Avocet Mining Investor Presentation 2012 December 2011 April 2012 - - PowerPoint PPT Presentation

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Avocet Mining Investor Presentation 2012 December 2011 April 2012 - - PowerPoint PPT Presentation

Avocet Mining Investor Presentation 2012 December 2011 April 2012 Page 1 Page 1 DISCLAIMER This Presentation is for information purposes in connection with Avocet Mining PLCs (the Companys) preliminary results presentation only.


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December 2011

Avocet Mining

Investor Presentation 2012

April 2012

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DISCLAIMER

This Presentation is for information purposes in connection with Avocet Mining PLC’s (the “Company’s”) preliminary results presentation 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 or misstatements or for any loss, howsoever arising or out of or in connection with 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 necessary. Any reliance placed on the Presentation is strictly at the risk of such 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” or “continue”, the negative of such terms

  • r other comparable terminology. These 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. You are advised, however, to consult any further public disclosures made by us, such as filings made with the Alternative Investment Market,

Oslo Stock Exchange or press releases. This Presentation does not constitute an offer or invitation to sell, or any solicitation of any offer to subscribe for or purchase any securities and nothing contained 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 observe any such restrictions. Any failure to comply with these restrictions may constitute a violation of the laws of the relevant jurisdictions. United Kingdom: This Presentation has not been approved by an authorised person in accordance with Section 21 of the Financial Services and Markets Act 2000 and therefore it is being delivered for information purposes only to a very limited number of persons and companies who are persons who have professional experience in matters relating to investments and who fall within the category of person set out in Article 19 of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the "Order") or are high net worth companies within the meaning set out in Article 49 of the Order or are otherwise permitted to receive it. Any person who receives this Presentation who does not fall within the category of person set out in Article 19 and Article 49 of the Order should not rely or act upon it. By accepting this Presentation, the recipient represents and warrants that they are a person who falls within the above description of persons entitled to receive the Presentation.

AVOCET MINING INVESTOR PRESENTATION * APRIL 2012

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Page 3 AVOCET MINING INVESTOR PRESENTATION * APRIL 2012

INTRODUCTION

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2011 HIGHLIGHTS

Sale of South East Asian assets for US$199 million Premium Listing on LSE Main Market achieved in December 2011 Dividend policy introduced, currently yielding 3.9% Capacity and production at Inata Gold Mine ramped up to 167,000 oz. Strong safety performance – 6M man hours LTI free to December 2011 Mineral Resource and Reserve at Inata expanded to 3.46M oz. and 1.85M oz. respectively Mineral Resource at Koulékoun, Guinea tripled to 1.83M oz. EBITDA from continuing operations up 54% to US$84 million Restructured balance sheet, paid down US$49 million debt, year end cash of US$105 million

AVOCET MINING INVESTOR PRESENTATION * APRIL 2012

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2012 KEY OBJECTIVES

Commence expansion construction at Inata Gold Mine Implement cost saving initiatives at Inata Gold Mine Progress near term exploration targets in Bélahouro Improve confidence of Mineral Resource at Koulékoun Commence Feasibility Study on Koulékoun

AVOCET MINING INVESTOR PRESENTATION * APRIL 2012

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VALUATION METRICS

  • 1. At current share price, balance sheet figures as at 31 December 2011

AVOCET MINING INVESTOR PRESENTATION * APRIL 2012

12 month high:low of 286p:162p Cash balance US$105m and debt of US$29m at end of year 2011 P / NAV1 of 0.7x EV / EBITDA1 of 5.2 EV / Resource1 of US$70.4 EV / Reserve1 of US$238.1 Regular dividend of US$20m pa, current yield of 3.9%1

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Page 7 AVOCET MINING INVESTOR PRESENTATION * APRIL 2012

OPERATIONS

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AVOCET MINING OPERATIONS

Burkina Faso

  • Mineral Resource of 4.02M oz.
  • Mineral Reserve of 1.85M oz.
  • Operating gold mine at Inata
  • First gold poured Q4 2009
  • Produced 167,000 oz. in 2011
  • Forecast production of apx.

