Metallon Corporation An African Gold Mining and Exploration Company – February 2015 Disclaimer Disclaimer This presentation has been created to provide general information, solely for the reader’s general knowledge, about Metallon Corporation (“Metallon”), its subsidiaries, properties and activities, as well as the countries it operates in. Although Metallon believes that the information included in this presentation is accurate and current, such information is not intended to be a comprehensive review of all matters and developments concerning Metallon and Metallon does not warrant or make any representations or claims as to the authenticity, validity, accuracy, completeness or currency of the information provided in this presentation. Moreover, Metallon, its directors and officers assume no responsibility for the information or representations contained in this presentation and shall not be liable or responsible for any claim or damage, direct or indirect, arising out of the interpretation, reliance upon or other use of the information provided herein. No information in this presentation constitutes a solicitation, offer or recommendation to engage in any investment activity, to effect any transactions, or to conclude any legal act of any kind whatsoever. Forward-looking statements Certain statements included in this presentation constitute “forward-looking statements” which, based on numerous assumptions, involve known and unknown risks, uncertainties and other factors which are beyond Metallon’s control that may affect the results, performance or achievements of Metallon. In certain cases, forward-looking information can be identified by the use of words such as "aim", "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "continues", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "should", "might" or "will be taken", "occur" or "be achieved" and include the negative variation of such phrases. With respect to forward-looking information contained in this presentation, Metallon has made assumptions regarding, among other things, Metallon’s ability to generate sufficient cash flow from operations and access to existing credit facilities and capital markets to meet its future obligations, the regulatory framework in its countries of operation with respect to, among other things, permits, licenses, authorizations, royalties, taxes and environmental matters, and Metallon's ability to obtain qualified staff and equipment in a timely and cost-efficient manner to meet Metallon's demand. Although Metallon believes that its expectations reflected in forward-looking information are reasonable, such forward-looking information involves known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Metallon or Metallon's projects in its countries of operations, or any of them, to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information. Such factors include, but are not limited to, risks related to failure to convert estimated mineral resources to reserves, conclusions of economic evaluations, changes in project parameters as plans continue to be refined, future prices of gold, unexpected increases in capital or operating costs, possible variations in mineral resources, grade or recovery rates, failure of equipment or processes to operate as anticipated, accidents, labour disputes and other risks of the mining industry, labour risks, delays in obtaining governmental consents, permits, licences and registrations or financing or in the completion of development or construction activities, risks of title to properties, partner risks, legal and litigation risks, political risks arising from operating in Africa, risks relating to changes in governmental regulations and in