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HGC Corporate Presentation 2010


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HGC Corporate Presentation 2010

  1. 1. Experienced Management Cassiar Gold Mine Table Mountain Infrastructure & Taurus Permitted Frasergold Building British Columbia’s Next Gold Producer Corporate Presentation February 2010
  2. 2. Forward-Looking Information Certain statements herein may contain forward-looking information within the meaning of applicable securities laws. Forward-looking information appears in a number of places and can be identified by the use of words such as “intends” 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. Forward-looking information includes statements regarding the Company’s exploration and development plans with respect to its properties and the estimation of mineral resources and are subject to such forward-looking risks, uncertainties and other factors which may cause the Company’s actual results, performance or achievements, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information. Such risks include gold price volatility, change in equity markets, the uncertainties involved in interpreting geological data, increase in costs and exchange rate fluctuations, permitting and environmental risks and other risks involved in the gold exploration and development industry. There can be no assurance that forward-looking information referenced herein will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements or information. Also, many of the factors are beyond the control of Hawthorne Gold. Accordingly, readers should not place undue reliance on forward-looking information. All forward-looking information herein are qualified by this cautionary statement. The Company does not undertake to update such forward-looking information except in accordance with applicable securities laws. A feasibility study has not been completed for any projects discussed in this presentation and there is no certainty the disclosed targets will be reached nor that the proposed operations will be economically viable. Michael Petrina, P.Eng., the Company’s Vice President of Mining and a Qualified Person as defined by National Instrument (“NI”) 43-101, has reviewed and approved the technical information contained in this presentation. 2
  3. 3. Share Structure Issued and Outstanding 81,305,211 Stock Options ($0.40 - $1.60) 7,233,700 Warrants ($0.40 - $2.25) 13,987,469 Fully Diluted 102,526,380 American Bonanza Gold Corp. 5,750,000 ~(8%) Institutional Ownership ~25,000,000 ~(26%) Market Capitalization (as at January 26, 2010) ~$30M 3
  4. 4. Investment Highlights Experienced Management , Operational and Technical Team • Led by respected company builders Michael Beley and Richard Barclay  Co-founded both Bema Gold and Eldorado Gold • Strong board of directors and advisory team Dedicated to Growth through drilling, development and acquisitions • Apply Bema/Eldorado Model (short term cashflow)  Advance towards cashflow at profitable mining operation within 4 years from Company inception  On track for production at Cassiar Gold Mine, British Columbia • Aggressive 10,000 metre diamond drill program at Cassiar Gold Camp 2010  Build resource portfolio and develop priority exploration targets for upside potential 4
  5. 5. Gold Development and Production Portfolio Three advanced stage gold projects in British Columbia, Canada • Table Mountain Gold Deposit - high grade vein deposits  Fully permitted 270 tonnes per day mine, operational mill and tailings impoundment facility  Estimated replacement value for mill facility: ~$25M • Taurus Gold Deposit - open pit, bulk tonnage opportunity • Frasergold Deposit - open pit, bulk tonnage opportunity Merger & Acquisition focus – build out management team, resource and production portfolio to become a significant junior gold producer • Reviewed 75 near term production gold projects • Selected 6 for management dialogue • Focused acquisition of near or in production target 5
