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

Transcription

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

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 Overview Near-term gold producer 15 months to production 100% ownership Permitted milling and tailings facility Excellent infrastructure complaint resources Deposits open to expansion Positive Preliminary Economic Assessment Est. $30 million Capex (Micon 2010) Initial eight-year mine life Production starting at 24,000 oz. Au/year Est. $686 cash cost per oz. Au Solid projected operating margins Low environmental impact Key mine management personnel in place First Nations partnership in place Eligible for B.C. Pine Beetle exploration refund Blackdome Gold Mine Elizabeth Gold Deposit 3

4 Location Map Blackdome-Elizabeth Gold Project 4

5 Mineral Claims 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 Milestones 15 months to production Year 1 Q3 - Install Blackdome camp Year 1 Q3 - Elizabeth underground bulk sample Year 1 Q4 - Start Blackdome Mill rehab. Year 2 Q1 - Commence haul road upgrade Year 2 Q1 - Blackdome underground rehab. Year 2 Q2 - Elizabeth resource report Year 2 Q3 - Elizabeth engineering study Year 2 Q3 - Elizabeth camp & site upgrade Year 2 Q3 - Commence Elizabeth development Year 2 Q3 - Commence Blackdome production Underground portal at Blackdome Year 3 Q2 - Commence Elizabeth production Camp Mineralized quartz vein at Elizabeth

8 Blackdome Gold Mine 1947 Discovered by prospector 1952 First underground drifting 1977 Acquisition by Blackdome Exploration 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 2011 work programs 6,547 oz. Au produced in 1999 Claims increased to 196 sq. km. Drilled 39 holes for 8,393 metres Tailings sampled, metallurgical analysis Resource estimate and economic study Facility on care and maintenance 8

9 Blackdome Gold Mine Mining Lease Tailings Pond Mill 9

10 Elizabeth Gold Deposit 1943 Crown granted claims staked 1947 Bralorne Mines options property 1948 Lower Adit crosscut and vein drifts 1950 No. 9 Adit crosscut and vein drifts 1955 Bethlehem Copper options property 1956 Upper Adit crosscut and vein drifts 1989 Blackdome Mining options property 1990 Upper and Lower adits sampled 2002 Sona options property 2002 to 2011 work programs Claims increased to 124 sq. km. Drilled 146 holes; 20,082 metres Rehabilitation of underground workings Resource estimation and economic study > $4 million spent 10

11 Elizabeth Gold Deposit No 9 Vein Portal Southwest Vein Portal Porphyry West Vein Upper Portal West Vein Lower Portal Camp 11

12 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 Main Vein Southwest Vein Portal Underground Program 2300m asl Crown Granted Claims * SRK (2009) 12

13 Blackdome - Elizabeth Gold Project Near-term gold producer Existing 300 tpd permitted milling facility High-grade underground narrow-vein mining Conventional gravity & flotation processing No acid rock drainage issues Fully installed exploration camps Small footprint Mine site 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 Resources Blackdome Gold Mine Tonnes Grade Au/t Contained Gold Indicated 1 144, g 52,600 oz. Inferred 1 90, g 25,900 oz. Tailings Inferred 2 298, g 14,145 oz. Elizabeth Gold Deposit Tonnes Grade Au/t Contained Gold Inferred 3 523, g 206,000 oz. 1 SRK Micon SRK 2009 Caution: Mineral resources are not mineral reserves and do not have economic viability 14

15 Mineral Tenures Blackdome Two mining leases 10 Crown granted claims 60 Mineral claims 224 sq. km. No royalties Elizabeth Four Crown granted claims 23 Mineral claims 96 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 15

16 First Nations 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 16

17 Exploration and Infrastructure Elizabeth Surface 45 drill holes; 6,961 metres Underground 35 drill holes; 4,173 metres New Southwest portal Rehab Upper portal West Vein sampling in Upper Portal 25-man camp installed 0.5 km to be constructed 5.0 km to be upgraded Blackdome Mill Blackdome Surface 15 drill holes; 3,176 metres Initial resource estimation 70-kilometre haul route 3.5 km to be constructed Blackdome-Elizabeth Haul Road 7km access road to be upgraded $200k reclamation bond in place 7.0 km upgrade (2010) Elizabeth 17

18 Geology and Mineralization Blackdome low-sulphidation epithermal deposit Ore as electrum (Au and Ag), quartz veins in shear zones hosted in adesite Elizabeth low-sulphidation mesothermal deposit Free gold in quartz carbonate veins hosted within feldspar porphyry. Elizabeth drill highlights * Hole E11-05: 28.1g Au/t over 1.5m 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 5.2m Blackdome drill highlights Hole BD11-08: 13.6g Au/t over 1.5m * Core lengths Visible gold in drill core sample 18

19 Planned Production Based on Preliminary Economic Assessment (Micon International, June 2010) Permit via BC Mines Act 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. 19

20 Preliminary Economic Assessment (Micon International) Eight-year mine life Milling throughput of 200 tonnes per day or 73,000 tonnes per year $30 million Capex 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. 20

