17
ASX:CAI 1.25 Moz HIGH-GRADE, SHALLOW WA GOLD PROJECT PROGRESSING TO DEVELOPMENT PRESENTATION MAY 2019
ASX:CAI
1.25 Moz HIGH-GRADE, SHALLOW WA GOLD PROJECTPROGRESSING TO DEVELOPMENTPRESENTATION MAY 2019
DISCLAIMER
DISCLAIMER
Thispresentationdoesnotconstituteinvestmentadvice.Neitherthispresentationnortheinformationcontainedinitconstitutesanoffer,invitation,solicitationorrecommendationinrelationtothepurchaseorsaleofsharesinanyjurisdiction.Thispresentationdoesnottakeintoaccountanyperson'sparticularinvestmentobjectives,financialresourcesorotherrelevantcircumstancesandtheopinionsandrecommendationsinthispresentationarenotintendedtorepresentrecommendationsofparticularinvestmentstoparticularpersons.Allsecuritiestransactionsinvolverisks,whichinclude(amongothers)theriskofadverseorunanticipatedmarket,financialorpoliticaldevelopments.
Tothefullestextentpermittedbylaw,CalidusResourcesLimited(theCompanyorCalidus)doesnotmakeanyrepresentationorwarranty,expressorimplied,astotheaccuracyorcompletenessofanyinformation,statements,opinions,estimates,forecastsorotherrepresentationscontainedinthispresentation.Noresponsibilityforanyerrorsoromissionsfromthispresentationarisingoutofnegligenceorotherwiseisaccepted.
Thispresentationmayincludeforwardlookingstatements.Forwardlookingstatementsareonlypredictionsandaresubjecttorisks,uncertaintiesandassumptionswhichareoutsidethecontrolofCalidus.Theserisks,uncertaintiesandassumptionsincludecommodityprices,currencyfluctuations,economicandfinancialmarketconditionsinvariouscountriesandregions,environmentalrisksandlegislative,fiscalorregulatorydevelopments,politicalrisks,projectdelayoradvancement,approvalsandcostestimates.Actualvalues,resultsoreventsmaybemateriallydifferenttothoseexpressedorimpliedinthispresentation.Giventheseuncertainties,readersarecautionednottoplacerelianceonforwardlookingstatements.Anyforwardlookingstatementsinthispresentationspeakonlyatthedateofissueofthispresentation.SubjecttoanycontinuingobligationsunderapplicablelawandtheASXListingRules, Calidusdoesnotundertakeanyobligationtoupdateorreviseanyinformationoranyoftheforwardlookingstatementsinthispresentationoranychangesinevents,conditionsorcircumstancesonwhichany suchforwardlookingstatementisbased.
COMPLIANCESTATEMENT
TheinformationinthispresentationthatrelatestoExplorationResultsandMineralResourcesreleasedpreviouslyontheASX.
TheCompanyconfirmsthatitisnotawareofanynewinformationordatathatmateriallyaffectstheinformationincludedinthe originalmarketannouncementsandthat,inthecaseofmineralresourcesestimates,allmaterialassumptionsandtechnicalparametersunderpinningtheestimatescontinuetoapplyandhavenot materiallychanged.TheCompanyconfirmsthattheformandcontextinwhichtheCompetentPerson’sfindingsarepresentedhavenotbeenmateriallymodifiedfromtheoriginalmarketannouncements.
MrDanielSaundersisprincipalandafulltimeemployeeofGeoServConsultingPtyLtd,andisaMemberoftheAusIMM.MrDaniel SaundershassufficientexperiencethatisrelevanttothestyleofmineralisationandtypesofdepositunderconsiderationandtotheactivitiesundertakentoqualifyasaCompetentPersonasdefinedinthe2012EditionoftheJORCCode.
MsJaneAllenisafulltimeemployeeoftheCompany,andisamemberoftheAusIMM.MsJaneAllenhassufficientexperiencethatisrelevanttothestyleofmineralisationandtypeofdepositsunderconsiderationandtotheactivatesundertakentoqualifyasaCompetentPersonasdefinedinthe2012EditionoftheJORCCode.
