The Great Commodity Super-Cycle Through the Eyes of a Saskatchewan-based Junior Gold Producer 2011

Transcription

1 The Great Commodity Super-Cycle Through the Eyes of a Saskatchewan-based Junior Gold Producer 2011 $1,900/Oz 2014 $1,350/Oz 1

2 Cautionary Statement Cautionary Note Regarding Forward-Looking Information This document contains certain forward-looking statements relating but not limited to the Company s expectations, intentions, plans and beliefs. Forwardlooking information can often be identified by forward-looking words such as anticipate, believe, expect, goal, plan, intent, estimate, may and will or similar words suggesting future outcomes or other expectations, beliefs, plans, objectives, assumptions, intentions or statements about future events or performance. Forward-looking information may include reserve and resource estimates, estimates of future production, unit costs, costs of capital projects and timing of commencement of operations, and is based on current expectations that involve a number of business risks and uncertainties. Factors that could cause actual results to differ materially from any forward-looking statement include, but are not limited to, failure to establish estimated resources and reserves, the grade and recovery of mined ore varying from estimates, capital and operating costs varying significantly from estimates, delays in obtaining or failures to obtain required governmental, environmental or other project approvals, inflation, changes in exchange rates, fluctuations in commodity prices, delays in the development of projects and other factors. Forward-looking statements are subject to risks, uncertainties and other factors that could cause actual results to differ materially from expected results. Potential shareholders and prospective investors should be aware that these statements are subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those suggested by the forward-looking statements. Shareholders are cautioned not to place undue reliance on forward-looking information. By its nature, forward-looking information involves numerous assumptions, inherent risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, forecasts, projections and various future events will not occur. Claude Resources undertakes no obligation to update publicly or otherwise revise any forward-looking information whether as a result of new information, future events or other such factors which affect this information, except as required by law. Cautionary Note to U.S. Investors Concerning Resource Estimate The resource estimates in this document were prepared in accordance with National Instrument , adopted by the Canadian Securities Administrators. The requirements of National Instrument differ significantly from the requirements of the United States Securities and Exchange Commission (the SEC ). In this document, we use the terms measured, indicated and inferred resources. Although these terms are recognized and required in Canada, the SEC does not recognize them. The SEC permits U.S. mining companies, in their filings with the SEC, to disclose only those mineral deposits that constitute reserves. Under United States standards, mineralization may not be classified as a reserve unless the determination has been made that the mineralization could be economically and legally extracted at the time the determination is made. United States investors should not assume that all or any portion of a measured or indicated resource will ever be converted into reserves. Further, inferred resources have a great amount of uncertainty as to their existence and whether they can be mined economically or legally, and United States investors should not assume that inferred resources exist or can be legally or economically mined, or that they will ever be upgraded to a higher category. This document was prepared by management with the assistance of Deloitte Corporate Finance Inc. ( DCF ) based on information provided by the Company without independent verification thereof by DCF. The sole purpose of this document is to assist the reader in deciding whether to proceed with a further investigation and possible transaction with the Company or its assets. 2

3 Super-Cycle: Seized or Squandered? Aggressive Exploration Drilling Two Major Discoveries (L62/Santoy Gap) Infrastructure Investment 2011 Margin Optimization Corporate Culture Shift Exploration Prioritized $1,900/Oz 2014 Static Production & Resource Base Limited Exploration Increased Exploration Activity Discovery of Santoy Camp 2004 Exploration Focused at Santoy 7 & $869/Oz $1,350/Oz Today: Profitable mining and a focused exploration in a near-mine space 2000 $272/Oz 3

