Investor Presentation November 2012


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Investor Presentation November 2012

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Investor Presentation November 2012

  1. 1. Path to ProductionPath to ProductionTimmins, OntarioTSX-V : SGX Aug-Sept 2012 November 2012
  2. 2. Path to ProductionForward Looking StatementsStatements made in this presentation, other than those concerning historical information, should beconsidered forward-looking statements which are subject to various risks and uncertainties. Suchforward-looking statements are made based on management’s belief as well as assumptions made by,and information currently available to, management.The Company’s actual results may differ materially from the results anticipated in such forward-lookingstatements as a result of a variety of factors. Additional information concerning factors that could causeactual results to materially differ from those in such forward-looking statements is contained in theCompany’s filings with the securities and regulatory authorities.Note: All currencies are in Canadian dollars unless otherwise noted 1
  3. 3. Path to ProductionCORPORATE VISION Sage Gold’s short term plans are to develop production on their existing resource to generate cash flow to fund further exploration and potentially develop a leading gold mining company in a world class mining camp.CORPORATE STRUCTURE • Shares O/S: 83.3 million • Shares F/D: 116.6 million • Current price: $0.06 • 52 week high/low: $0.21/$0.045 • Market Cap: C$ 5 million • Average Strike Price of Warrants/Options: $0.34 • Proceeds from Warrants/Options: $10.5 million Exchange Symbol: TSX.V – SGX OTC – SGGDF (USA) 2
  4. 4. Path to ProductionSage Gold Advantage 1. Near Term Production – Clavos Deposit • Sage Gold has access to SAS’s mill in the area and is able to move into production quickly and cost effectively - will generate strong cash flow for the company 2. Blue Sky Potential – Clavos Deposit  Open at depth and on multiple directions along strike  Management will focus on continuing to increase resources 3. Pre-production Financing in Place  $1.5M debt facility with Waterton Global Value L.P  Right of first refusal on Production financing 4. Strong Strategic Partnerships  Clavos Property - Sage and St Andrew Goldfields JV partners (60%-40%)  Providing low cost access to mine and mill  Established infrastructure with $46 million spent on underground development 5. New NI43-101 Mineral Resource announced Oct 23,2012 6. Experienced Management Team 3
  5. 5. Path to ProductionClavos Deposit - Highlights Located in the prolific Timmins Mining camp and close geographically (20kms) to Goldcorp’s (TSX-G) high grade Hoyle Pond mine which has produced more than 2.4 M ozs since 1985 and is still in operation. Existing infrastructure in place including underground ramp access to the 300m level, underground levels developed every 25m, power to site, surface ventilation system, water management system. Low Capex required for production Suite of Permits in place Clavos is also located 10kms from the Brigus Gold mill in Stock Township. 4
  6. 6. Path to ProductionNear Term Production Plans CLAVOS DEPOSIT Timmins, Ontario Q4- 2012  Scoping study (PEA)  Amended Production Closure Plan filed Q1-2 2013  Dewater and Rehab. Mine  Upgrade resources to reserves – Definition drilling  Project Financing Q3- 2013  Start of initial production 2014 - Commercial Production 5
  7. 7. Path to Production CLAVOS DEPOSITExisting Timmins Gold Projects Timmins, OntarioClavos Property - In Good Company Advanced Projects • Lakeshore Gold → Timmins Mine now in production → Current resources of 1.87M oz. Au • Goldcorp → Hollinger Open Pit Scheduled for production in 2013 → Current resources 900,000 oz. Au Near-Term Production Potential • Sage Gold (Clavos) • Lakeshore Gold (Bell Creek, Vogel) • St. Andrew Goldfields (Taylor) • SGX Resources (Tully) • Lexam - VG Gold - (Paymaster West) 6
  8. 8. Path to Production CLAVOS DEPOSITStrategic Partnerships Timmins, Ontario  Joint Venture Partnership – Sage 60%, St Andrew Goldfields 40%  Existing infrastructure and resources in place  SAS $46 million spent for underground development  Underground ramp access to the 300 metre level  Existing buildings and water discharge ponds  NI43-101 compliant resources 7
  9. 9. Path to ProductionTimmins Gold Camps CLAVOS DEPOSIT Timmins, Ontario 8
