For personal use only

Transcription

1 Havilah Resources Limited plans to sequentially develop its portfolio of gold, copper, iron, cobalt, tin and other mineral resources in South Australia. Our vision is to become a new mining force, delivering value to our shareholders, partners and the community. 156 million Ordinary Shares million Listed Options -- 5 million Unlisted Options Portia Gold ASX Code: HAV ASX and Media Release: 25 May 2015 A NEW MINING FORCE IN SOUTH AUSTRALIA Havilah Resources Limited ( Havilah or the Company ) is pleased to publish an updated version of its presentation entitled A New Mining Force in South Australia. This presentation is to be given by Managing Director, Dr Chris Giles, during a PhillipCapital sponsored roadshow in Singapore and Hong Kong this week. This presentation summarises Havilah s mining development plans in South Australia, including recent progress on the Portia gold project. The presentation will also be posted on the Company s website at: Shareholders are also advised of some new videos of the Portia gold mine development that is also posted on Havilah s website at: For further information visit Contact: Dr Chris Giles, Managing Director, on (08) or info@havilah-resources.com.au HAVILAH RESOURCES LIMITED Page 1 ABN MAIL: 31 Flemington Street, Glenside, SA 5065 Australia info@havilah-resources.com.au

2 1 HAVILAH RESOURCES LIMITED A New Mining Force in South Australia Investor presentation by Dr Chris Giles, Managing Director May 2015

3 2 Cautionary Statement The information contained in this presentation is not financial product advice. The presentation is for information purposes and is of a general and summary nature only. Neither Havilah Resources Limited (Havilah) nor any member of the Havilah Group of companies, gives no warranties in relation to the statements and information in this presentation. Investors should seek appropriate advice on their own objectives, financial situation and needs. This presentation contains certain statements which may constitute forward looking statements. Such statements are only predictions and are subject to inherent risks and uncertainties which could cause actual values, performance or achievements to differ materially from those expressed, implied or projected in any forward looking statements. Havilah disclaims any intent or obligation to update publicly any forward looking statements, whether as a result of new information, future events or results or otherwise. Investors are cautioned that forward looking statements are not guarantees of future performance and investors are cautioned not to put undue reliance on forward looking statements due to the inherent uncertainty therein. Competent Person Statement The information in this presentation that relates to Exploration Targets, Exploration Results, Mineral Resources and Ore Reserves is based on data compiled by geologist, Dr Chris Giles, a Competent Person who is a member of The Australian Institute of Geoscientists. Dr. Giles is a director of the Company and is employed by the Company on a consulting contract. Dr. Giles has sufficient experience, which is relevant to the style of mineralisation and type of deposit and activities described herein to qualify as a Competent Person as defined in the 2012 Edition of Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Dr. Giles consents to the inclusion in the presentation of the matters based on his information in the form and context in which it appears. Information for Kalkaroo and Croziers has been updated to comply with the JORC Code 2012 on the basis that the information has not materially changed since it was last reported. All other information was prepared and first disclosed under the JORC Code 2004.

4 3 Investment Key Points Prospect of >$40 million gross cash flow generated by HAV in Portia gold mine funded and underway Future cash flow growth from new mines in the pipeline Kalkaroo copper gold project with > 14 year mine life is next 2 Exposure to exploration success and new discoveries Proven track record of discovery in highly prospective terrain Low point of resources cycle much upside from here... Research analyst sets a near term share value of $ Reference to ASX releases : 1 18/02/15; 2 2/03/15; 3 25/03/15

5 4 Corporate Summary Capital Structure Millions HAV v Small Resources (XSR) 1 year Cash (31 Jan 2015) $2.9 Debt (31 Jan 2015) $0.8 Shares 156 Options (Listed + Unlisted) 41 Market Cap (21 May 2015) $52

6 5 Major Shareholder Background Owner Bob Johnson Family Trust Chris Giles (various entities) Share Holding 4.1% 10.8% 10.7% Glencore 6.5% China Minmetals (MMG) 2.6% History & Background Founder and former Chairman, long term continual supporter of all capital raisings. Owner of successful mining software business. Founder and Managing Director, history of supporting company with personal capital and low salary. Successful exploration geologist who has driven Havilah s discoveries. Funded Kalkaroo feasibility study in mid 2000 s. Converted interest in Kalkaroo to equity in Took a placement of 4 million shares on the back of the exploration potential of the tenement holdings. Private Australian ±20.0% Long term supportive shareholders, most >10 year holding. Private Asian 15.8% Have supported recent capital raisings, long term holders. Top % Tight registry with supportive long term shareholder base. Top % Includes many supportive long term private investors.

