Maverick Gold Project Advancing toward Gold Production in 2013

Transcription

1 Maverick Gold Project Advancing toward Gold Production in 2013 TSX-V: AIA October 2013

2 Forward-Looking Statements Some statements contained in this presentation are forward-looking and, therefore, involve uncertainties or risks that could cause actual results to differ materially. Such forward-looking statements include comments regarding mining and milling operations, mineral resource and reserve statements and exploration program performance. Factors that could cause actual results to differ materially include metal price volatility, economic and political events affecting metal supply and demand, fluctuations in mineralization grade, geological, technical, mining or processing problems, exploration programs and future results of exploration programs, future profitability and production. Historical resources in this presentation are historical estimates that predate NI and are not compliant with current definitions, and have not been verified by the company; consequently, they should not be relied on by investors. 2

3 The Auriga Gold Opportunity Near-term Objective Re-structure, finance and achieve gold production in late 2014 (+40,000 opa) Expand gold resources to +one million ounces Systematically reduce indebtedness through pay down and equity conversion Strategic Advantage = Superior Investment Opportunity Favourable mining jurisdiction in Manitoba with regional infrastructure Low $18 million capital requirement to resume production utilizing existing mine and mill infrastructure Existing permits and mining lease in place, NOA for open pit mining to be submitted in January 2013 Reduced risk open pit mine start-up Underexplored regional gold bearing geological environment Management experienced at discovery, resource expansion, development and operations Attractive valuation Enterprise Value/ounce vs Peer Companies Strong valuation of Price to Cash Flow Path to Production Property Acquisition November 2010 Initial NI Resource August 2011 PEA Open Pit/UG January 2012 Initial Nokomis Resource Update mine plan/detailed engineering Financing/ Initiate development Q1/2014 Production Q4/2014 3

4 Tonnage (tpd) Re-Focusing on Maverick Gold Project, Manitoba Re-start of Mining Operations Targeted for Late 2013 Historic Mine Development/Operations Operated from Jan -88 to Apr-89 by Pioneer Metals Produced 29k oz from from 370,000 tonnes 1987 Kilborn feasibility recommended 500 tpd mill: Capex: ~32 mln in 1987/88 Pioneer actually built mill with capacity of 1,000 tpd still in excellent condition today 6.9 km u/g drifting to a vertical depth of 130 m 1993 Kilborn feasibility: Resource: 524,376 ~7.6 g/t Au Reserve: 184, g/t Au Grade (g/t) Tonnage Grade Auriga Gold Development at Maverick Near-term gold production, with significant exploration upside 65 km from Flin Flon, 15 km from Sherridon Near operating gold and base metal mines, rail line and power infrastructure Positive PEA on open pit and U/G mining program Low capital cost - $18.1 million Production - 40,000 oz per yer NPV (pretax 5%): $95.4 Million (pretax 8%): $79.6 Million IRR (pretax) 84% Exploration targeting > 1 million ounces Initial NI , 174,000 ounces Indicated, 558,000 ounces ~ 5.8 g/t Au Resource still open at depth and along strike Nokomis Deposit not included in mine plan Numerous geophysical targets identified M Zone on West Limb of Puffy Fold Undervalued near-term gold production investment opportunity 4

5 Auriga Gold Capital Structure and Share Price Auriga Gold Corp. (AIA: TSX-V) Share data and cash position as of October 7, 2013 Shares Outstanding 65,781,336 Warrants and Options O/S 11,453,228 Fully Diluted 77,234,564 Market Capitalization $1.2 million AIA: TSX-V Share Price Cash Position (June 30/13) Debt <$0.1 million $1.1 million Options and Warrants No. of Warrants / Options Avg. Exercise Price Options 2,335,000 $0.25 Common share warrants 9,118,228 $0.44 Expiring b/w Jan 2014 February 2017 Significant Holders Ownership Pioneer Metals (Barrick Gold) ~7.5% Claude Resources Inc. ~5.5% Management and Directors ~4.0% Institutional Holdings 2.9% Xstrata Canada ~1.5% Source: tmx.com and Auriga Gold 5

