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12 10-12 yd-site_visit 12 10-12 yd-site_visit Presentation Transcript

  • Young-Davidson Site VisitLuc Guimond, General ManagerDecember 10, 2012
  • FORWARD LOOKING STATEMENTSCertain information included in this presentation constitutes forward-looking statements, including any information as to our projects, plans and futurefinancial and operating performance. All statements, other than statements of historical fact, are forward-looking statements. The words “expect”,“believe”, “anticipate”, “will”, “intend”, “estimate”, “forecast”, “budget”, “schedule” and similar expressions identify forward-looking statements. Forward-looking statements are necessarily based upon a number of factors and assumptions that, while considered reasonable by management, areinherently subject to significant business, economic and competitive uncertainties and contingencies. Known and unknown factors could cause actualresults to differ materially from those projected in the forward-looking statements.Such factors include, but are not limited to: changes to current estimates of mineral reserves and resources; fluctuations in the price of gold and silver;changes in foreign exchange rates (particularly the Canadian dollar, Mexican peso and U.S. dollar); the impact of inflation; changes in our credit rating;employee relations; litigation; disruptions affecting operations; availability of and increased costs associated with mining inputs and labor; developmentdelays at the Young-Davidson mine; technical challenges associated with the construction of capital projects; operating or technical difficulties inconnection with mining or development activities; inherent risks associated with mining and mineral processing; the risk that the Young-Davidson, ElChanate and Ocampo mines and may not perform as planned; the ability to complete the sale of Ocampo, Venus and the Los Jarros properties; theability to complete a joint venture agreement on the Orion property; the ability to realize the perceived benefits from the acquisition of Capital Gold andNorthgate and from the divestiture of the Stawell, Fosterville and El Cubo mines; uncertainty with the Company’s ability to secure capital to execute itsbusiness plans; the speculative nature of mineral exploration and development, including the risks of obtaining necessary licenses and permits;contests over title to properties; changes in national and local government legislation in Canada, Mexico and other jurisdictions in which the companydoes or may carry on business in the future; risk of loss due to sabotage and civil disturbances; the impact of global liquidity and credit availability andthe values of assets and liabilities based on projected future cash flows; risks arising from holding derivative instruments; business opportunities thatmay be pursued by, the company; and the ability of the company to successfully integrate acquisitions. Many of these uncertainties and contingenciescan affect our actual results and could cause actual results to differ materially from those expressed or implied in any forward-looking statements madeby, or on behalf of, us. Readers are cautioned that forward-looking statements are not guarantees of future performance. All of the forward-lookingstatements made in this presentation are qualified by these cautionary statements. Specific reference is made to the most recent Form 40-F/AnnualInformation Form on file with the SEC and Canadian provincial securities regulatory authorities for a discussion of some of the factors underlyingforward-looking statements.The company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, futureevents or otherwise, except as required by applicable law.Cautionary Note to U.S. Investors Concerning Measured, Indicated and Inferred ResourcesThis news release uses the terms "measured," "indicated " and "inferred” resources. We advise investors that while those terms are recognized andrequired by Canadian regulations, the United States Securities and Exchange Commission does not recognize them. Under Canadian rules, estimatesof inferred mineral resources may not form the basis of feasibility or other economic studies. United States investors are cautioned not to assume thatall or any part of measured or indicated mineral resources will ever be converted into mineral reserves. United States investors are also cautioned notto assume that all or any part of an inferred mineral resource exists, or is economically or legally mineable. 2
  • Overview Key long life, strategic asset with significant potential for sustainable growth • Cornerstone asset 20 • Long life, low cost producer • Located in stable jurisdiction, close 15 to major centres Historical Production YD P&P YD M&I YD Inferred M Oz. 10 • Strong growth profile • One of the largest gold mines in 5 Canada ‒ Sixth largest endowment in 0 Timmins and Kirkland Lake1 Aunor Paymaster Hollinger Dome Lakeshore Young-Davidson Sylvanite Upper Canada Preston McIntyre Wright Hargreaves Pamour Macassa Hallnor Kerr Addison Teck Hughes Hoyle Pond Coniarium • Poured gold on April 30, 2012 • Commercial production declared September 1, 2012 • Historic production from underground gold mines in Timmins • 2.4 million man hours without a lost and Kirkland Lake (~108 M Oz.) time injury during construction • Five mines with greater than 5 million ounces production,1. Ministry of Northern Development and Mines: Young-Davidson is likely to be the sixth http://www.mndm.gov.on.ca/mines/ogs/resgeol/offices/ne_e.asp 3
  • Aerial View Town of Matachewan Mine Site Tailings Impoundment Area Looking East 4
