Manica Gold Project Mozambique March 2017 Xtract Resources PLC An - - PowerPoint PPT Presentation

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Manica Gold Project Mozambique March 2017 Xtract Resources PLC An - - PowerPoint PPT Presentation

Manica Gold Project Mozambique March 2017 Xtract Resources PLC An Important Disclosure The information contained in this document, including any information and opinions contained or discussed in any accompanying oral presentation, question and


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Manica Gold Project Mozambique

March 2017

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SLIDE 2

The information contained in this document, including any information and opinions contained or discussed in any accompanying oral presentation, question and answer session and any other materials distributed in connection with this document (the ‘Presentation’) has been prepared The Document and the Information have been prepared by or on behalf of, and is the sole responsibility of, the Company. This Presentation and its contents are private and confidential. It is intended solely for the exclusive use of the person or persons to whom it is addressed and must not be copied, reproduced or distributed in whole or in part or disclosed by recipients to any other person, nor may the contents be distributed in written or oral form to any other person, for any purpose without the prior written consent of the Company. This Presentation does not constitute, or form part of, an admission document, listing particulars, a prospectus, a circular or any other documents relating to the Company, nor does it constitute, or form part of any offer or invitation to sell, issue, underwrite or acquire, or any solicitation of any offer to purchase or subscribe for, any shares

  • r other securities in the Company, nor shall it or any part of it, or the fact of its distribution, form the basis of, or be relied upon in connection with, or act as any

inducement to enter into, any contract. No reliance may be placed for any purposes whatsoever on the information contained in the Presentation or any assumptions made to it as to its completeness or fairness. No representation, warranty or undertaking (whether express or implied) is made to the fairness, accuracy or completeness of the information or opinions in the Presentation by or on behalf of the Company and (to the fullest extent permitted by law), no liability or responsibility is accepted by the Company persons for (i) the accuracy, fairness or responsibility of any such information or opinion; and (ii) the use of the Presentation by recipients. The information contained in the Presentation is for background purposes only and is subject to amendment, revision and updating without notice. The Company (including, without limitation, its officers, directors, employees, partners, agents, representatives, members, affiliates and advisors) nor any other party is under any duty to update or inform you of any change to such information. This Presentation contains forward looking statements. These statements relate to the future prospects, developments and business strategies of the Company. Forward- looking statements are identified by the use of such terms as 'believe', 'could' 'envisage', 'estimate', potential', 'intend', 'may', 'plan', 'will' or the negative of those, variations

  • r comparable expressions, including references to assumptions. The forward-looking statements contained in the Presentation are based on current expectations and are

subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied by those statements. If one or more of these risks or uncertainties materialises, or if underlying assumptions prove incorrect, the Company's actual results may vary materially from those expected, estimated or projected. Given these risks and uncertainties, potential investors should not place reliance on forward-looking statements. The forward-looking statements speak only as at the date

  • f the Presentation.

You should be aware that any investment in the equity of the Company is subject to a number of risks, particularly as the Company is in an early stage of development and

  • perates in an emerging market, and this could therefore effect the value of any investment in the equity of the Company and may lead to a loss of your entire investment.

Xtract Resources PLC

An Important Disclosure 1

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SLIDE 3

Aerial view of Maputo

  • Stable African Economy
  • Upgrading of infrastructure underway
  • Mature mining legislation, industry and

culture

  • GDP >5% - high growth rate
  • Purchase from Auroch concluded
  • Definitive Feasibility Study Completed
  • Economically viable project
  • Low cost and lead time to production
  • Low operation cost
  • Metallurgical issues resolved
  • Immense future exploration potential

Manica Gold Project - Mozambique

Why? 2

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SLIDE 4
  • Favourable political and legal environment
  • Multi-Party Democracy since 1994
  • Stable Southern African jurisdiction
  • Mature mining legislative regime
  • No local ownership requirements
  • Upgrading of National Ports and Power

and other infrastructure underway

  • High GDP (>5%) growth rate

Location of Manica Project

Mozambique

Good Place To Work 3

Manica Mineral Concession – 3990C

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SLIDE 5
  • Situated in the Odzi-Mutare-Manica Greenstone Belt. Over 2 million oz of gold

previously mined

  • 43,6 km² concession
  • 1,262 m oz SAMREC compliant gold resources
  • Only 10% of concession drill tested
  • Definitive Feasibility Study of open pit mine completed