7 6 Director Expertise Chris Giles Managing Director, Founder, Major Shareholder A successful exploration geologist, having been directly involved in exploration programs resulting in discovery of several gold mines in Indonesia, East Africa and Australia. Responsible for Havilah exploration strategy and implementation. Ken Williams Chairman Extensive experience in corporate finance and risk management via former roles as Chief Financial Officer Normandy Mining and Group Executive Finance for Newmont Australia. Currently Non executive Director of AWE Limited. Paul Mertin Non executive Director Retired as the Head of National Australia Bank Corporate in South Australia after a 33 year career at National Australia Bank, during which time he developed extensive contacts across the business community.

8 7 Management Experience Walter Richards Chief Financial Officer & Company Secretary More than twenty years experience in various financial roles with Newmont Mining Corporation. Regional Vice President Finance in Africa, during which the Ahafo and Akyem gold mines were developed. Very relevant experience given where HAV sits in relation to a number of development projects. Jared Murray Operations Manager An experienced mining engineer, with broad practical experience and exceptionally project and people management skills. Responsible for overseeing the development and operation of Havilah s proposed mining projects. Andrew Woidt Environmental Manager Over ten years experience in environmental management, including roles at the Cairn Hill magnetite copper gold project, Golder Associates and One Steel (now Arrium Mining) operations at Whyalla. Critical practical environmental management experience. Three experienced geologists: Traviss Just copper gold projects and regional exploration Dr Geoff Stolz cobalt, iron ore and metallurgical sampling Ms Lucie Price experienced tenements manager

9 8 Havilah Strategic Objectives Vision Statement To become a new mining force, delivering value to our shareholders, partners and the community Produce 30,000 tonnes copper and 100,000 ozs gold per annum within 6 years, via sequential development of existing mineral projects. Minimise risk, shareholder dilution and pay dividends at the earliest opportunity. Build solid relationships with strong partners on all mining projects that will facilitate future expansion and development of new mineral deposits. Further discoveries and conversion to JORC resources to provide a platform of growth beyond our current resources.

10 9 Havilah is Delivering Low risk transition to miner: Portia permitted, funded and commenced mining. Short term cash flow: prospect of Portia gold sales in Quality mineral development projects: Pipeline of long life, low cost open cut mines with low CAPEX options, no adverse technical issues and robust economics. Low risk location: Low sovereign risk, proximity to infrastructure, km from Broken Hill, 8 80km from Barrier highway and Transcontinental railway. Successful mineral explorer: High probability for new discoveries based on track record and high prospectivity of the large tenement holding. Experienced Management Team: Reputable, patient and persistent, aligned with shareholder s interests and 12 year history of prudent use of funds.

11 10 Tenement Location: South Australia

12 11 Portia Havilah s First Mine Start of Portia open pit 30 March 2015

13 12 Portia Havilah s First Mine Simple gravity recovery of free gold. Experienced Broken Hill contractor responsible for all mining. Innovative funding arrangement revenue sharing with contractor. Prospect of >$40 million gross cash flow generated in Refer to ASX release 18/02/15

14 Portia Open Pit And Resource Model 13 Open pit is optimised to capture the maximum ounces of gold (80%) in the base of Tertiary resource. Potential exist to access additional gold below pit floor. 13

15 14 High Grade Gold 75m Below Surface Initial mining objective 67,000 oz JORC resource at base of Tertiary clay 1 Weathered bedrock Patchy high grade gold mineralisation in bedrock 26 metres of 15.4 g/t Au 13 metres of 33.5 g/t 2 Bedrock Refer to ASX releases on 1 26/06/09 and 2 30/11/06

16 15 Simple Gravity Recovery Plant Twin 50 tonne per hour Inline Pressure Jigs with Spinners for heavy mineral and gold separation. 120 tonne per hour Trommel for washing ore.

17 16 Portia Key Economic Metrics 1 Cash Flow Analysis Millions Total gross cash flow generated $80.5 Royalties payable $(2.4) Cash flow generated after royalty expenses $78.1 Havilah 50% share of cash flow generated $39.1 Based on: JORC resource of 720, g/t of gravity recoverable gold. Within optimised open pit design :355, g/t for 53,600 oz gold. 95% gold recovery. Gold price of A$1,580 per oz. State royalty of 2% and Pasminco royalty of 1%. 1 Refer to ASX release 26/6/2009, 18/02/15

18 17 Kalkaroo Havilah s Second Mine Large long life resource of 622K tonne copper and 2M oz gold 1 Gold cap 0.74g/t Au Native copper Chalcopyrite sulphides Cu-Au Deposit 0.50%Cu 0.39g/t Au 1Refer to ASX release 2/03/15 and resource table at end of presentation

19 18 Australian Copper Project Comparisons Resource data based on ASX releases to 25/03/15. Copper equivalent resource = copper tonnes + gold ounces x , assuming average gold and copper prices for first 3 months 2015 and same metal recoveries

20 19 Kalkaroo Project Benchmarking PhillipCapital Research: Kalkaroo in first quartile of undeveloped copper projects of significant size Source: SNL, Terra Studio. Copper projects with mineral resources in excess of 500,000t copper metal via PhillipCapital research published on 18/3/15.

