avm investor presentation h1 2012 results …...- automated cyanide dosing avocet mining q2 2012...
TRANSCRIPT
Page 3
DISCLAIMER
This Presentation is for information purposes in connection with Avocet Mining PLC’s (the “Company’s”) second quarter results presentation only. While the information contained herein has been prepared in good faith, neither the Company nor any of its shareholders, directors, officers, agents, employees, consultants or advisers give, have given or have authority to give, any representations or warranties (express or implied) as to, or in relation to, the accuracy, reliability, completeness or suitability of the information in this Presentation, or any revision thereof, or of any other written or oral information made or to be made available to any interested party or its advisers (all such information being referred to as "Information") and liability therefore is expressly disclaimed.Accordingly, neither the Company nor any of its shareholders, directors, officers, agents, employees, consultants or advisers take any responsibility for, or will accept any liability whether direct or indirect, express or implied, contractual, tortious, statutory or otherwise, in respect of the accuracy or completeness of the Information or for any of the opinions contained herein or for any errors, omissions or misstatements or for any loss, howsoever arising or out of or in connection with the use of this Presentation. Each party to whom this Presentation is made available must make its own independent assessment of the Company and the Presentation after making such investigations and taking such advice as may be deemed necessary. Any reliance placed on the Presentation is strictly at the risk of such person relying on such Presentation. This Presentation may contain forward-looking statements regarding the Company and its subsidiaries. These statements are based on various assumptions made by the Company. Such assumptions are subject to factors which are beyond our control and which involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements to be materially different from any future results, performances or achievements expressed or implied by the forward-looking statements. Forward-looking statements may in some cases be identified by terminology such as “may”, “will”, “could”, “should”, “expect”, “plan”, “intend”, “anticipate”, “believe”, “estimate”, “predict”, “potential” or “continue”, the negative of such terms or other comparable terminology. These forward looking statements are only predictions. Actual events or results may differ materially, and a number of factors may cause our actual results to differ materially from any such statement. Such factors include among others general market conditions, demand for our products, development in reserves and resources, unpredictable changes in regulations affecting our markets, market acceptance of products and such other factors that may be relevant from time to time. Although we believe that the expectations and assumptions reflected in the statements are reasonable, any person relying on such Information and Presentation are cautioned that we cannot guarantee future results, levels of activity, performance or achievement. In preparing this Presentation and except as required by law, we do not undertake or agree to any obligation or responsibility to provide the recipient with access to any additional information or to update this Presentation or Information or to correct any inaccuracies in, or omission from this Presentation or to update publicly any forward-looking statements for any reason after the date of this Presentation to conform these statements to actual results or to changes in our expectations. You are advised, however, to consult any further public disclosures made by us, such as filings made with the Alternative Investment Market, Oslo Stock Exchange or press releases.This Presentation does not constitute an offer or invitation to sell, or any solicitation of any offer to subscribe for or purchase any securities and nothing contained herein shall form the basis of any contract or commitment whatsoever. Copies of this Presentation should not be distributed to any affiliates, third parties or indirect recipients in any manner whatsoever. The distribution of this Presentation in or to persons subject to other jurisdiction may be restricted by law and persons into whose possession this Presentation comes should inform themselves about, and observe any such restrictions. Any failure to comply with these restrictions may constitute a violation of the laws of the relevant jurisdictions.United Kingdom: This Presentation has not been approved by an authorised person in accordance with Section 21 of the Financial Services and Markets Act 2000 and therefore it is being delivered for information purposes only to a very limited number of persons and companies who are persons who have professional experience in matters relating to investments and who fall within the category of person set out in Article 19 of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the "Order") or are high net worth companies within the meaning set out in Article 49 of the Order or are otherwise permitted to receive it. Any person who receives this Presentation who does not fall within the category of person set out in Article 19 and Article 49 of the Order should not rely or act upon it. By accepting this Presentation, the recipient represents and warrants that they are a person who falls within the above description of persons entitled to receive the Presentation.
AVOCET MINING Q2 2012 FINANCIAL RESULTS PRESENTATION * AUGUST 2012
Page 4
STRATEGIC & OPERATIONAL HIGHLIGHTS
• Gold production of 32,917 oz. (Q1 2012: 38,296 oz.)
