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December 2011
Avocet Mining
Investor Presentation 2012
April 2012
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
April 2012
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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
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
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.
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Burkina Faso
160,000 oz. in 2012 Guinea
three key areas – Tri-K, Balandougou, Kankan
expected in 2012
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by 2010
from 2009 – 2010, with
in 2010
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sustainable resource development in future years
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
Page 12 Image: VTEM survey overlain with existing drill hole data.
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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mineralisation in exploration licence area
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AVOCET MINING INVESTOR PRESENTATION * APRIL 2012
improvements – commissioning mid-2012
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~1M oz. Au deposits
Birimian geology
belts extend from Mali
Mining Code anticipated
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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
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
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commitment
Au
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Mineralised drill intercept Dolerite Porphyry Outline of gold mineralisation
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before construction commences Resource Resource
Feasibility Feasibility
construction / development in phase II Plant Plant
Capex Capex
Grade Grade Costs Costs
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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
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Established production base of ± 160,000 oz. pa at Inata
Expansion of Inata Mine to minimum of 240,000 oz.
Development of existing resource at Koulékoun to 250,000 oz. pa mine
Driven by strong management team with extensive local and global experience
Achieved with strong balance sheet and cash generative earnings
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ZGC in Tajikistan
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Russell Edey
Chairman
Ashanti Chairman
Advisory
Brett Richards
CEO
experience
Engineer, MBA Cornell
Mike Norris
FD
Richard Gray
VP – Operations
African experience
Resources
Royal School of Mines
Pete Flindell
VP - Exploration
experience as field geologist
Mining
developed two gold mines in Indonesia
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increased gold produced despite lower grades
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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AVOCET MINING INVESTOR PRESENTATION * APRIL 2012
US$6.5m US$7.9m US$8.5m US$13.3m
4.0 6.0 8.0 10.0 12.0 14.0 Q1 Q2 Q3 Q4 Total mining costs in US$m Other Labour Explosives Maintenance Fuel
US$1.23 US$1.78 US$1.25 US$1.53
0.40 0.60 0.80 1.00 1.20 1.40 1.60 1.80 Q1 Q2 Q3 Q4 Cost per tonne mined US$
5.3mt 4.4mt 6.8mt Tonnes mined: 8.7mt
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AVOCET MINING INVESTOR PRESENTATION * APRIL 2012
US$9.8m US$9.4m US$10.0m
2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 11.0 Q1 Q2 Q3 Q4 Total processing costs in US$m Other Labour Reagents Maintenance Fuel
US$15.27 US$16.01 US$17.13 US$17.42
4.00 6.00 8.00 10.00 12.00 14.00 16.00 18.00 Q1 Q2 Q3 Q4 Cost per tonne processed US$
645kt 586kt 585kt Tonnes processed: 654kt
US$11.4m
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Gross Net attributable (90%) Tonnes (Mt) Grade (g/t) Contained
Tonnes (Mt) Grade (g/t) Contained
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.
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Gross Net attributable (100%) Tonnes (Mt) Grade (g/t) Contained
Tonnes (Mt) Grade (g/t) Contained
Mineral Reserves Proven ‐ ‐ ‐ ‐ ‐ ‐ Probable ‐ ‐ ‐ ‐ ‐ ‐ ROM Stockpiles ‐ ‐ ‐ ‐ ‐ ‐ Reserves total
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.
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Gross Net attributable (100%) Tonnes (Mt) Grade (g/t) Contained
Tonnes (Mt) Grade (g/t) Contained
Mineral Reserves Proven ‐ ‐ ‐ ‐ ‐ ‐ Probable ‐ ‐ ‐ ‐ ‐ ‐ ROM Stockpiles ‐ ‐ ‐ ‐ ‐ ‐ Reserves total
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