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Extorre April Powerpoint

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  • 1. 1" April,*2012 Discovery*and*Development*of**High*Grade*Gold7Silver*Projects*in*Argen<na***
  • 2. 2" Cautionary StatementCautionary Note to U.S. Investors – The United States Securities and Exchange Commission (“SEC”) permitsmining companies in their filings with the SEC to disclose only those mineral deposits that a company caneconomically and legally extract or produce. We use certain terms in this presentation, such as “inferred resource”,that the SEC guidelines strictly prohibit us from including in our filing with the SEC. U.S. investors are urged toconsider closely the disclosure contained in our Management Discussion and Analysis for the quarter ended March31, 2010 filed on SEDAR and available at www.sedar.com.This document and the information contained in it do not constitute a prospectus and do not form any part of an offerof, or invitation to apply for, securities in any jurisdiction. Potential investors should no rely solely on the informationcontained herein prior to making any investment decision. Investors should seek independent advice from a qualifiedfinance and investment advisor, giving due regard to their own personal circumstances, prior to forming anyinvestment decisionSafe Harbor Statement - This presentation may contain certain “forward-looking statements” within the meaning ofthe United States Private Securities Litigation Reform Act of 1995. These statements reflect our current belief and arebased upon currently available information. Actual results could differ materially from those described in thispresentation as a result of numerous factors, some of which are outside of the control of Extorre Gold Mines Limited.Many of the assay results presented are preliminary and may not be accurate due to various factors, including but notlimited to sample recoveries, true widths and interpretations.Preliminary Economic Assessment (PEA) – The Cerro Moro PEA is by definition preliminary in nature as itincludes some mineral resources that are too speculative geologically to have the economic considerations appliedto them that would enable them to be categorized as reserves at this time. As such there is no certainty that thepreliminary assessment and project economics will be realized. A NI 43-101 Technical Report for the CerroMoro PEA has been filed on SEDAR (www.sedar.com) and is posted on the Company’s website atwww.extorre.com
  • 3. 3"Capital Structure –April 24, 2012 Shares 96.9 M Warrants 0.12 M Options 9.52 M Fully Diluted 106.56 M Management / Insiders 15% Institutions 60% Retail 25% Cash $33 M
  • 4. 4" Highlights*–Flagship*Cerro*Moro*•  Initial 9 year high grade mine in Argentina – environmental approval for 750 tons/day•  248,000 oz./year gold equivalent* production for first 5 years at 1300 tons/ day•  Cash costs** US$303 per ounce gold equivalent* October 1, 2010•  2014 start-up scheduled•  Initial CAPEX (Direct Costs) $US 207.3M + $US 39.6M recoverableVAT•  Initial Indirect Costs (EPCM,–Owners Costs) ounces by 37.2M * Gold equivalent ounces calculated by dividing the silver $US 50 and adding it to the gold value, **Cash Costs are for “mine site” and exclude refining and royalty costs. Total Cash Costs with refining/royalty are $453 per ounce gold equivalent*
  • 5. 5" An Experienced Management TeamA Strong Board C.E.O. Trevor Mulroney Mng. Engineer- 25 yrs Exploration Matt Williams – Exploration Manager Geologist - 17 yrYale Simpson Co-Chairman Fernando Chacon – Project Manager Geologist - 8 yrBryce Roxburgh Co-Chairman Development Gonzalo Damond – Commercial Manager Engineer - 17 yr Alberto Carlocchia – Country Mgr, Argentina Lawyer – 13 yrs Rob Reynolds Director Victor Vera – Mine Development Superintend. Engineer – 15 yrIgnacio Celorrio Director Corporate Darcy Daubaras – Chief Financial Officer Chart. Acc’t. - 14 yr Eric Roth Director Cecil Bond – Vice President Finance Chart. Acc’t. - 20 yr Louis Montpellier – Senior Vice Pres. & Legal Lawyer - 30 yr James Strauss Director Marina Katusa – Vice Pres. Corp. Development Geologist, MBA George Lawton Director Rob Grey – Vice Pres. Corp. Communications IR - 7yr
  • 6. Extorre Project Locations 6" 1.36 million indicated + 1.05 million inferred ounces Au Eq* *Gold equivalent grade is calculated by dividing the silver assay result by 50, adding it to the gold value and assuming 100% metallurgical recovery. Important: See slide 9 for full resource grades and tonnes.
