Citigold Corporation Limited · ASX:CTO
Citigold — Investor Presentation (August 2014)
37 slides from Citigold's investor presentation, August 2014
Slide 1: Presentation August 2014
www.citigold.com TiGOLD corporation August 2014
Slide 2: Cautionary Statement
Cautionary Statement Forward looking Statements This presentation contains forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, property titles, potential mineral recovery processes, etc. Forward-look
Slide 3: The Right Investment
The Right Investment ü The right Project ü The right loca/on ü The right commodity ü The right cost profile ü The right team ü The right focus ü A solid base to create significant investor returns 3
Slide 4: The Right Project
The Right Project 4
Slide 5: The Right Project
The Right Project Size (11 Million ounces) Produc/on profile >300,000 High oz/p.a Innova/on Grade driven low cost and (14 g/t) high profit Australia Simple low risk and Jurisdic/on Stated proven mining 50 M/oz method High Mining recovery Permits in Explora/on process place Poten/al >95% 5
Slide 6: Charters Towers a large scale gold project
Charters Towers a large scale gold project Category Tonnes Grade g/t Au Cut off Contained Ounces Inferred Mineral Resource 25,000,000 14.0 3.0 g/t 11,000,000 Indicated Mineral Resources (includes Probable Ore 3,200,000 7.6 4.0 g/t 780,000 Reserves) Probable Ore Reserves (derived from and contained 2,
Slide 7: Proven High Grade Ore
Proven High Grade Ore Sample of high grade ore in mine: 2 metres wide @ 2.4 ounces per tonne Sample of Very High Grade underground ore: Historic production 1030 g/t (33 ounces per tonne) 6.6 million ounces at 38 g/t 7
Slide 8: Mining method optimized at Imperial
Mining method optimized at Imperial Production up to late 2013 produced over 100,000 ounces 8
Slide 9: Potential for much larger valuation
Potential for much larger valuation “Based on the acquisition of 100% of the Jundee Gold Mine and an exchange rate of AUD/USD:0.93642, the offer is valued at approximately US$152 per resource ounce.” Source MinesOnline.com 2014 Citigold’s 11 million ounces at a third of the above value being $50 per
Slide 10: The Right Location
The Right Location 10
Slide 11: Exception in Scale, Quality and Jurisdictional Safety
Exception in Scale, Quality and Jurisdictional Safety In terms of size, grade, explora>on poten>al, produc>on profile and jurisdic>onal safety, the Charters Towers Gold project is, arguably, one of the most profitable undeveloped gold projects in the world. 11 million ounces gold Resource 14 grams per
Slide 12: Location, Location, Location
Location, Location, Location Low poli/cal risk, access to government and local infrastructure, major port and airport only 1.5 hours by road. All services needed to support mining opera/on and workforce are in place at Charters Towers ensuring efficient development program with majority of funds to be
Slide 13: Committed Stakeholders
Committed Stakeholders “The resources sector is one of the four pillars our State economy is built on and we will continue to work to ensure it is strongly supported by the Government.” Tim Nicholls, Queensland Treasurer ü Strong and /me-‐tested community support ü Natural resource projects integ
Slide 14: The Right Commodity
The Right Commodity 14
Slide 15: Major Discoveries Increasingly Rare
Major Discoveries Increasingly Rare Only 156 mines in the world produce over 100,000 ounces This drops to only 21 mines that produce over 500,000 ounces Source: RBC 15 Source: Natural Resource Holdings
Slide 16: Cost on the Rise due to Lower Grades
Cost on the Rise due to Lower Grades According to GFMS 2013 Gold Survey, the largest increase in cash cost for the top 5 gold miners in the world from 2011 to 2012 was due to the decline in gold grades Low ore grades have significant impact on a gold miners balance sheet. 16
Slide 17: The Right Cost Profile
The Right Cost Profile 17
Slide 18: Low Cost Profile
Low Cost Profile Low Cost Profile in a Climate of Industry Declining Grades and Escala/ng Costs 44% What does gold production cost? Less than current industry average § Global gold industry experienced substantial cost escalation and a decrease in grade over the last decade Citigold’s low cost profi
Slide 19: Technology ensuring low cost Reserve conversion
