Investor Presentation - September 2014

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Sage Gold

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  • 1. Aug-Sept 2012Path toProductionSeptember 2014TSX-V : SGXPath to Production

2. Path to ProductionForward Looking Statements1Statements made in this presentation, other than those concerning historical information, should be considered forward-looking statements which are subject to various risks and uncertainties. Such forward-looking statements are made based on managements belief as well as assumptions made by, and information currently available to, management.The Companys actual results may differ materially from the results anticipated in such forward-looking statements as a result of a variety of factors. Additional information concerning factors that could cause actual results to materially differ from those in such forward-looking statements is contained in the Companys filings with the securities and regulatory authorities.Note: All currencies are in Canadian dollars unless otherwise noted 3. Path to Production2Sage Gold plans are to develop production from their existing resources on the Clavos and Lynx projects to generate cash flow. CORPORATE STRUCTURECORPORATE VISIONExchange Symbol: TSX.V SGXOTC SGGDF (USA)Shares O/S:9.0 millionShares F/D:10.3 millionCurrent price: $0.1452 week high/low: $0.60/$0.14Market Cap:C$ 1.26 millionAverage Strike Price of Warrants/Options: $1.38Proceeds from Warrants/Options: $1.9 million 4. Path to Production3SAGE GOLD ADVANTAGENear term production1.Clavos Au and Lynx Cu-Ag -Au projectPotential to generate strong cash flow for the companySage has access to custom mills for both the Clavos and Lynx projectsPermits in place to re-open Clavos for dewatering and underground rehabilitation2. Both Clavos and Lynx have 43-101 resources3. Preliminary Economic Assessment on Clavos Project71% Internal Rate of Return (pre-tax) and $23.2MM Net Present Value4. Blue Sky Potential Clavos and Lynx ProjectsOpen at depth and on multiple directions along strikeManagement will focus on continuing to increase resources5. Excellent Infrastructure -ClavosEstablished infrastructure with $46 million spent on underground developmentNote: The PEA does not indicate the economic viability of the mineral resource and is preliminary in nature, includes inferred resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves and that there is no certainty that the PEA will be realized. Mineral resources that are not mined reserves do not have demonstrated economic viability. A PEA is deemed to be reliable +/-50% level. 5. Path to Production4TIMMINS GOLD CAMPSCLAVOS PROJECT Timmins, OntarioPrimeroMill 6. Path to Production5CLAVOS PROJECT-HIGHLIGHTSLocated in the prolific Timmins Mining camp -produced in excess of 100 million ozsgoldExisting infrastructure -underground ramp and levels every 25 metresto the 300m levelLow initial Capex required for potential production $14.1millionOption agreement to purchase St Andrews 40% interest in ClavosPermits in place to re-open Clavos mineClavos is located in close proximity to several operating millsNatural Gas pipeline -Clavos Property Potential Fuel and Power savings Study 7. Path to Production6CLAVOS PROJECT Timmins, Ontario1596005101520Commercial ProductionInitial Tonnage Extractionand ProductionDewater and Rehab mineComplete FinancingMonthsNEAR TERM PRODUCTION PLANS 8. Path to Production7GOLD PRICEUS$ / Oz (Au)$1400/Oz$1500/Oz$1600/OzBase CaseGold ProductionOz/Au145,448145,448145,448RevenueCdn$ million203.6218.2232.7Initial Capital Expenditures (100%)Cdn$ million14.114.114.1Sustaining CapitalCdn$ million21.121.121.1Total CapitalCdn$ million35.135.135 .1Operating ExpenseCdn$ t/Ore142.5142.5142.5Net Smelter ReturnCdn$ t/Ore6.16.57.0Cash flow (undiscounted)Cdn$ million19.934.048.1Pre TaxNet Present Value (NPV) 8%Cdn$ million13.523.233.0Internal Rate Of Return (IRR)%48%71%94%After TaxNet Present Value (NPV) 8%Cdn$ million5.612.619.5Internal Rate Of Return (IRR)%27%47%67%Life of MineYear777Payback PeriodYear2.252.001.75Note -assumes an exchange rate of 1:1 of Cdnto US Dollar;-tax rates are based on a blended