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TASMAN MINING
Blackwater Gold MineREDEVELOPMENT OF A HIGH-GRADE, LONG LIFE GOLD MINE
TASMAN MINING 2BLACKWATER GOLD MINE
DisclaimerThis presentation has been prepared by Tasman Mining Limited (Tasman) and consists of written materials/slides for a presentation concerning Tasman and the Blackwater Gold Project. By reviewing/attending this presentation, you agree to be bound by the following conditions.
No representation or warranty, express or implied, is made as to the fairness, accuracy, or completeness of the information, contained in the presentation or of the views, opinions and conclusions contained in this material. To the maximum extent permitted by law, Tasman and its related bodies corporate and affiliates, and its respective directors, officers, employees, agents and advisers disclaim any liability (including, without limitation any liability arising from fault or negligence) for any loss or damage arising from any use of this material or its contents, including any error or omission there from, or otherwise arising in connection with it.
Some statements in this presentation are forward-looking statements within the meaning of the US securities laws. Such statements include, but are not limited to, statements with regard to capacity, future production and grades, projections for sales growth, estimated revenues and reserves, targets for cost savings, the construction cost of new projects, projected capital expenditures, the timing of new projects, future cash flow and debt levels, the outlook for minerals and metals prices, the outlook for economic recovery and trends in the trading environment and may be (but are not necessarily) identified by the use of phrases such as “will”, “expect”, “anticipate”, “believe” and “envisage”. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on the circumstances that will occur in the future and may be outside Tasman’s control. Actual results and developments may differ materially from those expressed or implied in such statements because of a number of factors, including levels of demand and market prices, the ability to produce and transport products profitably, the impact of foreign currency exchange rates on market prices and operating costs, operational problems, political uncertainty and economic conditions in relevant areas of the world, the actions of competitors, activities by governmental authorities such as changes in taxation or regulation.
Given these risks and uncertainties, undue reliance should not be placed on forward-looking statements which speak only as at the date of the presentation. Subject to any continuing obligations under applicable law or any relevant stock exchange listing rules, Tasman does not undertake any obligation to publicly release any updates or revisions to any forward looking statements contained in this presentation, whether as a result of any change in Tasman’s expectations in relation to them or any change in events, conditions or circumstances on which any such statement is based.
Certain statistical and other information included in this presentation is sourced from publicly available third party sources and has not been independently verified.
All figures are expressed in US dollars unless stated otherwise.
TASMAN MINING 2
TASMAN MINING 3BLACKWATER GOLD MINE
About Tasman MiningTasman Mining was established by Mark Le Messurier with the purpose of building a new gold miner.
Strategic approach in securing Blackwater as first cornerstone asset
Intention of building a portfolio of development / production assets
Target assets with barriers to development & bring high calibre management, an agile development approach and funding ability
Currently privately held with potential for IPO in 1 – 3 year timeframe
TASMAN MINING 4BLACKWATER GOLD MINE
Managing Director
Mark Le Messurier
Mark is a mining engineer and executive with 37 years of experience in hard rock base metal and precious metal mining. He most recently served as the Chief Operating Officer of Evolution Mining for six years from its foundation in 2011, a leading Australian gold miner with a current market capitalisation of approximately AUD$6bn. Mark has extensive experience in building and operating modern, underground and open pit mining operations. Previous employers included Rio Tinto WMC Barrick and Sinogold.
37 years international experience in hard rock base and precious metal mining
TASMAN MINING 5BLACKWATER GOLD MINE
Blackwater Foundation AssetPROJECT OVERVIEW
Located 20km south of Reefton on the west coast of New Zealand’s South Island
High grade (23 g/t), underground, narrow vein gold mine that produced approximately 730koz from 1908 – 1951
More than US$13M invested in exploration and development studies
Located in region with long mining history and supportive of new economic development
Westport
Reefton
BLACKWATER
Nelson
GOLDEN BAY
Reefton
NEW
ZEALAND
Greymouth
TASMAN MINING 6BLACKWATER GOLD MINE
Agreement to Acquire BlackwaterBLACKWATER GOLD PROJECT
OGC has held the Blackwater project since 2003
OGC determined Blackwater is a non-core asset
In July 2018, Tasman finalised the right to purchase Blackwater
Basic terms of the OceanaGold agreement:• OGC provides Tasman with US$5M in seed funding to support strategy • Tasman to manage the project with OGC to provide technical assistance in New Zealand • Tasman to secure funding to complete decline access within 18 months • Tasman to construct decline access, complete reserve infill drilling, and economic evaluation• Tasman has exclusive right to purchase Blackwater at a Decision to Mine