4 Exploration Strategy Start of the Au Bull Run Exploration was focused around the emerging Santoy camp and regional early-stage targets. Budgets and meterage focused on Santoy 7/8 Immature understanding of ore controls Decision made to intensify focus around the Santoy camp based on prospectivity. Budgets expanded & structural modeling completed Initial interesting drill intercepts from Santoy Gap Under an aggressive exploration program, Claude discovers two new deposits L62 at Seabee and Santoy Gap at Santoy. Distinct discovery holes completed within 3 months Recognition of a potential game-changer for Claude Peak of the Au Bull Run As the relevance of the Santoy Gap discovery became apparent there was a drive to expand the team to advance the project Maximum budgets, mapping & resource modeling Step-out conceptual spaced drilling hits high grade Gold cycle collapsed, the Exploration group shifted focus to working closely with the Seabee production group on near-mine targeting Budgets slashed & resource hand-over of the Santoy Gap Focused on a systematic approach to near-seabee targeting Groundwork for the next exploration push ( 2015) L62 Gap 4

5 Santoy Gap and L62 5

6 Gold oz ( 000s) Exploration Success Driving Resource Growth Understand the long term trend and where Claude is at present Seized Au-price opportunity to expand budgets in an underexplored camp Santoy Gap & L62 discoveries were major contributors to MRMR growth Revitalized a declining resource base Set the stage for production expansion and corporate profitability 1,400 1,200 1,000 Seabee Mineral Resources and Reserves 1.30 Moz 1.26 Moz Santoy Gap (P&P) 1.18 Moz Santoy Gap (M&I) Santoy Gap (Inf) Porky West (Inf) Global year over year changes in resource and reserves Driven by Au price, cut-off grade, drilling rates & mining depletion Koz 735 Koz 662 Koz Porky West (M&I) Porky Main (Inf) Porky Main (M&I) Gold price cycle inflated MRMR but in many cases decreased profitability Santoy 8 (P&P) 400 Santoy 8 (M&I) Santoy Gap & Santoy 8 are likely to grow in the future Focus in the near-term on near-mine Seabee targets 200 Santoy 8 (Inf) Seabee (P&P) Seabee (M&I) Seabee (Inf) 6

7 Production Oz/yr Impact on Production The boost in production and most notably grade has allowed Claude to break-out of our typical production range and achieve record production Santoy Gap and L62 key drivers of production increases year-over-year Guidance 61-64Koz Koz/year Static production YTD-Q YTD-Q3 7

8 Cash Cost/Oz (USD) Focus on Margins Cash Flow Optimization Plan: Decrease overall expenditures Reduced exploration expenditures and focus on near-mine targets No greenfield work Focus on grade & productivity Santoy Gap development ahead of schedule, ramping up to 500 tpd in 2015 New Alimak mining method improving margins at Seabee End result of these discoveries & initiatives is a material decrease in 2014 cash costs and all-in sustaining costs Very competitive compared with our peers Lower all-in sustaining costs than Goldcorp in 2014 Generating earnings Exploration successes during Au-cycle runup have materially impacted the resource base and allowed for profit generation, sustainability at current gold prices,..and a renewed exploration effort for $750/oz 8

9 2015 Exploration Near-mine Surface Targeting 9

10 2015 Exploration U/G Targeting Recognition that Seabee near-mine environment remains very prospective, underexplored and is a very low-cost environment to explore Targets were identified and ranked based on specific criteria 5 Specific ranking criteria (Structure, Economic Mineralization, Accessibility, Grade Potential & Structural Endowment) More than 20 target areas were developed and submitted to the mines group for review 2015 drilling to test the 8 highest priority UG targets with a drilling budget of ~$250K and meterage of 10k 1 st Pass Priority Targets 10

11 Wrap-up #1 Take Home for Claude: Seized the opportunity An aggressive attitude towards exploration and geological modelling allowed for timely discoveries to be made near the peak of the cycle The building blocks to success can be arranged during the slow times to ensure prosperity comes when commodities are in favour By putting these new deposits into production within 3 years of discovery, we were able to: Pay-down debt, Increase liquidity, Invest dollars back into the operation and now start to invest again in exploration We are well-positioned to provide shareholders with sustained growth in the undervalued junior gold space Although we can t predict Au price, we have proven ourselves very flexible and able to respond to the cycle 11

12 Claude Resources Inc. Creating the Capacity to Discover. Develop. Deliver. TSX: CRJ OTCQB: CLGRF 200, 219 Robin Cres. Saskatoon, Saskatchewan, S7L 6M8 Canada P F E: (1) See footnotes located on page 17 12