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St. Augustine Gold & Copper Ltd. - April 2014
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St. Augustine Gold and Copper Limited (TSX: SAU) is a mining company developing the King-king project, one of the largest undeveloped copper-gold projects in the world, situated in Mindanao, ...

St. Augustine Gold and Copper Limited (TSX: SAU) is a mining company developing the King-king project, one of the largest undeveloped copper-gold projects in the world, situated in Mindanao, Philippines.
The Company’s objective is to bring the King-king project into commercial production in a timely and cost effective fashion, representing an opportunity to generate a superior return on investment for the shareholders.

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St. Augustine Gold & Copper Ltd. - April 2014 Presentation Transcript

  • 1. DEVELOPING THE KING-KING COPPER-GOLD PROJECT A Greenfield World Class Copper-Gold Porphyry in the Philippines KING – KING COPPER-GOLD PROJECT www.kingkingproject.com 1 TSX: SAU | www.sagcmining.com | December 2013
  • 2. FORWARD-LOOKING STATEMENTS This presentation contains “forward-looking statements” that wer e based on St. Augustine Gold & Copper Ltd’s expectations, estimates and projections as of the dates which those statements were made. These forward-looking statements include, among other things, statements with respect to St. Augustine Gold & Copper Ltd’s business strategy, plans, outlook and shareholder value, projections, targets, and expectations as to reserves, resources, results of exploration (including targets) and related expenses, mine development, mine operations, mine production costs, drilling activity, sampling and other data, recovery improvements, future production levels, capital costs, cost savings, cash and total costs of production of gold, expenditures for environmental matters, reclamation and other post closure obligations and estimated future expenditures for those matters, completion dates for the various development stages of projects, future gold prices (including the long-term estimated prices used in calculating mineral reserves), and currency exchange rates. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as “outlook,” “anticipate,” “project,” “target,” “believe,” “estimate,” “expec t,” “intend,” “forecast,” “should,” and similar expressions. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are inherently subject to known and unknown risks, uncertainties, and other factors that may cause St. Augustine Gold & Copper Ltd’s actual results, level of activity, performance, or achievements to be materially different from those expressed or implied by such forward-looking statements. A Preliminary Feasibility NI 43-101 Technical Report has been prepared by M3 Engineering and Technology with assistance from other companies with respect to the King-king project. This document was made public on SEDAR on November 1, 2013. As a consequence the King-king deposit is now considered a Mineral Reserve. A Mineral Reserve is defined as those parts of Mineral Resources which, after the application of all mining factors, result in an estimated tonnage and grade which, in the opinion of the Qualified Person(s) making the estimates, is the basis of an economically viable project after taking account of all relevant processing, metallurgical, economic, marketing, legal, environment, socio-economic and government factors. This Technical Report contains numerous estimates and assumptions that the authors believe to be reasonable but are still subject to all the risks referred to above. This presentation does not constitute or form part of, and should not be construed as, an offer, invitation, or inducement to purchase or subscribe for any securities nor shall it or any part of it form the basis of, or be relied upon in connection with, any contract or commitment whatsoever. NATIONAL INSTRUMENT 43-101 COMPLIANCE Mr. James J. Moore, P.E., the Company's qualified person for this project under NI 43-101, has reviewed and approved this presentation. 2
