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    Aviongold Aviongold Presentation Transcript

    • Company Presentation September 2009 New Gold Producer in West Africa with Exploration Upside
    • Forward-Looking Statement This press release contains forward-looking statements under Canadian securities legislation. Forward-looking statements include, but are not limited to, statements with respect to the development potential and timetable of the Mali projects; the Company’s ability to raise additional funds as necessary; the future price of gold; the estimation of mineral resources; conclusions of economic evaluation (including scoping studies); the realization of mineral resource estimates; the timing and amount of estimated future production, development and exploration; costs of future activities; capital and operating expenditures; success of exploration activities; mining or processing issues; currency exchange rates; government regulation of mining operations; and environmental risks. Generally, forward-looking statements can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, 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 statements are based on the opinions and estimates of management as of the date such statements are made. Estimates regarding the anticipated timing, amount and cost of mining at the Mali projects are based on assumptions underlying mineral resource estimates and the realization of such estimates; results of previous mining activities at the projects, and detailed research and analysis completed by independent of the Company; research and estimates regarding the timing of delivery for long-lead items; knowledge regarding the factors consultants and management involved in building a mine and other factors that will be described in the technical report summarizing the scoping study that will be filed under the profile of the Company on SEDAR. Capital and operating cost estimates are based on results of previous mining activities, research of the Company and independent consultants, recent estimates of construction and mining costs and other factors that are set out in the scoping study. Production estimates are based on mine plans and production schedules, which have been developed by the Company’s personnel and independent consultants. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements, including but not limited to risks related to: timing and availability of external financing on acceptable terms; unexpected events and delays during construction, expansion and start-up; variations in ore grade and recovery rates; receipt and revocation of government approvals; actual results of exploration and mining activities; changes in project parameters as plans continue to be refined; future prices of gold; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes and other risks of the mining industry. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company does not undertake to update any forward-looking statements except in accordance with applicable securities laws. Investors are advised that National Instrument NI 43-101 of the Canadian Securities Administrators requires that each category of mineral reserves and mineral resources be reported separately. Mineral resources that are not mineral reserves do not have demonstrated economic viability. Cautionary Note to U.S. Investors Concerning Estimates of Measured, Indicated or Inferred Resources The information presented uses the terms “measured”, “indicated” and “inferred” mineral resources. United States investors are advised that while such terms are recognized and required by Canadian regulations, the United States Securities and Exchange Commission does not recognize these terms. “Inferred mineral resources” have a great amount of uncertainty as to their existence, and as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian rules, estimates of inferred mineral resources may not form the basis of feasibility or other economic studies. United States investors are cautioned not to assume that all or any part of measured or indicated mineral resources will ever be converted into mineral reserves. United States investors are also cautioned not to assume that all or any part of an inferred mineral resource exists, or is economically or legally mineable. 2
    • Agenda The opportunity The company The growth plan The execution 3
    • Achievements In just over one year Avion  Acquired a previous producer for a substantial discount  Completed >30,000 metres exploration drilling  Developed a new mine plan and raised US$ 8 million to start production  Commenced production mid-February, 2009 – Targeting 55,000 ounces Au @ US$ 540/oz op cost in 2009  Merged with Dynamite Resources  Announced a LOI to acquire 75% of a 324,000 oz Au resource  Completed new technical reports – reported increase in mineral resources – M&I to 1.2 million ounces @ 3.48 g/t Au – Inferred to 1.14 Million ounces @ 3.5 g/t Au  Initiated project expansion studies ~ 200,000 oz Au per year 4
