gold 2013 sydney - atlantic gold asx:atv
Post on 16-May-2015
160 Views
Preview:
DESCRIPTION
TRANSCRIPT
1
PIPELINE OF GOLD PRODUCTION IN NOVA SCOTIA
… applying Australian expertise to an overlooked Canadian gold province …
ASX:ATV
www.atlanticgold.com.au
October 2013
2
Fully paid shares 818.4M Partly paid shares (20 cents paid to 9 cents) 30.3M Market Cap @ 2.5 cents/share: $20.5 million
CAPITAL STRUCTURE
THE COMPANY
3
• Track record of gold discovery and production in
Western Australia
• Focused on the same, but now in the Meguma
Goldfield – with OPEN PIT perspective
• Established 450,000 oz Reserves within a
Resource inventory of 1.2 million ounces
• Project pipeline:
Touquoy – next step: development
Cochrane Hill – next step: feasibility study
Exploration lands – next step: discovery
OVERVIEW
4
5
Cochrane Hill
6
TOUQUOY
Measured & Indicated 10.1 1.5 480,000
Inferred 1.6 1.5 77,000
TOUQUOY WEST
Indicated 0.9 1.9 54,000
Inferred 0.6 2.2 45,000
COCHRANE HILL Indicated 4.5 1.8 251,000
Inferred 5.6 1.6 298,000
TOTAL M&I 15.5 1.6 785,000
TOTAL INF 7.8 1.7 420,000
MINERAL RESOURCES contained million tonnes grade g/t ounces gold
7
TOUQUOY
Proved 2.49 1.48 118,000
Probable 7.10 1.47 336,000
TOTAL 9.59 1.48 454,000
ORE RESERVES
contained million tonnes grade g/t ounces gold
8
TOUQUOY
9 Touquoy geology and drillhole locations
10
Touquoy deposit section 21625mE
11
NQ DIAMOND CORE – HOLE MR-05-084
121–122 m : 2.16 g/t
122–123 m : 9.23 g/t
123–124 m : 8.98 g/t
Argillite host rock with no quartz veins
TOUQUOY GOLD PROJECT
12
TOUQUOY GOLD PROJECT
Photomicrographs of gold grains in MR-05-084 core at 122-123 m Field of view 1 mm. Light grey = arsenopyrite, dark grey = silicates
13
Low strip ratio – 2.5:1
Soft ore – BWI ~ 10
Excellent metallurgy – 93.5% (70% gravity)
Coarse grind - 150µm
Low reagent consumption – 0.4kg/t CN
Excellent CN detox
No acid rock drainage – carbonate, low sulphide
Grid power – coal-fired – 5km to connect
Excellent infrastructure
Keen local and homecoming workforce
No on-site accommodation required
Supportive government
TOUQUOY’S ADVANTAGES
14
15
16
17
Ore reserves 9.59 Mt @ 1.48 g/t
Production 422,000 oz
Mine life 5.0 years
Ave annual production 84,000 oz pa
Throughput 2.0 Mtpa
Initial capex C$140 million
Cash operating costs US$560/oz
Gold price US$1300/oz
Net cash surplus (pre-tax) C$172 million
Payback period 27 months after first gold
Project NPV (8%, pre-tax) C$91 million
Project IRR 30%
TOUQUOY SUMMARY FINANCIALS
18
ENVIRONMENTAL ASSESSMENT APPROVAL FEASIBILITY STUDY COMPLETED
MINERAL LEASE GRANTED
ACQUIRE REMAINING SURFACE TITLES
FINAL PERMITTING
Industrial Approval – submitted and under review
PROJECT FINANCING
In progress
TOUQUOY GOLD PROJECT STEPS TO PRODUCTION
19
COCHRANE HILL
20
Cochrane Hill
21
COCHRANE HILL
Indicated 4.5 1.8 251,000
Inferred 5.6 1.6 298,000
TOTAL 10.1 1.7 549,000
MINERAL RESERVES
contained million tonnes grade g/t ounces gold
22
23 Cross section 3200E
24
CONCEPTUAL FINANCIALS TOUQUOY + COCHRANE HILL
Throughput
Total production
Ave annual production
Plant
Mine life
Pre-production capex
Total LOM capex
Cash operating cost
Gold price
Net cash surplus (pre-tax)
Payback period
NPV (8%, pre-tax)
Internal rate of return
19.0 Mt @ 1.6 g/t for 970 koz contained
900,000 ounces
93,000 ounces
2.0 Mtpa relocated to CH after Touquoy
9.7 years
C$140 million
C$254 million
US$610 per ounce
US$1,300 per ounce
C$368 million
27 months after first gold pour
C$170 million
31%
25
26
REGIONAL EXPLORATION
27
WHY NOVA SCOTIA: • Meguma Terrane hosts more gold occurrences
per unit area than any other goldfield • It’s unexplored for shale-hosted disseminated
gold deposits – like Touquoy
• Mega deposits of this general type occur globally
• Very high proportion of exploration dollars go into the ground
• Politically stable
EXPLORATION
28
29
30
Gold production Nova Scotia 1861-2011 Total production 1.4Moz Gold Production - Nova Scotia 1861 - 2011
-
5,000
10,000
15,000
20,000
25,000
30,000
35,0001860
1863
1866
1869
1872
1875
1878
1881
1884
1887
1890
1893
1896
1899
1902
1905
1908
1911
1914
1917
1920
1923
1926
1929
1932
1935
1938
1941
1944
1947
1950
1953
1956
1959
1962
1965
1968
1971
1974
1977
1980
1983
1986
1989
1992
1995
1998
2001
2004
2007
2010
Year
Ou
nces
31
32
33
34
AT TOUQUOY: • Grant of Industrial Approval – Q4/13
• Secure project financing - Q1/14
• First gold pour – Q4/15 AT COCHRANE HILL: Complete drill-out, commence Feasibility Study ELSEWHERE MEGUMA: Continue regional exploration
LOOKING AHEAD
35
36
DISCLAIMER
All statements contained in this presentation, other than statements of historical fact, that address future timings, activities, events and developments that the Company expects, are forward looking statements. Although Atlantic Gold NL, its subsidiaries, officers and consultants believe the expectations expressed in such forward looking statements are based on reasonable expectations, investors are cautioned that such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward looking statements. Factors that could cause actual results to differ materially from forward looking statements include, among other things, commodity prices, continued availability of capital and financing, timing and receipt of environmental and other regulatory approvals, and general economic, market or business conditions.
ATTRIBUTION
Mr Neil Schofield (MSc. MAusIMM) is a Qualified Person as defined in National Instrument 43-101, and has reviewed and approved the contents of this presentation.
The resource estimates for Touquoy described in this presentation were completed by Mr Neil Schofield, a principal of Hellman and Schofield Pty Ltd. Mr Schofield is a Member of the AusIMM and qualifies as a Competent Person in respect of the 2004 Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code) by virtue of having sufficient experience which is relevant to the Touquoy style of mineralisation and deposit type. Mr Schofield has consented to the inclusion of this information in the form and context in which it appears in this presentation.
The geological information in this presentation relating to Mineral Resources has been compiled by Mr Wally Bucknell who is a director of Atlantic Gold NL and a Member of the Australasian Institute of Mining and Metallurgy (AusIMM). He has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration to qualify as a Competent Person in respect of the 2004 Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code). Mr Bucknell has consented to the inclusion of this information in the form and context in which it appears in this presentation.
top related