1.25 Moz HIGH - GRADE, SHALLOW - WA GOLD PROJECT PROGRESSING TO DEVELOPMENT RIU PRESENTATION FEBRUARY 2019 - Calidus Resources Limited
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1.25 Moz HIGH - GRADE, SHALLOW WA GOLD PROJECT PROGRESSING TO DEVELOPMENT RIU PRESENTATION FEBRUARY 2019 ASX:CAI
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
PROGRESSING TOWARDS
PRODUCTION
SNAPSHOT
• 1.25 Moz resource at 1.83 g/t Au • PFS will enable rapid transition to
including 1.1Moz at 2.37g/t Definitive Feasibility Study (DFS)
• 795,000oz of Indicated Resources • Environmental monitoring well advanced,
(64%) applications for permits to be submitted
Q3 2019
• 203% increase in resource since
listing June 2017 (412,000oz) • Significant exploration upside both
adjacent to existing resources and in
• Fully funded Pre-feasibility Study (PFS) greenfields areas on 781 km2 tenement
commenced, completion due Q3 2019 package being targeted in 2019
3
PAGE 3 CORPORATE PRESENTATION FEBRUARY 2019
DRIVING DEVELOPMENT PROGRESS A CENTURY OF EXPERIENCE IN PRECIOUS- METAL PROJECT DEVELOPMENT EXECUTIVE MANAGEMENT DAVE REEVES FERNANDO MOUTINHO JANE ALLEN MANAGING DIRECTOR PROJECT MANAGER GEOLOGY MANAGER 30 years’ mining experience in 30 years’ international experience 30 years’ international mining Australia, Africa and Europe. Previous with GRD Minproc, Sheffield experience with Anglogold Ashanti, roles at GCM, Delta Gold, Zimplats Resources, Syrah Resources, New Resolute Mining, Avion Gold and European Metals Holdings. Century Resources Corporation and GCM Instrumental in the progression of four mining projects through feasibility to project development BOARD MARK CONNELLY ADAM MIETHKE KEITH COUGHLAN NON-EXECUTIVE CHAIRMAN NON-EXECUTIVE DIRECTOR NON-EXECUTIVE DIRECTOR Over 30 years’ resource industry Over 15 years’ experience in exploration 30 years’ experience in stockbroking experience in CEO and Managing and mine geology, funds management and funds management on ASX, AIM Director roles across multiple and corporate advisory. Previous and TSX. Currently the MD of jurisdictions including Australia, West technical and corporate roles at Rio European Metals Holdings and Africa, North America and Europe. Tinto, Snowden, Regent Pacific Group recently retired as chairman of Talga Currently Non-Executive Chairman at and Argonaut Resources West African Resources Ltd PAGE 4 CORPORATE PRESENTATION FEBRUARY 2019
CORPORATE OVERVIEW
CAPITAL STRUCTURE AND SHAREHOLDERS
CAPITAL STRUCTURE
1,419 WELL FUNDED
SHARES ON ISSUE
Million • Cash reserves of $3.9m
MARKET CAP $38.3 • Investment in Pacton Gold (TSX: PAC) valued at $2.9m1
(undiluted at A$0.027) Million
• 2.5c exercisable options to raise $2.2m due June 2019
CASH $3.9
(as at 31 Dec 2018) Million STRONG CORPORATE MINING SUPPORT
LISTED INVESTMENTS $2.9 • Keras Resources – London listed exploration company2
Million
• Alkane Resources – ASX listed Australian domiciled gold
ENTERPRISE VALUE $31.5 producer with c.$80m in cash reserves and investments5
Million
OPTIONS 254 • Novo Resources – Canadian listed, well funded Pilbara Gold
