Manica Gold Project Mozambique March 2017 Xtract Resources PLC An - - PowerPoint PPT Presentation
Manica Gold Project Mozambique March 2017 Xtract Resources PLC An - - PowerPoint PPT Presentation
Manica Gold Project Mozambique March 2017 Xtract Resources PLC An Important Disclosure The information contained in this document, including any information and opinions contained or discussed in any accompanying oral presentation, question and
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Xtract Resources PLC
An Important Disclosure 1
Aerial view of Maputo
- Stable African Economy
- Upgrading of infrastructure underway
- Mature mining legislation, industry and
culture
- GDP >5% - high growth rate
- Purchase from Auroch concluded
- Definitive Feasibility Study Completed
- Economically viable project
- Low cost and lead time to production
- Low operation cost
- Metallurgical issues resolved
- Immense future exploration potential
Manica Gold Project - Mozambique
Why? 2
- Favourable political and legal environment
- Multi-Party Democracy since 1994
- Stable Southern African jurisdiction
- Mature mining legislative regime
- No local ownership requirements
- Upgrading of National Ports and Power
and other infrastructure underway
- High GDP (>5%) growth rate
Location of Manica Project
Mozambique
Good Place To Work 3
Manica Mineral Concession – 3990C
- Situated in the Odzi-Mutare-Manica Greenstone Belt. Over 2 million oz of gold
previously mined
- 43,6 km² concession
- 1,262 m oz SAMREC compliant gold resources
- Only 10% of concession drill tested
- Definitive Feasibility Study of open pit mine completed
Manica Gold Project
Established Area 4
- Extraction Method – Conventional Open Pit
- Life of Mine – 7 years
- Total Ore Tonnes Processed – 3.3Mt (42 ktmp)
- Total Ounces Produced – 215 koz (~31 kozpm)
- Recovered Grade – 2.62 g/t
- Gold Price – US$1,262 per oz Project Payback – 2 years
- IRR – 41.1%
- NPV – US$42 million (@8.4% discount rate)
- Capex Expenditure – US$43.68 million
- Direct Cash Cost – US$556/oz
- All inclusive sustainable cost (breakeven) – US$862/oz
Manica Gold Project
DFS – Key Financial Parameters 5
- 1.262 moz SAMREC compliant Au Resources (782koz measured and indicated)
- Low cost, near-term ready-to-build production
- Metallurgical risk solved by fine grinding and pressure oxidation
- Additional nearby prospects for further exploration success, namely
- Guy Fawkes, Boa Esperanza, Dot’s Luck, all have declared resources.
- Publically released information outlines a mine plan based on Fair Bride only,
producing approx. 215Koz over 7 years
- Further optimisation is possible and ongoing
Manica Gold Project
The Focus 6
* Xtract Resources PLC. An Independent Technical Report on the Mineral Resources of the Fair Bride Gold Deposit on the 3990C Mining Concession, Manica Province, Mozambique, Minxcon, 04 March 2016
Main deposit – Fair Bride
- Situated in the Odzi-Mutare-Manica Greenstone Belt of Mozambique
- 1.262moz SAMREC compliant Au Resources (782koz measured and indicated)
- Well drilled - a total of 229 drill holes (31,662m) has been completed on the Fair Bride deposit
accounting for 60% of the total drilling on the Manica project. A total of 137 holes comprise the resource
Fair Bride
Overview 7
Lower Risk – Lower Cost – Quick into production
- Elimination of underground technical mining risk and gold locked up in the crown pillar
- Instead of 4 years open pit and 8 years underground mining; expectation is 7 years of
- pen pit mining with a 7.2 strip ratio milling 42ktpm
- Increases the time and opportunity to fully identify upside
- Open pit grade is expected to be 2.62g/t, recovering app 31koz per annum at an
all-in cost of $862/oz
- Smaller tailings dam
Lower risk, higher margins whilst maintaining optionality
Fair Bride
Simple Project 8
- Three types of ore: Oxide; Transitional; and Sulphide
- Several test campaigns completed by SGS, Maelgwyn,
- Oxide Zone:
- standard CIL will result in final recoveries achievable of 95%
- Sulphide Zone:
- Floatation followed by ultra-fine grinding (-14µm) and oxidation of the float
concentrates will results in a final circuit recovery of 77.1%
- Transitional Zone (mixture of Oxide and Sulphide ore):
- will require a combination of the above process as it contains both oxide and
sulphide ores, with the addition of a suphurdiser resulting in recoveries of 79.2%
- Processing Strategy:- the oxides are mined at the start moving into the transitional and
