Canada Gold February 2013 Shareholder Presentation
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Canada Gold February 2013 Shareholder Presentation

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Canada Gold is a Canadian gold exploration and development company focused on the newly optioned Northern Arm Gold project located within the Hemlo Greenstone Belt in north central Ontario, ...

Canada Gold is a Canadian gold exploration and development company focused on the newly optioned Northern Arm Gold project located within the Hemlo Greenstone Belt in north central Ontario, approximately 10 kilometers north of Barrick Gold Corporation’s Hemlo deposit. The original Hemlo deposit was discovered in 1981 and the Hemlo Mines have since produced more than 20 million ounces of gold while 250,000 ounces of gold are currently being produced per annum. Strong potential exists for additional discoveries in the Hemlo region, though limited exploration has occurred in the area despite having very similar geology to the Hemlo Mines deposits. The Northern Arm Property straddles approximately 90% of a 40 kilometer long, gold prospective geological trend that has yet to be systematically explored. The Company is currently planning an aggressive 2013 exploration program for the property.

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Canada Gold February 2013 Shareholder Presentation Canada Gold February 2013 Shareholder Presentation Presentation Transcript

  • February 2013
  • Canada Gold is a Vancouver based Junior Gold Explorer focused in the Northern Arm Gold Project located in the Hemlo Mining District, Ontario, Canada.1
  • On January 30th, 2013, Canada Gold Optioned Up To a 75% Interest in the 155km2 Northern Arm Gold Property, Ontario, From Entourage Metals Inc. The Option Includes a Right of First Refusal to Purchase The Remaining 25% Interest at a Later Date.2
  • The Northern Arm Property  The Northern Arm Property is located within the Hemlo Greenstone Belt in north central Ontario, approximately 10 kilometers north of Barrick Gold Corporations Hemlo deposit.  The original Hemlo deposit was discovered in 1981 and the Hemlo Mines have since produced more than 20 million ounces of gold while 250,000 ounces of gold are currently being produced per annum. Strong potential exists for additional discoveries in the Hemlo region, though limited exploration has occurred in the area despite having very similar geology to the Hemlo Mines deposits.  The Northern Arm Property straddles approximately 90% of a 40 kilometer long, gold prospective geological trend that has yet to be systematically explored.  Entourage Metals has recently consolidated the Property area for the first time as it was previously staked and owned by various smaller entities and groups. 3
  • Historical Work  The compilation of historical exploration data shows that there are significant mineral occurrences that have been historically identified on the property with multiple deposit styles (Ontario Geological Survey, Map 2614), the highlights of which are shown below:  Volcanics: Caravelle No.4: 7.70% Cu, 0.24% Pb, 4.28 % Zn, 8.23 g/t Au, 116 g/t Ag (drill hole grab).  Kusin Showing: 10.7% Zn, 8.9% Pb and 85.7 g/t Ag (trench grab).  Carroll Occurrence: 6.85 g/t Au, 0.54% Zn, and 70 g/t Ag (trench grab).  Iron Formations: Season Lake Occurrence: 1.03 g/t Au (stripped outcrop grab).  Qued Occurrences: Up to 8.85 g/t Au (OGS grab).  Porphyries: Hemlo Gold Occurrence: 37.35 g/t Au over 1.0 meter (old drill hole).  The Ontario Government has also completed a thorough aeromagnetic/electromagnetic survey over the property area using 100 meter spacing. 4
  • Recent Work  In the summer of 2012, Entourage commenced an initial soil sampling, geological mapping and prospecting program on the Northern Arm Property. For reference, the Northern Arm Property has been subdivided into several project areas, including the Valley Lake, Gowan Lake, Hemlo North, Theresa Lake, and White Lake areas.  A total of 1,980 soil samples were recently collected from the Gowan Lake area covering the northwestern portion of the Northern Arm Property. The majority of the area is covered by glacial till and while the mean value of gold samples over this portion of the Property was less than the detection limit (1 ppb) with the 95 percentile at 7 ppb Au, 14 samples exceeded the interpreted threshold limit, ranging from 47 ppb to 1,800 ppb Au, with a median value of 341 ppb Au. Of significance was the spatial association of these anomalous samples forming distinct clusters and trend lines; suggesting underlying bedrock and structural control. The highest gold value is associated with a four kilometer trend of anomalous gold in soil, parallel with the geological contact between intrusive and volcanic rocks. These lithogeochemical contacts are commonly sites for gold mineralization within Archean rocks and these initial findings bode well for the exploration potential of the Northern Arm Gold Property. 5