    • Segala Blast 5
    • Current Segala Main Pit Mining Segala Mine Plan 6
    • The Avion Story The Setting  Gold in a secular bull market – gold shares outperform gold – shares of consolidators perform best The Company  Avion is a well-financed new producer in Mali, West Africa – no debt The Opportunity  Large resource supports expansion plans - 200,000 ozs Au per year by 2011 possible  Regional consolidation underway 7
    • Agenda The opportunity The company The growth plan The execution 8
    • The Avion Advantage 1. A new, well funded player Emerging, 2. Good neighbourhood high growth regional consolidator 3. Strong asset base 4. Attractive growth profile 9
    • 1 New Player Avion Gold Corporation’s Capital Structure Exchange TSX Venture Ticker AVR Shares Outstanding – basic 210 million Fully diluted 269 million 52-Week High/Low $0.41 - $0.04 Recent Price (Aug 31, 2009) $0.30 Market Capitalization $63.0 million 10
    • Avion Share Price Graph 11
    • 2 In a Good Neighbourhood Mali: Africa’s Third Largest Gold Producer Anglogold Ashanti / IAMGOLD’s Sadiola Mine produces 445,000 oz of gold per year MALI Gounkoto ~ 3 M oz Inf 2.8 M oz. Randgold’s Loulo Mine produces 270,000 oz of gold per year ~ 3.4 Inf M oz 35 M oz of Resources in Western Mali Gold Belt 12
    • 3 Strong Assets Large, Target-Rich Property with Central Milling Complex Approx. 100 km2 Mill Roads Tailings pond Power 3 km Water 13
    • 3 Strong Assets $US100M Assets Acquired for <$0.20 on the Dollar (2008) Camp – Houses 100 staff Milling Facility – 2,100 tpd Power Supply Fuel Supply – Contracted Tabakoto Pit – 300 days water supply 14
    • 3 Strong Assets May 2009 Resource Base Updated – Mineral Resources* Tonnes Grade (g/t Au) Ounces (Au) Measured & Indicated (1 to 2 g/t Au Cut- 10,820,000 3.48 1,211,300 off) Inferred (1 to 2 g/t Au Cut-off) 9,990,000 3.50 1,139,000 Mineral Resources 0.5 g/t cut-off Tonnes Grade (g/t Au) Ounces (Au) Measured & Indicated 18,440,000 2.55 1,510,000 Inferred 17,680,000 2.58 1,467,000 * The resource study was prepared by Milko Rivera, P.Eng., and Farshid Ghazanfari, GIT, with a third party review and initial open pit versus underground mining reviews carried out by Eugene Puritch, P.Eng., of P&E Mining Consultants Inc. Note that open pit mineral resources were calculated at a cut-off of 1.0 g/t Au and underground mineral resources were calculated using a 2.0 g/t cut-off. 15
    • 4 Growth Attractive Growth Profile Timing is ideal – Producing since February 16th , 2009 – Target to produce 55,000 ozs in 2009 @ <US$540/oz cash cost No capital requirements Five year tax exoneration period for Segala Project debt to be paid to Avion before dividends to Mali Gov. Significant production growth – with limited capex Outstanding reserve and resource growth potential Large land position West African consolidator Completed acquisition of Dynamite Resources Great Quest deal nearing completion Acquired 16% of Midlands Minerals 16
    • 4 Growth Production Growth Starts Now! Au Production and Cash Costs Production (000 Au oz) Cash Cost (US$) 120 $550 100 Cash Costs $500 80 $450 60 $400 40 $350 20 Au Production 0 $300 2009 2010 2011 2012 Segala (OP) Segala (UG) Tabakoto (OP) Stockpile Mine plan presented in the scoping study prepared by M. Rivera, P. Eng, (independent) with the support of T, Mann, P.Eng. (independent) and Andrew Bradfield, P.Eng. (COO). Resource estimate prepared by Eugene Puritch and Antoine Yassa of P&E Mining Consultants. Using Canaccord Adams Research’s gold price forecast of US$900/oz in 2009, US$850/oz in 2010, US$800/oz in 2011 and US$750/oz in 2012, open pit and underground recoveries of 90% and 85%, respectively, UG equipment will be leased, UG mining by mechanized long hole retreat 17
    • 4 Growth Immediate and Growing Cash Flow Leverage to Gold Price $M of Cash Flow $50 $750/oz $850/oz $950/oz $40 $30 $20 $10 $0 2009 2010 2011 2012 @ US$ 925 Au ~ US$ 16 m project net cash flow in 2009 18
    • Agenda The opportunity The company The growth plan The execution 19
    • Resource Expansion Potential Four Target Concepts 1 Segala at depth – underground potential 2 Tabakoto at depth, and around pit 4 Approx. 100 km2 3 Remainder of property – numerous targets 4 4 New Properties 1 3 2 3 3 km 4 20
    • 1. Segala at Depth/Along Strike Plan View Target Area Target Area Target Area Section Looking North Target Area Target -400m Area Target Area 21
    • 1. Segala Main 2009 Drilling Segala Main Zone 22
    • 1. Segala Main 2009 Drilling Close-up (18.0) 23
    • 2. Expansion Potential Around Tabakoto Pit 4.55 g/t Au/22.0 m 4.90 g/t Au/13.8 m 4.89 g/t Au/26.7 m 12.49 g/t Au/24.4 m 28.67 g/t Au/15.9 m 22.86 g/t Au/48.0 m 108.68 g/t Au/2.0 m 5.01 g/t Au/34.0 m 24
