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RIU Melbourne Resources Round Up Presentation 1st October 2015
DISCLAIMER & COMPETENT PERSON STATEMENT
This presentation contains forward looking statements that are subject to risk factors associated with resources businesses. It is believed that the expectations reflected in these statements are reasonable but they may be affected by a variety of variables and changes in underlying assumptions which could cause actual results or trends to differ materially, including but not limited to: price fluctuations, actual demand, currency fluctuations, drilling and production results, reserve estimates, loss of market, industry competition, environmental risks, physical risks, legislative, fiscal and regulatory developments, economic and financial market conditions in various countries and regions, political risks, project delay or advancement, approvals and cost estimates.
Information in this presentation is based on data compiled by Gascoyne's Managing Director Mr Michael Dunbar who is a member of The Australasian Institute of Mining and Metallurgy. Mr Dunbar has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which they are undertaking to qualify as Competent Persons under the 2012 Edition of the Australasian Code for reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Dunbar consents to the inclusion of the data in the form and context in which it appears.
The Glenburgh Mineral Resources have been estimated by RungePincockMinarco Limited, an external consultancy, and are reported under the 2012 Edition of the Australasian Code for reporting of Exploration Results, Mineral Resources and Ore Reserves (see GCY -ASX announcement 24th July 2014 titled: High Grade Domains Identified Within Updated Glenburgh Gold Mineral Resource). 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, in the case of estimates of Mineral Resources that all material assumptions and technical parameters underpinning the estimate 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 are presented have not materially modified from the original market announcements.
The Glenburgh 2004 JORC resource (released to the ASX on April 29th 2013) which formed the basis for the preliminary Feasibility Study was classified as Indicated and Inferred and as a result, is not sufficiently defined to allow conversion to an ore reserve; the financial analysis in the preliminary Feasibility Study is conceptual in nature and should not be used as a guide for investment. It is uncertain if additional exploration will allow conversion of the Inferred resource to a higher confidence resource (Indicated or Measured) and hence if a reserve could be determined for the project in the future. Production targets referred to in the preliminary Feasibility Study and in this report are conceptual in nature and include areas where there has been insufficient exploration to define an Indicated mineral resource. There is a low level of geological confidence associated with inferred mineral resources and there is no certainty that further exploration work will result in the determination of indicated mineral resources or that the production target itself will be realised. This information was prepared and first disclosed under the JORC Code 2004, the resource has now been updated to conform with the JORC 2012 guidelines. The new JORC 2012 resource, reported above, will form the basis for any future studies.
The Gilbeys and Golden Wings resources have been estimated by Elemental Geology Pty Ltd, an external consultancy, and are reported under the 2012 Edition of the Australasian Code for reporting of Exploration Results, Mineral Resources and Ore Reserves (see GCY -ASX announcement 1st August 2013 titled: Dalgaranga Gold Resource Increases 80% to 685,000oz and Dalgaranga scoping study outlines low cost/high margin development 23rd June 2015). 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, in the case of estimates of Mineral Resources that all material assumptions and technical parameters underpinning the estimate 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 are presented have not materially modified from the original market announcements.
The Egerton Resource estimate and Gaffney's Find prospect historical exploration results have been sourced from Exterra Resources annual reports and other publicly available reports which have undergone a number of peer reviews by qualified consultants, who conclude that the resources comply with the JORC code and are suitable for public reporting. This information was prepared and first disclosed under the JORC Code 2004. It has not been updated since to comply with the JORC Code 2012 on the basis that the information has not materially changed since it was last reported.
All references to dollars, cents or $ in this presentation are to AUS$ currency, unless otherwise stated.
WWW.GASCOYNERESOURCES.COM.AU 2
Australian Gold Sector Consolidation - So FarProject
Ounces #
Status - Purchaser
King of The Hills & Kailis
400,000
SOLD - Saracen
Grosvenor & Peak Hill
2,000,000
SOLD - Metals X
Mt Henry
1,656,000
SOLD - Metals X
Central Tanami
2,670,000
SOLD / JV - Northern Star
Marda
535,000
SOLD / Merger- Black Oak
Cowal Gold Mine*
3,400,000
SOLD - Evolution
La Mancha*
2,640,000
SOLD - Evolution
Jundee*
507,000
SOLD - Northern Star
