Consolidate, Produce, Discover, Grow March 2013Creating Value: Consolidating a World-Class RegionConsolidate Produce Disco...
Consolidate, Produce, Discover, GrowCAUTIONARY STATEMENTS2Cautionary Statement Regarding Forward-Looking Statements and Th...
Consolidate, Produce, Discover, GrowConsolidating a prolific gold district in a world-class mining jurisdictionSleeping Gi...
Consolidate, Produce, Discover, GrowNAP ASSETS ACQUISITIONA transformational transaction with strong strategic rationale ...
Consolidate, Produce, Discover, GrowPRO FORMA ASSET PORTFOLIO5Only operating processing facility in the region to leverage...
Consolidate, Produce, Discover, GrowPositioned to realize value from staged development of project pipelineVALUE CREATION ...
Consolidate, Produce, Discover, GrowSLEEPING GIANT MILL COMPLEX7Grizzly FeederJaw CrusherCone Crushing / ScreeningRod and ...
Consolidate, Produce, Discover, GrowLARGE PROSPECTIVE LAND POSITION8144,000 ha land package spanning 120km with excellent ...
Consolidate, Produce, Discover, GrowVEZZA GOLD MINE 100% interest in a permitted mine slated for2013 production Over $43...
Consolidate, Produce, Discover, GrowCOMTOIS GOLD PROJECT 100% interest in the Comtois Gold Project,which hosts the “Osbel...
Consolidate, Produce, Discover, GrowCOMTOIS GOLD PROJECTNew geological interpretation of gold distribution underway11
Consolidate, Produce, Discover, GrowSLEEPING GIANT (PAST-PRODUCING MINE) Quartz-sulphide vein type gold deposit Gold-bea...
Consolidate, Produce, Discover, GrowOTHER HISTORICAL GOLD RESOURCESFlordin Greenstone-hosted quartz-carbonate veins Mine...
Consolidate, Produce, Discover, GrowDISTRICT EXPLORATION POTENTIALDistrict scale land position in the Northern Abitibi Bel...
Consolidate, Produce, Discover, GrowMANAGEMENT & BOARD OF DIRECTORSBoard of Directors George Fowlie - Deputy Chairman, Di...
Consolidate, Produce, Discover, GrowPROPOSED FINANCING Maudore is currently raising proceeds of up to C$25 m in a best ef...
Consolidate, Produce, Discover, GrowCOMPANY CAPITALIZATIONMaudore is well capitalized with an enhanced capital markets pro...
Consolidate, Produce, Discover, GrowFBC SECURED CREDIT FACILITY TERMSNAP Assets acquisition funded with senior secured cre...
Consolidate, Produce, Discover, GrowSUMMARY19 Clear path to near term production Strategic assets include key production...
Consolidate, Produce, Discover, GrowAppendices and Historical ResourcesConsolidate Produce Discover Grow
Consolidate, Produce, Discover, GrowA high-grade potential consolidation opportunity in the regionCONSOLIDATION OPPORTUNIT...
Consolidate, Produce, Discover, GrowWINDFALL LAKE PROPERTY OVERVIEW22Tonnes(M)Grade(g/t Au)Contained(k oz Au)Windfall Lake...
Consolidate, Produce, Discover, GrowPROPOSED WINDFALL LAKE TRANSACTION On December 5, 2012, Maudore proposed a potential ...
Consolidate, Produce, Discover, GrowDISCOVERY HISTORICAL RESOURCE24The table below sets forth the historical mineral resou...
Consolidate, Produce, Discover, GrowFLORDIN HISTORICAL RESOURCE25The table below sets forth the historical mineral resourc...
Consolidate, Produce, Discover, GrowSLEEPING GIANT HISTORICAL RESOURCE26The table below sets forth the historical mineral ...
