Near-Term Gold Producer British Columbia, Canada SYS.V

Transcription

1 Near-Term Gold Producer British Columbia, Canada SYS.V July 2011

2 Cautionary and Forward Looking Statements This presentation contains certain forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of We have tried, whenever possible, to identify these forward-looking statements using words such as anticipates, believes, expects, plans, intends, potential and similar expressions. These statements reflect our current belief and are based on currently available information. Accordingly such forward-looking statements involve known and unknown risks, uncertainties and other factors which could cause the Company s actual results, performance or achievements to differ materially from those expressed or implied by such statements. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. We undertake no obligation to update or advise in the event of any change, addition, or alteration to the information contained in this presentation including such forward-looking statements. This presentation does not constitute an offer of the securities described herein. The content of this PowerPoint presentation has been reviewed by John P. Thompson, P.Eng., a Qualified Person for the purposes of NI , with the ability and authority to verify the authenticity and validity of the data. 2

3 Update - July 2011 Three drill programs currently underway Elizabeth underground 4,500 metres Elizabeth surface - 3,000 metres Blackdome surface 5,000 metres Initial drill results - late July Elizabeth underground exploration Fall of 2011 Q new resource Q pre-feasibility study Q commence production Mine management team in place Blackdome Gold Mine Elizabeth Gold Deposit 3

4 Location Map Blackdome-Elizabeth Gold Project 4

5 Mineral Claims SYS.V SONA Blackdome Gold Mine Canoe Creek French Bar (Au) Poison Mtn. (Cu/Au) Barrick Gold Gold Bridge Elizabeth Gold Deposit Clinton Bralorne Camp (historic > 4 mm oz. Au) Bralorne-Pioneer Mines Lillooet 5

6 Blackdome-Elizabeth Gold Project Blackdome Mill Permitted 300-tonne-per-day facility 6

7 Blackdome Gold Mine 1947 Discovered by prospector 1952 First underground drifting 1977 Acquisition by Blackdome Explorations Drilling & underground drifting Developed by Blackdome Mining Production 225,000 oz. Au recovered 20g Au/t grade 10g Au/t cutoff Recoveries of 93% Au and 78% Ag 1991 Mine mothballed, sold to private group 1995 Vended to Sona 1995 to 2010 work programs 6,547 oz. Au produced in 1999 Claims increased to 196 sq. km. Drilled 23 holes for 4,632 metres Tailings sampled, metallurgical analysis Resource estimate and economic study Facility on care and maintenance 7

8 Blackdome Gold Mine GIANT VEIN EXTENSION TAILINGS POND MILL CAMP 8

9 Elizabeth Gold Deposit 1943 Crown granted claims staked 1947 Bralorne Mines options property 1948 Lower Adit drifted 1950 No. 9 Adit drifted 1955 Bethlehem Copper options property 1956 Upper Adit drifted 1989 Blackdome Mining options property 1990 Upper and Lower adits sampled 2002 Sona options property 2002 to 2010 work programs Claims increased to 124 sq. km. Drilled 91 holes 12,727 metres Rehabilitation of underground workings Resource estimation and economic study > $3 million spent 9

10 Elizabeth Gold Deposit No. 9 Vein Adit 2300m asl Southwest Vein Resource * Au/t 144,000 oz. Au inferred West Vein Outcrop Jewellery Box West Vein Resource * 9.95 Au/t 62,000 oz. Au inferred Upper Adit 2220m asl Lower Adit 2060m asl Southwest Vein Portal 2011 Underground Program 2300m asl Main Vein * SRK (2009) 10

11 Mineral Resources Blackdome Gold Mine Tonnes Grade Au/t Contained Gold Indicated 1 144, g 52,600 Inferred 1 90, g 25,900 Tailings Inferred 2 298, g 14,145 Elizabeth Gold Deposit Tonnes Grade Au/t Contained Gold Inferred 3 523, g 206,000 1 SRK Micon SRK 2009 Caution: Mineral resources are not mineral reserves and do not have economic viability 11

12 Aboriginal Partnership Granted 4-year option to Stswecem c Xgat tem Development Limited Partnership to purchase up to 10% of mine holding company Exercisable at time of production decision Share in risks and rewards Monetized in an orderly fashion 12

13 Blackdome - Elizabeth Gold Project 100% ownership Advanced stage project Mine management team in place Deposits open to rapid expansion Existing 300 tpd permitted milling facility Estimated replacement cost of $80 million Conventional processing Eligible for BC Pine Beetle exploration refund High-grade underground narrow-vein mining Small footprint No acid rock drainage Fully installed exploration camps Located In Stable Jurisdiction 90km SSW of Williams Lake Road Access Excellent proximity to highways, railways and landing strips Blackdome Gold Mine Elizabeth Gold Deposit 13

