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Lion Gold PP3

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Page 1: Lion Gold PP3
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Standing on a River of Gold

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• IMPORTANT INFORMATION

• This presentation (“presentation”) is being issued by Lion Gold Brazil Corporation (the “company” or “LGBC”) for information purposes only. The content of this presentation has not been approved by an authorised person for the purposes of section 21(2)(b) of the financial services and markets act 2000. Reliance on this presentation for the purpose of engaging in any investment activity may expose an individual to a significant risk of losing all of the property or other assets invested.

• This presentation is not an admission document or an advertisement and is being provided for information purposes only and does not constitute or form part of, and should not be construed as, an offer or invitation to sell or any solicitation of any offer to purchase or subscribe for any ordinary shares of the company (“ordinary shares”) in the united states or any other jurisdiction. Neither this presentation, nor any part of it nor anything contained or referred to in it, nor the fact of its distribution, should form the basis of or be relied on in connection with or act as an inducement in relation to a decision to purchase or subscribe for or enter into any contract or make any other commitment whatsoever in relation to any ordinary shares. No representation or warranty, express or implied, is given by or on behalf of the company, their respective directors and affiliates or any other person as to the accuracy or completeness of the information or opinions contained in this presentation and no liability whatsoever is accepted by the company, their respective directors and affiliates or any other person for any loss howsoever arising, directly or indirectly, from any use of such information or opinions or otherwise arising in connection therewith.

• Certain statements, beliefs and opinions in this presentation are forward-looking, which reflect the company’s or, as appropriate, the company’s directors’ current expectations and projections about future events. By their nature, forward-looking statements involve a number of risks, uncertainties and assumptions that could cause actual results or events to differ materially from those expressed or implied by the forward-looking statements. These risks, uncertainties and assumptions could adversely affect the outcome and financial effects of the plans and events described herein. Forward-looking statements contained in this presentation regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. The company does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. You should not place undue reliance on forward-looking statements, which speak only as of the date of this presentation.

• In receiving any information relating to the company (whether in written or oral form), including the information in this presentation, you will be deemed to have represented and agreed for the benefit of the company and the other legal and financial advisers participating in this process (i) that you will only use such information for the purposes of discussions with the company, (ii) to hold such information in strict confidence and not to disclose it (or any discussions with the company) to any person, except as may be required by law, regulation or court order, (iii) not to reproduce or distribute, in whole or in part, (directly or indirectly) any of the information in this presentation; (iv) that you will comply with all laws applicable to possessing such information, including without limitation insider trading laws, market abuse regulations and applicable regulations and recommendations of the UK financial services authority or any other relevant regulator, and (v) that you are permitted, in accordance with all applicable laws, to receive such information.

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Lion Gold Brazil Corporation A New Player In Brazil With Three Exciting Gold Projects

THE VALUE PROPOSITIONThat with Lions Gold Brazil’s new method of mining, the Quad Mining Model , ROI should accrue from operations within six months. Proceeds from this revenue can allow the company to self sustain future operations. That aside from machinery purchases the company will carry no debt.

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Tapajos Province at the confluence of the Tapajos and Amazon Rivers

The Bum Jesus Project and The Agua Branca Project are located here

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The Heitoraí Gold ProjectA Traditional Mining Property To Be Developed

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Lion Gold Resources…the back story In one of great gold rushes of the twentieth century, in an project known as Serra Pelada, Brazilian artisanal miners or

garaimpeiros dug themselves out over a half a billion dollars of gold in a just a few short years. That is an estimated 30 million ounces of gold or more.

What makes garimpeiros different, or rather their mode of mining operation, is that they dug up all this gold using what is

deemed ‘hydraulic mining’. They mined alluvial deposits, or those left out where a fast flowing stream flattens, slows and spreads. As the stream’s gradient changes, it drops course-grained material, in this case, gold. As the miners dug deeper into the next layers of this soil alluvial, coluvial and primary deposits, they found even more gold.

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Where Are We Going With This And Why Brazil

•Major world producer of gold since 1760 when half of world’s gold came from Brazil•By 1988, after the gold rush of Serra Pelada Brazil now fifth largest producer of gold•Most of the gold from alluvial deposits in streams – which now LGBI will exploit again•$2T USD invested in Brazil in past four years•$62B USD in mining industry alone•$380B for infrastructure to support mining•Brazil ranked fourth best place for mining investments

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More Good News Because Brazil…

•Has implemented international standards and transparency implemented for mineral exploration•A stable political and fiscal situation•Has a strong and long-held mining culture•Has seen junior companies such as Lion Gold Brazil enter area long held by senior mining companies•Saw junior resource company TSX-V Brazilian Gold (BGC.V) achieve a $180M valuation last year•Saw this valuation based 11 active projects in Tapajos•Nine of these were discovered, negotiated and delivered to LBGC by Antonio DeCastro•Antonio De Castro Lion Gold Brazil’s new head geologist who’s savvy bodes well for LGBI•Now a senior company, Colossus Minerals (CSI-TO, $5.46 per share) has achieved a $700M valuation!

