Claude Resources Inc. PDAC 2013 Presentation

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Claude Resources Inc. PDAC 2013 Presentation

  1. 1. CorporatePresentationMarch 2013 1
  2. 2. Cautionary StatementCautionary Note Regarding Forward-Looking InformationThis document contains certain forward-looking statements relating but not limited to the Company’s expectations, intentions, plans andbeliefs. Forward-looking information can often be identified by forward-looking words such as “anticipate”, “believe”, “expect”, “goal”,“plan”, “intent”, “estimate”, “may” and “will” or similar words suggesting future outcomes or other expectations, beliefs, plans,objectives, assumptions, intentions or statements about future events or performance. Forward-looking information may include reser veand resource estimates, estimates of future production, unit costs, costs of capital projects and timing of commencement of operations,and is based on current expectations that involve a number of business risks and uncertainties. Factors that could cause actual results todiffer materially from any forward-looking statement include, but are not limited to, failure to establish estimated resources and reser ves,the grade and recover y of mined ore varying from estimates, capital and operating costs var ying significantly from estimates, delays inobtaining or failures to obtain required governmental, environmental or other project approvals, inflation, changes in exchange rates,fluctuations in commodity prices, delays in the development of projects and other factors. Forward-looking statements are subject torisks, uncertainties and other factors that could cause actual results to differ materially from expected results.Potential shareholders and prospective investors should be aware that these statements are subject to know n and unknown risks,uncertainties and other factors that could cause actual results to differ materially from those suggested by the forward-lookingstatements. Shareholders are cautioned not to place undue reliance on forward-looking information. By its nature, forward-lookinginformation involves numerous assumptions, inherent risks and uncertainties, both general and specific, that contribute to the possibilitythat the predictions, forecasts, projections and various future events will not occur. Claude Resources undertakes no obligation to updatepublicly or otherwise revise any forward-looking information whether as a result of new information, future events or other such factorswhich affect this information, except as required by law.Cautionary note to U.S. investors concerning resource estimateThe resource estimates in this document were prepared in accordance with National Instr ument 43-101, adopted by the CanadianSecurities Administrators. The requirements of National Instr ument 43-101 differ significantly from the requirements of the United StatesSecurities and Exchange Commission (the “SEC”). In this document, we use the terms “measured”, “indicated” and “inferred” resources.Although these terms are recognized and required in Canada, the SEC does not recognize them. The SEC permits U.S. miningcompanies, in their filings with the SEC, to disclose only those mineral deposits that constitute “reserves”. Under United Statesstandards, mineralization may not be classified as a reserve unless the determination has been made that the mineralization could beeconomically and legally extracted at the time the determination is made. United States investors should not assume that all or anyportion of a measured or indicated resource will ever be conver ted into “reserves”. Fur ther, “inferred resources” have a great amount ofuncertainty as to their existence and w hether they can be mined economically or legally, and United States investors should not assumethat “inferred resources” exist or can be legally or economically mined, or that they will ever be upgraded to a higher category. 2
