Clavos Deposit - Investor Cubed

Transcription

Clavos Deposit - Investor Cubed
Path to
Production
June 2012
Forward Looking Statements
Statements 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 management’s belief as well as assumptions made by,
and information currently available to, management.
The Company’s 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
Company’s filings with the securities and regulatory authorities.
Note: All currencies are in Canadian dollars unless otherwise noted
1
CORPORATE VISION
Sage Gold’s short term plans are to develop production on their existing
resource to generate cash flow to fund further exploration and potentially
develop a leading gold mining company in a world class mining camp.
CORPORATE STRUCTURE
•
•
•
•
•
•
•
Shares O/S: 76.6 million
Shares F/D: 109.0 million
Current price: $0.06
52 week high/low: $0.21/$0.05
Market Cap: C$ 4 million
Average Strike Price of Warrants/Options: $0.34
Proceeds from Warrants/Options: $10.7million
Exchange Symbol: TSX.V – SGX
OTC – SGGDF (USA)
2
Sage Gold Advantage
1. Near Term Production – Clavos Deposit.
•
Sage Gold has access to SAS’s mill in the area and is able to move into production
quickly and cost effectively - will generate strong cash flow for the company
2. Blue Sky Potential – Clavos Deposit


Open at depth and on multiple directions along strike
Management will focus on continuing to increase resources
3. Strong Strategic Partnerships

Clavos Property - St. Andrews Goldfields (Potential Joint Venture Partner)
 Providing low cost access to mine and mill
 Established infrastructure with $46 million spent on underground development
4. Experienced Management Team
5. Completing earning a 60% interest in Clavos
6. New NI43-101 Resource Estimate and PEA in 2012
3
Clavos Deposit - Highlights
 Located in the prolific Timmins Mining camp and close geographically (20kms) to
Goldcorp’s (TSX-G) high grade Hoyle Pond mine which has produced more than 2.4
M ozs since 1985 and is still in operation.
 Existing infrastructure in place including underground ramp access to the 300m
level, underground levels developed every 25m, power to site, surface ventilation
system, water management system.
 Prior gold resource for Clavos reported by SAS in October 2006. The resource was
calculated by Roscoe Postle & Associates (RPA) and comprises 37,000 gold ozs,
143,000 tons @ 8.07 g/t Au in M&I and 110,300 gold ozs, 529,000 tons @ 6.5 g/t Au
in Inferred ( assays cut to 60g/t)
 Suite of Permits in place – new closure plan required
 Clavos is also located 10 kms from the Brigus Gold mill in Stock Township.
4
CLAVOS DEPOSIT
Timmins, Ontario
Near Term Production Plans
Q2-3 2012




Completion of 60% earn in
New Resource study by RPA
Scoping study (PEA)
Initiate 2012 work program
Q3-4 2012




Complete new Closure Plan
Production Decision and Project Financing
Dewater and Rehab. Mine
Underground and Surface Drilling
2013 - Production
5
Existing Timmins Gold Projects
CLAVOS DEPOSIT
Timmins, Ontario
Clavos Property - In Good Company
Advanced Projects
• Lakeshore Gold
→ Timmins Mine now in production
→ Current resources of 1.87M oz Au
• Goldcorp
→ Hollinger Open Pit Scheduled for production by 3Q’12
→ Current resources 900,000 oz Au
Near-Term Production Potential
•
•
•
•
•
Sage Gold (Clavos)
Lakeshore Gold (Bell Creek, Vogel)
St. Andrew Goldfields (Taylor)
SGX Resources (Tully)
Lexam - VG Gold - (Paymaster West)
6
CLAVOS DEPOSIT
Timmins, Ontario
Existing
Clavos
OPEN
OPEN
960 Zone
OPEN
Sediment
Zone
 4.5 KM strike length
7
Underground Drill Core Photos
A
B
CLAVOS DEPOSIT
Timmins, Ontario
A-B: Photos from hole CL252-13, 63.164.3m, illustrating stylolitic white quartz veining
with visible gold from a stylolitic quartz vein
system with chlorite-carbonate-pyrite altered
wallrock slivers that is consistent in style with
the en echelon vein arrays.
Photos A and B are close-ups of stylolitic
ribboned chlorite-rich bands in the system
partially zone shown in B, containing multiple
grains and blebs of native gold. Note
aggregates of pale grey Fe-carbonate in lower
left portion of photo B.
The vein system occurs adjacent to a narrow
grey porphyry dyke.
594.88 gpt Au (17.35 opt) over
1.2m (uncut)
8
Timmins Gold Camps
CLAVOS DEPOSIT
Timmins, Ontario
Clavos
Mine
9
Blue Sky Potential
CLAVOS DEPOSIT
Timmins, Ontario
Highlights :
 Data compilation complete consisting of 150,000m of historical surface drilling
and 40,000m of historical U/G drilling - 9000m+ (SGX) drilled in 2011-2012 –
960 zone plus existing Clavos deposit
 3D Geological model of all mineralized zones
 Internal capital expenditure estimates
 Open at depth and along strike
 Exploration upside - new alteration zone north of the 960 zone
- Clavos and 960 zones untested at depth
- potential to more than triple the resource
10
Strategic Partnerships
CLAVOS DEPOSIT
Timmins, Ontario
 Potential Joint Venture Partnership with St. Andrew
Goldfields (SAS) for the Clavos Deposit in Timmins.
 Sage Option with St. Andrew Goldfields to earn 60%
 $3.0 million in the ground (completed) and $130K in cash and
shares over 3 years - $40K cash and shares remaining - plus
$250k for closure bond

