THE BALLARAT Corporate Presentation GOLD MINE September 2019 - - PowerPoint PPT Presentation

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THE BALLARAT Corporate Presentation GOLD MINE September 2019 - - PowerPoint PPT Presentation

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CASTLEMAINE GOLDFIELDS PTY L TD THE BALLARAT Corporate Presentation GOLD MINE September 2019 LionGold Corp Ltd | www.liongoldcorp.com Disclaimer & Disclosure The presentation (in this projected form and as presented)

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THE BALLARAT GOLD MINE

CASTLEMAINE GOLDFIELDS PTY L TD

Corporate Presentation September 2019

LionGold Corp Ltd | www.liongoldcorp.com

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SLIDE 2 The presentation (in this projected form and as presented) (“Presentation”) has been prepared by Castlemaine Goldfields Pty Ltd (the “Company”) and is provided on the basis that none of the Company nor its respective officers, shareholders, related bodies corporate, partners, affiliates, employees, representatives and advisers make any representation or warranty (express or implied) as to the accuracy, reliability, relevance or completeness of the material contained in the Presentation and nothing contained in the Presentation is, or may be relied upon as a promise, representation or warranty, whether as to the past or the future. The Company hereby excludes all warranties that can be excluded by law. The Presentation contains prospective financial material which is predictive in nature and may be affected by inaccurate assumptions or by known or unknown risks and uncertainties and may differ materially from results ultimately achieved. The Presentation contains ”forward-looking statements” regarding future events, conditions, circumstances and the future performance of the Company, including for operating costs and capital expenditures, production volumes, project capacity, project expansion and schedule for expected production. All statements other than those of historical facts included in the Presentation are forward- looking statements. Where the Company expresses or implies an expectation or belief as to future events or results, such expectation or belief is expressed in good faith and believed to have a reasonable
  • basis. However, forward-looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed, projected or implied by
such forward-looking statements. Such risks include, but are not limited to, gold and other metals price volatility, currency fluctuations, increased production costs and variances in ore grade or recovery rates from those assumed in mining plans, as well as political and operational risks and governmental regulation and judicial outcomes. The Company does not undertake any obligation to release publicly any revisions to any “forward-looking statement”. The Presentation contains general background information about the Company and its activities current as at the date of this presentation. The information in this Presentation is in summary form only and does not contain all the information necessary to fully evaluate any transaction or investment. It should be read in conjunction with the Company’s other periodic and continuous disclosure announcements lodged with the SGX, which are available at www.liongoldcorp.com and other publicly available information on the Company available through LionGold Corp. The Presentation contains information about LionGold Corp, extracted from information contained on their website at www.liongoldcorp.com. That information has not been independently verified by the
  • Company. Accordingly, the Company does not make any representation or warranty as to the accuracy or completeness of such information.
This Presentation is not a prospectus, disclosure document or other offering document. It is for information purposes only and does not constitute an offer to sell or a solicitation of an offer to buy or sell any security of the Company in any jurisdiction, and does not form the basis of any contract or commitment. All persons should consider seeking appropriate professional advice in reviewing the Presentation and the Company. The information in this document which relates to Mineral Resources is based on information reviewed by Mr Matthew Hernan. Mr Hernan is an employee of Castlemaine Goldfields Pty Ltd. He is a Member of The AusIMM and is a Competent Person as defined in the 2012 edition of the ‘Australasian Code for Reporting of Exploration Results Mineral Resources and Ore Reserves (the JORC Code)’. Mr Hernan consents to the publication of this information in the form and context in which it appears. The information in this document which relates to Exploration is based on information reviewed by Mr Bill Reid. Mr Reid is an employee of Castlemaine Goldfields Pty Ltd. He is a Member of The AusIMM and is a Competent Person as defined in the 2012 edition of the ‘Australasian Code for Reporting of Exploration Results Mineral Resources and Ore Reserves (the JORC Code)’. Mr Reid consents to the publication of this information in the form and context in which it appears. The project planning, mining schedule and any resources referred to in this presentation, other than those explicitly identified as Mineral Resources in accordance with the JORC Code, are not based on estimations of Ore Reserves or Mineral Resources made in accordance with the JORC Code for the Ballarat East goldfield and caution should be exercised in any external technical or economic evaluation.

