For personal use only - · PDF fileFor personal use only Mining 2016 ... and Exploration Results is based on information compiled by Miss Melanie ... in the document have previously

Melanie Sutterby – Geology Manager

Unlocking the Southwest Yilgarn in WA Mining 2016 Resources Convention, Brisbane

For

per

sona

l use

onl

y

Disclaimer

Competent Person’s Statement

The information in this presentation that relates to Exploration Targets and Exploration Results is based on information compiled by Miss Melanie Sutterby who is a

member of the Australasian Institute of Mining and Metallurgy (AusIMM) and has sufficient experience relevant to the style of mineralisation under consideration

and to the activity which she undertakes to qualify as a Competent Person as defined in the 2012 edition of the “Australasian Code for Reporting of Exploration

Results, Mineral Resources and Ore Reserves”. The information in this presentation that relates to the Mineral Resource Estimates is based on work done by Mr

Rod Brown of SRK Consulting (Australasia) Ltd and Miss Melanie Sutterby of Ausgold Limited. Miss Sutterby takes responsibility for the integrity of the Exploration

Results including sampling, assaying, and QA/QC, and the preparation of the geological interpretations. Mr Brown takes responsibility for the Mineral Resource

Estimate. The Competent Persons consent to the inclusion of such information in this presentation in the form and context in which it appears.

References

This presentation does not contain any new information. Any exploration results referenced in the document have previously been released to the ASX. The

summary of relevant information and announcements are listed in Appendix 1.

Forward-Looking Statements

This presentation has been prepared by Ausgold Limited and contains background information about Ausgold Limited current at the date of this presentation. The

presentation is in summary form and does not purport to be all inclusive or complete. Recipients should conduct their own investigations and perform their own

analysis in order to satisfy themselves as to the accuracy and completeness of the information, statements and opinions contained in this presentation.

This presentation is for information purposes only. Neither this presentation nor the information in it constitutes an offer, invitation, solicitation or recommendation in

relation to the purchase or sale of shares. This presentation does not constitute investment advice and has been prepared without taking into account the recipient's

investment objectives, financial circumstances or particular needs and the opinions and recommendations in this presentation are not intended to represent

recommendations of particular persons. Recipients should seek professional advice when deciding if an investment is appropriate. 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, Ausgold Limited and its officers, employees, agents and advisers do not make any representation or warranty, express or

implied, as to the currency, accuracy, reliability or completeness of any information, statement, 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 risk, uncertainties and assumptions

that are outside the control of Ausgold Limited. Actual values, results or events may be materially different to those expressed or implied in this presentation. Given

these uncertainties, recipients are cautioned not to place reliance on forward-looking statements. Subject to any continuing obligations under the applicable law and

ASX Listing Rules, Ausgold Limited does not undertake any obligation to update or revise any information or any of the forward-looking statements in this

presentation of any changes in events, conditions or circumstances on which any such forward-looking statement is based.

2

For

per

sona

l use

onl

y

Company Overview

• Western Australia based gold explorer

• Significant gold asset in south west WA

• Positioned to create shareholder value through exploration success

• Experienced board and management

3

Katanning Gold

Project

Katanning Gold

Project

Doolgunna

Station

Doolgunna

Station Yamarna Yamarna

Cracow Cracow

For

per

sona

l use

onl

y

Corporate Overview

4

ASX: AUC

Total Ordinary Shares on Issue 327.5m

Options on issue1 26.5m

Cash (as at 31/7/16) $0.8m

Debt Nil

Market Capitalisation (at 5cps) $16m

Shareholders

Richard Lockwood (Chairman) 7.57%

Transcontinental Investments Pty Ltd 7.13%

CQS Asset Management 4.76%

Batterbury Holdings 3.94%

Denis Rakich (Director) 3.78%

Dinas Super Fund 3.64%

Share Trading Data

0

1

2

3

4

5

6

7

8

9

0.00

0.01

0.02

0.03

0.04

0.05

0.06

0.07

Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16

Dail

y V

olu

meT

rad

ed

On

-Mark

et

Mil

lio

ns

Clo

se P

rice (

A$/s

ha

re)

Daily Volume Traded On-Market Daily Close Price - AUC

1 Note:

Price A$0.09 expiring 31 January 2017 (14m)

Price A$0.07 expiring 31 December 2017 (2.9m)

Price A$0.08 expiring 30 November 2019 (9,57m)

For

per

sona

l use

onl

y

Board & Management

5

Richard Lockwood Non Executive Chairman

45 years’ experience in mining, funds management and gold

mining investment.

