CSI Investor Presentation


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CSI Investor Presentation

  1. 1. Serra PeladaBuilding Brazil’s Next Gold Mine
  2. 2. Forward Looking StatementsForward-looking statements in this presentation include statements regarding the timing and nature of future exploration and development programsthat are dependent on projections that may change as drilling continues, or if unexpected ground conditions are encountered. The Company does notcurrently have any mineral properties that are in production or that contain a reserve as defined by National Instrument 43-101. In addition, areas ofexploration potential are identified which will require additional drilling to determine whether or not they contain similar mineralization to areas thathave been explored in more detail. Significant additional drilling is required at Serra Pelada to fully understand system size.Certain information contained in this presentation, including any information relating to Colossus Minerals Inc.’s (“Colossus” or the “Company”) futurefinancial or operating performance may be deemed “forward-looking”. All statements in this presentation, other than statements of historical fact, thataddress events or developments that Colossus expects to occur, are “forward- looking statements”. Forward-looking statements are statements thatare not historical facts and are generally, but not always, identified by the words “expects”, “does not expect”, “plans”, “anticipates”, “does notanticipate”, “believes”, “intends”, “estimates”, “projects”, “potential”, “scheduled”, “forecast”, “budget” and similar expressions or their negativeconnotations, or that events or conditions “will”, “would”, “may”, “could”, “should” or “might” occur. All such forward-looking statements are based onthe opinions and estimates of management as of the date such statements are made and are subject to important risk factors and uncertainties, manyof which are beyond the Company’s ability to control or predict. Forward-looking statements are necessarily based on estimates and assumptions thatare inherently subject to known and unknown risks, uncertainties and other factors that may cause Colossus’ actual results, level of activity,performance or achievements to be materially different from those expressed or implied by such forward-looking statements. Such factors include,without limitation: price levels and volatility in the spot and forward markets for commodities; the uncertainties inherent to current and future legalchallenges Colossus is or may become a party to; controls, regulations and political or economic developments in the countries in which the Companydoes or may carry on business; changes in national and local government legislation in Canada, Brazil or any other country in which Colossuscurrently does or may in the future carry on business; the lack of certainty with respect to foreign legal systems, which may not be immune from theinfluence of political pressure, corruption or other factors that are inconsistent with the rule of law; the speculative nature of mineral exploration anddevelopment, including the risks of obtaining and maintaining the validity and enforceability of the necessary licenses and permits and complying withthe permitting requirements of each jurisdiction that Colossus operates; fluctuations in the international currency markets and in the rates of exchangeof the currencies of Canada, the United States and Brazil; significant capital requirements; impact of any hedging activities; taxation; additional fundingrequirements; loss of key employees; changes in project parameters as plans continue to be refined; accidents; labour disputes; defective title tomineral claims or property or contests over claims to mineral properties; and competition. In addition, there are risks and hazards associated with thebusiness of mineral exploration, development and mining, including environmental hazards, industrial accidents, unusual or unexpected formations,pressures, cave-ins, flooding as well as other risks discussed under the heading “Risks Factors” included in Colossus’ latest Annual Information Formfiled at www.sedar.com. Forward-looking statements are not guarantees of future performance, and actual results and future events could materiallydiffer from those anticipated in such statements. All of the forward-looking statements contained in this presentation are qualified by these cautionarystatements. Colossus expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of newinformation, events or otherwise, except in accordance with applicable securities laws.The technical information in this presentation has been reviewed by Graham Long, VP of Exploration of Colossus Minerals Inc. and Qualified Personfor the project.June 18, 2013 2