PAGE 2
3
RAPIDLY PROGRESSING TOWARDS PRODUCTION
SNAPSHOT
• Simpleandcompellingstory
• ConsolidationofHistoricGoldfield
• 1.25Mozresourceat1.83g/tAuincluding1.1Mozat2.37g/t
• 795,000ozofIndicatedResources(64%)
• 203%increaseinresourcesincelistingJune2017(412,000oz)
• FullyfundedPre-feasibilityStudy(PFS)commenced,completiondueQ32019
• PlanningtoDevelopin2020
• Significantexplorationupside,drillingunderway
PAGE 3
DRIVING DEVELOPMENT PROGRESSA CENTURY OF EXPERIENCE IN PRECIOUS-METAL PROJECT DEVELOPMENT
PAGE 4
MARKCONNELLYNON-EXECUTIVECHAIRMAN
Over30years’ resourceindustryexperienceinCEOandManagingDirectorrolesacrossmultiplejurisdictionsincludingAustralia,WestAfrica,NorthAmericaandEurope.Currently Non-ExecutiveChairmanatWestAfricanResourcesLtd
KEITHCOUGHLANNON-EXECUTIVEDIRECTOR
30years’experienceinstockbrokingandfundsmanagementonASX,AIMandTSX.Currently theMDofEuropeanMetalsHoldingsandrecentlyretiredaschairmanofTalgaResources
ADAMMIETHKENON-EXECUTIVEDIRECTOR
Over15years’experienceinexplorationandminegeology,fundsmanagementandcorporateadvisory.PrevioustechnicalandcorporaterolesatRioTinto,Snowden,RegentPacificGroupandArgonaut
BOARD
EXECUTIVE MANAGEMENT
DAVEREEVESMANAGINGDIRECTOR
30years’miningexperienceinAustralia,AfricaandEurope.Instrumentalintheprogressionoffourminingprojectsthroughfeasibilitytoprojectdevelopment
FERNANDOMOUTINHOPROJECTMANAGER30years’internationalexperiencewithGRDMinproc,SheffieldResources,SyrahResources,NewCenturyResources
JANEALLENGEOLOGYMANAGER30years’internationalminingexperiencewithAnglogold Ashanti,ResoluteMining,AvionGoldCorporationandGCM
PAULBRENNANCOO
20years’miningexperienceinAustralia,AfricaandEurope.MostrecentlyGMatSaracen’sCarasoueDamoperation
CORPORATE OVERVIEW
CAPITALSTRUCTURESHARESONISSUE 1,501
Million1
MARKETCAP(undilutedatA$0.025)
$37.5Million2
CASH(asat31Dec2018)
$4.3Million3
LISTEDINVESTMENTS $2.2Million
ENTERPRISEVALUE $31.0Million
OPTIONS(willraise$6.9mifexercised)
254Million4
PERFORMANCESHARES
275Million5
CAPITAL STRUCTURE AND SHAREHOLDERS
1. IncludingplacementtoAlkaneannounced30/4/192. Usingsharepriceof$0.25asat30April20193. $2.3mcash30/4/19plus$2mfromAlkaneRaise4. [email protected],[email protected],[email protected]@3.0c5. PerformanceSharesvestoncompletionofapositivePFS6. CAIboardandmanagementown18%ofKeras7. ALKcashbalanceasat31March2019
KEYSHAREHOLDERSKERASRESOURCES6(AIM:KRS) 30.5%
ALKANERESOURCES(ASX:ALK) 15.2%
NOVORESOURCES(TSX:NVO) 3.8%
PAGE 5
WELL FUNDED• Cashreservesof$4.3m• InvestmentinPactonGold(TSX:PAC)valuedat$2.2m• 2.5cexercisableoptionstoraise$2.2mdueJune2019
STRONGCORPORATEMININGSUPPORT• KerasResources– Londonlistedexplorationcompany2
• AlkaneResources– ASXlistedAustraliandomiciledgoldproducerwithc.$72mincashreserves7
• NovoResources– Canadianlisted,wellfundedPilbaraGoldexplorerwithnearbygoldpropertiesandJORCresources
TIGHTLYHELDSHAREREGISTER• Over15%Tier1institutionalownership• Top20hold70%
LOCATED IN AREA WITH PROVEN RESOURCE POTENTIAL
WARRAWOONA GOLD PROJECT
PAGE 6
780KM2 OF CONTIGUOUS TENURE
CONTROL OF PROVEN GREENSTONE BELT
PAGE 7
780km2undercontrol,applicationoroption
• +200historicmineslocatedontenements
• VerylimitedpreviousexplorationfocusedaroundtheKlondykeworkings
• Majorityofpackagenotcoveredbyanysoilsamplingordrilling
HIGH GRADE MINERALISATION REMAINS OPEN AT DEPTH
KLONDYKE DEPOSIT
PAGE 8 CORPORATEPRESENTATIONMARCH 2019
KLONDYKE DEPOSIT
PAGE 9
76% INCREASE IN GLOBAL RESOURCE BASE TO 1.15 Moz
Klondyke(0.5g/tcut-offsummary)
Cut-off Indicated Inferred Total
Aug/t Mt g/tAu Ozs Mt g/tAu Ozs Mt g/tAu Ozs
KlondykeOpenPit 0.5 12.3 1.69 670,000 5.5 1.47 260,000 17.8 1.62 930,000
KlondykeUnderground 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(0.8g/tcut-offsummary)
