AGM Presentation - Prodigy Gold · [email protected]/t including [email protected]/t Capstan Prospect • Similar rock...

27
AGM Presentation October 2018

Transcript of AGM Presentation - Prodigy Gold · [email protected]/t including [email protected]/t Capstan Prospect • Similar rock...

Page 1: AGM Presentation - Prodigy Gold · 9m@1.4g/t including 3m@2.8g/t Capstan Prospect • Similar rock sequence and structural setting as 14Moz Callie Deposit • 8km of gold anomalism

AGM PresentationOctober 2018

Page 2: AGM Presentation - Prodigy Gold · 9m@1.4g/t including 3m@2.8g/t Capstan Prospect • Similar rock sequence and structural setting as 14Moz Callie Deposit • 8km of gold anomalism

Important information and competent person

IMPORTANT INFORMATION

This presentation has been prepared by Prodigy Gold NL (“Prodigy Gold” or the “Company”). This

presentation is for information purposes only and should not be considered as an offer or invitation to

subscribe for or purchase any securities in the Company or as an inducement to make an offer or

invitation with respect to those securities. No agreement to subscribe for securities in the Company

will be entered into on the basis of this presentation.

This presentation contains forecasts and forward looking statements and information which are based

on internal business data and information obtained from external sources. Forward looking

statements may be identified by the use of words such as “anticipate”, “expect”, “estimate”,

“planned”, “forecast”, “likely”, “intend” and other similar expressions. Such forecasts and information

are not a guarantee of future performance and involve unknown risks, uncertainties and contingencies

which may impact future outcomes on the Company. Actual results and developments will therefore

almost certainly differ materially from those expressed or implied. Prodigy Gold has not audited or

investigated the accuracy or completeness of the information, statements and opinions contained in

this presentation. Accordingly, to the maximum extent permitted by law, Prodigy Gold makes no

representation and gives no assurance, guarantee or warranty, express or implied, as to, and takes no

responsibility and assumes no liability for, the authenticity, validity, accuracy, suitability or

completeness of, or any errors in or omission from, any information, statement or opinion contained

in this presentation.

The information in this presentation is given in summary form and does not purport to be all inclusive

or contain all information which you may require in order to make an informed assessment of the

Company’s prospects. Nothing contained in this presentation constitutes investment advice, financial

product advice or legal, tax, accounting or other advice, nor does it take into account the financial

situation, objectives or needs of any person. Prodigy Gold is not licensed to provide financial product

advice.

You should not act or refrain from acting in reliance on this presentation material. You should conduct

your own investigation, perform your own analysis and obtain independent professional advice, in

order to satisfy yourself as to the accuracy and completeness of the information, statements and

opinions contained in this presentation and in making any investment decision in respect of Prodigy

Gold.

COMPETENT PERSONS STATEMENT

The information in this presentation relating to exploration targets and exploration results is based on

information reviewed and checked by Mr Matt Briggs who is a Member of The Australasian Institute of

Mining and Metallurgy. Mr Briggs is a full time employee of Prodigy Gold NL and has sufficient

experience which is relevant to the style of mineralisation and type of deposit under consideration and

to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 edition

of the “Australasian Code for Reporting Exploration Results, Mineral Resources and Ore Reserves”. Mr

Briggs consents to the inclusion in the documents of the matters based on this information in the form

and context in which it appears.

The Company confirms that it is not aware of any new information or data that materially affects the

information included in the original market announcement and, in the case of estimates of Mineral

Resources that all material assumptions and technical parameters underpinning the estimates 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

been materially modified from the original market announcement.

Refer to previous Company ASX announcements for full resource estimation details, drill hole details,

and intercept calculations.

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Page 3: AGM Presentation - Prodigy Gold · 9m@1.4g/t including 3m@2.8g/t Capstan Prospect • Similar rock sequence and structural setting as 14Moz Callie Deposit • 8km of gold anomalism

Why Prodigy Gold?