Manica Gold Project

Established Area 4

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SLIDE 6
  • Extraction Method – Conventional Open Pit
  • Life of Mine – 7 years
  • Total Ore Tonnes Processed – 3.3Mt (42 ktmp)
  • Total Ounces Produced – 215 koz (~31 kozpm)
  • Recovered Grade – 2.62 g/t
  • Gold Price – US$1,262 per oz Project Payback – 2 years
  • IRR – 41.1%
  • NPV – US$42 million (@8.4% discount rate)
  • Capex Expenditure – US$43.68 million
  • Direct Cash Cost – US$556/oz
  • All inclusive sustainable cost (breakeven) – US$862/oz

Manica Gold Project

DFS – Key Financial Parameters 5

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SLIDE 7
  • 1.262 moz SAMREC compliant Au Resources (782koz measured and indicated)
  • Low cost, near-term ready-to-build production
  • Metallurgical risk solved by fine grinding and pressure oxidation
  • Additional nearby prospects for further exploration success, namely
  • Guy Fawkes, Boa Esperanza, Dot’s Luck, all have declared resources.
  • Publically released information outlines a mine plan based on Fair Bride only,

producing approx. 215Koz over 7 years

  • Further optimisation is possible and ongoing

Manica Gold Project

The Focus 6

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SLIDE 8

* Xtract Resources PLC. An Independent Technical Report on the Mineral Resources of the Fair Bride Gold Deposit on the 3990C Mining Concession, Manica Province, Mozambique, Minxcon, 04 March 2016

Main deposit – Fair Bride

  • Situated in the Odzi-Mutare-Manica Greenstone Belt of Mozambique
  • 1.262moz SAMREC compliant Au Resources (782koz measured and indicated)
  • Well drilled - a total of 229 drill holes (31,662m) has been completed on the Fair Bride deposit

accounting for 60% of the total drilling on the Manica project. A total of 137 holes comprise the resource

Fair Bride

Overview 7

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SLIDE 9

Lower Risk – Lower Cost – Quick into production

  • Elimination of underground technical mining risk and gold locked up in the crown pillar
  • Instead of 4 years open pit and 8 years underground mining; expectation is 7 years of
  • pen pit mining with a 7.2 strip ratio milling 42ktpm
  • Increases the time and opportunity to fully identify upside
  • Open pit grade is expected to be 2.62g/t, recovering app 31koz per annum at an

all-in cost of $862/oz

  • Smaller tailings dam

Lower risk, higher margins whilst maintaining optionality

Fair Bride

Simple Project 8

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  • Three types of ore: Oxide; Transitional; and Sulphide
  • Several test campaigns completed by SGS, Maelgwyn,
  • Oxide Zone:
  • standard CIL will result in final recoveries achievable of 95%
  • Sulphide Zone:
  • Floatation followed by ultra-fine grinding (-14µm) and oxidation of the float

concentrates will results in a final circuit recovery of 77.1%

  • Transitional Zone (mixture of Oxide and Sulphide ore):
  • will require a combination of the above process as it contains both oxide and

sulphide ores, with the addition of a suphurdiser resulting in recoveries of 79.2%

  • Processing Strategy:- the oxides are mined at the start moving into the transitional and

sulphide ores thereafter, to keep different ores separate as far as possible

Fair Bride

Solving Metal Recovery 9

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SLIDE 11

Fair Bride

Process Flow Design 10

Manica Plant Processing Flow Schematic

Transitional & Sulphides

Jaw Crusher Milling & Classification RoM Float TSF UFG Mill Feed Stockpile RoM Pad