Technology ensuring low cost Reserve conversion ² NEW drilling style to achieve high meter rates, faster explora/on of target structures and cheaper to achieve results ² NEW modeling soPware to beQer analyze data in 3D ² NEW geophysics programs to “virtually see” into the Earth, ² NEW method for
Slide 20: Superior Leverage to Gold
Superior Leverage to Gold ~2 x Increase in Gold Price Increases NPV ~6x 20
Slide 21: World Production Cliff
World Production Cliff Project reaches maximum planned production at vital time for gold industry. 2019 onward, material declines in gold production across the industry. Project queue & discovery frequency inadequate to replace production, creating a supply-demand disequilibrium in gold. Citigold fo
Slide 22: Plan $200 million per annum net cash flow circa 30 year mine life
Plan $200 million per annum net cash flow circa 30 year mine life Rich Resource with a circa 30-‐Year Mine Life 22
Slide 23: The Right Team
The Right Team 23
Slide 24: New Management focused on rapid growth in production
New Management focused on rapid growth in production Ø Extensive experience in project development and financing including structured finance with Dexia Banque Internationale in London. " Ø Business systems improvement work with UK logistics company First Group." Matthew Martin! Ø Extensive track
Slide 25: Experienced Board focused on Shareholders’ Returns
Experienced Board focused on Shareholders’ Returns Ø 30 years actively involved in gold exploration and mining with extensive hands-on Mark Lynch! experience in mine operations and management. " Executive Chairman" Ø Focus is on business efficiency centred around strategic planning and innovation.
Slide 26: The Right Focus
The Right Focus 26
Slide 27: Minimal Central development to Commence gold production
Minimal Central development to Commence gold production Ini/al stage of development will see the exis/ng decline extended to RL 580 where a Surface expression of a large number of ven/la/on shak narrow cross cuing mineralised reefs and and second means the associated gold mineralisa/on being removed
Slide 28: Initial Central gold production boosted by potentially four reefs
Initial Central gold production boosted by potentially four reefs C03 C38 (Outside R&R) C37 (Outside R&R) Planned C36 (Outside R&R) Decline extension Jump off point from C05 exis>ng decline 28
Slide 29: Central area contains very high grade reefs
Central area contains very high grade reefs ü Ini>al focus in Central area is C03, C38 and two cross reefs ü Cross reefs historically contained very high grade and significant ounces. • Historical produc>on on the Victory cross reef, C37, generated revenue of $2,628* per ore tonne from mining 98,80
Slide 30: Refurbishment of existing Central access ramp almost complete
Refurbishment of existing Central access ramp almost complete 30
Slide 31: Clear Plan for Central mine Production Growth
Clear Plan for Central mine Production Growth 31
Slide 32: A Solid Base to Build On
A Solid Base to Build On 32
Slide 33: Infrastructure in place for growth
Infrastructure in place for growth Processing plant at All services needed to Charters Towers support mining operation § Crushers and workforce are in § Fine Ore bin place at Charters Towers § Ball Mill § Interstate highway § Leach Tanks § Sealed roads to all sites § Gold furnace § Railroad
Slide 34: Excellent recoveries from simple metallurgy
Excellent recoveries from simple metallurgy Gold plant § Citigold has established a Carbon in Leach (CIL) process plant with a 340,000 tonne per annum ore capacity. § The ore mined is free milling which greatly reduces the costs of processing while improving the recoveries. Ore simple to process Q
Slide 35: Approvals and Rights Obtained
Approvals and Rights Obtained Mining Leases 26.4 sq km Mineral Development Licences 66.4 sq km Exploration Permits & EPMAs 1,483 sq km 35
Slide 36: A Solid Base Established for Growth
A Solid Base Established for Growth Large deposit" 11 million ounce Resource" P! High grade" 14 grams per tonne Resource grade" P! Resources and Reserves are on granted Mining Leases Approvals" and Mineral Development Licences. Environmental licence and plan of operations in place" P" One project
Slide 37: Citigold Corporation Limited Queen Street
Citigold Corporation Limited 500 Queen Street Brisbane QLD 4000 Australia Tel:+61 (0)7 3834 0000 Fax:+61 (0)7 3834 0011 37