• Full year guidance revised to 135,000 – 140,000 oz. at cash cost of US$1,000 – 1,050 per oz.
• Inata expansion scoping study delayed due to ongoing metallurgical test work
• Measures taken to improve operational performance, including strengthening of on-site management team
• Resource development in Burkina Faso progressing ahead of schedule
• No dividend to be paid in respect of the 2012 financial year
AVOCET MINING Q2 2012 FINANCIAL RESULTS PRESENTATION * AUGUST 2012
Page 5
FINANCIAL HIGHLIGHTS
• Cash costs US$1,006 per oz. (Q1 2012: US$850 per oz.)
• Average realised gold price of US$1,439 per oz. (Q1 2012: US$1,543 per oz.)
• EBITDA of US$8.7 million (Q1 2012: US$28.1 million)
• Net cash generated by operating activities of US$20.7 million (Q1 2012 US$13.9 million)
• Cash of US$80.4 million, with external debt reduced to US$17.0 million
• Discussions ongoing to replace current financing facility that will be repaid in Q1 2013
AVOCET MINING Q2 2012 FINANCIAL RESULTS PRESENTATION * AUGUST 2012
Page 6
• Complete scoping study on Inata expansion x
• Finalise metallurgical modelling of deposit at Inata ~• Advance cost control and operating efficiency initiatives x
• Finish commissioning of gravity circuit at Inata plant
• Complete geo-chemical drilling of near term exploration targets in Bélahouro
• Commence infill drilling programme at Souma
Q2 2012 EVALUATION
AVOCET MINING Q2 2012 FINANCIAL RESULTS PRESENTATION * AUGUST 2012
Page 7
Q2 2012 OPERATIONAL CHALLENGES
AVOCET MINING Q2 2012 FINANCIAL RESULTS PRESENTATION * AUGUST 2012
• Ongoing poor availabilities of excavators in Q2 2012
• Inadequate stripping restricted access to ore- Grade and recoveries impacted
• Presence of preg-robbing ore kept recoveries at recent low levels
• Minor pit wall slip restricted access to high grade ore
• Lack of continuity of on-site management
Page 9
BURKINA FASO
• Stable mining friendly jurisdiction
• Rapidly expanding mining sector- Only one gold mine in 2007- Seven gold mines operational
by end 2012- Gold production rose by 32% in
2011
• Over 30 listed gold producers and explorersin country
• Gold constitutes 47% of export revenues
• Third biggest gold exploration and fourth biggest gold producing country in Africa
• Candidate country for EITI
AVOCET MINING Q2 2012 FINANCIAL RESULTS PRESENTATION * AUGUST 2012
Source: Mining Journal
Page 10
INATA GOLD MINE
• Mining licence extends to 2027, across 26km2
• Open pit mining across three operational pits
• Ore body consists of Inata, Minfo and Souma trends
- Mining on Inata trend to date
• Souma approx 25km from current mine• Owner-operator mining fleets• Processing via conventional CIL plant
- Current capacity 2.7mtpa- Gravity circuit installed in Q1 2012- Automated cyanide dosing
AVOCET MINING Q2 2012 FINANCIAL RESULTS PRESENTATION * AUGUST 2012
Page 11
INATA – Q2 2012 OPERATING PERFORMANCE
• Q2 2012 LTI free, year to date one LTI• 7.3m tonnes mined (Q1 2012: 7.8m
tonnes) due to low excavator availabilities• Strip ratio 11:1• 651k tonnes processed (Q1 2012: 608k
tonnes) reflecting maintenance in Q1 2012
• Production of 32,917 oz. (Q1 2012: 38,296 oz.)
