,108 126,335 29,412 95,187 1,736
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producer of gold (*2012)
are active in the region
Madougou
BURKINA FASO
Ouagadougou
Madougou
NIGER COTE D’IVOIRE MALI GHANA TOGO BENIN
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1990’s
Exploration licence was relinquished in 2002 due to lack of market support and corporate problems.
2005
Madougou exploration licence granted to Temfor, Burkina Faso junior company, who signed a JV agreement with Ampella Mining Ltd.
2010
Ampella signs a JV with Carbine Resources for the exploration of the licence.
2014
Due to low commodity prices and other financial reasons, Ampella was acquired by Centamin and the Madougou exploration licence was returned to Temfor. Temfor renewed the exploration licence for the next 3 years (until 20XX) Madougou exploration licence overlain on geophysical data showing various targets generated by Carbine/Ampella JV
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Excellent Location
Mineral Resource Potential
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Endeavour Mining
Madougou Project
30km
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Geochemical Sampling
Soil Regional: Nazala Target: Nimbo Target: Wagande Target: Wagande South: 500mx500m 100mx50m 200mx100m 100mx25m 100mx25m Rock Regional: Grab samples over artisanal diggings Doré Artisanal Workings: Dump sampling, 20mx20m grid
Trenching
Trenches 6 trenches totalling 245m
Geophysics
Airborne Surveys Magnetics, Radiometric & VLF 2,700 line km 100mx100m lines spacing Ground Surveys Nimbo Target IP: 21 line km at 100mx20m Dagabenen Target IP: 10.5 line km at 100mx20m Doré Target IP: 50mx5m Doré Target Magnetics
Drilling
RC Doré Target: Goussirdou Target: Nazala Target: Nimbo Target: Dagabenen Target: Wagande Target: 49 holes, 6,158m 33 holes, 4,392m 86 holes, 7,827m 26 holes, 3,142m 18 holes, 1,782m 5 holes, 774m
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Carbine, 2011
Dagbenan Target
(1.5km strike length)
Dagbenan South Target
(1.25km strike length)
Nimbo Target
(1.75km strike length)
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1.6 km long X 1 km wide Gold mineralization occurs in 3 sub-parallel lodes:
1. Main zone associated with shearing and quartz- carbonate-pyrite alteration along the contact between a granodiorite and sediment. Potential for volume and size. 2. Quarts veins within upper sediment and mafic
be very high grade (ex: 2m @ 73.2 g/t Au) but are generally narrow (2-3 m wide). 3. In shear (quartz veining) within the granodiorite
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2 km long (NS) X 0.7 km wide
sub parallel quartz veins with extensive stringers
pyrite, chalcopyrite, covellite and galena
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Artisanal workings cover an area of 800m (NS) by 300m (NE), but widespread in all directions
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2017 2018 2019 2020
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Kobada Feasibility Study Update Kobada Construction Decision Kobada Construction (14-18 months) Kobada Commissioning Kobada Commercial Production Madougou Earn-in: 1st Option Madougou Earn-in: 2nd Option Madougou Earn-in: 3rd Option Madougou Earn-in: 4th Option
Brett A. Richards, President & CEO 800-65 Queen Street West Toronto, Ontario, M5H 2M5, Canada +1 905-449-1500 | info@africangoldgroup.com
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1. Pre-concentration 2. Gravity concentration 3. Grinding and leaching of concentrates 4. Recovery of gold from cyanide solution 5. Cyanide destruction of leached tailing
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Project Production Summary Income Statement
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Cash Flow
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Option 1
$50,000 in cash on signing of the Definitive Agreement for 6 months of exclusivity for due diligence and initial exploration on the Project. Additional $80,000 in cash at the end of the 6 months for a 10% earn-in of Temfor (Madougou) should AcquireCo decide to continue exploring the Project.
Option 2
$150,000 in cash after commencement of Phase 2 for an exclusive 12 months of exploration activity on the Project. Additional $150,000 at the end of the 12 months should AcquireCo decide to continue exploring the Project. Upon achievement of Inferred Resource, AcquireCo shall earn a 51% interest in Temfor (Madougou).
Option 3
$150,000 in cash after commencement of Phase 3 for an exclusive 12 months of exploration activity on the Project (Drilling of 1 target to Indicated category, advanced met test work, and PEA). Additional $150,000 in cash at the end
Resource, AcquireCo shall earn a 75% interest in Temfor (Madougou).
Option 4
$500,000 in cash to be paid upon achievement of a positive Feasibility Study to acquire a 100% interest in Temfor (Madougou). If AGG exercises the 4th Option and acquires a 100% interest in in the Madougou Project, AGG shall grant to TEMFOR a 1% net smelter returns royalty (NSR) over production from the Madougou Project for the life-of-mine.