14 Mineral Tenures Blackdome Two mining leases 10 Crown granted claims 50 Mineral claims 196 sq. km. No royalties Elizabeth Four Crown granted claims 25 Mineral claims 124 sq. km. Two option agreements (2002): Elizabeth Crown Grants 4% NSR, 2% purchasable Blue Claim 3% NSR, 2% purchasable Remaining claims held by Sona, no royalties 14

15 2010 Exploration and Infrastructure Elizabeth Surface drilling 25 holes totalling 3,779 metres Underground New Southwest portal Rehab Upper portal West Vein sampling in Upper Portal Surface Sampling Outcrop sampling of West, Southwest and No. 9 veins 25-man camp installed 0.5 km to be constructed 5.0 km to be upgraded 3.5 km to be constructed Blackdome-Elizabeth Haul Road 7km access road from Yalakom FSR upgraded to legal haul road 7.0 km completed in

16 Geology and Mineralization Blackdome low-sulphidation epithermal deposit Ore as electrum (Au and Ag), quartz veins hosted in shear zones Elizabeth low-sulphidation mesothermal deposit Gold hosted in quartz carbonate veins High-grade gold mineralization 2010 Elizabeth drill highlights * Hole E10-52: 134.5g Au/t over 0.9m Hole E10-55: 12.5g Au/t over 2.5m Hole E10-59: 31.2g Au/t over 0.8m Hole E10-67: 96.4g Au/t over 2.5m Hole E10-69: 77.9g Au/t over 5.3m * Core lengths Visible gold in drill core sample 16

17 Planned Production Based on Preliminary Economic Assessment (Micon International, June 2010) Permit via BC Mines Act Commence production Q Initial milling rate of 200 tpd 24,000 oz. Au/yr. initial production Increase milling rate to 300 tpd (requires discovery and development of additional resources from Blackdome) Aggressive exploration to increase resources The potential quantity and grade of the material over and above the known mineral resources for both the Blackdome and Elizabeth properties are considered to be conceptual in nature and there is insufficient exploration to define additional mineral resources and it is uncertain whether further exploration will result In the target being delineated as a mineral resource. 17

18 Preliminary Economic Assessment Q start-up Eight-year mine life Milling throughput of 200 tonnes per day or 73,000 tonnes per year $21 million capital cost Price assumption of $950/oz. Au and $15/oz. Ag Production costs of $686/oz. Au or $208/tonne Diluted resources of 605, g Au/t containing 202,400 oz. Au Truck ore from Elizabeth to Blackdome mill Mill feed from Blackdome (one year) and Elizabeth (eight years) Gravity and flotation circuits Recoveries of 93% Au and 78% Ag Produce 24,000 oz. Au/year Note: A Preliminary Economic Assessment is preliminary in nature and includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them to be categorized as mineral reserves, and there is no certainty that the preliminary assessment will be realized. 18

19 Revenue Projections Micon International Base Case Sensitivity of Base Case variable +15% to $1,093/oz Gold Gold price $950/oz Au $1,093/oz Au Recovered/Payable Gold eq. 183,600 oz (24,000/year) 183,600 oz (24,000/year) Gross Revenue $189 million $218 million EBITDA $57 million $85 million Capex $21 Million + $9 million sustaining $21 million + $9 million sustaining Direct Taxes $7 million $18 million Production Costs $208/tonne; $686/oz Au $223/tonne; $734/oz Au Pre-tax After-Tax Pre-tax After-Tax Cash Flow $27 million $20 million $54 million $36 million NPV 10% discount $11.5 million $7.8 million $28 million $19 million IRR 31% 26% 61% 51% Average CF/year $5 million $4 million $7 million $5 million Note: A Preliminary Economic Assessment is preliminary in nature and includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them to be categorized as mineral reserves, and there is no certainty that the preliminary assessment will be realized. 19

20 Cash Flow Sensitivity MICON BASE CASE $950 Gold price $27mm NPV Note: A Preliminary Economic Assessment is preliminary in nature and includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them to be categorized as mineral reserves, and there is no certainty that the preliminary assessment will be realized. 20

21 2011 Budget (as of July 1, 2011) $1,200,000 Corporate & Administration $915,000 Blackdome Gold Mine Camp modification Community relations Metallurgical testing 5,000 metres of surface diamond drilling $2,800,000 Elizabeth Gold Deposit Camp maintenance Metallurgical testing Resource study 400 metres of underground drifting 4,500 metres of underground diamond drilling 3,000 metres of surface diamond drilling $ 245,000 Capex $ 375,000 Contingency 5% $5,535,000 TOTAL 21