Upcoming SlideShare
Loading in …5
×

Maudore mar13presentation

479
-1

Published on

Published in: Business, Technology
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
479
On Slideshare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
1
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Maudore mar13presentation

  1. 1. Consolidate, Produce, Discover, Grow March 2013Creating Value: Consolidating a World-Class RegionConsolidate Produce Discover Grow
  2. 2. Consolidate, Produce, Discover, GrowCAUTIONARY STATEMENTS2Cautionary Statement Regarding Forward-Looking Statements and Third Party InformationThis presentation contains forward-looking statements. All statements that are not clearly historical in nature or that necessarily dependon future events are forward-looking, and the words "anticipate", "believe", "expect", "estimate", "plan" and similar expressions aregenerally intended to identify forward-looking statements. These forward-looking statements include, without limitation, statementsregarding the integration of the properties, assets and employees of NAP Quebec Mines Ltd. (“NAP Quebec” or “NAP Assets”) with thoseof the Company, the closing of the Private Placement, the potential merger with Eagle Hill Exploration Corporation (“Eagle Hill”), futureresults of operations, performance and achievements of the Company, including potential property acquisitions, the timing, content,cost and results of proposed work programs, the discovery and delineation of mineral deposits/resources/reserves, geologicalinterpretations, potential mineral recovery processes and rates, business and financing plans, business trends and future operatingrevenues. These statements are inherently uncertain and actual achievements of the Company or other future events or conditions maydiffer materially from those reflected in the forward-looking statements due to a variety of risks, uncertainties and other factors,including, without limitation, risks related to the integration of the NAP Quebec, risks associated with the proposed acquisition of EagleHill, financial related risks, unstable gold and metal prices, operational risks including those related to title, significant uncertainty relatedto inferred mineral resources, operational hazards, unexpected geological situations, unfavourable mining conditions, changingregulations and governmental policies, failure to obtain required permits and approvals from government authorities, failure to obtainany required approvals of the TSXV, failure to obtain any required shareholder approvals, failure to obtain any required financing,increased competition from other companies many of which have greater financial resources, dependence on key personnel andenvironmental risks and the other risks described in the Company’s annual information form and other continuous disclosure filings withsecurities regulators available under the Company’s profile at www.sedar.com. It is recommended not to place undue reliance onforward-looking statements as the plans, intentions or expectations upon which they are based might not occur. The Company does notassume any obligation to update any forward-looking statements contained in this release, except as required by applicable law.Certain information appearing in this document pertaining to North American Palladium Ltd. (“North American Palladium” or “NAP”),NAP Quebec and their respective assets and operations has been obtained by the Company from information made publicly available byNAP and the Company assumes no responsibility for the completeness or accuracy of such information. Qualified Person: Kevin R. Kivi, P.Geo., of KIVI Geoscience Inc., who is Maudores Chief Consulting Geologist, approves the technicalcontent of this presentation.
  3. 3. Consolidate, Produce, Discover, GrowConsolidating a prolific gold district in a world-class mining jurisdictionSleeping Giant mill positions Maudore to become the next Quebecgold producer with a strong pipeline of projectsControlling land position in underexplored 250+ km gold belt in theNorthern Abitibi Greenstone Belt in QuebecCurrent Au Resources: 834 k oz M&I and 1,380 k oz Inferred1Historical Au Resources: 556 k oz M&I and 432 k oz Inferred1Production facilities in close proximity to advanced explorationproviding operational flexibility and cost synergiesStrong platform to continue consolidation strategy leveragingcontrol over the only operating mill regionallyWell capitalized company with improved scale, liquidity and anenhanced capital markets profileINVESTMENT HIGHLIGHTS3Please refer to slides 5, 24, 25, and 26 for detailed information and disclosure related to these resources
