SAN DIMAS ANALYSTS TOUR
October 2010
TSX:P
2
Cautionary Statement
This presentation may contain “forward-looking” statements within the meaning of Canadian sec...
TSX:P
3
Agenda
TSX:P
Safety Induction
Underground and Surface Operations.
Required PPE:
 Hard Hat
 Safety Vest.
 Steel-toe boots/shoes...
TSX:P
Safety Induction
For some activities special equipment must be used
Be aware of signage in specific areas
5
TSX:P
Safety Induction
Surface / Underground driving
Be an approved driver
Obey speed Limit
Buckle up your safety belt
Bac...
TSX:P
Safety Induction
Right of Way for vehicles:
1. Ambulances on duty
2. Trucks transporting hazardous materials
3. Haul...
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Safety Induction
In Underground Operation:
1. Sign in with the Security Guard
2. Do not exit from vehicles in motion...
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9
Agenda
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10
San Dimas Location
San Dimas
Gold-Silver Mine
DURANGO, MEXICO
Mazatlán
Durango
Ventanas
Exploration Property
DURA...
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11
San Dimas History
1890 San Luis Mining Company began operations in México
1961 Minas de San Luis is formed with 5...
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12
Introduction
More than 100 known veins in the district
Thickness of veins varies from 0.10m up to 15m, avg. 1.50m...
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13
Historical Production (1990-present)
New High Grade Impact?
0.00
1.00
2.00
3.00
4.00
5.00
6.00
7.00
8.00
9.00
-
2...
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San Dimas
2010 Guidance
Goldcorp Inc. Primero
Reported
Jun 30,
2010
Unaudited
Jul 1, 2010 to
Aug 5, 2010
Estimated
A...
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15
Agenda
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People
San Dimas Headcount : 1,080
16
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People
17
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Human Resources
Selection
Recruitment
Training
Types of personnel handled:
Unionized Employees
Salaried Employees
Co...
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National Union Negotiation
Collective bargaining
Wages
Clauses review
Bonus review
Special bonus negotiation
Contrac...
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People
2 Maintenance programmers
5 Process plant supervisors
2 Maintenance supervisors
2 Mine supervisors
3 Surveyor...
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People
1 Mine superintendent assistant
1 Plant assistant superintendent
1 Chief Metallurgist
1 Geologist
1 School Pr...
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22
Agenda
TSX:P
World Class Safety Policies
23
TSX:P
Central Committee
 Chaired by the General Manager
 Permanent members, all the
superintendents of operations and se...
TSX:P
Who else has a commitment in Safety?
The procedures and work instructions for each
one of the operative areas of the...
TSX:P
Who else has a commitment in Safety?
2. DELTA
Development on the personal values; focus in safety values
Behavior tr...
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Awards
•1st Place National Contest , First
Aid ( Bleeding, Fractures)
•1st Place National Contest
Biopack- Biomarin
...
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0 200 400 600 800 1,000 1,200 1,400 1,600
Local 22
Local 21
Salaried
Contractors
LaRoca
Local 8
DSD
Days
Days withou...
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Lost Time Injuries
13
6
9 9
3
2
0
5
10
15
2005 2006 2007 2008 2009 2010
All incidents
59
65 61
53
31
18
0
20
40
60
8...
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30
Agenda
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Community Relations
1) Tayoltita 1) New Truchas
2) San Dimas 2) Huahuapan
3) Rincón de Calabazas 3) San Antonio de l...
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Strategic AreasHEALTH
EDUCATION
DEVELOPMENT
SOCIAL
COMMUNITY
LINKING AND COMMITMENT WITH THE
COMMUNITY AND ITS DEVEL...
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Strategic AreasHEALTH
EDUCATION
DEVELOPMENT
SOCIAL
COMMUNITY
LINKING AND COMMITMENT WITH THE
COMMUNITY AND ITS DEVEL...
TSX:P
HEALTH
EDUCATION
DEVELOPMENT
SOCIAL
COMMUNITY
LINKING AND COMMITMENT WITH THE
COMMUNITY AND ITS DEVELOPMENT
SOCIAL
I...
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PRODUCTION PROJECTS
SUSTAINABLE ALTERNATIVE
Community Development
35
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Recognition
b) Award granted by
Mexican Center for Philanthropy (CEMEFI)
third consecutive year.
a) Communities reco...
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37
Agenda
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Mine
Service Ramp
38
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Mine
Drilling
Blasting
Bolting
Hauling Mucking
39
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Plant’s Flowsheet
40
“EL PERIHUETE” MILL
Flowsheet – 2100 TPD
PREGNANT SOLUTION
34
BALL MILL 12’x14’ NO. 2
Industria...
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District Process
Crushing AreaUnderground Mine
Tailings
Impoundment
Grinding Section
Dore
Bars
Precipitation
& Smelt...
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42
Au production
9
8
11
9
8
10
9
8
11
9
11 11
9
6
9
7
8
7
-
2
4
6
8
10
12
Jan Feb Mar Apr May Jun Jul Aug Sep Oct No...
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43
Ag production
483
357
483
431
384
449
404
363
464
376
482
416
439
289
478
347
420
342
-
100
200
300
400
500
600
J...
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Mine
Mine Cost breakdown (July 2010)
44
TSX:P
45
60%
40%
Cost
Mexican Pesos
US Dollars
Cost in different currencies
TSX:P
46
0%
20%
40%
60%
80%
100%
Cost
49%
51%
Variable
Fixed
Operating Cost
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47
Cost
Labor and related
Reactivos
Equipment Leasing
Mine Spare Parts
Explosives
Materials-General
Insurance
Diesel...
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48
CapEx Detail
1.3
13.5
7.3
3.9
2010 CapEx
mU$
Infrastructure
Exploration
Sustaining
Special Projects
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49
Agenda
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50
Main Projects
Project Total Cost
kU$
Completion date
Third tailings filter 2,300 Q1 2011
Mine Waste deposit 6,400...
