Focusing on Near Term Production and Exploration in Quebec

Transcription

1 Focusing on Near Term Production and Exploration in Quebec AGM January 2016

2 Forward Looking Statement Forward Looking Statement This presentation may contain forward looking statements, being statements which are not historical facts, and discussions of future plans and objectives. There can be no assurance that such statements will prove accurate. Such statements are necessarily based upon a number of estimates and assumptions that are subject to numerous risks and uncertainties that could cause actual results and future events to differ materially from those anticipated or projected. Important factors that could cause actual results to differ materially from the Company's expectations are in the documents filed from time to time with the TSX and provincial securities regulators, most of which are available at Adventure Gold Inc. ( AGE ) disclaims any intention or obligation to revise or update such statements. This presentation is prepared by AGE s management and AGE is solely responsible for content and format. Marco Gagnon, P.Geo is a non-independent Qualified Person and has compiled this presentation from publicly available industry information, NI compliant technical reports and new releases with specific underlying Qualified Persons as set out in the releases and reports. Industry Information has been compiled from publicly available sources and may not be complete, up to date or reliable. Standards of Disclosure for Mineral Projects The mineral resource estimates reported in this presentation were prepared in accordance with Canadian National Instrument Standards of Disclosure for Mineral Projects ( NI ), as required by Canadian securities regulatory authorities. Investors are cautioned not to assume that any part or all of the mineral deposits in these categories constitute or will ever be converted into reserves. In addition, inferred mineral resources have an amount of uncertainty as to their existence and an uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. The data is incomplete and additional work will be required to complete further evaluation, including but not limited to drilling, engineering and socio-economic studies and investment. Under Canadian securities laws, issuers must not make any disclosure of results of an economic analysis that includes inferred mineral resources. The TSX has not reviewed and does not accept responsibility for the accuracy or adequacy of this presentation. 2

3 A Clear Corporate Strategy Explore and develop quality gold properties in one of the best world class deposit-rich mining areas: the Abitibi Greenstone Belt in Canada Create value for shareholders through: - strategic acquisitions - exploration discoveries, - resource development and - eventually revenue from production We also believe in continuity Same strategy / team since the beginning of our story 3

4 Company Summary Canada Portfolio of quality projects in one of the most favorable mining area and one of the safest jurisdiction in the world: Abitibi, Quebec, Canada Proven Board and Management Team Chairman, Stéphane le Bouyonnec: Well connected in Quebec and Europe and successful M&A advisor through his own advisory firm, FTM Synergis Capital. Directors: Niel Marotta (Mining & Financial services) ; Mario Caron (P. Eng Strong Mining Operation Expertise) ; Michael Williams (Junior Mining Executive); Marc L Heureux (P.Geo. - Technical Expertise) Company lead by Robert Boisjoli (CFO) and Mining and Exploration geologists, Jules Riopel (VP Explo) & Marco Gagnon (CEO) - Outlined and/or discovered 5.8 M oz in the Abitibi Projects Val-d Or East flagship project: 770, g/t Au (330,000 oz in-pit) close to the surface and the former Beliveau Mine existing infrastructure Detour Quebec project : One of the largest land package on the Detour Gold Trend adjacent and 15 kilometres away from Detour Gold Corp. mine (+15.6M Oz) JV s with Agnico-Eagle in Val-d Or and Lake Shore Gold in Timmins Casa-Cameron project under option and funded by GFK Res. Commitment and Funding Low cost explorer with very positive results near existing and producing mines Val-d Or East project Plan : Near term, low CAPEX and toll milling production scenario Attractive capital structure 80 Mshares with no debt, C$ 1.7M in hard cash & tax returns. 4

5 Strong Portfolio of Prospective Projects Since $ in exploration expenses incurred by AGE and 7M$ by our partners Detour Lake Mine P & P Reserves: g/t Au for 15 M Oz Au (Detour Gold NI compliant as 2014 Year-end Mineral Reserves and Resources) 1 :From GSC Website - World General Geoscience Database Casa-Berardi Mine P & P Reserves: g/t Au for 1.3M Oz Au (Hecla Mining PR February 12, 2015)) Abitibi Greenstone Belt 200M Ounces of gold produced & reserves totalling 30M Ounces 5

6 Val-d Or East - Project Highlights Adventure Gold s main focus is to fast track their Val-d Or East flagship project towards production: Encompasses the former Beliveau mine (170k+ ozs) and located next door to the producing Richmont Beaufor Mine (1M+ oz) Gold production from 1989 to 1993 by Cambior Inc. (now IAMGOLD)) A total of 1.8 Mt of ore was extracted at a grade of 3.2 g/t Au, from the surface to 300 metres depth (170,000 ounces of gold produced); shaft and U/G development still usable Adventure Best drill results show widths of m with grades between 1-3 g/t Au. Higher grades zones up to 12.9 g/t Au over 8 metres, 10.4 g/t Au over 10 metres, 7.1 g/t Au over 11.1 metres & 5.4 g/t Au over 20 metres Initial NI resources estimates outlines close to near surface and existing infrastructure: 770,000 ounces of gold at 2.63 g/t in the inferred category (330,000 ounces at 2.4 g/t Au in-pit resources-225m and 394,000 ounces at 3.1 g/t Au in underground bulk mining) No environmental issues are noticed from past exploitation Strong support from the local community and Quebec Government for this project 6

