HGC Corporate Presentation November 2009
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HGC Corporate Presentation November 2009

HGC Corporate Presentation November 2009

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HGC Corporate Presentation November 2009 Presentation Transcript

  • 1. Experienced Management Cassiar Gold Mine Table Mountain Infrastructure & Taurus Permitted Frasergold Building British Columbia’s Next Gold Producer Corporate Presentation November 2009
  • 2. Forward-Looking Information Certain statements herein may contain forward-looking information within the meaning of applicable securities laws. Forward-looking information appears in a number of places and can be identified by the use of words such as “intends” or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. Forward-looking information includes statements regarding the Company’s exploration and development plans with respect to its properties and the estimation of mineral resources and are subject to such forward-looking risks, uncertainties and other factors which may cause the Company’s actual results, performance or achievements, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information. Such risks include gold price volatility, change in equity markets, the uncertainties involved in interpreting geological data, increase in costs and exchange rate fluctuations, permitting and environmental risks and other risks involved in the gold exploration and development industry. There can be no assurance that forward-looking information referenced herein will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements or information. Also, many of the factors are beyond the control of Hawthorne Gold. Accordingly, readers should not place undue reliance on forward-looking information. All forward-looking information herein are qualified by this cautionary statement. The Company does not undertake to update such forward-looking information except in accordance with applicable securities laws. A feasibility study has not been completed for any projects discussed in this presentation and there is no certainty the disclosed targets will be reached nor that the proposed operations will be economically viable. Michael Petrina, P.Eng., the Company’s Vice President of Mining and a Qualified Person as defined by National Instrument (“NI”) 43-101, has reviewed and approved the technical information contained in this presentation. 2
  • 3. Share Structure Issued and Outstanding 77,224,316 Stock Options ($0.40 - $1.60) 7,338,700 Warrants ($0.30 - $2.25) 13,725,347 Fully Diluted 98,288,363 American Bonanza Gold Corp. 5,750,000 ~(8%) Institutional Ownership ~25,000,000 ~(26%) Market Capitalization (as at Novem ber 12, 2009) ~$30M 3
  • 4. Investment Highlights Experienced Management , Operational and Technical Team • Led by respected company builders Michael Beley and Richard Barclay  Co-founded both Bema Gold and Eldorado Gold • Strong board of directors and advisory team Dedicated to Growth through drilling, development and acquisitions • Apply Bema/Eldorado Model (short term cashflow)  Advance towards cashflow at profitable mining operation within 3 years from Company inception  On track for production at Cassiar Gold Mine, British Columbia in early 2010 (~Q1) • Aggressive 8,000 to 10,000 metre diamond drill program at Cassiar Gold Camp 2009  Build resource portfolio and develop priority exploration targets for upside potential • Merger & Acquisitions focus – build out management team, resource and production portfolio to become significant junior gold producer by 2012 Three advanced stage gold projects in British Columbia, Canada • Table Mountain Deposit - high grade vein deposits  Fully permitted 270 tonnes per day mine, operational mill and tailings impoundment facility  Estimated replacement value for mill facility: ~$30M • Taurus Deposit - open pit, bulk tonnage opportunity and/or selected smaller high grade open pit opportunities • Frasergold Deposit - open pit, bulk tonnage opportunity 4