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Tailings filter no. 3
113 m2 Belt filter
Building for 3 tons conveyor crane
Conveyor belt no.2 re-location
New c...
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Objective
 To have a specific area to deposit the waste rock from the
mine that complies with international technic...
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Herradura Waste Rock Deposit
Herradura
Waste Rock
Tayoltita town
Mill
Cupias Tailings Dam
53
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Las Truchas Hydropower Plant
54
• Capacity 7.3mW
• Provides 76% of San Dimas demand
• Saves kU$400 per month
• Savin...
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55
• Truchas avg cost :U$0.015/kWh
• Grid avg cost: U$0.11/kWh
• Stage 2
• Second Power house
• Additional 7mW
• In ...
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56
Agenda
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Reserves and Resources (as of Dec. 2009)
0
1
2
3
4
Proven and
Probable
Inferred Total
0.862
1.612
2.474
Million Gold...
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Reserve Growth (2005 to 2010E)
Gold Ounces
Au koz
Reserves Estimated Reserves
+ 3 % + 5 %
58
TSX:P
Ag koz
+ 3 % + 5 %
Reserve Growth (2005 to 2010E)
Silver Ounces
Reserves Estimated Reserves
59
TSX:P
Geology Setting
35°
Upper volcanic group
Piaxtla intrusive
Arana diorite and
intrusive andesite
Lower volcanic group...
TSX:P
San Dimas Geological Evolution
61
PRE-FAULT SHAPE OF
CONTRAESTACA ANTICLINE
0,00 m
-1,000 m
-2,000 m
0,00 m
-1,000 m...
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Regional longitudinal section A – A´
Favorable Horizon
Mineralization – Ore Bodies
Extension of the Favorable Horizo...
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Exploration Success Throughout
Higher Grade and New Reserves
Central Block
EL ABRA
VERDOSA
CORONADO
S. ANTONIO
CANDE...
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2010 Exploration Success
Already Replaced 2010 Production
Estimated Proven and
Probable Reserves
Tonnes
Grade (g/t)
...
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65
Exploration
Diamond Drilling 38,000 m U$130/m kU$4,900
Drifting (X section 4x4 m) 2,200 m U$ 1,500/m kU$8,970
Cos...
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66
One Prolific Vein
Many More to Explore
Robertita-Nancy Vein
Drilling
35,887m (as at Sep 2010)
Historic Production...
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Sinaloa Graben Tunnel: Julieta - Sinaloa Norte vein (San Salvador system)
San Luis Tunnel
Drifting Plan
Drilling Pla...
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Title
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Central Block & Sinaloa Graben Potential
68
Area
Potential as of
Dec 2009
Metric Tons Au grade
(g/t)
A...
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Sinaloa Graben
Geological Potential as of Dec. 2009
With probability of 30%
Metric Ag Au Ounces
Vein Tonnes (g/t) (g...
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San Dimas District map
70
West Block
EL ABRA
VERDOSA
CORONADO
S. ANTONIO
CANDELARIA
CULEBRA
BLENDITA
PATRICIA
5 HERM...
TSX:P
Sinaloa Graben Block Reserves & Potential
Category
Reserves as
Aug 2010
Metric Tons Au grade
(g/t)
Ag grade
(g/t)
Tr...
TSX:
P
Title
TSX:
P
Sinaloa Graben project
DDH TGS S-22
72
DDH TGS S-22
Sinaloa Norte Intercept
Ag g/t Au g/t m
958 6.81 8...
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Title
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Arana Hanging Wall Project
Systematic Diamond Drilling lines
73
DDH HW-4G-01-B
Done 697m
DDH HW-2B-01
...
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Arana Hanging Wall Project
Systematic D. Drilling line 2-2´
DDH HW-2B-02
Process 643m
Drilling plan
DDH HW-2B-01
Don...
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M E T E R S
0 250 500 Source: San Dimas Geology Office
Andesite
24 L
17
L
12 Level
16 Level
18 Level
20 Level
NW
SE
...
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Tayoltita Mine Candelaria Vein & NE vein
system
W
E
Historic Production 1.5 mt
0.25 moz Au & 28.0 moz Ag
500 m
1000 ...
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San Dimas District potential areas
Central Block
EL ABRA
VERDOSA
CORONADO
S. ANTONIO
CANDELARIA
CULEBRA
BLENDITA
PAT...
78
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San Dimas Analyst Tour Presentation

  1. 1. SAN DIMAS ANALYSTS TOUR October 2010
  2. 2. TSX:P 2 Cautionary Statement This presentation may contain “forward-looking” statements within the meaning of Canadian securities legislation and the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements relate to future events or the anticipated performance of the Company and reflect management’s expectations or beliefs regarding such future events and anticipated performance. In certain cases, forward-looking statements can be identified by the use of words such as “plans”, “expects”, “is expected”, “budget”, “scheduled”, ”estimates”, ”forecasts”, ”intends”, ”anticipates” or “believes”, or variations of such words and phrases or statements that certain actions, events or results “may”, ”could”, “would”, ”might”, or “will be taken”, “occur” or “be achieved”, or the negative of these words or comparable terminology. By their very nature forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual performance of the Company to be materially different from any anticipated performance expressed or implied by the forward-looking statements. Such factors include various risks related to the Company’s operations, including, without limitation, fluctuations in spot and forward markets for gold, silver and other metals, fluctuations in currency markets, changes in national and local governments in Mexico and the speculative nature of mineral exploration and development, risks associated with obtaining necessary exploitation and environmental licenses and permits, and the presence of laws that may impose restrictions on mining. A complete list of risk factors are described in the Company’s preliminary prospectus and will be detailed from time to time in the Company’s interim and annual financial statements and management’s discussion and analysis of those statements, all of which are, or will be available, for review on SEDAR at www.sedar.com. This presentation uses the terms “measured resources”, “indicated resources” and “inferred resources”. The Company advises readers that although these terms are recognized and required by Canadian regulations (under National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI43-101”)), the United States Securities and Exchange Commission does not recognize them. Readers are cautioned not to assume that any part or all of the mineral deposits in these categories will ever be converted in to reserves. In addition, “inferred resources” have a great amount of uncertainty as to their existence, and economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian rules, estimates of inferred mineral resources may not form the basis of feasibility or pre-feasibility studies, or economic studies, except for a Preliminary Assessment as defined under NI43-101. Investors are cautioned not to assume that part or all of an inferred resource exists, or is economically or legally mineable. Although the Company has attempted to identify important factors that could cause actual performance to differ materially from that described in forward- looking statements, there may be other factors that cause its performance not to be as anticipated. The Company neither intends nor assumes any obligation to update these forward-looking statements or information to reflect changes in assumptions or circumstances other than required by applicable law. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those currently anticipated. Accordingly, readers should not place undue reliance on forward-looking statements. Unless otherwise indicated, all dollar values herein are in US$.