6 Auriga Gold Management and Directors Finance, Development and Operational Expertise in Place Board of Directors Gorden Glenn, Interim President & CEO, Director Over 25 years experience in the financial industry as Investment Banker (TD Securities and Desjardins) and Research Analyst as well as various roles in mining companies evaluating economic and technical validity of mostly Canadian projects. Brian Robertson, P.Eng., Director Over 30 years experience in corporate management, exploration programs, project management, mine permitting, construction, development and operation as well as the evaluations or corporate acquisitions. James D.A. White, Director Mr. White is the Managing Partner of Baynes & White, a Toronto-based pension and benefits actuarial consulting firm. Chris Irwin, LL.M., Interim CFO, Director Mr. Irwin is President of Irwin Professional Corporation, a corporation providing legal services mainly to the natural resource sector. Consultants Bruce Mackie, M.Sc., P.Geo., Geological and Technical Advisor Mr. Mackie is a professional geologist, with over 35 years of mining industry experience in Canada and internationally. He has a proven exploration record, having managed several successful projects in uranium, gold and base metals in senior positions with Noranda, Hemlo Gold and North American Palladium. Mike Kernick, General Manager Mr. Kernick has over 30 years experience in underground and open pit mining operations, particularly in narrow vein gold mining. Formerly Mine Superintendent at the Lake Shore Gold, Bell Creek Mine, Underground Superintendent at Trelawney s Chester Mine and prior to that, Mine Manager at Liberty Mine s Redstone Mine. Eric Loch, PMP, Projects Manager Mr. Loch has over 20 years experience successfully building capital projects with understanding of project engineering and construction in the mining and industrial sectors. He has held senior project management positions with DeBeers and Rio Tinto. Experience in Discovery, Resource Expansion, Mine Development and Operations 6

7 Maverick Gold Project Existing Infrastructure - Past Au Production - Resource Expansion Potential Historic Au Production Produced 28,000 oz from Existing 1,000 tpd mill and provides start-up to production at reduced capital cost Existing portal and ramp to underground mine workings Limited exploration outside of known deposits Resource Expansion Potential > 1 M oz Gold Expand and upgrade gold resources at PL and Nokomis deposits by step out and infill drilling Bonanza grades at Nokomis m with g/t Au at Nokomis Numerous drilling targets outlined from VTEM survey along 20 km gold bearing horizon M Zone target 1.5 km anomaly Drill hole A3-48 in 2011 intersected g/t Au at depth of ~250m vertical No follow-up drilling 7

8 Maverick Gold Project PL Deposit Geology Surface Plan and Section A g/t Au and g/t Au A g/t Au A g/t Au A g/t Au, incl g/tau OPEN NI Resource Estimate (August 2011) 174,000 ounces Indicated, 558,000 ounces Inferred 8

9 Maverick Gold PL Deposit Surface Plan and Resource Model 1000 tpd Mill open open 1.5 km strike length, open on strike and to NE 3-D model looking W Underground workings Resources: Indicated Inferred PL Veins Portal/Ramp to U/G Mine open N 3-D model looking NW 9

10 Maverick Gold Project - Preliminary Economic Assessment PEA February based on August 2011 NI Resource Estimate Average Annual Production: Recoverable Gold 1 : Milling Rate: Mill Recovery: 90% Life of Mine: 7.5 years 45,000 oz/annum Au 348,000 recovered oz avg. of 5.8 g/t Au diluted 20.3% from open pits; 79.7% from u/g 750 tpd Total CAPEX: Average LOM cash cost: $18.1 M (incl. $3.02 m contingency) CAD$949/oz Gold price, operating cost, capital cost sensitivity 8% NPV Undiscounted Cash Flow (pretax) : $130.5 M Payback : 20 th month of processing ore NPV (pretax, 5%) 2 : $95.4 M (pretax, 8%) 2 : $79.6 M IRR (pretax): 84% 1. Initial Mine Plan in February 2012 PEA 2. Based on gold at USD$1400/oz 10

11 Maverick Gold Project - Preliminary Economic Assessment PEA February based on August 2011 NI Resource Estimate oz $1, oz $200,000, oz oz oz oz oz $1,200 $1,000 $800 $600 $400 $200 U/G Open Pit Operating Cost/oz Total Op+Sust Cost/oz oz oz oz oz oz $175,000,000 $150,000,000 $125,000,000 $100,000,000 $75,000,000 $50,000,000 $25,000,000 $0 $25,000,000 Ounces Recovered Cumulative Cash Flow at $1400 /oz Au Cumulative Cash Flow at $1600/oz Au oz $0 oz $50,000,000 Open pit cost anticipated at $650/oz excluding sustaining capital 20.3% of gold production from initial low-risk open pit production $949/oz average LOM operating cash cost including $77/oz sustaining capital $18.1 million Capex to production $130.5 million cumulative cash flow at $1400/oz Payback in 20 months 11