AVOCET MINING Q2 2012 FINANCIAL RESULTS PRESENTATION * AUGUST 2012
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INATA - ADDRESSING CHALLENGES
AVOCET MINING Q2 2012 FINANCIAL RESULTS PRESENTATION * AUGUST 2012
• Numerous operational improvements identified by Alexander Proudfoot- Preparation and resourcing of a costed implementation plan underway- Efficiency gains identified in existing fleet- Implementation commencing within Q3 2012, target completion by Q2 2013
• AMS fleet contracted to assist with earth moving- Capacity of 15,000 tpd- On site September 2012
• Enhancements to existing fleet efficiency- Hungry boards fitted to dump trucks, increasing load factor by 10 tonnes- Bench heights in waste increased to 10m to improve excavator efficiency
• Management team expanded
Page 13
NEW OPERATIONAL TEAM
David Cather
CEO
• Mining engineer, Imperial College
• Over 30 years experience
• Ex Anglo American and De Beers
• Operational positions held in UK, Brazil,Continental Europe, Colombia, Philippines, Nicaragua, DRC
• Recently COO of European Goldfields
• Appointed July 2012
John McNair
GENERAL MANAGER
• Engineer by training
• Over 30 years experience
• Over five years experience at General Manager level
• Managed operations in West Papua, Philippines, Australia
• Joined August 2012
Andy Mortimore
PROCESS MANAGER
• Camborne School of Mines
• Over 30 years experience in processing in both copper and gold
• Operational positions held in UK, Zambia, Zimbabwe, Canada, DRC and Kyrgyzstan
• Ex Centerra Gold
• Joined August 2011
Karel Jordaan
MINING MANAGER
• Over 20 years experience in mining across Africa
• Ex Anglogold Ashanti
• Joining October 2012
AVOCET MINING Q2 2012 FINANCIAL RESULTS PRESENTATION * AUGUST 2012
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INATA – TOWARDS OPERATIONAL EXCELLENCE
AVOCET MINING Q2 2012 FINANCIAL RESULTS PRESENTATION * AUGUST 2012
• Return to mining basics• Drilling and blasting standard operating
procedures• Excavator efficiency gains• Load and haul efficiency gains• Closer more effective supervision• Shift changeovers – opportunities to
improve utilisation
Page 15
INATA – 2012, 2013 MINE PLAN
AVOCET MINING Q2 2012 FINANCIAL RESULTS PRESENTATION * AUGUST 2012
• 64,000 - 69,000 oz. for remainder of FY12
- Highest production in Q4 2012• 150,000-160,000 oz. in 2013
- High grade Inata North pit scheduled for Q3 2013
• Ore sources primarily from oxide material for next 12 months
• Average head grade of 2.0 g/t over 18 months
• Ore processed over next 18 months of 4 mt
• Average strip ratio of 12.5:1 over 18 months
• Average recoveries of 89%
Page 16
INATA - SCOPING STUDY UPDATE
• Rationale remains to optimise the processing capacity to maximise return from enlarged ore body
• Optimal processing methodology, suitable for ore sources across Bélahouro, remains to be determined:
1. Metallurgical testing of composite samples, to determine the appropriate ore processing, has been completed
2. Next step is to analyse the sample performance under selected processing route
3. Engineering and cost study to follow- Estimate recoveries and operating costs - Estimate capital cost
• Parallel process of metallurgical testing on Souma ores
AVOCET MINING Q2 2012 FINANCIAL RESULTS PRESENTATION * AUGUST 2012
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INATA – EXPLORATION
• Mine permit covers 26km2, including Inata and Minfo Trends
- Extension to Filio included in permit expansion
• 2011 Mineral Resource:
• YTD expenditure of US$15.3 million- Drilling of Minfo and adjacent targets
complete, including Filio- Inata parallel targets being tested- Mineral Resource set to grow- Infill drilling on Souma commenced
• Cash burn reducing in H2 2012, two rigs drilling Souma
