THE PILBARA AUSTRALIA S NEXT SIGNIFICANT GOLD REGION AGM PRESENTATION- NOVEMBER 2017 ASX:CAI

Transcription

1 THE PILBARA AUSTRALIA S NEXT SIGNIFICANT GOLD REGION AGM PRESENTATION- NOVEMBER 2017 ASX:CAI

2 DISCLAIMER DISCLAIMER This presentation does not constitute investment advice. Neither this presentation nor the information contained in it constitutes an offer, invitation, solicitation or recommendation in relation to the purchase or sale of shares in any jurisdiction. This presentation does not take into account any person's particular investment objectives, financial resources or other relevant circumstances and the opinions and recommendations in this presentation are not intended to represent recommendations of particular investments to particular persons. All securities transactions involve risks, which include (among others) the risk of adverse or unanticipated market, financial or political developments. To the fullest extent permitted by law, Calidus Resources Limited (the Company or Calidus) does not make any representation or warranty, express or implied, as to the accuracy or completeness of any information, statements, opinions, estimates, forecasts or other representations contained in this presentation. No responsibility for any errors or omissions from this presentation arising out of negligence or otherwise is accepted. This presentation may include forward looking statements. Forward looking statements are only predictions and are subject to risks, uncertainties and assumptions which are outside the control of Calidus. These risks, uncertainties and assumptions include commodity prices, currency fluctuations, economic and financial market conditions in various countries and regions, environmental risks and legislative, fiscal or regulatory developments, political risks, project delay or advancement, approvals and cost estimates. Actual values, results or events may be materially different to those expressed or implied in this presentation. Given these uncertainties, readers are cautioned not to place reliance on forward looking statements. Any forward looking statements in this presentation speak only at the date of issue of this presentation. Subject to any continuing obligations under applicable law and the ASX Listing Rules, Calidus does not undertake any obligation to update or revise any information or any of the forward looking statements in this presentation or any changes in events, conditions or circumstances on which any such forward looking statement is based. COMPLIANCE STATEMENT The information in this presentation that relates to Exploration Results and Mineral Resources released previously on the ASX. The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcements and that, in the case of mineral resources estimates, all material assumptions and technical parameters underpinning the estimates continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Person s findings are presented have not been materially modified from the original market announcements. Mr Daniel Saunders is principal and a full time employee of GeoServ Consulting Pty Ltd, and is a Member of the AusIMM. Mr Daniel Saunders has sufficient experience that is relevant to the style of mineralisation and types of deposit under consideration and to the activities undertaken to qualify as a Competent Person as defined in the 2012 Edition of the JORC Code. Ms Jane Allen is a full time employee of the Company, and is a member of the AusIMM. Ms Jane Allen has sufficient experience that is relevant to the style of mineralisation and type of deposits under consideration and to the activates undertaken to qualify as a Competent Person as defined in the 2012 Edition of the JORC Code. 2

3 UNLOCKING THE POTENTIAL OF THE PILBARA WARRAWOONA PROJECT IN THE EMERGING PILBARA GOLDFIELD OF WA HIGH QUALITY ASSET Gold belt consolidated for the first time Existing Resource of 410,000oz at 2.2g/t from surface Significant exploration upside defined with immediate drill targets, with enhanced target base following Novo JV AGGRESSIVE EXPLORATION PROGRAM Well funded with ~$12m cash following recent capital raising Strategy to rapidly expand resource via brownfields extensions to current mineralisation and regional targets PROVEN MANAGEMENT Experienced in all aspects of project development from exploration through development and into production Raised significant capital for gold exploration and development 3