Unique greenfields and brownfields exploration portfolio

• Experienced team are actively hunting for a major discovery in the highly prospective Tanami Province

• Massive strategic land holding in proven multi-million ounce district (Callie Mine - Newmont)

Aggressive exploration program on 100% owned projects

• Aggressive work program planned to screen all priority projects for large deposits

• 35,000m drilled in 2018 + JV partners activity

• 15.7Mt @ 2.0g/t for 1.01Moz Resource

JV partners accelerating non-core Cu-Au and Base Metal Projects

• IGO to spend $6M to earn 70% of Lake Mackay – IGO 9% holder of Prodigy Gold shares

• Gladiator Resources to spend $6.5M to earn 70% of North Arunta

• Newcrest to spend $12M to earn up to 75% of Euro

Strong balance sheet and supportive shareholders

• ~$6.1 million cash at 30 June 2018 (excluding A$2.4m cash reserved for environmental bonds)

• Register strengthened by supportive shareholders

Prodigy Gold has what an explorer needs and a producer wants

JVs

1Moz

Funded

Queensland

New South Wales

Victoria

Tasmania

Western Australia

South Australia

NorthernTerritory

Tanami

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Page 4: AGM Presentation - Prodigy Gold · 9m@1.4g/t including 3m@2.8g/t Capstan Prospect • Similar rock sequence and structural setting as 14Moz Callie Deposit • 8km of gold anomalism

Corporate OverviewBoard of Directors

Tommy McKeith Non-Executive Chairman

Matt Briggs Managing Director

Brett Smith Non-Executive Director

Mark Faul Non-Executive Director

Capital structure ASX:PRX

Shares on Issue 435.6m

Unlisted options 24m

Net Cash1 A$6.1m

Market Cap2 A$37.5m

1 Available cash excludes A$2.4m cash reserved for required cash backing of environmental bonds as at 30 June 2018 (ASX: 31 July 2018)

2 Based on closing share price of $0.086 as at 12 October 20183 Substantial shareholders as at 30 September 2018

Shareholding structure3

15.6%

13.6%

10.0%

9.0%

6.0

%

45.8%

Pacific Road Capital

APAC Resources Capital

St Barbara

IGO

Craton Capital

Other

4

Historical share price

Page 5: AGM Presentation - Prodigy Gold · 9m@1.4g/t including 3m@2.8g/t Capstan Prospect • Similar rock sequence and structural setting as 14Moz Callie Deposit • 8km of gold anomalism

Experienced Management

Non-Executive Chairman - Mr Tommy McKeith BSc Hons (Geol), GDE (Mining), MBA, Fellow AusIMM

• Resource company executive with 28 years’ experience in various exploration, business development, mine geology and executive leadership roles

• Led exploration teams to several significant discoveries and concluded several significant business development transactions

• Formerly Executive Vice President: Growth and International Projects for Gold Fields Ltd, CEO of Troy Resources Ltd and held non-executive directorroles at Sino Gold Ltd and Avoca Resources

• Non-executive director of Evolution Mining Ltd

Managing Director - Mr Matt Briggs BSc (Geology), Member AusIMM

• 20 years’ experience in Australia and internationally in various aspects of mine geology, exploration, project management and strategic leadership inthe gold industry

• Previously headed Group Strategic Planning for Gold Fields Limited

• Directly involved or managed teams that have discovered several multi-million ounce gold deposits

Exploration Manager - Mr Neil Jones MSc (Geology)

• Geologist with 18 years’ experience including greenfields and brownfields exploration

• Previous roles as a geologist for Gold Fields, PMI Gold and Troy Resources exploring primarily for gold

• Extensive experience in Paleoproterozoic and Archean terrains around the globe

Successful explorers that understand what it takes to build a mine

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Page 6: AGM Presentation - Prodigy Gold · 9m@1.4g/t including 3m@2.8g/t Capstan Prospect • Similar rock sequence and structural setting as 14Moz Callie Deposit • 8km of gold anomalism

A Portfolio of Opportunities

Tanami Ground Package

• Same corridors as Callie 14Moz (Newmont) & Groundrush 1.7Moz (NST)