22 Estimated Timeline NEXT STEPS AND BEYOND Activity Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Road permit applications Road construction Elizabeth underground drilling Elizabeth underground drifting-raising Elizabeth surface drilling Blackdome surface drilling Elizabeth mining permits Blackdome mining lease update Resource & pre-feasibility study Production decision Financing Develop access & Stopes Construction Initiate production Note: A Preliminary Economic Assessment is preliminary in nature and includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them to be categorized as mineral reserves, and there is no certainty that the preliminary assessment will be realized. 22

23 Summary Near-term producer Mine management team in place Permitted milling facility resources Positive preliminary economic study $21 million capital cost High projected operating margins Q new resource report target Q pre-feasibility study Q production target Excellent infrastructure First Nations partnership BC Pine Beetle exploration refund 23

24 Management Team Nicholas Ferris B.A., Executive Chairman A graduate of McGill University, Mr. Ferris has worked for over 30 years at the executive level in finance and marketing. He has succeeded in building and promoting Sona Resources Corporation, and in fundraising for the Company, first as CEO and now executive chairman. He has a substantial background in capital markets, with Burns Fry, Bank of Montreal, and Lloyds Bank Canada, and gained extensive sales and marketing experience with the Canadian Home Income Plan. John P. Thompson M.Sc., P.Eng. President and CEO As a geologist and geological engineer, Mr. Thompson brings his wealth of mining and exploration expertise to Sona Resource Corporation along with a strong track-record of mine development and management. With 40 years of experience in the mining sector, he has served as a key member of executive management teams throughout the international minerals industry. Wayne Murton P.Eng., Project Manager Mr. Murton has 50 years experience in exploration and mining, most recently as a geological and mining consultant and president of J.W. Murton and Associates in Kelowna, B.C. As a registered geological engineer with the Association of Professional Engineers and Geoscientists of British Columbia, he has been active in the industry with both junior and major mining companies. Wayne Cahill C.G.A., CFO Mr. Cahill is a certified general accountant with Newport Group Chartered Accountants. He has worked with BDO Dunwoody and Evancic Perrault Robertson, Certified General Accountants, and has served as a director of the Chamber of Commerce in Coquitlam, BC. Phyllis Webstad, V.P. Community Relations Mrs. Webstad is a member of the Secwepemc (Shuswap) Nation and an esteemed member of the Canoe Creek lndian Band. As Sona Resources primary liaison in the Chilcotin Cariboo and Lillooet regions, she communicates with the local First Nations about the Company s corporate developments, and about business and employment opportunities in the areas surrounding its mining projects Magdalena Mocarski B.A., Corporate Communications A graduate of the University of British Columbia, Ms. Mocarski brings important language skills and sales experience to Sona. 24

25 Board of Directors Nicholas Ferris, Sona Resources, Vancouver John P. Thompson, M.Sc., P.Eng., Sona Resources, Toronto J.P. Schumacher, Lion Capital Group, Zug Mr. Schumacher brings a wealth of experience in the capital markets and corporate finance through his work with Marc Rich & Co. Holdings, CS First Boston Corporation, Credit Suisse, and Union Bank of Switzerland. He founded Lion Capital Group AG of Zurich, where he is a managing partner and chief executive officer. D Arcy Adam, Key West Ford, Vancouver A leader in British Columbia s automotive and equipment leasing industry, Mr. Adam possesses over 40 years of commercial financing expertise. Driff Cameron P.Geo., Geological Consultant, Toronto As a professional geologist, Mr. Cameron has over 30 years of international experience in exploration for precious and base metals, uranium and industrial minerals, and has a record of generating successful projects. He was formerly vice-president of exploration for High River Gold Mines Ltd., a junior gold producer with headquarters in Toronto. Michael Williams, Full Metal Minerals, Vancouver Mr. Williams is president and CEO of Full Metal Minerals and a director and adviser to several mineral exploration companies. He has built relationships with retail and institutional investors and has an extensive investment banking network. He has also provided public relations counsel to various sectors, including mining, manufacturing, financial services, hospitality, tourism, and government. John Anderson, Purple Fish Management, Vancouver A graduate of the University of Western Ontario, Mr. Anderson contributes his invaluable experience in the capital markets, corporate finance and public relations. 25

26 Corporate Information Issued and outstanding common shares 22,017,631 Warrants 4,817,400 Finders warrants 289,940 Incentive options 2,175,000 Fully diluted 29,299,971 Cash on hand $1,600,000 Legal Counsel Auditor Registrar McCullough O Connor Irwin LLP Morgan and Co. Computershare 26

27 SYS.V SONA Thank you! 27