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Eagle mountainjan13presentation

  1. 1. GOLD IN GUYANAWorking to become a mid-tier gold producer in 2014 January 2013 1
  2. 2. 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
  3. 3. Mission To leverage our significant gold deposit andcommence production, generating cash flow to accelerate to mid-tier producer 3
  4. 4. Investment Highlights Advanced Eagle Mountain gold project in Guyana Over 980,000 ounces of gold in updated NI 43-101-compliant resource 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 Entry opportunity: Low market cap to peers, over $16M spent to date Support of strong corporate and institutional shareholders (IAMGOLD, Sprott, etc.) 4
  5. 5. Project Overview Advanced Eagle Mountain gold project in Guyana  Mining friendly  English-speaking jurisdiction  With a stable democracy based on British law Project contains an existing shallow NI 43-101-compliant resource:  188,000 ounces (indicated), average grade of 1.49 g/t gold (0.5 g/t gold cut-off) and  792,000 ounces (inferred), average grade of 1.19 g/t gold (0.5 g/t gold cut-off) Existing resource covers just 250 hectares inside 5,050-hectare property Deposit is open in three lateral directions and at depth 5
  6. 6. 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 6
  7. 7. 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 7
  8. 8. Eagle Mountain: Work Completed to Date Advanced 5,050-hectare gold project with near-term production potential 281 holes drilled totaling 35,993 metres  78 drill holes (10,850 metres) completed by Eagle Mountain  Remaining holes completed by predecessors including IAMGOLD Known resource covers only 250 hectares inside the 5,050-hectare property  Deposit remains open in three lateral directions and at depth  Excellent historical database (geophysics, adits, extensive sampling, auger drilling, LIDAR, etc.) Over $16 million spent on exploration work at Eagle Mountain to date 8
  9. 9. 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:  Move part of the geological resource from inferred to indicated  Expand the total number of ounces  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:  24.19 metres at 9.1 g/t gold from surface to 24.19 m depth (EMD11-76 – Zion)  19.05 metres at 3.13 g/t gold from surface to 19.05 m depth (EMD11-83 - Bottle Bank)  7.80 metres at 30 g/t gold from 36 to 43.8 m depth (EMD11-85 - Bucket Shaft)  42.20 metres at 0.97 g/t gold from surface to 42.2 m depth (EMD11-77 –Zion) 9
  10. 10. Eagle Mountain: Geology and Geochemistry
  11. 11. Eagle Mountain: NI 43-101 2012 Block Model vs 2010 Block Model Historical & Current Drilling Shown 11
  12. 12. Eagle Mountain: New NI 43-101Typical cross-section across the NE part of the deposit 12
  13. 13. Eagle Mountain: 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 13
  14. 14. Strategic Timeline A CATALYST FOR GROWTHQ4 2012  Successfully expanded gold resource - updated NI 43-101-compliant resource represents 34% increase from November 2010 resource outlineQ1 2013  Commence Environmental Impact Assessment (EIA) report in support of 2013 mining permit application - ensure compliance with all Guyanese environmental regulations and global best practices  Commence Scoping Study/Preliminary Economic Assessment (PEA) 14
  15. 15. Strategic Timeline – continuedQ1 2013 (continued)  Commence engineering, mineralogical and metallurgical studies  Discussions and legal on entry into other small-scale gold production opportunities in GuyanaQ2 2013  Complete independent Scoping Study and Economic Assessment Report, costing model to support initial production of 35,000 to 45,000 ounces gold annually  Commence 2013 dense resource-outline drilling at Eagle Mountain  Commence full Feasibility Study based on Scoping Study results  Pursue further technical engineering tests as part of Feasibility Study work 15
  16. 16. Strategic Timeline – continuedQ3 2013  Commence discussions regarding mining permit and minerals agreement with Guyana’s Ministry of Natural Resources and the EnvironmentQ4 2013  Submit application for mining permit and minerals agreement  Complete Feasibility Study  Expected approval for mining permit and minerals agreement2014  Commence development and production 16
  17. 17. 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 17
  18. 18. Further Expansion Potential Eagle 10 km Significant Targets for Mountain Expansion PL Area Enclosing EM Au Mowasi Deposit Gold’s Properties Current size of Eagle Mountain Au Significant targets with Au mineralization within Deposit Eagle Mountain PL (e.g. Bishop Growler) and at Mowasi Option agreement in place to earn up to 95% of adjacent Mowasi Gold property Mowasi covers 17,000 hectares + additional rights of first refusal History of artisanal gold mining at Mowasi from alluvial workings and saprolite 18