160,000 oz. in 2012 Guinea

  • Mineral Resource of 2.24M oz.
  • Extensive land package across

three key areas – Tri-K, Balandougou, Kankan

  • Feasibility study at Tri-K

expected in 2012

AVOCET MINING INVESTOR PRESENTATION * APRIL 2012

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BURKINA FASO

  • Rapidly expanding mining

sector

  • Only one gold mine in 2007
  • Six gold mines operational

by 2010

  • Gold production doubled

from 2009 – 2010, with

  • ver 700,000 oz. produced

in 2010

  • By 2010 gold was the main

source of export revenue

  • Over 30 listed gold

producers and explorers in country

  • Ranked 2nd most favourable

African mining code in 2010/2011 Fraser Institute’s Survey

  • Candidate country for EITI

AVOCET MINING INVESTOR PRESENTATION * APRIL 2012

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INATA GOLD MINE

  • First gold poured 2009
  • Open pit mining across three operational

pits

  • Ore body consists of Inata and Minfo

trends

  • Mining on Inata trend to date
  • Mining licence extends to 2027
  • Production of 167,000 oz. in 2011

(2010: 138,000)

  • Exceptional safety performance – 6M

injury free hours achieved by end 2011

  • Mineral Resource expanded to 3.46M oz.
  • Ore body open at depth and along strike
  • Mineral Reserve of 1.85M oz.
  • 1.7 g/t Au Mineral Reserve grade

AVOCET MINING INVESTOR PRESENTATION * APRIL 2012

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INATA GOLD MINE - 2012 AND BEYOND

  • Forecast production of 160,000 oz. at

US$800 – 850 for 2012

  • Mine licence covers 26km2, with

significant exploration potential included under licence

  • Further Mineral Resource and Mineral

Reserve development ongoing

  • Building out pipeline to support

sustainable resource development in future years

  • Large system developing in southern

corridor

  • Inata Far South
  • Parallel trends of Minfo and Minfo East
  • 2012 exploration budget of US$20m to

develop resources and replenish reserves

Minfo 21m @ 4.72 g/t Au from 5m Inata North Extension 39m @ 3.01 g/t Au from 93m Inata North 44.6m @ 3.73 g/t Au from 266.4m Inata Central 9m @ 10.3 g/t Au from 122m Inata South 8m @ 5.08 g/t Au from 61m Inata Far South 26m @ 7.35 g/t Au from 97m Minfo East 45m @ 3.26 g/t Au from 49m Filio Sayouba 4m @ 48.5 g/t Au from 173m

AVOCET MINING INVESTOR PRESENTATION * APRIL 2012

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Page 12 Image: VTEM survey overlain with existing drill hole data.

BÉLAHOURO - 2012 AND BEYOND

WESTERN DOMAIN CENTRAL DOMAIN EASTERN DOMAIN INATA

Dynamite

Miilam Gassel Garafo Fete Kole Pali Kourfadie Damba a Oka Gakinde

5km

Gomde Barrage

Priority drilling target N SOUMA TREND Ouzemi Filio AVOCET MINING INVESTOR PRESENTATION * APRIL 2012

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INATA GOLD MINE - 2012 AND BEYOND

  • Current plant capacity of 160,000 oz. pa at LOM grade
  • Mineral Reserve recently doubled to 1.85M oz. extends LOM to 12.5 years
  • Optimal LOM below 10 years
  • Scoping study initiated in H2 2011 to significantly increase production
  • Emphasis placed on maximising existing Mineral Reserve as well as

exploitation of new reserves within Bélahouro

  • Study considering ore sources from within mine licence area, as well as

mineralisation in exploration licence area

  • Souma
  • Damba, Pali, Ouzemi, Filio, Kourfadie
  • Findings to date indicate new stand alone processing plant is optimal
  • Anticipated capex of US$120 – 150M
  • To be confirmed in study
  • Scoping study to be concluded end Q2 2012, construction late 2012,

production late 2013

AVOCET MINING INVESTOR PRESENTATION * APRIL 2012

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INATA GOLD MINE - 2012 AND BEYOND