  3. 3. Claude Resources Today• 3 Canadian gold assets: – Low risk jurisdictions – Located in proven mining regions – Each hosting over 1 million ounces of gold• 20+ years of operating experience• Robust Life of Mine Plan – 80% production growth by 2017• Well financed with growing cash flow and earnings• Focus on cost reduction initiatives• Excellent reserve and resource growth potential near current mining infrastructure 3
  4. 4. Focused on Organic GrowthGreat Risk vs. Reward Investment OpportunityIncreasing Production & Decreasing Cash Costs Resource Base 4,500,000100,000 $1,200 4,000,000 90,000 $1,000 3,500,000 80,000 1,566,000 70,000 3,000,000 $800 60,000 2,500,000 Amisk Production Base 1,018,000 Case Madsen 50,000 $600 2,000,000 Seabee 1,225,000 40,000 Costs 1,500,000 $400 1,225,000 30,000 1,225,000 1,000,000 20,000 $200 1,300,000 500,000 10,000 806,000 735,000 662,000 0 $0 0 2011 2012 2013 2014 2015 2016 2017 2008 2009 2010 2011 4
  5. 5. Seabee Gold Operation• 100% ownership• 14,400 hectare property• Produced over 1,023,000 ounces of gold from1991 to present• 1.30 million ounces in NI 43-101 reserve &resources at year-end 2011• Full infrastructure including a 1,050 tonne perday mill• Two producing mines: Seabee Gold Mine andthe Santoy 8 Gold Mine• Exploration focused on near mine targets atSeabee and Santoy 5
  6. 6. Seabee PropertySeabee Property:14,400 Hectares • Established fully-permitted infrastructure • Underexplored productive belt 6
  7. 7. Seabee Mine Shaft Extension to 980 m Completed L62 MRMR (year-end 2011)P & P Reserve – 70,400 Oz @ 7.62 g/t Inf Resource – 40,300 Oz @ 7.57 g/t Seabee Total MRMR (year-end 2011) P & P Reserve – 224,900 Oz @ 6.58 g/t Resource – 178,800 Oz @ 6.83 g/t 7
  8. 8. Santoy 8 & Gap• Santoy region (Santoy Gap and Santoy 8) resource currently at 919,900 ounces• Update Santoy Gap resource: • Indicated Mineral Resources of 281,000 ounces at 8.80 g/t (NI 43-101 compliant) • Inferred Mineral Resources of 357,000 ounces at 5.92g/t (NI 43-101 compliant)• Initiated exploration drift from current mining infrastructure Santoy Gap Santoy 8 Mine Santoy 8 Total MRMR P & P Reserve – 130,600 Oz @ 4.08 g/t Inferred Resource – 149,300 Oz @ 5.46 g/t Santoy Gap Total MRMR Indicated Resource – 281,000 Oz @ 8.80 g/t Inferred Resource – 357,000 Oz @5.92 g/t 8
  9. 9. Achievable LOMP Increasing Production & Decreasing Unit Cash Costs100,000 1200 90,000 1000 80,000 70,000 800 60,000 Production Base Case 50,000 600 Costs 40,000 400 30,000 20,000 200 10,000 0 0 2011 2012 2013 2014 2015 2016 2017 9
  10. 10. Key Personnel AdditionsNew Site Management Team:• 7 New Leaders with 75+ years operating experience from other operations – Peter Longo, P.Eng., MBA, PMP, Vice President, Operations: 12+ years , Inco, Areva and Cameco – Kerry McNamara, P. Eng, Manager Capital Projects: 20+ years industry experience in operations, engineering, and projects in gold and uranium at Goldcorp and Cameco. – Lane Maxemiuk, P.Eng: Technical services: 15 years experience in mining operations including Diavik mine (Rio Tinto) and consulting firms (Golder, SRK). – Nicola Banton, MSc, P.Eng, Manager Environment: 10+ years in industry working in base metals, uranium and potash milling operations and projects. – Chad Ireland, HSA, CSO, Manager Safety & Training: 10+ years industry at Claude, SNC Lavalin. – Trevor Cooney, SPCM, Manager Supply Chain: 10 years experience, 5 years in Northern Sask mining operations. – Doug Landry, Santoy Underground Superintendent: 30 years experience including mine captain and mine inspector.• 4 Leaders with 50+ years operating experience at Seabee – Dale Cliff, Site Manager: 25+ years mining experience (mostly at Seabee). – Pat Hamilton, Manager Technical Services (Engineering): 20 years mining engineering experience at Claude. – Jeff Kulas, Manager Technical Services (Geology): 15+ years industry experience including operations and geology. – Mark Lodewyk, P. Eng., Mine Manager: 10 years in mining in Canada/Australia, including 4 years at Seabee. 10
