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Lake Shore Gold Corp.
TSX & NYSE MKT : LSG
www.lsgold.com
Lake Shore Gold Corp.
At a Major Turning Point
Denver Gold Forum
September 22-25, 2013
2
Information included in this presentation relating to the Company's expected production levels, production growth, costs, cash flows, economic
returns, exploration activities, potential for increasing resources, project expenditures and business plans are "forward-looking statements" or
"forward-looking information" within the meaning of certain securities laws, including under the provisions of Canadian provincial securities laws
and under the United States Private Securities Litigation Reform Act of 1995 and are referred to herein as "forward-looking statements." The
Company does not intend, and does not assume any obligation, to update these forward-looking statements. These forward-looking statements
represent management's best judgment based on current facts and assumptions that management considers reasonable, including that operating
and capital plans will not be disrupted by issues such as mechanical failure, unavailability of parts, labour disturbances, interruption in
transportation or utilities, or adverse weather conditions, that there are no material unanticipated variations in budgeted costs, that contractors will
complete projects according to schedule, and that actual mineralization on properties will be consistent with models and will not be less than
identified mineral reserves. The Company makes no representation that reasonable business people in possession of the same information would
reach the same conclusions. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the
actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements
expressed or implied by the forward-looking statements. In particular, delays in development or mining and fluctuations in the price of gold or in
currency markets could prevent the Company from achieving its targets. Readers should not place undue reliance on forward-looking statements.
More information about risks and uncertainties affecting the Company and its business is available in the Company's most recent Annual
Information Form and other regulatory filings with the Canadian Securities Administrators, which are posted on sedar at www.sedar.com, or the
Company’s most recent Annual Report on Form 40-F and other regulatory filings with the Securities and Exchange Commission.
QUALITY CONTROL
Lake Shore Gold has a quality control program to ensure best practices in the sampling and analysis of drill core. A total of three Quality Control
samples consisting of 1 blank, 1 certified standard and 1 reject duplicate are inserted into groups of 20 drill core samples. The blanks and the
certified standards are checked to be within acceptable limits prior to being accepted into the GEMS SQL database. Routine assays have been
completed using a standard fire assay with a 30-gram aliquot. For samples that return a value greater than three grams per tonne gold on
exploration projects and greater than 10 gpt at the Timmins mine and Thunder Creek underground project, the remaining pulp is taken and fire
assayed with a gravimetric finish. Select zones with visible gold are typically tested by pulp metallic analysis on some projects. NQ size drill core is
saw cut and half the drill core is sampled in standard intervals. The remaining half of the core is stored in a secure location. The drill core is
transported in security-sealed bags for preparation at ALS Chemex Prep Lab located in Timmins, Ontario, and the pulps shipped to ALS Chemex
Assay Laboratory in Vancouver, B.C. ALS Chemex is an ISO 9001-2000 registered laboratory preparing for ISO 17025 certification.
QUALIFIED PERSON
Scientific and technical information contained in this presentation has been reviewed and approved by Dan Gagnon, P.Geo., Executive Vice-
President, Operations, and Natasha Vaz, P.Eng., Director of Technical Services & Project Evaluation, both of whom are employees of Lake Shore
Gold Corp., and “qualified persons” as defined by National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”).
Forward Looking Statements
(C$ Millions) as at June 30, 2013
Cash and cash equivalents 24.6
Total cash and bullion 28.1
Debt (including current portion of long term debt) 136.2
Total equity (including $14.7M equity portion of debentures) 657.1
3
Lake Shore Gold (TSX, NYSE MKT: LSG)
Debt (C$ Millions) Details
Loan note 27 21 remaining monthly cash payments equal to 947 oz/month at market
Standby line 35 9.75% compounded monthly, due Jan. 1, 2015
Convertible debentures 103 6.25%, paid semi-annually, due Sept. 30, 2017
Lake Shore Gold (TSX, NYSE MKT: LSG)
Shares outstanding (basic) 417 million
Share price (Sept 20, 2013) $0.365
Market capitalization $152 million