  • 3. INVESTMENT HIGHLIGHTS Feasibility Level Project - King-king is a greenfield copper-gold porphyry deposit with a 618M tonne reserve and a $2 billion NPV Near Term - Schedule demonstrates full Production in 2018 Social License - Local Government Units Endorsements facilitate EIS approval and completion of permitting process in 2014 Location and Scale - King-king is located along the Philippine Fault Line, known for mineralization that occurs as copper-gold porphyries, epithermal gold veins, and skarn. The Tenement has tremendous upside potential Experienced Management - Experienced board and leadership team with mine operations, capital markets and regional expertise 3
  • 4. LOCATION OF THE KING-KING PROJECT Located near Davao City with a population of ~1.5M people • Skilled workforce willing and available to support development and operations • 35 km direct/92km by road from Davao City KING-KING COPPER-GOLD PROJECT King-king is a tide water proximity deposit • Located 12 km from the coast • Supports a seaside power plant and port facility Local weather is ideal for the development of King-king • Recent hurricanes have been very far north of King-king • Hurricanes have never been recorded as far south as King-king Philippine Fault Line Other Mining Projects 4 Located LOCATED FOR DEVELOPMENT AND KING-KING IS IDEALLY Along the Mineral Rich Philippine Fault Line OPERATIONS 4
  • 5. KING-KING FEASIBILITY 618Mt proven and probable mineral reserve Contained 4.09B lbs Cu 7.85M oz Au • World Class Cu / Au Production • 120K tonnes Cu / Year 1st 5 years • 360K oz Au / Year 1st 5 years • 100k TPD • 40K TPD On-Off Pad Leach • 60K TPD Flotation Mill / Agitated Tails Leach • 22 Year mine life • Mineral Production Sharing Agreement (MPSA) on King-king • 25 Year Renewal in 2017 • 1.15 billion tonne resource • November 2013 PFS KING-KING WILL BE A WORLD CLASS CU / AU PRODUCER 5
  • 6. PROJECT ECONOMICS Annual Revenue ($M) Pre-Feasibility Study 43-101 November 2013 $1.8B 24.0% 2.4 Year 1 - 10 $1,600 $1,200 after-tax NPV8% $1,468 $1,338 $1,231 $1,050 $969 $879 $699 $800 $681 $679 $644 $400 IRR year payback period $0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Avg. 3-yr Revenue Avg. 5-yr Revenue $1,346M $1,211M PFS metal price assumptions: copper $3.00/lb, gold $1,250/oz HIGHER GRADEBullion Drives5 YEARS DRIVES PAYBACK High-grade Gold IN INITIAL Project Payback Period 6 6
  • 7. REVENUE ALLOCATION BY PRODUCT TOTAL PROJECT REVENUE BY METAL TOTAL PROJECT REVENUE BY PRODUCT Gold Bullion 4% $0.7B Silver 1% Gold 41% Copper 58% $621 Allocated Cost LOM C-1 $1.49 Allocated Cost LOM C-1 Copper Cathode 20% $3.1B COPPER 58% / GOLD 22-year Mine Life $15.4 Billion of Revenue over41% ALLOCATED Concentrate 76% Cu/Au NSR $11.6B 7
  • 8. CAPITAL AND OPERATING COSTS Total Initial Capital $2,042M Mine / Mill / Leach Pad / TSF / Power Plant / Infrastructure LOM Sustaining Capital $249M Operating Costs / Lb. Copper C1 Cu: $1.09 1s t 5 Years / $1.49 LOM Allocated Net of By-Products C1 Au: $454 1s t 5 Years / $621 LOM Allocated Mining Cost / Tonne Mined $1.93 Milling Cost per Tonne $5.28 Strip Ratio 1s t Five Years 0.75 LOM 1.06 KING-KING PROJECTED TO BE A LOW COST PRODUCER 8 8
  • 9. TENEMENT OPPORTUNITY Oxide Prospects: Testing confirms Au assays @ 2.227.7/g/t Au* Notable intercept with 81 continuous meters averaging: .44% total copper and .34 g/t gold* Pit Five additional holes demonstrate high potential* Tenement Area 1,656 Hectares * See the press release dated March 1, 2012 SIGNIFICANT Upside Resource Potential Significant UPSIDE RESOURCE POTENTIAL 9 9
  • 10. JV RESTRUCTURING Post-Restructuring Project Ownership Nationwide Development Corp. (NADECOR) Post-Restructuring Capital Structure St. Augustine Gold & Copper Ltd. (TSX Listed Company) 60% Mining Co. 100% Ore Sales Agreement Shares O/S Outstanding SAU Shares ~ 488M ~ 325M Total Shares (Est.) 40% Ownership JV Re-structuring Shares Asia-Pacific Dutch B.V. (Holding Company: NetherlandsPhilippines Tax Treaty) ~ 812M Issued upon MPSA assignment Est. Q2 2014 Milling Co. NEW STRUCTURE FACILITATES PROJECT DEVELOPMENT 10
  • 11. UPCOMING MILESTONES 2014 • Complete Detail Engineering and BFS • Permitting Complete • • Construction of King-king Land Acquisition for Infrastructure • 2015 - 2018 Secure Project Funding 2017 First Production of Cathode Copper 2018 Mill Production Starts Moving Towards Production 11 11
