1.25 moz high-grade, shallow wa gold project · resolute mining, avion gold corporation and gcm....

ASX:CAI

1.25 Moz HIGH - GRADE, SHALLOW WA GOLD PROJECTPROGRESSING TO DEVELOPMENTPRESENTATION MARCH 2019

DISCLAIMER

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.

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3

PROGRESSING TOWARDS PRODUCTION

SNAPSHOT

• 1.25 Moz resource at 1.83 g/t Au including 1.1Moz at 2.37g/t

• 795,000oz of Indicated Resources (64%)

• 203% increase in resource since listing June 2017 (412,000oz)

• Fully funded Pre-feasibility Study (PFS) commenced, completion due Q3 2019

• PFS will enable rapid transition to Definitive Feasibility Study (DFS)

• Environmental monitoring well advanced, applications for permits to be submitted Q3 2019

• Significant exploration upside both adjacent to existing resources and in greenfields areas on 781 km2 tenement package being targeted in 2019

PAGE 3 CORPORATE PRESENTATION MARCH 2019

DRIVING DEVELOPMENT PROGRESSA CENTURY OF EXPERIENCE IN PRECIOUS- METAL PROJECT DEVELOPMENT

PAGE 4

MARK CONNELLYNON-EXECUTIVE CHAIRMAN

Over 30 years’ resource industry experience in CEO and Managing Director roles across multiple jurisdictions including Australia, West Africa, North America and Europe. Currently Non-Executive Chairman at West African Resources Ltd

KEITH COUGHLAN NON-EXECUTIVE DIRECTOR

30 years’ experience in stockbroking and funds management on ASX, AIM and TSX. Currently the MD of European Metals Holdings and recently retired as chairman of TalgaResources

ADAM MIETHKENON-EXECUTIVE DIRECTOR

Over 15 years’ experience in exploration and mine geology, funds management and corporate advisory. Previous technical and corporate roles at Rio Tinto, Snowden, Regent Pacific Group and Argonaut

BOARD

EXECUTIVE MANAGEMENT

DAVE REEVESMANAGING DIRECTOR

30 years’ mining experience in Australia, Africa and Europe. Instrumental in the progression of four mining projects through feasibility to project development

FERNANDO MOUTINHOPROJECT MANAGER30 years’ international experience with GRD Minproc, Sheffield Resources, Syrah Resources, New Century Resources

JANE ALLENGEOLOGY MANAGER30 years’ international mining experience with Anglogold Ashanti, Resolute Mining, AvionGold Corporation and GCM

PAUL BRENNANCOO

20 years’ mining experience in Australia, Africa and Europe. Most recently GM at Saracen’s Carasoue Dam operation

CORPORATE PRESENTATION MARCH 2019

CORPORATE OVERVIEW

CAPITAL STRUCTURESHARES ON ISSUE 1,419

Million

MARKET CAP(undiluted at A$0.026)

$36.9Million

CASH (as at 31 Dec 2018)

$3.9Million

LISTED INVESTMENTS $2.5Million

ENTERPRISE VALUE $30.5Million

OPTIONS(will raise $6.9m if exercised)

254Million3

PERFORMANCE SHARES

275 Million4

CAPITAL STRUCTURE AND SHAREHOLDERS

1. Using share price of $0.22 as at 25 March 20192. CAI board and management own 18 % of Keras3. 118m @ 2.5c, 50m @ 2.0c, 70m @ 3.5c and 16m @ 3.0c 4. Performance Shares vest on completion of a positive PFS5. ALK cash balance as at 31 December 2018

KEY SHAREHOLDERS KERAS RESOURCES2

(AIM:KRS) 32.3%

ALKANE RESOURCES (ASX:ALK) 10.2%

NOVO RESOURCES (TSX: NVO) 4.0%

PAGE 5

WELL FUNDED• Cash reserves of $3.9m• Investment in Pacton Gold (TSX: PAC) valued at $2.5m1