rate between Sage and SAS-excludes any financing costs-contingency on capital expendituresof 30%-CAPEXfigures represents 100% of financingThe PEA does not indicate the economic viability of the mineral resource and is preliminary in nature, includes inferred resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves and that there is no certainty that the PEA will be realized. Mineral resources that are not mined reserves do not have demonstratedeconomic viability.Clavos PEA Economic Model 9. Path to Production8CLAVOS EXISTING UNDERGROUND 2,923m of primary access 710m of secondary access 3,208m of lateral level development +200,000 m of surface & underground diamond drilling 10 levels with detail geological mapping & channelsampling Replacement value $40.0mFootwallHanging WallSedimentContactHanging WallFootwallContactSediment2.5 kmRamp 10. Path to Production9Total Indicated 1,258,400 4.81 g/t 194,600__________________________________________________________________________Total Inferred 795,600 4.70 g/t 120,000__________________________________________________________________________Note: The 2012 resources are estimated at a cut-off grade of 2.75 g/t Au, high gold assays are cut to 60 g/t Au and an average long-term gold price of US$1600 per ounce was used. CLAVOS NI43-101 MINERAL RESOURCE Oct 12TonnesGradeTotal OuncesCategory 11. Path to Production10CLAVOS PEA REPORT 2013Forecasted production rate 600 tpdLife of Mine 7 yearsForecasted Full production 3rdyear, 4thQtr.Internal dilution in resource block estimateExternal dilution:-cut & fill methods 10% at 0 gms/t-long hole methods 40% at 0 gms/tTonnage recovery:-cut & fill methods 95%-long hole methods 90%Note: The PEA does not indicate the economic viability of the mineral resource and is preliminary in nature, includes inferred resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves and that there is no certainty that the PEA will be realized. Mineral resources that are not mined reserves do not have demonstrated economic viability. 12. Path to Production11ONAMAN PROPERTY -LYNX PROJECT -ONTARIOLynx Cu Ag Au 9,096 acresNE Mine Mill*Leitch*Nortoba** PREMIER GOLD OPTION 13. Path to Production12ONAMANYellow = .5% Cu x 3 metres Cut Off Red = 1% Cu x 3 metresLynx NI43-101 Resource1.936 million tonnes, 1.44% Cu39.6 g Ag/T, 0.58 g Au/TLynx NI43-101 Open Pit Resource 485,000 tonnes 2.1 % Cu, 45.3 g Ag/T, 0.70 g Au/Tat 1% Cu cut offLYNX PROJECTBeardmore, Ontario 14. Path to Production13LYNX PROJECT Cu Ag AuLocated within the OnamanProperty Northern OntarioVMS system high grade Cu-Ag-Au 43-101 ResourceNumerous VMS targets on the OnamanProperty potential to host large VMS depositOpen at depth and along strike Existing compliant resource -only drilled to 250-300 metresOpen Pit component potential to increase size to the northSage Agreement with Premier Gold to purchase Northern Empire mine and mill 75km from Lynx 15. Path to Production14Patrick J. MarsChairman and DirectorMr. Mars is an independent consultant specializing in mine financing and analysis with over 30 years of experience in the investment industry. Mr. Mars has acted as Chairman, CEO, or Director for several public- traded mining companies and is currently Director of Aura Minerals, Carpathian Gold, Selwyn Resources and Yamana Gold.Peter BojtosDirectorMr. Bojtos is a professional engineer with extensive experience in mineral development and production. Since 1996 following a successful career as CEO of several companies, Mr. Bojtos serves on mining company boards as an independent Director.Gary RobertsonDirectorMr. Robertson is a Certified Financial Planner. He has worked in the financial industry for the past twenty years, and presently serves on the board of several private companies as well as on the board of six Canadian junior gold mining companies.Mr. Freeman has extensive experience in public markets, finance and compliance, this includes six years as Director of Markets and Compliance at the OFEX Market (now ISDX). Mr. Freeman is Compliance Officer of Loeb Aron & Company a London corporate finance firm, a Lay member of the Upper Tribunal (Tax & Chancery) and of the Probate Committee of the