  19. 19. Management and Directors - 277+ Years of ExperienceYannis Tsitos, President, CEO & DirectorPhysicist/geophysicist with 25 years experience in the mining industry. 19 years with BHP Billiton,the last nine as senior business development manager global minerals exploration. Worked onexploration and business deals in 32 countries. Important role in two major discoveries. Majorglobal mining network. Strong experience in Guyana.Geoff Hampson, Chairman & DirectorA private equity investor and businessman with 35 years experience in startups, turnaroundsituations and M&A. Has been involved in building and selling private and public companies inthe mining, oil and gas, manufacturing, Internet and medical fields. Done business in Brazil,Eastern Europe, China and North America.Anne Casselman, Exploration & Country Manager, GuyanaSenior Geologist with 20+ years experience in precious metal exploration (Newmont, GoldenStar, Cambior, IAMGOLD). Strong experience in Guyana. Has worked on Eagle Mountain projectfor the last six years, playing a major role in its expansion and exploration success.Art Freeze, P.Geo., DirectorImpressive 45 years of experience as an exploration and production geologist (e.g., Cominco,Pasminco, Echo Bay, Pan American Silver, Stillwater). A principal consultant to Goldcorp Inc till2007. Current Director of Orex Minerals, Mr. Freeze acts as a Consulting Geologist & AdvisoryBoard Member for Orko Silver Corp. 19
  20. 20. Management and Directors - 277+ Years of ExperienceLuiz Bizzi, DirectorBrazilian geologist and Certified Investment Analyst with over 27 years experience . PhD, MBA, and past explorationmanager for South America for BHP Billiton. Dr. Bizzi was also the Director of Geology and Mineral Resources at CPRM –the Brazilian Geological Survey and a Senior Consultant at the Brazilian Development Bank.Jim Heras, Chairman Emeritus, Director & Founder40 years experience as a businessman and investor in numerous private and public ventures, including several successfulmining companies (President of St. Phillips Resources - Kemess Gold/ Copper Mine). Director of various companies inCanada.Tim Crowhurst, Director20+ years experience as a senior-level business manager and public policy communicator, specializing in internationaltrade, political affairs, corporate restructuring and turnaround, and business development. He has also served as CEO forseveral mining exploration companies.Geoff Watson, Director30+ years of experience in the securities industry, with majority spent in the brokerage community (retail and institutionalclient management) and the financing of numerous public ventures. He has also overseen the financial affairs of severalNorth American public companies.Albert Wu, CFOCertified Management Accountant, B.Com., MBA, with over 35 years experience as CFO of several public medium sizeexploration and mining companies. 20
  21. 21. Eagle Mountain: 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 21
  22. 22. Share InformationListed TSX.V: Z OTCQX: SDMTD Frankfurt: E9XShare Structure (as at December 27, 2012) Issued 33,847,280 Warrants 19,638,250 Options 1,220,000 Fully Diluted 54,705,530Major Shareholders Management and insiders: ~15% Sprott Gold & Precious Metals Fund: 3.8% IAMGOLD: 7.6% European holdings: estimated at approx. 10-12%Market Capitalization (as at January 22, 2013) ~$11.1 million52-Week Range (as at January 22, 2013) $0.14 to $1.45 22
  23. 23. 2013 Budget - Use of Proceeds Q1 2013 Q2 2013 Q3 2013 Q4 2013 Total for Year All figures in US$ Remarks (Jan-Mar) (Apr-Jun) (Jul-Sep) (Oct-Dec) 2013Engineering, Metallurgical, Environ. & DELIVERABLES/MILESTONES 330,000 340,000 360,000 290,000 1,320,000 A. Two new Resource Outlines (NI43-FS Studies (Eagle Mountain) 101) in January and November.Drilling & Analysis (Eagle Mountain) 125,000 750,000 750,000 400,000 2,025,000 B. A Preliminary EconomicMowasi Project 25,000 0 150,000 75,000 250,000 Assessment Report in April. C. Additional in-fill & expansion drillingCamp Costs & Support (sal.) 130,000 145,000 145,000 140,000 560,000 to prove more ounces and move more to M+I categ.Georgetown Office & Taxes/License 17,000 12,000 12,000 67,000 108,000 D. Deliver Environmental Base Study Total Guyana 627,000 1,247,000 1,417,000 972,000 4,263,000 & EIA (end of 2013). E. Metallurgical, Engineering Studies - commence Feasibility Study in Q2 and deliver it in either Q4 or Q1Vancouver Head Office, including IR,Regulatory, Accounting, Expat. Salaries, 350,000 270,000 270,000 300,000 1,190,000 2014.Overheads, etc. F. Commence Project Permitting Phase & Mining License (Q4). Total Canada 350,000 270,000 270,000 300,000 1,190,000 TOTAL: $5,453,000Option for immediate “Small Scale Au Opportunity Based. Subject toProduction”. Capture & deliver in 75,000 250,000 250,000 100,000 100,000 machinery costs and cash flow,Q2/Q3.* incremental expansions feasible. TOTAL CASH OUTFLOW 1,052,000 1,767,000 1,937,000 1,372,000 6,128,000Cash from Equity Financings (net of Total Equity Financings: 1,375,000 2,775,000fees) $1.5m (Q1) & $3m (Q2)Net Cash from “Small Scale Operation” Expected ounces sold: Q2: 250oz, Q3: 225,000 900,000 1,800,000 2,925,000Assuming $900/oz margin* 1,000oz, Q4: 2,000oz TOTAL CASH INFLOW 1,375,000 3,000,000 900,000 1,800,000 7,075,000 NET CASH AT PERIOD’s END 423,000 1,656,000 619,000 1,047,000 23