TASMAN MINING 7BLACKWATER GOLD MINE
Blackwater Drilling by OGCCOMPLETED BY OCEANAGOLD 2011 - 2013
• Six holes intersected high-grade mineralisation and confirmed the depositcontinues at depth
• All holes intersected gold mineralisation • Gold intersected 650m below the base of
historical workings• Best drill results included:
• WA21A : 0.5m at 23.3g/t Au
• WA22D : 1.0m at 85.2g/t Au
• WA11A : 0.5m at 59.7g/t Au
• WA25A : 0.5m at 134.0g/t Au
• WA25 : 0.3m at 62.4g/t Au
500m
0m
-500m
-1000m
Birthday Reef Projection Resource Estimate (Updated 2013)
Historical Production:1.6Mt @14.6g/t for 740,000 oz
WA11 & WA11A
WA21A
WA22C & WA22D
WA25
TASMAN MINING 8BLACKWATER GOLD MINE
Blackwater Development StrategyDevelopment of a 3.3km underground twin decline to the base of historic workings
• Resource consents in place for decline development
• Estimated cost of US$30 million
Establishment of drill chambers and drives, completion of drill program and completion of feasibility studies to underpin a Decision to Mine
Mining Permit application was submitted by OceanaGold in July 2018 and approval expected within 18 months
TASMAN MINING 9BLACKWATER GOLD MINE
Preliminary Economic AssessmentCOMPLETED BY OGC IN 2014
• Development is environmentally, technically and economically viable
• Production of 570koz over initial 10 years mine life
• Average production of 50-60koz at an all-in sustaining cost of US$635/oz
• Inferred resource (JORC 2012) of 0.9Mt grading 23g/t gold for 700koz
• Processing 119ktpa with a mined grade of 16g/t and gold recovery of 96%
Preliminary economic assessment completed by OGC concluded:
Potential for first gold production by 2023
TASMAN MINING BLACKWATER GOLD MINE 10
FinancialCOST
$30m $27m $154/t $42/tMining
Total Capital$154m $254mProcessing
Project capital$76m
LOM sustaining capital$78m
Mining Milling
G&A$21/t
Total$217/tTotal Operating
Royalties$30m
Capital & Operating$407m
Free cash flow pre tax$303m
Post tax$214m
Tax$89m
AISC$635an ounceRevenue
$1300Gross Revenue$740m/oz
(570koz)
FinancialPROJECTION
TASMAN MINING 11BLACKWATER GOLD MINE
Key Outcomes Development and Drill Phase
Geotechnical, resource is 400 to 1200 metres below portal level, the decline development and drilling will provide the best information on ground conditions
Resource drilling, current inferred model based on mining history and six intercepts, by developing decline and drill platform this provides the optimal means of determining resource potential
Mining method, drilling from UG will provide data however long hole bench stoping will be the preferred method
Dewatering, steady state inflow was 2 l/s, water to be pumped from historical mining voids
Permitting, revision of resource consent required for plant and tailings dam
400 m
1200 m
TASMAN MINING BLACKWATER GOLD MINE 12
Opportunities & Value AddResource upside, along strike beyond bounding fault structures, and down plunge
Mining, implement small scale bench stoping using appropriate mobile fleet
Processing, placement of processing plant UG removing ore haulage costs
Materials handling and mobile fleet electric rather than diesel
Continuous miner for decline development, proven technology, improving speed of development and lowering cost
The decline may intersect mineralisation and provides a good platform for further exploration
Decline construction will employ 30 people and when the mine is operating 100 people
Utilise ore sorting technology
Use of tailings for pastefill, improving ore recovery and stope stability, and reducing tailings storage requirements
TASMAN MINING 13BLACKWATER GOLD MINE
Mining at BlackwaterAPPLYING MODERN TECHNIQUES TO A SUCCESSFUL HISTORIC MINE
• Maximise productivity and utilise modern narrow vein mining equipment
• Proposed mining method uphold bench stoping• Preferred alternative to airleg mining
Ore driving
Long hole drilling
Stope Bogging
STOPED AND FILLED AREA
FILL
ED
A
REA
TASMAN MINING 14BLACKWATER GOLD MINE
High Quality JurisdictionFAVOURABLE OPERATING ENVIRONMENT
• New Zealand is a first world jurisdiction with a long history of gold mining, including at Blackwater
• West coast of New Zealand’s South Island has a well established mining and quarrying industry
• Strong legislative framework with clear policies and institutions
• Low sovereign risk environment
• Approvals processes well understood and projects regularly approved
• Blackwater permitting substantially advanced
TASMAN MINING 15BLACKWATER GOLD MINE
SummaryOUR STRENGTH
High grade deposit History of
confirmed deposits extension
Exclusive Rights Agreement in place between Tasman Mining and OceanaGold for project development and acquisition by Tasman Mining
Proven and experienced Tasman Mining management team
Project is in a Tier One country and
23g/tsuccessfulmining
Deep drilling
Exploration and Resource Consent permits in place
HISTORICAL MINED ORE BODY
TASMAN MINING 16BLACKWATER GOLD MINE
SummaryOUR STRENGTH
application process underway
Time frame for production
Gold recovery is high at
Estimated resource 700,000 ounces, cost to advance project to reserve status US$30m or $42 perresource ounce
The positive feasibility study completed by OceanaGoldin 2014 concluded the mine would produce
Decline development provides platform for resource growth
Community is
Mining Permit
years5 96%
570 koz
Opportunities to maximise project potential using latest technology
supportiveof development
over 10 years at a low cost of AISC US$635 an ounce