  4. 4. Consolidate, Produce, Discover, GrowNAP ASSETS ACQUISITIONA transformational transaction with strong strategic rationale 22 March 2013, acquisition of North American Palladium’s Quebec gold assets for $18 min cash and 1.5 m shares (~$1.6 m)– Cash funded using $22m secured credit facility from FBC Holding Sarl Acquired a strategically important portfolio of assets in the region:– Operating mill with tailings facility and expansion potential (Sleeping Giant Mill)– Vezza underground test mining 85km from Sleeping Giant Mill– Three advanced exploration properties (Discovery, Flordin & Sleeping Giant)– Flexibility to exploit gold resources in stages thereby managing capitalrequirements and focusing on higher margin opportunities– Large contiguous land package within trucking distance of processing facilities– Dominant land position in the Northern Abitibi Belt adding a land package ofapproximately 48,000 hectares (+50%)4
  5. 5. Consolidate, Produce, Discover, GrowPRO FORMA ASSET PORTFOLIO5Only operating processing facility in the region to leverage satellite deposits1. Windfall Lake is owned by Eagle Hill and Noront Resources Ltd. Please refer to slides 21, 22, and 23 for details.A qualified person has not performed sufficient work to classify historical estimates as current mineral resources; Maudore is not treating thetable of historical mineral resource estimates as current mineral resource estimates.Osbell Resource Estimate for Maudore Minerals Ltd. Nov 30, 2012 by Alain Carrier, PGeo (InnovExplo Inc.), Pierre-Luc Richard, PGeo (InnovExploInc.), Christian DAmours, PGeo (GeoPointCom), and Alain Dorval, Eng. (InnovExplo Inc.)Vezza Resource Estimate for North American Palladium Ltd. by Scott Wilson Roscoe Postle Associates Inc., 2010 prepared by Bernard Salmon,PEng and Petr Pelz, PGeo. In compliance with National Instrument 43-101 Standards for Mineral Projects ("NI 43-101"), a NI 43-101 compliant technical report in respect of the Vezza project will be prepared by the Company withinthe next 45 days. The Company has retained Christian DAmours, PGeo (GeoPointCom) to prepare such report.CURRENT RESOURCESGold Resource Tonnes(M t)Grade(g/t Au)Gold(k oz Au)Osbell Resource Estimate (Oct 2012)Measured & Indicated 8.5 2.0 546Inferred 8.1 4.8 1259Vezza Historical Resource Estimate (Dec 2010)Measured & Indicated 1.5 5.9 288Inferred 0.8 5.0 122Total M&I 10.0 2.6 834Total Inferred 8.9 4.8 1380Excellent Regional Infrastructure1 HISTORICAL RESOURCESGold Resource Tonnes(M t)Grade(g/t Au)Gold(k oz Au)Discovery Historical Resource Estimate (2008)Measured & Indicated 1.3 5.7 237Inferred 1.5 5.9 294Flordin Historical Resource Estimate (2011)Measured & Indicated 2.8 1.8 166Inferred 2.2 2.0 138Sleeping Giant Historical Resource Estimate (2008)Measured & Indicated 0.5 9.7 153Total M&I 4.6 3.8 556Total Inferred 3.7 3.6 432
  6. 6. Consolidate, Produce, Discover, GrowPositioned to realize value from staged development of project pipelineVALUE CREATION THROUGH PROJECT PIPELINE6Acquire NAP Assets(SG Complex, Vezza,Discovery, Flordin, SG)Complete acquisitionof Eagle Hill1Process Windfall Lakeusing SG MillBuild Osbell open cutmine and millcomplexProcess Windfall Lakethrough Osbell MillExploration of prospective exploration targets1. Formal non-binding proposal to Eagle Hill Exploration Corporation announced December 5, 2012. Please refer to slides 21, 22, and 23 for details.Commission Vezza andSG Mill to becomecommercial producerEvaluate restart ofSleeping Giant andmining of DiscoveryExpansion of SGprocessing facilityProcess Flordin opencut through OsbellMillAdditional regionalconsolidation
  7. 7. Consolidate, Produce, Discover, GrowSLEEPING GIANT MILL COMPLEX7Grizzly FeederJaw CrusherCone Crushing / ScreeningRod and Ball MillConventional Leach and CIL CircuitDoré 100% interest in complex providing regionalmilling facilities All deposits within trucking distance (< 85 km) NAP invested $80 m in acquisition anddevelopment costs since acquisition in 2009– Estimated replacement cost of $60-$80 m Skilled and experienced workforce of ~150which is expected to grow as we expand Currently processing 400-600 tpd with 92%gold recovery while Vezza is being commissioned Design capacity of 900tpd with potential to expandto 1,250tpd and 1,750tpd Tailings facility is expected to last 10 years at thehigher production rateSleeping Giant Mill Complex
  8. 8. Consolidate, Produce, Discover, GrowLARGE PROSPECTIVE LAND POSITION8144,000 ha land package spanning 120km with excellent geological potentialNote: “MD_NAP” label refers to the Laflamme project which is a joint venture between NAP Quebec and Midland Exploration Inc.