AVOCET MINING Q2 2012 FINANCIAL RESULTS PRESENTATION * AUGUST 2012
Minfo21m @ 4.72 g/t Au from 5m
Inata North Extension39m @ 3.01 g/t Au from 93m
Inata North44.6m @ 3.73 g/t Au from 266.4m
Inata Central9m @ 10.3 g/t Au from 122m
Inata South8m @ 5.08 g/t Au from 61m
Inata Far South26m @ 7.35 g/t Au from 97m
Minfo East45m @ 3.26 g/t Au from 49m
Filio
Sayouba4m @ 48.5 g/t Au from 173m
Tonnes Grade OuncesInata
Indicated 17,881,000 1.68 964,000 Measured 39,446,000 1.35 1,712,000 Inferred 17,846,000 1.36 779,000
Total Indicated 57,327,000 1.45 2,676,000Total Inferred 17,846,000 1.36 779,000
Page 19
INATA – EXPANDED RESOURCE MODELLING
• Over 5,000 pulps from across Inataanalysed
- Organic carbon, total carbon, preg-robbing index (PRI)
- Sulphide sulphur, total sulphur- Quick leach test (QLT)- Ag and XRF multielements (As, Fe, Ca, Ba)
• Initial metallurgical models show variable character of fresh and transition ore
• Metallurgical test work results, expected from consultants in Q3 2012, will allow generation of an accurate recovery model
• Final model will determine Mineral Reserves and optimal LOM plan due Q4 2012
AVOCET MINING Q2 2012 FINANCIAL RESULTS PRESENTATION * AUGUST 2012
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WESTERNDOMAIN
CENTRALDOMAIN
EASTERNDOMAIN
INATA
Dynamite
Miilam
GasselGarafo
FeteKole
Pali
Kourfadie
Damba
Oka Gakinde
5km
GomdeBarrage
Priority drilling target N
SOUMA
OuzemiFilio
BÉLAHOURO – EXPLORATION
• Geochemical auger drilling over 80% of VTEM targets now complete- Awaiting gold assays and XRF analysis
AVOCET MINING Q2 2012 FINANCIAL RESULTS PRESENTATION * AUGUST 2012
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GUINEA
• Untapped mineral potential- Two +5M oz. and three ~1M oz. Au
deposits- Extensive under-explored Birimian
geology
• Three producing mines• Government embracing EITI• New Mining Code gazetted in
January 2012• Established Commission of Mines
- Oversees all aspects of mining industry
- Grants new mining licences, permits and conventions
AVOCET MINING Q2 2012 FINANCIAL RESULTS PRESENTATION * AUGUST 2012
Page 22
TRI-K – EXPLORATION
• Extensive land package across twelve exploration permits including Koulékoun, Kodiéran and Kodiafaran
• 2011 Mineral Resource:
• YTD expenditure of US$6.7 million- Drilling to expand Kodiéran, test
Kodiafaran, infill Balandougou- Kodiéran set to grow- Kodiafaran discontinuous grade
• Lower exploration spend in second half 2012
AVOCET MINING Q2 2012 FINANCIAL RESULTS PRESENTATION * AUGUST 2012
KodiafaranAnomalous gold over NW-oriented linear conductors
Kourounin25m @ 1.34 g/t Au 8m @ 1.79 g/t AuCurrently drillingAnomalous gold low conductivity (granite) margin along major magnetic linearFowara
12m @ 6.28 g/t Au20m @ 3.70 g/t AuAnomalous gold over low conductivity (granite) body
Koulékoun1.83 M oz. Anomalous gold on margin of low-high conductor
2km
Kodiéran0.41 M oz. 60 m @ 2.01 g/t Au20 m @ 6.43 g/t AuCurrently drillingAnomalous gold low conductivity (granite) margin along major magnetic linear
Tonnes Grade Ounces
KoulékounIndicated 21,610,000 1.44 1,001,000 Inferred 22,600,000 1.15 832,000
KodiéranInferred 7,260,000 1.76 411,000
Total Indicated 21,610,000 1.44 1,001,000 Total Inferred 29,860,000 1.29 1,243,000
Page 23
TRI-K – WAY FORWARD
• Metallurgical test work in process for Koulékoun
- Initial results of oxidised and fresh ore grade samples positive for simple CIL
- Will expand to include the deeply weathered Kodiéran prospect
• Updated Mineral Resource estimates due Q4- Targeting +2.5M oz. Au mainly through
Kodiéran growth
• Drilling now halted in favour of scoping study- PEA due Q4 2012- IRR rather than ounce based - prioritising
grade over production
• Exploration permits extended to October 2013 to complete feasibility study