  11. 11. Amisk Gold Project• 100% ownership• 40,373 hectare property• 1.6 million ounces in NI 43-101 resourcecalculation• Proven mining district and “mining friendly”community• Greenfield site is close to provincial infrastructure• Large bulk mineable potential• Mineralization begins at surface and has been drilltested to approximately 600 metres below surfaceNI 43-101 Resource and PEA to be completedin 1H 2013 11
  12. 12. Amisk Location 12
  13. 13. Amisk Pit Shell Claude Resources - Amisk Lake Project - Grade - Tonnage Sensitivity Table Total Resource Indicated InferredAu Eq Cut-Off Au Eq Tonnage Au (gpt) Ag (gpt) Total Oz Ind Oz % Inf Oz % (gpt) 0.30 82,422,879 0.69 0.62 4.35 1,828,471 998,622 55% 824,675 45% 0.40 58,803,225 0.83 0.75 5.11 1,569,171 920,881 59% 644,854 41% 0.50 42,979,475 0.97 0.88 5.85 1,340,368 824,702 62% 512,676 38% 13
  14. 14. Madsen Exploration Project• 100% ownership• 10,000 acre property• 1.23 million ounces at 9.0 grams per ton in NI 43-101 resource calculation• Historic production was 2.4 million ounces of goldfrom 1938 to 1976 at 9.0 grams per ton• Similar type of geology to that of Goldcorp’s RedLake Assets• All existing infrastructure is fully permitted• Internal scoping study planned for 201319,000 metre exploration program completedin 2012 14
  15. 15. Madsen Property 15
  16. 16. Madsen Property: Red Lake Camp Starratt Olsen Madsen Mine Historic Production 2.4 M oz @ 0.30 opt Austin East164,000 oz @ 0.18 opt Exploration target areas 8 Zone 16
  17. 17. Madsen InfrastructureModern equipment and facilities:• 500 ton per day permitted mill• 5 compartment shaft to 4,125 feet• Shaft capable of skipping 1,925 tpd• Permitted tailings facilityMinimal capital required tobring Madsen into production 17
  18. 18. Why Claude Resources Inc.?• 3 Canadian gold assets• Achievable new LOMP - 50,000 to 90,000 ozs in 5 years• New initiatives to decrease unit cash costs• Funded and low Capex requirements to achieve growth• Increasing cash flow and earnings• History of low cost reserve and resource growth• Excellent potential for reserve and resource growth near current mining infrastructure 18
  19. 19. Appendix A: Corporate OverviewStock Exchanges: Cash & Short Term Investments: $0.06 millionTSX CRJ (September 30, 2012)NYSE MKT CGR Added CWB credit facility of $25 million at January 31, 2013Shares Outstanding (January 31, 2013): Debt (September 30, 2012):Basic 173.7 million Short Term $17.3 millionFully Diluted 182.4 million Long Term $0.6 millionMarket Cap $73 million CDN Cash Costs per Ounce:(February 21, 2013) Q3 2012 $920 CDN $924 U.S.Analyst Coverage: TSX:Kevin Chiew CIBC 52 Week High $1.38Paolo Lostritto National Bank 52 Week Low $0.41Sam Crittenden RBC Avg. Volume 275,000 NYSE MKT: 52 Week High $1.39 52 Week Low $0.40 Avg. Volume 350,000 19
  20. 20. Appendix B: Management TeamNeil McMillan President 17 years as President & CEO of Claude. 16 Chief Executive Officer years managing the RBC Dominion Securities Board Director operation in Saskatoon. Director on Boards of Shore Gold Inc. and Cameco Corporation.Rick Johnson, Chief Financial Officer 16 years with Claude including 8 years as CFOC.A. Vice President Finance and VP Finance.Brian Chief Operating Officer 5 years with Claude leading the explorationSkanderbeg, Senior Vice President team. Appointed Sr. VP and COO inP.Geo. September 2012. Previously worked for Goldcorp, INCO and Helio Resources.Peter Longo, Vice President Operations Joined Claude in 2011 as Manager of CapitalP.Eng., MBA, Projects and appointed VP Operations inPMP 2012. Previously worked for Areva Resources, Cameco Corporation and INCO. 20
