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Discovery and Development of High Grade Gold-Silver Projects in Argentina
June 2012
1
Cautionary Note to U.S. Investors – The United States Securities and Exchange Commission (“SEC”) permits mining companies in their filings with the SEC to disclose only those mineral deposits that a company can economically and legally extract or produce. We use certain terms in this presentation, such as “inferred resource”, that the SEC guidelines strictly prohibit us from including in our filing with the SEC. U.S. investors are urged to consider closely the disclosure contained in our Management Discussion and Analysis for the quarter ended March 31, 2010 filed on SEDAR and available at www.sedar.com.
This document and the information contained in it do not constitute a prospectus and do not form any part of an offer of, or invitation to apply for, securities in any jurisdiction. Potential investors should no rely solely on the information contained herein prior to making any investment decision. Investors should seek independent advice from a qualified finance and investment advisor, giving due regard to their own personal circumstances, prior to forming any investment decision
Safe Harbor Statement - This presentation may contain certain “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995. These statements reflect our current belief and are based upon currently available information. Actual results could differ materially from those described in this presentation as a result of numerous factors, some of which are outside of the control of Extorre Gold Mines Limited.
Many of the assay results presented are preliminary and may not be accurate due to various factors, including but not limited to sample recoveries, true widths and interpretations.
Preliminary Economic Assessment (PEA) – The Cerro Moro PEA is by definition preliminary in nature as it includes some mineral resources that are too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as reserves at this time. As such there is no certainty that the preliminary assessment and project economics will be realized. A NI 43-101 Technical Report for the Cerro Moro PEA has been filed on SEDAR (www.sedar.com) and is posted on the Company’s website at www.extorre.com
Cautionary Statement2
Capital Structure –June 1, 2012
3
Shares 96.9 MWarrants 0.12 MOptions 9.52 MFully Diluted 106.56 M
Management / Insiders 15%Institutions 60%Retail 25%Cash $27 M
October 1, 2010
• Environmental Impact Assessment approved for 750 tons/day
• 2014 start-up scheduled
Staged Start-Up of PEA-3 plans shows potential for:
• US$120 million CAPEX
• Average annual production for first 5 years of 190,000 ounces gold equivalent*
• Reduced cash costs
Highlights –Flagship Cerro Moro4
* Gold equivalent ounces – calculated by dividing the silver ounces by 50 and adding it to the gold value,
**Cash Costs are for “mine site” and exclude refining and royalty costs. Total Cash Costs with refining/royalty are $453 per ounce gold equivalent*
An Experienced Management Team
Yale Simpson
Co-Chairman
Bryce Roxburgh Co-Chairman
Rob Reynolds Director
Ignacio Celorrio Director
Eric Roth Director
James Strauss Director
George Lawton Director
A Strong Board C.E.O. Trevor Mulroney Mng. Engineer- 25 yrs
Exploration
Matt Williams – Exploration Manager Geologist - 17 yr
Fernando Chacon – Project Manager Geologist - 8 yr
Development Alberto Carlocchia – Country Mgr, Argentina Lawyer - 13 yrs
Gonzalo Damond – Commercial Manager Engineer – 17 yrs
Victor Vera – Mine Development Superintend. Engineer – 15 yr
Corporate Darcy Daubaras – Chief Financial Officer Chart. Acc’t. - 14 yr
Cecil Bond – Vice President Finance Chart. Acc’t. - 20 yr
Louis Montpellier – Senior Vice Pres. & Legal Lawyer - 30 yr
Marina Katusa – Vice Pres. Corp. Development Geologist, MBA
Rob Grey – Vice Pres. Corp. Communications IR - 7yr
5
Extorre Project Locations
1.36 million indicated + 1.05 million inferred ounces Au Eq*
6
*Gold equivalent grade is calculated by dividing the silver assay result by 50, adding it to the gold value and assuming 100% metallurgical recovery. Important: See slide 10 for full resource grades and tonnes.
Santa Cruz Exploration Targets
PUNTUDO
FALCON
Cerro Negro
San Jose
Mina Martha
Manantial Espejo
Cerro Vanguardia
Dos Calandrias
UNION DOMES
100% EXTORRE LANDS
FOMICRUZ 80/20% JV AGREEMENTFAVORABLE VOLCANIC ROCKS
Cerro Moro
MINE/ADVANCED PROJECT
RECENT DRILLINGDon Nicolas
VERDE
7
Project Location
Pro-mining Santa Cruz Province
90 km road to a deep water port
Population of Puerto Deseado 20,000
Site is 80 km from grid power
EIA approved, connection permits in progress
8
CERRO MORO
9
Argentine President Visits the Cerro Vanguardia Mine in Support
In March 2012 Cristina Kirchner visited the Cerro Vanguardia mine, operated by Anglogold and located in the Santa Cruz Province 120 km from Cerro Moro.