  3. 3. TSX:P 3 Agenda
  4. 4. TSX:P Safety Induction Underground and Surface Operations. Required PPE:  Hard Hat  Safety Vest.  Steel-toe boots/shoes  Gloves  Hearing protection 4
  5. 5. TSX:P Safety Induction For some activities special equipment must be used Be aware of signage in specific areas 5
  6. 6. TSX:P Safety Induction Surface / Underground driving Be an approved driver Obey speed Limit Buckle up your safety belt Backward parking all times Lights on all time Emergency lights on while parked Surface / Underground Driving Be an approved driver Obey speed Limit Buckle up your safety belt Backward parking all times Lights always on Emergency lights on while parked 6
  7. 7. TSX:P Safety Induction Right of Way for vehicles: 1. Ambulances on duty 2. Trucks transporting hazardous materials 3. Haulage trucks (loaded) 4. Haulage trucks (empty) 5. Heavy Equipment 6. Utility vehicles 7
  8. 8. TSX:P Safety Induction In Underground Operation: 1. Sign in with the Security Guard 2. Do not exit from vehicles in motion 3. Do not stay in atmospheres +50ppm CO 4. Indentify heavy equipment, make contact with operator 5. Verify good tunnel back conditions (scaling) 8
  9. 9. TSX:P 9 Agenda
  10. 10. TSX:P 10 San Dimas Location San Dimas Gold-Silver Mine DURANGO, MEXICO Mazatlán Durango Ventanas Exploration Property DURANGO, MEXICO Mexico City
  11. 11. TSX:P 11 San Dimas History 1890 San Luis Mining Company began operations in México 1961 Minas de San Luis is formed with 51 % Mexican capital 1978 A group of Mexican investors acquires full ownership 1987 San Antonio mine started operating 1991 Exploitation began in Santa Rita Mine 2002 Wheaton River acquired Luismin, Central Block High Grade Discovery 2005 Wheaton merged with Goldcorp 2006 Goldcorp merged with Glamis 2008 Mala Noche Resources Formed 2009 Sinaloa Graben High Grade Discovery 2010 Primero (formerly Mala Noche) acquired San Dimas
  12. 12. TSX:P 12 Introduction More than 100 known veins in the district Thickness of veins varies from 0.10m up to 15m, avg. 1.50m wide Some veins can be followed for more than 1,500 m Total underground development of more than 500 km Historical Production (1978-2008) Tonnes (millions) Gold (g/t ) Silver (g/t) Gold (moz) Silver (moz) 13.3 7.0 511 2.9 219
  13. 13. TSX:P 13 Historical Production (1990-present) New High Grade Impact? 0.00 1.00 2.00 3.00 4.00 5.00 6.00 7.00 8.00 9.00 - 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000 180,000 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Augrade(g/t) Production(oz) Production (oz) Au grade (g/t) Central Block Discovery Additional high-grade discoveries (Roberta, Robertita & Santa Lucía veins) Acquisition of Luismin by Wheaton River Sinaloa Graben Discovery Subsequent Acquisition of San Dimas by Primero
  14. 14. TSX:P San Dimas 2010 Guidance Goldcorp Inc. Primero Reported Jun 30, 2010 Unaudited Jul 1, 2010 to Aug 5, 2010 Estimated Aug 6, 2010 to Dec 31, 2010 Estimated Full Year 2010 Gold produced (ounces) 45,800 7,700 37,000-42,000 90,000-95,000 Silver produced(1) (ounces) 2,315,500 429,900 1,755,000-1,955,000 4,500,000-4,700,000 Total cash costs(2) (per gold equivalent ounce) $529(3) $655 $450 - $480 $500 - $530 Total cash costs(2) - by-product (per gold ounce) $411 $555 $330 - $360 $390 - $420 Capital expenditures (US$ millions) 10 4 12 26 1) Refer to slide 7 for silver purchase agreement details 2) Cash costs are a non-GAAP performance measure 3) Calculated from Goldcorp Inc.’s Second Quarter 2010 Report Material assumptions used to forecast total cash costs(1) for 2010 include: $1,200 per ounce for gold; by-product silver price of $4.04 per ounce; an oil price of $95 per barrel and foreign exchange rates of 1.03 Canadian dollars and 12.63 Mexican pesos to the US dollar. 14
  15. 15. TSX:P 15 Agenda
  16. 16. TSX:P People San Dimas Headcount : 1,080 16
  17. 17. TSX:P People 17
  18. 18. TSX:P Human Resources Selection Recruitment Training Types of personnel handled: Unionized Employees Salaried Employees Contractors’ workers Main duties 18
