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Mungari Operation
The Mungari Operation includes the Frog’s Leg and White Foil mines

Evolution Ownership
100%

Location
600km east of  Perth, 20km west of Kalgoorlie, Western Australia, Australia

Local Communities
Kalgoorlie, Coolgardie

Year commenced operations
Frog’s Leg: underground commenced August 2007 after being open pit mined in 2004 and 2005
White Foil: open pit recommenced mid 2014 following construction of the Mungari plant. It previously produced for brief periods at a time (2002-2003 and later in 2010-2011)

History
White Foil
1996: Discovery of White Foil deposit (Mines and Resources Australia Pty Ltd, 51% (“MRA”) and Aurion Gold 49%)
2002-2003: White Foil open pit production (toll treatment)
2010-2011: Period of White Foil open pit mining (toll treatment)
Mid 2014: Full scale mining of White Foil recommenced

Frog’s Leg
1999: Discovery of Frog’s Leg deposit (MRA)
2004: Frog’s Leg open pit production commenced June 2004 (toll treatment)
2005: Frog’s Leg open pit production ceased in October 2005
2007: Frog’s Leg underground mining commences August 2007

  • 2003: Aurion Gold taken over by Placer Dome
  • 2006: Placer Dome taken over by Barrick Gold
  • 2006: Areva NC (“Areva”), vends its gold assets into TSX listed La Mancha Resources Inc. (“LMR”) for a ~60% stake in LMR. Executed via a sale of MRA and Compagnie Miniere Or SA which include Areva’s Australian and African gold assets. MRA owns 51% of both Frog’s Leg and White Foil
  • 2006: LMR acquires remaining 49% in White Foil from GKL Resources (a subsidiary of Barrick Gold)
  • 2010: Avoca Resources Ltd (“Avoca”) completes acquisition of Dioro Exploration NL (including 49% interest in Frog’s Leg)
  • 2011: Avoca merges with Anatolia Minerals Development Limited to form Alacer Gold (“Alacer”)
  • 2012: Naguib Sawiris’ Weather II Investments acquires LMR via recommended takeover offer
  • 2013: LMR acquires remaining 49% in Frog’s Leg mine from Alacer (taking LMR ownership of Frog’s Leg to 100%)
  • 2014: Mungari process plant completed on-time and on-budget May 2014
  • 2015: Evolution acquires 100% interest in the La Mancha Australian operations (Frog’s Leg underground, the adjacent White Foil open-pit and the Mungari 1.5Mtpa processing plant).

Style of mineralisation
Gold mineralisation at White Foil occurs in the quartz gabbro portion of a mafic sill that has intruded the volcaniclastic Black Flag sediments and is associated with quartz veining and stockwork veining. The mineralised zone is 70m wide, 400m long and dips to the WSW and WNS at between 50° to 60° and is open at depth.

The Frog’s Leg ore lodes occur at the steeply west dipping sheared contact between the Black Flag Volcaniclastics to the east and basalts to the west and gold is hosted in quartz veins and breccia.  The ore lodes are between 2m and 20m thick and occur as sub-parallel lodes.

Contained metals
Gold

Measured, Indicated and Inferred Resources (at 31 Dec 2016)
13.56Mt at 2.73g/t gold for 1.2Moz
Mungari Regional: 43.91Mt at 1.14g/t gold for 1.59Moz

Ore Reserves (as at 31 Dec 2016)
8.3Mt @ 2.25g/t gold for 602koz

Mining Method
Frog’s Leg – underground operation
White Foil – open pit operation

Processing Method
3 stage crushing-grinding-CIL

Process capacity
1.5Mtpa nameplate capacity (currently operating at 1.6Mtpa)

Geology
The White Foil and Frog’s Leg deposits are situated within the Norseman-Wiluna Greenstone Belt of the Yilgarn Craton, Western Australia. White Foil lies 3 km to the west of the Mungari Shear, a regional scale shear zone, and is hosted within a quartz rich gabbro unit which is part of the Powder Sill intrusive complex.

The Frog’s Leg deposit is located on the sheared contact between the porphyritic “cat rock” (regionally known as the Victorious Basalt) and volcaniclastic rocks of Black Flag Beds.

Mining
FY14 mine production of 125,000 ounces of gold was delivered from the Frog’s Leg underground operation. White Foil open-pit operation re-commenced mid 2014 and is expected to deliver annual production in excess of 40,000 ounces of gold.

Underground methodology employed at Frog’s Leg is top-down bench stoping with paste fill.

White Foil is an open pit mine utilising conventional drill and blast, load and haul methods.

Processing
The onsite 1.5Mtpa Mungari processing plant was completed on-time and on-budget (A$110 million) in June 2014. The processing plant consists of 3 stage crushing and ball milling, followed by conventional leaching.

White Foil now benefits from lower processing and haulage costs, making a larger portion of the resource economic. Driven by this ability to process the White Foil ore, exploration resumed in late 2012 and resulted in a 4-fold increase to reach an endowment of nearly 2 Moz.

Fact Sheet
Mungari fact sheet – updated May 2017

CNBC video on Mungari operations – click here to view