Cut-off Indicated Inferred Total
Aug/t Mt g/tAu Ozs Mt g/tAu Ozs Mt g/tAu Ozs
KlondykeOpenPit 0.8 8.4 2.19 590,000 3.1 2.16 210,000 11.4 2.19 800,000
KlondykeUnderground 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
UPDATED MINERAL RESOURCE
PAGE 10
CONTINUOUS OUTCROPPING RESOURCE OPEN IN ALL DIRECTIONS
MULTIPLE HIGH GRADE SATELLITE TARGETS, WITHIN 10KM OF KLONDYKEREGIONAL UPSIDE – LARGELY UNTESTED
PAGE 11
Deposit Cut-off Indicated Inferred Total
Aug/t Mt g/tAu Ozs Mt g/tAu Ozs Mt g/tAu OzsCopenhagen 0.5 0.2 5.27 36,000 0.1 1.84 3,000 0.3 4.65 39,000Coronation 0.5 - - - 0.5 2.19 34,000 0.5 2.19 34,000
FieldingsGully 0.5 0.2 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
RAPID PROGRESSION OF PFS, SCHEDULED FOR Q3 2019 COMPLETION
METALLURGICALTESTWORK• Highgoldrecoveries- 96.7%
• CoarseGrind
• SoftRock
ENVIRONMENTAL• Allfieldworktobecompletein
April,submitpermitapplicationsinQ32019
HYDROLOGICAL• Pitwaterholesdrilled
• Borefield tobedrilledinApril
HERITAGE• Heritageclearanceworkcompleted
overareaofdisturbance
TAILINGS• Thickeningtestwork andgeotechnical
testingcomplete
• Valleyfilltailings,stableandlowcapital
PRE-FEASIBILITY STUDY INPUTS
PAGE 12
GEOTECHNICAL• Allgeotechnicaldrillingandanalysis
complete
13
WELL SERVICED BY EXISTING INFRASTRUCTURE
PAGE 13
ASSISTS WITH RAPID COST EFFECTIVE DEVELOPMENT
MININGREGISTRARLOCATEDINTOWN
SEALEDAIRSTRIPINMARBLEBAR
2HOURSDRIVEFROMPORTHEDLANDONSEALEDROAD(AUSTRALIA’SLARGESTPORT)
LOCATED20KMSOUTHEASTOFMARBLEBAR
• AllweatherroadfromMarbleBartoleases
• AccesstotruckedLNGfromNWShelf
• 100roomsavailableintown
• Allweatherairstrip
• Negotiatingthepurchaseofa2nd handcampinthePilbara
PARALLEL WORKSTREAMS TO PROVIDE CONSISTENT NEWSFLOW
DEVELOPMENT TIMELINEEXPLORATION TIMELINE
PAGE 14
ONE OF FEW HIGH GRADE INDEPENDENT DEVELOPMENT PROJECTS
AUSTRALIAN OPEN PIT DEVELOPERS
PAGE 15
UNDEVELOPEDOPEN-PITWAPROJECTS(>1MozAu)1,2
ScarcityofindependentASXopenpitgolddeveloperswithResourcebasesover1MozAu1. Dataasat30April20192. [email protected]/t
*BubblesizerepresentsEnterpriseValue
Yandal,EAR
Karlawinda,CMM
Bombora,BRBWarrawoona(0.5g/tAucut-
offgrade)
Warrawoona(0.8g/tAucut-off
grade)
Katanning,AUC
1.0
1.2
1.4
1.6
1.8
2.0
2.2
2.4
2.6
1,000 1,050 1,100 1,150 1,200 1,250 1,300 1,350 1,400 1,450 1,500
ResourceGrade
(g/tAu)
MineralResourceOunces(koz)
147
117
6054 49
33 30 27
0
25
50
75
100
125
150
175
EV/Resou
rce(A$/oz)
VALUE GROWTH ASSOCIATED WITH DEVELOPMENT
NEAR-TERM DEVELOPMENT
1. Dataasat30April20192. CalidusEVdoesn’taccountforlistedinvestmentsofc.$2.2m
PAGE 16
UNDERVALUEDCOMPAREDTODEVELOPMENTPEERS1CompletedFeasibilityStudy
PriortoFeasibilityStudy
Average=$71/oz
BGL VAN CMM EAR BRB KIN GMD
KeyProject Bellevue Trident Karlawinda Yandal Bombora Leonora Ulysses Warrawoona
Stage ResourceDevelopment
ResourceDevelopment Financing Feasibility PFSCommenced Resource
Development Feasibility PFSCommenced
MktCap(A$m) 254 101 67 80 60 30 27 38
EV(A$m) 225 100 67 75 53 26 23 332
Resource(koz) 1,530 854 1,114 1,405 1,084 782 760 1,248
Grade(g/t) 11.8 3.5 1.1 2.1 1.4 1.4 3.3 1.8
MineType Underground Underground Open-pit Open-pit Open-pit Open-pit UndergroundOpen-pit&UndergroundPotential
17
• Criticalmassforastandalonedevelopmentachieved
• Highgradeopenpitoutcroppingresource
• Excellentmetallurgy
• Experiencedminedevelopmentteam
• FullyfundedthroughtoPre-feasibilityStudycompletion
•Locatedincloseproximitytohighqualityinfrastructureandoperatingmines
•Greenfieldsexplorationunderwayandhassignificantpotential
•Uniquelypositionedasoneoffewremaininghighgradeopen-pitgolddevelopmentcompaniesontheASX
PAGE 17
WEST AUSTRALIAN 1.25Moz HIGH-GRADE, SHALLOW GOLD DEVELOPER
REASONS TO INVEST