4 CORPORATE OVERVIEW ASX:CAI CAPITAL STRUCTURE SHARES ON ISSUE Million MARKET CAP (undiluted at A$0.045) CASH (post receipt of funds) $44.7 Million $12 Million DEBT $0 ENTERPRISE VALUE OPTIONS (will raise $4.7m if exercised) $32.38 Million Million 1 PERFORMANCE A- 250 Million 2 SHARES B- 275 Million 3 CAI Shareholder Breakdown 4 44% 3% 4% 18% Board & Mgmt Direct Board and Mgmt via Keras Keras Plc* BOARD OF DIRECTORS & MANAGEMENT KEITH COUGHLAN NON-EXECUTIVE CHAIRMAN (Corporate) DAVID REEVES MANAGING DIRECTOR (Mining Engineer) ADAM MIETHKE NON-EXECUTIVE DIRECTOR (Geologist) PETER HEPBURN-BROWN NON-EXECUTIVE DIRECTOR (Mining Engineer) JANE ALLEN GEOLOGY MANAGER JAMES CARTER COMPANY SECRETARY AND CFO 30 years experience in stockbroking and funds management on ASX, AIM and TSX. Talga, European Metals, Southern Hemisphere Mining. 25 years mining experience in Australia, Africa and Europe. GCM, Delta Gold, Zimplats, European Metals Holdings. Over 15 years experience in exploration and mine geology, funds management and corporate advisory. Rio Tinto, Snowden, Regent Pacific Group, Argonaut. 35 years international mining experience, managing gold mines in Australia and internationally, Medusa Mining, Focus Minerals. 30 years international experience with Anglogold Ashanti, Resolute Mining Limited, Avion Gold Corporation and GCM CPA and Chartered Company Secretary with 20 years experience. Straits Resources, Keras PLC. 31% Institutions Other * Keras PLC shares escrowed for 24 months, CAI board and management own 18 % of Keras c, 2.0c and 3.0c 2. On 500,000 ounces of Indicated Resource 3. On completion of a positive PFS 4. Undiluted assuming approval of Tranche 2 placement 4

5 CALIDUS TIMELINE WHAT WE HAVE ACHIEVED AND OUTLOOK FOR ASX LISTING Listing of Calidus Resources (ASX:CAI) onto the ASX 22/06/2017 EPMINEX CONSOLIDATION Further consolidation of tenements at Warrawoona CAPITAL RAISE $10 million oversubscribed institutional raise EXPANDED PROGRAM Expanded drilling program to commence at Klondyke East 2018 EXPLORATION PROGRAM RC and diamond drilling program, mapping, soils DRILL PROGRAM 12,600m drill program and met test work June 2017 NOVO JOINT VENTURE Joint Venture of Novo tenements Sep 2017 COMPLETED Maiden drill program that has delivered outstanding results to date RESOURCE UPDATE Warrawoona resource update in late 2017 PFS Potential commencement in H

6 WARRAWOONA GOLD PROJECT LOCATED IN AREA WITH PROVEN RESOURCE POTENTIAL 6

7 WARRAWOONA GOLD PROJECT TARGETING A LARGE AND RAPID INCREASE IN RESOURCE WITH MULTIPLE TARGETS IDENTIFIED HISTORICAL GOLD MINING DISTRICT First mined in historic mines and fragmented tenement ownership Last major drill campaign in 1991 PROJECT HIGHLIGHTS 363km 2 under control, application or option Novo JV significantly expanded Calidus footprint via the 70% earn in of the Novo Tenements 5km of Klondyke East Extension plus numerous new targets Resource and infill completed with a resource update expected late this calendar year 1. Reported in accordance with JORC (2012) Guidelines Includes Klondyke and Copenhagen 7

8 KLONDYKE DEPOSIT CURRENT RESOURCE ON KLONDYKE SHEAR 8

9 KLONDYKE DEPOSIT LARGE RESOURCE POTENTIAL Current Resource: 5.6Mt at 2.08g/t Au for 374,000oz (0.8g/t wireframe) Confined to just 2km of 7.5km strike of Klondyke shear Large, high grade intercepts in drilling Metallurgical test work to 150m depth shows free milling ore with recoveries of 93% to 96% Clear exploration strategy to test infill zones and extensions to current resource Predictable geology, open along-strike and down-dip Untested parallel veins and cross-cutting features A total of 15,611m has now been drilled since listing in early 2017 with all drill holes intersecting ore grade mineralisation 9

10 KLONDYKE EXPLORATION UPSIDE HISTORICAL DRILLING IS LIMITED, CONSTRAINED AND SHALLOW 78% of historical drilled intercepts are shallower than 100m Defined mineralisation extends 7.5km along strike with large number of workings No geophysics and no or very limited exploration and testing of parallel structures Tangible upside via infill and extensional drilling 10

11 KLONDYKE DEPOSIT TARGETING THE GAP ZONE AND RESOURCE INFILL INITIAL DRILL PROGRAM 40 holes announced, best intercepts recorded 63.31g/t Au and 27m@5.85g/t Au All holes have hit ore grade mineralisation to-date including all holes in gap zone 11