  3. 3. Serra Pelada• Develop the Serra Pelada Mine in a cost-effective, sustainable and safe manner• Provide leading cash flow per share,earnings per share and dividend yield toinvestors• Deliver low cost, high margin growth fromorganic sourcesTHE VISIONJune 18, 2013 3
  4. 4. Serra Pelada2013 OBJECTIVESObjective TargetExtract bulk sample from the CMZ Second quarterComplete process plant construction Third quarterProcess bulk sample Third quarterInitial NI 43-101 outlining 12 monthsresourcesFollowing bulksampleInitial production and first gold pour Third quarterDesign & engineer flotation plant Fourth quarterComplete PGM flotation plant Third quarter ‘14June 18, 2013 4
  5. 5. Capital StructureAS AT JUNE 12, 2013 EXCEPT WHERE OTHERWISE NOTEDAll dollar amounts $CDN, unless noted Current PositionShares outstanding - basic 125.0 millionShares outstanding - fully diluted 139.0 millionMarket capitalization (06/18/13) C$198.7 millionShare price (06/18/13) C$1.5952-week range C$1.52 – C$6.03Insider ownership* (approximate) 17%Institutional ownership* (approximate) 58%Options & Warrants (5,175,000 - CSI.WT.A –Exp. Nov 8/16 ) 14.0 millionCash balance (March 31/13) US$32.1 millionGold-linked Note – CSI.NT - Matures Dec 31/16 C$86.25 millionPrecious metals sale (35% Pt and Pd, 1.5% Au) US$75 millionMajor ShareholdersArias Resources, Acuity, Sprott Asset Management, Van Eck, Franklin Advisers,Fidelity, Franklin Templeton, BC Investment, MFS, Manulife, JP Morgan*Shares held by Arias Resources included in total as Alberto Arias is a director of CSIJune 18, 2013 5
  6. 6. Focused on Brazil• Resource-rich country• Pro-mining government• World’s 6th largest economyby GDP and largest in SouthAmerica• Real GDP growth of 2.5%forecast in 2013• Inflation estimated at 5.7%and stable monetary policyJune 18, 2013 6
  7. 7. Serra Pelada• Prolific Carajasregion• Major deposits of ironore, copper-gold,manganese• Robust infrastructurewith access to roads,power, water andskilled labour• Vale S.A. investingbillions of dollars overthe next decade inthe regionLOCATION AND INFRASTRUCTUREJune 18, 2013 7
  8. 8. Serra PeladaLAND AND PERMITS• Preliminary Environmental License –issued March 2010• Precedes balance of permits –issued by COEMA• Installation License – issued April 2010• Para State environmental council• Mining License – issued May 2010• Ministry of Mines and EnergyPermitsLand Package• 874 hectare property• Ownership Structure:Colossus 75%Coomigasp 25%June 18, 2013 8
  9. 9. High Grade DepositGRADE VARIABILITYJune 18, 2013 9
  10. 10. High Grade DepositGRADE VARIABILITYJune 18, 2013 10
  11. 11. Underground DrillingDEFINING AND DELINEATING THE CMZ• Exploration and definition undergrounddrilling commenced in Dec 2011• Bulk sample, being extracted fromCMZ, will be processed at site• An initial NI 43-101 resource statementwill follow which will outline the initialresource estimate for approximatelyone year, allowing the Company tomore accurately predict future earnings• The drill spacing for this resourcestatement will be as tight as possible (5to 10 metre centres)• As decline and undergrounddevelopment advances, so will the paceof drillingJune 18, 2013 11
  12. 12. Serra PeladaDEVELOPMENT TIMELINE2010 2011 2012 2013 2014ExplorationPermittingConstructionUndergroundDevelopmentNI 43-101 ResourceInitial ProductionRamp up to 1000 tpdDesign & EngineerFlotation PlantComplete PGMFlotation PlantJune 18, 2013 12
  13. 13. Process PlantSIMPLIFIED FLOWSHEETJune 18, 2013 13