Cerro Moro Resource – November 2011National Instrument 43-101 Compliant Resource Estimate, by Cube Consulting
An Exceptional Gold & Silver Deposit
* Note: Gold equivalent grade is calculated by dividing the silver assay result by 50, adding it to the gold value and assuming 100% metallurgical recovery.
Indicated Mineral Resources
Inferred Mineral Resources
Indicated and Inferred resources shown above utilise a 1.0 g/t gold equivalent* cut-off
10
Cerro Moro – Resource LocationAreas included in the Cube November 2011 Resource Estimate
Mapped/Interpreted Veins
Drill hole collars as at Sep 2011
11
Cerro Moro Mine Development Program
12
GR Engineering is a leading engineering consulting and contracting company that
specializes in providing high quality process engineering design and construction services to the mining and mineral
processing industries.
13
Preliminary Economic Assessment (PEA-3)
Cautionary Note: The Cerro Moro Preliminary Economic Assessment (PEA) is by definition preliminary in nature as it includes some mineral resources that are too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as reserves at this time. As such there is no certainty that the project economics will be realized.*Gold equivalent grade is calculated by dividing the silver assay result by 50, adding it to the gold value and assuming 100% metallurgical recovery. **Cash Costs are for “mine site” and exclude refining and royalty costs. Total Cash Costs with refining/royalty are $453 per ounce gold equivalent*
Project Parameters Summary (Updated Study Released April 2012)Mine Life 9 yearsThroughput 1,300 tonnes per day
Average Annual Production (Years 1 to 5) 248,000 ounces gold equivalent*(123,125 oz. gold + of 6.25 Moz. silver)
Total Ounces Recovered 1.79 million ounces gold equivalent* (848,000 oz. gold + 47.29 Moz. silver)
Initial Project CAPEX Direct: $US 207.3M + $US 39.6M VAT (VAT recoverable) Indirect: $US 37.2M (EPCM contract, owners’ costs, commissioning)
Cash Costs $US 303 /ounce gold equivalent* (first 5 years)Financial Summary
Payback Period (5% discount) 24 monthsPre-tax IRR 63%After tax IRR 47%Pre-tax NPV (5% discount) $US 737.4 millionAfter Tax NPV (5% discount) $US 463 millionMetal Prices $US 1320/oz. gold, $US 26/oz. silver
Cerro Moro Production Profile (1300 tons/day)
Production Year
Gold (eq. oz)Gold (oz)
Y1 Y2 Y3 Y3 Y5 Y6 Y7 Y8 Y90
50
100
150
200
250
300
123 126 137121 119
93 10479
45
128 127 116 137
106
76 61
50
47
Silver (Oz. in Gold Eq) Gold (Oz.)
Annu
al P
rodu
ction
('0
00 G
old
Equi
vale
nt O
unce
s) 251253 253 258
169
129
91
225
165
Potential From New High-Grade Discoveries…
14
A potential staged mining approach to PEA-3 suggest an initial mine CAPEX of approximately US$124 million with open pit mining only in Stage 1 at 500-600 tpd.
Production/Cost Estimate for Stage 1 (500-600tpd):
Staged Mine Startup15
Estimated RangeInitial Annual Production (Gold Equivalent* Ounces) 170,000 180,000Initial Capital Expenditure (Excludes Recoverable Taxes) US$ 110 million US$ 120 millionApproximate Recoverable Taxes US$ 14 million US$ 16 millionInitial Operating Costs (Excludes Royalties and Export Tax) US$ 200 per recoverable gold eqv.* ozPotential Free Cash Flow (Before Royalties and Taxes) US$ 190 million US$ 200 million
Stage 2 expansion underground would begin after 18 months with the aim to reach PEA-3 levels of 1,000 to 1,100 tpd approximately 36 months after initial construction.
Cautionary Note: The Cerro Moro Preliminary Economic Assessment (PEA) is by definition preliminary in nature as it includes some mineral resources that are too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as reserves at this time. As such there is no certainty that the project economics will be realized.*Gold equivalent grade is calculated by dividing the silver assay result by 50, adding it to the gold value and assuming 100% metallurgical recovery. ** Costs are for “mine site” and exclude refining and royalty costs.
Cerro Moro Production Profile (Staged Approach)
Production Year
Potential From New High-Grade Discoveries…
16An
nual
Pro
ducti
on('0
00 G
old
Equi
vale
nt O
unce
s)
17
Carla Open Pit
Zoe Open Pit -UG
Debora Open Pit
Process Plant
Loma Open Pit
Escondida Open Pit- UG
Escondida FW Open Pit- UG
GabrielaOpen Pit- UGEsperanza- Nini Open Pit
Martina-UG
N
1000m
Conceptual Mine Development
Conceptual Open Pit Layout
Escondida FW Open Pit- UG
Escondida Open Pit- UG
Loma Open Pit
N
Cerro Moro Mine DesignCombination of Open Pit and Underground Mining
18
Loma Escondida
Escondida West-Central
Open Pits
Underground Mines
Escondida Underground Layout
19
Decline – Escondida Far West 5 m (Width) x 4.5 m (Height). 2,325 m Length. First ore panels
accessible after 1,200 m of development.