  21. 21. Appendix C: Board of DirectorsTed J. Nieman, Chairman Senior Vice-President, General Counsel and Corporate Secretary of Canpotex. A boardQ.C. member of all of Canpotex’s subsidiaries and affiliates. Joined the Board of Directors in 2007.Ronald J. Hicks, Director Spent 41 years with Deloitte where he was a partner. Has served as a Director withC.A. Dickenson Mines Ltd., Kam Kotia Mines Ltd., Saskatchewan Government Insurance and Prairie Malt Ltd. Joined the Board of Directors in 2007.Ray A. McKay Director Held numerous senior positions within the aboriginal business community, provincial government and in the education sector. Most recently retired as the CEO of Kitsaki Management, a business arm of the Lac La Ronge Indian Band.J. Robert Director Held a number of senior positions with the Trane Company over the course of his 42Kowalishin, P.Eng. year career with the company. Joined the Board of Directors in 2007.Rita Mirwald Director Held a number of senior positions with Cameco Corporation, including that of Senior Vice President Corporate Services. Joined the Board of Directors in 2011.Mike Sylvestre Director Currently the President and Chief Executive Officer for Castle Resources Inc. Holds an MSc and BSc in Mining Engineering from McGill University and Queen’s University. Previous experience with Inco Ltd. Over 35 years of mining experience. Joined the Board of Directors in 2011.Brian Booth Director Currently serves as the President and Chief Executive Officer of Pembrook Mining Corp. Previous work experience includes Inco Ltd. and Lake Shore Gold Corp. Over 30 years of experience in mineral exploration. Joined the Board of Directors in 2012.Neil McMillan President & CEO 17 years as President & CEO of Claude. 16 years managing the RBC Dominion Director Securities operation in Saskatoon. Director on Boards of Shore Gold Inc. and Cameco Corporation. 21
  22. 22. Appendix D: Seabee Reserves & ResourcesMineral Reserve & Mineral Resource estimates as of December 31, 2011Resource Class Zone Tonnes Grade (g/t) Contained Gold (oz)Proven & Probable Seabee 1,062,900 6.58 224,900 Santoy 8 997,100 4.08 130,600 Total 2,059,900 5.37 355,600Indicated Seabee 127,400 4.65 19,000 Santoy 8 12,600 5.04 2,000 Porky Main 160,000 7.50 38,600 Porky West 111,000 3.10 11,000 Total 410,900 5.35 70,700Inferred Seabee 813,900 6.83 178,800 Santoy 8 850,000 5.46 149,300 Porky Main 70,000 10.43 23,500 Porky West 138,300 6.03 26,800 Total 1,872,200 6.48 378,400Mineral Resource estimates as of November 12, 2012Resource Class Zone Tonnes Grade (g/t) Contained Gold (oz)Indicated Santoy Gap 994,000 8.80 281,000Inferred Santoy Gap 1,875,000 5.92 357,000 22
  23. 23. Appendix E: Madsen Reserves & ResourcesResource Zone Tonnes Grade (g/t) Grade (oz/t) ContainedClass Ounces (oz)Indicated Austin 1,677,000 7.92 0.23 427,000 South Austin 850,000 9.32 0.27 254,000 McVeigh 374,000 9.59 0.28 115,000 Zone 8 335,000 12.21 0.36 132,000 Total 3,236,000 8.93 0.26 928,000Inferred Austin 108,000 6.30 0.18 22,000 South Austin 259,000 8.45 0.25 70,000 McVeigh 104,000 6.11 0.18 20,000 Zone 8 317,000 18.14 0.53 185,000 Total 788,000 11.74 0.34 297,000 23
  24. 24. Appendix F: Amisk Reserves & ResourcesResource Class Tonnes (000’s) Grade (g/t) Contained Ounces (000’s) Au Ag Au Eq Au Ag Au EqIndicated 30,150 0.85 6.17 0.95 827 5,978 921Inferred 27,653 0.64 4.01 0.70 589 3,692 645 24

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