1.25 Moz HIGH - GRADE, SHALLOW WA GOLD PROJECT PROGRESSING TO DEVELOPMENT

Transcription

1 1.25 Moz HIGH - GRADE, SHALLOW WA GOLD PROJECT PROGRESSING TO DEVELOPMENT CORPORATE PRESENTATION FEBRUARY 2019 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. PAGE 2

3 PROGRESSING TOWARDS PRODUCTION SNAPSHOT 1.25 Moz resource at 1.83 g/t Au including 1.1Moz at 2.37g/t PFS will enable rapid transition to Definitive Feasibility Study (DFS) 795,000oz of Indicated Resources (64%) Environmental monitoring well advanced, applications for permits to be submitted Q % increase in resource since listing June 2017 (412,000oz) Fully funded Pre-feasibility Study (PFS) commenced, completion due Q PAGE 3 CORPORATE PRESENTATION FEBRUARY 2019 Significant exploration upside both adjacent to existing resources and in greenfields areas on 781 km2 tenement package being targeted in

4 DRIVING DEVELOPMENT PROGRESS A CENTURY OF EXPERIENCE IN PRECIOUS- METAL PROJECT DEVELOPMENT EXECUTIVE MANAGEMENT DAVE REEVES MANAGING DIRECTOR 25 years mining experience in Australia, Africa and Europe. Previous roles at GCM, Delta Gold, Zimplats and European Metals Holdings. Instrumental in the progression of four mining projects through feasibility to project development FERNANDO MOUTINHO PROJECT MANAGER 30 years international experience with GRD Minproc, Sheffield Resources, Syrah Resources, New Century Resources JANE ALLEN GEOLOGY MANAGER 30 years international mining experience with Anglogold Ashanti, Resolute Mining, Avion Gold Corporation and GCM BOARD MARK CONNELLY NON-EXECUTIVE CHAIRMAN Over 28 years resource industry experience in CEO and Managing Director roles across multiple jurisdictions including Australia, West Africa, North America and Europe. Currently Non-Executive Chairman at West African Resources Ltd ADAM MIETHKE NON-EXECUTIVE DIRECTOR Over 15 years experience in exploration and mine geology, funds management and corporate advisory. Previous technical and corporate roles at Rio Tinto, Snowden, Regent Pacific Group and Argonaut KEITH COUGHLAN NON-EXECUTIVE DIRECTOR 30 years experience in stockbroking and funds management on ASX, AIM and TSX. Currently the MD of European Metals Holdings and recently retired as chairman of Talga Resources PAGE 4 CORPORATE PRESENTATION FEBRUARY 2019

5 CORPORATE OVERVIEW CAPITAL STRUCTURE AND SHAREHOLDERS CAPITAL STRUCTURE SHARES ON ISSUE MARKET CAP (undiluted at A$0.03) CASH (as at 31 Dec 2018) LISTED INVESTMENTS ENTERPRISE VALUE OPTIONS (will raise $6.9m if exercised) PERFORMANCE SHARES KEY SHAREHOLDERS KERAS RESOURCES 2 (AIM:KRS) ALKANE RESOURCES (ASX:ALK) NOVO RESOURCES (TSX: NVO) 1,419 Million $42.6 Million $3.9 Million $2.9 Million $35.8 Million 254 Million Million % 10.2% 4.0% WELL FUNDED Cash reserves of $3.9m Investment in Pacton Gold (TSX: PAC) valued at $2.9m 1 2.5c exercisable options to raise $2.2m due June 2019 STRONG CORPORATE MINING SUPPORT Keras Resources London listed exploration company 2 Alkane Resources ASX listed Australian domiciled gold producer with c.$80m in cash reserves and investments 5 Novo Resources Canadian listed, well funded Pilbara Gold explorer with nearby gold properties and JORC resources TIGHTLY HELD SHARE REGISTER Over 15% Tier 1 institutional ownership Top 20 hold 70% 1. Using share price of $0.26 as at 4 Feb CAI board and management own 18 % of Keras c, 2.0c, 3.5c and 3.0c 4. Performance Shares vest on completion of a positive PFS 5. ALK cash balance as at 31 December 2018 PAGE 5 CORPORATE PRESENTATION FEBRUARY 2019

