A Step-Change at Nullagine

Transcription

1 A Step-Change at Nullagine Building a +100kozpa Australian gold producer Peter Cash, CEO Corporate Presentation May

2 Disclaimer & Competent Person s Statement Disclaimer This presentation contains only a brief overview of Millennium Minerals Limited ( Millennium ). The contents of this presentation, including matters relating to the geology of Millennium s projects, may rely on various assumptions and subjective interpretations which it is not possible to detail in this presentation and which have not been subject to any independent verification. This presentation contains a number of forward-looking statements. Known and unknown risks and uncertainties, and factors outside of Millennium s control, may cause the actual results, performance and achievements of Millennium to differ materially from those expressed or implied in this presentation. To the extent permitted by law, Millennium does not warrant the accuracy, currency or completeness of the information in this presentation, nor the future performance of Millennium, and will not be responsible for any loss or damage arising from the use of information. The information contained in this presentation is not suitable for detailed investigation or analysis of any particular issue. Current and potential investors and shareholders should seek independent advice before making any investment decision in regard to Millennium or its activities. Competent Person s Statement The information in this presentation relating to exploration results from the Nullagine Project has been extracted from various Company announcements and are available to view at The information in this presentation relating to Mineral Resources or Ore Reserves is extracted from the announcements titled: 1. Mineral Resources and Ore Reserve Statement dated 15 February 2017; 2. Growth strategy gains momentum with maiden underground Resource dated 7 August 2017; 3. Outstanding high-grade intercepts strengthen prospectivity of Bartons open pit and underground dated 2 November 2017; 4. New high-grade oxide discovery at Yates as Bartons underground delivers more exceptional intercepts dated 21 November 2017; 5. Further high-grade results highlight outstanding growth potential at Nullagine dated 23 November 2017; 6. New high-grade intercepts from emerging Redbeard discovery at Nullagine dated 12 December 2017; 7. Bartons underground resource upgrade and maiden reserve paves way for development of first underground mine at Nullagine dated 8 January 2018; 8. Millennium continues outstanding run of exploration success with impressive drilling results dated 22 January 2018; and 9. Millennium poised to significantly extend mine life at Nullagine as newly-identified processing option cuts costs dated 5 February 2018, and are available to view at 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 all material assumptions and technical parameters underpinning the results and estimates in the relevant market announcement continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Person s findings as presented have not been materially modified from the original market announcement. 2

3 Millennium Investment Overview 100%-owned Nullagine Gold Project, Pilbara region of WA More than 400,000oz produced since start-up in 2012 average annual production of 75-80kozpa Debt-free and generating strong cash-flows Focus now on transitioning to larger, more sustainable ore sources to drive production increases and lower costs 1.12Moz Resource inventory to underpin significant increase in production and mine life Key component of Expansion Study completed confirming viable expansion pathway by treating extensive sulphide Resource inventory Selection of processing flowsheet moves Millennium closer to strategic target of +100,000ozpa and +5-year mine life Outstanding exploration potential both for new shallow oxide discoveries and deeper deposits with underground potential 3

4 Corporate Overview Shares on Issue Market Cap (A$0.17/share) 792.0M ~A$135M Key Shareholders Cash & Bullion (31 Mar 18) A$23.3M ASX Index All Ords Debt NIL ASX Code MOY IMC Group 47.8% Oppenheimer Funds 2.1% Old Mutual 1.8% Mr David Teoh 1.6% Mr Andrew L Rouse 1.1% Other 44.8% Share Price Board and Management Key Consultants and Contractors Greg Bittar Peter Lester Tim Kennedy Bruno Lorenzon Peter Cash Dean Will Ray Parry Non-Executive Chairman Non-Executive Director Non-Executive Director Non-Executive Director Chief Executive Officer Chief Operating Officer Chief Financial Officer Ausenco MineScope GBF Underground Ausdrill Geotechnical Entech 4

5 Millennium Corporate Video *Note 3D Animated Flythrough refer to 5

6 Our Growth Strategy Delivering Shareholder Value Nullagine Operations Evolving mining strategy Consistent 75-80koz oxide production Investing in future growth to achieve production rate of ~100kozpa from Dec 18 Exploration Substantial ongoing exploration commitment Continuing to replace mined ounces and extend life initial target >5-year mine life Positive Expansion Study Unlock the value of the significant Sulphide Mineral Resource Low CAPEX/OPEX addition to current CIL plant Long-lead items ordered Moving Underground Development of first UG mine at Bartons underway UG assessment of multiple deposits underway 6

7 Millennium Minerals EXPLORATION NULLAGINE OPERATIONS POSITIVE EXPANSION STUDY MOVING UNDERGROUND 7

8 Nullagine Operations Overview Five operating Mining Centres with a sixth Mining Centre now emerging: 5 +40km strike length and +30 targets Strong oxide production and cash-flow: Production for CY2018 expected to be sourced primarily from Golden Eagle (320koz Resource), supplemented by high-grade oxide feed from Redbeard and Shearers North Moz Resource inventory Positive sulphide Feasibility Study will enable a major reoptimisation of the Nullagine Resource and Reserve inventory 1 2 8