Enterprise Value $288 million
52 week High/Low $1.04/$0.16
0.0
0.2
0.4
0.6
0.8
1.0 LSG Share Price ($)
4
(1)
Timmins
101
11
11
66 Rouyn-Noranda
Kirkland
Lake
Timmins
Cochrane
Hoyle Pond
Goldcorp Bell Creek
Lake Shore Gold
Fenn-Gib
Lake Shore Gold
Gold River
Lake Shore Gold
Timmins West
Lake Shore Gold
O N TA R I O Q U E B E C
Casa Berardi
Hecla
Detour Lake
Detour
Val-d’Or
Canadian Malartic
Osisko
Casa Berardi JV
LSG/Aurizon Blakelock/Burntbush
Lake Shore Gold
Little Abitibi
Lake Shore Gold
Abitibi Greenstone Belt
Over 200M ozs Au of mined
and current resources
Favourable geology
Supportive government
policies
Good infrastructure
Highly skilled labour force
High safety & environmental
standards
Casa Berardi JV
LSG/Aurizon
Lake Shore Gold land position
Dome
Goldcorp
Pamour
Goldcorp
Hollinger
McIntyre
Located in One of the World’s Great Gold Districts
5
Dome
Hollinger
McIntyre
Hoyle
Pond
Destor Porcupine Fault
Pipestone Fault
Fenn-Gib M&I resources: 1.3M oz
Inferred resources: 0.8M oz
Pamour
Timmins
Timmins West Complex Reserves: 0.8M oz
M&I resources(1): 1.2M oz
Inferred resources: 1.6M oz
Bell Creek Complex Reserves: 0.1M oz
M&I resources(1): 0.9M oz
Inferred resources: 1.1M oz
Four Multi-Million Ounce Au Deposits in Timmins
(1) Resources inclusive of reserves. A review of tonnes
and grades is available in the Appendix
(2) Examples of Forward Looking Information
LSG – A Growing Gold Producer
Two operating mines with a central
milling facility
0.9M oz in reserves, with a large
resource base
2013(2):
On track for at least 40% production
growth (120-135,000 oz)
Cash costs of US$800-US$875/oz
Capital investment of $90M
6
Mining and milling capacity expanded to over 3,000 tpd
At over 3,000 tpd:
Production: +140,000 oz on annual basis
Cash operating costs(2): @US$700/oz
All-in sustaining costs(2): @US$1,000/oz
Capital expenditure requirements declining
(1) Examples of forward-looking information
(2) Examples of non-GAAP measures
LSG: At a Major Turning Point(1)
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
180,000
2012 2013 2014 2015 2016 2017
Production (Forecast) Range Cash Operating Costs All-In Sustaining Costs
7
Production to reach >140,000 oz by 2014
Strong Near-Term Production Growth(1)
Production
(oz)
Costs
US$/oz
(1) Examples of Forward Looking Statements
(2) Cash operating costs exclude royalties
At least 60%
growth
2012 to 2014
(2) (2) Production (Actual)
Record 6M production results
Gold production: 54,000 oz (30,800 in Q2)
Milled 2,370 tpd, average grade of 4.1 gpt (2,540 tpd @ 4.3
gpt in Q2)
Cash operating costs(1) US$909/oz (US$880/oz in Q2)(2)
US$795/oz in Q2 excl. inventory adjustments
All-in sustaining costs(1) US$1,398/oz (US$1,257/oz in Q2)
Strong Performance in First Half of 2013
(1) Example of non-GAAP measure
(2) Cash operating costs exclude royalties 8
Guidance remains unchanged
Production of 120,000 to 135,000 oz
Cash operating costs(2) of US$800/oz to US$875/oz
Capital investment of approximately $90 million
2013 Guidance(1)
(1) Examples of forward-looking information
(2) Example of non-GAAP measure 9
Timmins West Mine
Underground mine with two deposits –
Timmins Deposit (“TD”) and Thunder Creek
(“TC”) Deposit
Exceptional infrastructure, well trained
workforce support efficient operations
Accessed by 710 m deep, 5.5 m diameter
shaft and surface ramp
Production rate of 2,500 – 3,000 tpd
YTD 2013 production 42,900 oz (339.3k
tonnes @ 4.1 gpt)
0
5,000
10,000
15,000
20,000
25,000
Q2/12 Q3/12 Q4/12 Q1/13 Q2/13
Quarterly Production (oz)
10
Bell Creek Mine – Production & Growth
11
Current Production with Significant Growth Potential
Underground mine with five years of reserves
(large resource below current reserve)
Infrastructure includes 300 m shaft (non-
producing), surface decline to 685 m, vent
raises, drill drifts
YTD 2013 gold production (H1/13) of 11,300
oz (89.2k tonnes @ 4.2 gpt)
Potential to substantially grow production
Deep
Zone
Potential
shaft
extension
Shaft
(1) Examples of Forward Looking Statements
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
Q2/12 Q3/12 Q4/12 Q1/13 Q2/13
Quarterly Production (oz)
12
Bell Creek Mill – +3,000 tpd Capacity
SAG Mill Building
New Thickener
New CIL Tanks Crusher
Truck Dump 6,000 tonne
Ore bin
Expansion to +3,000 tpd completed in August, commissioning ongoing
Traditional gold circuit with history of excellent operational and metallurgical
performance (gold recoveries +95%)
Potential expansion to 5,500 tpd to support future production increases from Timmins
West and Bell Creek incorporated in current infrastructure
Crushing and grinding capabilities already at this level
(1) Examples of Forward Looking Statements
Bell Creek Mill – New Crushing/Grinding Circuit
13
14
Bell Creek Mill – New Crushing/Grinding Circuit
15
Bell Creek Mill – Solution Circuit & Refinery
