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    Eagle mtnfeb13cp Eagle mtnfeb13cp Presentation Transcript

    • Gold in Guyana –Working to become a mid-tier gold producer in 2014. February 2013 1
    • DisclaimerSome statements in this presentation contain forward-looking information. We have identified such statements with as asterisk for your ease of identification offorward looking-information. These statements include, but are not limited to, statements with respect to the expected benefits from having a management teamseeking to aggressively grow the Company into a mid tier gold producer through the exploration and development of existing assets, the completion ofthe acquisition of a significant interest in the Eagle Mountain Project and the development potential of the Companys properties. Specifically, any statementsregarding the potential increase of the Company’s inferred resource at the Eagle Mountain Project and the goals and objectives of the Company are by theirnature forward looking information. These statements address future events and conditions and, as such, involve known and unknown risks, uncertainties and otherfactors which may cause the Company’s actual results, performance or achievements to be materially different from any future results, performance orachievements expressed or implied by the statements.General risk factors and assumptions include, among others, the effects of general economic conditions, the price of gold and other metals, changing foreignexchange rates and actions by government authorities, uncertainties associated with legal proceedings and negotiations, competition for resources, andmisjudgements in the course of preparing forward-looking information.Specific risk factors include risks associated with the ability obtain any necessary approvals, waivers, consents and other requirements necessary or desirable topermit or facilitate the development of the Company’s properties, the risk that any applicable conditions of the acquisition of an interest in the Eagle MountainProject may not be satisfied, risks associated with project development; the need for additional financing; operational risks associated with exploration activitiesand results, mining and mineral processing; environmental liability claims and insurance; reliance on key personnel; the potential for conflicts of interest amongcertain officers, directors or promoters of the Company with certain other projects; the volatility of the Company’s common share price and volume; taxconsequences; and other risks and uncertainties.Eagle Mountain is in the exploration stage only and is without a known body of commercial ore. An increase in the current inferred resource will only occur iffavourable exploration results are obtained. The business of exploring for minerals involves a high degree of risk.Any forward-looking information contained in this presentation is based on the geological interpretation of results obtained from exploration activities conductedon the Company’s properties to date, including geological and geophysical surveys, sampling and mapping programs and drilling results. Results are interpretedby the Company’s management and staff and future programs and plans are formulated based on such interpretations. In making statements that containforward-looking information, management assumes that the results are accurate and will be verified by independent examination, that in country conditions andin the state of the financial markets remain somewhat constant and that management has the technical and financial capability and expertise to achieve theCompany’s growth plans. Forward-looking statements are made based on managements beliefs, estimates and opinions on the date that statements are madeand the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change,except as required by law. In accordance with good corporate governance procedures, management constantly monitors and re-assesses the Company’sactivities, results achieved and future plans. In the event management forsees or experiences material changes to the Company’s business and future plans, it willupdate forward looking statements accordinglyEach recipient of this document accepts that no representation or warranty is made concerning the information herein nor is any liability accepted in respectthereof by Stronghold Metals, or any other shareholder (present or future), or Director, Officer, advisor, or by any of their respective affiliates; Company Copyrightclauses are valid in this case. Content and slides from this presentation are not allowed to be copied or distributed otherwise, without the written consent of theCompany.*Denotes forward-looking information. 2
    • Investment Highlights• 100%-owned advanced Eagle Mountain gold project in Guyana – mining friendly, English-speaking jurisdiction with stable democracy based on British law.• IAMGOLD, largest shareholder and strategic partner, holds 14.93% of company.• Support from institutional shareholder Sprott Asset Management.• Eagle Mountain project contains near-surface 980,000-ounce gold deposit (NI 43-101-compliant)• Existing resource covers just 250 hectares inside 5,050-hectare property. 3