AVOCET MINING Q2 2012 FINANCIAL RESULTS PRESENTATION * AUGUST 2012
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INCOME STATEMENT- Q2 2012
Continuing Operations Q2 2012 Q1 2012
US$ million
Revenue 49.3 60.3
Cash costs (33.1) (32.6)
Inventory (0.1) 5.2
Other cost of sales and expensed exploration (3.7) (2.0)
Admin and share based payments (3.7) (2.7)
Depreciation (5.8) (6.6)
Net finance costs (0.4) (0.7)
Profit before taxation 2.5 20.8
Taxation (0.6) (6.8)
Profit for the quarter 1.9 14.0
EPS (cents per share) 0.81 6.33
EBITDA 8.7 28.1
• Revenue down due to lower ounces sold (-US$7.5m impact) and lower spot price (-US$3.5m impact)
• Cash costs of US$33m broadly in line with Q1 2012
• Inventory changes reflect timing of gold sales and stockpile movements
• Lower depreciation in line with fewer ounces produced
• Reduced EBITDA and EPS reflect variances in revenue and inventory change
AVOCET MINING Q2 2012 FINANCIAL RESULTS PRESENTATION * AUGUST 2012
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CASH FLOW – Q2 2012
Q2 2012 Q1 2012
US$ million
EBITDA 8.7 28.1Working capital and interest 11.0 (15.0)
Provision/other non-cash 1.0 0.8
Operating cash flow 20.7 13.9Capex (7.1) (6.6)Exploration (14.0) (8.1)
Loan repayment (6.0) (6.0)
Final dividend (13.2) -Net cash movement from disposal of investments - (2.0)
Other cash movement (0.5) (0.2)Net cash flow (20.1) (4.7)Opening cash 100.5 105.2Closing cash 80.4 100.5
• Improved working capital, including more regular VAT refunds
• Operating cash flow of US$20.7m, up from US$13.9m despite lower production
• Higher exploration reflecting culmination of field season –Q3 2012 will be significantly lower owing to the wet season
• Significant cash balance of US$80.4m at the end of June
AVOCET MINING Q2 2012 FINANCIAL RESULTS PRESENTATION * AUGUST 2012
Page 27
CASH COSTS – Q2 2012
• Lower production accounted for an increase of US$120/oz., principally grade related
• Gold in circuit from the prior quarter had a positive impact on the cash costs per oz. in Q2 2012
• Higher fuel and explosive prices increased costs, offset by lower maintenance costs
0
200
400
600
800
1,000
1,200
Q1 Actual2012
Tonnestreated
Grade Recovery From/tocircuit
Miningcosts
Mill costs Admin Royalty Q2 Actual2012
AVOCET MINING Q2 2012 FINANCIAL RESULTS PRESENTATION * AUGUST 2012
US$
850 3 14 1,006316(56)9228(61)
Page 28
• Cost per tonne mined up 11% on 7% fewer tonnes mined • Higher fuel and explosive prices account for half the increase in cost per tonne• Higher labour and equipment rental costs account for the remainder, reversing the
decrease seen in the prior quarter
MINING CASH COSTS – Q2 2012
-
2.0
4.0
6.0
8.0
10.0
12.0
14.0
Q1 Q2 Q3 Q4 Q12012
Q22012
Total mining costs US$m
Other
Labour
Explosives
Maintenance
Fuel -
0.20
0.40
0.60
0.80
1.00
1.20
1.40
1.60
1.80
Q1 Q2 Q3 Q4 Q12012
Q22012
Cost per tonne mined (US$)
US$1.23/t
US$1.78/t
US$1.25/t
US$1.53/t
US$1.63/t
US$1.81/t
US$6.5 m
US$7.9mUS$8.5m
US$13.3mUS$12.7m
US$13.2m
AVOCET MINING Q2 2012 FINANCIAL RESULTS PRESENTATION * AUGUST 2012
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• Cost per tonne milled down 6% with 7% higher tonnes milled• Lower fuel usage per tonne was offset by higher labour cost• Lower usage of cyanide and steelballs was offset by higher lime prices• Decrease of US$1.15/t in maintenance, reflecting absence of SAG and ball mill
liner changes in Q1 2012
PROCESSING CASH COSTS – Q2 2012
- 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0
10.0 11.0 12.0
Q1 Q2 Q3 Q4 Q12012
Q22012
Total processing costs in US$m
Other
Labour
Reagents
Maintenance
Fuel
US$9.8 m
US$9.4 m
US$10.0 m
US$11.4 m
US$10.8 mUS$10.9 m
-
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
18.0
Q1 Q2 Q3 Q4 Q12012
Q22012
Cost per tonne milled (US$)
US$15.27/t