  • Terms of the Northern Arm Option  In order to exercise the Option, Canada Gold will be required to complete the items referred to in paragraphs 1 and 2, below.  To earn a 65% interest in the Property, Canada Gold will complete the following (the "65% Option"):  Year 1:  Pay $10,000 to the Vendor upon TSX Venture Exchange Approval;  Pay $40,000 to the Vendor at least 10 days prior to the first date in 2013 by which the Vendor is required to make a cash option payment under an underlying option agreement(s) to maintain such option in good standing;  Spend $300,000 in work on the Property and issue 250,000 common shares to the Vendor by December 31st, 2013;  Year 2:  Pay $50,000 to the Vendor at least 10 days prior to the first date in 2014 by which the Vendor is required to make a cash option payment under an underlying option agreement(s) to maintain such option in good standing; and  Spend $450,000 in work on the Property, and issue 250,000 common shares to the Vendor by December 31st, 2014;  Year 3:  Pay $75,000 to the Vendor at least 10 days prior to the first date in 2015 by which the Vendor is required to make a cash option payment under an underlying option agreement(s) to maintain such option in good standing; and  Spend $750,000 in work on the Property and issue 250,000 common shares to the Vendor by December 31st, 2015;  (cont.) 6
  • Terms of the Northern Arm Option Agreement (cont.)  Year 4:  Pay $75,000 to the Vendor by June 30, 2016; and  Spend $1,000,000 in work on the Property and issue 500,000 common shares to the Vendor by December 31st, 2016;  Canada Gold will earn an additional 10% in the Project for total of 75% by completing the following by December 31st, 2017 (the "10% Option"):  Spend $1,000,000 in work on the Property, pay the Vendor $75,000 and issue 500,000 common shares to the Vendor; and  Complete a National Instrument 43-101 compliant resource calculation on the Property.  Should Canada Gold at any time file a National Instrument 43-101 compliant resource estimate indicating 1,000,000 million ounces of gold or greater, the Company will make a one-time payment to the Vendor consisting of 1,000,000 common shares.  Upon full exercise of the Option or, if the 65% Option is exercised but the 10% Option is not exercised, upon termination of the 10% Option, a joint venture will be formed between the parties with the party having the greatest interest (initially Canada Gold) as Operator and the parties will enter into a Joint Venture agreement which will provide for, among other things, the assumption by the parties pro-rata in accordance with their respective interest in the Property of the obligations under underlying agreements and royalties and a 30 day Right of First Refusal to purchase the other party’s interest in the Property. 7
  • Corporate Structure  Shares Outstanding  Approx. 14 million  Fully Diluted  Approx. 16 million  Trading Range:  $0.08 - $0.12  Management Ownership  30%  Distribution  Over 650 Shareholders  * Note* Approximately 12 parties collectively own 50%+ of the issued shares 8
  • Management Team  A diverse team with decades of experience in international mining, operations, engineering, construction, production, environmental controls, government relations, corporate finance, accounting, and communications.  CHAD MCMILLAN, B.A. (Cmns) - President & CEO  A Simon Fraser University graduate with a Bachelor of Arts in Communications. Chad has 10 years of experience in communications, sales & marketing, management, capital markets, and consulting to the resource exploration industry, having worked with such companies as Yorkton Securities Inc., Pro Line Sports Ltd., and Club Med Inc. He operates a private consulting firm, Animus Ventures Inc. and he is a Director of Canada Strategic Metals Inc. (tsx.v: CJC), a junior exploration company with a large graphite focused exploration portfolio in Quebec, commencing its initial exploration program in 2013.  DAVE MCMILLAN - Chairman, Director  With over 40 years in the resource industries, Daves career has spanned manufacturing, marketing, sales and financing, including 17 years as an Investment Advisor as VP, Senior VP, Director, and member of the Executive Committee for Yorkton Securities and Yorkton Holdings Inc. Dave holds board positions on several publicly traded oil & gas and mining companies, and is an advisor to various venture capital companies.  9
  • Management Team  PAUL LEMMON, P.Geo, FGS, Pr.Sci.Nat - Chief Geologist  A professional geologist licensed by the Association of Professional Engineers and GeoScientists of New Brunswick, has held directorships of several exploration companies and is currently President of Northern Lights Exploration Services Corp., an exploration services consulting company based in New Brunswick, Canada; and Chief Geologist of CopperZone Resources Ltd. (Zambia), DiaGeo Resources Ltd. (Tanzania), and GWN Gold Inc. (Mali). Mr. Lemmon, a Professional Graduate of United Kingdoms Institute of Materials, Minerals, and Mining, is a member of several professional associations, a Fellow of the Geological Society of London UK, and was educated at Mt. Allison University in New Brunswick, and Universite de Strasbourg, France.  KELSEY CHIN, B.Comm - Chief Financial Officer, Corporate Secretary  Kelsey has over 9 years experience in audit, finance and accounting within the mining and exploration industry and has been responsible for all aspects of financial services, financial reporting, and corporate governance for publicly listed exploration companies. She is currently Chief Financial Officer and Corporate Secretary of Canada Strategic Metals Inc., a publicly listed junior exploration company, and is completing her CGA designation.  AL FABBRO - Independent Director  Mr. Fabbro has over 30 years experience in both the finance and mining industries. From 1984 to 1990, Mr. Fabbro headed the retail trading department of Yorkton Securities, followed by six years with Yorktons Natural Resources Group. Most recently and for the past ten years, Mr. Fabbro was an investment advisor with Canaccord Capital, specializing in the natural resource sector. He recently left Canaccord Capital to pursue opportunities in the public sector. Currently he is an Executive & Director of several private and public mineral exploration companies.10