ICAEW. Mr. Freeman is also a director of TSX-V quoted Cabo Drilling Inc., of AIM quoted Capital Lease Aviation PLC and of Jenolan Ltd.Sandy ChimDirectorMr. Chimis an international business executive. He is the President and CEO of Century Iron Mines Corporation (TSX- FER), a director of AugyvaMining Resources Inc. (TSX.V-AUV) and non executive director of Prosperity Minerals Holdings Limited. Mr.Chimresides in Kowloon, SAR, Hong Kong, PRC.C. Nigel LeesPresident, CEO and Director.Mr. Lees is a founder and past director of TVX Gold Inc., a significant gold producer in North and South America,which merged into Kinross Gold, listed on the TSX and the New York Stock Exchange. Mr. Lees has over 30 yearsexperience in the Canadian investment industry and is currently a Director of several publicly traded mining companiesincluding Yamana Gold.BOARD OF DIRECTORSPeter FreemanDirector 16. Path to Production15MANAGEMENT and CONSULTANTSManagementWilliam D. LoveVP and Business DevelopmentRobert RyanChief Financial OfficerMichael SkutezkyLegal CounselConsultantsBob RitchieMining EngineerMr. Peter Hubacheck is a consulting geologist and President of W. A. Hubacheck Consultants Ltd. He has over 35 years of experience as a project geologist, exploration manager and Qualified Person for the purposes of NI 43-101, with experience in the exploration for gold, silver, base metals, uranium and diamonds in Canada and the USA. He holds a Mining Technologist (1974) diploma from the Haileybury School of Mines and Technology, Haileybury, Ontario and a B.A.Sc. (Geol. Eng. 1977) degree from the South Dakota School of Mines and Technology, Rapid City, South Dakota.Mr. Ritchie is a Professional Engineer with over 40 years of experience in mine management and development, feasibility studies and mine construction. He has worked with several mining companies including Goldcorp, NorandaMines and St. Andrew Goldfields. He was responsible for the construction of the Stock (now BrigusGold) Mill. Mr. Ritchie is a graduate of the Michigan Technological University with a Bachelor of Science in Geology Engineering. He is also a Qualified Person (QP) as defined by NI43-101.Peter HubacheckP.Geo, QPC. Nigel LeesPresident, CEOand DirectorMr. Lees is a founder and past director of TVX Gold Inc., a significant gold producer in North and South America, which merged into Kinross Gold, listed on the TSX and the New York Stock Exchange. Mr. Lees has over 30 years experience in the Canadian investment industry and is currently a Director of several publicly traded mining companies including Yamana Gold.Mr. Love is a geologist who has been involved in mineral exploration in Canada and was part of the world class Hemlodiscovery team. He was also an institutional equity salesperson in London, England, for a Canadian brokerage firm. Mr. Love has spent the last fifteen years as a venture capitalist and a corporate finance specialist in a variety of resource and technology companies.Mr. Ryan brings over 25 years of experience in CFO and COO roles in private and public companies with an extensive background in financing and M&A transactions. Mr. Ryan is a CPA, CA and holds an MBA from the University of Toronto.Mr. Skutezky was Assistant General Counsel of Royal Bank for 25 years focused on International Project financing based in Montreal and Toronto, in addition to working in Eastern Europe with Canadian Law Firms. He has recently formed his own professional corporation for the practice of law and is the principal of Rhodes Capital Corporation. 17. Path to Production16WHY INVEST IN SAGE GOLDClavos one of the few permitted gold deposits in OntarioNear Term Potential ProductionClavos Positive Preliminary Economic Assessment Low Capex/ Fast PaybackLynx Compliant Resource / Large Deposit Potential/ Open Pit tonnageClavos/ Lynx -potential to Increase Tonnage through further in-fill and exploration drillingProduction Financing Joint Ventures being pursuedLow Market CapitalizationSMALL AND PROFITABLE IS BEAUTIFUL 18. Path to Production17CONTACT INFORMATIONSage Gold Inc.365 Bay Street, Suite 500Toronto, ON M5H 2V1Tel.: 416 204-3170Fax: 416 260-2243info@sagegoldinc.comKaren Levy