• 2.5c exercisable options to raise $2.2m due June 2019

STRONG CORPORATE MINING SUPPORT• Keras Resources – London listed exploration company2

• Alkane Resources – ASX listed Australian domiciled gold producer with c.$80m in cash reserves and investments5

• Novo Resources – Canadian listed, well funded Pilbara Gold explorer with nearby gold properties and JORC resources

TIGHTLY HELD SHARE REGISTER• Over 15% Tier 1 institutional ownership • Top 20 hold 70%


LOCATED IN AREA WITH PROVEN RESOURCE POTENTIAL WARRAWOONA GOLD PROJECT


780KM 2 OF CONTIGUOUS TENURECONTROL OF PROVEN GREENSTONE BELT

PAGE 7

780km2 under control, application or option

• +200 historic mines located on tenements

• Very limited previous exploration focused around the Klondyke workings

• Majority of package not covered by any soil sampling or drilling


KLONDYKE DEPOSIT

PAGE 8

76% INCREASE IN GLOBAL RESOURCE BASE TO 1.15 MozKlondyke (0.5g/t cut-off summary)

Cut-off Indicated Inferred Total

Au g/t Mt g/t Au Ozs Mt g/t Au Ozs Mt g/t Au Ozs

Klondyke Open Pit 0.5 12.3 1.69 670,000 5.5 1.47 260,000 17.8 1.62 930,000

Klondyke Underground 2.0 0.8 3.3 80,000 1.4 3.03 140,000 2.2 3.13 220,000

Total 13.1 1.78 750,000 6.9 1.79 400,000 20.0 1.79 1,150,000

Deposit (0.8g/t cut-off summary)

Cut-off Indicated Inferred Total

Au g/t Mt g/t Au Ozs Mt g/t Au Ozs Mt g/t Au Ozs

Klondyke Open Pit 0.8 8.4 2.19 590,000 3.1 2.16 210,000 11.4 2.19 800,000

Klondyke Underground 2.0 0.8 3.3 80,000 1.4 3.03 140,000 2.2 3.13 220,000

Total 9.1 2.21 670,000 4.5 2.44 350,000 13.6 2.23 1,020,000


HIGH GRADE MINERALISATION REMAINS OPEN AT DEPTH

KLONDYKE DEPOSIT


UPDATED MINERAL RESOURCE

PAGE 10

CONTINUOUS OUTCROPPING RESOURCE OPEN IN ALL DIRECTIONS


MULTIPLE HIGH GRADE SATELLITE TARGETS, WITHIN 10KM OF KLONDYKEREGIONAL UPSIDE – LARGELY UNTESTED

PAGE 11

Deposit Cut-off Indicated Inferred Total

Au g/t Mt g/t Au Ozs Mt g/t Au Ozs Mt g/t Au OzsCopenhagen 0.5 0.2 5.27 36,000 0.1 1.84 3,000 0.3 4.65 39,000Coronation 0.5 - - - 0.5 2.19 34,000 0.5 2.19 34,000

Fieldings Gully 0.5 0.2 1.65 9,000 0.3 1.62 16,000 0.5 1.63 24,000

Total 0.4 3.70 45,000 0.9 1.96 53,000 1.3 2.53 98,000


RAPID PROGRESSION OF PFS, SCHEDULED FOR Q3 2019 COMPLETION

METALLURGICAL TESTWORK• High gold recoveries (96.7% leach

recoveries), conventional processing methods & variability testing underway

ENVIRONMENTAL• All fieldwork to be complete in

April, submit permit applications in Q3 2019

HYDROLOGICAL• Initial water monitoring bores drilled

& hydrological model completed –production bores to be drilled in 2019

HERITAGE• Heritage clearance work completed

over area of disturbance

TAILINGS• Thickening testwork and geotechnical

testing complete, further confirmatory work planned, initial designs & locations finalised