1

Disclaimer & Disclosure

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3

ABOUT US

Castlemaine Goldfields Pty Ltd (CGT) is 100%

  • wned by LionGold Corporation.

CGT is a gold-focused mining and exploration company operating in the world-class Victorian goldfields, Australia. Our premier asset is the Ballarat Gold Mine where we mine high-grade gold underneath the regional city of Ballarat.

Castlemaine Goldfields Pty Ltd

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Location & Tenements

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The Ballarat Gold Mine

Underground gold mine beneath the City of Ballarat World-class historic goldfield >13Moz gold Modern infrastructure in Australia Stable jurisdiction Significant potential for expansion BALLARAT GOLD MINE Location: Ballarat, Victoria Area: 147 km2 Acquisition: 2011 Status: Production

CGT’s premier asset

Mine Site Underground workings Ballarat City Centre

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6

The Ballarat Gold Mine

Operating beneath a world-class, historic goldfield

Modern Mine Historic Mine

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September 2019 7

296,000 ounces of gold production since CGT commenced operations in 2011.

Snapshot of Mine

Average gold grade at Ballarat is 5.66 g/t Au, three times the global average. Annual gold production approximately 40,000oz. Current resources of 130,000oz gold at 10.5 g/t. Underground drilling demonstrates that gold extends well beyond modern development.

The Ballarat Gold Mine

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8

The Ballarat Gold Mine

Workforce

CGT is a significant economic contributor in Ballarat

  • 165 direct CGT Employees
  • 52 contractors (Full Time Equivalent)
  • Approx. 80% employees live in Ballarat
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9

The Ballarat Gold Mine

Health and Wellbeing Initiatives

Employee Assistance Program Daily pre-shift injury prevention exercises Monthly health and wellbeing presentations Soft Tissue Centre Functional capacity evaluations Mental health blueprint Onsite fitness centre Onsite skin cancer checks Health risk assessments

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The Ballarat Gold Mine

Environment and Community

Over 100 specific licence conditions covering:

  • Noise
  • Water management
  • Traffic management
  • Blast vibration
  • Dust
  • Land management

Stakeholder engagement and education

  • Environment review committee (Independent

chair, regulators, community representatives)

  • Newsletters, letter drops
  • Open communication
  • Door knocks, 24/7 contact line, SMS alerts

0.00 1.00 2.00 3.00 4.00 5.00 6.00 7.00 8.00 9.00 10.00

Vibration - Peak Particle Velocity - mm/sec

Maximum Blast Vibration - July 18 to June 19

Max Blast PPV 95% Limit of 5mm/s Maximum Limit of 10mm/s

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The Ballarat Gold Mine

Geology

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The Ballarat Gold Mine

Geology

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The Ballarat Gold Mine

Geology

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The Ballarat Gold Mine

Geology

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The Ballarat Gold Mine

Geology

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The Ballarat Gold Mine

Geology

Main Mineralisation Styles East Dipping Tension Veining West Dipping Fault Lode

1m 1m

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0.37 m3 = 13 cubic feet 17

The Ballarat Gold Mine

Geology

Gold Distribution

5 grams of Gold

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The Ballarat Gold Mine

Finding a Gold Resource

Underground drilling Analyse gold content Geological model

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The Ballarat Gold Mine

Mining a Gold Resource

Jumbo drilling tunnel face Loading explosives Broken rock Removing ore from tunnel Ore loaded on truck Ore taken for processing

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The Ballarat Gold Mine

Processing Plant

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The Ballarat Gold Mine

End of Process

99.9% Gold 00.1% Silver

  • Approx. 2M m3

Future re-processing for gold?

  • Approx. 20kt/mnth.

Used in-mine or stockpiled

Tailings is the ground up ore after the gold has been removed by the processing plant

Gold Waste Rock Tailings

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The Ballarat Gold Mine

Accelerate in-mine exploration

  • Identify extra areas underground to produce
  • re. This will allow the mine grade to increase.

Increase underground tonnages

  • Extract more ore from underground.

Install Ball Mill

  • Increase recovery – recover more gold from

existing ore stream.

Re-treat tailings

  • Re-process existing tailings through the Ball Mill

to recover residual gold.