sulphide ores thereafter, to keep different ores separate as far as possible
Fair Bride
Solving Metal Recovery 9
Fair Bride
Process Flow Design 10
Manica Plant Processing Flow Schematic
Transitional & Sulphides
Jaw Crusher Milling & Classification RoM Float TSF UFG Mill Feed Stockpile RoM Pad
UFG Thickener Float Tail Thickener Tails Thickener
Oxides
Vibrating Screen
u/s
Secondary Cone Crushers
- /s
Tertiary Cone Crusher
middlings
Grizzly
- /s
u/s Loaded Carbon
Carbon Regeneration
Regenerated Carbon
CIL Acid Wash & Elution
Loaded Eluant
Electrowinning & Smelting
Barren Eluant
Gold Doré
- Gold price USD 1262/oz
- 480,000 of ore tonnes per annum mined
- 7 years of mine life
- Average grade 2.72 g/t mined
- Stripping Ratio 7.2:1
- All up break even cost(C3) USD862/oz
- Capital USD43.68 million
- NPV at 8.5% discount USD42 million
Fair Bride
Base Case 11
Fair Bride
Optimised Pit Views
- Before Geological Overview
- After Initial Mine Key Parameters
DFS Optimised DFS Design
12
- The mineralised strike of the ore body is
approximately 1,040m
- Well understood mineralization and geological
model shows excellent continuity
- Bounded by a fault in the west and low grade
mineralization in the east, open on dip
- Mainly pre-drilling exploration has taken place
along the southern share zone between Dot’s Luck and Fair Bride and further East (14km of potential gold bearing strike)
- Targeting indicates that mineralization extends
along strike to the east
Fair Bride
Insight 13
Manica Project area- 5km from town in next river valley Project area extending west – approximately 85% of tenement remains unexplored Good gravel road Area of mining is relatively unhindered Processing Facility Site Mining and Engineering workshop and office
Fair Bride
Before optimised pit view 14 This is how it looks
Drilling has targeted the below resources: Dots Luck (750m strike, 100m depth)
- 43 drill holes for 5000m, of which 38 holes
comprise the resource
- Bounded by faults on the west and east, but
- pen on dip (off-set of the Northern shear
zone) Guy Fawkes (1350m strike, 120m depth)
- 98 drill holes for 14000m, of which 54
holes comprise the resource
- Bounded by a fault in the west open to the
east and on dip Boa Esperanza (100m Strike)
- 12 drill holes for 1000m, of which 4 holes
comprise the resource
- Limited extensional exploration on strike has
taken place
Manica Potential
Other Projects 15
Regional Exploration Potential (within current concession)
- Only 10% of the 4,300 ha has been drilled
- Mainly pre-drilling targeting has taken place along the southern and northern share zone between
Dot’s Luck and Fair Bride and further East (14km) and between Guy Fawkes and Boa Esperanza (10km) respectively
- In 2014 Auroch identified 36 new exploration targets through geophysical and surface mapping
- Top Ten classified in the following three styles of mineralisation:
- Guy Fawkes (7) - includes quartz vein hosted-, quartz stock-works hosted-, altered talc
carbonate schist hosted- and deformed banded iron formation (BIF) hosted- deposits, with or without aplite, in proximity to major shear zones;
- Boa Esperança (2) - comprises deformed metapelites with aplite invasion in proximity
to major shear zones. The Boa Esperança style of mineralisation is somewhat wider than the Guy Fawkes style in general; or
- Dot’s Luck/Fair Bride (1) - includes sheared metasediments within mafic schist in
proximity to major shear zones.
Manica
Exploration Potential 16
Regional Exploration Potential
Manica
Exploration Potential 17
Top Ten
Manica Gold Project Exploration Target**
Tonnes (Kt) Au (g/t) Contained Au (oz) 250 – 1,500 2.0 – 4.0 360,000 – 1,795,000
**The potential quantity and grade of the Exploration Target is conceptual in nature, and there has so far been insufficient exploration to estimate a Mineral Resource
Compelling Investment Case
Global Gold Developing Mines Relative Strengths 18
- Simple open pit – low initial cost and lead time
- Alluvial Mining Income Generation whilst mine construction in progress
- Good mining jurisdiction
- Major exploration potential and Fair Bride depth continuity
- At end of first operation, paid for plant available for new ore feed
- Close to South Africa, good source of contractors for outsourcing open-pit
and process plant
Thank you
4th Floor, 2 Cromwell Place, South Kensington London, United Kingdom, SW7 2JE T: +44 (0) 20 3416 6471 F: +44 (0) 20 7589 7806 E: info@xtractresources.com www.xtractresources.com