• Extensive tenement package

• Capstan 8km bedrock gold anomaly

• Resources at Twin Bonanza and Suplejack

Euro – Newcrest

• $12M in-ground earn-in to 75%

Lake Mackay JV – IGO

• Cu-Au and Orogenic Au potential

• 2 of 5 targets tested hit mineralisation

• $6M in-ground earn-in to 70%

North Arunta – GLA

• Cu-Au mineralisation

• $6.5M in-ground earn-in to 70%

Exposure to discovery and resource growth in gold and base metals

100% Projects

Joint VenturesCopper, Gold& Base Metal

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Suplejack

Bluebush

Page 7: AGM Presentation - Prodigy Gold · 9m@1.4g/t including 3m@2.8g/t Capstan Prospect • Similar rock sequence and structural setting as 14Moz Callie Deposit • 8km of gold anomalism

Delivering on Strategy

Testing of high priority targetson 100% owned projects

• Rapidly screen for Callie analogue deposits

• Aircore drilling and geochemistry on the highest ranked targets

• Testing of multiple targets at Suplejack and Bluebush including the 8km long gold anomaly at Capstan

Focus resources and accelerate the fullportfolio via Joint Ventures

• North Arunta JV $6.5M earn-in

• Euro farm-in agreement with Newcrest Mining for $12M earn-in

• Lake Mackay JV activities continuing to screen for major deposits with IGO

Well funded for discovery and growth

• $6M raised at a premium to market

• Investment by St Barbara to take a 10% shareholding

• Substantial reduction in holding costs

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Page 8: AGM Presentation - Prodigy Gold · 9m@1.4g/t including 3m@2.8g/t Capstan Prospect • Similar rock sequence and structural setting as 14Moz Callie Deposit • 8km of gold anomalism

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

50,000

ABM 2015 ABM 2018

Are

a (S

qu

are

Kilo

me

tre

s)Advancing the Full Portfolio

Prodigy Gold –other

Newcrest

Focusing technical resources >$30M in-ground expenditure Accelerating discovery

Prodigy Gold –Tanami Prodigy Gold

Independence Group

Gladiator

>$24M ExplorationEarn-ins

Prodigy Gold100% Projects

“The Tanami is becoming the exploration destination of choice for major Australian gold producers”

North Arunta

Euro

Euro

Lake Mackay

Prodigy GoldABM 2015

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Page 9: AGM Presentation - Prodigy Gold · 9m@1.4g/t including 3m@2.8g/t Capstan Prospect • Similar rock sequence and structural setting as 14Moz Callie Deposit • 8km of gold anomalism

Accelerating Towards Discovery

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Suplejack309koz (+51%)

CGSG Target& Ranking

2016 2017 2018

Joint VenturesCopper, Gold& Base Metal

Capstan DD& RC

North AruntaGLA JV

NewcrestEuro JV

Grapple DD800m plunge

Blaze / HeatwaveWidespread soil anom.

Soils & Ground EM

IGO Joint VentureAgreement

St Barbara10% Equity

Capstan AC8km Au area

Suplejack High grade RC

Capstan AC4.0g/t Gold

Ark MinesHoA Old Pirate

Capstan AC4.5km Au trends

Lake MackayAirborne EM

100% Projects

Oct 2016New Management

~$2M p.a.greenfields

FY2019>$10M greenfields

Kroda IP

Suplejack AC1.3g/t Au

Dune IP

Page 10: AGM Presentation - Prodigy Gold · 9m@1.4g/t including 3m@2.8g/t Capstan Prospect • Similar rock sequence and structural setting as 14Moz Callie Deposit • 8km of gold anomalism

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2018 Activities - 100% Owned Projects

Page 11: AGM Presentation - Prodigy Gold · 9m@1.4g/t including 3m@2.8g/t Capstan Prospect • Similar rock sequence and structural setting as 14Moz Callie Deposit • 8km of gold anomalism

100% Owned Priority Projects13 of 15 Tanami deposits are exposed at surface

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Suplejack

Bluebush

Strategy

• Focus on the same rocks in the same structural

setting as the target deposits

• Systematic exploration

• 1km x 1km bedrock drilling + geochem +

geophysics

• Framework AC to see through cover

Future Work

• 145km aircore drilling to screen Tanami targets

starting at Bluebush

• Aircore & RC drilling to consolidate resources at Suplejack

Callie 14Moz The Granites

Oberon

Groundrush

Old Pirate Jim’s

CTJV

Windy Hill

Surface Geology Map RTP Magnetics

95% of the Tanami has shallow sand cover concealing deposits

Suplejack

Bluebush

PRX

Page 12: AGM Presentation - Prodigy Gold · 9m@1.4g/t including 3m@2.8g/t Capstan Prospect • Similar rock sequence and structural setting as 14Moz Callie Deposit • 8km of gold anomalism