Opportunities for Growth

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The Ballarat Gold Mine

  • 1. Continued development, Ballarat East
  • 2. Ball Mill, grade and tonnage improvements, TSFs
  • 3. Near mine targets (Ballarat South, Oregon, Exchange)
  • 4. Island hop through Ballarat Gap
  • 5. Ballarat West

6 … and beyond

Long Term Strategy

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The Ballarat Gold Mine

Thank You

For more information please contact IR@liongoldcorp.com

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Appendices

Additional information on CGT projects: Appendix 1: CGT – an update Appendix 2: Table 1 of the JORC code 2012.

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CGT – an update. Appendix 1.

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Castlemaine Goldfields Pty Ltd

Disclaimer & Disclosure

Page 27 The presentation (in this projected form and as presented) (“Presentation”) has been prepared by Castlemaine Goldfields Pty Ltd (the “Company”) and is provided on the basis that none of the Company nor its respective officers, shareholders, related bodies corporate, partners, affiliates, employees, representatives and advisers make any representation or warranty (express or implied) as to the accuracy, reliability, relevance or completeness of the material contained in the Presentation and nothing contained in the Presentation is, or may be relied upon as a promise, representation or warranty, whether as to the past or the future. The Company hereby excludes all warranties that can be excluded by law. The Presentation contains prospective financial material which is predictive in nature and may be affected by inaccurate assumptions or by known or unknown risks and uncertainties and may differ materially from results ultimately achieved. The Presentation contains ”forward-looking statements” regarding future events, conditions, circumstances and the future performance of the Company, including for operating costs and capital expenditures, production volumes, project capacity, project expansion and schedule for expected production. All statements other than those of historical facts included in the Presentation are forward- looking statements. Where the Company expresses or implies an expectation or belief as to future events or results, such expectation or belief is expressed in good faith and believed to have a reasonable
  • basis. However, forward-looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed, projected or implied by
such forward-looking statements. Such risks include, but are not limited to, gold and other metals price volatility, currency fluctuations, increased production costs and variances in ore grade or recovery rates from those assumed in mining plans, as well as political and operational risks and governmental regulation and judicial outcomes. The Company does not undertake any obligation to release publicly any revisions to any “forward-looking statement”. The Presentation contains general background information about the Company and its activities current as at the date of this presentation. The information in this Presentation is in summary form only and does not contain all the information necessary to fully evaluate any transaction or investment. It should be read in conjunction with the Company’s other periodic and continuous disclosure announcements lodged with the SGX, which are available at www.liongoldcorp.com and other publicly available information on the Company available through LionGold Corp. The Presentation contains information about LionGold Corp, extracted from information contained on their website at www.liongoldcorp.com. That information has not been independently verified by the
  • Company. Accordingly, the Company does not make any representation or warranty as to the accuracy or completeness of such information.
This Presentation is not a prospectus, disclosure document or other offering document. It is for information purposes only and does not constitute an offer to sell or a solicitation of an offer to buy or sell any security of the Company in any jurisdiction, and does not form the basis of any contract or commitment. All persons should consider seeking appropriate professional advice in reviewing the Presentation and the Company. The information in this document which relates to Mineral Resources is based on information reviewed by Mr Matthew Hernan. Mr Hernan is an employee of Castlemaine Goldfields Pty Ltd. He is a Member of The AusIMM and is a Competent Person as defined in the 2012 edition of the ‘Australasian Code for Reporting of Exploration Results Mineral Resources and Ore Reserves (the JORC Code)’. Mr Hernan consents to the publication of this information in the form and context in which it appears. The information in this document which relates to Exploration is based on information reviewed by Mr Bill Reid. Mr Reid is an employee of Castlemaine Goldfields Pty Ltd. He is a Member of The AusIMM and is a Competent Person as defined in the 2012 edition of the ‘Australasian Code for Reporting of Exploration Results Mineral Resources and Ore Reserves (the JORC Code)’. Mr Reid consents to the publication of this information in the form and context in which it appears. The project planning, mining schedule and any resources referred to in this presentation, other than those explicitly identified as Mineral Resources in accordance with the JORC Code, are not based on estimations of Ore Reserves or Mineral Resources made in accordance with the JORC Code for the Ballarat East goldfield and caution should be exercised in any external technical or economic evaluation.
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Victoria overview.