  10. 10. Path to ProductionClavos NI43-101 Gold Mineral Resource Oct ‘12 Category Tonnes Grade Total Ounces Total Indicated 1,258,400 4.81 g/t 194,600__________________________________________________________________________ Total Inferred 795,600 4.70 g/t 120,000__________________________________________________________________________Note: The 2012 resources are estimated at a cut-off grade of 2.75 g/t Au, high gold assays are cut to 60 g/t Au and an average long-term goldprice of US$1600 per ounce was used. 9
  11. 11. Path to ProductionClavos Resource Categories Oct 2012  4.5 KM strike length 10
  12. 12. Path to ProductionClavos NI43-101 Gold Mineral Resource by Zone Indicated Resources Inferred Resources Grade Grade Ounces Ounces Location Tonnes (g/t Au) Gold Tonnes (g/t Au) Gold Main Zone Hangingwall 595,900 4.92 94,300 119,100 5.6 21,000 Footwall 267,000 5.11 43,900 161,600 4.2 22,000 Contact 237,800 4.45 34,000 0 - - Sediment 66,400 5.07 10,800 243,100 4.2 33,000 Other 0 - - 112,000 6.0 22,000 Total 1,167,100 4.88 183,000 635,800 4.8 97,000 960 Zone Hangingwall 69,900 4.04 9,100 77,000 5.0 12,000 Footwall 10,200 3.91 1,300 51,000 3.5 6,000 Sediment 11,200 3.51 1,300 32,000 4.7 5,000 Total 91,300 3.99 11,700 160,000 4.5 23,000 Grand Total 1,258,400 4.81 194,600 796,000 4.7 120,000 11
  13. 13. Path to ProductionClavos Mineral Resources Oct 2012  4.5 KM strike length 12
  14. 14. Path to Production CLAVOS DEPOSIT Timmins, OntarioExistingClavos OPEN OPEN 960 Zone OPEN OPEN  4.5 KM strike length Ultramafic Sediment Talc Chlorite Schist 13
  15. 15. Path to Production CLAVOS DEPOSIT Timmins, OntarioUnderground Drill Core Photos A-B: Photos from hole CL252-13, 63.1- A 64.3m, illustrating stylolitic white quartz veining with visible gold from a stylolitic quartz vein system with chlorite-carbonate-pyrite altered wallrock slivers that is consistent in style with the en echelon vein arrays. Photos A and B are close-ups of stylolitic ribboned chlorite-rich bands in the system partially zone shown in B, containing multiple B grains and blebs of native gold. Note aggregates of pale grey Fe-carbonate in lower left portion of photo B. The vein system occurs adjacent to a narrow grey porphyry dyke. 594.88 gpt Au (17.35 opt) over 1.2m (uncut) 14
  16. 16. Path to ProductionBOARD OF DIRECTORS Mr. Mars is an independent consultant specializing in mine financing and analysis with over 30 years of experience in thePatrick J. Mars investment industry. Mr. Mars has acted as Chairman, CEO, or Director for several public-traded mining companies and isChairman and Director currently Director of Aura Minerals, Carpathian Gold, Selwyn Resources and Yamana Gold. Mr. Bojtos is a professional engineer with extensive experience in mineral development and production. Since 1996Peter Bojtos following a successful career as CEO of several companies, Mr. Bojtos serves on mining company boards as anDirector independent Director. Mr. Robertson is a Certified Financial Planner. He has worked in the financial industry for the past twenty years, andGary Robertson presently serves on the board of several private companies as well as on the board of six Canadian junior gold miningDirector companies.Joe Baylis Mr. Baylis brings over 23 years of domestic and international mining industry experience to the Company. Mr. BaylisDirector graduated with an LLB from the University of Western Ontario and is a member of the Law Society of Upper Canada. Sandy Chim Mr. Chim is an international business executive. He is the President and CEO of Century Iron Mines Corp. (TSX-FER), a director of Augyva Mining Resources Inc. (TSX.V-AUV) and non executive director of Prosperity Minerals Holdings Limited. Director Mr.Chim resides in Kowloon, SAR, Hong Kong, PRC.Hua Bai Mr. Bai is a Beijing, China businessman. He has investment and commercial experiences covering various fields in ChinaDirector and Vancouver. With more than 20 years of business activities, he has established an extensive business network in China. Mr.Bai is currently the President of Earnlead Investments Inc., Sino Water Holdings Inc., and has held such positions since May 2011. He is a director for Century Iron Mines Corporation (TSX.V-FER). 15
