Avocet Mining Q2 Results and Inata Update 5 August 2014 Page 1
Producing asset and significant upside Inata Gold Mine, Burkina Faso o Producing mine of +100koz p.a. o Inata Mineral Resources of 6.1 Moz and Ore Reserve of 0.5 Moz o Significant upside: further development of Souma heap leach…
H1 2014 financial results H1 2013 H1 2014 Gold production (ounces) 61,726 44,798 Average realised gold price (US/oz) 1,361 1,287 Total cash production cost (US/oz) 1,204 1,246 Loss before tax and exceptional items (US000) (8,241)…
H1 2014 production results Full year Full year H1 H1 2012 2013 2013 2014 Ore mined (k tonnes) 2,653 3,114 1,787 1,439 Sayouba pit Waste mined (k tonnes) 30,474 30,100 17,827 7,934 Inata North pit Total mined (k tonnes) 33,127…
Current life of mine plan On 12 June Avocet announced a revised life of mine plan (LOMP) for Inata The revised 5 year life of mine plan is based on the following: - 77 million tonnes or material mined between 2014 and 2018 - 9.5…
Steps taken to address Inata funding requirement In December 2013, Avocet announced that Inata was expected to require further funding of US20-30m in 2014. This has been reduced to US15- 20m by a combination of the revised mine plan…
Process ongoing to address Group funding needs While steps have been taken to address Inatas funding requirements, Inatas cash constraints mean that it cannot be relied upon in the short term to meet the wider Groups funding…
Inata update December 2011 Page 9
Inata - changed priorities, new opportunities 2012 - 13 2014 Inata mining in 2012 and 2013 was Following the drop in gold price in 2013, predicated on mine plans generated at Inata mine plans run at US950/oz or US1,400 and US1,200/oz,…
Ongoing cost reduction at Inata The above chart compares the June 2014 YTD v June 2013 YTD costs (excluding royalties) 2014 costs YTD are US16.3m, or 24%, lower than the equivalent costs from 2013. This is primarily due to a…
Impact of lower costs and higher prices Costs savings at operational level should contribute to improved conversion of material from resource to reserve More mineralised material at the nearby Souma deposit should become economic to…
Carbon blinding circuit - online H2 2014 Carbon blinding circuit currently being installed and will be commissioned in September 2014 Limits ability of organic carbon in ore to absorb gold and therefore allows carbonaceous ore to be…
CBC nearing completion View of new blinding agent tanks Page 14
Inata - upside potential December 2011 Page 15
Heap leach potential Targets for 1-1.5 g/t oxide ore include areas south of Dynamite in Souma, where mineralisation lies close to surface Of the five deposits at Souma, only one is currently included in the Inata LOMP Other target…
Inata underground opportunity In light of increasing strip ratios and reduced overhead costs Avocet has revisited existing drilling data below current pit shells to examine the potential for underground mining Re-examination of data…
Inata North Pit showing drill intersections (3g/t) Viewed to North Zone of approximately 200m strike and 50m width intersected to a depth of around 300m below current base of pit Shoot is open at depth below the deepest…
Inata North Pit, east west section through the resource model Viewed to North Current depletion surface and 1,100 pit shell displayed Page 19
Illustrative upside case Based on very preliminary estimates, management considers that heap leach and underground operations, in conjunction with the current open pit life of mine plan, could double the life of mine, with gold…
Outlook December 2011 Page 21
Outlook Steps have been taken to address Inata funding requirement via measures to increase short term liquidity Potential to significantly increase reserve and production base via Souma development, heap leach and underground…
Avocet Mining a West Africa focused gold mining and exploration company Page 23
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