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Getting to the Gold Is HardTraditional Public Company Mining Requires

•Searching for properties and raising enormous capital through the markets to conduct R&D

•Negotiating an option to mine with the landowner then pledging the site to the company’s assets

•Conducting more geophysical research to help assess the size of the reserve gold there

•Issuing a press release to announce results

•Ensure site meet minimum requirements (0.5-1M oz per ton) for a project of this size

•Raising more capital to dig for the gold that SHOULD be there, usually a span of 8-10 years

Alluvial Mining On The Other Hand Allows

•Far lower start-up costs

•Revisiting, previously mined gold regions, still rich in known gold but at lower concentrations to (re) mine

•A company such as Lion Gold Brazil, through its proprietary technology to come in and (re)mine all this left over gold at much reduced costs ($300 per oz) that makes this type of mining not only feasible, but profitable, now

•A technology such as LGBI’s Quad Mining Model or QUAD, Lion Gold Brazil to be able to start mining these gold deposits within six months of funding and needs only $4M capital to get started

•Can self fund other projects through revenue accrued through this type of mining early on

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The Quad Mining Model

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THE QUAD MINING MODEL The removal of gold from alluvial deposits and mine tailings is problematic, these deposits sitting in the middle of the Amazon jungle.

• No easy access to traditional modes of transportation• No energy infrastructure for wide scale operations• A lack of educated manpower required to access and process the ore When the early deposits ran out, so did the alluvial deposits and mine tailings. Still rich in ore but far too expensive to mine any further

down. Taking a unique approach to gold mining using open pit mining (alluvial mining on a grander scale) the Quad Mining Model (QMM) is made up of four (mini) plant units.

• Built on a franchise model in that it accepts a percentage of mine proceeds as payment for use, each Quad can be expanded indefinitely and will produce an average of one ton of gold per year per Quad or in real dollars - $50M in annual revenue.

• A one time start-up cost of $4M will see the purchase of initial equipment and start-up of operations

• LGBI can immediately deploy a Quad, a mobile physical plant capable of processing 600 tons of soil per day for 25 days per month. • First one capable of processing 100 tons per day of primary vein material and operates 600 hours per month with four days reserved

for maintenance.• The second model will be a gravitation plant capable of processing 80 tons per hour and will process 40K tons of per month. • At 1.5 grams per ton of gold (at 75% recovery rate), this plant can recover up to 18 kilos of gold-per month. When one subtracts the

unusually low operating cost of 15% and the 10-20% royalty fees, this one plant can offer up to 14 kilos of gold per month

These old claims have no market value and owners are anxious to earn legal dollars in revenue

• Having identified several key sites the company is able to lease rather than purchase properties, as low as 10-20% of revenues or a flat monthly fee payable only during actual company operations

• Company has identified one such site with over 200K HA of mining claims• Leasing property significantly reduces another high cost of mining, liability insurance

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QUAD MINING CONTINUED•Each mining operation can be proven successful or not within the first 30 days of operation

•Logistically can quickly and easily decreasing the logistics of deployment and will speed expansion

•Operational costs significantly discounted to approximately 15% of gold production

•Employment drops significantly to 12 men, per quad, four per eight hour shift

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LION GOLD BRAZIL GOES TO BRAZIL WITH THREE KEY AREAS IDENTIFIED AND UNDER NEGOTIATION…

PARA STATE (TAPAJOS)

• The Agua Branca Project with 10,810ha identified

• The Bom Jesus Project with 39,735ha identified QUAD MODEL TO BE EMPLOYED

GOIÁS STATE

• The Heitorai Project with 2,000ha identified TRADITIONAL MINING MODEL TO BE EMPLOYED

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EXPLORATION MODEL FOR THE TAPAJÓS GOLD PROVINCE

1. Stockwork of stacked quartz-sulphide veins, large tonnage, low grade (~1 to 2 g/ton) with 0.5 to more than 2 Moz of Au; São Jorge and Tocantinzinho.

2. Single gold bearing quartz veins, sulphide rich and/or poor, medium tonnage and high grade (~6 to 8 g/ton) 0.5 to 1.5 Moz of Au; Palito Mine.

3. Epithermal gold in the extrusive felsic vulcanics, low to medium tonnage with very high grade (~10 to 12 g/ton) with 0.1 to 0.5 Moz of Au.

The known gold mineralized structures near the company leases are vertical to sub vertical.

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THE TWO TAPAJOS PROJECTS READY FOR ROLL OUT

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AGUA BRANCA PROJECT - LOCATION

1a. Two blocks of PLGs in the vicinities of Eldorado and Magellan current exploration leases, there is old workings for gold in the alluvial within the titles boundaries and primary gold mineralization reported on the titles close to the Agua Branca town, where Eldorado has an exploration office.