  14. 14. Process PlantDESIGN OVERVIEWGold RoomScrubbing,Screening andReagentsPrimary CrushingBall Mill and GravityConcentratorsJune 18, 2013 14
  15. 15. Primary Crushing90% COMPLETEJune 18, 2013 15
  17. 17. Scrubbing & ScreeningERECTING COLUMNS & CONVEYORJune 18, 2013 17
  18. 18. Scrubbing & ScreeningPRIMARY SCREEN INSTALLEDJune 18, 2013 18
  19. 19. Scrubbing & ScreeningADVANCING CONVEYOR SYSTEMJune 18, 2013 19
  21. 21. June 18, 2013Process PlantBALL MILL, GRAVITY CONCENTRATORS & GOLD ROOM DESIGNGold RoomBall MillGravity Concentrators21
  22. 22. Grinding BuildingPLACING THE BALL MILLJune 18, 2013 22
  23. 23. Grinding BuildingBALL MILL RING GEAR INSTALLEDJune 18, 2013 23
  24. 24. Grinding BuildingTHREE GRAVITY CONCENTRATORS INSTALLEDJune 18, 2013 24
  25. 25. Control RoomWITH BALL MILL IN BACKGROUNDJune 18, 2013 25
  26. 26. Gold RoomFINAL HEIGHTJune 18, 2013 26
  27. 27. Gold RoomSTART OF MECHANICAL INSTALLATIONSJune 18, 2013 27
  28. 28. ThickenerPROCESS WATER TANKSJune 18, 2013 28
  29. 29. ThickenerPROCESS WATER TANKSJune 18, 2013 29
  30. 30. Power HouseJune 18, 2013 30
  31. 31. Power HouseCONTROL ROOMJune 18, 2013 31
  32. 32. LaboratoryREADY FOR MODULAR UNITSJune 18, 2013 32
  33. 33. TransformersMASTER CONTROL CENTRE 1 – IN PLACEJune 18, 2013 33
  34. 34. Ventilation ShaftCOLLARJune 18, 2013 34
  35. 35. Ventilation ShaftCOLLARJune 18, 2013 35
  36. 36. Tailings DamVARIOUS ELEMENTSJune 18, 2013 361 – Spillway wall rebar 4 – Cut off Excavation2 – Spillway wall rebar 5 – Clean up of borrow area3 – Spillway wall rebar and formwork
  37. 37. Development DeclineJune 18, 2013 37
  38. 38. Mining MethodUNDERHAND CUT & FILL• Underhand Cut & Fill mining method for100% extraction of the ore• Work from top of the orebody downexcavating under cemented rock fill• Used in a number of high-grade goldmines including Goldcorp’s Red LakeMine, Barrick’s Miekle Mine, TurquoiseRidge Mine, former Eskay Creek Mineand Newcrest Kencana Mine• Trucks to haul ore to surface via thedecline• Target a 1,000 TPD mining rateJune 18, 2013 38
  39. 39. Run of Mine (ROM) PadCMZ MATERIALJune 18, 2013 39
  40. 40. UndergroundEXCAVATION IN CMZJune 18, 2013 40
  41. 41. UndergroundCMZ – AT THE FACEJune 18, 2013 41
  42. 42. Exploration Potential•Down-plunge extension ofCentral Mineralized Zone•Connecting the Lower Limb tothe Central Mineralized Zone•Elefante – Potential satellitedeposit two kilometres awayTHREE PROSPECTIVE AREASJune 18, 2013 42
  43. 43. Exploration PotentialCONNECTING THE LOWER LIMB TO THE CMZJune 18, 2013 43
  44. 44. Exploration PotentialELEFANTE – POTENTIAL DEPOSIT TWO KILOMETRES AWAY• Hole EL-12-001 returned 5.70 metres grading5.41 g/t gold, 0.04 g/t platinum and 0.29 g/tpalladium• Hole EL-12-002 returned 5.10 metres grading0.45 g/t gold, 1.27 g/t platinum and 2.04 g/tpalladium• Auger drilling included SPTRD-017 (124.78g/tAu, 6.52g/t Pt and 7.67g/t Pd over 1.5 m)• Auger drilling in saprolite together withdiamond drilling suggest a broad halo ofmineralization in the Elefante Area sourced bydeeper bedrock zonePlease see news releases issued November 14, 2011, March 12,2012, August 20, 2012 and January 10, 2013 for complete NI 43-101 compliant disclosures.June 18, 2013 44
  45. 45. Sierra PeladaCutiaCutia ProjectDRILLING COMMENCES IN 2013• 75% ownership interest purchased fromCOOMIC for R$3.6 million (~USD $2.0million) payable in installments uponsatisfaction of certain milestones.• Mesothermal gold and silver project• 633 hectares, 13 km SE of Serra Pelada,accessed by same road• Mineralized vein system occurs along the CutiaFault Zone that separates two major lithologicdomains• 3 metre thick quartz veins outcropping onsurface• ~ 65,000 ounces produced by artisanalminers between 1988 and 1992• 2.5 km of strike length and still open tothe west and eastJune 18, 2013 45
  46. 46. Serra PeladaA COMPELLING INVESTMENT• Gold & PGM grades at Serra Pelada are among the highest on record• High grade, potential low cost emerging producer• Project is permitted and construction is well underway• 110,000 metres drilled, significant exploration upsideJune 18, 2013 46
  47. 47. TSX: CSIwww.colossusminerals.comOTCQX: COLUFColossus Minerals Inc.1 University Avenue, Suite 401Toronto, ON M5J 2P1Ann WilkinsonVice President, Investor Relations416.643.7655info@colossusminerals.comwww.colossusminerals.comJune 18, 2013 47