(will raise $6.9m if exercised) Million3 explorer with nearby gold properties and JORC resources
PERFORMANCE 275 TIGHTLY HELD SHARE REGISTER
SHARES Million4
• Over 15% Tier 1 institutional ownership
KEY SHAREHOLDERS • Top 20 hold 70%
KERAS RESOURCES2
32.3%
(AIM:KRS)
ALKANE RESOURCES
10.2% 1. Using share price of $0.26 as at 4 Feb 2019
(ASX:ALK) 2. CAI board and management own 18 % of Keras
3. 118m @ 2.5c, 50m @ 2.0c, 70m @ 3.5c and 16m @ 3.0c
NOVO RESOURCES
4.0% 4. Performance Shares vest on completion of a positive PFS
(TSX: NVO) 5. ALK cash balance as at 31 December 2018
PAGE 5 CORPORATE PRESENTATION FEBRUARY 2019
WARRAWOONA GOLD PROJECT LOCATED IN AREA WITH PROVEN RESOURCE POTENTIAL PAGE 6 CORPORATE PRESENTATION FEBRUARY 2019
CONTROL OF PROVEN GREENSTONE BELT
780KM 2 OF CONTIGUOUS TENURE
780km2 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
KLONDYKE DEPOSIT 76% INCREASE IN GLOBAL RESOURCE BASE TO 1.15Moz Klondyke Cut-off Indicated Inferred Total (0.5g/t cut-off summary) Au g/t Mt g/t Au Ozs Mt g/t Au Ozs Mt g/t Au Ozs Klondyke Open Pit 0.5 12.3 1.69 670,000 5.5 1.47 260,000 17.8 1.62 930,000 Klondyke Underground 2.0 0.8 3.3 80,000 1.4 3.03 140,000 2.2 3.13 220,000 Total 13.1 1.78 750,000 6.9 1.79 400,000 20.0 1.79 1,150,000 Deposit Cut-off Indicated Inferred Total (0.8g/t cut-off summary) Au g/t Mt g/t Au Ozs Mt g/t Au Ozs Mt g/t Au Ozs Klondyke Open Pit 0.8 8.4 2.19 590,000 3.1 2.16 210,000 11.4 2.19 800,000 Klondyke Underground 2.0 0.8 3.3 80,000 1.4 3.03 140,000 2.2 3.13 220,000 Total 9.1 2.21 670,000 4.5 2.44 350,000 13.6 2.23 1,020,000 PAGE 8 CORPORATE PRESENTATION FEBRUARY 2019
KLONDYKE DEPOSIT HIGH GRADE MINERALISATION REMAINS OPEN AT DEPTH PAGE 9 CORPORATE PRESENTATION FEBRUARY 2019
UPDATED MINERAL RESOURCE CONTINUOUS OUTCROPPING RESOURCE OPEN IN ALL DIRECTIONS PAGE 10 CORPORATE PRESENTATION FEBRUARY 2019
REGIONAL UPSIDE – LARGELY UNTESTED
MULTIPLE HIGH GRADE SATELLITE TARGETS, WITHIN 10KM OF KLONDYKE
Cut-off Indicated Inferred Total
Deposit
Au g/t Mt g/t Au Ozs Mt g/t Au Deposit
Ozs Mt Cut-off
g/t Au OzsIndicated Inferred Total
Copenhagen 0.5 0.2 5.27 36,000 0.1 1.84 3,000 0.3 Au g/t
4.65 Mt39,000 g/t Au Ozs Mt g/t Au Ozs Mt g/t Au Ozs
Coronation 0.5 - - - 0.5 2.19 Copenhagen
34,000 0.5 0.5 2.19 0.234,0005.27 36,000 0.1 1.84 3,000 0.3 4.65 39,000
Fieldings Gully 0.5 0.2 1.65 9,000 0.3 1.62 Coronation
16,000 0.5 0.5 1.63 - 24,000 - - 0.5 2.19 34,000 0.5 2.19 34,000
Total 0.4 3.70 45,000 0.9 Fieldings
1.96 53,000 Gully
1.3 0.5 0.2
2.53 98,000 1.65 9,000 0.3 1.62 16,000 0.5 1.63 24,000
Total 0.4 3.70 45,000 0.9 1.96 53,000 1.3 2.53 98,000
PAGE 11 CORPORATE PRESENTATION FEBRUARY 2019PRE- FEASIBILITY STUDY INPUTS
RAPID PROGRESSION OF PFS, SCHEDULED FOR Q3 2019 COMPLETION
METALLURGICAL TESTWORK HYDROLOGICAL
• High gold recoveries (96.7% leach • Initial water monitoring bores drilled
recoveries), conventional processing & hydrological model completed –
methods & variability testing underway production bores to be drilled in 2019
HERITAGE GEOTECHNICAL
• Heritage clearance work completed • Majority of geotechnical drilling