    • Investment Highlights – continued• Deposit is open in three lateral directions and at depth.• Very good gold grade, suitable for open-pit production.• Near-term, low-cost production potential: Gold starts at surface.• Long-term operations: Huge potential for large, economic gold resource.• Existing nearby infrastructure.• Proven, experienced leadership and operating team. 4
    • Mission and StrategyMission: To leverage strong gold environment and commenceproduction, generating cash flow to accelerate to mid-tier producer.Strategic Timeline:Q4 2012  Successfully expanded gold resource. Updated NI 43-101-compliant resource represents 34% increase from November 2010 resource outline.Q1 2013 o Commence Environmental Impact Assessment (EIA) report in support of 2013 mining permit application. Ensure compliance with all Guyanese environmental regulations and global best practices. o Commence Scoping Study/Preliminary Economic Assessment (PEA). 5
    • Strategic Timeline – continuedQ1 2013 (continued) o Commence engineering, mineralogical and metallurgical studies. o Discussions and legal on entry into other small-scale gold production opportunities in Guyana.Q2 2013 o Complete independent Scoping Study and Economic Assessment Report. Costing model to support initial production of 35,000 to 45,000 ounces gold annually. o Commence 2013 dense resource-outline drilling at Eagle Mountain. o Commence full Feasibility Study based on Scoping Study results. o Pursue further technical engineering tests as part of Feasibility Study work. 6
    • Strategic Timeline – continuedQ3 2013 o Commence discussions regarding mining permit and minerals agreement with Guyana’s Ministry of Natural Resources and the Environment.Q4 2013 o Submit application for mining permit and minerals agreement. o Complete Feasibility Study. o Expected approval for mining permit and minerals agreement.2014 o Commence development and production. 7
    • Guyana• Consistently stable economy and political climate.• Elected government has followed a policy of economic liberalization, promotes foreign investment.• Long history of successful foreign investment in country’s mining sector.• British-based law and robust mining law protects foreign investment.• One of the friendliest mining regimes in the world. 8
    • Guyana: Track Record of Successful Production and Operations• Omai gold mine: Produced over 3.7 million ounces grading ~1.4 g/t gold from 1993 to 2005.• Guyana Goldfields Aurora project: 6.54 million measured and indicated ounces (open pit and underground).• Sandspring Resources: Advancing multi-million ounce Toroparu gold- copper deposit toward potential large-scale production in 2015.• Azimuth Resources West Omai project: 1.22 million inferred ounces.• 20 to 25 Canadian juniors exploring for various commodities in Guyana.• Major mines in bauxite industry. 9
    • Eagle Mountain: Proposed Production Tiers Phase • Production of 35,000 to 45,000 ounces – significant cash-flow will bolster treasury 1a with no dilution. Phase • Increase to 60,000 to 75,000 ounces – expansion with low capital investment. 1b • 120,000+ ounces – additional capital Phase 2 investment required. 10
    • Eagle Mountain: Work Completed to Date• Advanced 5,050-hectare gold project with near-term production potential.• 281 holes drilled totaling 35,993 metres. o 78 drill holes (~11,000 metres) completed by Eagle Mountain. o Remaining holes completed by predecessors including IAMGOLD.• Known resource covers only 250 hectares inside the 5,050-hectare property. o Deposit remains open in three lateral directions and at depth.• Excellent historical database (geophysics, adits, extensive sampling, auger drilling, LIDAR, etc.).• ~$15 million spent on exploration work at Eagle Mountain to date. 11
    • Strategic Partnership with IAMGOLD• IAMGOLD doubled its stake in Eagle Mountain to 14.93% in mid- February.• This followed exercise by Eagle Mountain of option to acquire remaining 50% of Eagle Mountain property from IAMGOLD.• Transaction establishes IAMGOLD as largest shareholder, demonstrates confidence in Eagle Mountain team’s ability to deliver.• IAMGOLD positioned as strategic partner. 12
    • Eagle Mountain: Current (2012) Resource• NI 43-101 resource starting at surface: o Indicated resource of 188,000 ounces of gold @ 1.49 g/t (0.5 g/t cut off) and o Inferred resource of 792,000 ounces of gold @ 1.19 g/t (0.5 g/t cut off).• Management believes: o Grade is profitable. • IAMGOLD’s Rosebel mine in neighbouring Suriname profitably producing 385,000 ounces per year @ 1.0 g/t from five open pits to date, with three additional pits to be mined (> 13 million oz reserves & resources). • The Omai gold mine in Guyana produced 3.7 million+ ounces @ ~1.4 g/t (1993 to 2005). • Timmins Gold produced ~25,000 ounces of gold in Q3 2012 @ 0.88 g/t (annual forecast ~100,000 ounces ) from its San Francisco gold mine in Mexico, profiting $945 per ounce. o Several open pits will feed a central processing facility. • Yanacocha in northern Peru, the largest gold producer in Latin America and one of the world’s largest gold mines (over 26-million ounces produced since 1993), produces in this way. 13