  • 12. CURRENT CAPITAL STRUCTURE Ticker SAU.T Price (as of November 22, 2013) $0.20 Shares Outstanding 487.76M Fully Diluted 509.12M Market Cap. $97.55M Cash (as at September 30, 2013) $9.3M Major Shareholders % Russell Mining & Minerals 30.0% Queensberry Mining & Development Corp. 21.1% B2Gold 13.8% Institutional Owners 12.9% STRONG INVESTOR Production Moving Towards COMMITMENT 12 12
  • 13. SUPPLEMENTAL INFORMATION 13
  • 14. CONTACT INFORMATION Kristi Harvie St. Augustine Gold & Copper Manager Investor And Corporate Affairs T: 509-343-3193 E: kharvie@sagcmining.com Marina Proskurovsky TMX Equicom Investor Relations T: 416-815-0700 X 288 E: mproskurovsky@tmxequicom.com 14 14
  • 15. LEADERSHIP TEAM Board of Directors Management Robert Russell, Chairman Former Ex. VP and GM at Freeport Copper and Gold, VP at Freeport Indonesia, GM at Nchanga Division, Zambian Consolidated Copper Mines, Chairman/CEO/Founder of General Moly/Idaho General Mines Andrew Russell, President & CEO Founder of Russell Mining & Minerals, Former VP Project Development of General Moly, Maintenance Superintendent/Mechanical Engineer of Kennecott Copper Refinery, Business Leader for Honeywell International Manuel Paolo A. Villar Current Director, President and Chief Executive Officer of Vista Land and Lifescapes, Inc., Director of Starmall, Inc. Former Head of Corporate Planning for Crown Asia. Graduate of Wharton School of the University of Pennsylvania, B.Sc. Tom Henderson, COO Former VP & GM of Coeur Alaska’s Kensington Gold Mine, Director of Operators/Mine Manager Quadra Mining’s Robinson Mine, Technical Service Superintendent of Barrick’s Goldstrike Nevada Operations, Mine Manager of Freeport McMoRan Inc.’s Grasberg Mine Terry Krepiakevich Current Senior Advisor to SouthGobi Resources Ltd, Former CFO of SouthGobi Resources Ltd., Director/Audit Committee Chair of Alexco Resource Corp., Western Lithium USA Corp., Concordia Resource Corp., & NovaCopper Inc. Jim Moore, VP Technical Former Technical Project Manager at General Moly, ZCCM – Nchanga Division and Phelps Dodge, +34 years of experience in mining, metallurgical design, engineering/operations, leaching, SX/EW, concentrating, smelting & refining Max V. Anhoury Current Global Sales and Marketing Executive at Lovation, Inc., 20 years of operational, sales and marketing experience Louis Lazo, VP Human Resources Previously an independent Human Resources consultant, Former Director of International Human Resources at Newmont Mining Thomas L. McKeirnan Current Senior Vice President, General Counsel and Secretary of Red Lion Hotels Corporation, Former Vice President, General Counsel and Secretary of Red Lion Hotels Corporation Kee Ming Chi, General Counsel Former Counsel at O’Melveny and Myers, LLP - specializing in infrastructure, energy, natural resources and technology. Practicing in England, Singapore and Hong Kong with experience in numerous jurisdictions JuliAnn Issler, Interim CFO Certified Public Accountant. Member of AICPA, +15 years in public practice EXPERIENCED SENIOR LEADERSHIP TEAM 15 15
  • 16. PROVEN AND PROBABLE RESERVES Reserve Classification Ktonnes Tot Cu (%) Sol Cu (%) Gold (g/t) NSR (US$) Heap Leach Ore 17,791 0.340 0.197 0.132 16.53 Oxide Mill Ore 21,674 0.514 0.328 0.849 45.36 Sulfide Mill Ore 52,942 0.305 0.044 0.543 24.92 Low Grade Mill Ore 6,734 0.184 0.027 0.218 10.80 99,141 0.349 0.132 0.514 26.92 Heap Leach Ore 77,373 0.305 0.172 0.145 14.81 Oxide Mill Ore 45,440 0.393 0.259 0.745 35.30 Sulfide Mill Ore 345,715 0.288 0.037 0.398 20.48 Low Grade Mill Ore 50,247 0.191 0.023 0.211 10.93 518,775 0.290 0.075 0.373 20.01 Heap Leach Ore 95,164 0.311 0.177 0.143 15.13 Oxide Mill Ore 67,114 0.432 0.281 0.779 38.55 Sulfide Mill Ore 398,657 0.290 0.038 0.417 21.07 Low Grade Mill Ore 56,981 0.190 0.023 0.212 10.91 Total Proven/Probable Reserve 617,916 0.300 0.084 0.395 21.12 Proven Mineral Reserve Total Proven Reserve Probable Mineral Reserve Total Probable Reserve Proven/Probable Mineral Reserve 16 16