Plutonic *
1,746,000
SOLD - Northern Star
Kanowna Belle*
1,480,000
SOLD - Northern Star
Thunderbox / Bannockburn
2,088,000
SOLD - Saracen
Wiluna
2,848,000
SOLD - Blackham
Mount Magnet South
548,000
SOLD - Minjar Gold
Meekathara
3,350,000
SOLD - Metals X
Deflector
591,000
SOLD/ Merger - Doray
Phoenix
4,020,000
Under Offer - Evolution
Tennant Creek
900,000
JV to Evolution
Kathleen Valley
130,000
SOLD - Ramelius
Vivian
154,000
SOLD - Ramelius
Bullabulling
3,750,000
SOLD - Norton
# - Total contained ounces within Resources at the time of announcing the transaction, see appendix for list of ASX releases for resource breakdown
- Operating Gold Mine 3
Only the Strong Remain IndependentCompany
Shares on Issue
Share Price
Market Cap
Net Cash (June 2015)
Resource Ounces (Measured, Indicated and Inferred)
EV/Ounce (non refractory)
Level of Study
Projected Capital Cost
Mining Lease Granted ? Native Title Status
Gold Road (GOR)
684M
43.5c
$297M
$49.8M
6,070,000
$40.8/oz
Scoping Study Completed PFS
Underway
$400 - 500M
NO ML's and No Native Title Agreement
Blackham (BLK)
198.4M
19c
$38M
$3.9M
4,658,000
$24.4/oz (1.4Moz
free milling)
FS Underway
$32M
ML's Granted Native Title Extinguished
Dacian (DCN)
96.1M
68c
$65M
$4.6M
3,008,000
$20.2/oz
Scoping Study completed
$157M
ML's Granted Native Title Extinguished
GASCOYNE (GCY)
178M
8c
$14M
$1.2M
1,780,000
$7.3/oz
Scoping Study & PFS Completed
$37M
Dalgaranga
$70M
Glenburgh
ML's Granted Native Title Negotiated
See Appendix for list of sources of Resource data
WWW.GASCOYNERESOURCES.COM.AU 4
Only the Strong Remain Independent$100.0
Relative Valuations - Independent Explorers / Developers
6,000,000
$90.0
EV/ Free milling Oz (A$)
$80.0
$70.0
$60.0
$50.0
$40.0
6.0Moz
$40.8
$100
$74
3.0Moz
$54
Resource Ounces (Free Milling)
5,000,000
4,000,000
3,000,000
2,000,000
$30.0
$20.0
$10.0
$-
$24.4 $20.2
1.4Moz
1.8Moz
$7.3$14
1,000,000
-
GOR MC - $300M
BLK MC - $38M
DCN MC - $65M
GCY MC - $14M
EV/Resource Oz EV/Production target Oz
Free Milling Resource Ounces (rhs)
WWW.GASCOYNERESOURCES.COM.AU 5
Ways to Increase Shareholder WealthChoose an Experienced Board and Management Team
• +180 years experience within the team
built Giralia Resources from $2M to ~$ 900M Market cap prior to Atlas takeover
Board and Management have substantial stakes (25%) - aligned with shareholders
been involved in the discovery and development of 10 + mines
Target the right commodity for the times
Mid 2000's Iron Ore - demand driven boom
Mid 2010's Australian Gold -A Natural Hedge, High Margins (40-50%), Low technical risk, Ability to hedge fx and gold
Great Projects, Growing Resource Base
GCY has added 1.6 MILLION OUNCES OF GOLD AT
Advanced Projects at Glenburgh, Dalgaranga and Egerton
Progress towards Development & Production
Detailed Scoping Study at Dalgaranga COMPLETED. Low cost/High Margin
PFS at Glenburgh COMPLETED. High Margin development possible
Mining Leases granted over both projects
Permitting underway
Massive Exploration Potential
Glenburgh: MASSIVE exploration upside + 1,000 km2 with less than 8% of target horizon tested to date.
Dalgaranga: Dominant landholder in a fertile underexplored greenstone belt, +7 known prospects still to evaluate and
WWW.GASCOYNERESOURCES.COM.AU 6
Mike Joyce
Mike Dunbar
Non Exec. Directors:Graham Riley Gordon Dunbar
Non - Exec Chairman
Managing Director
Corporate SnapshotGCY - Ordinary Shares
Unlisted Options
(price 26c)
178 Million
3.9 Million
BOARD OF DIRECTORS
Share Price
Market Capitalisation Cash (June 2015) JORC Gold Resources
A 8c
~A$14M A$1.2M 1,780,000oz
(Measured, Indicated and Inferred)
EV / Resource Ounce
~A$ 7.3
John den Dryver
Stan Macdonald
MANAGEMENT TEAM
Julian Goldsworthy Geology Manager
Eva O'Malley Company Sec / CFO
Major Shareholders
Board and Management ~25 %
JP Morgan Asset Mgt 9.4 %
Citi Corp Nominees 7.1 %
National Nominees 6.6 % Yandal Investments 1.3 % TOP 10 +50 %
TOP 30 >72 %
WWW.GASCOYNERESOURCES.COM.AU 7
Source: Lion Selection Group Presentations
Gold - A High Margin BusinessLow Technical Risk
No Marketing risks
No Transport issues
Little Infrastructure Needed
8
WWW.GASCOYNERESOURCES.COM.AU
Australian Gold - A High Margin BusinessWWW.GASCOYNERESOURCES.COM.AU 9
A$ Gold - A Natural HedgeChange in Projected Operating Surplus with US$ gold price and Exchange Rate
Spot Go | ld Price |
$800,000,000
$700,000,000
A$ Operating Surplus
(Glenburgh and Dalgaranga Combined)
$600,000,000
$500,000,000
$400,000,000
$300,000,000
$200,000,000
A$ Exchange Rate
75c 70c 65c 60c
$100,000,000
$-
1000
1050
1100
1150
US$ Gold Price
1200
1250
1300
WWW.GASCOYNERESOURCES.COM.AU 10
Project Life CycleResource
Growth Glenburgh PFS
Dalgaranga Scoping
GCY
Today
5-10 X UPLIFT
GCY on listing
Source: Lion Selection Group Presentations
WWW.GASCOYNERESOURCES.COM.AU 11
Margin is KingProcessing Cost
Hard ore adds to processing cost, increases cutoff and reduces Margin
Mining Cost
Open Cut or Underground
Underground is higher cost /t
Metallurgical Recovery
Easy processing increases recovery and reduces costs, increasing Margin
MARGIN / PROFIT
REVENUE
Actively managing forward sales contracts can add to Margin
Ownership Structure
Project Royalties reduce revenue and reduce Margin
Grade
Higher grades reduce processing cost and increase Margin
WWW.GASCOYNERESOURCES.COM.AU 12
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