1m ounce mt bundy gold project · gold focused company with advanced assets in the northern...
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Primary Gold Limited
ASX Code: PGO, PGOOA
Level 2, 907 Canning Hwy, Mt Pleasant, WA, 6153
PO Box 1207, Canning Bridge Applecross, WA 6153
T +61 8 9364 9009
E info@primarygold.com.au
W www.primarygold.com.au
MT BUNDY GOLD PROJECT
NORTHERN TERRITORY
Recommencing Mining and Processing
Operations at Toms Gully
RIU Sydney Resources Round-Up
May 2015
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Statements and material contained in this Presentation, particularly those regarding possible or assumed future performance, production
levels or rates, resources or potential growth of Primary Gold Limited (PGO), industry growth or other trend projections are, or may be,
forward looking statements. Such statements relate to future events and expectations and, as such, involve known and unknown risks and
uncertainties. Although PGO believes that the expectations contained in any forward looking statements in this presentation are, as at the
date of this presentation, made on a reasonable basis, such statements are not guarantees of future performance and actual results and the
timing of such results may differ materially from those herein described. Factors which may impact on future performance and cause actual
results to differ materially from those contained in forward looking statements include, without limitation, changes in commodity prices,
exchange rates, PGO’s access to capital and general and market conditions.
This presentation may describe Measured, Indicated and/or Inferred Resources. Inferred Resources have a greater amount of uncertainty as
to their existence and greater uncertainty as to their economic feasibility. It cannot be assumed that all or any part of any Inferred Resource
will ever be upgraded to a higher category. Exploration is an inherently risky proposition and investors are advised that most exploration
projects fail to identify economic resources. The Company has at present not confirmed the economic viability of any resources at the project.
The company plans further drilling programs and studies with the objective of confirmation of any deposits and ultimately completing a
feasibility study to demonstrate the economics of the resources.
The information contained in this presentation is for informational purposes only and does not constitute an offer to issue, or arrange to issue,
securities or other financial products. The information contained in this presentation is not investment or financial product advice and is not
intended to be used as the basis for making an investment decision. The presentation has been prepared without taking into account the
investment objectives, financial situation or particular needs of any particular person.
No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information,
opinions and conclusions contained in this presentation. To the maximum extent permitted by law, none of PGO, their directors, employees or
agents, nor any other person accepts any liability, including, without limitation, any liability arising out of fault of negligence, for any loss
arising from the use of the information contained in this presentation. In particular, no representation or warranty, express or implied is given
as to the accuracy, completeness or correctness, likelihood of achievement or reasonableness or any forecasts, prospects or returns
contained in this presentation nor is any obligation assumed to update such information. Such forecasts, prospects or returns are by their
nature subject to significant uncertainties and contingencies.
Before making an investment decision, you should consider, with or without the assistance of a financial adviser, whether an investment is
appropriate in light of your particular investment needs, objectives and financial circumstances.
Disclaimer and Important Information
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Gold focused company with advanced assets in the Northern Territory, Australia
Advanced Mt Bundy Gold Project
Near-term cash potential at high-grade Toms Gully3
Grow Resources, Reserves and production profile
1 refer to ASX announcement 8 September 2014 2 refer to ASX announcement 27 August 2013
3 refer to ASX Announcement 30 January 2015
Primary Gold Limited
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1.43 million oz gold in Resources1
175,000 oz gold in Reserves2
250,000 tpa processing facility
+2k km2 prospective exploration Pine Creek Orogen
144,000 recovered oz @ C1 costs A$640-A$650/oz
Project cash flow A$47m-A$52m (@ A$1,550/oz)
Environmental Impact Statement/authorisations
High-grade drill targets at Toms Gully
Prospective new high-grade Toms Gully-style targets
Satellite deposits
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Primary Gold – Investment Summary
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Toms Gully Gold Mine
• high-grade
• low cost
• rapid start-up
• fast payback
Growth potential
Attractive investment
proposition
• potential re-rating
High-grade mining history (~9g/t)
low capital A$24m-A$27m
Low C1: A$640-A$650/oz, C3: A$985-A$995/oz (less once-off capital)
8 month “construction”, 22 month payback
Strong returns: A$47m-A$52 million
Toms Gully - significant potential for extension and repetitions of
high-grade shoots
Rustlers Roost - positive scoping study, not drilled since 2003,
geochem targets identified
Lack of regional exploration - multiple near-mine targets
A$4.01 EV/Measured + Indicated oz - compares favourably to
comparative peer avg. of ~A$45/oz
A$18.80/Reserve oz compared to ~A$195/oz avg. for producers
Catalysts – authorisations, funding, start-up
Spec Buy, valuation range A$0.049-A$0.138 (current A$0.013) -
Paterson Securities Limited, March 2015
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Corporate Overview
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ASX Codes PGO, PGOO
Ordinary shares 265.5 million
Options (listed and unlisted) 55 million
Market cap at $0.013 per
shareA$3.5 million
Cash (end of March Qtr,
2015)A$2.0 million
Directors and Senior Management
Dale Rogers Non-Exec Chairman
Clay Gordon Managing Director
Tim Manners Non-Exec Director
(Mark) Yumin Qiu Non-Exec Director
Philip Gray Non-Exec Director
Simon Durack Company Secretary
Shareholder Structure
Directors 10%
Hanking Australia Limited 19.5%
Crocodile Gold 4.4%
Number of shareholders 380
Top 20 shareholders 63%
Share Price Performance
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High-grade track record
Existing infrastructure
100%-owned
Granted 25 year mining tenure
Close to Darwin (~100km)
Positive feasibility study and near term production start-up
Why Toms Gully?