AVOCET MINING INVESTOR PRESENTATION * APRIL 2012

  • Cost increases in 2011 driven by fuel, reagents, explosives, labour and higher

royalties due to higher gold prices

  • Cost reduction and operating efficiency a core focus area in 2012
  • Preparing for expansion to 240koz
  • Cost reductions anticipated from:
  • Reduce cyanide usage through online controller/analyser - already commissioned
  • Reduce lime usage through automated dosing - commissioning mid-2012
  • Reduce power plant diesel usage through generator cooling and other

improvements – commissioning mid-2012

  • Reduce expat numbers supporting current production levels
  • Operating efficiency
  • Improved mobile fleet availability and utilisation
  • Improved coarse gold recovery through gravity circuit – commissioning Q1 2012
  • Optimisation of component lives and maintenance costs
  • From 2014, Inata expansion expected to reduce unit costs by US$50/oz.
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GUINEA

  • Untapped mineral potential
  • Two +5M oz. and three

~1M oz. Au deposits

  • Extensive under-explored

Birimian geology

  • Two strongly mineralised

belts extend from Mali

  • Three producing mines in
  • peration since 2007
  • Candidate country for EITI
  • New Mining Code gazetted

in January 2012

  • Further changes to the

Mining Code anticipated

AVOCET MINING INVESTOR PRESENTATION * APRIL 2012

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Kodiafaran Anomalous gold over NW-oriented linear conductors Kourounin 25m @ 1.34 g/t Au 8m @ 1.79 g/t Au Currently drilling Anomalous gold low conductivity (granite) margin along major magnetic linear Fowara 12m @ 6.28 g/t Au 20m @ 3.70 g/t Au Anomalous gold

  • ver low

conductivity (granite) body Koulékoun 1.83 M oz. alone Anomalous gold on margin of low-high conductor 2km Kodiéran 0.41 M oz. alone 60 m @ 2.01 g/t Au 20 m @ 6.43 g/t Au Currently drilling Anomalous gold low conductivity (granite) margin along major magnetic linear

  • Extensive land package across

twelve exploration licences

  • Located on the Birimian greenstone

belt

  • Most developed project is Tri-K,

consisting of:

  • Koulékoun
  • Kodieran
  • Kodiafaran
  • Mineral Resource of 2.24M oz.
  • Mineral Resource grade of 1.36 g/t

Au

TRI-K

AVOCET MINING INVESTOR PRESENTATION * APRIL 2012

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  • Within Tri-K, Koulékoun project most

advanced

  • Mineral Resource tripled to 1.83M oz.

(2010: 0.67M oz.)

  • Us$20 million exploration

commitment

  • Mineral Resource grade of 1.31 g/t

Au

  • Primary quartz-feldspar porphyry

structure with shallow cross cutting dolerite

  • Anticipated circular pit with low strip

ratio

  • Infill drilling ongoing to improve

Mineral Resource confidence

  • High level Government discussions

commenced in early 2012

  • Stability agreement sought

KOULÉKOUN - 2011

AVOCET MINING INVESTOR PRESENTATION * APRIL 2012

W E

Mineralised drill intercept Dolerite Porphyry Outline of gold mineralisation

Cross section Koulékoun deposit 3D model Koulékoun deposit

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KOULÉKOUN – 2012 AND BEYOND

  • Current resource of 1.8M oz. to be infill drilled

before construction commences Resource Resource

  • Regulatory framework clarified before commencement
  • Study to be completed by in 2013

Feasibility Feasibility

  • Targeting initial plant capacity similar to Inata – further

construction / development in phase II Plant Plant

  • Total capital outlay +US$250 million
  • Ground breaking in 2013, production start-up 2014

Capex Capex

  • Anticipated Mineral Reserve grade of 2 g/t Au
  • 90% recovery estimated

Grade Grade Costs Costs

Subject to Mining Code, viable opportunity to develop mine of similar scale to Inata

  • Like for like - slightly higher costs than Inata (power)
  • Lower strip ratio anticipated

AVOCET MINING INVESTOR PRESENTATION * APRIL 2012

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Page 19 AVOCET MINING INVESTOR PRESENTATION * APRIL 2012