Victoria’s world-class narrow-vein (high-grade) gold province:

  • 80+Moz Au.
  • Bendigo Zone - 60Moz Au.
  • A mature mining jurisdiction (~160 years)
  • But strikingly under-explored
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Bendigo Zone overview.

8Moz 22Moz 3Moz 5Moz 13Moz

CGT tenement Cover Outcrop Intrusives 110km

Ballarat

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Bendigo Zone overview.

8Moz 22Moz 3Moz 5Moz 13Moz

CGT tenement Cover Outcrop Intrusives 110km

Ballarat

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Bendigo Zone overview.

8Moz 22Moz 3Moz 5Moz 13Moz

CGT tenement Cover Outcrop Intrusives 110km

Ballarat

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After After Vandenber andenberg g 2000 2000

Victoria – geological evolution and mineralising events.

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There is significant interest in Victorian Gold, Fueled by:

  • Successes at KLG and Catalyst
  • Renewed investment in resources?
  • Gold price
  • A maturing regulatory regime
  • Influx of non-Victorian

explorers

  • Return of Majors after 30 years

(NEM – east of map)

Exploration – peer group tenements.

  • nb. coloured by

application date

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Victorian Gold is “Booming”

“ “

Source: CGM August 2019

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CGT focus – Western sub-zone

16Moz at ~12g/t Au in Zone

  • Nb. Clunes is held by Mt Rommel Mining – not CGT
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CGT exploration is focused on the western-sub-province of the Bendigo Zone. Strategy is “mill matched” resources within the economic footprint of the Mine. Competitive advantage includes:

  • significant tenure
  • minimal cover.
  • established mining, and
  • significant spare processing

capacity (~250ktpa)

  • tenure over entire Ballarat Field*

CGT position in the western sub-zone

* EL006581 is in application

1.2Moz 13Moz 1.1Moz

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CGT tenement details

50km

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Ballarat West Ballarat East Tarnagulla

CGT – Mineralisation Models

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Ballarat West Ballarat East

CGT – Mineralisation Models Ballarat

Upright Folds Overturned More open folds Preserved hinges Stratabound minzn Plunging South North More cover

  • Inc. Fault density

More houses More data

  • Inc. Understanding

Marker Units 14.5g/t Au 9.5g/t Au Easily targeted 0.8Moz 1.9Moz?

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Tarnagulla

CGT – Mineralisation Models Tarnagulla

Sygmoidal En-echelon lodes Sinistral overlapping offsets Long-lived active faults ‘Zoned’ lodes (high grade margins) Mineralisation over plunge reversal Subparallel to axial plane Structural repeats at depth?

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Ballarat Mine

However – There has been a necessary focus on mining and in-Mine resources from 2011 (to the detriment of campaign exploration regionally) Capital options can improve strategy and effectiveness of mining, revitalizing exploration

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Ballarat Mine

Long section, Resources areas, Ballarat Mine. Cross section, Llanberris compartment Ballarat Mine.

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Ballarat Mine

1000 2000 3000 4000 5000 6000
  • 20,000
40,000 60,000 80,000 100,000 120,000 140,000 160,000 180,000 Jun-13 Dec-13 Jun-14 Dec-14 Jun-15 Dec-15 Jun-16 Dec-16 Jun-17 Dec-17 Jun-18 Dec-18 Jun-19

Mineral Resources (LHS) vs production (RHS)

  • z_produced
resource

Source: Liongold QPR 28 Feb, 2019

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aud

Ballarat Mine – Comparison to other Australian Mines

Underground Mine

2018-19 quarter results with Australian gold Mines (March Quarter) for comparison

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Ballarat Mine – Gold Characteristics

Victorian gold distribution is challenging to predict on a small scale (drill holes or small mining areas) – because of the coarse gold

  • grains. On a larger scale,

trends are observed in the data

  • 1. Grades of larger

historic mines

  • 2. Size distribution of

gold at Ballarat (50% > 0.7mm)

  • 3. Assay distribution
  • 4. Gold size distributions

at Bendigo, Ballarat and ‘typical’ mines.