Commence: mid 2012. Total development time: 22 months.
Cerro Moro – Conceptual Plant Design
BALL MILLMINE
LEACH
CRUSHER PUMP
CYCLONE
FLASHFLOTATION
GRAVITYh.g. concentrate
h.g. concentrate
Merrill-Crowe
GOLDROOM
CERRO MORO –LEACHING FLOWSHEET
1.
2.
1. Stage 1: 500-600 ton/day (months 1 to 36)
2. Stage 2: 1000 – 1100 ton/day (as per PEA-3)
Modular Design to Accommodate Potential Future Expansions
Gold & Silver RecoveriesHigh gold and silver recoveries (95% and 93%, respectively) are achievable via
a combination of flash flotation, gravity separation, and leaching
21
For more detailed information on metallurgy please view company technical reports filed on Sedar
ECF ECO EE GAB EW ESP ESP-SE Loma ZS ZD0
102030405060708090
100GOLD
Float tail leachFloat con leachIC leach
% E
XT
RA
CT
ION
ECF ECO EE GAB EW ESP ESP-SE Loma ZS ZD0
102030405060708090
100SILVER
Float tail leachFloat con leachIC leach
% E
XT
RA
CT
ION
Excellent Resource Expansion Potential
A Strategic Land Position 1600km2
The Cerro Moro Vein Field (95% XG)Continued resource growth from extensions of existing veins,
plus many new drill ready veins
Don Sixto (100% XG)Potential beyond existing gold resource
Puntudo Project – Santa Cruz (100% XG)6 silver/gold exploration targets
Other Regional Targets – Santa Cruz (100% XG)Falcon, Ventana, Verde, Azul
The Fomicruz Joint Venture (XG Earning 80%)Escondida Extensions, Union Domes
22
Cerro Moro Drill Hole Location Map
ESCONDIDA
ZOE
Extorre 14,000 hectare Estancia/ranch
purchase (green)
5 kilometres
3.0 mile
Cerro Moro tenement outline
Fo
mic
ruz
JV t
enem
ent
ou
tlin
e
23
Fault Zones
Drill Holes
5 kilometres
3.0 miles
1. Zoe2. Zoe East3. Belen NE4. Martina5. Mosquito Feeder target6. Michele7. Romina8. Tres Lomas NW9. Esperanza & Nini Extensions10. Gabriela Extensions11. Carlita, & Carlita to Deborah12. Escondida West Extension13. Escondida Far East Deeps14. Fomicruz Escondida Deeps15. Loma Escondida East16. Deborah Parallel17. Esperanza Parallel18. Agostina19. Deborah NE20. Carla to Zoe21. Esperanza to Carla22. Carla Deeps23. Loma Escondida West24. Natalia25. Silica Ridges26. Georgina27. Lechuzo28. Lucia29. Deborah Termination Structure30. Carolene
24PRIORITY EXPLORATION
TARGETS
Ground Magnetics Leads to New Discoveries
Over 30 veins identified to
date.
Detailed magnetic data
shows the veins
Drilling on new veins underway
Priority is to
discover high-grade, near
surface veins
Black lines = mapped veinsWhite lines = exploration target
ESCONDIDA
5 km
25
Blue lines: Interpreted Faults
Red lines: Mapped Veins
N
Perspective Projection of Nov 2011 Block ModelsGeneralized View Looking North
Scale: 2 km x 2 km GridAuEQ50 g/t
GABRIELA
MARTINA
ZOE
ESPERANZANINI
ESCONDIDA
CARLA
26
Mineralization Open to Depth - Long Sections
MA
RT
INA
ZOE
320 metres
Fomicruz Far West West Central Far East Martina
ESCONDIDA
320 metres
GABRIELA
320 metres
Current depths from surface to
significant mineralization
Far West 270 mCentral 220 mMartina 290 mGabriela 320 mZoe 360 m
27
Location of new significant drill hole.