operating internationally, risks relating to the infrastructures, uncertainties relating to the availability and costs and availability of financing needed in the future, indebtedness risks, changes in equity markets, inflation, changes in exchange rates, exchange control and export restriction risks, fluctuations in commodity prices and uninsured risks. Although Metallon has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forwardlooking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Past performance of Metallon or its shares cannot be relied on as a guide to future performance. Accordingly, readers should not place undue reliance on forward-looking information. The forward-looking information contained herein, unless stated otherwise, is made as of the date of this presentation and Metallon makes no responsibility to update them or to revise them to reflect new events or circumstances, except as required by law. 2 Corporate overview A Private African Gold Mining and Exploration Company • Five underground mines in Zimbabwe, with exploration assets in Zimbabwe, Tanzania & DRC • Globally significant Mineral Resource of 9.7Moz of gold (JORC compliant) and exploration targets of between 4-6Moz • Gold production of 99,000oz in 2014 and target of approx. 150,000 ounces in 2015 • Low cost producer – all-in-costs of US$946/oz in 2014 and approx. US$883/oz expected in 2015 • Revenue of US$115m and net profit of US$10m in 2014 • Rising free cashflows - from ramp- up expansion plans to become a 500,000oz pa producer by 2019 3 Operations: Zimbabwe Operating mines • • • • How Mine Shamva Mine Mazowe Mine Arcturus Mine Mine under development • Redwing Mine Development potential • Motapa • Midwinter Metallon’s assets are considered to be the best gold mines in Zimbabwe – high grade, low cost operations 4 Zimbabwe – a golden opportunity Quality operations and world class mineral resources – efficient, professionally run mines High-grade, shallow underground gold mines – group average mined grade of 4.5g/t & reserve grade of 3.7g/t Low cost production – all-in-costs US$946/oz in 2014 Massive upside with additional on- and near- mine mining, tailings retreatment and highly prospective exploration targets Good infrastructure and skilled experienced labour force On grid power – ring-fenced electricity at 12c kw/h Supportive local communities Security of tenure provided by the Zimbabwe Mine and Minerals Act Chapter 21.05 Indigenisation plan submitted to the Zimbabwe Government Government understands that mining is essential to economic growth 5 Leading assets amongst our peers High reserve grade of 3.7g/t 5 4.5 Reserve Grade (g/t) 4 3.5 3 2.5 2 1.5 1 0.5 0 Acacia Shanta Metallon Caledonia Randgold Pan African SEMAFO Mwana Golden Star Endeavour Avocet Resolute Teranga IAMGOLD Perseus Centamin DRDGold World class resource of 9.7Moz 25 MI&I Resource (Moz) 20 15 10 5 0 Pan African IAMGOLD Acacia Randgold Resolute Metallon DRDGold Avocet Centamin Golden Star Endeavour Teranga Perseus Mwana SEMAFO Shanta Caledonia 6 Lowest cost producer amongst our peers One of the lowest cost African gold producers Company Teranga Metallon Reserve grade (g/t) 2014 AIC ($/oz) 2015E Prod (koz) 1.46 900 238 150 3.74 946 Shanta 4.50 960 84 SEMAFO 2.81 975 257 Randgold 3.60 1000 1084 Endeavour 2.24 1040 419 Centamin 1.11 1041 450 Pan African 3.58 1074 238 Acacia 4.74 1100 775 Sibanye 1.85 1100 1480 DRDGold 0.68 1125 155 Caledonia 3.67 1139 42 Mwana 2.67 1152 65 Resolute 1.56 1176 300 Golden Star 2.30 1185 271 IAMGOLD 1.26 1210 897 Harmony 0.83 1242 1310 Avocet 2.01 1355 129 Perseus 1.20 1469 240 7 Steady gold production in 2014 12,000 1200 10,000 1000 8,000 800 6,000 600 4,000 400 2,000 200 - 0 Jan-14 How Feb-14 Arcturus Mar-14 Apr-14 Shamva May-14 Redwing Jun-14 Jul-14 Mazowe Aug-14 Sep-14 Oct-14 C1 cost per oz (US$) Nov-14 Dec-14 All-in-cost per oz (US$) 8 Cost per oz (US$) Gold production (oz) Gold production per mine & cost per oz Gold production • Gold production of 150,000oz expected in 2015 – approx. 