  • 5. Experienced Management Team Michael Beley Chairman and Director 40 + years experience in senior executive roles in mining industry; former co-founder, VP & Director of Eldorado Gold Corp.; former co- founder, VP & Director of Bema Gold Corp.; co-founder of Polaris Minerals; and former Director of Nevada Pacific Gold Richard Barclay President, CEO and Director 40+ years experience in senior executive roles in financial sector; former founding CEO, President, & Director of Eldorado Gold Corp.; former co-founder, CFO and Director of Bema Gold Corp.; and former President, CEO & Director of Nevada Pacific Gold David McAdam CFO (Interim) 25 years of international experience in senior financial roles. Mr. McAdam previously held the positions as CFO of Eastern Platinum Limited, and executive and advisory positions for Yellowcake Mining Inc., and other US/CDN based Co.’s; B. Comm. Michael Petrina VP Mining 25+ years experience in senior management , operational and consulting roles for such companies as Adanac Molybdenum Corporation, Pan American Silver Corporation, Miramar Mining, TVX Gold, and Kilborn Engineering Pacific Ltd.; B.Sc. Engineering, P.Eng and MBA Peter A. Ball VP Corporate Communications 20+ years mining, brokerage, marketing/communication and technical experience; previous roles with Eldorado Gold, Echo Bay Mines, Hudson Bay Mining and Smelting ltd., RBC Dominion Securities; graduate of Haileybury School of Mines and Georgian Business School Marlin Murphy Manager of Environmental and Governmental Affairs Over 25 years of environmental and government relations experience; previous senior management positions with EBA Engineering, Compliance Energy Corporation, Barrick Gold Corporation, Homestake Mining and Cassiar Mining Corporation 5
  • 6. Technical Team and Advisors John Dadds Manager, Cassiar Gold Project 30+ years experience in gold exploration; held positions of increasing responsibility with Corona Corp., Homestake Mining, Barrick Gold; successes include the co-discovery of Hemlo gold deposit and the exploration and mining of the Eskay Creek gold deposit Jack McClintock Board Advisor/Consultant 30+ years experience in all facets of the mineral exploration business; held various positions of increasing responsibility with Rio Algom, Billiton and BHP Billiton, the last being Global Exploration Manager with BHP Billiton; graduate degrees in Geology and MBA Dr. John-Mark Staude Board Advisor 20+ years of international exploration experience in precious and base metals; held various positions of increasing responsibility with Kennecott, BHP Billiton, and Teck Cominco David Rhys Board Advisor Principal of Panterra Geoservices Inc.; specializes in the application of structural geology techniques to the assessment of mineral deposits; has extensive experience in the evaluation of gold deposits at all phases of development Bernard Kahlert Director 35+ years of international exploration experience primarily focused on gold and base metals; held various positions with mining companies in Australia, United States and Canada; graduate in Geology and P.Eng Dale A. Sketchley Director 30 + years experience encompassing all phases of exploration, QAQC, geological modelling and resource evaluation; Mr. Sketchley has been involved Ivanhoe Mines, Union Minié, Chevron, Denison, Erickson Gold, Cooke Geological, MineQuest, and Placer Dome 6
  • 7. British Columbia – A Pro Mining Province Cassiar Gold Table Mountain Deposit District (Cassiar Gold Mine) Taurus Deposit Cariboo Gold Frasergold District Deposit 7
  • 8. Cassiar Gold Camp Table Mountain and Taurus Deposits Progress To Date • 58,901 hectare claim boundary • Increased land position by 245% • Historical production of ~500,000 ounces • Purchased remaining 70% of Taurus Deposit • Completed geological compilation model of 40 years of data • Completed 2,536 metre surface diamond drill program at East Bain zone • Rehabilitated underground access workings at Cassiar Gold Mine • Re-established exploration and mining camp • Completed property-wide geophysics program 8
