DISCLAIMER
This presentation does not constitute investment advice. Neither this presentation nor the information contained in it constitutes an offer, invitation, solicitation or recommendation in relation to the purchase or sale of shares in any jurisdiction. This presentation does not take into account any person's particular investment objectives, financial resources or other relevant circumstances and the opinions and recommendations in this presentation are not intended to represent recommendations of particular investments to particular persons. All securities transactions involve risks, which include (among others) the risk of adverse or unanticipated market, financial or political developments.
To the fullest extent permitted by law, Calidus Resources Limited (the Company or Calidus) does not make any representation or warranty, express or implied, as to the accuracy or completeness of any information, statements, opinions, estimates, forecasts or other representations contained in this presentation. No responsibility for any errors or omissions from this presentation arising out of negligence or otherwise is accepted.
This presentation may include forward looking statements. Forward looking statements are only predictions and are subject to risks, uncertainties and assumptions which are outside the control of Calidus. These risks, uncertainties and assumptions include commodity prices, currency fluctuations, economic and financial market conditions in various countries and regions, environmental risks and legislative, fiscal or regulatory developments, political risks, project delay or advancement, approvals and cost estimates. Actual values, results or events may be materially different to those expressed or implied in this presentation. Given these uncertainties, readers are cautioned not to place reliance on forward looking statements. Any forward looking statements in this presentation speak only at the date of issue of this presentation. Subject to any continuing obligations under applicable law and the ASX Listing Rules, Calidus does not undertake any obligation to update or revise any information or any of the forward looking statements in this presentation or any changes in events, conditions or circumstances on which any such forward looking statement is based.
COMPLIANCE STATEMENT
The information in this presentation that relates to Exploration Results and Mineral Resources released previously on the ASX.
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, in the case of mineral resources estimates, all material assumptions and technical parameters underpinning the estimates 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 announcements.
Mr Daniel Saunders is principal and a full time employee of GeoServ Consulting Pty Ltd, and is a Member of the AusIMM. Mr Daniel Saunders has sufficient experience that is relevant to the style of mineralisation and types of deposit under consideration and to the activities undertaken to qualify as a Competent Person as defined in the 2012 Edition of the JORC Code.
Ms Jane Allen is a full time employee of the Company, and is a member of the AusIMM. Ms Jane Allen has sufficient experience that is relevant to the style of mineralisation and type of deposits under consideration and to the activates undertaken to qualify as a Competent Person as defined in the 2012 Edition of the JORC Code.
• Gold belt consolidated for the first time
• Existing Resource of 410,000oz at 2.2g/t from surface
• Significant exploration upside defined with immediate drill targets, with enhanced target base following Novo JV
HIGH QUALITY ASSET
AGGRESSIVE EXPLORATION PROGRAM
• Well funded with ~$11m cash following recent capital raising
• Strategy to rapidly expand resource via brownfields extensions to current mineralisation and regional targets
• Resource Upgrade due late 2017
PROVEN MANAGEMENT
• Experienced in all aspects of project development from exploration through development and into production
• Raised significant capital for gold exploration and development
CAPITAL STRUCTURESHARES ON ISSUE 994.2
Million
MARKET CAP(undiluted at A$0.044)
$43.7Million
CASH(end Sep Qtr)
$11Million
DEBT $0
ENTERPRISE VALUE $32.7Million
OPTIONS(will raise $4.7m if exercised)
192.5Million1
PERFORMANCE SHARES
A- 250 Million2
B- 275 Million3
BOARD OF DIRECTORS & MANAGEMENT
KEITH COUGHLAN NON-EXECUTIVE CHAIRMAN
(Corporate)
30 years’ experience in stockbroking and funds management on ASX, AIM and TSX.Talga, European Metals, Southern Hemisphere Mining.
DAVID REEVESMANAGING DIRECTOR
(Mining Engineer)
25 years’ mining experience in Australia, Africa and Europe. GCM, Delta Gold, Zimplats, European Metals Holdings.
ADAM MIETHKENON-EXECUTIVE DIRECTOR
(Geologist)
Over 15 years’ experience in exploration and mine geology, funds management and corporate advisory. Rio Tinto, Snowden, Regent Pacific Group, Argonaut.