US$16.01/tUS$17.13/t
US$17.42/t
US$17.81/t
US$16.75/t
AVOCET MINING Q2 2012 FINANCIAL RESULTS PRESENTATION * AUGUST 2012
Page 30
• Q2 Admin costs were consistent with Q1 2012
ADMIN CASH COSTS – Q2 2012
-
1.0
2.0
3.0
4.0
5.0
6.0
7.0
Q1 Q2 Q3 Q4 Q12012
Q22012
Total administration costs US$m
Other
Fuel
Contractors/consultants
Maintenance
Insurance
Labour
US$5.3m
US$6.2mUS$6.1m
US$5.7m
US$4.7mUS$4.8m
AVOCET MINING Q2 2012 FINANCIAL RESULTS PRESENTATION * AUGUST 2012
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TOTAL CASH COSTS PER OUNCE – Q2 2012
AVOCET MINING Q2 2012 FINANCIAL RESULTS PRESENTATION * AUGUST 2012
Mining US$
Processing US$
AdminUS$
RoyaltiesUS$
TotalUS$
Fuel 133 105 19 - 257
Maintenance 97 71 11 - 179
Labour 51 30 56 - 137
Other 67 23 35 - 125
Royalties - - - 127 127
Reagents - 103 - - 103
Explosives 54 - - - 54Contractors/ Consultants - - 17 - 17
Insurance - - 7 - 7
Total per oz. 402 332 145 127 1,006
Total US$ millions 13.2 10.9 4.8 4.2 33.1
26%
18%
14%
12%
13%
10%
5% 2%
Fuel Maintenance LabourOther Royalties ReagentsExplosives Other
Page 33
H2 2012 WORKSTREAMS
• Complete metallurgical test work on Inata ore body and scoping study on Inata expansion
• Improve mining capacity to allow for higher rate of stripping
• Implement recommendations from operational review by consultantsAlexander Proudfoot
• Complete infill drilling at Souma
• Undertake scoping study at Koulékoun to produce PEA
AVOCET MINING Q2 2012 FINANCIAL RESULTS PRESENTATION * AUGUST 2012
Page 34
Avocet Mining – a leading West African gold mining and exploration company
AVOCET MINING Q2 2012 FINANCIAL RESULTS PRESENTATION * AUGUST 2012
Page 35
MINERAL RESOURCES AND RESERVES: INATA
Gross Net attributable (90%)
Tonnes(Mt)
Grade(g/t)
Containedounces
Tonnes(Mt)
Grade(g/t)
Containedounces
Mineral Reserves
Proven 16,091,000 1.72 888,000 14,482,000 1.72 799,000
Probable 17,234,000 1.70 940,000 15,510,000 1.70 846,000
ROM Stockpiles 497,000 1.25 20,000 447,000 1.25 18,000
Reserves total 33,822,000 1.70 1,848,000 30,440,000 1.70 1,663,000
Mineral ResourcesMeasured 17,881,000 1.68 963,800 16,093,000 1.68 868,000
Indicated 39,446,000 1.35 1,712,000 35,501,000 1.35 1,541,000
Measured + Indicated 57,327,000 1.45 2,676,000 51,594,000 1.45 2,409,000
Inferred 17,846,000 1.36 779,000 16,061,000 1.36 701,000
Resources total 75,173,000 1.43 3,455,000 67,655,000 1.43 3,110,000
Mineral Reserves and Mineral Resources as at 31 December 2011
1. Mineral Resources are inclusive of Mineral Reserves and reported above 0.5g/t Au cut off and below the 31 December 2011 topographic surface. The Mineral Resources were estimated by Mr David Williams (MAusIMM, MAIG) and Mr Sam Beckett (MAIG), both of whom are consultants employed by CSA Global Pty Ltd. Both Mr Williams and Mr Beckett have the experience relevant to the style of mineralisation and type of deposit under consideration to qualify as a Competent Persons as defined by the Australasian JORC Code (2004) for the reporting of Exploration Results, Mineral Resources and Ore Reserves and as Qualified Persons as defined by the Canadian National Instrument 43-101 for the reporting of Exploration Results, Mineral Resources and Mineral Reserves (NI 43-101). Mr Williams and Mr Beckett have consented to the inclusion of the technical information in this report in the form and context in which it occurs.
2. The Mineral Reserves were estimated by Mr Clayton Reeves (MSAIIM), who at the time is the compilation of this statement was the Principal Mining Consultant, CSA Global (UK). Mr Reeves is a Competent Person as defined by the JORC Code and a Qualified Person as defined by NI-43-101. Mr Reeves has consented to the inclusion of the technical information in this report in the form and context in which it occurs.