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Euro JV• Spoils and Mapping• Airborne Magnetics• IP Surveys Underway• RC Drilling Planned

Suplejack• Resource Update• RC Drilling • AC Drilling Planned• CSIRO Study Phase 1Birrindudu

• Project Reviews• Field Reconnaissance• Ni, Co, Au and Cu

Tobruk• Project Reviews• Field Reconnaissance

Bluebush• 3 AC Campaigns• Stratigraphic DD • RC Drilling (mid-October)

• Airborne Magnetics• Spoil and Mapping• CSIRO Study Phase 2 Callie

14 Moz

2018 Tanami Exploration Activities

Diamond Drilling at Capstan

Reconnaissance at Euro

1280 1290 1300 1310

-190

-200

-210

NTGS TanamiAeromagnetic Survey Outline

Page 13: AGM Presentation - Prodigy Gold · 9m@1.4g/t including 3m@2.8g/t Capstan Prospect • Similar rock sequence and structural setting as 14Moz Callie Deposit • 8km of gold anomalism

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0

2000

4000

6000

8000

10000

12000

14000

Ap

r-1

0

Jun

-10

Au

g-1

0

Oct

-10

De

c-1

0

Feb

-11

Ap

r-1

1

Jun

-11

Au

g-1

1

Oct

-11

De

c-1

1

Feb

-12

Ap

r-1

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Jun

-12

Au

g-1

2

Oct

-12

De

c-1

2

Feb

-13

Ap

r-1

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Jun

-13

Au

g-1

3

Oct

-13

De

c-1

3

Feb

-14

Ap

r-1

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Jun

-14

Au

g-1

4

Oct

-14

De

c-1

4

Feb

-15

Ap

r-1

5

Jun

-15

Au

g-1

5

Oct

-15

De

c-1

5

Feb

-16

Ap

r-1

6

Jun

-16

Au

g-1

6

Oct

-16

De

c-1

6

Feb

-17

Ap

r-1

7

Jun

-17

Au

g-1

7

Oct

-17

De

c-1

7

Feb

-18

Ap

r-1

8

Jun

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Au

g-1

8

Oct

-18

Early stage exploration metres drilled

Metres

2010 to 2016 47,551 metres

in 6 years

>2017 66,494 metres

in 2 years

Aggressive Exploration Program

• ~35,000m AC and RAB completed 2018

• 950m co-funded diamond drilling

• ~3,500m RC drilling planned

• 644 spoils (geochemical samples)

Staged work program underway to screen all priority projects for large deposits

Page 14: AGM Presentation - Prodigy Gold · 9m@1.4g/t including 3m@2.8g/t Capstan Prospect • Similar rock sequence and structural setting as 14Moz Callie Deposit • 8km of gold anomalism

BLDD001

BLDD002

Strategy Yielding Results

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Capstan

Galaxy

ASX 5 June 2018, 12 June 2018, 2 August 2018 & 15 October 2018

[email protected]/t

[email protected]/t

including [email protected]/t

Capstan Prospect• Similar rock sequence and structural setting as 14Moz Callie Deposit

• 8km of gold anomalism

• Larger anomaly footprint than was seen at the same stage of drilling at Callie

[email protected]/t

[email protected]/t

[email protected]/t (EOH)

[email protected]/t

[email protected]/t

including [email protected]/t

[email protected]/t

[email protected]/t

[email protected]/t (EOH)Capstan

North Capstan

East

Top Hat

Hat

Capstan

Anticline

Final Assays

Pending

Page 15: AGM Presentation - Prodigy Gold · 9m@1.4g/t including 3m@2.8g/t Capstan Prospect • Similar rock sequence and structural setting as 14Moz Callie Deposit • 8km of gold anomalism