  48. 48. APPENDICESJune 18, 2013 48
  49. 49. Community• Striving to build a stronger community – communitybased projects• Hiring locally is a priority• Education and training• Community donations (ambulance and policevehicles)• Health and dental services• Children’s programs (sports teams, first aid training,social events)June 18, 2013 49
  50. 50. Community ProgramsCommunity based projects• Donation of ambulance and police vehicles• Public security and police training• School renovation• Hospital renovation• Municipal stadium renovation• Municipal theatre renovation• 2012 - installation of a community centre focused on worker trainingand qualifications, income generation programs, computer trainingcentre and environmental educationHealth• Vaccination programs• Medical and dentalservicesJune 18, 2013 50
  51. 51. Community ProgramsChildren• Soccer school• Sporting events• Social events• Visual arts workshops• Reading programsEducation and training programs• Literacy programs• First aid and safety training• Serra Pelada Capoeira school for children,teenagers, youth and adultsJune 18, 2013 51
  52. 52. Area APAYMENT STRUCTURERange of production(millions of ounces ofmetal)Royalty as apercentage of goldprice on preciousmetal sold*From To--- 2.03 ~ 2.1%2.03 4.79 ~ 1.4%4.79+ --- ~ 1.3%Colossus must pay COOMIGASP R$350,000(US$175,000**) per month and payments cease whenproduction begins.In addition Colossus will finance their portion ofCAPEX (25%).* Precious metal is defined as any one of gold, platinum,palladium, rhodium, osmium, ruthenium or iridium** Basis 2.00 R$ per US$ (4/30/13)June 18, 2013 52
  53. 53. Area BPAYMENT STRUCTURE• COOMIGASP paid R$8 million (US$4.5 million*)• Will pay COOMIGASP a royalty payment of 0.4326of gold price of precious metals sold**• Exercised option on Vale agreement Mar 18/13• Vale has 45 days to request additional documentsto support US$5 million spent over 3 years• Assignment of mining rights expected to occur 30days after Vale is satisfied requirements met.• Pay Vale a fee of US$35/oz of gold, platinum,palladium based on the reserve estimate.700 – Hectare Land Tenement*Calculated at historical exchange rates.**Precious metal is defined as any one of gold, platinum, palladium,rhodium, osmium, ruthenium or iridium.June 18, 2013 53
  54. 54. Area CPAYMENT STRUCTURE• Have paid COOMIGASP R$4million (US $2.2 million*)• Will pay COOMIGASP a royaltyof 2.0908% of gold price onprecious metals sold***Calculated at historical exchange rates.**Precious metal is defined as any one of gold, platinum,palladium, rhodium, osmium, ruthenium or iridiumConsideration74 - Hectare Land TenementJune 18, 2013 54
  55. 55. Warrants and OptionsAS AT APRIL 30, 2013Warrant price# ofwarrantsExpiry$8.50 5,175,000 Nov 8, 2016RangeOptionsOutstandingOptionsExercisable$0.48CAD - $1.50CAD 150,000 150,000$1.51CAD - $3.00CAD 285,000 83,750$3.01CAD - $4.50CAD 2,945,000 1,633,750$4.51CAD - $6.00CAD 2,485,000 1,203,750$6.01CAD - $8.37CAD 2,980,000 2,830,000TOTAL: 8,845,000 5,901,250June 18, 2013 55
  56. 56. Senior ManagementClaudio Mancuso,CACEO, Director• Over 10 years experience in mining industry and capital markets• Previously VP, Treasurer of Agnico-Eagle Mines Limited• Involved in raising over $4 billion over the past five years in both equity and debt capital marketsDavid AnthonyPresident & COO• Previously Senior Vice President, Mining of Forbes & Manhattan• Previously worked for Kinross, as the Project Director, responsible for execution of the Fruta del Norte Project and held Senior positionsat Barrick Gold in Tanzania responsible for the development of the Bulyanhulu, Buzwagi and Tulawaka minesAlden Greenhouse,CFACFO• Over 10 years capital markets experience in commodity risk management, foreign-exchange and fixed income• Senior management positions with RBC Capital Markets and Senior Analyst at Dominion Bond Rating ServiceGraham LongVP, ExplorationQualified Personunder NI 43-101• Over 25 years’ experience in the mining industry, spent the majority of his career with Agnico-Eagle Mines where he held progressivelychanging roles from exploration geologist to Exploration Manager for Canada.