  19. 19. TSX:P National Union Negotiation Collective bargaining Wages Clauses review Bonus review Special bonus negotiation Contractors’ personnel agreement rev. Medical benefits agreement review Collective bargaining Human Resources 19
  20. 20. TSX:P People 2 Maintenance programmers 5 Process plant supervisors 2 Maintenance supervisors 2 Mine supervisors 3 Surveyors 2 Planning supervisors 1 Assayer 1 Mine assistant superintendent Technical school graduates 20
  21. 21. TSX:P People 1 Mine superintendent assistant 1 Plant assistant superintendent 1 Chief Metallurgist 1 Geologist 1 School Principal 1 Math teacher 1 HR Superintendent Currently, the company is sponsoring 15 scholarships for employees Primero sponsored graduates 21
  22. 22. TSX:P 22 Agenda
  23. 23. TSX:P World Class Safety Policies 23
  24. 24. TSX:P Central Committee  Chaired by the General Manager  Permanent members, all the superintendents of operations and services  Objective: to have a governing body that ensures the continuous improvement and feasibility of the safety management system Who else has a commitment in Safety? 24
  25. 25. TSX:P Who else has a commitment in Safety? The procedures and work instructions for each one of the operative areas of the district are defined in this system. The OP must detect unsafe acts and conditions and work on them until correction. Although it is a Subcommittee that only works when an accident happens, this contributes to find out the root causes and to avoid the repetition of these. The supervisor has the responsibility to make Safety 25 Subcommittees
  26. 26. TSX:P Who else has a commitment in Safety? 2. DELTA Development on the personal values; focus in safety values Behavior training 1. Safety Leadership Training. 26
  27. 27. TSX:P Awards •1st Place National Contest , First Aid ( Bleeding, Fractures) •1st Place National Contest Biopack- Biomarin 2010, 2009 •2nd Place National Contest Biopack- Biomarin 2008, 2007,2006 In 10 years the “Silver Hardhat” of the Mexican Chamber of Mines was won 6 times Goldcorp Most Improved Safety Performance Award 2007 27
  28. 28. TSX:P 0 200 400 600 800 1,000 1,200 1,400 1,600 Local 22 Local 21 Salaried Contractors LaRoca Local 8 DSD Days Days without LTI 28
  29. 29. TSX:P Lost Time Injuries 13 6 9 9 3 2 0 5 10 15 2005 2006 2007 2008 2009 2010 All incidents 59 65 61 53 31 18 0 20 40 60 80 2005 2006 2007 2008 2009 2010 8.53 10.04 7.08 4.97 3.23 2.14 1.62 0 2 4 6 8 10 12 2004 2005 2006 2007 2008 2009 2010 All Frequency Index LTI Index 0.68 0.87 0.39 0.53 0.55 0.21 0.18 0 0.2 0.4 0.6 0.8 1 2004 2005 2006 2007 2008 2009 2010 Safety Improvements 29
  30. 30. TSX:P 30 Agenda
  31. 31. TSX:P Community Relations 1) Tayoltita 1) New Truchas 2) San Dimas 2) Huahuapan 3) Rincón de Calabazas 3) San Antonio de las Truchas 4) Guamúchil y Anexos 4) Co-owners San Antonio Forestry Assoc. 5) Guarisamey 5) La Manga 6) Las Huertas 6) San Francisco de los Lobos 7) Palmarito 7) Carboneras 8) Yamoriba 8) Puentecillas 9) San Bartolo 10) San José de Causas 11) San Pedro Villa Corona Temporary occupancy agreements Right of way agreements Surface occupied 3,306 ha Average cost: US$ 79 / ha 31
  32. 32. TSX:P Strategic AreasHEALTH EDUCATION DEVELOPMENT SOCIAL COMMUNITY LINKING AND COMMITMENT WITH THE COMMUNITY AND ITS DEVELOPMENT ACTIONS INFRASTRUCTURE HEALTH EDUCATION HEALTH AND TRAINING HEALTH WEEK 32
  33. 33. TSX:P Strategic AreasHEALTH EDUCATION DEVELOPMENT SOCIAL COMMUNITY LINKING AND COMMITMENT WITH THE COMMUNITY AND ITS DEVELOPMENT EDUCATIONAL INFRASTRUCTURE EDUCATION AND CULTURE COMMUNITY TRAINING Community Company Total Company % Active students 96 36 132 27% Graduates 111 25 136 18% IDEA STATS : Primary and Secondary School Community Company Total Company % Active students 84 38 122 31 % Graduates 26 42 68 62% CONALEP: Technical Professional ACTIONS 33
  34. 34. TSX:P HEALTH EDUCATION DEVELOPMENT SOCIAL COMMUNITY LINKING AND COMMITMENT WITH THE COMMUNITY AND ITS DEVELOPMENT SOCIAL INFRASTRUCTURE PRODUCTION PROJECTS SUSTAINABLE ALTERNATIVE SPECIAL SUPPORT AND DONATIONS TO THE COMMUNITY ACTIONS: Government agency Project Secretaria de Desarrollo Social Greenhouse, daycare sewing shop, bakery Secretaria de Medio Amb. y Recursos Nat. Green stoves Secretaria de Educación Pública Safe school Fondo Nacional de Apoyo a Empresas Sociales Support to improve facilities Centro de Integración Juvenil Drug use prevention Strategic Partnerships Communities Families benefiting Population 10 700 3,255 Electrical Power Supply Strategic Areas 34
