millenium minerals
DESCRIPTION
ÂTRANSCRIPT
Minerals
Millennium
MillenniuM MineralsBuilding on a successful year for gold mining in East Pilbara
MillenniuM MineralsBuilding on a successful year for gold mining in East Pilbara
Millennium Minerals Limited is a gold mining
company with a large tenement portfolio which
comprises multiple deposits on granted mining
leases, in the East Pilbara region of Western Australia.
The Company’s gold project contains a 1.91 million
ounce gold Mineral Resource situated within 9 deposits on
granted mining leases. The largest deposit is Golden Eagle,
located approximately 10 kilometres south of the township
of Nullagine and contains 42% of the total Mineral Resource
inventory.
Millennium commissioned the Golden Eagle 1.5 Mtpa CIL
processing plant in August 2012 with commercial production
declared effective January 2013.
2015 - A SEMINAL YEAR Millennium Minerals’ business plan is to operate at a profitable level, repay debt promptly and re-invest surplus funds in
future organic and inorganic growth. The longer term aim is to
achieve mid-tier status within the Australian resource industry
over the next five years.In many ways, 2015 was a seminal year for Millennium
Minerals which signalled a very healthy turnaround from the
previous year. In 2014, the company’s results were blighted
by poor mine performance and cash flow, ending the year with a high level of debt that was difficult to service.
Operations produced full year gold output of just over
91,400 ounces, compared to 2014’s production of around
74,300 ounces.
Independent Non‐Executive Chairman, Richard Procter, puts this improved performance down to the “methodical
implementation of the many steps necessary to rectify
the various challenges facing the Company, including
receiving vital support from our major shareholder, IMC, and
management changes such as Glenn taking over as CEO”.
The Glenn Procter refers to in his Chairman’s Letter in the
2015 annual report is of course Glenn Dovaston, who took
over the role of Chief Executive.
There was a raft of significant technical and operational changes being made at the end of 2014 and into 2015, and
Millennium are reaping the results.
NULLAGINE GOLD HISTORY The Nullagine Gold Project in WA’s East Pilbara region covers
approximately 640 km2 tenements within one of the oldest
and least explored goldfields in WA.
SAFETY • QUALITY • SERVICE
Unit 2/23 Dillington Pass, Landsdale WA 6065Phone [08] 9303 4687 Fax [ 08] 9303 4354Email [email protected]
www.redlinedb.com
• Experience and ability to service both large and small scale operations
• Safe, effi cient and cost effective Drill and Blast services
• Multi-skilled personnel base able to meet with evolving site specifi c requirements
• A well mantained fl eet of drill rigs, vehicles and ancillary equipment
• Controlled storage, transport and safe use of explosives
Gold was first discovered at Nullagine in the late 1890s, which back then resulted in a gold rush and considerable
interest on the London Stock Exchange. A decade later, there
were several workings and treatment plants spread around
the Mosquito Creek belt.
Western Australian Department of Mines records show that
by the end of 1937, 47,380 tonnes ore returning 78,108 ounces of gold and 8,904 ounces of silver from alluvial sources and dollied specimens was produced.
Millennium first became involved in May 2001, when it acquired a significant package of tenements. All land involved in the project (except the accommodation facility located in
Nullagine), is subject to native title. These individual native title
mining agreements have been signed with the Njamal and
Palyku people.
Project construction was completed in September 2012
with first gold poured that samemonth.The mine’s design and scheduling is driven to
maximise production for an annual
estimated production of around 72,000 – 75,000 ounces of
gold.
The 1.5 Mtpa nameplate CIL ore treatment plant is located
adjacent to the largest deposit of the Nullagine gold mining
operations. Ore is mined and delivered from several open pits
to a 150,000 tonne capacity stockpile where a front end loader
re-handles the ore into a ROM (run-of-mine) crusher feed bin.
Separate smaller stockpiles account for varying material
hardness and grade, allowing for blending and process
optimisation.
Millennium continues to be active within the local community,
helping police, health services, schools and the shire generally.
