Acacia Mining plc Exploration Roundtable 11.12.2015 Exploration - - PowerPoint PPT Presentation

Acacia Mining plc

Exploration Roundtable 11.12.2015

Exploration roundtable

Investment in exploration beginning to deliver results

Exploration Roundtable 11.12.2015 2

• Exploration historically focused on Tanzania

 Mature, well explored portfolio of projects

• Changed focus, in process of creating a pan-African exploration footprint
• Have build a total land package of almost 5,000 square kilometres across Kenya,

Burkina Faso and Mali

 Over the past twelve months alone, we have signed 4 exploration joint ventures that give us access

to over 2,550km 0f highly prospective geological belts in Africa

 Up front costs of ~US$1.6 million to provide potential ownership of between 70% - 90%

• Plan to maintain our annual exploration spend at around US$20 million

 US$8 million in Kenya  US$8 million in West Africa (US$7 million in Burkina Faso, US$1m in Mali)  US$4 million will be allocated through the year on either new projects, or success based follow up

• Beginning to see encouraging results in both Kenya and in Burkina Faso

What we look for in a project

• Favourable geological settings in the right

regions

 Belts that have delivered high quality, multi-million

• unce discoveries

 Emerging regions and belts

• Targeting resources >3Moz that will deliver

profitable mines producing >200koz/year for >10 years

 Open pit mines – focus on low strip ratio and higher

grades

 Underground – focus on ounces per vertical metre

• Discoveries that compliment and strengthen our

production portfolio

3

Quality, long life ore bodies that impact the bottom line

Exploration Roundtable 11.12.2015

Building a portfolio of projects

11.12.2015

Tintinba Project Mali

• 150sqkm along highly

prospective Senegal-Mali Shear Zone

• Initial drilling of targets

planned for Q2 2016 West Kenya JV Kenya

• 2,200 sqkm over Ndori

Greenstone belt

• Liranda Corridor showing

best results to date Houndé Belt JVs Burkina Faso

• 3 exploration joint ventures

covering 2,400sqkm of the Houndé Belt

• Positive drilling on South

Houndé JV project

• New gold trends identified

from initial soil sampling on new projects

Taking advantage of current market conditions to expand our footprint in the most prospective belts across Africa

Exploration Roundtable 4

North Mara Tanzania

• Drilling to test future U/G

potential below Stage 4

• pen pit

Bulyanhulu Tanzania

• U/G Reef 2 drilling

programme - target of 5Moz

Proterozoic-Archean volcano-sedimentary belts Brownfields projects Greenfields projects

Exploration

Greenfield Programmes Kenya

West Kenya joint ventures

11.12.2015

History and work to date

Exploration Roundtable 6

• Entry into the project achieved through acquisition of Aviva Mining Kenya Ltd in

November 2012

• Project is made up of two joint ventures

 AfriOre (Lonmin) with Acacia currently at 51% with potential to earn up to 75% equity interest  Advance Gold (Gold Rim) with Acacia having just achieved the right to 75% equity interest

• Exploration undertaken since November 2012:

 1,500sqkm of regional and prospect-scale mapping  37,000 soil samples (>30 gold anomalies identified & multiple geochemical corridors)  1,625 holes for 60,977 metres of scout Aircore drilling  161 reverse circulation and diamond core holes for 35,072 metres across at least 15 targets

• Have spent approximately US$18 million to date on the project
• Initially focusing on highest priority target – Liranda Corridor

West Kenya joint ventures

11.12.2015

Broad initial exploration programmes focused on identifying potential new deposits within 2,200sqkm land package

Exploration Roundtable 7

Liranda Corridor

Liranda Corridor - February 2015

8 10.12.2015 Discovery Group Board Presentation

Initial Aircore programme successful in delineating several narrow vein, high-grade zones within a structural corridor

Kundana - A potentially analogous corridor

11.12.2015 Exploration Roundtable 9

Strzelecki & K2 Shear Zone analogy - multiple shears/multiple shoots in Kundana, Australia

Liranda - A significant new gold corridor

11.12.2015

Multiple high grade intersections identified within 9km corridor with current focus on key 4-5km between Bushiangala and Shigokho shoots

Exploration Roundtable 10

Liranda – Testing depth potential of shoots

11.12.2015 Exploration Roundtable 11

• Composite long section: width of section approximately 400m north-south indicative of the position of intersections and of shoots from multiple vein structures along 6km corridor (east to west)