  35. 35. TSX:P PRODUCTION PROJECTS SUSTAINABLE ALTERNATIVE Community Development 35
  36. 36. TSX:P Recognition b) Award granted by Mexican Center for Philanthropy (CEMEFI) third consecutive year. a) Communities recognize San Dimas Team support. 36
  37. 37. TSX:P 37 Agenda
  38. 38. TSX:P Mine Service Ramp 38
  39. 39. TSX:P Mine Drilling Blasting Bolting Hauling Mucking 39
  40. 40. TSX:P Plant’s Flowsheet 40 “EL PERIHUETE” MILL Flowsheet – 2100 TPD PREGNANT SOLUTION 34 BALL MILL 12’x14’ NO. 2 Industrial Water Pregnant Solution Precipitate Zinc Pulp Tailings Barren Solution Return Solution Dore Slag TAILINGS IMPOUNDMENT 1 RETURN SOLUTION COARSE ORE BIN CAP. 780 TON CONVEYOR BELT Nº 1 36’’ W, 49.1’ L JAW CRUSHER PETTIBONE 20”x 36” CONVEYOR BELT Nº 2 24” W, 160.6’ L INTERMEDIATE ORE BIN CAP. 375 TON VIBRATING SCREEN TRAYLOR 8’X16’ CONVEYOR BELT Nº 3 36” W, 18.5’ L CONVEYOR BELT Nº 4 36” W, 77.5’ L CONVEYOR BELT Nº 5 36 ” W, 86.1’ L SECONDARY CRUSHER HP-300 TERTIARY CRUSHER SYMON´S 7 Ft CONVEYOR BELT Nº 6 24’’ W, 750.7’ L FINE ORE BINS Nº 1 & Nº 2 CAP. 1,000 TON Ea. BALL MILLS (2) 12’ X 14’ MARCY PRIMARY THICKENNER Nº 1 48’X12’ (d x h) PRIMARY THICHENNER Nº 2 (HI-CAP) 55’X10’ (d x h) AGITATORS (7) 30’X24’ (d x h) AGITATORS (1) 30´X20’ (d x h) SUPERAGITATORS (6) 50’X30’ (d x h) THICKENNER - INTERMEDIATE (2) 30’X10’ (d x h) THICKENNER - INTERMEDIATE(1) (HI-CAP) 48’X10’ (d x h) SHEET FILTERS AUTOJET (2) FILTERS PRESS (4) 60” SQUARE INDUCTION FURNACE (2) CAP. 700kg GEHO PUMPS TZPM-180 (4) DELKOR THICKENNER (1) 50 FT HI-PAC DELKOR THICKENNER (1) 80 FT HI-PAC BUFFER TANK (1) 30 x 24 (dxh) PUTZMEISTER SAND PUMP HSP-25100 EQUIPMENT CHARACTERISTICS VIBRATING FEEDER MINE CARS COARSE ORE BIN JAW CRUSHER INTERMEDIATE ORE BIN VIBRATING SCREEN BELT No. 1 SECONDARY FEEDER DUMP TRUCKS BELT Nº 7CONE CRUSHER HP-300 BELT Nº 8 BELT Nº 9 CONE CRUSHER SYMONS 7 FT GEHO PUMPS + + + + + + + + + + + + + + + CLARIFIE RS + + + + + + + + + + + + + + + BALL MILL 12’x14’ NO1 LIME FINE ORE BIN No. 2 FINE ORE BIN NO 1 INDUSTRIAL WATER 1 2 3 4 5 6 7 8 9 BARREN Nº 1 SEMIRICH SOLUTION PRIMARY THICKENNER 1 RETURN SOLUTION INTERMEDIATE NO 1 14 INTERMEDIATE Nº3 13 JALES BARREN Nº 2 SUPERAGITATORS 1211 SUPERAGITATORS 10 RECIRCULATOR 9 INTERMEDIATE NO 2 THICKENNER DELKOR 1SUPERAGITATOR 1 SUPERAGITATOR 2 HOLOFLITE DRYER HELICOIDAL CONVEYOR JAW CRUSHER BULLION PACKING FLUX MIX VAULT FILTERS PRESS SHEET FILTERS AUTOJET NºS1 & 2 VACUUM PUMP PCP PUMPS DE-OXYGENTION TOWER INDUCTION FURNACES ZINC POWDER PRIMARY THICKENNER 2 AGITATORS THICKENNER DELKOR 2 1 2 BUFFER TANK PUTZMEISTER PUMP
  41. 41. TSX:P District Process Crushing AreaUnderground Mine Tailings Impoundment Grinding Section Dore Bars Precipitation & Smelting Chemical Treatment 41
  42. 42. TSX:P 42 Au production 9 8 11 9 8 10 9 8 11 9 11 11 9 6 9 7 8 7 - 2 4 6 8 10 12 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug 1-5 Aug 6-31 Sep Oct Nov Dec Au koz 2009 2010 Estimated
  43. 43. TSX:P 43 Ag production 483 357 483 431 384 449 404 363 464 376 482 416 439 289 478 347 420 342 - 100 200 300 400 500 600 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug 1-5 Aug 6-31 Sep Oct Nov Dec Au koz 2009 2010 Estimated
  44. 44. TSX:P Mine Mine Cost breakdown (July 2010) 44
  45. 45. TSX:P 45 60% 40% Cost Mexican Pesos US Dollars Cost in different currencies
  46. 46. TSX:P 46 0% 20% 40% 60% 80% 100% Cost 49% 51% Variable Fixed Operating Cost
  47. 47. TSX:P 47 Cost Labor and related Reactivos Equipment Leasing Mine Spare Parts Explosives Materials-General Insurance Diesel Fuel and gas Steel Balls Plant Spare parts Freights Drill Steel and bits Electrical Material Pumps and Compressor parts Tires Electrical Power Other 49% 6% 5% 4% 4% 3% 3% 3% 2% 2% 2% 1% 1% 1% 1% 1% 10% Operating Cost Detail
  48. 48. TSX:P 48 CapEx Detail 1.3 13.5 7.3 3.9 2010 CapEx mU$ Infrastructure Exploration Sustaining Special Projects
  49. 49. TSX:P 49 Agenda