  6. 6. Experienced Management Team Michael Beley Chairman and Director 40 + years experience in senior executive roles in mining industry; former co-founder, VP & Director of Eldorado Gold Corp.; former co- founder, VP & Director of Bema Gold Corp.; co-founder of Polaris Minerals; and former Director of Nevada Pacific Gold Richard Barclay President, CEO and Director 40+ years experience in senior executive roles in financial sector; former founding CEO, President, & Director of Eldorado Gold Corp.; former co-founder, CFO and Director of Bema Gold Corp.; and former President, CEO & Director of Nevada Pacific Gold David McAdam CFO (Interim) 25 years of international experience in senior financial roles. Mr. McAdam previously held the positions as CFO of Eastern Platinum Limited, and executive and advisory positions for Yellowcake Mining Inc., and other US/CDN based Co.’s; B. Comm. Michael Petrina VP Operations 25+ years experience in senior management , operational and consulting roles for such companies as Adanac Molybdenum Corporation, Pan American Silver Corporation, Miramar Mining, TVX Gold, and Kilborn Engineering Pacific Ltd.; B.Sc. Engineering, P.Eng and MBA Marlin Murphy Manager of Environmental and Governmental Affairs Over 25 years of environmental and government relations experience; previous senior management positions with EBA Engineering, Compliance Energy Corporation, Barrick Gold Corporation, Homestake Mining and Cassiar Mining Corporation 6
  7. 7. Experienced Director Team Bernard Kahlert Director 35+ years of international exploration experience primarily focused on gold and base metals; held various positions with mining companies in Australia, United States and Canada; graduate in Geology and P.Eng Dale A. Sketchley Director 30 + years experience encompassing all phases of exploration, QAQC, geological modelling and resource evaluation; Mr. Sketchley has been involved Ivanhoe Mines, Union Minié, Chevron, Denison, Erickson Gold, Cooke Geological, MineQuest, and Placer Dome Don Siemens Director 30+ years experience as a Chartered Accountant; Mr. Siemens specializes in Corporate Finance, cross-border transactions and Mergers & Acquisitions; Mr. Siemens serves as a director and Audit Committee Chair for three public companies: Los Andes Copper Ltd., Nikos Explorations Ltd, and Adriana Resources Inc. John Nugent Director 20 + years experience of Financial and corporate expertise; Mr. Nugent became president of Gardiner Group Stock Brokers Inc., co- founder and president of Romanex Limited, president of International Barytex Resources Ltd. Currently he serves as a director of Nikos Exploration and Los Andes Copper Ltd., and is Chairman of Hansa Resources Limited Harvey Brooks Director Over 20 years experience in executive roles; Mr. Brooks was Senior Vice-President and General Manager, US Division of National Bank of Canada, director of Northern Sun Exploration Company Inc. 7
  8. 8. Technical Team and Advisors Jack McClintock Board Advisor/Consultant 30+ years experience in all facets of the mineral exploration business; held various positions of increasing responsibility with Rio Algom, Billiton and BHP Billiton, the last being Global Exploration Manager with BHP Billiton; graduate degrees in Geology and MBA Dr. John-Mark Staude Board Advisor 20+ years of international exploration experience in precious and base metals; held various positions of increasing responsibility with Kennecott, BHP Billiton, and Teck Cominco David Rhys Board Advisor Principal of Panterra Geoservices Inc.; specializes in the application of structural geology techniques to the assessment of mineral deposits; has extensive experience in the evaluation of gold deposits at all phases of development 8
  9. 9. British Columbia – A Pro Mining Province Cassiar Gold Table Mountain Deposit District (Cassiar Gold Mine) Taurus Deposit Cariboo Gold Frasergold District Deposit 9
  10. 10. Cassiar Gold Camp Table Mountain and Taurus Deposits Progress To Date • 58,901 hectare claim boundary • Increased land position by 245% • Historical production of ~500,000 ounces • Purchased remaining 70% of Taurus Deposit • Completed geological compilation model of 40 years of data • Completed 12,000 metre surface diamond drill program 2008/9 • Rehabilitated underground access workings at Cassiar Gold Mine • Re-established exploration and mining 75 man camp • Completed property-wide geophysics program 10