6 WARRAWOONA GOLD PROJECT LOCATED IN AREA WITH PROVEN RESOURCE POTENTIAL PAGE 6 CORPORATE PRESENTATION FEBRUARY 2019

7 CONTROL OF PROVEN GREENSTONE BELT 780KM 2 OF CONTIGUOUS TENURE 780km 2 under control, application or option +200 historic mines located on tenements Very limited previous exploration focused around the Klondyke workings Majority of package not covered by any soil sampling or drilling PAGE 7 CORPORATE PRESENTATION FEBRUARY 2019

8 KLONDYKE DEPOSIT 76% INCREASE IN GLOBAL RESOURCE BASE TO 1.15 Moz Klondyke (0.5g/t cut-off summary) Cut-off Indicated Inferred Total Au g/t Mt g/t Au Ozs Mt g/t Au Ozs Mt g/t Au Ozs Klondyke Open Pit , , ,000 Klondyke Underground , , ,000 Total , , ,150,000 Deposit (0.8g/t cut-off summary) Cut-off Indicated Inferred Total Au g/t Mt g/t Au Ozs Mt g/t Au Ozs Mt g/t Au Ozs Klondyke Open Pit , , ,000 Klondyke Underground , , ,000 Total , , ,020,000 PAGE 8 CORPORATE PRESENTATION FEBRUARY 2019

9 KLONDYKE DEPOSIT HIGH GRADE MINERALISATION REMAINS OPEN AT DEPTH PAGE 9 CORPORATE PRESENTATION FEBRUARY 2019

10 UPDATED MINERAL RESOURCE CONTINUOUS OUTCROPPING RESOURCE OPEN IN ALL DIRECTIONS PAGE 10 CORPORATE PRESENTATION FEBRUARY 2019

11 PRE- FEASIBILITY STUDY INPUTS RAPID PROGRESSION OF PFS, SCHEDULED FOR Q COMPLETION METALLURGICAL TESTWORK High gold recoveries (96.7% leach recoveries), conventional processing methods & variability testing underway HYDROLOGICAL Initial water monitoring bores drilled & hydrological model completed production bores to be drilled in 2019 HERITAGE Heritage clearance work completed over area of disturbance GEOTECHNICAL Majority of geotechnical drilling complete & analysis underway ENVIRONMENTAL Flora and fauna studies commenced as have discussions with regulator & MAF/PAF testing TAILINGS Thickening testwork and geotechnical testing complete, further confirmatory work planned, initial designs & locations finalised PAGE 11 CORPORATE PRESENTATION FEBRUARY 2019

12 WELL SERVICED BY EXISTING INFRASTRUCTURE ASSISTS WITH RAPID COST EFFECTIVE DEVELOPMENT 2 HOURS DRIVE FROM PORT HEDLAND ON SEALED ROAD (AUSTRALIA S LARGEST PORT) MINING REGISTRAR LOCATED IN TOWN LOCATED 20KM SOUTH EAST OF MARBLE BAR All weather, council maintained road from Marble Bar to leases SEALED AIRSTRIP IN MARBLE BAR Access to trucked LNG from NW Shelf 100 rooms available in town All weather airstrip PAGE 12 CORPORATE PRESENTATION FEBRUARY

13 DEVELOPMENT TIMELINEEXPLORATION TIMELINE PARALLEL WORKSTREAMS TO PROVIDE CONSISTENT NEWSFLOW PAGE 13 CORPORATE PRESENTATION FEBRUARY 2019