  9. 9. Consolidate, Produce, Discover, GrowVEZZA GOLD MINE 100% interest in a permitted mine slated for2013 production Over $43 million spent to date to bring themine into production– Hoist, 3-compartment shaft and 4underground levels completed down to741m depth Ore currently being processed fromunderground at nearby Sleeping Giant Mill– Approximately 85 km south Mine optimization includes focus on gradecontrol and minimizing dilution Experienced workforce in place Exploration upside with 49 contiguous miningclaims covering a surface area of 691 hectares9Vezza Resource Estimate for North American Palladium Ltd. by Scott Wilson Roscoe Postle Associates Inc., 2010 prepared by Bernard Salmon, PEng and Petr Pelz, PGeo. In compliance with National Instrument 43-101 Standards forMineral Projects ("NI 43-101"), a NI 43-101 compliant technical report in respect of the Vezza project will be prepared by the Company within the next 45 days. The Company has retained Christian DAmours, PGeo (GeoPointCom)to prepare such report.CURRENT RESOURCESGold Resource Tonnes(M t)Grade(g/t Au)Gold(k oz Au)Vezza Historical Resource Estimate (Dec 2010)Measured & Indicated 1.5 5.9 288Inferred 0.8 5.0 122
  10. 10. Consolidate, Produce, Discover, GrowCOMTOIS GOLD PROJECT 100% interest in the Comtois Gold Project,which hosts the “Osbell Deposit” Contains at least 2 continuous mineralizedzones with strike lengths of 700-1,400m– Pyrite gold deposit containing sulphides indisseminated or veinlet form Updated resource in October 2012 using newgeological interpretation and additional drilling– Potential for both open pit andunderground mining scenarios– Recent drill results include 1,195 g/t over0.5m within 399 g/t over 1.3m Estimated that average gold recovery of 93%can be achieved10Over 276 km of drilling completed to date in 927drill holes with most recent 25km completedsubsequent to resource estimateCURRENT RESOURCESGold Resource Tonnes(M t)Grade(g/t Au)Gold(k oz Au)Osbell Resource Estimate (Oct 2012)Measured & Indicated 8.5 2.0 546Inferred 8.1 4.8 1259Osbell Resource Estimate for Maudore Minerals Ltd. Nov 30, 2012 by Alain Carrier, PGeo (InnovExplo Inc.), Pierre-Luc Richard, PGeo (InnovExplo Inc.), Christian DAmours, PGeo (GeoPointCom), and Alain Dorval, Eng. (InnovExploInc.)
  11. 11. Consolidate, Produce, Discover, GrowCOMTOIS GOLD PROJECTNew geological interpretation of gold distribution underway11
  12. 12. Consolidate, Produce, Discover, GrowSLEEPING GIANT (PAST-PRODUCING MINE) Quartz-sulphide vein type gold deposit Gold-bearing veins may be structurallycontrolled in steeply dipping box fold Drilling of mineralized zones at depth andlaterally indicate long-term explorationpotential of mine– Underground drilling program to beevaluated Significant underground development includingmine shaft to depth of 1,175m – extended by200m in 2011 to gain access to new high gradezones1 Digitization of data into 3D model will providebasis for reinterpretation– Enables the definition of known veinsleading to additional mineral resources12Longitudinal section1A qualified person has not performed sufficient work to classify historical estimates as current mineral resources; Maudore is not treating the table of historical mineral resource estimates as current mineral resource estimates.1. Refer to North American Palladium press release dated July 12, 2011 titled “North American Palladium Provides Gold Exploration Update”HISTORICAL RESOURCESGold Resource Tonnes(M t)Grade(g/t Au)Gold(k oz Au)Sleeping Giant Historical Resource Estimate (2008)Measured & Indicated 0.5 9.7 153