Existing infrastructure in place




SAS $46 million spent for underground development
Underground ramp access to the 300 metre level
Existing buildings and settling ponds
New Closure plan in process
 New Resource estimate underway by RPA
11
SAS Properties in Timmins
2540
hectares
CLAVOS DEPOSIT
Timmins, Ontario
Pipestone
Fault
12
CLAVOS DEPOSIT
Timmins, Ontario
Strategic Partnerships
2006 Resource – Mine Only
Category
Total M&I
Tonnes
143,000
Uncut Grade
Cut Grade
10.27
8.07 (60g/t)
Total Ounces
37,100 (cut)
47,200 (uncut)
__________________________________________________________________________
Total Inferred
529,000
6.70
6.49 (60g/t)
110,300 (cut)
114,000 (uncut)
__________________________________________________________________________
Note: The 2006 resources are estimated at a cut-off grade of 4 g/t Au, high gold assays are cut to 60g/t Au, minimal horizontal
thickness of 1.5 metres and an average long-term gold price of US$500 per ounce was used.
13
BOARD OF DIRECTORS
Patrick J. Mars
Chairman and Director
Peter Bojtos
Director
Gary Robertson
Director
Joe Baylis
Director
Sandy Chim
Director
Hua Bai
Director
Mr. 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.
Mr. 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.
Mr. 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. Baylis brings over 23 years of domestic and international mining industry experience to the Company. Mr. Baylis
graduated with an LLB from the University of Western Ontario and is a member of the Law Society of Upper Canada.
Mr. Chim is an international business executive. He is the President and CEO of Century Iron Mines Corp. (TSX-FER), a
director of Augyva Mining Resources Inc. (TSX.V-AUV) and non executive director of Prosperity Minerals Holdings Limited.
Mr.Chim resides in Kowloon, SAR, Hong Kong, PRC.
Mr. Bai is a Beijing, China businessman. He has investment and commercial experiences covering various fields in China
and Vancouver. With more than 20 years of business activities, he has established an extensive business network in
China. Mr.Bai is currently the President of Earnlead Investments Inc., Sino Water Holdings Inc., and has held such
positions since May 2011. He is a director for Century Iron Mines Corporation (TSX.V-FER).
14
MANAGEMENT and CONSULTANTS
Management
C. Nigel Lees
President, CEO and Director
William D. Love
VP and Business Development
Arthur Hampson
Chief Financial Officer
Michael Skutezky
Secretary and Legal Counsel
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 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 Hemlo
discovery 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. Hampson is a Chartered Accountant with over 20 years experience at the CFO level with both public and private
companies.
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.
Consultants
Peter Hubacheck
P.Geo, QP
Bob Ritchie
Mining Engineer
Mr. 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, Noranda
Mines and St. Andrew Goldfields. He was responsible for the construction of the Stock (now Brigus Gold) Mill which is
10 kms from the Clavos mine. 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 de la Plante
Avrom Howard
Abitibi 70
M.Sc, FGA, P.Geo
15
Why Invest in Sage Gold
 Compliant Resources
 Established resource to fast track production
 Near Term Production
 Milling Contract in process with the St. Andrews Mill to deliver ore
 Low Capex / Fast Payback
 Strong potential to increase tonnage through further in-fill and
exploration drilling
 Strategic acquisitions being evaluated to augment the
companys resources and production potential
 Ideal Market Timing
 Low market capitalization
16
Sage Exploration Properties
Beardmore Geraldton Gold Camp
Joint Venture Potential
• Properties - Onaman - Lynx Deposit, NI43-101 compliant resource
Paint Lake (adjacent to Brookbank Gold Deposit)
Jacobus (Cu/Ni),
Clist Lake (Au)
• Infrastructure in place - Road, Rail, Power
• Underexplored; Potential for large gold deposits - i.e. Red Lake
• Option agreement - MetalCorp (70% interest) in Solomon’s Pillars
• Ongoing negotiations with potential joint venture partners.
17
Onaman
LYNX DEPOSIT
Beardmore, Ontario
Lynx NI43-101 Open Pit Resource 485,000
tonnes 2.1 % Cu, 45.3 g Ag/T, 0.70 g Au/T
at 1% Cu cut off
Lynx NI43-101 Resource
1.936 million tonnes, 1.44% Cu
39.6 g Ag/T, 0.58 g Au/T
Yellow = .5% Cu x 3 metres – Cut Off
Red = 1% Cu x 3 metres
18
Contact Information
Sage Gold Inc.
Investor Cubed Inc.
365 Bay Street, Suite 500
Toronto, ON M5H 2V1
Tel.: 416 204-3170
Fax: 416 260-2243
info@sagegoldinc.com
Mike O’Brien – Manager of
Investor Relations
67 Yonge St., Suite 1000
Toronto, ON M5E 2J8
Tel.: 1-888-258-3323
Fax: 416 363-7977
info@investor3.ca
Neil Simon
19