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Toms Gully Site 2008
Processing
Facility
Pit &
underground
access
Toms Gully Mill 2015
Outcropping quartz vein +9g/t
~ 115,000 oz at 8.2g/t Toms Gully (1988-2008)
High-grade Resource 315,000 oz at 8.9g/t
High-grade Reserve 175,000 oz at 6.9g/t
250,000 tpa processing plant
22kv to mine and mill
Pit, twin declines and development down to
next high-grade zone
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Progress to date
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Successful drilling completed at Toms Gully
Increased JORC Resources for Mt Bundy Project
Maiden Reserve Toms Gully
Positive Toms Gully Feasibility Study
Progressed exploration strategy
Significant intercepts include 1.25 metres at 15.0g/t,
0.6 metres at 9.3g/t and 1.05 metres at 7.6g/t4
Up 21% from July 2013 upgrade
Up 40% from the 2013 acquisition
775,000t @ 6.9g/t for 175,000 oz
Supports low capital start-up to low cost gold
production at Toms Gully5
Potential to increase of Toms Gully mine life beyond
current 3 years
Preliminary field investigations identifying new
areas prospective for high-grade mineralisation
4 Refer to ASX announcement 31 July 2014 5 Refer to ASX announcement 30 January 2015
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Toms Gully Feasibility Study
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Feasibility Study completed August 2013, updated November 20146
Outcomes support 3 year life, low op cost, low capital return to gold production based on production of 60,000 - 65,000 oz pa
Currently completing Environmental Impact Assessment, key step in final Authorisations. Due 2nd half 2015.
6 Refer to ASX announcement 30 January 2015
FINANCIALS 2014 Update
Max –ve Cash flow A$24m-A$27m
C1 costs A$640-$650/Oz
C2 costs A$735-A$745/Oz
C3 costs A$1,195-A$1,210/Oz
C3 (less once-off start-up
Capital)A$985-A$995/Oz
Gold price US$1,240 (A$1,550)
AUD-USD $0.80
Project Revenue A$220m-A$225m
Project Cash flow A$47m-A$52m
Cash flow +ve (from 1st
activity)12 months
Payback 22 months
Recovered ounces 144k Oz
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Toms Gully Resource
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Resource increased 125% to 315,000 oz at 8.9g/t
Strike continuous, siliceous, sulphide-rich, brecciated reef
Shoot-controlled, high tenor mineralisation (3 to 30g/t)
Shallow dipping, hence only ~300m depth at deepest
Drill-defined over 1.5km dip extent
Open all directions and potential repeat structure in
footwall
1.5km
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Toms Gully Resource Upside
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New exploration model, multiple targets,
excellent potential to delineate further high-
grade mineralisation
Challenge old paradigm and potential outside
fault corridor
Shoot extensions and repetitions
Support from geophysics and extisting drilling7
• 1m at 10g/t
• 0.5m at 8.1g/t
• 0.75m at 20.6g/t
• 0.9m at 5.4g/t
Also, potential at depth, repeat of high-grade
structures in foot-wall
• 1.8m at 4.4g/t incl.