It aims to find new ways to contribute positively and proactively to the Nullagine and close surrounding communities, including
providing employment opportunities (both permanent and
short term).
OPERATIONAL MOMENTUM“The latter part of 2015 provided evidence that the faith we
had in our flagship project was beginning to be realised,” says Procter. “By the end of the year the Nullagine project had good
operational momentum. The turnaround was remarkable.”
Early exploration results, gold production and financial performance improvements during the year enabled the
Company to enter the capital markets in December and raise
$21 million.
“This raising (to use the funds to accelerate eliminating debt
and initiate an aggressive brownfields exploration program on our highly prospective tenements), was well supported
BUILDING CIVIL ELECTRICAL FABRICATION MAINTENANCE MARINE MECHANICAL PIPELINES RAIL TUNNELLING
SAFE, SMART, EFFICIENT INFRASTRUCTURETHAT BUILDS BETTER COMMUNITIES.
McConnell Dowell is a progressive engineering, construction and maintenance company delivering end-to-end projects for clients in the building, infrastructure and resources sectors through its comprehensive skill set and proven problem solving abilities.
Our operational focus is to meet and exceed clients’ requirements through innovation, teamwork and progressive thinking.
“We have some of the best and brightest in their fields working for us. It’s something we’re proud of; we strive to be the industry leaders and it shows in our work.” - CEO David Robinson
McConnell Dowell is currently delivering the Lloyd Street Southern Extension Stage One - Rail Corridor Grade Separation contract with Main Roads Western Australia.
Located between Great Eastern Highway in Midland and the Great Eastern Highway Bypass in Hazelmere, the project is set to significantly improve traffic flow and safety along Lloyd Street by building an underpass under the railway to replace the existing level crossing.
Visit us at - www.mcconnelldowell.com
BUILDING CIVIL ELECTRICAL FABRICATION MAINTENANCE MARINE MECHANICAL PIPELINES RAIL TUNNELLING
SAFE, SMART, EFFICIENT INFRASTRUCTURETHAT BUILDS BETTER COMMUNITIES.
McConnell Dowell is a progressive engineering, construction and maintenance company delivering end-to-end projects for clients in the building, infrastructure and resources sectors through its comprehensive skill set and proven problem solving abilities.
Our operational focus is to meet and exceed clients’ requirements through innovation, teamwork and progressive thinking.
“We have some of the best and brightest in their fields working for us. It’s something we’re proud of; we strive to be the industry leaders and it shows in our work.” - CEO David Robinson
McConnell Dowell is currently delivering the Lloyd Street Southern Extension Stage One - Rail Corridor Grade Separation contract with Main Roads Western Australia.
Located between Great Eastern Highway in Midland and the Great Eastern Highway Bypass in Hazelmere, the project is set to significantly improve traffic flow and safety along Lloyd Street by building an underpass under the railway to replace the existing level crossing.
Visit us at - www.mcconnelldowell.com
by both current and new shareholders alike,” adds Procter.
“True to this investment philosophy, we did slash our debt
and begin the aggressive brownfields exploration program, which is currently ongoing.”
2016 AND BEYONDMillennium expects another year of strong production at very
competitive operating costs. It has forecast production of
80,000–85,000 ounces at an AISC of $1,180/ounce‐$1,220/ounce for 2016.
The Company has earmarked a $10 million exploration
campaign across the Project area to grow its gold mineral
inventory and mine life. This plan equates to over 110,000
metres of RC drilling, operating 3 or 4 rigs at any one time
during 2016.
“The Company continues to make significant inroads with these ongoing drilling programs which have already delivered
early success,” says Millennium.
Its focus now is on maintaining the production and cost
performance at Nullagine to maximise free cash flow, now that the company no longer has balance sheet debt.
Millennium is driving exploration programmes hard to grow
the project’s gold inventory and mine life. “Success on this
front will further strengthen the market’s confidence in the Company. It will also, essentially, demonstrate that we can
sustain our strong cash flows over the longer term,” Procter concludes.
