Trans-Canada Property Joint Venture

Transcription

1 Proven Management Proven Gold Districts Safe Jurisdictions Trans-Canada Property Joint Venture February 2015 Symbol: Exchange: PG TSX

2 DISCLAIMER This presentation may contain "forward looking information" within the meaning of Canadian securities legislation, which are based on the opinions and estimates of management and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward looking information. Such risks and uncertainties include, but are not limited to, risks associated with the mining industry, the risk of commodity price and foreign exchange rate fluctuations, the ability of Premier to fund the capital and operating expenses necessary to achieve the business objectives of Premier, the completion of the joint venture with Centerra Gold Inc., as well as those risks described in public disclosure documents filed by Premier. Due to the risks, uncertainties and assumptions inherent in forward-looking information, prospective investors in securities of Premier should not place undue reliance on these forwardlooking information. This presentation has been completed by Premier. Certain corporate projects referred to herein are subject to agreements with third parties who have not prepared, reviewed nor approved this presentation. The presentation is not intended to reflect the actual plans or exploration and development programs contemplated for such projects. The Preliminary Economic Assessments (PEA) discussed in this presentation is preliminary in nature, includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the preliminary economic assessment will be realized. Economic studies will need to be completed prior to accurate guidance being provided. Stephen McGibbon, P. Geo., (Executive VP Corporate and Project Development) is the Qualified Person for the information contained in this presentation and is a Qualified Person within the meaning of National Instrument For further information on the technical data provided in this presentation, including the key assumptions underlying the mineral resource herein, refer to the Sedar filings as listed below: Note Project/Property Company Date (1) Hardrock Mineral Resource Premier Gold Mines Limited August 22, 2014 (2) Trans-Canada PEA Premier Gold Mines Limited January 28, 2014 (3) Hardrock (Trans-Canada) Premier Gold Mines Limited December 13, 2013 (4) Trans-Canada Premier Gold Mines Limited February 1,

3 TRANS-CANADA JOINT VENTURE PARTNERSHIP TERMS A 50/50 partnership with CENTERRA GOLD INC. (TSX:CG) to jointly develop the Trans- Canada Property. Centerra will acquire a 50% interest in Trans-Canada by investing up to Cdn$300 million including cash payments to Premier, combined with solely funding completion of the feasibility study and initial development expenditures. 3

4 TRANS-CANADA JOINT VENTURE PARTNERSHIP TERMS Cash payment to Premier of $85 million at Closing. Additional payment to Premier, contingent on the results of an updated mineral resource estimate at Hardrock, of up to $30 million. Centerra will solely fund the remaining costs of the revised resource and feasibility study, and initial development expenditures up to $185 million. Thereafter, expenditures will be shared on a 50:50 basis. The partnership utilizes a structure whereby both partners will have equal representation; no casting vote is held by any one partner or person. The partnership is expected to reduce development risk through the association with a proven producer with strong mine development and operations experience. 4

5 TRANS-CANADA JOINT VENTURE BENEFITS TO PREMIER Centerra is a proven mine developer and operator, in a strong financial position and is lead by management with long-time experience living and working in Northwestern Ontario. Clarity on how Hardrock will be financed and advanced in a difficult market environment while also minimizing share dilution. Greater certainty on future development of Trans-Canada s remaining multi-million ounce assets such as Hardrock underground deposit, Brookbank and other nearby mineral resources. Transition from explorer to producer closer to reality. Eliminates Premier s near-term financing needs while providing the company with the ability to accelerate the advancement of the Company s other core projects in Red Lake and Nevada. 5

6 THE PREMIER DIFFERENCE THREE CORE PROJECTS IN NORTH AMERICA TRANS-CANADA PROPERTY Advancing Towards Production Multi-million ounce gold project located in Geraldton, Ontario, Canada Multiple deposits multiple development opportunities (Hardrock - Brookbank) Feasibility Study and final resource estimate update planned for 2015 Joint Venture with Centerra Gold provides clear funding path towards production McCOY-COVE PROPERTY Secures Development Pipeline 100%-owned property located in the heart of the prolific Battle Mountain - Eureka trend Large property package immediately south of the Phoenix Mine Multiple open pit and underground opportunities RAHILL-BONANZA PROJECT Joint Venture in the Heart of Red Lake Located adjacent to Goldcorp s Red Lake Gold Mine in Ontario Project covers several kilometres of the main Red Lake Mine Trend Underground drill program underway testing recently discovered structure 6

7 TRANS-CANADA PROPERTY OWNERSHIP: 50% Premier - 50% Centerra Open Pit and Underground Potential LOCATION: Geraldton, Ontario STATUS: - Resource Definition Drilling - Feasibility Study Underway - Permitting for Development PROJECT HIGHLIGHTS 4 Deposits in the heart of the Beardmore Geraldton Mining Camp PEA completed (Jan 2014) Upside offered by multi-million ounce underground resource, various open pit options and regional exploration CURRENT DEVELOPMENTS Final delineation drill program to be completed New open pit targets identified (BFW & Viper) Resource update and Feasibility Study planned for

8 TRANS-CANADA PROPERTY Comprised of 4 deposits significant gold mineral resources Longlac Nortoba Leitch/Sand River Brookbank Deposit Jellicoe Kailey Deposit Key Lake Deposit Geraldton 11 Bankfield West Target Hardrock Deposit Viper Project Beardmore District Scale Project Potential Long Lake N HARDROCK OPEN PIT DEPOSIT COG SENSITIVITY OF 2014 MINERAL RESOURCE ESTIMATE 8 Portion of Deposits Cut-off Increment (g/t) Resource Category Tonnes ( 000) Au Grade (g/t) Open Pit (O/P) 0.60 Indicated 69, ,725 Inferred 8, O/P 0.50 Indicated 83, ,973 Inferred 10, O/P 0.40 Indicated 103, ,254 Inferred 12, O/P 0.30 Indicated 131, ,568 * See Note 1 Inferred 15, Au Ounces ( 000) W:O (Strip) Ratio