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AGUA BRANCA PROJECT - GEOLOGYTwo leases on the Parauari intrusive suite that hosts the main gold deposits in the region

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– Close to Novo Progresso city, 135 km west of it and accessible by a dirt road

– A highway, the BR-163 connecting Novo Progresso to Brasilia and Belem is in process of being paved

– Located on the southern portion of the Tapajós Gold Province,(southwest portion of Pará State

AM PA

MT

Manaus

Belém

Brasília

Rio de Janeiro

BOM JESUS PROJECT

BOM JESUS PROJECT - LOCATION

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1

23

4

BOM JESUS PROJECT - LEGAL STATUS

ID DNPM AREA (Ha) PHASE

1 850029/2011 9,863.78 Application

2 850030/2011 9,762.2 Application

3 850033/2011 9,764.2 Application

4 850032/2011 6,235.74 Application

TOTAL 39,734.9

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LGBI AT WORK IN GOAIS STATE

• Goias State, though not so well known as Tapajos, is still a major gold producer

• Most from the Crixas Gold Mine, now totally owned by Anglo

• Also from Chapada Cu-Au owned by Canadian Yamana Gold.

• Has become focus for other junior gold ventures such as Amarillo Gold through its Mara Rosa Project

Although not much historical exploration has been done given its logistics and infrastructure, LGBI’s Heitorai Project in the region is all the more attractive for deeper exploration and could allow for even a small to medium deposit for development.

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Heitoraí Gold Project Regional Geology

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Heitoraí Gold Project Soil Anomalous Trend

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Abraham R. Abergel– CEO 51 (Robert Abraham)

Mr. Abergel is an entrepreneur, with a background as ex commander, paratroopers’ officer (Israel). He brings to the table over eighteen years of savvy business consulting experience specifically in Brazil. With expertise in the areas of corporate finance, marketing and sales management, mining business brokerage and projects administration he is an ideal candidate to steer Lion Gold Brazil through its next growth spurt. He has vast experience in the Amazon, especially in the Tapajós Region where he has been leading mining expeditions as consultant to junior companies and private equity investors. He has also run his own gold exploration projects in the Amazon region. From that he has learned the practical aspects and the logistical challenges of this business from the ground up, starting from semi artisan operations, to highly mechanized explorations.

Applying innovative methods and self correcting procedures into the locating of gold ore, he is practised at optimizing project cost and maximizing production. Given Mr. Abergel’s experience in the areas of geological research, plant deployments, logistics, security, project management and administrative process in operating gold mines in remote areas has made him one of the most sought after mining consultants in Brazil. He is the soul and conscience of LGBI.

Antonio de Castro- Chief Geologist, 55 Mr. Castro is a geologist with 30 years of exploration and mining experience in most of the mining sector from for gold and

copper to nickel, iron and phosphate. Working in both Brazil and Australia, he worked for Western Mining for 19 years and since then has continued in his field as consultant geologist to several junior exploration companies. He was the main instrument on building up the Minfer & Regent´s exploration portfolio (the latest was acquired by the aforementioned Brazilian Gold Corporation). As well, he is a Member of AusIMM (Australasian Institute of Mining and Metallurgy).

Mr. De Castro’s hands-on experience in running mining projects, administration of costs and production, intimate know-how of the Brazilian region and its players, has made him a most valuable asset to the company. His highly honed skill at analyzing mining projects, at finding their hidden flaws (and exposing them), has made him a successful negotiator who knows how to pick the right deal and negotiate fair and just terms for the benefit of all involved.

THE MANAGEMENT

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THERE’S MORE

Since the QMM is essentially self-funding from the start of operations LGBI expects the key expansion into Phase II of the initial project at the 6-12 month level. At that time three more QMM will be deployed near the existing QMM, bringing the production rate of gold up to 55 kilos per month. But why stop there? Using the QMM makes the project adaptable and will continue, through continuous expansion WITHOUT any additional financing through outside sources.

The Quad model (1 plant then 3 more plants) will continue to be used not only because it is self-financing but it has proven to

be an efficient balance in the administration of several field projects under one logistics umbrella. Through careful planning and administration it is deemed feasible for LGBI to deploy Quads in other areas that have been

identified with the long term objective of placing 10 Quads or 500 kilos per month within the range of three years. Within five years the company expects to have 30 Quads operational and be producing 1500 kilos of gold per month. Using this multi-site model ensures that LGBI could easily be bootstrapped into a billion dollar business in the 4-5 years after start of operations.

If the project nets just 60 kilos per month or 720 kilos per year (24,000 ounces after operating costs and leases are deducted) then the company’s revenues – before taxes will be approximately $38M per year!

Final consideration of this type of production is twofold. First of all, this Quad method actually safer then the traditional

process because of the "prequalification phase". It cost far less to prequalify a tailings property because there is no rock drilling. A two man crew with a geologist can do the sampling by hand using a manual drill and bore down to 6 meters deep only in a soft ore. This process gives the company a very good idea of the size of the reserve in advance and "an immediate gratification" by going to production first. No huge, messy and dangerous drilling program beforehand. And no mess left behind. The company has a forest recuperation program in place and ready to go once a project has been exhausted of gold.

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