3. Avocet owns 90% of Société des Mines de Bélahouro SA, owner of the Inata Gold Mine.4. Rounding errors may occur.
AVOCET MINING Q2 2012 FINANCIAL RESULTS PRESENTATION * AUGUST 2012
Page 36
MINERAL RESOURCES AND RESERVES: SOUMA
Gross Net attributable (100%)
Tonnes(Mt)
Grade(g/t)
Containedounces
Tonnes(Mt)
Grade(g/t)
Containedounces
Mineral ReservesProven ‐ ‐ ‐ ‐ ‐ ‐
Probable ‐ ‐ ‐ ‐ ‐ ‐
ROM Stockpiles ‐ ‐ ‐ ‐ ‐ ‐
Reserves total - - - - - -
Mineral ResourcesMeasured ‐ ‐ ‐ ‐ ‐ ‐
Indicated 324,000 1.44 15,000 324,000 1.44 15,000
Measured + Indicated 324,000 1.44 15,000 324,000 1.44 15,000
Inferred 10,376,000 1.64 546,00 10,376,000 1.64 546,000
Resources total 10,700,000 1.63 561,000 10,700,000 1.63 561,000
Mineral resource estimate as at 31 October 2010
1. Mineral Resources are reported above 0.5g/t Au cut off. The Mineral Resources were estimated by Mr David Williams (MAusIMM, MAIG), a consultant employed by CSA Global Pty Ltd. Mr Williams has the experience relevant to the style of mineralisation and type of deposit under consideration to qualify as a Competent Person as defined by the Australasian JORC Code (2004) for the reporting of Exploration Results, Mineral Resources and Ore Reserves and as a Qualified Person as defined by the Canadian National Instrument 43-101 for the reporting of Exploration Results, Mineral Resources and Mineral Reserves (NI 43-101). Mr Williams consents to the inclusion of the technical information in this report in the form and context in which it occurs.
2. Avocet owns 100% of the Souma property through its wholly-owned subsidiary, Goldbelt Resources (West Africa) SARL.3. Rounding errors may occur.
AVOCET MINING Q2 2012 FINANCIAL RESULTS PRESENTATION * AUGUST 2012
Page 37
MINERAL RESOURCES AND RESERVES: TRI-K
Gross Net attributable (100%)
Tonnes(Mt)
Grade(g/t)
Containedounces
Tonnes(Mt)
Grade(g/t)
Containedounces
Mineral ReservesProven ‐ ‐ ‐ ‐ ‐ ‐
Probable ‐ ‐ ‐ ‐ ‐ ‐
ROM Stockpiles ‐ ‐ ‐ ‐ ‐ ‐
Reserves total - - - - - -
Mineral ResourcesKoulékoun
Measured ‐ ‐ ‐ ‐ ‐ ‐
Indicated 21,610,000 1.44 1,001,000 21,610,000 1.44 1,001,000
Measured + Indicated 21,610,000 1.44 1,001,000 21,610,000 1.44 1,001,000
Inferred 22,600,000 1.15 832,000 22,600,000 1.15 832,000
KodiéranInferred 7,260,000 1.76 411,000 7,260,000 1.76 411,000
Resources total 51,470,000 1.36 2,244,000 51,470,000 1.36 2,244,000
Mineral Resources as at 20 December 2011
1. Mineral Resources are reported above 0.5g/t Au cut off. The Company owns 100% of Wega Mining Guinée SA, owner of the Tri-K gold project. The Mineral Resources were estimated by Mr David Williams (MAusIMM, MAIG), a consultant employed by CSA Global Pty Ltd. Mr Williams has the experience relevant to the style of mineralisation and type of deposit under consideration to qualify as a Competent Person as defined by the Australasian JORC Code (2004) for the reporting of Exploration Results, Mineral Resources and Ore Reserves and as a Qualified Person as defined by the Canadian National Instrument 43-101 for the reporting of Exploration Results, Mineral Resources and Mineral Reserves (NI 43-101). Mr Williams consents to the inclusion of the technical information in this report in the form and context in which it occurs.
2. Note: rounding errors may occur.
AVOCET MINING Q2 2012 FINANCIAL RESULTS PRESENTATION * AUGUST 2012