WAY FORWARD

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PRODUCTION GROWTH

167,000 160,000 160,000 160,000 160,000 Start-up 80,000 80,000 Start-up 80,000 Start-up 250,000 + 100,000 200,000 300,000 400,000 500,000 600,000 2011 2012 2013 2014 2015 Annual production (oz.) Inata Inata expansion (phase 1) Inata expansion (phase 2) Koulekoun, Guinea

On track to exceed production of 500,000 oz by 2015

AVOCET MINING INVESTOR PRESENTATION * APRIL 2012

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AVOCET MINING

Established production base of ± 160,000 oz. pa at Inata

1

Expansion of Inata Mine to minimum of 240,000 oz.

2

Development of existing resource at Koulékoun to 250,000 oz. pa mine

3

Driven by strong management team with extensive local and global experience

4

Achieved with strong balance sheet and cash generative earnings

5

AVOCET MINING INVESTOR PRESENTATION * APRIL 2012

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Avocet Mining – a leading West African gold mining and exploration company

AVOCET MINING INVESTOR PRESENTATION * APRIL 2012

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  • 1996
  • Listed on LSE with a market capitalisation of £72m
  • Gold deposits in Peru
  • Operating gold mine in Penjom, Malaysia
  • Tungsten interests in Portugal, Peru and California
  • 1999
  • Divested tungsten operations to focus on gold
  • 2002
  • Moved to AIM, with a market capitalisation of £12m
  • Acquired 80% in North Lanut, Indonesia
  • Acquired 49% interest and management control in gold mining company

ZGC in Tajikistan

  • 2007
  • Disposed of Tajikistan gold operations ZGC
  • 2008
  • Acquisition of the Seruyung gold exploration project in Kalimantan, Indonesia
  • 2009
  • Acquired Wega Mining and the Inata gold project, Burkina Faso
  • Poured first gold at Inata Mine
  • 2010
  • Disposed of the Houndé licences in Burkina Faso to Avion
  • Listed on the Oslo Axess list of the OSE
  • Agreed disposal of all South East Asian assets
  • 2011
  • Listed on Main Market of LSE
  • Market capitalisation of £434m
  • Joined FTSE 250 index in March 2012

AVOCET MINING HISTORY

AVOCET MINING INVESTOR PRESENTATION * APRIL 2012

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AVOCET MINING LEADERSHIP

Russell Edey

Chairman

  • Ex AngloGold -

Ashanti Chairman

  • Ex Anglo American
  • Rothschild

Advisory

Brett Richards

CEO

  • Extensive African

experience

  • Ex Katanga Mining
  • Ex Kinross Gold
  • Mechanical

Engineer, MBA Cornell

Mike Norris

FD

  • Ex Rio Tinto
  • Ex Anglo American
  • CA by profession

Richard Gray

VP – Operations

  • Extensive West

African experience

  • Ex Golden Star

Resources

  • Mining Engineer,

Royal School of Mines

Pete Flindell

VP - Exploration

  • Over 25 years

experience as field geologist

  • Ex Newmont

Mining

  • Discovered and

developed two gold mines in Indonesia

AVOCET MINING INVESTOR PRESENTATION * APRIL 2012

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2011 CASH COSTS

  • Fuel price - US$1.13/litre versus US$0.82/litre in 2010
  • Includes 18% previously recoverable VAT from change in Government policy
  • Impact over US$60/oz. on mining fleet and mill power plant; indirect impact on freight costs
  • Realised gold price - US$1,301/oz. versus US$1,141/oz. in 2010
  • Impact of US$31/oz. on royalty
  • Explosives and reagent prices increased mining and plant costs by US$50/oz.
  • Total mining costs driven by increase in tonnes mined during the year, allowing

increased gold produced despite lower grades

  • Input price inflation mitigated by ramp up and plant capacity expansion, tonnes up by

55%, reducing cost by US$195/oz.