30% of Zimbabwe’s total production1 • All gold bullion produced is sold to Fidelity Printers, a subsidiary of the Zimbabwean Reserve Bank • 100% of the spot gold price is paid on delivery, minus the 5% Government royalty – royalty reduction from 7%, effective 1st October 2014. Added incentive for gold sector growth Note (1) As per estimates from the Zimbabwe Chamber of Mines Gold pour at Mazowe Mine – April 2014 9 Track record of delivery Increasing Production Financial Discipline Improved Delivery • Reopened four mines successfully • Low cost mining with all-incosts of US$946/oz in 2014 • Production increasing to 150,000 ounces in 2015 • Expected all-in-costs of US$883/oz in 2015 • Increased mineral resource from 8.6Moz to 9.7Moz in 2015 • Targeting production of 500,000 ounces by 2019 • Major expansion plans in Zimbabwe paid for by free cash flow & bank debt • Redwing to recommence production in 2015 • Sands treatment to commence at Mazowe in 2015 • Delivering free cash flow • Planning to be a consistent dividend player by 2016 • Diversification by acquiring assets in DRC & Tanzania • Focused exploration programme • Looking at further M&A opportunities • Expansion plans being undertaken 10 Financial summary FINANCIALS (US$m) FY 2011 FY 2012 15 Months FY 2013 Revenues 138.6 147.2 148.6 69.3 115.1 Operating Cost (94.1) (107.6) (123.2) (49.1) (76.7) Operating Profit 44.5 39.5 25.4 20.1 38.4 EBITDA 31.8 21.5 10.2 13.8 26.2 Net Profit 23.7 9.0 4.0 5.1 10 Current debt position: US$19m Treasury Bills: US$25m Current cash position: US$5m Capital expenditure: 6 Months HY 2014 Unaudited FY 2014 HY 2014 US$4.5m FY 2014 US$5.1m 11 Gold production and costs 2014 & 2015E Production for 2014 (oz) Unaudited C1 costs for 2014 (US $/oz) Unaudited all-in-costs for 2014 (US $/oz) Estimated Production for 2015 (oz) Estimated C1 costs for 2015 (US $/oz) Estimated all-in-costs for 2015 (US $/oz) How Mine 55,008 541 562 60,850 504 679 Shamva Mine 24,037 932 940 31,796 773 933 Mazowe Mine 11,380 1,057 1,110 27,813 627 799 Arcturus Mine 8,316 1,506 1,567 19,749 901 1,059 Redwing Mine 104* n/a n/a 10,034 833 1,427 98,845 776 946 150,242 658 883 GROUP * Sands processing discontinued at Redwing Mine 12 2015 CAPEX CAPEX spend in 2015 to achieve 150,000oz and future production growth Capacity Ramp Up Total US$42.88m – – – How Mine Arcturus Mine Shamva Mine US$0.3m US$2.2m US$18.7m – Mazowe Mine US$8.0m – Redwing Mine Restoration – Shamva Slimes Dam – turnkey construction – Mazowe Slimes Dam – turnkey construction – Dewatering, mine & plant rehabilitation US$4.5m US$4.3m US$4.8m How Sands Plant - turnkey project Total US$9.3m Mazowe Sands Plant - turnkey project Total US$7.3m Sustaining & other CAPEX TOTAL Total US$18.9m US$78.3m • Capital expenditure is to be funded from internal cash flows and local bank facilities • Detailed capital expenditure at each operation is available 13 Future gold production growth & costs Estimated future gold production & costs 2014 - 2019 600,000 1000 556,0821oz 900 500,000 473,145oz 400,000 700 336,422oz 300,000 600 238,857oz Costs (US$) Gold Production (oz) 800 500 200,000 150,242oz 400 98,845oz 100,000 300 - 200 2014 How 2015 Arcturus Shamva 2016 Redwing 2017 Mazowe 2018 C1 cost (US$) 2019 All-in-costs (US$) Targeting gold production of > 500,000oz pa by 2019 14 Financial information modelled on expansion plans 2015 - 2019 For the year ended 31 Dec Total gold production (oz) Unaudited 2014 2015E 2016E 2017E 2018E 2019E 98,845 150,242 238,857 336,422 473,145 556,082 5 78 82 64 42 31 115 178 283 399 561 659 Operating profit (US$m) 38 79 130 202 331 393 EBITDA (US$m) 26 53 101 164 282 339 Net profits (US$m) 10 22 59 109 233 277 Free cash flow (US$m) 12 (36) (6) 45 203 262 C1 cost (US$/oz) 776 658 641 584 487 479 All-in-costs (US$/oz) 946 883 794 715 600 584 Capital expenditure approx. (US$m) Revenue (US$m) • All expansion plans and CAPEX requirements still require detailed feasibility studies • Most capital expenditure will be funded by operating profit. 2015 – 2019 total capital expenditure is US$297m • The gold price used in forward-looking assumptions is US$1,200/oz 15 Planned expansion 2015 – 2019 New projects & CAPEX at each mine HOW • • • • Increase throughput & plant expansion to treat up to 80ktpm South shaft sinking & capital development Potential open pit surface targets 16NY shaft deepening SHAMVA • Upgrading shafts & plant expansion • Sands retreatment project with 80ktpm plant • Shamva Hill Open Pit MAZOWE • • • • • 2015 – 2019 Total CAPEX – US$69m • 2015 – 2019 Total CAPEX – US$54m Sands retreatment project with 80ktpm plant Upgrading shafts, shaft sinking & plant expansion Underground development & exploration activities Doubling plant capacity by 100% • 2015 – 2019 Total CAPEX – US$52m ARCTURUS • Upgrading shafts • Underground development & exploration activities • Shaft sinking • 2015 – 2019 Total CAPEX – US$46m REDWING • Decline mining to 6 Level • Shaft sinking & mechanised mining • Underground development & exploration activities • 2015 – 2019 Total CAPEX – US$73m Note: All expansion plans and CAPEX requirements still require detailed feasibility studies 16 CAPEX – sustaining, restoration & expansion CAPEX Sustaining, Restoration & Expansion Operations Revenue & Operating Profit 2015 - 2019 90 $78m 600 70 $64m 500 CAPEX (US$m) 60 50 400 $42m 40 $31m 300 30 200 20 Revenue & Profit (US$m) 80 700 $82m 100 10 - 2015 Sustaining 2016 Restoration 2017 Expansion 2018 Other Revenue 2019 Operating Profit 17 CAPEX – by mining operation Capital Expenditure by Mining Operation 2015 - 2019 90 $82m 80 $78m CAPEX (US$m) 70 $64m 60 50 $42m 40 $31m 30 20 10 2015 2016 How Arcturus 2017 Shamva Redwing 2018 2019 Mazowe 18 World class gold resources & further potential • Globally significant Mineral Resource of 9.7Moz of gold (JORC compliant June 2014) • Exploration results category contains about 4-6Moz from satellite ore bodies to operating mines (SRK 2013) • All five mines have open-ended depth and are under-explored across strike extensions • Historic drilling records were used to compute 3.5Mt @ 2.5-3.5g/t at Redwing, at shallow depth (120m to 180m) in 2013 • Conceptual target sizes of: − Mazowe Mine: 2.5 - 3Moz − Redwing Mine: 5 - 8Moz • Rich quartz veins offer exploration upside potential • Metallon is focused on increasing production to mine these resources 19 Additional gold exploration projects • Zimbabwe – Motapa − Brownfield project with sands & sulphide-gold resources (in-house estimate of 2.4Moz is not included in the 9.7Moz Group Resource Statement) − Successful ultrafine grinding metallurgical processing tested (the Albion process) − Contains the richer Motapa camp deposits (3-10g/t) of Club, B&S, Fossicker, Pluvius and Jupiter • Zimbabwe – Midwinter − Laterite-gold deposits in meta-sediments − Successfully re-modelled lateritic gold mineralization in 2013 − Step-out drilling east of Aurora Pit planned • Democratic Republic of Congo − 4 exploration properties secured in the Maniema province near Bukavu • Tanzania − Currently securing mineral rights located near the Lake Victoria gold fields Building an African footprint 