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“In-Mine” exploration results, SFY18-19

Source: Liongold QPR 28 Feb, 2019

CBU

DDH, drill trace and significant intercept. Modern Development Historic Development Cross Fault 500m N Long Section – looking West

In-Mine mineralisation intercepts FY18-19 (Methods summarized in Appendix 2 – JORC Table 1).

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The Mako Deeps and Oregon Targets include ~7.5km of strike potential. Close to modern workings, and have had minimal prior work.

Near Mine Potential

Ballarat Mine. Looking northeast. Grid is 500m. Section (looking North) Where faults cross ‘Lines’ there is increased potential for mineralisation Exploration Potential is conceptual in nature. There is no guarantee that continued exploration will deliver a Mineral Resource.

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Regional Potential

500 1000 1500 2000 2500 3000 0.0 0.8 1.6 2.4 3.2 4.0 4.8 5.6 6.4 7.2 8.0 8.8 9.6 10.4 11.2 12.0 12.8 13.6 14.4 15.2 16.0

Regional gold grades g/t Au

  • Current mining is at lower grades than

‘Field Average’.

  • Minimum spend of $9M/yr to maintain

Resource (to keep mining)

  • 18km x 7km ‘corridor’ of highly gold-

prospective geology.

  • 123km of defensible Exploration Targets

Regional historic gold grades (ppm) Simplified (and stylized) regional targets

Ballarat Mine Corridors of mineralisation potential Exploration Potential is conceptual in nature. There is no guarantee that continued exploration will deliver a Mineral Resource.

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CGT – Mineral system footprints

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Ballarat Mine 5.4km 5.4km 2.5km 2.5km

Exploration Potential

Interpreted crustal architecture includes enormous volumes of rock as potential gold source… Cubes are the (theoretical) volume of source rock required at 1ppb and 10ppb in shales to generate the Ballarat Oz profile.

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Tarnagulla Project Tarnagulla is the northern limit of outcropping geology

  • Includes 167 historic mines in 8 main zones for 1.16Moz

(historic production) Includes historic high grades:

  • Bonanza Shoot - 360,000oz mined from 122,000t (92g/t).
  • Nick O’Time Shoot - 53,000oz mined from 57,400t (29g/t).
  • Multiple historic mines with 15-30 g/t grades.
  • Significant trends with ~2oz/t historic grades.

Tarnagulla Potential

Murray Basin

31+ Historic Mines Historic mine data is sourced from (GeoVic - https://earthresources.vic.gov.au/) - a data portal managed by the Dept. Jobs, Precincts and Regions, Victoria State Gov.

Exploration Potential is conceptual in nature. There is no guarantee that continued exploration will deliver a Mineral Resource.

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500 1000 1500 2000 2500 3000 0.0 0.8 1.6 2.4 3.2 4.0 4.8 5.6 6.4 7.2 8.0 8.8 9.6 10.4 11.2 12.0 12.8 13.6 14.4 15.2 16.0

Simulated gold grades (g/t Au) based on historic mines.

Current head grade

Grade (g/t Au)

Future targets at Ballarat

Ballarat Historic Mines 13+g/t Au and 5000+oz historic production - Half are west-limb systems

Typical grades for historic west-limb mines

Stratabound west-limb mineralisation is identified as future exploration targets because of:

  • Improved grades
  • Simpler geology
  • Wider-spaced (higher confidence) exploration targeting (?)
  • Gold distribution is expected to remain erratic.

10% 5%

Historic mine data is sourced from (GeoVic - https://earthresources.vic.gov.au/) - a data portal managed by the Dept. Jobs, Precincts and Regions, Victoria State Gov.

Exploration Potential is conceptual in nature. There is no guarantee that continued exploration will deliver a Mineral Resource.

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Conclusions

  • The Bendigo Zone is enjoying strong focus for exploration.
  • The high-grade, low-cost operation at Fosterville has attracted global attention

to the Bendigo Zone.

  • CGT holds a strong ground position in the geological domain and has

competitive advantage and experience.

  • For now, the Ballarat Mine – stable but not thriving – remains a necessary

priority.

  • If the Mines economics are resolved, there is a path to re-invigorate the Mine

and regional projects.

  • Identified exploration opportunities have encouraging potential to revitalize,

transform then sustain CGT operations.