UFG Thickener Float Tail Thickener Tails Thickener

Oxides

Vibrating Screen

u/s

Secondary Cone Crushers

  • /s

Tertiary Cone Crusher

middlings

Grizzly

  • /s

u/s Loaded Carbon

Carbon Regeneration

Regenerated Carbon

CIL Acid Wash & Elution

Loaded Eluant

Electrowinning & Smelting

Barren Eluant

Gold Doré

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  • Gold price USD 1262/oz
  • 480,000 of ore tonnes per annum mined
  • 7 years of mine life
  • Average grade 2.72 g/t mined
  • Stripping Ratio 7.2:1
  • All up break even cost(C3) USD862/oz
  • Capital USD43.68 million
  • NPV at 8.5% discount USD42 million

Fair Bride

Base Case 11

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SLIDE 13

Fair Bride

Optimised Pit Views

  • Before Geological Overview
  • After Initial Mine Key Parameters

DFS Optimised DFS Design

12

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  • The mineralised strike of the ore body is

approximately 1,040m

  • Well understood mineralization and geological

model shows excellent continuity

  • Bounded by a fault in the west and low grade

mineralization in the east, open on dip

  • Mainly pre-drilling exploration has taken place

along the southern share zone between Dot’s Luck and Fair Bride and further East (14km of potential gold bearing strike)

  • Targeting indicates that mineralization extends

along strike to the east

Fair Bride

Insight 13

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SLIDE 15

Manica Project area- 5km from town in next river valley Project area extending west – approximately 85% of tenement remains unexplored Good gravel road Area of mining is relatively unhindered Processing Facility Site Mining and Engineering workshop and office

Fair Bride

Before optimised pit view 14 This is how it looks

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SLIDE 16

Drilling has targeted the below resources: Dots Luck (750m strike, 100m depth)

  • 43 drill holes for 5000m, of which 38 holes

comprise the resource

  • Bounded by faults on the west and east, but
  • pen on dip (off-set of the Northern shear

zone) Guy Fawkes (1350m strike, 120m depth)

  • 98 drill holes for 14000m, of which 54

holes comprise the resource

  • Bounded by a fault in the west open to the

east and on dip Boa Esperanza (100m Strike)

  • 12 drill holes for 1000m, of which 4 holes

comprise the resource

  • Limited extensional exploration on strike has

taken place

Manica Potential

Other Projects 15

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SLIDE 17

Regional Exploration Potential (within current concession)

  • Only 10% of the 4,300 ha has been drilled
  • Mainly pre-drilling targeting has taken place along the southern and northern share zone between

Dot’s Luck and Fair Bride and further East (14km) and between Guy Fawkes and Boa Esperanza (10km) respectively

  • In 2014 Auroch identified 36 new exploration targets through geophysical and surface mapping
  • Top Ten classified in the following three styles of mineralisation:
  • Guy Fawkes (7) - includes quartz vein hosted-, quartz stock-works hosted-, altered talc

carbonate schist hosted- and deformed banded iron formation (BIF) hosted- deposits, with or without aplite, in proximity to major shear zones;

  • Boa Esperança (2) - comprises deformed metapelites with aplite invasion in proximity

to major shear zones. The Boa Esperança style of mineralisation is somewhat wider than the Guy Fawkes style in general; or

  • Dot’s Luck/Fair Bride (1) - includes sheared metasediments within mafic schist in

proximity to major shear zones.

Manica

Exploration Potential 16

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Regional Exploration Potential

Manica

Exploration Potential 17

Top Ten

Manica Gold Project Exploration Target**

Tonnes (Kt) Au (g/t) Contained Au (oz) 250 – 1,500 2.0 – 4.0 360,000 – 1,795,000

**The potential quantity and grade of the Exploration Target is conceptual in nature, and there has so far been insufficient exploration to estimate a Mineral Resource

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Compelling Investment Case

Global Gold Developing Mines Relative Strengths 18

  • Simple open pit – low initial cost and lead time
  • Alluvial Mining Income Generation whilst mine construction in progress
  • Good mining jurisdiction
  • Major exploration potential and Fair Bride depth continuity
  • At end of first operation, paid for plant available for new ore feed
  • Close to South Africa, good source of contractors for outsourcing open-pit

and process plant

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SLIDE 20

Thank you

4th Floor, 2 Cromwell Place, South Kensington London, United Kingdom, SW7 2JE T: +44 (0) 20 3416 6471 F: +44 (0) 20 7589 7806 E: info@xtractresources.com www.xtractresources.com