12 Recovered Ounces Maverick Gold Project PL Deposit Longitudinal Section Facing West Open Pits: Pit 1: 20,760 oz Pit 2: 4,950 oz Pit 3: 6,060 oz Pit 4/5: 37,740 oz Total Pits: 69,510 oz Underground Mining Areas: Area 1: 49,000 oz Area 2: 124,000 oz Area 3: 108,000 oz Area 4: 23,000 oz Total Undergound: 304,000 oz Pit 1 Pit 1 Pit 2 Pit 3 AREA 1 AREA 2 Pit 4/5 AREA 3 AREA 4 Longitudinal section looking west showing existing underground workings, proposed open pits, and proposed stopes from all zones. Based on February 2012 PEA and August 2011, NI Resource Estimate 12

13 Puffy Deposit Mineralization May Be Amenable to Proven Ore Sorting Technology Schematic of typical ore sorting process to eliminate excess gangue from feed to mil High-tech sensors are utilized to identify objects on a conveyor belt Pit 1 High speed processing of information: material, shape, size, color, defect, damage and location of objects Precise sorting by air jets or mechanical fingers Pit 1 Pit 2 Pit 3 AREA 1 AREA 2 Pit 4/5 AREA 3 AREA 4 Sensor-based sorters can significantly reduce energy and water consumption per ton of ore to mill Upgraded ore to mill Excess gangue to waste pile Ore sorting has potential to reduce gangue going to mill and reduce overall costs 13

14 Maverick Gold Project Maverick Mill tpd 14

15 Maverick Project - Significant Resource Expansion Potential Targeting in excess of 1,000,000 ounces gold Well-defined major regional gold mineralized structure at the northern border of Flin Flon greenstone belt On-going drill program to expand resources Maverick Property covers over 20km of strike length Target has well-defined geophysics trend with several showings found along strike Initial PL Deposit NI Gold Resources of 174,000 oz Au Indicated and 558,000 oz Historical near surface resources at Nokomis, potential mill feed for Mill Drill hole A g/t Au PL Deposit and Onsite Mill Nokomis Deposit 68, g/t 15

16 Maverick Gold Project M Zone Significant Exploration Upside VTEM anomaly on western limb of the Puffy fold has strike length of over 1.5 km Historic drilling only tested horizon at very shallow depths, well up dip from the top of the conductor 2011 AIA drill hole successfully tested the down dip projection of horizon and intersected significant gold mineralization 23.7g/t over 0.5 m at 250 m Priority target for follow-up drilling in 2013/14 16

17 Maverick Gold - Nokomis Deposit 8 km Northeast from the Maverick Mill Potential open pit satellite deposit Confirmation drilling program complete, A.C.A. Howe engaged to complete NI report, expected in Q Initial high-grade gold intercepts g/t over 7.6 m (incl. 1,830 g/t over 0.5 m); g/t over 5.2 m; 5.1 g/t over 6.4 m; 9.65 g/t over 5.6 m (incl g/t over 0.5 m) High-grade near-surface mineralization 17

18 Maverick Gold Project Potential Gold Production Expansion 45,000 oz/yr >50,000 oz/yr + Resource Expansion ++ Extend Mine Life Combined U/G and open pit PEA Study 750 tpd 7.5 year mine life 348,000 recovered gold ounces Nokomis Deposit Historical Resource 68, g/t Au 8 km from Mine and Mill Open pit potential Targeting full mill capacity at 1000 tpd Exploration success on Maverick Gold B Zone Exploration Maverick Property covers 20 km of major regional mineralized structure Area consolidation Toll milling opportunities Resource expansion on major structure 18