PRE- FEASIBILITY STUDY INPUTS

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GEOTECHNICAL• All geotechnical drilling and analysis

complete


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WELL SERVICED BY EXISTING INFRASTRUCTURE

PAGE 13

ASSISTS WITH RAPID COST EFFECTIVE DEVELOPMENT

MINING REGISTRAR LOCATED IN TOWN

SEALED AIRSTRIPIN MARBLE BAR

2 HOURS DRIVE FROM PORT HEDLAND ON SEALED ROAD (AUSTRALIA’S LARGEST PORT)

LOCATED 20KM SOUTH EAST OF MARBLE BAR

• All weather, council maintained road from Marble Bar to leases

• Access to trucked LNG from NW Shelf

• 100 rooms available in town

• All weather airstrip


PARALLEL WORKSTREAMS TO PROVIDE CONSISTENT NEWSFLOWDEVELOPMENT TIMELINEEXPLORATION TIMELINE


Yandal, EAR

Karlawinda, CMM

Bombora, BRBWarrawoona (0.5 g/t

Au cut-off grade)

Leonora, KIN

Warrawoona (0.8g/t Au cut-off grade)

Katanning, AUC

1.0

1.2

1.4

1.6

1.8

2.0

2.2

2.4

2.6

1,000 1,050 1,100 1,150 1,200 1,250 1,300 1,350 1,400 1,450 1,500

Reso

urce

Gra

de (g

/t A

u)

Mineral Resource Ounces (koz)

ONE OF FEW HIGH GRADE INDEPENDENT DEVELOPMENT PROJECTSAUSTRALIAN OPEN PIT DEVELOPERS

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UNDEVELOPED OPEN-PIT WA PROJECTS (>1Moz Au)1,2

Scarcity of independent ASX open pit gold developers with Resource bases over 1Moz Au1. Data as at 26 March 20182. CAI includes underground resource of 220koz @ 3.13g/t

* Bubble size represents Enterprise Value


168

8981

67

4942

2618

0

25

50

75

100

125

150

175

200

BGL VAN EAR BRB CMM GMD CAI KIN

EV/R

esou

rce

(A$/

oz)

VALUE GROWTH ASSOCIATED WITH DEVELOPMENTNEAR-TERM DEVELOPMENT

1. Data as at 25 March 20192. Calidus EV doesn’t account for listed investments of c.$2.9m

PAGE 16

UNDERVALUED COMPARED TO DEVELOPMENT PEERS1

Completed Feasibility Study

Prior to Feasibility Study

Average = $77/oz

BGL VAN EAR BRB CMM GMD CAI KIN

Key Project Bellevue Trident Yandal Bombora Karlawinda Ulysses Warrawoona Leonora

Stage Resource Development

Resource Development Feasibility PFS Commenced Financing Feasibility PFS Commenced Resource

Development

Mkt Cap (A$m) 271 72 118 79 56 37 37 25

EV (A$m) 257 74 113 73 55 32 332 18

Resource (koz) 1,530 825 1,405 1,084 1,114 760 1,248 1,023

Grade (g/t) 11.8 3.1 2.1 1.4 1.1 3.3 1.8 1.4

Mine Type Underground Underground Open-pit Open-pit Open-pit UndergroundOpen-pit &

Underground Potential

Open-pit


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• Critical mass for a standalone development achieved

• High grade open pit outcropping resource

• Excellent metallurgy

• Experienced mine development team

• Fully funded through to Pre-feasibility Study completion

•Located in close proximity to high quality infrastructure and operating mines

•Greenfields exploration has significant potential for new discoveries given lack of modern or systematic exploration

•Uniquely positioned as one of few remaining high grade open-pit gold development companies on the ASX

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WEST AUSTRALIAN 1.25Moz HIGH - GRADE, SHALLOW GOLD DEVELOPER

REASONS TO INVEST


1.25 moz high-grade, shallow wa gold project · resolute mining, avion gold corporation and gcm....

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