  11. 11. Table Mountain Mine and Mill Complex 11
  12. 12. Table Mountain Mill and Shops 12
  13. 13. 270 TPD Mill Capacity 13
  14. 14. Experienced Mining Management 14
  15. 15. Table Mountain Gold Deposit & Cassiar Gold Mine High-Grade Gold System • NI 43-101 Mineral Resource Estimate • Deposits hosted in extensive quartz-carbonate- • 23 km of road access gold vein systems similar to some of Canada’s throughout property to access 13 adits and ~25 km largest gold camps, including Timmins, Kirkland underground workings Lake and Val d’Or 2009 Exploration & Development Program • Completed 12,000 metre diamond drill program focused on:  Priority zones identified at Table Mountain and Taurus that will increase resource base  Regional targets to identify new zones • Underground pre-development at Table Mountain to prepare for production at Cassiar Gold Mine 15
  16. 16. Table Mountain Core Library 16
  17. 17. Multiple Gold Zones For Future Development 17
  18. 18. High Grade Gold Veins 18
  19. 19. Historic Mining Grades of 14 Grams Gold Quartz vein in mine face – Table Mountain 19
  20. 20. Table Mountain Mining Fleet 20
  21. 21. Table Mountain Mill 21
  22. 22. Constructed New 75 Tonne Capacity Bridge 22
  23. 23. Cassiar Gold 75 Person Camp 23
  24. 24. Taurus Gold Deposit Highlights • NI 43-101 Mineral Resource Estimate • High-grade zones identified within resource selected high grade open pits • Open pit, bulk tonnage opportunity • Historical production of 32,700 ounces from high grade zones within deposit Oro Vein 2010 Exploration & Development Program • Plan 2010 10,000 meter surface exploration drill program to bring Taurus inferred resource to measured and indicated status • Metallurgical studies on mineralized zones for compatibility with mill flow sheet • Potential for multi million ounce open pit and underground bulk mineable gold deposit 24
  25. 25. Taurus Gold Deposit Looking West 25
  26. 26. Taurus Core Library 26
  27. 27. Taurus Diamond Drilling 27
  28. 28. Taurus Open Pit 2009 Bulk sample 28
  29. 29. Taurus High Grade 3-5 Gram Gold Zones 29
  30. 30. Straight Forward Ore Control Taurus Gold Zones 30
  31. 31. Taurus Bulk Sample – Summer 2009 Examples of potential high grade zones within Taurus Low Grade deposit 31
  32. 32. Taurus 5,000 Tonne Bulk Sample 32
  33. 33. Taurus Bulk Sample High Grade 33
  34. 34. Infrastructure, Resources, People Reading for Production Mine and Mill Site 270 tpd Mill Facility Entering East Bain Zone Underground at Table Mountain Developing Ramp to East Bain Taurus High Grade Veins at Surface Taurus pre-stripping, drilling, trenching Taurus Drilling Zone #1 Reviewing Core (President and Advisors) 34
  35. 35. Frasergold Summary • Completed an independent National Instrument 43-101 technical report on November 15, 2009. • Open pit, bulk tonnage opportunity • ~50,000m of historical diamond and RC drilling and 300m underground workings (includes 3,617m in 2007 and 10,405m in 2008) • Extensive infrastructure with road access directly to site • 65 different visible gold occurrences logged in 60% of the 58 completed holes; drilling highlights: 48.77m averaging 5.84 g/t Au, including 4.38m averaging 63.05 g/t Au 2007/08 Drilling Earn up to a 60% interest in the property from Eureka Resources Inc. 35
  36. 36. Frasergold Deposit Comparison Deposit Resource Resource (Oz Au) Resource (Oz Au) Company Stage Cash Cost Cut-off Grade Grade (g/t) M&I (g/t) Inferred (g/t) Per Oz Paracatu, Brazil 0.18 4,267,000 0.380 450,000 0.370 Kinross Operation $373 Fort Knox, Alaska 0.43 1,723,000 0.550 35,000 0.550 Kinross Operation $344 Marigold, Nevada n/a 510,000 0.550 460,000 0.480 Goldcorp Operation $308 Frasergold, British Hawthorne Gold / Advanced Columbia* 0.30 611,959 0.559 1,228,457 0.507 Eureka Resources Exploration N/A Spanish Mtn, British Skygold Ventures Advanced Columbia 0.30 3,940,000 0.581 460,000 0.574 Ltd. Exploration N/A Maricunga, Chile n/a 2,290,000 0.610 2,400,000 0.560 Kinross Operation $447 Round