7 Val-d Or - claims map 7

8 Val-d Or East Resource Overview 8

9 Val-d Or East Recent Exploration Work 3,000 metres of drilling completed in fall Best results outlined a new discovery grading 12.4 g/t Au over 7.0 metres at 11 metres from the surface (B2 dike) Mechanical stripping of two gold zone in Channel sampling results up to 10.6 g/t Au over 11.5m 9

10 Val-d Or East Production Scenario Based on the technical results and an in-house study, a custom milling scenario in Val-d Or suggests a profitable exploitation of 250,000 to 300,000 ounces gold resource by open pit and by using existing underground infrastructure Mineralized material from the property is compatible with the gold mills in the immediate area. Historically, the average recovery was very good at 93-95%, where half of the gold was recuperated by gravity Production statistics from the former Beliveau mine averaged 1,175 tonnes per day for an average production of 43,500 ounces at 3.2 g/t of gold per year at a cash cost of C$ 233 per ounce. Average POG during the LOM was C$

11 Val-d Or East UG Resources Below Whittle Optimized Pit (Underground Potential) New underground resources are better than the average grade from historical production at LC Beliveau COG (g/t) Tonnes (t) Grade (g/t) Underground resources using different cut-off grade Ounces (Oz) ,160, , ,726, , ,612, ,000 (From AGE NI SGS Canada, Jan. 2013) 11

12 Val-d Or East Plans for 2016 Technical and economic studies for a starterpit scenario. Next exploration program will focus on further expansion and delineation of the already identified gold resources near surface and under the former Beliveau Mine. New drilling program planned for this year (need 1.5M$) 12

13 Detour Quebec Project 13

14 AGE properties along the DGT 888 claims 80km long 481 km² 14

15 2016 exploration work funded by SOQUEM 15

16 2016 exploration work North Block 16

17 2016 exploration work East Block 17

18 Why Invest in Adventure Gold Who we are: Highly-experienced technical management team led by mining professionals Supported by a strong and diversified board of directors Our Projects in low risk jurisdictions Val-d Or area has seen gold production of over 30 M ounces Timmins and the Detour trend is home to world-class gold producers Adventure Gold has a portfolio of 6 projects with Val-d Or East as the most advanced Majority of exploration activities in Quebec with government support on exploration (up to 30% exploration credits) Projects 1. Focused on one significant project Val-d Or East, Quebec Adjacent to the Beaufor producing gold mine (1 Moz. of historic production) Encompasses the former Beliveau gold mine (0.17Moz of historic prod.) New Resource: 770, g/t Au and growing Existing mining infrastructure in place and custom milling available for near term production scenario 2. Upside, a portfolio of prolific projects: Detour Quebec and 3 partnerships Detour Quebec SOQUEM (1M$ funded by SOQUEM for the next year) Detour Quebec East and North (100% AGE - 250k$ minimum budget) Joint Ventures with Lake Shore Gold and Agnico Eagles (not active) Casa-Cameron project under option and funded by GFK Res. (225k$ minimum budget) Analyst Coverage : Éric Lemieux, MSc, P.Geo, at Peartree Financial Services Ltd. Tel: eric.lemieux@peartreesecurities.com Shares outstanding: 80 M Fully Diluted 86.7 M Options: 4.0 C$0.1 to C$0.57 Warrants: 0.3 C$ C$0.20 Shareholder structure Funds and Institutions 36% Directors, Officers & Empl. 9% High net worth individuals 24% Market cap of C$ 10.4 M (as of January 13, 2016) C$1.6M cash, no debt Strong balance sheet / low deficit Focused on efficient allocation of capital resources and protection of share count Near-term Catalysts, Plan for near term production with toll milling Strong potential to grow the resource over 1 M ounces 18

19 Key Share Price Drivers in 2016 Short-term objective to define more than 1 Million ounces of gold close to the existing infrastructure in Val-d Or. Focus on bringing Val-d Or East - Pascalis to production stage in a short term period. Very positive high grades drilling results released recently. New drilling, technical and economic studies scheduled for next nine months. New significant drilling program in January 2016 on Detour Quebec SOQUEM (1M$ to be spend for the next year). Continue to define new drilling targets on Detour Quebec East and North properties (100% AGE - important geophysical surveys recently completed outlined quality drilling targets). A first drilling program scheduled for February on the 100% owned Detour Quebec North. Advance the Casa-Cameron project funded by our partner GFK Resources (new budget 225k$). Sell, option or spin-off some assets to create value for actual shareholders. 19

20 History of Financings and Exploration Expenses PARTNERS Exploration Expenses : 7M$ Total AGE Exploration Expenses : 13M$ 1.6M$ 1.0M$ 1.6M$ 2.4M$ 1.9M$ 1.4M$ 0.8M$ 0.9M$ 27M shares At IPO 33M 38M 51M 60M 67M 69M 74M Since the IPO, 150M shares traded averaging C$ M 20

21 History of TXS-V index over 25 years We know that resources market is cyclical We are at/or close to the bottom Good timing for investing! 467! 21

22 Join our quest for success... Thank you! TSX-V: AGE 22