Geoff Jones Non Executive Director

30 years’ experience in construction, engineering, minerals

processing and project development in Australia and overseas,

Managing Director of GR Engineering.

Neil Fearis Non Executive Director

38 years’ experience in commercial law, M&A, capital raisings and

corporate reconstructions with a focus on the mining and

resources sectors.

Denis Rakich Executive Director &

Company Secretary

30 years’ experience in resource sector, legal, financial and

corporate management.

Melanie Sutterby Geology Manager

13 years’ experience in resources industry from exploration,

project and resource development, open pit and underground

mining.

Elsie Lee Financial Controller

18 years’ experience in financial management, corporate

reconstruction, corporate compliance and capital management.

For

per

sona

l use

onl

y

Katanning Gold Project (KGP)

• Large +2,000km2 landholding

– 100% AUC held tenure

– 40km from Katanning

– ~300km from Perth

– No Native Title issues

– Historic mining operation

– Established infrastructure

• Existing +600koz Mineral

Resource1

• Significant scope for expansion

• Recent discovery validates

strategy

• Under-developed and under-

explored Archean Greenstone

gold terrane

6

For

per

sona

l use

onl

y

KGP Geological Overview

• Gold discovered in 1979

• Limited exploration concentrated

along ~15km corridor

• High grade metamorphic terranes

traditionally overlooked

• Regional and near mine targets

remain under/unexplored

• New exploration model predicts

repetitions of mineralisation

• Abundant magnetic and geochemical

anomalies

7

For

per

sona

l use

onl

y

Mineral Resources at KGP

Robust Mineral Resource (Details in Appendix 2)

Overall 66% of gold in Measured and Indicated categories

Historical mining and metallurgical test work indicates good recoveries

and encouraging proportions of free milling gold

Mineralisation open with potential to expand high grade shoots

Excellent basis for further Mineral Resource growth

8

Mineral Resources at KGP Tonnes

(Mt)

Gold

(g/t)

Ounces

(‘000)

Measured Resource 3.0 1.94 188

Indicated Resource 6.7 1.07 230

Inferred Resource 6.6 1.02 219

TOTAL 16.4 1.21 637 * KGP Mineral Resource Estimates prepared by SRK Consulting in compliance with recommendations in the Australasian

Code for Reporting Mineral Resources and Ore Reserves (2012) by the Joint Ore Reserves Committee (JORC).

For

per

sona

l use

onl

y

KGP Mineral Resources

9

DINGO

FRASER

JINKA

JACKSON

LONE TREE

WHITE DAM

OLYMPIA

• 3D view looking west at the mine corridor showing Leapfrog grade shells

• Northerly and southerly plunging high grade shoots

• Structurally controlled high grade shoots open at depth

N

OPEN

OPEN OPEN

Drill holes have often missed

high grade plunging ore shoots

Potential for lode repetitions

Approximately 7km

For

per

sona

l use

onl

y

Targeting New Discoveries in Region

10

DATATINE:

New discovery

High grade gold

Imminent RC

follow up

NEAR MINE:

Predicted model

repetitions

Multiple targets

Gold-in-soil

anomalies

Geophysical

anomalies

Infill sampling

planned

LUKIN and

SHOESTRING:

Walk up AC and

RC targets

Drilling planned

NEAR MINE:

Extensive

untested gold-in-

soil anomalies

Infill sampling

planned For

per

sona

l use

onl

y

Example: Datatine Exploration Project

• High grade gold discovery from

reconnaissance aircore drilling

• 22m @ 3.67g/t (from 4m to EOH),

including 4m @ 16.90g/t from 4m

• 17m @ 1.00 g/t (from 16m to EOH)

11

• Shallow oxide and fresh

sulphide potential

• Mineralisation is open in all

directions.