• Mr. Long has a broad range of mining experience having worked in several operating mines both underground and open-pit as well asexperiencing the discovery of a gold deposit and seeing it through to production.Luis Albano TandoVP, Operations &Country Manager,BrazilQualified Personunder NI 43-101• Mining engineer with twenty five years’ experience working at increasingly senior levels of a number of organizations.• Previously COO at OROSUR Mining Inc.• Prior to this, worked in a variety of capacities for Kinross• He is also a fellow of the Australian Institute of Mining and Metallurgy (AusIMM)Jason BrooksVP, Finance• More than 10 years of finance and accounting experience in the mining industry. He most recently served as Assistant Controller ofNewGold Inc., an intermediate gold producer. Previously, he spent six years with Barrick Gold Corporation in various financialmanagement positions. Prior to joining Barrick, he spent five years at BDO Dunwoody LLP, a public accounting firm.Ann WilkinsonVP, InvestorRelations• 20 years in the mining industry in investor relations and other management roles. Prior to joining Colossus, served as Vice President,Investor Relations of Breakwater Resources Ltd. Prior to Breakwater she held a number of roles with several capital market firms and acouple of junior gold exploration companies.June 18, 2013 56
  57. 57. Board of DirectorsJohn Frostiak,P.EngChairmanQualified Person under NI 43-101• Over 35 years experience in the mining industry. Managed Metallurgy and Process Development for Barrick Gold Corp.• Lead developer of both Pierina Mine and Bulyanhulu Mine for BarrickClaudio Mancuso,CAChief Executive Officer• Over 10 years experience in mining industry and capital markets• Previously VP, Treasurer of Agnico-Eagle Mines Limited• Involved in raising over $4 billion over the past five years in both equity and debt capital marketsJ. Alberto Arias • Founder, General Partner and Portfolio Manager of Arias Resource Capital Management LP• Previously Managing Director of Goldman Sachs – Metals & Mining Research from 1998 to 2006,• Mr. Arias has engineering degrees in mining and metallurgy and an MBA (B.Sc. from the Colorado School of Mines and threeMasters degrees from Columbia University), mining industry operational experience, and holds a patent for a gold mineralprocessing technology.David Garofalo • President and Chief Executive Officer of Hudbay Minerals Inc.• Previously served as Senior Vice President, Finance and Chief Financial Officer and a director with Agnico-Eagle Mines LimitedMr. Garofalo worked in various finance roles including Treasurer with Inmet Mining Corporation.Greg HallQualified Person under NI 43-101• Over 40 years experience in the mining industry. Chief geologist world-wide of Placer Dome until the Barrick takeover• Credited discoveries include Granny Smith Mine (Barrick), Yandi Mine (Rio Tinto)Mel Leiderman,CA, CPA• Managing Partner of Lipton LLP, Chartered Accountants.• Current Member of Agnico-Eagle Mines Limited Audit Committee (Chair from 2005 – 2011)• Board of Trustees – Morguard North American Residential REIT. Audit committee member.Douglas Reeson,MBA• Current CEO of Gossan Resources Limited and a director of Lithium Americas Corp., Mega Uranium Ltd. and Soltoro Ltd.John S.M. Turner • Partner at Fasken Martineau DuMoulin LLP and the Leader of its Global Mining Group• Has been recognized on numerous occasions including Best Lawyers in Canada for Natural Resources Law• Recipient of the Queens Golden Jubilee Medal and is a member of both the Canadian Association and the Law Society ofEngland and Wales.June 18, 2013 57
  58. 58. Analyst CoverageResearch Firm Analyst Latest Coverage Target/RatingClarus Securities Jamie Spratt June 2013 $2.50 – AccumulateGMP Securities George Albino June 2013 $7.15 – BuyCanaccord Genuity Nicholas Campbell May 2013 $7.50 – Spec. BuyStifel, Nicolaus Craig Stanley April 2013 $3.55 – BuyDundee Securities Joseph Fazzini May 2013 $4.25 – Spec. BuyMacquarie Securities Michael Gray May 2013 $2.25 – NeutralJune 18, 2013 58
  59. 59. NOTESJune 18, 2013 59