  13. 13. Consolidate, Produce, Discover, GrowOTHER HISTORICAL GOLD RESOURCESFlordin Greenstone-hosted quartz-carbonate veins Mineral potential defined over 3 km strike withat least 10 continuous mineralized zonesranging from 300 m to 1,300 m Excellent potential to increase gold resources Permitting in progress for 10,000 tonne bulksample for sorting testDiscovery Gold bearing shear zone dipping 80-90 degrees Permitting in place for underground explorationand bulk sampling Excellent exploration potential to increasecurrent mineral resources Potential to provide medium term productionto Sleeping Giant Mill13A qualified person has not performed sufficient work to classify historical estimates as current mineral resources; Maudore is not treating the table of historical mineral resource estimates as current mineral resource estimates.HISTORICAL RESOURCESGold Resource Tonnes(M t)Grade(g/t Au)Gold(k oz Au)Flordin Historical Resource Estimate (2011)Measured & Indicated 2.8 1.8 166Inferred 2.2 2.0 138HISTORICAL RESOURCESGold Resource Tonnes(M t)Grade(g/t Au)Gold(k oz Au)Discovery Historical Resource Estimate (2008)Measured & Indicated 1.3 5.7 237Inferred 1.5 5.9 294
  14. 14. Consolidate, Produce, Discover, GrowDISTRICT EXPLORATION POTENTIALDistrict scale land position in the Northern Abitibi Belt14 Northern Abitibi Belt underexploredrelative to Southern Abitibi Belt– Fewer outcrops and lessinfrastructure Controlling land position in underexplored250+ km gold belt– Large 144,000 hectare position overprospective lands with 120km ofcontiguous tenements Strong potential for extension of mineralresources along Sleeping Giant–Osbell–Windfall Lake trend Quebec has one of the highest levels ofVMS-style deposit occurrence globally
  15. 15. Consolidate, Produce, Discover, GrowMANAGEMENT & BOARD OF DIRECTORSBoard of Directors George Fowlie - Deputy Chairman, Director ofCorporate Development - MBA, InvestmentBanker, Corporate Finance, Co. Director Howard Carr - Non-Executive Director - PhD inEconomic Geology; Former Senior ResourceAnalyst at Macquarie in Perth Raynald Vezina - Non-Executive Director - MiningEngineer, Mining Co. COO & Director, MiningEngineering Consultant Keith Harris - Non-Executive Director - Accountant,Investment Banker, Corporate Finance, Co.Director Daniel Harbour - Non-Executive Director - PhD,Private Investment Management, Linguistics Robert Pevenstein - Non-Executive Director -MBA, Corporate Finance, Mining Co. Director15Management Team Kevin Tomlinson - CEO & Chairman - Geologist,Investment Banker, Mining Co. Chairman &Director Anne Slivitzky - Chief Operating Officer - FormerMaudore CEO & Director, 30 years mining industryexperience in Canada and South America Kevin Kivi, PGeo - Chief Geologist - 30 years ofexploration and mining experience Ingrid Martin - Chief Financial Officer - CharteredAccountant with extensive financial and corporateexperience Deborah Thompson - Manager Investor Relations- 17 years as journalist / investor relations Julie Godard - Corporate SecretaryHiring of additional experienced mining executives underway
  16. 16. Consolidate, Produce, Discover, GrowPROPOSED FINANCING Maudore is currently raising proceeds of up to C$25 m in a best efforts privateplacement of units of the Company Strong sponsorship by existing shareholders, management and FBC throughparticipation in the equity financing16Sources C$ m Uses1 C$ mFBC Term Loan $22.0 NAP Assets Cash Consideration $18.0Private Placement of Units $25.0 Bridge Loan Repayment $3.3FBC Interest Escrow $2.8Transaction Fees $2.4Environmental Bonding $1.8Working Capital $18.8Total Sources $47.0 Total Uses $47.01. Management estimates. These estimates are based on current information available at this time. The company reserves the right to reassess these numbers based on the current business environment.