19 Auriga Gold Summary Maverick Gold Project (100%) - Manitoba Near-term gold production, with excellent exploration upside Past producing property, with significant onsite infrastructure 1000 tpd mill, ancillary facilities, ramp and underground workings, road access to property, power and rail lines Positive PEA on U/G and open pit test mining on near surface resources CAPEX: $18.1 Million; un-discounted cash flow: $130 Million Management experienced at discovery, resource expansion, development and operations NI Resource Estimate: 174,000 ounces Indicated, 558,000 ounces Inferred Continued resource expansion and upgrade drilling at Nokomis and PL deposits Mokoman Copper Gold Property (100%) - Saskatchewan Non-Core Fox PGM-Ni-Cu Properties (75-100%) - Manitoba Non-Core Centrally located near existing mines and infrastructure in the Flin Flon Mining District, Manitoba 19

20 For more information: Auriga Gold Corp. A I A : T S X V 511, 2275 lake Shore Blvd. W. Toronto, ON AIA_AurigaGold AIA.AurigaGold 20

21 Maverick Gold Project Flin Flon Gold and VMS Base Metal Districts SHERRIDON MAVERICK GOLD PROJECT SNOW LAKE FLIN FLON CRANBERRY LAKE Strategically located in one of Manitoba s premier mining camps - access to people, infrastructure and GOLD - 21

22 Maverick Gold Project Mineral Resources - All Zones NI Resource Estimate - October 2011 Underground: 3,720,000 tonnes containing 690,000 oz Gold at a cut off grade of 2.5 g/t; and Open Pit: 320,000 tonnes containing 42,000 oz Gold at a 0.6 g/t cut off grade PL 2.5g/t cut off grade (underground model) Resource Category Tonnes Grade (g/t) In-situ Ozs Gold Indicated 702, ,000 Inferred 3,018, ,000 PL 0.60g/t cut off grade (open pit model) Historical Resources Resource Category Tonnes Grade (g/t) In-situ Ozs Gold Indicated 242, ,000 Inferred 78, ,000 Nokomis additional satellite resources (underground model) Resource Category Tonnes Grade (g/t) In-situ Ozs Gold Proven and Probable 349, ,523 * Historical resources in the presentation are historical estimates that predate NI and are not compliant with current definitions, have not been verified by the company and consequently should not be relied on by investors. The resource was estimated by Fred Brown, CPG, and Eugene Puritch, P.Eng. of P&E Mining Consultants Inc. Mr. Puritch and Mr. Brown are Qualified Persons ("QP s") as defined by NI Bruce Mackie, P.Geo., was QP for the Company s drill program and supervised the preparation of the scientific or technical information for the property. The contents of this press release has been reviewed and approved by Mr. Brown, Mr. Puritch and Mr. Mackie. An NI technical report supporting this resource estimate will be filed on SEDAR within 45 days of this press release. 22

23 MGP - Combined U/G and Open Pit Model from February 2012 PEA Open pit mining method and Conventional open pit mining costs by contractor Mining: $5.50/ tonne Definition drilling and grade control - $1.41 / tonne of Waste rock stripping - $4.50/ tonne waste rock Underground mining method Room and pillar (Slush blasted muck down 30 dip to sill drift) costs by Company personnel Ramp and ventilation raises - $3,000 / metre Mining and transport to mill - $106/ tonne milled Definition drilling and grade control - $2.97/ tonne milled Other costs Processing - $25/ t milled Tailings and water management - $1/t milled General and Administration $11.06 / t milled Underground mine indirect costs - $4.40 / t milled Mine closure - $1.3 M Total ore milled 2,039,000 t Mining recovery Surface 90%; U/G88% Average diluted head grade 5.8 g Au/t Mill throughput 750 tpd Mill recovery 90% Total estimated gold recovered 348,000 troy oz Au Gold price US$1,400/oz Au US$:CAD$ exchange rate US$1 = CAD$1.014 Gold royalty 3% Total gross revenue from gold sales $478M Pre-tax undiscounted cash flow $130M Pre-tax NPV(5%) $95M Pre-tax NPV(8%) $79M Pre-tax IRR 84% Pre-tax Payback 2.5 yrs

24 Non-core Projects to be Rationalized Mokoman Copper Gold Property (100%) - Saskatchewan 1,500 ha property with a historic resource of 6.0 million tonnes at 0.90% Cu and 0.18 g/t Au (Non NI ) Fox PGM-Ni-Cu Properties (75-100%) - Manitoba 58,000 ha with high potential for PGMs + Ni/Cu Great Falls zone with grab samples up to 5 g/t Pt-Pd+Au, 1.1% Ni and 2.3 % Cu 24