  • Rich Tradition• Site of two former producers Grade Period Mine Tonnes Produced Oz• 20+ years in operation (1930s to 1950s) (g/tonne) - +1,200 tpd avg. production rate 1934 to 1957 YD 5,653,000 3.21 585,000• Early pioneers of bulk mining 1934 to 1954 MCM 3,205,000 3.66 378,000 - +1 million tonne stopes underground 1981 to 1982 MCM 96,400 2.36 7,300• Mined ~9 million tonnes and produced Total 8,954,400 3.37 970,300 970,000 ounces• Average realized grade of 3.37 g/tonne Young-Davidson Mine (YD) Matachewan Consolidated Mine (MCM) 5
  • UpdateConstruction • Surface construction completeCommissioning • Successful, on time commissioningCommercial Production • Declared commercial production September 1 • Mill operating at name-plate capacity • Peak throughput approaching 8,000 tpdOpen Pit Productivity • Open pit productivity at design levelsUnderground • Stoping commenced in late October • Production exceeding target of 1,000 tpd 6
  • Resources and Reserves* * March 5, 2012 Press Release 7
  • Young Davidson – UndergroundMine Plan MCM Historic Ramp Portal Mine Workings 10350L Open Pit YD Historic Current Design Mine Workings NG Shaft MCM Shaft • Transverse longhole stoping ‒ For wider zones 9890L ‒ 30 m sub levels ‒ Highly productive (wide zones) 9590L • Longitudinal retreat ‒ For areas < 12 m widths 9400L • Pastefill plant Q4 2013 9200L • Mining recovery ~ 92% • Dilution ~10% 8900L 8
  • Underground Mine Plan 2012 Started first ore stope in October Developing crusher chamber Developing conveyor levelRamp Development• Current depth: 925 m Mid shaft bottom 9440 level ‒ Size: 4.9 m wide x 5.1 m high development established• Current length: 6,000 m• Final depth: 1,450 m• Final length: 9,800 m Soledad Property – Kern County, California 9
  • MCM Shaft Work Legend • Sink existing MCM shaft • Men & material during production • Current depth: 822 m Current location of shaft sinking 9533 EL ‒ Size: 5.18 m x 2.44 m • Final Depth: 1,500 m ‒ Size: 6.54 m x 2.44 m • Skips: 2 – 8.5 t skips • Hoisting: 2,000 tpd, 1,500 kW (2,000 hp) • Ventilation: 175,000 cfm Soledad Property – Kern County, California 10
  • Northgate Production Shaft Work • RB 1st leg completed 440 m • Ground support completed April 29 • Started RB 2nd leg 450 m • Pilot hole completed early November • Started reaming, expected to be completed mid February• 5.5 m raise bore shaft• Depth: 1,500 m • Headframe civil construction• Skips: 2 – 21 t skips completed on October 20• Hoisting: 7,000 tpd, 4,500 kW (6,000 hp), 6,000 tpd • Headframe structural steel ore & 1,000 tpd waste installation continues• Ventilation: 550,000 cfm • Electrical & Piping installation for Headframe has started Northgate Headframe • RB 3rd leg 610 m Soledad Property – Kern County, California 11
  • YD Early Ore OpportunityTransverse Longhole Stoping – UBZ Mining Block• Production from the initial two stopes began in the latter part of October 2012• Targeting mining 90,000 tonnes in Q4 2012• Drilled to 15 m centres 12
  • Section View of YD Early Ore in Q4Transverse Longhole Stoping – UBZ 3600 stope as of November 5 13
  • Open Pit Overview• Production – 2.25 years ‒ Low grade stockpile for ~2 years• 7.5 Mt of ore at 1.36 g/t Au ‒ Mill Feed 4.2 Mt @1.78 g/t Open Pit Operations ‒ Low grade stockpile 3.3 Mt @0.82 g/t• Strip Ratio 2.5:1• 8 m benches, Cat 777 trucks and 992 loaders• >1 Mt low grade ore stockpile 14
  • Young-Davidson Expansion Expansion Gold Production 300 Expansion Impact New Reserves Impact 250Gold Production (Koz) 200 150 100 50 0 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Ounces - Feasibility Ounces - Expansion 15
  • Young-Davidson Expansion Mill Ore Sources Tonnes per Day Q2 Q3 Q4 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2012 2012 2012 Underground Ore Open Pit Ore Stockpiled Ore Feasibility - UG Tonnes• LOM includes only Proven and Probable Reserves (46.6 Mt) 16
  • Young-Davidson Milestone DatesNorthgate headframe civil work / structural steel completed Q4-2012Northgate mechanical / electrical completed Q1-20132nd leg of shaft reaming completed Q1-2013Shaft waste handling / rockbreaker / loading pocket commissioned Q3-2013Shaft ore handling system / crusher commissioned Q3-2013Paste fill plant operation Q4- 2013Mill upgraded to 8,000 tpd Q1- 2014Mill Expansion Paste Fill Plant• $11-13 M • $40 M capex in 2013• Pebble recycle conveyor • Offsets requirement for additional tailings capacity• Additional tails line and pumps • Proceeding to detailed engineering• Upgrades to 1 pump and 2 pump motors • Commissioning anticipated for Q4 2013 17
  • Production and Guidance Q1-12 Q2-12 Jul-12 Aug-12 Sept-12Open Pit (tpd) 20,622 28,575 31,039 31,479 36,667Mill throughput (tpd) - 4,300 5,3001 5,4742 6,857Mill grade (g/t) - 1.15 0.88 0.92 1.63Recoveries - 83% 81% 83% 92%Production (gold ounces) - 11,950 3,766 4,156 9,903Cash Costs per gold oz. produced - - - - $63931. Including a 3-day maintenance shutdown2. Including a 2-day shutdown for SAG mill reline3. Attributable to the commercial production ounces (9,903 ounces) 1. Cash costs for the Young-Davidson mine are calculated on a per gold ounce basis, using by-product revenues as a cost credit. Production includes gold ounces only. 2. Includes pre-production, sustaining and accelerated underground capital infrastructure costs. 3. The following currency assumptions were used to forecast estimates: • 1:1 Canadian dollars to the US dollar 18
  • Rochelle Collins, Chief Geologist
  • Mineralization – Syenite-hostedCross section geology • General structure, detailed petrologic and structural studies 20
  • Mineralization – Property Cross Section XS 22815E Proterozoic Sediment • Over-turned sequence • Mineralization on structural footwall Mafic Volcanic • Stacked zones of mineralization • Unconformity • Logging challenges Timiskiming Sediment ‒ Mafic-sediment contact - Basal conglomerate Diabase ‒ Syenite-sediment contact - Blurred by Hem-kspar Resource alteration 250m - Quartz grains in sediment Syenite Looking West 21
  • Young-Davidson Site VisitDecember 10, 2012