21 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. 21

22 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. 22

23 Long-term Production Targets Double Blackdome milling rate to 600 tpd 1 Requires discovery and development of additional resources from Blackdome & Elizabeth Elizabeth potential 1-2 million tonnes grading 9-12g Au/t containing 260, ,000 oz Au Blackdome potential 250, ,000 tonnes grading 9-12g Au/t containing 70, ,000 oz Au Install contained cyanide leach circuit Tailings disposal via dry paste technology Mine contained gold from the tailings pond Permit via BC Environmental Review 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. 1 (see news release of April 18, 2011) 23

24 Summary Near-term gold producer 15 months to production 100% ownership Permitted milling and tailings facility Excellent infrastructure complaint resources Deposits open to expansion Positive Preliminary Economic Assessment Est. $30 million Capex (Micon 2010) Initial eight-year mine life Production starting at 24,000 oz. Au/year Est. $686 cash cost per oz. Au Solid projected operating margins Low environmental impact Key mine management personnel in place First Nations partnership in place Eligible for B.C. Pine Beetle exploration refund 24

25 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 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 25

26 Board of Directors Nicholas Ferris, Sona Resources, Vancouver John P. Thompson, M.Sc., P.Eng., Sona Resources, Toronto 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. Zhen Zhicheng, MBA, Vancouver A graduate of Peking University s MBA program, Mr. Zhen also holds degrees from Tsiunghua University and China Mining University. He has extensive experience in the mining sector of China s Shanxi province, and now serves as the president of Shanxi Lu an (China) Coal Equipment & Engineering Ltd., Shanxi Wangjiazhauang Mining Co. and Shanxi Lu an Mining Equipment Co. Ltd., and Lu an (Canada) Capital & Energy Investment Inc. 26

27 Corporate Information Issued and outstanding common shares 29,224,056 Warrants 2,907,499 Finders warrants 338,000 Incentive options 1,885,000 Fully diluted 34,354,555 Legal Counsel Auditor Registrar McCullough O Connor Irwin LLP Morgan and Co. Computershare 27

28 Corporate History 1990 Incorporation of Claimstaker Resources Ltd Acquisition of Blackdome Gold Mine 1998 Jipangu acquires 35% interest in Blackdome 1999 Blackdome production attempt 2000 Corporate restructuring 2001 Name change to J-Pacific Gold Inc., 2001 Jipangu increases Blackdome ownership to 50% 2002 Acquisition of Elizabeth Gold Property 2003 Acquisition of Jipangu interest in Blackdome 2007 Jipangu divestiture of J-Pacific holdings 2010 Name change to Sona Resources Corp. and 1-5 share consolidation 28

29 Corporate Structure SONA RESOURCES CORP. Montgolfier Project Quebec, Canada 100% ownership Mineral Creek Project BC., Canada 100% ownership (option) 100% CONTROLLED NO. 75 CORPORATE VENTURES INC. Blackdome-Elizabeth Gold Project B.C., Canada 100% ownership 29

30 Capital Structure SYS.V SONA Issued and Outstanding 29,224,056 # of Shares Exercise price Expiry date Employee Stock Options 190, , , , ,000 $0.60 $0.60 $0.60 $0.60 $0.60 November 16, 2019 December 1, 2019 December 11, 2019 January 19, 2021 October 26, 2022 Share Purchase Warrants 250,000 30, ,999 80,000 1,832, ,000 $0.90 $0.90 $0.50 or $0.60 $0.50 or $0.60 $0.50 or $0.60 $0.50 or $0.60 December 30, 2013 January 22, 2014 May 14, 2015 June 17, 2015 July 25, 2015 August 2, 2015 Finder s Warrants 4,800 40, ,200 $0.70 $0.30 $0.30 January 22, 2014 July 15, 2015 July 23, 2015 Fully Diluted 34,354,555 As of November

31 Financing History SYS.V SONA Date Proceeds Units Price Brokered Details NOTE: Jan 10, :1 share consolidation & name change to Sona Resources Corp. July 10 $1,225, mm $0.55 PP, No Full warrant $0.75 year 1 & $0.90 year 2 Oct 10 $500, mm $0.65 PP, No Full warrant $1.00 year 1 & $1.25 year 2 Dec 10 $2,667, mm FT $1.25 Stonecap ½ warrant $1.50 for 2 years Dec 10 $538, mm $1.10 Stonecap ½ warrant $1.50 for 2 years Jan 11 $360, mm $1.10 PP, No ½ warrant $1.50 for 2 years Feb 11 $257, mm $1.10 PP, No ½ warrant $1.50 for 2 years Nov 11 $600, mm $0.70 FT PP, No ½ warrant $0.85 year 1 & $1.00 year 2 Dec 11 $300, mm $0.60 PP, No ½ warrant $ years, accelerated exercise Jan 12 $36, mm $0.60 PP, No ½ warrant $ years, accelerated exercise May 14 $270, mm $0.30 PP, No ½ warrant $0.50 year 1 & $0.60 year 2 Jul 23 $1,099, mm $0.30 PP, No ½ warrant $0.50 year 1 & $0.60 year 2 Aug 2 $159, mm $0.30 PP, No ½ warrant $0.50 year 1 & $0.60 year 2 As of November,

32 SYS.V Thank you!