Capstan NTGS Co-funded DD DrillingFirst diamond holes into the Capstan area - unlocking the geology

A A’ Capstan Diamond Drilling

• Two NTGS co-funded stratigraphic diamond

holes completed for 951.4m

• BLDD002 intersected 43m of pyrite altered

porphyry and sediment – assays pending

BLDD002 (122m) BLDD002 (399.5m)

BLDD002 Schematic Section

15

ASX 2 Aug 2018 ASX 15 Oct 2018

Page 16: AGM Presentation - Prodigy Gold · 9m@1.4g/t including 3m@2.8g/t Capstan Prospect • Similar rock sequence and structural setting as 14Moz Callie Deposit • 8km of gold anomalism

BLDD001

Capstan RC

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Capstan RC

• 3,500m RC commencing mid-October

• Drilling will provide first bedrock test of coherent goldtrends

• Four priority targets areas to be RC drilled

[email protected]/t

[email protected]/t

including [email protected]/t

[email protected]/t

[email protected]/t

[email protected]/t (EOH)

[email protected]/t

including [email protected]/t

[email protected]/t

[email protected]/t

[email protected]/t (EOH)

Capstan

North

Capstan

East

Top Hat

RC Priority Area

BLDD002

Prodigy RC Drilling (Suplejack 2017)

ASX 5 June 2018, 12 June 2018, 2 August 2018 & 15 October 2018

Capstan

Anticline

Page 17: AGM Presentation - Prodigy Gold · 9m@1.4g/t including 3m@2.8g/t Capstan Prospect • Similar rock sequence and structural setting as 14Moz Callie Deposit • 8km of gold anomalism

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Airborne Geophysics

• Massive NTGS survey of the Tanami Region

• 275,000 line km (200m spacing) airborne magnetic

survey at no cost to PRX

• PRX co-funded to infill two areas to 100m spacing

• Capstan

• Euro JV

NTGS Airborne Geophysics SurveyResourcing the Territory initiative supporting early stage exploration

NTGS airborne magnetic survey over Capstan

Capstan 100m line spaced infill

Euro 100m line spaced infill

NTGS 200m line spaced survey outline

Tanami Region Magnetics

Page 18: AGM Presentation - Prodigy Gold · 9m@1.4g/t including 3m@2.8g/t Capstan Prospect • Similar rock sequence and structural setting as 14Moz Callie Deposit • 8km of gold anomalism

Mapping Stratigraphy with LithogeochemistryLitho-geochemistry characterises and maps favourable rocks units

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PRX – CSIRO Collaborative Project

• Supports geophysical interpretation and deposit targeting

• Systematically building the Tanami wide litho-geochemical database

• 1,263 historic RAB/AC spoils collected

• Innovative use of historic drilling samples

BluebushCapstanApertawongaGalaxyCSIRO Study Pt 2

SuplejackCSIRO Study Pt 1

Collecting drill spoils from historic holes

Page 19: AGM Presentation - Prodigy Gold · 9m@1.4g/t including 3m@2.8g/t Capstan Prospect • Similar rock sequence and structural setting as 14Moz Callie Deposit • 8km of gold anomalism

Suplejack Project

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Emerging camp scale opportunity

• 4.9 Mt at 1.95g/t for 310koz of gold1

• Strategic Resource• 19km from 1.6Moz Groundrush (Northern Star)

• 58km from Central Tanami JV Plant (Northern Star)

• 37% of gold is in oxide and transitional• High grade controlled by intersection of structure with

mafic sediments• Growth potential on extensions and additional targets

1ASX 31 July 2018

[email protected]/t

[email protected]/t

[email protected]/t

[email protected]/t

Post 2017 AGM results

Page 20: AGM Presentation - Prodigy Gold · 9m@1.4g/t including 3m@2.8g/t Capstan Prospect • Similar rock sequence and structural setting as 14Moz Callie Deposit • 8km of gold anomalism

Sustainability

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Environmental Management

• Minimised line clearing for reconnaissance drilling and reduced environmental footprint