  17. 17. Consolidate, Produce, Discover, GrowCOMPANY CAPITALIZATIONMaudore is well capitalized with an enhanced capital markets profile17Maudore1 Maudore +NAP Assets2IllustrativeUnit OfferingPro FormaMaudore2Share Price C$/sh $1.08 $1.08 - -Basic Shares m 26.9 30.2 - -Market Cap C$m $29.1 $32.6 $25.0 $57.6Cash C$m $3.1 $5.4 $25.0 $22.5Debt C$m $3.3 $25.3 - $22.1Enterprise Value C$m $29.3 $52.5 - $57.2Options and WarrantsOutstanding m 3.4 4.3 - -Avg Exercise C$/sh $6.22 $5.16 - -Note: Assumes an USD/CAD exchange rate of 1.001. Unaudited management estimate of December 31, 2012 balances; September 30, 2012 cash balance was $6.5 million and debt balance was nil2. Cash and debt balances adjusted for NAP Quebec cash and Bridge Loan Repayment, FBC Interest Escrow, Transaction Fees and Environmental Bonding as detailed on slide 16
  18. 18. Consolidate, Produce, Discover, GrowFBC SECURED CREDIT FACILITY TERMSNAP Assets acquisition funded with senior secured credit facility18Credit Facility C$22 m senior secured credit facility provided by FBC Holdings Sarl (“FBC”)Interest 15% per annum, payable quarterly in arrearsMaturity Date March 22, 2016 (third anniversary of the closing date)RankingFirst-ranking charge over all of Maudore and its subsidiaries’ present and future personalproperty and material real property, including specified mining rightsCompensation1.76 m common shares and 880,000 common share purchase warrants to purchase onecommon share at an exercise price of C$1.08/sh for a period of 2 yearsPrepaymentOption15% fee if loan repaid before first anniversary of closing date, 5% after first but beforesecond anniversary and no fee after the second anniversary
  19. 19. Consolidate, Produce, Discover, GrowSUMMARY19 Clear path to near term production Strategic assets include key productionfacility with multiple advancedexploration projects within truckingdistance Well positioned to be a dominantconsolidator in the underexploredNorthern Abitibi region of Quebec Enhanced opportunity to further expandmineral resources along Sleeping Giant -Osbell – Windfall Lake resource trend Well capitalized to deliver shareholdervalue One Expandable Processing Facility– Sleeping Giant Mill Two UG Developments in Quebec– Vezza Gold Project – UG Test Mining with43-101 update underway– Sleeping Giant (care & maintenance) Large Current Gold Resource– Osbell Gold Deposit Three Historical Gold Resources– Discovery Gold Project– Flordin Gold Project– Sleeping Giant Project District Scale Land Position– 144,000 hectares in Abitibi Belt
  20. 20. Consolidate, Produce, Discover, GrowAppendices and Historical ResourcesConsolidate Produce Discover Grow
  21. 21. Consolidate, Produce, Discover, GrowA high-grade potential consolidation opportunity in the regionCONSOLIDATION OPPORTUNITY: WINDFALL LAKE21NAP AssetsAcquiredWindfall LakeOpportunity• Maudore• NAP Assets Acquired• EAG/Noront
  22. 22. Consolidate, Produce, Discover, GrowWINDFALL LAKE PROPERTY OVERVIEW22Tonnes(M)Grade(g/t Au)Contained(k oz Au)Windfall Lake (Jul 2012)Measured & Indicated 1.7 10.1 538Inferred 2.9 8.8 822 High-grade regional gold deposit 366 contiguous claims over 12,070 hectaresin the Northern Abitibi Two styles of gold mineralization– Sulphide-rich (generally pyrite)disseminations and stockworks– Classical shear-hosted mesothermal Maudore would be able to truck and processore at the Sleeping Giant Mill Recent studies show cyanide leaching would beadequate for this type of gold mineralization Currently held under a Joint Venture– Eagle Hill Resources: 75%– Noront Resources: 25% (repurchase righton 75% interest for $6 million)Windfall Lake Resource Estimate for Eagle Hill Exploration Corporation Sep 10, 2012 by SRK Consulting (Canada) Inc. Please refer to Eagle Hill Exploration press release dated July 25, 2012 titled “Updated Mineral ResourceStatement Results in 126% Increase in Inferred and 61% in Indicated Gold Ounces at higher grade at Windfall Lake Deposit”