  • 7. 7" 100%*EXTORRE*LANDS* San%Jose%* FOMICRUZ*80/20%*JV** AGREEMENT* Cerro%Negro * FAVORABLE*VOLCANIC*ROCKS* MINE/ADVANCED*PROJECT* Don%Nicolas% RECENT*DRILLING* FALCON*VERDE Dos%Calandrias% PUNTUDO* Cerro%Moro% UNION*DOMES* Cerro%Vanguardia* Mina%Martha%* % Manan1al%Espejo%* % Santa Cruz Exploration Targets
  • 8. 8"CERRO MOROProject Location!  Pro-mining Santa Cruz Province!  90 km road to a deep water port!  Population of Puerto Deseado 20,000!  Site is 80 km from grid power!  EIA approved, connection permits in progress
  • 9. Cerro Moro Resource – November 2011 9" National Instrument 43-101 Compliant Resource Estimate, by Cube Consulting An Exceptional Gold & Silver DepositIndicated Mineral ResourcesInferred Mineral Resources Indicated and Inferred resources shown above utilise a 1.0 g/t gold equivalent* cut-off * Note: Gold equivalent grade is calculated by dividing the silver assay result by 50, adding it to the gold value and assuming 100% metallurgical recovery.
  • 10. 10" Cerro Moro – Resource LocationAreas included in the Cube November 2011 Resource Estimate Mapped/Interpreted Veins Drill hole collars as at Sep 2011
  • 11. * 11"Cerro*Moro*Mine*Development* Program** GR Engineering is a leading engineering consulting and contracting company that specializes in providing high quality process engineering design and construction services to the mining and mineral processing industries.
  • 12. Preliminary*Economic*Assessment*(PEA)* 12" Project*Parameters*Summary*(Updated*Study*Released*April*2012)"Mine*Life" 9"years"Throughput*" 1,300"tonnes"per"day" 248,000"ounces"gold"equivalent*"Average*Annual*Produc<on*(Years*1*to*5)" (123,125"oz."gold"+"of"6.25"Moz."silver)" 1.79"million"ounces"gold"equivalent*"(848,000"oz."Total*Ounces*Recovered*" gold"+"47.29"Moz."silver)" Direct:"$US"207.3M"+"$US"39.6M"VAT"(VAT"recoverable)""Ini<al*Project*CAPEX" Indirect:"$US"37.2M"(EPCM"contract,"owners’"costs,"commissioning)"Cash*Costs" $US"303"/ounce"gold"equivalent*" Financial*Summary"Payback*Period*(5%*discount)" 24"months"Pre7tax*IRR" 63%"A^er*tax*IRR" 47%"Pre7tax*NPV*(5%*discount)" $US"737.4"million"A^er*Tax*NPV*(5%*discount)" $US"463"million"Metal*Prices" $US"1320/oz."gold,"$US"26/oz."silver" Cautionary Note: The Cerro Moro Preliminary Economic Assessment (PEA) is by definition preliminary in nature as it includes some mineral resources that are too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as reserves at this time. As such there is no certainty that the project economics will be realized. **Cash Costs are for “mine site” and exclude refining and royalty costs. Total Cash Costs with refining/royalty are $453 per ounce gold equivalent*
  • 13. 13" Cerro Moro Production Profile Gold (eq. oz) (1300 tons/day) Gold (oz) Poten<al*From*New*High7 300" Grade*Discoveries…*(000*Gold*Equivalent*Ounces)* 253" 253" 258" 251" 250" 225" Annual*Produc<on*** 200" 127" 116" 128" 137" 169" 165" 106" 129" 150" 76" 61" " 91" 50" 100" 137" 47" 123" 126" 121" 119" 104" 50" 93" 79" 45" 0" Y1" Y2" Y3" Y3" Y5" Y6" Y7" Y8" Y9" Silver"(Oz."in"Gold"Eq)" Gold"(Oz.)" Production Year
  • 14. 14" Conceptual*Mine*Development** Esperanza/ Nini Open%Pit GabrielaOpen%Pit/ UG N Debora Open%PitEscondida%FW%Open%Pit/ UG Loma%Open%Pit Carla%Open%Pit Escondida%Open%Pit/ UG Martina/UG Zoe%Open%Pit%/UG Process%Plant 1000m Conceptual Open Pit Layout
  • 15. 15" Conceptual*Mine*Development** at*the*Escondida*Vein** * N 1500)m Escondida)Central)&)East)Open)PitEscondida)Central)Underground Loma)Open)Pit Escondida)Far)West)Open)Pit Escondida)Far)West)Underground
  • 16. 16" Cerro*Moro*Mine*Design*Combina<on*of*Open*Pit*and*Underground*Mining* Escondida)Open)Pit1 UG N Loma Escondida Open Pits Escondida)FW)Open)Pit1 UG Loma)Open)Pit Escondida West-Central Underground Mines Escondida Underground Layout
  • 17. * 17" Decline – Escondida Far West!  5 m (Width) x 4.5 m (Height). 2,325 m Length. First ore panels accessible after 1,200 m of development.!  Commence: mid 2012. Total development time: 22 months.