20 Indigenisation – working with local communities • Indigenisation − Indigenisation proposal submitted to the Zimbabwe Government − Suggested structure includes 10% employee share schemes, 10% local communities, 10% Nat. Indigenisation & Empowerment Board − Liaising further with the Zimbabwe Government and awaiting approval in 2015 • Supportive local communities − Metallon is a good corporate citizen and is committed to maintaining its social licence to operate − Long-established track record of social delivery to employees & local communities: education, health, housing, other services − Platform for further, sustained socio-economic development through community trust model 21 Positioning for growth • A golden opportunity – 9.7Moz world class resource – established infrastructure – skilled labour Expansion projects at existing operations More investment in Zimbabwe More jobs, revenue Future exploration projects Focused M&A activities GOLD PRODUCER +500,000oz/pa 22 Appendices 23 Biographies: Board of Directors Sir Nicholas Bonsor Independent Non-Executive Chairman Sir Nicholas Bonsor joined Metallon as Independent Non-Executive Chairman in March 2011 and is Chairman of the Nominations Committee. He serves on the Boards of several listed companies and is currently Chairman of Tomco Energy Plc. He started his career as a barrister, practising in a Common Law Chambers from 1967 to 1975 and as a specialist in regulatory and commercial law from 2003 to 2011. He was a member of British Parliament from 1979 to 1997. He holds a MA in Jurisprudence from Oxford University. Robert Robertson Senior Independent Non-Executive Director Robert Robertson joined the Board of Metallon in March 2011. He is a Senior Independent Non-Executive Director and Chairman of the Audit, SHE and Remuneration Committees. He is a Director of BlackRock Smaller Companies Trust plc and Lowland Investment Company plc. He was previously chairman of West China Cement, a Director at Avocet Mining plc and Buro Happold Engineers, and Chief Executive of Tarmac Group and Anglo American's Industrial Minerals division. His early career was in finance, working in London, Paris, Johannesburg, New York and Rio de Janeiro. He holds a MA in History from Oxford University. Dr Tomaz A. Salomão Non-Executive Director Dr Tomaz Salomão joined the Board of Metallon in December 2014. He is the former Executive Secretary of the Southern African Development Community (SADC) and served from 2005 - 2013. Dr Salomão has made significant contributions to the development of Mozambique and the Region in senior positions for 22 years. During this period, he also served as Governor for Mozambique at the African Development Bank, IMF and World Bank. Dr Salomão is qualified as Certified Public Accountant, has Bachelor of Arts and Master of Arts Degrees in Economics. He is currently the Chairman of the Board of Directors of the Standard Bank, Mozambique (non executive), and a visiting Research Fellow at the Wits School of Governance at the University of Witwatersrand in Johannesburg. Mzilikazi Khumalo Chief Executive & Deputy Chairman Mzilikazi Khumalo founded Metallon in 2001 and is the main shareholder of the Company. He purchased the assets in Zimbabwe from Lonmin in 2002. He has held the position of chairman at various companies including JCI Limited, Capital Alliance Holdings Limited and Point Waterfront Corporation, as well as having been Non-Executive Director at Mintek, Telkom, McCarthy Retail Limited, Ridge Mining and Anglo American Corporation. He holds a Bachelor of Commerce degree from UNISA. Andile Reve Non-Executive Director Andile Reve joined Metallon in 2002 as Chief Executive and became a Non-Executive Director in