21 20 Kalkaroo Development Options 1 Two development options: Optimised Production vs Minimised Capex. Modelling indicates this is a lowest quartile cost operation. Parameter Optimised Production Model Minimised Capex Model Mine life 14 years 17.5 years Upfront capex (± 30%) A$340M A$83M Annual metal production Total site operating and copper transport and refining costs (per lb payable copper) Gold revenue credit (per lb payable copper) C1 Cash Cost (net of Au by product credit) Breakeven copper price (NPV=0 at a 10% discount rate) 34,000 tpa copper 108,000 oz gold US$2.47 US$1.89 US$0.59 US$1.40 / lb Rising to 35,000 tpa copper 106,000 oz gold from Year 6 US$2.57 US$1.89 US$0.69 US$1.65 / lb 1 Refer to ASX release 2/03/15 (financial model assumes US$1,300 /oz Au & US$2.80/lb Cu & AUD:USD 0.80). All the assumptions underpinning the information above continue to apply and have not materially changed. Molybdenum is an Inferred Resource and is not included in the modelling above, as there is a low level of geological confidence associated with the inferred mineral resource and there is no certainty that further exploration work will result in the determination of indicated mineral resources or that the production target relating to the inferred mineral resource itself will be realised.

22 21 Kalkaroo on Copper Mine Cost Curve PhillipCapital Research: The gold endowment has also a significant impact on cash costs. Kalkaroo cash costs are expected in the first quartile. Source: Wood Mackenzie 2014 highly probable and probable mines only, via PhillipCapital research published on 18/3/15.

23 22 Low Capital Starter Open Pit Option Commence mining on highest grade and shallowest ore at Western end of deposit. $83 million (±30%) start up capex and thereafter selffunding. Slower route, but advantage is that future expansion of mine is largely funded by cash flow with lower development risk.

24 23 Aiming for Mid 2016 Decision to Mine Permitting, processing flow sheet and funding are critical path tasks. HAV owns Kalkaroo Station land access secured. Ample flat land for mining infrastructure. West Kalkaroo starter open pit location

25 24 Resource Expansion Potential High potential for expansion of current resource and new discoveries nearby to extend mine life. Deposit is open at depth and along strike further drilling can expand resource. Large near mine discovery potential wild cat drilling by MMG has returned ore grade intersections in three separate areas. Regional upside Near mine upside

26 25 Processing Facility will Unlock Value A Kalkaroo multi purpose processing plant able to process ore from multiple projects. This improves development prospects and unlocks value in several nearby Copper Gold Cobalt projects. Kalkaroo 622,000 t Cu 2m ounces Au Portia + North Portia 101,000 t Cu 235,000 oz Au Kalkaroo Central Processing Facility New Discoveries: Eurinilla, Wilkins, Croziers and??? Mutooroo 192Kt tonnes Cu 17.5m kg Co Refer to table at the end of presentation for relevant JORC resources on which these numbers are based.

27 26 Project Pipeline

28 27 Exceptional Exploration Potential. > 8,000 km 2 contiguous prospective tenement holding in Curnamona Craton. Highly prospective terrain for copper gold mineralisation with strong analogies to Central African Copper Belt. 8 new JORC resources drilled in 8 years plus several new areas of copper gold and iron ore mineralisation discovered.

29 28 PhillipCapital Valuation on Kalkaroo PhillipCapital has valued the Kalkaroo copper gold project alone at $59 million a large discount to the project NPV (as referenced in the extract below). HAV s current market Capitalisation is well below the $59 million. This leaves significant upside/growth in project valuation as HAV progresses Kalkaroo towards producer status. Source: PhillipCapital research published on 18/3/15, authored by Terra Studio.