• Ongoing rehabilitation of drill pads

• On-country meetings with Traditional Owners

2018 drill pad at Capstan

2018 aircore drilling at Capstan

Rehabilitated drill pad

2016 RC drill pad at Hyperion Regrowth over drill pad post wet season

Page 21: AGM Presentation - Prodigy Gold · 9m@1.4g/t including 3m@2.8g/t Capstan Prospect • Similar rock sequence and structural setting as 14Moz Callie Deposit • 8km of gold anomalism

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Joint Ventures

Page 22: AGM Presentation - Prodigy Gold · 9m@1.4g/t including 3m@2.8g/t Capstan Prospect • Similar rock sequence and structural setting as 14Moz Callie Deposit • 8km of gold anomalism

IGO JV - Lake Mackay

• ~13,000km2 belt scale project

• Additional large gold and base metal anomalies detected

• Soil sampling continuing along the >1,000km2 corridor

• EM survey to be followed by infill soils, moving loop EM and RC/DD drilling

Province scale Cu-Au and base metal opportunity

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12,000 line km airborne EM survey underway

Airborne EM Survey Status

Page 23: AGM Presentation - Prodigy Gold · 9m@1.4g/t including 3m@2.8g/t Capstan Prospect • Similar rock sequence and structural setting as 14Moz Callie Deposit • 8km of gold anomalism

North Arunta / Euro JV

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North Arunta – Gladiator $6.5M earn-in to 70%

• Cu-Au potential along the Willowra Structure

• Multiple multi-kilometre-scale geochemical-geophysical-structural targets

• Recent IP geophysics defined large anomalies below previous drilling

• RC drilling planned for 2018

Euro – Newcrest $12M earn-in 75%

• Oberon and Callie style targets

• Historic aircore results of up to 0.25g/t Au not followed up parallel to Oberon 0.42Moz

• IP surveys underway

• RC drilling planned to test IP targets identified

Callie 14Moz The Granites

Oberon

Dune IP

Vivitar IP

Page 24: AGM Presentation - Prodigy Gold · 9m@1.4g/t including 3m@2.8g/t Capstan Prospect • Similar rock sequence and structural setting as 14Moz Callie Deposit • 8km of gold anomalism

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Page 25: AGM Presentation - Prodigy Gold · 9m@1.4g/t including 3m@2.8g/t Capstan Prospect • Similar rock sequence and structural setting as 14Moz Callie Deposit • 8km of gold anomalism

Investment proposition

JVs

Unique Greenfields and Brownfields Portfolio

FundedSupportive, high quality shareholders

1Moz

Aggressive exploration program underway

Exposure to multiple committed JV partners

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Page 26: AGM Presentation - Prodigy Gold · 9m@1.4g/t including 3m@2.8g/t Capstan Prospect • Similar rock sequence and structural setting as 14Moz Callie Deposit • 8km of gold anomalism

Prodigy Gold NL

ASX:PRX

Contact us

+61 8 9423 9777

[email protected]

Level 1, 141 Broadway, Nedlands WA 6009, Australia

Page 27: AGM Presentation - Prodigy Gold · 9m@1.4g/t including 3m@2.8g/t Capstan Prospect • Similar rock sequence and structural setting as 14Moz Callie Deposit • 8km of gold anomalism

Prodigy Gold Resource Summary

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Project DateIndicated Inferred Total

Cut-Off Grade (g/t)

Tonnes(Mt)

Grade(g/t Au)

Metal(Koz)

Tonnes(Mt)

Grade(g/t Au)

Metal(Koz)

Tonnes(Mt)

Grade(g/t Au)

Metal(Koz)

Old Pirate 1 Aug-16 1.0 0.04 4.6 7 0.72 4.7 109 0.76 4.7 115

Buccaneer2 Aug-17 1.0 1.2 1.7 65 8.8 1.8 520 10.0 1.8 585

Suplejack3 Jul-18 0.8 0.92 2.4 69 4.0 1.9 240 4.9 2.0 310

Total various 2.2 2.0 141 13.5 2.0 869 15.7 2.0 1,010

Total Resource: 15.7Mt at 2.0g/t for 1.01 Moz of gold1ASX 19 Aug 2016 2 ASX 1 Sept 2017 3ASX 31 July 2018