over area of disturbance complete & analysis underway
ENVIRONMENTAL TAILINGS
• Flora and fauna studies • Thickening testwork and geotechnical
commenced as have discussions testing complete, further confirmatory
with regulator & MAF/PAF testing work planned, initial designs &
locations finalised
PAGE 12 CORPORATE PRESENTATION FEBRUARY 2019WELL SERVICED BY EXISTING INFRASTRUCTURE
ASSISTS WITH RAPID COST EFFECTIVE DEVELOPMENT
2 HOURS DRIVE FROM PORT
HEDLAND ON SEALED ROAD MINING REGISTRAR LOCATED
IN TOWN
(AUSTRALIA’S LARGEST PORT)
LOCATED 20KM SOUTH EAST
OF MARBLE BAR
SEALED AIRSTRIP
• All weather, council maintained road from IN MARBLE BAR
Marble Bar to leases
• Access to trucked LNG from NW Shelf
• 100 rooms available in town
• All weather airstrip
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PAGE 13 CORPORATE PRESENTATION FEBRUARY 2019DEVELOPMENT TIMELINEEXPLORATION TIMELINE PARALLEL WORKSTREAMS TO PROVIDE CONSISTENT NEWSFLOW PAGE 14 CORPORATE PRESENTATION FEBRUARY 2019
AUSTRALIAN OPEN PIT DEVELOPERS
ONE OF FEW HIGH GRADE INDEPENDENT DEVELOPMENT PROJECTS
UNDEVELOPED OPEN-PIT WA PROJECTS (>1Moz Au)1
2.6
* Bubble size represents Enterprise Value
2.4
Yandal, EAR
Warrawoona (0.8g/t
2.2 Au cut-off grade)
Resource Grade (g/t Au)
2.0
Warrawoona
1.8 (0.5 g/t Au
cut-off grade)
1.6 Leonora, KIN
Bombora, BRB
1.4
Karlawinda, CMM
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 18 February 2019
PAGE 15 CORPORATE PRESENTATION FEBRUARY 2019NEAR- TERM DEVELOPMENT
VALUE GROWTH ASSOCIATED WITH DEVELOPMENT
UNDERVALUED COMPARED TO DEVELOPMENT PEERS
200 Completed Feasibility Study
175
175 Prior to Feasibility Study
150
EV/Resource (A$/oz)
123
125 111
98
100 Average = $86/oz
73
75
45 40
50
28 24
25
0
BGL
BGL EXU
EXU VAN
VAN EAR
EAR BRB
BRB CMM
CMM GMD
GMD CAI
CAI KIN
KIN
Key Project Bellevue Tampia Trident Yandal Bombora Karlawinda Ulysses Warrawoona Leonora
Resource Resource Resource
Stage Feasibility Feasibility PFS Commenced Financing Feasibility PFS Commenced
Development Development Development
Mkt Cap (A$m) 239 85 90 143 86 51 36 38 31
EV (A$m) 268 83 91 138 79 50 31 342 25
Resource (koz) 1,530 675 825 1,405 1,084 1,114 760 1,248 1,023
Grade (g/t) 11.8 1.8 3.1 2.1 1.4 1.1 3.3 1.8 1.4
Open-pit &
Mine Type Underground Open-pit Underground Open-pit Open-pit Open-pit Underground Underground Open-pit
Potential
1. Data as at 18 February 2019
2. Calidus EV doesn’t account for listed investments of c.$2.9m
PAGE 16 CORPORATE PRESENTATION FEBRUARY 2019WEST AUSTRALIAN 1.25Moz
HIGH - GRADE, SHALLOW GOLD
DEVELOPER
REASONS TO INVEST
• Critical mass for a standalone •Located in close proximity to high
development achieved quality infrastructure and operating
mines
• High grade open pit outcropping
resource •Greenfields exploration has
significant potential for new
• Excellent metallurgy discoveries given lack of modern or
• Experienced mine development systematic exploration
team •Uniquely positioned as one of few
• Fully funded through to remaining high grade open-pit gold
Pre-feasibility Study completion development companies on the ASX
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