5m @ 17.3 g/t 5m @ 7.4g/t 10m @ 17.4 g/t Au 19.8m @ 9.26 g/t Au 3m @ 7.29 g/t Au LCD0053 3m @ 62.3 g/t Au from 31.5m 3m @ 10.8 g/t Au from 241m 5m @ 9.02 g/t Au from 271m 3m @ 3.36g/t Au from 301m

LCD0054 1.5m @ 18.6 g/t Au

LCD055 3.2 m @ 5.94 g/t Au LCD057 3.4m @ 31 g/t Au from 436m 4m @ 10.2 g/t Au from 453m 6m @ 5.4 g/t Au from 461m 6m @ 19.4g/t Au from 473m

LCD0059 LCD0060 LCD0058 H2 Planned DD Pierce Points Hole completed (results pending) Hole ongoing Hole planned Hole completed

500m Untested potential target zone

LCD0056 1.5m @ 3.78 g/t Au

Composite long section of corridor showing multiple high grade intercepts at vertical depths of up to 500m

5.8m @ 19.8 g/t Au

Cross sections of Bushiangala and Acacia

11.12.2015

Multiple high grade vein systems, which have the potential to occur “blind” or below weak near-surface anomalies

Exploration Roundtable 12

500m 500m

Bushiangala Shoot Acacia Shoot

Interpreted lode geometries

11.12.2015

Multiple high grade mineralised structures associated with significant sericite-carbonate+/-fuchsite-pyrite alteration and moderate shearing

Exploration Roundtable 13

Bushiangala Acacia

Liranda – 2016 planned programme

11.12.2015 Exploration Roundtable 14

500m

#59 #60 #58 H2 Planned DD Pierce Points Hole completed (results pending) Hole ongoing Hole planned Hole completed #62 #61 #63 #64

• Composite long section: width of section approximately 400m north-south indicative of the position of intersections and of shoots from multiple vein structures along 6km corridor (east to west)

Initial 40,000 metre drilling programme planned to infill key shoots to between 80-160m spacing

West Kenya joint venture projects

11.12.2015

Progress summary

Exploration Roundtable 15

• Extensive regional exploration following commencement of field programmes in 2013

have identified numerous targets and gold trends

 Aircore drilling and prospect scale mapping led to a number of prospects being prioritised for RC and

diamond core drilling during 2014 and 2015

 Significant gold mineralisation has been intersected at a number of prospects

• In the Liranda Corridor a number of prospective shoots were identified along a

structurally complex shear corridor with several very encouraging high grade intersections to 500m vertical depth

 2016 programmes focus on delineating if mineable mineralisation exists within several shoots along

the Liranda Corridor

 2016 planned spend of US$8 million

• Removed potential $10 million future liability for delineation of >3Moz resource for

nominal cost

• Key to advancing the project will be the evolution of the new Kenyan Mining Bill and

government policy around mining

Exploration

Greenfield Programmes West Africa

Burkina Faso – Houndé Belt

Houndé Belt emerging endowment through significant gold discoveries

11.12.2015 Exploration Roundtable 17

• Houndé Belt emerging as a significant gold belt

 Multiple types and styles of gold deposits with differing

host rocks and metallurgical characteristics

 Grades vary from deposit to deposit by with notable

high grade zones over significant strike and dip

• Recent discoveries include Siou (Semafo),

Bagassi – Zone 55 and 55 South (Roxgold) and Tankoro (Sarama – South Houndé JV partner).

 South Houndé historic resource of 1.5Moz at 1.6g/t at a

0.8g/t cut off grade

• Acacia has now acquired 3 projects under joint

venture for 2,400sqkm in southern Houndé Belt

• 2016 Budget – US$7 million

Houndé Belt – Regional joint venture progress

11.12.2015 Exploration Roundtable 18

Multiple structural domains with extensive surface gold anomalies currently being delineated

• 11,313 soil samples
• 284 line kilometres of IP
• 818 square kilometres of

magnetics

• Over 40,000 metres of

Aircore, RC and Diamond drilling on the South Houndé project

• Resulted in extension of

known gold trends and delineation of new multi- kilometre gold anomalies across all projects

On Acquisition Current Soil sampling coverage of licence areas

South Houndé JV

• Three pronged Joint Venture approach:

 Deeper drilling to further test strike, depth and plunge potential of existing resource  Aircore and reverse circulation to define and expand “oxide” resource base  New discovery programme – identifying potential new deposits beyond existing resource

• At end of first year of operations, we have:

 Completed full soil sampling coverage across the project  Commenced auger drilling in areas of complex regolith, additional ground geo-physics extending the

Tankoro corridor and across new geochemical targets

 Continued to see encouraging aircore, diamond and RC drilling around and beneath existing resource

• Focus in 2016 and beyond:

 Improve structural understanding of high grade mineralisation within existing resource  RC and diamond core drill testing of targets derived from structural modelling  Aircore and RC programmes to expand existing oxide resource and adequately test new regional multi-

kilometre scale gold anomalies throughout the project

11.12.2015 Exploration Roundtable 19

One year on

Tankoro - MM Zone long section

11.12.2015

Deeper drilling will test for higher-grade structurally controlled zones below current resource within potentially oblique domains

Exploration Roundtable 20

MM Zone – Evolving geological understanding

11.12.2015 Exploration Roundtable 21

Alteration and structural studies starting to unravel geological controls around the high grade mineralisation

19.1m @ 4.06g/t 15.5m @ 9.36g/t 10.2m @ 14.9g/t 14m @ 7.93g/t 15m @ 7.53g/t 17m @ 1.09g/t

Porphyry intrusion Sediment package Sediment package Alteration front

• MM and MC Zones at Tankoro are

the current focus of structural and alteration studies

• The objective of the studies is to

better understand the controls on high grade zones in order to expand the resource

• Preliminary findings suggest high

grade zones may be associated with oblique faults cross-cutting the porphyry intrusions

• On-going work will look at

targeting resultant plunging shoot geometries

South Houndé JV – Regional prospectivity

11.12.2015 Exploration Roundtable 22 Phantom Phantom East Werinkera West Werinkera Gbingué Tankoro Tyikoro Diassa/Guy/ Lorokama Ouangoro Bini Bini S Bini SE Phantom West MM Zone MC Zone Kenobi Obi Dlarakoro

Burkina Faso – Next steps

11.12.2015 Exploration Roundtable 23

• South Houndé JV – Sarama Resources (Acacia earning 70-75%)

 Resource update from Sarama expected during Q1 2016  RC and diamond core drilling to test for high grade structures under existing resources  At least 10 regional targets and trends to be tested with Aircore scout drilling

• Central Houndé JV – Thor Explorations (Acacia earning 80%)

 10km x 5 km gold anomaly already identified  Complete regional 800m x 100m and infill 400m x 100m soil sampling to delineate camp-scale

gold trends

 Undertake ground and airborne geophysical surveys to refine drill targets  Complete Aircore and RC drill testing (Q2 2016)

• Pinarello-Konkolikan JV – Canyon Resources (Acacia earning 75%)

 Several >5km gold in soil trends identified extending from South Houndé JV ground  Complete infill 400m x 100m soil sampling to fully delineate camp-scale gold trends  Undertake ground and airborne geophysical surveys to refine drill targets  Complete Aircore and RC drill testing (Q2 2016)

Mali – Tintinba Project

11.12.2015

Excellent ground position on Senegal-Mali Shear Zone (SMSZ) with regional scale gold anomalies

Exploration Roundtable 24

Senegal-Mali Shear Zone

• Known gold prospects, artisanal sites, and large regional gold anomalies along SMSZ
• 2016 programmes to include soil sampling, ground and airborne geophysics and drilling

Exploration

Brownfield programmes

Bulyanhulu – Reef 2 resource extensions

26

Extending the potential of a world class resource

• Focused on reserve conversion and resource expansion of

Reef 1 and the Reef 2 series

 Surface and Phase 1 underground drilling in 2013/14 added over

2.3Moz to resources

 Current focus of drilling on Reef 2 series west of shaft position

from underground

• Phase 2 drilling commenced in H2 2015, with the

16,000m programme due to continue into H1 2016

 To date have drilled 16 holes for 8,000m with a further 3-4 holes

planned for December

 Logging and assays complete for 13 holes

• Phase 3 programme expected to commence in late 2016
• Initial results are encouraging and have intersected

mineralisation across a number of the reefs that make up the Reef 2 series at mineable widths and grades

Exploration Roundtable 11.12.2015

Bulyanhulu – Location of 2015 Reef 2 drilling

27 Exploration Roundtable 11.12.2015

Long section showing location of drilling projected against Reef 2M,

• ne of a number of reefs that make up the Reef 2 series

Better results from phase 2 to date

28 Exploration Roundtable 11.12.2015

146.7 gram metres (2M) 19.8 gram metres (2M) 26.2 gram metres (2N) 26.6 gram metres (2I) 21.1 gram metres (2G)

Mafic /Pyroclastic Contact Argillite Structure

Reef 1 Development 3870 level 2M 2N 2I 2G

3875m Elev.

