Quarterly Report
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SARACEN MINERAL HOLDINGS LIMITED
ACN: 009 215 347
Thunderbox to deliver low cost growth from June Quarter 2016
Saracen debt-free and set to double gold production to ~300,000ozpa
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Corporate Details:
25th November 2015 ASX code: SAR Corporate Structure:
Ordinary shares on issue: 792.8m
Unvested employee performance rights: 7.1m
Market Capitalisation: A$396m (share price A$0.50)
Cash & Bullion (30 September): A$44.9m Debt: Nil
Directors:
Mr Geoff Clifford
Non-Executive Chairman
Mr Raleigh Finlayson Managing Director
Mr Mark Connelly Non-Executive
Mr Barrie Parker Non-Executive
Mr Martin Reed Non-Executive
Ms Samantha Tough Non-Executive
Substantial Shareholders:
Wroxby Pty Ltd 8.2%
Paradice Investment Management 7.9% Karara Capital Pty Ltd 6.2%
Van Eck 5.0%
Registered Office:
Level 4
89 St Georges Terrace Perth WA 6000
Telephone: +61 8 6229 9100
Facsimile: +61 8 6229 9199
For further details contact:
Troy Irvin Telephone +61 8 6229 9100
[email protected]
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Key Points
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Outstanding development progress continues at the $65 million Thunderbox gold project:
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Open pit mining has advanced to a depth of 40m, with 4.46 million BCMs mined to date (vs. 4.03 million budget)
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Second grade control drilling program completed, drill results and Resource model update confirm consistent / predictable ore body
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First ore mined in October ahead of schedule
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Plant refurbishment continuing ahead of schedule
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Commissioning on track for the March Quarter 2016
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First gold production on track for the June Quarter 2016
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Potential to add ~20koz from Thunderbox to FY16 production guidance of 150-160koz (currently Carosue Dam only)
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Stage 1 of the Kailis Pit cutback is scheduled to commence during FY17, with indicative cash flow of ~$27m from ~50koz of production over a 12 month period
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Saracen remains debt-free with net cash and bullion of $44.9 million at 30 September 2015
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Saracen is set to double gold production to ~300,000ozpa at an AISC of
Saracen Mineral Holdings (ASX: SAR) is pleased to confirm the continuation of outstanding progress with mining, plant refurbishment and infrastructure at its 100%-owned Thunderbox gold project in Western Australia. The project remains on track for first gold production in the June Quarter 2016 (bought forward from the September Quarter 2016 - refer to the ASX announcement dated 16th September 2015 'Thunderbox Project Progress and Guidance').
Armed with a conservative balance sheet and robust cash flows from its Carosue Dam operations, Saracen is well positioned to double gold production to a targeted annualised rate of ~300,000ozpa with the development of its second processing centre at Thunderbox.
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Mining
Mining continues to progress ahead of the plan. Year to date (YTD) total mined volume is ~11% ahead of the budget schedule. Increased excavator productivities are being experienced in the oxide material of the Zone 'A' cutback.
Figure 1 - Mining in the Zone 'A' open pit
First ore has been mined ahead of the budget schedule.
Drill and blast costs are in line with the budget, with the low powder factors in the oxide zone continuing to contribute to the increased digging productivities whilst containing costs.
Figure 2 - Blasting in the Zone 'A' open pit
The second mining fleet excavator (EX1900) has mobilised to site and was assembled during October. The digger underwent rigorous testing and pre-commencement servicing and started mining in the Zone 'A' cutback during November. The excavator was purchased for ~$2.5m and is the first item of open pit mining equipment to be owned by Saracen.
Figure 3 - Saracen excavator
Grade control drilling
The first Grade Control program, which was split over the 2480RL and the 2475RL, is now complete with all assay results received. The program focused on the southern extent as well as the western edge of the previous Zone 'A' pit, where the modest hangingwall mineralisation is exposed (refer Figure 5).
Results were consistent with Zone 'A' previous drilling and resource estimation. A number of holes were extended at depth into the main footwall mineralisation. These holes returned interval widths and grades which aligned well with expectation (refer Figure 6). Notably hole TBGC_2475_082 returning 42m @ 1.5g/t (63 g*m), confirming the confidence in the model and interpretation.
Figure 4 - Thunderbox grade control drilling
Figure 5 - Thunderbox cross section illustrating the recent results in the hangingwall
Figure 6 - Thunderbox cross section highlighting Zone 'A' results