Mtn, Nevada 0.42 529,000 0.640 450,000 0.404 Kinross Operation $316 * The Frasergold current resource is base is based on an approximate strike length of 1.5 km within the 10 km mineralized zone on the Frasergold Property Notes: Due to the uncertainty of Inferred Mineral Resources it cannot be assumed that all, or any part of this P & P - Proven and resource will be upgraded to an Indicated or Measured Resource as a result of continued exploration. To justify upgrading of the Mineral Resource to a Mineral Reserve, demonstrated economic viability is Probable required. Mineral Resources which are not Mineral Reserves do not have demonstrated economic viability. M & I - Measured and The estimate of Mineral Resources may be materially affected by environmental, permitting, legal, title, Indicated taxation, socio-political, marketing, or other relevant issues. Other: All information presented above is based on public information gathered from company websites. 36
  37. 37. Exploration and Development Going Forward TABLE AND TAURUS GOLD DEPOSIT • Continue resource development through surface drilling during 2010 summer/fall; exploration program will consist of 10,000 metres of diamond drilling, trenching, mapping and soil sampling • Complete engineering and mine planning • Complete pre-production mine development leading towards production at Cassiar Gold Mine FRASERGOLD • Completed An independent National Instrument 43-101 technical report titled, "Report on the 2007 and 2008 Drill Programs on the Frasergold Property, Cariboo Gold District, B.C.”, prepared by K.V. Campbell, Ph.D, P.Geo of ERSi Earth Resource Surveys Inc. and G.H. Giroux, MA.Sc, P.Eng. of Giroux Consultants Ltd. -dated November 15, 2009; reviewing opportunities and action plan for mining camp and project 37
  38. 38. NI 43-101 Mineral Resource Estimate Measured Indicated Inferred Projects Tonnes Grade Contained Au Tonnes Grade Contained Au Tonnes Grade Contained Au g/t g/t g/t Kg Oz Kg Oz Kg Oz East Bain* 20,101 21.21 426.37 13,708 1,158 68.57 79.38 2,552 Taurus** - - - 33,055,000 0.990 32,829.72 1,055,500 Frasergold 11,470,000 0.595 6,824.65 219,418 22,610,000 0.540 12,209.40 392,541 75,310,000 0.507 38,209.28 1,228,457 Total 11,470,000 0.595 6,824.65 219,418 22,630,101 0.558 12,635.77 406,249 108,366,158 0.655 71,118.38 2,286,509 • An independent National Instrument 43-101 technical report titled, "Report on the 2007 and 2008 Drill Programs on the Frasergold Property, Cariboo Gold District, B.C.”, prepared by K.V. Campbell, Ph.D, P.Geo of ERSi Earth Resource Surveys Inc. and G.H. Giroux, MA.Sc, P.Eng. of Giroux Consultants Ltd. -dated November 15, 2009, is available on and on Hawthorne’s website. The Company is earning up to 60% of the project from Eureka Resources and 100% of ounces from project are shown above***. • *Update of Technical Report on the Table Mountain Property, Liard Mining District, BC on the Table Mountain Property prepared by Beacon Hill Consultants (1988) Ltd. - June 1, 2008. For 68.57 g/tonne cut values, individual assays greater than 68.57 g/tonne Au are cut to 68.57 g/tonne Au. • ** An updated NI 43-101 report (Wardrop Engineering Inc. – Updated Resource Report on the Taurus Deposit – Liard Mining District, BC - dated March 11, 2009) regarding the Taurus Property is available on Taurus NI 43-101 resource estimate conversion equates to 33.055 million tonnes at 0.99 g/t Au. This uses a cut-off grade of 0.50 g/t Au. ***About the Frasergold Option Agreem ent  Pursuant to an option agreement dated October 31, 2006 between Hawthorne and Eureka, Hawthorne can earn a 51% interest in the Frasergold Project by completing sufficient exploration expenditures totaling $3.5 million (expended), completing a feasibility study by April 30, 2010 (April 30, 2012 with extensions) and making cash payments totaling $175,000 ($175,000 paid) before October 31, 2009. Hawthorne can earn a further 9% (for a total of 60%) by arranging financing for 70% of the estimated capital costs for production. 38
  39. 39. Contact: For more information please visit: or contact: Todd Hanas Telephone: 604.484.3668 Toll Free: 866.869.8072 Email: 39