  • 17. MEASURED, INDICATED AND INFERRED RESOURCES Notes: KING-KING MINERAL RESOURCE Ore Tot Cu Sol Cu Gold Copper Leach Resource is at a 0.08% Total Copper Cutoff Grade Ktonnes (%) (%) (g/t) Mill Ore: Measured Resource 20,961 0.439 0.317 0.205 Eq Cu (sulfide) = Total Copper + 0.686 x Gold, Cutoff = 0.15% Eq Cu Indicated Resource 75,214 0.347 0.228 0.155 Alternatively, as Equivalent Gold: Meas/Ind Resource 96,175 0.367 0.247 0.166 Eq Au (Oxide) = Gold + 0.839 x Total Copper, Cutoff = 0.22 g/t Eq Au Inferred Resource 26,027 0.266 0.157 0.093 Eq Au (Sulfide) = Gold + 1.458 x Total Copper, Cutoff = 0.22 g/t Eq Au Ore Type/Resource Class Copper Leach Resource Eq Cu (oxide) = Total Copper + 1.192 x Gold, Cutoff = 0.26% Eq Cu Total Material in Cone Shell 1,736,371 Ktonnes Ore Eq Cu Tot Cu Sol Cu Gold Eq Au Waste:Ore Ratio 0.77 (Inferred as Waste) Ktonnes (%) (%) (%) (g/t) (g/t) Waste:Ore Ratio 0.47 (Inferred as Ore) Oxide Mill Ore 21,671 1.321 0.382 0.191 0.787 1.107 Sulfide Mill Ore 80,829 0.551 0.258 0.037 0.427 0.803 Total Measured Resource 102,500 0.714 0.284 0.070 0.503 0.868 Oxide Mill Ore 62,858 0.955 0.270 0.139 0.575 0.802 Sulfide Mill Ore 719,560 0.439 0.230 0.029 0.305 0.640 Total Indicated Resource 782,418 0.480 0.233 0.038 0.327 0.653 Ore Type/Resource Class Mill Resource Mea s ured Mi neral Resource Indicated Mi neral Resource Mea s ured/Indicated Mineral Resource Oxide Mill Ore 84,529 1.049 0.299 0.152 0.629 0.880 Sulfide Mill Ore 800,389 0.450 0.233 0.030 0.317 0.657 Total Meas/Ind Resource 884,918 0.507 0.239 0.042 0.347 0.678 Oxide Mill Ore 17,457 0.854 0.234 0.125 0.520 0.716 Sulfide Mill Ore 155,513 0.373 0.202 0.024 0.249 0.544 Total Inferred Resource 172,970 0.422 0.205 0.034 0.276 0.561 Inferred Mineral Resource 17 17
  • 18. PROCESS & PLANT PLS POND 18
  • 19. KING-KING GEOLOGY SULFIDE (HYPOGENE) MINERALIZATION • • • Comprises approximately 85% of proven and probable reserve Copper minerals include primarily chalcopyrite with lesser amounts of bornite and chalcocite Gold occurs in free form in close association with bornite and exsolution intergrowths OXIDE MINERALIZATION • • • Comprises approximately 15% of proven and probable reserve Copper minerals include partially oxidized chalcopyrite and bornite along with weak acid soluble silicates and phosphates Gold is relatively abundant and is generally free gold 19 19
  • 20. TOTAL CONCENTRATE PRODUCTION Copper in Concentrate 70,000 Avg. Production in Years 1 -5 (full production) 60,000 50,000 52.3k tpa 40,000 Average Production over LOM 42.3k tpa 30,000 20,000 10,000 0 -1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 Gold in Concentrate 500,000 400,000 Avg. Production in Years 1 -5 (full production) 300,000 324k oz/yr. 200,000 Average Production over LOM 213k oz/yr. 100,000 0 -1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 20 20
  • 21. CATHODE COPPER AND FREE GOLD PRODUCTION Gold Bullion 50,000 40,000 Avg. Production in Years 1 -5 (full production) 36k oz/yr. 30,000 Average Production over LOM 20,000 23.6k oz/yr. 10,000 0 -1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 Cathode Copper 21 140,000 120,000 100,000 Avg. Production in Years 1 -5 (full production) 80,000 70k tpa 60,000 Average Production over 9 years 40,000 50.2k tpa 20,000 0 -1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 21 21
  • 22. COMMUNITY RELATIONS • Listed as a top 3 priority project by the Philippine government due to potential for community benefit • Full endorsements provided by both Local Government Units and Indigenous Peoples • Community initiatives include: • Partnership with Technical Education & Skills Development Authority (TESDA) • Medical outreach clinics and programs to communities in Compostela Valley • Nutrition programs to school children • Provide funding for affordable housing units KING – KING COPPER-GOLD PROJECT www.kingkingproject.com 22
  • 23. DETAILS OF PHILIPPINE MINING LAW Foreign Technical Assistance Agreement (FTAA) The foreign equity limitation is removed. 100% foreign ownership is allowed. Mineral Production Sharing Agreement (MPSA) Can only be held by corporations whose capital is at least. 60% Filipino-owned (nationality requirement). Ore Sales Agreement Chapter 9, Section 56 of the Philippine Mining Law: A foreign-owned/-controlled corporation may be granted a mineral processing permit Mining Company and Milling Company There is no restriction on separating the mining company and milling company as distinct and separate operations. The Philippine Mining Law allows the milling company to be 100% foreign owned 23 23