9 Nullagine Operations Strong Production and Cash-flows Significant operational improvements and upgrades completed over past 12 months: Focus switched to mining larger scale, longer life deposits = more sustainable, lower cost ore sources Mill refurbishment and upgrades completed = better plant availability and reliability Improved mine scheduling and stockpile protection = greater capability to withstand wet season conditions 2018 production guidance of 75-80koz at AISC A$ /oz March 2018 Quarter production 20,323oz at AISC within guidance range June 2018 Quarter production guidance of in range of 16-18koz at increased AISC due to increased investment in pre-stripping to re-open Golden Eagle Mining Centre Targeting 100kozpa run-rate in Q koz at improving AISC of ~A$1,100/oz 9

10 Millennium Minerals EXPLORATION NULLAGINE OPERATIONS POSITIVE EXPANSION STUDY MOVING UNDERGROUND 10

11 Sulphide Resources New Processing Breakthrough Nullagine Mineral Resource includes a large Sulphide inventory Key component of Sulphide Expansion Study completed, revealing a highly economic processing breakthrough Encompasses addition of a small modular concentrating circuit to the tail-end of the existing CIL plant: Uses a gravity sulphide scavenging circuit on the CIL tails stream, coupled with an ultrafine grind and intense cyanidation Well-understood process used successfully for years to process sulphide ore at major WA mines including Granny Smith and KCGM in Kalgoorlie Positive Sulphide Expansion Study paves the way for Millennium to deliver on its strategic production target of +100kozpa for at least five years with lower AISC 11

12 Sulphide Resources New Processing Breakthrough (cont.) Overall recoveries to average 85% based on metallurgical test work on sulphide mineralisation from the Golden Eagle deposit (>75%), combined with incremental recoveries expected to be realised from oxide ores (current recoveries running at >90%) Metallurgical test work is continuing to further optimise leach conditions which is expected to further improve forecast recoveries Direct project capital cost of the expansion to be only $15.0m fully funded Incremental processing costs are estimated to be $3.60 per tonne in addition to the current CIL processing cost (currently $18.40 per tonne) First orders placed for long-lead, critical path processing equipment - Front End Engineering Design (FEED) for an Outotec High Intensity Grinding Mill (HIGMill ) and gravity concentration spirals Target commissioning of the plant expansion during the first quarter of 2019 Re-optimisation of entire Mineral Resource inventory underway to underpin next stage of expansion study 12

13 Millennium Minerals EXPLORATION NULLAGINE OPERATIONS POSITIVE EXPANSION STUDY MOVING UNDERGROUND 13

14 Underground Potential at Nullagine Multiple Targets Identified Potential for substantial increases in Mineral Resources beneath all known deposits: Minimal deeper drilling below the + 30 shallow oxide deposits discovered to date only 4 deposits tested at depth Extensive drilling program underway to grow Mineral Resource inventory below several deposits Drilling has so far confirmed the potential for future underground mines below deposits tested to date Development of first underground mine underway at Bartons Underground studies underway on several additional deposits with more to come 14

15 Bartons The First Underground Mine at Nullagine Outstanding thick, high-grade results from recent deeper drilling, including standout intercepts of: 10.5m at 38.64g/t Au, including 79.96g/t Au 41m at 6.02g/t Au, including 87.47g/t and 167g/t 17m at 3.41g/t Au, including 19.9g/t 21.46g/t including 62.17g/t and 12.13g/t 9.34g/t including 15.99g/t Deeper mineralisation at Bartons is free-milling and can be treated through the existing CIL plant with recoveries of up to 90% 8.97g/t including 19.84g/t 15

16 Bartons The First Underground Mine at Nullagine 16

17 Bartons The First Underground Mine at Nullagine Underground Feasibility Study completed with UG development now commenced Mineralisation remains open at depth and along strike All deeper holes have successfully intersected the main ore zone and continue to define extensions Depth extensions to be targeted from UG drill platforms Bartons will shortly become Millennium s first underground mine at Nullagine, with development commencing late Q

18 Additional Underground Targets Pipeline of Organic Growth Of the 30 deep targets identified at Nullagine, only four have been tested to date all delivering highly encouraging results Golden Gate Free milling mineralisation at Depth Golden Gate Mining Center Sulphide mineralisation at depth Red Beard Golden Eagle Mining Center Shearers Bartons Middle Creek Mining Center Camel Creek Mining Center Twenty Mile Sandy Mining Center Golden Eagle Mining Centre Pre-stripping and mining activities now underway at the Golden Eagle Mining Centre to access higher grade ore sources Five Mile Mining Center 18

19 Sulphide Resources Pipeline of Additional Targets Golden Gate High-grade mineralised extensions below previouslymined open pits Grades and widths consistent with those required for underground operations Three potential high grade ore bodies leveraging shared infrastructure offering significant cost benefits Conceptual UG mine designs completed Golden Gate Deeper drilling delivering impressive results across three areas (Crow, D Reef and ABC Reef) Work underway to define maiden Reserve 19

