Extorre June Powerpoint

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Extorre June Powerpoint

  1. 1. 1 June 2012 Discovery and Development ofHigh Grade Gold-Silver Projects in Argentina
  2. 2. 2 Cautionary StatementCautionary Note to U.S. Investors – The United States Securities and Exchange Commission (“SEC”) permitsmining companies in their filings with the SEC to disclose only those mineral deposits that a company caneconomically and legally extract or produce. We use certain terms in this presentation, such as “inferred resource”,that the SEC guidelines strictly prohibit us from including in our filing with the SEC. U.S. investors are urged toconsider closely the disclosure contained in our Management Discussion and Analysis for the quarter ended March31, 2010 filed on SEDAR and available at www.sedar.com.This document and the information contained in it do not constitute a prospectus and do not form any part of an offerof, or invitation to apply for, securities in any jurisdiction. Potential investors should no rely solely on the informationcontained herein prior to making any investment decision. Investors should seek independent advice from a qualifiedfinance and investment advisor, giving due regard to their own personal circumstances, prior to forming anyinvestment decisionSafe Harbor Statement - This presentation may contain certain “forward-looking statements” within the meaning ofthe United States Private Securities Litigation Reform Act of 1995. These statements reflect our current belief and arebased upon currently available information. Actual results could differ materially from those described in thispresentation as a result of numerous factors, some of which are outside of the control of Extorre Gold Mines Limited.Many of the assay results presented are preliminary and may not be accurate due to various factors, including but notlimited to sample recoveries, true widths and interpretations.Preliminary Economic Assessment (PEA) – The Cerro Moro PEA is by definition preliminary in nature as itincludes some mineral resources that are too speculative geologically to have the economic considerations appliedto them that would enable them to be categorized as reserves at this time. As such there is no certainty that thepreliminary assessment and project economics will be realized. A NI 43-101 Technical Report for the CerroMoro PEA has been filed on SEDAR (www.sedar.com) and is posted on the Company’s website atwww.extorre.com
  3. 3. 3Capital Structure –June 1, 2012Shares 96.9 MWarrants 0.12 MOptions 9.52 MFully Diluted 106.56 MManagement / Insiders 15%Institutions 60%Retail 25%Cash $27 M
  4. 4. 4 Highlights –Flagship Cerro Moro• Environmental Impact Assessment approved for 750 tons/day• 2014 start-up scheduledStaged Start-Up of PEA-3plans shows potential for:• US$120 million CAPEX• Average annual production for first 5 October 1, 2010 years of 190,000 ounces gold equivalent*• Reduced cash costs * Gold equivalent ounces – calculated by dividing the silver ounces by 50 and adding it to the gold value, **Cash Costs are for “mine site” and exclude refining and royalty costs. Total Cash Costs with refining/royalty are $453 per ounce gold equivalent*
  5. 5. 5 An Experienced Management TeamA Strong Board C.E.O. Trevor Mulroney Mng. Engineer- 25 yrs Exploration Matt Williams – Exploration Manager Geologist - 17 yr Yale Simpson Co-Chairman Fernando Chacon – Project Manager Geologist - 8 yrBryce Roxburgh Co-Chairman Development Alberto Carlocchia – Country Mgr, Argentina Lawyer - 13 yrs Gonzalo Damond – Commercial Manager Engineer – 17 yrsRob Reynolds Director Victor Vera – Mine Development Superintend. Engineer – 15 yrIgnacio Celorrio Director Corporate Darcy Daubaras – Chief Financial Officer Chart. Acc’t. - 14 yr Eric Roth Director Cecil Bond – Vice President Finance Chart. Acc’t. - 20 yr Louis Montpellier – Senior Vice Pres. & Legal Lawyer - 30 yrJames Strauss Director Marina Katusa – Vice Pres. Corp. Development Geologist, MBAGeorge Lawton Director Rob Grey – Vice Pres. Corp. Communications IR - 7yr
  6. 6. Extorre Project Locations 6 1.36 million indicated + 1.05 million inferred ounces Au Eq* *Gold equivalent grade is calculated by dividing the silver assay result by 50, adding it to the gold value and assuming 100% metallurgical recovery. Important: See slide 10 for full resource grades and tonnes.