  23. 23. Consolidate, Produce, Discover, GrowPROPOSED WINDFALL LAKE TRANSACTION On December 5, 2012, Maudore proposed a potential transaction to consolidateWindfall Lake as detailed below which has not been completed to date but is still anoption to pursue23 Eagle Hill shareholders to receive 0.0773 Maudore shares for eachEagle Hill share ($0.17 per share based on December 4, 2012 prices) Premium of 42 % to Eagle Hill closing share price as of Dec 4, 2012 Purchase price of $10 million plus 3 million warrants for 25% interestin the Windfall Lake Project Pro-forma the merger, Eagle Hill shareholders to hold approximately34 % of the combined company Subject to Eagle Hill shareholders approval and regulatory approvalsNon-BindingProposedAcquisition ofEagle Hill Purchase and sale agreement to acquire 25% interest in Windfall Lake $10 million in cash plus 3 million warrants Right to direct Noront to exercise their repurchase right on the other75%ProposedTransactionwith Noront
  24. 24. Consolidate, Produce, Discover, GrowDISCOVERY HISTORICAL RESOURCE24The table below sets forth the historical mineral resource estimates acquired with the purchase of NAP Quebec. A qualifiedperson has not performed sufficient work to classify the historical estimates as current mineral resources; andMaudore is not treating the table of historical mineral resource estimates as current mineral resource estimates.Project Historical Mineral Resource Estimates Gold Resource(x1000 oz)CategoryDiscovery 2008 measured resources of 3,109 tonnes grading 8.95 g/t for 895 ounces,indicated resource of 1,278,973 tonnes grading 5.74 g/t Au for 236,180ounces and an inferred resource of 1,545,500 tonnes grading 5.93 g/t Aufor 294,473 ounces.1236294MeasuredIndicatedInferredThe Discovery historical resource estimate is sourced from “Technical Report on the Scoping Study and Mineral Resource Estimate forthe Discovery Project (according to Regulation 43-101 and Form 43-101F1)” by InnovExplo Inc., prepared by Carl Pelletier, PGeo forCadiscor Resources Inc. in 2008. The historical estimate is not relevant today because additional diamond drilling completed by NAPQuebec since 2008 must be included, and the cut-off grade applied to the resource estimate must be re-evaluated in light of presentmarket conditions (gold price, exchange rate, and mining cost). Maudore believes that the historical estimate is reliable becauseMaudore has worked extensively with InnovExplo and the author since 2006, and believes that all work was completed at a highprofessional standard. Resource categories used in the historical estimate are in compliance with CIM Definition Standards on MineralResources and Mineral Reserves. Parameters used are minimum mining width of 1.6 m (horizontal thickness), cut-off grade of 3 g/t Au,capping grade of 35 g/t Au, and specific gravity of 2.82 g/cm3. Polygonal on longitudinal method used cross sections to confirm grade andthickness, which were located on a longitudinal section, where polygons were traced and the volume and grade calculated (usingAutoCAD and Promine software). In order to upgrade the historical estimate new drilling must be digitized, validated, and quality controlprotocols checked, prior to appending to the current drill database which will then be imported to GEMs software to generate a blockmodel and estimate a mineral resource. All work must be completed by qualified persons and evaluated to the current 43-101 Standardsfor Mineral Projects. A qualified person has not performed sufficient work to classify the Discovery historical estimate as acurrent mineral resource; and Maudore is not treating the Discovery historical mineral resource estimate as a current mineralresource estimate.