  • 9. Table Mountain Deposit & Cassiar Gold Mine High-Grade Gold System • NI 43-101 Mineral Resource Estimate • Deposits hosted in extensive quartz-carbonate- • 23 km of road access gold vein systems similar to some of Canada’s throughout property to access 13 adits and ~25 km largest gold camps, including Timmins, Kirkland underground workings Lake and Val d’Or 2009 Exploration & Development Program • Commenced 8,000 to 10,000 metre diamond drill program (June 4, 2009) focused on:  Priority zones identified at Table Mountain to potentially increase resource base  Regional targets to identify new zones • Commenced underground pre-development at East Bain zone to prepare for production at Cassiar Gold Mine (July 23, 2009) • Commenced surface soil sampling, trenching and property-wide reconnaissance exploration program (June 4, 2009) 9
  • 10. Taurus Gold Deposit Highlights • NI 43-101 Mineral Resource Estimate • High-grade zones identified within resource; selected smaller high grade open pits • Open pit, bulk tonnage opportunity • Historical production of 32,700 ounces from high grade zones within deposit Oro Vein 2009 Exploration & Development Program • Commenced surface exploration drill program to define high grade zones within Taurus deposit for smaller open pits to use as supplemental feed for Table Mountain mine & mill complex • Complete metallurgical studies on mineralized zones for compatibility with mill flowsheet • Commenced Bulk Sample August 20, 2009 10
  • 11. Taurus Project – Summer 2009 Examples of potential high grade zones within Taurus Low Grade deposit 11
  • 12. Infrastructure, Resources, People Ready for Production (July 2009) Mine and Mill Site 270 tpd Mill Facility Entering East Bain Zone Underground at Table Mountain Developing Ramp to East Bain Taurus High Grade Veins at Surface Taurus pre-stripping, drilling, trenching Taurus Drilling Zone #1 Reviewing Core (President and Advisors) 12
  • 13. NI 43-101 Mineral Resource Estimate Measured Indicated Inferred Projects Tonnes Grade Contained Au Tonnes Grade Contained Au Tonnes Grade Contained Au g/t g/t g/t Kg Oz Kg Oz Kg Oz East Bain* 20,101 21.21 426.37 13,708 1,158 68.57 79.38 2,552 Taurus** - - - 33,055,000 0.990 32,829.72 1,055,500 Frasergold 11,470,000 0.595 6,824.65 219,418 22,610,000 0.540 12,209.40 392,541 75,310,000 0.507 38,209.28 1,228,457 Total 11,470,000 0.595 6,824.65 219,418 22,630,101 0.558 12,635.77 406,249 108,366,158 0.655 71,118.38 2,286,509 • Frasergold independent mineral resource estimate was completed October 1, 2009 by K.V. Campbell, Ph.D, P.Geo of ERSi Earth Resource Surveys Inc. and G.H. Giroux, MA.Sc, P.Eng. of Giroux Consultants Ltd. The NI 43-101 Technical Report and Mineral Resource Estimate will be completed and available by November 14, 2009. The Company is earning up to 60% of the project from Eureka Resources and 100% of ounces from project are shown above***. • *Update of Technical Report on the Table Mountain Property, Liard Mining District, BC on the Table Mountain Property prepared by Beacon Hill Consultants (1988) Ltd. - June 1, 2008. For 68.57 g/tonne cut values, individual assays greater than 68.57 g/tonne Au are cut to 68.57 g/tonne Au. • ** An updated NI 43-101 report (Wardrop Engineering Inc. – Updated Resource Report on the Taurus Deposit – Liard Mining District, BC - dated March 11, 2009) regarding the Taurus Property is available on www.sedar.com. Taurus NI 43-101 resource estimate conversion equates to 33.055 million tonnes at 0.99 g/t Au. This uses a cut-off grade of 0.50 g/t Au. ***About the Frasergold Option Agreem ent  Pursuant to an option agreement dated October 31, 2006 between Hawthorne and Eureka, Hawthorne can earn a 51% interest in the Frasergold Project by completing sufficient exploration expenditures totaling $3.5 million (expended), completing a feasibility study by April 30, 2010 (April 30, 2012 with extensions) and making cash payments totaling $175,000 ($175,000 paid) before October 31, 2009. Hawthorne can earn a further 9% (for a total of 60%) by arranging financing for 70% of the estimated capital costs for production. 13
  • 14. Resource Opportunities Erickson Creek Fault Main Mine 28 Adit 21Adit 14 Adit Cusac Mine East Bain 14
  • 15. Resource Opportunities Erickson Creek Fault 15