  7. 7. 7 100% EXTORRE LANDS San Jose FOMICRUZ 80/20% JV AGREEMENT Cerro Negro FAVORABLE VOLCANIC ROCKS MINE/ADVANCED PROJECT Don Nicolas RECENT DRILLING FALCONVERDE Dos Calandrias PUNTUDO Cerro Moro UNION DOMES Cerro Vanguardia Mina Martha Manantial Espejo Santa Cruz Exploration Targets
  8. 8. 8CERRO MOROProject Location Pro-mining Santa Cruz Province 90 km road to a deep water port Population of Puerto Deseado 20,000 Site is 80 km from grid power EIA approved, connection permits in progress
  9. 9. 9 Argentine President Visits theCerro Vanguardia Mine in Support In March 2012 Cristina Kirchner visited the Cerro Vanguardia mine, operated by Anglogold and located in the Santa Cruz Province 120 km from Cerro Moro.
  10. 10. Cerro Moro Resource – November 2011 10 National Instrument 43-101 Compliant Resource Estimate, by Cube Consulting An Exceptional Gold & Silver DepositIndicated Mineral ResourcesInferred Mineral Resources Indicated and Inferred resources shown above utilise a 1.0 g/t gold equivalent* cut-off * Note: Gold equivalent grade is calculated by dividing the silver assay result by 50, adding it to the gold value and assuming 100% metallurgical recovery.
  11. 11. Cerro Moro – Resource Location 11Areas included in the Cube November 2011 Resource Estimate Mapped/Interpreted Veins Drill hole collars as at Sep 2011
  12. 12. 12Cerro Moro Mine Development Program GR Engineering is a leading engineering consulting and contracting company that specializes in providing high quality process engineering design and construction services to the mining and mineral processing industries.
  13. 13. 13Preliminary Economic Assessment (PEA-3) Project Parameters Summary (Updated Study Released April 2012)Mine Life 9 yearsThroughput 1,300 tonnes per day 248,000 ounces gold equivalent*Average Annual Production (Years 1 to 5) (123,125 oz. gold + of 6.25 Moz. silver) 1.79 million ounces gold equivalent* (848,000 oz.Total Ounces Recovered gold + 47.29 Moz. silver) Direct: $US 207.3M + $US 39.6M VAT (VAT recoverable)Initial Project CAPEX Indirect: $US 37.2M (EPCM contract, owners’ costs, commissioning)Cash Costs $US 303 /ounce gold equivalent* (first 5 years) Financial SummaryPayback Period (5% discount) 24 monthsPre-tax IRR 63%After tax IRR 47%Pre-tax NPV (5% discount) $US 737.4 millionAfter Tax NPV (5% discount) $US 463 millionMetal Prices $US 1320/oz. gold, $US 26/oz. silver Cautionary Note: The Cerro Moro Preliminary Economic Assessment (PEA) is by definition preliminary in nature as it includes some mineral resources that are too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as reserves at this time. As such there is no certainty that the project economics will be realized. *Gold equivalent grade is calculated by dividing the silver assay result by 50, adding it to the gold value and assuming 100% metal lurgical recovery. **Cash Costs are for “mine site” and exclude refining and royalty costs. Total Cash Costs with refining/royalty are $453 per ounce gold equivalent*
  14. 14. 14 Cerro Moro Production Profile Gold (eq. oz) (1300 tons/day) Gold (oz) Potential From New High- 300 Grade Discoveries…(000 Gold Equivalent Ounces) 253 253 258 251 250 225 Annual Production 200 127 116 128 137 169 165 106 129 150 76 61 91 50 100 137 47 123 126 121 119 104 50 93 79 45 0 Y1 Y2 Y3 Y3 Y5 Y6 Y7 Y8 Y9 Silver (Oz. in Gold Eq) Gold (Oz.) Production Year
  15. 15. 15 Staged Mine Startup A potential staged mining approach to PEA-3 suggest an initial mine CAPEX of approximately US$124 million with open pit mining only in Stage 1 at 500-600 tpd. Production/Cost Estimate for Stage 1 (500-600tpd): Estimated Range Initial Annual Production (Gold Equivalent* Ounces) 170,000 180,000 Initial Capital Expenditure (Excludes Recoverable Taxes) US$ 110 million US$ 120 million Approximate Recoverable Taxes US$ 14 million US$ 16 million Initial Operating Costs (Excludes Royalties and Export Tax) US$ 200 per recoverable gold eqv.* oz Potential Free Cash Flow (Before Royalties and Taxes) US$ 190 million US$ 200 million Stage 2 expansion underground would begin after 18 months with the aim to reach PEA-3 levels of 1,000 to 1,100 tpd approximately 36 months after initial construction. Cautionary Note: The Cerro Moro Preliminary Economic Assessment (PEA) is by definition preliminary in nature as it includes some mineral resources that are too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as reserves at this time. As such there is no certainty that the project economics will be realized. *Gold equivalent grade is calculated by dividing the silver assay result by 50, adding it to the gold value and assuming 100% metallurgical recovery. ** Costs are for “mine site” and exclude refining and royalty costs.
