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