For personal use only Discovery-Leveraged Investment in Gold Feb ebruary 2019
DGO Corporate Overv rview Bo Board of f Dir irectors For personal use only Shares Sh Management 24.9 m 68 c Sh Share Pric rice Eduard Eshuys Eduard Eshuys Executive Chairman Executive Chairman Mark rket Ca Cap $ 17 m Bruce Parncutt AO Cindie Jupp Ca Cash (31 $ 2.5 m st Jan) 31 st n) Non-Executive Director Chief Financial Officer Optio tions: Ross Hutton 0.9m 40c c 30/0 /06/20 Non-Executive Director 10.0m $1.0 .00 31/1 /12/21 Michael Ilett Perf erformance Righ ights ts 2.9m Non-Executive Director $2.0 .00 31/0 /07/21 7 Majo jor Shareh ehold lders 84% Board Boa 24% 2
DGO’s purpose For personal use only To apply expertise and To build on the To provide an successful history of the disciplined allocation outstanding WA gold industry and to of capital to maximise opportunity for lead the cost effective returns for investors to participate discovery of gold shareholders in the in a discovery-leveraged resources underpinning gold sector. investment in gold. substantial future growth. 3
DGO’s Current Hold ldings: 2 Brownfields Positions: For personal use only DGO seeks to achieve its corporate De Grey Mining 6% objective of providing investors participation in a discovery- NTM Gold 13% leveraged exposure to gold, by: 6 Strategic Greenfields Land Positions: • In Investin ing in n listed br brownfie ield lds Mallina, Pilbara, WA 100% explo lorers tha that t sa sati tisfy fy key AU selectio sel ion crit criteria ia, and and Yerrida, Murchison WA 100% Cu/Au • Bui uild ldin ing str trategic ic gree eenfie ield lds Lake Randall, Eastern Goldfields 70% lan and pos posit itio ions, limit itin ing Au JV earning exp xpenditures to o ea early ly stag age Stuart Shelf, SA 100% tar arget de deli lineatio ion. Cu/Au/Co Mt Tom Price, Pilbara, WA 100% Au Yamarna, WA 100% Au 4
DGO’s 2019 Programme Holding Planned Activity Timing For personal use only Brownfields De Grey Mining 6% Continuing resource delineation drilling and economic studies. 2019 13% Continuing resource delineation drilling 2019 NTM Gold Greenfields 100% Drill testing of several strong soil gold anomalies on strike from Mallina June Quarter De Grey discoveries. Yerrida Basin 100% EM survey of 20km long gold and copper anomalies similar to nearby June Quarter DeGrussa deposit and sediment hosted copper deposits. 70% Drilling of gold targets under lake cover; geology analogous to nearby Lake Randall September Quarter 5m oz Granny Smith. Stuart Shelf, SA 100% Initial drill testing of copper and cobalt targets identified by CODES, October 2019 approx. 40km from BHP’s recent Oak Dam copper discovery. 5
DGO’s Strategy - Brownfields DGO strongly differentiates itself by identifying large scale gold discovery For personal use only opportunities that meet three key selection criteria: Brownfield gold resource discovery opportunities where finding costs are 1 Low finding assessed to be comfortably below the brownfield average of $20 per cost resource ounce. 2 Initial resource potential of greater than 3 million ounces as Potential a base line required to support successful development. for scale Potential for long term resource growth, well beyond 3 million ounces . 3 Optionality to the Potential for upside surprise via either a world class discovery upside (+10 million ounces) or substantial high grade mineralization. 6
Corporate Objective For personal use only Individual portfolio DGO Gold’s investments can primarily through objective is to realistically be strategic equity anticipated to build a investment return 30 % to 100 % portfolio of WA IRR’s based on brownfield successful ASX listed brownfield discovery discovery and opportunities development and also through outcomes over the tenement past five years. acquisitions and joint ventures 7
Brownfield discovery finding costs have averaged $20 per resource ounce and generate venture For personal use only DGO Gold defines capital type IRR’s over a 3 to 5 year time frame brownfield exploration as that occurring adjacent to known economic gold Res. Resource mineralisation where the Expl. Costs IRR Company ASX Period Discovered Finding Cost $m % geological controls and Moz $/oz settings are understood . Northern Star NST Over 3 years to Oct 2018 150.0 7.1 21 59 Dacian Gold DCN From IPO to Jul 2016 55.0 2.5 22 71 Kin Mining KIN From IPO to Jul 2016 26.0 1.0 26 83 Gold Road GOR Over 3 years to Jun 2016 104.0 6.4 16 37 Total 335 17 20 62 8