Timmins West Complex 1.2M oz in M&I resources, 1.6M oz in inferred (1)(2)
Both deposits at Timmins West Mine open for
expansion
Gold River Trend has >1M oz in resource(1)
144 covers 4 kms southwest of Timmins West Mine
16
Outstanding Exploration Potential
Bell Creek Complex 0.9M oz of M&I resources, 1.1M oz Inferred(1)(2)
Significant potential for growth at Bell Creek Mine
Initial resources established at Vogel and Marlhill
Additional targets with limited or no drilling
Fenn-Gib
Large, near-surface, potential open-pitable resource
1.3M oz M&I resources, 0.8M oz inferred(1)
Major extensions announced, new targets discovered
(1) A review of tonnes and grades is available in the Appendix
(2) Resources inclusive of reserves
17
(1) Examples of forward-looking information
Lake Shore Gold – Poised for Value Creation(1)
Annual production capacity +140,000 oz
All-in sustaining costs @ US$1,000/oz
Capital investment period completed Improving cost performance
Strong production growth
Targeting free cash flow in Q4/13 Poised for free cash flow
Full pipeline of projects & exploration properties
Four multi-million ounce gold deposits identified
APPENDIX
18
19
LSG – Reserves and Resources
Measured & Indicated(1) Tonnes Au Grade (g/t) Contained Ounces
Timmins West Mine 5,978,000 5.5 1,061,000
Gold River 690,000 5.3 117,000
Bell Creek Mine 4,685,000 4.7 710,000
Vogel 2,219,000 1.75(2) 125,000
Marlhill 395,000 4.5 57,000
Fenn Gib 40,800,000 0.99(2) 1,300,000
Total 3,370,000
Inferred Tonnes Au Grade (g/t) Contained Ounces
Timmins West Mine 3,549,000 5.4 615,000
Gold River 5,273,000 6.1 1,028,000
Bell Creek Mine 6,080,000 4.6 904,000
Vogel 1,459,000 3.60(3) 169,000
Fenn-Gib 24,500,000 0.95(2) 750,000
Total 3,466,000
(1) Resources are inclusive of reserves
(2) Open-pit resources
(3) Combination of underground and open-pit resources
Probable Reserves Tonnes Au Grade (g/t) Contained Ounces
Timmins West Mine 4,811,000 5.2 798,000
Bell Creek Mine 960,000 4.2 129,000
2,000 Lv
Timmins Deposit Thunder Creek 144
TC – 144 Trend
UM and FW structures extended
to 2,400 m
6 kms
Timmins West Mine
20
Exploration Potential – Timmins West Complex
1,000 Lv
500 Lv
21
MH – Marlhill Project
VG – Vogel Project
Bell Creek Mine
WM – Wetmore Project
MH
VG Hoyle Pond
Mine WM
Key Projects
Bell Creek Mine Marlhill
Vogel
Hoyle Pond Mine
Wetmore
Bell Creek Complex Large Resource base, large underexplored land position
22
Current Resource Pit (>2.0M oz)
1.2M oz Starter Pit
New Pit Outline based
on most recent drilling
1.72 gpt/48.8m
1.03 gpt/81.4m
1.02 gpt/190.5m
1.01 gpt/52.5m
1.01 gpt/22.1m
1.63 gpt/60.4m
0.67 gpt/121.5m Potential Westerly
Pit Expansion into
untested gap
Fenn-Gib – Potential Large-Scale, Open-Pit Project
Considerable potential to grow resource to depth and along strike
23
Non-GAAP Measures
Cash Operating Costs per Ounce
Cash operating cost per ounce is a Non-GAAP measure. In the gold mining industry, cash operating cost per
ounce is a common performance measure but does not have any standardized meaning. Cash operating costs
per ounce are based on ounces sold and are derived from amounts included in the Consolidated Statements of
Comprehensive Loss (Income) and include mine site operating costs such as mining, processing and
administration, but exclude depreciation, depletion and share-based payment expenses and reclamation costs.
The Company discloses cash cost per ounce as it believes this measure provides valuable assistance to
investors and analysts in evaluating the Company’s performance and ability to generate cash flow. This
measure should not be considered in isolation or as a substitute for measures prepared in accordance with
GAAP such as total production costs.
All-In Sustaining Costs
Effective the second quarter 2013, the Company has adopted a total all-in sustaining cost (“AISC”)
performance measure. AISC is a Non-GAAP measure. The measure is intended to assist readers in
evaluating the total costs of producing gold from current operations. While there is no standardized meaning
across the industry for this measure, the Company’s definition conforms to the AISC definition as set out by the
World Gold Council in its guidance note dated June 27, 2013. The Company defines all-in sustaining cost as
the sum of cash costs from mine operations, sustaining capital (capital required to maintain current operations
at existing levels), corporate general and administrative expenses, in-mine exploration expenses and
reclamation cost accretion related to current operations. All-in sustaining cost excludes growth capital,
reclamation cost accretion not related to current operations and interest and other financing costs.
Cash Earnings from Mine Operations
Cash earnings from operations are determined by deducting cash operating costs from revenues recognized in
the period.