12 KLONDYKE SECTIONS 12

13 REGIONAL UPSIDE HIGH GRADE SATELLITE TARGETS WITHIN 10KM OF KLONDYKE Further upside via additional largely unexplored multiple shears to west of main shear Covers eleven mining licences and five exploration licences/applications Novo JV now puts Calidus in control of the entire Warrawoona Greenstone Belt 13

14 REGIONAL UPSIDE HIGH GRADE SATELLITE OPPORTUNITIES COPENHAGEN JORC 2012 Inferred Mineral Resource of 6.1g/t to maximum of 100m depth and along 140m of strike Open in all directions Mapping confirms prospectivity to be followed up with targeted soil sampling A A A A 14

15 REGIONAL UPSIDE HIGH GRADE SATELLITE OPPORTUNITIES CORONATION Lies 3km along strike of Copenhagen and is drilled over 190m strike length 5.21 g/t from 9m 7.64 g/t from 64m g/t from 16m 7.98 g/t from surface 5.71 g/t from 12m 31.5 g/t from 30m FIELDINGS GULLY Historic non-compliant resource calculated Remains open at depth and along strike 3.09g/t from 53m 5.29 g/t from 12m 17.58g/t from 20m 15

16 FURTHER REGIONAL UPSIDE MARBLE BAR GOLDFIELD AND EXTENSIONS OF THE GREENSTONE BELT MARBLE BAR GOLDFIELD Produced 170,000oz from 196,500t, no modern exploration 35 recorded old workings on tenement Ironclad stamp battery Marble Bar 16

17 WELL SERVICED BY EXISTING INFRASTRUCTURE ASSISTS WITH RAPID COST EFFECTIVE DEVELOPMENT Located 20km south east of Marble Bar 2 hours drive from Port Hedland on sealed road Australia s largest port All weather, council maintained road from Marble Bar to leases Access to fresh water Sealed airstrip in Marble Bar Mining Registrar located in Marble Bar Accommodation for 100 in single rooms Mad Clappin Harry s, the best coffee in the NW! 17

18 WHERE CALIDUS FITS IN ON GRADE AND OUNCES 4.5 *Bubble Size Represents Enterprise Value 4.0 ORR Resource Grade (g/t Au) S2R CAI CAI AUC RTG BSR EMR RVY PGO KIN CMM ABU EGS EAR GPR AZM GCY CAS WAF DCN GOR ,000 1,500 2,000 2,500 3,000 3,500 4,000 Resources Ounces 1. Data at 27 th October

19 THE PILBARA AN INVESTOR S GOLDMINE POSITIVE TREND IN PILBARA GOLD STOCKS CAI, ARV, DEG and KAI all have recently announced significant investment by Novo or Novo s major shareholders Sprott Calidus share price increase based on tangible drill intercepts $A/share CAI 0 Jun 2017 Jul 2017 Aug 2017 Sep 2017 Oct 2017 CAI ARV DEG KAI Mid Mkt. Cap Index Small Mkt. Cap Index Mid Mkt. Cap Index (>$25m) includes CHN, HAO and VXR 2. Small Mkt. Cap Index (<$25m) includes DGO, IPT, KZR, CDT, RTR and SUH 19

20 WHERE CALIDUS FITS IN IN THE PILBARA COMPARATIVELY CHEAP Compared to Pilbara peers, Calidus is significantly undervalued when assessing market valuation on resource ounces, will be even more pronounced post pending resource upgrade 250 CAI EV (A$m) Mkt Cap (A$m) Resources (Koz) ARV HAO DEG CAI KAI RTR IPT - 1. Data at 27 th October

21 REASONS TO INVEST GRANTED MINING LEASES in an emerging Australian gold district with world class infrastructure EXISTING HIGH GRADE RESOURCE with predictable and tangible brownfields exploration upside and drill ready targets POTENTIAL FOR NEW DISCOVERIES given lack of modern or systematic exploration and large number of existing targets PROVEN BOARD AND MANAGEMENT TEAM in gold exploration, development and mining One of the few INDEPENDENT NEAR-TERM GOLD DEVELOPMENT companies on the ASX A FRESH, WELL CAPITALISED STORY IN A TIER 1 JURISDICTION 21

22 CONTACT DAVE REEVES Managing Director

23 APPENDIX ONE JORC 2012 RESOURCE Deposit JORC Category Cut-Off Grade Tonnes(Mt) Grade Metal Au (g/t) Au (g/t) (Koz) Klondyke Inferred Copenhagen Inferred Total