  50. 50. TSX:P 50 Main Projects Project Total Cost kU$ Completion date Third tailings filter 2,300 Q1 2011 Mine Waste deposit 6,400 Q4 2012 Hydropower 2nd Stage 26,000 E Q4 2013
  51. 51. TSX:P Tailings filter no. 3 113 m2 Belt filter Building for 3 tons conveyor crane Conveyor belt no.2 re-location New conveyor belt at 3rd filter discharge New filtered solution pond Aux. system to cover failure in belts Filter 1 and 2 integrated in one building Reagents area in upper level Maintenance shop in lower level Expansion area already considered Project description 51
  52. 52. TSX:P Objective  To have a specific area to deposit the waste rock from the mine that complies with international technical and environmental regulations and lasts for 20 years. Herradura Waste Rock Impoundment 52 2010 2011 2012 Engineering Construction Construction kU$ 700 kU$ 3,420 kU$ 2,280 Total Investment: U$ 6,400
  53. 53. TSX:P Herradura Waste Rock Deposit Herradura Waste Rock Tayoltita town Mill Cupias Tailings Dam 53
  54. 54. TSX:P Las Truchas Hydropower Plant 54 • Capacity 7.3mW • Provides 76% of San Dimas demand • Saves kU$400 per month • Savings of mU$10.8 in 27 months • Saves 23,500 tonnes of CO2
  55. 55. TSX:P 55 • Truchas avg cost :U$0.015/kWh • Grid avg cost: U$0.11/kWh • Stage 2 • Second Power house • Additional 7mW • In 2011 • Preliminary studies • Engineering Las Truchas Hydropower Plant
  56. 56. TSX:P 56 Agenda
  57. 57. TSX:P Reserves and Resources (as of Dec. 2009) 0 1 2 3 4 Proven and Probable Inferred Total 0.862 1.612 2.474 Million Gold Ounces 0 100 200 300 400 Proven and Probable Inferred Total 61 154 215 Million Silver Ounces Metric Tons m Reserves Dec 2009 Au grade (g/t) Ag grade (g/t) Au moz Ag moz 5.5 4.80 339 0.86 60.9 57
  58. 58. TSX:P Reserve Growth (2005 to 2010E) Gold Ounces Au koz Reserves Estimated Reserves + 3 % + 5 % 58
  59. 59. TSX:P Ag koz + 3 % + 5 % Reserve Growth (2005 to 2010E) Silver Ounces Reserves Estimated Reserves 59
  60. 60. TSX:P Geology Setting 35° Upper volcanic group Piaxtla intrusive Arana diorite and intrusive andesite Lower volcanic group Fault Geologic boundary Vein Strike and dip Mill Town site 0 1 2 3 4 5 Km 34° 35° 10° 105°56’ TAYOLTITACONTRA ESTACA 76° 33° 35° 35° 25° CARBONERAS NORTH (After Henshaw, 1953; Randalll,1970; Smith and Hall, 1974; Nemeth,1976; Clarke, 1982; Enriquez,1995). A’ 60
  61. 61. TSX:P San Dimas Geological Evolution 61 PRE-FAULT SHAPE OF CONTRAESTACA ANTICLINE 0,00 m -1,000 m -2,000 m 0,00 m -1,000 m -2,000 m SW NE 0,00 m -1,000 m -2,000 m -3,000 m 0,00 m -1,000 m -2,000 m -3,000 m 5,00 m5,00 m MEXICAN PLATEAU STAGE Source: P. C. Henshaw 1953. 2,000 m2,000 m 1,000 m 0,00 m 1,000 m 0,00 m VERTCAL CROSS SECTION SHOWING MAJOR STAGES IN THE DEVELOPMENT OF GEOLOGICSTRUCTURE IN THE SAN DIMAS MINING DISTRICT 1,000 m 0.00 m -1,000 m 1,000 m 0.00 m -1,000 m ORE HORIZON PRE-CLIFFS STAGE, AN APPROXIMATION OF CONDITIONS AT THE TIME OF ORE DEPOSITATION, THE ORE ZONE IS LIMITED BETWEEN 0 AND 500 METERS OVER THE SEA LEVEL
  62. 62. TSX:P Regional longitudinal section A – A´ Favorable Horizon Mineralization – Ore Bodies Extension of the Favorable Horizon Potential SW NE 0 1 2 K I L O M E T E R S San Antonio Area West Block Central Block Castellana and Robertas Tayoltita Block Arana Hanging Wall 3,000 m. 2,000 m. 1,000 m. 3,000 m. 2,000 m. 1,000 m. Sinaloa Graben Block Source: San Dimas Geology Office 62
  63. 63. TSX:P Exploration Success Throughout Higher Grade and New Reserves Central Block EL ABRA VERDOSA CORONADO S. ANTONIO CANDELARIA CULEBRA BLENDITA PATRICIA 5 HERMANOS EL SOL TAYOLTITA Piaxtla River GUADALUPE EL CRISTO TUNNEL ROSARIO SINALOA GRABEN TUNNEL Santa Rita mine SAN FRANCISCO Tayoltita Block LA VERDOSA RAMP N Mill Tayoltita mine Central Block mine San Antonio mine (Source: San Dimas Geological Office) San Vicente Area West Block Pilar mine Vein Fault Town Mill Tunnel done 0 1 2 km Tunnel Budget 2010 Arana Hanging Wall Ag-Au High Grade Trend LEGEND Proposed Tunnel DDH Ag g/t Au g/t m RO-16-02 132 3.27 1.43 RO-20-05 514 4.23 1.27 DDH Ag g/t Au g/t m MAR-9-17 514 8.86 2.45 DDH Ag g/t Au g/t m SOL-9-02 549 10.67 1.81 DDH Ag g/t Au g/t m A-25-217(1) 778 7.9 0.80 HW-4G-01B 302 8.7 0.60 Dev Ag g/t Au g/t m RAMP7-129W 1,115 10.30 2.75 DDH Ag g/t Au g/t m TGS-S-22 958 6.81 8.56 TGS-S-15 403 8.08 7.52 63