30 29 Significant Upside Re valuation Possible Havilah has a low market cap in relation to its measured and indicated copper equivalent resource base. Resource data based on ASX releases to 25/03/15. Copper equivalent resource = copper tonnes + gold ounces x , assuming average gold and copper prices for first 3 months 2015 and same metal recoveries

31 30 Share Price Performance Share Price Volume Since Inception 52 Week Since Inception 52 Week High $2.72 $0.34 1,058, ,000 Low $0.06 $0.09 1,000 31,000 Average 76,000 71,000

32 31 A Study of Success NFM Strong analogies with Adelaide based North Flinders Mines arguably the most successful junior gold resource company in the s. 200 X Capital Appreciation +Dividends Highly prospective land holding in the Tanami region (cf Havilah s 8,000 km 2 contiguous tenements in Curnamona Craton) Started with a modest mine at The Granites: first year production 65,000 oz gold with a small Resource (cf Portia) Mined: 7 million ounces Current production: 345,000 oz pa Ore Reserves 10 times larger than original Resource (cf upside in the Curnamona Craton) Callie open pit more than 15 years ago

33 32 History Repeats Havilah ? Highly successful explorer drilled out 8 JORC resources in 8 years, discovering >900,000t copper and >2.4 million ozs gold Kalkaroo will be a year copper gold mine producing >33Ktpa copper and >100,000 ozs gold Highly prospective >8,000 km 2 tenement holding that has attracted China Min Metals Group as an exploration partner Portia gold mine a modest start to mining Dr. Chris Giles had personal involvement with NFM. Havilah aims to implement similar successful exploration and mining development strategies. Callie open pit more than 15 years ago Callie open pit more than 15 years ago

34 33 Future Funding of Operations Signed mandate letter with major international resource bank: $6 million loan facility. Hedging program of 10,000 ounces of future Portia gold production. Financing facility helps to ensure: Cash flow from Portia gold production. Contingency plan for access to funds for unforseen expenditure. Preserves other HAV funds to advance other project work (Kalkaroo, Mutooroo, North Portia). Prospect of Portia gold production cash flow expected second half 2016.

35 34 Exceptionally Low Discovery Cost Cash Exploration & Evaluation Expenses $3,196 $3,638 $4,836 $4,124 per annum 000 Cost per JORC gold 1 oz US$ $3 $3 $4 $8 Worldwide gold discovery cost per oz June 2012 US$/oz 2 $31 Australia gold discovery cost per oz June 2012 US$/oz 2 $76 Total Administrative Cost per annum $1,314 $1,228 $1,576 $1, Total Administrative Cost $ per oz 1 $ JORC Resource calculated on a gold equivalent basis for copper and iron ore 2 Source: Data extract from Annual Reports

36 35 In Summary Portia gold mine is underway Funded with minimal equity dilution and low technical risk. Prospect of substantial cash generated in Kalkaroo copper gold project is next Robust economics 34,000 tonnes copper and 104,000 ozs gold per annum over 14+ year mine life. Will unlock value in several other projects (North Portia, Mutooroo). Highly prospective, contiguous tenement package Numerous copper, gold and other prospects waiting to be drilled. Geology is favourable for world class discoveries. High leverage to the resource cycle Commencing mining driven growth at the bottom of the resource cycle.

37 36 Additional Supporting Slides

38 37 Copper Gold Resource Metal Inventory Copper: 915,500 tonnes (Kalkaroo + Mutooroo + North Portia) Gold: 2,400,000 ozs (Kalkaroo + Mutooroo + Portia + North Portia) Cobalt: 17.5 M Kg (Mutooroo) Molybdenum: 8.45 M Kg (Kalkaroo + North Portia) Project* Resource Category Tonnes (Mt) Copper (%) Gold (g/t) Molybdenum (ppm) Cobalt (%) Contained Copper (tonnes) Contained Gold (ounces) Contained Moly (kg) Contained Cobalt (kg) Gold Cap Measured 18,690, ,000 Kalkaroo 1 CuAu Measured 85,890, ,500 1,561,000 CuAu Indicated 38,620, Added to above Added to above Mo Inferred 4,500, ,768,000 Portia 4 Inferred 720, ,000 North Portia 3 Inferred (sulphide) 8,610, Added to above Added to above Added to above Indicated (supergene) 2,750, , ,500 5,680,000 Indicated (supergene Mo only) 7,732, Added to above Mutooroo 2 Measured sulphide 4,149, ,000 92,700 17,540,000 Indicated sulphide 1,697, Added to above Inferred sulphide 6,683, Added to above Added to above Added to above Added to above Added to above Measured oxide 598, Total all projects All categories 172,908, ,500 2,400,000 8,450,000 17,540,000 * Based on JORC resources, details released to ASX on : 1. 29/2/ /10/ /10/ /6/09

39 38 Iron Ore Resource Inventory Maldorky: 147,000,000 tonnes of 30.1% Fe Grants: 304,000,000 tonnes of 24% Fe Total: 159,000,000 tonnes of premium grade iron ore product Project* Resource Category Tonnes (Mt) Iron (%) Iron tonnes Est Yield Maldorky 1 Indicated 147,000, % 59,000,000 40% Grants 2 Inferred 304,000,000 24% 100,000,000 33% Total all projects All categories 451,000, ,000,000 * Based on JORC resources, details released to ASX on : 1. 10/6/ /12/12, applying an 18% cut off in both cases