  • 18. Gold & Silver Recoveries 18"High gold and silver recoveries (95% and 93%, respectively) are achievable via a combination of flash flotation, gravity separation, and leaching GOLD 100 Recoveries (%) 80 60 flash grav 40 leach 20 0 ECF ECO EE GAB EW ESP ESP- LOMA EFW - EFW - EFW - Zoe Zoe SE oxide low high shallow deep grade grade Veins SILVER 100 Recoveries (%) 80 60 flash grav 40 leach 20 0 ECF EE EW ESP-SE EFW - oxide EFW - high Zoe deep grade Veins For more detailed information on metallurgy please view company technical reports filed on Sedar
  • 19. Cerro Moro – Conceptual Plant Design 19" Modular Design to Accommodate Potential Future Expansions MerrillbCrowe CYCLONE LEACH GOLD h.g."concentrate FLASH ROOM FLOTATION1,300 ton/dayProduction Plan ."concentrate h.g GRAVITY MINE BALL"MILL CRUSHER PUMP CERRO*MORO* –
  • 20. 20" Project*Development*Op<ons**!  Consider a “soft mine startup” to reduce initial capital cost.!  Fund a significant portion of development capex from cash flow.!  The trade-off study will consider the optimum mine throughput for Cerro Moro given the ability of the project to be scaled up/down according to the availability of capital.
  • 21. 21" Conceptual Development Schedule 2012 2013 Q1 Q2 Q3 Q4 H1 H2Discovery/DrillingDelineation/Drilling/on/New/Resources/Mineral/Resource/UpdatesMine/Economics/Study/Update/(w//Zoe)/(PEAF3)Environmental/Impact/Assessment/Revision/ (if/required)Mine/FinancingDecline/Development/(at/Escondida/Far/West)Decline/Development/(at/Escondida/Central/&/East)Advanced/Engineering/and/ConstructionMine/CommissioningCommunity///Social///Environmental Caution: This schedule assumes the timely completion of engineering studies, receipt of various permits, and the availability of capital for the development of the project.
  • 22. 22"Excellent Resource Expansion Potential A Strategic Land Position 1600km2 The Cerro Moro Vein Field (95% XG) Continued resource growth from extensions of existing veins, plus many new drill ready veins Don Sixto (100% XG) Potential beyond existing gold resource Puntudo Project – Santa Cruz (100% XG) 6 silver/gold exploration targets Other Regional Targets – Santa Cruz (100% XG) Falcon, Ventana, Verde, Azul The Fomicruz Joint Venture (XG Earning 80%) Escondida Extensions, Union Domes
  • 23. 23"Cerro Moro Drill Hole Location Map Cerro Moro tenement outline Extorre 14,000 hectare Estancia/ranch purchase (green) Fault Zones Drill Holes outline Fomicruz JV tenement ZOE 5 kilometres 3.0 mile
  • 24. 1.*Zoe* PRIORITY 24" 2.*Zoe*East* EXPLORATION 3.*Belen*NE* 4.*Mar<na* TARGETS 5.*Mosquito*Feeder*target* 6.*Michele* 7.*Romina* 8.*Tres*Lomas*NW* 9.*Esperanza*&*Nini*Extensions* 10.*Gabriela*Extensions* 11.*Carlita,*&*Carlita*to*Deborah* 12.*Escondida*West*Extension* 13.*Escondida*Far*East*Deeps* 14.*Fomicruz*Escondida*Deeps* 15.*Loma*Escondida*East* 16.*Deborah*Parallel* 17.*Esperanza*Parallel* 18.*Agos<na* 19.*Deborah*NE* 20.*Carla*to*Zoe* 21.*Esperanza*to*Carla* 22.*Carla*Deeps* 23.*Loma*Escondida*West* 24.*Natalia* 25.*Silica*Ridges* 26.*Georgina* 27.*Lechuzo* 28.*Lucia*5 kilometres 29.*Deborah*Termina<on*Structure*3.0 miles 30.*Carolene*
  • 25. 25"Ground Magnetics Leads to New Discoveries Over 30 veins identified to date. Detailed magnetic data shows the veins Drilling on new veins underway Priority is to discover high- grade, near surface veins " Black lines = mapped veins 5 km White lines = exploration target
  • 26. 26"Perspective Projection of Nov 2011 Block Models Generalized View Looking North NINI ESPERANZA GABRIELA CARLA ZOEESCONDIDA MARTINA N AuEQ50 g/t Scale: 2 km x 2 km Grid Blue lines: Interpreted Faults Red lines: Mapped Veins