PETER HEPBURN-BROWNNON-EXECUTIVE DIRECTOR
(Mining Engineer)
35 years’ international mining experience, managing gold mines in Australia and internationally, Medusa Mining, Focus Minerals.
JANE ALLENGEOLOGY MANAGER
30 years international experience with Anglogold Ashanti, Resolute Mining Limited, Avion Gold Corporation and GCM
JAMES CARTERCOMPANY SECRETARY AND CFO
CPA and Chartered Company Secretarywith 20 years’ experience. Straits Resources, Keras PLC.
1. 118.5m @ 2.5c, 50m @ 2.0c and 24m @ 3.0c2. On 500,000 ounces of Indicated Resource
3. On completion of a positive PFS4. Undiluted assuming approval of Tranche 2 placement
* Keras PLC shares escrowed for 24 months, CAI
board and management own 18 % of Keras
3% 4%
18%
31%
44%
CAI Shareholder Breakdown4
Board & Mgmt Direct
Board and Mgmt via Keras
Keras Plc*
Institutions
Other
ASX LISTINGListing of Calidus
Resources (ASX:CAI) onto the ASX 22/06/2017
EPMINEX CONSOLIDATIONFurther consolidation of
tenements at Warrawoona
CAPITAL RAISE $10 million
oversubscribed institutional raise
DRILL PROGRAM 12,600m drill program and met test work –
June 2017
NOVO JOINT VENTURE
Joint Venture of Novo tenements Sep 2017
EXPANDED PROGRAM
Expanded drilling program to
commence at Klondyke East
COMPLETED Maiden drill
program that has delivered
outstanding results to date
RESOURCE UPDATE
Warrawoona resource update in late 2017
2018 EXPLORATION
PROGRAMRC and diamond drilling program,
mapping, soils
PFSPotential
commencement in H2 2018
HISTORICAL GOLD MINING DISTRICT
• First mined in 1897
• +200 historic mines and fragmented tenement ownership
• Last major drill campaign in 1991
PROJECT HIGHLIGHTS
• 363km2 under control, application or option
• Novo JV signed that has expanded footprint considerably via the 70% earn in to the Novo Tenements that total 184Km2.
• 15,000m resource and infill drill campaign completed with a resource update expected late this calendar year.
1. Reported in accordance with JORC (2012) Guidelines – Includes Klondyke and Copenhagen
• Current Resource:
• 5.6Mt at 2.08g/t Au for 374,000oz (0.8g/t wireframe)
• Confined to just 2km of 7.5km strike of Klondyke shear
• Large, high grade intercepts in drilling
• Metallurgical test work to 150m depth shows free milling ore with recoveries of 93% to 96%
• Clear exploration strategy to test infill zones and extensions to current resource
• Predictable geology, open along-strike and down-dip
• Untested parallel veins and cross-cutting features
• A total of 15,611m has now been drilled since listing in early 2017 with all drill holes intersecting ore grade mineralisation.
• 78% of historical drilled intercepts are shallower than 100m
• Defined mineralisation extends 7.5km along strike with large number of workings
• No geophysics and no or very limited exploration and testing of parallel structures
• Tangible upside via infill and extensional drilling
* All grades shown are life of mine average grades – source MINDEX
INITIAL DRILL PROGRAMME
• 92 holes announced, best intercepts recorded 6m @ 63.31g/t Au and [email protected]/t Au
• All holes have hit ore grade mineralisation to-date including all holes in gap zone.
• Located 20km south east of Marble Bar
• 2 hours drive from Port Hedland on sealed road –Australia’s largest port
• All weather, council maintained road from Marble Bar to leases
• Access to fresh water
• Sealed airstrip in Marble Bar
• Mining Registrar located in Marble Bar
• Accommodation for 100 in single rooms
• Mad Clappin Harry’s, the best coffee in the NW!