  25. 25. Consolidate, Produce, Discover, GrowFLORDIN HISTORICAL RESOURCE25The table below sets forth the historical mineral resource estimates acquired with the purchase of NAP Quebec. A qualifiedperson has not performed sufficient work to classify the historical estimates as current mineral resources; andMaudore is not treating the table of historical mineral resource estimates as current mineral resource estimates.Project Historical Mineral Resource Estimates Gold Resource(x1000 oz)CategoryFlordin A 2011 measured resource of 116,000 tonnes grading 3.25 g/t Au for 12,133ounces Au, indicated resource of 2,707,000 tonnes grading 1.77 g/t Au for153,998 ounces Au, and 2,199,000 tonnes grading 1.95 g/t Au for 137,561ounces Au.166137Measured andIndicatedInferredThe Flordin historical resource estimate is sourced from “43-101 Technical Report and Resource Estimate on the Flordin Property(according to Regulation 43-101 and Form 43-101F1)” by InnovExplo Inc. and prepared by Pierre-Luc Richard, PGeo and Carl Pelletier,PGeo for North American Palladium Ltd in 2011, which was filed on SEDAR. The historical estimate is not relevant today becauseadditional diamond drilling completed by NAP Quebec since 2011 must be included, and the cut-off grade applied to the resourceestimate must be re-evaluated in light of present market conditions (gold price, exchange rate, and mining cost). Maudore believes thatthe historical estimate is reliable because Maudore has worked extensively with InnovExplo and the authors since 2006, and believes thatall work was completed at a high professional standard. Resource categories used in the historical estimate are in compliance with CIMDefinition Standards on Mineral Resources and Mineral Reserves. InnovExplo used the squared inverse distance method to interpolategold grades in a block model, and a pit-shell confined portions of the model. A minimum cut-off grade of 0.5 g/t Au was used for the openpit portion of the Mineral Resource Estimate and a minimum cut-off grade of 3.50 g/t Au was used for the underground model. Drill holeintercepts were calculated to a 3.0 meter minimum true thickness and specific gravity of 2.8 t/m3 was used. In order to upgrade thehistorical estimate new drilling must be added to the database, validated and quality control protocols checked, prior to being appended tothe current dataset for a subsequent block model, mineral resource estimate, and possible Whittle pit shell model. All work must becompleted by qualified persons and evaluated to the current 43-101 Standards for Mineral Projects. A qualified person has notperformed sufficient work to classify the Flordin historical estimate as a current mineral resource; and Maudore is not treatingthe Flordin historical mineral resource estimate as a current mineral resource estimate.
  26. 26. Consolidate, Produce, Discover, GrowSLEEPING GIANT HISTORICAL RESOURCE26The table below sets forth the historical mineral resource estimates acquired with the purchase of NAP Quebec. A qualifiedperson has not performed sufficient work to classify the historical estimates as current mineral resources; andMaudore is not treating the table of historical mineral resource estimates as current mineral resource estimates.Project Historical Mineral Resource Estimates Gold Resource(x1000 oz)CategorySleeping Giant A 2008 measured and indicated resource of 489,200 tonnes grading 9.7 g/t Aufor 152,743 ounces Au.153 Measured andIndicatedThe Sleeping Giant historical resource estimate is sourced from “Technical Report, The Sleeping Giant Mine Northwestern Quebec” byGenivar LP, and prepared by Tyson Birkett, PEng, Josée Couture, PEng, and Christian Bézy, PGeo for Cadiscor Resources Inc. in 2008.The historical estimate is not relevant today for several reasons: 1) additional drilling completed by NAP Quebec since 2008 must beincluded; 2) material mined by NAP Quebec since 2008 must be subtracted from the historical resource estimate (prior reserve estimatesare not included for this reason); 3) cut-off grade applied to the resource estimate must also be re-evaluated in light of present marketconditions (gold price, exchange rate, and mining cost); 4) recent work and subsequent reporting by NAP Quebec not available to thepublic have demonstrated the historical estimate is out of date. Maudore believes that the historical estimate can be relied on becausemuch of it is based on mining experience at Sleeping Giant and believes that work was conducted at a high technical standard and theauthor is an employee of NAP Quebec and is known to Maudore. Resource categories used in the historical estimate are in compliancewith CIM Definition Standards on Mineral Resources and Mineral Reserves. Mineral resources were calculated using the polygonmethod on inclined longitudinal sections, which has been used in the past to yield reliable results. Capping varied from 60-250 g/t Audepending on the vein; grades, tonnage and costs derived from actual mining were integrated, and minimum mining width 1.6m appliedto stopes with dip greater than 50° and minimum mining width 1.8m applied to stopes with dip less than 50°. Nominal dilution of 15% wasapplied, and mining recovery varied from 75-100%. In order to upgrade the historical estimate, a massive project of digitization of paperrecords is required, then new drilling must be added to the database, validated, and quality control protocols checked. Undergroundworkings must be digitized and subtracted from a block model, likely generated using GEMs software, followed by a resource calculation.All work must be completed by qualified persons and evaluated to the current 43-101 Standards for Mineral Projects. A qualified personhas not performed sufficient work to classify the Sleeping Giant historical estimate as a current mineral resource; and Maudoreis not treating the Sleeping Giant historical mineral resource estimate as a current mineral resource estimate.
  1. A particular slide catching your eye?

    Clipping is a handy way to collect important slides you want to go back to later.

×