    • 2. Tabakoto at Depth/Along Strike Plan View 500 m  Modelled zones at Tabakoto Tabakoto Pit Section View  Open at depth  Potential along strike 25
    • 3. Target-Rich Exploration Property (100 km2) Segala Deposit 8.51 g/t Au/10.5m 3.88 g/t Au/49.3m 1.33 g/t Au/40.0m 3 km 2.72 g/t Au/73.5m 15.27 g/t Au/3.7m 13.56 g/t Au/22.5m Dar Salam 67.08 g/t Au/4.0m 7.41 g/t Au/11.5m 15.56 g/t Au/24.0m 11.6 g/t Au/13.8m Tabakoto Mine Dioulafoundou  75% of drill holes have 10.96 g/t Au/6.0m intersected gold! Fougala Great Quest Property 26
    • 4. Great Quest LOI  Great Quest zones line up with mineralized trends on Tabakoto property  Total Project (Avion + Great Quest) Resource 3.08 M ozs Djambaye 2 Inferred Resource – 2,574,000 tonnes @ 3.92 g/t Au 324,000 oz 27
    • Agenda The opportunity The company The growth plan The execution 28
    • Production to end of June, 2009 YTD EO June Variance Unit Total Budget Ore Mined tonnes 166,000 255,200 (89,240) Waste Mined tonnes 1,177,860 1,984,000 (806,140) Total Mined tonnes 1,343,860 2,239,200 (895,380) MALI Stockpile Reclaim tonnes 44,338 50,000 (5,662) Mill Feed tonnes 258,611 255,200 3,411 Grade g/t Au 2.22 3.20 (1.01) Recovery % 93.6 90.0 3.6 Gold Produced oz 17,205 23,641 (6,436) Gold Sold oz 17,205 23,641 (6,436) Gold Price Realized US$/oz 927 825 102 OPEX per Tonne Milled US$/tonne 47.69 55.92 (8.23) OPEX per Ounce US$/oz 480.00 603.68 (123.68) 29
    • Project Timeline 2008 2009 2010 Tabakoto and Segala Gold Projects Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Acquisition Production Start Achieve/Sustain commercial production Technical Reports Historic NI 43 - 101 Technical Report Updated Resource Estimates for Segala and Tabakoto Resource Estimate for Tabakoto Cross Structures Resource Estimate for Dar Salam Resource Estimate for Dioulafoundou Exploration Program Segala / Tabakoto Drilling Regional Exploration Verification of ROM Pad Stockpile and Tailings Grades Ground magnetic surveys Leach Test Work on Segala Production Growth Studies Potential capacity upgrade completed by 2010 year end Merger and Acquisition reviews 30
    • Current Low Valuation Avion’s market cap is less than the cost of putting the project into production - Seriously undervalued P / CFPS P / NAV 16.00x 1.80x Multiples 13.88x 1.60x 1.57x 14.00x Versus 12.00x 1.40x 10.91x 1.20x Peers 10.00x 1.00x 8.00x 0.80x 0.73x 6.00x 0.60x 4.00x 0.40x 2.40x 1.60x 0.20x 2.00x 0.00x 0.00x 2009E 2010E P / NAV 5% US$750 LT Au Avion Producer Peers Avion Producer Peers Note: Alamos, Centerra, Eldorado Gold, Gammon Gold, Golden Star, Northgate, Randgold, Redback Source: Canaccord Adams Research and public market research (updated August 18) 31
    • Why Invest in Avion Resources? Favourable Consolidators gold dynamics perform best Emerging W. African Consolidator MALI Unknown and New producer Undervalued – into bull market Attractive growth profile 32
    • The Avion Advantage Relatively unknown and undervalued Delivering gold into the heart of the bull market – mill just started! No capital requirements Tax exoneration/project debt re-payment MALI Significant growth potential (with limited capex) Outstanding reserve and resource growth potential Value driven West African consolidator 33
    • Strong Board of Directors Stan Bharti, Executive Chairman Mr. Bharti is a professional engineer and is currently the President of Forbes & Manhattan, Inc., a private merchant bank operating in Canada, the United States and Western Europe. From February 2002 to April 2006, he was Chairman and a director of Desert Sun Mining Corp., a Toronto Stock Exchange-listed mining company which was acquired by Yamana Gold Inc. He has over 25 years of experience in operations, public markets and finance. Mr. Bharti is also a director of several public and private companies. Bruce Humphrey, Director Mr. Humphrey brings a lifetime of mining industry experience, including having served as a former Chief Operating Officer at Goldcorp Inc. and most recently as President and Chief Executive Officer of Desert Sun Mining Corp. prior to its sale to Yamana Gold Inc. John Begeman, President, CEO and Director Mr Begeman is a mining engineer with over 30 years of mining experience. He is currently the Chief Executive Officer of Valencia Ventures Inc. and was recently the Operating Officer of Zinifex Canada Inc. He has previously served as Vice President, Western Operations of Goldcorp Inc. where Mr. Begeman ran the Wharf Mine open-pit, a consistent low-cost producer Lewis Mackenzie, Major General (ret'd), Director General MacKenzie is a distinguished Canadian that retired from the Canadian Forces in 1993 after 36 years of service. One of his many accomplishments includes commanding Sector Sarajevo, Yugoslavia, under the United Nations Protection Force in 1992. General MacKenzie