    • Eagle Mountain: 2011 Drilling Highlights• 78 holes completed for a total of 10,850 metres• Program included both infill and step-out diamond drilling holes.• The program was designed to: o Move part of the geological resource from inferred to indicated. o Expand the total amount of ounces. o Test and improve the geological model over specific deposit areas.• More than 90% of holes drilled intersected shallow gold mineralization of economic grade.• Results include: o 24.19 metres at 9.1 g/t gold from surface to 24.19 m depth (EMD11-76 - Zion). o 19.05 metres at 3.13 g/t gold from surface to 19.05 m depth (EMD11-83 - Bottle Bank). o 7.80 metres at 30 g/t gold from 36 to 43.8 m depth (EMD11-85 - Bucket Shaft). o 42.20 metres at 0.97 g/t gold from surface to 42.2 m depth (EMD11-77 -Zion). 14
    • Eagle Mountain: Geology and Geochemistry Cross-section A EAGLE A MOUNTAIN PL 5 km Eagle Mountain Au Deposit
    • Eagle Mountain NI 43-101: 2012 Block Model vs 2010 Block Model Historical & Current Drilling Shown 16
    • Eagle Mountain 2012 Resource Outline (NI 43-101 Technical Report filed at SEDAR in Jan 2013)INDICATED Mineral Resource: November 2012 Updated Eagle Mountain Resource Estimate by Category, Zone & Type MaterialIn both saprolite (oxide) and “fresh” (Using Block Model Cut-off of 0.5 g/t AU)(non-oxidized) rock, it is 3,921,000tonnes at 1.49 g/t gold for 188,000 Category Zone Material Density (t/m3) Volume (m3) Tonnes Au (g/t) Ouncesounces gold. Saprolite 1.60 538,000 860,000 1.42 39,000INFERRED Mineral Resource: Zion Fresh 2.60 436,000 1,134,000 1.40 51,000Hosted by saprolite and non- Total 2.03 974,000 1,994,000 1.41 90,000oxidized rock, it is 20,635,000 tonnesat 1.19 g/t gold for 792,000 ounces Indicated Saprolite 1.60 465,000 730,000 1.49 35,000gold. Kilroy Fresh 2.60 461,000 1,197,000 1.63 63,000 Total 2.08 917,000 1,927,000 1.58 98,000No statistical relationship between Saprolite 1.60 994,000 1,590,000 1.45 74,000weathering and grade is observed, Alltherefore relatively consistent Au Fresh 2.60 897,000 2,331,000 1.52 114,000grade throughout the deposit. Total 2.05 1,890,000 3,921,000 1.49 188,000 Saprolite 1.60 2,671,000 4,274,000 1.31 180,000Management is of the opinion that Zion Fresh 2.60 3,035,000 7,891,000 1.13 286,000the oxide ore is sufficient to support Total 2.16 5,706,000 12,165,000 1.19 466,000a 35,000 to 45,000 oz per annumoperation for 1st Phase Inferred Kilroy Saprolite 1.60 1,831,000 2,929,000 1.33 126,000development – no milling required, Fresh 2.60 2,132,000 5,542,000 1.12 200,000i.e., low power requirements (major Total 2.25 3,962,000 8,471,000 1.20 326,000element in future operating costs).This will be the target for our coming All Saprolite 1.60 4,502,000 7,202,000 1.32 306,000Scoping Study.* Fresh 2.60 5,167,000 13,433,000 1.13 486,000 Total 2.19 9,668,000 20,635,000 1.19 792,000(*Forward Looking Statement and is presentedwith caution and the appropriate disclaimer) 17
    • Eagle Mountain: New NI 43-101Typical cross-section across the NE part of the deposit 18
    • Strong Recovery Potential• IAMGOLD took bulk samples of both oxide (saprolite) and underlying hard rock mineralization testing all three known deposit horizons at Eagle Mountain in 2009.• Samples used for mineralogical and metallurgical testing completed at SGS Laboratories (Toronto).• 92% recovery for cyanidation (saprolite, hard rock).• 70+% recovery using only gravity (saprolite).• Recoveries are in line with historical recoveries/mines in the region. 19
    • Further Expansion Potential • Option agreement to earn 10 km up to 95% of adjacent Eagle Mowasi Gold property.Mountain PL • Mowasi covers 17,000 hectares + additional rights Area of first refusal. Enclosing Mowasi Gold’s • History of artisanal gold EM Au Deposit Properties mining at Mowasi from alluvial workings and saprolite. • Limited Exploration of Mowasi property commenced in Q1 2012. 20
    • Mowasi Gold – Drainage Au Geochemistry Areas of interest for follow up 21
    • Nearby Infrastructure• Eagle Mountain is accessible by an existing road.• Major road to capital Georgetown just 5 km from property.• Small airport at Mahdia Township within 4 km of Eagle Mountain.• Waterways located 30 km from property.• Historical Omai gold mine ~40 km from Eagle Mountain. 22
    • Eagle Mountain: Scoping the Saprolite Gold Resource Source: IAMGOLD Mine processing flowchart for both hard rock and oxides ore. From an internal 2010 IAMGOLD Scoping Study. 23