  • 27. Mineralization Open to Depth - Long Sections 27" ZOE Current depths from surface to MARTINA significant mineralization Far West 270 m Central 220 m 320 metres Martina 290 m Gabriela 320 m ESCONDIDA 320 metresFomicruz Far West West Central Far EastMartina GABRIELA 320 metres
  • 28. 28" Cerro Moro Project – Zoe Discovery 1 kilometre 0.5 mile Carla Carlita NMartina ZOE Location of newsignificant drill hole. In progress/awaiting results No significant result Existing holes ESCONDIDA – ZOE LONG SECTION KEY 1.0 km 400 m Fomicruz Far West West Central Far East Martina Zoe
  • 29. 29" 100%*EXTORRE*LANDS* San%Jose%* FOMICRUZ*80/20%*JV** AGREEMENT* Cerro%Negro)* FAVORABLE*VOLCANIC*ROCKS* MINE/ADVANCED*PROJECT* Don%Nicolas% RECENT*DRILLING* FALCON*VERDE Dos%Calandrias% PUNTUDO* Cerro%Moro% UNION*DOMES* Cerro%Vanguardia%* Mina%Martha%* % Manan1al%Espejo% Regional Exploration Targets Falcon, Puntudo…
  • 30. 30"Puntudo Silver Target –South of Joaquin Discovery North Property Boundary Property Boundary
  • 31. 31"Falcon Project –Wide Gold Intercepts North FD004 - 53 - 1.33 - 30 Resis<vity** High 20 O h m . m 10 Low 200 metres
  • 32. 32" News*Flow7*2012**!  Cerro Moro continued drilling announcements every 2 months - new discoveries!  Updated PEA-3 completed, evaluating the potential for staged development!  Start construction of mine decline – mid 2012, evaluate financing options!  Apply for revised mining permit – Q2-2012!  Excellent potential for new discoveries at Falcon and Puntudo properties.
  • 33. 33" Extorre*in*an**Industry*Context*
  • 34. 34" NPV*(M$)Gold*Price*&*Capital* Gold"Price"(US$/oz) Cost 1,056 1,320 1,584 $"415.5" $"512.4" $"609.3" b20% M M M Capital*Cost Base" $"366.3" $"463.2" $"560.1" Sensitivity – Gold Price Case M M M +20% $"319.0" $"415.9" $"512.8" and Capital Cost M M M NPV*(M$) Gold*Price*&* Gold"Price"(US$/oz) Opera<ng*Cost 1,056 1,320 1,584 $"439.1" $"537.0" $"635.0" b20% Sensitivity – Gold Price Opertaing*Cost M M M Base" $"366.3" $"463.2" $"560.1" Case M M M and Operating Cost $"325.1" $"423.1" $"521.1" +20% M M M NPV*(M$) Gold*Price*&* Gold"Price"(US$/oz) Discount*Rate 1,056 1,320 1,584 0.0% $"545.4" $"675.3" $"805.2" Sensitivity – Gold Price Discount*Rate M M M 5.0% $"366.3" M $"463.2" M $"560.1" M and Capital Cost $"246.0" $"320.1" $"394.2" 10.0% M M M IRR*(%) 39% 47% 54%
  • 35. 35" Extorre & the Metals Industry GOLD MARKET SILVER MARKET!  Exploration expenditures are ! Industrial silver demand is expected to increasing yet fewer new resources increase from 487million ounces silver are being discovered in 2010 to 666million ounces in 2015!  New discoveries are replacing less ! This demand could underpin strong than half the current production silver pricesResources versus Gold Production 1997-2008 World Industrial Silver Demand Forecast Source: MEG
  • 36. 36"Mining Analyst Coverage Daniel Earle Michael Gray Daniel.earle@tdsecurities.com Michael.gray@macquarie.com 416 308 7906 604-639-6372 Adam Graf John Hayes agraf@dahlmanrose.com Johnp.hayes@bmob.com 212-702-4527 416-359-6189 David West Imaru Casanova dwest@salmanpartners.com icasanova@mlvco.com 604-622-5569 212.542.5869 Wendell Zerb Wendell.zerb@canaccordadams.com 604 643 7485
  • 37. 37"“Cerro Moro is one of the highest quality gold-silver deposits to be discovered in recent years” Production is scheduled for 2014 www.extorre.com Suite 1660, 999 West Hastings Street Vancouver, BC, Canada, V6C 2W2 Toll Free: 1-888-688-9592 Telephone: 1-604-688-9592