14 REGIONAL UPSIDE LARGELY UNTESTED MULTIPLE HIGH GRADE SATELLITE TARGETS, WITHIN 10KM OF KLONDYKE Deposit Cut-off Indicated Inferred Total Au g/t Mt g/t Au Ozs Mt g/t Au Ozs Mt g/t Au Ozs Copenhagen , , ,000 Coronation , ,000 Fieldings Gully , , ,000 Total , , ,000 PAGE 14 CORPORATE PRESENTATION FEBRUARY 2019

15 AUSTRALIAN OPEN PIT DEVELOPERS ONE OF FEW HIGH GRADE INDEPENDENT DEVELOPMENT PROJECTS UNDEVELOPED OPEN-PIT WA PROJECTS (>1Moz Au) * Bubble size represents Enterprise Value Warrawoona (0.8g/t Au cut-off grade) Yandal, EAR Resource Grade (g/t Au) Leonora, KIN Bombora, BRB Karlawinda, CMM Warrawoona (0.5 g/t Au cutoff grade) 1.2 Katanning, AUC 1.0 1,000 1,050 1,100 1,150 1,200 1,250 1,300 1,350 1,400 1,450 1,500 Mineral Resource Ounces (koz) Scarcity of independent ASX open pit gold developers with Resource bases over 1Moz Au 1. Data as at 6 February 2019 PAGE 15 CORPORATE PRESENTATION FEBRUARY 2019

16 NEAR-TERM DEVELOPMENT VALUE GROWTH ASSOCIATED WITH DEVELOPMENT UNDERVALUED COMPARED TO DEVELOPMENT PEERS Completed Feasibility Study Prior to Feasibility Study EV/Resource (A$/oz) Average = $75/oz 24 0 BGL VAN EXU EAR BRB GMD CMM GMD BRB CAI KIN Key Project Bellevue Trident Tampia Yandal Ulysses Karlawinda Bombora Warrawoona Leonora Stage Resource Development Resource Development Feasibility Feasibility Feasibility Financing PFS Commenced PFS Commenced Resource Development Mkt Cap (A$m) EV (A$m) Resource (koz) 1, , ,114 1,084 1,248 1,023 Grade (g/t) Mine Type Underground Underground Open-pit Open-pit Underground Open-pit Open-pit 1. Data as at 6 February Calidus EV doesn t account for listed investments of c.$2.9m Open-pit & Underground Potential Open-pit PAGE 16 CORPORATE PRESENTATION FEBRUARY 2019

17 WEST AUSTRALIAN 1.25Moz HIGH - GRADE, SHALLOW GOLD DEVELOPER REASONS TO INVEST Critical mass for a standalone development achieved High grade open pit outcropping resource Excellent metallurgy Experienced mine development team Fully funded through to Pre-feasibility Study completion PAGE 17 CORPORATE PRESENTATION FEBRUARY 2019 Located in close proximity to high quality infrastructure and operating mines Greenfields exploration has significant potential for new discoveries given lack of modern or systematic exploration Uniquely positioned as one of few remaining high grade open-pit gold development companies on the ASX 17

18 CONTACT DAVE REEVES Managing Director

19 APPENDIX ONE JORC RESOURCE at a 0.5g/t cut-off Deposit Cut-off Indicated Inferred Total Au g/t Mt g/t Au Ozs Mt g/t Au Ozs Mt g/t Au Ozs Klondyke Open Pit , , ,000 Klondyke Underground , , ,000 Copenhagen , , ,000 Coronation , ,000 Fieldings Gully , , ,000 Total , , ,248,000

20 APPENDIX TWO JORC RESOURCE at a 0.8g/t cut-off Deposit Cut-off Indicated Inferred Total Au g/t Mt g/t Au Ozs Mt g/t Au Ozs Mt g/t Au Ozs Klondyke Open Pit , , ,000 Klondyke Underground , , ,000 Copenhagen , , ,000 Coronation , ,000 Fieldings Gully , , ,000 Total , , ,113,000