Cerro Moro Project – Zoe Discovery
Escondida Structure
Martina
CarlitaCarla
N
1 kilometre
0.5 mile
ZOE
No significant result Existing holes
In progress/awaiting results
Fomicruz Far West West Central Far East Martina Zoe
400 m
ESCONDIDA – ZOE LONG SECTION KEY 1.0 km
28
Regional Exploration TargetsFalcon, Puntudo…
PUNTUDO
FALCON
Cerro Negro)
San Jose
Mina Martha
Manantial Espejo
Cerro Vanguardia
Dos Calandrias
UNION DOMES
100% EXTORRE LANDS
FOMICRUZ 80/20% JV AGREEMENTFAVORABLE VOLCANIC ROCKS
Cerro Moro
MINE/ADVANCED PROJECT
RECENT DRILLINGDon Nicolas
VERDE
29
La NegraApproximate
locationLa MorochaApproximate
location
JOAQUIN PROJECTCOEUR - MIRASOL
PUNTUDO PROJECT100 % EXTORRE
Joaquin ResourceIndicated: 19.6 million Oz Ag @ 85 g/tInferred: 47.9 million Oz Ag @ 108 g/t
(May 9, 2011 Mirasol news release)
Drill HolesIn recent releasePreviously reported
RD0011
Property Boundary Property Boundary
La MorochaSE extension
La NegraSE extension
North
RD0016RD0008RD0013
RD0038
RD0017
RD0019RD0029
RD0024RD0025
RD0026
RD0028RD0021
RD0037RD0023
RD0022RD0035
RD0034
RD0036 RD0016
RD0033
RD0014RD0012
RD0027RD0020A
RD0031
0 250 500 meters
Puntudo Silver Target –South of Joaquin Discovery 30
LAG Sampling
Gold
> 1.0 g/t
0.5 to 1.0 g/t
0.2 to 0.5 g/t
< 0.2 g/t
Drill collar
Hole - m - Au - Ag
Falcon Project –Wide Gold Intercepts
200 metres
FD004 - 53 - 1.33 - 30
FD001 – 30 – 1.33 - 6
FD005 - 30 – 0.53 – 33
- 27 – 0.73 - 10
FD002 – 56 – 0.81 - 12
FD003 – No significant result
Resistivity high
North
High
Low
20
O
h
m
.
m
10
31
Resistivity
Cerro Moro continued drilling announcements every 2 months - new discoveries
Updated PEA-3 completed, evaluation of staged development ongoing which could reduce CAPEX significantly
Evaluating financing options
Excellent potential for new discoveries at Falcon and Puntudo properties.
News Flow- 2012 32
Extorre in an Industry Context
33
34
Rainy R
iver
Sandsp
ring
Rubicon
Pretium
Prodigy
Continental
Kimber
PMI Gold
Seafi
eld
Aureus
Extorre
GoldTa
hoe
Colossus
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
80.00%
Pre-Tax IRR Comparison
IRR
(%)
Cerro Morro - Higher IRR than Most
35
NPV (M$)
Gold Price &
Discount Rate
Gold Price (US$/oz)
1,056 1,320 1,584
Discount
Rate
0.0%$ 545.4
M
$ 675.3
M
$ 805.2
M
5.0%$ 366.3
M
$ 463.2
M
$ 560.1
M
10.0%$ 246.0
M
$ 320.1
M
$ 394.2
M
IRR (%) 39% 47% 54%
NPV (M$)
Gold Price &
Operating Cost
Gold Price (US$/oz)
1,056 1,320 1,584
Opertain
g Cost
-20%$ 439.1
M
$ 537.0
M
$ 635.0
M
Base
Case
$ 366.3
M
$ 463.2
M
$ 560.1
M
+20%$ 325.1
M
$ 423.1
M
$ 521.1
M
NPV (M$)
Gold Price & Capital
Cost
Gold Price (US$/oz)
1,056 1,320 1,584
Capital
Cost
-20%$ 415.5
M
$ 512.4
M
$ 609.3
M
Base
Case
$ 366.3
M
$ 463.2
M
$ 560.1
M
+20%$ 319.0
M
$ 415.9
M
$ 512.8
M
Sensitivity – Gold Price and Operating Cost
Sensitivity – Gold Price and Capital Cost
Sensitivity – Gold Price and Capital Cost
Extorre & the Metals IndustryGOLD MARKET
Exploration expenditures are increasing yet fewer new resources are being discovered
New discoveries are replacing less than half the current production
Resources versus Gold Production 1997-2008
SILVER MARKETIndustrial silver demand is expected to
increase from 487million ounces silver in 2010 to 666million ounces in 2015
This demand could underpin strong silver prices
World Industrial Silver Demand Forecast
Source: MEG
36
Mining Analyst Coverage
Daniel [email protected] 308 7906
Adam Graf [email protected] 212-702-4527
Wendell [email protected] 643 7485
David [email protected]
Michael Gray [email protected] 604-639-6372
John Hayes [email protected]
Imaru Casanova [email protected]
37
“Cerro Moro is one of the highest quality gold-silver deposits to be discovered in
recent years”
Production is scheduled for 2014
38
www.extorre.com
Suite 1660, 999 West Hastings Street Vancouver, BC, Canada, V6C 2W2Toll Free: 1-888-688-9592 Telephone: 1-604-688-9592