  • 2013 Work Program  While these results are encouraging, the systematic exploration of this large trend is just underway. The Companys Northern Arm exploration program will be Operated by Entourages exceptional exploration team which include several members credited with the discovery of Underworld Resources 1.6 million ounce White Gold deposit located in the Yukon, Canada, and sold to Kinross Gold Corporation for US $135.3 million in 2010, as well former Senior Geologists of Barrick Gold intimately involved in the expansion of the Hemlo Mines.  The 2013 exploration program for the Northern Arm Property will fall under the supervision of John C. Florek, P.Geo, Vice-President of Exploration for Entourage Metals, who is a Qualified Person as defined by National Instrument 43-101. Mr. Florek is an avid geologist with over 20 years experience in mineral exploration and development. He is a Professional Geologist and holds a MSc in the Geological Sciences. His role prior to joining Entourage Metals was as Senior Geologist with Barrick at Hemlo Mines, where he was intimately involved in extending the mine life at Hemlo Mines. He was also part of the team that received the 2008 Developer of the Year Award, awarded by the Northwestern Ontario Prospectors Association. Mr. Florek was previously responsible for the management and execution of mineral exploration for Placer Dome and BHP Minerals and has explored for a broad range of commodities (principally gold, base metals, and nickel) throughout Canada, the United States, Australia, Europe, Central America, and South America. Mr. Florek prepared and approved the information contained in this release.  In 2013, Canada Gold and Entourages shareholders will benefit from an aggressive and systematic exploration program targeting this large and promising Northern Arm trend, scheduled to start as soon as possible, which will include additional geological mapping, ground induced polarization (IP) surveys, further rock & soil sampling, mechanical trenching, and drilling. Access to the Northern Arm Property is excellent via the Trans- Canada Highway, which connects to Route 614 that bisects the Property and links to additional logging roads throughout the area. More information on this exploration program will be provided when available.11
  • In Summary  With this timely acquisition, Canada Gold now represents a pure Canadian gold play in a promising and largely underexplored Canadian district.  The Company has an exceptional share structure and experienced management team.  A Canada Gold discovery in this district may benefit from a natural potential Senior Partner which has already established all requisite production and processing facilities.  The Northern Arm Project features many of the characteristics we all look for in an attractive mining project; a large prospective target area, similar geology and close proximity to an existing discovery, nearby production infrastructure, excellent access, located in a stable jurisdiction, and led by a strong technical management team.12
  • Forward Looking Statements Certain statements contained in this presentation constitute “forward-looking statements”. Such statements reflect the current views of Canada Gold Corporation (“Canada Gold”) with respect to future events and are subject to certain risk, uncertainties and assumptions, including, without limitations, general market conditions, commodity prices, interest rates and exchange rates, seasonality of operations, growth, acquisitions strategy, integration of new equipment into Canada Gold operations, dependence on senior management, regulation, competition, risk of pending and future legal proceedings, employees, labor unions, weather, fuel costs, access to industry and technology, insurance, future capital needs, debt service and the sale of additional securities. Many other factors could also cause actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements and readers are cautioned that the forgoing list of factors is not exhaustive. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary materially from the projections described herein. The forward looking statements in this presentation are expressly qualified by this cautionary statement. Canada Gold does not undertake any obligation to update or revise any of the included forward looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law. The forward looking statements in this document are provided for the limited purpose of enabling potential investors to evaluate and investment in the securities of Canada Gold. Readers are cautioned that such statements may not be appropriate, and should not be used, for other purposes.13
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