Whilst still early, intersected potentially mineable grades and widths across a number of the Reef 2 series

Oblique View of Reef 2 Series - Looking Northeast.

17.2 gram metres (2M) 13.7 gram metres (2I) 57.6 gram metres (2N) Approximate position of Reef 1 270m

29

Positive initial drilling, follow up programme deferred due to allocation of capital towards in mine exploration

Bulyanhulu - Near mine programme

• Positive results from

programme NW of Bulyanhulu resource targeting Reef 2 series style

• f mineralisation
• Better intersections

included:

 0.5m@31.0g/t Au  1.0m @ 10.2g/t Au  0.6m @ 10.95/Au

• Follow up programmes

deferred as focus on underground extensions of Reef 2 series adjacent to existing infrastructure

Exploration Roundtable 11.12.2015

1m@5.3g/t Au 1m@7.05g/t Au 0.5m@18.6g/t Au 0.3m@19.5g/t Au 0.62m@10.95g/t Au

2014 Drilling

0.5m@31.0g/t Au 0.65g/t@10g/t Au 1m@10.2g/t Au 2m@6.2g/t Au 0.5m@8.7g/t Au

2015 Drilling

North Mara

11.12.2015 Exploration Roundtable 30

• Gokona transitioned from an open pit to underground during the course of 2015

 Potential further depth extensions of underground

• Nyabirama currently mining ore from Cut 3, with Cut 4 being the final pit design

 Potential for underground operation post open pit mining being assessed

Gokona Nyabirama (Rama)

Combined open pit (Nyabirama) and underground (Gokona)

• peration

Improved understanding of ore body is expected to result in at least the replacement of depleted reserves prior to further exploration drilling

Gokona U/G – Reserve replacement

GREEN blocks – existing stopes RED blocks – new stopes

11.12.2015 Exploration Roundtable 31

Western Portal Eastern Portal

Gokona Underground – Future plans

32 Exploration Roundtable 11.12.2015

Reserve replacement has eased pressure on drilling to upgrade approximately 1Moz of resource beneath current reserves, deeper drilling will commence in 2017

300m 600m

Pink blocks – reserves Green blocks – resources

250 m Reserves 640 m Resources Western Portal to start in Q1 2016 Mining taking place via Eastern Portal

Nyabirama - Assessing U/G potential in 2016

11.12.2015 Exploration Roundtable 33

Mineralisation known to extend beyond final pit design, drilling programme in 2016 designed to test geological understanding

Deep holes planned drilling target outline. 8 holes planned, success dependant Splays Lodes Cut 4 Pit

• utline

Hanging Wall Lode Footwall Lodes Existing holes beneath Cut 4

300m 300m

HW Splays

Image looking South West From Eastern side-Mine Grid

Summary

Summary

Exploration Roundtable 11.12.2015 35

Enhancing our future through exploration, whilst focusing on

• perational delivery from our existing mines

We continue to be contrarian in our view on exploration and our approach is beginning to deliver results

• Exciting new drill intersections along the Liranda Corridor in Kenya

 Will continue to test and progress potential deposit through 2016

• Drilling shows potential to expand existing resource on South Houndé in

Burkina Faso

• Grassroots programmes in Burkina Faso already yielding large scale gold-geo-

chemical anomalies

 Following same back to basics process as undertaken in Kenya

• Continue to look to further expand our footprint across Africa

Appendix

VTEM Survey – Refining the geological interpretation

11.12.2015 Exploration Roundtable 37

Airborne EM survey to be extended across Liranda Corridor to help resolve structure and geology in magnetically quiet area under cover

Historical VTEM survey resolved geology and structure far more clearly than aeromagnetics

South Houndé JV – Tankoro trend

11.12.2015

Surface geochemistry and geophysics successful at identifying gold mineralisation within the Tankoro Corridor – further potential exists

Exploration Roundtable 38

Max gold in drilling plot