Doray Minerals Limited

Transcription

1 Investor Update June 2017 Doray Minerals Limited

2 Disclaimer This presentation has been prepared by Doray Minerals Limited ( Doray ) toprovide an update regarding thecompany toinvestors. Presentation information: This presentation is for information purposes only and does not constitute a prospectus or prospectus equivalent document. The information in this presentation is provided in summary form, has not been independently verified, and should not be considered to be comprehensive or complete. It is not intended to and does not constitute, or form part of, an offer, invitation or the solicitation of an offer to purchase or otherwise acquire, subscribe for, sell or otherwise dispose of any securities, or the solicitation of any vote or approval in any jurisdiction, nor shall there be any offer, sale, issuance or transfer of securities in any jurisdiction in contravention of any applicable law. Not financial product advice: This presentation is not financial product or investment advice, nor a recommendation to acquire Doray securities. It has been prepared without taking into account the objectives, financial situation or needs of individuals and is not intended to be relied upon as advice to investors or potential investors. Before making an investment decision, investors or prospective investors should consider the appropriateness of the information having regard to their own objectives, financial situation and needs and seek legal and taxation advice appropriate to their jurisdiction. Doray is not licensed to provide financial product advice in respect of its securities or any other financial products. Cooling off rights do not apply to the acquisition of Doray securities. Doray assumes that the recipient is capable of making its own independent assessment, without reliance on this document, of the information and any potential investment and will conduct its own investigation. Disclaimer: Doray and its related bodies corporate and each of their respective directors, officers, employees, agents and contractors disclaims, to the maximum extent permitted by law, all liability and responsibility for any direct or indirect loss or damage which may be suffered by any person (including because of fault or negligence or otherwise) through use or reliance on anything contained in or omitted from this presentation. In particular, this presentation does not constitute, and shall not be relied upon as, a promise, representation, warranty or guarantee as to the past, present or the future performance of Doray. Forward looking statements: This presentation contains forward looking statements. Forward looking statements are often, but not always, identified by the use of words such as "seek", target, "anticipate", forecast, "believe", "plan", "estimate", "expect" and "intend" and statements that an event or result "may", "will", "should", "could" or "might" occur or be achieved and other similar expressions. Indications of, and guidance on, future expected production or earnings and financial position and performance are also forward looking statements. The forward looking statements in this presentation are based on current expectations, estimates, assumptions, forecasts and projections about Doray and the industry in which it operates as well as other factors that management believes to be relevant and reasonable in the circumstances at the date such statements are made, but which may prove to be incorrect. The forward looking statements relate to future matters and are subject to various inherent risks and uncertainties. Many known and unknown factors could cause actual events or results to differ materially from the estimated or anticipated events or results expressed or implied by any forward looking statements. Such factors include, among others, changes in market conditions, future prices of gold and exchange rate movements, the actual results of production, development and/or exploration activities, variations in grade or recovery rates, plant and/or equipment failure and the possibility of cost overruns. Neither Doray, its related bodies corporate nor any of their directors, officers, employees, agents or contractors makes any representation or warranty (either express or implied) as to the accuracy, correctness, completeness, adequacy, reliability or likelihood of fulfilment of any forward looking statement, or any events or results expressed or implied in any forward looking statement, except to the extent required by law. You are cautioned not to place undue reliance on any forward looking statement. The forward looking statements in this presentation reflect views held only as at the date of this presentation. Other than as required by law and the ASX Listing Rules, Doray disclaims any duty to update forward looking statements toreflect new developments. Competent Person s Statement The information in this presentation regarding Exploration Results, Mineral Resources or Ore Reserves has been extracted from various Doray ASX announcements and are available on the Doray website at or through the ASX website at (using ticker code DRM ). Doray confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement and that all material assumptions and technical parameters underpinning the estimates in that market announcement continue to apply and have not materially changed. Doray confirms that the form and context in which the Competent Person s findings are presented have not been materially modified from the original market announcement. 2

3 Corporate Snapshot ASX Code DRM 2017 Current Financial Year Production Profile Shares on Issue 357.1M Market Cap Cash and Gold Equiv. (31 March 2017) Debt (31 May 2017) A$122M A$31.2M A$55M Group Production Forecast Gold Production Forecast Copper Production Forecast Deflector Gold Copper Mine Gold Production Forecast Copper Production Forecast 100, ,000oz 4,200 4,600t 50,000 55,000oz 4,200t 4,600t Board Julius Matthys Non-Executive Chairman Andy Well Gold Mine Gold Production Forecast 50,000 55,000oz Leigh Junk Peter Alexander Jay Stephenson Substantial Shareholders Managing Director Non-Executive Director Non-Executive Director 16-Jun Jun-2017 Ruffer 9.8% Sun Valley 8.7% Perennial 6.1% Adam Smith 5.0% 3

4 Deflector

5 Deflector Primary Ore Processing Begins Deflector Highlights 709 days LTI free at Deflector Deflector successfully processing primary ore from 15 May 2017 On track to meet FY 2017 production guidance of 50,000 55,000oz Au and 4,200 4,600t Cu FY 2018 forecast to produce 60,000 65,000oz Au at AISC of between A$1,225 A$1,275 inclusive of copper credits Potential new discovery of Northern extension Full Inventory of Gold Copper Middling's Product shipped with $15M received and final payments to come High Grade drill intercepts from infill and extension drilling 5