  • 16. Cassiar Gold Camp Resource & Development Strategy • Utilize completed geological data compilation model of 40 year history of camp to identify priority drill targets (data includes drill holes, maps, surveying, and geophysical information) • Build near-term gold resource portfolio through aggressive surface drill programs • Continue with regional reconnaissance exploration to identify targets for long term continued growth of resource portfolio across significant land position • Complete underground rehabilitation and pre-production development 16
  • 17. Cassiar Gold Camp 2008 Progress & Q1 – Q4 2009 Development Plan 2008 2009 Sept Oct Nov Dec Q1 Q2 Q3 Q4 Resource Development Table Mountain Access / Surveying / UG Rehab. GIS Data Compilation Resource Modeling Diamond Drilling Bain Eng./Mine Planning/Development Taurus Resource Modeling / Expansion Diamond Drilling Metallurgical Study Bulk Sample Infrastructure Cassiar Gold Mine Camp / Site Prep / Equip. / Misc. Mill Rehab./Maintenance/Prep. 17
  • 18. Frasergold Summary • Completed Independent Mineral Resource Estimate October 1, 2009; expect to complete full NI 43-101 Mineral Resource Estimate and Technical Report by November 16, 2009 • Open pit, bulk tonnage opportunity • ~50,000m of historical diamond and RC drilling and 300m underground workings (includes 3,617m in 2007 and 10,405m in 2008) • Extensive infrastructure with road access directly to site • 65 different visible gold occurrences logged in 60% of the 58 completed holes; drilling highlights: 48.77m averaging 5.84 g/t Au, including 4.38m averaging 63.05 g/t Au 2007/08 Drilling Earn up to a 60% interest in the property from Eureka Resources Inc. 18
  • 19. Frasergold Deposit Comparison Deposit Resource Resource (Oz Au) Resource (Oz Au) Company Stage Cash Cost Cut-off Grade Grade Grade (g/t) P&P (g/t) M&I (g/t) Inferred (g/t) Per Oz Paracatu, Brazil 0.18 18,162,000 0.400 4,267,000 0.380 450,000 0.370 Kinross Operation $373 Fort Knox, Alaska 0.43 3,807,000 0.470 1,723,000 0.550 35,000 0.550 Kinross Operation $344 Marigold, Nevada n/a 1,020,000 0.690 510,000 0.550 460,000 0.480 Goldcorp Operation $308 Frasergold, British Hawthorne Gold / Advanced Columbia* 0.30 611,959 0.559 1,228,457 0.507 Eureka Resources Exploration N/A Spanish Mtn, Skygold Ventures Advanced British Columbia 0.30 3,940,000 0.581 460,000 0.574 Ltd. Exploration N/A Maricunga, Chile n/a 6,541,000 0.720 2,290,000 0.610 2,400,000 0.560 Kinross Operation $447 Round Mtn, Nevada 0.42 1,621,000 0.600 529,000 0.640 450,000 0.404 Kinross Operation $316 * The Frasergold current resource is base is based on an approximate strike length of 1.5 km within the 10 km mineralized zone on the Frasergold Property Due to the uncertainty of Inferred Mineral Resources it cannot be assumed that all, or any part of this resource will be upgraded to an Indicated or Measured Resource as a result of continued exploration. To Notes: justify upgrading of the Mineral Resource to a Mineral Reserve, demonstrated economic viability is P & P - Proven and Probable required. Mineral Resources which are not Mineral Reserves do not have demonstrated economic viability. M & I - Measured and Indicated The estimate of Mineral Resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues. Other: All information presented above is based on public information gathered from company websites. 19
  • 20. Exploration and Development Going Forward TABLE MOUNTAIN DEPOSIT AND CASSIAR GOLD MINE • Continue resource development through surface drilling during 2009 summer/fall; exploration program will consist of 8,000 to 10,000 metres of diamond drilling, trenching, mapping and soil sampling • Complete engineering and mine planning • Complete pre-production mine development leading towards production at Cassiar Gold Mine TAURUS • Continue surface drilling and metallurgical work to define high-grade small open pit opportunities to supplement mill feed at Cassiar Gold Mine FRASERGOLD • Completed Independent Mineral Resource Estimate October 1, 2009; expect to complete NI 43-101 Mineral Resource Estimate and Technical Report by November 16, 2009; reviewing opportunities and action plan for mining camp and project 20
  • 21. Contact: For more information please contact: Todd Hanas, Investor Relations Telephone: 604.484.3668 Toll Free: 866.869.8072 Email: todd@hawthornegold.com www.hawthornegold.com 21