August 2010. He was an analyst at Kwazulu Finance and Investment Corporation from 1987 to 1991 and a Commercial Manager at Eskom from 1991 to 1996. He joined the Rennies Group as an Executive Director in 1996 and in 1998 he moved to the Industrial Development Corporation as Executive Vice President – industrial finance. He holds an MBA from Rutgers University, State of New Jersey, USA, B .Com (Hons), UNISA and B.Com, Kwazulu-Natal. Kwaku Akosah-Bempah Non–Executive Director Kwaku Akosah-Bempah joined the Board of Metallon in August 2010. He was previously the chief financial officer of AngloGold Ashanti Limited’s West Africa Region, having previously served as general manager: corporate finance at Ashanti Goldfields Company Limited. He has also held several senior roles as finance director at Freda-Rebecca mine in Zimbabwe. He holds a Bachelor of Commerce (Hons) Degree and a Diploma in Education from the University of Cape Coast, Ghana, and an MBA from the Columbia Business School, USA. He is also a chartered accountant and member of the Institute of Taxation, Ghana. 24 Biographies: Executive Management Ken Mekani Chief Executive Officer Designate Ken Mekani has been with Metallon for 27 years after joining the then Lonrho Mining as Graduate Trainee Metallurgist in June 1987. After completing the Graduate Trainee Programme, Ken was appointed Plant Metallurgist. He spent several years in the group’s various operations where he worked his way up the ranks and was involved in major Metallurgical projects. In December 2012, he was appointed Acting COO for Metallon Gold Zimbabwe and in June 2013 was appointed General Manager for the group’s flagship operation, How Mine. From August 2010 to August 2013, Ken was non-Executive Director and Chairman of the Technical Committee of Sabi Gold Mine, a wholly owned subsidiary of the Zimbabwe Mining Development Corporation. Ken holds a BSc. Metallurgical Engineering (1987) from New Mexico Institute of Mining and Technology (USA) and a Masters in Business Administration (MBA) from the University Of Zimbabwe Graduate School Of Management (2006). Mark Tsomondo Director, Exploration and New Business Mark Tsomondo joined Metallon in 2010 as Group Exploration Manager. In that capacity, he undertook an in-depth review of Mineral Resource estimation for the Company. In January 2014 Mark became Chief Operating Officer and in September 2014 he was made Director Geology and New Business. Mark’s experience spans over 30 years and covers mining and exploration for gold, platinum, chrome and copper. Joining Union Carbide Zimbabwe in Kwe Kwe in 1981, he worked on the Great Dyke deposits and gold in greenstone belts rising through the ranks from Junior to Chief Geologist. Mark formed Midlands Geological Services in 1992, a consultancy that lasted for over a decade. He also worked as Mine Manager for an open pit operation for 4 years, including a recent stint as Non-Executive Director of ZMDC. He holds a BSc (Hons) from University of Rhodesia and an MSc and D.I.C. in Mineral Exploration from Royal School of Mines, London (1985). Dr Isadore Matunhire Technical Director Dr Isadore Matunhire joined Metallon in November 2013 as Head of Technical Services and in April 2014 became Technical Director. He is responsible for leading the expansion programmes, bankable feasibility studies and business integration. He has advised Metallon as an Independent Consultant since January 2013. He has over 20 years operational mining experience and 5 years in the mining consultancy field. He has worked for Zimbabwe Mining Development Corp and Bindura Nickel Corp in senior roles. He worked for TWP Projects as Lead Mining Engineer/ Project Manager where he completed feasibility