531.1 692.9 195 20 72 5 125 96 48 31 200 400 600 800 2010 Actual Tonnes treated Grade Recovery GIC change Mining costs Mill costs Admin Royalty 2011 Actual AVOCET MINING INVESTOR PRESENTATION * APRIL 2012

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  • Total costs driven by increase in tonnes mined during the year, allowing increased

gold produced despite lower grades

  • Fluctuation in cost per tonne caused by maintenance

AVOCET MINING INVESTOR PRESENTATION * APRIL 2012

US$6.5m US$7.9m US$8.5m US$13.3m

  • 2.0

4.0 6.0 8.0 10.0 12.0 14.0 Q1 Q2 Q3 Q4 Total mining costs in US$m Other Labour Explosives Maintenance Fuel

US$1.23 US$1.78 US$1.25 US$1.53

  • 0.20

0.40 0.60 0.80 1.00 1.20 1.40 1.60 1.80 Q1 Q2 Q3 Q4 Cost per tonne mined US$

2011 MINING CASH COSTS

5.3mt 4.4mt 6.8mt Tonnes mined: 8.7mt

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  • Cost per tonne stable except for irrecoverable VAT on fuel in Q3 and Q4
  • Higher maintenance in Q4 reflects annual SAG mill liner change.

AVOCET MINING INVESTOR PRESENTATION * APRIL 2012

US$9.8m US$9.4m US$10.0m

  • 1.0

2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 11.0 Q1 Q2 Q3 Q4 Total processing costs in US$m Other Labour Reagents Maintenance Fuel

US$15.27 US$16.01 US$17.13 US$17.42

  • 2.00

4.00 6.00 8.00 10.00 12.00 14.00 16.00 18.00 Q1 Q2 Q3 Q4 Cost per tonne processed US$

2011 PROCESSING CASH COSTS

645kt 586kt 585kt Tonnes processed: 654kt

US$11.4m

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MINERAL RESOURCES AND RESERVES: INATA

Gross Net attributable (90%) Tonnes (Mt) Grade (g/t) Contained

  • unces

Tonnes (Mt) Grade (g/t) Contained

  • unces

Mineral Reserves Proven 16,091,000 1.72 888,000 14,482,000 1.72 799,000 Probable 17,234,000 1.70 940,000 15,510,000 1.70 846,000 ROM Stockpiles 497,000 1.25 20,000 447,000 1.25 18,000 Reserves total 33,822,000 1.70 1,848,000 30,440,000 1.70 1,663,000 Mineral Resources Measured 17,881,000 1.68 963,800 16,093,000 1.68 867,400 Indicated 39,446,000 1.35 1,712,000 35,501,000 1.35 1,541,000 Measured + Indicated 57,327,000 1.45 2,676,000 51,594,000 1.45 2,409,000 Inferred 17,846,000 1.36 779,000 16,061,000 1.36 701,000 Resources total 75,173,000 1.43 3,455,000 67,655,000 1.43 3,110,000

Mineral Reserves and Mineral Resources as at 31 December 2011

1. Mineral Resources are inclusive of Mineral Reserves and reported above 0.5g/t Au cut off and below the 31 December 2011 topographic surface. The Mineral Resources were estimated by Mr David Williams (MAusIMM, MAIG) and Mr Sam Beckett (MAIG), both of whom are consultants employed by CSA Global Pty Ltd. Both Mr Williams and Mr Beckett have the experience relevant to the style of mineralisation and type of deposit under consideration to qualify as a Competent Persons as defined by the Australasian JORC Code (2004) for the reporting of Exploration Results, Mineral Resources and Ore Reserves and as Qualified Persons as defined by the Canadian National Instrument 43-101 for the reporting of Exploration Results, Mineral Resources and Mineral Reserves (NI 43-101). Mr Williams and Mr Beckett have consented to the inclusion of the technical information in this report in the form and context in which it occurs. 2. The Mineral Reserves were estimated by Mr Clayton Reeves (MSAIIM), Principal Mining Consultant, CSA Global (UK). Mr Reeves is a Competent Person as defined by the JORC Code and a Qualified Person as defined by NI-43-101. Mr Reeves has consented to the inclusion of the technical information in this report in the form and context in which it occurs. 3. Avocet owns 90% of Société des Mines de Bélahouro SA, owner of the Inata Gold Mine. 4. Rounding errors may occur.