  64. 64. TSX:P 2010 Exploration Success Already Replaced 2010 Production Estimated Proven and Probable Reserves Tonnes Grade (g/t) Gold Silver Gold (ounces) Silver (million ounces) Exploration Drilling 219,302 5.1 348 36,000 2.5 Exploration Drifting 199,948 7.2 439 47,000 2.8 Total New Reserves 419,250 6.1 391 83,000 5.3 2010 exploration budget of $13.5 million Total 2010 exploration drilling 38,000 metres 28,000 metres completed to date Already nearly replaced estimated 2010 production: additional 83,000 ounces of gold & 5.3 ounces of silver Intercepts well above reserve grade 64
  65. 65. TSX:P 65 Exploration Diamond Drilling 38,000 m U$130/m kU$4,900 Drifting (X section 4x4 m) 2,200 m U$ 1,500/m kU$8,970 Cost per Equivalent Gold Ounce developed: U$ 47.00/oz Equivalent Gold Ounces developed per meter drilled : 5 Ounces Exploration Program and Results 2010
  66. 66. TSX:P 66 One Prolific Vein Many More to Explore Robertita-Nancy Vein Drilling 35,887m (as at Sep 2010) Historic Production k tons Au (koz) Ag (moz) 487 177 11.0 Resources k tons Au (koz) Ag (moz) 364 114 6.0 Reserves k tons Au (koz) Ag (moz) 868 243 12.5 Diamond Drill Holes Mined Ore Robertita-Nancy Vein Exploration
  67. 67. TSX:P Sinaloa Graben Tunnel: Julieta - Sinaloa Norte vein (San Salvador system) San Luis Tunnel Drifting Plan Drilling Plan 2010 Drifting Plan 2010 Drifting Done Sinaloa Graben Higher Grade and Wider Widths SW NE 1,000 m Sinaloa Mine (San Antonio Area) Sinaloa Graben San Salvador ( Central Block ) San Luis Tunnel Elev Santa Anita Tunnel 0 500 1000 M E T E R SProven Ore Probable Ore Probable Ore by Drilling Explanation 0 m 500 m 0 m 500 m 1,000 m DDH TGS-S-22 Sinaloa Norte Intercept Ag g/t Au g/t m 958 6.81 8.56m 7-660 L Ag g/t Au g/t m 189 3.13 1.24 67 DDH TGS S-15 Sinaloa Norte intercept Ag g/t Au g/t m 403 8.08 7.52 DDH TGS 7-17 Julieta intercept Ag g/t Au g/t m 481 3.73 2.22
  68. 68. TSX: P Title TSX: P Central Block & Sinaloa Graben Potential 68 Area Potential as of Dec 2009 Metric Tons Au grade (g/t) Ag grade (g/t) Auoz Agoz Central Block 6,641,899 3.66 362 781,701 77,351,969 Sinaloa Graben 6,772,831 4.89 377 1,065,408 82,103,822 Total 13,414,730 4.28 370 1,847,109 159,455,791 San Dimas District Potential as of Dec 2009 Metric Tons Au grade (g/t) Ag grade (g/t) Auoz Agoz Total 27,176,630 3.79 357 3,310,548 311,778,657
  69. 69. TSX:P Sinaloa Graben Geological Potential as of Dec. 2009 With probability of 30% Metric Ag Au Ounces Vein Tonnes (g/t) (g/t) oz Ag oz Au San Isidro 425,250 350 3.50 4,785,310 47,853 San Daniel 567,000 350 3.50 6,380,413 63,804 Rosario-Sta. Lucía 850,500 362 2.91 9,898,756 79,573 Rosario-Sta. Lucía (Randall) 567,000 362 2.91 6,599,170 53,049 Rosario-San Ramón (Randall) 453,600 362 2.91 5,279,336 42,439 Franklin-Calzada 340,200 342 4.39 3,740,745 48,017 Franklin-Calzada (Randall) 340,200 342 4.39 3,740,745 48,017 Marshall-Sta. Gertrudis 340,200 300 3.50 3,281,355 38,282 Gpe-Sinaloa-Zacatera 340,200 342 4.39 3,740,745 48,017 Guadalupe Castellana 340,200 340 3.95 3,718,870 43,205 Guadalupe-Sinaloa-Celia 340,200 321 3.82 3,511,050 41,783 Gpe.-Santa Eulalia-Soledad 340,200 260 3.80 2,843,841 41,564 Santa Marcia-Pilar-Marinas 394,081 395 7.57 5,004,729 95,913 S.Ant.-SNiño-Roberta 567,000 513 10.22 9,351,863 186,308 S.Ant.-SNiño-Robertita 567,000 561 10.29 10,226,891 187,584 TOTAL 6,772,831 377 4.89 82,103,822 1,065,408 69
  70. 70. TSX:P San Dimas District map 70 West Block EL ABRA VERDOSA CORONADO S. ANTONIO CANDELARIA CULEBRA BLENDITA PATRICIA 5 HERMANOS EL SOL TAYOLTITA Piaxtla River EL CRISTO TUNNEL ROSARIO SINALOA GRABEN TUNNEL Santa Rita mine SAN FRANCISCO Tayoltita Block LA VERDOSA RAMP N Mill San Antonio mine (Source: San Dimas Geological Office Vein Fault Town Mill Tunnel done Explanation 0 1 2 km Arana H Wall Project D. Drilling Process San Vicente Area GUADALUPE Pilar mine