and due diligence studies for Lonmin Platinum, African Consolidate Resources, Metallon, Anglo Platinum, Zimasco Chrome, Wesizwe Platinum, and BCL Selebi-Phikwe. He has also lectured in the Mining Engineering Department at the University of Pretoria and worked as Corporate Affairs Director for Mwana Africa. He graduated with a PhD in Mineral Economics from University of Nottingham, England and MSc in Management from City University, London. Tulani Sikwila Finance Director Tulani Sikwila joined Metallon in 2005 and became Group Finance Director in March 2012. He has a decade of operational, accounting and finance expertise in the mining industry having started his career at Ernst & Young in 2001, where he spent 4 years as an Audit Supervisor. A chartered accountant by trade, he holds a B.Com in Accounting from Rhodes University, B. Compt (Honours) from UNISA, and a Diploma in Management Accounting (CIMA). 25 World class mineral resource – 9.7Moz Proved and Probable Reserves as at 30th June 2014 Proved Ton (kt) How U/g Probable Grade Ounce (g/t) s (oz) Ton (kt) Measured and Indicated Resources as at 30th June 2014 Total Grade Ounce (g/t) s (oz) Ton (kt) Measured How – U/g – 763 5.6 136 2,311 3.5 261 3,074 4.0 397 1.1 2.9 30 291 817 3,891 1.1 3.4 30 427 5.1 140 1,150 5.4 199 Surface Arcturus – U/g 763 5.6 136 817 3,128 296 6.19 59 854 296 Shamva – U/g Ton (kt) Grade Ounce (g/t) s (oz) 6.19 59 854 5.1 140 1,150 5.4 2.85 2.85 79 79 3452 3452 2.93 2.93 325 325 4,315 4,315 2.9 2.9 Arcturus – U/g Surface 199 404 404 Mazowe – U/g TOTAL 24 24 336 336 2,282 2.9 2.9 5.67 5.67 4.6 2 2 61 61 337 108 108 273 273 7,815 2.8 2.8 5.56 5.56 3.2 10 10 49 49 132 132 609 609 815 10,097 2.8 2.8 5.6 5.6 3.5 12 12 110 110 1,152 5.5 326 Ton (kt) Total Grade Ounce (g/t) s (oz) Ton (kt) Inferred Grade Ounce (g/t) s (oz) 2,745 817 3.9 1.1 342 30 4,600 817 4.5 1.1 668 30 1,855 5.5 326 3,562 3.3 372 5,417 4.0 698 359 1,272 6.7 1.1 77 45 2,471 5.2 413 2,830 1,272 5.4 1.1 490 45 1,631 2.3 122 2,471 5.2 413 4,102 4.0 535 1,936 2.6 160 817 10,537 – 8,601 3.0 2.9 977 Surface 2,401 0.8 61 2,401 0.8 61 Surface 2 167 1.2 6 167 1.2 6 160 11,169 2.5 885 13,105 2.5 1,045 1,936 Redwing – U/g Grade Ounce (g/t) s (oz) Surface Shamva U/g 863 863 1,855 Indicated Inferred, Measured and Indicated Resource as at 30th June 2014 Redwing – U/g Surface Sands Mazowe – U/g Surface TOTAL 1,534 2.6 2.5 127 7,989 4.0 1,020 9,523 3.8 1,147 9,906 0.3 105 9,906 0.3 105 1,125 19,429 2.0 1,252 1,311 4,967 8.2 0.8 348 125 6,278 2.3 473 1,534 2.5 127 17,895 2.0 517 4,967 9.5 0.8 159 125 794 7.4 5,484 1.6 284 794 12,441 2.5 1,019 35,891 7.4 2.6 189 189 2,984 48,331 2.6 Ton (kt) How – U/g Surface Arcturus – U/g Surface Shamva U/g Measured & Indicated Grade Ounces (g/t) (oz) Ton (kt) Total Grade Ounces Grade Ounces Ton (kt) (g/t) (oz) (g/t) (oz) 3,774 3.4 418 4,600 4.5 668 8,374 4.0 10,393 1.1 359 817 1.1 30 11,210 1.1 1,086 389 14,167 1.7 777 5,417 4.0 698 19,584 2.3 1,475 3,229 4.9 511 2,830 1,272 5.4 1.1 490 45 6,059 1,272 5.1 1.1 1,001 45 3,229 4.9 511 4,102 4.0 535 7,331 4.4 1,046 12,122 9,227 9,353 2.4 0.5 2.2 917 10,537 153 2,401 674 167 2.9 0.8 1.2 977 61 6 22,659 11,628 9,520 2.6 0.6 2.2 1,894 214 680 30,702 1.8 1,744 13,105 2.5 1,045 43,807 2.0 2,788 14,457 2.6 1,219 9,523 3.8 1,147 23,980 3.1 2,366 9,906 0.3 105 9,906 0.3 105 – Surface Redwing – U/g Surface Sands Mazowe – U/g Surface 14,457 2.6 1,219 19,429 2.0 1,252 33,886 2.3 2,471 5,546 7.3 1,293 1,311 8.2 348 6,857 7.4 1,641 1,300 5.0 209 4,967 0.8 125 6,267 1.7 334 6,846 6.8 1,502 6,278 2.3 473 13,124 4.7 1,975 69,401 2.6 5,753 48,331 2.6 4,003 117,732 2.6 9,756 4,003 TOTAL Note (1) Redwing Mineral Reserves were reclassified as a Resource due to mine flooding below 6 