6 Deflector Revenues from Gold Copper Middlings Product Deflector Gold Copper Product Sampling at the Smelter in Germany Visible Gold in the Deflector Gold Copper Product Tonnes Date Shipped Samples Gold Grade Range g/t Initial Payment Received Final Reconciliation Expected Shipment One March 2017 Shipment Two May ,800 to 2,300g/t 3,500 to 4,000g/t A$10.48M June 2017 A$4.55M August 2017 Total A$15.03M 6

7 Deflector - Exceptionally High Grade Drilling Results 7

8 Deflector - Exceptional Grades from Drilling Major diamond drill programme to infill and extend Deflector orebodies continues to intersect high grade mineralization South end (Western and Central Lodes) outstanding intersections include: (See ASX Announcement 17 May 2017) - 349g/t Au and 2.1% Cu from 256.8m - 118g/t Au and 3.7% Cu from 92.3m - 156g/t Au and 1.0% Cu from 306.3m g/t Au and 0.5% Cu from 323.3m g/t Au from 227.0m g/t Au and 0.8% Cu from 276.4m North end (Western Lode) outstanding intersections include: g/t Au and 3.9% Cu from 191.2m incl. 61.5g/t Au and 8.5% Cu g/t Au and 1.2% Cu from 259.0m incl. 16.5g/t Au and 4.2% Cu - 6.2g/t Au from 193.5m (Cu pending), incl. 58.8g/t Au - 2.7g/t Au from 218.0m (Cu pending), incl. 8.1g/t Au 8

9 Deflector Potential New Discovery of Northern Extension Hole DEDD031a North of the Dolerite Dyke 2.4g/t Au) Quartz Carbonate Vein into massive sulphides (Typical of Deflector Ore Body) Hole DEDD031a in Western Lode 31.5g/t Au and 3.9% Cu) Quartz Carbonate Vein into massive sulphides (Deflector Ore Body) 9

10 Andy Well

11 Andy Well Optionality with New Gnaweeda (Turnberry) Deposit Andy Well / Gnaweeda Highlights 1,378 days LTI free at Andy Well Gold Production for Q3 of 13,042oz at AISC A$1,498/oz Andy Well on track to meet FY 2017 production guidance of 50,000 55,000oz Gnaweeda drilling increased Indicated and Inferred Resource to 1.8g/t for 322,000oz Gnaweeda ore treatment options are being reviewed including toll treating eliminating the requirement for plant upgrade 11

12 Gnaweeda (Turnberry) The New Deposit at Andy Well Located 15km from Andy Well processing plant Mineral Resource increased to 1.8g/t for 322,000 oz (Indicated and Inferred) Drilling success at Gnaweeda now prompting further work to optimise Andy Well Project Studies include ore treatment options, technical evaluation and permitting requirements Initial metallurgical studies indicate conventional CIP/CIL processing is viable 12

13 Gnaweeda Project Area 3 high grade zones identified to date at Turnberry Next target - St Annes ready for RC drilling with similar geology and signature to Turnberry Current work highlighting controls on mineralisation opening up the potential of the Project Aircore anomalism identified over 6-7km strike, yet to be RC tested outside of Turnberry 13

14 Gnaweeda High Grade Zone Identified Resource drilling to enhance mining evaluation study Significant intersections include: (See ASX Announcement 9 June 2017 and 17 June 2016) 7.1 g/t Au (including 4m at 23g/t Au) 11.6g/t Au 18.6g/t Au 15.3g/t Au 9.4g/t Au 10.1g/t Au 18.9g/t Au 41.6g/t Au 4.8g/t Au 58.2g/t Au 4.7g/t Au Consistent high grade zones of mineralisation being defined within broader envelopes 14

15 Gnaweeda Turnberry Deposit Turnberry South broad zones of mineralisation within differentiated gabbro unit Consistent high grade zone located at the base of the sill Evaluation for open pit extraction ongoing and potential for possible underground mine 15

16 Summary On track to achieve Group production guidance for FY 2017 of 100, ,000oz Au and 4,200 to 4,600t Cu Deflector FY 2018 production forecast of 60,000 AISC of A$1,225 A$1,275 Potential new discovery of northern extension to the Deflector orebody Gnaweeda ore treatment options being reviewed including toll treating eliminating the requirement for plant upgrade New management team delivering on production forecasts and cost savings across the Group 16

17 Competent Person Statements The information in this announcement regarding Exploration Results, Mineral Resources or Ore Reserves has been extracted from various Doray ASX announcements and are available on the Doray website at or through the ASX website at (using ticker code DRM ). Doray confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement and that all material assumptions and technical parameters underpinning the estimates in that market announcement continue to apply and have not materially changed. Doray confirms that the form and context in which the Competent Person s findings are presented have not been materially modified from the original market announcement. For further information contact: Mark Hepburn Corporate Development Manager Investorrelations@dorayminerals.com.au

18 Appendix One Deflector Gold Project Ore Reserve Statement as at 30 June 2016 Gold Copper Tonnes Au Grade (g/t) Au Ounces Cu Grade (%) Cu Tonnes Proved 908, , ,000 Probable 873, , ,000 TOTAL 1,781, , ,000 Doray Minerals Ltd Mineral Resource Statement as at 30 June 2016 Gold Measured Indicated Inferred Total Tonnes g/t Ounces Tonnes g/t Ounces Tonnes g/t Ounces Tonnes g/t Ounces Deflector 1,164, ,000 1,043, , , ,000 2,865, ,000 Andy Well 164, ,000 1,020, , , ,000 1,921, Gnaweeda* 1,200, ,000 4,300, ,000 5,500, ,000 TOTAL 1,328, ,000 3,263, ,000 5,695, ,000 10,286, ,433,000 *Gnaweeda Mineral Resource as at 9 June