  16. 16. 16 Cerro Moro Production Profile (Staged Approach) Potential From New High-(000 Gold Equivalent Ounces) Grade Discoveries… Annual Production Production Year
  17. 17. 17 Conceptual Mine Development Esperanza- Nini Open Pit GabrielaOpen Pit- UG N Debora Open PitEscondida FW Open Pit- UG Loma Open Pit Carla Open Pit Escondida Open Pit- UG Martina-UG Zoe Open Pit -UG Process Plant 1000m Conceptual Open Pit Layout
  18. 18. 18 Cerro Moro Mine DesignCombination of Open Pit and Underground Mining Escondida Open Pit- UG N Loma Escondida Open Pits Escondida FW Open Pit- UG Loma Open Pit Escondida West-Central Underground Mines Escondida Underground Layout
  19. 19. 19 Decline – Escondida Far West 5 m (Width) x 4.5 m (Height). 2,325 m Length. First ore panels accessible after 1,200 m of development. Commence: mid 2012. Total development time: 22 months.
  20. 20. Cerro Moro – Conceptual Plant Design Modular Design to Accommodate Potential Future Expansions1. Merrill-Crowe CYCLONE LEACH2. GOLD h.g. concentrate FLASH ROOM FLOTATION1. Stage 1: 500-600 ton/day (months 1 to 36) h.g concentrate . GRAVITY2. Stage 2: 1000 – 1100 ton/day (as per PEA-3) MINE BALL MILL CRUSHER PUMP CERRO MORO LEACHING FLOWSHEET –
  21. 21. 21 Gold & Silver RecoveriesHigh gold and silver recoveries (95% and 93%, respectively) are achievable via a combination of flash flotation, gravity separation, and leaching GOLD 100 % EXTRACTION 80 60 Float tail leach Float con leach 40 IC leach 20 0 ECF ECO EE GAB EW ESP ESP-SE Loma ZS ZD SILVER 100 % EXTRACTION 80 60 Float tail leach Float con leach 40 IC leach 20 0 ECF ECO EE GAB EW ESP ESP-SE Loma ZS ZD For more detailed information on metallurgy please view company technical reports filed on Sedar
  22. 22. 22Excellent Resource Expansion Potential A Strategic Land Position 1600km2 The Cerro Moro Vein Field (95% XG) Continued resource growth from extensions of existing veins, plus many new drill ready veins Don Sixto (100% XG) Potential beyond existing gold resource Puntudo Project – Santa Cruz (100% XG) 6 silver/gold exploration targets Other Regional Targets – Santa Cruz (100% XG) Falcon, Ventana, Verde, Azul The Fomicruz Joint Venture (XG Earning 80%) Escondida Extensions, Union Domes
  23. 23. 23Cerro Moro Drill Hole Location Map Cerro Moro tenement outline Extorre 14,000 hectare Estancia/ranch purchase (green) Fault Zones Drill Holes ZOE 5 kilometres 3.0 mile
  24. 24. 1. Zoe PRIORITY 24 2. Zoe East EXPLORATION 3. Belen NE 4. Martina TARGETS 5. Mosquito Feeder target 6. Michele 7. Romina 8. Tres Lomas NW 9. Esperanza & Nini Extensions 10. Gabriela Extensions 11. Carlita, & Carlita to Deborah 12. Escondida West Extension 13. Escondida Far East Deeps 14. Fomicruz Escondida Deeps 15. Loma Escondida East 16. Deborah Parallel 17. Esperanza Parallel 18. Agostina 19. Deborah NE 20. Carla to Zoe 21. Esperanza to Carla 22. Carla Deeps 23. Loma Escondida West 24. Natalia 25. Silica Ridges 26. Georgina 27. Lechuzo 28. Lucia5 kilometres 29. Deborah Termination Structure 3.0 miles 30. Carolene
  25. 25. 25Ground Magnetics Leads to New Discoveries Over 30 veins identified to date. Detailed magnetic data shows the veins Drilling on new veins underway Priority is to discover high- grade, near surface veins Black lines = mapped veins 5 km White lines = exploration target
  26. 26. 26Perspective Projection of Nov 2011 Block Models Generalized View Looking North NINI ESPERANZA GABRIELA CARLA ZOEESCONDIDA MARTINA AuEQ50 g/t Scale: 2 km x 2 km Grid Blue lines: Interpreted Faults Red lines: Mapped Veins