3 Is the threshold Is ld For personal use only for r su success in in value creating development Moz ASX lis listed explorer-held gold resources $ 150 /oz oz Producers valu alued oz & $ 50 between are valu ar alued at t $ 250 /oz an average of an of Resource Ounce Producers with ith less than 1 Moz in in resources ar are of often valu alued ar around $50 $50-$100 per r resource oz. z. 9 Source: GoldNerds Data Base Nov 2018 *Adj. Excludes Top & Bottom 10%
Dacian Go Da Gold ld brownfield ld resource dis iscovery ry su success, 71 71% IR IRR an and fin findin ing costs of of $2 $22 2 per ou ounce Exploration 3.4 years Feasibility 1.6 years Development 1.25 years Production For personal use only 4.0 $4.00 71% IRR $25m Raised $49m Raised @$2.50 @$2.70 3.5 $3.50 3.0 $3.00 Dacian Gold Share Price $ Resource M oz $110m Raised 2.5 $2.50 @$2.0 31% IRR 2.0 $2.00 Pre-IPO $10m Raised $25m Raised IPO $20m @$0.69 1.5 $1.50 Raised @$0.50 1.0 $1.00 0.5 $0.50 0.0 $0.00 2013 2017 2018 2015 2016 2014 Measured M oz Indicated Moz Infererred M oz Share price $ 10
DGO’s selection process for brownfields dis iscovery ry opportunities For personal use only Selection criteria for ASX listed companies Process ~90 ASX listed explorers in WA goldfields Assess scale of geological structures and expected cost of discovery 20 long list 7-8 short list 2 invested to date De Grey Mining Ltd MC $48.3M NTM Gold Ltd MC $12.5M 11
In Investment in in De Grey Min ining meets our sele lection cri riteria • Low finding costs For personal use only Brownfield op Br opportunit ity with multiple gold deposits aggregating over 1.39 Mozs of gold 1 . DGO expects average fin inding cos costs of of ap approxim imately ly $10 $10 DEG’s recent exploration success doll do llars per/oz. validates our initial prospectivity • Scale analysis: DGO sees resource growth potential well ab above 3M 56m @ 3.0g/t gold from 14m depth ounces from depth and strike extensions of existing resources. (DEG ASX announcement 15 th Oct 2018). • Upside optionality DEG’s land position in the Mallina Shear Zone has over 40 40 gold old geo eoch chemical ano anomalies al along 200 200km of strike with very little drilling below 100 metres. • Influential stake DGO 6% (9% fully diluted); Kirkland Lake Gold 8% (13% DEG’s holding of the 200km fully diluted). long Mallina Shear Zone has the potential to become a world class gold province. 12 1 ASX:DEG Announcement 3rd October 2018
DGO & De Grey control an emerging world cla lass gold ld province For personal use only Mallina- WA Kirkland Lake - Canada 1.4Moz – 200km (and growing) 70Moz - 300km Ashanti-Ghana DGO Gold De Grey 130Moz – 130km Kalgoorlie-WA 80Moz – 100km Source: compilation prepared by DGO Expert Research Advisor, Professor Neil Philips 13 *Note all province maps are at the same scale
DEG has a commanding position in in an emergin ing world ld cla lass gold ld provin ince For personal use only Pilbara Gold Province 14 DGO has 35km’s of prospective shear zones in addition to 6% of De Grey’s 200km’s
Recent exploration DEG’s Mallina: Outstanding exploration drill results success validates our initial prospectivity For personal use only analysis. Mallina • 56m @ 3.0g/t Au from 14m 1 Toweranna • 7m @ 17.3g/t from 101m 2 Withnell • 8m @ 7.5g/t Au from 137m 2 Mt Berghaus • 26m @ 3.5g/t Au from 3m 2 15 1 ASX:DEG Announcement 15 th October 2018 2 ASX:DEG Announcement 31 st October 2018
In Investment in in NTM Gold ld meets our sele lection cri riteria For personal use only • Low finding costs Brown Br wnfie ield ld op oppo portunit ity and a well positioned gold explorer in WA with 538,000 ounces of gold resources 1 already Recent exploration success: delineated 7m @ 4.7 g/t gold from 40 metres to DGO expects average fi find ndin ing cos osts of of app approxim imately ly $10 end of hole 2 do dolla lars per/oz. • Scale DGO’s investment will accelerate NTM’s strategically targeted drilling Clear potential for significant resource extensions and additions. 100% % held held, 40 ki kilometre pl plus us Mer Mertondale le Sh Shear Zon one. • Upside optionality Excell Ex llent br brownfie field ld di discovery ry po potentia ial l with less than 20% of the 40 kilometres of Mertondale Shear Zone being The management and board adequately explored. • Influential stake of NTM are aligned with DGO on how to accelerate the DGO will have a 13% interest in NTM after completing the subscription agreement. discovery of substantial resources. 16 1 ASX:NTM Announcement 13 th June 2018 2 ASX:NTM Announcement 17 th October 2018
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