• Further upside via additional largely unexplored multiple shears immediately parallel to(St George Shear) and west of main shear
• Novo JV now puts Calidus in control of the entire Warrawoona Greenstone Belt
FIELDINGS GULLY• Recent drilling shows mineralisation
open in all directions, results incl.16m @ 3.52g/t from 71m8m @ 3.97 g/t from 22m21m @ 1.85g/t from 55m
COPENHAGEN• JORC 2012 Inferred Mineral Resource
of 180,000t @ 6.1g/t to maximum of 100m depth and along 140m of strike
CORONATION• Lies 3km along strike of Copenhagen
and is drilled over 190m strike length9m @ 5.21 g/t from 9m8m @ 7.64 g/t from 64m3m @ 16.67 g/t from 16m12m @ 7.98 g/t from surface2m @ 31.5 g/t from 30m
REMOTE SENSING OVERVIEW• ASTER imaging received and being interpreted –
identifies prospective shears•Old aeromag reports have been sourced to assist
GROUND TRUTH• XRF analysis underway by CSIRO on drill chips and
core• Allows portable XRF to be used in field to
objectively determine rock type and alteration which enables detailed geological maps to be developed rapidly and accurately
DETAILED GEOLOGY• Structural mapping by CSIRO• Allows ore models to be generated to allow
targeted drilling• Klondyke structural work shows vertical ore-
shoots predominant
MARBLE BAR GOLDFIELD
• Produced 170,000oz from 196,500t, no modern exploration
• 35 recorded old workings on tenement – all less than 30m deep
• Conglomerates will form part of Calidus’ greenfields exploration program moving forward
• 41km of strike outcropping Mt Roe basalt, targeted stratigraphy for conglomerates
• 36sqkm of Mt Roe basalt
• Initial mapping underway with separate team, flat nuggets identified near Marble Bar in initial reconaissance
Resource Upgrade and PFS
• Expand Resource
• Increase confidence
Conglomerates & Greenfield Exploration
• Assess the extent of conglomerate outcrop
• Identify new potential drill targets
Drilling Underway at Novo JV
• Expand throughout Warrawoona Greenstone Belt
CAI
S2R
GOR
DCN
WAF
GCY
EMR
EAR
KIN
CMM
GPR
ABU
BSR
CAS
ORR
PGO
RTG
AZM
AUC
RVY
EGS
-
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
- 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000
Re
sou
rce
Gra
de
(g/
t A
u)
Resources Ounces
CAI
*Bubble Size Represents Enterprise Value
1. Data at 24 July 2017
• CAI, ARV, DEG and KAI all have recently announced significant investment by Novo or Novo’s major shareholders –Sprott
• Calidus share price increase based on tangible drill intercepts
1 2
1. Mid Mkt. Cap Index (>$25m) includes – CHN, HAO and VXR 18 Nov 172. Small Mkt. Cap Index (<$25m) includes – DGO, IPT, KZR, CDT, RTR and SUH
$-
$0.02
$0.04
$0.06
$0.08
$0.10
$0.12
$0.14
$0.16
$0.18
Jun-17 Jul-17 Aug-17 Sep-17 Oct-17
Co
mm
on
Bas
e Sh
are
Pri
ce (
$A
/Sh
are
)
CAI ARV DEG KAI Mid Mkt. Cap Index Small Mkt. Cap Index
• On a resource ounce basis, Calidus is significantly undervalued versus its Pilbara peers, this undervaluation will increase on resource upgrade
• This also applies on a km of conglomerate outcrop basis
1. Data at 19th November 2017
CAIKAI
DEG
ARV
0
50
100
150
200
250
300
0 10 20 30 40 50
EV
Km of Strike of Mt Roe
EV(m)/km of strike Mt Roe Basalt (Bubble Size)
CAIKAI
DEG
ARV
0
50
100
150
200
250
300
- 100,000 200,000 300,000 400,000 500,000 600,000
EV
Ounces
EV/Resource Ounce (Bubble Size)
A FRESH, WELL CAPITALISED STORY IN A TIER 1 JURISDICTION
✓GRANTED MINING LEASES in an emerging Australian gold district withworld class infrastructure
✓ EXISTING HIGH GRADE RESOURCE to be further increased by end of year
✓ POTENTIAL FOR NEW DISCOVERIES given lack of modern or systematicexploration and large number of existing targets
✓ PROVEN BOARD AND MANAGEMENT TEAM in gold exploration, developmentand mining
✓ One of the few INDEPENDENT NEAR-TERM GOLD DEVELOPMENT companieson the ASX
DepositJORC
CategoryCut-Off Grade Tonnes(Mt) Grade Metal
Au (g/t) Au (g/t) (Koz)
Klondyke Inferred 0.5 5.6 2.08 374
Copenhagen Inferred 0.5 0.18 6.1 36
Total 0.5 5.78 2.21 410
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