  27. 27. 27 Mineralization Open to Depth - Long Sections ZOE Current depths from surface to MARTINA significant mineralization Far West 270 m Central 220 m 320 metres Martina 290 m Gabriela 320 m ESCONDIDA 320 metresFomicruz Far West West Central Far East Martina GABRIELA 320 metres
  28. 28. Cerro Moro Project – Zoe Discovery 28 1 kilometre 0.5 mile Carla Carlita NMartina ZOE Location of newsignificant drill hole. In progress/awaiting results No significant result Existing holes ESCONDIDA – ZOE LONG SECTION KEY 1.0 km 400 m Fomicruz Far West West Central Far East Martina Zoe
  29. 29. 29 100% EXTORRE LANDS San Jose FOMICRUZ 80/20% JV AGREEMENT Cerro Negro) FAVORABLE VOLCANIC ROCKS MINE/ADVANCED PROJECT Don Nicolas RECENT DRILLING FALCONVERDE Dos Calandrias PUNTUDO Cerro Moro UNION DOMES Cerro Vanguardia Mina Martha Manantial Espejo Regional Exploration Targets Falcon, Puntudo…
  30. 30. 30Puntudo Silver Target –South of Joaquin DiscoveryNorth Property Boundary Property Boundary
  31. 31. 31Falcon Project –Wide Gold Intercepts North FD004 - 53 - 1.33 - 30 Resistivity High 20 O h m . m 10 Low 200 metres
  32. 32. 32 News Flow- 2012 Cerro Moro continued drilling announcements every 2 months - new discoveries Updated PEA-3 completed, evaluation of staged development ongoing which could reduce CAPEX significantly Evaluating financing options Excellent potential for new discoveries at Falcon and Puntudo properties.
  33. 33. 33 Extorre in anIndustry Context
  34. 34. 34Cerro Morro - Higher IRR than Most Pre-Tax IRR Comparison 80.00% 70.00% 60.00% 50.00% IRR (%) 40.00% 30.00% 20.00% 10.00% 0.00%
  35. 35. 35 NPV (M$)Gold Price & Capital Gold Price (US$/oz) Cost 1,056 1,320 1,584 $ 415.5 $ 512.4 $ 609.3 -20% M M M Capital Cost Base $ 366.3 $ 463.2 $ 560.1 Sensitivity – Gold Price Case M M M +20% $ 319.0 $ 415.9 $ 512.8 and Capital Cost M M M NPV (M$) Gold Price & Gold Price (US$/oz) Operating Cost 1,056 1,320 1,584 $ 439.1 $ 537.0 $ 635.0 -20% Sensitivity – Gold Price Opertaing Cost M M M Base $ 366.3 $ 463.2 $ 560.1 Case M M M and Operating Cost $ 325.1 $ 423.1 $ 521.1 +20% M M M NPV (M$) Gold Price & Gold Price (US$/oz) Discount Rate 1,056 1,320 1,584 0.0% $ 545.4 $ 675.3 $ 805.2 Sensitivity – Gold Price Discount Rate M M M 5.0% $ 366.3 M $ 463.2 M $ 560.1 M and Capital Cost $ 246.0 $ 320.1 $ 394.2 10.0% M M M IRR (%) 39% 47% 54%
  36. 36. 36 Extorre & the Metals Industry GOLD MARKET SILVER MARKET Exploration expenditures are Industrial silver demand is expected to increasing yet fewer new resources increase from 487million ounces silver are being discovered in 2010 to 666million ounces in 2015 New discoveries are replacing less This demand could underpin strong than half the current production silver pricesResources versus Gold Production 1997-2008 World Industrial Silver Demand Forecast Source: MEG
  37. 37. 37Mining Analyst Coverage Daniel Earle Michael Gray Daniel.earle@tdsecurities.com Michael.gray@macquarie.com 604-639-6372 416 308 7906 Adam Graf John Hayes agraf@dahlmanrose.com Johnp.hayes@bmob.com 212-702-4527 416-359-6189 David West Imaru Casanova dwest@salmanpartners.com icasanova@mlvco.com 604-622-5569 212.542.5869 Wendell Zerb Wendell.zerb@canaccordadams.com 604 643 7485
  38. 38. 38“Cerro Moro is one of the highest quality gold-silver deposits to be discovered in recent years” Production is scheduled for 2014 www.extorre.com Suite 1660, 999 West Hastings Street Vancouver, BC, Canada, V6C 2W2 Toll Free: 1-888-688-9592 Telephone: 1-604-688-9592

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