9 HARDROCK PROJECT O/P UPSIDE CASES ADDITIONAL OPEN PIT OPTIONS IDENTIFIED Upside #2 Indicated Resources: g/t Ozs Au: 5.340M Upside #1 Indicated Resources: g/t Ozs Au: 4.716M 2014 Mineral Resource Estimate O/P Portion Indicated Resources: g/t Ozs Au: 3.972M Oct 2013 Resource O/P Shell Indicated Resources: g/t Ozs Au: 2.352M Inferred Resource: g/t Ozs Au: 2.055M Inferred Resource: g/t Ozs Au: 1.511M Inferred Resource: 1.53g/t Ozs Au: 0.501M Inferred Resource: g/t Ozs Au: 0.859M Au price (CAD): $1339/oz Depth: 790m Au price (CAD): $1133/oz Depth: 710m Au price (CAD): $953/oz Depth: 587m Au price (CAD): $1139/oz Depth: 469m Upside #2 (0.40 g/t cut-off) Indicated Resources: 140, g/t Ozs Au: 5.733M Inferred Resource: 51, g/t Ozs Au: 2.193M 2014 Mineral Resource Estimate option chosen based on managing development capital 500m 9 N * See Notes 1, 3

10 HARDROCK PROJECT 2014 PEA PRODUCTION METRICS 15 year mine life Total gold production: 3,041,000 ounces Strip ratio (W:O) = 4.38:1 Pre-production capex: $410.6 M (10,000 tpd mill) PEA baseline metrics Years 1-8 LOM (Years 1-12) without Stockpile LOM (Years 1-15) Average annual gold production (oz) 253, , ,700 Average mill feed grade (g/t Au) Average gold recoveries 90.0% 89.9% 89.6% Total Gold Recovered (oz) 2,025,100 2,786,000 3,041, FINANCIAL HIGHLIGHTS Pre-tax $1,050 US/oz $1,250 US/oz $1,450 US/oz IRR (%) 10.3% 23.0% 33.6% NPV5% (CA$M) $128 $519 $909 Payback (Years) After-tax $1,050 US/oz $1,250 US/oz $1,450 US/oz IRR (%) 8.2% 19.0% 27.7% NPV5% (CA$M) $72 $359 $633 Payback (Years) Exchange Rate CAN$1.00 = US$ 0.95 Please refer to the Disclaimer Page regarding the PEA and Note 2 Feasibility Study Underway Open Pit portion only UPCOMING 2015 FEASIBILITY STUDY Potential upside vs PEA assumptions New geotechnical study allows for steeper, less dilutive pit walls than used in PEA Grinding characteristics of ore may be amenable to lower cost HPGR vs SAG in PEA Cdn:US $ exchange ratio may materially improve versus PEA

11 HARDROCK PROJECT PROPOSED HARDROCK MINE SITE LAYOUT PROPOSED PROCESS FACILITY Plan View N 1 Km 11

12 HARDROCK PROJECT FUTURE UPSIDE - POTENTIAL UNDERGROUND OPPORTUNITY JAN 2014 PEA SHELL MM g/t Au over 20.5m Underground resources not included in PEA or Feasibility Study *See Note 1 and Underground Mineral Resource Estimate Category Tonnes (t) Grade (g/t) Ounces (oz/au) Indicated 5,169, ,000 Inferred 12,922, ,242,000 12

13 BROOKBANK PROJECT Satellite project - ore processed at Hardrock Average gold production: 1 km 48,700 ounces per year Open Pit years 1 to 3: N 502,800t at 2.31 g/t Au (diluted) Underground LOM years 2 to 7: 1,659,000 at 6.30 g/t Au (diluted) 7 year mine life Metallurgical recovery: 92% 2014 PEA PRODUCTION METRICS MILL Pre-Production Capital: CA$106.6 million Open Pit Average LOM Cash Cost: $620/oz (incl. royalties) Longitudinal Section View Looking North 13 Pre-tax $1,050 US/oz $1,250 US/oz $1,450 US/oz IRR (%) 14.4% 30.7% 43.6% Tailings Complex: NPV5% ~5 km (CA$M) $27 $76 $126 WASTE ROCK PILE Payback (Years) Exchange Rate CAN$1.00 = US$ 0.95 After-tax $1,050 US/oz $1,250 US/oz $1,450 US/oz IRR (%) 9.4% 24.7% 38.1% NPV5% (CA$M) $11 $52 $87 Payback (Years) Please refer to the Disclaimer Page regarding the PEA and Note 2 and 4

14 SUMMARY New Trans-Canada Joint Venture provides greater certainty for Hardrock mine development 50/50 ownership operated by jointly-owned operating company Premier will be well-funded to meet short, medium and several long-term goals with a treasury of approximately $120 Million JV may consider options for the development of other projects (Hardrock underground, Brookbank) Increased flexibility for Premier to advance Red Lake and Nevada properties 14

15 KEY CONTACTS: Ewan Downie (807) President & CEO Ebe Scherkus (416) Chairman Stephen McGibbon (613) Executive Vice President Corporate & Project Development Matthew Gollat (807) Corporate Development Investor Relations Shobana Thaya (416) IR & Corporate Communications A World of Opportunity - Premier Performance Premier Growth Premier Opportunity - Symbol: PG Exchange: TSX