AVOCET MINING INVESTOR PRESENTATION * APRIL 2012

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MINERAL RESOURCES AND RESERVES: SOUMA

Gross Net attributable (100%) Tonnes (Mt) Grade (g/t) Contained

  • unces

Tonnes (Mt) Grade (g/t) Contained

  • unces

Mineral Reserves Proven ‐ ‐ ‐ ‐ ‐ ‐ Probable ‐ ‐ ‐ ‐ ‐ ‐ ROM Stockpiles ‐ ‐ ‐ ‐ ‐ ‐ Reserves total

  • Mineral Resources

Measured ‐ ‐ ‐ ‐ ‐ ‐ Indicated 324,000 1.44 15,000 324,000 1.44 15,000 Measured + Indicated 324,000 1.44 15,000 324,000 1.44 15,000 Inferred 10,376,000 1.64 545,600 10,376,000 1.64 545,600 Resources total 10,700,000 1.63 561,000 10,700,000 1.63 561,000

Mineral resource estimate as at 31 October 2010

1. Mineral Resources are reported above 0.5g/t Au cut off. The Mineral Resources were estimated by Mr David Williams (MAusIMM, MAIG), a consultant employed by CSA Global Pty Ltd. Mr Williams has the experience relevant to the style of mineralisation and type of deposit under consideration to qualify as a Competent Person as defined by the Australasian JORC Code (2004) for the reporting of Exploration Results, Mineral Resources and Ore Reserves and as a Qualified Person as defined by the Canadian National Instrument 43-101 for the reporting of Exploration Results, Mineral Resources and Mineral Reserves (NI 43-101). Mr Williams consents to the inclusion of the technical information in this report in the form and context in which it occurs. 2. Avocet owns 100% of the Souma property through its wholly-owned subsidiary, Goldbelt Resources (West Africa) SARL. 3. Rounding errors may occur.

AVOCET MINING INVESTOR PRESENTATION * APRIL 2012

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MINERAL RESOURCES AND RESERVES: TRI-K

Gross Net attributable (100%) Tonnes (Mt) Grade (g/t) Contained

  • unces

Tonnes (Mt) Grade (g/t) Contained

  • unces

Mineral Reserves Proven ‐ ‐ ‐ ‐ ‐ ‐ Probable ‐ ‐ ‐ ‐ ‐ ‐ ROM Stockpiles ‐ ‐ ‐ ‐ ‐ ‐ Reserves total

  • Mineral Resources

Koulékoun Measured ‐ ‐ ‐ ‐ ‐ ‐ Indicated 21,610,000 1.44 1,001,000 21,610,000 1.44 1,001,000 Measured + Indicated 21,610,000 1.44 1,001,000 21,610,000 1.44 1,001,000 Inferred 22,600,000 1.15 832,000 22,600,000 1.15 832,000 Kodiéran Inferred 7,260,000 1.76 411,000 7,260,000 1.76 411,000 Resources total 51,470,000 1.36 2,244,000 51,470,000 1.36 2,244,000

Mineral Resources as at 20 December 2011

1. TMineral Resources are reported above 0.5g/t Au cut off. The Company owns 100% of Wega Mining Guinée SA, owner of the Koulékoun gold project. The Mineral Resources were estimated by Mr David Williams (MAusIMM, MAIG), a consultant employed by CSA Global Pty Ltd. Mr Williams has the experience relevant to the style of mineralisation and type of deposit under consideration to qualify as a Competent Person as defined by the Australasian JORC Code (2004) for the reporting of Exploration Results, Mineral Resources and Ore Reserves and as a Qualified Person as defined by the Canadian National Instrument 43-101 for the reporting of Exploration Results, Mineral Resources and Mineral Reserves (NI 43-101). Mr Williams consents to the inclusion of the technical information in this report in the form and context in which it occurs. 2. Note: rounding errors may occur.

AVOCET MINING INVESTOR PRESENTATION * APRIL 2012