    • Share InformationListed TSX.V: Z OTCQX: SDMTD Frankfurt: E9XShare Structure (as at February 11, 2013) Issued 37,083,526 Warrants 19,638,250 Options 1,220,000 Fully Diluted 57,941,776Major Shareholders Management and insiders: 15% IAMGOLD: 14.93% Sprott Gold & Precious Metals Fund: 3.8% European holdings: estimated at approx. 10-12%Market Capitalization (as at February 7, 2013) ~$12.19 million52-Week Range (as at February 7, 2013) $0.14 to $1.20 24
    • Why Gold is “Wealth”? 25
    • Enterprise Value – Growth Profile Capitalization of Public Companies ($ million) vs. Au oz Held (million) Enterprise Value350.00 (EV) per Minable Increase Value Oz300.00 through Resource Production $350-$450 Expansion per Au oz250.00 Feasibility $100-$150 Study per Au oz200.00 Pre- Feasibility Study Advanced Development $50-$75150.00 per Au oz Stage (Reserves) Z100.00 Eagle Mountain is at the advanced exploration stage moving towards pre- feasibility study stage* 50.00 Discovery 0.00 0.00 1.00 2.00 3.00 4.00 5.00 Increase Value with Project Advancement EMGC 26
    • Management and DirectorsYannis Tsitos, President, CEO & Director: Physicist/geophysicist with 25 years experience in themining industry. 19 years with BHP Billiton, the last nine as senior business development managerglobal minerals exploration. Worked on exploration projects and business deals in 32 countries. Hasidentified, negotiated and executed in excess of 55 exploration, development and miningagreements and joint ventures (JVs). Important role in two major discoveries. Led First BauxiteCorporation to the acquisition of the Bonasika Bauxite deposit (prime quality refractory bauxite).Geoff Hampson, Chairman & Director: A private equity investor and businessman with 35 yearsexperience in startups, turnaround situations and M&A. Has been involved in building and sellingprivate and public companies in the mining, oil and gas, manufacturing, Internet and medical fields.Has negotiated JVs and acquisitions in Brazil, Eastern Europe, China and North America.Anne Casselman, Exploration & Country Manager, Guyana: Senior Geologist with 20+ yearsexperience in precious metal exploration (Newmont, Golden Star, Cambior, IAMGOLD). Has workedon Eagle Mountain project for the last six years, playing a major role in its expansion and explorationsuccess.Art Freeze, P.Geo, Director: 43 years of experience as an exploration and production geologist(e.g., Cominco, Pasminco, Echo Bay, Pan American Silver, Stillwater). Currently a principal consultantto Goldcorp Inc. 27
    • Management and DirectorsLuiz Bizzi, Director: Brazilian professional geologist and Certified Investment Analyst with over 27years experience . PhD, MBA, and past exploration manager for South America for BHP Billiton. Dr.Bizzi was also the Director of Geology and Mineral Resources at CPRM – the Brazilian GeologicalSurvey and a Senior Consultant at the Brazilian Development Bank.Jim Heras, Chairman Emeritus, Director & Founder: 40 years experience as a businessman andinvestor in numerous private and public ventures, including several successful mining companies(President of St. Phillips Resources - Kemess Gold/ Copper Mine). Director of various companies inCanada.Tim Crowhurst, Director: 20+ years experience as a senior-level business manager and public policycommunicator, specializing in international trade, political affairs, corporate restructuring andturnaround, and business development. He has also served as CEO for several mining explorationcompanies.Geoff Watson, Director: 30+ years of experience in the securities industry, with majority spent in thebrokerage community (retail and institutional client management) and the financing of numerouspublic ventures. He has also overseen the financial affairs of several North American publiccompanies.Albert Wu, CFO: Over 35 years experience as CFO of several public medium size exploration andmining companies. 28
    • 15-Month (incl. 2013) Corporate Goals * 2013 2014 Q1 Q2 Q3 Q4 Q1 Eagle Mountain ProjectScoping StudyEnvironmentalBase Study & EIAFeasibility StudiesProject Financingand Development Aggressive plan beyond Eagle Mountain: Entry into a positive cash flow, small-scale production *Targeting & LegalProject Financing &DevelopmentCash Flow inEMGC Financials* Disclaimer: Denotes forward-looking predictions and plans and might not be achieved. 29
    • Summary• Eagle Mountain is a high-quality asset with near-term production potential.• Strong support of strategic partner and largest shareholder IAMGOLD.• Project has excellent potential for expansion, both land and resource.• Long-term blue sky potential.• Company will aggressively pursue entry into small-scale producing opportunities in Guyana by leveraging management’s excellent local and international network.• Guyana is an established, mining-friendly regime.• Property has excellent access and is in close proximity to existing infrastructure.• Proven, experienced management team. 30
    • Thank You For more information, please contact:Eagle Mountain Gold Corp., Investor Relations 1-866-437-9552 ir@eaglemountaingoldcorp.com www.eaglemountaingoldcorp.com 31