level 26 How Mine – Flagship Mining Operation Key information History Underground mine in production since 1942 Processing Central facility, using a combination of conventional milling, gravity recovery & carbon-in-leach process JORC Resource 1.5Moz (JORC resource June 2014) Current hoisting capacity 32 ktpm Current milling capacity 30 ktpm 2014 production 55,008oz 2014 all-in-cost $562/oz 2015 production 60,850oz (expected) 2015 all-in-cost $679/oz (expected) Av. mined grade 5g/t Exploration upside How South extension New orebody 350N discovered by exploration drilling Headgear at How Mine – April 2014 Underground at How Mine – April 2014 27 Shamva Mine Key information History Underground mining since 1893. 2.45Moz mined to date Processing Conventional crushing, milling, gravity recovery and combination of carbon-insolution & -pulp processes JORC Resource 2.8Moz (JORC Resource June 2014) Current hoisting capacity 45 ktpm Current milling capacity 33 ktpm 2014 production 24,037oz 2014 all-in-cost US$940/oz 2015 production 31,796oz (expected) 2015 all-in-cost US$933/oz (expected) Av. mined grade 3g/t Exploration upside Additional potential of 19Mt grading 1.7g/t scoped as open-pittable by SRK in 1999 Shamva mine and plant – April 2014 Workers at Shamva Mine – April 2014 28 Mazowe Mine Key information History Historic underground mining since 1890 Processing Conventional crushing, milling, free gold recovery and carbon-in-leach facility JORC Resource 2Moz (JORC Resource June 2014) Current hoisting capacity 19 ktpm Current milling capacity 10.5 ktpm 2014 production 11,380oz 2014 all-in-cost US$928/oz 2015 production 27,813oz (expected) 2015 all-in-cost US$799/oz (expected) Av. mined grade 5g/t Exploration upside Conceptual target size of 2.5 - 3Moz in up to 25 high-grade quartz reefs in BSV sections and down to 1000m depth Conveyor at Mazowe Mine – April 2014 Headframe at Mazowe Mine – April 2014 29 Arcturus Mine Key information History Underground mine production since 1907. Mine reopened in October 2013 Processing Ore is processed through conventional crushing, milling, gravity recovery and a combination of carbon-in- solution & pulp processes JORC Resource 1Moz (JORC Resource June 2014) Current hoisting capacity 15 ktpm Current milling capacity 15 ktpm 2014 production 8,316oz 2014 all-in-cost US$1,567/oz 2015 production 19,749oz (expected) 2015 all-in-cost $1,059/oz (expected) Av. mined grade 4.2g/t Future upside Production ramp up to capacity Working at Arcturus Mine – May 2012 Miners at Arcturus Mine – May 2012 30 Redwing Mine Key information History Historic underground mining since 1889. Mine flooded in recent years. Dewatering to be completed Q1 2015 & production to commence in 2015 Processing Combined underground and sand retreatment operation JORC Resource 2.5Moz (JORC Resource June 2014) 2015 production 10,034oz (estimate) Ramp up of plant capacity 23000tpm by December 2015 83000tpm by April 2017 193,000tpm by October 2018 Av. quartz grade 5.5g/t Exploration upside Conceptual exploration targets in multiple quartz-veins is 5 - 8 million ounces Shaft headframe at Redwing – April 2014 Mine planning and development– April 2014 31 Company group structure Metallon Corporation Limited (UK) Metallon Gold Zimbabwe (Private) Limited Bulawayo Mining Goldfields of Shamva Goldfields of Mazowe Company Company Company How Mine Shamva Mine Mazowe Mine & Arcturus Mine Metallon Management Services King’s Daughter Pazia Mining Oria Mining Company Company Company Redwing Mine Midwinter Mining Location Motapa Mining Lease 32 Metallon Corporation Address: 78 Pall Mall, London, SW1Y 5ES www.metcorp.co.uk Tel No: +44 (0) 203 178 7431
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