20 Sulphide Resources Pipeline of Additional Targets 20

21 Millennium Minerals EXPLORATION NULLAGINE OPERATIONS POSITIVE EXPANSION STUDY MOVING UNDERGROUND 21

22 Exploration A Key Priority Substantial ongoing commitment to exploration with 4 drill rigs currently on site Exploration strategy focused on: Oxide exploration continuing to successfully replace mined ounces and extend mine life Sulphide ore exploration (open pit and underground) to support expansion studies Shearers North 3.38g/t Au, incl g/t Au 18.61g/t Au incl g/t Au 2.89 g/t Au incl g/t Au 1.47g/t Au incl. 5.81g/t Au 1.42g/t Au Sunday Redbeard 6.21g/t Au incl. 9.73g/t Au 5.79g/t Au incl. 9.09g/t Au 5.09g/t Au incl. 6.57g/t Au 8.44g/t Au incl. 9.32g/t Au 7.83g/t Au incl. 8.67g/t Au 6.82g/t Au incl. 9.94g/t Au 4.64g/t Au, incl. 33.9g/t Au 2.86g/t Au, incl. 6.32g/t Au 1.79g/t Au, incl. 8.51g/t Au Golden Eagle South West 8.06g/t Au incl g/t Au 2.35g/t Au 2.92g/t Au incl. 7.65g/t Au Au81 West 11.69g/t Au incl g/t Au 4.12g/t Au incl. 4.51g/t Au 6.25g/t Au incl g/t Au 9.29g/t Au incl g/t Au 22

23 Oxide Exploration Remains a Key Priority High-grade results spanning entire mineralised trend REDBEARD Oxide exploration targeting incremental ounces: Near-mine, shallow targets including extensions adjacent to existing pits New brownfields discoveries Drilling continues to deliver thick, high-grade intersections across the entire mineralised trend: Outstanding recent results from Shearers, Shearers North, Au81 West and Redbeard 23

24 Redbeard From Discovery to Resource in just 2 Months! Maiden Indicated and Inferred MRE: 2.6g/t Au for 20,600oz Resource delivered less than two months after drilling commenced in November 2017 First production from Redbeard is scheduled for Q REDBEARD Best Intersections: 6.20g/t Au from 13.2m 2.64g/t Au from 0m 6.21g/t Au from 33m 6.81g/t Au from 54m 5.83g/t Au from 49m 3.08g/t Au from 54m Drilling indicates that the high-grade mineralisation continues at depth 24

25 Key Investment Takeaways Nullagine Gold Project generating consistent oxide production and strong cash-flows Strong, debt-free balance sheet maximises free cash-flow and minimises risk Quality-driven mining strategy focusing on larger, more sustainable ore sources Large Resource inventory 1.12Moz underpins significant increase in production and mine life Expansion study completed fully funded to unlock large Sulphide Resource Expanding UG resource base Bartons UG development underway, more UG deposits to follow Ongoing exploration program continues to deliver high-grade intersections across the entire project Nullagine now moving rapidly to the next level unlocking the significant value of all ore types 25

26 Resources & Reserves Notes: Deposit Million Tonnes Nullagine Gold Project - Mineral Resource Statement Measured Indicated Inferred Total Remaining Grade g/t Au Million Tonnes Grade g/t Au Million Tonnes Grade g/t Au Million Tonnes Grade g/t Au Au Ounces Agate ,800 All Nations ,900 Anne de Vidia ,800 Angela ,400 Au ,300 Au81 West ,400 Bartons Open Pit ,400 Bartons UG ,600 Bow Bells ,200 Condor ,500 Condor North-West ,300 Crossing ,100 Crow ,900 Falcon ,400 Gambols Hill ,500 Golden Gate G Reef ,300 Golden Eagle ,300 Golden Gate ABC Reef + Harrier ,800 Golden Gate D Reef ,600 Hopetoun-Endeavour ,200 Hut ,100 Junction ,900 Little Annie ,500 Little Wonder ,200 Majuba ,400 Mundalla ,400 Mustang ,100 Otways ,300 Red Beard ,300 Roscoes Reward ,500 Round Hill ,100 Shearers ,500 Shearers North ,700 Total ,121, Figures in Table may not sum due to rounding. 2. The Au81 deposit was estimated using ordinary kriging methodology for grade estimation by CSA Global 3. Agate, All Nations, Angela, Anne de Vidia, Au81 West Bartons Open Pit, Bow Bells, Crossing, Condor North-West, Gambols Hill, Golden Eagle, Hopetoun-Endeavour, Hut, Junction, Little Annie, Little Wonder, Majuba, Mustang, Otways, Roscoes Reward, Round Hill, Shearers and Shearers North were estimated by ordinary kriging by Millennium Minerals Ltd. 4. Golden Gate satellite deposit, Falcon, was estimated using ordinary kriging by Dampier Consulting. 5. Barton Underground and Golden Gate open pit and underground deposits reported by Entech Pty Ltd. 26

27 A Step-Change at Nullagine Building a +100kozpa Australian gold producer Peter Cash, CEO Corporate Presentation May