brings a variety of skills to the board reflective of the breadth of his experience in the Canadian Forces and in his role on numerous boards and advisory assignments since his retirement. Gerald McCarvill, Director Gerald McCarvill has more than 20 years experience in the financial sector holding senior positions with major investment firms including as a member of the executive committee of Wood Gundy. Most recently, Mr. McCarvill was CEO of McCarvill Corporation, a diversified financial services company and previously was CEO of Repadre Capital Corporation, a mining royalty company. Don Dudek, Senior VP Exploration and Director Mr. Dudek has held increasingly senior roles with junior to senior exploration and mining companies over the past 25 years. Most recently Mr. Dudek served as Exploration Manager for Aur Resources Inc. which provided him the opportunity to evaluate 100’s of grass roots to advanced projects in Latin America and Africa. During his career Mr. Dudek was part of the team that discovered 7 new base and precious metal deposits in Canada, one of which has been mined. He also supervised work at Teck Cominco’s high profile La Verde Cu-porphyry deposit in Mexico. Mr. Dudek holds a B.Sc. Geology (honors) from the University of Saskatchewan. Honorable Pierre Pettigrew, Director The Honorable Pierre S. Pettigrew has had a most distinguished career as a Canadian federal cabinet minister, serving as Minister of Foreign Affairs and Minister for International Trade in his last positions in public office. Mr. Pierre Pettigrew also served as Minister of Health, Minister of Intergovernmental Affairs, Minister of Human Resources Development and Minister of International Cooperation. As a cabinet minister, he chaired numerous working groups on difficult international trade issues and lead trade missions to China, India, Russia, Germany, Algeria, Morocco, South Africa, Nigeria, Mexico, and other countries. From 1985 to 1995, he was an International Business Consultant with Deloitte. 34
    • Experienced Management Team John Begeman, President, CEO and Director (see “Board of Directors”) Rene Bharti, VP Corporate Development Mr. Bharti has held roles in several public and private companies, including those in the resource, technology, and entertainment sectors. Previously, Mr. Bharti also served as Vice President of Business Development for a publicly listed resource company with gold assets in the former Soviet Union. Mr. Bharti holds a Bachelor of Commerce (Honors) degree from Queen’s University. Don Dudek, Senior VP Exploration and Director (see “Board of Directors”) Greg Duras, CFO Mr. Duras joined Avion Resources Corp. in May 2008, bringing with him more than a decade of corporate and project finance experience in the resource sector. Prior to assuming this role, he held the position of Vice President of Finance and Administration at S.C. Rosia Montana Gold Corporation S.A. (RMGC), a mineral exploration and mining development company based in Romania with responsibility for financial reporting, project financing, taxation, auditing and budgeting activities. Prior to RMGC, Mr. Duras held a number of senior finance roles, including Controller of TSX-listed Gabriel Resources Ltd. and High River Gold Mines Ltd. Mr. Duras is a Certified General Accountant and a Certified Professional Accountant, and holds a Bachelor of Administration from Lakehead University. Andrew Bradfield, Chief Operating Officer Andrew Bradfield has over 26 years of operations, technical, and management experience in the mineral resource industry. He has held positions at mines in Australia, Canada, China, Ethiopia, the Philippines, South Africa and Sweden. His experience includes start-up, development, operations, as well as technical and financial evaluations. Mr. Bradfield was most recently VP, Operations for TVI Pacific. Prior to joining TVI, he was the Chief Operating Officer for a mining and exploration company, which operates a diamond mine, and explores for diamonds and gold in China. He holds a Bachelor of Science (B.Sc. with honours) in Mining Engineering from Queen’s University, Canada. Chris Bradbrook, M.Sc. VP Strategic Development 30 years experience in Mining and Financial Industries. Demonstrated skills in development, management and growth of junior mining companies through application of strong financing, strategic and marketing skills. Founder of New Gold Inc., for which he raised $500 million. Former Vice President, Corporate Development for Goldcorp Inc. during company's most explosive growth phase. 35
    • Contact: Rene Bharti VP Corporate Development Tel: (416) 861-5876 rene@avionresources.com Don Dudek, P.Geo, the Senior Vice President, Exploration of the Company and qualified person under National Instrument 43-101, has reviewed the scientific and technical information in this presentation 36