• RC rig on standby to follow up

For

per

sona

l use

onl

y

Targeting Resource Extensions

• Significant potential for extensions to existing Mineral Resources

• Recent drilling confirms high grade shoot development at White Dam

• Rapid expansion of Mineral Resource possible

12

For

per

sona

l use

onl

y

Development Strategy

• Ausgold sees significant potential in the KGP due to its sizeable

existing Mineral Resource position, and strong exploration upside

• Ausgold is committed to delivering a strong PFS following Resource

expansion

13

Milestone 3Q 2016 4Q 2016 1Q 2017 2Q 2017 3Q 2017 4Q 2017 1Q 2018 2Q 2018

Exploration & Development Drilling Planned Planned Planned Planned

Exploration Aircore Drilling Planned Planned Planned Planned

Surface geochemistry Planned

Geophysics Planned Planned

Data review and assessment Planned

Metallurgical test work Planned

KGP pre-feasibility studies

For

per

sona

l use

onl

y

Investment Highlights

• Significant Resource position, mainly held on mining leases

• Excellent regional exploration prospectivity

– New discovery at Datatine demonstrates potential

• Significant extensional prospectivity at existing Resources

– Recent drilling confirms high grade shoot at White Dam

• Active Exploration and Resource Development programs with a

commitment to spend >75% of funds “in-ground”

• Significant drilling programme planned to commence shortly

• Potential to grow KGP into new regional gold mining centre

• Management commitment to aggressive exploration and pursuit of

pre-feasibility study

14

For

per

sona

l use

onl

y

Appendix 1: References

1. “Updated JORC Resource” ASX Announcement 21st October 2015

2. “New Gold Discovery at Katanning Project” ASX Announcement 5th May 2016

15

For

per

sona

l use

onl

y

Appendix 2: Resource Table

• KGP Mineral Resource Estimates (2015; SRK Consulting, developed in accordance with

JORC 2012)

• Notes: The Mineral Resource is reported at a lower cut-off grade of 0.50g/t gold.

• The topographic surface at the KGP is at approximately 360mRL with the Mineral

Resource Estimate stated to a depth of 210mRL (approximately 150 metres below land

surface).

16

Tonnes

(Mt)

Grade

(g/t Koz

Tonnes

(Mt)

Grade

(g/t Koz

Tonnes

(Mt)

Grade

(g/t Koz

Tonnes

(Mt)

Grade

(g/t Koz

Jinkas Main Lodes 2.37 2.15 164 1.00 1.13 36 0.75 0.89 21 4.13 1.67 221

Jinkas HW Lodes 0.22 1.10 8 0.76 1.02 25 0.49 0.91 14 1.47 1.00 47

Jinkas Total 2.59 2.06 171 1.77 1.08 62 1.24 0.90 36 5.59 1.49 268

Dingo Main Lodes 0.44 1.22 17 2.95 1.11 106 0.38 0.77 9 3.77 1.09 132

Dingo HW Lodes - - - 0.63 0.72 15 0.31 0.64 6 0.94 0.69 21

Dingo Total 0.44 1.22 17 3.58 1.05 120 0.69 0.71 16 4.70 1.01 153

Jackson Main - - - 0.32 1.50 16 0.04 0.94 1 0.37 1.43 17

Jackson HW & FW - - - 0.47 1.02 15 0.19 0.95 6 0.66 1.00 21

Jackson total - - - 0.79 1.22 31 0.24 0.95 7 1.02 1.15 38

Lone Tree Total - - - 0.17 0.93 5 1.19 0.76 29 1.37 0.78 34

White Dam Total - - - 0.38 1.00 12 3.28 1.24 131 3.66 1.22 143

GRAND TOTAL 3.0 1.94 188 6.7 1.07 230 6.6 1.02 219 16.4 1.21 637

For

per

sona

l use

onl

y