• 0.35m at 14.2g/t
Multiple drill targets
7 Refer ASX announcement 14 November 2012
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Satellite Deposits
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Rustlers Roost
Quest 29
12km southwest of Toms Gully mill
Produced 110k oz, 0.97 million oz in Resource
(PGO 80% share)
2012 Scoping Study supports the potential for
large scale, low strip, open cut mining, mining
operation production costs below $A1,100/oz8
Early mining grades +18g/t
Assessing potential to provide high-grade feed
13km south of the Toms Gully mill
Produced 15k oz, 148k oz in Resource
Medium to high-grades, Cosmo Deeps/Zapopan-
style, plunging shoots
Drill defined over 3km strike, remains open all
directions
8 Refer ASX announcement 14 November 2012
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Exploration
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Numerous targets, significant potential within 15km radius of Toms
Gully Mill:
Extensions to existing resources e.g. recent high-grade rock
chips at Rustlers Roost, including 15.6g/t, 8.2g/t, 4.0g/t and
3.2g/t9
New discoveries - prospective area south of Toms Gully, recent
sampling exceeds maximum values that led to Toms Gully
discovery in 1980s
~10Moz Au Pine Creek Camp is compelling analogy for Mt Bundy
Key being same stratigraphic and structural framework
Significance being Pine Creek Camp hosts numerous examples of
high-grade mineralisation to target:
So in addition to 9g/t Toms Gully style targets…
12g/t Zapopan/Brocks Creek, Cosmo Deeps (3.5g/t), and
Maud Creek (3.5g/t)
Mt Bundy hosts the right stratigraphy and structure, yet remains
under-explored
9 refer to ASX Announcement 4 August 2014
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2015 - Objectives
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Complete EIA, final authorisation to
re-commence mining Toms Gully
Decision on project finance
Commence pre-development
activities (dewatering, mill
refurbishment)
Progress assessment of high-grade
targets proximal to Toms Gully
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Primary Gold – Investment Summary
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Toms Gully Gold Mine
• high-grade
• low cost
• rapid start-up
• fast payback
Growth potential
Attractive investment
proposition
• potential re-rating
High-grade mining history (~9g/t)
low capital A$24m-A$27m
Low C1: A$640-A$650/oz, C3: A$985-A$995/oz (less once-off capital)
8 month “construction”, 22 month payback
Strong returns: A$47m-A$52 million
Toms Gully - significant potential for extension and repetitions of
high-grade shoots
Rustlers Roost - positive scoping study, not drilled since 2003,
geochem targets identified
Lack of regional exploration - multiple near-mine targets
A$4.01 EV/Measured + Indicated oz - compares favourably to
comparative peer avg. of ~A$45/oz
A$18.80/Reserve oz compared to ~A$195/oz avg. for producers
Catalysts – authorisations, funding, start-up
Spec Buy, valuation range A$0.049-A$0.138 (current A$0.013) -
Paterson Securities Limited, March 2015
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Contacts
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CLAY GORDON JAMES TRANTER
Primary Gold Limited
Managing Director
+61 8 9364 9009
cgordon@primarygold.com.au
FTI Consulting
Senior Director, Investor Relations
+61 8 9485 8888
James.Tranter@fticonsulting.com
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PRIMARY GOLD MINERAL RESOURCES & ORE RESERVES, COMPETENT PERSON’S STATEMENTS:
The information in this market announcement is extracted from the reports entitled Toms Gully Resource Estimate, Rustlers Roost Resource Estimate, Quest 29 Resource Estimate all dated August 2014 and
announced 8 September 2014 and Toms Gully Ore Reserve Estimate Summary Report, August 2013, announced 27 August 2013. All reports are available to view on www.primarygold.com.au .
Primary Gold Limited confirms it is not aware of any new information or data that materially affects the information in the original market announcements relating to Toms Gully mineral resources and ore
reserves, that all material assumptions and technical parameters underpinning the Toms Gully mineral resource estimate 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 announcement.
The information in this announcement that relates to exploration results are based on, and fairly represent, information and supporting documentation compiled and prepared by Mr Clay Gordon who is a
Member of The Australasian Institute of Mining and Metallurgy and Australian Institute of Geoscientists. Mr Gordon is a full-time employee and shareholder of Primary Gold Limited.
Mr Gordon has sufficient experience which is relevant to the styles of mineralisation and types of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in
the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’.
Mr Gordon has provided prior written consent as to the form and context in which the Exploration Targets and the supporting information are presented in this market announcement.
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Indicated Inferred Total
Tonnes
(kt)Grade (g/t)
Au
(kOz)
Tonnes
(kt)Grade (g/t)
Au
(kOz)
Tonnes
(kt)
Grade
(g/t)
Au
(kOz)
Toms Gully 835 9.0 242 265 8.5 73 1,100 8.9 315
Rustlers Roost 23,875 0.8 629 12,985 0.8 338 36,860 0.8 968
Quest 29 2,190 1.4 98 1,205 1.3 50 3,395 1.4 148
Total 26,900 1.1 969 14,455 1.0 461 41,355 1.1 1,430
Proved Probable Total
Tonnes
(kt)Grade (g/t)
Au
(kOz)
Tonnes
(kt)Grade (g/t)
Au
(kOz)
Tonnes
(kt)
Grade
(g/t)
Au
(kOz)
Toms Gully 775 6.9 175 775 6.9 175
Resources, exploration & JORC StatementF
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