  71. 71. TSX:P Sinaloa Graben Block Reserves & Potential Category Reserves as Aug 2010 Metric Tons Au grade (g/t) Ag grade (g/t) True Width (m) Au oz Ag oz DDH TGS S-22 57,777 6.81 958 8.56 9,840 1,034,319 DDH TGS S-15 50,768 8.08 403 7.52 13,192 657,201 DDH TGS S-07 15,087 4.17 191 2.24 2,022 92,661 DDH TGS 7-17 14,992 3.73 481 2.22 1,797 231,663 7-660 Level (2P) 4,714 3.13 189 1.24 474 28,596 Total 143,338 5.93 444 27,325 2,044,440 Category Potential as of Dec 2009 Metric Tons Au grade (g/t) Ag grade (g/t) True Width (m) Au oz Ag oz Total 6,772,831 4.89 377 1,065,408 82,103,822 71
  72. 72. TSX: P Title TSX: P Sinaloa Graben project DDH TGS S-22 72 DDH TGS S-22 Sinaloa Norte Intercept Ag g/t Au g/t m 958 6.81 8.56
  73. 73. TSX: P Title TSX: P Arana Hanging Wall Project Systematic Diamond Drilling lines 73 DDH HW-4G-01-B Done 697m DDH HW-2B-01 Done 710m DDH HW-2B-02 Done 646m DDH Ag g/t Au g/t m GUS S-10 780 14.9 0.50 GUS S-06 438 4.2 0.95 SRC-02 401 11.3 0.43 DDH Ag g/t Au g/t m SRC-02 401 11.3 0.43 DDH Ag g/t Au g/t m A-22-108 380 3.5 1.10 A-22-109 202 2.5 1.10 A-25-201 130 1.9 2.00 A-25-206 402 3.5 0.35 A-22-212 117 1.5 1.00 A-25-196 107 1.4 2.00 DDH Intercepts Drilling process Drilling proposed E x p l a n a t i o n DDH Ag g/t Au g/t m HW-4G-01A 302 8.7 0.6 HW-4G-01A 81 1.5 1.0 N TREVIÑOTUNNEL CANDELARIA CULEBRA BLENDITA 5 HERMANOS EL SOL SAN FRANCISCO 0 1 2 km Tayoltita mine Mill Santa Rita mine DDH HW-3C-01 Process 366m DDH HW-6F-01 Process 183m CEDRAL
  74. 74. TSX:P Arana Hanging Wall Project Systematic D. Drilling line 2-2´ DDH HW-2B-02 Process 643m Drilling plan DDH HW-2B-01 Done 710m DDH HW-2B-02 Process 643m 74
  75. 75. TSX:P M E T E R S 0 250 500 Source: San Dimas Geology Office Andesite 24 L 17 L 12 Level 16 Level 18 Level 20 Level NW SE 1500 m 1000 m LR 500 m 13,000 E TREVIÑO TUNNEL Socavon Rhyolite Buelna Andesite Portal Rhyolite Productive Andesite Camichi n Rhyolite Las Palmas Formation Intrusive Andesite Arana Diorite SAN EDUARDO TUNNEL 25 LEVEL Piaxtla Intrusive Arana Hanging Wall Project Regional cross section Sta. Rita Mine Arana Hanging Wall Project Tayoltita Mine Resources 380 koz Au 38 moz Ag Historic Production 7.9 mt 2.0 moz Au & 136 moz Ag 1500 m 1000 m Historic Production 1.2 mt 119 koz Au & 17 moz Ag ARANA DIORITE ARANA DIORITE ARANA DIORITE 75
  76. 76. TSX:P Tayoltita Mine Candelaria Vein & NE vein system W E Historic Production 1.5 mt 0.25 moz Au & 28.0 moz Ag 500 m 1000 m LEVEL 4 LEVEL 6 LEVEL 10 LEVEL 12 LEVEL 17 Aurora Area (Low Angle Vns) Favourable horizon San Luis Tunnel Elev 0 500 M E T E R S Level 28 Piaxtla Intrusive Socavon Rhyolite Productive Andesite Camichin Formation (Source: San Dimas Geological Office) Level 25 A-22-108 A-25-201 DDH Ag g/t Au g/t m A-22-108 380 3.5 1.10 A-22-109 202 2.5 1.10 A-25-201 130 1.9 2.00 A-25-206 402 3.5 0.35 A-22-212 117 1.5 1.00 A-25-196 107 1.4 2.00 ARANA DIORITE Surface Drilling 650-750m A-22-109 Arana Hanging Wall 320 g/t Ag_2.5 g/t Au @1.00m (18m Length) A-22-212 A-25-196 A-25-206 DDH A-25-217(1) Arana Hanging Wall Ag (g/t) Au (g/t) m 778 7.9 0.8 DDH HW-4G-01B Arana Hanging Wall Ag (g/t) Au (g/t) m 302 8.7 0.6 76
  77. 77. TSX:P San Dimas District potential areas Central Block EL ABRA VERDOSA CORONADO S. ANTONIO CANDELARIA CULEBRA BLENDITA PATRICIA 5 HERMANOS EL SOL TAYOLTITA Piaxtla River GUADALUPE EL CRISTO TUNNEL ROSARIO SINALOA GRABEN TUNNEL Santa Rita mine SAN FRANCISCO N Mill Tayoltita mineCentral Block mine San Antonio mine (Source: San Dimas Geological Office Vein Fault Town Mill Tunnel done Explanation 0 1 2 km Arana H Wall Project D. Drilling Process Roberta & Robertita– Nancy Vein System Tunnel Budget 2010 Pilar mine DDH TGS S-15 Sinaloa Norte vn Ag Au m 403 8.08 7.52 DDH TGS-S-07 Robertita Vn Ag Au m 191 4.17 2.24 DDH TGS-7-17 Julieta Vein Ag Au m 481 3.73 2.22 A’ DDH TGS-S-22 Sinaloa Norte vn Ag Au m 958 6.81 8.56m Tinajas Area Resource 43 koz Au 6.6 moz Ag Tahonitas Area Resource 43 koz Au 5.3 moz Ag Sn Vicente Area Res+Pot 360 koz Au 27 moz Ag West Block Area Res+Pot 0.7moz Au 67 moz Ag Cristo Area Rec+Pot 400 koz Au 42 moz Ag Arana HW Resource 380 koz Au 38 moz Ag Sta Rita Potential 400 koz Au 46 moz Ag Proposed Tunnel 77
  78. 78. 78 Thank you for visiting us. San Dimas Mine

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