  24. 24. Juniors in Guyana Company Name Symbol Capitalization* Au Resource (M+I+I)* Main Project/s US$ millionGuyana Goldfields GUY: TSX 349 8 million + Aurora, ArankaSandspring Resources SSP: TSX-V 60 10 million Toroparu (Au & Cu)Azimuth Resources AZH: ASX (also TSX-V) 127 1.22 million West Omai, East OmaiSacre Coeur Minerals SCM: TSX-V 9 450,000 Million Mountain Marudi Mountain, Sardine Hill,Guyana Frontier Mining GYG: TSX-V 3 420,000 (non-compliant) Five Star, Guiana ShieldMadhia Gold MGD: SNSX 27 non-compliant Omai pit, Tiger River Aranka North – Also explorationCanamex Resources CSQ: TSX-V 28 exploration properties in Nevada Kaburi – Also exploratiopnTajiri Resources TAJ: TSX-V 1.5 exploration properties in CanadaTakara Resources TKK: TSX-V 1 500,000 Tassawini, ArakakaGPM Gold GPM: TSX-V 13 55,000 Peters Mine, AremuEAGLE MOUNTAIN GOLD CORP Z: TSX-V 11 1 million Eagle Mountain * January 24, 2013 24
  25. 25. Summary Eagle Mountain, a high-quality gold resource approaching 1 million ounces with near-term production and cash flow potential Project has excellent potential for expansion, both land and resource Guyana is an established, mining-friendly regime Property has excellent access and is in close proximity to existing infrastructure Proven, experienced management and operating team 25
  26. 26. Thank You For more information, please contact:Eagle Mountain Gold Corp., Investor Relations 1-866-437-9552 +1-416-489-0092 ir@eaglemountaingoldcorp.com www.eaglemountaingoldcorp.com 26
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  28. 28. Medium-Term Growth Strategy Expansion toEagle Mountain 100,000+ oz/y Au Deposit Eagle Mountain Production Scoping Study Au DepositFeasibility Studies 35k – 45k oz/y Mine Initial Production Eagle Mountain Development 35k – 45k oz/y Initial Production Main Task: Eagle Mountain Gold Deposit Development to mid-tier Production Supporting Strategy One: Small Scale Au Achieve entry in small-scale production (positive Production cash flow situation) 5k-10k oz/y Aggressive M&A Supporting Strategy Two: Activities Aggressive and opportunistic M&A activities 28
  29. 29. Small Scale Gold Production Initiative “To Achieve a Stream of Income” within Q2 or Q3 2013 MissionTo leverage in 2013 the strong gold environment, the fact that Guyana is full of alluvial/eluvial/hard rock goldoccurrences and our excellent local network in order to commence or participate in a small-scale Auproduction, generating cash flow to limit equity dilution and ultimately accelerate the development of ourflag ship project Eagle Mountain to a mid-tier producer, while expanding its resource. Strategic Targets for 2013  Negotiate and enter into one or two small-scale Au operations over alluvial and eluvial ore areas in Guyana. mobilize cheap, modular plant/s and capture positive cash flow in Q3 2013  This could be achieved via different scenarios, either an own, EMGC-controlled subsidiary or engage EMGC in a JV, as long as EMGC earns and controls a majority interest  Target areas are prioritized and currently assessed for technical, metallurgical and legal options  Processing plant and senior operating team with significant experience identified 29
  30. 30. Strategic Timeline for Small-Scale Production Activities2013  Q1 – Complete prioritization of targets, negotiations and legal, permitting issues  Q1 – Analyze mobile plants and processing requirements  Q1,Q2 – Import appropriate plant in Guyana  Q2 – Mobilization of plant to site, HR issues  Q2 – Set-up, testing, dry runs and bulk samples  Q3 – Commence production, confront initial problems and fine tuning  Q3 – Support the operation with additional local exploration – quick and dirty !!  Q4 – Potentially increase capacity with second plant in a different area, scaling of business operations 30
  31. 31. Identified Areas of Interest for Rapid Au Production Madhia Area (Local roads & Infrastructure indicated) Road to Omai & Georgetown (capital of Guyana) Madhia Town & Airstrip Bishop Growler Eagle B A Mountain PL CEM deposit Essequibo C River 31
  32. 32. Mobile Au processing Plant Identified 32
  33. 33. Competition in Guyana – Comprehensive Technical AnalysisCompany has completed an analysis of most junior company projects and corporationsoperating in Guyana in the gold sector – discussions in progress on selected opportunities,including:Aranka North – Imotai Bishop GrowlerAremu deposits Kaburi TajiriArrowhead’s Gobin and Puruni Makapa project (Guyana Shield Resources)Guyana Goldfields’ Aurora NosenoEast Omai and West Omai (Azimuth) Omai (Madhia Gold)GMV’s general exploration properties Peters MineSacre Coeur’s Million Mountain Tassawini and Arakaka (Takara - Alicanto)Toroparu deposit (Sandspring) Tiger RiverGuyana Frontier (Sardine Hill and Marudi Mountain) Tamberlin (Gold Port)Black Wolf Resources – Macedonian Creek andKonawuruk operations 33