  17. 17. Path to Production MANAGEMENT and CONSULTANTS ManagementC. Nigel Lees Mr. Lees is a founder and past director of TVX Gold Inc., a significant gold producer in North and South America, which merged into Kinross Gold, listed on the TSX and the New York Stock Exchange. Mr. Lees has over 30 yearsPresident, CEO and Director experience in the Canadian investment industry and is currently a Director of several publicly traded mining companies including Yamana Gold.William D. Love Mr. Love is a geologist who has been involved in mineral exploration in Canada and was part of the world class Hemlo discovery team. He was also an institutional equity salesperson in London, England, for a Canadian brokerage firm.VP and Business Development Mr. Love has spent the last fifteen years as a venture capitalist and a corporate finance specialist in a variety of resource and technology companies.Ron ReedChief Financial Officer Mr. Reed is a CGA with an MBA ( Finance) from the NY Institute of Technology. He has more than 20 years of senior experience in implementing financial business strategies and has been involved in more than 15 acquisition and divesture transactions. Since 2009 he has been providing CFO services in the mining sector.Michael SkutezkySecretary and Legal Counsel Mr.Skutezky was Assistant General Counsel of Royal Bank for 25 years focused on International Project financing based in Montreal and Toronto, in addition to working in Eastern Europe with Canadian Law Firms. He has recently formed his own professional corporation for the practice of law and is the principal of Rhodes Capital Corporation.Mike O’BrienCommunications Manager, Investor Mr. O’Brien has over 30 years of sales, marketing and business development experience in the Mining andRelations Telecommunications industry. He is also the Communications Manager and Head of Investor Relations for Carpathian Gold and has been with both firms since 2006. Consultants Mr. Peter Hubacheck is a consulting geologist and President of W. A. Hubacheck Consultants Ltd. He has over 35 Peter Hubacheck years of experience as a project geologist, exploration manager and Qualified Person for the purposes of NI 43-101, P.Geo, QP with experience in the exploration for gold, silver, base metals, uranium and diamonds in Canada and the USA. He holds a Mining Technologist (1974) diploma from the Haileybury School of Mines and Technology, Haileybury, Ontario and a B.A.Sc. (Geol. Eng. 1977) degree from the South Dakota School of Mines and Technology, Rapid City, South Dakota. Bob Ritchie Mr. Ritchie is a Professional Engineer with over 40 years of experience in mine management and development, Mining Engineer feasibility studies and mine construction. He has worked with several mining companies including Goldcorp, Noranda Mines and St. Andrew Goldfields. He was responsible for the construction of the Stock (now Brigus Gold) Mill which is 10 kms from the Clavos mine. Mr. Ritchie is a graduate of the Michigan Technological University with a Bachelor of Science in Geology Engineering. He is also a Qualified Person (QP) as defined by NI43-101. 16
  18. 18. Path to ProductionSage Exploration Properties Beardmore Geraldton Gold Camp Joint Venture Potential • Properties - Onaman - Lynx Deposit, NI43-101 compliant resource Paint Lake (adjacent to Brookbank Gold Deposit) Jacobus (Cu/Ni), Clist Lake (Au) • Infrastructure in place - Road, Rail, Power • Underexplored; Potential for large gold deposits - i.e. Red Lake • Option agreement - MetalCorp (70% interest) in Solomon’s Pillars • Ongoing negotiations with potential joint venture partners. 17
  19. 19. Path to ProductionOnaman LYNX DEPOSIT Beardmore, Ontario Lynx NI43-101 Open Pit Resource 485,000 tonnes 2.1 % Cu, 45.3 g Ag/T, 0.70 g Au/T at 1% Cu cut off Lynx NI43-101 Resource 1.936 million tonnes, 1.44% Cu 39.6 g Ag/T, 0.58 g Au/T Yellow = .5% Cu x 3 metres – Cut Off Red = 1% Cu x 3 metres 18
  20. 20. Path to ProductionWhy Invest in Sage Gold  Compliant Resources • Established resource to fast track production  Near Term Production • Milling Contract in process with the St. Andrews Mill to deliver ore  Pre-production financing in place • Waterton is potential production financing partner  Low Capex / Fast Payback  Strong potential to increase tonnage through further in-fill and exploration drilling  Strategic acquisitions being evaluated to augment the companys resources and production potential  Ideal Market Timing • Low market capitalization 19
  21. 21. Path to ProductionContact InformationSage Gold Inc. Investor Cubed Inc.365 Bay Street, Suite 500 67 Yonge St., Suite 1000Toronto, ON M5H 2V1 Toronto, ON M5E 2J8Tel.: 416 204-3170 Tel.: 1-888-258-3323Fax: 416 260-2243 Fax: 416 info@investor3.caMike O’Brien – Neil SimonCommunications Manager;Investor Relations 20